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ECONOMIC DEVELOPMENT AUTHORITY AGENDA
March 6, 2017
City Hall
Conference Room 1
th
590 40 Avenue NE
Columbia Heights, MN 55421
1.Call to Order
2.Roll Call
3.Pledge of Allegiance
CONSENT AGENDA
4.Approve minutes of February 6, 2017
5.Approve Financial Report and Payment of Bills for January, 2017 Resolution 2017-06
Motion: Move to approve Consent Agenda as presented.
BUSINESS ITEMS
6.Single Family Home Lot Sales Program - Concept Application Approval 4647 Polk Street
Motion: Move to approve the concept application submitted by Tollberg Homes for the
property located at 4647 Polk Street NE, Columbia Heights, MN 55421.
Motion: Move to authorize staff to work with Tollberg Homes to determine specific
house plans for the construction of a single-family home and to prepare a Purchase and
Redevelopment Agreement for consideration at the next EDA meeting on April 3, 2017.
OTHER BUSINESS
7.Membership of the EDA Discussion
8.Central Avenue Single-Family Homes Discussion
9.Adjourn
The next regular EDA meeting will be April 3, 2017 at City Hall
ECONOMIC DEVELOPMENT AUTHORITY (EDA)
MINUTES OF THE MEETINGOF
FEBRUARY 6, 2017
The meeting was called to order at 5:30pm by Executive Director, Walt Fehst
PLEDGE OF ALLEGIANCE-
RECITED
The Oath of Office was taken by Donna Schmitt, Robert Williams, and Connie Buesgens.
Members Present:Donna Schmitt,John Murzyn, Marlaine Szurek,,Bobby Williams, and
Connie Buesgens.
Members Absent:Gerry Herringer
StaffPresent:Walt Fehst,Joseph Hogeboom, Keith Dahl,and Shelley Hanson.
Legal Counsel:Martha Ingram, Kennedy & Graven
ELECTION OF OFFICERS:
Nomination for President:Buesgens nominated Schmitt, and Williams nominated Szurek.
Roll call for Schmitt-Buesgens and Schmitt
Roll call for Szurek-Szurek, Murzyn, and Williams. Szurek is new President.
Nomination for Vice President: Murzyn nominated Williams, and Schmitt nominated herself.
Roll call for Williams-Murzyn and Williams
Roll callfor Schmitt-Buesgens, Schmitt and Szurek. Schmitt is new Vice President.
Nomination for Treasurer:Schmitt nominated Buesgens, and Szurek nominated Williams.
Roll call for Buesgens-Buesgens and Schmitt
Roll call for Williams-Szurek, Murzyn, and Williams. Williams is new Treasurer.
Motion bySzurek, seconded byWilliams, to electSzurekas President of the EDA. All ayes.
MOTION PASSED.
Motion bySzurek, seconded byWilliams, to electSchmittas Vice President of the EDA. All
ayes. MOTION PASSED.
Motion bySzurek, seconded byWilliams, to electWilliamsas Treasurer of the EDA. All ayes.
MOTION PASSED.
Motion bySzurek, seconded by Williams, to appoint Keith Dahl as Secretary of the EDA. All
ayes. MOTION PASSED.
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Motion bySzurek,seconded byWilliams, to appoint Shelley Hanson as Assistant Secretary of the
EDA. All ayes. MOTION PASSED.
Motion by Szurek, seconded byWilliams, to appoint Joseph Kloiber as Assistant Treasurer of the
EDA. All ayes. MOTION PASSED.
The meeting wasthen resumed under the leadership of the newly elected EDA President.
CONSENT ITEMS
1.Approve the Minutes from January 3,2017
2.Approve the Financial Report and Payment of Bills for December2016on Resolution
2017-01(A).
Questions by Members:
No questions or comments.
Motion byWilliams,seconded byBuesgens,to waive the reading of Resolution 2017-01
there being an ample amount of copies available to the public. All ayes. MOTION
PASSED.
Motion byWilliams, seconded byBuesgens, to approve theMinutes and Financial Report
and Payment of Bills forDecember, 2016 as presented. All ayes. MOTION PASSED.
RESOLUTION NO. 2017-01(A)
A Resolution of the Economic Development Authority of Columbia Heights, Minnesota, Approving
the Financial Statementsfor the Month ofDecember, 2016and the Payment of the Bills for the
Month of December, 2016.
WHEREAS,
the Columbia Heights Economic Development Authority (EDA) is required by Minnesota
Statutes Section 469.096, Subd.9, to prepare a detailed financial statement which shows all receipts and
disbursements, their nature, the money on hand, the purposes to which the money on hand is to be
applied, the EDA's credits and assets and its outstanding liabilities; and
WHEREAS,
said Statute also requires the EDA to examine the statement and treasurer's vouchers or bills
and if correct, to approve them by resolution and enter the resolution in its records; and
WHEREAS,
the financial statementsfor the month ofDecember, 2016 has been reviewed by the EDA
Commission; and
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February 6, 2017
WHEREAS,
the EDA has examined the financial statements and finds them to be acceptable as to both
form and accuracy; and
WHEREAS,
the EDA Commission has other means to verify the intent of Section 469.096, Subd. 9,
including but not limited to Comprehensive Annual Financial Reports, Annual City approved Budgets,
Audits and similar documentation; and
WHEREAS,
financials statements a
NOW, THEREFORE BE IT RESOLVED
by the Board of Commissioners of the Columbia Heights
Economic Development Authority that it has examined the referenced financial statements including the
check history, and they are found to be correct, as to form and content; and
BE IT FURTHER RESOLVED
the financial statements are acknowledged and received and the check
history as presented in writing is approved for payment out of proper funds; and
BE IT FURTHER RESOLVED
this resolution is made a part of the permanent records of the Columbia
Heights Economic Development Authority.
Passed this 7thday ofFebruary, 2017.
Motion by: Williams
Secondedby: Buesgens
BUSINESS ITEM
1.Designation of Official Depositories for the EDA-Resolution 2017-02
Finance Director, Joe Kloiber, explained that Minnesota statute generally requires local units of
government to designate by resolution the financial institutions used as depositories by the local
unit of government. The attached resolution follows the general format of the related resolution
passed in previous years by the City and the HRA.
