HomeMy WebLinkAbout20180402_EDA_PacketECONOMIC DEVELOPMENT AUTHORITY AGENDA
April 2, 2018
6:30 pm
1. Call to Order
2. Roll Call
3. Pledge of Allegiance
City Hall
Conference Room 1
59040 th Avenue NE
Columbia Heights, MN 55421
CONSENT AGENDA
4. Approve minutes of February 5, 2018 and March 26, 2018
5. Approve Financial Report and Payment of Bills for January and February 2018 -
Resolution 2018 -04
Motion: Move to approve Consent Agenda as presented.
BUSINESS ITEMS
6. Facade Improvement Grant Program Discussion
Motion: No motions required at this time.
7. Adjourn
OTHER BUSINESS
The next regular EDA meeting will be May 7th, 2018 at City Hall.
ECONOMIC DEVELOPMENT AUTHORITY (EDA)
MINUTES OF THE MEETING OF
FEBRUARY 5, 2018
The meeting was called to order at 6:30 pm by Executive Director, Walt Fehst.
Members Present: Murzyn, Schmitt, Buesgens, Williams, Novitsky, and Szurek
Members Absent: Herringer
Staff Present: Walt Fehst, Keith Dahl, Joseph Hogeboom , and Shelley Hanson
PLEDGE OF ALLEGIANCE- RECITED
OATH OF OFFICE - Marlaine Szurek was sworn in for her new term.
ELECTION OF OFFICERS-
Williams nominated Szurek for President. Schmitt then asked if a motion could be made to keep the
same officers as last year. There were no objections to that so the following motion was made.
Motion by Williams, seconded by Murzyn, to elect Marlaine Szurek as President of the Economic
Development Authority; to elect Donna Schmitt as Vice - President of the Economic Development
Authority; to elect Bobby Williams as Treasurer of the Economic Development Authority; and to
appoint Keith Dahl as Secretary of the Economic Development Authority; to appoint Shelley Hanson
as the Asst Secretary of the Economic Development Authority; and to appoint Joseph Kloiber as Asst
Treasurer of the Economic Development Authority. Roll Call: All ayes. MOTION PASSED.
President Szurek then took over leadership of the meeting.
CONSENT AGENDA
1. Approve minutes of December 4, 2017
2. Approve Financial Report & Payment of Bills for November and December, 2017 — Resolution
2018 -01
Questions from Members:
There were no questions from members.
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Motion by Buesgens, seconded by Murzyn, to approve the Minutes of December 4, 2017,
and the Financial Report and Payment of Bills for November and December, 2017 as
presented. All ayes. MOTION PASSED.
RESOLUTION NO. 2018-01
A Resolution of the Economic Development Authority of Columbia Heights, Minnesota, Approving the
Financial Statements for the Months of November and December 2017 and the Payment of the Bills for
the Months of November and December, 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 months of November and December 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, financials statements are held by the City's Finance Department in a method outlined by the State of Minnesota's
Records Retention Schedule,
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 _5th day of _February 2018
Offered by: Buesgens
Seconded by: Murzyn
Roll Call: All ayes
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BUSINESS ITEMS
1. Ratification of the Purchase Agreement for 4827 University Ave - Resolution 2018 -02
Dahl reminded members that on July 10, 2017, the Columbia Heights Economic Development Authority (the
"EDA ") approved Resolution 2017 -18, a resolution which effectively entered the EDA into a Broker
Representation Agreement with RE /MAX Synergy. Furthermore, the resolution authorized RE /MAX Synergy
and staff to respond to active listings within the City of Columbia Heights (the "City "), and to make fair market
value offers of up to $200,000 on properties identified as nonconforming under the current zoning code of the
City. If these offers, in the form of a Purchase Agreement, are accepted by a seller, they are subject to
ratification by the EDA prior to acquisition of the property.
Dahl said that on November 28, 2017, Brian and Sheri Ternes, property owners of 4827 University Avenue NE
(the "Subject Property ") contacted staff to determine if the EDA would be interested in purchasing it. Since the
Subject Property is nonconforming under current zoning code of the City and because it is located directly
adjacent to 4833 University Avenue NE, a property owned by the City, staff worked with RE /MAX Synergy to
place an offer on the Subject Property in the amount of $117,000. Brian and Sheri Ternes countered with an
offer of $125,000, and after much negotiation agreed upon a sale price of $121,000. Thus, in order to acquire
the Subject Property, the EDA is required to review and consider the ratification of said Purchase Agreement,
and the Planning and Zoning Commission will also be required to review the proposed acquisition to determine
if it conforms to the Comprehensive Plan of the City.
Please note: During the title commitment process, and the title examiner's review of the Subject Property, an
issue was identified with the deed of conveyance from the previous property owners to Brian and Sheri Ternes.
The previous property owners, John and Corrine Ternes filed their deed as tenants in common instead of joint
tenants.
Since Corrine Ternes passed away before John Ternes conveyed the property to Brian and Sheri Ternes, her
interest in the property still remains since the original deed was filed as tenants in common. Brian and Sheri
Ternes have agreed to pay for the quiet probate to convey the interest of Corrine Ternes to them so that there is
a clean and clear title. This however, may take three months, but to show good faith, staff recommends ratifying
the Purchase Agreement, but not closing on the Subject Property until such time that a clear and clean title is
obtain. This may require an amendment to extend the date of closing, but that will be addressed at the March
EDA meeting if applicable.
Staff recommends approval of Resolution 2018 -02 as presented.
Questions from members:
Williams asked what the plans were for the parcel if we obtain it. Dahl said it would be combined with the
parcel to the north that we already own. Both parcels are zoned for commercial use and this would create of lot
that has 120 frontage feet versus the 55 foot parcel that is currently owned by the City.
Schmitt asked whether we should be approving the purchase now since there are still title issues that must go
through Probate Court.
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Dahl said that we won't close on the property until such time that the title issues are cleared and that we can still
back out of the deal between now and closing if something arises.
Szurek asked about other family members that may come forward to put a claim on the property or that would
want the terms re- negotiated. Dahl said it is his understanding the other family members recognize Brian and
Sheri have full ownership and rights to the property, but if something changes in this regard then the City can
change its decision.
Motion by Schmitt, seconded by Buesgens, to waive the reading of Resolution 2018 -02, there being ample copies
available to the public. All ayes. MOTIONPASSED.
Motion by Schmitt, seconded by Novitsky, to adopt Resolution 2018 -02, a resolution ratifying the purchase
agreement between the Columbia Heights Economic Development Authority and Brian and Sheri Ternes. All
ayes. MOTION PASSED.
Buesgens asked if there is a way to ensure this property is kept as commercial and would be sold in the future to
a tax paying entity since we have so little commercial left in our city. It was noted that Columbia Heights only
has about 5% of its properties used as commercial or industrial. Schmitt noted the City has set precedence in
the past of allowing commercial properties to be sold to churches, which then become tax exempt. Fehst said
this can be difficult to control and that other cities have been sued when preventing sales to specific
groups /uses.
Dahl said staff is working on a Zoning Amendment that would create a specific district and criteria for religious
establishments. Hogeboom stated that the Land Use map is being re -done for the new Comprehensive Plan that
will depict the new Zoning District for Institutional use. This may grant the City more control when they have
to approve a new use for a particular property.
RESOLUTION NO. 2018-02
RESOLUTION RATIFYING PURCHASE AGREEMENT BETWEEN THE COLUMBIA HEIGHTS
ECONOMIC DEVELOPMENT AUTHORITY AND BRIAN AND SHERI TERNES.
BE IT RESOLVED BY the Board of Commissioners ( "Board ") of the Columbia Heights Economic
Development Authority (the "Authority ") as follows:
SECTION 1. RECITALS.
1.01. The Authority and Brian and Sheri Ternes (together, the "Seller ") have entered into a purchase
agreement (the "Purchase Agreement ") pursuant to which the Authority will acquire certain property in the City
of Columbia Heights (the "City ") located at 4827 University Avenue NE (the "Property ") from the Seller for
economic redevelopment purposes. The Property is described in Exhibit A attached hereto.
1.02. Pursuant to the Purchase Agreement, the Authority will purchase the Property from the Seller for
a purchase price of $121,000 plus related closing costs.
1.03. The Authority finds that acquisition of the Property will result in redevelopment of a
nonconforming property, and that such acquisition will facilitate the economic redevelopment and revitalization
of this area of the City.
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1.04. The Planning and Zoning Commission of the City will review the proposed acquisition of the
Property at its regular meeting on February 7, 2018, and the Authority expects that the Planning and Zoning
Commission will find that the proposed acquisition conforms to the City's comprehensive plan.
SECTION 2. PURCHASE AGREEMENT APPROVED.
2.01. The Authority hereby ratifies and approves the actions of Authority staff and of Re /Max Synergy
acting as the Authority's real estate broker ( "Broker ") in researching the Property and preparing and presenting
the Purchase Agreement. The Authority approves the Purchase Agreement in the form presented to the
Authority and on file at City Hall, subject to the Planning and Zoning Commission's finding that the acquisition
of the Property by the Authority conforms to the comprehensive plan of the City, and subject to modifications
that do not alter the substance of the transaction and that are approved by the President and Executive Director,
provided that execution of the Purchase Agreement by those officials shall be conclusive evidence of their
approval.
