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ECONOMIC DEVELOPMENT AUTHORITY AGENDA
SPECIAL MEETING
October 9, 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 September 5, 2017
5.Approve Financial Report and Payment of Bills for August, 2017 Resolution 2017-29
Motion: Move to approve Consent Agenda as presented.
BUSINESS ITEMS
6.Single Family Home Program - Approve Concept Application of 4641 Polk St. NE
Motion: Move to approve the concept application submitted by Home Detail for the
property located at 4641 Polk Street NE, Columbia Heights, MN 55421.
Motion: Move to authorize staff to work with Home Detail to determine specific house
plans and to prepare a Purchase and Redevelopment Agreement for final sale
consideration at the next EDA meeting on November 6, 2017.
7.Single Family Home Program - Approve Concept Application of 4201 Jefferson St. NE
Motion: Move to approve the concept application submitted by Home Detail for the
property located at 4201 Jefferson Street NE, Columbia Heights, MN 55421.
Motion: Move to authorize staff to work with Home Detail to determine specific house
plans and to prepare a Purchase and Redevelopment Agreement for final sale
consideration at the next EDA meeting on November 6, 2017.
OTHER BUSINESS
8.3841 Central Avenue Update
9.Adjourn
The next EDA meeting will be b◘ōś▓Ľśʼn ƸĊ╙ẽ ƴƲƳƹ at City Hall.
ECONOMIC DEVELOPMENT AUTHORITY(EDA)
MINUTES OFTHE MEETING OF
SEPTEMBER 5, 2017
Themeeting wascalled toorderat 6:30pmbyPresidentMarlaine Szurek.
MembersPresent:Murzyn, Herringer,Schmitt,Williams,Novitsky,Buesgens, and
Szurek
StaffPresent:Walt Fehst, KeithDahl, Joseph Hogeboom, andShelley Hanson
(AssistantSecretary)
PLEDGE OFALLEGIANCE-
RECITED
CONSENTAGENDA
1.
ApproveminutesofAugust 7,2017
2.
Approve FinancialReport and PaymentofBillsfor July,2017Resolution2017-26
Questionsfrommembers:
Herringerasked what the payment was for to Independent Realty Mortgage for $5,000 (on
page 24 of the report). Dahl explained this was the earnest money for the purchase of 3841
Central Avenue which was then applied to the purchase price at the closing.
Motion byWilliams,seconded bySchmitt, toapprove the MinutesofAugust 7,2017,andthe
Financial Report andPayment of BillsforJuly,2017aspresented.All ayes. MOTION
PASSED.
RESOLUTIONNO.2017-26
AResolution of theEconomic Development Authorityof Columbia Heights, Minnesota,Approving the
Financial Statements for Month ofJuly 2017and the Payment of the Bills for theMonth ofJuly2017.
WHEREAS,
the Columbia Heights EconomicDevelopment Authority (EDA) is requiredby Minnesota StatutesSection
469.096, Subd. 9, to prepare a detailed financial statement whichshows all receipts and
disbursements,their nature,the money on hand, the purposes towhich the money on hand is to be applied,the EDA's
credits and assets andits outstanding liabilities; and
WHEREAS,
said Statute also requires the EDA to examine the statement and treasurer's vouchers or bills and ifcorrect,to
approve them by resolutionand enter the resolution in its records; and
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WHEREAS,
the financial statement forthemonthofJuly 2017has been reviewed by the EDA Commission;and
EDA Minutes
Page 2
Sept 5,2017
WHEREAS,
the EDA has examinedthe financialstatements andfinds them to be acceptable as to both formand
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 FinancialReports, Annual City approved Budgets, Audits and similar
documentation; and
WHEREAS,
financials statements are helFinance Department in a method outlined by the Stateof
ords Retention Schedule,
NOW, THEREFOREBE IT RESOLVED
by the Board ofCommissioners of the Columbia Heights Economic
Development Authority that it has examined the referencedfinancial statements including the check history,andthey are
found to be correct, as to form and content; and
BEIT FURTHER RESOLVED
the financial statements are acknowledged and received and the check historyas
presented in writing is approved forpayment out of properfunds; and
BEIT FURTHER RESOLVED
this resolution is made a part of the permanent records of the Columbia Heights
Economic Development Authority.
ORDER OFECONOMIC DEVELOPMENT
AUTHORITY
Passed this __5th____ dayof___September_____________, 2017
Offered by:Williams
Seconded by:Schmitt
Roll Call:All ayes
BUSINESS ITEMS
1.EDA Budget and Tax Levy
Dahl explained that on September 5, 2017, the proposed budget of fiscal year 2018 will be distributed to the City
Council after the work session meeting. Before the City Council conducts their first review of the proposed budget
later this fall however, th
for Fund 201: Planning & Inspections and Fund 204: EDA Administration, and to authorize their respective 2017 tax
levies, payable in 2018. Therefore, this report presents the information and the necessary actions required for
consideration by EDA Commission Members before the City Council begins to review the proposedbudget.
