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HomeMy WebLinkAbout20170605_EDA_Packet ECONOMIC DEVELOPMENT AUTHORITY AGENDA June 5, 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 4.Oath of Office Nick Novitsky CONSENT AGENDA 5.Approve minutes of May 22, 2017 6.Approve Financial Report and Payment of Bills for April, 2017 Resolution 2017-12 Motion: Move to approve Consent Agenda as presented. PUBLIC HEARING 7.Deeding of Excess Property - Conveyance of 4147 7th Street NE Resolution 2017-13 Motion: Move to waive the reading of Resolution 2017-13, there being ample copies available to the public. Motion: Move to adopt Resolution 2017-13, Resolution Approving the Conveyance of 4147 7th Street NE, Columbia Heights, MN 55421 to Vladimir and Tisha Maksimovich. BUSINESS ITEMS 8.ACHRA Levy Update - Karen Skepper, Anoka County Director of Community and Government Relations 9.Central Avenue Commercial Revitalization Project Update July 10, 2017 The next EDA meeting will be at City Hall 10.Select Real Estate Agent for an Exclusive Right to Represent Motion: Move to engage the services of Pete T. Heryla & John M. Rockwell RE/MAX Synergy to represent the Columbia Heights Economic Development Authority in the acquisition of residential structures along Central Avenue NE and direct staff to prepare an Exclusive Representation Agreement for consideration at the July 10, 2017 EDA meeting. 11.Single Family Home Program - Concept Application Approval of 4647 Tyler Street NE Motion: Move to approve the concept application submitted by Tollberg Homes for the property located at 4647 Tyler 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 July 10, 2017. 12.2017 EDA Levy Increase Motion: Move to waive the reading of Resolutions 2017-14, there being ample copies available to the public. Motion: Move to approve Resolution 2017-14, resolution of the Economic Development Authority in and for Columbia Heights, Minnesota, approving a tax levy increase. OTHER BUSINESS 13.Adjourn 1 OATH OF COMMISSIONER OF COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY COLUMBIA HEIGHTS, MINNESOTA I, Nick Novitsky, do solemnly swear that I will support the Constitution of the United States of America, the Constitution of the State of Minnesota, and will faithfully discharge the duties of the office of Commissioner of the Columbia Heights Economic Development Authority, Columbia Heights, Minnesota, according to the law and to the best of my judgement and ability, so help me God. I do further swear that I am, and was at the time of my appointment, a resident of Columbia Heights, Minnesota. (s)_________________________ Subscribed and sworn before me this ________ day of __________, ______. (s)_________________________ Notary Public My Commission Expires:_________________________ 2 ECONOMIC DEVELOPMENT AUTHORITY (EDA) MINUTES OF THE MEETINGOF MAY 22, 2017 The meeting was called to order at 6:30pm by PresidentSzurek Members Present:Williams, Buesgens, Murzyn, Herringer, Schmitt,Novitsky, and Szurek Staff Present:Walt Fehst,Joseph Hogeboom, Keith Dahl,and Shelley Hanson. PLEDGE OF ALLEGIANCE- RECITED CONSENT ITEMS 1.Approve the Minutes from May 1,2017 Motion byWilliams,seconded bySchmitt, to approve the Minutes ofMay 1, 2017, as presented.All ayes. MOTION PASSED. BUSINESS ITEM th 1.47AND GRAND AVENUE DEVELOPMENT UPDATE-DOMINIUM Owen Metz from Dominium gave a brief power point presentation regarding the proposed construction of two apartment buildings to finish the development of the Grandview site. He said that Dominium is interested in this site as it has a high traffic count and is nearby businesses, restaurants, and shopping. He explained that they held an informational meeting for neighbors last week and that the primary concerns of the residents were parking and how their property values may be affected. Metz reviewed the scope of the plan with members. He said the buildings would be comprised of approximately 81 one BR units, 92 two BR units, and 42 three BR units. He reviewed the amenities of the common areas and of the apartments themselves. These numbers could change based on feedback from the meeting held last week with neighboring residents.Metz explained that the project is planned as a Section 42 program thatis considered moderate affordable housing. Incomes for residents would be restricted to 60% below the average medium income which is currently at $37,980 for one person, $43,440 for two people, and $48,840 for three persons. Metz told members they are seeking tax