Most general banking transactions of the EDA/City/HRAare conducted through Northeast Bank.
Accounts are also maintained at Wells Fargo Bank of Minnesota, N.A. and U.S. Bank for certain
specialized services such as payroll and debt service payments.
Under this resolution, investment firms used for the pooled investments of the EDA/City/HRA
must have an office in the State of Minnesota, and all investments must comply with authorized
investments as set forth in Minnesota statutes.
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The only material difference between this proposed resolution and the resolution adopted
the EDA in 1996, it has never had a separate checking account under its own name. All EDA
behalf of the EDA. The proposed resolution serves to clarify thisand complies more
appropriately with the By-laws.
STAFF RECOMMENDATION:
Staff recommends maintaining these three banking relationships--in combination,they meet the
used for the investment pool, and will provide the Commissioners with broker updates as that
review progresses.
Questions from members:
There were nofurther questions.
Motion byMurzyn, seconded byWilliams, to waive the reading of Resolution 2017-002, there
being ample copies available to the public. All ayes. MOTION PASSED.
Motion byMurzyn, seconded byWilliams, to adopt Resolution 2017-002, being a resolution
designating official depositories for the Columbia Heights Economic Development Authority. All
ayes. MOTION PASSED.
RESOLUTION NO. 2017-02
A RESOLUTION OF THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT
AUTHORITY,
DESIGNATING OFFICIAL DEPOSITORIES.
Now, therefore, in accordance with the bylaws and regulations of the Columbia Heights Economic
Development Authority (the Authority), the Board of Commissioners of the Authority makes the
following:
ORDER OF BOARD
IT IS HEREBY RESOLVED,
thatNortheast Bank, Wells Fargo Bank of Minnesota, N.A., and U.S.
IT IS FURTHER RESOLVED,
that the funds of the Authority can be held in accounts at these
depositories under the name and federal identification number of the City of Columbia Heights,
Minnesota (the City), together with the funds of the City, provided that separate fund accounting records
are maintained for the respective Authority and City shares of such accounts in a mannerconsistent with
generally accepted accounting and auditing standards.
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IT IS FURTHER RESOLVED,
that the responsibility for countersigning orders and checks drawn
against funds of the Authority, assigned in the Author
delegated to the City Mayor.
IT IS FURTHER RESOLVED,
that checks, drafts, or other withdrawal orders issued against the funds
ll be signed by the
following:
City Mayor
City Manager
City Treasurer-Finance Director
and that said banks are hereby fully authorized to pay and charge said accounts for any such checks,
drafts, or other withdrawal orders issued by the City on behalf of the Authority.
IT IS FURTHER RESOLVED,
that Northeast Bank, Wells Fargo Bank of Minnesota, N.A., and U.S.
Bank are hereby requested, authorized and directed to honor checks, drafts or other orders for the
behalf of the Authority, including those drawn to the
individual order of any person or persons whose name or names appear thereon as signer or signers
thereof, when bearing or purporting to bear the facsimile signatures of the following:
City Mayor
City Manager
City Treasurer-Finance Director
and that Northeast Bank, Wells Fargo Bank of Minnesota, N.A., and U.S. Bank shall be entitled to honor
and to charge the Authority, or the City on behalf of the Authority, for all such checks, drafts or other
orders, regardless of by whom or by what means the facsimile signature or signatures thereon may have
been affixed thereto, if such facsimile signature or signatures resemble the facsimile specimens duly
certified to or filed with the Banks by the Treasurer or other officer of the Authority or City.
IT IS FURTHER RESOLVED,
that all transactions, if any, relating to deposits, withdrawals, re-
discounts and borrowings by or on behalf of the Authority with said depositories, made directly by the
Authority or by the City on the behalf of the Authority, prior to the adoption of this resolution be, and the
same hereby are, in all things ratified, approved and confirmed.
IT IS FURTHER RESOLVED,
that any bank designated above as a depository, may be used as a
depository for investment purposes, so long as the investments comply withauthorized investments as set
forth in Minnesota Statutes.
IT IS FURTHER RESOLVED,
that any brokerage firm with offices in the State of Minnesota may be
used as a depository for investment purposes so long as the investments comply with the authorized
investments as set forth in Minnesota Statutes.
IT IS FURTHER RESOLVED,
that the funds of the Authority can be held in accounts at such
brokerage firms under the name and federal identification number of the City, together with the funds of
the City, provided that separate fund accounting records are maintained for the respective Authority and
5
City shares of such accounts in a manner consistent with generally accepted accounting and auditing
standards.
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February 6, 2016
BE IT FURTHER RESOLVED,
that any and all resolutions heretofore adopted by the Board of
Commissioners of the Authority with regard to depositories or brokerage firms are superseded by this
resolution.
ORDER OF ECONOMIC DEVELOPMENT AUTHORITY
Passed this __6th___ day of ____February___________, 2017
Offered by:Murzyn
Seconded by:Williams
Roll Call:All ayes
President
Attest:
Assistant Secretary
2.EDA Bylaws Amendment
After reviewing the Columbia Heights Economic Development Authority
staff has become aware of outdated language specifically in regards to the election of an
Assistant Treasurer. The Assistant Treasurer is an EDA position that is supposed to be elected
annually; however the Assistant Treasurer has always been the Finance Director of Columbia
Heights. Instead of electing an Assistant Treasurer annually, staff proposes that the EDA bylaws
be amended to permanently appoint the duties of the Assistant Treasurer to the Finance Director
of Columbia Heights. Attached please find the amended and restated bylaws of the EDA.
Members were provided with a copy of the bylaws showing all proposed language changes in the
EDA bylawsthat weremarked with an underlinefor an addition or a strikeoutto indicate a
deletion.
Staff recommends approving the Amended and Restated Bylaws of the EDA as presented.