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EDA Minutes
Page 3
Sept 5, 2017
Included in the report are proposed fund budgets of Fund 201 and Fund 204 for the fiscal year 2018. Both fund
budgets are administered by theCommunity Development Department, and have therefore been incorporated into
the departments overall budget for 2018. The EDA however, does not retain any authority over Fund 201, but since
the EDA annually transfers a nominal amount of funds from Fund 204 to it, the EDA has historically reviewedand
approved it along with Fund 204. The Community Development Department is comprised of three departments;
Economic Development, Planning, and Building Safety. And of those three departments, the EDA administers a
portion of all of their general operational and administrative expenses. Whereas, the majority of these expenses are
obtained through zoning application fees and building permit costs collected throughout the fiscal year.
Overall, the proposed fund budgets are balanced, with funds specifically dedicated to maintain existing projects and
initiatives, as well as allocating and repurposing funds for new programs that reflect the priorities of the EDA, such
as the Commercial Revitalization Project. Both proposed fund budgets account for increased revenues and expenses.
Fund 201 incorporates a revenue increase of 7.2% and an expense increase of 6.1% whereas; Fund 204 incorporates
a revenue increase of 33.7% and an expense increase of 32.6%. These increases are due to several factors, such as
the recovering market values of properties throughout the City, positional salary increases based on living wage
adjustments, increased project costs and expenses, but also the recent increaseof the 2017 EDA levy for taxes
payable in 2018.
The EDA effectively has two separate tax levies after the City Council granted the EDA certain HRA powers in
1996. One tax levy is administered by the City under Minnesota Statutes, Section 469.107 on behalf of the EDA (the
statutory
would result in atotal net revenue of $444,692 in 2018.
Staff recommends approval of Resolution 2017-27 and Resolution 2017-28 as presented.
Questions from Members:
Szurek questioned why there is still a need for a HRA budget. Dahl explained that we are required to keep an HRA
Board in placedue to the payment arrangements that were made for the sale of Parkview Villa. The HRA is
required to meet once or twice a year until the obligation is finalized, so there is staff time and operational expenses
that occur because of this.
Herringer asked about the format of the budget information that was provided. He noted that the Department
columnhad proposed proposed column. He
questioned if the Dept. head determines the budget or whether the Manager ever makes changes to theamounts
proposed by the Dept. head. Fehst explained that he has already reviewed this budget with the Dept. Head and the
amounts listed are set according to the limitations of available revenues. He said changes/cuts are made to
department budgets when necessary, but it is generally done before presentation to the Board or City Council.
Schmitt asked about the amount listed for employee expenses for Webmaster activity. She thought that expense
would be partof the budget for the new person as part of the Administration Dept. Dahl said the new
Communications Coordinator position will take over the majority of the website work, but there is still a need for
someone from our department to submit information regarding building inspections, planning, and development
within the department.
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EDA Minutes
Page 4
Sept 5, 2017
Schmitt then asked if the budget included funding for an intern position. Hogeboom said it is not usually included.
He said if the workload increases, so does the revenue, and he would then seek a budget amendment to cover an
additional position, if deemed appropriate.
Motion byBuesgens, seconded byWilliams,to waive the reading of Resolutions 2017-27, there being ample copies
available to the public.All ayes. MOTION PASSED.
Motion byBuesgens, seconded byWilliams,to adopt Resolution 2017-27, a resolution of the Columbia Heights
Economic Development Authority, adopting a budget for the fiscal year of 2018 and setting the 2017 tax levy, payable
in 2018.
Motion byBuesgens, seconded byMurzyn, to waive the reading of Resolutions 2017-28, there being ample copies
available to the public.All ayes. MOTION PASSED.
Motion byBuesgens, seconded by Novitsky,to adopt Resolution 2017-28, a resolution of the Columbia Heights
Economic Development Authority, adopting a budget for the fiscal year of 2018 and authorizing a special benefit tax
levy, payable in 2018.
RESOLUTION NO. 2017-27
A RESOLUTION OF THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY, ADOPTING A
BUDGET FOR THE FISCAL YEAR OF 2018 AND SETTING THE 2017 TAX LEVY, PAYABLE IN 2018.
BE IT RESOLVED
WHEREAS,
WHEREAS,
the City Council of the City has given to the EDA the responsibility for all development and redevelopment
projects and programs; and
WHEREAS,
under Section 469.107 of the EDA Act, the City is authorized to levy a tax for the benefit of the EDA on its area
of operation for the purposes authorized under the EDA Act, subject to the approval of the City Council.
