Loading...
HomeMy WebLinkAbout10-24-2016Mayor Gary L. Peterson Councilmembers Robert A. Williams Bruce Nawrocki Donna Schmitt John Murzyn, Jr. City Manager Walter R. Fehst City of Columbia Heights 590 40th Avenue NE, Columbia Heights, MN 55421-3878 (763) 706-3600 TDD (763) 706-3692 Visit our website at: www.columbiaheightsmn.gov The following is the agenda for the regular meeting of the City Council to be held at 7:00 PM on Monday, October 24, 2016 in the City Council Chambers, City Hall, 590 40th Avenue N.E., Columbia Heights, Minnesota. The City of Columbia Heights does not discriminate on the basis of disability in the admission or access to, or treatment or employment in, its services, programs, or activities. Upon request, accommodation will be provided to allow individuals with disabilities to participate in all City of Columbia Heights' services, programs, and activities. Auxiliary aids for disabled persons are available upon request when the r equest is made at least 96 hours in advance. Please call the City Clerk at 763-706-3611, to make arrangements. (TDD/706-3692 for deaf or hearing impaired only.) 1.CALL TO ORDER 2.ROLL CALL 3.INVOCATION- Invocation provided by Dan Thompson, Heights Church 4.PLEDGE OF ALLEGIANCE 5.ADDITIONS/DELETIONS TO MEETING AGENDA (The Council, upon majority vote of its members, may make additions and deletions to the agenda. These may be items brought to the attention of the Council under the Citizen Forum or items submitted after the agenda preparation deadline.) 6.PROCLAMATIONS, PRESENTATIONS, RECOGNITION, ANNOUNCEMENTS, GUESTS A. Presentation from Barb Goodwin, AAC 7.CONSENT AGENDA (These items are considered to be routine by the City Council and will be enacted as part of the Consent Agenda by one motion. Items removed from consent agenda approval will be taken up as the next order of business.) A. Approve Minutes of the City Council MOTION: Move to approve the minutes of the City Council meeting of October 10, 2016 B. Resolution 2016-103: Appropriate a project budget in Redevelopment Fund 420 for the costs to hold 820 40th Avenue NE until sold. MOTION: Move to waive the reading of Resolution 2016-103, there being ample copies available to the public. MOTION: Move to adopt Resolution 2016-103, being a resolution to appropriate a project budget in Redevelopment Fund 420 for the costs to hold 820 40th Avenue NE until sold. C. Adopt Resolution 2016-101 accepting the Feasibility Report for Zone 1 Street Seal Coat Project and ordering the Public Improvement Hearing, City Project No. 1601 1 p 5 p 6 p 10 p 12 City of Columbia Heights October 24, 2016 City Council Agenda Page 2 MOTION: Move to waive the reading of Resolution 2016-101, there being ample copies available to the public. MOTION Move to adopt Resolution 2016-101, being a resolution accepting the Feasibility Report for Zone 1 Street Seal Coat, City Project No. 1601, and ordering the Public Improvement Hearing beginning at 7:00 p.m. on December 5, 2016. D. Final Payment For Zone 7b Seal Coat and City Parking Lot Seal Coat or Fog Seal MOTION: Move to accept the work for 2016 Seal Coat and Fog Seal, City Project No. 1501 (Zone 7B) and Project No. 1401 (Parking Lot Preservation), and authorize final payment of $5,310.00 to Pearson Bros, Inc. of Hanover, Minnesota. E. Award of Professional Engineering Services for Central Avenue Safety Improvements, Project 1608 MOTION: Move to award the Central Avenue Safety Improvements, Project 1608, to the consulting engineering firm of SEH Inc. based upon their qualified, responsible proposal for a cost not -to-exceed $216,500 appropriated from Fund 402-51608-3050. F. Approve Resolution 2016-102 authorizing execution of an I&I Grant Agreement MOTION: Move to waive the reading of Resolution 2016-102, there being ample copies available to the public. MOTION: Move to approve Resolution 2016-102 authorizing the City of Columbia Heights to execute an agreement with MCES for reimbursement of I/I reduction costs in the amount of $25,000, and furthermore, to authorize the City Engineer to act as the designated representative. G. Approval of a Grant Application to DEED for Development of the Legends of Columbia Heights MOTION: Move to waive the reading of Resolution 2016-96, there being ample copies available to the public. MOTION: Move to adopt Resolution 2016-96, a resolution authorizing the approval of a grant application to the Minnesota Department of Employment and Economic Development Contamination Clean-up and Investigation Grant Program for the development of the Legends of Columbia Heights. H. Approval of a Grant Application to Met Council MOTION: Move to waive the reading of Resolution 2016-98, there being ample copies available to the public. MOTION: Move to adopt Resolution 2016-98, a resolution authorizing the approval of a grant application to the Metropolitan Council Livable Communities Tax Base Revitalization Account. I. Adopt Resolution 2016-95, Adopting Optional Appendices of the State Fire Code MOTION: Move to waive the reading of Resolution 2016-95, there being ample copies available to the public. MOTION: Move to adopt Resolution 2016-95, adopting optional appendices of the Minnesota State Fire Code. J. Approve Transfer of PSB Range Rental Fees MOTION: Move to transfer $8,600 received in Public Safety Building Range rental fees and $393 received from recycling of brass shell casings (for a total of $8,993) as follows: $7,045 to the Police Department’s Building Repair and Maintenance Services line item 101.42100.4020 to be used for range maintenance provided by DC Management and Environmental Services, and $1,948 to the Police Department’s Supplies line item 101.42100.2171 to be used towards the purchase of hepa filters to be used in the range. 2 p 20 p 22 p 34 p 38 p 58 p 79 p 81 City of Columbia Heights October 24, 2016 City Council Agenda Page 3 K. Professional services agreement for the design and construction administration of the Circle Terrace park multi-purpose building MOTION: Move to enter into an agreement for the design and construction administration of the Circle Terrace Park multi-purpose building with the consulting engineering firm of ISG based upon their qualified, responsible proposal for a cost not-to-exceed $25,500 appropriated from Fund 412-51609-3050. L. Approve Transfer of Funds MOTION: The $12,180.75 received for various traffic direction and security details at CH schools, and the $6,000 received from Anoka County as partial reimbursement for OT for our officer assigned to the Anoka Hennepin Drug Task Force, and the $810 received from Anoka County as reimbursement for detox transports, and the $10,188.04 received from Coon Rapids for our participation in the Toward Zero Death traffic enforcement, and the $2,845 received for Anoka County Auto Theft grant reimbursement be transferred to line 1020, Overtime. The total is $32,023.79. M. Consideration of approval of attached list of rental housing applications . MOTION: Move to approve the items listed for rental housing license applications for October 24, 2016, in that they have met the requirements of the Property Maintenance Code. N. Approve Business License Applications MOTION: Move to approve the items as listed on the business license agenda for October 24, 2016. O. Payment of Bills MOTION: Move that in accordance with Minnesota Statute 412.271, subd. 8, the City Council has received the list of claims paid covering check number 163180 through 163359 in the amount of $ 963,877.42. MOTION: Move to approve the Consent Agenda items. 8.PUBLIC HEARINGS A. Consideration of Declaration of a nuisance and abatement of violations within the City of Columbia Heights is requested regarding the property at 4309 Main Street NE for failure to meet the requirements of the Residential Maintenance Code. MOTION: Move to close the public hearing and to waive the reading of Resolution Number 2016-91, there being ample copies available to the public. MOTION: Move to adopt Resolution Number 2016-91, being resolution of the City Council of the City of Columbia Heights declaring the property listed a nuisance and approving the abatement of violations from the property pursuant to City Code section 8.206. B. Establishment of the Central Valu Center TIF District MOTION: Move to waive the reading of Resolution 2016-97, there being ample copies available to the public. MOTION: Move to adopt Resolution 2016-97, a resolution authorizing a modification to the Redevelopment Plan for the Downtown Central Business Redevelopment Project; and Establishing the Central Valu Center Tax Increment Financing District Therein and Adoption of a Tax Increment Financing Plan Therefor. MOTION: Move to waive the reading of Resolution 2016-100, there being ample copies available to the public. 3 p 82 p 84 p 85 p 91 p 93 p 101 p 104 City of Columbia Heights October 24, 2016 City Council Agenda Page 4 MOTION: Move to adopt Resolution 2016-100, a resolution authorizing internal loan for advance of public redevelopment costs in connection with Central Valu Center Tax Increment Financing Distr ict. 9.ITEMS FOR CONSIDERATION A. Other Ordinances and Resolutions a.Part Time Temporary Library Employee Wage Adjustment MOTION: Move to waive the reading of Resolution 2016-104, there being ample copies available to the public. MOTION: Move to adopt Resolution 2016-104, being a resolution setting part time temporary library employee wages effective November 1, 2016. B. Bid Considerations C. New Business and Reports A. Title: 2018 Comprehensive Plan Authorization MOTION: Waive the reading of Resolution No. 2016-99, there being ample copies available to the public. MOTION: Move to approve Resolution No. 2016-99, being Resolution authorizing commencing the 2018 Comprehensive Plan revision process, and appropriated a project budget of no more than $100,000 from the Special Projects Fund 226 to be devoted to the project. 10.ADMINISTRATIVE REPORTS 11.CITIZENS FORUM 12.ADJOURNMENT ________________________________ Walt Fehst, City Manager 4 p 201 p 204 AGENDA SECTION PROCLAMATIONS ITEM NO. MEETING DATE OCTOBER 24, 2016 CITY OF COLUMBIA HEIGHTS - COUNCIL LETTER ITEM: All-America City Award Recognition DEPARTMENT: Community Development CITY MANAGER’S APPROVAL: BY/DATE: Joe Hogeboom/ 10-04-16 BY/DATE: BACKGROUND: State Senator Barb Goodwin will present a Resolution of the State Senate to the City Council that recognizes the City of Columbia Heights’ achievement of obtaining an All-America City Award. In addition, Congressman Keith Ellison has recognized the City for the All-America City Award, and has provided the City with a Congressional Record that attests to the recognition. City Manager Walt Fehst will present the Congressional Record to the City Council. 5 OFFICIAL PROCEEDINGS CITY OF COLUMBIA HEIGHTS CITY COUNCIL MEETING OCTOBER 10, 2016 The following are the minutes for the regular meeting of the City Council held at 7:00 PM on Monday October 10, 2016 in the City Council Chambers, City Hall, 590 40th Avenue N.E., Columbia Heights, Minnesota 1. CALL TO ORDER Mayor Peterson called the meeting to order at 7:02 p.m. 2. ROLL CALL Present: Mayor Peterson, Councilmembers Nawrocki, Williams, Schmitt and Murzyn, Jr. Also Present: Walt Fehst; City Manager, Jim Hoeft; City Attorney, Keith Dahl; Economic Development Manager and Katie Bruno; City Clerk/Council Secretary 3. INVOCATION Invocation provided by Bob Lyndes, Crest View Senior Community 4. PLEDGE OF ALLEGIANCE 5. ADDITIONS/DELETIONS TO MEETING AGENDA (The Council, upon majority vote of its members, may make additions and deletions to the agenda. These may be items brought to the attention of the Council under the Citizen Forum or items submitted after the agenda preparation deadline.) 6. PROCLAMATIONS, PRESENTATIONS, RECOGNITION, ANNOUNCEMENTS, GUESTS Mayor Peterson announced the second annual Heights Art Fest will take place on October 26th from 6:00-9:00 PM at Murzyn Hall. A. Polish American Month proclamation Mayor Peterson read the proclamation in its entirety, and presented it to Gloria Bergstrom. John Bieniek, a member of Sister Cities presented the City with two police caps received from the Lomianke Police Department. The caps are to be given to the Columbia Heights Police Department and the Anoka County Sherriff’s office. 7. CONSENT AGENDA (These items are considered to be routine by the City Council and will be enacted as part of the Consent Agenda by one motion. Items removed from consent agenda approval will be taken up as the next order of business.) A. Approve Minutes of the City Council MOTION: Move to approve the minutes of the City Council meeting of September 26, 2016 MOTION: Move to approve the minutes of the City Council Assessment Hearing of October 3, 2016 B. Accept Board and Commission Meeting Minutes MOTION: Move to accept the minutes of the Planning Commission meeting of September 6, 2016 MOTION: Move to accept the minutes of the EDA Commission meeting of September 6, 2016 6 City Council Minutes October 10, 2016 Page 2 of 4 MOTION: Move to accept the min utes of the Traffic Commission meeting of August 1, 2016 MOTION: Move to accept the minutes of the Library Board meeting of September 7, 2016 C. Approve Business License Applications MOTION: Move to approve the items as listed on the business license ag enda for October 10, 2016. D. Payment of Bills. *Removed for discussion Councilmember Schmitt requested item D be removed from the Consent Agenda for discussion: Motion by Councilmember Nawrocki, seconded by Councilmember Murzyn, Jr. to approve the consent agenda items A, B, and C . All Ayes, Motion Carried. Councilmember Schmitt requested the following item be removed from the Consent Agenda for discussion: D. Payment of Bills Councilmember Schmitt questioned a payment of $15,159.78 to the Westin Hotel in Denver, CO related to the All America City trip, noting the item was not presented to the council for prior approval as required for payments exceeding $15,000.00. Mayor Peterson explained the payment was reimbursed by the Columbia Heights Activity Fund. Councilmember Schmitt requested the City Attorney explain the policy. City Attorney James Hoeft stated he would look into the issue to determine if a violation to the City Charter occurred. Hoeft stated the council can ratify the action of the City Manager authorizing the check in excess of 15,000. Motion by Councilmember Williams, seconded by Councilmember Murzyn, Jr. to ratify the expenditure of $15,159. 78 and approve the payment. Councilmember Schmitt suggested the City Manager could have called an emergency meeting to approve the expenditure. City Manager Fehst explained the hotel invoice was paid by the City because of our tax exempt status, with the intent to be reimbursed from the Activity Fund; noting this saved the community approximately $2,500.00. Manager Fehst clarified there were a number of reductions to that initial amount of $15,159.78, the actual cost was $14,234.00. Councilmember Schmitt noted there were additional costs including shirts, flags, window clings and banners. Manager Fehst clarified these expenses occurred after the award was received and will likely continue in order to promote the good things happening in the City. Manager Fehst commented on the recent Columbia Heights High School newspaper, with a front page story showcasing the All America City Award. Councilmember Schmitt indicated that her objection is the council did not have the opportunity to vote on the item, as it was never brought to a meeting for consideration. Mayor Peterson indicated that this was brought up at many meeting and worksessions, and it seemed that the council as well as the community was supportive. Councilmember Nawrocki indicated that the All America City award has benefited the community, and called the question, seconded by Councilmember Williams. All Ayes, Motion Carried . 7 City Council Minutes October 10, 2016 Page 3 of 4 Motion by Councilmember Williams, seconded by Councilmember Murzyn, Jr. to ratify the expenditure of $15,159. 78 and approve the payment. 4 Ayes, 1 Nay, Motion Carried. Ayes; Peterson, Williams, Nawrocki, Murzyn, Jr. Nay; Schmitt. Motion by Councilmember Murzyn, Jr. seconded by Councilmember Williams to move that in accordance with Minnesota Statute 412.271, subd. 8, the City Council has received the list of claims paid covering check number 162044 through 163179 in the amount of $ 1,073,510.83. All Ayes, Motion Carried. 8. PUBLIC HEARINGS 9. ITEMS FOR CONSIDERATION A. Other Ordinances and Resolutions a. Accepting Bids and Awarding a Contract for the Abatement and Demolition of the Property Located at 666 40th Avenue Motion by Councilmember Williams, seconded by Councilmember Murzyn, Jr. to waive the reading of Resolution 2016-89, there being ample copies available to the public. All Ayes, Motion Carried. Economic Development Director Keith Dahl reported the property was donated to the City, a pre-demolition survey indicated contamination. Staff received two quotes from abatement contractors, and recommends awarding the contract to Veit & Co. Inc. Councilmember Nawrocki asked what will be done with the property once the structure is removed. Dahl indicated it will be an entrance to Huset Park. Steve Iserman - 662 40th Ave NE had questions regarding the retaining wall and chain link fence. City Attorney Hoeft suggested Mr. Iserman talk with Kevin Hansen for clarification. Motion by Councilmember Williams, seconded by Councilmember Murzyn, Jr. to approve Resolution 2016-89, being a resolution authorizing execution of a Work Agreement for the abatement and demolition of the commercial structure by and between Veit & Company, Inc. All Ayes, Motion Carried. A. Bid Considerations B. New Business and Reports 10. ADMINISTRATIVE REPORTS City Manager Walt Fehst reported there will be a Groundbreaking ceremony at the Legends of Columbia Heights on Friday October 14th at 3:30 PM. Councilmember Nawrocki questioned a letter received offering coverage for sewer line cleaning. Manager Fehst reported he would confirm coverage with Pubic Works Director Kevin Hansen. 11. CITIZENS FORUM Malcom Watson-1717 49th Ave NE shared some historical information from 1965. Frost Simula-1700 49th Ave NE requested the Council consider climate change as they work on the upcoming Comprehensive Plan. 8 City Council Minutes October 10, 2016 Page 4 of 4 William Morrell - 4212 Reservoir Blvd. indicated that the area of 39th Ave NE, west of Central Ave is overcrowded with vehicles. Mr. Morrell suggested the City reduce the frequency in sending the water/sewer line insurance offerings. Mr. Morrell noted the yard waste containers could be purchased for little more than the annual rental fee charged by the City, and suggested the City consider selling the containers. Mayor Peterson encouraged remembrance of our servicemen and women, police and firefighters. 12. ADJOURNMENT Meeting adjourned at 8:18 p.m. ______________________ Respectively Submitted, Katie Bruno, Council Secretary/City Clerk Resolution No. 2016-89 RESOLUTION AUTHORIZING EXECUTION OF A WORK AGREEMENT FOR THE ABATEMENT AND DEMOLITION OF THE COMMERCIAL STRUCTURE BY AND BETWEEN VEIT & COMPANY, INC. BE IT RESOLVED BY the City Council (Council) for the City of Columbia Heights, Minnesota (City) as follows: WHEREAS, On June 8, 2016 the City was donated the real property located at 666 40th Avenue Northeast, in the City of Columbia Heights, County of Anoka, State of Minnesota (Subject Property), which is legally described as follows: Lots 45 and 46, Block 65, Columbia Heights Annex to Minneapolis, County of Anoka, State of Minnesota, according to the recorded plat thereof; and WHEREAS, the City intends to demolish the structure located on the Subject Property, which was classified to be hazardous and substandard pursuant to Minnesota Statues Sections 463.15 to 463.26; and WHEREAS, the City has determined that the removal of the structure on the Subject Property as described in this resolution is in the best interest of the City and its residents; and WHEREAS, pursuant to Minnesota State Statue Section 471.345 Uniform Municipal Contracting Law, the City solicited sealed bids to numerous contractors for quotes related to the abatement and demolition of the structure on the Subject Property as detailed in the Scope of Work and Specifications (Services); and WHEREAS, Veit & Company, Inc. submitted the lowest responsible bid for the specific Services requested by the City. NOW, THEREFORE BE IT RESOLVED by the City Council that the Work Agreement is awarded to Veit & Company, Inc. in the amount not to exceed $36,500.00 and that the Mayor and City Manager are herewith authorized to execute said Work Agreement. BE IT FURTHER RESOLVED this resolution shall be effective immediately upon its enactment by the City Council. 9 AGENDA SECTION CONSENT ITEM NO. MEETING DATE OCTOBER 24, 2016 CITY OF COLUMBIA HEIGHTS - COUNCIL LETTER ITEM: CITY OF COLUMBIA HEIGHTS, MINNESOTA RESOLUTION 2016-103, APPROPRIATE A PROJECT BUDGET IN REDEVELOPMENT FUND 420 FOR THE COSTS TO HOLD 820 40TH AVENUE NE UNTIL SOLD. DEPARTMENT: Finance CITY MANAGER’S APPROVAL: BY/DATE: Joseph Kloiber / October 20, 2016 BY/DATE: BACKGROUND: The City Council and EDA seek to sell the (former library) facility at 820 40th Avenue NE. This facility has not been engaged in library activities since approximately July 1, 2016. The costs to hold real estate for resale; including property insurance, utilities, and routine maintenance, are appropriately classified in the City and EDA financial records as a community development activity. The attached resolution authorizes a one-time project budget for this activity in the Redevelopment Fund 420, which currently has an available fund balance of approximately $1 million. The amount proposed below is equal to the 2015 costs to hold the property in an occupied status. Accordingly, staff estimates this amount should provide for holding the property for longer than twelve months in an unoccupied status. Staff also recommends that following the sale, Fund 420 be reimbursed from the sales proceeds for the amount of holding costs actually expended. STAFF RECOMMENDATION: Staff recommends approval of the following motions. RECOMMENDED MOTION(S): MOTION: Move to waive the reading of Resolution 2016-103, there being ample copies available to the public. MOTION: Move to adopt City of Columbia Heights, Minnesota, Resolution 2016-103, being a resolution to appropriate a project budget in Redevelopment Fund 420 for the costs to hold 820 40th Avenue NE until sold. ATTACHMENTS: Resolution 2016-103 Insurance 7,900 Electric 11,200 Water 600 Gas 4,300 Sewer 600 Certain Maintenance: Fire Detection Contract 700 HVAC Contract 3,800 Elevator Contract 1,400 Rounding (500) TOTAL PROJECT BUDGET 30,000 CouncilLetter_Res2016_103_ProjectBudgetFor820_40th.docx 7B 10 RESOLUTION NO. 2016-103 A resolution of the City Council for the City of Columbia Heights, Minnesota, appropriating a project budget in Redevelopment Fund 420 for the costs to hold 820 40th Avenue NE until sold. Whereas, in response to a 2014 referendum of the eligible voters of the City of Columbia Heights, the City of Columbia Heights contracted for the construction of a new library facility at 3939 Central Avenue Northeast; and Whereas, in 2016, library operations were moved to the new facility; and Whereas, in 2016, the City of Columbia Heights and the Columbia Heights Economic Development Authority endeavor to sell the former library facility, located at 820 40th Avenue Northeast, to both generate available resources and to promote redevelopment; and Whereas, the City Council for the City of Columbia Heights established Redevelopment Fund 420 by resolution 2002-72 to be used for redevelopment costs; and Whereas, there are certain costs required to keep 820 40th Avenue Northeast secure and marketable until sold, including insurance, utilities, and routine maintenance; and Whereas, these costs were approximately $30,000 per year when the building was occupied; Now, therefore, in accordance with all ordinances and regulations of the City of Columbia Heights, the City Council of the City of Columbia Heights makes the following: ORDER OF COUNCIL IT IS HEREBY RESOLVED, that a project budget in Redevelopment Fund 420 for the costs to hold 820 40th Avenue NE until sold is appropriated in the amount of $30,000. Passed this _________ day of ______________________, 2016 Offered by: Seconded by: Roll Call: Gary L. Peterson, Mayor Attest: Katie Bruno, City Clerk/Council Secretary 11 AGENDA SECTION CONSENT ITEM NO. MEETING DATE OCTOBER 24, 2016 CITY OF COLUMBIA HEIGHTS - COUNCIL LETTER ITEM: ADOPT RESOLUTION 2016-101 ACCEPTING THE FEASIBILITY REPORT FOR ZONE 1 STREET SEAL COAT PROJECT AND ORDERING THE PUBLIC IMPROVEMENT HEARING, CITY PROJECT NO. 1601 DEPARTMENT: Public Works CITY MANAGER’S APPROVAL: BY/DATE: Kevin Hansen / October 19, 2016 BY/DATE: BACKGROUND: Staff has developed preliminary plans and prepared a Feasibility Report for Zone 1 of the Annual Seal Coat Program. The seal coat area is located between Central Avenue and Reservoir Boulevard/Johnson Street from 37th Avenue to 47th Avenue. In accordance with the Street Rehabilitation Policy, Zone 1 streets that were most recently rehabilitated are being seal coated at the City’s cost (City pays for first seal coat). The map included with the Feasibility Report displays the streets proposed for seal coat and the funding source. The seal coat program helps preserve and maintain existing bituminous streets in good driving condition. Particular issues are summarized below: 1.Assessment Methodology: The Seal Coating project will be assessed on a Street and Avenue parcel basis. Avenue assessments are one-third of the street rate extending one-half block in either direction of the Avenue. This assumes that all parcels benefit equally for the strategy in front of their property or abutting it, in the case of the Avenue. The estimated unit cost assessment is $306 per Street parcel and $102 per Avenue parcel. 2.Financing: The estimated construction cost is $218,160. 100% of the seal coat construction cost is assessed to property owners, or City funded for the first rehab cycle following rehabilitation. 3.Past Assessments: In Zone 1, property owners on 44th Avenue from Tyler Place to Reservoir Boulevard and adjoining streets have had a street or avenue assessment for mill and overlay. Some of these owners will receive an assessment for seal coat on McLeod Street, Royce Street, and Leander Lane. 4.Meeting dates: Staff is recommending the public improvement hearing be scheduled immediately after the Assessment Hearings on December 5, 2016. The bidding process will be administered by the City of Coon Rapids as part of a multi-city JPA for various street maintenance activities. RECOMMENDED MOTION(S): Move to waive the reading of Resolution 2016-101, there being ample copies available to the public. Move to adopt Resolution 2016-101, being a resolution accepting the Feasibility Report for Zone 1 Street Seal Coat, City Project No. 1601, and ordering the Public Improvement Hearing beginning at 7:00 p.m. on December 5, 2016. ATTACHMENT(S): Resolution 2016-101 Feasibility Report Map 7C 12 RESOLUTION NO. 2016-101 A resolution of the City Council for the City of Columbia Heights, Minnesota, WHEREAS, the City Council has adopted a Seal Coat Program, and WHEREAS, pursuant to Resolution No. 2016-85 a report has been prepared by the City Engineer with reference to the Program, and the following street(s): • Between Central Avenue and Reservoir Boulevard/Johnson Street from 37th Avenue to 47th Avenue WHEREAS, the report provides information regarding whether the proposed project is feasible, necessary and cost-effective, and Said report is hereby received by the City Council of Columbia Heights on October 24, 2016. Now, therefore, in accordance with the foregoing, and all ordinances and regulations of the City of Columbia Heights, the City Council of the City of Columbia Heights makes the following: FINDINGS OF FACT 1. The Council will consider the improvement of such streets in accordance with the report and the assessment of abutting or benefited property for all or a portion of the cost of the improvement pursuant to Minnesota Statutes, Chapter 429 at an estimated total cost of the improvement of $218,160. 2. A public hearing shall be held on such proposed improvement on the 5th day of December, 2016, in the City Council Chambers at 590 40th Avenue N.E. at 7:00 P.M. and the City Clerk shall give mailed and published notice of such hearing and improvement as required by law. ORDER OF COUNCIL Passed this 24th day of October, 2016 Offered by: Seconded by: Roll Call: Gary L. Peterson, Mayor Attest: Katie Bruno, City Clerk/Council Secretary 13 City of Columbia Heights FEASIBILITY REPORT FOR 2017 STREET REHABILITATION SEAL COAT IMPROVEMENTS CITY PROJECT 1601 OCTOBER, 2016 ENGINEERING DEPARTMENT 637 38th Avenue NE, Columbia Heights, MN 55421 763-706-3700  763-706-3701 (Fax) 14 BITUMINOUS SEAL COAT IMPROVEMENTS ZONE 1 COLUMBIA HEIGHTS, MINNESOTA PROJECT NUMBER 1601 LOCATION: ZONE 1 – AREA BOUNDED BY CENTRAL AVENUE TO RESERVOIR BOULEVARD/JOHNSON STREET 37TH AVENUE TO 47TH AVENUE The following local bituminous streets are included in Zone 1: Peters Place Gould Avenue to Reservoir Boulevard Gould Avenue Central Avenue to Reservoir Boulevard 41st Avenue Dead end to Reservoir Boulevard 42nd Avenue Central Avenue to Reservoir Boulevard 42½ Avenue West cul-de-sac to East cul-de-sac 43rd Avenue Central Avenue to McLeod Street Fillmore Street 42nd Avenue to 42½ Avenue Pierce Street 42½ Avenue to 43½ Avenue McLeod Street Reservoir Boulevard to 45th Avenue Royce Street McLeod Street to 44th Avenue Leander Lane Royce Street to 44th Avenue 45½ Avenue Fillmore Street to Cul-de-sac 46th Avenue Central Avenue to Fillmore Street 47th Avenue Fillmore Street to Johnson Street Tyler Street 45th Avenue to 47th Avenue Polk Street 45th Avenue to 47th Avenue Taylor Street 45th Avenue to 47th Avenue Fillmore Street 45th Avenue to 46th Avenue Pierce Street 46th Avenue to 47th Avenue Parkview Lane 46th Avenue to 46th Avenue Johnson Street 46th Avenue to 47th Avenue This feasibility study includes an analysis of proposed bituminous street patching and repair, and seal coat. IMPROVEMENTS: Repair of Concrete Curb and Gutter, Crack Sealing, Patching and Seal Coat of Street Surface. INITIATION: City Council, as part of an ongoing bituminous street preservation strategy. 2 15 OWNERS The location of each street is described below and shown on the attached map. BENEFITTING: The total number of assessed parcels is 940. OWNERS 1. Peters Place Gould Avenue to Reservoir Boulevard (12) ABUTTING 2. Gould Avenue Central Avenue to Reservoir Boulevard (46) OR 3. 41st Avenue Dead end to Reservoir Boulevard ( 8) IMPACTED: 4. 42nd Avenue Central Avenue to Reservoir Boulevard (96) 5. 42½ Avenue West cul-de-sac to East cul-de-sac (68) 6. 43rd Avenue Central Avenue to McLeod Street (73) 7. Fillmore Street 42nd Avenue to 42½ Avenue (33) 8. Pierce Street 42½ Avenue to 43½ Avenue (91) 9. McLeod Street Reservoir Boulevard to 45th Avenue (93) 10. Royce Street McLeod Street to 44th Avenue (27) 11. Leander Lane Royce Street to 44th Avenue (22) 12. 45½ Avenue Fillmore Street to Cul-de-sac (20) 13. 46th Avenue Central Avenue to Fillmore Street (78) 14. 47th Avenue Fillmore Street to Johnson Street (25) 15. Tyler Street 45th Avenue to 47th Avenue (35) 16. Polk Street 45th Avenue to 47th Avenue (42) 17. Taylor Street 45th Avenue to 47th Avenue (41) 18. Fillmore Street 45th Avenue to 46th Avenue (53) 19. Pierce Street 46th Avenue to 47th Avenue (20) 20. Parkview Lane 46th Avenue to 46th Avenue (40) 21. Johnson Street 46th Avenue to 47th Avenue (17) ISSUES: The City Council identified the need to preserve and maintain the existing bituminous streets and extends the life of the pavement in good driving condition. FEASIBILITY: The improvement as proposed is necessary, cost-effective, and technically feasible. The project is recommended as proposed in the study. The improvements, once completed, will be a benefit to the properties served. SCHEDULE: Construction is scheduled to begin in the spring of 2017 with substantial completion occurring in late summer. The seal coat contract is administered by the City of Coon Rapids under a joint powers agreement with several north- metro cities. Council accepts Feasibility Report Oct 24, 2016 Council orders Public Improvement Hearing Nov 14, 2016 Public Improvement Hearing and Council orders Public Improvement Project Dec 1, 2016 Bid Opening for Seal Coating (City of Coon Rapids) February, 2017 Columbia Heights Council Concurs with Bids March, 2017 3 16 Coon Rapids’ Council Awards Contract April, 2017 Begin Construction – Bituminous Repairs (Force Account) May, 2017 Begin Construction – Seal Coat (Project-wide) June/July, 2017 Construction Completed (Project-wide) August 31, 2017 FINANCING: The estimated cost for Seal Coating is $218,160 (construction cost only). ASSESSMENT: The Seal Coating project for those street listed above will be 100% assessed on a Street and Avenue parcel basis. Avenue assessments are 1/3 of the street rate extending ½ block in either direction of the Avenue. This assumes that all parcels benefit equally for the strategy in front of their property or abutting it, in the case of the Avenue. The estimated unit cost assessment is $306.00. DESCRIPTION OF WORK INVOLVED: • Public Works Staff – provides bituminous street repairs and patching throughout the Seal Coat project zone. Includes cutting and removal of deficient segments of street section, milling of larger areas of deficient bituminous areas, and patching or paving with new bituminous. • Concrete curb and gutter repairs – provide repairs to short segments of curb & gutter due to damage or joint separation which impedes gutter flow. • Crack sealing – rout and seal cracks on select streets. • Application of Seal Coat (emulsion and cover aggregate) – Application of emulsion by computer controlled mechanical sprayers immediately followed by spreading FA-2 or FA-2 modified granite or trap rock as a cover aggregate. The road surface is finished by rolling with a tire-based roller for proper aggregate penetration and distribution. 4 17 2017 IMPROVEMENT PROGRAM COLUMBIA HEIGHTS, MINNESOTA ESTIMATED ASSESSMENTS – PROJECT 1601 ZONE 1 STREET SEAL COATING PROGRAM (Sections 25 and 36, T30N, R24W) Seal Coating: Estimated Cost $218,160 Estimated Cost per Parcel Street: $ 306.00 Avenue: $ 102.00 5 18 AV E 47 T H PIERCE ST FILLMORE AV E 46 T H ST ST ST ST ST JOHNSON TAYLOR POLK TYLER UPLAND GO L F P L L N M A I D E N AV E 45 T H AV E 44 1 / 2 45 1 / 2 AV E ST AV E ARTHUR PL ARTHUR BLVD A V E MC LEOD 43 R D 4 4 T H LEANDER ST ROYCE AV E 43 1 / 2 ST AV E AV E 44 T H 43 R D AV E STINSON LANE 42 N D B L V D 41 S T FILLMORE AV E 42 N D AV E STINSON AV E AV E BLVD ST ST ST C I R C L E AV E 40 T H 40 T H HAYES POLK TYLER R ESE R V OIR VAN BUREN GO U L D ST ST ST ST AV E 39 1 / 2 BLVD AVE 39 T H ST ST AV E 39 T H ST T T CLEVELAND ARTHUR AV E PETERS AVE TERRACE BLVD 41 S T VAN BUREN BENJAMINST IVANHOE PL RESERVOIR BLVD RESERVOIR BLVD BENJAMIN PL ULYSSES ST VAN BURENST 42 1 / 2 AV E PARKVIEW LN BUCHANAN ST TYLER PL TYLER PL 45 T H C H A T H A M R OA D H E I G H T S D R I V E ST ST PIERCE PL City of Columbia Heights LEGEND SEAL COAT (Assessed)SEAL COAT (City Share) ® CITY OF COLUMBIA HEIGHTS GIS / ENGINEERING DEPARTMENT Map Date: Map Author:K YoungSeptember, 20162017 PROPOSED SE A L  COAT STREETS 19 AGENDA SECTION CONSENT ITEM NO. MEETING DATE OCTOBER 24, 2016 CITY OF COLUMBIA HEIGHTS - COUNCIL LETTER ITEM: FINAL PAYMENT FOR ZONE 7B SEAL COAT AND CITY PARKING LOT SEAL COAT OR FOG SEAL DEPARTMENT: Public Works CITY MANAGER’S APPROVAL: BY/DATE: Kevin Hansen / October 19, 2016 BY/DATE: BACKGROUND: The contractor has completed the 2016 Seal Coat and Fog Seal project. This program consisted of applying an asphalt emulsion and cover aggregate on bituminous streets in Zone 7B and on select older city parking lots, as well as applying an asphalt emulsion on select newer parking lots. These bituminous streets included the local streets between California/Main Street and University Avenue from 37th Avenue to 45th Avenue, with the exception of 45th Avenue. 