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HomeMy WebLinkAboutEDA MIN 05-06-2013ECONOMIC DEVELOPMENT AUTHORITY (EDA) MINUTES OF THE MEETING OF MAY 6, 2013 IN CONFERENCE ROOM I The meeting was called to order at 6:30 pm by Chair Peterson. Members Present: Bruce Nawrocki, Gary Peterson, Donna Schmitt,'Farran.era Diefim., Marlaine Szurek, and Bobby Williams. Members Absent: Gerry Herringer Staff Present: Walt Felist, Scott Clark, Sheila Cartney, and Shelley Hanson. 2. PLEDGE OF ALLEGIANCE- RECITED 3. CONSENT ITEMS 1. Approve the Minutes from April 1, 2013. 2. Approve the Financial Report and Payment of Bills for March 2013 on Resolution 2013-04, -3 -C Flank Resolution 2013-02. Approve f luset Park Fifth Amendment BN B on Questions b y Members: Nawrocki asked how long the development process will go on. Clark responded that the development agreement will remain in effect until it is developed. Fle went on to tell members that three developers have shown some interest in the remaining sites and BNC is reviewing the options to see: which offer they may bring to the City for consideration. Depending on which option they choose, the Board may have to act on approving a new land use and altering the agreement currently in place. Clark stated the developers that are currently interested have no interest in developing any comn-iercial/retail space that was part of the original concept. Nawrocki asked what happens if they don't develop it as commercial which would bring in higher tax dollars. Clark stated they would then get less in tax increment monies. Motion by Williams, seconded by Schinilt, to ii aive the reading of Resolutions 2013-04 and 201'3-02, there being an any)1e aniount ofcol�ies available to the public. All ayes. 1[0170,V 1-'A,R�ED Motion by 47illiams, seconded b.y&hinia, to ql3j)rove the consent agencla items cis presemed A 11 qjes. M0170N PA,',S'F.D. FDA Minutes, Page 2 May 6, 2013 EDA RESOLUTION 2013-04 RESOLUTION OF THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) APPROVING THE FINANCIAL STATEMENT FOR MARCH 2013 AND PAYMENT OF BILLS FOR THE MONTH OF MARCH 2013. WHEREAS, the Columbia. Heights Economic Development Authority (EDA) is required by Minnesota Statutes Section 469.096, Sub& 9, to prepare a detailed financial statement which shows all receipts and disbursements, their nature, the money oil hand, the purposes to which the money on hand is to be applied, tile EDA's credits and assets and its Outstanding liabilities; and WHEREAS, said Statute also requires the FDA 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 March 2013 has been reviewed by the EDA Commission; and WHEREAS, the FDA has examined tile financial statements and Finds them to be acceptable as to both form and accuracy; and WHEREAS, the FDA 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 rnethod 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 runds; and BE IT FURTHER RESOLVED this resolution is made a part of the permanent records of the Columbia Heights Economic Development Authority. Passed this 6th Day of May 2013 COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY INW14111a 1101010OW411 RESOLUTION APPROVING A FIFTH AMENDMENT TO AMENDED AND RESTATED CONTRACT' FOR PRIVATE REDEVELOPMENT BETWEEN THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY, THE CITY OF COLUMBIA HEIGHTS AND BNC NATIONAL BANK AS SUCCESSOR TO HUSET PARK DEVELOPMENT CORPORATION EDA Minutes Page 3 May 6, 20)1.3 BE IT RESOLVED By the Board of Commissioners ("Board") of the Columbia Heights Economic Development Authority ("Authority") ,as follows: Section 1. Recitals. 1.01. The Authority has determined a need to exercise the powers of a housing and redevelopment authority, pursuant to Minnesota Statutes, Sections. 469.090 to 469.108 ("EDA Act"), and is currently administering the Downtown CBD Redevelopment Project ("Redevelopment Project") pursuant to Minnesota Statutes, Sections 469.001 to 469.047 ("I RA Act"). 1.02. Ilie Authority, the City Of Columbia Heights ("City") and I-luset Park Development Corporation (the "Redeveloper") entered into a into An Amended and Restated Contract for Private Redevelopment dated as of August 1, 2007, as amended by a First Amendment thereto dated June 16, 2008 and a Second Amendment thereto dated as of February 9, 2009 and a Third Amendment Thereto dated as of September 28, 2009 and a Fourth Amendment dated as of November 22, 2011 (the " Contract" ), setting forth the terms and conditions of redevelopment of certain property within the Redevelopment Proiect, generally located east of University Avenue and south and west of Huset Park. 1.03. BNC National Bank (the "Lender") is the Successor in interest to Redeveloper under the Contract. 