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ECONOMIC DEVELOPMENT AUTHORITY AGENDA
April 3, 2017
6:30 pm
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 March 6, 2017
5.Approve Financial Report and Payment of Bills for February 2017 - Resolution 2017-07
Motion: Move to approve Consent Agenda as presented.
PUBLIC HEARING
6.Single Family Home Lot Sales Program Final Sale Approval of 4647 Polk Street
Resolution 2017-08
Motion: Move to waive the reading of Resolution 2017-08, there being ample copies
available to the public.
Motion: Move to adopt Resolution 2017-08, Resolution Approving the Purchase and
Redevelopment Agreements with Tollberg Homes, LLC for the acquisition of 4647 Polk
Street NE, Columbia Heights, MN 55421.
BUSINESS ITEMS
7.Fourth Amendment ACCAP Purchase Agreement for City Acquisition of 4641-43 Polk
Street Resolution 2017-09
The next regular EDA meeting will be aĂŦ ƳℓĊẽ ƴƲƳƹ at City Hall.
Motion: Move to waive the reading of Resolution 2017-09, there being ample copies
available to the public.
Motion: Move to adopt Resolution 2017-09, a resolution approving a Fourth
Amendment of a Purchase Agreement between the Columbia Heights Economic
Development Authority and Anoka County Community Action Program.
OTHER BUSINESS
8.Redevelopment Discussion of 828 40th Avenue
9.Columbia Heights Economic Development Authority 2017 Levy Discussion
10.Adjourn
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ECONOMIC DEVELOPMENT AUTHORITY (EDA)
MINUTES OF THE MEETINGOF
MARCH6, 2017
The meeting was called to order at 6:30pm by PresidentSzurek
Members Present:Schmitt, Williams, Buesgens, Murzyn, Herringer, and Szurek
Staff Present:Kelli Bourgeois,Keith Dahl, and Shelley Hanson
PLEDGE OF ALLEGIANCE-
RECITED
CONSENT ITEMS
1.Approve the Minutes from February 6, 2017
2.Approve the Financial Report and Payment of Bills for January 2017on Resolution
2017-06.
Questions by Members:
No questions or comments.
Motion byWilliams,seconded bySchmitt,to waive the reading of Resolution 2017-06
there being an ample amount of copies available to the public. All ayes. MOTION
PASSED.
Motion byWilliams, seconded bySchmitt, to approve the Minutes of February 6, 2017,
andtheFinancial Report and Payment of Bills forJanuary, 2017as presented.All ayes.
MOTION PASSED.
RESOLUTION NO. 2017-06
A Resolution of the Economic Development Authority of Columbia Heights, Minnesota, Approving
the Financial Statements for the Month ofJanuary, 2017and 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, thepurposes 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
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EDA Minutes
Page 2
February 6, 2017
WHEREAS,
the financial statementsfor the month ofJanuary, 2017has 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,
NOW, THEREFOREBE 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 6thday ofMarch, 2017.
Motion by:
Seconded by:
BUSINESS ITEM
1.Single Family Home Lot Sales Program-Concept Application Approval for 4647
Polk Street
has received a completed concept application from Tollberg Homes offering $25,000 for the
roperty 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. Dahl reminded
members this is the parcel we just purchased back from the Pepples.
property. However, the EDA has the right to review and adjust lot prices periodically provided
that sufficient evidence supports the lots price reduction.
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EDA Minutes
Page 3
March 6, 2017
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
sell this property for. Dahl told members the lot was sold for $7,500 a few years back to the
Pepples.
market. The new price will cover any legal fees we incurred during the reverter process.
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 only a representation of what
Tollberg Homes intends to construct on the Property.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 recommends approval of the conceptapplication submitted by Tollberg Homes as
presented.
Questions by members:
Herringer asked if there have been any problems with Tollberg Homes during the construction of
ms. He went on to
explain that the language in the Purchase and Redevelopment Agreement has been changed and
-refundable regardless if there are any
problems with soil conditions.