45th Avenue was included with the 2016 Street Rehabilitation Program. STAFF RECOMMENDATION: For the Zone 7B project, approximately 40% of the seal coat is being funded through assessments and 60% is being paid for by the Infrastructure fund. (The first seal coat after street rehabilitation is paid for by the City.) The parking lots are being paid for with General Government Building funds. Staff recommends final payment to the contractor, as work has been completed in accordance with the contract documents. RECOMMENDED MOTION(S): Move to accept the work for 2016 Seal Coat and Fog Seal, City Project No. 1501 (Zone 7B) and Project No. 1401 (Parking Lot Preservation), and authorize final payment of $5,310.00 to Pearson Bros, Inc. of Hanover, Minnesota. ATTACHMENTS: Engineer’s Report of Final Acceptance 7D 20 CITY OF COLUMBIA HEIGHTS ANOKA COUNTY, MINNESOTA ENGINEER’S REPORT OF FINAL ACCEPTANCE 2016 STREET SEAL COAT PROJECT ZONE 7B CITY PROJECT NUMBER 1501 2016 CITY PARKING LOT SEAL COAT/FOG SEAL CITY PROJECT NUMBER 1401 October 19, 2016 TO THE CITY COUNCIL COLUMBIA HEIGHTS, MINNESOTA HONORABLE MAYOR AND CITY COUNCIL MEMBERS: This is to advise you that I have reviewed the work under contract to Pearson Bros. Inc. The work consisted of bituminous seal coat application of local streets in Zone 7B and older City parking lots. The parking lots at the Public Safety Building and the Liquor Stores were fog sealed. The contractor has completed the project in accordance with the contract. It is recommended; herewith, that final payment be made for said improvements to the contractor in the amount as follows: ORIGINAL CONTRACT PRICE $123,790.00 CHANGE ORDERS $ 0.00 FINAL CONTRACT AMOUNT $ FINAL WORK APPROVED $102,213.15 ALL PRIOR PAYMENTS ($ 96,903.15) BALANCE DUE $ 5,310.00 Sincerely, CITY OF COLUMBIA HEIGHTS Kevin R. Hansen City Engineer 21 AGENDA SECTION CONSENT ITEM NO. MEETING DATE OCTOBER 24, 2016 CITY OF COLUMBIA HEIGHTS - COUNCIL LETTER ITEM: AWARD OF PROFESSIONAL ENGINEERING SERVICES FOR CENTRAL AVENUE SAFETY IMPROVEMENTS, PROJECT 1608 DEPARTMENT: Public Works CITY MANAGER’S APPROVAL: BY/Date: Kathy Young / October 5, 2016 BY/Date: BACKGROUND: The City of Columbia Heights received funding for the Central Avenue Safety Improvements from 47th to 51st Avenues totaling $930,000 through federal funds (90%) and local State Aid funds (10%). The source of the funds is MnDOT’s Highway Safety Improvement Program or HSIP. The proposed improvements will include pedestrian and vehicle lighting, new sidewalks, and signage focusing on pedestrian safety in the corridor. The Council authorized staff to prepare a Request for Proposal for professional services at their March 28, 2016 meeting (RFP attached). ANALYSIS/CONCLUSIONS: The City of Columbia Heights sent out Requests for Proposals requesting professional engineering services to five (5) firms to provide engineering design and construction administration for Central Avenue safety improvements. Three proposals were received meeting the minimum requirements of the RFP. The proposals were reviewed for: •Understands Requirements •Firm Experience •Approach / Schedule •Past Performance •Scope / Work Program •References /Resources •Qualifications / Project Team •Time Frame to Complete •Written Proposal •Fee Structure Proposal fees were as follows: Bolton & Menk $156,850 Kimley Horn $184,661 SEH $216,500 The proposals were reviewed by staff (City Manager, Director of Public Works, Police Chief, Community Development Director, Economic Development Manager, and the Assistant City Engineer) with the following scored results: Firm Total Score Average Score Bolton & Menk 523 87.17 Kimley-Horn 502 83.67 SEH 542 90.33 Based on the proposal content, the review group had SEH as the highest ranking consultant with the best 7E 22 City of Columbia Heights - Council Letter Page 2 project understanding, work program and schedule. While Bolton & Menk had the lowest cost, SEH provided the best overall response for this project. Within the fees, it should be noted, that SEH had 568 more hours programmed into their work program than Bolton & Menk. Based on the ranked, weighted overall score, staff is recommending accepting the proposal from SEH in the amount of $216,500. RECOMMENDED MOTION(S): Move to award the Central Avenue Safety Improvements, Project 1608, to the consulting engineering firm of SEH, Inc. based upon their reviewed and highest ranking proposal for a cost not- to-exceed $216,500 appropriated from Fund 402-51608-3050. ATTACHMENT(S): Request for Proposal (RFP) Addendum 1 23 REQUEST FOR PROFESSIONAL SERVICES COLUMBIA HEIGHTS, MINNESOTA CENTRAL AVENUE (TH 65): 47TH TO 51ST AVENUES SAFETY IMPROVEMENTS ENGINEERING DESIGN AND CONSTRUCTION ADMINISTRATION SERVICES I. GENERAL REQUIREMENTS The City of Columbia Heights invites qualified professional engineering firms to submit a proposal to provide professional services for Central Avenue Safety Improvements no later than 3:30 PM September 28th, 2016 to the Director of Public Works. In submitting a proposal to provide the requested professional services, the following is required in order to expedite the review process by the representatives of the City. 1. The length of the proposal should not exceed ten (10) pages, excluding figures or charts, resumes of personnel, firm experience, qualifications, site plans, etc. 2. The proposal should not contain non-applicable promotional materials and should address only the points requested in this document, including proposed time schedule to complete the work and associated fees. If requested elsewhere in this RFP, provide separate schedules and fees for separate sections of work. 3. Five (5) print copies of the proposal should be addressed to the Director of Public Works, 637 38th Avenue NE, Columbia Heights, Minnesota, 55421, to be received by 3:30 PM September 28th 2016. In addition, a digital copy of the proposal should be emailed to khansen@columbiaheightsmn.gov 4. If the firm is proposing to use sub consultants, the sub consultant should be identified along with how the work will be divided. 5. The City of Columbia Heights reserves the right to reject any proposal that does not comply with the requirements of this RFP. 6. The City Council will consider the proposals at their regularly scheduled meeting on October 10th, 2016. II. BACKGROUND The City of Columbia Heights is planning on implementing pedestrian and vehicle safety improvements along the segment of Trunk Highway 65, commonly known as Central Avenue NE, between 47th and 51st Avenues. Central Avenue is one of the most dangerous corridors in 24 RFP – CENTRAL AVENUE (TH 65) SAFETY IMPROVEMENTS Page 2 Minnesota with a much higher than average pedestrian hit rate. The project segment length is approximately 0.36 miles of urban median-divided, 4-lane trunk highway with an AADT of 25,500 vehicles per day south of 49th Avenue and an AADT of 27,000 vehicles per day north of 49th Avenue. In an effort to drastically reduce vehicle-to-vehicle and vehicle-to-pedestrian accidents, the City of Columbia Heights has continued to partner with federal, state and local agencies to improve safety conditions present along Central Avenue. Previous safety improvements have consisted of a pedestrian overpass at 49th Avenue and the restriction of other pedestrian crossings throughout the corridor by enforcement and signage. While the installation of a pedestrian overpass has greatly facilitated safe crossings, particularly for the pedestrians walking to and from schools adjacent to 49th Avenue, the project segment is unlit and still experiences pedestrian mid-block crossings. The City of Columbia Heights has been awarded Federal Highway Safety Improvement Program (HSIP) funding in the amount of $833,976, fiscal year 2017. The City has allocated an additional 10% match of the HSIP funding for a total of $930,204 to improve pedestrian and vehicle safety conditions between 47th Avenue and 51st Avenue along Central Avenue. The City of Columbia Heights would also consider additional safety improvement features or other value-added beautification items that will improve the overall outcome of the project. If the additional safety improvements are over the aforementioned total, the City will consider allocating additional funds towards this project. The City views this project as a unique opportunity to effect a gateway to the community, with improved vehicular and pedestrian safety as the key goal in the design process. Other key project goals are meeting ADA requirements and creating a design consistent with the initiatives of the City Architectural Design guidelines for the Central Avenue Corridor. III. SCOPE OF SERVICES The City of Columbia Heights is seeking proposals from professional engineering firms experienced in transportation engineering and lighting design for the development of conceptual plans, final design, bidding documents and construction administration for this project. The overall scope of services sought is the design and construction administration services for a Federally funded (HSIP) project. Firms that submit a proposal should demonstrate their experience and qualifications in dealing with similar projects in nature. Include in the proposal references for at least two (2) safety improvement projects that your firm has successfully completed in the last eight (8) years. Firms that do not demonstrate successfully completion of at least two (2) safety improvement projects will not be considered. 25 RFP – CENTRAL AVENUE (TH 65) SAFETY IMPROVEMENTS Page 3 The consultant team shall have adequate staff resources to provide the full range of professional services required to complete all tasks and objectives inherent to the work identified. Responders are encouraged to propose additional tasks or activities if they will substantially improve the results of the project. These should be identified separately on the cost proposal. The consultant will provide the following services which will include at a minimum: • Project Memorandum • Base Mapping / Construction Surveying • Conceptual Design • Public Involvement Plan • Project Cost Estimating • Governmental Permit Applications (MnDOT & Anoka County) • Right of Way Plan (anticipate R/W Certificate #1A) • Utility Coordination • Project Staging Plans • Traffic Control Plan • Lighting Plans • Sidewalk Plans • Aesthetic Design • Final Construction Plans and Specifications • Bidding Documents and Advertising. • Construction Administration (incl. inspections and construction staking) 1. Preliminary Design • A Project Memorandum. Development of required environmental documentation in accordance with the National Environmental Policy Act (NEPA) and Mn/DOT State Aid Standards. • Provide a topographic survey of the project area to determine existing conditions and verify the existing right-of-way in the project area. • Gather existing public and private utility mapping for the project area. Request field locates for the existing utilities and coordinate field surveying to accurately map the existing utilities for plans. • Coordinate geotechnical activities for the project and designate soil borings requirements. The City will contract Geotechnical consulting separately. • A design in conformance with current Mn/DOT State Aid standards. • Coordination with all utilities within project limits and/or impacted by the project in accordance with Mn/DOT Utility Design Manual. 26 RFP – CENTRAL AVENUE (TH 65) SAFETY IMPROVEMENTS Page 4 • It is not anticipated that additional right of way will be required for this project. If the additional right of way needs are identified, the consultant shall prepare legal descriptions and sketches for each impacted parcel (at additional cost). The City will perform the right of way acquisition on the project. • Design of street lighting and pedestrian lighting system. • Sidewalk and pedestrian ramp design meeting the most current ADA and MnDOT requirements. • Aesthetic Design: The City is interested in creating a barrier that may include landscaping, decorative fencing or similar treatments that will that will enhance the aesthetics of the corridor while providing a deterrent for pedestrian crossings. • Mn/DOT approved Level 1 geometric layout. • Mn/DOT Federal-Aid approved final construction plans and specifications. A complete set of the plans and specs should be provided to the City electronically in AutoCAD and .pdf format. 2. Final Design • The consultant will be responsible for submitting permit applications warranted by the proposed work. The City of Columbia Heights will pay any required permit fees. • Prepare final design plans based upon preliminary comments from MnDOT, City staff and the public. • Attend one Council workshop / public meeting for input consideration in final design. • Submit final design package in accordance with Mn/DOT requirements. • Design review / revisions / signatures 3. Coordination Activities • Prepare monthly status updates and invoices. • Attend up to four (4) coordination meetings with City staff and/or MnDOT. • Prepare for and attend two City Council workshops for design review and input (preliminary and final design). • Prepare for and attend one public ‘open house’ type meeting to gain community input. • Identify and coordinate local business access impacts. • Coordinate review by Anoka County as it relates to 49th Avenue (CSAH 4). • Prepare preliminary cost estimates including aesthetic amenities. 27 RFP – CENTRAL AVENUE (TH 65) SAFETY IMPROVEMENTS Page 5 4. Construction Inspection and Staking. • Coordinate with Mn/DOT Federal, State Aid and Permit departments • Conduct and document Preconstruction and Weekly construction meetings • Address business access, pedestrian access, ISD 13 and Metro bus stops/routes • Review and approve shop drawings • Coordinate NPDES permit application submittal with Contractor • Schedule materials testing and Plant monitoring by Mn/DOT • Document changes to plans • Monitor the project status and budget and report to the City • Document pay items and prepare payment vouchers • Prepare and submit Work orders/Change orders/Supplemental agreements if needed • Prepare and submit Change of Construction Status and Weekly Construction Diary • Monitor Labor compliance requirements and EEO Documentation All construction inspectors shall be engineers or certified technicians with experience in the type of construction being observed. Inspectors shall maintain a daily diary as recommended by Mn/DOT. Inspectors shall monitor erosion control in accordance with the project SWPPP. 5. Information Provided By City Assume that the City will provide the following information: • Available as-built drawings and/or engineering plans for project area including the pedestrian bridge. • Any available aerial photography or topographic mapping or GIS mapping. • Any available topographic survey with point data provided in compatible format. 6. Department Contacts Prospective responders who may have questions regarding this Request for Proposals may call or write: Kevin Hansen, Director of Public Works/City Engineer City of Columbia Heights 637 38th Avenue NE Columbia Heights, MN 55421 (763) 706-3705 khansen@columbiaheightsmn.gov 28 RFP – CENTRAL AVENUE (TH 65) SAFETY IMPROVEMENTS Page 6 7. Project Timelines City staff intends on having the evaluation and initial selection of the consultant completed by October 5th 2016 for Council review and presenting a final recommendation to the City Council at their October 10th 2016 regular meeting. Project timeframe goals are indicated on the attached ‘Federal Aid Kickoff Meeting’ notes dated August 9th, 2016. IV. PROPOSAL CONTENTS 1. Project Approach Should reflect the firm's understanding of the requirements of the project and present a task-by-task description of the work to be accomplished. Merely restating the scope of services will not be acceptable. 2. Schedule Should include a schedule depicting the task activities, their inter-relationships, and the projected completion dates. It should also contain a discussion of the firm's total staffing and its procedures for maintaining schedule compliance in the event of unforeseen delays or other such circumstances. 3. Project Personnel Should outline the general responsibilities of the firms to be involved if more than one. Should also contain the names of personnel with key responsibilities for the work and a description of their role and duties for this job. It must also include an organizational chart for these people, delineating responsibilities and showing lines of authority and communication. It should also contain biographical resumes of these individuals with emphasis on their background on comparable projects and similar roles to those proposed for this project. 4. Relevant Experience Should discuss demonstrated experience of firm and project team with studies of similar scope and magnitude to the proposed study. An outline of the responder’s background and experience with particular emphasis on state and local level of government work. Identify personnel to conduct the project and detail their training and work experience. No change in personnel assigned to the project will be permitted without approval of the City. Provide a minimum of two (2) examples 29 RFP – CENTRAL AVENUE (TH 65) SAFETY IMPROVEMENTS Page 7 of same or similar projects completed by the responder’s firm or project team personnel. 5. Performance A detailed work plan identifying the work tasks to be accomplished and the budget hours to be expended on each task and subtask. This work plan will be used as a scheduling and managing tool by the City and will serve as the basis for invoicing. The work plan shall also identify the deliverables at key milestones in the project and shall indicate the level of City participation in the project as well as any other services to be provided by the City. 6. References Should contain references that may be contacted for the similar projects discussed in the Experience and Performance Sections. A listing of the names, addresses and telephone numbers of at least three (3) references for which the respondent has performed similar work in the last five years. 7. Schedule of Rates and Charges Should contain a schedule of hourly billing rates for each category of professional, technical and clerical employee. Specifically, provide an hourly rate for each employee who may be involved in this project. Also, include rates of miscellaneous charges, such as copies, mileage, etc. Please separate costs for the total cost for preliminary and final design services through the bidding stage, and separate for the construction services phase. 8. Benefits to Columbia Heights All things considered, summarize why you believe the City of Columbia Heights should retain your firm to perform this project. 30 RFP – CENTRAL AVENUE (TH 65) SAFETY IMPROVEMENTS Page 8 V. EVALUATION CRITERIA AND SELECTION PROCEDURES: Proposals will be evaluated on the following criteria: (70% of total review score): • Demonstrated understanding of the requirements of this project and the concerns of the City of Columbia Heights. • Relevance and suitability of the overall project approach and schedule. • Detail, scope and program for the work. • Qualifications and expertise of the key personnel to be assigned and their proven ability to work together as a team on similar projects. • Experience of the firm and project team in conducting similar work. • Record of past performance on similar projects. • Comments and opinions provided by references. • Resources of the firm to conduct and complete this project in a satisfactory manner. Factors to be considered include size of the firm, current workload, and ability and willingness to commit key personnel. • Clarity, conciseness and organization of the proposal. (30% of total review score): • Total estimated cost of the project and Rate schedule submitted. Proposal Scoring Representatives of the City will evaluate all proposals received by the deadline. A 100-point scale will be used to create the evaluation recommendation. The factors weighing on which proposals will be judged include the following: 1. Project Criteria .................................................................................................... 70% 2. Cost ..................................................................................................................... 30% Total 100% 31 RFP – CENTRAL AVENUE (TH 65) SAFETY IMPROVEMENTS Page 9 VI. Limitations, Terms and Conditions This Request for Proposal does not commit the City of Columbia Heights to award a contract, pay costs incurred in the preparation of a proposal or to procure a contract for services or supplies. The City of Columbia Heights reserves the right to accept or reject any or all proposals received as a result of this request, to negotiate with any qualified source, or to cancel in part or entirety this Request for Proposal if it is in the best interest of the City of Columbia Heights to do so. If, for any reason, the firm selected is not able to commence services under its proposal within 20 days after its award, the City reserves the right to award the contract to the next most qualified firm. The City will retain ownership of all reports, site plans or other submittals prepared under the proposal. This proposal will be the only submittal for firm selection. Interviews are not proposed as a selection criterion. The firm that the City believes to be the best qualified based on the criteria above will be invited to enter into a contract to perform this project. If you have any questions, please contact me at 763/706-3705. Yours truly, Kevin R. Hansen, PE Public Works Director/City Engineer KH:kh Attachments 32 1 RFP for: CENTRAL AVENUE (TH 65) SAFETY IMPROVEMENTS: DESIGN AND CONSTRUCTION Dated: September 19, 2016 III. SCOPE OF SERVICES 1. Preliminary Design • Aesthetic Design: The City is interested in creating a barrier that may include landscaping, decorative fencing or similar treatments that will enhance the aesthetics of the corridor while providing a deterrent for pedestrian crossings. Clarification: The level of effort shall include a feasibility level report for the 47th to 49th median area, including cost estimate. It shall also include review/feedback from MnDOT on the viability of such treatment. The report shall include an analysis of raised and inverted type treatments, or a combination thereof. If the City elects to install any of the aesthetic treatments, a separate fee shall be negotiated for the design and construction administration for this addition. 5. Information Provided by the City MnDOT completed a mill and overlay project from Washington Ave (Minneapolis) to 53rd Ave in 2012, SP 0207-95. As part of that project, all of the pedestrian ramps were reconstructed. Compliance Checklist documents are available for the ped ramps at 49th Avenue and TH 65/Central. Sincerely, CITY OF COLUMBIA HEIGHTS Kevin R. Hansen, P.E. City Engineer 763-706-3705  763-706-3701(fax) khansen@columbiaheightsmn.gov ADDENDUM NO. 1 33 AGENDA SECTION CONSENT ITEM NO. MEETING DATE OCTOBER 24, 2016 CITY OF COLUMBIA HEIGHTS - COUNCIL LETTER ITEM: APPROVE RESOLUTION 2016-102 AUTHORIZING EXECUTION OF AN I/I GRANT AGREEMENT DEPARTMENT: PUBLIC WORKS CITY MANAGER’S APPROVAL: BY/DATE: KEVIN HANSEN / OCTOBER 19, 2016 BY/DATE: BACKGROUND: In 2014 Metropolitan Council Environmental Services (MCES) announced an I/I Grant program for cities identified as contributors to excess I/I by MCES. Through state bonding, $2 million has been provided to Metropolitan Council specific to funding I/I reduction measures. MCES has informed Columbia Heights that $25,000 is available to help offset costs spent on I/I reduction projects between May of 2014 to October of 2016. ANALYSIS/CONCLUSIONS: Columbia Heights has focused it’s I/I program on sanitary sewer lining and structure repair or replacement. During this time period, over $380,000 has been spent on lining and structure rehabilitation – so the City will clearly qualify for the grant amount. The submittal documentation for the grant application is due by October 30, 2016. STAFF RECOMMENDATION: Approval of the resolution approving the application for grant funds and authorizing the City Engineer as the designated representative for the program. RECOMMENDED MOTION(S): Move to waive the reading of Resolution 2016-102, there being ample copies available to the public. Move to approve Resolution 2016-102 authorizing the City of Columbia Heights to execute an agreement with Metropolitan Council Environmental Services (MCES) for reimbursement of I/I reduction costs in the amount of $25,000, and furthermore, to authorize the City Engineer to act as the designated representative. ATTACHMENT(S): Grant Guidelines Resolution 2016-102 7F 34 2014 Municipal Grant Requirements, Guidelines & Timelines INFO only: State Requirements from the Appropriation • The grant must be for capital improvements in municipal wastewater collection systems to reduce the amount of inflow and infiltration to the Metropolitan Council’s metropolitan sanitary sewer disposal system. • To be eligible for a grant, a city must be identified by the Metropolitan Council as a contributor of excessive inflow and infiltration or have had peak flows within the 20% threshold. • Grants from this appropriation are for up to 50 percent of the cost to mitigate the I/I. • Grant awards will be based on applications from eligible cities that identify eligible capital costs. • Grants are subject to Council Guidelines. State Requirements for Capital Improvements (bond dollars) • The infrastructure must be owned by the city receiving the grant. • The project benefit must last more than one fiscal period. • The capital expenditure must be made to a “fixed asset” (land, buildings, land improvement, equipment). • A fixed asset being acquired must be “long-lived” (at least 10 years). • Normal operating and other overhead costs will not qualify. • Work proposed must satisfy MMB (Minnesota Management and Budget) requirements for title declaration or waiver therefrom pursuant to M.S. 16A.695 and the Commissioners Orders related thereto. Note that MCES is in process of securing a “blanket waiver” for the recording (to property title), but only for certain improvements and with a city resolution. ----------------------------------------------------------------------------------------------------------------- Council “Guidelines”: • The Council identifies cities as contributors of excess I&I that have (a) received a Preliminary I/I Surcharge letter from MCES since 2007, and (b) responded to the Council’s “Preliminary Surcharge” notification with some type of investigative or mitigation efforts which were reported to MCES. In addition, cities identified as having had a measured flow rate within 20 percent of its allowable council-determined inflow and infiltration limits are eligible to apply. • Only construction costs will qualify; i.e. no costs of studies, engineering or planning shall be eligible. • Grants shall be for a percentage of actual, reasonable and verifiable I/I mitigation construction costs. The percentage shall be determined by the process described below. • Qualified spending on approved projects can occur between May 20, 2014 and any date that allows receipt of pay claims at the Council no later than October 30, 2016. The 2015 Legislature approved an additional $1.5M of State Bond funds to be rolled into this grant program. As such, these additional funds can only be applied to project work that undertaken no earlier than the appropriation’s effective date of June 14, 2015. • Grant awards will be paid on a reimbursement basis upon completion of the project(s) and allocation to all participants. Process (see calendar below): • MCES will notify all eligible cities and request grant applications. The notice will include a draft agreement, with all terms final except for the dollars and percentage to be awarded. • After all applications are received, Council will review eligibility of proposed expenses and determine a Preliminary Minimum Allocation (PMA) of grant funds based on Part 1 of this formula: 35 Page - 2 | July 10, 2015 | METROPOLITAN COUNCIL - Part 1: Each submitting city will receive the lesser of $25,000 or 50% of the submitted eligible project costs, and - Part 2: The remainder of the funds will be preliminarily allocated based on an allocation to all cities (that have submitted eligible costs) proportional to the cities’ remaining maximum grant after Part 1. The award to any city under this part shall be reduced where necessary to make sure that the total of the two parts does not exceed 50% of eligible costs (as required by law). Part 2 calculations are estimates only as final allocations cannot be determined until all projects are complete. • All cities will be notified of its PMA and a potential final award amount through a letter of intent from the Council. • When projects are completed, cities submit summaries of work completed (with invoices) and a Certification (notarized form confirming fee simple ownership or easements for locations where work was completed with a description or map of these locations) and a resolution from City Council authorizing application and execution of the grant. • MCES will review completed project submissions and apply the lesser of 50% of the eligible I/I abatement costs or $25,000 to each city. Then, any remaining funds would be applied proportionately to cities’ eligible expenses that have more than $25,000 in eligible I/I expenses, until all available funds are allocated (but still limited to an overall maximum of 50% or eligible). This allocation process results in Final Reimbursement Amount (FRA) for all participating cities. • MCES will provide final Grant agreements, to be executed by a date certain. • Upon return and execution of signed agreements, payments will be processed to cities based on invoices submitted to determine FRA. • The Council reserves the right to change these guidelines, if in its sole discretion the results of the process do not equitably allocate the funds. Calendar: Council approval of “guidelines” August 27, 2014 Send notice of final grant program guidelines to cities, requesting applications – Original August 28, 2014 Grant proposals due from cities – Original September 26, 2014 MCES notifies cities of their assigned PMA - Original October 10, 2014 Notice & solicitation of applications from newly participating cities July 10, 2015 Grant applications due from newly participating cities September 1, 2015 MCES provide newly participating cities Letter of Intent, PMA & estimated FRA October 9, 2015 Cities submit pay claims for completed projects October 30, 2016 FRA determination, grant agreement distributed November 15, 2016 MCES processes reimbursement upon receipt of signed agreement 36 RESOLUTION NO. 2016-102 A resolution of the City Council for the City of Columbia Heights, Minnesota, WHEREAS, the Minnesota State Legislature has appropriated $2,000,000 in general obligation bond funds for grants to municipalities to reduce inflow and infiltration (I/I) in their public system infrastructure, administered by Metropolitan Council Environmental Services (MCES); and WHEREAS, application to participate in the MCES I/I Municipal Grant Program was made on September 2014 for reimbursement of a percentage of the construction costs of 320,000, Sanitary Sewer Rehabilitation Projects 1404 and 1504; and WHEREAS, the City of Columbia Heights was notified by MCES of approval to participate in the Grant Program and of an estimated final reimbursement amount of $25,000, updated May 12, 2016; and WHEREAS, a Grant Agreement between Metropolitan Council Environmental Services and the City of Columbia Heights has been drafted by MCES. Now, therefore, in accordance with the foregoing, and all ordinances and regulations of the City of Columbia Heights, the City Council of the City of Columbia Heights makes the following: FINDINGS OF FACT 1. The City Council hereby approves application for MCES Bond Fund Municipal I/I Grant Program. 2. The City Council hereby approves the Grant Agreement between MCES and the City of Columbia Heights, and furthermore authorizes the City Engineer to act as the designated representative. ORDER OF COUNCIL Passed this 24th day of October, 2016 Offered by: Seconded by: Roll Call: Gary L. Peterson, Mayor Attest: Katie Bruno, City Clerk/Council Secretary 37 AGENDA SECTION CONSENT ITEM ITEM NO. 7G MEETING DATE OCTOBER 24, 2016 CITY OF COLUMBIA HEIGHTS – CITY COUNCIL ITEM: Approval of a Grant Application to DEED for Development of the Legends of Columbia Heights DEPARTMENT: Community Development CITY MANAGER’S APPROVAL: BY/DATE: Keith M Dahl, October 17, 2016 BY/DATE: BACKGROUND: Dominium has begun construction on the minimum improvements for the Legends of Columbia Heights located at the corner of University Avenue NE and 37th Avenue (Subject Property). During excavation and grading of the underground parking lot, petroleum impacted soils and foundry waste contamination were encountered in excessive amounts. Thus, excavation of the polluted soils was conducted to remediate the Subject Property for development. Dominium has excavated and removed 22,000 tons of contaminated soils and that figure may increase upon completion of the excavation activities. The soil excavated was at an average depth of nine (9) to fourteen (14) feet below ground level. Currently, Dominium has spent over $1 million of their $1.2 million contingency budget for removing contamination from a site initially expected to have already been remediated. Previously, the City of Columbia Heights (City) has conducted a number of environmental investigation reports across Huset Park, formally known as the Industrial Park. These reports identified numerous contaminants across the site that required remediation before redevelopment could occur. The City partnered with previous developers, environmental consultants, the Minnesota Department of Employment and Economic Development (DEED), the Metropolitan Council (Met Council), the Minnesota Pollution Control Agency (MPCA), and the Minnesota Department of Health (MDH) in an effort to remediate Huset Park for redevelopment. Specifically, for the Subject Property, the City authorized excavation of contaminated soils and foundry waste across the entire site. A total of approximately 53,800 tons of foundry waste and 1,400 tons of petroleum impacted soils were excavated from the Subject Property. The contaminants were identified to be located near the surface of the soil, which prompted excavation of soil on an average depth of five (5) to eight (8) feet below ground level. However, it was noted in the Response Action Plan Implementation Report prepared by Carlson Professional Services, Inc. (Carlson McCain) that some contamination remained in portions of soil adjacent to live utility lines in the right-of -ways on the west and south side of the Subject Property. Before Dominium proposed a residential development for the Subject Property, the proposed development was anticipated to be commercial. Based on the previous anticipated use, the excavation of the contaminated soils only required a maximum depth of five (5) to eight (8) feet. However, since the residential use incorporates an underground parking ramp, the required depth for excavation is greater than the depth excavated previously for the contaminated soils. Thus, Dominium encountered excessive amounts of petroleum impacted soils and foundry waste contamination when excavating for the construction of the parking ramp. Dominium has requested that the City apply for the Contamination Cleanup Grant offered through DEED to offset portions of costs associated with the contamination cleanup on the Subject Property. DEED grants require applicants to be statutory or home rule charter cities, economic development authorities, housing and City of Columbia Heights – CC Letter 38 City of Columbia Heights - Council Letter Page 2 redevelopment authorities, counties, or port authorities. While DEED requires specific applicants, those applicants can sponsor private entities for grant funding. For Council’s consideration is approval of the grant application prepared by Braun Intertec on behalf of Dominium and the City of Columbia Heights. If approved, the grant application will be submitted to DEED on or before November 1, 2016. STAFF RECOMMENDATION: Staff recommends adopting Resolution 2016-96, a resolution authorizing the approval of a grant application to the Minnesota Department of Employment and Economic Development Contamination Clean-up and Investigation Grant Program for the development of the Legends of Columbia Heights. RECOMMENDED MOTION(S): Motion: Move to waive the reading of Resolution 2016-96, there being ample copies available to the public. Motion: Move to adopt Resolution 2016-96, a resolution authorizing the approval of a grant application to the Minnesota Department of Employment and Economic Development Contamination Clean-up and Investigation Grant Program for the development of the Legends of Columbia Heights. ATTACHMENTS: 1. Resolution 2016-96 (1 Page) 2. Draft Grant Application (17 Pages) 39 RESOLUTION NO. 2016-96 RESOLUTION AUTHORIZING THE APPROVAL OF A GRANT APPLICATION TO THE MINNESOTA DEPARTMENT OF EMPLOYMENT AND ECONOMIC DEVELOPMENT CONTAMINATION CLEAN-UP AND INVESTIGATION GRANT PROGRAM FOR THE DEVELOPMENT OF THE LEGENDS OF COLUMBIA HEIGHTS. BE IT RESOLVED BY the City Council (Council) for the City of Columbia Heights, Minnesota (City) that the City has approved the Contamination Clean-Up grant application submitted to the Department of Employment and Economic Development (DEED) on October 24, 2016 by the City for the Legends of Columbia Heights site. BE IT FURTHER RESOLVED that the City is located within the seven county metropolitan areas defined in Minnesota State Statue Section 473.121, subdivision 2, and is participating in the local housing incentives program under Minnesota State Statue Section 473.254. BE IT FURTHER RESOLVED that the City act as the legal sponsor for the project contained in the Contamination Clean-Up Grant Program to be submitted on or before November 1, 2016 and that the City Manager is hereby authorized to apply to the DEED for funding of this project on behalf of the City. BE IT FURTHER RESOLVED that the City has the legal authority to apply for financial assistance, and the institutional, managerial, and financial capability to ensure adequate project administration. BE IT FURTHER RESOLVED that the City has not violated any Federal, State or local laws pertaining to fraud, bribery, graft, kickbacks, collusion, conflict of interest or other unlawful or corrupt practice. BE IT FURTHER RESOLVED that upon approval of its application by the State of Minnesota (State), the City may enter into an agreement with the State for the above-referenced project, and that the City certifies that it will comply with all applicable laws and regulations as stated in all contract agreements. NOW, THEREFORE BE IT FINALLY RESOLVED that the Mayor and the City Manager are hereby authorized to execute such agreements as are necessary to implement the project on behalf of the applicant. Passed this _________ day of ______________________, 2016 Offered by: Seconded by: Roll Call: Gary L. Peterson, President Attest: Katie Bruno, Council Secretary/City Clerk Resolution 2016-96 40 FY 17 10.20.16 Contamination Cleanup Application Submittal Checklist LOGISTICS ☐ One full original paper application with all attachments ☐ One additional paper copy with all attachments ☐ A third complete copy on a CD or other memory device (no emailed versions are accepted) ☐ Above submitted to DEED by 4:00 p.m. on May 1 or November 1 or next business day APPLICATION FORM CONTENT HIGHLIGHTS ☐ Legal Description of the Site ☐ Site History and Background ☐ Development Plan ☐ Cleanup and Construction Schedule ☐ Vendor and/or tax ID Numbers ☐ Completed Budget APPLICATION ATTACHMENTS ☐ Resolution from Applicant Agency with appropriate signatures ☐ Resolution from municipality in which the site is located (if applicable) ☐ Response Action Plan (RAP) ☐ Response Action Plan approval(s) ☐ Additional environmental reports or documents ☐ Maps showing 1) current conditions of the site including labeled struct ures, 2) the proposed development including labeled structures, and 3) location(s) of contamination ☐ Appraisal or Assessor’s most current valuation notice (a value must be determined) ☐ Any additional photographs of the site ☐ Evidence of match costs and construction financing ☐ Copy of Applicant’s current audit (may provide an electronic link in lieu of hard copy) ☐ HUD ‘Invitation to Apply” letter (if applicable) ☐ City council or other documentation to indicate project has been through appropriate city approvals ☐ Third Party Commitment Letter and/or Developer Agreement ☐ Executive Summary of the project including the applicant’s intended involvement in the project Cleanup – Checklist 41 FY 17 Brownfields and Redevelopment Unit 1st National Bank Building 332 Minnesota Street, Suite E200 St. Paul, MN 55101-1351 Contamination Cleanup Grant Application and Part 1 of the Revolving Loan Application Cover Page Applicant (Public Entity): Columbia Heights, Minnesota________________________ Head of Applicant Agency (e.g., Mayor): Gary Peterson____________________ Applicant Address: 590 40th Avenue Northeast ____________________________ City: Columbia Heights____________________ Zip Code: 55421___________ If the applicant is a city, what form of government? ☒ Home Rule ☐ Statutory City For reference, please give the State Statute number which gives the applicant authority to carry out the activities for which you are requesting grant funds. Chapter 410 Project Contact for the Public Entity: Keith Dahl, Economic Development Manager Phone: 763-706-3674 Email: KDahl@columbiaheightsmn.gov Mailing Address: 590 40th Avenue NE, Columbia Heights, MN 55421 Project Manager for this project from the Public Entity, in the event of an award: Walt Faehst, City Manager Project Manager’s Phone and email: 763-706-3601, WFehst@columbiaheightsmn.gov Application Author: Derek Schilling, Braun Intertec Corporation_______________________ Author’s Phone and email: 952-995-2674, dschilling@braunintertec.com Provide a written executive summary of the project, including the applicant’s involvement in the project to date and how the applicant intends to manage the project should a grant be awarded. The executive summary is included as Attachment 1. Cleanup - 2 42 FY 17 I. SITE IDENTIFICATION AND HISTORY SITE INFORMATION 1. Name of Site: Legends of Columbia Heights (formerly Lily Gables) Site Address: 3700 Huset Parkway City, County or Township: Columbia Heights, Anoka County Zip Code: 55421__ Acreage of Site: 5.84____________________Sq. Ft. of Site: _________________ If City is applicant, what form of government? ___ Home Rule Charter X Statutory City Minnesota Legislative District # 41B (Note: The Minnesota Legislature has a tool to look up legislative district numbers. You must have a precise address and know the zip code of the site. Go to: Who Represents Me tool and find the district where your project is located. 