Questions from members:
Schmitt questioned whether the EDA appointments must be approved by the City Council. She
questioned the transition ofmembers in January and whether the old members should have been
at the first meeting of 2017 since the Council members appointed to the EDA serve the same
term as their Council seat. The confusion of this issue was because the EDA meeting was held
prior to the City Council meeting where the newly elected members usually take their oath of
office. However, Buesgens and Schmitt took their oath of office prior to that meeting.
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Ingram told membersthat the By-laws and Enabling Resolution to create the EDA states that the
City Council must approve the new commission members
appointment. Hogeboom told membersthat action was taken by the City Council at the January
th
9meeting which was held afterthe January EDA meeting. Therefore, the EDA members from
2016 were still active per legal counsel.
Motion byWilliams, seconded byMurzyn, to waive the reading of Resolution 2017-03, there
being ample copies available to the public. All ayes. MOTION PASSSED.
Motion by Williams, seconded by Buesgens, to adopt Resolution 2017-03, a resolution approving
an amendment to the bylaws of the Columbia Heights Economic Development Authority. All ayes.
MOTION PASSED.
COLUMBIA HEIGHTSECONOMIC DEVELOPMENT AUTHORITY
RESOLUTION NO. 2017-03
RESOLUTION APPROVING AMENDMENT OF BYLAWS
Section 1.Recitals.
1.01.
proposed certain amendments to its
Bylaws.
1.02.Article IV, Section 6 of the Bylaws provides for amendments to the Bylaws by
majority vote of the Board at any regular or special meeting of the Authority.
1.03.The Board has determined that it is reasonable, expedient and in the best interest
of the public to amend Article II, Sections 1 and 7 of the Bylaws to designate the City Finance
Director as Assistant Treasurer of the Authority, and to amend Article III, Section 1 of the
Bylaws to update the regular meeting dates of the Authority Board.
Section 2.Approval of Amendment to Bylaws.The Authority hereby approves the
amendment to its Bylaws in the form attached to this Resolution as Exhibit A.
th
Adopted by the Columbia Heights Economic Development Authority this 6of February,
2017.
__________________________________
President
ATTEST:
______________________________________
Assistant Secretary
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EXHIBIT A
AMENDED AND RESTATED BYLAWS OF THE
COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY
ARTICLE I -THE AUTHORITY
Section 1. NAME OF AUTHORITY. The name of the Authority is the "Columbia
Heights Economic Development Authority."
Section 2. OFFICE OF AUTHORITY. The offices of the Authority are at City Hall in
the City of Columbia Heights, Minnesota. The Authority may hold its meetings at such other
place or places as it designates by resolution.
Section 3. COMMISSIONERS. The Authority is governed by seven commissioners
appointed in the manner prescribed by City Council Resolution No. 96-01, as amended
(Enabling Resolution) and Minnesota Statutes, Sections 469.090 to 469.1081 (Act).
Section 4. OFFICIAL SEAL. The Authority shall have an official seal, which
shall be in the form of a circle and shall bear the name of the Authority and the year of its
organization.
ARTICLE II -OFFICERS
Section 1. OFFICERS.The officers of the Authority are the President, the Vice-
President, the Secretary, the Treasurer and the Assistant Treasurer. The President, Vice
President, Treasurer and Secretary shall be elected annually. No commissioner may serve as
President and Vice President at the same time. The offices of Secretary and Assistant Treasurer
need not be held by a commissioner.
Section 2. PRESIDENT. The President presides at meetings of the Authority. Except as
otherwise authorized by resolution of the Authority, the President signs contracts, deeds and
other instruments made by the Authority. At each meeting, the President may submit
recommendations and information concerning the business, affairs and policies of the Authority.
At the annual meeting, the President must submit to the Authority a report summarizing the
activities and programs of the Authority for the past year and containing the President's
recommendations for Authority activities for the ensuing year.
Section 3. VICE-PRESIDENT. The Vice-President performs the duties of the President
in the absence or incapacity of the President; and in case of the disability or absence of the
President, or in the case of a vacancy in the office of President, the Vice-President performs the
duties of the President until a successor has been appointed and qualifies.
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Section 4. SECRETARY. The Secretary performs the duties of a secretary for the
Authority.
Section 5. TREASURER. The Treasurer has the duties givenby the Act.
Section 6. EXECUTIVE DIRECTOR. The Columbia Heights City Manager is the
Executive Director of the Authority and has general supervision over the administration of its
business and affairs subject to the direction of the Authority and signscontracts, deeds and other
instruments made by the Authority. The Executive Director is responsible for the management
of the projects and general affairs of Authority under the direction of the Commissioners.
Section 7. OTHER ADMINISTRATIVE OFFICERS.Subdivision 1. Assistant
Secretary. The Authority may designate an assistant to the Secretary to keep the records of the
Authority, record the meetings of the Authority in a journal of proceedings to be kept for that
purpose and to perform the duties of secretary under the direction of the Secretary. The assistant
must keep in safe custody the seal of the Authority and may affix the seal to contracts and
instruments authorized by the Authority.
Subd. 2. Assistant Treasurer. The Columbia Heights Finance Director of the City is the
Assistant Treasurer of the Authority. The Assistant Treasurer of the Authority has custody of
funds of the Authority. The Assistant Treasurer must deposit the funds in the name of the
Authority in a bank or banks selected by the Authority. The Executive Director and the
Assistant Treasurer must sign orders and checks for the payment of money and pay out and
disburse such monies under the direction of the Authority. Except as otherwise authorized by
resolution of the Authority, orders and checks must also be countersigned by the President. The
Assistant Treasurer must keep regular books of accounts showing Authority receipts and
expenditures and render to the Authority, at the annual meeting (and when requested by the
Authority), an account of the financial condition of the Authority.
Subd. 3. Deputy Executive Director. The Columbia Heights Community Development
Director is the Deputy Executive Director and performs such duties and services as specified by
the Executive Director, subject to direction of the Authority. In the absence or incapacity of the
Executive Director, the Deputy Executive Director may sign contracts, deeds and other
instruments made by the Authority.
Section 8. COMBINING ADMINISTRATIVE OFFICES. Administrative offices may
be combined.
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Section 9. ADDITIONAL DUTIES.The officers of the Authority perform other duties
and functions as may from time to time be required by the Authority, these bylaws or the rules
and regulations of the Authority.