Szurek asked what the proposed home will sell for. Dahl said that Tollberg estimates it will sell
for $230,000. Dahl said the four he has built thus far have sold for $190,000-$210,000.
Schmitt noticed the example plan only had two bedrooms and she wanted to make sure the EDA
lanat this meeting. Dahl told her that was correct, and that the actual
plan will be considered at the next meeting.
Herringer asked how we make sure these properties remain owner occupied which is a
requirement of the program. Dahl said that staff has made special notations in permit works
which flags the property for 10 years to make sure that no one can come in toobtain a rental
license.
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EDA Minutes
Page 4
March 6, 2017
Motion by Buesgens, seconded byWilliams,to approve the concept application submitted by
Tollberg Homes for the property located at 4647 Polk Street NE, Columbia Heights, MN 55421.
All ayes. MOTION PASSED.
Motion by Williams, seconded bySchmitt,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.All ayes. MOTION PASSED.
OTHER BUSINESS:
MEMBERSHIP OF THE EDA
Dahl reminded members that 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,Dahl told
members thatthe 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 CommissionersTerm Ends
Herringer, Gerry January 2, 2018
Szurek, MarlaineJanuary 2, 2018
Murzyn Jr., John January 7, 2019
Schmitt, Donna January 7, 2019
Buesgens, Connie January 4, 2021
Williams, Bobby January 4, 2021
Therefore,
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EDA Minutes
Page 5
March 6, 2017
SINGLE FAMILY HOMES ALONG CENTRAL AVE-DISCUSSION
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.
Dahl provided members with aspreadsheet thatidentified all twenty-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.
Since the existing homes have a lower tax base than if they werecommercial sites, the EDA may
want to consider purchasing these as they become available. Staff has determined that if the
EDA purchased every property at the 2017 estimated market value,the EDA could expect to pay
will take several years to accomplish, but staff will continue to keep the EDA apprised of any
properties that become available from the list.
Questions/comments from members:
st
Herringer asked if we could attempt to enter into 1Right of Refusal Contracts with those
owners willing to do so. He said this may help owners
there is an interested party, and it would help prevent us missing any properties that go on the
market.
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EDA Minutes
Page 6
March 6, 2017
Buesgens asked what the tax difference is between residential and commercial. Dahl said he
would have to check with Anoka County to see what that amount is. Buesgens then asked if we
could go after Real Estate agents for falsely advertising property . She also suggested that it
might be possible for us to purchase the houses, then to re-sell them so they can be moved off
site.
Dahl told members if they are interested in pursuing this idea that they will have to look at
sources of revenue and to budget an amount every year in order to purchase these properties. He
stated
once. It is something that staff will have to monitor.
There was a brief discussion about the re-zoning of these properties to commercial and whether
we should re-zone them back to residential or create an ordinance preventing them from being
used as commercial. Dahl told members the re-zoning was done to phase in these properties to
commercial use over time as it was the long range plan the City wanted to happen.
The consensus of the board was to look for funding and move ahead with trying to obtain these
properties if, and when, we are able to do so.
UPDATES
Szurek asked if Hy-Vee was still on schedule to begin construction soon. Dahl reported that he
spoke with representatives from Hy-Vee this week and they plan on starting remediation of the
old Rainbow Store in late spring or early summer. They will also start construction of the new
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convenience store/gas station on 47and Central at the same time. Dahl said they will put signs
-2018.
The meeting was adjourned at7:10pm.