2. A. Current property owner(s): Columbia Heights Leased Housing Associates I, LLLP When was the property purchased? _______________ For what amount? $___________ From whom was the property purchased? _____________________________________ B. Who will develop the site? Columbia Heights Leased Housing Associates I, LLLP Will the developer own the property at any time? ☒ Yes ☐ No When was/will the property be purchased? ____________ For what amount? $______ C. Are eminent domain proceedings necessary to acquire the property on which the cleanup and redevelopment will occur? If so, explain any difficulties anticipated in acquiring the site. No D. Who will own the project site after development? Columbia Heights Leased Housing Associates I, LLLP When was or will the property be purchased? __________ For what amount? $________ 3. Provide a legal description of the site. SITE VALUATION: ASSESSMENT OR APPRAISAL 4. If you are applying for cleanup grant funds you may submit either assessed value information or an appraisal. If you are applying for a revolving loan, you must submit an appraisal and may not submit assessor’s information in place of an appraisal. If your site is publicly-owned, you must still submit a value associated with the property. Cleanup - 3 43 FY 17 Attach an appraisal completed by a qualified independent appraiser licensed under chapter 82B using accepted appraisal methodology which shows the current market value (pre-cleanup) of the property, separately taking into account the effect of the contaminants on the market value. This value should include both the value of the land and, if applicable, any buildings on the Site. Along with the appraisal, please include the projected value after cleanup and development. Current Appraised Value ______________ Projected Value ______________ OR Attach documentation showing the assessed value of the property for the latest year, as determined by the local assessor, shown on the most recent valuation notice used under Minn. Stat. § 273.121. Along with the assessed value, please include the projected value after cleanup and development. Current Assessed Value $342,000 Projected Value _____________ Documentation of the assessed value is included as Attachment 2. MAPS AND SITE FEATURES 5. Attach an accurate and legible site and location map showing locations of prominent and relevant site features such as buildings, retaining walls, etc. (NOTE: maps shall include property boundaries, a north arrow and bar scale). The map(s) should show the following: • The current condition of the site including labeled structures; • The proposed development of the site including labeled structures; and • The location(s) of contamination. Adding photographs is recommended. See attached Figures in Tab 2 for diagrams depicting current conditions, proposed redevelopment, and areas of identified contamination. Representative photographs showing current site conditions are included as Attachment 3. CURRENT AND FUTURE SITE USE 6. Zoning/Land Use: A. Current: Industrial__________ Commercial ____X___ Residential Mixed-use___________ Other (Specify) B. After Cleanup: Industrial ______Commercial ____X___ Residential Mixed-use___________ Other (Specify) 7. If a change in zoning in necessary, please provide a schedule of required approvals. 8. Current economic condition: Vacant lot _X__ Developed site________ Other Cleanup - 4 44 FY 17 9. How many buildings are currently on site? Industrial ___0___ How many are occupied? ______ If vacant, for how long? Commercial ___0___ How many are occupied? ______ If vacant, for how long? Residential ___0___ How many are occupied? ______ If vacant, for how long? 10. Year building(s) was/were built: N/A 11. Please describe the condition of the buildings on the site. 12. Is demolition required for RAP implementation? ☐ Yes ☒ No Is demolition addressed in the RAP? ☐ Yes ☒ No 13. Please describe how site redevelopment will spur adjacent development. SITE HISTORY 14. Please attach a brief synopsis on the history and general background of this site. This includes but is not limited to former uses of the site, known and/or suspected causes of contamination, etc. Also describe the current condition of the site and include a description of existing structures and existing occupants of the site. The Site is currently vacant grass-covered land and undergoing redevelopment. It appears that the east-southeast side of the Site was developed with a foundry by 1912 and the northwest corner of the Site appears to have been originally occupied by Schlock Parlor Frame Company, a furniture manufacturer. That business was replaced before 1950 by Illinois Cooperage Manufacturing Company, a barrel manufacturer, later called Northern Cooperage. The Site was cleared by 2008. The Site is located in an area of historical manufacturing use including a foundry to the north; manufacturing facilities, a soap factory, and a linseed oil business (with aboveground storage tanks depicted) to the east; and a spring manufacturer to the west. Based on the available historical information it appears that the southeast side of the Site was developed by 1912 with a foundry. Railroad tracks bounded the Site and railroad spurs serviced the Site buildings. Underground storage tank releases have been reported at the Site. II. CONTAMINATION 15. Is applicant enrolled in an MPCA Program? ☐ Yes ☐ No VIC Prog. I.D. VP33240/VP33570 VIC Project Manager John Betcher Phone: 651-757-2226 PBP Prog. I.D. __________ PBP Proj. Manager ________________ Phone: ____________ Other ____________________________________________________________________ 16. Current environmental consultant : Consultant Company Name: Braun Intertec Corporation Consultant Name Derek Schilling Phone: 952-995-2674 Cleanup - 5 45 FY 17 17. What contaminants have been identified at the site? The following is a summary of contaminants identified in soil at the Site: metals (lead and arsenic) polycyclic aromatic hydrocarbons (PAHs) and gasoline range organics (GRO) in soil. 18. To qualify for cleanup funding, you must attach a copy of the RAP and written approval of your Response Action Plan from the Minnesota Pollution Control Agency. A Construction Contingency Plan (CCP) was submitted to the MPCA and approved on May 19, 2016. See Attachment 4 for a copy of the CPP and Attachment 5 for a copy of the MPCA CCP Approval letter. Attachment 5 includes a copy of a MPCA Letter, dated October 13, 2016, confirming that the CCP meets the MPCA’s definition of a RAP. The Phase I Environmental Site Assessment (ESA) Report, Phase II ESA Report and Additional Environmental Investigation Results report are included as Attachments 6, 7, and 8, respectively. 19. What is the likely source of contamination? Contaminated fill soil from past land use operations is the likely the source of contamination in soil. 20. Summary of Contamination Information: A. Provide a concise description of the identified contamination and proposed RAP. The description should include the occurrence of the contamination (i.e., are there distinct areas of contamination or is contamination widely disseminated across the site? Is the contamination at the surface or at depth? Past industrial uses of the Site, including a foundry, furniture and barrel manufacturers, and railroad tracks on and adjacent to the Site, have resulted in impacts to the fill soil. In addition, t wo underground storage tank (UST) releases have been reported at the Site. Although the files regarding these releases have been closed by the Minnesota Pollution Control Agency (MPCA), residual contamination may remain. The investigations conducted prior to the start of redevelopment identified fill soil that exhibited low level concentrations of metals (specifically lead and arsenic), gasoline range organics (GRO), diesel range organics (DRO) and polycyclic aromatic hydrocarbons (PAHs). However, lead and arsenic at concentrations greater than their respective Residential Soil Reference Values (SRV) and screening Soil Leaching Values (SLV) and GRO at a concentration greater than the MPCA Criteria for off-Site reuse of soil as “unregulated fill” have been identified at the Site. In addition, various areas of fill soil exhibited Photoionization Detector (PID) readings of 26 to 122 parts per million (ppm) and faint petroleum odors, and low levels of DRO, and GRO were identified in these areas of the Site. Cleanup - 6 46 FY 17 Fill soil appears to be present across the majority of the Site at depths ranging from 2.5 feet to 14 feet below ground surface (bgs). Although the previous investigations identified limited amounts of debris in the fill soil; during the start of redevelopment activities in September 2016, the contaminated fill soil containing significant amounts of debris, which included slag, foundry sands, coal, railroad ties, concrete, metal, brick and lumber, was encountered and required implementation of the MPCA-approved CCP (see Attachment 4). In summary, we completed several borings and test pits across the Site as part of the investigations prior to the start of redevelopment; but unfortunately these locations just missed several significant pockets of impacted fill soil with debris that did not show up during the investigations. As excavations activities, including topsoil clearing, were progressing across the Site, the areas of impacted fill soil with debris and elevated PID readings above the action level (200 ppm as defined in the CCP) was identified requiring the fill material to be disposed at the landfill. Note that the MPCA petroleum brownfields program does allow soil management decisions to be made based on PID readings. As part of redevelopment activities at the Site, subsurface construction activities required excavation of contaminated fill soil with debris. Based on construction plans and the completed work, approximately 20,000 cubic yards (CY) of potentially contaminated fill soil with debris has been excavated from the Site. Full time environmental monitoring was conducted during all excavation activities in order to ensure that all encountered contaminated fill soil was identified, segregated, and properly disposed. B. Complete the following table for soil contamination (be sure to include areas of contamination that have been identified at the site but will not be treated or removed as part of the approved RAP): General contaminant type (i.e., DRO, VOCs, metals, etc.) Total volume of identified contaminated soil (cyds) Total volume of identified contaminated soil to be remediated (cyds) Remedy RAP Cleanup Goal (i.e., residential SRVs, industrial SRVs, etc.) Metals (Arsenic and Lead), PAHs, GRO 20,000 cyds 20,000 cyds Removal and landfill disposal Residential SRVs C. Complete the following table for groundwater contamination. If no or limited groundwater investigation has been conducted, indicate this. Also indicate if a groundwater investigation was conducted but no contamination was detected. Cleanup - 7 47 FY 17 General contaminant type (i.e., DRO, VOCs, metals, etc. Affected aquifer (i.e., water table, deeper aquifers) Approximate dimensions of contaminant plume on- site. Specify if the plume extends off-site. Remedy None D. List all compounds comprising the identified release in soil and the corresponding average and maximum concentration for each compound. Also include petroleum in the table. If distinct areas of contamination are present at the site, please describe separately. (NOTE: It is acceptable to provide an overview with estimated average and maximum concentrations if the amount of analytical data is overwhelming.) (Note: for PAHs, please provide individual compound concentrations or Benzo(a)pyrene equivalent concentrations for the carcinogenic PAH compounds.) Compound Tier I SRV (residential) Average Concentration Maximum Concentration Lead 300 mg/kg 36.3 mg/kg 321 mg/kg Arsenic 9 mg/kg 4.2 mg/kg 9.5 mg/kg GRO 100 mg/kg 43.1 mg/kg 105 mg/kg PAHs 2.0 mg/kg 1.2 mg/kg 1.2 mg/kg E. Please do the same as in D. for groundwater. Compound HRL Average Concentration Maximum Concentration Not Applicable F. If groundwater at the site is contaminated, note the geologic makeup of the affected aquifer (sand/gravel, till, lacustrine clay, etc.), and the estimated average linear velocity (be sure to indicate how this number was determined). Not Applicable G. Briefly describe possible exposure scenarios posed by identified contamination at the site (i.e., ingestion or human contact with contaminated soil, consumption of contaminated groundwater, ecological impacts, etc.), and nearby receptors that could be affected by contaminants migrating from site (high value wetland/creeks/rivers, etc.). Cleanup - 8 48 FY 17 The primary exposure risk posed by the contaminated soil at the Site is ingestion/dermal contact by untrained construction workers that will be conducting Site redevelopment activities and/or future occupants. H. If you are requesting costs for soil vapor mitigation, you must have supporting data. Not Applicable III. COST ANALYSIS: INVESTIGATION, CLEANUP AND PROJECT COST BUDGET 21. What is the total of all eligible investigation, cleanup and project costs for the site? $____________ 22. How much grant funding are you requesting from DEED (cannot be more than 75% of the cost listed in the question above)? $______________ 23. Please fill out the following budget table to identify the investigation costs, cleanup costs and project costs for the site as defined in the instruction section of this application. Attach additional sheets if necessary. BUDGET Eligible Activities for Investigation and RAP Development % Complete Date(s) Completed Total Cost A. Investigation Costs Subtotal Eligible Activities for Soil and Groundwater Cleanup % Complete Date(s) Completed Total Cost B. Cleanup Costs Subtotal C. Total A & B, This is your total cleanup cost* Cleanup - 9 49 FY 17 Other Project Activities Necessary to Implement the RAP % Complete Date(s) Completed Total Cost D. Project Cost Subtotal E. Total A, B & D 24. What is the breakdown of sources for the above budget? Amount Source Status (Committed, pending decision date) _____________ DEED Submitted November 1, 2016 (pending) _____________ ________________________ ___________________________ _____________ _________________________ ___________________________ _____________ _________________________ ____________________________ _____________ TOTAL (should equal Total in line E above) *(12% of the above cleanup costs in line C must be paid with unrestricted funds, as defined on page V; Please indicate which source(s) will contribute to the unrestricted match.) 25. Is all of the project’s financing in place? (i.e., cleanup, construction, operations) All project financing, except for the unanticipated remediation cost, is in place. 26. If requesting project costs, please explain why these costs are necessary to remediate the contamination. We are not requesting project costs at this time. 27. If any of the activities listed above are partially or fully completed, how were those activities financed? The remediation activities were financed using the project redevelopment budget. However, due to the cost of the unanticipated remediation, the project budget incurred a significant impact. If work has occurred, please submit the invoices for which you will be seeking reimbursement. Invoices for already incurred remediation costs will be provided under separate cover. Cleanup - 10 50 FY 17 28. If you are requesting acquisition costs as match, and the amount for acquisition is different from the appraised or assessed value, please explain why there is a difference. ADDITIONAL FUNDING SOURCES 29. Please indicate whether you have applied for or received all funds available to you from other funding sources. If you applied for or received funds, please list the amount(s) below. Source Requested or received all funds available (Y or N)? Amount(s) requested or received? Date(s) requested or received? Met Council N NA NA County ERF Grant N NA NA PetroFund N NA NA ACRRA N NA NA MPCA Funding N NA NA EPA N NA NA Other (Specify) N NA NA COST RECOVERY 30. Has the site been identified as a state or federal Superfund site? ☐ Yes ☒ No 31. Based on question 18, are there any existing or former businesses or landowners who may have caused or contributed to the contamination on the site? ☐ Yes ☒ No If yes, who ? ______________________________________________________________ What is the status of the business (in operation, sold, closed, moved)? ________________ 32. What efforts have been made to recover some or all of the cleanup costs from the party(ies)? Not Applicable, the former property/business owners are no longer in operation. There is a mechanism to recover costs from the responsible party if this grant receives funding. See Minn. Stat. § 116J.557 for further details. FINANCIAL INFORMATION 33. Please submit a copy of the applicant’s most current audit, or financial statement if an audit is not available. If this information is available electronically, you may submit the web address in lieu of a paper copy. The applicant is a single purpose entity that was formed with the intent to develop a multi- tenant apartment community located at the Site. There are no previous financial statements or audits. Cleanup - 11 51 FY 17 34. Is there a possibility that the site will be cleaned up without DEED money? ☒ Yes ☐ No Explain your answer to the question above. The award of DEED money is a critical piece to the financial feasibility of the project. Given the substantial unanticipated costs that have been incurred associated with the Site clean-up, the applicant is forced to find other sources of funding to continue to make the project feasible if it will not receive a DEED grant. The applicant would be set-back if no DEED money was received, but the clean-up of the Site, that has already been completed, was mandatory to complete the project. IV. DEVELOPMENT PLAN AFTER CLEANUP 35. Describe in detail the Development Plan for the site after implementation of the RAP? (Number of buildings or housing units, square footage, etc.). 36. Have all of the required local/city approvals necessary for this project to proceed been obtained (planning commission, zoning, etc.) ☒ Yes ☐ No If not, what remains to be done and what is the process for completing the process of obtaining approvals? 37. What is the estimated cost of the Development (construction costs not including the cleanup costs)? $____________ Of these how much is public? $____________ private? $__________ 38. Is all of the financing in place for the final development of the site? ☒ Yes ☐ No If yes, attach evidence that funds for the project have been secured. If not, what is the process to secure the funds and the timeline for securing them? 39. If the site will be redeveloped for residential use, provide the following data: RENTAL: Total number of units ______ Monthly rental cost per unit $____ Number of affordable units____ Level of affordability ______________ Construction cost per unit $______ OWNER OCCUPIED: Total number of units ____ Cleanup - 12 52 FY 17 Purchase price per unit $______ Number of affordable units/homes ______ Level of affordability _______________ Construction cost per unit $______ 40. Are you applying for HUD financing? ☐ Yes ☒ No If yes, have you received an “Invitation to Apply” from HUD (attach a copy, if so). If not, where are you in the HUD financing process? PROPERTY TAXES 41. What are the property taxes on the site for the current year (prior to cleanup)? $______ 42. What is the projected property tax on the site after redevelopment? $______ A. How were the figures in Questions 41 and 42 determined? _________________ B. Who determined them? _____________ Cleanup - 13 53 FY 17 JOB CREATION AND RETENTION 43. Project the number of new jobs created after cleanup and development of the site. (Jobs that did not exist in Minnesota prior to development) NEW JOBS TABLE Position Title Total # of Full-Time Jobs Total # of Part- Time Jobs Expected Hiring Date Total New Jobs: _________________FTEs 44. Project the number of retained jobs after cleanup and development of the site. (Jobs that existed either on-site or elsewhere in Minnesota prior to development) RETAINED JOBS TABLE Position Title Total # of Full-Time Jobs Total # of Part- Time Jobs Former Location of Retained Jobs Total Retained Jobs: _________________FTEs Cleanup - 14 54 FY 17 PROJECT SCHEDULE 45. Provide a detailed project schedule outlining the individual tasks and schedules of the overall project (for both cleanup and redevelopment of the site). Indicate on this form the expected month and year of individual tasks involved in the project. At a minimum, time lines should include response actions/cleanup activities, demolition, construction start and end date, and any other project activities. Scheduled Tasks: YEAR 2016 YEAR 2017 YEAR 201__ TASK Jan Feb Mar Apr May Jun Jul Aug Sep t Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep t Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep t Oct Nov Dec Clean Up X X Overall Construction X X Occupancy Cleanup Completion date 10/14/2016 Construction Completion date ______/_______/____________ 46. Please list any factors which would change or delay this schedule. Construction delays are associated with a wide variet y of factors including weather or unforeseen existing conditions of the Site. Cleanup - 15 55 FY 17 V. THIRD PARTY/COMPANY COMMITMENT INFORMATION 47. If there is a commitment from a third party to develop on the site after cleanup, please complete the following: Third Party/Company Name: Same as Developer/Owner Contact Person: ______________________________ Title: _______________________________________ Phone Number (include area code): _______________ 48. Do you have an executed development agreement? ☐ Yes ☐ No 49. Please attach a commitment letter from the developer or other commitment documentation, such as a development agreement. (If you cannot obtain a commitment letter from the developer, please explain.) A copy of the Developer Commitment Letter is included as Attachment 9. VI. PAYMENT INFORMATION Most grant payments take place through electronic funds transfer (EFT). To ensure proper payment, a Vendor Number assigned by Minnesota Management and Budget is required. Vendor information is available at Vendor Resources. Financial Contact Person: _______________________________ Telephone Number (include area code): _________________________ State of Minnesota Vendor Number (if known): _________________________________ If a Minnesota Vendor Number is not available, please supply: Federal Employer Identification Number: ___________________________ Cleanup - 16 56 FY 17 VII. RESOLUTIONS 50. Resolutions are required to be adopted prior to submission of the application package. The two required elements are: 1. A resolution from the governing body of the city where the project site is located, which approves the application. 2. A resolution from the applicant committing the local match and authorizing contract signatures. Note: Pursuant to Minn. Stat. § 412.201, Statutory Cities must authorize the Mayor and Clerk to execute all contracts. An applicant may either provide a separate resolution for each of the above, or combine them into a single resolution, as long as they include the same elements. Blank resolutions are included for your convenience. You may choose to reformat or combine them, but make sure to include all of the statements that appear in our examples. A copy of the City Council Resolution is included as Attachment 10. Cleanup - 17 57 AGENDA SECTION CONSENT ITEM ITEM NO. 7H MEETING DATE OCTOBER 24, 2016 CITY OF COLUMBIA HEIGHTS – CITY COUNCIL ITEM: Approval of a Grant Application to Met Council DEPARTMENT: Community Development CITY MANAGER’S APPROVAL: BY/DATE: Keith M Dahl, October 19, 2016 BY/DATE: BACKGROUND: Hy-Vee has uncovered extensive contamination and hazardous materials throughout the Subject Property after environmental investigations were conducted. Specifically, the environmental investigation identified and quantified hazardous materials, which require proper removal and abatement prior to any demolition for renovation. The environmental investigation identified the following contaminants: asbestos, lead, petroleum, diesel range organics (DRO), tetrachloroethane, trichloroethylene, and other volatile organic compounds (VOC). The estimated cost for abatement and contamination clean-up of the pollutants on the Subject Property is $1.98 million, which strains the financial feasibility for Hy-Vee to locate within Columbia Heights without any public financial assistance. Thus, in conjunction with Tax Increment Financing (TIF) assistance from the Columbia Heights Economic Development Authority (EDA), City Staff have also been working with Hy-Vee on applying for contamination cleanup grants offered through the Minnesota Department of Employment and Economic Development (DEED) and the Metropolitan Council (Met Council). The grant application before Council this evening for approval is through the Met Council. Met Council has various contamination clean-up grants that offer funding for the redevelopment of polluted and underproductive sites. To be eligible for many of these grants, a site must reduce the potential threat to the public’s health, create employment opportunities, and increase the tax base of a municipality. The deadline for these grants is November 1, 2016. City Staff and Hy-Vee will submit the grant applications, if approved, requesting a total amount of $1.98 million for the abatement and contamination clean-up of the Subject Property. City Staff anticipates funding from grants will be awarded in January 2017, however it is unknown the actual amount that will be awarded to the Subject Property. STAFF RECOMMENDATION: Staff recommends adopting Resolution 2016-98, a resolution authorizing the approval of a grant application to the Metropolitan Council Livable Communities Tax Base Revitalization Account. RECOMMENDED MOTION(S): Motion: Move to waive the reading of Resolution 2016-98, there being ample copies available to the public. Motion: Move to adopt Resolution 2016-98, a resolution authorizing the approval of a grant application to the Metropolitan Council Livable Communities Tax Base Revitalization Account. ATTACHMENTS: 1. Resolution 2016-98 (2 Pages) 2. Draft Grant Application (18 Pages) City of Columbia Heights – CC Letter 58 RESOLUTION NO. 2016-98 RESOLUTION AUTHORIZING THE APPROVAL OF A GRANT APPLICATION TO THE METROPOLITAN COUNCIL LIVABLE COMMUNITIES TAX BASE REVITILIZATION ACCOUNT. BE IT RESOLVED BY the City Council (Council) for the City of Columbia Heights, Minnesota (City) as follows: WHEREAS that the City is a participant in the Livable Communities Act’s Local Housing Incentives Account Program for 2016 as determined by the Metropolitan Council, and is therefore eligible to make an application to apply for funds under the Tax Base Revitalization Account; and WHEREAS that the City has identified a contamination cleanup project within the City that meets the Tax Base Revitalization Account’s purposes and criteria and are consistent with and promote the purposes of the Metropolitan Livable Communities Act and the policies of the Metropolitan Council’s adopted metropolitan development guide; and WHEREAS that the City has the institutional, managerial and financial capability to ensure adequate project and grant administration; and WHEREAS that the City certifies that it will comply with all applicable laws and regulations as stated in the contract grant agreement; and WHEREAS that the City finds that the required contamination cleanup will not occur through private or other public investment within the reasonably foreseeable future without Tax Base Revitalization Account grant funding; and WHEREAS that the City represents that it has undertaken reasonable and good faith efforts to procure funding for the activities for which Livable Communities Act Tax Base Revitalization Account funding is sought but was not able to find or secure from other sources funding that is necessary for cleanup completion and states that this representation is based on the following reasons and supporting facts: • Due to the extent of asbestos, lead, petroleum, diesel range organics (DRO), tetrachloroethane, trichloroethylene, and other volatile organic compounds (VOC) of the contamination cleanup project, redevelopment of the property is highly unlikely to occur in the foreseeable future without financial assistance; and • The asbestos abatement of the contamination cleanup project does not qualify for Contamination Cleanup Grant Programs through the Minnesota Department of Employment and Economic Development. NOW, THEREFORE BE IT RESOLVED that the Council authorizes the City Manager to submit an application for Metropolitan Council Tax Base Revitalization Account grant funds and, if the City is awarded a Tax Base Revitalization Account grant project for this project, the City will be the grantee and agrees to act as legal sponsor to administer and be responsible for grant funds expended for the project contained in the Tax Base Revitalization grant application submitted on November 1, 2016. Resolution 2016-98 59 City of Columbia Heights – EDA Resolution Page 2 Passed this _________ day of ______________________, 2016 Offered by: Seconded by: Roll Call: Gary L. Peterson, President Attest: Katie Bruno, Council Secretary/City Clerk 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 AGENDA SECTION ITEM NO. MEETING DATE CITY OF COLUMBIA HEIGHTS - COUNCIL LETTER ITEM: Adopt Resolution 16-95, Adopting Optional Appendices of the State Fire Code DEPARTMENT: Fire CITY MANAGER’S APPROVAL: BY/DATE: Gary Gorman / October 24, 2016 BY/DATE: BACKGROUND: The State of Minnesota adopted a new State Fire Code on May 2, 2016. City Code automatically adopts the most recent addition of the State Fire Code. The Minnesota State Fire Code has optional appendices that can be adopted by individual municipalities for their use. The adoptable optional appendices are: Appendix A Board of Appeals Appendix B Fire Flow Requirements for Buildings Appendix C Fire Hydrant Locations and Distributions Appendix D Fire Apparatus Access Roads Appendix F Hazard Rankings Appendix H Hazardous Materials Management Plan & Inventory Statement Appendix I Fire Protection Systems Appendix J Building Information Sign Appendix K Fire and Barbecues on Balconies or Patios Appendix L Emergency Responder Radio Coverage STAFF RECOMMENDATION: Based on our research of these appendices and their relevance for use in the City of Columbia Heights it is proposed to adopt appendices D, I, J, and K. RECOMMENDED MOTION(S): MOTION: Move to waive the reading of Resolution 2016-95, there being ample copies available to the public. MOTION: Move to adopt Resolution 2016-95, adopting optional appendices of the Minnesota State Fire Code. ATTACHMENTS: Resolution 2016-95 Council Letter for Resolution 2016-95 Consent 7I October 24, 2016 79 RESOLUTION NO. 2016-95 A resolution of the City Council for the City of Columbia Heights, Minnesota, Whereas, on May 2, 2016 the State of Minnesota Adopted a new Minnesota State Fire Code with optional appendices, and Whereas, Chapter 8, Article IV of the Columbia Heights City Code automatically adopts the most recent edition of the Minnesota State Fire Code and allows for the adoption of optional appendices through Council Resolution, and Whereas, the adoptable Optional Appendices are: Appendix A Board of Appeals Appendix B Fire-flow Requirements for Buildings Appendix C Fire Hydrant Locations and Distribution Appendix D Fire Apparatus