2.02. Authority staff and officials are authorized to take all actions necessary to perform the
Authority's obligations under the Purchase Agreement as a whole, including without limitation execution of any
documents to which the Authority is a party referenced in or attached to the Purchase Agreement, and any deed
or other documents necessary to acquire the Property from the Seller, all as described in the Purchase
Agreement.
ORDER OF ECONOMIC DEVELOPMENT AUTHORITY
Passed this 5th day of February, 2018
Offered by: Schmitt
Seconded by: Novitsky
Roll Call: All ayes
President
Attest:
Assistant Secretary
2. Final Sale Approval of 4641 Tyler St- Resolution 2018 -03
Dahl explained that on November 6, 2017, the Columbia Heights Economic Development Authority (the
"EDA ") approved the concept application submitted by Tollberg Homes for the construction of a single family
home on the property located at 4641 Tyler Street NE (the "Subject Property "). The Subject Property is part of
the Single Family Home Lot Sales Program (the "Program "), which was established in 2015 to stabilize and
increase property values throughout the City of Columbia Heights (the "City "), but more specifically within the
Heritage Heights 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 adjust lot prices periodically provided that sufficient evidence supports the price reduction of the lot.
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The Subject Property was assessed by Anoka County to have a 2018 estimated market land value of $38,600.
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.
Dahl reported that earlier this year, the Public Works Department confirmed that there was a water main break
at the Subject Property. This resulted in the sewer and water lines being disconnected at the main underneath
the public right -of -way in the street. In order for a single- 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. Thus,
based 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
$25,620 and $29,320. And, that Tollberg Home's offer of $27,500 is about what the EDA could except to sell
the Subject Property for.
Attached for review by EDA commission members is the Purchase and Redevelopment Agreement for the sale
of the Subject Property, specifically the house plan for the Subject Property. The specific house plan may be
found in the Purchase and Redevelopment Agreement attached hereto in Exhibit B.
Also, it should be noted that staff received the earnest money in the amount of $2,000 and a partially executed
Purchase and Redevelopment Agreement. If the EDA approves the final sale tonight, the earnest money will
become non - refundable and staff will obtain the necessary signatures at the EDA meeting to fully execute the
Purchase and Redevelopment Agreement. If the EDA denies the final sale approval, staff will reimburse the
earnest money to Tollberg Homes.
Staff recommends final sale approval of 4641 Tyler Street NE as presented. Dahl told members this is the last
lot in the scattered site program.
Questions by members:
Wade Tollefson was present to answer questions. He has paid the $2,000 earnest money and if the sale is
approved, that amount is non - refundable.
Szurek said she is not happy with the design regarding the size of the porch. Dahl said it does meet the
requirements of the program and that it is similar to other homes in the area. Schmitt commented as long as the
new owners are happy with the design and it meets the requirements, she is ok with it.
Motion by Schmitt, seconded by Buesgens, to waive the reading of Resolution 2018 -03, there being ample copies
available to the public. All ayes. MOTIONPASSED.
Motion by Schmitt, seconded by Novitsky, to adopt Resolution 2018 -03, a resolution approving the purchase and
redevelopment agreement with Tollberg Homes, LLC for the acquisition of 4641 Tyler Street NE, Columbia
Heights, MN 55421. All ayes. MOTIONPASSED.
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RESOLUTION NO. 2018-03
RESOLUTION APPROVING PURCHASE AND REDEVELOPMENT AGREEMENT WITH TOLLBERG
HOMES, LLC.
BE IT RESOLVED BY the Board of Commissioners ( "Board ") of the Columbia Heights Economic Development
Authority (the "Authority ") as follows:
SECTION 1. RECITALS.
1.01. The Authority has previously adopted a program called the Single Family Home Lot Sales Program (the
"Program "), and has adopted guidelines in connection with the Program (the "Guidelines ").
1.02. The Authority has received an offer from Tollberg Homes, LLC (the "Buyer ") to purchase certain
property included in the Program (the "Property "), described as attached hereto as Exhibit A, and the parties have
negotiated a Purchase and Redevelopment Agreement (the "Agreement ") which provides for the conveyance of the
Property to the Buyer and the construction by the Buyer of a single - family home on the Property, all pursuant to the
Guidelines.
1.03. On the date hereof, the Authority conducted a duly noticed public hearing regarding the conveyance of
the Property to the Buyer, at which all interested parties were given an opportunity to be heard.
1.04. The Board has reviewed the Agreement in the form on file at the office of the Executive Director and
finds that the execution thereof and performance of the Authority's obligations thereunder, including the conveyance of
the Property to the Buyer, are consistent with the Guidelines and in the best interest of the City and its residents.
SECTION 2. APPROVAL AND AUTHORIZATION OF AGREEMENT AND CONVEYANCE.
2.01. The Agreement as presented to the Board and the conveyance of the Property provided for therein are
hereby in all respects approved, subject to modifications that do not alter the substance of the transaction and that are
approved by the President and Executive Director, provided that execution of the Agreement by such officials shall be
conclusive evidence of approval.
2.02. Authority staff and officials are authorized to take all actions necessary to perform the Authority's
obligations under the Agreement as a whole, including without limitation execution of any documents to which the
Authority is a party referenced in or attached to the Agreement, and any deeds or other documents necessary to convey the
Property to the Buyer, all as described in the Agreement.
SECTION 3. EFFECTIVE DATE. This resolution shall be effective upon approval.
ORDER OF ECONOMIC DEVELOPMENT AUTHORITY
Passed this 5th day of February, 2018
Offered by: Schmitt
Seconded by: Novitsky
Roll Call: All ayes
President
Attest:
Assistant Secretary
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PURCHASE AND REDEVELOPMENT AGREEMENT
4641 Tyler Street, Columbia Heights, Minnesota
1. Parties. This Purchase and Redevelopment Agreement is made as of February 5, 2018 between the COLUMBIA
HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY, a public body corporate and politic under the laws of
Minnesota having its office located at 590 40TH Avenue NE, Columbia Heights, MN (the "Seller "), and Tollberg
Homes, LLC, a Minnesota limited liability company, having its principal office at 1428 5"' Avenue Anoka, MN
55303 (the "Buyer ") (the "Agreement ").
2. Offer /Acceptance. Buyer offers to purchase and Seller agrees to sell real property in Anoka County, Minnesota,
legally described as follows (the "Property "):
Lot Twenty -five (25) and the South 20 feet of Lot Twenty -six (26), Block Two (2) of Sheffield's Second Subdivision.
Check here if part or all of the land is Registered (Torrens) 0
3. Acceptance Deadline. This offer to purchase, unless accepted sooner, shall be null and void at 4:30 p.m. on
February 6, 2018, and in such event all earnest money shall be refunded to Buyer.
4. Price and Terms. The price for the Property is $27,500.00 ( "Purchase Price ") which Buyer shall pay as follows:
nonrefundable earnest money of $2,000 by check, receipt of which is hereby acknowledged by Seller. The
balance of the Purchase Price must be paid by certified check or wire transfer on the Date of Closing. The "Date
of Closing" shall be no later than April 6, 2018. (60 days from date of this Agreement)
5. Personal Property Included in Sale. There are no items of personal property or fixtures owned by Seller and
currently located on the Property for purposes of this sale.
6. Deed. Upon performance by Buyer, Seller shall deliver a quit claim deed conveying title to the Property to
Buyer, in substantially the form attached as Exhibit A, subject to the conditions subsequent required by Sections
15, 16, and 17 of this Agreement (the "Deed ").
7. Real Estate Taxes and Special Assessments.
A. Seller shall pay, at or before closing all real estate taxes due and payable in 2017 and prior years. Real estate
taxes due and payable in the year of closing shall be paid by Buyer.
B. Seller shall pay on Date of Closing all special assessments levied against the Property as of the date of
this agreement, including those certified for payment in the year of closing. Seller represents that there
are no special assessments pending as of the date of this agreement. If a special assessment becomes
pending after the date of this agreement and before the Date of Closing, Buyer may, as Buyer's option:
Assume payment of the pending special assessment without adjustment to the purchase
agreement price of the property; or
2. Require Seller to pay the pending special assessment and Buyer shall pay a commensurate
increase in the purchase price of the Property, which increase shall be the same as the estimated
amount of the assessment; or
Declare this agreement null and void by notice to Seller, and earnest money shall be refunded to
Buyer.
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8. Closing Costs and Related Items. The Buyer will pay: (a) the closing fees charged by the title insurance or
other closing agent, if any, utilized to close the transaction contemplated by this Agreement; (b) fees for title
evidence obtained by Buyer; (c) the recording fees for this Agreement and for the Deed transferring title to Buyer.
Seller will pay all other fees normally paid by sellers, including (a) any transfer taxes, and Well Disclosure fees
required to enable Buyer to record its deed from Seller under this Agreement, and (b) fees and charges related to the
filing of any instrument required to make title marketable. Each party shall pay its own attorney fees.