NOW, THEREFORE BE IT RESOLVED,
by the Board of Commissioners of the Columbia Heights Economic
of $448,242
for 2018; and
BE IT FURTHER RESOLVED,
that
of $220,100 for taxes payable in 2018; and
BE IT FURTHER RESOLVED,
thatthe Executive Director is instructed to transmit a copy of this resolution to the City
Manager, Finance Director, and 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:
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EDA Minutes
Page 5
Sept 5, 2017
RESOLUTION NO. 2017-28
A RESOLUTION OF THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY, ADOPTING A
BUDGET FOR THE FISCAL YEAR OF 2018 AND AUTHORIZING A SPECIAL BENEFIT TAX LEVY, PAYABLE
IN 2018.
BE IT RESOLVED
WHEREAS,
WHEREAS,
the City Council granted the EDA all powers and duties of a housing and redevelopment authority by an enabling
resolution and ordinance adopted on October 22, 2001, pursuant to Minnesota Statutes 469.001 to 469.047 (the "HRA Act"),
except certain powers that are allocated to the Housing and Redevelopment Authority in and for the City of Columbia Heights
WHEREAS,
under Section 469.033 of the HRA Act, the EDA and HRA, are authorized to levy a special benefit tax, in an
amount not to exceed
WHEREAS,
authorized by the HRA Act; and
WHEREAS,
the EDA understands that the HRA does not expect to levy a special benefit tax for the fiscal year of 2018; and
WHEREAS,
the EDA has before it for consideration a copy of its budget for the fiscal year of 2018, and the amount of the
HRA Levy, payable in 2018 shall be based on said budget.
NOW, THEREFORE BE IT RESOLVED,
by the Board of Commissioners of the Columbia Heights Economic
Development Authority, that the EDA hereby adopts and requests the City Council approve its budget in the amount of
$448,242 for 2018, and such budget includes the amount the EDA requests to be levied by the City under Section 469.107 of
the EDA Act, and the EDA under Section 469.033, of the HRA Act; and
BE IT FURTHER RESOLVED,
thatthe EDAhereby directs staff to file its budget with the City in accordance to
Section 469.033 of the HRA Act, and take such actions necessary to levy and certify the HRA Levy in the amount of
$224,592for taxes payable in 2018.
ORDER OF ECONOMIC DEVELOPMENT AUTHORITY
Passed this _________ dayof ______________________, 2017
Offered by:
Seconded by:
Roll Call:
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EDA Minutes
Page 6
Sept 5, 2017
OTHER BUSINESS:
Commercial Revitalization Project-3841 Central Avenue Update
Dahl passed out a memo regarding possible relocation of the house purchased at 3841 Central Avenue. It was
purchased in early 2017 for $100,000. The owner then renovated it and we purchased it last month for $200,000.
Staff believes the home could be moved to an empty lot in our City so that we could recoup some of the expenses we
incurred obtaining the property. The building official will prepare a formal report but has noted that a full basement
would need to be constructed to set the home on, and thestairs in the home would need to be reconfigured to meet
code. Staff would also recommend constructing a double garage. He told members that the EDA currently owns
ndnd
4641 Tyler St and 4201 Jefferson St and GMHC owns a lot at 3805 2St. Dahl stated he thought the 2Street lot
would be the best option as it would fit the character of the neighborhood and would be the site that would be easiest
to get to. The Jefferson St property could also work.
Dahl told members that he has been in contact with GMHC and they are open to the idea of partnering withthe City.
They would take care of constructing the basement and garage, and they have companies they have worked with that
would actually move the house. Dahl stated we may not get our entire investment back, but should be able to
recoup the majority of the expenditure.
the house. Cities who have done this in the past
usually sell the houses for a minimal amount (often times $1.00). Fehst said that staff will get information on both
ideas and bring estimated costsback to the Board for consideration.
rd
Murzyn asked if we still own the property on 3Street near the Root property. He said maybe that would be a better
site since we own the lot and
has been holding onto the lot untilwe know what will happen with the Root parcel. It could eventually be combined
with the Root property to make it a more desirable site for redevelopment.
Themeeting wasadjourned at7:20pm.
Respectfullysubmitted,
Shelley Hanson
Assistant Secretary
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RESOLUTION NO. 2017-29
A Resolution of the Economic Development Authority of Columbia Heights, Minnesota, Approving the
Financial Statements for Month of August 2017 and the Payment of the Bills for the Month of
August 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 August 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
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Resolution 2017-29
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AGENDA SECTION BUSINESS ITEMS
ITEM NO. 6
MEETING DATE OCTOBER 9, 2017
CITY OF COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY
ITEM:Single Family Home Program Concept Application Approval 4641 Polk Street NE
DEPARTMENT: Community Development
BY/DATE: Keith M. Dahl, October 2, 2017 BY/DATE:
BACKGROUND:
The Columbia Heights Economic Development Authority (EDA) has received two (2) concept applications
from two (2) separate home builders licensed by the State of Minnesota for the construction of a single family
within the Heritage Heights
Neighborhood. The Subject Property is part of the Single Family Home Lot Sales Program ,
which was established in 2015 to stabilize and increase property values throughout the City of Columbia
Lot prices for every
property within the Program are based upon the most recent Estimated Market Land Value assessed by Anoka
County. However, the EDA has reserved the right to review and adjust lot prices periodically provided that
sufficient evidence supports the price reduction of the lot.