Respectfully submitted,
Shelley Hanson
Secretary
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RESOLUTION NO. 2017-07
A Resolution of the Economic Development Authority of Columbia Heights, Minnesota, Approving the
Financial Statements for Month of February 2017 and the Payment of the Bills for the Month of
February 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 February 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,
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:
Vice President
Attest:
Assistant Secretary
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Resolution 2017-07
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AGENDA SECTION PUBLIC HEARING
ITEM NO.6
MEETING DATE APRIL 3, 2017
CITY OF COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY
ITEM: Single Family Home Lot Sales Program Final Sale Approval 4647 Polk Street
DEPARTMENT: Community Development
BY/DATE: Keith M. Dahl, March 24, 2017 BY/DATE:
BACKGROUND:
On March 6, 2017, the Columbia Heights Economic Development Authority (EDA) approved the concept
application submitted by Tollberg Homes offering to purchase the property located at 4647 Polk Street NE (the
for $25,000. The Property is approximately 0.23 acres and 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.
ices are based upon the 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 the Property is $51,300. However, in speaking with various home
builders and realtors, staff received commentsthat the lots located in the Heritage Heights neighborhood, are
generally lower in value than other properties throughout the City.
what the EDA can expect to sell this property for.
Staff requests consideration of the EDA for final sale approval of the Property. Attached is the Purchase and
Redevelopment Agreement for the sale of the Property, which was drafted by Kennedy & Graven. Specific
house plans may be found in the Purchase and Redevelopment Agreement attached hereto in Exhibit B. The
proposed house plan submitted by Tollberg Homes meets the building requirements set forth by the Single
Family Home Lot Sales Program Guidelines.
Staff received the earnest money in the amount of $2,000 and a partially executed Purchase and
Redevelopment Agreement. If the EDA approves the final sale tonight, the earnest money will become non-
refundable and staff will obtain the necessary signatures at the EDA meeting to fully execute the Purchase and
Redevelopment Agreement. If the EDA denies the final sale approval, staff will reimburse the earnest money
to Tollberg Homes. A representative from Tollberg Homes will be present at the EDA meeting to discuss their
proposal, as well as answer any questions EDA commission members have regarding their proposal.
STAFF RECOMMENDATION:
Staff recommends final sale approval of 4647 Polk Street NE, Columbia Heights, MN 55421.
RECOMMENDED MOTION(S):
Motion: Move to open the public hearing regarding the proposed sale of certain EDA owned property located
at 4647 Polk Street NE, Columbia Heights, Minnesota to Tollberg Homes, LLC for purposes of construction of a
single-family home.
Motion: Move to close the public hearing.
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City of Columbia Heights EDA Letter
City of Columbia Heights - Council Letter Page 2
Motion: Move to waive the reading of Resolution 2017-08, there being ample copies available to the public.
Motion: Move to adopt Resolution 2017-08, Resolution Approving the Purchase and Redevelopment
Agreements with Tollberg Homes, LLC for the acquisition of 4647 Polk Street NE, Columbia Heights, MN
55421.
ATTACHMENTS:
1.Resolution 2017-08 (3 Pages)
2.Purchase and Redevelopment Agreement (22 Pages)
48
COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY
RESOLUTION NO. 2017-08
RESOLUTION APPROVING PURCHASE AND REDEVELOPMENT
AGREEMENT WITH TOLLBERG HOMES, LLC.
BE IT RESOLVED BY the Board of Commissioners ("Board") of the Columbia Heights
Economic Development Authority (the "Authority") as follows:
Section 1.Recitals.
1.01.The Authority has previously adopted a program called the Single Family Home Lot
1.02.The) to
purchase certain propertyed hereto
as Exhibit A, and the parties have negotiated aPurchase and Redevelopment Agreement (the
sfor the conveyance of the Property to the Buyer and the
construction by the Buyer of asingle-family home on the Property, all pursuant to the
Guidelines.
1.03.On October 21, 2015, the Planning Commission of the City reviewed the
proposed Program and found that the conveyanceof property pursuant to the Programis
1.04.On the date hereof, the Authority conducted a duly noticed public hearing regarding
the conveyance of the Property to the Buyer, at which all interested parties were given an
opportunity to be heard.
1.05.The Board has reviewed the Agreementin the form on fileat the office of the
Executive Director and finds that the execution thereof and performance of the Authority's
obligations thereunder, including the conveyance of the Property to the Buyer,areconsistent with
the Guidelines andin the best interest of the City and its residents.
