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HomeMy WebLinkAbout03-23-2020 EDA Packet ECONOMIC DEVELOPMENT AUTHORITY AGENDA SPECIAL MEETING March 23, 2020 6:00 PM City Hall Council Chambers 590 40th Avenue NE Columbia Heights, MN 55421 1. Call to Order 2. Roll Call 3. Pledge of Allegiance CONSENT AGENDA 4. Approve regular meeting minutes of February 3, 2020 5. Approve Financial Reports and Payment of Bills for January, and February 2020, Resolution 2020-03 Motion: Move to approve the Consent Agenda as presented. BUSINESS ITEMS 6. Interfund Loan, and Acquisition of 4441 Central Avenue NE – Resolution 2020-04, and Resolution 2020-05 Motion: Move to waive the reading of Resolution 2020-04, there being ample copies available to the public. Motion: Move to adopt Resolution 2020-04, a resolution approving an interfund loan in the amount of $600,000 from EDA Fund 204 to EDA Fund 408. Motion: Move to waive the reading of Resolution 2020-05, there being ample copies available to the public. Motion: Move to adopt Resolution 2020-05, a resolution approving the purchase agreement between the Columbia Heights Economic Development Authority and Deutsche Bank for the acquisition of 4441 Central Avenue NE. OTHER BUSINESS 7. Adjourn 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 Passed this 3rd day of February, 2020 Offered by: Novitsky Seconded by: Schmitt Roll Call: Vice President Attest: Recording Secretary OTHER BUSINESS • Buesgens asked if the closing had taken place for 230 40th 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 Resolution 2020-03 RESOLUTION NO. 2020-03 A RESOLUTION OF THE ECONOMIC DEVELOPMENT AUTHORITY OF COLUMBIA HEIGHTS, MINNESOTA, APPROVING THE FINANCIAL STATEMENTS FOR THE MONTHS OF JANUARY, AND FEBRUARY 2020, AND THE PAYMENT OF THE BILLS FOR THE MONTHS OF JANUARY, AND FEBRUARY 2020. 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 January, and February 2020 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 23rd day of March, 2020 Offered by: Seconded by: Roll Call: Vice President Attest: Assistant Secretary AGENDA SECTION BUSINESS ITEM ITEM NO. 6 MEETING DATE MARCH 23, 2020 CITY OF COLUMBIA HEIGHTS – ECONOMIC DEVELOPMENT AUTHORITY ITEM: Inter-fund loan and acquisition of 4441 Central Avenue NE DEPARTMENT: Community Development CITY MANAGER’S APPROVAL: BY/DATE: Aaron Chirpich, March 19, 2020 BY/DATE: BACKGROUND: Inter-fund borrowing is a routine method of managing cash-flow for large redevelopment projects. With the recent purchases of 3989 Central Avenue, and 230 40th Avenue, the EDA’s redevelopment project fund, Fund 408 has been depleted, and currently has a negative balance of $290,500. In addition to the negative balance, staff anticipates additional development costs for these projects in the coming months totaling $65,000. To create a positive balance in Fund 408, and continue to pay for development costs associated with these two projects, an interfund loan in the amount of $355,500 will be necessary. Following the sale of 3989 Central Avenue, the EDA will be able to replenish Fund 408 and repay the interfund loan. The sale of 3989 Central is scheduled to be completed by the end of June 2020. Staff recommends that the EDA’s administration fund, Fund 204 be the source of the interfund loan. In addition to the primary redevelopment projects listed above, Staff is seeking authorization to purchase additional property as part of the EDA’s Commercial Revitalization program. The Commercial Revitalization program was created to rejuvenate commercial corridors throughout the city by purchasing nonconforming residential structures in commercial zoning districts. The primary goal of the program is to eliminate the nonconformities and make room for new commercial development. Within this context, the vacant and foreclosed single-family home located at 4441 Central Avenue NE is available for purchase. 4441 Central was offered for sale on 2-23-20 with a list price of $90,250. Staff submitted a full price offer on 2- 26-20. The seller received multiple offers for the home, and requested best and final offers from all potential buyers. Staff responded by increasing the EDA’s offer to $125,250, and the offer was accepted. The assessed value of the property is $121,500. Staff considers this potential acquisition to be a priority within the program given its location and therefore wanted to be aggressive in the pursuit of the property. In addition to the base acquisition costs, the EDA will have to account for demolition and clean-up of the property. The total project budget is estimated at $150,000. To accommodate the potential acquisition of 4441 Central Avenue NE, the interfund loan amount would need to increase by $150,000 for a total loan of $505,500. In addition to this base amount, staff would like to provide a buffer to ensure that the cash-flow needs of the EDA are met over the next 6 months without additional board approval. Therefore, staff would like to round the loan to $600,000. Currently, Fund 204 has sufficient resources to cover the loan and pay for the ongoing staffing needs of the EDA. A breakdown of the proposed loan uses is listed in the table below: City of Columbia Heights - EDA Letter Page 2 Use Amount Negative Balance Coverage $290,500 Upcoming Development Costs for Current Projects $65,000 Acquisition and Demolition Costs for 4441 Central $150,000 Buffer Funds $94,500 Total = $600,000 STAFF RECOMMENDATION: Staff recommends that the EDA Board approve an interfund loan in the amount of $600,000 from EDA Fund 204 to EDA Fund 408 to support the current redevelopment activities of the authority. Staff also recommends that the Board approve acquisition of 4441 Central Avenue NE as part of the Commercial Revitalization program. RECOMMENDED MOTION(S) Motion: Move to waive the reading of Resolution 2020-04, there being ample copies available