Access Roads Appendix F Hazard Ranking Appendix H Hazardous Materials Management Plan &Inventory Statement Appendix I Fire Protection Systems Appendix J Building Information Sign Appendix K Fire & Barbecues on Balconies or Patios Appendix L Emergency Responder Radio Coverage Now, therefore, in accordance with the foregoing, and all ordinances and regulations of the City of Columbia Heights, the City Council of the City of Columbia Heights makes the following: FINDINGS OF FACT The Fire Department has researched all of the adoptable optional appendices and has found that Appendices’ D, I, J, and K are relevant to the City of Columbia Heights and are hereby adopted. This Resolution shall be effective immediately upon its enactment by the City Council ORDER OF COUNCIL Passed this _________ day of ______________________, 2016 Offered by: Seconded by: Roll Call: Gary L. Peterson, Mayor Attest: Katie Bruno, City Clerk/Council Secretary RESOLUTION NO 2016-95 80 81 AGENDA SECTION CONSENT ITEM NO. MEETING DATE OCTOBER 24, 2016 CITY OF COLUMBIA HEIGHTS - COUNCIL LETTER ITEM: PROFESSIONAL SERVICES AGREEMENT FOR THE DESIGN AND CONSTRUCTION ADMINISTRATION OF THE CIRCLE TERRACE PARK MULTI PURPOSE BUILDING DEPARTMENT: Public Works CITY MANAGER’S APPROVAL: BY/Date: Kevin Hansen / October 20, 2016 BY/Date: BACKGROUND: In 2015 the Master Plan for LaBelle Park was modified by expanding the park and adding two lots to the north of the existing play lot. The plan updates the play lot and includes a multi-purpose community building on the two additional lots. At the August 2016 council meeting, new equipment was approved that includes all the play elements of the plan including a swing set, a small playset with slides, the engineered wood fiber surfacing, matching benches and trash can, and a basketball hoop for the sport court. ANALYSIS/CONCLUSIONS: Staff sent out a request to the two landscape architectural firms with the most recent experience in the City for architectural proposals on the multi-purpose building. Two proposals were received with the following costs: Proposal Fees ISG $25,500* Stantec $26,400* *Plus reimbursables. Funding for the project shall come from a CDBG grant ($236,771) and the Park Development Fund (38,750). Interior furnishing and treatments shall be provided by the Police Forfeiture Fund. RECOMMENDED MOTION(S): Move to enter into an agreement for the design and construction administration of the Circle Terrace Park multi-purpose building with the consulting engineering firm of ISG based upon their qualified, responsible proposal for a cost not-to-exceed $25,500 appropriated from Fund 412-51609-3050. ATTACHMENT(S): Site Layout 7K 82 CIRCLE TERRACE BENCHMARK HYD. TNFH 255.89 5" THICK CONCRETE PAVEMENT (TYP), SEE DETAIL _____ 4' HIGH BLACK VINYL-COATED CHAINLINK FENCING (TYP), SEE DETAIL _____ 4' HIGH BLACK VINYL-COATED CHAINLINK FENCING (TYP), SEE DETAIL _____ SPORTS COURT, SEE DETAIL _____ SECURITY LIGHT, SEE DETAIL _____ BENCH SEATING (TYP), SEE DETAIL _____ 5" THICK CONCRETE PAVING WITH INTEGRAL CURB (INTEGRAL CURB AROUND PLAY CONTAINER ONLY) (TYP), SEE DETAIL _____ STREET LIGHT (CITY STANDARD) (TYP), SEE DETAIL ______ BY OWNER PLAY EQUIPMENT AS SUPPLIED BY_____________ BY OWNER PLAY CONTAINER SAFETY SURFACING (TYP) STREET LIGHT (CITY STANDARD) (TYP), SEE DETAIL ______ PARKING BAY STRIPING AND H.C. PARKING STALL SYMBOL (TYP) S212 CURB AND GUTTER (TYP), SEE DETAIL _____ S412 CURB AND GUTTER (TYP), SEE DETAIL _____ S412 CURB AND GUTTER (TYP), SEE DETAIL _____ BITUMINOUS PAVING (TYP), SEE DETAIL _____ BY OWNER PARK SIGN (CITY STANDARD) SWING BENCH, SEE DETAIL ____) FUTURE COMMUNITY BUILDING AND OPEN AIR PICNIC SHELTER BY OWNER H.C. PARKING SIGN 3' HIGH BLACK VINYL-COATED CHAINLINK FENCING (TYP), SEE DETAIL _____ 3' HIGH BLACK VINYL-COATED CHAINLINK FENCING (TYP), SEE DETAIL _____ LEGEND BITUMINOUS PAVEMENT CONCRETE WALKWAY PAVEMENT CONCRETE MAINTENANCE BAND SAWCUT & REMOVE CURB & GUTTER CONCRETE CURB AND GUTTER BLACK VINYL-COATED CHAINLINK FENCING PROJECT 19031 L2-LAYOUT NO DATE DESCRIPTION REVISION SCHEDULE PROJECT NO. FILE NAME DESIGNED BY DRAWN BY ORIGINAL ISSUE DATE CLIENT PROJECT NO. REVIEWED BY THIS DOCUMENT IS THE PROPERTY OF I & S GROUP, INC. AND MAY NOT BE USED, COPIED OR DUPLICATED WITHOUT PRIOR WRITTEN CONSENT. TITLE SHEET CITY OF COLUMBIA HEIGHTS CIRCLE TERRACE PARK REMODEL COLUMBIA HEIGHTS MINNESOTA SITE LAYOUT PLAN L2.11 059984 AMP AMP ---- 16-19031 --/--/-- I HEREBY CERTIFY THAT THIS PLAN, SPECIFICATION, OR REPORT WAS PREPARED BY ME OR UNDER MY DIRECT SUPERVISION AND THAT I AM A DULY LICENSED PROFESSIONAL ENGINEER UNDER THE LAWS OF THE STATE OF MINNESOTA. LIC. NO.DATE LIC. NO.DATE I HEREBY CERTIFY THAT THIS PLAN, SPECIFICATION, OR REPORT WAS PREPARED BY ME OR UNDER MY DIRECT SUPERVISION AND THAT I AM A DULY LICENSED LANDSCAPE ARCHITECT UNDER THE LAWS OF THE STATE OF MINNESOTA. Andrew T. Brandel 47,078 Amanda M. Prosser 46,766 B.M. ELEVATION=255.89 TNFH WEST SIDE CIRCLE TERRACE BLVD. APPROXIMATELY 70 FT NORTH OF SOUTH PROJECT PROPERTY LINE 3020100 Scale: 1" = 10'-0" 83 84 AGENDA SECTION CONSENT ITEM NO. MEETING DATE OCTOBER 24, 2016 CITY OF COLUMBIA HEIGHTS - COUNCIL LETTER ITEM: Rental Housing Licenses DEPARTMENT: Fire CITY MANAGER’S APPROVAL: BY/DATE: Gary Gorman BY/DATE: STAFF RECOMMENDATION: Approval of attached list of rental housing applications. RECOMMENDED MOTION(S): Move to approve the items listed for rental housing license applications for October 24, 2016, in that they have met the requirements of the Property Maintenance Code. ATTACHMENTS: List of Rental Licenses to Approve (TIFF) 7M 85 86 87 88 89 90 AGENDA SECTION CONSENT AGENDA ITEM NO. 7N MEETING DATE OCT 24, 2016 , 2016 , 2015CITY OF COLUMBIA HEIGHTS - COUNCIL LETTER Document1 ITEM: LICENSE AGENDA DEPARTMENT: Community Development CITY MANAGER’S APPROVAL: BY/Date: Oct 19, 2016 BY/Date: BACKGROUND/ANALYSIS Attached is the business license agenda for the October 24, 2016 Council meeting. This agenda consists of applications for 2016 Contractor Licenses and Business Licenses for 2016-17. At the top of the license agenda you will notice a phrase stating *Signed Waiver Form Accompanied Application. This means that the data privacy form has been submitted as required. If not submitted, certain information cannot be released to the public. RECOMMENDED MOTION: Move to approve the items as listed on the business license agenda for October 24, 2016 as presented. 91 City of Columbia Heights - Council Letter Page 2 TO CITY COUNCIL October 24, 2016 *Signed Waiver Form Accompanied Application CONTRACTOR’S LICENSES-2016 BLDG *Royalton Heating & Cool 4120 85th Ave No, Brk Park $60 *US Patio Systems 218 N River Ridge Cir, Burnsville $60 All Metro Excavating 337 County Rd 81, Osseo $60 Dailey Construction Inc 3017 Southbrook Dr, Bloomington $60 *M & D Pl & Htg 11050 26th St NE, St Michael $60 BUSINESS LICENSES 2017 FUEL DISPENSING: *Columbia Hts Rental 3901 Central Ave $50 *Northern Tier/SA 5000 Central Ave $160 2017 VEHICLE RENTAL: *Columbia Hts. Rental 3901 Central Ave $50 2017 GAMES OF SKILL: *American Amusements/Lieberman 2100 W 96th St, Bloomington $90 For El Tequila and Jeff’s Bobby & Steve’s 2016 & 2017 MASSAGE: Business: *Tuina Massage Inc. dba Sunny Massage 5019 University Ave $584 Individual: *Julia Wang owner/therapist at 5019 University Ave $120 92 CITY OF COLUMBIA HEIGHTS FINANCE DEPARTMENT COUNCIL MEETING OF: October 24, 2016 . STATE OF MINNESOTA COUNTY OF ANOKA CITY OF COLUMBIA HEIGHTS Motion: Move that in accordance with Minnesota Statute 412.271, subd. 8 the City Council has reviewed the list of claims paid covering check number 163180 through 163359 in the amount of $ 963,877.42. These checks have been examined and found to be legal charges against the CITY OF COLUMBIA HEIGHTS, and are herby, recommende d for payment. Agenda Section Consent Item No. 7O Meeting Date October 24, 2016 93 ACS FINANCIAL SYSTEM CITY OF COLUMBIA HEIGHTS 10/20/2016 12:18:54 Check History GL050S-V08.02 COVERPAGE GL540R ******************************************************************************* * * * * L E A N N O * * * * * * * * L E A N N O * * * * * * * * L E A N N O * * * * * * * * L E A N N O * * * * ******************************************************************************* Report Selection: Optional Report Title.......10/24/2016 COUNCIL LISTING INCLUSIONS: Fund & Account. thru Check Date.................. thru Source Codes................ thru Journal Entry Dates......... thru Journal Entry Ids........... thru Check Number................ 163180 thru 163359 Project..................... thru Vendor...................... thru Invoice..................... thru Purchase Order.............. thru Bank........................ thru Voucher .................... thru Released Date............... thru Cleared Date................ thru Include Exp/Rev Closing Entries N Create Excel file & Download N Run Instructions: Jobq Banner Copies Form Printer Hold Space LPI Lines CPI CP SP RT L LEANNO 01 PRT04 Y S 6 066 10 Y Y 94 ACS FINANCIAL SYSTEM CITY OF COLUMBIA HEIGHTS 10/20/2016 12:18:54 Check History GL540R-V08.02 PAGE 1 10/24/2016 COUNCIL LISTING BANK VENDOR CHECK# CHECK DATE AMOUNT BANK CHECKING ACCOUNT AARP 163180 10/12/16 240.00 ACE HARDWARE 163181 10/12/16 44.21 AMERICAN BOTTLING COMPAN 163182 10/12/16 275.74 ANOKA COUNTY LICENSE CEN 163183 10/12/16 60.00 ANOKA CTY - CENTRAL COMM 163184 10/12/16 969.65 ARTISAN BEER COMPANY 163185 10/12/16 1,243.15 ASPEN MILLS, INC. 163186 10/12/16 449.50 ASSURED SECURITY INC 163187 10/12/16 523.00 BAUHAUS BREW LABS LLC 163188 10/12/16 285.00 BELLBOY BAR SUPPLY 163189 10/12/16 436.08 BELLBOY CORPORATION 163190 10/12/16 1,239.62 BERNICK'S WINE 163191 10/12/16 2,626.05 BOOM ISLAND BREWING COMP 163192 10/12/16 82.00 BRAUN INTERTEC CORP INC 163193 10/12/16 4,954.60 BRAY/LIZ 163194 10/12/16 26.00 BREAKTHRU BEVERAGE MN W& 163195 10/12/16 33,494.40 BRP VETERINARY MINNESOTA 163196 10/12/16 525.00 BUSINESS JOURNAL/THE 163197 10/12/16 105.00 CAPITOL BEVERAGE SALES L 163198 10/12/16 8,166.35 CENTURYLINK 163199 10/12/16 178.62 CHANKASKA CRK RANCH&WINE 163200 10/12/16 332.64 COMCAST 163201 10/12/16 1,915.00 COMMERCIAL STEAM TEAM 163202 10/12/16 2,933.96 CREATE CONSTRUCTION LLC 163203 10/12/16 21,511.25 CRYSTAL SPRINGS ICE LLC 163204 10/12/16 896.75 DU ALL SERVICE CONTRACTO 163205 10/12/16 574.38 EMBROIDERY & MORE 163206 10/12/16 47.50 FIRE EQUIPMENT SPECIALTI 163207 10/12/16 143.50 G & K SERVICES INC 163208 10/12/16 19.72 GENUINE PARTS/NAPA AUTO 163209 10/12/16 137.46 GPRS 163210 10/12/16 100.00 GREAT LAKES COCA-COLA DI 163211 10/12/16 842.28 G4S SECURE SOLUTIONS USA 163212 10/12/16 184.10 HANSON/ERIC 163213 10/12/16 51.14 HEINRICH ENVELOPE CORP 163214 10/12/16 388.50 HERRINGER/GERRY 163215 10/12/16 70.00 HOHENSTEINS INC 163216 10/12/16 2,193.44 HOPKINS MEDICAL PRODUCTS 163217 10/12/16 138.50 HOTSY EQUIPMENT OF MINN 163218 10/12/16 310.36 HUBER/KATHY 163219 10/12/16 207.79 INDEED BREWING COMPANY L 163220 10/12/16 622.20 INNOVATIVE OFFICE SOLUTN 163221 10/12/16 79.83 INSTITUTE FOR ENVIRON AS 163222 10/12/16 2,069.27 J & R LARSON GROUNDS MAI 163223 10/12/16 3,500.00 J H LARSON ELECTRIC COMP 163224 10/12/16 341.03 JEFFERSON FIRE & SAFETY 163225 10/12/16 8,157.20 JJ TAYLOR DIST OF MN 163226 10/12/16 11,103.09 95 ACS FINANCIAL SYSTEM CITY OF COLUMBIA HEIGHTS 10/20/2016 12:18:54 Check History GL540R-V08.02 PAGE 2 10/24/2016 COUNCIL LISTING BANK VENDOR CHECK# CHECK DATE AMOUNT BANK CHECKING ACCOUNT JOHNSON BROS. LIQUOR CO. 163227 10/12/16 30,862.87 KENNEDY & GRAVEN 163228 10/12/16 2,784.37 LEE/JOHN 163229 10/12/16 500.00 MAC QUEEN EQUIPMENT CO. 163230 10/12/16 673.05 MARCO, INC 163231 10/12/16 52.09 MCDONALD DISTRIBUTING CO 163232 10/12/16 488.20 MENARDS CASHWAY LUMBER-F 163233 10/12/16 428.12 METRO COUNCIL ENVIROMENT 163234 10/12/16 398,544.30 METRO UTILITIES INC 163235 10/12/16 10,781.00 METROPOLITAN COUNCIL WAS 163236 10/12/16 81,196.67 MINNEAPOLIS FINANCE DEPT 163237 10/12/16 121,829.44 MINNESOTA PREMIER PUBLCT 163238 10/12/16 1,050.00 MN DEPT OF ADMINISTRATIO 163239 10/12/16 55.00 MN DEPT OF LABOR & INDUS 163240 10/12/16 5,979.72 NORTHEASTER 163241 10/12/16 530.00 OFFICE DEPOT 163242 10/12/16 388.11 PHILLIPS WINE & SPIRITS 163243 10/12/16 10,439.78 PIONEER RIM & WHEEL CO. 163244 10/12/16 322.60 POINT EMBLEMS 163245 10/12/16 332.50 POPP.COM INC 163246 10/12/16 543.38 PREMIUM WATERS INC 163247 10/12/16 20.50 PRO GRAPHICS 163248 10/12/16 50.00 RAPIT PRINTING - NEW BRI 163249 10/12/16 438.14 RED BULL DISTRIBUTION CO 163250 10/12/16 170.00 RODDY/NITA 163251 10/12/16 65.00 RODRIGUEZ PEREZ/PEDRO 163252 10/12/16 500.00 SBSI INC 163253 10/12/16 120.00 SCHWAAB INC 163254 10/12/16 126.80 SETPOINT SYSTEMS CORPORA 163255 10/12/16 202.00 SHI INC 163256 10/12/16 389.00 SOUKUP/WILLIAM 163257 10/12/16 518.00 SOUTHERN GLAZER'S 163258 10/12/16 13,289.09 STREICHER'S GUN'S INC/DO 163259 10/12/16 596.00 SZUREK/MARLAINE 163260 10/12/16 140.00 TASER INTERNATIONAL INC 163261 10/12/16 102.11 TKO WINES INC 163262 10/12/16 116.00 TRANSACT TECHNOLOGIES 163263 10/12/16 238.67 TRUGREEN CHEMLAWN 163264 10/12/16 237.00 TWIN CITIES JUNK HAULING 163265 10/12/16 258.00 TWIN CITY WATER CLINIC I 163266 10/12/16 75.00 UNITED RENTALS 163267 10/12/16 1,647.42 VERIZON WIRELESS 163268 10/12/16 1,197.20 WSB & ASSOCIATES INC 163269 10/12/16 30.25 XCEL ENERGY (N S P) 163270 10/12/16 8.72 ZENTELLA/NAYELY 163271 10/12/16 489.31 ZIEGLER INC 163272 10/12/16 1,545.32 4IMPRINT.COM 163273 10/12/16 298.42 96 ACS FINANCIAL SYSTEM CITY OF COLUMBIA HEIGHTS 10/20/2016 12:18:54 Check History GL540R-V08.02 PAGE 3 10/24/2016 COUNCIL LISTING BANK VENDOR CHECK# CHECK DATE AMOUNT BANK CHECKING ACCOUNT ACE HARDWARE 163274 10/19/16 34.87 AID ELECTRIC SERVICE INC 163275 10/19/16 2,584.82 AMERICAN WATER WORKS ASS 163276 10/19/16 191.00 AMERIPRIDE LINEN INC 163277 10/19/16 395.83 ANOKA COUNTY 163278 10/19/16 112.50 ANOKA COUNTY LIBRARY 163279 10/19/16 131.45 ANOKA COUNTY TREASURER 163280 10/19/16 315.62 ARTISAN BEER COMPANY 163281 10/19/16 1,575.00 ASPEN MILLS, INC. 163282 10/19/16 206.55 BAKER & TAYLOR 163283 10/19/16 3,144.47 BARNA GUZY & STEFFEN LTD 163284 10/19/16 14,127.00 BAUHAUS BREW LABS LLC 163285 10/19/16 188.00 BELLBOY BAR SUPPLY 163286 10/19/16 702.24 BELLBOY CORPORATION 163287 10/19/16 2,295.00 BERNICK'S WINE 163288 10/19/16 2,315.90 BOURGEOIS/KELLI 163289 10/19/16 904.77 BREAKTHRU BEVERAGE MN BE 163290 10/19/16 11,245.66 BREAKTHRU BEVERAGE MN W& 163291 10/19/16 24,788.69 BUESGENS/CONNIE 163292 10/19/16 22.00 BUILDING FASTENERS INC 163293 10/19/16 19.43 BUREAU OF CRIMINAL APPRE 163294 10/19/16 630.00 CAPITOL BEVERAGE SALES L 163295 10/19/16 6,514.14 CENGAGE LEARNING INC 163296 10/19/16 247.41 CENTER POINT ENERGY 163297 10/19/16 47.55 CENTURYLINK 163298 10/19/16 45.69 CHAMBERLAIN OIL COMPANY 163299 10/19/16 1,086.00 COMMERCIAL ASPHALT 163300 10/19/16 5,433.41 CUMMINS N POWER, LLC 163301 10/19/16 428.50 DAKOTA COUNTY LIBRARY 163302 10/19/16 28.00 DALCO ENTERPRISES INC 163303 10/19/16 333.37 DELEGARD TOOL CO INC 163304 10/19/16 161.96 DEMCO, INC. 163305 10/19/16 137.91 EMERGENCY APPARATUS MAIN 163306 10/19/16 681.47 FERGUSON WATERWORKS INC 163307 10/19/16 1,558.97 FLEETPRIDE INC 163308 10/19/16 61.67 FOLEY/BARBARA 163309 10/19/16 73.76 G & K SERVICES INC 163310 10/19/16 386.82 GENUINE PARTS/NAPA AUTO 163311 10/19/16 96.47 GOPHER STATE ONE CALL IN 163312 10/19/16 249.75 GROVE NURSERY 163313 10/19/16 271.55 G4S SECURE SOLUTIONS USA 163314 10/19/16 110.46 HOHENSTEINS INC 163315 10/19/16 3,203.80 INDEED BREWING COMPANY L 163316 10/19/16 427.00 INTELLITECH INDUSTRIES I 163317 10/19/16 1,275.00 INTN'L ASSOC PROPERTY&EV 163318 10/19/16 350.00 JANWAY 163319 10/19/16 625.00 JJ TAYLOR DIST OF MN 163320 10/19/16 15,949.08 97 ACS FINANCIAL SYSTEM CITY OF COLUMBIA HEIGHTS 10/20/2016 12:18:54 Check History GL540R-V08.02 PAGE 4 10/24/2016 COUNCIL LISTING BANK VENDOR CHECK# CHECK DATE AMOUNT BANK CHECKING ACCOUNT JOHNSON BROS. LIQUOR CO. 163321 10/19/16 19,855.18 K & S ENGRAVING LLC 163322 10/19/16 104.50 LAKE SUPERIOR COLLEGE 163323 10/19/16 600.00 LEAGUE OF MN CITIES INS 163324 10/19/16 1,000.00 LIBRARY STORE INC 163325 10/19/16 159.50 LIFT PRO 163326 10/19/16 45.03 LOFFLER COMPANIES INC 163327 10/19/16 809.79 MAYO CLINIC HEALTH LETTE 163328 10/19/16 31.52 MCDONALD DISTRIBUTING CO 163329 10/19/16 1,148.00 MEDTOX LABORATORIES, INC 163330 10/19/16 92.32 MENARDS CASHWAY LUMBER-F 163331 10/19/16 94.76 MIDWAY FORD 163332 10/19/16 266.03 MIDWEST ASPHALT CO. 163333 10/19/16 856.58 MINNESOTA CLE 163334 10/19/16 695.00 MINNESOTA LIBRARY ASSOC. 163335 10/19/16 496.00 MN DEPT OF TRANSPORTATIO 163336 10/19/16 331.85 MN EQUIPMENT SOLUTIONS I 163337 10/19/16 20.38 MN RURAL WATER ASSOC 163338 10/19/16 250.00 NYSTROM PUBLISHING COMPA 163339 10/19/16 2,725.00 OFFICE DEPOT 163340 10/19/16 408.07 OFFICE DEPOT 163341 10/19/16 51.24 PAUSTIS & SONS WINE COMP 163342 10/19/16 566.75 PHILLIPS WINE & SPIRITS 163343 10/19/16 4,567.41 PONCE PARRA/BENITA 163344 10/19/16 390.22 PREMIUM WATERS INC 163345 10/19/16 94.40 ROYAL TIRE 163346 10/19/16 987.44 SAUMWEBER/CHRISTIAN 163347 10/19/16 199.41 SCOTT/LAWRENCE L. 163348 10/19/16 106.87 SOUTHERN GLAZER'S 163349 10/19/16 4,512.90 SPOK INC 163350 10/19/16 42.45 STAPLES ADVANTAGE 163351 10/19/16 76.10 TRUGREEN CHEMLAWN 163352 10/19/16 99.00 UNIQUE MANAGEMENT SERVIC 163353 10/19/16 44.75 UNITED RENTALS 163354 10/19/16 1,234.40 VERIZON WIRELESS 163355 10/19/16 60.06 VINOCOPIA INC 163356 10/19/16 4,487.13 WINE MERCHANTS 163357 10/19/16 2,516.57 WITT/JOHN 163358 10/19/16 659.43 XCEL ENERGY (N S P) 163359 10/19/16 2,031.83 963,877.42 98 ACS FINANCIAL SYSTEM CITY OF COLUMBIA HEIGHTS 10/20/2016 12:18:54 Check History GL540R-V08.02 PAGE 5 10/24/2016 COUNCIL LISTING BANK VENDOR CHECK# CHECK DATE AMOUNT REPORT TOTALS: 963,877.42 RECORDS PRINTED - 000983 99 ACS FINANCIAL SYSTEM CITY OF COLUMBIA HEIGHTS 10/20/2016 12:18:54 Check History GL060S-V08.02 RECAPPAGE GL540R FUND RECAP: FUND DESCRIPTION DISBURSEMENTS ---- ---------------------------- 101 GENERAL 35,870.71 201 PLANNING & INSPECTIONS 417.97 204 EDA ADMINISTRATION 295.39 212 STATE AID MAINTENANCE 41.78 225 CABLE TELEVISION 530.95 240 LIBRARY 6,977.80 371 TIF T4: KMART/CENTRAL AVE 1,563.52 376 TIF DISTRICTS A3/C7/C8 1,182.85 412 CAPITAL IMPROVEMENT PARKS 141.64 415 CAPITAL IMPRVMT - PIR PROJ 24,430.23 420 CAP IMPROVEMENT-DEVELOPMENT 2,107.27 439 FIRE CAPITAL EQUIPMENT 7,225.00 450 CAPITAL BLDG - LIBRARY 4,474.85 601 WATER UTILITY 123,681.42 602 SEWER UTILITY 81,376.70 603 REFUSE FUND 2,751.88 604 STORM SEWER UTILITY 3,738.31 609 LIQUOR 230,069.07 651 WATER CONSTRUCTION FUND 23,309.76 701 CENTRAL GARAGE 6,776.06 705 BUILDING MAINTENANCE 51.14 720 INFORMATION SYSTEMS 162.78 880 PERMIT SURCHARGE 404,773.18 883 CONTRIBUTED PROJECTS-OTHER 927.16 884 INSURANCE 1,000.00 TOTAL ALL FUNDS 963,877.42 BANK RECAP: BANK NAME DISBURSEMENTS ---- ---------------------------- BANK CHECKING ACCOUNT 963,877.42 TOTAL ALL BANKS 963,877.42 100 AGENDA SECTION PUBLIC HEARINGS ITEM NO. 8A MEETING DATE OCTOBER 24, 2016 CITY OF COLUMBIA HEIGHTS - COUNCIL LETTER ITEM: Adopt Resolution For Abatement DEPARTMENT: Fire CITY MANAGER’S APPROVAL: BY/DATE: Gary Gorman BY/DATE: STAFF RECOMMENDATION: Declaration of a nuisance and abatement of violations within the City of Columbia Heights is requested regarding properties at: 2016-91 – 4309 Main Street NE for failure to meet the requirements of the Property Maintenance Code. RECOMMENDED MOTION(S): Move to close the public hearing and to waive the reading of Resolution Number 2016-91, there being ample copies available to the public. Move to adopt Resolution Number 2016-91, being resolution of the City Council of the City of Columbia Heights declaring the property listed a nuisance and approving the abatement of violations from the properties pursuant to City Code section 8.206. ATTACHMENTS: 2016-91 Council Res-Dec of Nuis-4309 Main St 101 RESOLUTION NO. 2016-91 Resolution of the City Council for the City of Columbia Heights declaring the property a nuisance and approving abatement of ordinance violations pursuant to Chapter 8, Article II, of City Code, of the property owned by Julio Medina (Hereinafter "Owner of Record"). Whereas, the owner of record is the legal owner of the real property located at 4309 Main Street N.E., Columbia Heights, Minnesota. And whereas, pursuant to Columbia Heights Code, Chapter 8, Article II, Section 8.206, written notice setting forth the causes and reasons for the proposed council action contained herein was sent via regular mail to the owner of record on September 22, 2016. Now, therefore, in accordance with the foregoing, and all ordinances and regulations of the City of Columbia Heights, the City Council of the City of Columbia Heights makes the following: FINDINGS OF FACT 1.That on August 23, 2016, an inspection was conducted on the property listed above. Inspectors found violations. A compliance order was sent via regular mail to the owner at the address. 2.That on September 22, 2016, inspectors re-inspected the property listed above. Inspectors noted that violations remained uncorrected. A compliance order and statement of cause was mailed via regular mail to the owner listed in the property records. 3.That on October 13, 2016, inspectors re-inspected the property and found that violations remained uncorrected. 4.That based upon said records of the Fire Department, the following conditions and violations of City Codes(s) were found to exist, to wit: A. Repair/replace all broken windows. B. Secure windows to prevent entry. 5.That all parties, including the owner of record and any occupants or tenants, have been given the appropriate notice of this hearing according to the provisions of the City Code Section 8.206(A) and 8.206(B). CONCLUSIONS OF COUNCIL 1.That the property located at 4309 Main Street N.E. is in violation of the provisions of the Columbia Heights City Code as set forth in the Notice of Abatement. 2.That all relevant parties and parties in interest have been duly served notice of this hearing, and any other hearings relevant to the abatement of violations on the property listed above. 3.That all applicable rights and periods of appeal as relating to the owner of record, occupant, or tenant, as the case may be, have expired, or such rights have been exercised and completed. 102 City of Columbia Heights - Council Resolution Page 2 ORDER OF COUNCIL 1. The property located at 4309 Main Street N.E. constitutes a nuisance pursuant to City Code. 2. That a copy of this order shall be served upon all relevant parties and parties in interest. Passed this _________ day of ______________________, 2016 Offered by: Seconded by: Roll Call: Gary L. Peterson, Mayor Attest: Katie Bruno, City Clerk/Council Secretary 103 AGENDA SECTION PUBLIC HEARING ITEM NO. 8B MEETING DATE OCTOBER 24, 2016 CITY OF COLUMBIA HEIGHTS – CITY COUNCIL ITEM: Establishment of the Central Valu Center TIF District DEPARTMENT: Community Development CITY MANAGER’S APPROVAL: BY/DATE: Keith M Dahl, October 17, 2016 BY/DATE: BACKGROUND: Hy-Vee, Inc. (Hy-Vee) has an option agreement with Brixmor to acquire the Central Valu Center located on a 10.14 acre sit at 4300 Central Avenue NE (Subject Property). Built in 1962; the Central Valu Center is a 140,281 square foot shopping center that currently is predominantly vacant. Roughly, less than one third of the shopping center is occupied by tenants, which include Ace Hardware, Dollar Tree, and Meineke Automotive. Hy-Vee originally desired to buy-out all the tenants’ lease agreements in an effort to acquire the entire property for redevelopment; however, after unsuccessful negotiations to relocate the tenants, Hy-Vee determined the only possible development option was to renovate the structurally substandard building. The proposed renovation approved by the Planning & Zoning Commission (P&Z) on September 6, 2016 aligns the structure with the same design palette and style already constructed at other Hy-Vee grocery stores across the metropolitan region. In addition to an increased total project cost associated with renovations, Hy-Vee has uncovered extensive contamination and hazardous materials throughout the interior of the structure and in the soil underneath the structure on the Subject Property. The purpose of conducting environmental investigations is to meet property demolition guidelines as set forth by the Minnesota Pollution Control Agency (MPCA) and the Minnesota Department of Health (MDH). Specifically, the environmental investigation identified and quantified hazardous materials, which require proper removal and abatement prior to any demolition for renovation. The environmental investigation identified the following contaminants: asbestos, lead, petroleum, diesel range organics (DRO), tetrachloroethane, trichloroethylene, and other volatile organic compounds (VOC). The estimated cost for abatement and contamination clean-up of the pollutants on the Subject Property is $1.98 million, which strains the financial feasibility for Hy-Vee to locate within Columbia Heights without any public financial assistance. Thus, Hy-Vee has requested Tax Increment Financing (TIF) assistance from the Columbia Heights Economic Development Authority (EDA) to offset a portion of the unexpected costs associated with the renovations of the Subject Property. TIF is a public financial assistance method used by many cities, which uses a portion of the future tax revenue from a specific area to promote development through subsidizing qualified development costs incurred from redevelopment within that specific area. When a TIF district is created, the current value of all the taxable property within the district is frozen at the current base value. Over the life span of the TIF district, the County, City and School District collect taxes from the frozen base value. Meanwhile, the development in the TIF district increases the value of the property within the district. The tax collected from the increase in property value is the “tax increment” revenue that reimburses the qualified development costs from redevelopment. Upon receiving the request from Hy-Vee for TIF assistance, City Staff and Ehlers, the EDA’s financial consultant, conducted analyses to determine the true extent to which TIF assistance from the EDA would be necessary to make the project financially feasible. At that time, City Staff authorized LHB Architects to formally City of Columbia Heights – CC Letter 104 City of Columbia Heights - Council Letter Page 2 conduct an analysis of the Subject Property to determine if the Central Valu Center TIF District meets the statutory requirements for a Redevelopment TIF District. The work conducted by LHB Architects was financed entirely by Hy-Vee. The findings of the report and qualifications are contained in the attached TIF Plan. Originally, Hy-Vee requested TIF assistance in the amount of $1.74 million over the course of a 26 year period. Under the TIF Act, the duration of a Redevelopment TIF District cannot exceed a total of 26 years of tax increment. Neither City Staff nor Ehlers determined that a 26 year TIF district period would be necessary for Hy-Vee’s project to become financially feasible or in the best interest for the City. Based on the analyses conducted, City Staff and Ehlers are in consensus support that TIF assistance in the amount of $1,100,000 generated over a 12 year period is substantially sufficient for Hy-Vee’s project. In conjunction with TIF assistance from the EDA, City Staff have also been working with Hy-Vee on applying for contamination cleanup grants offered through the Minnesota Department of Employment and Economic Development (DEED) and the Metropolitan Council (Met Council). DEED and Met Council have various contamination clean-up grants that offer funding for the redevelopment of polluted and underproductive sites. To be eligible for many of these grants, a site must reduce the potential threat to the public’s health, create employment opportunities, and increase the tax base of a municipality. The deadline for these grants is November 1, 2016. City Staff and Hy-Vee will submit grant applications requesting a total amount of $1.98 million for the abatement and contamination clean-up of the Subject Property. City Staff anticipates funding from grants will be awarded in January 2017, however it is unknown the actual amount that will be awarded to the Subject Property or if an award will be given. City Staff is confident that TIF assistance in the amount of $1,100,000 generated over a 12 year perio d plus the potential funds from grants will generate the estimated $1.98 million from the costs associated with the unexpected abatement and contamination cleanup on the Subject Property. Since the EDA and Council previously established a redevelopment project designated as the Downtown Central Business District (CBD) revitalization plan, a modification to the Downtown CBD Revitalization Plan for the CBD Redevelopment Project and establishment of the Central Valu Center TIF District needs to be approved by the EDA and the Council. The proposed TIF Plan would provide reimbursement to Hy-Vee in the form of “pay-as-you -go” for a portion of the project. The term “pay-as-you-go” refers to Hy-Vee paying for the costs of the project up-front with the promise from the EDA to reimburse the qualified development costs during the term of the TIF district. The EDA is the authority authorized to exercise TIF powers, however the EDA may not exercise any TIF powers without the prior approval of the City Council (Council). The EDA scheduled a special meeting on October 24, 2016 to consider the modification to the Downtown CBD Revitalization Plan for the CBD Redevelopment Project, the establishment of the Central Valu Center TIF District, the Contract for Private Redevelopment by and between the EDA and Hy-Vee, and an interfund loan contingent of the Council approving the TIF Plan. On September 12, 2016, the Council scheduled a public hearing to approve the TIF plan for the modification and establishment of the proposed TIF district. Before or at the time of approval by Council for a TIF district, the Council shall make certain findings pursuant to Minnesota State Statue 469.175. One specific finding requires that P&Z determines the proposed TIF District conforms to the general plans for the development and redevelopment of the City. On October 4, 2016, the P&Z adopted Resolution 2016-PZ05, a resolution confirming that the Central Valu Center TIF District conforms to the general plans for the development and the redevelopment of the City. For the consideration of the Council this evening is a resolution approving the proposed Central Valu Center TIF Plan and a resolution authorizing an interfund loan. 105 City of Columbia Heights - Council Letter Page 3 STAFF RECOMMENDATION: Staff recommends adopting Resolution 2016-97, a resolution authorizing a modification to the Redevelopment Plan for the Downtown Central Business Redevelopment Project; and Establishing the Central Valu Center Tax Increment Financing District Therein and Adoption of a Tax Increment Financing Plan Therefor; and Staff recommends adopting Resolution 2016-100, a resolution authorizing internal loan for advance of public redevelopment costs in connection with Central Valu Center Tax Increment Financing District. RECOMMENDED MOTION(S): Motion: Move to waive the reading of Resolution 2016-97, there being ample copies available to the public. Motion: Move to adopt Resolution 2016-97, a resolution authorizing a modification to the Redevelopment Plan for the Downtown Central Business Redevelopment Project; and Establishing the Central Valu Center Tax Increment Financing District Therein and Adoption of a Tax Increment Financing Plan Therefor. Motion: Move to waive the reading of Resolution 2016-100, there being ample copies available to the public. Motion: Move to adopt Resolution 2016-100, a resolution authorizing internal loan for advance of public redevelopment costs in connection with Central Valu Center Tax Increment Financing District. ATTACHMENTS: 1. Resolution 2016-97 (5 Page) 2. Resolution 2016-100 (2 Pages) 3. Central Valu Center TIF Plan (86 Pages) 4. Property Account Summary (2 Pages) 106 CITY OF COLUMBIA HEIGHTS ANOKA COUNTY STATE OF MINNESOTA RESOLUTION NO. 2016-97 RESOLUTION ADOPTING A MODIFICATION TO THE REDEVELOPMENT PLAN FOR THE DOWNTOWN CENTRAL BUSINESS REDEVELOPMENT PROJECT; AND ESTABLISHING THE CENTRAL VALU CENTER TAX INCREMENT FINANCING DISTRICT THEREIN AND ADOPTING A TAX INCREMENT FINANCING PLAN THEREFOR. BE IT RESOLVED by the City Council (the "Council") of the City of Columbia Heights, Minnesota (the "City"), as follows: Section 1. Recitals 1.01. The Board of Commissioners of the Columbia Heights Economic Development Authority (the "EDA") has heretofore established the Downtown Central Business Redevelopment Project (the “Project”) and adopted the Redevelopment Plan therefor. It has been proposed by the EDA and the City that the City adopt a Modification to the Redevelopment Plan for the Project (the "Redevelopment Plan Modification") and establish the Central Valu Center Tax Increment Financing District (the "District") therein and adopt a Tax Increment Financing Plan (the "TIF Plan") therefor (the Redevelopment Plan Modification and the TIF Plan are referred to collectively herein as the "Plans"); all pursuant to and in conformity with applicable law, including Minnesota Statutes, Sections 469.090 to 469.1082 and Sections 469.174 to 469.1794, all inclusive, as amended, (the "Act") all as reflected in the Plans, and presented for the Council's consideration. 1.02. The EDA and City have investigated the facts relating to the Plans and hav e caused the Plans to be prepared. 1.03. The EDA and City have performed all actions required by law to be performed prior to the establishment of the District and the adoption and approval of the proposed Plans, including, but not limited to, notification of Anoka County and Independent School District No. 13 having taxing jurisdiction over the property to be included in the District, a review of and written comment on the Plans by the City Planning Commission, approval of the Plans by the EDA on October 24, 2017, and the holding of a public hearing upon published notice as required by law. 1.04. Certain written reports (the ''Reports") relating to the Plans and to the activities contemplated therein have heretofore been prepared by staff and consultants and submitted to the Council and/or made a part of the City files and proceedings on the Plans. The Reports, including the redevelopment qualifications reports and planning documents, include data, information and/or substantiation constituting or relating to the basis for the other findings and determinations made in this resolution. The Council hereby confirms, ratifies and adopts the Reports, which are hereby incorporated into and made as fully a part of this resolution to the same extent as if set forth in full herein. 1.05 The City is not modifying the boundaries of the Project, but is however, modifying the Redevelopment Plan therefor. Section 2. Findings for the Adoption and Approval of the Redevelopment Plan Modification. 107 2.01. The Council approves the Redevelopment Plan Modification, and specifically finds that: (a) the land within the Project area would not be available for redevelopment without the financial aid to be sought under this Redevelopment Plan; (b) the Redevelopment Plan, as modified, will afford maximum opportunity, consistent with the needs of the City as a whole, for the development of the Project by private enterprise; and (c) that the Redevelopment Plan, as modified, conforms to the general plan for the development of the City as a whole. Section 3. Findings for the Establishment of the Central Valu Center Tax Increment Financing District 3.01. The Council hereby finds that the District is in the public interest and is a "redevelopment district" under Minnesota Statutes, Section 469.174, Subd. 10 of the Act. 3.02. The Council further finds that the proposed redevelopment would not occur solely through private investment within the reasonably foreseeable future and that the increased market value of the site that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in the market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of the District permitted by the Tax Increment Financing Plan, that the Plans conform to the general plan for the development or redevelopment of the City as a whole; and that the Plans will afford maximum opportunity consistent with th e sound needs of the City as a whole, for the development or redevelopment of the District by private enterprise. 