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HomeMy WebLinkAbout20191007_EDA_minutesECONOMIC DEVELOPMENT AUTHORITY (EDA) MINUTES OF THE MEETING OF OCTOBER 7, 2019 The meeting was called to order at 6:00 pm by President Szurek. Members Present: Murzyn, Novitsky, Buesgens, Schmitt, Herringer, and Szurek. Williams arrived at 6:07 pm Staff Present: Kelli Bourgeois (City Manager), Aaron Chirpich (Community Development Director), Mitch Forney (Community Development Coordinator), and Shelley Hanson (Secretary). PLEDGE OF ALLEGIANCE- RECITED CONSENT AGENDA 1. Approve the minutes from special meeting of September 23, 2019. Motion by Buesgens, seconded by Schmitt, to approve the minutes of September 23, 2019 as presented. All ayes. MOTION PASSED. BUSINESS ITEMS 5. Acceptance and Authorization of a Service Agreement for Security Consultant Services Forney explained that The Columbia Heights Economic Development Authority (the “EDA”) collaborated with the Columbia Heights Police Department (the “CHPD”) to offer a Façade Improvement Grant Program (the “Grant Program”) for businesses and commercial property owners along Central Avenue NE, 40th Ave NE, and 39th Ave. The intent of the Grant Program was to encourage businesses and commercial property owners to revitalize, rehabilitate, and restore their exterior store fronts, but also for the CHPD to provide monitored surveillance with the installation of security cameras at selected grantee locations. The CHPD reviewed all of the Grant Program applications submitted, and determined that of the eleven (11) façade improvement applicants, four (4) applicants were eligible for the installation of an exterior surveillance system. The selected applicants are identified in Table 1.1. Table 1.1 – Selected Grantees   Business Name Business Address  Heights Theatre 3951 Central Avenue NE, Minnesota 55421  El Tequila 4005 Central Avenue NE, Minnesota 55421  Your Exchange 4639 Central Avenue NE, Minnesota 55421  Big Stop/Castle Distributing 334 40th Avenue NE, Minnesota 55421   Staff prepared a RFP requesting security consultant services with respect to the design and installation of exterior surveillance systems at the selected applicant locations. It was requested that the proposals be submitted on a cost not to exceed basis of $25,000. The RFP was sent to three (3) security consultant professionals and specialists. Staff received one (1) proposal from Pro-Tech Design at the price of $23,609.26. After consulting the City attorney staff has concluded that only receiving one bid does not hinder the process moving forward. Forney noted this is not the same company that was used last year, but their equipment is compatible with the current equipment and system. EDA Minutes Page 2 Oct 7, 2019 After review, staff and the CHPD have concluded that the proposal submitted by Pro-Tech Design in the amount of $23,609.26 is comparable to the bid accepted last year and includes all aspects CHPD are looking for. The Police Dept. finds each of the above mentioned locations excellent sites for the installation of cameras. Staff recommends accepting and authorizing the Service Agreement by and between Pro-Tech Design for security consultant services in connection with the Grant Program. Questions/comments from members: There were no questions from the members. Motion by Buesgens, seconded by Novitsky, to accept the proposal submitted by Pro-Tech Design in the amount of $23,609.26, plus reimbursements, for security consultant services, and authorize Kelli Bourgeois, as the Executive Director, to execute and deliver a Service Agreement for the same. All ayes. MOTION PASSED. 6. 3989 Central Ave Cell Antennae Lease Termination – Resolution 2019-21 Chirpich explained that we inherited the existing lease for the rooftop antennas when we purchased the building at 3989 Central Avenue NE. Staff has been working with Crown Castle who is basically a broker for other companies such as Sprint and ATT who have equipment there. He told members that Crown was looking to move the antennas prior to us purchasing the building, and that staff has been working with them to find an alternative location. Due to the fact that Alatus wants to move forward with the purchase by the end of the year and begin demolition of the building shortly thereafter, staff has been reviewing options with legal counsel. Chirpich said that the EDA can file a formal notice to terminate the lease with a 30 day notice, go through the eminent domain process, or take other legal action. There was a discussion