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ECONOMIC ECONOMIC DEVELOPMENT AUTHORIDEVELOPMENT AUTHORITTY AGENDAY AGENDA
NovemberNovember 66,, 20120177
6:30 pm6:30 pm
City HallCity Hall
CConferenceonference Room Room 11
thth
590590 4040 Avenue NEAvenue NE
Columbia Heights, MN 55421Columbia Heights, MN 55421
1.1.Call to OrderCall to Order
2.2.Roll Call Roll Call
3.3.Pledge of AllegiancePledge of Allegiance
CONSENT AGENDACONSENT AGENDA
4.4.Approve minutes of Approve minutes of October 9October 9,, 20120177
5.5.Approve Financial Report Approve Financial Report andand Payment of Bills forPayment of Bills for SeptemberSeptember,, 20172017 Resolution Resolution 20172017--
3030
Motion:Motion: Move to approve Consent Agenda as presented.Move to approve Consent Agenda as presented.
BUSINESS ITEMSBUSINESS ITEMS
6.6.Single Family Home Program Single Family Home Program -- Concept Application Concept Application ApprovalApproval of 464of 46411 TylerTyler StSt.. NENE
Motion: Motion: Move to approve the concept application submitted by Move to approve the concept application submitted by Tollberg HomesTollberg Homes for the for the
property property located at 4641located at 4641 TylerTyler Street NE, Columbia Heights, MN 55421. Street NE, Columbia Heights, MN 55421.
Motion:Motion: Move to authorize staff to work with Move to authorize staff to work with Tollberg Homes Tollberg Homes to determine specific to determine specific
house plans and to prepare a Purchase and Redevelopment Agreement for house plans and to prepare a Purchase and Redevelopment Agreement for final sale final sale
consideration at the next EDA meeting on consideration at the next EDA meeting on December 4, 2017December 4, 2017..
7.7.Single Family Home Lot Sales Program Single Family Home Lot Sales Program 4201 Jefferson Street NE House Plan Review4201 Jefferson Street NE House Plan Review
8.8.Single Family Home Lot Sales Program Single Family Home Lot Sales Program 4641 Polk Street NE House Plan Review4641 Polk Street NE House Plan Review
9.9.Consideration of 3841 Central AvenuConsideration of 3841 Central Avenue NEe NE RelocationRelocation
OTHER BUSINESSOTHER BUSINESS
10.10.AdjournAdjourn
DecemberDecember 44, 2017, 2017
The next The next regularly scheduled regularly scheduled EDA EDA meeting meeting will be will be ..
ECONOMECONOMIIC DEVELOC DEVELOPPMENT AUTHORMENT AUTHORIITYTY(EDA) (EDA)
MMIINUTES ONUTES OFFTHE MEETTHE MEETIING ONG OFF
OCTOBER 9OCTOBER 9, 201, 20177
TThheemmeeteetining wag wasscalcallled toed toordeorderraat 6:t 6:3300ppmmbbyyPresPresiidedennttMarlaine SzurekMarlaine Szurek..
MMeemmbbererssPrePresseennt:t:MMurzurzynyn, Herr, Herrininger,ger,SchmSchmiitttt,,Williams,Williams,NNovoviittsskkyy,,BueBuessgegennss, and , and
SzurekSzurek
StaStaffffPrePresseennt:t:Walt Fehst, KeithWalt Fehst, KeithDahDahll,,and and Joseph HogeboomJoseph Hogeboom
PPLEDGE OLEDGE OFFALLEGIANCEALLEGIANCE--
RECITERECITEDD
CONSENCONSENTTAGENDA AGENDA
1.1.
AAppropprovveemiminutenutessooffSeptember 5September 5,,20172017
2.2.
AAppropprovve Fe FiinananncciiaallRepoReporrt at annd Pad PaymymeennttooffBBiillllssffor or AugustAugust,,20172017ReRessoollututiioonn20172017--2299
QueQuessttiioonnssffrorommmmeemmberberss: :
There was no further discussion of this item.There was no further discussion of this item.
Motion bMotion byyBuesgensBuesgens,,sseconded beconded byyMurzynMurzyn,,ttooaapppprrove the Minuteove the MinutessooffSeptember 5September 5,,20120177,,anandd
ththeeFFinancialinancialReport anReport anddPPayment ayment oof Billf BillssfoforrAugust, August, 20120177aasspprreessentedented..All ayeAll ayes. s.
MOTMOTIIONONPPASSED.ASSED.
RESOLUTIORESOLUTIONNNONO..22001717--2299
AAResolutResolutiion of thon of theeEconomic Development Economic Development AAuthorituthorityyof Columbia Heights, Minnesotaof Columbia Heights, Minnesota,,Approving Approving tthehe
Financial Statements for Month oFinancial Statements for Month offAugustAugust22001177and the Payment of and the Payment of tthe Bills for thehe Bills for theMonth ofMonth ofAugust,August,2020117.7.
WHERWHEREEASAS,,
the Colthe Coluumbia Heights Economicmbia Heights EconomicDevelopment Authority (Development Authority (EEDA) DA) iis requireds requiredby Miby Minnnesota Statutesnesota StatutesSectioSectionn
469.096, Subd. 9, to prepare a detailed financ469.096, Subd. 9, to prepare a detailed financiial statement whichal statement whichshows all receipts shows all receipts andand
disbdisbuursements,rsements,their naturetheir nature,,the money on hand, the the money on hand, the ppurposes tourposes towhich the money on hand is to which the money on hand is to
bbe appliee appliedd,,the EDA's the EDA's
ccrredits and assets anedits and assets anddiits outstanding liabilities; andts outstanding liabilities; and
WHERWHEREEASAS,,
saidsaidStatute also requires the EDA to examine the statement and treasuStatute also requires the EDA to examine the statement and treasurrer's voucer's vouchhers or bilers or billls
and s and iiffcocorrrect,rect,to to
approve them by approve them by rresolutiesolutioonnand enter the and enter the rresolution in its records; andesolution in its records; and
WHERWHEREEASAS,,
the financial statement fthe financial statement foorrththeemontmonthhooffAugust August 20120177has been has been rreviewed by the eviewed by the EEDA Commission;DA Commission;andand
11
EDEDA MinutesA Minutes
Page 2Page 2
OctOctober 9ober 9,,20172017
WHERWHEREEASAS,,
the EDA has examinethe EDA has examineddthe financialthe financialstatements anstatements anddffiinds them to be acceptable as to both fnds them to be acceptable as to both foormrmandand
accuracy; andaccuracy; and
WHERWHEREEASAS,,
the EDA Commissithe EDA Commissioon has other means to vern has other means to veriify the intent of Section 469.096, Subd. 9, inclfy the intent of Section 469.096, Subd. 9, incluudidinngg
but but nnot limited to Comprehensive Annual Financialot limited to Comprehensive Annual FinancialReports, Annual CReports, Annual Ciity apprty approoved Budgets, Audits and similarved
Budgets, Audits and similar
dodoccumentation; andumentation; and
WHEREASWHEREAS,,
financials statements are hefinancials statements are hellcce Department e Department iin a methn a methood od ouutlined by the Statetlined by the Stateofof
oords Retentirds Retentioon Schen Scheddule,ule,
NOW, THEREFORNOW, THEREFOREEBE IT RESOLVEBE IT RESOLVEDD
by the Bby the Booard ofard ofCommissioners of the ColumbCommissioners of the Columbiia Heights Economica Heights Economic
DevelDeveloopment Autpment Authhority that it has examined the referencedority that it has examined the referencedfinancial statements incfinancial statements inclluding the check history,uding
the check history,andandthey are they are
found to be correct, as to form and content; andfound to be correct, as to form and content; and
BEBEIT FURTHER RIT FURTHER REESOLVESOLVEDD
the financial statementhe financial statementts are ackns are acknoowledged and received and the check historwledged and received and the check historyyasas
pprresented esented iin wrn wriiting is approved foting is approved forrpayment out of propayment out of proppererfunds; funds; andand
BEBEIT FURTHER RIT FURTHER REESOLVESOLVEDD
this resothis resollution is made a paution is made a parrt of the permanet of the permanennt records of the Columbia Heightst records of the Columbia Heights
EcEcoonomnomiic Development Authority.c Development Authority.
ORDER OORDER OFFEECCONOMIC DEVELOPMENT ONOMIC DEVELOPMENT
AUTHORIAUTHORITTYY
Passed thPassed thiis __s __9t9thh____ da____ dayyofof______OctoberOctober____________________, 2______, 2001717
OffeOfferred by:ed by:BuesgensBuesgens
SeconSecondded by:ed by:MurzynMurzyn
RoRolll Call:l Call:All ayesAll ayes
BUSINESS ITEMSBUSINESS ITEMS
1.1.Single Family Home ProgramSingle Family Home Program--Approve concept application for 4641 Polk St NEApprove concept application for 4641 Polk St NE
Dahl explained that tDahl explained that the Columbia Heights he Columbia Heights EEconomic conomic DDevelopment evelopment AAhas received two has received two
(2) concept applications from two (2) separate home builders licensed by the State of Minnesota for the (2) concept applications from two (2) separate home builders licensed by the State
of Minnesota for the
within the Heritage Heightwithin the Heritage Heights Neighborhood. The Subject Property is part of the Single Family Home Lot s Neighborhood. The Subject Property is part of the Single
Family Home Lot
thin the Heritage Heights thin the Heritage Heights
Neighborhood. Lot prices for every property within the Program are based upon the most recent Estimated Neighborhood. 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 Market Land Value assessed by Anoka County. However, the EDA has reserved the right
to review and
adjust lot prices periodicaladjust lot prices periodically provided that sufficient evidence supports the price reduction of the lot. ly provided that sufficient evidence supports the
price reduction of the lot.