3.03. The Council further finds, declares and determines that the City made the above findings stated in this Section and has set forth the reasons and supporting facts for each determination in writing, attached hereto as Exhibit A. 3.04. The City elects to calculate fiscal disparities for the District in accordance with Minnesota Statutes, Section 469.177, Subd. 3, clause b, which means the fiscal disparities contribution would be taken from inside the District. Section 4. Public Purpose 4.01. The adoption of the Plans conforms in all respects to the requirements of the Act and will help fulfill a need to develop an area of the City which is already built up, to provide employment opportunities, to improve the tax base and to improve the general economy of the State and thereby serves a public purpose. For the reasons described in Exhibit A, the City believes these benefits directly derive from the tax increment assistance provided under the TIF Plan. A private developer will receive only the assistance needed to make this development financially feasible. As such, any private benefits received by a developer are incidental and do not outweigh the primary public benefits. Section 5. Approval and Adoption of the Plans 5.01. The Plans, as presented to the Council on this date, including without limitation the findings and statements of objectives contained therein, are hereby approved, ratified, established, and adopted and shall be placed on file in the office of the Columbia Heights Community Development Director. 108 5.02. The staff of the City, the City's advisors and legal counsel are authorized and directed to proceed with the implementation of the Plans and to negotiate, draft, prepare and present to this Council for its consideration all further plans, resolutions, documents and contracts necessary for this purpose. 5.03 The Auditor of Anoka County is requested to certify the ori ginal net tax capacity of the District, as described in the Plans, and to certify in each year thereafter the amount by which the original net tax capacity has increased or decreased; and the EDA is authorized and directed to forthwith transmit this request to the County Auditor in such form and content as the Auditor may specify, together with a list of all properties within the District, for which building permits have been issued during the 18 months immediately preceding the adoption of this resolution. 5.04. The EDA is further authorized and directed to file a copy of the Plans with the Commissioner of the Minnesota Department of Revenue and the Office of the State Auditor pursuant to Minnesota Statutes 469.175, Subd. 4a. The motion for the adoption of the foregoing resolution was duly seconded by Council member _________________, and upon a vote being taken thereon, the following voted in favor thereof: and the following voted against the same: Dated: October 24, 2016 ATTEST: __________________________________ _____________________________________ Mayor City Clerk (Seal) 109 EXHIBIT A RESOLUTION NO. ___________ The reasons and facts supporting the findings for the adoption of the Tax Increment Financing Plan (TIF Plan) for Central Valu Center Tax Increment Financing District (District), as required pursuant to Minnesota Statutes, Section 469.175, Subdivision 3 are as follows: 1. Finding that Central Valu Center Tax Increment Financing District is a redevelopment district as defined in M.S., Section 469.174, Subd. 10. The District consists of one parcel, with plans to redevelop the area for commercial/industrial purposes. At least 70 percent of the area of the parcel in the District is occupied by buildings, streets, utilities, paved or gravel parking lots or other similar structures . The District contains one building, which has been analyzed by the City’s consultant, LHB, and found to be structurally substandard to a degree requiring substantial renovation or clearance. 2. Finding that the proposed development, in the opinion of the City Council, would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future and that the increased market value of the site that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in the market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of the District permitted by the TIF Plan. The proposed development, in the opinion of the City, would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future: This finding is supported by the fact that the redevelopment proposed in the TIF Plan meets the City's objectives for redevelopment, but due to the high costs of acquisition, tenant relocation, environmental remediation and renovation of a structurally substandard building, this project is feasible only through assistance, in part, from tax increment financing. The developer was asked for and provided a letter and a proforma as justification that the developer would not have gone forward without tax increment assistance. The increased market value of the site that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of the District permitted by the TIF Plan: This finding is justified on the grounds that the cost of acquisition, tenant relocation and environmental remediation add to the total redevelopment cost. Historically, these costs in this area have made redevelopment infeasible without tax increment assistance. The site has been predominately vacant for the last few years. The City reasonably determines that no other significant renovation/redevelopment/reuse of similar scope is anticipated on this site without substantially similar assistance being provided to the development. Therefore, t he City concludes as follows: a. The City's estimate of the amount by which the market value of the entire District will increase without the use of tax increment financing is $0. b. If the proposed development occurs, the total increase in market value will be $8,859,100. c. The present value of tax increments from the District for the maximum duration of the district permitted by the TIF Plan is estimated to be $3,678,030. 110 d. Even if some development other than the proposed development were to occur, the Council finds that no alternative would occur that would produce a market value increase greater than $3,181,070 (the amount in clause b less the amount in clause c) without tax increment assistance. 3. Finding that the TIF Plan for the District conforms to the general plan for the development or redevelopment of the municipality as a whole. The Planning Commission reviewed the TIF Plan and found that the TIF Plan conforms to the general development plan of the City. 4. Finding that the TIF Plan for the District will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the development or redevelopment of Downtown Central Business Redevelopment Project by private enterprise. The project to be assisted by the District will result in increased employment in the City and the State of Minnesota, the renovation of substandard properties, increased tax base of the State and add a high quality development to the City. 111 RESOLUTION NO. 2016-100 CITY OF COLUMBIA HEIGHTS AUTHORIZING INTERNAL LOAN FOR ADVANCE OF PUBLIC REDEVELOPMENT COSTS IN CONNECTION WITH CENTRAL VALU CENTER TAX INCREMENT FINANCING DISTRICT BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF COLUMBIA HEIGHTS, MINNESOTA (the “City”) AS FOLLOWS: Section 1. Background. 1.01. Pursuant to Minnesota Statutes, Sections 469.174 to 469.1794, as amended (the “TIF Act”) the Columbia Heights Economic Development Authority (the “Authority”) has established the Central Valu Center Tax Increment Financing District (the “TIF District”) within the Downtown Central Business Redevelopment Project (the “Project ”). 1.02. The Authority may incur certain costs related to the TIF District (the “Qualified Costs”), which costs may be financed on a temporary basis from available funds in the City’s redevelopment fund, or from other Authority or City funds available for such purposes. 1.03. Under Section 469.178, Subdivision 7 of the TIF Act, the Authority and City are authorized to advance or loan money from any fund from which such advances may be legally made in order to finance expenditures that are eligible to be paid with tax increments under the TIF Act. 1.04. On this date, the Authority has approved a resolution (the “Loan Resolution”) authorizing an internal loan in the amount of $25,000 together with interest at the rate of 4.0% per annum, and setting the terms for reimbursement of Qualified Costs incurred in connection with the TIF District . Section 2. Inter fund Loan Authorized. 2.01. The City approves the interfund loan described in the Loan Resolution, and authorizes use of any unencumbered City funds available for such purposes under law as the source of the funds for the loan. 2.02. The City Finance Director is authorized and directed to determine the fund(s) or account(s) from which monies are drawn for the interfund loan, and to credit repayments under the Loan Resolution to the relevant fund(s) or account(s). 2.03. City staff and officials are authorized and directed to execute any collateral documents and take any other actions necessary to carry out the intent of this resolution. Section 3. Effective Date. This resolution is effective upon the date of its approval. 488442v1 MNI CL205-65 112 Approved by the City Counc il of the City of Columbia Heights this 24th day of October, 2016. _____________________________ Mayor ATTEST: City Clerk 488442v1 MNI CL205-65 2 113 As of October 17, 2016 Draft for Public Hearing Modification to the Redevelopment Plan for the Downtown Central Business Redevelopment Project and the Tax Increment Financing Plan for the establishment of the Central Valu Center Tax Increment Financing District (a redevelopment district) within the Downtown Central Business Redevelopment Project Columbia Heights Economic Development Authority City of Columbia Heights Anoka County State of Minnesota Public Hearing: October 24, 2016 Adopted: Prepared by: EHLERS & ASSOCIATES, INC. 3060 Centre Pointe Drive, Roseville, Minnesota 55113-1105 651-697-8500 fax: 651-697-8555 www.ehlers-inc.com 114 Table of Contents (for reference purposes only) Section 1 - Modification to the Redevelopment Plan for the Downtown Central Business Redevelopment Project ......................1-1 Foreword.............................................................1-1 Section 2 - Tax Increment Financing Plan for the Central Valu Center Tax Increment Financing District .....................2-1 Subsection 2-1.Foreword...............................................2-1 Subsection 2-2.Statutory Authority........................................2-1 Subsection 2-3.Statement of Objectives...................................2-1 Subsection 2-4.Redevelopment Plan Overview ..............................2-1 Subsection 2-5.Description of Property in the District and Property To Be Acquired .2-2 Subsection 2-6.Classification of the District.................................2-2 Subsection 2-7.Duration and First Year of Tax Increment of the District ...........2-4 Subsection 2-8.Original Tax Capacity, Tax Rate and Estimated Captured Net Tax Capacity Value/Increment and Notification of Prior Planned Improvements ................2-4 Subsection 2-9.Sources of Revenue/Bonds to be Issued ......................2-5 Subsection 2-10.Uses of Funds ...........................................2-6 Subsection 2-11.Fiscal Disparities Election..................................2-6 Subsection 2-12.Business Subsidies.......................................2-7 Subsection 2-13.County Road Costs .......................................2-8 Subsection 2-14.Estimated Impact on Other Taxing Jurisdictions.................2-8 Subsection 2-15.Supporting Documentation ................................2-10 Subsection 2-16.Definition of Tax Increment Revenues .......................2-10 Subsection 2-17.Modifications to the District................................2-11 Subsection 2-18.Administrative Expenses ..................................2-11 Subsection 2-19.Limitation of Increment...................................2-12 Subsection 2-20.Use of Tax Increment....................................2-13 Subsection 2-21.Excess Increments......................................2-13 Subsection 2-22.Requirements for Agreements with the Developer ..............2-14 Subsection 2-23.Assessment Agreements.................................2-14 Subsection 2-24.Administration of the District...............................2-14 Subsection 2-25.Annual Disclosure Requirements ...........................2-14 Subsection 2-26.Reasonable Expectations .................................2-14 Subsection 2-27.Other Limitations on the Use of Tax Increment.................2-15 Subsection 2-28.Summary..............................................2-16 Appendix A Project Description......................................................A-1 Appendix B Map of the Downtown Central Business Redevelopment Project and the District ......B-1 Appendix C Description of Property to be Included in the District ............................C-1 Appendix D Estimated Cash Flow for the District........................................D-1 115 Appendix E Minnesota Business Assistance Form .......................................E-1 Appendix F Redevelopment Qualifications for the District ..................................F-1 Appendix G Findings Including But/For Qualifications.....................................G-1 116 Section 1 - Modification to the Redevelopment Plan for the Downtown Central Business Redevelopment Project Foreword The following text represents a Modification to the Redevelopment Plan for the Downtown Central Business Redevelopment Project. This modification represents a continuation of the goals and objectives set forth in the Redevelopment Plan for the Downtown Central Business Redevelopment Project. Generally, the substantive changes include the establishment of the Central Valu Center Tax Increment Financing District. For further information, a review of the Redevelopment Plan for the Downtown Central Business Redevelopment Project is recommended. It is available from the Community Development Director at the City of Columbia Heights. Other relevant information is contained in the Tax Increment Financing Plans for the Tax Increment Financing Districts located within the Downtown Central Business Redevelopment Project. Columbia Heights Economic Development Authority Modification to the Redevelopment Plan for the Downtown Central Business Redevelopment Project 1-1 117 Section 2 - Tax Increment Financing Plan for the Central Valu Center Tax Increment Financing District Subsection 2-1.Foreword The Columbia Heights Economic Development Authority (the "EDA"), the City of Columbia Heights (the "City"), staff and consultants have prepared the following information to expedite the establishment of the Central Valu Center Tax Increment Financing District (the "District"), a redevelopment tax increment financing district, located in the Downtown Central Business Redevelopment Project. Subsection 2-2.Statutory Authority Within the City, areas exist where public involvement is necessary to cause development or redevelopment to occur. To this end, the EDA has certain statutory powers pursuant to Minnesota Statutes ("M.S."), Sections 469.090 to 469.1082, inclusive, as amended, and M.S., Sections 469.174 to 469.1794, inclusive, as amended (the "Tax Increment Financing Act" or "TIF Act"), to assist in financing public costs related to this project. This section contains the Tax Increment Financing Plan (the "TIF Plan") for the District. Other relevant information is contained in the Modification to the Redevelopment Plan for the Downtown Central Business Redevelopment Project. Subsection 2-3.Statement of Objectives The District currently consists of one parcel of land and adjacent and internal rights-of-way. The District is being created to facilitate the redevelopment of an existing, predominately vacant retail center into a 98,000 square foot grocery and 20,000 square foot retail or medical office space in the City. Please see Appendix A for further District information. The EDA will be entering into an agreement with Hy-Vee Inc. and development is likely to occur in early 2017. This TIF Plan is expected to achieve many of the objectives outlined in the Redevelopment Plan for the Downtown Central Business Redevelopment Project. The activities contemplated in the Modification to the Redevelopment Plan and the TIF Plan do not preclude the undertaking of other qualified development or redevelopment activities. These activities are anticipated to occur over the life of the Downtown Central Business Redevelopment Project and the District. Subsection 2-4.Redevelopment Plan Overview 1.Property to be Acquired - Selected property located within the District may be acquired by the EDA or City and is further described in this TIF Plan. 2.Relocation - Relocation services, to the extent required by law, are available pursuant to M.S., Chapter 117 and other relevant state and federal laws. 3.Upon approval of a developer's plan relating to the project and completion of the necessary legal requirements, the EDA or City may sell to a developer selected properties that it may acquire within the District or may lease land or facilities to a developer. 4.The EDA or City may perform or provide for some or all necessary acquisition, construction, relocation, demolition, and required utilities and public street work within the District. Columbia Heights Economic Development Authority Tax Increment Financing Plan for the Central Valu Center Tax Increment Financing District 2-1 118 Subsection 2-5.Description of Property in the District and Property To Be Acquired The District encompasses all property and adjacent rights-of-way and abutting roadways identified by the parcels listed in Appendix C of this TIF Plan. Please also see the map in Appendix B for further information on the location of the District. The EDA may acquire any parcel within the District including interior and adjacent street rights of way. Any properties identified for acquisition will be acquired by the EDA only in order to accomplish one or more of the following: storm sewer improvements; provide land for needed public streets, utilities and facilities; carry out land acquisition, site improvements, clearance and/or development to accomplish the uses and objectives set forth in this plan. The EDA may acquire property by gift, dedication, condemnation or direct purchase from willing sellers in order to achieve the objectives of this TIF Plan. Such acquisitions will be undertaken only when there is assurance of funding to finance the acquisition and related costs. The EDA does not currently intend to acquire the parcel comprising the District. Subsection 2-6.Classification of the District The EDA and City, in determining the need to create a tax increment financing district in accordance with M.S., Sections 469.174 to 469.1794, as amended, inclusive, find that the District, to be established, is a redevelopment district pursuant to M.S., Section 469.174, Subd. 10(a)(1) as defined below: (a)"Redevelopment district" means a type of tax increment financing district consisting of a project, or portions of a project, within which the authority finds by resolution that one or more of the following conditions, reasonably distributed throughout the district, exists: (1)parcels consisting of 70 percent of the area in the district are occupied by buildings, streets, utilities, paved or gravel parking lots or other similar structures and more than 50 percent of the buildings, not including outbuildings, are structurally substandard to a degree requiring substantial renovation or clearance; (2)The property consists of vacant, unused, underused, inappropriately used, or infrequently used rail yards, rail storage facilities or excessive or vacated railroad rights-of-way; (3)tank facilities, or property whose immediately previous use was for tank facilities, as defined in Section 115C, Subd. 15, if the tank facility: (i)have or had a capacity of more than one million gallons; (ii)are located adjacent to rail facilities; or (iii)have been removed, or are unused, underused, inappropriately used or infrequently used; or (4)a qualifying disaster area, as defined in Subd. 10b. (b)For purposes of this subdivision, "structurally substandard" shall mean containing defects in structural elements or a combination of deficiencies in essential utilities and facilities, light and ventilation, fire protection including adequate egress, layout and condition of interior partitions, or similar factors, which defects or deficiencies are of sufficient total significance to justify substantial renovation or clearance. (c)A building is not structurally substandard if it is in compliance with the building code applicable Columbia Heights Economic Development Authority Tax Increment Financing Plan for the Central Valu Center Tax Increment Financing District 2-2 119 to new buildings or could be modified to satisfy the building code at a cost of less than 15 percent of the cost of constructing a new structure of the same square footage and type on the site. The municipality may find that a building is not disqualified as structurally substandard under the preceding sentence on the basis of reasonably available evidence, such as the size, type, and age of the building, the average cost of plumbing, electrical, or structural repairs or other similar reliable evidence. The municipality may not make such a determination without an interior inspection of the property, but need not have an independent, expert appraisal prepared of the cost of repair and rehabilitation of the building. An interior inspection of the property is not required, if the municipality finds that (1) the municipality or authority is unable to gain access to the property after using its best efforts to obtain permission from the party that owns or controls the property; and (2) the evidence otherwise supports a reasonable conclusion that the building is structurally substandard. (d)A parcel is deemed to be occupied by a structurally substandard building for purposes of the finding under paragraph (a) or by the improvement described in paragraph (e) if all of the following conditions are met: (1) the parcel was occupied by a substandard building or met the requirements of paragraph (e), as the case may be, within three years of the filing of the request for certification of the parcel as part of the district with the county auditor; (2) the substandard building or the improvements described in paragraph (e) were demolished or removed by the authority or the demolition or removal was financed by the authority or was done by a developer under a development agreement with the authority; (3) the authority found by resolution before the demolition or removal that the parcel was occupied by a structurally substandard building or met the requirement of paragraph (e) and that after demolition and clearance the authority intended to include the parcel within a district; and (4) upon filing the request for certification of the tax capacity of the parcel as part of a district, the authority notifies the county auditor that the original tax capacity of the parcel must be adjusted as provided by § 469.177, subdivision 1, paragraph (f). (e) For purposes of this subdivision, a parcel is not occupied by buildings, streets, utilities, paved or gravel parking lots or other similar structures unless 15 percent of the area of the parcel contains buildings, streets, utilities, paved or gravel parking lots or other similar structures. (f) For districts consisting of two or more noncontiguous areas, each area must qualify as a redevelopment district under paragraph (a) to be included in the district, and the entire area of the district must satisfy paragraph (a). In meeting the statutory criteria the EDA and City rely on the following facts and findings: •The District is a redevelopment district consisting of one parcel. •An inventory shows that the parcel is occupied by buildings, streets, utilities, paved or gravel parking lots or other similar structures. •An inspection of the building located within the District finds that the building is structurally substandard as defined in the TIF Act. (See Appendix F). Columbia Heights Economic Development Authority Tax Increment Financing Plan for the Central Valu Center Tax Increment Financing District 2-3 120 Pursuant to M.S., Section 469.176, Subd. 7, the District does not contain any parcel or part of a parcel that qualified under the provisions of M.S., Sections 273.111, 273.112, or 273.114 or Chapter 473H for taxes payable in any of the five calendar years before the filing of the request for certification of the District. Subsection 2-7.Duration and First Year of Tax Increment of the District Pursuant to M.S., Section 469.175, Subd. 1, and Section 469.176, Subd. 1, the duration and first year of tax increment of the District must be indicated within the TIF Plan. Pursuant to M.S., Section 469.176, Subd. 1b., the duration of the District will be 25 years after receipt of the first increment by the EDA (a total of 26 years of tax increment). The EDA elects to receive the first tax increment in 2019, which is no later than four years following the year of approval of the District. Thus, it is estimated that the District, including any modifications of the TIF Plan for subsequent phases or other changes, would terminate after 2044, or when the TIF Plan is satisfied. The EDA reserves the right to decertify the District prior to the legally required date. Subsection 2-8.Original Tax Capacity, Tax Rate and Estimated Captured Net Tax Capacity Value/Increment and Notification of Prior Planned Improvements Pursuant to M.S., Section 469.174, Subd. 7 and M.S., Section 469.177, Subd. 1, the Original Net Tax Capacity (ONTC) as certified for the District will be based on the market values placed on the property by the assessor in 2016 for taxes payable 2017. Pursuant to M.S., Section 469.177, Subds. 1 and 2, the County Auditor shall certify in each year (beginning in the payment year 2019) the amount by which the original value has increased or decreased as a result of: 1.Change in tax exempt status of property; 2.Reduction or enlargement of the geographic boundaries of the district; 3.Change due to adjustments, negotiated or court-ordered abatements; 4.Change in the use of the property and classification; 5.Change in state law governing class rates; or 6.Change in previously issued building permits. In any year in which the current Net Tax Capacity (NTC) value of the District declines below the ONTC, no value will be captured and no tax increment will be payable to the EDA. The original local tax rate for the District will be the local tax rate for taxes payable 2017, assuming the request for certification is made before June 30, 2017. The ONTC and the Original Local Tax Rate for the District appear in the table below. Pursuant to M.S., Section 469.174 Subd. 4 and M.S., Section 469.177, Subd. 1, 2, and 4, the estimated Captured Net Tax Capacity (CTC) of the District, within the Downtown Central Business Redevelopment Project, upon completion of the projects within the District, will annually approximate tax increment revenues as shown in the table below. The EDA requests 100 percent of the available increase in tax capacity for repayment of its obligations and current expenditures, beginning in the tax year payable 2019. The Project Tax Capacity (PTC) listed is an estimate of values when the projects within the District are completed. Columbia Heights Economic Development Authority Tax Increment Financing Plan for the Central Valu Center Tax Increment Financing District 2-4 121 Project Estimated Tax Capacity upon Completion (PTC)$500,936 Original Estimated Net Tax Capacity (ONTC)$102,068 Fiscal Disparities Contribution $119,102 Estimated Captured Tax Capacity (CTC)$279,766 Original Local Tax Rate 1.50371 Pay 2016 Estimated Annual Tax Increment (CTC x Local Tax Rate)$420,687 Percent Retained by the EDA 100% Tax capacity includes a 3% inflation factor for the duration of the District. The tax capacity included in thischart is the estimated tax capacity of the District in year 25. The tax capacity of the District in year one isestimated to be $239,250. Pursuant to M.S., Section 469.177, Subd. 4, the EDA shall, after a due and diligent search, accompany its request for certification to the County Auditor or its notice of the District enlargement pursuant to M.S., Section 469.175, Subd. 4, with a listing of all properties within the District or area of enlargement for which building permits have been issued during the eighteen (18) months immediately preceding approval of the TIF Plan by the municipality pursuant to M.S., Section 469.175, Subd. 3. The County Auditor shall increase the original net tax capacity of the District by the net tax capacity of improvements for which a building permit was issued. The City has reviewed the area to be included in the District and found that some building permits have been issued in the past 18 months, but none that should increase the original tax capacity. Subsection 2-9.Sources of Revenue/Bonds to be Issued The costs outlined in the Uses of Funds will be financed primarily through the annual collection of tax increments. The EDA and City reserve the right to issue bonds or incur other indebtedness as a result of the TIF Plan. As presently proposed, the projects within the District will be financed by a pay-as-you-go note and/or interfund loan/transfer. Any refunding amounts will be deemed a budgeted cost without a formal TIF Plan Modification. This provision does not obligate the EDA or City to incur debt. The EDA or City will issue bonds or incur other debt only upon the determination that such action is in the best interest of the City. The total estimated tax increment revenues for the District are shown in the table below: SOURCES OF FUNDS TOTAL Tax Increment $6,904,488 Interest $690,449 TOTAL $7,594,937 The EDA or City may issue bonds (as defined in the TIF Act) secured in whole or in part with tax increments from the District in a maximum principal amount of $4,679,208. Such bonds may be in the form of pay-as- you-go notes, revenue bonds or notes, general obligation bonds, or interfund loans. This estimate of total bonded indebtedness is a cumulative statement of authority under this TIF Plan as of the date of approval. Columbia Heights Economic Development Authority Tax Increment Financing Plan for the Central Valu Center Tax Increment Financing District 2-5 122 Subsection 2-10.Uses of Funds Currently under consideration for the District is a proposal to facilitate the redevelopment of an existing, predominately vacant retail center into a 98,000 square foot grocery and 20,000 square foot retail or medical office space. The EDA and City have determined that it will be necessary to provide assistance to the project(s) for certain District costs, as described. The EDA has studied the feasibility of the development or redevelopment of property in and around the District. To facilitate the establishment and development or redevelopment of the District, this TIF Plan authorizes the use of tax increment financing to pay for the cost of certain eligible expenses. The estimate of public costs and uses of funds associated with the District is outlined in the following table. USES OF TAX INCREMENT FUNDS TOTAL Land/Building Acquisition $1,000,000 Site Improvements/Preparation $2,500,000 Utilities $100,000 Other Qualifying Improvements $388,759 Administrative Costs (up to 10%)$690,449 PROJECT COST TOTAL $4,679,208 Interest $2,915,729 PROJECT AND INTEREST COSTS TOTAL $7,594,937 The total project cost, including financing costs (interest) listed in the table above does not exceed the total projected tax increments for the District as shown in Subsection 2-9. Estimated costs associated with the District are subject to change among categories without a modification to this TIF Plan. The cost of all activities to be considered for tax increment financing will not exceed, without formal modification, the budget above pursuant to the applicable statutory requirements. Pursuant to M.S., Section 469.1763, Subd. 2, no more than 25 percent of the tax increment paid by property within the District will be spent on activities related to development or redevelopment outside of the District but within the boundaries of the Downtown Central Business Redevelopment Project, (including administrative costs, which are considered to be spent outside of the District) subject to the limitations as described in this TIF Plan. Subsection 2-11.Fiscal Disparities Election Pursuant to M.S., Section 469.177, Subd. 3, the EDA may elect one of two methods to calculate fiscal disparities. If the calculations pursuant to M.S., Section 469.177, Subd. 3, clause b, (within the District) are followed, the following method of computation shall apply: (1)The original net tax capacity shall be determined before the application of the fiscal disparity provisions of Chapter 276A or 473F. The current net tax capacity shall exclude any fiscal disparity commercial-industrial net tax capacity increase between the original year and the current year multiplied by the fiscal disparity ratio determined pursuant to M.S., Section 276A.06, subdivision 7 or M.S., Section 473F.08, subdivision 6. Where the original net tax Columbia Heights Economic Development Authority Tax Increment Financing Plan for the Central Valu Center Tax Increment Financing District 2-6 123 capacity is equal to or greater than the current net tax capacity, there is no captured tax capacity and no tax increment determination. Where the original tax capacity is less than the current tax capacity, the difference between the original net tax capacity and the current net tax capacity is the captured net tax capacity. This amount less any portion thereof which the authority has designated, in its tax increment financing plan, to share with the local taxing districts is the retained captured net tax capacity of the authority. (2)The county auditor shall exclude the retained captured net tax capacity of the authority from the net tax capacity of the local taxing districts in determining local taxing district tax rates. The local tax rates so determined are to be extended against the retained captured net tax capacity of the authority as well as the net tax capacity of the local taxing districts. The tax generated by the extension of the less of (A) the local taxing district tax rates or (B) the original local tax rate to the retained captured net tax capacity of the authority is the tax increment of the authority. The EDA will choose to calculate fiscal disparities by clause b. According to M.S., Section 469.177, Subd. 3: (c)The method of computation of tax increment applied to a district pursuant to paragraph (a) or (b) shall remain the same for the duration of the district, except that the governing body may elect to change its election from the method of computation in paragraph (a) to the method in paragraph (b). Subsection 2-12.Business Subsidies Pursuant to M.S., Section 116J.993, Subd. 3, the following forms of financial assistance are not considered a business subsidy: (1) A business subsidy of less than $150,000; (2)Assistance that is generally available to all businesses or to a general class of similar businesses, such as a line of business, size, location, or similar general criteria; (3) Public improvements to buildings or lands owned by the state or local government that serve a public purpose and do not principally benefit a single business or defined group of businesses at the time the improvements are made; (4) Redevelopment property polluted by contaminants as defined in M.S., Section 116J.552, Subd. 3; (5) Assistance provided for the sole purpose of renovating old or decaying building stock or bringing it up to code and assistance provided for designated historic preservation districts, provided that the assistance is equal to or less than 50% of the total cost; (6) Assistance to provide job readiness and training services if the sole purpose of the assistance is to provide those services; (7) Assistance for housing; (8) Assistance for pollution control or abatement, including assistance for a tax increment financing hazardous substance subdistrict as defined under M.S., Section 469.174, Subd. 23; (9) Assistance for energy conservation; (10) Tax reductions resulting from conformity with federal tax law; (11) Workers' compensation and unemployment compensation; (12) Benefits derived from regulation; (13) Indirect benefits derived from assistance to educational institutions; (14) Funds from bonds allocated under chapter 474A, bonds issued to refund outstanding bonds, and bonds issued for the benefit of an organization described in section 501 (c) (3) of the Internal Columbia Heights Economic Development Authority Tax Increment Financing Plan for the Central Valu Center Tax Increment Financing District 2-7 124 Revenue Code of 1986, as amended through December 31, 1999; (15) Assistance for a collaboration between a Minnesota higher education institution and a business; (16) Assistance for a tax increment financing soils condition district as defined under M.S., Section 469.174, Subd. 19; (17) Redevelopment when the recipient's investment in the purchase of the site and in site preparation is 70 percent or more of the assessor's current year's estimated market value; (18) General changes