regarding the terms of the existing lease and the potential liability for the City. Chirpich told members it is recommended that the Rooftop Lease agreement for the placement of antennas be terminated, giving Crown Castle the necessary notice, so the redevelopment can commence. In the meantime, staff will continue to work with Crown Castle to find a viable site to relocate the antennas to and will negotiate terms acceptable to both parties. Therefore, staff is requesting the EDA approve the following Resolution authorizing the termination of the lease agreement. Motion by Buesgens, seconded by Novitsky, to waive the reading of Resolution 2019-21, there being ample copies available to the public. All ayes. MOTION PASSED. Motion by Buesgens, seconded by Novitsky, to adopt Resolution 2019-21, a Resolution of the Economic Development Authority of Columbia Heights, Minnesota, authorizing action to terminate certain leasehold interest(s) of 3989 Central Avenue NE, Columbia Heights, MN. All Ayes. MOTION PASSED. EDA Minutes Page 3 Oct 7, 2019 RESOLUTION 2019-21 A RESOLUTION OF THE ECONOMIC DEVELOPMENT AUTHORITY OF COLUMBIA HEIGHTS, MINNESOTA, AUTHORIZING ACTION TO TERMINATE CERTAIN LEASEHOLD INTEREST(S) OF 3989 CENTRAL AVENUE NORTHEAST, COLUMBIA HEIGHTS, MINNESOTA BE IT RESOLVED BY the Board of Commissioners (“Board”) of the Columbia Heights Economic Development Authority (the “EDA”) as follows: WHEREAS, on or about July 31, 2019, the EDA acquired real property located at 3989 Central Avenue Northeast, Columbia Heights, Minnesota (the “Property”); WHEREAS, through its acquisition of the Property, the EDA succeeded as the lessor in a Rooftop Lease and Partial Assignment Agreement dated June 14, 2011 (“Rooftop Lease”), for the long-term lease of premises on the Property for wireless communications equipment; WHEREAS, on or about August 5, 2019, the EDA entered into a preliminary development agreement with Alatus LLC to redevelop the Property and the adjacent parking ramp owned by the City of Columbia Heights (the “City”); WHEREAS, the EDA and Alatus desire to commence the redevelopment project by the spring of 2020; WHEREAS, the leasehold interests under the Rooftop Lease will need to be terminated before the aforementioned redevelopment project may commence; WHEREAS, the leasehold interests under the Rooftop Lease may be terminated through formal lease termination, eminent domain, or other legal action. NOW, THEREFORE BE IT RESOLVED, that the EDA hereby approves the termination of the leasehold interest(s) under the Rooftop Lease and authorizes Columbia Heights Community Development to take such action as necessary and appropriate to carry out the foregoing resolution. ORDER OF ECONOMIC DEVELOPMENT AUTHORITY OF COLUMBIA HEIGHTS Passed this 7th day of October, 2019 Offered by: Buesgens Seconded by: Novitsky Roll Call: All ayes __________________________________ Marlaine Szurek, President Attest: __________________________________ Secretary EDA Minutes Page 4 Oct 7, 2019 OTHER BUSINESS Chirpich told members that staff is working on the design of the City Hall space. Alatus wants the detailed layout of the space ASAP as they are working on the overall building design and the columns that support the upper floors need to be decided on now. The number and placement of the columns are crucial so that change orders are not needed as this would increase the cost for the City. Chirpich said he will bring a contract before the City Council for Leo A. Daly to help staff with the design and layout. Alatus is anxious to move forward. They have investors lined up and the builder is working on the overall plans. The City is currently holding up their team from finalizing their plans for submittal to the Planning Commission, City Council, and for Building Permit approvals. There was a discussion to clarify the actual price for construction of the space, the furniture, fixtures, equipment, and technology to locate City Hall at this site. Chirpich reviewed the spreadsheet indicating the estimated costs that was previously provided to members. He is confident we have partnered with the right developer to make this a successful venture. Bourgeois reminded members that the tenant improvements for our space will be bid out by us, so we will have control of the decisions and costs regarding these items. The next regular meeting is scheduled for Monday, November 4, 2019. Motion by Murzyn, seconded by Buesgens, to adjourn the meeting at 6:45 pm. All ayes. Respectfully submitted, Shelley Hanson Secretary