exempt bonds (with no obligation to the City), and TIF funding to help finance the project. He said they would also apply for TOD (transit oriented development) grantfundsthrough the Met Council for the project. Dominium would like the TIF funding for a period of 10-20 years. Metz then went on to tell members 3 EDA Minutes Page 2 May 22, 2017 that they wouldalsobe applying for zoning waivers for the MXU District requirements in regards to the parking ratio and the allowed density. He said they want to reduce the required parking from 2 spaces per unit to 1.5, and changing the allowed density of30 units per acre to40-42 units per acre. Fehst asked what the case was for the density waiver and Metz said to makeit more financially feasible for them. Buesgens told Metzthe City would be applying for grant funds from MN DOT for lighting and other improvements along Central Avenue, but if it is not awarded, then those improvements would not happen for several years. She then asked if the buildings would of the initial construction. Buesgens then asked what the maximum occupant load would be per unit. Metz replied that they abide by City restrictions on this, but it is usually set at two persons per BRin most communities. Murzyn stated that residents at the meeting had requested that the buildingsbe downsized. work for them. Murzyn also felt the parking should remain at 2 spaces per unit as most families have two working people with vehicles, even in the one BR units. Williams thinks Dominium should have another meeting with the residents in that area in order to gain more support for the project. He thinks more concessions could be made to gain that support since he felt that most of the residents in the area were against the proposed project. Hogeboom stated that the EDA is being asked to set a Public Hearing for July to consider establishing a TIF District. More information on this project will be brought before the Planning & Zoning Commission at a Public Hearing later in the summer if they decide to move ahead. He said Dominium is trying to get the financing for the project in order first by seeking approval in July forTIF funding and making application for the Tax Exempt Bonds in August. Dahl passed out a survey depicting the site and where the two building would be located. There was a discussion about what rights the HOA had regarding the proposal, and it was noted they are very limited.Murzyn said many of the residents and board membersthat were at the meetingthought that the original Development Agreement prohibited the construction of any rental apartment buildings. Dahl said that the City Attorneys have reviewed the Agreement and the amendment passed in 2010 and did not find language that specifically prohibitsthe developmentof rental buildings. He said the original plan proposed three condo buildings, but the Developer died after the construction of thefirst building, and then the real estate market crashed and the demand for condo type buildings was negatively affected. It was noted that the legislature recently passed a bill to help improve the condo market and there is a project being built in the south metro so it may indicate the market could be improving in this area. 4 EDA Minutes Page 3 May 22, 2017 2.REQUEST PUBLIC HEARING FOR THE PROPOSED ESTABLISHMENT OF TH THE 47AND GRAND TIF DISTRICT RESOLUTION 2017-11 As previously discussed, Dominium has requested public financial assistance for the redevelopment of the property located at the corner of 47th and Grand Avenue NE. Many specifics are still being discussed and reviewed between staff, Ehlers and Dominium to verify the true extent of assistance needed.Possible uses for which public financial assistance is being requested consist of land acquisition, public improvements, soil and environmental reports, and site improvements. In Columbia Heights, the Columbia Heights Economic Development Authority (EDA) is the authority authorized to exercise Tax Increment Financing (TIF) powers, however the EDA may not exercise any TIF powers without the prior approval of the City Council (Council) of the City of Columbia Heights (City). Previously, the EDA and the Council established a redevelopment project designated as the Downtown Central Business District Revitalization Plan. The revitalization plan has encouraged development and redevelopment within the City along Central Avenue; however, modifications must be added to encompass the potential development being proposed by Dominium. In order to