9. Sewer and Water. Seller warrants that city sewer is available at the Property line, and that city water is available
in the right of way adjacent to the Property. Seller makes no warranty regarding the conditions of any existing
water stub from the main to the Property line. Seller advises Buyer to inspect the condition of the water stub.
10. Condition of Property. Buyer acknowledges that they have inspected or have had the opportunity to inspect the
Property and agree to accept the Property "AS IS." Buyer has the right, at its own expense to take soil samples for
the purpose of determining if the soil is suitable for construction of the dwelling described in section 14 below. If
the soil is determined to be unacceptable the Buyer may rescind this agreement by written notice to the Seller, in
which case the agreement shall be null and void. Seller makes no warranties as to the condition of the Property.
11. Marketability of Title. As soon as reasonably possible after execution of this Agreement by both parties:
(a) Seller shall surrender any abstract of title and a copy of any owner's title insurance policy for the property, if in
Seller's possession or control, to Buyer or to Buyer's designated title service provider; and
(b) Buyer shall obtain the title evidence determined necessary or desirable by Buyer.
The Buyer shall have 20 days from the date it receives such title evidence to raise any objections to title it may
have. Objections not made within such time will be deemed waived. The Seller shall have 90 days from the date
of such objection to affect a cure; provided, however, that Seller shall have no obligation to cure any objections,
and may inform Buyer of such. The Buyer may then elect to close notwithstanding the uncured objections or
declare this Agreement null and void, and the parties will thereby be released from any further obligation
hereunder.
12. Title Clearance and Remedies. If Seller shall fail to have title objections timely removed, the Buyer
may, at its sole election: (a) terminate this Agreement without any liability on its part upon provision of a quit
claim deed to the Property from Buyer; or (b) take title to the Property subject to such objections.
If title is marketable, or is made marketable as provided herein, and Buyer defaults in any of the agreements
herein, Seller may elect either of the following options, as permitted by law:
A. Cancel this contract as provided by statute and retain all payments made hereunder as liquidated damages.
The parties acknowledge their intention that any note given pursuant to this contract is a down payment
note, and may be presented for payment notwithstanding cancellation;
B. Seek specific performance within six months after such right of action arises, including costs and
reasonable attorney's fees, as permitted by law.
If title is marketable, or is made marketable as provided herein, and Seller defaults in any of the agreements
herein, Buyer may, as permitted by law:
C. Seek damages from Seller including costs and reasonable attorney's fees;
D. Seek specific performance within six months after such right of action arises.
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13. Well Disclosure. Seller's knowledge of wells is as follows:
❑x The Seller certifies that the Seller does not know of any wells on the described real property.
❑ A well disclosure certificate accompanies this document.
❑ I am familiar with the property described in this instrument and I certify that the status and number of wells
on the Property have not changed since the last previously filed well disclosure certificate.
14. Individual Sewage Treatment System Disclosure. Seller certifies that there is no individual sewage treatment
system on or serving the Property.
15. Construction and Sale of Dwelling. Buyer agrees that it will construct a new single family dwelling on the
Property, intended for sale to a person or persons for residential occupancy (an "Owner Occupant "). This
covenant shall survive the delivery of the Deed.
A. The single family dwelling described in this Section is referred to as the "Minimum Improvements."
B. The Minimum Improvements shall consist of a new single family dwelling, and shall be constructed
substantially in accordance with the Single Family Home Lot Sales Program Guidelines on file at City
Hall and the proposal approved by Seller on December 5, 2017, attached hereto as Exhibit B.
C. Construction of the Minimum Improvements must be substantially completed no later than one year from
the Date of Closing. Construction will be considered substantially complete when the final certificate of
occupancy has been issued by the City of Columbia Heights building official.
D. Promptly after substantial completion of the Minimum Improvements in accordance with those provisions
of the Agreement relating solely to the obligations of the Buyer to construct such Minimum
Improvements (including the date for completion thereof), the Seller will furnish the Buyer with a
Certificate of Completion, in the form attached hereto as Exhibit C, for such improvements. Such
certification by the Seller shall be (and it shall be so provided in the Deed and in the certification itself) a
conclusive determination of satisfaction and termination of the agreements and covenants in the
Agreement and in the Deed with respect to the obligations of the Buyer and its successors and assigns, to
construct the Minimum Improvements and the dates for completion thereof.
The certificate provided for in this Section of this Agreement shall be in such form as will enable it to be recorded in
the proper office for the recordation of deeds and other instruments pertaining to the Property. If the Seller shall
refuse or fail to provide any certification in accordance with the provisions of this Section, the Seller shall, within
thirty (30) days after written request by the Buyer, provide the Buyer with a written statement, indicating in adequate
detail in what respects the Buyer has failed to complete the Minimum Improvements in accordance with the
provisions of the Agreement, or is otherwise in default, and what measures or acts it will be necessary, in the opinion
of the Seller for the Buyer to take or perform in order to obtain such certification.
E. The Buyer represents and agrees that until issuance of the Certificate of Completion for the Minimum
Improvements:
(1) Except for any agreement for sale to an Owner Occupant, the Buyer has not made or
created and will not make or create or suffer to be made or created any total or partial sale, assignment,
conveyance, or lease, or any trust or power, or transfer in any other mode or form of or with respect to
this Agreement or the Property or any part thereof or any interest therein, or any contract or agreement to
do any of the same, to any person or entity (collectively, a "Transfer "), without the prior written approval
of the Seller's board of commissioners. The teen "Transfer" does not include encumbrances made or
granted by way of security for, and only for, the purpose of obtaining construction, interim or permanent
financing necessary to enable the Buyer to construct the Minimum Improvements or component thereof.
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(2) If the Buyer seeks to effect a Transfer prior to issuance of the Certificate of Completion,
the Seller shall be entitled to require as conditions to such Transfer that:
(i) any proposed transferee shall have the qualifications and financial responsibility,
in the reasonable judgment of the Seller, necessary and adequate to fulfill the obligations
undertaken in this Agreement by the Buyer as to the portion of the Property to be transferred; and
ii) Any proposed transferee, by instrument in writing satisfactory to the Seller and in
form recordable in the public land records of Anoka County, Minnesota, shall, for itself and its
successors and assigns, and expressly for the benefit of the Seller, have expressly assumed all of
the obligations of the Buyer under this Agreement as to the portion of the Property to be
transferred and agreed to be subject to all the conditions and restrictions to which the Buyer is
subject as to such portion; provided, however, that the fact that any transferee of, or any other
successor in interest whatsoever to, the Property, or any part thereof, shall not, for whatever
reason, have assumed such obligations or so agreed, and shall not (unless and only to the extent
otherwise specifically provided in this Agreement or agreed to in writing by the Seller) deprive
the Seller of any rights or remedies or controls with respect to the Property, the Minimum
Improvements or any part thereof or the construction of the Minimum Improvements; it being the
intent of the parties as expressed in this Agreement that (to the fullest extent permitted at law and
in equity and excepting only in the manner and to the extent specifically provided otherwise in
this Agreement) no transfer of, or change with respect to, ownership in the Property or any part
thereof, or any interest therein, however consummated or occurring, and whether voluntary or
involuntary, shall operate, legally, or practically, to deprive or limit the Seller of or with respect
to any rights or remedies on controls provided in or resulting from this Agreement with respect to
the Property that the Seller would have had, had there been no such transfer or change. In the
absence of specific written agreement by the Seller to the contrary, no such transfer or approval
by the Seller thereof shall be deemed to relieve the Buyer, or any other party bound in any way by
this Agreement or otherwise with respect to the Property, from any of its obligations with respect
thereto.
(iii) Any and all instruments and other legal documents involved in effecting the
transfer of any interest in this Agreement or the Property governed by this subsection E. shall be
in a form reasonably satisfactory to the Seller.
(3) If the conditions described in paragraph (2) above are satisfied then the Transfer will be
approved and the Buyer shall be released from its obligation under this Agreement, as to the portion of
the Property that is transferred, assigned, or otherwise conveyed. The provisions of this paragraph (3)
apply to all subsequent transferors.
(4) Upon issuance of the Certificate of Completion, the Buyer may Transfer the Property and/or
the Buyer's rights and obligations under this Agreement with respect to such Property without the prior
written consent of the Seller.
F. The Buyer, and its successors and assigns, agree that they (a) will use the Minimum Improvements only
as a single family dwelling, and in the case of an Owner Occupant, will occupy the Property as a
residence, (b) will not rent the Property to any person or entity, (c) will not seek exemption from real
estate taxes on the Property under State law, and (d) will not transfer or permit transfer of the Property to
any entity whose ownership or operation of the Property would result in the Property being exempt from
real estate taxes under State law (other than any portion thereof dedicated or conveyed to the City of
Columbia Heights or Seller in accordance with this Agreement). The covenants in this paragraph run
with the land, survive both delivery of the Deed and issuance of the Certificate of Completion for the
Minimum Improvements, and shall remain in effect for ten years after the Date of Closing.