22
EDA MinutesEDA Minutes
Page 3Page 3
October 9, 2017October 9, 2017
Dahl said tDahl said the Subject Property was assessed by Anoka County to have a 2018 estimated market land value of he 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 $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 lowervalue of the Subject Property still remains lowerthan the estimated market land value, but it has drastically 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. 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 $Therefore, staff estimates that the Subject Property would have a market value between $4.00 to
$4.50 per 4.00 to $4.50 per
square foot or approximately $29,620 to $33,320 based on the square footage of the lot. 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 Staff has evaluated both concept applications attached hereto based on the
proposed purchase price and the
compliance to the development standards icompliance to the development standards in the guidelines of the Program. Both concept applications meet n 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 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 offrequirements. However, based on the market value of the Subject Property, Home Detail offered
$35,000 for ered $35,000 for
the Subject Property, whereas Tollberg Homes offered $27,500. Therefore, staff deemed it necessary for the 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 EDA commissioners to review both concept applications since several variables
are under consideration, and
the EDA retains absolute the EDA retains absolute authority to decide whether or not to accept any particular proposal. authority to decide whether or not to accept any particular
proposal.
STAFF RECOMMENDATION:STAFF RECOMMENDATION:
Staff recommends Staff recommends approval of the concept application submitted by Home Detail as presented. approval of the concept application submitted by Home Detail as presented.
Questions by members:Questions by members:
The Commission discussed both the propertThe Commission discussed both the property at 4201 Jefferson Street NE, as well as the property at 4641 Polk y at 4201 Jefferson Street NE, as
well as the property at 4641 Polk
Street NE during this period. Street NE during this period.
Executive Director Fehst expressed the proposal presented by Tollberg Homes featured more decorative stone Executive Director Fehst expressed the proposal presented by Tollberg Homes
featured more decorative stone
and other design features on the frontand other design features on the front--facing facfacing facades. Fehst questioned whether or not twoades. Fehst questioned whether or not two--level
homes would level homes would
stand out along Jefferson Street. Commissioner Murzyn and Chair Szurek agreed that the proposed elevation stand out along Jefferson Street. Commissioner Murzyn and Chair Szurek agreed
that the proposed elevation
may be out of scale with neighboring homes. may be out of scale with neighboring homes.
Jeffrey Magdik, President of My Home Detail,Jeffrey Magdik, President of My Home Detail,stated that the design concepts could be refined prior to final stated that the design concepts
could be refined prior to final
approval. Mr. Magdik stated that the existing homes in Columbia Heights that have been built by My Home approval. Mr. Magdik stated that the existing homes in Columbia Heights that have
been built by My Home
Detail use front porcDetail use front porches as a way to provide visual articulationhes as a way to provide visual articulationon fronton front--facing facadefacing facades, but that
he is open to s, but that he is open to
other alternatives. Magdik further stated that he has secured potential buyers for both properties.other alternatives. Magdik further stated that he has secured potential buyers for
both properties.
Commissioner Schmitt expressed that splitCommissioner Schmitt expressed that split--level homes, alevel homes, asspresented in concept by Tollberg Homes, have presented in concept by
Tollberg Homes, have
accessibility issues and taccessibility issues and that her preference would be to see more traditional onehat her preference would be to see more traditional one--or twoor two--level
homes level homes
constructed. constructed.
Commissioner Herringer asked whether or not both lots have to be sold to the same builder, or if they could be Commissioner Herringer asked whether or not both lots have to be sold to
the same builder, or if they could be
sold to separate buildersold to separate builderss. Secretary Dahl stated that . Secretary Dahl stated that either option is possible. either option is possible.
33
EDA MinutesEDA Minutes
Page 4Page 4
October 9, 2017October 9, 2017
MoMotion bytion bySchmittSchmitt, seconded by, seconded byNovitskyNovitsky,,to approve the concept application submitted by Home Detail for the to approve the concept application submitted
by Home Detail for the
property located at 4641 Polk Street NE, Columbia Heights, MN 55421.property located at 4641 Polk Street NE, Columbia Heights, MN 55421.AllAllayes. MOTION PASSED.ayes. MOTION PASSED.
MoMotion by Schmitttion by Schmitt, seconded by, seconded byBuesgensBuesgens,,to authorize staff to work with Home Detail to determine specific house 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 plans and to prepare a Purchase and Redevelopment Agreement for consideration
at the next EDA meeting on
November 6, 2November 6, 2017.017.All ayes. MOTION PASSED.All ayes. MOTION PASSED.
2.2.Single Family Home ProgramSingle Family Home Program--Approve concept application for 4201 Jefferson St NEApprove concept application for 4201 Jefferson St NE
Dahl told members that tDahl told members that t
concept applications from two (2) separate home builders licensed by the State of Minnesota for the construction of concept applications 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 a single family home on the property located at 4201 Jef4201 Jefferson ferson
Property Property was acquired with the intent to be incorporated intowas acquired with the intent to be incorporated intothe Single Family Home Lot Sales Program (the the Single Family
Home Lot Sales Program (the
t the City of t the City of
..Lot prices for every property within the Program are based upon the most recent 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 Estimated Market Land Value assessed by Anoka County. However, the EDA has
reserved the right to review and
adjust lot prices perioadjust lot prices periodically provided that sufficient evidence supports the price reduction of the lot. dically provided that sufficient evidence supports the
price reduction of the lot.
Dahl stated that tDahl stated that the Subject Property was assessed by Anoka County to have a 2018 estimated market land value of he Subject Property was assessed by Anoka County to
have a 2018 estimated market land value of
$5$50,0000,000. However, after staff reached out to various local real estate agents, it was determine that the market value . However, after staff reached out to various local real
estate agents, it was determine that the market value
of the Subject Property of the Subject Property is is lower than the estimated market land value, but lower than the estimated market land value, but higher than the market value found
higher than the market value found
throughout the Hthroughout the Heritage Heights Neieritage Heights Neighborhood. Therefore, staff estimates that the Subject Property would have a ghborhood. Therefore, staff estimates
that the Subject Property would have a
market value between $market value between $66..550 to $0 to $77..000 per square foot or approximately $0 per square foot or approximately $3333,,540540to $3to $36,1206,120based on the
square based on the square
footage of the lot. footage of the lot.
Staff has evaluated both concept applications attStaff has evaluated both concept applications attached hereto based ached hereto based uponuponthe proposed purchase price and the the
proposed purchase price and the
compliance to the development standards in the guidelines of the Program. Both concept applications meet 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 development standards, as well as incorporate unique features that go above and beyond the minimum
requirements. the minimum requirements.
However, based on the market value of the Subject Property, Home Detail However, based on the market value of the Subject Property, Home Detail has has offered $35,000 for the Subject
offered $35,000 for the Subject
Property, whereas Tollberg Homes Property, whereas Tollberg Homes has has offered $27,500. Therefore, staff deemed it necessary for the EDA offered $27,500. Therefore, staff deemed it
necessary for the EDA
commissioners to recommissioners to review both concept applications since several variables are under consideration, and the EDA view both concept applications since several variables
are under consideration, and the EDA
retains absolute authority retains absolute authority and discretionand discretion..
STAFF RECOMMENDATION:STAFF RECOMMENDATION:
Staff recommends Staff recommends approval of the concept application submitted by Home Detail as presented. approval of the concept application submitted by Home Detail as presented.
Questions by members:Questions by members:
This item was discussed in tandem with the previous agenda item. This item was discussed in tandem with the previous agenda item.
44
EDA MinutesEDA Minutes
Page 5Page 5
October 9, 2017October 9, 2017
Motion byMotion bySchmittSchmitt, seconded by, seconded byBuesgensBuesgens, to approve the concept application submitted by Home Detail for the , to approve the concept application submitted
by Home Detail for the
property located at 4201 Jefferson Street NE, Columbia Heights, MN 55421. All ayes. MOTION PASSED. property located at 4201 Jefferson Street NE, Columbia Heights, MN 55421. All ayes.
MOTION PASSED.
Motion byMotion bySchmittSchmitt, seconded by, seconded byBuesgensBuesgens, to authorize staff to work with Home Deta, to authorize staff to work with Home Detail to determine specific
house il to determine specific house
plans and to prepare a Purchase and Redevelopment Agreement for consideration at the next EDA meeting on plans and to prepare a Purchase and Redevelopment Agreement for consideration
at the next EDA meeting on
November 6, 2017. All ayes. MOTION PASSED.November 6, 2017. All ayes. MOTION PASSED.
OTHER BUSINESSOTHER BUSINESS
3841 Central Avenue Update3841 Central Avenue Update--
Keith Dahl stated that dueKeith Dahl stated that dueto time constrainto time constraintts with the 7:00 pm City Council meeting, he would provide a written s with the 7:00 pm City Council
meeting, he would provide a written
update to the EDA concerning this item in the coming weeks. update to the EDA concerning this item in the coming weeks.
TThheemmeeteetining wag wassadadjjourournned ated at7:007:00ppmm..
RReesspepeccttffuullllyyssububmmiittettedd,,
Joe HogeboomJoe Hogeboom
Deputy Director Deputy Director
55
RESOLUTION RESOLUTION NO. NO. 20120177--3030
A A RResolution of the esolution of the Economic Development Authority Economic Development Authority of Columbia Heights, Minnesota, of Columbia Heights, Minnesota, Approving the Approving
the
Financial Statements for Month of Financial Statements for Month of SeptemberSeptember 20120177 and the Payment of the Bills for the Month of and the Payment of the Bills for the Month
of
SeptemberSeptember 20120177..
