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HomeMy WebLinkAbout02-03-2020 EDA Packet ECONOMIC DEVELOPMENT AUTHORITY AGENDA February 3, 2020 5:30 PM City Hall Conference Room 1 590 40th Avenue NE Columbia Heights, MN 55421 The next regularly scheduled EDA meeting will be on March 2, 2020. 1. Call to Order 2. Roll Call 3. Pledge of Allegiance 4. Election of Officers Meeting to resume under the leadership of the newly elected EDA President CONSENT AGENDA 5. Approve regular meeting minutes of November 4, 2019 6. Approve Financial Reports and Payment of Bills for October, November, and December 2019 – Resolution 2020-01 Motion: Move to approve the Consent Agenda as presented. BUSINESS ITEMS 7. Designation of Official Depositories for the EDA – Resolution 2020-02 Motion: Move to waive the reading of Resolution 2020-02, there being ample copies available to the public. Motion: Move to adopt Resolution 2020-02, a resolution designating official depositories for the Columbia Heights Economic Development Authority. OTHER BUSINESS 8. Project Updates 9. Adjourn AGENDA SECTION ELECTION OF OFFICERS ITEM NO. 4 MEETING DATE FEBRUARY 3, 2020 CITY OF COLUMBIA HEIGHTS – ECONOMIC DEVELOPMENT AUTHORITY 2020 EDA Election of Officers ITEM: Election of Economic Development Authority Officers DEPARTMENT: Community Development CITY MANAGER’S APPROVAL: BY/DATE: Aaron Chirpich, January 28, 2020 BY/DATE: BACKGROUND: Pursuant to the bylaws of the Columbia Heights Economic Development Authority (the “EDA”), officers are required to be elected annually. The 2019 EDA officers that served are as follows: • President – Marlaine Szurek • Vice President – John Murzyn Jr. • Treasurer – Connie Buesgens In order for an EDA Commissioner to be considered for an officer position, an EDA Commissioner must be nominated by another commissioner, or by him or herself. The bylaws require that the Executive Director or his/her designee conduct the following nomination process. 1. President a. Please provide all nominations for President of the EDA. b. Vote individually for each nominated member. c. The member with the most votes is declared the President of the EDA by the Executive Director. 2. Vice President a. Please provide all nominations for Vice President of the EDA. b. Vote individually for each nominated member. c. The member with the most votes is declared the Vice President of the EDA by the Executive Director. 3. Treasurer a. Please provide all nominations for Treasurer of the EDA. b. Vote individually for each nominated member. c. The member with the most votes is declared the Treasurer of the EDA by the Executive Director. Furthermore, it should be noted that the EDA bylaws require the City Manager (Kelli Bourgeois) to serve as the “Executive Director”, the Community Development Director to serve as “Deputy Director” and the Finance Director to serve as the “Assistant Treasurer”. The bylaws also specify that the position of “Secretary” be appointed by the EDA. Thus, it is recommended that the community development department’s Administrative Assistant, Christy Bennett serve as the Secretary. Staff recommends approval of the following motions: City of Columbia Heights - EDA Letter Page 2 Motion: Move to elect ____________________ as President of the Economic Development Authority. Motion: Move to elect ____________________ as Vice President of the Economic Development Authority. Motion: Move to elect ____________________ as Treasurer of the Economic Development Authority. Motion: Move to appoint Christy Bennett as the Secretary of the Economic Development Authority. Following ratification of the above motions, the newly elected President of the EDA will now preside over the remainder of the meeting. ECONOMIC DEVELOPMENT AUTHORITY (EDA) MINUTES OF THE MEETING OF NOVEMBER 4, 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 6:23 pm after the Traffic Commission meeting. 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 the meeting of October 7, 2019. 2. Approve Financial Report and Payment of Bills for September 2019-Resolution 2019-22 Herringer inquired about the payment to LHB Inc. Chirpich told him it was payment to the company that did the blight assessment for TIF eligibility on the NE Business Center prior to our purchase. Herringer then asked about the payment to Xcel Energy in the amount of $1,030.04 Chirpich told the members that it is the electric bill for the NE Business Center for operation of the antennas. He said staff will check the lease agreement to see if Crown Castle is responsible for reimbursing us for this cost. Motion by Buesgens, seconded by Schmitt, to approve the consent agenda as presented. All ayes. MOTION PASSED. RESOLUTION NO. 2019-22 A RESOLUTION OF THE ECONOMIC DEVELOPMENT AUTHORITY OF COLUMBIA HEIGHTS, MINNESOTA, APPROVING THE FINANCIAL STATEMENTS FOR THE MONTH OF SEPTEMBER 2019, AND THE PAYMENT OF THE BILLS FOR THE