Section 2.Approval and Authorization of Agreement and Conveyance
2.01.TheAgreement as presented to the Board and the conveyance of the Property
provided for therein are 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 Agreementby such officials shall be conclusive evidence of approval.
2.02.Authority staff and officials are authorized to take all actions necessary to perform
Agreementas a whole, including without limitation execution
of any documents to which the Authority is a party referenced in or attached to the Agreement, and
496818v1 MNI CL205-52
49
any deedsor other documents necessary to convey theProperty to the Buyer, all as described in the
Agreement.
Section 3.Effective Date. This resolution shall be effective upon approval.
Approved by the Board of Commissioners of the Columbia Heights Economic Development
Authority this 3rdday of April, 2017.
Vice President
ATTEST:
Secretary
496818v1 MNI CL205-52
50
EXHIBIT A
Property
Lot twenty-five (25) and Lot Twenty-
shown by the plat now on file and of record in the office of the Register of Deeds at Anoka,
Anoka County, Minnesota.
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AGENDA SECTION BUSINESS ITEM
ITEM NO.7
MEETING DATE APRIL 3, 2017
CITY OF COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY
ITEM: Fourth Amendment ACCAP Purchase Agreement for City Acquisition of 4641-43 Polk Street
DEPARTMENT: Community Development
BY/DATE: Keith Dahl, March 29, 2017BY/DATE:
BACKGROUND:
Previously, the Columbia Heights Economic Development Authority (EDA) approved a Third Amendment to
the Purchase Agreement on February 6, 2017, which extended the closing date to March 31, 2017. However,
due to more unanticipated delays, ACCAP is requesting the closing date be extended again. For the EDA
consideration tonight is a Fourth Amendment to the Purchase Agreement, which extends the closing for the
sale of the Property to take place on or before May31, 2017.ACCAP needs to obtain another MHFA approval,
which will take at least three weeks. ACCAP intends to close at the end of April or beginning of May.
STAFF RECOMMENDATION:
Staff recommends the approval of Resolution 2017-09, a resolution approving the Fourth Amendment of a
Purchase Agreement that will extend the closing date of the Property to take place on or before May 31, 2017.
RECOMMENDED MOTION(S):
Motion: Move to waive the reading of Resolution 2017-09, there being ample copies available to the public.
Motion: Move to adopt Resolution 2017-09, a resolution approving a FourthAmendment of a Purchase
Agreement between the Columbia Heights Economic Development Authority and Anoka County Community
Action Program.
ATTACHMENTS:
1.Resolution 2017-09 (2 Pages)
2.Fourth Amendment to Purchase Agreement (2 Pages)
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COLUMBIA HEIGHTSECONOMIC DEVELOPMENT AUTHORITY
EDA RESOLUTION NO. 2017-09
RESOLUTION APPROVING A FOURTHAMENDMENT
TOAPURCHASE AGREEMENTBETWEEN THE
COLUMBIA HEIGHTSECONOMIC DEVELOPMENT
AUTHORITYAND ANOKA COUNTY COMMUNITY
ACTION PROGRAM, INC.
BE IT RESOLVED ) of the Columbia Heights
Economic Development Authority) as follows:
Section 1.Recitals.
1.01.The Authority currently administers the Downtown CBD Redevelopment Project
, pursuant to Minnesota Statutes,
Sections 469.090 to 469.1082, as amended.
1.02.The Authorityand Anoka County Community Action Program, Inc. Seller
executed a Purchase Agreement, dated as of May 26, 2016(the Agreementproviding for the
conveyance by the Sellerto the Authorityof certainproperty within the Project and Citylegally
describedas 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.
1.03.On August 31, 2016, the parties entered into a First Amendment to the Purchase
1.04.On October 28, 2016, the parties entered into a Second Amendment to the Purchase
he deadline for conveyance of the Property.