1.04. The Lender has requested the Authority and City to modify the Contract in certain respects, and the Authority has caused to be prepared a Fifth Amendment to Amended and Restated Contract for Private Redevelopment between the Authority, City and Lender (the "Fifth Amendment"). 1.05. The Board has reviewed the Fifth Amendment and finds that the execution thereof and perfon-nance of the Authority's obligations thereunder are in the best interest of the City and its residents. Section 2. AuIlIgri1y—Appr qval. Further Procedings, 2.01, The Fifth 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 documents 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 Fifth Arnendnient and any documents referenced therein requiring execution by the Authority, and to carry out, on behalf of the Authority its obligations thereunder. Approved by the Board of Commissioners of the Columbia Heights Economic Development Authority this 6th day of May, 2013. Gary Peterson, President ATTEST: Shelley Hanson, Secretary EDA Minutes Page 4 May 6, 2013 PUBLIC HEARING 4. Consider Sale of 4502 Washington Street Cartney told members that Cory Mattson owner of 4500 Washington Street has proposed to purchase 4502 Washington Street from the EDA in order to combine the lots together. The EDA held a ineeting on April 1, 2013 to discuss the purchase and negotiated a purchase price of $15,000 with Mattson and the majority of the FDA. At the rnecting the EDA called for a public hearing for the potential sale. Mattson's backyard abuts the subject lot, he proposes to expand his backyard with this lot and combine the lots into one lot. The EDA purchased the 4502 Washington Street property in 2009 as part of the Scattered Site program for $35,000 the lot is 5,160 square feet. Overall the EDA has spent $46,086 on this property including the purchase, demo prep and demolition. A public hearing is required when the EDA sells property; the public hearing has been advertised for May 6, 2013. At the public hearing the EDA can discuss this item further and anyone from the public is able to speak to the item. Staff recommends approving the sale to Cory Mattson and approving the purchase and redevelopment agreement, which requires the lots to be combined. Questions/comments from members: Nawrocki said he voted against this at the last meeting. Since then he has changed his mind and would now support this offer. Ile said that Mr. Mattson is a Volunteer Fire Fighter for our community and as such, lie thinks it is in the best interest of the City to keep him in the City. It is important to keep young families, like the Mattsons, in the City especially when they contribute in such a positive manner. Williams stated he liked Mr. Mattson and appreciates his contributions, to the City, but that he cannot Support this proposal as it is too big of a loss to the City. lie feels that it sets a precedent. He would rather see a house built on the property and have the benefit of the added tax base which is why these lots were purchased in the first place. He also sees nothing wrong with small, well-kept houses on small lots. In other parts of the country this type of housing is very much in demand. Schmitt said this offer is more than we are getting for the other lots if action. is taken on the scattered site lots that will be considered later in the meeting. She stated that a few other lots in the area are bigger and she sees this as a benefit to the neighborhood. Diehm fell that the Board should make their decision on the offer, not on who the person is, or that he is affiliated with the City in some way. Szurek agreed with this statement. EDA Minutes Page 5 May 6, 2013 Public Hearing Opened, Phil Epstein, 60145"' Avenue, questioned the lot size. fie didn't believe it is a 40 ft lot. Ile said he has an issue with how Mr. Mattson cares for his current lawn, and wonders how he will care for additional property. However,, he still believes it will make the property tore attractive to have a larger yard and will generally be an improvement for the neighborhood. It is better than constructing another house on a small lot that would probably end up as rental and there is too much rental in that area now. Ms. Seebach, 4503 Washin&Aon St. stated that whether or not lie is a firefighter, he's young and we need more young people in the community. She said there is too much rental in the neighborhood and too many houses craturned onto small lots. She is in favor of Mattson purchasing the property. Cory Geng, 4501 "7`1 St wants to see Mattson stay in the neighborhood. He watched Mattson