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HomeMy WebLinkAboutEDA MIN 02-03-14 (2)ECONOMIC DEVELOPMENT AUTHORITY (EDA) MINUTES OF THE MEETING OF FEBRUARY 3, 201.4 IN CONFERENCE ROOM I The meeting was called to order at 6:30 pm by Vice Chair Williams. Members Present: Bruce Nawrocki, Donna Schmitt, Bobby Williams, Tammera Diehm, and Marlaine Szurek, Members Absent: Gary Peterson and Gerry Herringer Staff Present: Scott Clark, Joseph Hogeboom, Shelley Hanson, and Elizabeth Holmbeek (Intern). 2. PLEDGE OF ALLEGIANCE- RECITED, 3. ELECTION OF OFFICERS: Motion by Diehm, seconded by Schmitt, to elect officers as follows: President- Peterson Vice President- Williams Secretary/Treasurer- Nawrocki All ayes, MOTION PASSED, 4. EXECUTIVE SESSION The meeting was adjourned to an Executive Session at 6.34 pm to discuss the Northeast Business Center Negotiations. The meeting re-convened at 7:50 pm. 5. CONSENT ITEMS 1. Approve the Minutes from December 2, 2013, 2. Approve the Financial Report and Payment of Bills for November and December 2013 on Resolution 2014 -01. Questions bv Members: Nawrocki questioned the payment to A.M.E. for $41,000. Clark explained that was the payment for the demolition of Mady's. Nawrocki also questioned a couple of the rebate checks to residents for their home improvement projects. EDA Minutes Page 2 February 3, 2014 Nawrocki then asked about the Area Wide Tax amount shown in the Revenue account of the financials. He wondered about the amounts that have been posted to that account. Clark said he would check with the Finance Director and get more information on this from him. Nawrocki then asked about the amount posted for the Anoka Count), Levy Funds, Clark told him it was the payment to O'Reilly's that was previously approved. Motion by Dielun, seconded by Schmitt, to q aive the reading qfResolution 2014-01, there being an ample amount qfcopies available to the public. All ayes. MOTION PASSED. Motion by Diehm, seconded bj) Schmitt, to approve the consent agemia items as presented, All ayes, M0770N PA&VD. EDA RESOLUTION 2014-01 RESOLUTION OF THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) AT THE FINANCIAL STATEMENT FOR NOVEMBER AND DECEMBER 2013 AND PAYMENT OF BILLS FOR THE MONTHS OF NOVEMBER AND DECEMBER 2013. WHEREAS, the Columbia fleights Economic Development Authority (EDA) is required by Minnesota Statutes Section 469.096, Subd. 9, to prepare a detailed financial statement m�hich 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 statenient 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 2013 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 staternents 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 Coin inissioners of the Columbia I leights 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 EDA Minutes Page 3 February 3, 2014 BE IT FURTHER RESOLVED this resolution is made a part of the permanent records of the COILInibia Heights Econotnic, Development Authority. Passed this 3rd day of February, 2014, MOTION BY: Diehin SECONDED BY: Schmitt AYES: All ayes Vice President Attest By: Shelley 1-tanson, Secretary NEW BUSINESS 6. Habitat for Humanity Proposal-Jefferson St & Huset Pk I-logeboom told members that Habitat for Humanity has requested to meet with the Economic Development Authority (EDA) to discuss the possibility of developing 16 townhoine units at the southwest corner of the intersection of Jefferson Street and Huset Parkway. The proposed development would consist of three buildings. The units that are currently under consideration would be two stories with basements, and would each contain four bedrooms and one-and-a-half bathrooms. The property that Habitat for Humanity is considering for its project, known as Huset Park Outlot 13, is governed by the Huset Park Redevelopment Agreement, The Minimum Improvement definition within the amended June 23, 2008 Redevelopment Agreement required 80 units of senior rental housing. Hogeboom explained that if the proposed project is to move forward, the Agreement must be amended by the EDA prior to the applicant having the ability to initiate the planning approval process. He explained that this is a preliminary discussion and that no action is required tonight. Habitat would have to come back at a later date with a formal request to amend the Agreement and then bring their plans before the Planning & Zoning Commission for approval also, - Chad Dipman, representing Habitat for Humanity, presented his proposal to the EDA. He explained. that Habitat had been looking for property in Anoka County to construct a project of this type. They have applied to Anoka County for HOME funds to help with the project. Ject. Diprnan stated that Habitat is a non-profit that serves families with a household income that falls between 30-60% of the median income. They build the homes and provide the financing also. He told members that they are still negotiating with BNC Bank for the purchase of the property. Dipnian reminded members that since 1994, Habitat has constructed 27 homes in Columbia Heights, and that several. others have been extensively rehabbed. EDA Minutes Page 4 February 3, 2014 Dipman stated that they hope to come to an agreement with BNC Bank as soon as possible. They will then bring their formal request to the EDA to amend the Development Agreement, and then get the Site Plan approvals from Planning & Zoning this summer. Horne funds are awarded in the fall and lie would expect construction to start next spring. Questions /comments from members-. Diehm asked if the offer to the bank is contingent on the approval of HOME funding. Dipman said it was not as BNC Bank would not agree to