1.05.On February 6, 2017, the parties entered into a Third Amendment to the Purchase
1.06.The parties have negotiated and propose to execute a FourthAmendment to the
Purchase
conveyance of the Property.
Section 2.FourthAmendmentApproved.
2.01.The FourthAmendment as presented to the Boardis hereby in all respects
approved, subject to modifications that do not alter the substance of the transaction and that are
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496865v1 NKE CL205-62
75
approved by the Presidentand Executive Director, provided that execution of the Fourth
Amendmentby such officials shall be conclusive evidence of approval.
2.02.The Presidentand Executive Directorare hereby authorized to execute on behalf
of the Authoritythe FourthAmendment and any documents referenced therein requiring
execution by the Authority, and to carry out, on behalf of the Authority, its obligations
thereunder.
2.03.Authoritystaff 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 HeightsEconomic
Development Authority this _____day of _______________, 2017.
Vice President
ATTEST:
Secretary
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496865v1 NKE CL205-62
76
FOURTHAMENDMENT TO PURCHASE AGREEMENT
This Fourthis made this ____day of
__________________, 2017by and between Anoka County Community Action Program, Inc., a
WHEREAS, the Sellerand theBuyerentered into that certain Purchase Agreementdated as
of May 26, 2016Agreementconveyance by the Sellerto the Buyerof
certainpropertyat 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
; and
WHEREAS, on August 31, 2016, the parties entered into the First Amendment to Purchase
WHEREAS, on October 28, 2016, the parties entered into the Second Amendment to
Purchase Agreement in order to
WHEREAS, on February 6, 2017, the parties entered into the Third Amendment to
Purchase Agreement in order to extend the closing date to
WHEREAS, due to unanticipated delays, the parties have determined tofurtherextend 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 7of the Agreementis
amended as follows:
CLOSING DATE.
The closing of the sale of the Property shall take place on or before May31,
2017unless otherwise mutually agreed by the parties. The closing shall take place at Columbia
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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.
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IN WITNESS WHEREOF,
the parties have executed this Fourth 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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496860v1 NKE CL205-62
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AGENDA SECTION OTHER BUSINESS ITEMS
ITEM NO.8
MEETING DATE APRIL 3, 2017
CITY OF COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY
ITEM: Redevelopment Discussion of 828 40th Avenue
DEPARTMENT: Community Development
BY/DATE: Keith M. Dahl, March 29, 2017 BY/DATE:
BACKGROUND:
The Columbia Heights Economic Development Authority (EDA) has received a letter of intent to purchase the
EDA owned property located at 828 40th Avenue NE (Property). Staff seeks discussion from the EDA to
determine the level of interest for redevelopment of the Property. No action is needed at this time because
the EDA is not actively marketing the Property to developers.
ATTACHMENTS:
1.Letter of Intent 828 40th Ave. NE Redevelopment
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City of Columbia Heights EDA Letter
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AGENDA SECTION OTHER BUSINESS ITEMS
ITEM NO.9
MEETING DATE APRIL 3, 2017
CITY OF COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY
ITEM: Columbia Heights Economic Development Authority 2017 Levy Discussion
DEPARTMENT: Community Development
BY/DATE: Keith M. Dahl, March 24, 2017 BY/DATE:
BACKGROUND:
To date, the Columbia Heights Economic Development Authority (EDA) has been discussing several projects,
programs, and objectives commissioners have desired to see initiated, implemented and/or completed in
2017. Many of these projects and programs, specifically acquisition of Single-Family Homes along Central
Avenue; implementation of a low- to no- interest loan program for home renovation improvements; and
initiation of aBusiness Retention & Expansion Program,will require arevenue source to achieve the results
EDA commission members envision. Staff has identified one possible revenue source that has two opposite
outcomes; one outcome wouldincrease the tax rate in the City asthe other outcome woulddecrease the tax
rate in the City.
