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HomeMy WebLinkAbout20181105_EDA_Minutes ECONOMIC DEVELOPMENT AUTHORITY (EDA) MINUTES OF THE MEETING OF NOVEMBER 5, 2018 The meeting was called to order at 6:00 pm by President, Marlaine Szurek. Members Present: Murzyn, Schmitt, Buesgens, Novitsky, Herringer, and Szurek. Members Absent: Williams Staff Present: Walt Fehst, Kelli Bourgeois, Joseph Hogeboom, Keith Dahl, Elizabeth Hammond, and Shelley Hanson PLEDGE OF ALLEGIANCE- RECITED CONSENT AGENDA 1. Approve minutes of October 1, 2018. 2. Approve Financial Report & Payment of Bills for September, 2018–Resolution 2018-17 Questions from Members: Herringer asked if the payment to Ehlers was for a financial matter. Dahl stated it was for their preparation of our TIF Reporting figures. Herringer then asked about another payment to Kimley Horn for $3,040. Dahl told members that Kimley Horn was paid in two installments totaling $9,100 for gathering the statistics and preparing the grant application for pedestrian improvements along Central Avenue. The last question was regarding the payment to Stranik Inc. Dahl said that was the first reimbursement for the facade improvement program for Midas Muffler/Auto Repair. Motion by Buesgens, seconded by Herringer, to approve the minutes of October 1, 2018. All ayes. MOTION PASSED. Motion by Buesgens , seconded by Herringer, to approve the Financial Report and Payment of Bills for September, 2018 as presented. All ayes. MOTION PASSED. RESOLUTIONNO.2018-17 AResolution of theEconomic Development Authorityof Columbia Heights, Minnesota, Approving the Financial Statements for the Month of September 2018 and the Payment of the Bills for the Month of September 2018. WHEREAS,the Columbia Heights Economic Development Authority (EDA) is required by Minnesota Statutes Section 469.096, Subd. 9, to prepare a detailed financial statement which shows all receipts and disbursements, their nature, the money on hand, the purposes to which the money on hand is to be applied, the EDA's credits and assets and its outstanding liabilities; and WHEREAS,said Statute also requires the EDA to examine the statement and treasurer's vouchers or bills and if correct, to approve them by Resolutionand enter the Resolution in its records; and 20181105_EDA_Minutes EDA Minutes Page 2 November 5, 2018 WHEREAS,the financial statement for the month of September 2018 has been reviewed by the EDA Commission; and WHEREAS,the EDA has examined the financial statements and finds them to be acceptable as to both form and accuracy; and WHEREAS,the EDA Commission has other means to verify the intent of Section 469.096, Subd. 9, including but not limited to Comprehensive Annual Financial Reports, Annual City approved Budgets, Audits and similar documentation; and WHEREAS,financials statements are held by the City’s Finance Department in a method outlined by the State of Minnesota’s Records Retention Schedule, NOW, THEREFORE BE IT RESOLVEDby the Board of Commissioners of the Columbia Heights Economic Development Authority that it has examined the referenced financial statements including the check history, and they are found to be correct, as to form and content; and BE IT FURTHER RESOLVEDthe financial statements are acknowledged and received and the check historyas presented in writing is approved for payment out of proper funds; and BE IT FURTHER RESOLVEDthis resolution is made a part of the permanent records of the Columbia Heights Economic Development Authority. ORDER OFECONOMIC DEVELOPMENT AUTHORITY Passed this __5th____ dayof ___November_____, 2018 Offered by: Buesgens Seconded by: Herringer Roll Call: All ayes BUSINESS ITEMS 1. Review and Discuss a Conceptual Proposal from Thor Construction Hammond told members that over the summer, staff from Community Development met with representatives from Thor Construction regarding their interest in constructing an apartment building in Columbia Heights. Staff discussed the City’s priority areas for redevelopment, and Thor Construction has indicated their interest in the vacant lot behind the public safety building. The property is approximately 1.75 acres, and would be required to be re-platted prior to development. Representatives from Thor Construction will be at the meeting to present the proposal. The goal of the meeting is to introduce the company to the City Council and Economic Development Authority, and gauge the City’s interest in this type of development for the area. Thor Construction has submitted a preliminary rendering and site plan that illustrates the proposal for the site. At this time, the proposal is for 79 units to be divided between studio, one, two and three bedroom units. Along with 20181105_EDA_Minutes EDA Minutes Page 3 November 5, 2018 the proposed units, the site plan shows a preliminary location for the storm water ponding and parking. There are 85 surface stalls and 39 underground stalls proposed. The narrative indicates that there would be some level of interior amenities for the residents such as a fitness center and/or bike storage. At this time, Thor Construction has stated that they would not be interested in owning or managing the building once it is complete. If the City wishes to entertain the proposal, Thor Construction would likely be requesting financial assistance from the City. Currently, they have indicated that they wish obtain the land for free, and request that the City pay for the costs associated with soil corrections, and the underground parking construction. This request is being made so that Thor Construction can achieve the return on equity that their investors need in order to fund the project. Included in the packets was a memo from Dahl regarding the Appraisal Summary that was completed on this parcel by Hosch Appraisal and Consulting Inc. Discussion regarding the Proposal: Patrick and Jackson Cruikshank from Thor Living Development/Construction Company were introduced. They reviewed their concept plan with members. Patrick explained that constructing attainable or work force housing is what their company focuses on as it is so needed throughout the metro area. He told members that most developers build affordable housing that qualify for federal subsidies, or luxury housing as it is more lucrative. Patrick stated they are currently constructing a building in south Minneapolis at the corner of Park and Franklin in the Phillips Neighborhood. He said it is a smaller building than the one proposed here in Columbia Heights due to the size of the property. As mentioned in the narrative, Patrick stated their proposal is to build a market rate apartment building with 79 nd units of studio, 1 BR, 2 BR, and 3 BR apartments. The building would be placed along 42 Avenue with a holding pond and parking in the rear. He told members they would probably put some playground equipment near the green area in the back as well as an area for pets. Their initial plan includes a combination of surface parking and underground parking for the residents. Buesgens and Szurek both stated they have a problem with their request to obtain the property for free, for the City to pay for the underground parking, and to also pay for soil corrections. They said they are not willing to put what could amount to 2 million dollars or more into the project. Novitsky understands their reasoning for asking for this assistance, but fails to see what benefit it would be for the City to do so. Patrick stated he would be happy to go over the numbers with the commission to prove the need for this much financing assistance to make the project work as submitted. He also suggested that changes could be made to the proposal that could reduce the amount they would need to make it work, such as eliminating underground parking. 