in tax increment financing law and other general tax law changes of a principally technical nature; (19) Federal assistance until the assistance has been repaid to, and reinvested by, the state or local government agency; (20) Funds from dock and wharf bonds issued by a seaway port authority; (21) Business loans and loan guarantees of $150,000 or less; (22) Federal loan funds provided through the United States Department of Commerce, Economic Development Administration; and (23) Property tax abatements granted under M.S., Section 469.1813 to property that is subject to valuation under Minnesota Rules, chapter 8100. The EDA will comply with M.S., Sections 116J.993 to 116J.995 to the extent the tax increment assistance under this TIF Plan does not fall under any of the above exemptions. Subsection 2-13.County Road Costs Pursuant to M.S., Section 469.175, Subd. 1a, the county board may require the EDA to pay for all or part of the cost of county road improvements if the proposed development to be assisted by tax increment will, in the judgment of the county, substantially increase the use of county roads requiring construction of road improvements or other road costs and if the road improvements are not scheduled within the next five years under a capital improvement plan or within five years under another county plan. If the county elects to use increments to improve county roads, it must notify the EDA within forty-five days of receipt of this TIF Plan. In the opinion of the EDA and City and consultants, the proposed development outlined in this TIF Plan will have little or no impact upon county roads, therefore the TIF Plan was not forwarded to the county 45 days prior to the public hearing. The EDA and City are aware that the county could claim that tax increment should be used for county roads, even after the public hearing. Subsection 2-14.Estimated Impact on Other Taxing Jurisdictions The estimated impact on other taxing jurisdictions assumes that the redevelopment contemplated by the TIF Plan would occur without the creation of the District. However, the EDA has determined that such development or redevelopment would not occur "but for" tax increment financing and that, therefore, the fiscal impact on other taxing jurisdictions is $0. The estimated fiscal impact of the District would be as follows if the "but for" test was not met: Columbia Heights Economic Development Authority Tax Increment Financing Plan for the Central Valu Center Tax Increment Financing District 2-8 125 IMPACT ON TAX BASE 2015/Pay 2016 Total Net Tax Capacity Estimated Captured Tax Capacity (CTC) Upon Completion Percent of CTC to Entity Total Anoka County 265,016,460 279,766 0.1056% City of Columbia Heights 10,044,448 279,766 2.7853% ISD No. 13 14,553,977 279,766 1.9223% IMPACT ON TAX RATES Pay 2016 Extension Rates Percent of Total CTC Potential Taxes Anoka County 0.37992025.27%279,766 106,289 City of Columbia Heights 0.74841049.77%279,766 209,380 ISD No. 13 0.29442019.58%279,766 82,369 Other 0.080960 5.38%279,766 22,650 Total 1.503710100.00%420,687 The estimates listed above display the captured tax capacity when all construction is completed. The tax rate used for calculations is the actual Pay 2016 rate. The total net capacity for the entities listed above are based on actual Pay 2016 figures. The District will be certified under the actual Pay 2017 rates and figures, which were unavailable at the time this TIF Plan was prepared. Pursuant to M.S. Section 469.175 Subd. 2(b): (1) Estimate of total tax increment. It is estimated that the total amount of tax increment that will be generated over the life of the District is $6,904,488; (2) Probable impact of the District on city provided services and ability to issue debt. An impact of the District on police protection is not expected. The City Police Department does track all calls for service by addresses and crimes. With any addition of new residents or businesses, police calls for service will be increased. New developments add an increase in traffic, and additional overall demands to the call load. The City Police Department expects an increase in call types similar to those generate from other similar developments in the area. However, the City does not expect that the proposed development, in and of itself, will necessitate new capital investment. The probable impact of the District on fire protection is not expected to be significant. Typically new buildings generate few calls, if any, and are of superior construction. The impact of the District on public infrastructure is expected to be minimal. The development is not expected to significantly impact any traffic movements in the area. The current infrastructure for sanitary sewer, storm sewer and water will be able to handle the additional volume generated from the proposed development. Based on the development plans, there are no additional costs associated with street maintenance, sweeping, plowing, lighting and sidewalks. However, lighting operating Columbia Heights Economic Development Authority Tax Increment Financing Plan for the Central Valu Center Tax Increment Financing District 2-9 126 costs are yet to be determined. Sanitary sewer (SAC) and water (WAC) connection fees are yet to be determined. The probable impact of any District general obligation tax increment bonds on the ability to issue debt for general fund purposes is expected to be minimal. It is not anticipated that there will be any general obligation debt issued in relation to this project, therefore there will be no impact on the City's ability to issue future debt or on the City's debt limit. (3) Estimated amount of tax increment attributable to school district levies. It is estimated that the amount of tax increments over the life of the District that would be attributable to school district levies, assuming the school district's share of the total local tax rate for all taxing jurisdictions remained the same, is $1,351,899; (4) Estimated amount of tax increment attributable to county levies. It is estimated that the amount of tax increments over the life of the District that would be attributable to county levies, assuming the county's share of the total local tax rate for all taxing jurisdictions remained the same, is $1,744,453; (5) Additional information requested by the county or school district. The City is not aware of any standard questions in a county or school district written policy regarding tax increment districts and impact on county or school district services. The county or school district must request additional information pursuant to M.S. Section 469.175 Subd. 2(b) within 15 days after receipt of the tax increment financing plan. No requests for additional information from the county or school district regarding the proposed development for the District have been received. Subsection 2-15.Supporting Documentation Pursuant to M.S. Section 469.175, Subd. 1 (a), clause 7 the TIF Plan must contain identification and description of studies and analyses used to make the determination set forth in M.S. Section 469.175, Subd. 3, clause (b)(2) and the findings are required in the resolution approving the District. Following is a list of reports and studies on file at the City that support the EDA and City's findings: •LHB Qualifications Report: September 2016. •Retail Market and Sales Potential with Appendices: McComb Group, February 2015. Subsection 2-16.Definition of Tax Increment Revenues Pursuant to M.S., Section 469.174, Subd. 25, tax increment revenues derived from a tax increment financing district include all of the following potential revenue sources: 1.Taxes paid by the captured net tax capacity, but excluding any excess taxes, as computed under M.S., Section 469.177; 2.The proceeds from the sale or lease of property, tangible or intangible, to the extent the property was purchased by the authority with tax increments; 3.Principal and interest received on loans or other advances made by the authority with tax increments; 4.Interest or other investment earnings on or from tax increments; 5.Repayments or return of tax increments made to the Authority under agreements for districts for which the request for certification was made after August 1, 1993; and 6.The market value homestead credit paid to the Authority under M.S., Section 273.1384. Columbia Heights Economic Development Authority Tax Increment Financing Plan for the Central Valu Center Tax Increment Financing District 2-10 127 Subsection 2-17.Modifications to the District In accordance with M.S., Section 469.175, Subd. 4, any: 1.Reduction or enlargement of the geographic area of the District, if the reduction does not meet the requirements of M.S., Section 469.175, Subd. 4(e); 2.Increase in amount of bonded indebtedness to be incurred; 3.A determination to capitalize interest on debt if that determination was not a part of the original TIF Plan; 4.Increase in the portion of the captured net tax capacity to be retained by the EDA; 5.Increase in the estimate of the cost of the District, including administrative expenses, that will be paid or financed with tax increment from the District; or 6.Designation of additional property to be acquired by the EDA. shall be approved upon the notice and after the discussion, public hearing and findings required for approval of the original TIF Plan. Pursuant to M.S. Section 469.175 Subd. 4(f), the geographic area of the District may be reduced, but shall not be enlarged after five years following the date of certification of the original net tax capacity by the county auditor. If a redevelopment district is enlarged, the reasons and supporting facts for the determination that the addition to the district meets the criteria of M.S., Section 469.174, Subd. 10, must be documented in writing and retained. The requirements of this paragraph do not apply if (1) the only modification is elimination of parcel(s) from the District and (2)(A) the current net tax capacity of the parcel(s) eliminated from the District equals or exceeds the net tax capacity of those parcel(s) in the District's original net tax capacity or (B) the EDA agrees that, notwithstanding M.S., Section 469.177, Subd. 1, the original net tax capacity will be reduced by no more than the current net tax capacity of the parcel(s) eliminated from the District. The EDA must notify the County Auditor of any modification to the District. Modifications to the District in the form of a budget modification or an expansion of the boundaries will be recorded in the TIF Plan. Subsection 2-18.Administrative Expenses In accordance with M.S., Section 469.174, Subd. 14, administrative expenses means all expenditures of the EDA or City, other than: 1.Amounts paid for the purchase of land; 2.Amounts paid to contractors or others providing materials and services, including architectural and engineering services, directly connected with the physical development of the real property in the District; 3.Relocation benefits paid to or services provided for persons residing or businesses located in the District; 4.Amounts used to pay principal or interest on, fund a reserve for, or sell at a discount bonds issued pursuant to M.S., Section 469.178; or 5.Amounts used to pay other financial obligations to the extent those obligations were used to finance costs described in clauses (1) to (3). For districts for which the request for certification were made before August 1, 1979, or after June 30, 1982, and before August 1, 2001, administrative expenses also include amounts paid for services provided by bond counsel, fiscal consultants, and planning or economic development consultants. Pursuant to M.S., Section Columbia Heights Economic Development Authority Tax Increment Financing Plan for the Central Valu Center Tax Increment Financing District 2-11 128 469.176, Subd. 3, tax increment may be used to pay any authorized and documented administrative expenses for the District up to but not to exceed 10 percent of the total estimated tax increment expenditures authorized by the TIF Plan or the total tax increments, as defined by M.S., Section 469.174, Subd. 25, clause (1), from the District, whichever is less. For districts for which certification was requested after July 31, 2001, no tax increment may be used to pay any administrative expenses for District costs which exceed ten percent of total estimated tax increment expenditures authorized by the TIF Plan or the total tax increments, as defined in M.S., Section 469.174, Subd. 25, clause (1), from the District, whichever is less. Pursuant to M.S., Section 469.176, Subd. 4h, tax increments may be used to pay for the County's actual administrative expenses incurred in connection with the District and are not subject to the percentage limits of M.S., Section 469.176, Subd. 3. The county may require payment of those expenses by February 15 of the year following the year the expenses were incurred. Pursuant to M.S., Section 469. 177, Subd. 11, the County Treasurer shall deduct an amount (currently 0.36 percent) of any increment distributed to the EDA or and the County Treasurer shall pay the amount deducted to the State Commissioner of Management and Budget for deposit in the state general fund to be appropriated to the State Auditor for the cost of financial reporting of tax increment financing information and the cost of examining and auditing authorities' use of tax increment financing. This amount may be adjusted annually by the Commissioner of Revenue. Subsection 2-19.Limitation of Increment The tax increment pledged to the payment of bonds and interest thereon may be discharged and the District may be terminated if sufficient funds have been irrevocably deposited in the debt service fund or other escrow account held in trust for all outstanding bonds to provide for the payment of the bonds at maturity or redemption date. Pursuant to M.S., Section 469.176, Subd. 6: if, after four years from the date of certification of the original net tax capacity of the tax increment financing district pursuant to M.S., Section 469.177, no demolition, rehabilitation or renovation of property or other site preparation, including qualified improvement of a street adjacent to a parcel but not installation of utility service including sewer or water systems, has been commenced on a parcel located within a tax increment financing district by the authority or by the owner of the parcel in accordance with the tax increment financing plan, no additional tax increment may be taken from that parcel, and the original net tax capacity of that parcel shall be excluded from the original net tax capacity of the tax increment financing district. If the authority or the owner of the parcel subsequently commences demolition, rehabilitation or renovation or other site preparation on that parcel including qualified improvement of a street adjacent to that parcel, in accordance with the tax increment financing plan, the authority shall certify to the county auditor that the activity has commenced and the county auditor shall certify the net tax capacity thereof as most recently certified by the commissioner of revenue and add it to the original net tax capacity of the tax increment financing district. The county auditor must enforce the provisions of this subdivision. The authority must submit to the county auditor evidence that the required activity has taken place for each parcel in the district. The evidence for a parcel must be submitted by February 1 of the fifth year following the year in which the parcel was certified as included in the district. For purposes of this subdivision, qualified improvements of a Columbia Heights Economic Development Authority Tax Increment Financing Plan for the Central Valu Center Tax Increment Financing District 2-12 129 street are limited to (1) construction or opening of a new street, (2) relocation of a street, and (3) substantial reconstruction or rebuilding of an existing street. The EDA or a property owner must improve parcels within the District by approximately October 2020 and report such actions to the County Auditor. Subsection 2-20.Use of Tax Increment The EDA hereby determines that it will use 100 percent of the captured net tax capacity of taxable property located in the District for the following purposes: 1.To pay the principal of and interest on bonds issued to finance a project; 2.To finance, or otherwise pay the cost of redevelopment of the the Downtown Central Business Redevelopment Project pursuant to M.S., Sections 469.090 to 469.1082; 3.To pay for project costs as identified in the budget set forth in the TIF Plan; 4.To finance, or otherwise pay for other purposes as provided in M.S., Section 469.176, Subd. 4; 5.To pay principal and interest on any loans, advances or other payments made to or on behalf of the EDA or for the benefit of the Downtown Central Business Redevelopment Project by a developer; 6.To finance or otherwise pay premiums and other costs for insurance or other security guaranteeing the payment when due of principal of and interest on bonds pursuant to the TIF Plan or pursuant to M.S., Chapter 462C. M.S., Sections 469.152 through 469.165, and/or M.S., Sections 469.178; and 7.To accumulate or maintain a reserve securing the payment when due of the principal and interest on the tax increment bonds or bonds issued pursuant to M.S., Chapter 462C, M.S., Sections 469.152 through 469.165, and/or M.S., Sections 469.178. These revenues shall not be used to circumvent any levy limitations applicable to the City nor for other purposes prohibited by M.S., Section 469.176, Subd. 4. Tax increments generated in the District will be paid by Anoka to the EDA for the Tax Increment Fund of said District. The EDA will pay to the developer(s) annually an amount not to exceed an amount as specified in a developer's agreement to reimburse the costs of land acquisition, public improvements, demolition and relocation, site preparation, and administration. Remaining increment funds will be used for EDA administration (up to 10 percent) and for the costs of public improvement activities outside the District. Subsection 2-21.Excess Increments Excess increments, as defined in M.S., Section 469.176, Subd. 2, shall be used only to do one or more of the following: 1.Prepay any outstanding bonds; 2.Discharge the pledge of tax increment for any outstanding bonds; 3.Pay into an escrow account dedicated to the payment of any outstanding bonds; or 4.Return the excess to the County Auditor for redistribution to the respective taxing jurisdictions in proportion to their local tax rates. The EDA must spend or return the excess increments under paragraph (c) within nine months after the end of the year. In addition, the EDA may, subject to the limitations set forth herein, choose to modify the TIF Plan in order to finance additional public costs in the Downtown Central Business Redevelopment Project or the District. Columbia Heights Economic Development Authority Tax Increment Financing Plan for the Central Valu Center Tax Increment Financing District 2-13 130 Subsection 2-22.Requirements for Agreements with the Developer The EDA will review any proposal for private development to determine its conformity to the Redevelopment Plan and to applicable municipal ordinances and codes. To facilitate this effort, the following documents may be requested for review and approval: site plan, construction, mechanical, and electrical system drawings, landscaping plan, grading and storm drainage plan, signage system plan, and any other drawings or narrative deemed necessary by the EDA or City to demonstrate the conformity of the development to City plans and ordinances. The EDA may also use the Agreements to address other issues related to the development. Pursuant to M.S., Section 469.176, Subd. 5, no more than 25 percent, by acreage, of the property to be acquired in the District as set forth in the TIF Plan shall at any time be owned by the EDA as a result of acquisition with the proceeds of bonds issued pursuant to M.S., Section 469.178 to which tax increments from property acquired is pledged, unless prior to acquisition in excess of 25 percent of the acreage, the EDA concluded an agreement for the development or redevelopment of the property acquired and which provides recourse for the EDA should the development or redevelopment not be completed. Subsection 2-23.Assessment Agreements Pursuant to M.S., Section 469.177, Subd. 8, the EDA may enter into a written assessment agreement in recordable form with the developer of property within the District which establishes a minimum market value of the land and completed improvements for the duration of the District. The assessment agreement shall be presented to the County Assessor who shall review the plans and specifications for the improvements to be constructed, review the market value previously assigned to the land upon which the improvements are to be constructed and, so long as the minimum market value contained in the assessment agreement appears, in the judgment of the assessor, to be a reasonable estimate, the County Assessor shall also certify the minimum market value agreement. Subsection 2-24.Administration of the District Administration of the District will be handled by the Community Development Director. Subsection 2-25.Annual Disclosure Requirements Pursuant to M.S., Section 469.175, Subds. 5, 6, and 6b the EDA must undertake financial reporting for all tax increment financing districts to the Office of the State Auditor, County Board and County Auditor on or before August 1 of each year. M.S., Section 469.175, Subd. 5 also provides that an annual statement shall be published in a newspaper of general circulation in the City on or before August 15. If the EDA fails to make a disclosure or submit a report containing the information required by M.S., Section 469.175 Subd. 5 and Subd. 6, the Office of the State Auditor will direct the County Auditor to withhold the distribution of tax increment from the District. Subsection 2-26.Reasonable Expectations As required by the TIF Act, in establishing the District, the determination has been made that the anticipated development would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future and that the increased market value of the site that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in the market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of the District permitted by the TIF Plan. In making said determination, Columbia Heights Economic Development Authority Tax Increment Financing Plan for the Central Valu Center Tax Increment Financing District 2-14 131 reliance has been placed upon written representation made by the developer to such effects and upon EDA and City staff awareness of the feasibility of developing the project site(s) within the District. A comparative analysis of estimated market values both with and without establishment of the District and the use of tax increments has been performed as described above. Such analysis is included with the cashflow in Appendix D, and indicates that the increase in estimated market value of the proposed development (less the indicated subtractions) exceeds the estimated market value of the site absent the establishment of the District and the use of tax increments. Subsection 2-27.Other Limitations on the Use of Tax Increment 1.General Limitations. All revenue derived from tax increment shall be used in accordance with the TIF Plan. The revenues shall be used to finance, or otherwise pay the cost of redevelopment of the Downtown Central Business Redevelopment Project pursuant to M.S., Sections 469.090 to 469.1082. Tax increments may not be used to circumvent existing levy limit law. No tax increment may be used for the acquisition, construction, renovation, operation, or maintenance of a building to be used primarily and regularly for conducting the business of a municipality, county, school district, or any other local unit of government or the state or federal government. This provision does not prohibit the use of revenues derived from tax increments for the construction or renovation of a parking structure. 2.Pooling Limitations. At least 75 percent of tax increments from the District must be expended on activities in the District or to pay bonds, to the extent that the proceeds of the bonds were used to finance activities within said district or to pay, or secure payment of, debt service on credit enhanced bonds. Not more than 25 percent of said tax increments may be expended, through a development fund or otherwise, on activities outside of the District except to pay, or secure payment of, debt service on credit enhanced bonds. For purposes of applying this restriction, all administrative expenses must be treated as if they were solely for activities outside of the District. 3.Five Year Limitation on Commitment of Tax Increments. Tax increments derived from the District shall be deemed to have satisfied the 75 percent test set forth in paragraph (2) above only if the five year rule set forth in M.S., Section 469.1763, Subd. 3, has been satisfied; and beginning with the sixth year following certification of the District, 75 percent of said tax increments that remain after expenditures permitted under said five year rule must be used only to pay previously committed expenditures or credit enhanced bonds as more fully set forth in M.S., Section 469.1763, Subd. 5. 4.Redevelopment District. At least 90 percent of the revenues derived from tax increment from a redevelopment district must be used to finance the cost of correcting conditions that allow designation of redevelopment and renewal and renovation districts under M.S., Section 469.176 Subd. 4j. These costs include, but are not limited to, acquiring properties containing structurally substandard buildings or improvements or hazardous substances, pollution, or contaminants, acquiring adjacent parcels necessary to provide a site of sufficient size to permit development, demolition and rehabilitation of structures, clearing of the land, the removal of hazardous substances or remediation necessary for development of the land, and installation of utilities, roads, sidewalks, and parking facilities for the site. The allocated administrative expenses of the EDA, including the cost of preparation of the development action response plan, may be included in the qualifying costs. Columbia Heights Economic Development Authority Tax Increment Financing Plan for the Central Valu Center Tax Increment Financing District 2-15 132 Subsection 2-28.Summary The Columbia Heights Economic Development Authority is establishing the District to preserve and enhance the tax base, redevelop substandard areas, and provide employment opportunities in the City. The TIF Plan for the District was prepared by Ehlers & Associates, Inc., 3060 Centre Pointe Drive, Roseville, Minnesota 55113, telephone (651) 697-8500. Columbia Heights Economic Development Authority Tax Increment Financing Plan for the Central Valu Center Tax Increment Financing District 2-16 133 Appendix A Project Description Hy-Vee intends to acquire the existing CenterValu Mall and demolish portions of the existing structure, complete required environmental cleanup and then construct a 3,800 sq/ft addition for loading docks and complete significant renovation of the remaining center into a 98,000 sq/ft grocery and 20,000 sq/ft retail space to accommodate medical office and/or additional new retail. The EDA will be providing assistance in the form of a pay-as-you-go TIF note. Appendix A-1 134 Appendix B Map of the Downtown Central Business Redevelopment Project and the District Appendix B-1 135 CENTRAL VALU CENTER TAX INCREMENT FINANCING DISTRICT DOWNTOWN CENTRAL BUSINESS DISTRICT (CBD) REDEVELOPMENT PROJECT CITY OF COLUMBIA HEIGHTS ANOKA COUNTY, MINNESOTA Downtown Central Business District (CBD) Redevelopment Project Central Valu Center Tax Increment Financing District 136 Appendix C Description of Property to be Included in the District The District encompasses all property and adjacent rights-of-way and abutting roadways identified by the parcel listed below. Parcel Numbers Address Owner 35-30-24-11-0083 4300 CENTRAL AVE NEBRE NON-CORE 2 OWNER B LLC Appendix C-1 137 Appendix D Estimated Cash Flow for the District Appendix D-1 138 9/ 2 2 / 2 0 1 6 Base Value Assumptions - Page 1 Hy V e e R e d e v e l o p m e n t - 3 % I n f l a t i o n Ci t y o f C o l u m b i a H e i g h t s Gr o c e r y A n c h o r e d R e t a i l C e n t e r AS S U M P T I O N S A N D R A T E S Di s t r i c t T y p e : Re d e v e l o p m e n t Di s t r i c t N a m e / N u m b e r : Co u n t y D i s t r i c t # : Ex e m p t C l a s s R a t e ( E x e m p t ) 0.00% Fi r s t Y e a r C o n s t r u c t i o n o r I n f l a t i o n o n V a l u e 20 1 7 Co m m e r c i a l I n d u s t r i a l P r e f e r r e d C l a s s R a t e ( C / I P r e f . ) Ex i s t i n g D i s t r i c t - S p e c i f y N o . Y e a r s R e m a i n i n g Fi r s t $ 1 5 0 , 0 0 0 1.50% In f l a t i o n R a t e - E v e r y Y e a r : 3. 0 0 % Ov e r $ 1 5 0 , 0 0 0 2.00% In t e r e s t R a t e : 4. 0 0 % Co m m e r c i a l I n d u s t r i a l C l a s s R a t e ( C / I ) 2.00% Pr e s e n t V a l u e D a t e : 1- A u g - 1 7 Re n t a l H o u s i n g C l a s s R a t e ( R e n t a l ) 1.25% Fi r s t P e r i o d E n d i n g 1- F e b - 1 8 Aff o r d a b l e R e n t a l H o u s i n g C l a s s R a t e ( A f f . R e n t a l ) Ta x Y e a r D i s t r i c t w a s C e r t i f i e d : Pa y 2 0 1 7 Fi r s t $ 1 1 5 , 0 0 0 0 . 7 5 % Ca s h f l o w A s s u m e s F i r s t T a x I n c r e m e n t F o r D e v e l o p m e n t : 2 0 1 9 O v e r $ 1 1 5 , 0 0 0 0 . 2 5 % Ye a r s o f T a x I n c r e m e n t 2 6 N o n - H o m e s t e a d R e s i d e n t i a l ( N o n - H R e s . 1 U n i t ) Ass u m e s L a s t Y e a r o f T a x I n c r e m e n t 20 4 4 Fi r s t $ 5 0 0 , 0 0 0 1.00% Fi s c a l D i s p a r i t i e s E l e c t i o n [ O u t s i d e ( A ) , I n s i d e ( B ) , o r N A ] In s i d e ( B ) Ov e r $ 5 0 0 , 0 0 0 1.25% In c r e m e n t a l o r T o t a l F i s c a l D i s p a r i t i e s In c r e m e n t a l Ho m e s t e a d R e s i d e n t a l C l a s s R a t e ( H m s t d . R e s . ) Fi s c a l D i s p a r i t i e s C o n t r i b u t i o n R a t i o 29 . 8 6 0 1 % P a y 2 0 1 6 Fi r s t $ 5 0 0 , 0 0 0 1.00% Fi s c a l D i s p a r i t i e s M e t r o - W i d e T a x R a t e 15 0 . 2 6 2 0 % P a y 2 0 1 6 Ov e r $ 5 0 0 , 0 0 0 1.25% Ma x i m u m / F r o z e n L o c a l T a x R a t e : 15 0 . 3 7 1 % P a y 2 0 1 6 Agr i c u l t u r a l N o n - H o m e s t e a d 1.00% Cu r r e n t L o c a l T a x R a t e : ( U s e l e s s e r o f C u r r e n t o r M a x . ) 1 5 0 . 3 7 1 % P a y 2 0 1 6 St a t e - w i d e T a x R a t e ( C o m m . / I n d . o n l y u s e d f o r t o t a l t a x e s ) 4 8 . 6 4 1 0 % P a y 2 0 1 6 Ma r k e t V a l u e T a x R a t e ( U s e d f o r t o t a l t a x e s ) 0. 1 4 1 2 7 % P a y 2 0 1 6 Bu i l d i n g T o t a l P e r c e n t a g e Ta x Y e a r P r o p e r t y C u r r e n t ClassAfter La n d Ma r k e t M a r k e t O f V a l u e U s e d O r i g i n a l O r i g i n a l Ta x Or i g i n a l AfterConversion Ma p # P I D Ow n e r A d d r e s s M a r k e t V a l u e V a l u e Va l u e f o r D i s t r i c t M a r k e t V a l u e M a r k e t V a l u e C l a s s T a x C a p a c i t y C o n v e r s i o n O r i g . T a x C a p . 1 35 ‐30 ‐24 ‐11 ‐00 8 3 43 0 0 C e n t r a l A v e 2 , 0 1 7 , 5 0 0 3 , 1 2 3 , 4 0 0 5 , 1 4 0 , 9 0 0 10 0 % 5 , 1 4 0 , 9 0 0 P a y 2 0 1 7 C / I P r e f . 10 2 , 0 6 8 C/I Pref.102,068 1 2, 0 1 7 , 5 0 0 3 , 1 2 3 , 4 0 0 5 , 1 4 0 , 9 0 0 5, 1 4 0 , 9 0 0 1 0 2 , 0 6 8 102,068 No t e : 1. B a s e v a l u e s a r e f o r p a y 2 0 1 7 b a s e d u p o n r e v i e w o f C o u n t y w e b s i t e o n 8 - 1 - 1 6 . Ta x R a t e s B A S E V A L U E I N F O R M A T I O N ( O r i g i n a l T a x C a p a c i t y ) Area/ Phase Pr e p a r e d b y E h l e r s & A s s o c i a t e s , I n c . - E s t i m a t e s O n l y N: \ M i n n s o t a \ C o l u m b i a H e i g h t s \ H o u s i n g - E c o n o m i c - R e d e v e l o p m e n t \ T I F \ T I F D i s t r i c t s \ H y - V e e T I F D i s t r i c t \ T I F R u n s \ T I F R u n 9 - 2 2 - 1 6 - FINAL FOR TIF PLAN.xls139 9/ 2 2 / 2 0 1 6 Base Value Assumptions - Page 2 Hy V e e R e d e v e l o p m e n t - 3 % I n f l a t i o n Ci t y o f C o l u m b i a H e i g h t s Gro c e r y Anc hor e d Ret a il Cen t e r Es t i m a t e d T a x a b l e T o t a l T a x a b l e P r o p e r t y Pe r c e n t a g e P e r c e n t a g e P e r c e n t a g e P e r c e n t a g e F i r s t Y e a r Ma r k e t V a l u e M a r k e t V a l u e T o t a l Ma r k e t Ta x Pr o j e c t P r o j e c t T a x C o m p l e t e d C o m p l e t e d C o m p l e t e d C o m p l e t e d F u l l T a x e s Ar e a / P h a s e N e w U s e P e r S q . F t . / U n i t P e r S q . F t . / U n i t S q . F t . / U n i t s Val u e Cl a s s T a x C a p a c i t y Ca p a c i t y / U n i t 2 0 1 7 20 1 8 20192020Payable Gr o c e r y 92 92 1 3 0 , 4 5 5 1 2 , 0 0 0 , 0 0 0 C / I P r e f . 2 3 9 , 2 5 0 2 1 0 0 % 10 0 % 100%100%2019 TO T A L 12 , 0 0 0 , 0 0 0 23 9 , 2 5 0 Su b t o t a l R e s i d e n t i a l 0 0 0 Su b t o t a l C o m m e r c i a l / I n d . 13 0 , 4 5 5 1 2 , 0 0 0 , 0 0 0 23 9 , 2 5 0 No t e : 1. M a r k e t v a l u e s a r e b a s e d u p o n e s t i m a t e s f r o m c o u n t y a s s e s s o r o n 8 - 2 - 1 6 . To t a l F i s c a l L o c a l L o c a l F i s c a l S t a t e - w i d e M a r k e t Ta x D i s p a r i t i e s T a x P r o p e r t y Di s p a r i t i e s P r o p e r t y Val u e To t a l T a x e s P e r Ne w U s e Ca p a c i t y Ta x C a p a c i t y Ca p a c i t y Ta x e s Ta x e s Ta x e s Ta x e s Ta x e s S q . F t . / U n i t Gr o c e r y 23 9 , 2 5 0 7 1 , 4 4 0 1 6 7 , 8 1 0 2 5 2 , 3 3 7 1 0 7 , 3 4 8 1 1 6 , 3 7 4 16 , 9 5 2 4 9 3 , 0 1 1 3. 7 8 TO T A L 2 3 9 , 2 5 0 7 1 , 4 4 0 1 6 7 , 8 1 0 2 5 2 , 3 3 7 1 0 7 , 3 4 8 1 1 6 , 3 7 4 16 , 9 5 2 4 9 3 , 0 1 1 No t e : 1. T a x e s a n d t a x i n c r e m e n t w i l l v a r y s i g n f i c a n t l y f r o m y e a r t o y e a r d e p e n d i n g u p o n v a l u e s , r a t e s , s t a t e l a w , f i s c a l d i s p a r i t i e s a n d o t h e r f a c t o r s w h i c h c a n n o t b e p r e d i c t e d . To t a l P r o p e r t y T a x e s 49 3 , 0 1 1 Cu r r e n t M a r k e t V a l u e - E s t . 5, 1 4 0 , 9 0 0 le s s S t a t e - w i d e T a x e s (1 1 6 , 3 7 4 ) Ne w M a r k e t V a l u e - E s t . 12 , 0 0 0 , 0 0 0 le s s F i s c a l D i s p . A d j . (1 0 7 , 3 4 8 ) D i f f e r e n c e 6, 8 5 9 , 1 0 0 le s s M a r k e t V a l u e T a x e s (1 6 , 9 5 2 ) Pr e s e n t V a l u e o f T a x I n c r e m e n t 3, 6 7 8 , 0 3 0 le s s B a s e V a l u e T a x e s (1 0 7 , 6 5 1 ) D i f f e r e n c e 3, 1 8 1 , 0 7 0 An n u a l G r o s s T I F 14 4 , 6 8 6 Va l u e l i k e l y t o o c c u r w i t h o u t T a x I n c r e m e n t i s l e s s t h a n : 3, 1 8 1 , 0 7 0 W H A T I S E X C L U D E D F R O M T I F ? MA R K E T V A L U E B U T / F O R A N A L Y S I S TA X C A L C U L A T I O N S PR O J E C T I N F O R M A T I O N ( P r o j e c t T a x C a p a c i t y ) Pr e p a r e d b y E h l e r s & A s s o c i a t e s , I n c . - E s t i m a t e s O n l y N: \ M i n n s o t a \ C o l u m b i a H e i g h t s \ H o u s i n g - E c o n o m i c - R e d e v e l o p m e n t \ T I F \ T I F D i s t r i c t s \ H y - V e e T I F D i s t r i c t \ T I F R u n s \ T I F R u n 9 - 2 2 - 1 6 - FINAL FOR TIF PLAN.xls140 9/ 2 2 / 2 0 1 6 Tax Increment Cashflow - Page 3 Hy V e e R e d e v e l o p m e n t - 3 % I n f l a t i o n Ci t y o f C o l u m b i a H e i g h t s Gr o c e r y A n c h o r e d R e t a i l C e n t e r TA X I N C R E M E N T C A S H F L O W Pr o j e c t O r i g i n a l F i s c a l C a p t u r e d Lo c a l A nn u a l S e m i - A n n u a l S t a t e A d m i n . S e m i - A n n u a l S e m i - A n n u a l P E R I O D % o f T a x Ta x D i s p a r i t i e s T a x Ta x G r o s s T a x G r o s s T a x A u d i t o r at Ne t T a x P r e s e n t E N D I N G T a x P a y m e n t OT C C a p a c i t y C a p a c i t y I n c r e m e n t a l C a p a c i t y Ra t e I n c r e m en t I n c r e m e n t 0 . 3 6 % 10 % I n c r e m e n t V a l u e Y r s . Y e a r D a t e - - - - 02/01/18 - - - - 08/01/18 - - - - 02/01/19 10 0 % 2 3 9 , 2 5 0 (1 0 2 , 0 6 8 ) (4 0 , 9 6 3 ) 96 , 2 1 9 15 0 . 3 7 1 % 1 4 4 , 6 8 6 72 , 3 4 3 (2 6 0 ) (7 , 2 0 8 ) 64 , 8 7 4 59 , 9 3 4 0.5201908/01/19 10 0 % 2 3 9 , 2 5 0 (1 0 2 , 0 6 8 ) (4 0 , 9 6 3 ) 96 , 2 1 9 15 0 . 3 7 1 % 1 4 4 , 6 8 6 72 , 3 4 3 (2 6 0 ) (7 , 2 0 8 ) 64 , 8 7 4 11 8 , 6 9 2 1201902/01/20 10 0 % 2 4 6 , 4 2 8 (1 0 2 , 0 6 8 ) (4 3 , 1 0 6 ) 10 1 , 2 5 4 15 0 . 3 7 1 % 1 5 2 , 2 5 6 76 , 1 2 8 (2 7 4 ) (7 , 5 8 5 ) 68 , 2 6 9 17 9 , 3 1 3 1.5202008/01/20 10 0 % 2 4 6 , 4 2 8 (1 0 2 , 0 6 8 ) (4 3 , 1 0 6 ) 10 1 , 2 5 4 15 0 . 3 7 1 % 1 5 2 , 2 5 6 76 , 1 2 8 (2 7 4 ) (7 , 5 8 5 ) 68 , 2 6 9 23 8 , 7 4 5 2202002/01/21 10 0 % 2 5 3 , 8 2 0 (1 0 2 , 0 6 8 ) (4 5 , 3 1 3 ) 10 6 , 4 3 9 15 0 . 