WHEREASWHEREAS,, the Columbia Heights Economic Development Authority (EDA) is required by Minnesota Statutes 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 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 whidisbursements, their nature, the money on hand, the purposes to which the money on hand is to be applied, ch the money
on hand is to be applied,
the EDA's credits and assets and its outstandthe EDA's credits and assets and its outstanding liabilities; anding liabilities; and
WHEREAS,WHEREAS, said Statute also requires the EDA to examine the statement and treasurer's vouchers or bills and if said Statute also requires the EDA to examine the statement and
treasurer's vouchers or bills and if
correct, to approve them by resolution correct, to approve them by resolution and enter the resolution in its records; andand enter the resolution in its records; and
WHEREAS, WHEREAS, the financial statement for the the financial statement for the month month of of SeptemberSeptember 20120177 has been reviewed by the EDA has been reviewed by the
EDA
Commission; and Commission; and
WHEREAS, WHEREAS, the EDA has examined the financial statements and finds them to be acceptable as to both the EDA has examined the financial statements and finds them to be acceptable
as to both form form
and accuracy; and and accuracy; and
WHEREAS, WHEREAS, the EDA Commission has other means to verify the intent of Section 469.096, Subd. 9, including 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 but not limited to Comprehensive Annual Financial Reports, Annual City approved
Budgets, Audits and similar
documentation; and documentation; and
WHEREAS,WHEREAS,
NOW, THEREFORE BE IT RESOLVEDNOW, THEREFORE BE IT RESOLVED by the Board of Commissioners of the Columbia Heights Economic by the Board of Commissioners of the Columbia Heights Economic
DevelopmenDevelopment Authority that it has examined the referenced financial statements including the check history, t 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 and they are found to be correct, as to form and content; and
BE IT FURTHER RESOLVED BE IT FURTHER RESOLVED the financial statements are acknowledged and received and the check hthe financial statements are acknowledged and received and the check
history as istory as
presented in writing is approved for payment out of proper funds; andpresented in writing is approved for payment out of proper funds; and
BE IT FURTHER RESOLVED BE IT FURTHER RESOLVED this resolution is made a part of the permanent records of the Columbia Heights this resolution is made a part of the permanent records
of the Columbia Heights
Economic Development Authority.Economic Development Authority.
ORDER OF ORDER OF ECONOMIC DEVELOPMENT AUTHORITYECONOMIC DEVELOPMENT AUTHORITY
Passed this _________ dayPassed this _________ day of ______________________, 201of ______________________, 20177
Offered by:Offered by:
Seconded by:Seconded by:
Roll Call:Roll Call:
PresidentPresident
Attest:Attest:
SecretarySecretary
66
Resolution Resolution 20172017--3030
77
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99
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1919
2020
2121
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AGENDA AGENDA SECTIONSECTION BUSINESS ITEMSBUSINESS ITEMS
ITEM NO.ITEM NO. 66
MEETING DATEMEETING DATE NOVEMBER 6NOVEMBER 6, 201, 20177
CITY CITY OF COLUMBIA HEIGHTS OF COLUMBIA HEIGHTS ECONOMIC DEVELOPMENTECONOMIC DEVELOPMENT AUTHORITYAUTHORITY
ITEM:ITEM:Single Family Home Program Single Family Home Program Concept Application Approval Concept Application Approval of of 46464141 TylerTyler StreetStreet NENE
DEPARTMENT:DEPARTMENT: Community DevelopmentCommunity Development
BYBY/D/DATEATE:: Keith M. DahlKeith M. Dahl, , November November 22, , 20120177 BYBY/D/DATEATE::
BACKGROUND:BACKGROUND:
The Columbia The Columbia Heights Heights EEconomic conomic DDevelopment evelopment AAuthority (uthority (EDAEDA)) received received a a concept application concept application from
from
Tollberg Homes, a licensedTollberg Homes, a licensed home builderhome builder inin the State of Minnesotathe State of Minnesota offering $22,500 offering $22,500 for the construction
of a for the construction of a
single family home located at 4641 single family home located at 4641 TylerTyler , a property located within the , a property located within the
Heritage Heights neighborhoodHeritage Heights neighborhood. . The Subject Property is part of the Single Family Home Lot Sales ProgramThe Subject Property is part of the Single Family
Home Lot Sales Program (the (the
, which was established in 2015 to stabilize and increase property values throughout the City of , which was established in 2015 to stabilize and increase property values throughout
the City of
Lot prices Lot prices for for
every property every property within the Program are based upon within the Program are based upon the the most recent most recent Estimated Market Land Value assessed by Estimated Market
Land Value assessed by
Anoka County. However, the EDA Anoka County. However, the EDA has has reservereservedd the right to review and adjust lot prices periodically provided the right to review and adjust
lot prices periodically provided
that sufficient evidence supports the price reduction of the lot. that sufficient evidence supports the price reduction of the lot.
The Subject Property wasThe Subject Property was assessed by assessed by Anoka County Anoka County to have ato have a 2018 2018 eestimated stimated mmarket arket lland and vvalue of
$alue of $3838,,660000. .
However, However, after staff reached out to various local real estate agentsafter staff reached out to various local real estate agents, it was , it was ddetermine etermine that that
the the market value of market value of
the the Subject PropertySubject Property still remains lower than the estimated marstill remains lower than the estimated market land valueket land value,, butbut itit has drastically
increased has drastically increased
since since the construction of several new single family homes in the the construction of several new single family homes in the Heritage Heights NeighborhoodHeritage Heights Neighborhood.
. Therefore, Therefore,
staff estimates that the Subject Property would have a market value between $4.00 to $4.50 per staff estimates that the Subject Property would have a market value between $4.00 to $4.50
per square foot square foot
or approximately $29,620 to $33,320 based on the square footage of the lot.or approximately $29,620 to $33,320 based on the square footage of the lot.
However, earlier this year, the Public Works Department confirmed that there was a water main break at the However, earlier this year, the Public Works Department confirmed that there
was a water main break at the
Subject PropertySubject Property.. ThisThis resulted in the sewer and water linesresulted in the sewer and water lines being disconnected at the main underneath the being disconnected
at the main underneath the
public rightpublic right--ofof--way in the street.way in the street. In order for a singleIn order for a single--family home to be constructed on the Subject Property, family home to
be constructed on the Subject Property,
sewer and water connection to the main will be required, and it will cost approximately $4,000.sewer and water connection to the main will be required, and it will cost approximately
$4,000. TThus, based hus, based
on the market value of the Subject Property and the additional costs that will be incurred to connect sewer on the market value of the Subject Property and the additional costs that
will be incurred to connect sewer
and water lines, staff estimates that a reasonable offer price for this particular property would be between and water lines, staff estimates that a reasonable offer price for this particular
property would be between
$25,620 and $25,620 and $29,320. $29,320.
STAFSTAFF F RECOMMENDATION:RECOMMENDATION:
Staff recommends Staff recommends approval of the concept application submitted by approval of the concept application submitted by Tollberg HomesTollberg Homes only if the offer price,
at only if the offer price, at
a minimum, is increased to $2a minimum, is increased to $277,500,500..
RECOMMENDED MOTIONRECOMMENDED MOTION(S)(S)::
Motion: Motion: Move to Move to acceptaccept the concept application the concept application submitted by submitted by Tollberg HomesTollberg Homes for the property located at 46for
the property located at 46441 1
TylerTyler Street NE, Columbia Heights, MN 55421Street NE, Columbia Heights, MN 55421 for an offer price of no less than $2for an offer price of no less than $277,500,500. .
Motion:Motion: Move to Move to authorize staff authorize staff to work with to work with Tollberg HomesTollberg Homes to determine specific house plans to determine specific house
plans and to and to prepare prepare
a Purchase and Redevelopment Agreement a Purchase and Redevelopment Agreement forfor considerconsideration at the ation at the next next EDA EDA meeting omeeting onn December 4December
4,, 20120177..
ATTACHMENTS:ATTACHMENTS:
1.1.Concept Application Proposal Concept Application Proposal ((1010 PagePagess))
5555
City of Columbia Heights City of Columbia Heights EDA LetterEDA Letter
5656
5757
5858
5959
6060
6161
6262
6363
6464
6565
AGENDA SECTIONAGENDA SECTION BUSINESS ITEMSBUSINESS ITEMS
ITEM NO.ITEM NO. 77
MEETING DATEMEETING DATE NOVEMBER 6NOVEMBER 6, 201, 20177
CITY CITY OF COLUMBIA HEIGHTS OF COLUMBIA HEIGHTS ECONOMIC DEVELOPMENTECONOMIC DEVELOPMENT AUTHORITYAUTHORITY
ITEM:ITEM:Single Family Home Lot Sales Program Single Family Home Lot Sales Program 4201 Jefferson Street NE House Plan Review4201 Jefferson Street NE House Plan Review
DEPARTMENT:DEPARTMENT: Community DevelopmentCommunity Development
BYBY/D/DATEATE:: Keith M. DahlKeith M. Dahl, , October 3October 311, 201, 20177 BYBY/D/DATEATE::
BACKGROUND:BACKGROUND:
On October 9, 2017, tOn October 9, 2017, tapproved the approved the
concept application submitted by Home Detail, Inc. for the concept application submitted by Home Detail, Inc. for the construction of a single family home on the construction of a single
family home on the
property located at property located at 4201 Jefferson 4201 Jefferson At that time, the EDA authorized staff toAt that time, the EDA authorized staff to
work with Home Detail to determine specific house plans and to prepare a Purchased and Redevelopment work with Home Detail to determine specific house plans and to prepare a Purchased
and Redevelopment
Agreement for consideration at the next EDA meetingAgreement for consideration at the next EDA meeting on Novembeon November 6, 2017r 6, 2017..