20181105_EDA_Minutes EDA Minutes Page 4 Nov. 5, 2018 There was a discussion regarding the density of this proposal. Under the current Comprehensive Plan an R-4 zoning would allow 10 units/acre and a Mixed Use zoning would allow for 20 units/acre. Hammond explained that once the 2040 Comprehensive Plan is adopted that densities will increase. She told members that this parcel is currently zoned Institutional as it is a potential site for a new City Hall. Therefore, if the Council chooses to re- purpose this site for another use, it would need to go through a Comp Plan amendment, re-zoning and a PUD. This proposal has a density of 50 units/acre compared to the Dominium project which has a density of 30 units/acre. Schmitt said this site is a low area that is prone to flooding and that underground parking may not be a good plan for this project. Patrick stated they could revise their plan and eliminate the underground parking which would reduce the expense quite a bit. He told members that since this is an initial discussion to gauge interest in this type of project they would be willing to make whatever changes the EDA/Council see fit. Buesgens said she is open to giving some assistance through TIF, but is opposed to giving away the land, and paying for other expenses as requested. She is ok with the density and thinks it would help support local businesses. However, she also is concerned that they wouldn’t own or manage the building once it is constructed. Patrick assured her they work with reputable companies to take over management of the buildings. He generally works with five companies and they go through an extensive interview process to ensure it is being passed on to a company that will manage and maintain it. Murzyn stated he is also opposed to giving the land away. If they want to build here, they will have to purchase the land. Hogeboom told members that as part of the Comp Plan process staff ordered an appraisal of this site for potential future development. Thor Companies contacted staff about the same time to view potential sites available in our City that could work for this type of project. Hogeboom said the appraisal came in higher than he anticipated, but it is a starting point for the EDA/Council to think about what they’d like to see this property developed as. Would they like to see residential development there? Schmitt said she would like to see this site used as a Farmer’s Market and handicap accessible park. nd Szurek said she doesn’t think the intersection of 42 and Central could handle the additional traffic that would be generated from this high density construction. She said that intersection is extremely busy and hard to cross now and that the additional traffic would have a negative impact on the surrounding residential neighborhood. She also felt the building is too institutional looking in its design. Buesgens is open to residential and feels it is valued too high for use as a Park. Herringer appreciates Thor Development Company taking an interest in our community and is willing to look at another proposal. He feels there are too many things to work out with this one. Schmitt suggested they look at putting in an underground storm water system which would open up more area for surface parking and other amenities. She also suggested they contact the Mississippi Watershed who would help them design a plan, and explained they are a potential funding source that they could tap to help them meet their revenue needs. Schmitt said she would like to see some of the other projects they have constructed. He will provide a list to members so they may arrange tours of them. 20181105_EDA_Minutes EDA Minutes Page 5 Nov 5, 2018 Hogeboom said from an Urban Planning standpoint we have single family homes, double bungalows, and the new Grand Central Apartment buildings, but we do not have newer small apartment buildings. And we do not have buildings that offer studio apartments. This is a housing option he thinks will be popular. Buesgens agreed that that is a concept she would like to see kept in any future plans that may be considered. Jackson Cruikshank asked what density the commission would find preferable. Buesgens was ok with 79 units. Szurek said it was too many units for this site. Herringer said more surface parking would be needed and because of space constraints, the density may have to be reduced. Members told them to see if they can re-do their plan by possibly reducing the density, and making some changes to the exterior appearance. If they can get some funding help from other sources such as the Mississippi Watershed District to make their numbers work, then the Commission would be willing to take another look at a proposal. OTHER BUSINESS Hogeboom told members that staff, and the Mayor held a conference call with a HyVee official to get the latest rd update on their plans for remodeling the building at 43 and Central for a new store. HyVee stated it is still their intent to begin construction in 2019. Staff reminded them that to continue to receive the TIF financing they must th start construction by 1/31/2019 on the main store. The C-store at 47 and Central was re-approved in July and they were told they must also start construction on that site by July or they will have to go through the process once again. Corporate had a few setbacks and schedule changes this year with other stores, but overall, staff felt reassured that they are still looking to move forward with both projects in Columbia Heights. They do own the parcels so they do have quite a bit invested in them. The next meeting is scheduled for December 3, 2018. Motion by Buesgens, seconded by Murzyn, to adjourn the meeting at 7:02 pm. Respectfully submitted, Shelley Hanson Secretary 20181105_EDA_Minutes