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16. Revesting Title in Seller upon Happening of Event Subsequent to Conveyance to Buyer. In the event that
subsequent to conveyance of the Property or any part thereof to the Buyer and prior to receipt by the Buyer of the
Certificate of Completion for of the Minimum Improvements, the Buyer, subject to Unavoidable Delays (as hereafter
defined), fails to carry out its obligations with respect to the construction of the Minimum Improvements (including
the nature and the date for the completion thereof), or abandons or substantially suspends construction work, and any
such failure, abandonment, or suspension shall not be cured, ended, or remedied within thirty (30) days after written
demand from the Seller to the Buyer to do so, then the Seller shall have the right to re -enter and take possession of the
Property and to terminate (and revest in the Seller) the estate conveyed by the Deed to the Buyer, it being the intent of
this provision, together with other provisions of the Agreement, that the conveyance of the Property to the Buyer shall
be made upon, and that the Deed shall contain a condition subsequent to the effect that in the event of any default on
the part of the Buyer and failure on the part of the Buyer to remedy, end, or abrogate such default within the period
and in the manner stated in such subdivisions, the Seller at its option may declare a tennination in favor of the Seller
of the title, and of all the rights and interests in and to the Property conveyed to the Buyer, and that such title and all
rights and interests of the Buyer, and any assigns or successors in interest to and in the Property, shall revert to the
Seller, but only if the events stated in this Section have not been cured within the time periods provided above.
Notwithstanding anything to the contrary contained in this Section, the Seller shall have no right to reenter or retake
title to and possession of a portion of the Property for which a Certificate of Completion has been issued.
For the purposes of this Agreement, the tern "Unavoidable Delays" means delays beyond the reasonable control of
the Buyer as a result thereof which are the direct result of strikes, other labor troubles, prolonged adverse weather or
acts of God, fire or other casualty to the Minimum Improvements, litigation commenced by third parties which, by
injunction or other similar judicial action, directly results in delays, or acts of any federal, state or local governmental
unit (other than the Seller in exercising its rights under this Agreement) which directly results in delays. Unavoidable
Delays shall not include delays in the Buyer's obtaining of permits or governmental approvals necessary to enable
construction of the Minimum Improvements by the dates such construction is required under this section of this
Agreement.
17. Resale of Reacquired Property; Disposition of Proceeds. Upon the revesting in the Seller of title to and/or
possession of the Property or any part thereof as provided in Section 16, the Seller shall apply the purchase price paid
by the Buyer under Section 4 of this Agreement as follows:
(a) First, to reimburse the Seller for all costs and expenses incurred by the Seller, including but not limited to
proportionate salaries of personnel, in connection with the recapture, management, and resale of the
Property or part thereof (but less any income derived by the Seller from the Property or part thereof in
connection with such management); all taxes, assessments, and water and sewer charges with respect to
the Property or part thereof (or, in the event the Property is exempt from taxation or assessment or such
charge during the period of ownership thereof by the Seller, an amount, if paid, equal to such taxes,
assessments, or charges (as determined by the Seller assessing official) as would have been payable if the
Property were not so exempt); any payments made or necessary to be made to discharge any
encumbrances or liens existing on the Property or part thereof at the time of revesting of title thereto in
the Seller or to discharge or prevent from attaching or being made any subsequent encumbrances or liens
due to obligations, defaults or acts of the Buyer, its successors or transferees; any expenditures made or
obligations incurred with respect to the making or completion of the Minimum Improvements or any part
thereof on the Property or part thereof; and any amounts otherwise owing the Seller by the Buyer and its
successor or transferee; and
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(b) Second, to reimburse the Buyer for the balance of the purchase price remaining after the reimbursements
specified in paragraph (a) above. Such reimbursement shall be paid to the Buyer upon delivery of an
executed, recordable warranty deed to the Property by the Buyer to the Seller.
18. Time is of the essence for all provisions of this contract.
19. Notices. All notices required herein shall be in writing and delivered personally or mailed to the address shown at
paragraph 1 above and, if mailed, are effective as of the date of mailing.
20. Minnesota Law. This contract shall be governed by the laws of the State of Minnesota.
21. Specific Performance. This Agreement may be specifically enforced by the parties, provided that an action is
brought within one year of the date of alleged breach of this Agreement.
22. No Remedy Exclusive. No remedy herein conferred upon or reserved to the Seller or Buyer is intended to be
exclusive of any other available remedy or remedies, but each and every such remedy shall be cumulative and shall be
in addition to every other remedy given under this Agreement or now or hereafter existing at law or in equity or by
statute. No delay or omission to exercise any right or power accruing upon any default shall impair any such right or
power or shall be construed to be a waiver thereof, but any such right and power may be exercised from time to time
and as often as may be deemed expedient.
23. No Merger of Representations, Warranties. All representations and warranties contained in this Purchase
Agreement shall not be merged into any instruments or conveyance delivered at closing, and the parties shall be
bound accordingly.
24. Recording. This Agreement shall be filed of record with the Anoka County Registrar of Titles or Office of Recorder,
as the case may be. Buyer shall pay all recording costs.
25. No Broker Involved. The Seller and represent and warrant to each other that there is no broker involved in this
transaction with whom it has negotiated or to whom it has agreed to pay a broker commission. Buyer agrees to
indemnify Seller for any and all claims for brokerage commissions or finders' fees in connection with negotiations for
purchase of the Property arising out of any alleged agreement or commitment or negotiation by Buyer, and Seller
agrees to indemnify Buyer for any and all claims for brokerage commissions or finders' fees in connection with
negotiations for purchase of the Property arising out of any alleged agreement or commitment or negotiation by
Seller.
In witness of the foregoing, the parties have executed this agreement on the year and date written above.
SELLER: COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY
By:
Its President
STATE OF MINNESOTA
COUNTY OF ANOKA
} ss.
i
Its Executive Director
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Feb 5, 2018
The foregoing was acknowledged before me this day of 2018, by and
Walter Fehst, the President and Executive Director of Columbia Heights Economic Development Authority, a public body
corporate and politic under the laws of Minnesota, on behalf of the public body corporate and politic.
BUYER: Toliberg Homes, LLC
i
STATE OF MINNESOTA
} ss.
COUNTY OF ANOKA
Notary Public
The foregoing was acknowledged before me this day of , 2018, by Wade Tollefson, the Chief
Manager of Tollberg Homes, LLC, a Minnesota limited liability company, on behalf of the limited liability company.
Notary Public
EXHIBIT A
to
PURCHASE AND REDEVELOPMENT AGREEMENT
FORM OF QUIT CLAIM DEED
Deed Tax Due: $
ECRV:
THIS INDENTURE, between the Columbia Heights Economic Development Authority, a Minnesota, a public
body corporate and politic (the "Grantor "), and , a Minnesota (the "Grantee ").
WITNESSETH, that Grantor, in consideration of the sum of $ and other good and valuable
consideration the receipt whereof is hereby acknowledged, does hereby grant, bargain, quitclaim and convey to the
Grantee, its successors and assigns forever, all the tract or parcel of land lying and being in the County of Anoka and State
of Minnesota described as follows, to -wit (such tract or parcel of land is hereinafter referred to as the "Property"):
Check here if part or all of the land is Registered (Torrens) ❑
To have and to hold the same, together with all the hereditaments and appurtenances thereunto belonging.
SECTION 1.
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Feb 5, 2018
It is understood and agreed that this Deed is subject to the covenants, conditions, restrictions and provisions of an
agreement recorded herewith entered into between the Grantor and Grantee on the of , 20_,
identified as "Purchase and Redevelopment Agreement" (hereafter referred to as the "Agreement ") and that the Grantee
shall not convey this Property, or any part thereof, except as permitted by the Agreement until a certificate of completion
releasing the Grantee from certain obligations of said Agreement as to this Property or such part thereof then to be
conveyed, has been placed of record. This provision, however, shall in no way prevent the Grantee from mortgaging this
Property in order to obtain funds for the purchase of the Property hereby conveyed or for erecting the Minimum
Improvements thereon (as defined in the Agreement) in conformity with the Agreement, any applicable development
program and applicable provisions of the zoning ordinance of the City of Columbia Heights, Minnesota, or for the
refinancing of the same.
It is specifically agreed that the Grantee shall promptly begin and diligently prosecute to completion the
redevelopment of the Property through the construction of the Minimum Improvements thereon, as provided in the
Agreement.
Promptly after completion of the Minimum Improvements in accordance with the provisions of the Agreement,
the Grantor will furnish the Grantee with an appropriate instrument so certifying. Such certification by the Grantor shall
be (and it shall be so provided in the certification itself) a conclusive determination of satisfaction and termination of the
agreements and covenants of the Agreement and of this Deed with respect to the obligation of the Grantee, and its
successors and assigns, to construct the Minimum Improvements and the dates for the beginning and completion thereof.
Such certification and such detennination shall not constitute evidence of compliance with or satisfaction of any
obligation of the Grantee to any holder of a mortgage, or any insurer of a mortgage, securing money loaned to finance the
purchase of the Property hereby conveyed or the Minimum Improvements, or any part thereof.