rebuild on his lot and he told the members that Mattson has been mowing the lot next door since it became vacant. Geng said Mattson is a good neighbor and thinks the additional green space will improve the look of the neighborhood more than another house crowded in. John Seebach, 4503 Washington St lives across the street. He said he likes having the property vacant and is opposed to having another HUD house or rental property built on it. Ile wants Mattson to have this property as additional yard space. Public Hearing Closed. Motion by Nait,rocki, seconded lZy Williams, to waive the reading of 'Resolution 2013-05, there being, ample copies available to the 1-ndblie. All 4rye•. W0T.10NTA&VD. Alo,tion �y Naivrocki, seconded by Diehm, to ad6j)t Resolution 2013-05, aly)roving a Imi-•hase and redevelopment agreement (including the sale of land) between the Columbia lleiqhts E'conolnic Develolanient Flu horit3r and( I ore.yMattson. Roll Calk At es-&urek, SChmilt, Diehm, Nawrocki, and Peterson A74tys-Williams A10TIONPA&VD. 1 11 Wel lima 111 li's vill RESOLUTION NO. 2013-05 RESOLUTION APPROVING A PURCHASE AND REDEVELOPMENT AGREEMENT (INCLUDING THE SALE OF LAND) BETWEEN THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY AND COREY MATTSON BE IT RESOLVED By the Board of Coini-nissioners ("Board") of the COILInibia, heights Economic Development Authority ("Authority") as follows: Section 1, Recitals. 1,01. The Authority has determined a need to exercise the powers of a housing and redevelopment authority, pursuant to Minnesota Statutes, Sections. 4,69.090 to 469'.1 hS ("EDA Act"). EDA Mintites Page 6 May 6, 201, 3 1.02. The Authority and Corey Mattson (tile "Redeveloper") have proposed to enter into a PURCHASE AND REDEVELOPMENT AGREEMENT (the "Conti-act"), setting forth the terms and conditions of sale and redevelopment of certain property owned by the Authority located at 4502 Washington Avenue NE and described as Lot 14, Block 4, Gillette's Annex to Columbia Heights, Anoka County, Minnesota (the "Redevelopment Property"). 1.03. Pursuant to the Contract, the Redeveloper will acquire the Redevelopment Property and will combine the Redevelopment Property with his existing property located at 4500 Washington Avenue NE into a single lot for single family residential purposes and related single family accessory uses, consistent with the City of Columbia Heights minor subdivision process, and subject further to the City"s zoning and building codes and policies (the *"Lot Combination") (upon conipletion the "Combined Property"). 1.04, The activities of the Authority under the Contract implement OUSinC, " goals oil' the City's :n Comprehensive Plan: "Promote and preserve the single-family housing stock as the community's strongest asset," and `'Provide a variety of life-cycle housing opportunities within the community." 1.05. The Board has reviewed the Contract and finds that the execution thereof and performance of the Authority's obligations thereunder further the goals of the Comprehensive Plan and are in the best interests of time City and its residents. Section 2. Authority Approy,.11Further Proceedin s. 2.01. The Contract as presented to the Board, including the sale of the Redevelopment Property described therein, 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 documents by SLICII 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 Contract and any documents referenced therein requiring execution by the Authority, and to carry Out, 011 behalf of the Authority its obligations thereunder. 2.03. Authority and City staff are authorized and directed to take all actions to implement the Contract. Approved by the Board of Commissioners of the Columbia Heights Economic Development Authority this 6"' day of May, 2013. President ATTEST� Secretary EDA Mijiutes Page 7 May 6,2013 NEW BUSINESS 5. Scattered Site Contract Cartney reminded members that at the April EDA meeting the Commission met with Pete Heryla and John Rockwell of Remax and a representative of Timbercraft Homes. At this meeting lot prices, housing styles and contracts were discussed. Staff explained that half the lots were shovel ready while the other half still had to have the water lines redone to meet today's standard of one inch. Thribercraft Homes also presented two concept drawings of homes that could be built on the scattered site lots with the idea that the plan for 4303 ) Reservoir would come back to the EDA for approval. At the meeting tonight the EDA is presented with the following: 1. R,emax Synergy listing Agreement. This document is an agreement with the EDA and Pete Heryla and John Rockwell to list the lots for sale at a sales price of $7,500 each with the exception of 4303) Reservoir Blvd, which will be $3 )5,000. The lots would be sold "as is" and the price reduction reflects that some of the lots need additional site work. There is also a clause in this listing agreement that after one year if the house sales increase the lot listing prices may increase. 