Section 10. VACANCIES. If the office of President, Vice-President, Treasurer, or
Secretary becomes vacant, pursuant to Minnesota Statutes 351.02 or by other provisions of law,
the Authority must elect a successor at the next regular meeting or at a special meeting called for
that purpose. The successor serves for the unexpired term of the office.
ARTICLE III -MEETINGS
Section 1. REGULAR MEETINGS. Monthly meetings are held at the regular meeting
place of the Authority on the first Monday of each month at 6:30 p.m. unless that date is a legal
holiday, in which case the meeting will be held on the next succeeding business day. In the
event the date/time/meeting place of a particular meeting must be changed, the Executive
Director may make such change deemed necessary by notifying all Commissioners of the revised
meeting time and date in accordance with the procedures for a special meeting.
Section 3. SPECIAL MEETINGS. Special meetings of the Board of Commissioners
may be called by the President, two members of the Board of Commissioners, or the Executive
Director for the purpose of transacting any business designated in the call. The call (including
location of meeting) for a special meeting must be delivered to Commissioners at least two days
before the meeting, and notice of the meeting must be posted in the Authorit
three days before the meeting. At a special meeting, no business may be considered other than
designated in the call, but if all the members of the Authority are present at a special meeting any
business may be transacted at such special meeting by unanimous vote.
Section 4. QUORUM. The powers of the Authority are vested in the commissioners in
office from time to time. Four commissioners constitute a quorum for the purpose of conducting
business, but a smaller number may adjourn from time to time until a quorum is present, and
when a quorum is not present, a smaller number may adjourn the meeting.
Section 5. ORDER OF BUSINESS. The following is the order of business at regular
meetings of the Authority.
1.Roll call.
2.Approval of minutes of the previous meeting.
3.Management Report.
4.Consent.
5.All other items.
6.Adjournment.
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Section 6.RESOLUTIONS: CONDUCT. Upon direction of the President, or the motion
by two members of the Board of Commissioners, resolutions must be in writing and placed in the
journal of the proceedings of the Authority. The meeting will be conducted in accordancewith
Roberts Rules of Order, Revised.
Section 7. MANNER OF VOTING. Voting on questions coming before the Authority
must be entered in the minutes of the meeting. When a quorum is in attendance, action may be
taken by the Authority upon a vote of the majority of the commissioners.
ARTICLE IV -MISCELLANEOUS
Section 1. FISCAL YEAR. The fiscal year of the Authority shall be the same as the
City's fiscal year.
Section 2. TREASURER'S BOND. The Treasurer shall give bond to the state
conditioned for the faithful discharge of official duties. The bond must be approved as to form
and surety by the Authority and filed with the Secretary and must be for twice the amount of
money likely to be on hand at any one time as determined at least annually the Authority,
provided, however, that the bond must not exceed $300,000.
Section 3. REPORT TO CITY. The Authority shall annually, at a time designated by the
City, make a report tothe City Council giving a detailed account of its activities and of its
receipts and expenditures for the preceding calendar year. The Authority shall, at the City's
request, make available all records necessary to conduct an audit of the Authority's finances.
Section 4. BUDGET. The Authority shall annually send its budget to the City Council
which budget includes a written estimate of the amount of money need by the Authority from the
City in order for the Authority to conduct business during the upcoming fiscal year.
Section 5. SERVICES. The Authority may contract for services of consultants, agents
and others as needed to perform its duties and to exercise its powers. The Authority may also
use the services of the City Attorney or hire a general counsel, as determined by the Authority.
The Authority may not hire temporary or permanent employees without prior approval of the
City Council.
Section 6. AMENDMENTS TO BYLAWS. The bylaws of the Authority may be
amended only with the approval of at least four commissioners at a regular meeting or at a
special meeting called for that purpose.
Amended Bylaws Approved: _____February 6__________, 2017.
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3.Right of Reverter Clause for property located at 4647 Polk Street NE-Resolution
2017-04.
As requested by Steve and Katherine Pepple
the right-of-
dated August 28, 2014 for the construction of a single-family, owner-occupied home at 4647
Staff sent out a 30-day written notice to the Pepples on January 6, 2017. The written notice
obligated the Pepples to obtain a building permit foran approved house plan by 3:30 PM on
February 6, 2017 or the EDA would re-enter and take back possession of the Property. Since the
Pepples requested that the EDA purchase the Property back, they have let the 30-day written
notice expire. The EDA may now take back possession of the property and reimburse the
Pepples $6,144.26 for the Property. This amount was previously determined at the EDA
meeting on January 3, 2017 by deducting one plan review fee of $1,355.74 from the original
purchase price of $7,500.
A commitment will be completed for title insurance to verify that the Property has not been
encumbered by mortgages liens, and/ or home equity loans. The cost of title insurance will be
deducted from the sale price of the Property once the EDA sells the lot to a developer. Staff
anticipates that the Property would sell to a state licensed home builder for about $20,000 -
$25,000.
For the consideration of the EDAat this meeting is Resolution 2017-04that approves the right-
of-reverter, cancels the Agreement with the Pepples, and adds the Property back into the Single
Family Home Lot Sales Program, all subject to the receipt of a commitment for title insurance
that is satisfactory to staff and legal counsel.
Staff recommends approving Resolution 2017-04 as presented.
Question from members:
Szurek asked if thePepplesare aware of the amount they are being refunded. Dahl said they are
but he hopes to re-sell the property for $20,000-$25,000 since prices have gone up. He went on
to explain that this Resolution will take care of all actions necessary to take the property back
and
Ingram told members thatthey did get the title work back and the property is free of any liens or
encumbrances.
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,
Motion bySchmitt,seconded byWilliamsto waive the reading of Resolution 2017-04, there
being ample copies available to the public. All ayes. MOTION PASSED.
Motion bySchmitt, seconded byWilliams, to adopt Resolution 2017-04, Resolution approving the
cancellation of the purchase and redevelopment agreement between the Columbia Heights
Economic Development Authority and Katherine and Steve Pepple. All Ayes. MOTION PASSED.
COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY
RESOLUTION NO. 2017-04
RESOLUTION APPROVING CANCELLATION OF PURCHASE AND
REDEVELOPMENT AGREEMENT BETWEEN THE COLUMBIA HEIGHTS
ECONOMIC DEVELOPMENT AUTHORITY AND KATHERINE AND STEVEN
PEPPLE
BE IT RESOLVED By the Board of Commissioners ("Board") of the Columbia Heights Economic
Development Authority ("Authority") as follows:
Section 1. Recitals.
he terms and
conditions of sale and redevelopment of certain property located at 4647 Polk Street and described as Lots 25
and 26, Block 1, Sheffields Second Subdivision to Columbia Heights, Anoka County, Minnesota(the
veyed the Property to the Buyer pursuant to the Contract.
1.02.Pursuant to the Contract, the Buyer was required toconstruct a single family home, subject
ance of
the Property. If the Buyer failed to meet this deadline, the Contract provided that the Authority could,
1.03.The Buyer has failed to construct the single family home as required under the Contract,
and the Authority sent written notice of default to the Buyer on January 4, 2017, informing the Buyer of
its right to exercise its right of reverter. The Buyer has agreed to convey the Property back to the
Authority.
1.04.The Authority finds that exercise of its right of reverter, cancellation of the Contract, and the
remarketing the Property to other potential buyers are in the public interest and in the best interest of the
Authority and City, because these actions will allow the Property to be made available for private
housing goals.
Section 2. Authority Approval; Further Proceedings.
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2.01.The Board hereby approves exercise of its right of reverterand reacquisition of the Property
via a warranty deed from the Buyer, cancellation of the Contract, and the addition of the Property to the
counsel t
ownership interest in the Property.
2.02.The President and Executive Director are hereby authorized to execute on behalf of the
Authority the cancellation ofthe Contract and any documents related to reacquisition of the Property
requiring execution by the Authority.
2.03.Authority and City staff are authorized and directed to take all actions to add the Property to
the Program and to market the Property pursuant to the Program guidelines.
Approved by the Board of Commissioners of the Columbia Heights Economic Development Authority this
th
6day of February, 2017.
President
ATTEST:
Assistant Secretary
4.Third Amendment ACCAP Purchase Agreement for EDA Acquisition of 4641-43
Polk St-Resolution 2017-05.
Dahl explained that previously, the Columbia Heights Economic Development Authority (EDA)
approved a Second Amendment to the Purchase Agreement on November 7, 2016 to extend the
closing date to December 30, 2016. However, due to more unanticipated delays, ACCAP is
requesting the closing date be extended again. For the EDA consideration at this meetingis a
Third Amendment to the Purchase Agreement, which extends the closing forthe sale of the
Property to take place on or before March 31, 2017. ACCAP intends to close on the Property as
soon as an extension is granted.
Staff recommends the approval of Resolution 2017-05, a resolution approving the Third
Amendment of a Purchase Agreement that will extend the closing date of the Property to take
place on or before March 31, 2017.
Questions from members:
There were no questions or comments regarding this matter.
Motion by Williams, seconded byBuesgens,to waive the reading of Resolution 2017-05, there
being ample copies available to the public. All ayes. MOTION PASSED.
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February 6, 2017
,
Motion by Williams, seconded byMurzynto adopt Resolution 2017-05, a resolution approving a
Third Amendment of a Purchase Agreement between the Columbia Heights Economic
Development Authority and Anoka County Community Action Program. All ayes. MOTION
PASSED.
COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY
EDA RESOLUTION NO. 2017-05
RESOLUTION APPROVING A THIRD AMENDMENT TO
A PURCHASE AGREEMENT BETWEEN THE COLUMBIA
HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY
AND ANOKA COUNTY COMMUNITY ACTION
PROGRAM, INC.
Economic Development Authority
Section 1.
Recitals.
1.01.The Authority currently administers the Downtown CBD Redevelopment Project (the
469.090 to 469.1082, as amended.
1.02.
Seller to the Authority of certain property within theProject and City legally described as follows:
nd
That part of Lot 23 lying north of the South 20 feet of the SD Lot 23 and Lot 24, Block 1, Sheffields 2
1.03.On August 31, 2016, the parties entered into a First Amendment to the Purchase Agreement
1.04.On October 28, 2016, the parties entered into a Second Amendment to the Purchase
1.05.The parties have negotiated and propose to execute a Third Amendment to the
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Section 2.Third Amendment Approved.
2.01.The Third Amendment as presented to the Board is hereby in all respects approved,
subject to modifications that do not alter the substance of the transaction and that are approved by the
President and Executive Director, provided that execution of the Third Amendment by such officials shall
be conclusive evidence of approval.
2.02.The President and Executive Director are hereby authorized to execute on behalf of the
Authority the Third Amendment and any documents referenced therein requiring execution by the
Authority, and to carry out, on behalf of the Authority, its obligations thereunder.
2.03.Authority staff and consultants are authorized to take any actions necessary to carry out
the intent of this resolution.
Approved by the Board of Commissioners of the Columbia Heights Economic Development
Authority this 6thday of February,2017.
President
ATTEST:
Assistant Secretary
THIRD AMENDMENT TO PURCHASE AGREEMENT
is made this 6 day of
February, 2017by and between Anoka County Community Action Program, Inc., a Minnesota
ghts Economic Development
WHEREAS, the Seller and the Buyer entered into that certain Purchase Agreement dated
Seller to the Buyer
of certain property at 4641/4643 Polk Street located in the City of Columbia Heights, Anoka
County, Minnesota and legally described as follows:
That part of Lot 23 lying north of the South 20 feet of the SD Lot 23 and Lot 24, Block 1,
nd
Sheffields 2Subdivision, County of Anoka, State of Minnesota
WHEREAS, on August 31, 2016, the parties entered into the First Amendment to
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WHEREAS, on October 28, 2016, the parties entered into the Second Amendment to
Purchase Agreement in order to
WHEREAS, due to unanticipated delays, the parties have determined to further extend
the deadline for closing on the conveyance of the Property.