All certifications provided for herein shall be in such form as will enable them to be recorded with the County
Recorder, or Registrar of Titles, Anoka County, Minnesota. If the Grantor shall refuse or fail to provide any such
certification in accordance with the provisions of the Agreement and this Deed, the Grantor shall, within thirty (30) days
after written request by the Grantee, provide the Grantee with a written statement indicating in adequate detail in what
respects the Grantee has failed to complete the Minimum Improvements in accordance with the provisions of the
Agreement or is otherwise in default, and what measures or acts it will be necessary, in the opinion of the Grantor, for the
Grantee to take or perform in order to obtain such certification.
SECTION 2.
The Grantee's rights and interest in the Property are subject to the terms and conditions of Sections 15, 16 and 17
of the Agreement relating to the Grantor's right to re -enter and revest in Grantor title to the Property under conditions
specified therein, including but not limited to termination of such right upon issuance of a Certificate of Completion as
defined in the Agreement.
SECTION 3.
The Grantee agrees for itself and its successors and assigns to or of the Property or any part thereof,
hereinbefore described, that the Grantee and such successors and assigns shall comply with Section 15F of the
Agreement for a period of ten years after the date hereof.
It is intended and agreed that the above and foregoing agreements and covenants shall be covenants
running with the land for the respective terms herein provided, and that they shall, in any event, and without
regard to technical classification or designation, legal or otherwise, and except only as otherwise specifically
provided in this Deed, be binding, to the fullest extent permitted by law and equity for the benefit and in favor of,
and enforceable by, the Grantor against the Grantee, its successors and assigns, and every successor in interest to
the Property, or any part thereof or any interest therein, and any party in possession or occupancy of the Property
or any part thereof.
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In amplification, and not in restriction of, the provisions of the preceding section, it is intended and agreed that the
Grantor shall be deemed a beneficiary of the agreements and covenants provided herein, both for and in its own right, and
also for the purposes of protecting the interest of the community and the other parties, public or private, in whose favor or
for whose benefit these agreements and covenants have been provided. Such agreements and covenants shall run in favor
of the Grantor without regard to whether the Grantor has at any time been, remains, or is an owner of any land or interest
therein to, or in favor of, which such agreements and covenants relate. The Grantor shall have the right, in the event of
any breach of any such agreement or covenant to exercise all the rights and remedies, and to maintain any actions or suits
at law or in equity or other proper proceedings to enforce the curing of such breach of agreement or covenant, to which it
or any other beneficiaries of such agreement or covenant may be entitled; provided that Grantor shall not have any right to
re -enter the Property or revest in the Grantor the estate conveyed by this Deed on grounds of Grantee's failure to comply
with its obligations under this Section 3.
IN WITNESS WHEREOF, the Grantor has caused this Deed to be duly executed in its behalf by its President and
Executive Director, this day of , 20
❑ The Seller certifies that the Seller does
not know of any wells on the described
real property.
❑ A well disclosure certificate accompanies
this document or has been electronically
filed. (If electronically filed, insert
WDC number: ).
❑ I am familiar with the property described
in this instrument and I certify that the
status and number of wells on the
described real property have not
changed since the last previously filed
well disclosure certificate.
STATE OF MINNESOTA )
) ss
COUNTY OF ANOKA )
COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT
AUTHORITY
By
Its President
By
Its Executive Director
On this day of , 20 before me, a notary public within and for County, personally
appeared and to me personally known who by me duly sworn, did say that they are
the President and Executive Director of the Columbia Heights Economic Development Authority (the "Authority ") named
in the foregoing instrument; that said instrument was signed on behalf of said Authority pursuant to a resolution of its
governing body; and said _ and _ _ acknowledged said instrument to be the free act
and deed of said Authority.
This instrument was drafted by:
Kennedy & Graven, Charted
470 U.S. Bank Plaza
200 South Sixth Street
Minneapolis, MN 55402
(612) 337 -9300
Notary Public
Tax Statements should be sent to:
int
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Page 17
Feb 5, 2018
EXHIBIT B
TO
PURCHASE AND REDEVELOPMENT AGREEMENT
APPROVED PROPOSAL
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EXHIBIT C
TO
PURCHASE AND REDEVELOPMENT AGREEMENT
FORM OF CERTIFICATE OF COMPLETION
CERTIFICATE OF COMPLETION
WHEREAS, the Columbia Heights Economic Development Authority, a public body, corporate and politic
(the "Grantor "), conveyed land in Anoka County, Minnesota to , a
(the "Grantee "), by a Deed recorded in the Office of the County Recorder [and in the
Office of the Registrar of Titles] in and for the County of Anoka and State of Minnesota, as Document
Numbers and
and
respectively;
WHEREAS, said Deed contained certain covenants and restrictions set forth in Sections 1 and 2 of said Deed; and
WHEREAS, said Grantee has performed said covenants and conditions insofar as it is able in a manner deemed
sufficient by the Grantor to permit the execution and recording of this certification;
NOW, THEREFORE, this is to certify that all building construction and other physical improvements
specified to be done and made by the Grantee have been completed and the above covenants and conditions in
said Deed and the agreements and covenants in Section 15B of the Agreement (as described in said Deed) have
been performed by the Grantee therein, and the County Recorder [and the Registrar of Titles] in and for the
County of Anoka and State of Minnesota are hereby authorized to accept for recording and to record, the filing
of this instrument, to be a conclusive determination of the satisfactory termination of the covenants and
conditions of Section 15B of the Agreement and the covenants and restrictions set forth in Sections 1 and 2 of
said Deed; provided that the covenants set forth in Sections 15F of the Agreement, and in Section 3 of the
Deed, remain in full force and effect through the period stated thereon.
Dated: , 20
COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT
AUTHORITY
By
Its President
By
Its Executive Director
STATE OF MINNESOTA )
) ss
COUNTY OF ANOKA )
The foregoing instrument was acknowledged before me this day of , 20 , by
and , the President and Executive Director, respectively, of the Columbia
Heights Economic Development Authority, on behalf of the authority.
Notary Public
This document drafted by:
KENNEDY & GRAVEN, CHARTERED
470 U.S. Bank Plaza
Minneapolis, MN 55402
(612) 337 -9300
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Feb 5, 2018
3. Updates from 2017 and Discussion for 2018 Projects
Dahl stated that throughout 2017, the Economic Development Authority (the "EDA ") accomplished several projects
and objectives. The purpose of this report is to review and discuss the EDA's accomplishments in 2017, but also to
determine the projects and objectives that the EDA would like staff to focus on in 2018. Highlights of 2017
accomplishments include, but not limited to the following:
2017 EDA Accomplishments
• Facilitated redevelopment of the property located at 47th Avenue NE and Grand Avenue NE with the
development of the Grand Central Flats in an effort to complete the Grand Central Neighborhood which was
originally initiated back in 2003.
• Leveraged funds through the Grand Central Flats development to collect park dedication fees in the amount
of $222,000 for park improvements through the City of Columba Heights (the "City ").
• Refinanced the Public Safety Facility Lease Revenue Bonds, series 2007B (Municipal Liquor Stores), to save
the City a net present value of $775,000.
• Increased the EDA Levy to the statutory levy limit to increase the amount of funds for economic
development purposes.
• Identified and received an interfund transfer in the amount of $1,025,445 from the Fund 213: Park View
Villa to Fund 408: EDA Redevelopment Projects Fund.
• Initiated the Commercial Revitalization Program, a program setup to acquire nonconforming properties under
the current zoning code of the City through all commercial corridors.
• Sold or pending sale of all remaining lots in the Single Family Home Lot Sales Program. Dahl told members
that 25 homes have been re -built throughout the City selling at a price between $200,000 - $250,000.
• Chose to participate in the Anoka County Levy program.
Now, as the EDA looks ahead to 2018, staff seeks to facilitate discussion about what projects, programs, and
objectives commission members desire to see initiated and/ or completed in 2018. First, staff would like to review
the fund balances of several accounts that the EDA utilizes to accomplish its initiatives. The figures below are
estimations and subject to change as the year -end fund balances have not been finalized for all the accounts.
• Fund 226: Special Projects Revenue: $ 887,000
• Fund 371: TIF T4 Kmart/ Central Ave: $ 430,000
• Fund 376: TIF A3,C7,C8 Scattered Site District: $ 112,000
• Fund 408: EDA Redevelopment Project Fund $ 821,000
• Fund 420: CAP Improvement Development: $ 1,695,000
• Anoka County HRA Levy: $ 515,000
The list below provides a starting point for the discussion tonight. Staff highly encourages the EDA commission
members to provide feedback and propose changes to the following 2018 proposed projects, programs, and
objectives:
2018 Proposed Projects, Programs and Ob'ecl tives
Continue the development of and initiation of a business retention and expansion program to assist the
Columbia Heights business community.
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Feb 5, 2018
• Reevaluate the guidelines, specifications, and requirements of the Single Family Home Lot Sales Program,
and continue to incorporate vacant lots into the Single Family Home Lot Sales Program.
• Evaluate the possibility of introducing an exterior fagade improvement or a surveillance system grant
program for the Columbia Heights business community. Schmitt liked this idea.