2. Purchase and Redevelopment Agreement. This document is an agreement with the ED�A and Timbercraft Homes. A Purchase and Redevelopment Agreement will be filled out for the sale of each lot. This agreement determines the sales price, the model home type and completion date. 3. Model Homes. Tirnbercraft Homes is providing 2 models for buyers to choose from. If tile EDA approves the models tonight then the Model homes become part of the Purchase and Redevelopment Agreement and will be approved as part of the building permit and will not need additional EDA approval. The only lot that will need additional approval is 4303 Reservoir Blvd. Cartney pointed out that the models proposed are smaller than our original guidelines and also do not meet the requirements in the City Code. She reviewed the square f6otages, of the proposed homes with the members. Clark told members that Mr. Herringer had called him and wanted to express his opinion on the new proposal. He thinks if the proposal is accepted that the builder should make a good faith effort to choose one of the lots that need some additional site work for their first home. Staff recommends approval of the agreements as presented. Questions from men -bees: Nawrocki asked if the City would net out $ 1 0,000/lot or if expenses would be taken out of that. Cartney said the $10,000/lot figure was the figure discussed at the last meeting. Since that time the builder came back with $7,500/lot across the board as some need additional work and this price reduction would cover those additional fees. She went on to say that commission and miscellaneous fees would come out of that amount resulting in an approximate cash out of $5,705 per lot. NaNvrocki then asked how long from the time the builder purchases the lot that construction has to start. Cartney said that hadn't EDA Minutes Page 8 May 6, 2013 been discussed but a clause could be written in. The Builder suggested 60 days from the date of closing on the lot. Sclu-nitt, questioned the layout of the homes proposed. She asked if a buyer wanted a more open design if that could be accommodated. The Builder said they would be flexible as long as the minimum requirements, are still being met. He asked if there would be a staff point person that could approve such changes or if each change would have to be approved by the Board. The Board said staff could approve changes as long as the minimum requirements are net. Diehm questioned whether we would need to change the City Ordinance or if they would have to apply for a variance. Dichin also stated she wanted to review the Purchase and Development Agreement before voting on it and that it wasn't included in the packet. She went on to say that the proposed plan is small, but acceptable because it does meet the 3 Bedroom requirement. Williams said the goal is to improve our housing stock and this program does that so he supports the agreements. The minimum square footage for the footprint is currently 960 sf according to our City Ordinance. Cartney said an amendment to the Ordinance could be made to allow a reduction of this requirement for small lots. The timetable to accomplish this was discussed. It could go before the Planning & Zoning Commission in June and then to the Council. The option to grant a variance for the first lot was discussed so the builder could start construction if the agreements are all approved to allow time to make the amendment to the Ordinance, The City will have to be the requesting party since the Builder will not own the property in time for making the request for the June meeting. Dichm. suggested addressing the minimum finished space of the house rather than the footprint size. Diehm then Suggested we set a date for a special meeting to approve the final documents once she has had a chance to review them and to add the clause that construction would begin within 60 days of the closing. Motion by Diehm, seconded ley Peterson, to scheclule asl7ecial meeting fiorAlondqy, 41fay 13"' al, 6:45 j.)m prior to the regular City Council ineeting All ajes. MOTION PA&VD. 6. Administrative Report There Nvas nothing further to discuss. The next regular EDA meeting will be Monday, June 3.1 2013 ) at City Hall at 6:30 pm. The meeting was adjourned at 7:15 pm. Respectfully submitted, Shelley Hanson Secretary