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HomeMy WebLinkAbout02-03-2020 EDA Minutes ECONOMIC DEVELOPMENT AUTHORITY (EDA) MINUTES OF THE MEETING OF FEBRUARY 3, 2020 The meeting was called to order at 5:30 pm by Member Buesgens. Members Present: Novitsky, Buesgens, Schmitt, Herringer, and Williams. Members Absent: Szurek and Murzyn Staff Present: Aaron Chirpich (Community Development Director), Shelley Hanson (Secretary), and Christy Bennett (new staff who will be replacing Hanson). PLEDGE OF ALLEGIANCE- RECITED ELECTION OF OFFICERS- Secretary Hanson asked for nominations for the officer positions. Buesgens nominated herself for President. Schmitt nominated herself for President. Herringer nominated Szurek for President. There were no other nominations. Motion by Novitsky to elect Buesgens President of the Economic Development Authority. Ayes- Buesgens Nays-Novitsky, Schmitt, Herringer, and Williams MOTION FAILED Motion by Novitsky to elect Schmitt President of the Economic Development Authority. Ayes-Schmitt Nays-Novitsky, Buesgens, Herringer, and Williams MOTION FAILED Motion by Novitsky to elect Szurek President of the Economic Development Authority. All ayes. MOTION PASSED. Novitsky nominated Schmitt for Vice-President. There were no other nominations. Motion by Buesgens to elect Schmitt Vice President of the Economic Development Authority. All ayes. MOTION PASSED. Herringer nominated Buesgens for Treasurer. There were no other nominations. Motion by Herringer to elect Buesgens Treasurer of the Economic Development Authority. All ayes. MOTION PASSED. Motion by Buesgens, seconded by Novitsky, to appoint Christy Bennett as the Secretary of the Economic Development authority. All ayes. MOTION PASSED. 2020 Officers are as follows: Szurek is President Schmitt is Vice President Buesgens is Treasurer Hanson also noted that the EDA Bylaws state the City Manager serves as the Executive Director, The Community Development Director serves as the Deputy Director, and the Finance Director serves as the Assistant Treasurer of the Economic Development Authority. EDA Minutes Page 2 February 3, 2020 CONSENT AGENDA 1. Approve the minutes from the meeting of November 4, 2019. Motion by Novitsky, seconded by Herringer to approve the minutes from the November 4, 2019, meeting as presented. All ayes. MOTION PASSED. 2. Approve Financial Report and Payment of Bills for October-December-Resolution 2020-01 Herringer questioned the payments to DuAll. Chirpich stated there have been numerous payments to them over the last year for boarding up the NE Business Center due to broken windows and to secure it due to break-ins to the building itself. He asked about the payment to Gabrian Actuarial LLC for $170. Chirpich said this is our department’s share for the consultant that calculates the City’s overall encumbrance for employment benefits. Herringer then asked what the payments to First Fork and Mike Gondek were for. Chirpich told members that the payments were reimbursements for the Façade Improvement Grant Program. Herringer noted that the City is still getting billed for electric at the Business Center. Chirpich stated the bills are primarily for the ramp and a small amount for the cell towers. It is hard to separate out the fees from each other. Chirpich said it is part of the overall negotiations with the Cell Antenna companies, but is ultimately the City’s responsibility while we work through the title transfer process. Buesgens asked about the $84,393 transfer from the Capital Improvement Fund regarding 3930 University Ave. Chirpich will check on this further and get back to her. Buesgens then asked about funds noted in the 228 Fund-Downtown Parking. Chirpich explained the City still receives revenue from the Cell Antenna leases at Parkview Villa. Those funds have been used to cover our share of the expenses for the Parking Ramp behind the Fairview Clinic. Motion by Novitsky, seconded by Schmitt, to approve the consent agenda as presented. All ayes. MOTION PASSED. 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 EDA Minutes Page 3 February 3, 2020 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 months of October, November, and December 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 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: Novitsky Seconded by: Schmitt Roll Call: All ayes Vice President Attest: Recording Secretary BUSINESS ITEMS 1. Designation of Official Depositories for the EDA – Resolution 2020-02 Chirpich stated that 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. EDA Minutes Page 4 February 3, 2020 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 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. Questions/comments from members: There weren’t any questions. Motion by Novitsky, seconded by Schmitt, to waive the reading of Resolution 2020-02, there being ample copies available to the public. All ayes. MOTION PASSED. Motion by Novitsky, seconded by Schmitt, to adopt Resolution 2020-02, a resolution designating official depositories for the Columbia Heights Economic Development Authority. All ayes. MOTION PASSED. 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. EDA Minutes Page 5 February 3, 2020 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. 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. EDA Minutes Page 6 Feb. 3, 2020 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 rd Passed this 3 day of February, 2020 Offered by: Novitsky Seconded by: Schmitt Roll Call: Vice President Attest: Recording Secretary OTHER BUSINESS th  Buesgens asked if the closing had taken place for 230 40 Avenue yet. Chirpich stated it had and that the Police and Fire are using the site for training purposes. He said the Fire Dept. will probably burn it down sometime this spring.  Chirpich told members he is still working with the various companies involved to remove the cell antennas from the NE Business Center. He said there are many moving parts since the leaseholder is Crown Castle, who supposedly is acting on behalf of Sprint and AT & T. Crown is disputing the legality of our right to terminate the lease, and has threatened to take legal action. Chirpich explained he has started dealing with the carriers directly and by-passing Crown. He has made progress with Sprint and they have decided to move the antennas to either Parkview Villa or to the Public Works site. He told members that AT & T isn’t responding to us. We sent them a letter of default since they haven’t made their rent payments to us. He explained that they must be sent two notices so it allows us termination rights. Crown claims they are working on a relocation plan for both carriers, but they have been dragging their feet. Chirpich said if the plan merges with ours, we will cooperate to get it done. The companies have all been told that we plan to demo the building in February, but realistically it will probably be March before it actually happens. Chirpich said staff has consulted with several attorneys and we have taken all the necessary steps. The existing antennas will not be a barrier to closing on the sale with the developer. It will not affect the transfer of title. Once the closing is done, power will be cut and the building will be demolished, and any remaining antennas will be removed in the process. EDA Minutes Page 7 February 3, 2020  Chirpich then told members that all the entitlement reviews for 3989 Central Ave. are going to the Planning Commission at the February 4, 2020 meeting. Herringer asked if the design for City Hall had been finalized. Chirpich stated that our design has been given to their developer, and it should be incorporated into their overall plan pretty closely to what we submitted. The next regular meeting is scheduled for Monday, March 2, 2020. Motion by Williams, seconded by Schmitt, to adjourn the meeting at 6:00 pm. All ayes. Respectfully submitted, Shelley Hanson Secretary