MONTH OF SEPTEMBER 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 January 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 EDA Minutes Page 2 November 4, 2019 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 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 4th day of November, 2019 Offered by: Buesgens Seconded by: Schmitt Roll Call: All ayes President Attest: Assistant Secretary BUSINESS ITEMS 5. Approval of Demolition and Regrading Contract for 4827 University Avenue Forney explained that the EDA needs to approve the bid amount and contract for the demolition and regrading of 4827 University Ave NE. He reminded members that in 2018 the EDA purchased the property located at 4827 University Ave NE through the commercial revitalization program. It was the ultimate goal of the EDA to demolish the single-family residential house on the property, and prepare the site for redevelopment. With this intent in mind, Community Development staff reached out to the new fire chief to see if the fire department would like to utilize the home for a training burn, and the chief was excited to pursue the opportunity. On October 27th the fire department burned down the single-family structure located at 4827 University Ave. Now that the home has been partially burned down, the next step in the process is to demolish and regrade the lot. Included on the lot are certain site improvements such as retaining walls, a standalone garage, and remnants of the burned structure. Community Development staff began the bidding process for the demolition of site improvements EDA Minutes Page 3 November 4, 2019 and the regrading of the lot. In response to the request for quotes, the EDA received 1 bid. Through speaking with the other potential demolition companies many did not have the ability to take on another project for the 2019 construction season. Forney told members the quote submitted by JACON LLC, for $18,875 meets all of the project requirements outlined in the bid specifications. JACON LLC shall furnish the services and necessary equipment to complete all requirements specified in the scope of work. All work will be performed in accordance with OSHA regulations and any applicable Federal and State regulations. Therefore, Staff recommends awarding the bid for demolition and regrading of 4827 University Ave NE to JACON LLC. Questions/comments from members: Murzyn told staff to make sure the company will use clean fill and that it will be compacted well. Forney and Chirpich assured members that those issues were written into the bid specs and that it will be 95% compacted. Szurek asked if the lot would remain empty for now. Forney said that it will probably be combined with the lot next door within the next few months which will make it more attractive for redevelopment. Szurek asked again about only getting one bid. Forney stated that JACON was the only company that felt they could get it done by the end of December. Herringer asked what the property is zoned. Forney told him it is zoned General Business, so it should be developed as a business use. Schmitt asked if the Comp Plan indicated a specific use for this site. Chirpich stated he didn’t think the Plan guided it as anything specific. Motion by Schmitt, seconded by Novitsky, to accept the proposal from JACON LLC, in the amount of $18,875, for the demolition of all site improvements and the regrading of the lot located at 4827 University Ave NE; and furthermore, to authorize the President and Executive Director to enter into an agreement for the same. All ayes. MOTION PASSED. OTHER BUSINESS Update on the Façade Improvement Grant Program Mitch told members that several properties along 40th Avenue have made their improvements under the Grant Program. Big Stop Market has their awnings up, Hairatage has installed awnings and concrete planters, Embroidery and More has re-stuccoed and painted their building, and Miller’s Bar & Grill is getting bids for their awnings. On Central Avenue, El Tequila is getting new windows and Heights Theater will have brick work done in the spring. Forney said that staff is in the process of executing the agreements with the businesses who will be getting cameras for security improvements. He said three of the four have been executed. He is waiting to meet with Your Exchange as they have some questions. EDA Minutes Page 4 November 4, 2019 Szurek asked if there is any way the City can control window signage, especially in the strip malls as there are so many obvious violations. Chirpich told members that the City Planner has been sending those businesses letters informing them they are violating the sign ordinance. Several have called for clarification about what is allowed. She has given the businesses a timeframe in which to comply. Buesgens asked what happens if they don’t comply. Chirpich said the businesses could be issued citations, but he