3 7 1 % 1 6 0 , 0 5 3 80 , 0 2 7 (2 8 8 ) (7 , 9 7 4 ) 71 , 7 6 5 29 9 , 9 9 5 2.5202108/01/21 10 0 % 2 5 3 , 8 2 0 (1 0 2 , 0 6 8 ) (4 5 , 3 1 3 ) 10 6 , 4 3 9 15 0 . 3 7 1 % 1 6 0 , 0 5 3 80 , 0 2 7 (2 8 8 ) (7 , 9 7 4 ) 71 , 7 6 5 36 0 , 0 4 5 3202102/01/22 10 0 % 2 6 1 , 4 3 5 (1 0 2 , 0 6 8 ) (4 7 , 5 8 7 ) 11 1 , 7 8 0 15 0 . 3 7 1 % 1 6 8 , 0 8 4 84 , 0 4 2 (3 0 3 ) (8 , 3 7 4 ) 75 , 3 6 6 42 1 , 8 7 1 3.5202208/01/22 10 0 % 2 6 1 , 4 3 5 (1 0 2 , 0 6 8 ) (47 , 5 8 7 ) 11 1 , 7 8 0 15 0 . 3 7 1 % 1 6 8 , 0 8 4 84 , 0 4 2 (3 0 3 ) (8 , 3 7 4 ) 75 , 3 6 6 48 2 , 4 8 5 4202202/01/23 10 0 % 2 6 9 , 2 7 8 (1 0 2 , 0 6 8 ) (4 9 , 9 2 9 ) 11 7 , 2 8 1 15 0 . 3 7 1 % 1 7 6 , 3 5 6 88 , 1 7 8 (3 1 7 ) (8 , 7 8 6 ) 79 , 0 7 5 54 4 , 8 3 5 4.5202308/01/23 10 0 % 2 6 9 , 2 7 8 (1 0 2 , 0 6 8 ) (4 9 , 9 2 9 ) 11 7 , 2 8 1 15 0 . 3 7 1 % 1 7 6 , 3 5 6 88 , 1 7 8 (3 1 7 ) (8 , 7 8 6 ) 79 , 0 7 5 60 5 , 9 6 2 5202302/01/24 10 0 % 2 7 7 , 3 5 6 (1 0 2 , 0 6 8 ) (5 2 , 3 4 1 ) 12 2 , 9 4 7 15 0 . 3 7 1 % 1 8 4 , 8 7 7 92 , 4 3 8 (3 3 3 ) (9 , 2 1 1 ) 82 , 8 9 5 66 8 , 7 8 6 5.5202408/01/24 10 0 % 2 7 7 , 3 5 6 (1 0 2 , 0 6 8 ) (5 2 , 3 4 1 ) 12 2 , 9 4 7 15 0 . 3 7 1 % 1 8 4 , 8 7 7 92 , 4 3 8 (3 3 3 ) (9 , 2 1 1 ) 82 , 8 9 5 73 0 , 3 7 8 6202402/01/25 10 0 % 2 8 5 , 6 7 7 (1 0 2 , 0 6 8 ) (5 4 , 8 2 6 ) 12 8 , 7 8 3 15 0 . 3 7 1 % 1 9 3 , 6 5 3 96 , 8 2 6 (3 4 9 ) (9 , 6 4 8 ) 86 , 8 3 0 79 3 , 6 2 9 6.5202508/01/25 10 0 % 2 8 5 , 6 7 7 (1 0 2 , 0 6 8 ) (5 4 , 8 2 6 ) 12 8 , 7 8 3 15 0 . 3 7 1 % 1 9 3 , 6 5 3 96 , 8 2 6 (3 4 9 ) (9 , 6 4 8 ) 86 , 8 3 0 85 5 , 6 4 0 7202502/01/26 10 0 % 2 9 4 , 2 4 7 (1 0 2 , 0 6 8 ) (5 7 , 3 8 5 ) 13 4 , 7 9 4 15 0 . 3 7 1 % 2 0 2 , 6 9 2 10 1 , 3 4 6 (3 6 5 ) (1 0 , 0 9 8 ) 90 , 8 8 3 91 9 , 2 7 2 7.5202608/01/26 10 0 % 2 9 4 , 2 4 7 (1 0 2 , 0 6 8 ) (5 7 , 3 8 5 ) 13 4 , 7 9 4 15 0 . 3 7 1 % 2 0 2 , 6 9 2 10 1 , 3 4 6 (3 6 5 ) (1 0 , 0 9 8 ) 90 , 8 8 3 98 1 , 6 5 7 8202602/01/27 10 0 % 3 0 3 , 0 7 5 (1 0 2 , 0 6 8 ) (6 0 , 0 2 1 ) 14 0 , 9 8 6 15 0 . 3 7 1 % 2 1 2 , 0 0 2 10 6 , 0 0 1 (3 8 2 ) (1 0 , 5 6 2 ) 95 , 0 5 7 1, 0 4 5 , 6 2 8 8.5202708/01/27 10 0 % 3 0 3 , 0 7 5 (1 0 2 , 0 6 8 ) (6 0 , 0 2 1 ) 14 0 , 9 8 6 15 0 . 3 7 1 % 2 1 2 , 0 0 2 10 6 , 0 0 1 (3 8 2 ) (1 0 , 5 6 2 ) 95 , 0 5 7 1, 1 0 8 , 3 4 5 9202702/01/28 10 0 % 3 1 2 , 1 6 7 (1 0 2 , 0 6 8 ) (6 2 , 7 3 6 ) 14 7 , 3 6 3 15 0 . 3 7 1 % 2 2 1 , 5 9 2 11 0 , 7 9 6 (3 9 9 ) (1 1 , 0 4 0 ) 99 , 3 5 7 1, 1 7 2 , 6 1 3 9.5202808/01/28 10 0 % 3 1 2 , 1 6 7 (1 0 2 , 0 6 8 ) (6 2 , 7 3 6 ) 14 7 , 3 6 3 15 0 . 3 7 1 % 2 2 1 , 5 9 2 11 0 , 7 9 6 (3 9 9 ) (1 1 , 0 4 0 ) 99 , 3 5 7 1, 2 3 5 , 6 2 1 10202802/01/29 10 0 % 3 2 1 , 5 3 2 (1 0 2 , 0 6 8 ) (6 5 , 5 3 2 ) 15 3 , 9 3 2 15 0 . 3 7 1 % 2 3 1 , 4 6 9 11 5 , 7 3 4 (4 1 7 ) (1 1 , 5 3 2 ) 10 3 , 7 8 6 1, 3 0 0 , 1 4 7 10.5202908/01/29 10 0 % 3 2 1 , 5 3 2 (1 0 2 , 0 6 8 ) (6 5 , 5 3 2 ) 15 3 , 9 3 2 15 0 . 3 7 1 % 2 3 1 , 4 6 9 11 5 , 7 3 4 (4 1 7 ) (1 1 , 5 3 2 ) 10 3 , 7 8 6 1, 3 6 3 , 4 0 8 11202902/01/30 10 0 % 3 3 1 , 1 7 8 (1 0 2 , 0 6 8 ) (6 8 , 4 1 2 ) 16 0 , 6 9 7 15 0 . 3 7 1 % 2 4 1 , 6 4 2 12 0 , 8 2 1 (4 3 5 ) (1 2 , 0 3 9 ) 10 8 , 3 4 8 1, 4 2 8 , 1 5 4 11.5203008/01/30 10 0 % 3 3 1 , 1 7 8 (1 0 2 , 0 6 8 ) (6 8 , 4 1 2 ) 16 0 , 6 9 7 15 0 . 3 7 1 % 2 4 1 , 6 4 2 12 0 , 8 2 1 (4 3 5 ) (1 2 , 0 3 9 ) 10 8 , 3 4 8 1, 4 9 1 , 6 3 1 12203002/01/31 10 0 % 3 4 1 , 1 1 3 (1 0 2 , 0 6 8 ) (7 1 , 3 7 9 ) 16 7 , 6 6 6 15 0 . 3 7 1 % 2 5 2 , 1 2 1 12 6 , 0 6 1 (4 5 4 ) (1 2 , 5 6 1 ) 11 3 , 0 4 6 1, 5 5 6 , 5 6 1 12.5203108/01/31 10 0 % 3 4 1 , 1 1 3 (1 0 2 , 0 6 8 ) (7 1 , 3 7 9 ) 16 7 , 6 6 6 15 0 . 3 7 1 % 2 5 2 , 1 2 1 12 6 , 0 6 1 (4 5 4 ) (1 2 , 5 6 1 ) 11 3 , 0 4 6 1, 6 2 0 , 2 1 9 13203102/01/32 10 0 % 3 5 1 , 3 4 7 (1 0 2 , 0 6 8 ) (7 4 , 4 3 5 ) 17 4 , 8 4 4 15 0 . 3 7 1 % 2 6 2 , 9 1 4 13 1 , 4 5 7 (4 7 3 ) (1 3 , 0 9 8 ) 11 7 , 8 8 6 1, 6 8 5 , 3 0 0 13.5203208/01/32 10 0 % 3 5 1 , 3 4 7 (1 0 2 , 0 6 8 ) (7 4 , 4 3 5 ) 17 4 , 8 4 4 15 0 . 3 7 1 % 2 6 2 , 9 1 4 13 1 , 4 5 7 (4 7 3 ) (1 3 , 0 9 8 ) 11 7 , 8 8 6 1, 7 4 9 , 1 0 5 14203202/01/33 10 0 % 3 6 1 , 8 8 7 (1 0 2 , 0 6 8 ) (7 7 , 5 8 2 ) 18 2 , 2 3 7 15 0 . 3 7 1 % 2 7 4 , 0 3 1 13 7 , 0 1 6 (4 9 3 ) (1 3 , 6 5 2 ) 12 2 , 8 7 0 1, 8 1 4 , 3 0 4 14.5203308/01/33 10 0 % 3 6 1 , 8 8 7 (1 0 2 , 0 6 8 ) (7 7 , 5 8 2 ) 18 2 , 2 3 7 15 0 . 3 7 1 % 2 7 4 , 0 3 1 13 7 , 0 1 6 (4 9 3 ) (1 3 , 6 5 2 ) 12 2 , 8 7 0 1, 8 7 8 , 2 2 5 15203302/01/34 10 0 % 3 7 2 , 7 4 4 (1 0 2 , 0 6 8 ) (8 0 , 8 2 4 ) 18 9 , 8 5 2 15 0 . 3 7 1 % 2 8 5 , 4 8 2 14 2 , 7 4 1 (5 1 4 ) (1 4 , 2 2 3 ) 12 8 , 0 0 4 1, 9 4 3 , 5 1 1 15.5203408/01/34 10 0 % 3 7 2 , 7 4 4 (1 0 2 , 0 6 8 ) (8 0 , 8 2 4 ) 18 9 , 8 5 2 15 0 . 3 7 1 % 2 8 5 , 4 8 2 14 2 , 7 4 1 (5 1 4 ) (1 4 , 2 2 3 ) 12 8 , 0 0 4 2, 0 0 7 , 5 1 7 16203402/01/35 10 0 % 3 8 3 , 9 2 6 (1 0 2 , 0 6 8 ) (8 4 , 1 6 3 ) 19 7 , 6 9 5 15 0 . 3 7 1 % 2 9 7 , 2 7 6 14 8 , 6 3 8 (5 3 5 ) (1 4 , 8 1 0 ) 13 3 , 2 9 3 2, 0 7 2 , 8 6 0 16.5203508/01/35 10 0 % 3 8 3 , 9 2 6 (1 0 2 , 0 6 8 ) (8 4 , 1 6 3 ) 19 7 , 6 9 5 15 0 . 3 7 1 % 2 9 7 , 2 7 6 14 8 , 6 3 8 (53 5 ) (1 4 , 8 1 0 ) 13 3 , 2 9 3 2, 1 3 6 , 9 2 1 17203502/01/36 10 0 % 3 9 5 , 4 4 4 (1 0 2 , 0 6 8 ) (8 7 , 6 0 2 ) 20 5 , 7 7 3 15 0 . 3 7 1 % 3 0 9 , 4 2 4 15 4 , 7 1 2 (5 5 7 ) (1 5 , 4 1 5 ) 13 8 , 7 3 9 2, 2 0 2 , 2 9 4 17.5203608/01/36 10 0 % 3 9 5 , 4 4 4 (1 0 2 , 0 6 8 ) (8 7 , 6 0 2 ) 20 5 , 7 7 3 15 0 . 3 7 1 % 3 0 9 , 4 2 4 15 4 , 7 1 2 (5 5 7 ) (1 5 , 4 1 5 ) 13 8 , 7 3 9 2, 2 6 6 , 3 8 4 18203602/01/37 10 0 % 4 0 7 , 3 0 7 (1 0 2 , 0 6 8 ) (9 1 , 1 4 5 ) 21 4 , 0 9 4 15 0 . 3 7 1 % 3 2 1 , 9 3 6 16 0 , 9 6 8 (5 7 9 ) (1 6 , 0 3 9 ) 14 4 , 3 5 0 2, 3 3 1 , 7 5 9 18.5203708/01/37 10 0 % 4 0 7 , 3 0 7 (1 0 2 , 0 6 8 ) (9 1 , 1 4 5 ) 21 4 , 0 9 4 15 0 . 3 7 1 % 3 2 1 , 9 3 6 16 0 , 9 6 8 (5 7 9 ) (1 6 , 0 3 9 ) 14 4 , 3 5 0 2, 3 9 5 , 8 5 1 19203702/01/38 10 0 % 4 1 9 , 5 2 6 (1 0 2 , 0 6 8 ) (9 4 , 7 9 3 ) 22 2 , 6 6 5 15 0 . 3 7 1 % 3 3 4 , 8 2 4 16 7 , 4 1 2 (6 0 3 ) (1 6 , 6 8 1 ) 15 0 , 1 2 8 2, 4 6 1 , 2 0 3 19.5203808/01/38 10 0 % 4 1 9 , 5 2 6 (1 0 2 , 0 6 8 ) (9 4 , 7 9 3 ) 22 2 , 6 6 5 15 0 . 3 7 1 % 3 3 4 , 8 2 4 16 7 , 4 1 2 (6 0 3 ) (1 6 , 6 8 1 ) 15 0 , 1 2 8 2, 5 2 5 , 2 7 3 20203802/01/39 10 0 % 4 3 2 , 1 1 2 (1 0 2 , 0 6 8 ) (9 8 , 5 5 2 ) 23 1 , 4 9 3 15 0 . 3 7 1 % 3 4 8 , 0 9 8 17 4 , 0 4 9 (6 2 7 ) (1 7 , 3 4 2 ) 15 6 , 0 8 0 2, 5 9 0 , 5 7 7 20.5203908/01/39 10 0 % 4 3 2 , 1 1 2 (1 0 2 , 0 6 8 ) (9 8 , 5 5 2 ) 23 1 , 4 9 3 15 0 . 3 7 1 % 3 4 8 , 0 9 8 17 4 , 0 4 9 (6 2 7 ) (1 7 , 3 4 2 ) 15 6 , 0 8 0 2, 6 5 4 , 6 0 0 21203902/01/40 10 0 % 4 4 5 , 0 7 5 (1 0 2 , 0 6 8 ) (1 0 2 , 4 2 2 ) 24 0 , 5 8 5 15 0 . 3 7 1 % 36 1 , 7 7 0 18 0 , 8 8 5 (6 5 1 ) (1 8 , 0 2 3 ) 16 2 , 2 1 1 2, 7 1 9 , 8 3 4 21.5204008/01/40 10 0 % 4 4 5 , 0 7 5 (1 0 2 , 0 6 8 ) (1 0 2 , 4 2 2 ) 24 0 , 5 8 5 15 0 . 3 7 1 % 3 6 1 , 7 7 0 18 0 , 8 8 5 (6 5 1 ) (1 8 , 0 2 3 ) 16 2 , 2 1 1 2, 7 8 3 , 7 8 8 22204002/01/41 10 0 % 4 5 8 , 4 2 8 (1 0 2 , 0 6 8 ) (1 0 6 , 4 0 9 ) 24 9 , 9 5 0 15 0 . 3 7 1 % 3 7 5 , 8 5 3 18 7 , 9 2 6 (6 7 7 ) (1 8 , 7 2 5 ) 16 8 , 5 2 5 2, 8 4 8 , 9 3 0 22.5204108/01/41 10 0 % 4 5 8 , 4 2 8 (1 0 2 , 0 6 8 ) (1 0 6 , 4 0 9 ) 24 9 , 9 5 0 15 0 . 3 7 1 % 3 7 5 , 8 5 3 18 7 , 9 2 6 (6 7 7 ) (1 8 , 7 2 5 ) 16 8 , 5 2 5 2, 9 1 2 , 7 9 4 23204102/01/42 10 0 % 4 7 2 , 1 8 1 (1 0 2 , 0 6 8 ) (1 1 0 , 5 1 6 ) 25 9 , 5 9 7 15 0 . 3 7 1 % 3 9 0 , 3 5 8 19 5 , 1 7 9 (7 0 3 ) (1 9 , 4 4 8 ) 17 5 , 0 2 9 2, 9 7 7 , 8 2 2 23.5204208/01/42 10 0 % 4 7 2 , 1 8 1 (1 0 2 , 0 6 8 ) (1 1 0 , 5 1 6 ) 25 9 , 5 9 7 15 0 . 3 7 1 % 3 9 0 , 3 5 8 19 5 , 1 7 9 (7 0 3 ) (1 9 , 4 4 8 ) 17 5 , 0 2 9 3, 0 4 1 , 5 7 5 24204202/01/43 10 0 % 4 8 6 , 3 4 6 (1 0 2 , 0 6 8 ) (1 1 4 , 7 4 6 ) 26 9 , 5 3 2 15 0 . 3 7 1 % 4 0 5 , 2 9 8 20 2 , 6 4 9 (7 3 0 ) (2 0 , 1 9 2 ) 18 1 , 7 2 8 3, 1 0 6 , 4 7 0 24.5204308/01/43 10 0 % 4 8 6 , 3 4 6 (1 0 2 , 0 6 8 ) (1 1 4 , 7 4 6 ) 26 9 , 5 3 2 15 0 . 3 7 1 % 4 0 5 , 2 9 8 20 2 , 6 4 9 (7 3 0 ) (2 0 , 1 9 2 ) 18 1 , 7 2 8 3, 1 7 0 , 0 9 2 25204302/01/44 10 0 % 5 0 0 , 9 3 6 (1 0 2 , 0 6 8 ) (1 1 9 , 1 0 2 ) 27 9 , 7 6 6 15 0 . 3 7 1 % 4 2 0 , 6 8 7 21 0 , 3 4 3 (7 5 7 ) (2 0 , 9 5 9 ) 18 8 , 6 2 8 3, 2 3 4 , 8 3 6 25.5204408/01/44 10 0 % 5 0 0 , 9 3 6 (10 2 , 0 6 8 ) (1 1 9 , 1 0 2 ) 27 9 , 7 6 6 15 0 . 3 7 1 % 4 2 0 , 6 8 7 21 0 , 3 4 3 (7 5 7 ) (2 0 , 9 5 9 ) 18 8 , 6 2 8 3, 2 9 8 , 3 1 0 26204402/01/45 T o t a l 6, 9 2 9 , 4 3 3 (2 4 , 9 4 6 ) (6 9 0 , 4 4 9 ) 6, 2 1 4 , 0 3 9 Pr e s e n t V a l u e F r o m 0 8 / 0 1 / 2 0 1 7 P r e s e n t V a l u e R a t e 4 . 0 0 % 3, 6 7 8 , 0 3 0 ( 1 3 , 2 4 1 ) ( 3 6 6 , 4 7 9 ) 3 , 2 9 8 , 3 1 0 Pr e p a r e d b y E h l e r s & A s s o c i a t e s , I n c . - E s t i m a t e s O n l y N: \ M i n n s o t a \ C o l u m b i a H e i g h t s \ H o u s i n g - E c o n o m i c - R e d e v e l o p m e n t \ T IF \ T I F D i s t r i c t s \ H y - V e e T I F D i s t r i c t \ T I F R u n s \ T I F R u n 9 - 2 2 - 1 6 - FINAL FOR TIF PLAN.xls141 Appendix E Minnesota Business Assistance Form (Minnesota Department of Employment and Economic Development) A Minnesota Business Assistance Form (MBAF) should be used to report and/or update each calendar year's activity by April 1 of the following year. Please see the Minnesota Department of Employment and Economic Development (DEED) website at http://www.deed.state.mn.us/Community/subsidies/MBAFForm.htm for information and forms. Appendix E-1 142 Appendix F Redevelopment Qualifications for the District Appendix F-1 143 Report of Inspection Procedures and Results for Determining Qualifications of a Tax Increment Financing District as a Redevelopment District Central Valu Center Tax Increment Financing District Columbia Heights, Minnesota September 30, 2016 Prepared For the City of Columbia Heights Prepared by: LHB, Inc. 701 Washington Avenue North, Suite 200 Minneapolis, Minnesota 55401 LHB Project No. 160793 144 145 Central Valu Center Tax Increment Financing District LHB Project No. 160793 Page 1 of 11 Final Report TABLE OF CONTENTS PART 1 – EXECUTIVE SUMMARY ................................................................................ 2 Purpose of Evaluation ................................................................................ 2 Scope of Work ........................................................................................... 2 Conclusion ................................................................................................. 3 PART 2 – MINNESOTA STATUTE 469.174, SUBDIVISION 10 REQUIREMENTS ....... 3 A. Coverage Test ...................................................................................... 3 B. Condition of Buildings Test ................................................................... 4 C. Distribution of Substandard Buildings ................................................... 5 PART 3 – PROCEDURES FOLLOWED ......................................................................... 5 PART 4 – FINDINGS ...................................................................................................... 6 A. Coverage Test ...................................................................................... 6 B. Condition of Building Test ..................................................................... 7 1. Building Inspection .................................................................... 7 2. Replacement Cost ..................................................................... 7 3. Code Deficiencies ..................................................................... 7 4. System Condition Deficiencies .................................................. 8 C. Distribution of Substandard Structures ................................................. 9 PART 5 - TEAM CREDENTIALS .................................................................................. 10 APPENDIX A Property Condition Assessment Summary Sheet APPENDIX B Building Code, Condition Deficiency and Context Analysis Reports APPENDIX C Building Replacement Cost Reports Code Deficiency Cost Reports Photographs 146 147 Central Valu Center Tax Increment Financing District LHB Project No. 160793 Page 2 of 11 Final Report PART 1 – EXECUTIVE SUMMARY PURPOSE OF EVALUATION LHB was hired by the City of Columbia Heights to inspect and evaluate the properties within a Tax Increment Financing Redevelopment District (“TIF District”) proposed to be established by the City. The proposed TIF District is bound by 44th Avenue Northeast, Central Avenue and 43rd Avenue Northeast (Diagram 1). The purpose of LHB’s work is to determine whether the proposed TIF District meets the statutory requirements for coverage, and whether one (1) building on one (1) parcel, located within the proposed TIF District, meet the qualifications required for a Redevelopment District. Diagram 1 – Proposed TIF District SCOPE OF WORK The proposed TIF District consists of one (1) parcel with one (1) building. The building was inspected on September 16, 2016. A Building Code and Condition Deficiency Report for the building that was inspected is located in Appendix B. 148 Central Valu Center Tax Increment Financing District LHB Project No. 160793 Page 3 of 11 Final Report CONCLUSION After inspecting and evaluating the properties within the proposed TIF District and applying current statutory criteria for a Redevelopment District under Minnesota Statutes, Section 469.174, Subdivision 10, it is our professional opinion that the proposed TIF District qualifies as a Redevelopment District because: • The proposed TIF District has a coverage calculation of 100 percent which is above the 70 percent requirement. • 100 percent of the buildings are structurally substandard which is above the 50 percent requirement. • The substandard buildings are reasonably distributed. The remainder of this report describes our process and findings in detail. PART 2 – MINNESOTA STATUTE 469.174, SUBDIVISION 10 REQUIREMENTS The properties were inspected in accordance with the following requirements under Minnesota Statutes, Section 469.174, Subdivision 10(c), which states: INTERIOR INSPECTION “The municipality may not make such determination [that the building is structurally substandard] without an interior inspection of the property...” EXTERIOR INSPECTION AND OTHER MEANS “An interior inspection of the property is not required, if the municipality finds that (1) the municipality or authority is unable to gain access to the property after using its best efforts to obtain permission from the party that owns or controls the property; and (2) the evidence otherwise supports a reasonable conclusion that the building is structurally substandard.” DOCUMENTATION “Written documentation of the findings and reasons why an interior inspection was not conducted must be made and retained under section 469.175, subdivision 3(1).” QUALIFICATION REQUIREMENTS Minnesota Statutes, Section 469.174, Subdivision 10 (a) (1) requires three tests for occupied parcels: A. COVERAGE TEST …“parcels consisting of 70 percent of the area of the district are occupied by buildings, streets, utilities, or paved or gravel parking lots…” 149 Central Valu Center Tax Increment Financing District LHB Project No. 160793 Page 4 of 11 Final Report The coverage required by the parcel to be considered occupied is defined under Minnesota Statutes, Section 469.174, Subdivision 10(e), which states: “For purposes of this subdivision, a parcel is not occupied by buildings, streets, utilities, paved or gravel parking lots, or other similar structures unless 15 percent of the area of the parcel contains buildings, streets, utilities, paved or gravel parking lots, or other similar structures.” B. CONDITION OF BUILDINGS TEST Minnesota Statutes, Section 469.174, Subdivision 10(a) states, “…and more than 50 percent of the buildings, not including outbuildings, are structurally substandard to a degree requiring substantial renovation or clearance;” 1. Structurally substandard is defined under Minnesota Statutes, Section 469.174, Subdivision 10(b), which states: “For purposes of this subdivision, ‘structurally substandard’ shall mean containing defects in structural elements or a combination of deficiencies in essential utilities and facilities, light and ventilation, fire protection including adequate egress, layout and condition of interior partitions, or similar factors, which defects or deficiencies are of sufficient total significance to justify substantial renovation or clearance.” a. We do not count energy code deficiencies toward the thresholds required by Minnesota Statutes, Section 469.174, Subdivision 10(b) defined as “structurally substandard”, due to concerns expressed by the State of Minnesota Court of Appeals in the Walser Auto Sales, Inc. vs. City of Richfield case filed November 13, 2001. 2. Buildings are not eligible to be considered structurally substandard unless they meet certain additional criteria, as set forth in Subdivision 10(c) which states: “A building is not structurally substandard if it is in compliance with the building code applicable to new buildings or could be modified to satisfy the building code at a cost of less than 15 percent of the cost of constructing a new structure of the same square footage and type on the site. The municipality may find that a building is not disqualified as structurally substandard under the preceding sentence on the basis of reasonably available evidence, such as the size, type, and age of the building, the average cost of plumbing, electrical, or structural repairs, or other similar reliable evidence.” “Items of evidence that support such a conclusion [that the building is not disqualified] include recent fire or police inspections, on-site property tax appraisals or housing inspections, exterior evidence of deterioration, or other similar reliable evidence.” LHB counts energy code deficiencies toward the 15 percent code threshold required by Minnesota Statutes, Section 469.174, Subdivision 10(c)) for the following reasons: • The Minnesota energy code is one of ten building code areas highlighted by the Minnesota Department of Labor and Industry website where minimum construction standards are required by law. • Chapter 13 of the 2015 Minnesota Building Code states, “Buildings shall be designed and constructed in accordance with the International Energy Conservation Code.” Furthermore, Minnesota Rules, Chapter 1305.0021 Subpart 9 states, “References 150 Central Valu Center Tax Increment Financing District LHB Project No. 160793 Page 5 of 11 Final Report to the International Energy Conservation Code in this code mean the Minnesota Energy Code…” • The Senior Building Code Representative for the Construction Codes and Licensing Division of the Minnesota Department of Labor and Industry confirmed that the Minnesota Energy Code is being enforced throughout the State of Minnesota. • In a January 2002 report to the Minnesota Legislature, the Management Analysis Division of the Minnesota Department of Administration confirmed that the construction cost of new buildings complying with the Minnesota Energy Code is higher than buildings built prior to the enactment of the code. • Proper TIF analysis requires a comparison between the replacement value of a new building built under current code standards with the repairs that would be necessary to bring the existing building up to current code standards. In order for an equal comparison to be made, all applicable code chapters should be applied to both scenarios. Since current construction estimating software automatically applies the construction cost of complying with the Minnesota Energy Code, energy code deficiencies should also be identified in the existing structures. C. DISTRIBUTION OF SUBSTANDARD BUILDINGS Minnesota Statutes, Section 469.174, Subdivision 10, defines a Redevelopment District and requires one or more of the following conditions, “reasonably distributed throughout the district.” (1) “Parcels consisting of 70 percent of the area of the district are occupied by buildings, streets, utilities, paved or gravel parking lots, or other similar structures and more than 50 percent of the buildings, not including outbuildings, are structurally substandard to a degree requiring substantial renovation or clearance; (2) the property consists of vacant, unused, underused, inappropriately used, or infrequently used rail yards, rail storage facilities, or excessive or vacated railroad rights-of-way; (3) tank facilities, or property whose immediately previous use was for tank facilities…” Our interpretation of the distribution requirement is that the substandard buildings must be reasonably distributed throughout the district as compared to the location of all buildings in the district. For example, if all of the buildings in a district are located on one half of the area of the district, with the other half occupied by parking lots (meeting the required 70 percent coverage for the district), we would evaluate the distribution of the substandard buildings compared with only the half of the district where the buildings are located. If all of the buildings in a district are located evenly throughout the entire area of the district, the substandard buildings must be reasonably distributed throughout the entire area of the district. We believe this is consistent with the opinion expressed by the State of Minnesota Court of Appeals in the Walser Auto Sales, Inc. vs. City of Richfield case filed November 13, 2001. PART 3 – PROCEDURES FOLLOWED LHB inspected one (1) building during the day of September 16, 2016. 151 Central Valu Center Tax Increment Financing District LHB Project No. 160793 Page 6 of 11 Final Report PART 4 – FINDINGS A. COVERAGE TEST 1. The total square foot area of the parcel in the proposed TIF District was obtained from City records, GIS mapping and site verification. 2. The total square foot area of buildings and site improvements on the parcels in the proposed TIF District was obtained from City records, GIS mapping and site verification. 3. The percentage of coverage for each parcel in the proposed TIF District was computed to determine if the 15 percent minimum requirement was met. The total square footage of parcels meeting the 15 percent requirement was divided into the total square footage of the entire district to determine if the 70 percent requirement was met. FINDING: The proposed TIF District met the coverage test under Minnesota Statutes, Section 469.174, Subdivision 10(e), which resulted in parcels consisting of 100 percent of the area of the proposed TIF District being occupied by buildings, streets, utilities, paved or gravel parking lots, or other similar structures (Diagram 2). This exceeds the 70 percent area coverage requirement for the proposed TIF District under Minnesota Statutes, Section 469.174, Subdivision (a) (1). Diagram 2 – Coverage Diagram Shaded area depicts a parcel more than 15 percent occupied by buildings, streets, utilities, paved or gravel parking lots or other similar structures 152 Central Valu Center Tax Increment Financing District LHB Project No. 160793 Page 7 of 11 Final Report B. CONDITION OF BUILDING TEST 1. BUILDING INSPECTION The first step in the evaluation process is the building inspection. After an initial walk- thru, the inspector makes a judgment whether or not a building “appears” to have enough defects or deficiencies of sufficient total significance to justify substantial renovation or clearance. If it does, the inspector documents with notes and photographs code and non- code deficiencies in the building. 2. REPLACEMENT COST The second step in evaluating a building to determine if it is substandard to a degree requiring substantial renovation or clearance is to determine its replacement cost. This is the cost of constructing a new structure of the same square footage and type on site. Replacement costs were researched using R.S. Means Cost Works square foot models for 2016. A replacement cost was calculated by first establishing building use (office, retail, residential, etc.), building construction type (wood, concrete, masonry, etc.), and building size to obtain the appropriate median replacement cost, which factors in the costs of construction in Columbia Heights, Minnesota. Replacement cost includes labor, materials, and the contractor’s overhead and profit. Replacement costs do not include architectural fees, legal fees or other “soft” costs not directly related to construction activities. Replacement cost for each building is tabulated in Appendix A. 3. CODE DEFICIENCIES The next step in evaluating a building is to determine what code deficiencies exist with respect to such building. Code deficiencies are those conditions for a building which are not in compliance with current building codes applicable to new buildings in the State of Minnesota. Minnesota Statutes, Section 469.174, Subdivision 10(c), specifically provides that a building cannot be considered structurally substandard if its code deficiencies are not at least 15 percent of the replacement cost of the building. As a result, it was necessary to determine the extent of code deficiencies for each building in the proposed TIF District. The evaluation was made by reviewing all available information with respect to such buildings contained in City Building Inspection records and making interior and exterior inspections of the buildings. LHB utilizes the current Minnesota State Building Code as the official code for our evaluations. The Minnesota State Building Code is actually a series of provisional codes written specifically for Minnesota only requirements, adoption of several international codes, and amendments to the adopted international codes. 153 Central Valu Center Tax Increment Financing District LHB Project No. 160793 Page 8 of 11 Final Report After identifying the code deficiencies in each building, we used R.S. Means Cost Works 2016; Unit and Assembly Costs to determine the cost of correcting the identified deficiencies. We were then able to compare the correction costs with the replacement cost of each building to determine if the costs for correcting code deficiencies meet the required 15 percent threshold. FINDING: One (1) out of one (1) buildings (100 percent) in the proposed TIF District contained code deficiencies exceeding the 15 percent threshold required by Minnesota Statutes, Section 469.174, Subdivision 10(c). Building Code, Condition Deficiency and Context Analysis reports for the buildings in the proposed TIF District can be found in Appendix B of this report. 4. SYSTEM CONDITION DEFICIENCIES If a building meets the minimum code deficiency threshold under Minnesota Statutes, Section 469.174, Subdivision 10(c), then in order for such building to be “structurally substandard” under Minnesota Statutes, Section 469.174, Subdivision 10(b), the building’s defects or deficiencies should be of sufficient total significance to justify “substantial renovation or clearance.” Based on this definition, LHB re-evaluated each of the buildings that met the code deficiency threshold under Minnesota Statutes, Section 469.174, Subdivision 10(c), to determine if the total deficiencies warranted “substantial renovation or clearance” based on the criteria we outlined above. System condition deficiencies are a measurement of defects or substantial deterioration in site elements, structure, exterior envelope, mechanical and electrical components, fire protection and emergency systems, interior partitions, ceilings, floors and doors. The evaluation of system condition deficiencies was made by reviewing all available information contained in City records, and making interior and exterior inspections of the buildings. LHB only identified system condition deficiencies that were visible upon our inspection of the building or contained in City records. We did not consider the amount of “service life” used up for a particular component unless it was an obvious part of that component’s deficiencies. After identifying the system condition deficiencies in each building, we used our professional judgment to determine if the list of defects or deficiencies is of sufficient total significance to justify “substantial renovation or clearance.” FINDING: In our professional opinion, one (1) out of one (1) buildings (100 percent) in the proposed TIF District are structurally substandard to a degree requiring substantial renovation or clearance, because of defects in structural elements or a combination of deficiencies in essential utilities and facilities, light and ventilation, fire protection including adequate egress, layout and condition of interior partitions, or similar factors which defects or deficiencies are of sufficient total significance to justify substantial renovation or clearance. This exceeds the 50 percent requirement of Subdivision 10a(1). 154 Central Valu Center Tax Increment Financing District LHB Project No. 160793 Page 9 of 11 Final Report C. DISTRIBUTION OF SUBSTANDARD STRUCTURES Much of this report has focused on the condition of individual buildings as they relate to requirements identified by Minnesota Statutes, Section 469.174, Subdivision 10. It is also important to look at the distribution of substandard buildings throughout the geographic area of the proposed TIF District (Diagram 3). FINDING: The parcels with substandard buildings are reasonably distributed compared to all parcels that contain buildings. In addition, the substandard buildings are reasonably distributed within the parcels that contain buildings. Diagram 3 – Substandard Buildings Shaded green area depicts parcels with substandard buildings. Shaded orange area depicts substandard buildings. 155 Central Valu Center Tax Increment Financing District LHB Project No. 160793 Page 10 of 11 Final Report PART 5 - TEAM CREDENTIALS Michael A. Fischer, AIA, LEED AP - Project Principal/TIF Analyst Michael has 30 years of experience as project principal, project manager, project designer and project architect on planning, urban design, educational, commercial and governmental projects. He has become an expert on Tax Increment Finance District analysis assisting over 100 cities with strategic planning for TIF Districts. He is a Senior Vice President at LHB and currently leads the Minneapolis office. Michael completed a two-year Bush Fellowship, studying at MIT and Harvard in 1999, earning Masters degrees in City Planning and Real Estate Development from MIT. He has served on more than 50 committees, boards and community task forces, including a term as a City Council President and as Chair of a Metropolitan Planning Organization. Most recently, he served as Chair of the Edina, Minnesota planning commission. Michael has also managed and designed several award-winning architectural projects, and was one of four architects in the Country to receive the AIA Young Architects Citation in 1997. Philip Waugh – Project Manager/TIF Analyst Philip is a project manager with 13 years of experience in historic preservation, building investigations, material research, and construction methods. He previously worked as a historic preservationist and also served as the preservation specialist at the St. Paul Heritage Preservation Commission. Currently, Phil sits on the Board of Directors for the Preservation Alliance of Minnesota. His current responsibilities include project management of historic preservation projects, performing building condition surveys and analysis, TIF analysis, writing preservation specifications, historic design reviews, writing Historic Preservation Tax Credit applications, preservation planning, and grant writing. Jonathan Pettigrew, AIA – Inspector Jonathan Pettigrew has worked in architecture and construction for the last twenty years in Minnesota, California and Washington. His experience includes a variety of commercial and residential project types and scales, from single-family homes to a 300,000 square foot multi-building office complex. He has significant experience in code reviews and building systems inspections and analysis. Jonathan received his Minnesota architect’s license in 2004. He brings a strong interest in sustainability and an eye for detail to his work. He enjoys working with clients, consultants and contractors to bring projects together successfully. O:\16Proj\160793\400 Design\406 Reports\Final Report\160793 20160930 Central Valu Center Tax Increment Financing District Report.docx 156 Central Valu Center Tax Increment Financing District LHB Project No. 160793 Page 11 of 11 Final Report APPENDICES APPENDIX A Property Condition Assessment Summary Sheet APPENDIX B Building Code and Condition Deficiencies Reports APPENDIX C Building Replacement Cost Reports Code Deficiency Cost Reports Photographs 157 APPENDIX A Property Condition Assessment Summary Sheet 158 159 Ce n t r a l V a l u C e n t e r T a x I n c r e m e n t F i n a n c i n g D i s t r i c t - C o l u m b i a H e i g h t s , M i n n e s o t a Pr o p e r t y C o n d i t i o n A s s e s s m e n t S u m m a r y S h e e t TI F Ma p N o . PI D # P r o p e r t y A d d r e s s Im p r o v e d o r Va c a n t Su r v e y M e t h o d Us e d Si t e A r e a (S . F . ) Co v e r a g e A r e a o f Im p r o v e m e n t s (S . F . ) Co v e r a g e Pe r c e n t o f Im p r o v e m e n t s Co v e r a g e Qu a n t i t y (S . F . ) No . o f Bu i l d i n g s Building Replacement Cost15% of Replacement CostBuilding Code DeficienciesNo. of Buildings Exceeding 15% CriteriaNo. of buildings determined substandard A 35 - 3 0 - 2 4 - 1 1 - 0 0 8 3 4 3 0 0 C E N T R A L A V E N E I m p r o v e d I n t e r i o r / E x t er i o r 4 4 1 , 6 9 8 4 3 1 , 8 5 4 9 7 . 8 % 4 4 1 , 6 9 8 1 $9,180,679$1,377,102$1,704,54211 TO T A L S 4 4 1 , 6 9 8 44 1 , 6 9 8 1 11 10 0 . 0 % 100.0% O: \ 1 6 P r o j \ 1 6 0 7 9 3 \ 4 0 0 D e s i g n \ 4 0 6 R e p o r t s \ F i n a l Re p o r t \ [ 1 6 0 7 9 3 2 0 1 6 0 9 2 9 C e n t r a l V a l u C e n t e r T a x I n c r e m en t F i n a n c i n g D i s t r i c t S u m m ar y S p r e a d s h e e t . x l s x ] P r o p e r t y I n f o 100.0% To t a l C o v e r a g e P e r c e n t : Pe r c e n t o f b u i l d i n g s e x c e e d i n g 1 5 p e r c e n t c o d e d e f i c i e n c y t h r e s h o l d : Percent of buildings determined substandard: Ce n t r a l V a l u C e n t e r T a x In c r e m e n t F i n a n c i n g D i s t r i c t LH B P r o j e c t N u m b e r 1 6 0 7 9 3 Pa g e 1 o f 1 Property Condition Assessment Summary Sheet160 APPENDIX B Building Code, Condition Deficiency and Context Analysis Reports 161 162 Central Valu Center Tax Increment Financing District Page 1 of 4 Building Report LHB Project No. 160793 Parcel A Central Valu Center Tax Increment Financing District Building Code, Condition Deficiency and Context Analysis Report 29 September 2016 Map No. & Building Name: Parcel A Central Value Center Building Address: 4300 Central Ave NE, Columbia Heights, MN Parcel ID: Parcel ID: 35-30-24-11-0083 Inspection Date(s) & Time(s): September 16, 2016, 8:30am Inspection Type: Interior and Exterior Summary of Deficiencies: It is our professional opinion that this building is Substandard because: - Substantial renovation is required to correct Conditions found. - Building Code deficiencies total more than 15% of replacement cost, NOT including energy code deficiencies. Estimated Replacement Cost: $9,180,679 Estimated Cost to Correct Building Code Deficiencies: $1,704,542 Percentage of Replacement Cost for Building Code Deficiencies: 18.57% Defects in Structural Elements 1. Masonry under roof beam bearing point in Slumberland rear mezzanine is cracking. There are signs of attempted repairs but a vertical crack has propagated since that repair indicating this is an on-going problem. 2. A large (approximately 1/4” wide), crack is continuous from the top of wall to the corner of a door on the west side of the building. There has been cracking subsequent to previous repair attempts indicating ongoing movement. 3. Bricks where lintels bear above large louvers in south side are cracked and missing. 4. Lintels at garage doors on north side are rusting. Sealant between top of lintel and bottom of brick is trapping water and accelerating corrosion. Combination of Deficiencies 1. Essential Utilities and Facilities a. Concrete sidewalks in front of building entrances are cracked and uneven and so do not provide a code-compliant accessible route. b. The former grocery store lacks adequate restroom facilities including accessible fixtures and stalls. c. Restrooms lack code required floor clearances at doors. d. Building lacks plumbing fixtures at the gutted food preparation areas of the former grocery. e. Slumberland back restroom lacks code-compliant grab bars at restrooms. f. Slumberland mezzanine restroom lacks accessibility: the door is too narrow, and fixtures lack required floor clearances and grab bars. 163 Central Valu Center Tax Increment Financing District Page 2 of 4 Building Report LHB Project No. 160793 Parcel A g. Slumberland front vestibule restrooms (2) lack accessibility: insufficient interior dimensions, inadequate door width, and inadequate clearances at fixtures and door. h. Slumberland mezzanine and 1st floor office doors lack compliant operating hardware (should be lever handles instead of knobs). i. Building lacks a functioning air conditioning system at the vacant portions. j. Many of the building’s heating units have been disconnected. k. Corrosion present on electrical bus duct near louvers in south wall from moisture intrusion through louver/wall threatens the integrity and safety of that part of the electrical system. 