NOW, THEREFORE, in consideration of the premises and the mutual obligations of the
parties hereto, each of them does hereby covenant and agree with the other as follows:
1.Amendment to Paragraph 7of the Agreement. Paragraph 7 of the Agreement is
amended as follows:
CLOSING DATE.
The closing of the sale of the Property shall take place on or before March
31, 2017unless otherwise mutually agreed by the parties. The closing shall take place at
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Columbia Heights City Hall, located at: 590 40Avenue NE in Columbia Heights, Minnesota or
such other location as mutually agreed upon by the parties.
2.Miscellaneous. Except as amended by this Amendment, the Agreementshall
remain in full force and effect.
IN WITNESS WHEREOF,
the parties have executed this Third Amendment to Purchase
Agreementas of the date written above.
SELLER
ANOKA COUNTY COMMUNITY
ACTION PROGRAM, INC.
By: ________________________________
Its: _________________________________
BUYER
COLUMBIA HEIGHTS
ECONOMIC DEVELOPMENT
AUTHORITY
By: _________________________________
Its: President
By:_________________________________
Its: Executive Director
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February 6, 2017
OTHER BUSINESS:
DISCUSS OPTIONS FOR REFUNDING (REFINANCING) THE EDA 2007
1.
LIQUOR STORE BONDS
Kloiber explained that in 2007, the EDA issued $5 million of revenue bonds to finance the
construction of two new liquor stores. The EDA owns the two buildings constructed, and leases
City owns the underlying land.
Those 2007 EDA bonds are now eligible for refunding (refinancing). The remaining $3.4million
of the 2007 bonds that is still outstanding is scheduled to be paid through the year 2030. The
2007 bonds have an interest rate of approximately 4.9%. Interest rates of approximately 2.6%
are currently available, depending on the type and terms of the refunding bonds issued.
Kloiber reviewed
Associates,and presented an overview of these options to the Commissioners.He said the first
decision is how to re-finance the Liquor Store Bonds that became eligible last week. He told
members the EDA could ref-finance the Lease Revenue Bond at 3.1% for a savingsof
approximately $400,000, or the City could go with a General Obligation Bond with an interest
rate of 2.6% for a savings of about $700,000. Herecommendedthat the refunding bonds be
issued by the City instead of the EDA, in order to obtain the more favorable interest rate
In addition to the Liquor Bonds, the Public Safety Building Bonds are coming up for re-
financing in the fall of 2017 or we could do an advancere-financing and do both of them at the
same time. The advance re-financing does cost more than if we wait till they become eligible in
the fall. But if interest rates rise, it may save more than what the additional costs would be to do
it now. Since w
discuss and decide on.Fehst thought we should take advantage of the low interest rates we have
in place now, not knowing how much they may increase as the economy improves.
The final thing to consider is the City has been building up a Reserve Fund as part of their five
year plan. It was anticipated that long term we would use part of that fund when the Public
Safety funds became eligible to pay off some of the bonds toreduce the debt level. There
currently is about 2 million dollars in the Reserve account. The EDA/Council needs to decide
what it wants to do with that amount. Kloiber said the decision may be to use it as originally
planned or for a new City Hall building located near the Library. We could then sell the existing
building and it could become an EDA Redevelopment Project.
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Kloiber said he will work with Ehlers to firm up the options the City has regarding these three
issues. He said he understands the general consensus of the EDA is to move forward with re-
financing the Liquor Bonds with General Obligation Bonds and to move forward with the
transferofownership of the buildings to the City in exchange for theCity paying off the EDA
bonds.
in a worst case scenario that the Liquor stores were closed there still is 2.5 million in inventory
plus the three properties that could be sold which would be able to pay down the 3.5 million
dollar debt. Even if it takes a while to sell the buildings, Ehlers said the City is in the position of
coming up with other funds to pay for the bonds in an emergency to avoid defaulting on the
bonds.
Schmitt asked if the EDA would have to give ownership of the Liquor stores to the City before
the process to re-finance the Bonds could start. Ingram said the EDA has collateral ownership
once.
Buesgens suggested holding a mini goal setting session to discuss the use of the 2 million dollar
reserve fund prior to the target date for re-financing of May. Fehst and Kloiber said they will get
the options from Ehlers during the next month andthen a meeting will be scheduled to discuss
the refinancing options and the use of the reserve funds.
2.DISCUSSION REGARDING MEMBERSHIP OF THE EDA
Commission member Schmitt requested a discussion regarding membershiprequirements for the
number of council members that must be on the EDA and if there arerequirementsthat address
non-resident members. Martha Ingram prepared a memo to the members that explained the
established bylaws of the EDA and the flexibility allowed under them. It was noted that there
must be 7 members total, that at least two have to be councilmembers, but no more than five.
She also noted that there is no residency requirement for eligibility to serve on the EDA
Commission.
Schmitt stated she would like to see other residents with business backgroundsbe included as
members of the EDA, especially those with Community or Economic Development experience.
Schmitt said that the City received an application from a Mr. Kaiser who has a background in
this field and would like to see him appointed to the vacant EDA seat rather than waiting for the
new Council member to be appointed. She suggested appointing the new council member as an
alternate. Ingram told members that an alternate wouldnot be able to voteon issues.
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Ingram then told members that the Enabling Resolution mirrors the language of the EDA Act so
there is no need to make any changes to the By-Laws if they wish to appoint a person other than
a council member
especially in out-state areas.
Szurek asked if we could change the number of members from 7 to 9. Ingram said we could, but
Hogeboom and Dahl spoke of the Business Council that is an off shoot of the Chamber. They
said that interest in it has waned but maybe participants from that group could be tapped to serve
on some type of task force that would make recommendations to the EDA if the EDA is
interested in forming this type of committee.
persons) it would have an impact on the Annual Financial Reports.
Hogeboom told members that staff will come back next month with some scenarios to consider.