is unsure what the fine is. NE Business Center Update Chirpich told members that Crown Castle was given a 30 day Notice of the Termination of Lease after the last meeting. The Notice was sent Certified Mail, regular mail, and emailed to the parties involved. The 30 day notice is up November 13th. No action will be taken until after that date. Staff has been working with Crown Castle on two potential relocation sites. The City has also offered a couple of temporary sites to them, if necessary, to ensure contiguous service. Chirpich said break-ins have been a big problem. Since we purchased the building there have been three break ins which have resulted in boarding up several windows. Some of the damage is just vandalism using the bricks from the deteriorating plaza walls and others are because they steal equipment associated with the antennas. He said Crown Castle does have surveillance cameras on site which helped the Police determine the person who committed the last theft. City Hall Update Staff has been working diligently with Leo Daly to finalize the plans for the new City Hall space. We hope to pass off the design to Alatus later this week, which will allow their Architect and Engineers do the proper column placement. Initially, we hoped that the closing could take place before the end of the year, but it will most likely occur in early 2020 instead. Szurek asked when plans would come to the Planning Commission. Chirpich said it probably won’t be until the January meeting. Williams asked whether Chirpich has had contact with HyVee. Chirpich said he put Alatus and HyVee in contact with each other and they are discussing the possibility of joining efforts to redevelop the site at 43rd And Central. One option they are looking at is a project that would include housing and a smaller grocery store. He told members that Alatus is also interested in possibly redeveloping the strip mall at 40th and Central Ave. Alatus is excited about potential projects along Central Avenue because the properties are located in the “Opportunity Zone”. Schmitt thought projects in the “Opportunity Zone” need to be decided by April. Chirpich said Bob Lutz and his team have a good deal of knowledge regarding this and are keeping track of whether the timelines may be extended, which could help accomplish his vision for the area. The next regular meeting is scheduled for Monday, December 2, 2019. Motion by Murzyn, seconded by Schmitt, to adjourn the meeting at 6:40 pm. All ayes. Respectfully submitted, Shelley Hanson Secretary Resolution 2020-02 RESOLUTION NO. 2020-01 A RESOLUTION OF THE ECONOMIC DEVELOPMENT AUTHORITY OF COLUMBIA HEIGHTS, MINNESOTA, APPROVING THE FINANCIAL STATEMENTS FOR THE MONTHS OF OCTOBER, NOVEMBER, AND DECEMBER 2019, AND THE PAYMENT OF THE BILLS FOR THE MONTHS OF OCTOBER, NOVEMBER, AND DECEMBER 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 statements for the months of September, October, and November 2019 have 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 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 3rd day of February, 2020 Offered by: Seconded by: Roll Call: Vice President Attest: Assistant Secretary AGENDA SECTION BUSINESS ITEMS ITEM NO. 7 MEETING DATE FEBRUARY 3, 2020 CITY OF COLUMBIA HEIGHTS – ECONOMIC DEVELOPMENT AUTHORITY ITEM: ADOPT RESOLUTION 2020-02 DESIGNATING OFFICIAL DEPOSITORIES FOR THE EDA DEPARTMENT: Community Development EXECUTIVE DIRECTOR’S APPROVAL: BY/DATE: Aaron Chirpich, January 28, 2020 BY/DATE: BACKGROUND: The EDA is required to designate by resolution the depositories used for its funds and investments. The attached resolution follows the general format of resolutions passed in previous years by the EDA and City. Most general banking transactions of the EDA and City are conducted through Northeast Bank. Accounts are also maintained at Wells Fargo Bank of Minnesota, N.A. and U.S. Bank for certain specialized services such as payroll and debt service payments. The only material difference between this proposed resolution and the resolution adopted annually by the City Council is that the EDA resolution allows for the EDA’s funds to be held in accounts under name of the City. This has always been the EDA’s practice. Since the creation of the EDA in 1996, it has never had a separate checking account under its own name. All EDA expenditures since its inception have been made using checks drawn in the City’s name on behalf of the EDA. Under this resolution, investment firms used for the pooled investments of the EDA and City must have an office in the State of Minnesota, and all investments must comply with authorized investments as set forth in Minnesota statutes. STAFF RECOMMENDATION: Staff recommends maintaining these three banking relationships, as they meet the EDA’s current needs, and provide capacity for addressing the EDA’s evolving needs for electronic banking services. RECOMMENDED