that. She then asked him if they are open to other design options. lie said that is open for discussion, and that the preliminary drawings he supplied for the meeting most closely resembled what Ryland had already constructed. Clark stated that design and style of the Ryland built townhomes were addressed in the Planning Contract rather than the Development Agreement. He also reviewed the past plans that have been contemplated for that site with members, The Senior Co-op building that was originally proposed probably won't happen as the market has changed for that type of housing and funding for another project has been denied on several attempts. This would be an alternative use for the site that would blend in with what's there and finishoff that portion of the project. Szurek stated that she felt the city should hold out fior what we originally intended for that site. She also said she thought enough Habitat Homes have been built in Columbia Heights, and expressed her dissatisfaction with previous Habitat for Humanity projects as they brought in people from Outside Columbia Heights, Szurek went on to state that she also found the design lacking and that 1.5 bathrooms for a 4 BR townhouse is inadequate. She expressed her opinion that it is too high density for that space as the units could be very crowded with large families. She felt the use for senior housing would be a better option, and that too much has to be changed to accommodate such a project. Nawrocki agreed with Szurek. Diehm stated that we can't make a decision on who might live in the units, and that the job of the EDA is to approve a concept only. Diehin said she thinks Habitat does a good job to help low incorne families and that senior housing probably isn't an option for that site. Schmitt she would like to see more variety in the style options, and agreed more bathroom space was probably needed, but she felt it was a nice solution for that site. She also thinks the fact that the potential owners participate in the construction, take classes about. inainteriance of owning a home, and their financial ability is thoroughly checked out, are all pluses for the Community. Schmitt said it doesn't matter where the people come from and that if they are buying their home, they are making an investment in the community. Williams asked how big this parcel was. Hogeboom stated it was 1.32 acres in size. EDA Minutes Page 5 February 3, 2014 Diehm asked Dipman if Habitat had contingent plans if the county funding doesn't get approved. She wanted to know if they would still purchase the site and build on it. Ile told members that Habitat would be able to move ahead with the project and they do not sit on property long. Dipman explained the process to members of how owners are chosen. Extensive docurnentation is obtained from the applicants to ensure they meet income requirements, sweat equity is mandatory, they are interviewed by a committee and Habitat does an assessment of their current housing, and then Habitat selects qualified families. Once they are placed in the qualified pool, lists of available homes are sent to the families every month or so. They can then choose to check them out and decide if they are interested in them. If multiple families are interested in the same property, then the committee makes the decision of which family gets the house based on their in-irnediate needs. Dipman explained that there are restrictions written into the mortgages about renting out the property to anyone and that if they decide to sell the home, Habitat has first right to re-purchase. Clark reminded members that the Homeowner's Association has a 5% cap on the amount of rental units for that development and they would be a part of that overall association. The owners of Habitat's proposed townhomes would also be required to pay Association dues. Nawrocki stated that out of the 180 communities in the metro area, Columbia Heights has the loNvest household income. He thinks we should be concentrating on housing that attracts higher income people rather than focusing on more affordable housing units that bring in people with marginal income levels. Dipman said lie would keep staff apprised of the negotiations with BNC Batik and bring any formal requests to the City at a later date. 7. Scattered Site Pro zrain- Additional Home Models In May, 2013, the Economic Development Authority (EDA) approved the Scattered Site I lousing Program's Purchase and Redevelopment Agreement. This document is an agreement between the EDA and Timbercraft Horries, A Purchase and Redevelopment Agreement must be completed for the sale of each individual single family residential lot. The Agreement determines the sales price, the model home type and completion date. Two home floor plan models are currently offered as part of the Scattered Site Housing Program. The models are listed as an attachment to the Purchase and Redevelopment Agreement. Peter Heryla of RE/MAX Synergy, the City's contracted selling real estate agent, has requested that the EDA consider adding two additional models to the list of acceptable floor plans for the Scattered Site Housing Program. One of the proposed new floor plan models is a rambler and the other is a 1.5 story model, EDA Minutes Page 6 February 3, 2014 Copiesof the new proposed floor plans (Labeled "Model #3" and "Model 44") are attached. Mr. Heryla was present to provide an update of the Scattered Site Housing Program, as well as to present the new proposed model floor plans. If the EDA chooses to offer the new model floor plans, then it must make a motion to adopt them into the Purchase and Redevelopment Agreement with