establish a TIF District for Dominium, certain events must occur that are outlined on the attached Schedule of Events. As part of that process, the EDA must formally request that the Council call for a public hearing to consider modifications to the Downtown Central Business District Revitalization Plan and for the establishment of the 47th and Grand TIF District. Staff recommends adopting Resolution 2017-11, a resolution requesting City Council to call for a Public Hearing to consider aModification to the Downtown Central Business District Revitalization Plan and for the Establishment of the 47th and Grand TIF District. Questions from members: There were no further questions from members. Motion byBuesgens, seconded by Schmitt,to waive the reading of Resolution 2017-11, there being ample copies available to the public.All ayes. MOTION PASSED. Motion by Buesgens, seconded by Schmitt,to adopt Resolution 2017-11, a resolution requesting City Council to call for a Public Hearing on July 10, 2017 at approximately 7:00 PM for the Modification to the Downtown Central Business District Revitalization Plan for the Downtown Central Business District Redevelopment Project and the Establishment of the 47th and Grand Tax Increment Financing District.All ayes. MOTION PASSED. 5 EDA Minutes Page 4 May 22, 2017 SCHEDULE OF EVENTS COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY AND THE CITY OF COLUMBIA HEIGHTS ANOKA COUNTY, MINNESOTA MODIFICATION TO THE DOWNTOWN CBD REVITALIZATION PLAN FOR THE DOWNTOWN CENTRAL BUSINESS DISTRICT (CBD) REDEVELOPMENT PROJECT AND THE ESTABLISHMENT OFTHE th 47AND GRANDTAX INCREMENTFINANCING DISTRICT (a housingdistrict) (as of May 16,2017) May22, 2017EDA Requests that the City Council calls for a public hearing on the Modification to the Downtown CBD Revitalization Plan for the CBD Redevelopment Project and the Establishment of the 47th and Grand Tax Increment Financing District. May 22, 2017City Council calls for a public hearing on a Modification to the Downtown CBD Revitalization Plan for the CBD Redevelopment Project and the th Establishmentof the 47and Grand TaxIncrement Financing District. May 26, 2017Project information (property identification numbers for proposed property to be purchased, project description, and maps)for drafting necessary documentation sent to Ehlers. N/A*Project information submitted to the County Board for review of county road impacts if necessary* (at least 45 days prior to public hearing). *The County Board, by law, has 45 days to review the TIF Plan to determine if any county roads will be impacted by the development. BecauseCity staff believes that the proposed tax increment financing district will not require unplanned county road improvements, the TIF Plan was not forwarded to the County Board 45 days prior to the public hearing. Please be aware that the County Board could claim that tax increment should be used for county roads, even after the public hearing. May 31, 2017Letter received by County Commissioner giving notice of potential housingtax increment financing district (at least 30 days prior to publication of public hearing notice.) [Ehlers will fax and mail on or before May 31, 2017.] 6 EDA Minutes Page 5 May 22, 2017 June 9,2017Fiscal/economic implications received by School Board Clerk and County Auditor (at least 30 days prior to public hearing). [Ehlers will fax &mail on or before June 9,2017] June 19,2017Ehlers conducts internal review of the Plans. SCHEDULE OF EVENTSPAGE TWO COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY AND THE CITY OF COLUMBIA HEIGHTS ANOKA COUNTY, MINNESOTA MODIFICATION TO THE DOWNTOWN CBD REVITALIZATION PLAN FOR THE DOWNTOWN CENTRAL BUSINESS DISTRICT (CBD) REDEVELOPMENT PROJECT AND THE ESTABLISHMENT OFTHE th 47AND GRANDTAX INCREMENTFINANCING DISTRICT (a housingdistrict) June 30,2017Date of publication of hearing notice and map (at least 10 days but not more than 30 days prior to hearing). [Sun Focus publication deadline June 26,2017by 11:00 A.M. Ehlers will submit notice & map on or before June 26,2017.] July 3,2017EDA adopts a resolution approving a Modification to the Downtown CBD Revitalization Plan for the CBD Redevelopment Project and the Establishmentof th 47and GrandTax Increment Financing District the . EDA passes a resolution decertifying parcels from the K-Mart/Central Avenue th Tax Increment Financing District for inclusion in the 47and Grand Tax Increment Financing District. July 5,2017Planning Commission reviews the Plansto determine if they are in compliance with City's comprehensive plan and adopts a resolution approving the Plans. July 10,2017City Council holds a public hearing at 7:00.. on the Modification to the PM Downtown CBD Revitalization Plan for the CBD Redevelopment Project and the th 47and GrandTax Increment Financing District Establishmentof the and passes resolution approving the Plans.