2. Light and Ventilation a. There are many open electrical boxes and exposed wires in the former grocery store and in the Slumberland back areas. b. Building lacks code-compliant ventilation system. 3. Fire Protection/Adequate Egress a. Stair to 2nd floor at Rainbow has open risers; handrails lack extensions, b. Rainbow 2nd floor metal guardrail openings are too large; guardrail is too low. c. 2nd floor guardrail at warehouse mezzanine is too low, with openings that are too large. d. Stair at south warehouse mezzanine is constructed of unprotected wood. It lacks compliant handrails and guards. e. Ships ladder at middle Rainbow mezzanine and to roof hatch is too steep. f. Stairs to Slumberland front mezzanine are non-compliant for tread size. g. Handrails at Slumberland front mezzanine stairs are too low and lack required extensions. h. Mezzanine at roof access ladder lacks a guardrail. i. Slumberland front mezzanine guardrail has excessively large openings. j. Slumberland rear mezzanine guard rail is too low. k. Thresholds at several egress doors exceed allowable 1/2”, particularly on the north side. l. Stair at exits from Dollar Tree lacks handrails. Stair riser heights vary excessively. 4. Layout and Condition of Interior Partitions/Materials a. Areas have undergone several phases of demolition due to past use and modifications, resulting in missing and open walls. b. There are significant holes and trenches in the floor slab of the former grocery store. c. Resilient tile floor covering in former grocery space is in need of replacement due to wear, stains and removal of fixtures and partitions. d. Drywall ceiling and walls in grocery vestibule show water damage from leaks. e. Walls exhibit many holes and show extensive damage. f. In the Slumberland space, there are many missing and stained tiles. In general, the tiles are bowed indicating excessive humidity/moisture. g. Ceiling grids and tiles have been removed from most of the interior grocery food prep areas. This would need to be repaired/replaced for proper functioning of the fire protection sprinklers. h. The Slumberland mezzanine office spaces show widespread damage from moisture and mold. All floor, wall and ceiling finishes there should be removed and replaced. 5. Exterior Construction a. Roof is at the end of its life and shows significant signs of leakage including standing water on the floor at the back of the Rainbow space and Slumberland space, and stained ceiling tiles in the Slumberland space. Building maintenance staff reported ongoing leaks and repeated attempts to patch and repair the roof. b. As required by the MN Commercial Energy Code C402.2.1.2, when re-roofing, insulation must be added to bring the roof up to current code. 164 Central Valu Center Tax Increment Financing District Page 3 of 4 Building Report LHB Project No. 160793 Parcel A c. Interior faces of exterior CMU walls show stains and efflorescence indicating moisture has been moving through them. d. There are widespread cracks in interior masonry walls. e. Brick walls need extensive repointing and repair of cracks and holes in various areas. f. Sealant at control joints is at the end of its life and is cracked and pulled away from masonry. g. Hollow metal doors and frames on north and west sides of building have very corroded bottoms. h. Brick and block at south side covered loading dock is badly damaged and shows effects of on- going roof leakage. Mortar is missing and bricks are loose. i. Damage to EIFS of Dollar Tree façade. j. EIFS façade and soffit of Frattallone’s and Slumberland have widespread cracks. Description of Code Deficiencies 1. Concrete sidewalks in front of building entrances are cracked and uneven and so do not provide a code-compliant accessible route. 2. The former grocery store lacks adequate restroom facilities including accessible fixtures and stalls. 3. Restrooms lack code required floor clearances at doors. 4. Building lacks plumbing fixtures at the gutted food preparation areas of the former grocery. 5. Slumberland restroom lacks code-compliant grab bars at restrooms. 6. Slumberland mezzanine restroom lacks accessibility: the door is too narrow, and fixtures lack required floor clearances and grab bars. 7. Slumberland mezzanine and 1st floor office doors lack compliant operating hardware (should be lever handles instead of knobs). 8. Building lacks a functioning air conditioning system at the vacant portions. 9. Corrosion on electrical bus duct near louvers in south wall from moisture intrusion through louver/wall threatens the integrity and safety of that part of the electrical system. 10. There are many open electrical boxes and exposed wires in the former grocery store and in the Slumberland back areas. 11. Building lacks code-compliant ventilation system. 12. Stair to 2nd floor at Rainbow has open risers, handrails lack extensions. 13. Rainbow 2nd floor metal guardrail openings are too large, and guardrail is too low. 14. 2nd floor guardrail at warehouse mezzanine is too low, with openings that are too large. 15. Stair at south warehouse mezzanine is constructed of unprotected wood. It lacks compliant handrails and guards. 16. Ships ladder at middle Rainbow mezzanine and to roof hatch is too steep. 17. Stairs to Slumberland front mezzanine are non-compliant for tread size. 18. Handrails at Slumberland front mezzanine stairs are too low and lack required extensions. 19. Mezzanine at roof access ladder lacks a guardrail. 20. Slumberland front mezzanine guardrail has excessively large openings. 21. Slumberland rear mezzanine guard rail is too low. 22. Thresholds at several egress doors exceed allowable 1/2”, particularly on the north side. 23. Stair at exits from Dollar Tree lacks handrails. Stair riser heights vary excessively. 24. Roof is at the end of its life and shows significant signs of leakage including standing water on the floor at the back of the Rainbow space and in the Slumberland space and stained ceiling tiles in the Slumberland space. Building maintenance staff reported on-going leaks and repeated attempts to patch and repair the roof. 25. Interior faces of exterior CMU walls show stains and efflorescence indicating moisture has been moving through them. 26. Ceiling grids and tiles have been removed from most of the interior grocery food prep areas. This would need to be repaired/replaced for proper functioning of the fire protection sprinklers. 27. There are widespread cracks in interior masonry walls. 165 Central Valu Center Tax Increment Financing District Page 4 of 4 Building Report LHB Project No. 160793 Parcel A 28. Brick walls need extensive repointing and repair of cracks and holes in various areas. 29. Sealant at control joints is at the end of its life and is cracked and pulled away from masonry. 30. Hollow metal doors and frames on north and west sides of building have very corroded bottoms. 31. Brick and block at south side covered loading dock is badly damaged and shows effects of on-going roof leakage. Mortar is missing and bricks are loose. Overview of Deficiencies This building was originally constructed as a Zayre’s Shopper City in 1968. Currently, the building is divided into five tenant spaces. The largest, southern portion of the building has been vacant since 2014 when Rainbow Foods left, and that area has been largely gutted. The adjacent former Slumberland Clearance Center space has been vacant for about three years. An Ace Hardware Store, a Dollar Tree and Meineke Muffler currently occupy the other spaces. Interior spaces show widespread signs of the roof leaking. It is at the end of its life. Energy Code Deficiencies In addition to the building code deficiencies listed above, the existing building does not comply with the current energy code. These deficiencies are not included in the estimated costs to correct code deficiencies and are not considered in determining whether or not the building is substandard: Under the 2015 Minnesota Building and Energy Codes, the inadequacy of the roof insulation is required to be addressed when the building is reroofed. Building lacks adequate insulation in walls and under the slab O:\16Proj\160793\400 Design\406 Reports\Building Reports\160793 Parcel A 4300 Central Ave NE Building Report.docx 166 APPENDIX C Building Replacement Cost Reports Code Deficiency Cost Reports Photographs 167 168 Central Valu Center Tax Increment Financing District Replacement Cost Report Square Foot Cost Estimate Report Central Valu Center Columbia Heights 4300 Central Avenue NE, Columbia Hts, MN Building Type: Store, Department, 1 Story with Face Brick and  Concrete Block back‐up / Steel Frame Location:MINNEAPOLIS, MN Story Count:1 Story Height (L.F.):21 Floor Area (S.F.):120905 Labor Type:OPN Basement Included:No  Data Release:Year 2016 Quarter 3 Cost Per Square Foot:$83.71  Building Cost:$9,180,679  % of Total Cost Per S.F.Cost 8.89%$8.15  $           816,109  A1010 Standard Foundations $0.99 $119,696 A1030 Slab on Grade $5.76 $696,413 A2010 Basement Excavation $0.35 $42,317 A2020 Basement Walls $1.05 $126,950 38.52%$29.80  $       3,536,471  B1010 Floor Construction $0.50 $60,453 B1020 Roof Construction $10.92 $1,320,283 B2010 Exterior Walls $9.84 $1,189,705 B2020 Exterior Windows $2.01 $243,019 B2030 Exterior Doors $0.45 $54,407 B3010 Roof Coverings $6.03 $729,057 Estimate Name: Costs are derived from a building model with basic components. Scope differences and market conditions can cause costs to vary significantly. Brick wall, composite double wythe, standard face/CMU back‐up, 8"  Door, aluminum & glass, with transom, narrow stile, double door,  Strip footing, concrete, reinforced, load 11.1 KLF, soil bearing capacity 6  B Shell Slab on grade,4" thick, non industrial, reinforced Excavate and fill, 100,000 SF, 4' deep, sand, gravel, or common earth, on  Foundation wall, CIP, 4' wall height, direct chute, .148 CY/LF, 7.2 PLF, 12"  A Substructure Roof, steel joists, beams, 1.5" 22 ga metal deck, on columns, 30'x30' bay,  28" deep, 40 PSF superimposed load, 62 PSF total load Spread footings, 3000 PSI concrete, load 75K, soil bearing capacity 6 KSF,  Fireproofing, gypsum board, fire rated, 1 layer, 1/2" thick, 14" steel  Aluminum flush tube frame, for 1/4"glass, 1‐3/4" x 4‐1/2", 5'x6' opening,  Glazing panel, plate glass, 3/8" thick, tinted Door, steel 18 gauge, hollow metal, 1 door with frame, no label, 3'‐0" x 7'‐ Door, steel 24 gauge, overhead, sectional, electric operator, 12'‐0" x 12'‐ Roofing, asphalt flood coat, gravel, base sheet, 3 plies 15# asphalt felt,  Central Valu Center Tax Increment Financing District LHB Project No. 160793 Page 1 of 3 Replacement Cost Report Parcel A169 % of TotalCost Per S.F.Cost B3020 Roof Openings $0.05 $6,045 10.79%$13.31  $           990,212  C1010 Partitions$2.63 $317,980 C1020Interior Doors $2.00 $241,810 C3010 Wall Finishes $0.31 $37,481 C3020 Floor Finishes $3.25 $392,941 C3030 Ceiling Finishes $5.12 $619,034 32.71%$24.84  $       3,003,280  D2010Plumbing Fixtures $1.59 $192,239 D2020Domestic Water Distribution $0.37 $44,735 D2040 Rain Water Drainage $0.82 $99,142 D3050Terminal & Package Units $8.18 $989,003 D4010 Sprinklers $2.66 $321,607 D4020 Standpipes $0.28 $33,853 D5010Electrical Service/Distribution $0.67 $81,006 D5020Lighting and Branch Wiring $9.04 $1,092,981 Overhead service installation, includes breakers, metering, 20' conduit &  Feeder installation 600 V, including RGS conduit and XHHW wire, 1200 A Receptacles incl plate, box, conduit, wire, 5 per 1000 SF, .6 watts per SF Wall switches, 2.0 per 1000 SF Miscellaneous power, 1 watt Switchgear installation, incl switchboard, panels & circuit breaker,  Central air conditioning power, 6 watts Service sink w/trim, PE on CI,wall hung w/rim guard, 24" x 20" Water cooler, electric, wall hung, dual height, 14.3 GPH Acoustic ceilings, 5/8" plastic coated mineral fiber, 12" x 12" tile, 25 ga  Wet pipe sprinkler systems, steel, light hazard, 1 floor, 50,000 SF Wet standpipe risers, class III, steel, black, sch 40, 4" diam pipe, 1 floor Roof drain, CI, soil,single hub, 5" diam, 35' high D Services Water closet, vitreous china, bowl only with flush valve, wall hung Gas fired water heater, commercial, 100< F rise, 500 MBH input, 480 GPH Urinal, vitreous china, wall hung Rooftop, single zone, air conditioner, department stores, 10,000 SF, 29.17  Lavatory w/trim, vanity top, PE on CI, 20" x 18" Door, single leaf, kd steel frame, hollow metal, commercial quality, flush,  Tile, ceramic natural clay, marble, synthetic 12" x 12" x 5/8" 5/8" gypsum board, taped & finished, painted on metal furring Insulation, rigid, roof deck, extruded polystyrene, 40 PSI compressive  C Interiors Metal partition, 5/8"fire rated gypsum board face, no base,3 ‐5/8" @ 24"  2 coats paint on masonry with block filler Painting, interior on plaster and drywall, walls & ceilings, roller work,  Roof edges, aluminum, duranodic, .050" thick, 6" face Gravel stop, aluminum, extruded, 4", mill finish, .050" thick Roof hatch, with curb, 1" fiberglass insulation, 2'‐6" x 3'‐0", galvanized  Vinyl composition tile 12"x12" Central Valu Center Tax Increment Financing District LHB Project No. 160793 Page 2 of 3 Replacement Cost Report Parcel A170 % of TotalCost Per S.F.Cost D5030 Communications and Security $1.23 $148,713 D5090 Other Electrical Systems $0 0.00%$0.00  $                      ‐    E1090 Other Equipment $0.00 $0 0.00%$0.00  $                      ‐    F1040 Special Facilities $0.00 $0 0%0 0 100%$76.10$8,346,072 10.0%$7.61 $834,607 $0.00 $0.00  $0.00 $0.00  $83.71$9,180,679 Internet wiring, 8 data/voice outlets per 1000 S.F. none Contractor Fees (General Conditions,Overhead,Profit) Architectural Fees Telephone wiring 8 jacks/MSF (cost per MSF) Fluorescent fixtures suspended from deck, 1.6 watt per SF, 40 FC, 10  Fire alarm command center, addressable without voice, excl. wire &  Communication and alarm systems, includes outlets, boxes, conduit and  Communication and alarm systems, fire detection, addressable, 25  Total Building Cost E Equipment & Furnishings F Special Construction G Building Sitework SubTotal User Fees Central Valu Center Tax Increment Financing District LHB Project No. 160793 Page 3 of 3 Replacement Cost Report Parcel A171 Central Valu Center Tax Increment Financing District Code Deficiency Cost Report Parcel A: 4300 Central Ave NE, Columbia Heights, MN Parcel ID: 35-30-24-11-0083 Code Related Cost Items Unit Cost Units Unit Quantity Total Structural Elements Repair damaged masonry at beam bearing remove broken block/brick, temp shoring400.00$ Lump1 400$ new block and grouting 3,500.00$ Lump1 3,500$ Repair exterior masonry wall cracks grout injection 415.00$ LF62 25,730$ Rusty lintels at exterior door openings 1,200.00$ Lump8 9,600$ Repair/replace damaged masonry at lintel bearing 2,700.00$ Lump1 2,700$ Accessibility Items Provide accessible restrooms per Code Build (2) new accessible toilet rooms w/ compliant number of accessories and fixtures water closets2,500.00$ each4 10,000$ lavatories 1,750.00$ each4 7,000$ 2 sets of grab bars 300.00$ each2 600$ 4 sets toilet room accessories 300.00$ each4 1,200$ Interior room reconstruction (doors, partitions, finishes)78.00$ SF180 14,040$ new door 6'-8"x3'-0"800.00$ Each2 1,600$ Install toilet Room Ventilation System 500.00$ each2 1,000$ Slumberland Mezzanine- reconfigure wall layout uni-sex restroom demo existing doors and outer walls 350.00$ lump1 350$ water closets 2,500.00$ each1 2,500$ lavatories 1,750.00$ each1 1,750$ new wall construction and finishes 78.00$ SF60 4,680$ new doors and frames 800.00$ ea 1 800$ Selective replacement of broken and cracked concrete sidewalks demo existing 1,050.00$ lump1 1,050$ replace sidewalk slabs 15.00$ SF480 7,200$ Provide drinking fountains for accessibility code compliance1,200.00$ ea 2 2,400$ Replace knobs with compliant operating hardware (levers)400.00$ ea 7 2,800$ Exiting Replace thresholds that exceed 1/2" high 250.00$ ea6 1,500$ provide landing stoop outside north side doors 60.00$ SF100 6,000$ replace rusted exterior doors, frames and hardware -pair3,882.00$ ea 3 11,646$ replace rusted exterior doors, frames and hardware -single2,073.00$ ea 4 8,292$ Central Valu Center Tax Increment Financing District LHB Project No. 160793 Page 1 of 3 Code Deficiency Cost Report Parcel A172 Code Related Cost Items Unit Cost Units Unit Quantity Total Structural Elements Repair damaged masonry at beam bearing remove broken block/brick, temp shoring400.00$ Lump1 400$ new block and grouting 3,500.00$ Lump1 3,500$ Repair exterior masonry wall cracks grout injection 415.00$ LF62 25,730$ Rusty lintels at exterior door openings 1,200.00$ Lump8 9,600$ Repair/replace damaged masonry at lintel bearing 2,700.00$ Lump1 2,700$ provide lighted exit signage 350.00$ ea 4 1,400$ Rainbow south mezzanine stairs, including landings (2) demo existing stairs 400.00$ ea 2 800$ new steel stairs with concrete fill pan treads (16 risers)6,750.00$ ea 2 13,500$ steel pipe handrails 50.00$ LF84 4,200$ Slumberland front stairs and rails (2) demo existing stairs 400.00$ ea 2 800$ new steel stairs with concrete fill pan treads (16 risers)6,750.00$ ea 2 13,500$ steel pipe handrails 50.00$ LF84 4,200$ Replace non-compliant back exit stairs (4 risers) (3) demo existing concrete stairs 400.00$ Lump3 1,200$ new concrete stairs 2,000.00$ Lump3 6,000$ provide handrails 50.00$ LF45 2,250$ Guards (separate from combined hand/guardrails at stairs): Replace/modify non-compliant guards southeast (office) mezzanine guardrail 94.00$ LF10 940$ southwest (warehouse) mezzanine guardrail 94.00$ LF 9 846$ middle mezzanine guardrail 94.00$ LF26 2,444$ Slumberland rear mezzanine stair opening guards 94.00$ LF55 5,170$ Slumberland front mezzanine guard 94.00$ LF50 4,700$ Interior Construction fill holes and trenches in floor slab 30.00$ SF120 3,600$ 6.15$ SF3,200 19,680$ Fire Protection Provide intact ceiling for proper fire detection and suppression 3.80$ SF8,210 31,198$ replace damaged/missing grid and tiles in ex-Rainbow 5.12$ SF4,200 21,504$ provide fire alarm system at gutted area 0.85$ SF4,200 3,570$ provide fire-taped gyp board at open framing and exposed insulation replace damaged/missing tiles in ex-Slumberland 33% of area Central Valu Center Tax Increment Financing District LHB Project No. 160793 Page 2 of 3 Code Deficiency Cost Report Parcel A173 Code Related Cost Items Unit Cost Units Unit Quantity Total Structural Elements Repair damaged masonry at beam bearing remove broken block/brick, temp shoring400.00$ Lump1 400$ new block and grouting 3,500.00$ Lump1 3,500$ Repair exterior masonry wall cracks grout injection 415.00$ LF62 25,730$ Rusty lintels at exterior door openings 1,200.00$ Lump8 9,600$ Repair/replace damaged masonry at lintel bearing 2,700.00$ Lump1 2,700$ Exterior Construction 12 joints at 32lf/each 11.30$ LF384 4,339$ 5.47$ SF 3,908 21,377$ remove paint to allow repointing 0.75$ SF 3,908 2,931$ 10.69$ SF 4,440 47,464$ fill and repair holes in exterior brick and block walls 3,700.00$ lump 1 3,700$ replace/repoint at lintels 6.65$ SF 120 798$ Roof Construction remove existing leaking roof 0.75$ SF120,905 90,679$ replace water-damaged cover boards (20%)1.26$ SF24,181 30,468$ add insulation per MN Code C402.2.1.2 (3 1/2" polyiso)2.74$ SF120,905 331,280$ Replace leaking roof 6.03$ SF120,905 729,057$ New 25' high ship's ladder for roof access 10,000.00$ lump 1 10,000$ Mechanical- Electrical Provide new heating unit at gutted area 11,500.00$ each1 11,500$ Provide water heater and plumbing at central area 11,000.00$ each1 11,000$ Provide required ventilation system Mechanical equipment, ductwork and units 0.82$ SF120,905 99,142$ provide lighting and branch wiring at gutted area 9.04$ SF 4,200 37,968$ provide exterior outlets with weatherproof covers 250.00$ ea12 3,000$ Total Code Improvements1,704,542$ Repoint block joints (25%) remove and replace sealant at control joints Repoint brick joints (25%) Central Valu Center Tax Increment Financing District LHB Project No. 160793 Page 3 of 3 Code Deficiency Cost Report Parcel A174 Central Valu Center Tax Increment Financing District Photos: Parcel A, 4300 Central Ave NE Page 1 of 22 DSCN5163.JPG DSCN5164.JPG DSCN5165.JPG DSCN5166.JPG DSCN5167.JPG DSCN5168.JPG DSCN5169.JPG DSCN5170.JPG DSCN5171.JPG DSCN5172.JPG DSCN5173.JPG DSCN5174.JPG 175 Page 2 of 22Central Valu Center Tax Increment Financing District LHB Project No. 160793 Photos Parcel A DSCN5175.JPG DSCN5176.JPG DSCN5177.JPG DSCN5178.JPG DSCN5179.JPG DSCN5180.JPG DSCN5181.JPG DSCN5182.JPG DSCN5183.JPG DSCN5184.JPG DSCN5185.JPG DSCN5186.JPG 176 Page 3 of 22Central Valu Center Tax Increment Financing District LHB Project No. 160793 Photos Parcel A DSCN5187.JPG DSCN5188.JPG DSCN5189.JPG DSCN5190.JPG DSCN5191.JPG DSCN5192.JPG DSCN5193.JPG DSCN5194.JPG DSCN5195.JPG DSCN5196.JPG DSCN5197.JPG DSCN5198.JPG 177 Page 4 of 22Central Valu Center Tax Increment Financing District LHB Project No. 160793 Photos Parcel A DSCN5199.JPG DSCN5200.JPG DSCN5201.JPG DSCN5202.JPG DSCN5203.JPG DSCN5204.JPG DSCN5205.JPG DSCN5206.JPG DSCN5207.JPG DSCN5208.JPG DSCN5209.JPG DSCN5210.JPG 178 Page 5 of 22Central Valu Center Tax Increment Financing District LHB Project No. 160793 Photos Parcel A DSCN5211.JPG DSCN5212.JPG DSCN5213.JPG DSCN5214.JPG DSCN5215.JPG DSCN5216.JPG DSCN5217.JPG DSCN5218.JPG DSCN5219.JPG DSCN5220.JPG DSCN5221.JPG DSCN5222.JPG 179 Page 6 of 22Central Valu Center Tax Increment Financing District LHB Project No. 160793 Photos Parcel A DSCN5223.JPG DSCN5224.JPG DSCN5225.JPG DSCN5226.JPG DSCN5227.JPG DSCN5228.JPG DSCN5229.JPG DSCN5230.JPG DSCN5231.JPG DSCN5232.JPG DSCN5233.JPG DSCN5234.JPG 180 Page 7 of 22Central Valu Center Tax Increment Financing District LHB Project No. 160793 Photos Parcel A DSCN5235.JPG DSCN5236.JPG DSCN5237.JPG DSCN5238.JPG DSCN5239.JPG DSCN5240.JPG DSCN5241.JPG DSCN5242.JPG DSCN5243.JPG DSCN5244.JPG DSCN5245.JPG DSCN5246.JPG 181 Page 8 of 22Central Valu Center Tax Increment Financing District LHB Project No. 160793 Photos Parcel A DSCN5247.JPG DSCN5248.JPG DSCN5249.JPG DSCN5250.JPG DSCN5251.JPG DSCN5252.JPG DSCN5253.JPG DSCN5254.JPG DSCN5255.JPG DSCN5256.JPG DSCN5257.JPG DSCN5258.JPG 182 Page 9 of 22Central Valu Center Tax Increment Financing District LHB Project No. 160793 Photos Parcel A DSCN5259.JPG DSCN5260.JPG DSCN5261.JPG DSCN5262.JPG DSCN5263.JPG DSCN5264.JPG DSCN5265.JPG DSCN5266.JPG DSCN5267.JPG DSCN5268.JPG DSCN5269.JPG DSCN5270.JPG 183 Page 10 of 22Central Valu Center Tax Increment Financing District LHB Project No. 160793 Photos Parcel A DSCN5271.JPG DSCN5272.JPG DSCN5273.JPG DSCN5274.JPG DSCN5275.JPG DSCN5276.JPG DSCN5277.JPG DSCN5278.JPG DSCN5279.JPG DSCN5280.JPG DSCN5281.JPG DSCN5282.JPG 184 Page 11 of 22Central Valu Center Tax Increment Financing District LHB Project No. 160793 Photos Parcel A DSCN5283.JPG DSCN5284.JPG DSCN5285.JPG DSCN5286.JPG DSCN5287.JPG DSCN5288.JPG DSCN5289.JPG DSCN5290.JPG DSCN5291.JPG DSCN5292.JPG DSCN5293.JPG DSCN5294.JPG 185 Page 12 of 22Central Valu Center Tax Increment Financing District LHB Project No. 160793 Photos Parcel A DSCN5295.JPG DSCN5296.JPG DSCN5297.JPG DSCN5298.JPG DSCN5299.JPG DSCN5300.JPG DSCN5301.JPG DSCN5302.JPG DSCN5303.JPG DSCN5304.JPG DSCN5305.JPG DSCN5306.JPG 186 Page 13 of 22Central Valu Center Tax Increment Financing District LHB Project No. 160793 Photos Parcel A DSCN5307.JPG DSCN5308.JPG DSCN5309.JPG DSCN5310.JPG DSCN5311.JPG DSCN5312.JPG DSCN5313.JPG DSCN5314.JPG DSCN5315.JPG DSCN5316.JPG DSCN5317.JPG DSCN5318.JPG 187 Page 14 of 22Central Valu Center Tax Increment Financing District LHB Project No. 160793 Photos Parcel A DSCN5319.JPG DSCN5320.JPG DSCN5321.JPG DSCN5322.JPG DSCN5323.JPG DSCN5324.JPG DSCN5325.JPG DSCN5326.JPG DSCN5327.JPG DSCN5328.JPG DSCN5329.JPG DSCN5330.JPG 188 Page 15 of 22Central Valu Center Tax Increment Financing District LHB Project No. 160793 Photos Parcel A DSCN5331.JPG DSCN5332.JPG DSCN5333.JPG DSCN5334.JPG DSCN5335.JPG DSCN5336.JPG DSCN5337.JPG DSCN5338.JPG DSCN5339.JPG DSCN5340.JPG DSCN5341.JPG DSCN5342.JPG 189 Page 16 of 22Central Valu Center Tax Increment Financing District LHB Project No. 160793 Photos Parcel A DSCN5343.JPG DSCN5344.JPG DSCN5345.JPG DSCN5346.JPG DSCN5347.JPG DSCN5348.JPG DSCN5349.JPG DSCN5350.JPG DSCN5351.JPG DSCN5352.JPG DSCN5353.JPG DSCN5354.JPG 190 Page 17 of 22Central Valu Center Tax Increment Financing District LHB Project No. 160793 Photos Parcel A DSCN5355.JPG DSCN5356.JPG DSCN5357.JPG DSCN5358.JPG DSCN5359.JPG DSCN5360.JPG DSCN5361.JPG DSCN5362.JPG DSCN5363.JPG DSCN5364.JPG DSCN5365.JPG DSCN5366.JPG 191 Page 18 of 22Central Valu Center Tax Increment Financing District LHB Project No. 160793 Photos Parcel A DSCN5367.JPG DSCN5368.JPG DSCN5369.JPG DSCN5370.JPG DSCN5371.JPG DSCN5372.JPG DSCN5373.JPG DSCN5374.JPG DSCN5375.JPG DSCN5376.JPG DSCN5377.JPG DSCN5378.JPG 192 Page 19 of 22Central Valu Center Tax Increment Financing District LHB Project No. 160793 Photos Parcel A DSCN5379.JPG DSCN5380.JPG DSCN5381.JPG DSCN5382.JPG DSCN5383.JPG DSCN5384.JPG DSCN5385.JPG DSCN5386.JPG DSCN5387.JPG DSCN5388.JPG DSCN5389.JPG DSCN5390.JPG 193 Page 20 of 22Central Valu Center Tax Increment Financing District LHB Project No. 160793 Photos Parcel A DSCN5391.JPG DSCN5392.JPG DSCN5393.JPG DSCN5394.JPG DSCN5395.JPG DSCN5396.JPG DSCN5397.JPG DSCN5398.JPG DSCN5399.JPG DSCN5400.JPG DSCN5401.JPG DSCN5402.JPG 194 Page 21 of 22Central Valu Center Tax Increment Financing District LHB Project No. 160793 Photos Parcel A DSCN5403.JPG DSCN5404.JPG DSCN5405.JPG DSCN5406.JPG DSCN5407.JPG DSCN5408.JPG DSCN5409.JPG DSCN5410.JPG DSCN5411.JPG DSCN5412.JPG DSCN5413.JPG DSCN5414.JPG 195 Page 22 of 22Central Valu Center Tax Increment Financing District LHB Project No. 160793 Photos Parcel A DSCN5415.JPG DSCN5416.JPG DSCN5417.JPG DSCN5418.JPG DSCN5419.JPG DSCN5420.JPG DSCN5421.JPG DSCN5422.JPG 196 Appendix G Findings Including But/For Qualifications The reasons and facts supporting the findings for the adoption of the Tax Increment Financing Plan (TIF Plan) for Central Valu Center Tax Increment Financing District (District), as required pursuant to Minnesota Statutes, Section 469.175, Subdivision 3 are as follows: 1.Finding that Central Valu Center Tax Increment Financing District is a redevelopment district as defined in M.S., Section 469.174, Subd. 10. The District consists of one parcel, with plans to redevelop the area for commercial/industrial purposes. At least 70 percent of the area of the parcel in the District is occupied by buildings, streets, utilities, paved or gravel parking lots or other similar structures. The District contains one building, which has been analyzed by the City’s consultant, LHB, and found to be structurally substandard to a degree requiring substantial renovation or clearance. 2.Finding that the proposed development, in the opinion of the City Council, would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future and that the increased market value of the site that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in the market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of the District permitted by the TIF Plan. The proposed development, in the opinion of the City, would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future: This finding is supported by the fact that the redevelopment proposed in the TIF Plan meets the City's objectives for redevelopment, but due to the high costs of acquisition, tenant relocation, environmental remediation and renovation of a structurally substandard building, this project is feasible only through assistance, in part, from tax increment financing. The developer was asked for and provided a letter and a proforma as justification that the developer would not have gone forward without tax increment assistance. The increased market value of the site that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of the District permitted by the TIF Plan: This finding is justified on the grounds that the cost of acquisition, tenant relocation and environmental remediation add to the total redevelopment cost. Historically, these costs in this area have made redevelopment infeasible without tax increment assistance. The site has been predominately vacant for the last few years. The City reasonably determines that no other significant renovation/redevelopment/reuse of similar scope is anticipated on this site without substantially similar assistance being provided to the development. Therefore, the City concludes as follows: a.The City's estimate of the amount by which the market value of the entire District will increase without the use of tax increment financing is $0. b.If the proposed development occurs, the total increase in market value will be $8,859,100. c.The present value of tax increments from the District for the maximum duration of the district permitted by the TIF Plan is estimated to be $3,678,030. Appendix G-1 197 d.Even if some development other than the proposed development were to occur, the Council finds that no alternative would occur that would produce a market value increase greater than $3,181,070 (the amount in clause b less the amount in clause c) without tax increment assistance. 3.Finding that the TIF Plan for the District conforms to the general plan for the development or redevelopment of the municipality as a whole. The Planning Commission reviewed the TIF Plan and found that the TIF Plan conforms to the general development plan of the City. 4.Finding that the TIF Plan for the District will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the development or redevelopment of Downtown Central Business Redevelopment Project by private enterprise. The project to be assisted by the District will result in increased employment in the City and the State of Minnesota, the renovation of substandard properties, increased tax base of the State and add a high quality development to the City. But-For Analysis Current Market Value 5,140,900 New Market Value - Estimate 12,000,000 Difference 6,859,100 Present Value of Tax Increment 3,678,030 Difference 3,181,070 Value Likely to Occur Without TIF is Less Than: 3,181,070 Appendix G-2 198 199 200 AGENDA SECTION OTHER ORD. AND RESOLUTIONS ITEM NO. 9A MEETING DATE OCTOBER 24, 2016 CITY OF COLUMBIA HEIGHTS - COUNCIL LETTER ITEM: Library Seasonal Wage Adjustment DEPARTMENT: Administration CITY MANAGER’S APPROVAL: BY/DATE: Kelli Bourgeois; 10/20/16 BY/DATE: BACKGROUND: The library has lost a number of Pages and is currently having problems finding qualified applicants to fill the part time temporary Page position. They are currently staffed at 5 Pages while the normal number is 10 to 12. In reviewing the wage rates for other metro area libraries for Pages we found that we are paying significantly less than the other libraries in the area. While reviewing the Page wages, we also found that our Library Aide and Library Supervisor positions are also significantly underpaid. Staff is requesting the City Council adjust all of the library’s part time temporary wages as shown on the attached Schedule 1. These are consistent with the neighboring library salary rates as well as other internal positions such as Facility Supervisor and Retail Clerk. RECOMMENDED MOTION: Move to waive the reading of Resolution 2016-104, there being ample copies available to the public. RECOMMENDED MOTION: Move to adopt Resolution 2016-104, adopting changes in wage rates for part time temporary library employees effective November 1, 2016. 2016 PT Temp Library Wages Council Letter rd 201 RESOLUTION 2016-104 A Resolution of the City Council for the City of Columbia Heights, Minnesota, Amending Schedule I of Resolution 2015-39, Part Time Temporary Library Wage Rate Whereas, on May 11, 2015, the City Council approved Resolution 2015-39 establishing wages for part time temporary library and other positions; and Whereas, the City has been trying to fill vacant part time temporary Library Page positions and has not received adequate applications for the positions; and Whereas, due to this lack of applicants the City studied the compensation ranges for temporary Library Page, Library Aide, and Library Supervisor positions with other metro area libraries and found a wage discrepancy between the Columbia Heights library wages and other metro area library wages for comparable positions; and Whereas, the lack of staffing is causing the Columbia Heights Library Director to schedule existing staff for more hours than they were hired for and run short staffed on many shifts. Now, therefore, in accordance with all ordinances and regulations of the City of Columbia Heights, the City Council of the City of Columbia Heights makes the following: ORDER OF COUNCIL IT IS HEREBY RESOLVED, that Schedule I of Resolution 2015-39 is hereby amended to establish the wage ranges for the Part Time Temporary Library Employees as attached in Exhibit A effective November 1, 2016. Passed this 24th day of October, 2016. Offered by: Seconded by: Roll Call: ____________________________________ Gary L. Peterson, Mayor _______________________________________ Katie Bruno Council Secretary/City Clerk 202 2015 PART TIME TEMPORARY LIBRARY EMPLOYEES SCHEDULE I PROPOSED PAGE Entry $10.21 12.248 6 months $10.81 13.779 12 months $11.41 14.5445 24 months $12.01 15.31 LIBRARY AIDE Entry $10.45 17.28 6 months $11.10 18.36 12 months $11.75 19.44 24 months $12.41 20.52 36 months $13.06 21.6 LIBRARY SUPERVISORS Entry $19.21 22.329 6 months $20.27 23.5695 18 months $21.34 24.81 Effective June 1, 2015 203 AGENDA SECTION NEW BUSINESS ITEM NO. 9C MEETING DATE OCTOBER 24, 2016 CITY OF COLUMBIA HEIGHTS - COUNCIL LETTER ITEM: 2018 Comprehensive Plan Authorization DEPARTMENT: Community Development CITY MANAGER’S APPROVAL: BY/DATE: Joe Hogeboom/ 10-04-16 BY/DATE: BACKGROUND: The City of Columbia Heights is required to complete an update to its Comprehensive Plan. The Metropolitan Council requires that updates to the plan are made every ten years. The last update was completed in 2008, and this update is due to be submitted to the Metropolitan Council by the end of 2018. The Comprehensive Plan guides the City’s future land use, housing needs, transportation needs, water resources and economic development. The City Planner will oversee the completion of the Comprehensive Plan. Funds have been identified in the Special Projects Account (Fund 226) that will help to cover costs associated with this project. Staff hopes to begin searching for professional services this fall, and begin the Comprehensive Plan update process in January. STAFF RECOMMENDATION: Staff recommends approval of Resolution No. 2016-99, authorizing commencing the 2018 Comprehensive Plan revision process, and appropriated a project budget of no more than $100,000 from the Special Projects Fund 226 to be devoted to the project. RECOMMENDED MOTION(S): Motion: Waive the reading of Resolution No. 99, there being ample copies available to the public. Motion: Move to approve Resolution No. 99, being Resolution authorizing commencing the 2018 Comprehensive Plan revision process, and appropriated a project budget of no more than $100,000 from the Special Projects Fund 226 to be devoted to the project. ATTACHMENTS: Resolution No. 99 (1 page) 204 RESOLUTION NO. 2016-99 A resolution of the City Council for the City of Columbia Heights, Minnesota, Whereas, the Metropolitan Council (Met Council) has been the regional policy-making body, planning agency, and provider of essential services for the seven-county Twin Cities region for nearly 50 years, and; Whereas, a 17-member board appointed by the Governor guides the strategic growth of the metro area, adhering to the council’s mission of fostering efficient growth for a prosperous region, and; Whereas, in an effort to establish uniform regional governance of housing, transportation, and utility infrastructure, the Metropolitan Council requires each unit of local government within its jurisdiction to maintain a Comprehensive Plan, and; Whereas, Comprehensive Plans must be updated and reapproved by the Metropolitan Council every ten years, with the next approval deadline being December 31, 2018, and; Whereas, the City of Columbia Heights is required to adhere to regional Comprehensive Plan standards and requirements. Now, therefore, in accordance with the foregoing, and all ordinances and regulations of the City of Columbia Heights, the City Council of the City of Columbia Heights hereby supports commencing the 2018 Comprehensive Plan revision process, and appropriates a project budget of no more than $100,000 from the Special Projects Fund 226 to be devoted to the production of the Plan, effective from the date below. Passed this _________ day of ______________________, 2016 Offered by: Seconded by: Roll Call: Gary L. Peterson, Mayor Attest: Katie Bruno, City Clerk/Council Secretary 205