The Subject Property was assessed by Anoka County to have a 2018 estimated market land value of $56,300.
However, after staff reached out to various local real estate agents, it was determine that the market value of
the Subject Property still remains lower than the estimated market land value, but it has drastically increased
since the construction of several new single family homes in the Heritage Heights Neighborhood. Therefore,
staff estimates that the Subject Property would have a market value between $4.00 to $4.50 per square foot
or approximately $29,620 to $33,320 based on the square footage of the lot.
Staff has evaluated both concept applications attached hereto based on the proposed purchase price and the
compliance to the development standards in the guidelines of the Program. Both concept applications meet
the development standards, as well as incorporate unique features that go above and beyond the minimum
requirements. However, based on the market value of the Subject Property, Home Detail offered $35,000 for
the Subject Property, whereas Tollberg Homes offered $27,500. Therefore, staff deemed it necessary for the
EDA commissioners to review both concept applications since several variables are under consideration, and
the EDA retains absolute authority to decide whether or not to accept any particular proposal.
STAFF RECOMMENDATION:
Staff recommends approval of the concept application submitted by Home Detail as presented.
RECOMMENDED MOTION(S):
Motion: Move to approve the concept application submitted by Home Detail for the property located at 4641
Polk Street NE, Columbia Heights, MN 55421.
Motion: Move to authorize staff to work with Home Detail to determine specific house plans and to prepare a
Purchase and Redevelopment Agreement for consideration at the next EDA meeting on November 6, 2017.
ATTACHMENTS:
1.Home Detail Concept Application Proposal Form (5 Pages)
2.Tollberg Homes Concept Application Proposal Form (10 Pages)
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City of Columbia Heights EDA Letter
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AGENDA SECTION BUSINESS ITEMS
ITEM NO. 7
MEETING DATE OCTOBER 9, 2017
CITY OF COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY
ITEM:Single Family Home Program Concept Application Approval 4201 Jefferson Street NE
DEPARTMENT: Community Development
BY/DATE: Keith M. Dahl, October 3, 2017 BY/DATE:
BACKGROUND:
from two (2) separate home builders licensed by the State of Minnesota for the construction of a single family
home on the property located at 4201 Jefferson was
acquired with the intent to be incorporated into
which was established in 2015 to stabilize and increase property values throughout the City of Columbia
. Lot prices for every property within the Program are based upon the most recent
Estimated Market Land Value assessed by Anoka County. However, the EDA has reserved the right to review
and adjust lot prices periodically provided that sufficient evidence supports the price reduction of the lot.
The Subject Property was assessed by Anoka County to have a 2018 estimated market land value of $50,000.
However, after staff reached out to various local real estate agents, it was determine that the market value of
the Subject Property is lower than the estimated market land value, but higher than the market value found
throughout the Heritage Heights Neighborhood. Therefore, staff estimates that the Subject Property would
have a market value between $6.50 to $7.00 per square foot or approximately $33,540 to $36,120 based on
the square footage of the lot.
Staff has evaluated both concept applications attached hereto based upon the proposed purchase price and
the compliance to the development standards in the guidelines of the Program. Both concept applications
meet the development standards, as well as incorporate unique features that go above and beyond the
minimum requirements. However, based on the market value of the Subject Property, Home Detail has
offered $35,000 for the Subject Property, whereas Tollberg Homes has offered $27,500. Therefore, staff
deemed it necessary for the EDA commissioners to review both concept applications since several variables
are under consideration, and the EDA retains absolute authority and discretion.
STAFF RECOMMENDATION:
Staff recommends approval of the concept application submitted by Home Detail as presented.
RECOMMENDED MOTION(S):
Motion: Move to approve the concept application submitted by Home Detail for the property located at 4201
Jefferson Street NE, Columbia Heights, MN 55421.
Motion: Move to authorize staff to work with Home Detail to determine specific house plans and to prepare a
Purchase and Redevelopment Agreement for consideration at the next EDA meeting on November 6, 2017.
ATTACHMENTS:
1.Home Detail Concept Application Proposal Form (5 Pages)
2.Tollberg Homes Concept Application Proposal Form (10 Pages)
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City of Columbia Heights EDA Letter
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