Unfortunately, staff continues to work with Home Detail Unfortunately, staff continues to work with Home Detail toto develop specific house plandevelop specific house plans that conforms
that conform to all to all
proposal guidelines outlined in the Single Family Home Lot Sales Program (proposal guidelines outlined in the Single Family Home Lot Sales Program (, specifically, specifically thethe
section section pertainingpertaining to buildinto building standards. Therefore, at the request of Home Detail, staff agreed to present the g standards. Therefore, at the request of
Home Detail, staff agreed to present the
draft house plans to the EDA for review draft house plans to the EDA for review tonighttonight, and delay the final sale consideration until which time specific , and delay the final
sale consideration until which time specific
house plans are finalized. Ahouse plans are finalized. Attached ttached for review for review by by ccommissioommission n mmembers embers of the EDA of the EDA are the draft house plans
are the draft house plans
for the Subject Propertyfor the Subject Property, as well as the proposal guidelines of the Program, as well as the proposal guidelines of the Program itselfitself. .
STAFF STAFF RECOMMENDATION:RECOMMENDATION:
Based on the draft house plans submitted by Home DetailBased on the draft house plans submitted by Home Detail and pursuant to Subsection (f), (g) and and pursuant to Subsection (f),
(g) and (h), Section (h), Section
5: Building Standards of the Proposal Guidelines,5: Building Standards of the Proposal Guidelines,, staff recommends that , staff recommends that the garage the garage should should
be rearbe rear--loadedloaded, ,
and a front porch extend the full width of the singleand a front porch extend the full width of the single--family homefamily home..
RECOMMENDED MOTION(S):RECOMMENDED MOTION(S):
Motion:Motion: Move to Move to authorize staff to authorize staff to continue continue workworkinging with Home Detail to determine specific house plans and with Home Detail to determine
specific house plans and
to prepare a Purchase and Redevelopment Agreement for consideration at the next to prepare a Purchase and Redevelopment Agreement for consideration at the next available available EDA
meeting on EDA meeting on
November 27November 27, 2017., 2017.
ATTACHMENTS:ATTACHMENTS:
1.1.Draft House Plans Draft House Plans ((44 Pages)Pages)
2.2.Proposal Form and Proposal Form and Guidelines of the Single Family Home Lot Sales Program (4 Pages)Guidelines of the Single Family Home Lot Sales Program (4 Pages)
6666
City of Columbia Heights City of Columbia Heights EDA LetterEDA Letter
6767
6868
6969
7070
PROPOSAL FORMPROPOSAL FORM
((t▄śĂℓś ŕśĊĂľ╙ Ă■ŕ t▄śĂℓś ŕśĊĂľ╙ Ă■ŕ ľ◘▓♫▄śĊśľ◘▓♫▄śĊś Ċ╙╜ℓ ℓśľĊ╜◘■ Ă■ŕ ℓĵĽ▓╜Ċ ╜Ċ Ċ◘ Ċ╙ś /◘▓▓ĵ■╜ĊŦ 5śōś▄◘♫▓ś■Ċ 5ś♫ĂʼnĊ▓ś■ĊĊ╙╜ℓ ℓśľĊ╜◘■ Ă■ŕ ℓĵĽ▓╜Ċ ╜Ċ Ċ◘ Ċ╙ś /◘▓▓ĵ■╜ĊŦ 5śōś▄◘♫▓ś■Ċ 5ś♫ĂʼnĊ▓ś■Ċ))
PROPERTY PROPERTY ADDRESS:______________________________________________________ADDRESS:______________________________________________________
CHECK ONE: CHECK ONE:
___ BUILDER OFFERS $___ BUILDER OFFERS $________________ TO PURCHASE THIS LOTTO PURCHASE THIS LOT
___ BUILDER OFFERS $___ BUILDER OFFERS $1,000 1,000 FOR A SIXFOR A SIX--MONTH OPTION TO PURCHASE THIS LOT FOR $MONTH OPTION TO PURCHASE THIS LOT
FOR $________________
This proposal is not a purchase agreement or other binding contract. At this time, the This proposal is not a purchase agreement or other binding contract. At this time, the bbuilder
is submitting a uilder is submitting a
proposal to purchase this lot and build a new single family house in accordance with the RFP Guidelines, or is proposal to purchase this lot and build a new single family house in accordance
with the RFP Guidelines, or is
requesting a sixrequesting a six-- month month option for the same.option for the same.
BBoard, then EDA staff oard, then EDA staff willwill work with the work with the bbuilder to uilder to
determine the specific house plandetermine the specific house plan and and draft draft an Option Agreement or Purchase and Redevelopment Agreement to an Option Agreement or Purchase
and Redevelopment Agreement to
be be signed by the signed by the bbuilder and uilder and presented to the EDA Board at its nextpresented to the EDA Board at its next meetingmeeting with the required earnest money
or with the required earnest money or
option fee.option fee. If the EDA If the EDA BBoard gives final approval at that time, a binding contract existoard gives final approval at that time, a binding contract existss between
the EDA and between the EDA and
bbuilder.uilder.
Builders may purchase a 6Builders may purchase a 6--momonth option on a lot for $nth option on a lot for $1,01,00000,, renewable for an additional 6 months for an renewable for an additional
6 months for an
additional $500. The option provides the additional $500. The option provides the bbuilder with exclusive right to purchase the lot and build a house subject uilder with exclusive right
to purchase the lot and build a house subject
to the normal EDA process, requirements and guidelines. As a conto the normal EDA process, requirements and guidelines. As a condition of the option, the dition of the option, the bbuilder
must list the lot uilder must list the lot
with a towith a to--bebe--built house on the MLS for the duration of the option. The number of options is limited. No built house on the MLS for the duration of the option. The number
of options is limited. No bbuilder uilder
may havemay have anan option on more than option on more than 2525% of the % of the s lotss lots..
BUILDER: BUILDER: Ủ.ĵ╜▄ŕśʼn ╜ℓ ʼnśijĵ╜ʼnśŕ ĊỦ.ĵ╜▄ŕśʼn ╜ℓ ʼnśijĵ╜ʼnśŕ Ċ◘ Ľś Ă wśℓ╜ŕś■Ċ╜Ă▄ .ĵ╜▄ŕ╜■┼ /◘■ĊʼnĂľĊ◘ʼn ▄╜ľś■ℓśŕ ĽŦ Ċ╙ś {ĊĂĊś ◘ź a╜■■śℓ◘ĊĂỀủ◘ Ľś Ă wśℓ╜ŕś■Ċ╜Ă▄ .ĵ╜▄ŕ╜■┼ /◘■ĊʼnĂľĊ◘ʼn ▄╜ľś■ℓśŕ
ĽŦ Ċ╙ś {ĊĂĊś ◘ź a╜■■śℓ◘ĊĂỀủ
Name: _______________________________________ State License Number: _____________Name: _______________________________________ State License Number: _____________
Phone: ___________________________ Address: _____________________________________Phone: ___________________________ Address: _____________________________________
City/State/Zip: __________________________________________________________________City/State/Zip: __________________________________________________________________
Email: ___________________________________ Website: _____________________________Email: ___________________________________ Website: _____________________________
REQUIRED ATTACHMENTS AND ADDITIONAL INFORMATION:REQUIRED ATTACHMENTS AND ADDITIONAL INFORMATION:
Attach one representative examplAttach one representative example of a house you would plan to build on this lot if your e of a house you would plan to build
on this lot if your
proposal is selected. Itproposal is selected. It does not need to show exactly how it would be placed on the lot, it just needs to does not need to show exactly how it would be placed
on the lot, it just needs to
show the approximate size, quality and features you would anticipate a new house would have on this lot. show the approximate size, quality and features you would anticipate a new house
would have on this lot.
A specific house plan would be determined after a proposal is tentatA specific house plan would be determined after a proposal is tentatively accepted by the EDA. ively accepted by the
EDA.
The EDA will only sell lots to The EDA will only sell lots to licensed licensed bbuilders who have experience in house construction in Minnesota. uilders who have experience in house
construction in Minnesota.
Please list the addresses of three houses you have built in Minnesota within the last five years, or attach Please list the addresses of three houses you have built in Minnesota within
the last five years, or attach
other evidenceother evidence of qualification for review by the EDA.of qualification for review by the EDA.
House #1: _______________________________________________________________House #1: _______________________________________________________________
House #2: _______________________________________________________________House #2: _______________________________________________________________
House #3:_________________________________________________________House #3:_______________________________________________________________________
477833v2 CBR CL205477833v2 CBR CL205--5555
7171
PROPOSAL GUIDELINESPROPOSAL GUIDELINES
Please provide the following information regarding the lot(s) intended for purchase:Please provide the following information regarding the lot(s) intended for purchase:
A.A.Legal Description: Legal Description: The property is legally described as The property is legally described as
____________________________________________________________________________________________________________________________________________________________________________
____________________________________________________________________________________________________________________________________________________________________________
____________________________________________________________________________________________________________________________________________________________________________
B.B.Anticipated Timeline for Lot Sales.Anticipated Timeline for Lot Sales.
After a After a bbuilder submits a qualifying proposal, the timeline is as follows:uilder submits a qualifying proposal, the timeline is as follows:
EDA meeting #1: EDA rejects or tentatively accepts EDA meeting #1: EDA rejects or tentatively accepts bbbbuilder uilder
prepares detailed house plans for EDA public prepares detailed house plans for EDA public hearinghearing and works with staff to prepare and works with staff to prepare
proposed Option Agreement or Purchase and Redevelopment Agreementproposed Option Agreement or Purchase and Redevelopment Agreement..
2121 days after EDA meeting #days after EDA meeting #11: Deadline for : Deadline for bbuilder to sign the Purchase & Redevelopment uilder to sign the Purchase & Redevelopment
Agreement and pay $2,000 earnest moneyAgreement and pay $2,000 earnest money or sign the Option Agror sign the Option Agreement and pay Option eement and pay Option
feefee..
