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ECONOMIC DEVELOPMENT AUTHORITY (EDA)
MINUTES OF THE SPECIAL MEETING OF
JUNE 24, 2019
The meeting was called to order at 6:00 pm by President Szurek.
Members Present: Murzyn, Schmitt, Buesgens, Novitsky, Williams, Herringer, and Szurek.
Staff Present: Kelli Bourgeois (City Manager), Aaron Chirpich (Community Development
Director), Mitch Forney (Community Development Coordinator), Elizabeth
Hammond (City Planner), and Shelley Hanson (Administrative Assistant-
Community Development).
PLEDGE OF ALLEGIANCE-
RECITED
CONSENT AGENDA
1. Approve Financial Report & Payment of Bills for May 2019-Resolution 2019-08
Question from Members:
There were no questions.
Motion by Williams, seconded by Schmitt, to approve the consent agenda as presented. All ayes.
MOTION PASSED.
RESOLUTION NO. 2019-08
A RESOLUTION OF THE ECONOMIC DEVELOPMENT AUTHORITY OF COLUMBIA HEIGHTS,
MINNESOTA, APPROVING THE FINANCIAL STATEMENTS FOR THE MONTH OF MAY 2019, AND
THE PAYMENT OF THE BILLS FOR THE MONTH OF MAY 2019.
WHEREAS,
the Columbia Heights Economic Development Authority (the “EDA”) is required by Minnesota
Statutes Section 469.096, Subd. 9, to prepare a detailed financial statement which shows all receipts and
disbursements, their nature, the money on hand, the purposes to which the money on hand is to be applied, the
EDA's credits and assets and its outstanding liabilities; and
WHEREAS,
said Statute also requires the EDA to examine the statement and treasurer's vouchers or bills and if
correct, to approve them by resolution and enter the resolution in its records; and
WHEREAS,
the financial statement for the month of May 2019 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
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June 24, 2019
WHEREAS,
financials statements are held by the City’s Finance Department in a method outlined by the State of
Minnesota’s Records Retention Schedule,
NOW, THEREFORE BE IT RESOLVED
by the Board of Commissioners of the Columbia Heights Economic
Development Authority that it has examined the referenced financial statements including the check history, and
they are found to be correct, as to form and content; and
BE IT FURTHER RESOLVED
the financial statements are acknowledged and received and the check history as
presented in writing is approved for payment out of proper funds; and
BE IT FURTHER RESOLVED
this resolution is made a part of the permanent records of the Columbia Heights
Economic Development Authority.
ORDER OF ECONOMIC DEVELOPMENT AUTHORITY
Passed this 24th day of June, 2019
Offered by: Williams
Seconded by: Schmitt
Roll Call: All ayes
President
Attest:
Assistant Secretary
BUSINESS ITEMS
1. Discuss Potential Development of the Remnant Parcel at Jefferson and Huset Parkway
Chirpich told members that staff recently met with a team interested in developing the vacant Remnant Parcel
located just south of Huset Park at the intersection of Huset Pkwy and Jefferson Street. The developer would like to
build 75 units of age restricted housing on the site that would include senior apartments, assisted living units and
memory care units. The property is currently zoned MXU, but staff thinks re-zoning the property to Planned Unit
Development (PUD) for a high density residential project makes sense to comply with the Development Agreement
currently in place and to comply with the 2040 Comp Plan which also re-guides this parcel to high density use.
This property has had multiple owners since 2004. The parcel was returned to BNC Bank in 2011 during the
housing crisis. Then Dominium acquired the site in 2015 as part of the larger land acquisition to build the Legends
Senior Housing Facility. At the time Dominium took ownership a new Development Agreement was re-negotiated
to memorialize new development plans for the site. The current agreement states that the Remnant parcel will be
improved with a project that contains approximately 80 units of senior rental housing by December 31, 2022.
Dominium is currently in negotiations for the sale of the site to a team that plans to deliver on this stated contractual
objective.
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June 24, 2019
Chirpich then introduced the developer who answered questions. Jerry and Wade Tollefson from Tollberg Homes
are working with Joel Larson from Suite Living, in this joint venture. Mr. Larson has several facilities in other
communities that are up and running, and several that are under construction. He is also on the Elderly Waiver Sub
Committee that works with the State when transferring elderly persons to the EW program when they run out of
money to pay for assisted living out of pocket. Larson explained to members that they plan on constructing a 3 story
building with underground parking. The front of the building will be off McKenna St. The exterior will be brick,
stone, and a hardy board siding that will blend in with the existing townhouses in the area. The proposed plan at this
ndrd
time is to have 50 senior apartments on 2 and 3 floor, along with 12 units of Assisted Living Units and 15
Memory Care units on first floor. The senior apartments will consist of mostly one BR units and approximately 8
two BR units. The Assisted Living units will be one BR and studio units. And the Memory Care units will be studio
units. They plan to have 50 parking stalls underground and approximately 35 stalls in the parking lot for visitors and
staff. This project has an estimated valuation of 15-17 million dollars.
Larson said if they get positive feedback from the members about the project, they plan on going through the Site
Plan process this fall and will break ground in the spring of 2020. It will take approximately one year to construct.
Schmitt asked about the Memory Care units. Larson said the units are usually studio apartments located in a locked
wing of the building. They have a large common area for activities and dining for those residents, and encourage
them to have social interaction with each other as much as possible. There also will be a patio area with fencing and
a locked gate so the residents can enjoy outdoor time when weather permits.
Buesgens asked if the building would provide other services. Larson said there would be an activities director, an
area for movies, and a hair salon on site. Buesgens asked if they would be installing solar panels on the building.
Larson said they hadn’t considered that at this point. She asked if they would be asking for City Financial assistance
to move ahead with this project. Larson said they would not be seeking assistance and that the State no longer
requires this. Buesgens asked him if children would be allowed to live in this building with grandparents. Larson
said children are certainly allowed to visit, but would not be allowed to reside in the building on a regular basis.
Murzyn asked how often rents are raised. Larson said it depends on the level of services that are needed. If the need
for services stays the same, rents are usually raised on an annual basis.
Schmitt asked if we can get the occupancy rates within the City for the existing facilities. She’d like to know the
saturation rate. Larson said they will do a market study as part of the Site Plan process to ensure the market will
sustain this type of facility. The makeup of one BR units versus studio units could change according to the results of
the study. Schmitt asked if there was enough green space. Hammond stated that is something that will be reviewed
during the Site Plan approval process. Schmitt commented that having a park across the street would also be
accessible for most of the residents.
Williams thought this proposal was far superior to the project brought to the EDA a couple years ago. Szurek agreed.
The members were in favor of this project moving forward, and look forward to seeing additional information at
upcoming meetings.
th
The EDA adjourned to an Executive Session at 6:37 pm to discuss the possible purchase of 230 40 Avenue, pursuant to
Minnesota Statutes 13D.05
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June 24, 2019
The EDA re-convened the regular meeting at 7:14 pm.
The meeting was adjourned at 7:14 pm. All ayes.
Respectfully submitted,
Shelley Hanson
Secretary