Currently, the statutory levy limit is .0185% of the Market Land Value in the City or for 2016 the maximum
amount the EDA could levy was $209,468. The 2016 EDA levy, payable in 2017, was .0074188% of the Market
Land Value in the City or $84,000. Over the course of the past eight years, the EDA levy has remained relatively
constant with minimal fluctuation up or down. If the EDA raised the levy to the statutory levy limit, the
revenue realized would provide the EDA with the funds necessary to acquire properties for redevelopment
when they become available, offer a low- to no-interest loan program for home renovations, but also to
provide assistance programs to local businesses. The table below shows the comparison between the
statutory levy limit and the 2016 EDA levy:
Levy Limit EDA Levy
2016 Levy Percentage.0185 %.0074188 %
2016 Levy Amount$ 209,468$ 84,000
Potential Amount to IncreaseN/A$ 125,468
*The market value of properties in Columbia Heights for 2016 was $1,132,257,300
Based upon the information above, if the EDA raised the levy to the statutory levy limit, taxes would increase
for businesses and residents. The amount taxes would increase per property is variable to several factors;
however, staff has calculated that the tax increase for a resident who owns a property at an estimated market
value of $200,000 would be about $20 - $25 annually.
In the event EDA commissioners are unfavorable to raising taxes, the other possible outcome, explained
below, would still increase the EDA levy to the statutory levy limit, but decrease taxes through the elimination
of a different levy.
For the past ten years, City Council has elected to participate in Anoka County Housing and Redevelopment
conomic development activities. Cities within Anoka County are required to adopt a
resolution electing to participate or withdraw participation every five years. City Council will need to
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City of Columbia Heights EDA Letter
City of Columbia Heights - Council Letter Page 2
determine later this year if participation for another five years from 2018-2023 is beneficial to the City. If City
Council elects to participate, the city will have access to an additional source of revenue for economic
development activities, but will also agrees to the following four conditions: (1) to participate for a minimum
of five years, (2) the ACHRA may levy an additional property tax within the city, (3) the ACHRA may deduct a
15% administration fee from the levied property tax, and (4) the ACHRA would retain absolute authority and
discretion in determining whether or not a fund reimbursement request meets the statutory objectives.
Over the past ten years, the ACHRA levy has collected an estimated $1.5 million dollars, of which $1.245
million has been made available to the City for economic development activities as the remaining $255,000
has deducted by the ACHRA for administration fees. These funds have provided the City with essential gap
financing assistance for land acquisition, site investigation, remediation, and building demolition within the
Avenue where the ACHRA levy provided over $750,000.
On average, the ACHRA levy collects about $170,000 annually, of which the City has access to about $140,000.
In 2016, the City realized a net value of $137,977.10 from the ACHRA levy. The current total balance available
to the City as of December 31, 2016 was $373,458.30, which does not include the levied taxes from this year.
development activities this year, the EDA could raise its levy to the statutory levy limit without increasing City
taxes because the ACHRA levy is greater than the amount the EDA levy may increase. The table below shows
the comparison between the 2016 levies of the ACHRA and the EDA.
ACHRA LevyEDA Levy
2016 Levy Amount $ 162,326.00 $ 84,000.00
2016 Less 15% Admin Fee $ 24,348.90 N/A
2016 Net Levy Amount $ 137,977.10 $ 84,000.00
Potential Amount to Increase N/A $ 125,468.00
The amount taxes would decrease per property is variable to several factors; however, staff has calculated
that the tax decrease for a resident who owns a property at an estimated market value of $200,000 would be
about $7 - $10 annually.
In summary, the EDA will need to locate a revenue source if projects, programs, and objectives are going to be
successful. The one possible revenue source identified would be to increase the 2017 EDA levy (Payable in
2018) to the statutory levy limit. There are pros and cons to both options, but staff seeks to facilitate
discussion from the EDA to determine the course of action commission members desire to see taken. No
action is needed at this time, but levy discussion tonight will help facilitate budget discussion later this year.
ATTACHMENTS:
1.Columbia Heights EDA/HRA Levy Schedule
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