EDA meeting #2 (approximately one month after #1): EDA holds public hearing and considers EDA meeting #2 (approximately one month after #1): EDA holds public hearing and considers
a resolution authorizing the lot salea resolution authorizing the lot sale or Option Agreement.or Option Agreement. FFees are refunded at this time if ees are refunded at this time
if
EDA does not approve the OptiEDA does not approve the Option Agreement or Pon Agreement or Purchase and Redevelopment Agreement.urchase and Redevelopment Agreement.
If approved, fees are nonIf approved, fees are non--refundable.refundable.
60 days after EDA meeting #2 60 days after EDA meeting #2 ddeadline for beadline for builder to close on the lot purchase.uilder to close on the lot purchase.
C.C.Deadline for Completion. Deadline for Completion. Construction of the new house must be completed within one year of EDA Construction of the new house must be completed within one
year of EDA
datedate of closingof closing (see above)(see above)
D.D.Specifications.Specifications.
1.1.Grading & DrainageGrading & Drainage
a)a)The lot is generally ____________________________________________________The lot is generally ____________________________________________________
b)b)Drainage from the house, garage, driveway and any other structures shall be Drainage from the house, garage, driveway and any other structures shall be
accommodated on the site so that water flow onto adjacent properties is accommodated on the site so that water flow onto adjacent properties is
determined by the Building Ofdetermined by the Building Official to be necessary, ficial to be necessary, bbuilder will install rain gutters uilder will install rain gutters
to direct roof runoff to minimize impacts on adjacent properties. Builders will to direct roof runoff to minimize impacts on adjacent properties. Builders will
restore any disturbed turf or landscaping.restore any disturbed turf or landscaping.
c)c)Builder will follow Best Management Practices to minimize erosion and runofBuilder will follow Best Management Practices to minimize erosion and runoff onto f onto
adjacent properties and public ways. At a minimum, adjacent properties and public ways. At a minimum, bbuilder will install silt fencing uilder will install silt fencing
or wattle lots to prevent runoff silt from flowing ono the street or adjacent or wattle lots to prevent runoff silt from flowing ono the street or adjacent
properties.properties.
2.2.UtilitiesUtilities
a)a)Utility meters shall be reasonably screened from street view; lUtility meters shall be reasonably screened from street view; locations must be ocations must be
specified on the plans submitted with the building permit application.specified on the plans submitted with the building permit application.
b)b)All utility service lines shall be underground. Utilities may locate necessary facilities All utility service lines shall be underground. Utilities may locate necessary facilities
such as pedestals or boxes in the street rightsuch as pedestals or boxes in the street right--ofof--way or utility & drainage way or utility & drainage
eaeasements.sements.
c)c)Any expenses for connection of the house to utilities shall be the responsibility of Any expenses for connection of the house to utilities shall be the responsibility of
bbuilder, including any necessary landscaping or sidewalk, curb or pavement work, uilder, including any necessary landscaping or sidewalk, curb or pavement work,
but excepting reasonable costs associated with sewer stub replacement discussed but excepting reasonable costs associated with sewer stub replacement discussed
iin e) belown e) below
d)d)Municipal Water. Municipal water is available at the lot line along _______Municipal Water. Municipal water is available at the lot line along _____________________
There are no WAC charges.There are no WAC charges.
e)e)Municipal Sanitary Sewer. There are ______ There are notMunicipal Sanitary Sewer. There are ______ There are not______________ SAC charges SAC charges
477833v2 CBR CL205477833v2 CBR CL205--5555
7272
levied by Metropolitan Council Environmental Services.levied by Metropolitan Council Environmental Services.
f)f)Private Utilities, including natural gas( ), electricity ( ), telephone ( ), and cable Private Utilities, including natural gas( ), electricity ( ), telephone ( ), and cable
television ( ). The house shall access private utilities via underground connections television ( ). The house shall access private utilities via underground connections
only. **Describe where utilities are located ***only. **Describe where utilities are located ***
g)g)Questions regarding city utilitQuestions regarding city utilities should be directed to Columbia Heights Public ies should be directed to Columbia Heights Public
Works Department atWorks Department at 763763--706706--3700. 3700. Questions regarding private utilities should be Questions regarding private utilities should be
directed to the respective utility company.directed to the respective utility company.
3.3.Driveways and Curb CutsDriveways and Curb Cuts
a)a)A hard surfaced driveway is required to provide access A hard surfaced driveway is required to provide access from the streetfrom the street or alleyor alley to to
b)b)The driveway approach (the area between the street and the front lot line) must tie The driveway approach (the area between the street and the front lot line) must tie
into and match the existing curb cut.into and match the existing curb cut.
c)c)AlternativelyAlternatively,, bbuilder may install a wider curb cut, up to a maximum of 22 feet, uilder may install a wider curb cut, up to a maximum of 22 feet, at its at its
own expense (own expense (aa separate permit and escrow are required)separate permit and escrow are required). . Unused curb cut and Unused curb cut and
driveway apron shall be removed and replaced with full height curb and gutter and driveway apron shall be removed and replaced with full height curb and gutter and
turfturf..
d)d)In no circumstances shall the curb cut or driveway approach from the curb cut to In no circumstances shall the curb cut or driveway approach from the curb cut to
ththe lot line exceed 22 feet in width.e lot line exceed 22 feet in width.
e)e)Once onto the subject property, the driveway may exceed 22 feet in width provided Once onto the subject property, the driveway may exceed 22 feet in width provided
it also does not exceed the width of the overhead garage doors plus six feet.it also does not exceed the width of the overhead garage doors plus six feet.
f)f)plan showing the plan showing the
proposed driveway layout.proposed driveway layout.
4.4.General Construction Practices.General Construction Practices.
The construction site, neighboring property and adjacent public streets shall be kept free of The construction site, neighboring property and adjacent public streets shall be kept free
of
construction debris at all times, and construction debris at all times, and bbuilder must have a construction dumpster to pruilder must have a construction dumpster to prevent event
debris from bedebris from being scattered or blown around. ing scattered or blown around.
5.5.Building Standards.Building Standards.
a)a)Compliance with Columbia Heights City Code.Compliance with Columbia Heights City Code.
b)b)
20% of lot depth for the rear lot line and 20% of lot depth for the rear lot line and __________ the side lot lines. the side lot lines.
c)c)The houses shall have at least three bedrooms and two bathrooms.The houses shall have at least three bedrooms and two bathrooms.
d)d)The house shall have a full depth basement, unless the selected design results in a The house shall have a full depth basement, unless the selected design results in a
split level/garden level type of basement. At a minimum, basements shall have at split level/garden level type of basement. At a minimum, basements shall have at
least one egress window and a rough in for a future ¾ bath. Additional basement least one egress window and a rough in for a future ¾ bath. Additional basement
windows are desirable. Slab houses and crawlspace houses will not be considered windows are desirable. Slab houses and crawlspace houses will not be considered
by the EDA.by the EDA.
e)e)Exterior materials (siding, soffit, doors and windows) shall be low maintenance. TheExterior materials (siding, soffit, doors and windows) shall be low maintenance. The
use of brick or stucco is encouraged. Fiber cement siding or wood siding with use of brick or stucco is encouraged. Fiber cement siding or wood siding with
natural resistance to decay are encouraged but they must be property stained or natural resistance to decay are encouraged but they must be property stained or
panted. Vinyl or other low maintenance siding materials are generally acceptable panted. Vinyl or other low maintenance siding materials are generally acceptable
and can be made and can be made more desirable through the use of shakesmore desirable through the use of shakes and other ornamental and other ornamental
design features. design features.
f)f)The house shall have a detached or an attached garage for at least two cars, The house shall have a detached or an attached garage for at least two cars,
accessed via a hard surfaced driveway from the street or alley.accessed via a hard surfaced driveway from the street or alley.
g)g)The design should emphasize the frThe design should emphasize the front door as the focal point for the front of the ont door as the focal point for the front of the
house. A large and usable (minimum depth 6 feet) front porch is desired. Garage house. A large and usable (minimum depth 6 feet) front porch is desired. Garage
door dominance in design should be minimized as much as possibledoor dominance in design should be minimized as much as possible..
h)h)Plans should present a balanced and pleasing distribution of Plans should present a balanced and pleasing distribution of wall and window areas wall and window areas
from all views. Each from all views. Each exterior wall mustexterior wall must have have at least one windowat least one window. .
i)i)The new house shall be built with a passive venting system for radon gas reduction. The new house shall be built with a passive venting system for radon gas reduction.
477833v2 CBR CL205477833v2 CBR CL205--5555
7373
j)j)The new house shall have Carbon Monoxide alarms in accordance with M.S. The new house shall have Carbon Monoxide alarms in accordance with M.S.
299F.50299F.50
k)k)NoNo equipment such as airequipment such as air--conditioning cooling structures or condensers that conditioning cooling structures or condensers that
generate noise shall be located within a side setback, drainage & utility easement, generate noise shall be located within a side setback, drainage & utility easement,
or 10 feet of living quarters located in a building on adjacent property.or 10 feet of living quarters located in a building on adjacent property.
6.6.Landscaping. Landscaping. The lot shThe lot shall be landscaped to be aesthetically pleasing in all seasons. Land all be landscaped to be aesthetically pleasing in all seasons. Land
forms and plant materials shall be used to define the site and blend neatly with adjoining forms and plant materials shall be used to define the site and blend neatly with adjoining
property.property.
At a minimum the following are required:At a minimum the following are required:
PlanPlantt oneone large species large species canopy canopy shade treeshade tree in the front yard, and one large in the front yard, and one large
species canopy shade tree in the back yard (if none exist).species canopy shade tree in the back yard (if none exist).
Grass or other vegetative cover must be provided to all nonGrass or other vegetative cover must be provided to all non--paved outdoor paved outdoor
surfaces. surfaces.