[Ehlers will email Council packet information to the City on or before July 3,2017.] th 47and Grand City Council approves an Interfund Loan in connection with the Tax Increment Financing District . Ehlers files the Planswith the MN Department of Revenue, Office ofthe State Auditor, and Anoka County. 7 EDA Minutes Page 6 May 22, 2017 COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY CITY OF COLUMBIA HEIGHTS ANOKA COUNTY, MINNESOTA RESOLUTION NO. 2017-11 RESOLUTION REQUESTING A PUBLIC HEARING ON THE MODIFICATION OF THE DOWNTOWN CBD REVITALIZATION PLAN FOR THE DOWNTOWN CBD th REDEVELOPMENT PROJECT AND THE ESTABLISHMENT OF THE 47AND GRAND TAX INCREMENT FINANCING DISTRICT (A HOUSING DISTRICT). BE IT RESOLVED, by the Board of Commissioners (the "Board") of the Columbia Heights Economic Development Authority, Minnesota (the "EDA") as follows: WHEREAS, the City Council (the "Council") of the City of Columbia Heights, Minnesota (the "City") and the Housing and Redevelopment Authority in and for the City previously established the a Statutes, Sections 469.001 to 469.047 and predecessor statutes, in an effort to encourage the development and redevelopment of certain designated areas within the City, and the City transferred the authority and operation of the Project to the EDA by a resolution of the Council pursuant to Minnesota Statutes, Section 469.094, as amended; and WHEREAS, the EDA is proposing the modification of the Downtown CBD Revitalization Plan for th the Project and the establishment of the 47and Grand Tax Increment Financing District therein, pursuant to Minnesota Statutes, Sections 469.174 to 469.1794 and Sections 469.090 through 469.1082, inclusive, as amended; NOW, THEREFORE BE IT RESOLVED by the Board as follows: 1.The EDA hereby requests that the Council call for a public hearing on July 10, 2017 to consider the proposed modification of the Downtown CBD Revitalization Plan for the Project and the proposed th adoption of a Tax Increment Financing Plan for the 47and Grand Tax Increment Financing District (collectively, the "Plans") and cause notice of said public hearing to be given as required by law. 2.The EDA directs the Executive Director to transmit copies of the Plans to the Planning Commission of the City and requests the Planning Commission's written opinion indicating whether the proposed Plans are in accordance with the Comprehensive Plan of the City, prior to the date of the public hearing. 3.The Executive Director of the EDA is hereby directed to submit a copy of the Plans to the Council for its approval. 4.The EDA directs the Executive Director to transmit the Plans to the County and the School District th in which the 47and Grand Tax Increment Financing District is located not later than June 9, 2017. 5.Staff and consultants are authorized and directedto take all steps necessary to prepare the Plans and related documents and to undertake other actions necessary to bring the Plans before the Council. Approved by the Board on May 22, 2017. _______________________________ President ATTEST: ______________________________ 8 EDA Minutes Page 7 May 22, 2017 The meeting was adjourned at7:05pm. Respectfully submitted, Shelley Hanson Assistant Secretary 9 RESOLUTION NO. 2017-12 A Resolution of the Economic Development Authority of Columbia Heights, Minnesota, Approving the Financial Statements for Month of April 2017 and the Payment of the Bills for the Month of April 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 April 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: President Attest: Secretary 10 Resolution 2017-12 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 AGENDA SECTION PUBLIC HEARING ITEM NO. 7 MEETING DATE JUNE 5, 2017 CITY OF COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY ITEM:Deeding Excess Property - Conveyance of 4147 7th Street NE DEPARTMENT: Community Development BY/DATE: Keith M. Dahl, May 26, 2017 BY/DATE: BACKGROUND: Over the years, the Columbia Heights Economic Development Authority (EDA) has purchased several blighted residential properties for various housing redevelopment programs. A few of the properties acquired