3.2017 STRATEGIC PLANNING DISCUSSION
Dahl explained that throughout 2016, the Economic Development Authority (EDA) has
accomplished several projects and objectives. The purpose of this report is to review and discuss
EDA would like staff to focus on in 2017. Highlights of 2016 accomplishments include, but not
limited tothe following:
2016 EDA Accomplishments
Facilitated redevelopment on the corner of University Avenue NE and 37th Avenue NE
with the development of the Legends of Columbia Heights in an effort to complete the
Huset Park redevelopment project initiated back in 2005 (One undeveloped parcel
remains on the corner of Huset Parkway and Jefferson Street).
Leveraged funds through the Legends of Columbia Heights development for the
completion of a trail and fencing along the east side of University Avenue NE between
40th Avenue NE and 37th Avenue NE.
Completed a voluntary groundwater monitoring report in Huset Park for the MPCA.
Stimulated the redevelopment opportunity of the Central Valu Center by establishing a
TIF district and entering into a Contact for Private Redevelopment with Hy-Vee for a
grocerystore to be located in Columbia Heights once again.
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Sold the remaining lots in the Scattered Site TIF District Housing Program.
Initiated the Single Family Home Lot Sales Program and sold 5 of 6 lots that were
available.
Now, as the EDA looks ahead to 2017, staff seeks to facilitate discussion about what projects,
programs, and objectives commission members desire to see initiated and/ or completed in 2017.
First, staff would like to review the fund balances of several accounts that the EDA utilizes to
accomplish its initiatives. The figures below are estimations and subject to change as the year-
end fund balances have not been finalized for all the accounts.
Fund 213, Parkview Villa South-an HRA Account$ 1,000,000
Must be used for Housing Redevelopment
Fund 226, Special Projects Revenue-Used by EDA, CD, Public Wks.$ 675,000
Use for something pertinent to all 3 depts. (i.e. street scaping)
Fund 371, TIF T4 Kmart/ Central Ave-Heritage Hts. area$ 400,000
ForGrand Central and Heritage Hts. Area Development
Fund 376, TIF A3,C7,C8 Scattered Site District-Residential only$ 190,000
Must be for Income Qualified Buyers
Fund 420, CAP Improvement Development:$ 950,000
There is still $304,000 owed to us.
The list below provides a starting point for the discussion tonight. Staff highly encourages the
EDA commission members to provide feedback and propose changes to the following 2017
proposed projects, programs, and objectives:
2017 Proposed Projects, Programs and Objectives
Develop and initiate a business retention and expansion program to assist the Columbia
Heights business community.
Land acquisition of residential properties located in commercial zoning districts along
Central Avenue. (Supporting Map Attached)
Land acquisition and initiate redevelopment of the Root Property located on the corner of
40th Avenue and University Avenue.Anoka Co. will accept applications/presentation
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for CDBG funds on Feb. 14and will make their decision in March. The City would get
notice of final funding in June.
Finalize the closing of the ACCAP property located at 4641-43 Polk Street NE.
Demolish the structures located at 4201 Jefferson Street NE and 4641-43 Polk Street NE,
and add both properties to the Single Family Home Lot Sales Program.
Reacquire and add 4647 Polk Street to the Single Family Home Lot Sales Program.
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After the remaining lots sell (4641 Tyler Street NE, 4647 Tyler Street NE, 4641 Polk
Street NE, 4647 Polk Street NE, and 4201 Jefferson Street NE) in the Single Family
Home Lot Sales Program, discontinue the program until more lots are acquired.
Determine a fund source and create a housing rehabilitation grant or low to no interest
loan program for exterior remodels and/ or interior renovations.
Discussion:
There was also adiscussion regarding non-conforming homes along Central Avenue. The EDA
thth
would like staff to reach out to owners between 37and 45to see who may be interested in
selling their properties, or to pursue the first right of refusal. Dahl said he would prepare a letter
and an inventory list of the non-conforming properties, with owner information, estimated
market values, etc. and provide this to the members at the next meeting.
Dahl asked members to think about whether they want to continue purchasing residential
properties for demolition or for rehab, or to change the focus to business retention and expansion
funding. He said this is something else to be discussed at the goal setting session. The soonest
we can probably schedule thismeeting would be in April after the new council member is
appointed, however no date was established at this meeting .
Buesgens asked where the proceeds from the Library sale go. Dahl said the 420 account would
be reimbursed then the rest goes to the City.
The meeting was adjourned at7:30 pm.
Respectfully submitted,
Shelley Hanson
Secretary
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RESOLUTION NO. 2017-06
A Resolution of the Economic Development Authority of Columbia Heights, Minnesota, Approving the
Financial Statements for Month of January2017 and the Payment of the Bills for the Month of January
2017.
WHEREAS, the Columbia Heights Economic Development Authority (EDA) is required by Minnesota Statutes
Section 469.096, Subd. 9, to prepare a detailed financial statement which shows all receipts and
disbursements, their nature, the money on hand, the purposes to which the money on hand is to be applied,
the EDA's credits and assets and its outstanding liabilities; and
WHEREAS, said Statute also requires the EDA to examine the statement and treasurer's vouchers or bills and if
correct, to approve them by resolution and enter the resolution in its records; and
WHEREAS, the financial statement for the month of January 2017 has been reviewed by the EDA Commission;
and
WHEREAS, the EDA has examined the financial statements and finds them to be acceptable as to both form
and accuracy; and
WHEREAS, the EDA Commission has other means to verify the intent of Section 469.096, Subd. 9, including
but not limited to Comprehensive Annual Financial Reports, Annual City approved Budgets, Audits and similar
documentation; and
WHEREAS,
of Minne
NOW, THEREFORE BE IT RESOLVED by the Board of Commissioners of the Columbia Heights Economic
Development Authority that it has examined the referenced financial statements including the check history,
and they are found to be correct, as to form and content; and
BE IT FURTHER RESOLVED the financial statements are acknowledged and received and the check history as
presented in writing is approved for payment out of proper funds; and
BE IT FURTHER RESOLVED this resolution is made a part of the permanent records of the Columbia Heights
Economic Development Authority.