Species, size and specific locations of all new trees should be indicated Species, size and specific locations of all new trees should be indicated on planting plan. Builder on planting
plan. Builder
must submit a planting plan to the City for review and approval prior to planting.must submit a planting plan to the City for review and approval prior to planting.
If If bbuilder desires to close on the sale of the new house prior to completion and acceptance of the uilder desires to close on the sale of the new house prior to completion and acceptance
of the
landscaping, the EDA may require that funds be landscaping, the EDA may require that funds be escrowed by the escrowed by the bbuilder to guarantee that uilder to guarantee that
landscaping is completed in a timely manner after closing.landscaping is completed in a timely manner after closing.
477833v2 CBR CL205477833v2 CBR CL205--5555
7474
AGENDA SECTIONAGENDA SECTION BUSINESS ITEMSBUSINESS ITEMS
ITEM NO.ITEM NO. 88
MEETING DATEMEETING DATE NOVEMBERNOVEMBER 66, 201, 20177
CITY CITY OF COLUMBIA HEIGHTS OF COLUMBIA HEIGHTS ECONOMIC ECONOMIC DEVELOPMENT AUTHORITDEVELOPMENT AUTHORITYY
ITEM:ITEM:Single Family Home Lot Sales Program Single Family Home Lot Sales Program 4641 Polk Street NE House Plan Review4641 Polk Street NE House Plan Review
DEPARTMENT:DEPARTMENT: Community DevelopmentCommunity Development
BYBY/D/DATEATE:: Keith M. DahlKeith M. Dahl, , October 3October 311, 201, 20177 BYBY/D/DATEATE::
BACKGROUND:BACKGROUND:
concept application submitted by Home Detail, Inc. for the construction of a single family home on the concept application submitted by Home Detail, Inc. for the construction of a single
family home on the
property located at property located at 4641 4641 Polk StreetPolk Street
work with Home Detail to determine specific house plans and to prepare a Purchased and Redevelopment work with Home Detail to determine specific house plans and to prepare a Purchased
and Redevelopment
Agreement for consideration at the next EDA meeting on November 6, 2017.Agreement for consideration at the next EDA meeting on November 6, 2017.
Unfortunately, staff continues to work with Home Detail to develop specific house plans that conform to all Unfortunately, staff continues to work with Home Detail to develop specific
house plans that conform to all
section pertaining to building section pertaining to building standards. Therefore, at the request of Home Detail, staff agreed to present the standards. Therefore, at the request of
Home Detail, staff agreed to present the
draft house plans to the EDA for review tonight, and delay the final sale consideration until which time specific draft house plans to the EDA for review tonight, and delay the final
sale consideration until which time specific
house plans are finalized. Attached for review by commission house plans are finalized. Attached for review by commission members of the EDA are the draft house plans members of the
EDA are the draft house plans
for the Subject Property, as well as the proposal guidelines of the Program itself.for the Subject Property, as well as the proposal guidelines of the Program itself.
STAFF STAFF RECOMMENDATION:RECOMMENDATION:
Based on the draft house plans submitted by Home DeBased on the draft house plans submitted by Home Detailtail;; and and pursuant to Subsection (g) and (h), Sectiopursuant to Subsection
(g) and (h), Section 5: n 5:
BBuilding uilding SStandardtandards of the Proposal Guidelines, s of the Proposal Guidelines, staff recommends that staff recommends that a front porch should extended the full a front
porch should extended the full
width of the singlewidth of the single--family home.family home.
RECOMMENDED MOTION(S):RECOMMENDED MOTION(S):
Motion:Motion: Move to authorize staff to continue working with Home Detail to determine specMove to authorize staff to continue working with Home Detail to determine specific house
plans and ific house plans and
to prepare a Purchase and Redevelopment Agreement for consideration at the next available EDA meeting on to prepare a Purchase and Redevelopment Agreement for consideration at the next
available EDA meeting on
November 27, 2017. November 27, 2017.
ATTACHMENTS:ATTACHMENTS:
1.1.Draft House Plans (7 Pages)Draft House Plans (7 Pages)
2.2.Proposal Proposal Form and Guidelines ofForm and Guidelines of the Single Family Home Lot Sales Program (the Single Family Home Lot Sales Program (44 Pages)Pages)
7575
City of Columbia Heights City of Columbia Heights EDA LetterEDA Letter
7676
7777
7878
7979
8080
8181
8282
PROPOSAL FORMPROPOSAL FORM
((t▄śĂℓś ŕśĊĂľ╙ Ă■ŕ t▄śĂℓś ŕśĊĂľ╙ Ă■ŕ ľ◘▓♫▄śĊśľ◘▓♫▄śĊś Ċ╙╜ℓ ℓśľĊ╜◘■ Ă■ŕ ℓĵĽ▓╜Ċ ╜Ċ Ċ◘ Ċ╙ś /◘▓▓ĵ■╜ĊŦ 5śōś▄◘♫▓ś■Ċ 5ś♫ĂʼnĊ▓ś■ĊĊ╙╜ℓ ℓśľĊ╜◘■ Ă■ŕ ℓĵĽ▓╜Ċ ╜Ċ Ċ◘ Ċ╙ś /◘▓▓ĵ■╜ĊŦ 5śōś▄◘♫▓ś■Ċ 5ś♫ĂʼnĊ▓ś■Ċ))
PROPERTY PROPERTY ADDRESS:______________________________________________________ADDRESS:______________________________________________________
CHECK ONE: CHECK ONE:
___ BUILDER OFFERS $___ BUILDER OFFERS $________________ TO PURCHASE THIS LOTTO PURCHASE THIS LOT
___ BUILDER OFFERS $___ BUILDER OFFERS $1,000 1,000 FOR A SIXFOR A SIX--MONTH OPTION TO PURCHASE THIS LOT FOR $MONTH OPTION TO PURCHASE THIS LOT
FOR $________________
This proposal is not a purchase agreement or other binding contract. At this time, the This proposal is not a purchase agreement or other binding contract. At this time, the bbuilder
is submitting a uilder is submitting a
proposal to purchase this lot and build a new single family house in accordance with the RFP Guidelines, or is proposal to purchase this lot and build a new single family house in accordance
with the RFP Guidelines, or is
requesting a sixrequesting a six-- month month option for the same.option for the same.
BBoard, then EDA staff oard, then EDA staff willwill work with the work with the bbuilder to uilder to
determine the specific house plandetermine the specific house plan and and draft draft an Option Agreement or Purchase and Redevelopment Agreement to an Option Agreement or Purchase
and Redevelopment Agreement to
be be signed by the signed by the bbuilder and uilder and presented to the EDA Board at its nextpresented to the EDA Board at its next meetingmeeting with the required earnest money
or with the required earnest money or
option fee.option fee. If the EDA If the EDA BBoard gives final approval at that time, a binding contract existoard gives final approval at that time, a binding contract existss between
the EDA and between the EDA and
bbuilder.uilder.
Builders may purchase a 6Builders may purchase a 6--momonth option on a lot for $nth option on a lot for $1,01,00000,, renewable for an additional 6 months for an renewable for an additional
6 months for an
additional $500. The option provides the additional $500. The option provides the bbuilder with exclusive right to purchase the lot and build a house subject uilder with exclusive right
to purchase the lot and build a house subject
to the normal EDA process, requirements and guidelines. As a conto the normal EDA process, requirements and guidelines. As a condition of the option, the dition of the option, the bbuilder
must list the lot uilder must list the lot
with a towith a to--bebe--built house on the MLS for the duration of the option. The number of options is limited. No built house on the MLS for the duration of the option. The number
of options is limited. No bbuilder uilder
may havemay have anan option on more than option on more than 2525% of the % of the s lotss lots..
BUILDER: BUILDER: Ủ.ĵ╜▄ŕśʼn ╜ℓ ʼnśijĵ╜ʼnśŕ ĊỦ.ĵ╜▄ŕśʼn ╜ℓ ʼnśijĵ╜ʼnśŕ Ċ◘ Ľś Ă wśℓ╜ŕś■Ċ╜Ă▄ .ĵ╜▄ŕ╜■┼ /◘■ĊʼnĂľĊ◘ʼn ▄╜ľś■ℓśŕ ĽŦ Ċ╙ś {ĊĂĊś ◘ź a╜■■śℓ◘ĊĂỀủ◘ Ľś Ă wśℓ╜ŕś■Ċ╜Ă▄ .ĵ╜▄ŕ╜■┼ /◘■ĊʼnĂľĊ◘ʼn ▄╜ľś■ℓśŕ
ĽŦ Ċ╙ś {ĊĂĊś ◘ź a╜■■śℓ◘ĊĂỀủ
Name: _______________________________________ State License Number: _____________Name: _______________________________________ State License Number: _____________
Phone: ___________________________ Address: _____________________________________Phone: ___________________________ Address: _____________________________________
City/State/Zip: __________________________________________________________________City/State/Zip: __________________________________________________________________
Email: ___________________________________ Website: _____________________________Email: ___________________________________ Website: _____________________________
REQUIRED ATTACHMENTS AND ADDITIONAL INFORMATION:REQUIRED ATTACHMENTS AND ADDITIONAL INFORMATION:
Attach one representative examplAttach one representative example of a house you would plan to build on this lot if your e of a house you would plan to build
on this lot if your
proposal is selected. Itproposal is selected. It does not need to show exactly how it would be placed on the lot, it just needs to does not need to show exactly how it would be placed
on the lot, it just needs to
show the approximate size, quality and features you would anticipate a new house would have on this lot. show the approximate size, quality and features you would anticipate a new house
would have on this lot.
A specific house plan would be determined after a proposal is tentatA specific house plan would be determined after a proposal is tentatively accepted by the EDA. ively accepted by the
EDA.