• Determine a fund source and create a housing rehabilitation grant or low to no interest loan program for
exterior remodels and/ or interior renovations.
• Acquire and remediate the Root Property located on the corner of 40th Avenue NE and University Avenue
NE. Dahl told members this would be more than a one year project since the remediation would take several
years to complete.
• Relocate the residential structure located at 3841 Central Avenue NE to 666 40th Avenue NE.
• Identify a redevelopment opportunity for the property located at 828 40th Avenue NE.
Comments:
(1) Williams asked about the round -a -bout piece. Dahl told them Dominium is working on paperwork to donate
the parcel to the City. Since the property is zoned as MXU and this is the last piece left, it must be developed
commercially as the rest of the development is all residential. It is a small parcel and there is no interest by
commercial developers in a site this small. Hogeboom said the only way it could be developed other than
commercial would require the district to be completely re- zoned. Another issue with the piece is that the soil is
contaminated at a depth of 8 feet. So anything constructed deeper than that will require additional costs for cleanup.
Buesgens asked how much the lot is worth. It was noted that it is just over an acre in size and generates
approximately $6,500 in annual taxes currently. She wondered if the property could be used for community garden
space while we wait for it to be developed in some capacity. Dahl said that is an option, but that the contaminated
soil may prevent that. Soil tests would have to be done to ensure it is safe.
Novitsky asked about the history of the development and why other commercial uses weren't built when there was
more property available. Fehst explained that originally the piece on 37th Avenue and University was earmarked for
a commercial development but there wasn't any interest from developers wanting to construct commercial buildings,
especially since the downturn in the economy starting in 2008. And since that time, financial assistance to
developers has been for multi- family, high density residential construction.
(2) Schmitt said she thinks a goal for 2018 should be to focus on creating zoning districts to keep properties on
the tax rolls as previously discussed in the meeting.
(3) Szurek asked about the status of the HyVee construction. Dahl said he reached out to his contact to get
another update and to remind them that the Public Financial Assistance for cleanup /remediation that was approved
requires that construction start by June 2018. He had not heard back from him prior to this meeting. There was a
discussion regarding the recent news article regarding HyVee also getting approvals for the construction of a store in
Spring Lake Park. Staff noted they just received the City's approvals, closed on the property at the end of January
and that no construction date has been set for that store either. So at this point, there is no reason to believe that the
Spring Lake Park store will be done before ours.
(4) Szurek asked if there was any way to stay on top of properties that are vacated and run down for possible
purchase by the City. There was a discussion about this issue.
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Page 25
February 5, 2018
(5) Schmitt asked if members should give staff any other ideas for 2018 objectives they would like to pursue.
Dahl told members to forward any other ideas they had to him.
4. Update on 3841 Central Ave NE
Dahl told members that staff is still weighing all options. Kevin Hansen said the plumbing could be fixed
and that the house is in solid condition construction wise. Dahl said that GMHC had reached out to him again, and
that he told them there would not be any gap financing given that they had previously requested. He suggested to
GMHC about possibly swapping properties with them (3805 2nd St that they own for 666 401h Ave that we own).
That way they could move the house to the 666 401h Ave site which would be less expensive than moving it to the
38052 d St lot. Dahl said GMHC's legal team is looking into this idea.
The meeting was adjourned at 7:40 pm.
Respectfully submitted,
Shelley Hanson
Secretary
25
ECONOMIC DEVELOPMENT AUTHORITY (EDA)
MINUTES OF THE SPECIAL MEETING OF
MARCH 26, 2018
The meeting was called to order at 6:30 pm by President, Marlaine Szurek.
Members Present: Murzyn, Schmitt, Buesgens, Williams, Novitsky, Herringer and Szurek
Staff Present: Walt Fehst, Keith Dahl, and JosephHogeboom
PLEDGE OF ALLEGIANCE- RECITED
OATH OF OFFICE -Gerry Herringer was sworn in for his new term by Walt Fehst.
BUSINESS ITEMS
1. First Amendment to the Purchase Agreement for 4201 Jefferson St NE- Resolution 2018 -05
Dahl told members that on December 4, 2017, the Columbia Heights Economic Development Authority (the
"EDA ") approved Resolution 2017 -31, a resolution which approved the Purchase and Redevelopment Agreement
with Home Detail, Inc. (the "Agreement ") for the acquisition of 4201 Jefferson street NE, Columbia Heights, MN
(the "Subject Property"). Pursuant to the Agreement, the "Date of Closing" was required to be no later than February
4, 2018 (60 days from approval date of the Agreement). However, Home Detail, Inc. was unable to satisfy the
aforementioned provision in said Agreement, and has requested a 30 day extension to the "Date of Closing ".
Therefore, please find attached for approval consideration the First Amendment to the Agreement which extends the
"Date of Closing" to April 25, 2018 (30 days from the date of this First Amendment). Also please note, if Home
Detail, Inc. is unable to purchase the property within the specified extension period, the Agreement will be rendered
null and void, and EDA staff will begin to accept other applications from Minnesota Licensed Home Builders for the
purchase of the Subject Property. Furthermore, it should also be noted that if this happens, the earnest money
deposited in the amount of $2,000 by Home Detail, Inc. is non - refundable and will not be reimbursed.
Staff recommends approval of Resolution 2018 -05 as presented.
Questions /comments from members:
Szurek questioned why Home Detail was unable to close on 4201 Jefferson Street NE and 4641 Polk Street NE in
the allotted time given by the Purchase Agreement, but that she would be in favor of approving a 30 extension for
both properties.
Herringer stated that he will reluctantly vote in favor of both extensions, but insisted that the Columbia Heights
Economic Development Authority should not approve any further extensions for Home Detail.
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March 26, 2018
Motion by Buesgens, seconded by Murzyn, to waive the reading of Resolution 2018 -05, there being ample copies
available to the public. All ayes. MOTION PASSED.
Motion by Buesgens, seconded by Murzyn, to adopt Resolution 2018 -05, a resolution approving a first amendment of
a purchase agreement between the Columbia Heights Economic Development Authority and Home Detail, Inc. All
ayes. MOTION PASSED.
RESOLUTION NO. 2018-05
RESOLUTION APPROVING A FIRST AMENDMENT OF A PURCHASE AGREEMENT BETWEEN
THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY AND HOME DETAIL, INC.
BE IT RESOLVED BY the Board of Commissioners ( "Board ") of the Columbia Heights Economic Development
Authority (the "Authority ") as follows:
SECTION 1. RECITALS.
1.01. The Authority currently administers its Single Family Home Lot Sales Program within the City of
Columbia Heights (the "City "), pursuant to Minnesota Statutes, Sections 469.090 to 469.108 1, as amended.
1.02. Pursuant to a duly noticed public hearing on the sale of Authority property, the Authority and Home
Detail, Inc. (the "Buyer ") executed a Purchase Agreement, dated as of December 4, 2017 (the "Agreement "),
providing for the conveyance by the Authority to the Seller of certain property located at 4201 Jefferson Street NE
within the City, legally described as follows:
Lot 16, Block 32, Columbia Heights Annex to Minneapolis, Anoka County, Minnesota (the "Property ")
1.03. The parties have negotiated and propose to execute a First Amendment to the Agreement (the "First
Amendment ") to extend the deadline for the conveyance of the Property.
SECTION 2. FIRST AMENDMENT APPROVED.
2.01. The First Amendment as presented to the Board is hereby in all respects approved, subject to
modifications that do not alter the substance of the transaction and that are approved by the President and Executive
Director, provided that execution of the First Amendment by such officials shall be conclusive evidence of approval.
2.02. The President and Executive Director are hereby authorized to execute on behalf of the Authority the
First Amendment and any documents referenced therein requiring execution by the Authority, and to carry out, on
behalf of the Authority, its obligations thereunder.
2.03. Authority staff and consultants are authorized to take any actions necessary to carry out the intent of
this resolution.
27
EDA Minutes
Page 3
March 26, 2018
ORDER OF ECONOMIC DEVELOPMENT AUTHORITY
Passed this 26th day of March, 2018
Offered by: Buesgens
Seconded by: Murzyn
Roll Call: All ayes
President
Attest:
Assistant Secretary
FIRST AMENDMENT TO PURCHASE AGREEMENT
4201 Jefferson Street NE, Columbia Heights, Minnesota
This First Amendment to Purchase Agreement ( "Amendment ") is made this day of March, 2018 by and
between Columbia Heights Economic Development Authority, a Minnesota public body corporate and politic under
the laws of Minnesota (the "Seller "), and Home Detail, Inc., a Minnesota corporation (the "Buyer ").
WHEREAS, the Seller and the Buyer entered into that certain Purchase Agreement dated as of December 4,
2017 (the "Agreement ") providing for the conveyance by the Seller to the Buyer of certain property at 4201
Jefferson Street NE located in the City of Columbia Heights, Anoka County, Minnesota and legally described as
follows:
Lot 16, Block 32, Columbia Heights Annex to Minneapolis, Anoka County, Minnesota
(the "Property "); and
WHEREAS, due to unanticipated delays, the parties have determined to extend the deadline for closing on
the conveyance of the Property.