Timbercraft Homes. Staff recommends the adoption of the two additional model home floor plans into the Purchase and Redevelopment Agreement with Timbercraft Homes as part of the Scattered Site Housing Program. Questions from members: Members liked the alternative design options. Heryla said they are not presently targeted for any specific address, but that it offers potential buyers more options to choose from. He said they have heard some feedback about people liking a one-level, rambler style with a basement over a. two story design with a lot of steps. He said they still meet the criteria set by the Board with 3 bedrooms and 2 bathrooms and having enough square footage. Nawrocki stated he thinks this is like taking a step backwards and that a lot of time was spent approving the first two designs and we should stick with those options. Clark noted that by adding two more designs, it allows for more variety in styles, and a "cookie cutter" likeness of the houses is not prominent. Motion by Diehm, seconded ky S'chmitt, move to adopt additionalfloor plan models (Model 93 and 11odel 44) into the Purchase and Redevelopment Agreement itilh Timbercrq1t Mores. Ayes- Williams, Diehm, Schmitt, and Szurek. Nay-Nawrocki MOTION TASSED. 8. 3842'l",Yler St NE As a required component of the Scattered Site Housing Program, buyers of single family lots must utilize a model floor plan that has been approved by the Economic Development Authority (EDA). If a potential buyer wishes to construct an alternate model., the model must be approved by the EDA. A potential buyer for the property located at 3842 Tyler Street has presented the EDA with a customized floor plan for a proposed home. The proposed craftsinan-style house is two stories and would contain three bedrooms. The proposed home would have an unfinished basement that EDA Minutes Page 7 February 4, 2014 would offer the potential to add an additional bedroom in the future. It will also have an attached garage in the rear. The subject property was purchased by the City Of Columbia Heights on July 27, 2010 for $39,900. Peter Heryla of RE/MAX Synergy, the City's contracted selling real estate agent, was present to discuss this request. Staff believes that the proposed custom home plan is similar in style to the approved model plans, and feels that the home would make a welcorne addition to the 3800 block of Tyler Street. He explained that the buyer is an architect who designed the home himself. It meets all the criteria, is actually larger than the minimum required, and will be valued at approximately $280,000. Staff recommends the approval of the customized floor plans as presented for the property located at 3842 Tyler Street, Questions from members: Nawrocki questioned who currently owns the lot. Clark reminded him that the EDA owns the property and that the sale of` the property has already been approved by the Board as part of the entire scattered lot program. The price point of the lot is not being considered at this time. The other members thought the house would be a nice addition to the neighborhood and liked the design and size. 1161ion kv Diehm, seconded by ��zurek, to approve the cus to in ize dfloor plans as presented,ft.)r the prolmrty located at 3842 Tyler 5Ireel. Ayes- Williams, Diehm, &-hmitt, and&urek. Nay- Na-�vrocki, M0770N PA,5VD. 9. Administrative Reports- 1) EDP, Retreat Follow Up Discussion Clark reported that staff will come back at the march meeting with a formal report regarding the goals, strategies, and actions to be taken as a. result of the feedback received at the Retreat, Nawrocki went on record as opposing the hiring of a PR consultant to re-brand or improve the image of Columbia Heights. EDA Minutes Page 8 February 3, 2014 2) North Metro Home and Garden Expo I-logeboom has been in contact with the four cities who are currently involved in the North Metro Home and Garden Expo. They recently held their annual show, but have invited Columbia Heights to participate in the one to be held in 2015. Dielun and the others thought this would be a good thing for the city to participate in. 3) Small Business Outreach. Eff'orts- Clark told members that a Seminar was held Saturday, January 2.5, 2014, at the Islamic Center in Fridley. This Business Seminar provided information on how to open a business in Minnesota. It was a cooperative effort with the Chamber of Commerce, the City of Fridley, Legal Corp, and other various organizations. The goal was to provide information on how to obtain legal advice, how to write a business plan, possible funding sources for small businesses, and accessing other services they may need. It also covered the need to obtain the proper permits and licenses that may be needed to operate. He said it was not a large turn-out, but it was a good start, and that the), would like to see another one held. Clark, also told members they closed on the property at 1301-03 Circle Terrace Blvd today and that the closing for Reservoir Blvd should happen in the next couple of weeks. Clark then advised members that there is someone looking for 30,000-40,000 sf of space in order to open another Charter School. He told members that one of the issues is that a 1C -12 school cannot be located in the CBD or GB Districts so it limits where they can be located. Any questions that members receive regarding this should be directed to staff. It Would require an Ordinance Amendment and the City Council would have to decide if they wish to set that precedence. The next regular EDA meeting will be Monday, March 3, 2,014 at City Hall at 6:30 pin. The meeting was adjourned at 9:00 Pin. Respectfully submitted, Shelley Hanson Secretary