The EDA will only sell lots to The EDA will only sell lots to licensed licensed bbuilders who have experience in house construction in Minnesota. uilders who have experience in house
construction in Minnesota.
Please list the addresses of three houses you have built in Minnesota within the last five years, or attach Please list the addresses of three houses you have built in Minnesota within
the last five years, or attach
other evidenceother evidence of qualification for review by the EDA.of qualification for review by the EDA.
House #1: _______________________________________________________________House #1: _______________________________________________________________
House #2: _______________________________________________________________House #2: _______________________________________________________________
House #3:_________________________________________________________House #3:_______________________________________________________________________
477833v2 CBR CL205477833v2 CBR CL205--5555
8383
PROPOSAL GUIDELINESPROPOSAL GUIDELINES
Please provide the following information regarding the lot(s) intended for purchase:Please provide the following information regarding the lot(s) intended for purchase:
A.A.Legal Description: Legal Description: The property is legally described as The property is legally described as
____________________________________________________________________________________________________________________________________________________________________________
____________________________________________________________________________________________________________________________________________________________________________
____________________________________________________________________________________________________________________________________________________________________________
B.B.Anticipated Timeline for Lot Sales.Anticipated Timeline for Lot Sales.
After a After a bbuilder submits a qualifying proposal, the timeline is as follows:uilder submits a qualifying proposal, the timeline is as follows:
EDA meeting #1: EDA rejects or tentatively accepts EDA meeting #1: EDA rejects or tentatively accepts bbbbuilder uilder
prepares detailed house plans for EDA public prepares detailed house plans for EDA public hearinghearing and works with staff to prepare and works with staff to prepare
proposed Option Agreement or Purchase and Redevelopment Agreementproposed Option Agreement or Purchase and Redevelopment Agreement..
2121 days after EDA meeting #days after EDA meeting #11: Deadline for : Deadline for bbuilder to sign the Purchase & Redevelopment uilder to sign the Purchase & Redevelopment
Agreement and pay $2,000 earnest moneyAgreement and pay $2,000 earnest money or sign the Option Agror sign the Option Agreement and pay Option eement and pay Option
feefee..
EDA meeting #2 (approximately one month after #1): EDA holds public hearing and considers EDA meeting #2 (approximately one month after #1): EDA holds public hearing and considers
a resolution authorizing the lot salea resolution authorizing the lot sale or Option Agreement.or Option Agreement. FFees are refunded at this time if ees are refunded at this time
if
EDA does not approve the OptiEDA does not approve the Option Agreement or Pon Agreement or Purchase and Redevelopment Agreement.urchase and Redevelopment Agreement.
If approved, fees are nonIf approved, fees are non--refundable.refundable.
60 days after EDA meeting #2 60 days after EDA meeting #2 ddeadline for beadline for builder to close on the lot purchase.uilder to close on the lot purchase.
C.C.Deadline for Completion. Deadline for Completion. Construction of the new house must be completed within one year of EDA Construction of the new house must be completed within one
year of EDA
datedate of closingof closing (see above)(see above)
D.D.Specifications.Specifications.
1.1.Grading & DrainageGrading & Drainage
a)a)The lot is generally ____________________________________________________The lot is generally ____________________________________________________
b)b)Drainage from the house, garage, driveway and any other structures shall be Drainage from the house, garage, driveway and any other structures shall be
accommodated on the site so that water flow onto adjacent properties is accommodated on the site so that water flow onto adjacent properties is
determined by the Building Ofdetermined by the Building Official to be necessary, ficial to be necessary, bbuilder will install rain gutters uilder will install rain gutters
to direct roof runoff to minimize impacts on adjacent properties. Builders will to direct roof runoff to minimize impacts on adjacent properties. Builders will
restore any disturbed turf or landscaping.restore any disturbed turf or landscaping.
c)c)Builder will follow Best Management Practices to minimize erosion and runofBuilder will follow Best Management Practices to minimize erosion and runoff onto f onto
adjacent properties and public ways. At a minimum, adjacent properties and public ways. At a minimum, bbuilder will install silt fencing uilder will install silt fencing
or wattle lots to prevent runoff silt from flowing ono the street or adjacent or wattle lots to prevent runoff silt from flowing ono the street or adjacent
properties.properties.
2.2.UtilitiesUtilities
a)a)Utility meters shall be reasonably screened from street view; lUtility meters shall be reasonably screened from street view; locations must be ocations must be
specified on the plans submitted with the building permit application.specified on the plans submitted with the building permit application.
b)b)All utility service lines shall be underground. Utilities may locate necessary facilities All utility service lines shall be underground. Utilities may locate necessary facilities
such as pedestals or boxes in the street rightsuch as pedestals or boxes in the street right--ofof--way or utility & drainage way or utility & drainage
eaeasements.sements.
c)c)Any expenses for connection of the house to utilities shall be the responsibility of Any expenses for connection of the house to utilities shall be the responsibility of
bbuilder, including any necessary landscaping or sidewalk, curb or pavement work, uilder, including any necessary landscaping or sidewalk, curb or pavement work,
but excepting reasonable costs associated with sewer stub replacement discussed but excepting reasonable costs associated with sewer stub replacement discussed
iin e) belown e) below
d)d)Municipal Water. Municipal water is available at the lot line along _______Municipal Water. Municipal water is available at the lot line along _____________________
There are no WAC charges.There are no WAC charges.
e)e)Municipal Sanitary Sewer. There are ______ There are notMunicipal Sanitary Sewer. There are ______ There are not______________ SAC charges SAC charges
477833v2 CBR CL205477833v2 CBR CL205--5555
8484
levied by Metropolitan Council Environmental Services.levied by Metropolitan Council Environmental Services.
f)f)Private Utilities, including natural gas( ), electricity ( ), telephone ( ), and cable Private Utilities, including natural gas( ), electricity ( ), telephone ( ), and cable
television ( ). The house shall access private utilities via underground connections television ( ). The house shall access private utilities via underground connections
only. **Describe where utilities are located ***only. **Describe where utilities are located ***
g)g)Questions regarding city utilitQuestions regarding city utilities should be directed to Columbia Heights Public ies should be directed to Columbia Heights Public
Works Department atWorks Department at 763763--706706--3700. 3700. Questions regarding private utilities should be Questions regarding private utilities should be
directed to the respective utility company.directed to the respective utility company.
3.3.Driveways and Curb CutsDriveways and Curb Cuts
a)a)A hard surfaced driveway is required to provide access A hard surfaced driveway is required to provide access from the streetfrom the street or alleyor alley to to
b)b)The driveway approach (the area between the street and the front lot line) must tie The driveway approach (the area between the street and the front lot line) must tie
into and match the existing curb cut.into and match the existing curb cut.
c)c)AlternativelyAlternatively,, bbuilder may install a wider curb cut, up to a maximum of 22 feet, uilder may install a wider curb cut, up to a maximum of 22 feet, at its at its
own expense (own expense (aa separate permit and escrow are required)separate permit and escrow are required). . Unused curb cut and Unused curb cut and
driveway apron shall be removed and replaced with full height curb and gutter and driveway apron shall be removed and replaced with full height curb and gutter and
turfturf..
d)d)In no circumstances shall the curb cut or driveway approach from the curb cut to In no circumstances shall the curb cut or driveway approach from the curb cut to
ththe lot line exceed 22 feet in width.e lot line exceed 22 feet in width.
e)e)Once onto the subject property, the driveway may exceed 22 feet in width provided Once onto the subject property, the driveway may exceed 22 feet in width provided
it also does not exceed the width of the overhead garage doors plus six feet.it also does not exceed the width of the overhead garage doors plus six feet.
f)f)plan showing the plan showing the
proposed driveway layout.proposed driveway layout.
4.4.General Construction Practices.General Construction Practices.
The construction site, neighboring property and adjacent public streets shall be kept free of The construction site, neighboring property and adjacent public streets shall be kept free
of
construction debris at all times, and construction debris at all times, and bbuilder must have a construction dumpster to pruilder must have a construction dumpster to prevent event
debris from bedebris from being scattered or blown around. ing scattered or blown around.
5.5.Building Standards.Building Standards.
a)a)Compliance with Columbia Heights City Code.Compliance with Columbia Heights City Code.
b)b)
20% of lot depth for the rear lot line and 20% of lot depth for the rear lot line and __________ the side lot lines. the side lot lines.
c)c)The houses shall have at least three bedrooms and two bathrooms.The houses shall have at least three bedrooms and two bathrooms.
d)d)The house shall have a full depth basement, unless the selected design results in a The house shall have a full depth basement, unless the selected design results in a
split level/garden level type of basement. At a minimum, basements shall have at split level/garden level type of basement. At a minimum, basements shall have at
least one egress window and a rough in for a future ¾ bath. Additional basement least one egress window and a rough in for a future ¾ bath. Additional basement
windows are desirable. Slab houses and crawlspace houses will not be considered windows are desirable. Slab houses and crawlspace houses will not be considered
by the EDA.by the EDA.
e)e)Exterior materials (siding, soffit, doors and windows) shall be low maintenance. TheExterior materials (siding, soffit, doors and windows) shall be low maintenance. The
use of brick or stucco is encouraged. Fiber cement siding or wood siding with use of brick or stucco is encouraged. Fiber cement siding or wood siding with
natural resistance to decay are encouraged but they must be property stained or natural resistance to decay are encouraged but they must be property stained or
panted. Vinyl or other low maintenance siding materials are generally acceptable panted. Vinyl or other low maintenance siding materials are generally acceptable
and can be made and can be made more desirable through the use of shakesmore desirable through the use of shakes and other ornamental and other ornamental
design features. design features.
f)f)The house shall have a detached or an attached garage for at least two cars, The house shall have a detached or an attached garage for at least two cars,
accessed via a hard surfaced driveway from the street or alley.accessed via a hard surfaced driveway from the street or alley.
g)g)The design should emphasize the frThe design should emphasize the front door as the focal point for the front of the ont door as the focal point for the front of the
house. A large and usable (minimum depth 6 feet) front porch is desired. Garage house. A large and usable (minimum depth 6 feet) front porch is desired. Garage
door dominance in design should be minimized as much as possibledoor dominance in design should be minimized as much as possible..
h)h)Plans should present a balanced and pleasing distribution of Plans should present a balanced and pleasing distribution of wall and window areas wall and window areas
from all views. Each from all views. Each exterior wall mustexterior wall must have have at least one windowat least one window. .
i)i)The new house shall be built with a passive venting system for radon gas reduction. The new house shall be built with a passive venting system for radon gas reduction.