NOW, THEREFORE, in consideration of the premises and the mutual obligations of the parties hereto, each
of them does hereby covenant and agree with the other as follows:
Amendment to Paragraph 4 of the Agreement. Paragraph 4 of the Agreement is amended as follows:
Price and Terms. The price for the Property is $35,000 ( "Purchase Price ") which Buyer shall pay as follows:
nonrefundable earnest money of $2,000 by check, receipt of which is hereby acknowledged by Seller. The balance
of the Purchase Price must be paid by certified check or wire transfer on the Date of Closing. The "Date of Closing"
shall be no later than April 25, 2018.
effect.
2. Miscellaneous. Except as amended by this Amendment, the Agreement shall remain in full force and
28
EDA Minutes
Page 4
March 26, 2018
IN WITNESS WHEREOF, the parties have executed this First Amendment to Purchase Agreement as of the date
written above.
BUYER
HOME DETAIL, INC.
SELLER
COLUMBIA HEIGHTS
ECONOMIC DEVELOPMENT AUTHORITY
By: By:
Its: Its: President
By:
Its: Executive Director
2. First Amendment to the Purchase Agreement for 4641 Polk Street NE- Resolution 2018 -06
Dahl told members that on December 4, 2017, the Columbia Heights Economic Development Authority (the
"EDA ") approved Resolution 2017 -32, a resolution which approved the Purchase and Redevelopment Agreement
with Home Detail, Inc. (the "Agreement ") for the acquisition of 4641 Polk Street NE, Columbia Heights, MN (the
"Subject Property "). Pursuant to the Agreement, the "Date of Closing" was required to be no later than February 4,
2018 (60 days from approval date of the Agreement). However, Home Detail, Inc. was unable to satisfy the
aforementioned provision in said Agreement, and has requested a 30 day extension to the "Date of Closing ".
Therefore, please find attached for approval consideration the First Amendment to the Agreement which extends the
"Date of Closing" to April 25, 2018 (30 days from the date of this First Amendment). Also please note, if Home
Detail, Inc. is unable to purchase the property within the specified extension period, the Agreement will be rendered
null and void, and EDA staff will begin to accept other applications from Minnesota License Home Builders for the
purchase of the Subject Property. Furthermore, it should also be noted that if this happens, the earnest money
deposited in the amount of $2,000 by Home Detail, Inc. is non - refundable and will not be reimbursed.
Staff recommends approval of Resolution 2018 -06 as presented.
Questions /comments from members:
No questions or comments. Discussion was held during the previous item.
Motion by Herringer, seconded by Novitsky, to waive the reading of Resolution 2018 -06, there being ample copies
available to the public. All ayes. MOTIONPASSED.
Motion by Herringer, seconded by Novitsky, to adopt Resolution 2018 -06, a resolution approving a first amendment
of a purchase agreement between the Columbia Heights Economic Development Authority and Home Detail, Inc. All
ayes. MOTION PASSED.
29
EDA Minutes
Page 5
March 26, 2018
RESOLUTION NO. 2018-06
RESOLUTION APPROVING A FIRST AMENDMENT OF A PURCHASE AGREEMENT BETWEEN THE
COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY AND HOME DETAIL, INC.
BE IT RESOLVED BY the Board of Commissioners ('Board ") of the Columbia Heights Economic Development Authority
(the "Authority ") as follows:
SECTION 1. RECITALS.
1.01. The Authority currently administers its Single Family Home Lot Sales Program within the City of Columbia
Heights (the "City "), pursuant to Minnesota Statutes, Sections 469.090 to 469.108 1, as amended.
1.02. Pursuant to a duly noticed public hearing on the sale of Authority property, the Authority and Home Detail,
Inc. (the "Buyer ") executed a Purchase Agreement, dated as of December 4, 2017 (the "Agreement "), providing for the
conveyance by the Authority to the Seller of certain property located at 4641 Polk Street NE within the City, legally described
as follows:
That Part of Lot 23 lying north of the south 20 feet of said Lot 23, and Lot 24, in Block 1, Sheffield's Second
Subdivision, Anoka County, Minnesota according to the recorded plat thereof, and situate in Anoka County, Minnesota (the
"Property ").
1.03. The parties have negotiated and propose to execute a First Amendment to the Agreement (the "First
Amendment ") to extend the deadline for the conveyance of the Property.
SECTION 2. FIRST AMENDMENT APPROVED.
2.01. The First Amendment as presented to the Board is hereby in all respects approved, subject to modifications
that do not alter the substance of the transaction and that are approved by the President and Executive Director, provided that
execution of the First Amendment by such officials shall be conclusive evidence of approval.
2.02. The President and Executive Director are hereby authorized to execute on behalf of the Authority the First
Amendment and any documents referenced therein requiring execution by the Authority, and to carry out, on behalf of the
Authority, its obligations thereunder.
2.03. Authority staff and consultants are authorized to take any actions necessary to carry out the intent of this
resolution.
ORDER OF ECONOMIC DEVELOPMENT AUTHORITY
Passed this 26th day of March, 2018
Offered by: Herringer
Seconded by: Novitsky
Roll Call: All ayes
President
Attest:
Assistant Secretary
30
EDA Minutes
Page 6
March 26, 2018
FIRST AMENDMENT TO PURCHASE AGREEMENT
4641 Polk Street NE, Columbia Heights, Minnesota
This First Amendment to Purchase Agreement ( "Amendment ") is made this day of March, 2018 by and between
Columbia Heights Economic Development Authority, a Minnesota public body corporate and politic under the laws of
Minnesota (the "Seller "), and HOME DETAIL, INC., a Minnesota corporation (the "Buyer ").
WHEREAS, the Seller and the Buyer entered into that certain Purchase Agreement dated as of December 4, 2017 (the
"Agreement ") providing for the conveyance by the Seller to the Buyer of certain property at 4641 Polk Street NE located in the
City of Columbia Heights, Anoka County, Minnesota and legally described as follows:
That Part of Lot 23 lying north of the south 20 feet of said Lot 23, and Lot 24, in Block 1, Sheffield's Second
Subdivision, Anoka County, Minnesota according to the recorded plat thereof, and situate in Anoka County, Minnesota
(the "Property "); and
WHEREAS, due to unanticipated delays, the parties have determined to extend the deadline for closing on the
conveyance of the Property.
NOW, THEREFORE, in consideration of the premises and the mutual obligations of the parties hereto, each of them
does hereby covenant and agree with the other as follows:
Amendment to Paragraph 4 of the Agreement. Paragraph 7 of the Agreement is amended as follows:
Price and Terms. The price for the Property is $35,000 ( "Purchase Price ") which Buyer shall pay as follows: nonrefundable
earnest money of $2,000 by check, receipt of which is hereby acknowledged by Seller. The balance of the Purchase Price must
be paid by certified check or wire transfer on the Date of Closing. The "Date of Closing" shall be no later than April 25, 2018.
2. Miscellaneous. Except as amended by this Amendment, the Agreement shall remain in full force and effect.
(Remainder of this page intentionally left blank.)
IN WITNESS WHEREOF, the parties have executed this First Amendment to Purchase Agreement as of the date written
above.
BUYER SELLER
HOME DETAIL, INC. COLUMBIA HEIGHTS
ECONOMIC DEVELOPMENT
AUTHORITY
i
Its
By:
Its: President
By:
Its: Executive Director
31
EDA Minutes
Page 7
March 26, 2018
OTHER BUSINESS
There was no other new business. The next regular meeting is scheduled for Monday, April 2 a
The meeting was adjourned at 6:43pm.
Respectfully submitted,
Keith Dahl
Secretary
32
RESOLUTION NO. 2018 -04
A RESOLUTION OF THE ECONOMIC DEVELOPMENT AUTHORITY OF COLUMBIA HEIGHTS, MINNESOTA,
APPROVING THE FINANCIAL STATEMENTS FOR THE MONTHs OF JANUARY AND FEBRUARY 2018, AND THE
PAYMENT OF THE BILLS FOR THE MONTHS OF JANUARY AND FEBRUARY 2018.
WHEREAS, the Columbia Heights Economic Development Authority (the "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 January and February 2018 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, financials statements are held by the City's Finance Department in a method outlined by the State
of Minnesota's Records Retention Schedule,
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 2nd day of April, 2018
Offered by:
Seconded by:
Roll Call:
President
Attest
Assistant Secretary
Resolution 2018 -04 33
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AGENDA SECTION
BUSINESS ITEMS
ITEM NO.