are non-conforming residential properties pursuant to City Code of Ordinances, Chapter 9, Article I, Section 9.106, Subd. (B)(4); and Section 9.109, Subd. (C) because they do not meet the minimum lot area and dimensions. The EDA owned property located at 4147 7th Subject Property) zoned as R-2A One and Two Family Residential District is one of these non-conforming residential properties. The following are excerpts from City Code pertaining to the non-conformity of the Subject Property. City Code of Ordinances, Chapter 9, Article I, Section 9.106, Subd. (B)(4): A lot of record shall be deemed a buildable lot provided it has frontage on a public right-of-way and meets the setback and area requirements for the district in which it is located, or adjusted to conform as follows: a lot or lot of record upon the effective date of this article which is in a residential district and which does not meet the requirements of this article as to area or width, may be utilized for single- family detached dwelling purposes provided the measurements of such lot meets 100% of the front yard, side yard and rear yard setback requirements for the district in which it is located and 60% of the minimum lot area or lot width requirements for the district in which it is located. City Code of Ordinances, Chapter 9, Article I, Section 9.109, Subd. (C): Lot area, setback, height and lot coverage requirements for uses in the residential districts shall be as specified in the following table for R-2AOne and Two Family Residential District: Minimum Lot Area Single-Family Dwelling: 6,500 sp. ft. Minimum Lot Area Two-Family Dwelling: 12,000 sp. ft. Minimum Lot Width: 60 ft. The Subject Property is thirty (30) feet by one-hundred twenty-nine and fifteen hundredths (129.15) feet. Since the lot width or area does not meet the 3874.5 sq. ft. 6,500 sq. ft.) respectively, the Subject Property is not buildable. Thus, in certain circumstances such as this, the EDA has tended to deed the property to an adjacent property owner(s). Staff reached out to both property owners who are adjacent to the Subject Property to see if either property owner had an interest in acquiring all or a portion of the Subject Property. The only response staff received was from the property owners of 4149 7th Street NE, Vladimir and Tisha Maksimovich (collectively, Maksimovich). The Maksimovich have expressed an interest in acquiring the Subject Property from the EDA for the addition of more yard space. 49 City of Columbia Heights EDA Letter City of Columbia Heights - Council Letter Page 2 For consideration tonight, the EDA must determine if the conveyance of the Subject Property to Maksimovich is advisable. A notice of public hearing was published in the Sun Focus for any person wishing to express an opinion on this matter to be heard orally or in writing. STAFF RECOMMENDATION: Staff recommends conveyance of 4147 7th Street NE to Vladimir and Tisha Maksimovich. RECOMMENDED MOTION(S): Motion: Move to waive the reading of Resolution 2017-13, there being ample copies available to the public. Motion: Move to adopt Resolution 2017-13, Resolution Approving the Conveyance of 4147 7th Street NE, Columbia Heights, MN 55421 to Vladimir and Tisha Maksimovich. ATTACHMENTS: 1.Resolution 2017-13 (1 Page) 2.Location Map (1 Page) 3.Quit-Claim Deed 50 COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION 2017-13 The undersigned, being the current members of the Board of Commissioners of the Authority Columbia Heights Economic Development Authority(the ""), take the following actions in writing. WHEREAS, the Authority is the current owner of certain real property located at 4147 7th Street NE, Columbia Heights, Anoka County, Minnesota, and legally described as the South 30 feet of Lot 22, Block 45, Columbia Heights Annexto Minneapolis, Anoka County,Minnesota Property (the ; Maksimovich reside at property adjacent to and north of the Property, and have expressed interest in acquiring the Propertyfrom the Authority; WHEREAS, the Authority is willing to convey the Property to Maksimovich, in consideration for Maksimovich paying all closing costs associated with the conveyanceof the Property;and WHEREAS, the Authority, through its undersigned Commissioners,has reviewed copies Deed of the proposed Quit Claim Deedtransferring the PropertytoMaksimovich NOW, THEREFORE, be it resolved that Marlaine Szurek,as thePresidentof the Authority, is herebyauthorized, empowered and directed for and on behalf of the Authorityto deliver to Maksimovich