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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
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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:_________________________
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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
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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.
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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.
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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.]
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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.
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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:
______________________________
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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
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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
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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
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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
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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
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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
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Resolution 2017-14