6
MEETING DATE
APRIL 2, 2018
CITY OF COLUMBIA HEIGHTS - ECONOMIC DEVELOPMENT AUTHORITY
ITEM:
Facade Improvement Grant Program Discussion
DEPARTMENT: Community Development
CITY MANAGER'S APPROVAL:
BY /DATE: Keith M. Dahl, March 29, 2018
BY /DATE: r
BACKGROUND:
On February 5, 2018, the Columbia Heights Economic Development Authority (the "EDA ") directed staff to
collaborate with the Columbia Heights Police Department (the "CHPD ") to develop a grant program to
encourage the revitalization, rehabilitation, and restoration of exterior facades, but also to increase the
presence of security throughout the Central Avenue NE commercial corridor in the City of Columbia Heights
(the "City "). Therefore, staff worked with the CHPD to develop the Facade Improvement Grant Program (the
"Grant Program "). Please find attached the initial draft documents of the guidelines and budget overview for
the Grant Program, as well as a crime overlay map to delineate where the crime incident rate has been more
prevalent along Central Avenue NE.
STAFF RECOMMENDATION:
No recommendation. Staff desires to facilitate a discussion about the Facade Improvement Grant Program.
RECOMMENDED MOTION(S):
No motions required at this time.
ATTACHMENTS:
1. Facade Improvement Grant Program Guidelines (2 Pages)
2. Facade Improvement Grant Program Proposed Budget Overview (2 Pages)
3. Crime Overlay Map (1 Page)
City of Columbia Heights - EDA Letter 110
FACADE IMPROVEMENT GRANT PROGRAM GUIDELINES
PROGRAM DESCRIPTION
In a collaborative effort with the Columbia Heights Police Department (the "CHPD "), the
Columbia Heights Economic Development Authority (the "EDA ") offers a Facade Improvement
Grant Program (the "Grant Program "). The purpose of the Grant Program is to encourage
businesses and commercial property owners within the Central Business District to revitalize,
rehabilitate, and restore exterior store fronts, but also for the CHPD to provide monitored
surveillance to reduce the incident rate of criminal activity and increase business vitality and
economic performance along Central Avenue NE. The Grant Program reimburses businesses or
commercial property owners for eligible improvements up to fifty percent (50 %) of the total
project cost; for a maximum reimbursement of $5,000.
ELIGIBLE APPLICANTS
Applicants must be an owner of a commercial property, a commercial tenant with approval
from the property owner(s), or a 501(c)(3) organization in the City of Columbia Heights (the
"City ") located along Central Avenue NE between 37th and 45th Avenue NE. Applicants must be
in good standing with the City, including but not limited, legally operating with proper
licensure; and current on property taxes, utility bills, and special assessments.
ELIGIBLE FACADE IMPROVEMENTS
Facade improvements must be visible from a public street, completed by a licensed contractor,
and comply with one or more of the following eligible fagade improvements:
• Architectural Improvements
• Canopy or Awning Installation or Repair
• Exterior lighting
• Exterior Painting, Re- siding, or Professional Cleaning
• Green Facade Improvement (Living Wall)
• Installation of New or Renovated Attached Signage (Excluding LED)
• Masonry Repairs
• Murals
• Replacement of Windows and Doors
• Restoration of Exterior Finishes and Materials
• Any other exterior fagade improvement physically attached to the primary structure as
approved by the EDA
Please note: Labor costs of a contractor, including necessary design work are eligible costs for
reimbursement through the Grant Program. Ineligible costs include, but are not limited to, new
construction, interior renovations, repair or replacement of a roof, improvements to an alley
fagade, improvements started prior to receiving a signed grant agreement with the EDA, and
any other improvement not listed above.
20180326 Facade Improvement Grant Program Guidelines
111
Fagade Improvement Grant Program Guidelines
March 22, 2018
Page 2
EXTERIOR SURVEILLANCE SYSTEM IMPROVEMENTS
The CHPD shall review all Grant Program applications submitted to determine if the installation
of an exterior surveillance system is warranted. If it is determined that an exterior surveillance
system is warranted, the applicant will then be required to enter into a Lease Agreement with
the EDA. The Lease Agreement will allow the EDA to (1) install security cameras on the exterior
of the primary structure; (2) install recording equipment inside of the primary structure in a
locked and secured location to prevent destruction or tampering; and (3) allow for annual
maintenance inspections for a period of five (5) years. All surveillance system equipment shall
be installed by a consultant selected by the EDA, and reviewed by the CHPD. Since
specifications of the surveillance system equipment may vary based on desired coverage,
configuration, and size of the commercial property, the following are minimum specifications to
be installed:
Cameras
• IP - Enabled
• Ability to operate in all resolutions up to HDTV 720p/ 11VIP
• Ability to record thirty (30) frames per second
• Capable of recording optimal images in all lighting conditions
• Vandal- resistant
• Weather -proof in extreme temperatures from -400 to 131 OF
Network Video Recorder
• Sufficient memory to retain data from all cameras for a period of fifteen (15) days
• Capacity to deliver thirty (30) frames per second, per camera
• Ability to produce a DVD -R copy of desired data
APPLICANTION PROCESS
1. Applications will be accepted from October 29, 2018 to December 21, 2018.
2. Grants will be awarded, and applicants will be notified by February 4, 2019. A Grant
Agreement and if necessary a Lease Agreement must be approved and signed before
commencement of any improvements. Please be sure to obtain all necessary permits.
3. The applicant or its contractor must commence the improvements sixty (60) days after
an approved Grant Agreement. The fagade improvements must be completed within the
six (6) months after the issuance of the necessary permits.
4. After fagade improvements are complete, the grant funds will be disbursed for
reimbursement to the applicant after all of the following pieces of information have
been submitted:
a. Proof of Final Inspection
b. Final Invoice from the Contractor
c. Before and After Photographs
d. Proof of Payment
ADDITIONAL INFORMATION
TBD
112
FACADE IMPROVEMENT GRANT PROGRAM - PROPOSED BUDGET OVERVIEW
USES STATEMENT
The Columbia Heights Economic Development Authority (the "EDA ") has identified a need to
encourage the revitalization, rehabilitation, and restoration of exterior facades throughout the
Central Avenue NE commercial corridor in the City of Columbia Heights (the "City "), but also an
increased need to protect the vitality and economic performance of businesses with the
installation of exterior surveillance systems. Between 2015 and 2017, the Columbia Heights
Police Department responded and investigated 955 crimes along Central Avenue NE, including
but not limited to arson, assault, burglary, fraud, robbery, shoplifting, theft, and vandalism.
Therefore, in an effort to reduce the crime incident rate along Central Avenue NE and improve
business vitality, the EDA desires to offer a fagade improvement grant program in exchange for
the City to install an exterior surveillance system on the exterior of the respective business. As
of March 16, 2018, the total project cost has been estimated to be $446,145. This estimate was
based on commercial properties between 37th Avenue NE and 45th Avenue NE (the "Project
Scope "), but more specifically where the crime incident rate was the highest. Please note that
the proposed budget is subject to change based on several dependent and independent
variables. Thus, the total project cost should be reevaluated annually to account for any
substantive changes. The following table below provides a detailed use breakdown of the
anticipated expenses for project completion:
USES
EXPENSES
I. Facade Improvement
$
350,000.00
II. Equipment Costs
$
70,500.00
III. Design/ Install
$
18,000.00
IV. Legal Drafting Fees
$
5,275.00
V. Lease Agreement
$
300.00
VI. Recording of Lease
$
2,070.00
TOTAL USE FUNDS:
$
446,145.00
• Facade Improvement — these expenses account for the total amount of eligible
commercial properties in the Project Scope receiving the maximum reimbursement for
the respective exterior fagade improvements.
Equipment Costs — these expenses include the cost of exterior surveillance systems at
identified commercial properties in the Project Scope, such as the Network Video
Reordering (NVR) device; and the amount of necessary high - performance cameras to be
installed for increased security at adjacent businesses and public space.
• Design/ Install — these expenses include the design and installation of the exterior
surveillance system for the respective grantee, and are estimated based on a standard
design and install.
20180316 Uses Sources Statement Facade Improvement Grant Program 113
Project Budget Overview
March 14, 2018
Page 2
• Legal Drafting Fees — these expenses are incurred by the representation of Barna, Guzy
& Steffen (BGS) as the legal agent with drafting and preparation of a Grant Agreement,
and if necessary a Lease Agreement.
Lease Agreement — in order for a lease agreement to be legally valid, there needs to be
an offer, acceptance, and consideration. Therefore, the EDA shall, at a minimum,
provide the grantee with consideration in the amount of $1.00.
• Recording of Deeds — this expense include the costs of recording the Lease Agreements,
and are estimated based on the 2018 fee schedule released by Anoka County.
SOURCES STATEMENT
The aforementioned expenses in connection with the Commercial Revitalization Project will be
paid through the EDA Redevelopment Project Fund 408. Each source fund has its own specific
purpose for expenses realized throughout the term length of the project. The EDA
Redevelopment Project Fund 408 will fund the majority of expenses related to property
acquisition and cost contingences, as well as all expenses realized for title insurance, legal
closing costs, recording of deeds, and broker compensation. When and if project expenses
exceed the remaining balance of a source fund, the Capital Improvement - Development Fund
420 will provide an interfund loan to the respective source fund. The following table provides a
breakdown of the amount of funds that will be used from its respective source for project
completion:
SOURCES TOTAL BALANCE
I. EDA Redevelopment Project Fund 408 $ 446,145.00
TOTAL SOURCE FUNDS: $ 446,145.00
114