and cause for recording in the Office of the County Recorder of Anoka County, Minnestoa, the Deedand any other documents that may beincidental to the consummation of the conveyance of the Property to Maksimovich. RESOLVED FURTHER, thatMarlaine Szurek, as the President of the Authority,is hereby authorized and directed to execute and take such action as she deems necessary and appropriate to carry out the purpose of the foregoing resolutions. RESOLVED FURTHER, that these actions shall be effective as of June5, 2017. By:___________________________By:___________________________ ________ Schmitt, Vice President ________ Buesgens, Commissioner By:___________________________By:___________________________ ________ Murzyn, Commissioner ________ Herringer, Commissioner By:___________________________By: ___________________________ ________ Williams, Commissioner ________Novitsky, Commissioner 713444-v1 51 52 (Top 3 inches reserved for recording data) QUIT CLAIM DEED Business Entity to Individuals eCRV number: [___________________] $1.65 DEED TAX DUE: DATE: June ____, 2017 FOR VALUABLE CONSIDERATION, the Columbia Heights Economic Development Authority, a public body, corporate and politic Grantor Vladimir and Tisha Maksimovich, husband and wife Grantee as joint tenants, real property in Anoka County, Minnesota, legally described as follows: See attached Exhibit A. Check here if all or part of the described real property is Registered (Torrens) together with all hereditaments and appurtenances belonging thereto. Total consideration for this conveyance is less than $500.00. Check applicable box: GRANTOR: The Seller certifies that the Seller does not know of any wells on the described real property. Columbia Heights Economic Development Authority A well disclosure certificate accompanies this a public body, corporate and politic document or has been electronically filed. (If electronically filed, insert WDC number: .) By: I am familiar with the property described in this Name: Marlaine Szurek instrument and I certify that the status and number of wells on the described real property have not changed Its: President since the last previously filed well disclosure certificate. ECB-1034 Page 1 of 3 53 Page 2 of 3 QUIT CLAIM DEED State of Minnesota, County ofAnoka This instrument was acknowledged before me on June ____, 2017, by Marlaine Szurek as President of the Columbia Heights Economic Development Authority, a public body, corporate and politic, who executed the same on behalf of said public body. (Stamp) (signature of notarial officer) Title (and Rank): My commission expires: (month/day/year) THIS INSTRUMENT WAS DRAFTED BY: TAX STATEMENTS FOR THE REAL PROPERTY DESCRIBED IN THIS BARNA, GUZY & STEFFEN, LTD. INSTRUMENT SHOULD BE SENT TO: 400 Northtown Financial Plaza Vladimir and Tisha Maksimovich 200 Coon Rapids Boulevard 4149 7th Street NE Minneapolis, MN 55433 Columbia Heights, MN 55421 Phone: (763) 780-8500 (TRW) 713443-v1 54 Page 3 of 3 QUIT CLAIM DEED EXHIBIT A Legal Description of the Real Property Real Property in Anoka County, Minnesota, described as follows: The South 30 feet of Lot 22, Block 45, Columbia Heights Annex to Minneapolis. 55 AGENDA SECTION BUSINESS ITEMS ITEM NO. 9 MEETING DATE JUNE 5, 2017 CITY OF COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY Central Avenue Commercial Revitalization Project Update ITEM: DEPARTMENT: Community Development BY/DATE: Keith M. Dahl, June 1, 2017 BY/DATE: BACKGROUND: On May 1, 2017, the Columbia Heights Economic Development Authority (EDA) discussed three alternative funding scenarios due to the need for increased capital to fund planned projects and programs for the revitalization of the commercial corridor along Central Avenue. And, of these three scenarios presented, Commission Members directed staff to pursue Scenario B, which would effectively maximize the fund sources available to the EDA. The following information is to provide Commission Members with a project update, as well as an overview of the Central Avenue Commercial Revitalization Project. {ľś■Ăʼn╜◘ . aĂŝ╜▓╜ūś Cĵ■ŕ {◘ĵʼnľśℓế Participate in the ACHRA economic development activities for another five (5) years Increase the 2017 EDA levy to the statutory levy limit EDA funds available for housing and economic development activates. The EDA would be able to maximize its fund sources by participating in the ACHRA for another five (5) years and increasing the EDA levy from .0074188% to the statutory levy limit of .01813%. Based on the figures