477833v2 CBR CL205477833v2 CBR CL205--5555
8585
j)j)The new house shall have Carbon Monoxide alarms in accordance with M.S. The new house shall have Carbon Monoxide alarms in accordance with M.S.
299F.50299F.50
k)k)NoNo equipment such as airequipment such as air--conditioning cooling structures or condensers that conditioning cooling structures or condensers that
generate noise shall be located within a side setback, drainage & utility easement, generate noise shall be located within a side setback, drainage & utility easement,
or 10 feet of living quarters located in a building on adjacent property.or 10 feet of living quarters located in a building on adjacent property.
6.6.Landscaping. Landscaping. The lot shThe lot shall be landscaped to be aesthetically pleasing in all seasons. Land all be landscaped to be aesthetically pleasing in all seasons. Land
forms and plant materials shall be used to define the site and blend neatly with adjoining forms and plant materials shall be used to define the site and blend neatly with adjoining
property.property.
At a minimum the following are required:At a minimum the following are required:
PlanPlantt oneone large species large species canopy canopy shade treeshade tree in the front yard, and one large in the front yard, and one large
species canopy shade tree in the back yard (if none exist).species canopy shade tree in the back yard (if none exist).
Grass or other vegetative cover must be provided to all nonGrass or other vegetative cover must be provided to all non--paved outdoor paved outdoor
surfaces. surfaces.
Species, size and specific locations of all new trees should be indicated Species, size and specific locations of all new trees should be indicated on planting plan. Builder on planting
plan. Builder
must submit a planting plan to the City for review and approval prior to planting.must submit a planting plan to the City for review and approval prior to planting.
If If bbuilder desires to close on the sale of the new house prior to completion and acceptance of the uilder desires to close on the sale of the new house prior to completion and acceptance
of the
landscaping, the EDA may require that funds be landscaping, the EDA may require that funds be escrowed by the escrowed by the bbuilder to guarantee that uilder to guarantee that
landscaping is completed in a timely manner after closing.landscaping is completed in a timely manner after closing.
477833v2 CBR CL205477833v2 CBR CL205--5555
8686
AGENDA SECTIONAGENDA SECTION BUSINESS ITEMSBUSINESS ITEMS
ITEM NO.ITEM NO. 99
MEETING DATEMEETING DATE NOVEMBER 6NOVEMBER 6, 201, 20177
CITY CITY OF COLUMBIA HEIGHTS OF COLUMBIA HEIGHTS ECONOMIC ECONOMIC DEVELOPMENT AUTHORITDEVELOPMENT AUTHORITYY
ITEM:ITEM:Consideration of 3841 Central Avenue NE RelocationConsideration of 3841 Central Avenue NE Relocation
DEPARTMENT:DEPARTMENT: Community DevelopmentCommunity Development
BYBY/D/DATEATE:: Keith M. DahlKeith M. Dahl, , NovemberNovember 11, 201, 20177 BYBY/D/DATEATE::
BACKGROUND:BACKGROUND:
On September 5, 2017, On September 5, 2017, the Columbia Height Economic Dethe Columbia Height Economic De
work with work with to determine the feasibility of to determine the feasibility of
relocating the residential structure relocating the residential structure of 3841 Central Avenue NE, Columbia Heights, MN of 3841 Central Avenue NE, Columbia Heights, MN 55421 55421
Residential Residential
StructureStructure to the vacant lot owned by GMHC located at 3805 to the vacant lot owned by GMHC located at 3805 2nd 2nd Street NE, Columbia Heights, MN 55421 Street NE, Columbia
Heights, MN 55421
..
As previously indicated by the City As previously indicated by the City Building OfficialBuilding Official,, when a structure is relocatedwhen a structure is relocated on to a different
propertyon to a different property, ,
--conformity be conformity be
corrected to comply with the corrected to comply with the standards of the Building Codestandards of the Building Code, specifically Fuel Gas Code, Mecha, specifically Fuel Gas Code,
Mechanical Code, nical Code,
Plumbing Code, Energy Conservation Code, Residential Code, and Electrical CodePlumbing Code, Energy Conservation Code, Residential Code, and Electrical Code. . Therefore, on September
Therefore, on September
20, 2017, staff and representatives from GMHC 20, 2017, staff and representatives from GMHC inspected the Subject Property to deinspected the Subject Property to determine the termine
the nonnon--
conformities conformities present in present in thethe RResidential esidential SSttructureructure. .
After the initial walkthrough, After the initial walkthrough, the City Building Officialthe City Building Official prepared a detailed report explaining the applicable prepared a detailed
report explaining the applicable
provisions of the Building Code that would be enforced if the Residential Structure is relocated to the Subject provisions of the Building Code that would be enforced if the Residential
Structure is relocated to the Subject
PropertyProperty,, and provided said report to the GMHCand provided said report to the GMHC for them to prepare a Pro Formafor them to prepare a Pro Forma.. The following table breaks
The following table breaks
downdown the the Pro Forma in order for the GMHC to relocate Pro Forma in order for the GMHC to relocate the Residential Structure the Residential Structure ononto the Subject Property.to
the Subject Property.
PROJECT EXPENSES PROJECT EXPENSES COSTCOST
I.I.Property Acquisition Property Acquisition $$ 11.00.00
II.II.House RelocationHouse Relocation $$ 30,00030,000.00.00
III.III.Auxiliary Costs of Utility WorkAuxiliary Costs of Utility Work $$ 40,00040,000.00.00
IV.IV.Demolition/RemovalDemolition/Removal $$ 1166,,000000.00.00
V.V.House Rehab/Renovation House Rehab/Renovation $$ 5555,,000000.00.00
VI.VI.Tree RemovalTree Removal $$ 33,,550000.00.00
VII.VII.New FoundationNew Foundation $$ 5050,,00000.000.00
VIII.VIII.Double Double Stall Garage/DrivewayStall Garage/Driveway $$ 2525,000.00,000.00
IX.IX.Landscaping/FlatworkLandscaping/Flatwork $$ 44,,5500.0000.00
X.X.Sewer & WaterSewer & Water $$ 8,500.008,500.00
XI.XI.Soft Costs (Plans, Testing, Survey, etc.)Soft Costs (Plans, Testing, Survey, etc.) $$ 4,500.004,500.00
XII.XII.Closing Costs (Realtor Fee, Appraisal, Tax, etc.)Closing Costs (Realtor Fee, Appraisal, Tax, etc.) $$ 47,45347,453.00.00
XIII.XIII.Holding Costs (Utilities, Insurance, Interest, etc.)Holding Costs (Utilities, Insurance, Interest, etc.) $$ 15,991.0015,991.00
XIV.XIV.ContingencyContingency $$ 7,000.007,000.00
TOTALTOTAL EXPENSES EXPENSES FUNDS:FUNDS: $$307307,,444545.00.00
PROJECTED RESALE PRICEPROJECTED RESALE PRICE:: $$250,000.00250,000.00
GROSS PROFIT (LOSS):GROSS PROFIT (LOSS): $$(57,44(57,4455.00).00)
8787
City of Columbia Heights City of Columbia Heights EDA LetterEDA Letter
City of Columbia Heights City of Columbia Heights -- Council LetterCouncil Letter Page Page 22
Based on the table above, Based on the table above, the GMHC projects a loss of profit in the amount of $57,445.00, and have therefore the GMHC projects a loss of profit in the amount
of $57,445.00, and have therefore
requested that requested that on top of the EDA selling the on top of the EDA selling the Residential Structure to them for one dollar ($1.00), they would Residential Structure to them
for one dollar ($1.00), they would
like the EDA tolike the EDA to also also consider providing gap funding in the amount of $60,000.00.consider providing gap funding in the amount of $60,000.00.
STAFF STAFF RECOMMENDATION:RECOMMENDATION:
Staff recommends offering the residential structure located at 3841 Central Avenue NEStaff recommends offering the residential structure located at 3841 Central Avenue NE to the Greater
to the Greater
Metropolitan Housing Corporation for one dollar ($1.00); however, staff does not recommend offering gap Metropolitan Housing Corporation for one dollar ($1.00); however, staff does not
recommend offering gap
funding to the Greater Metropolitan Housing Corporation.funding to the Greater Metropolitan Housing Corporation.
RECOMMENDED MOTION(S):RECOMMENDED MOTION(S):
Motion:Motion: Move to Move to offer the residential structure located at 3841 Central Avenue NE to the Greater Metropolitan offer the residential structure located at 3841 Central
Avenue NE to the Greater Metropolitan
Housing Corporation for one dollar ($1.00), and if accepted, authorize staff to Housing Corporation for one dollar ($1.00), and if accepted, authorize staff to prepare a prepare a Bill
of Sale, Wavier of Bill of Sale, Wavier of
Trespass, and Trespass, and Wavier of Liability for consideratWavier of Liability for consideration at the next EDA meeting on December 4, 2017.ion at the next EDA meeting on December
4, 2017.
8888