MOTION(S): Motion: Move to waive the reading of Resolution 2020-02, there being ample copies available to the public. Motion: Move to adopt Resolution 2020-02, a resolution designating official depositories for the Columbia Heights Economic Development Authority. ATTACHMENTS: Resolution 2020-02 Resolution 2020-02 RESOLUTION NO. 2020-02 A RESOLUTION OF THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY, DESIGNATING OFFICIAL DEPOSITORIES. Now, therefore, in accordance with the bylaws and regulations of the Columbia Heights Economic Development Authority (the Authority), the Board of Commissioners of the Authority makes the following: ORDER OF BOARD IT IS HEREBY RESOLVED, that Northeast Bank, Wells Fargo Bank of Minnesota, N.A., and U.S. Bank are hereby designated as depositories for the Authority’s funds. IT IS FURTHER RESOLVED, that the funds of the Authority can be held in accounts at these depositories under the name and federal identification number of the City of Columbia Heights, Minnesota (the City), together with the funds of the City, provided that separate fund accounting records are maintained for the respective Authority and City shares of such accounts in a manner consistent with generally accepted accounting and auditing standards. IT IS FURTHER RESOLVED, that the responsibility for countersigning orders and checks drawn against funds of the Authority, assigned in the Authority’s bylaws to the Authority President, is hereby delegated to the City Mayor. IT IS FURTHER RESOLVED, that checks, drafts, or other withdrawal orders issued against the funds of the Authority on deposit with these depositories under the City’s name shall be signed by the following: City Mayor City Manager City Finance Director and that said banks are hereby fully authorized to pay and charge said accounts for any such checks, drafts, or other withdrawal orders issued by the City on behalf of the Authority. IT IS FURTHER RESOLVED, that Northeast Bank, Wells Fargo Bank of Minnesota, N.A., and U.S. Bank are hereby requested, authorized and directed to honor checks, drafts or other orders for the payment of money drawn in the City’s name on behalf of the Authority, including those drawn to the individual order of any person or persons whose name or names appear thereon as signer or signers thereof, when bearing or purporting to bear the facsimile signatures of the following: City Mayor City Manager City Finance Director and that Northeast Bank, Wells Fargo Bank of Minnesota, N.A., and U.S. Bank shall be entitled to honor and to charge the Authority, or the City on behalf of the Authority, for all such checks, drafts or other orders, regardless of by whom or by what means the facsimile signature or signatures thereon may have been affixed thereto, if such facsimile signature or signatures resemble the facsimile specimens duly certified to or filed with the Banks by the City Finance Director or other officer of the Authority or City. City of Columbia Heights – EDA Resolution Page 2 IT IS FURTHER RESOLVED, that the City Finance Director or their designee shall be authorized to make electronic funds transfers in lieu of issuing paper checks, subject to the controls required by Minnesota Statutes and by the City of Columbia Heights’ financial policies. IT IS FURTHER RESOLVED, that all transactions, if any, relating to deposits, withdrawals, re-discounts and borrowings by or on behalf of the Authority with said depositories, made directly by the Authority or by the City on the behalf of the Authority, prior to the adoption of this resolution be, and the same hereby are, in all things ratified, approved and confirmed. IT IS FURTHER RESOLVED, that any bank designated above as a depository, may be used as a depository for investment purposes, so long as the investments comply with authorized investments as set forth in Minnesota Statutes. IT IS FURTHER RESOLVED, that any brokerage firm with offices in the State of Minnesota may be used as a depository for investment purposes so long as the investments comply with the authorized investments as set forth in Minnesota Statutes. IT IS FURTHER RESOLVED, that the funds of the Authority can be held in accounts at such brokerage firms under the name and federal identification number of the City, together with the funds of the City, provided that separate fund accounting records are maintained for the respective Authority and City shares of such accounts in a manner consistent with generally accepted accounting and auditing standards. BE IT FURTHER RESOLVED, that any and all resolutions heretofore adopted by the Board of Commissioners of the Authority with regard to depositories or brokerage firms are superseded by this resolution. ORDER OF ECONOMIC DEVELOPMENT AUTHORITY Passed this _________ day of ______________________, 2020 Offered by: Seconded by: Roll Call: President Attest: Assistant Secretary