in the table below, the EDA would realize a fund increase in the amount of $121,280. Thus, bringing the total of annual funds available to the EDA for housing and economic development activates to $259,257.10. The impact to tax payers would account for a property tax increase of $20 - $25 annually for a resident who owns a property at an estimated market value of $200,000. HRA Levy EDA Levy ACHRA Levy Levy Percentage .0185 % .01813 % N/A Levy Amount $ 209,468.00 $ 205,280.00 $ 137,977.10 Amount of Change N/A $ 121,280.00 N/A Ỹb◘Ċśế Ç╙ś ź╜┼ĵʼnśℓ ╜■ Ċ╙ś ĊĂĽ▄ś ĂĽ◘ōś Ŏśʼnś ľĂ▄ľĵ▄ĂĊśŕ ĵℓ╜■┼ Ċ╙ś ƴƲƳƸ ▄śō╜śℓ ỦtĂŦĂĽ▄ś ╜■ ƴƲƳƹủỀ The total cost of the Central Avenue Commercial Revitalization Project will be approximately $3,922,089.65. And, staff anticipates that this project will be an ongoing effort for the EDA over the course of the next five (5) ten (10) years. Based on the total project cost and the projected funds that will be available to the EDA by maximizing the fund sources over the course of the next five (5) to ten (10) years, staff has prepared the following infographics to help explain how the EDA will fund the Central Avenue Commercial Revitalization Project. 56 City of Columbia Heights EDA Letter City of Columbia Heights - Council Letter Page 2 TOTAL PROJECT COST LEGEND: HRA Future EDA $ 3,922,089.65 Current ACHRA Future ACHRA FIVE (5) YEAR PROJECT FUNDS * The five year projected project $ 1,028,701.00 funds assumes the EDA levy is increase to the state statute levy limit and the City participates in the ACHRA levy from 2018 -2022. In this scenario, the shortfall of funds from $ 2,914,176.00 the total project cost is $1,007,913.65. $ 627,340.00 $ 746,699.60 $ 511,4435.40 TEN (10) YEAR PROJECT FUNDS * The ten year projected project $ 1,028,701.00 funds assumes the EDA levy is increase to the state statute levy $ 746,699.60 limitand the City withdraws participation of theACHRA levy from 2023-2027.In this scenario, $ 3,541,516.00 the shortfall of funds from the total project cost is$380,573.65. $ 511,4435.40 $ 1,254,680.00 57 AGENDA SECTION BUSINESS ITEM ITEM NO. 10 MEETING DATE JUNE 5, 2017 CITY OF COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY ITEM: Select Real Estate Agent for an Exclusive Right to Represent DEPARTMENT: Community Development BY/DATE: Keith M. Dahl, June 1, 2017 BY/DATE: BACKGROUND: On May 1, 2017, the Columbia Heights Economic Development Authority (EDA) directed staff to request exclusive representation proposals from local real estate agents or groups to assist with acquisition of legal non-conforming residential structures along Central Avenue. Staff received three proposals from three local real estate groups that exclusively represent residential buyers. All three real estate groups are prevalent throughout Northeast Minneapolis and Columbia Heights and are knowledgeable of the residential market trends in the area. Below are the three real estate agents and groups that submitted a proposal to staff in no particular order. All proposals received are available in the Community Development Department for review, due to the quantity and documentation type staff is not including the proposals in the packet. Mark and Liz Grotewold Edina Realty, Inc. Pete T. Heryla & John M. Rockwell RE/MAX Synergy Tam Le, Viet Le & Dan Baltzer Pinnacle Realty Team Due to the Federal Relocation Act and the Minnesota Version of the Uniform Relocation Act, government agencies are responsible for relocation fees if they are proactive in acquisition of industrial, commercial or residential property. Tenant occupants may not waive their right to relocation fees, but Owner occupants may waive their right to relocation fees if the owner is proactive by reaching out to the government agency or the owner lists their property on the open market. Thus, whoever is selected to represent the EDA in acquisition oflegal non-conforming residential properties along Central Avenue, there will be strict rules that will need to be followed in order for the EDA to not pay relocation fees. STAFF RECOMMENDATION: Staff recommends that the EDA select Pete T. Heryla & John M. Rockwell RE/MAX Synergy based upon their proposal submitted and their previous work experience with government agencies. RECOMMENDED MOTION(S): Motion: Move to engage the services of Pete T. Heryla & John M. Rockwell RE/MAX Synergy to represent the Columbia Heights Economic Development Authority in the acquisition of residential structures along Central Avenue NE and direct staff to prepare an Exclusive Representation Agreement for consideration at the July 10, 2017 EDA meeting. 