ORDER OF ECONOMIC DEVELOPMENT AUTHORITY
Passed this _________ day of ______________________, 2017
Offered by:
Seconded by:
Roll Call:
President
Attest:
Assistant Secretary
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Resolution 2017-06
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AGENDA SECTION BUSINESS ITEMS
ITEM NO.X
MEETING DATE MARCH 6, 2017
CITY OF COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY
ITEM: Single Family Home Lot Sales Program Concept Application Approval 4647 Polk Street
DEPARTMENT: Community Development
BY/DATE: Keith M. Dahl, February 22, 2017 BY/DATE:
BACKGROUND:
The Columbia Heights Economic Development Authority (EDA) has received a completed concept
application from Tollberg Homes offering $25,000 for the purchase of the property located at 4647 Polk Street
The Property is part of the Single Family Home Lot Sales Program, which was established
by the EDA in 2015 to stabilize and increase property values in the Heritage Heights Neighborhood.
estimated market land value for each individual property.
However, the EDA has the right to review and adjust lot prices periodically provided that sufficient evidence
supports the lots price reduction.
The 2017 Estimated Market Land Value for this particular property is $51,300. However, in speaking with
various home builders and realtors, staff received comments that the lots located in the Heritage Heights
neighborhood, are generally lower in value than other properties throughout the City.
of $25,000 is around what the EDA can expect to sell this property for.
Along with a completed concept application, Tollberg Homes has submitted a written letter of intent and an
example house plan. The example house plan is a representation of what Tollberg Homes intends to construct
on the Property and should be reviewed based upon the features present.
For consideration tonight is the concept approval of the submitted application by Tollberg Homes. If the EDA
approves the concept approval, staff will work with Tollberg Homes to determine specific house plans and to
prepare a Purchase and Redevelopment Agreement for the next EDA meeting on April 3, 2017.
STAFF RECOMMENDATION:
Staff recommends approval of the concept application submitted by Tollberg Homes as presented.
RECOMMENDED MOTION(S):
Motion: Move to approve the concept application submitted by Tollberg Homes for the property located at
4647 Polk Street NE, Columbia Heights, MN 55421.
Motion: Move to authorize staff to work with Tollberg Homesto determine specific house plans for the
construction of a single-family home and to prepare a Purchase and Redevelopment Agreement for
consideration at the next EDA meeting on April 3, 2017.
ATTACHMENTS:
1.Completed Proposal Form (4 Pages)
2.Tollberg Homes Letter of Intent (2 Pages)
3.Example House Plan (4 Pages)
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City of Columbia Heights EDA Letter
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AGENDA SECTION OTHER BUSINESS
ITEM NO.7
MEETING DATE MARCH 6, 2017
CITY OF COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY
ITEM: Membership of the EDA Discussion
DEPARTMENT: Economic Development Authority APPROVAL:
BY/DATE: Keith Dahl, February 27, 2017 BY/DATE:
BACKGROUND:
On February 6, 2017, the Columbia Heights Economic Development Authority (EDA) discussed information
about membership requirements, vacancies, appointments, and term lengths for EDA commissioners. Legal
counsel was present to address questions and/ or concerns EDA commissioners had pertaining to
requirements set forth by Minnesota State Statutes, Sections 469.090 to 469.1081 (EDA Act).
One question raised by EDA Vice President, Schmitt was in regards to the number of commissioners
constituting the EDA. Legal counsel stated that the maximum number of EDA commissioners may not exceed a
nine-member authority; however, this is incorrect as the EDA Act states an EDA shall consist of a three, five, or
seven-member authority. Thus, the EDA may not increase the number of commissioners constituting it.
If the EDA still desires to make any structural change to its current membership, it is not necessary to make
any formal changes to either the enabling resolution or the bylaws of the EDA; rather changes may simply be
made by appointments of different commissioners when terms expire. The following list is for reference to
when terms expire for EDA commissioners:
2017 EDA Commissioners Term Ends
Herringer, Gerry January 2, 2018
Szurek, Marlaine January 2, 2018
Murzyn Jr., John January 7, 2019
Schmitt, Donna January 7, 2019
Buesgens, Connie January 4, 2021
Williams, Bobby January 4, 2021
STAFF RECOMMENDATION:
Staff
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City of Columbia Heights EDA Letter
AGENDA SECTION OTHER BUSINESS
ITEM NO.8
MEETING DATE MARCH 6, 2017
CITY OF COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY
ITEM: Central Avenue Single-Family Homes Discussion
DEPARTMENT: Economic Development Authority APPROVAL:
BY/DATE: Keith Dahl, February 27, 2017 BY/DATE:
BACKGROUND:
On February 6, 2017, the Columbia Heights Economic Development Authority (EDA) reviewed accomplished
projects in 2016, but also discussed several projects, programs, and objectives commissioners desired to see
initiated and/ or completed in 2017.
One of the proposed objectives mentioned by EDA commissioner, Buesgens and EDA Treasurer, Williams was
related to the property acquisition of legal non-conforming, single-family homes and/ or properties that have
the potential to become illegal non-conforming, single-family homes along Central Avenue. A non-conforming,
single-family home is a residential dwelling that is located within a commercial zoning district that has been
grandfathered in to the commercial zoning designation. Whereas, an illegal non-conforming, single-family
home is a residential dwelling that converted into a commercial use before it converted back into a residential
use.
Previously, staff mapped out twelve (12) properties in the Central Business District that were either a non-
conforming, single-family home or a property that had potential to become an illegal non-conforming, single-
family home. However, the EDA requested more information about all instances along Central Avenue.
The attached spreadsheet identified alltwenty-two (22) instances where single-family homes were located in
commercial zoning districts along Central Avenue. These properties where identified by inventorying Central
Avenue, as well as reviewing their 2016 tax classification. There were fourteen (14) instances of a non-
conforming, single-family home and nine (9) instances of a property that has potential to become an illegal
non-conforming, single-family home.
Staff has determined that if the EDA purchased every property at the 2017 estimated market value, the EDA
could expect to pay around 2.8 million, which include any professional service fees. Overall, this
objective will take several years to accomplish, but staff will continue to keep the EDA apprised of any
properties that become available from the attached list.
ATTACHMENTS:
1.Inventory of Single-Family Homes Along Central Avenue
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City of Columbia Heights EDA Letter
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