58 City of Columbia Heights EDA Letter AGENDA SECTION BUSINESS ITEMS ITEM NO. 11 MEETING DATE JUNE 5, 2017 CITY OF COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY ITEM:Single Family Home Program Concept Application Approval 4647 Tyler Street NE DEPARTMENT: Community Development BY/DATE: Keith M. Dahl, May 26, 2017 BY/DATE: BACKGROUND: The Columbia Heights Economic Development Authority (EDA) has received a completed concept application from Tollberg Homes offering $22,500 for the purchase of the property located at 4647 Tyler 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, but the EDA has the right and authority 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 $38,600. 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. Furthermore, the Public Works Department has confirmed that there was a water main break at the Subject Property, which resulted in the sewer and water lines being disconnected at the main. Thus, the offer from Tollberg Homes of $22,500 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, pictures of a previous home built, 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. 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 Tyler Street NE, Columbia Heights, MN 55421. Motion: Move to authorize staff to work with Tollberg Homes to determine specific house plans and to prepare a Purchase and Redevelopment Agreement for consideration at the next EDA meeting on July 10, 2017. ATTACHMENTS: 1.Completed Proposal Form (4 Pages) 2.Tollberg Homes Letter of Intent (2 Pages) 3.Example Pictures (4 Pages) 4.Example House Plan (4 Pages) 59 City of Columbia Heights EDA Letter 60 61 62 63 64 65 66 67 68 69 70 71 72 73 AGENDA SECTION BUSINESS ITEMS ITEM NO. 12 MEETING DATE JUNE 5, 2017 CITY OF COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY ITEM:2017 EDA Levy Increase DEPARTMENT: Community Development BY/DATE: Keith M. Dahl, June 1, 2017 BY/DATE: BACKGROUND: On May 1, 2017, the Columbia Heights Economic Development Authority (EDA) determined a need to increase the EDA levy to the state statute limit of .01813%. Pursuant to State Statue 469.107, Subd. 1 and 2, the city may increase its levy for economic development authority purposes, subject to a reverse referendum. Thus, at the request of the EDA by resolution, the City Council will need to pass a resolution stating the proposed amount of levy increase as well and to establish a public hearing two to four weeks after. Attached y aresolution that serve as a recommendation to City Council for approving a levy increase of the Economic Development Authority. STAFF RECOMMENDATION: Staff recommends approval of the EDA levy increase as presented. RECOMMENDED MOTION(S): Motion: Move to waive the reading of Resolutions 2017-14, there being ample copies available to the public. Motion: Move to approve Resolution 2017-14, resolution of the Economic Development Authority in and for Columbia Heights, Minnesota, approving a tax levy increase. ATTACHMENTS: 1.Resolution 2017-14 74 EDA Letter RESOLUTION NO. 2017-14 A RESOLUTION OF THE ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR COLUMBIA HEIGHTS, MINNESOTA, APPROVING A TAX LEVY INCREASE. BE IT RESOLVED, By the Columbia Heights Economic Development Authority of Columbia Heights, Minnesota as follows: WHEREAS, the Columbia Heights City Council established the Columbia Heights Economic Development Authority January 8, 1996 pursuant to Minnesota Statutes 469.090 to 469.1081; and WHEREAS, the City Council has given to the EDA the responsibility for all development and redevelopment projects and programs; and WHEREAS, the EDA is authorized under State Statutes, Section 469.107 to levy a tax on its area of operation for the purposes authorized under State Statues 469.090 to 469.1081, subject to consent by the City Council. NOW, THEREFORE BE IT RESOLVED, by the Board of Commissioners of the Columbia Heights Economic Development Authority that it adopts and recommends to the City Council for approval of a tax levy increase of $220,100 for year 2017; and BE IT FURTHER RESOLVED, the Executive Director is instructed to transmit a copy of this resolution to the City Manager and Finance Director/City Clerk of the City of Columbia Heights, Minnesota. ORDER OF ECONOMIC DEVELOPMENT AUTHORITY Passed this _________ day of ______________________, 2017 Offered by: Seconded by: Roll Call: President Attest: Assistant Secretary 75 Resolution 2017-14