to the public. Motion: Move to adopt Resolution 2020-04, a resolution approving an interfund loan in the amount of $600,000 from EDA Fund 204 to EDA Fund 408. Motion: Move to waive the reading of Resolution 2020-05, there being ample copies available to the public. Motion: Move to adopt Resolution 2020-05, a resolution approving the purchase agreement between the Columbia Heights Economic Development Authority and Deutsche Bank for the acquisition of 4441 Central Avenue NE. ATTACHMENTS: • Resolution 2020-04 • Resolution 2020-05 • 4441 Central Location Map • 4441 Central Purchase Agreement    AGENDA SECTION BUSINESS ITEM  ITEM NO. 6  MEETING DATE MARCH 23, 2020  CITY OF COLUMBIA HEIGHTS – ECONOMIC DEVELOPMENT AUTHORITY    ITEM: Inter‐fund loan and acquisition of 4441 Central Avenue NE  DEPARTMENT: Community Development CITY MANAGER’S APPROVAL:  BY/DATE: Aaron Chirpich, March 19, 2020 BY/DATE:      BACKGROUND:   Inter‐fund borrowing is a routine method of managing cash‐flow for large redevelopment projects. With the  recent purchases of 3989 Central Avenue, and 230 40th Avenue, the EDA’s redevelopment project fund, Fund  408 has been depleted, and currently has a negative balance of $290,500. In addition to the negative balance,  staff anticipates additional development costs for these projects in the coming months totaling $65,000. To  create a positive balance in Fund 408, and continue to pay for development costs associated with these two  projects, an interfund loan in the amount of $355,500 will be necessary. Following the sale of 3989 Central  Avenue, the EDA will be able to replenish Fund 408 and repay the interfund loan. The sale of 3989 Central is  scheduled to be completed by the end of June 2020.  Staff recommends that the EDA’s administration fund,  Fund 204 be the source of the interfund loan.     In addition to the primary redevelopment projects listed above, Staff is seeking authorization to purchase  additional property as part of the EDA’s Commercial Revitalization program. The Commercial Revitalization  program was created to rejuvenate commercial corridors throughout the city by purchasing nonconforming  residential structures in commercial zoning districts. The primary goal of the program is to eliminate the  nonconformities and make room for new commercial development. Within this context, the vacant and  foreclosed single‐family home located at 4441 Central Avenue NE is available for purchase.     4441 Central was offered for sale on 2‐23‐20 with a list price of $90,250. Staff submitted a full price offer on 2‐ 26‐20. The seller received multiple offers for the home, and requested best and final offers from all potential  buyers. Staff responded by increasing the EDA’s offer to $125,250, and the offer was accepted. The assessed  value of the property is $121,500. Staff considers this potential acquisition to be a priority within the program  given its location and therefore wanted to be aggressive in the pursuit of the property. In addition to the base  acquisition costs, the EDA will have to account for demolition and clean‐up of the property. The total project  budget is estimated at $150,000.     To accommodate the potential acquisition of 4441 Central Avenue NE, the interfund loan amount would need  to increase by $150,000 for a total loan of $505,500. In addition to this base amount, staff would like to  provide a buffer to ensure that the cash‐flow needs of the EDA are met over the next 6 months without  additional board approval. Therefore, staff would like to round the loan to $600,000. Currently, Fund 204 has  sufficient resources to cover the loan and pay for the ongoing staffing needs of the EDA. A breakdown of the  proposed loan uses is listed in the table below:              City of Columbia Heights ‐ EDA Letter  Page 2      Use Amount  Negative Balance Coverage $290,500  Upcoming Development Costs for Current Projects $65,000  Acquisition and Demolition Costs for 4441 Central $150,000  Buffer Funds $94,500  Total = $600,000    STAFF RECOMMENDATION:   Staff recommends that the EDA Board approve an interfund loan in the amount of $600,000 from EDA Fund  204 to EDA Fund 408 to support the current redevelopment activities of the authority. Staff also recommends  that the Board approve acquisition of 4441 Central Avenue NE as part of the Commercial Revitalization  program.      RECOMMENDED MOTION(S)  Motion: Move to waive the reading of Resolution 2020‐04, there being ample copies available to the public.    Motion: Move to adopt Resolution 2020‐04, a resolution approving an interfund loan in the amount of  $600,000 from EDA Fund 204 to EDA Fund 408.     Motion: Move to waive the reading of Resolution 2020‐05, there being ample copies available to the public.    Motion: Move to adopt Resolution 2020‐05, a resolution approving the purchase agreement between the  Columbia Heights Economic Development Authority and Deutsche Bank for the acquisition of 4441 Central  Avenue NE.       ATTACHMENTS:   Resolution 2020‐04   Resolution 2020‐05   4441 Central Location Map   4441 Central Purchase Agreement          COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. 2020-04 A RESOLUTION APPROVING AN INTERFUND LOAN FROM ECONOMIC DEVELOPMENT AUTHORITY ADMINISTRATION FUND 204 TO ECONOMIC DEVELOPMENT AUTHORITY REDEVELOPMENT FUND 408 Whereas the Economic Development Authority (EDA), under its Commercial Revitalization Program within EDA Redevelopment Fund 408, acquires and sells various real property parcels; and Whereas, due to the timing of these transactions, continuing this activity within EDA Redevelopment Fund 408 requires certain temporary financing during 2020; and Whereas, the EDA seeks to continue this activity within EDA Redevelopment Fund 408; and Whereas, EDA Administration Fund 204 has sufficient cash available in 2020 to provide such temporary financing; and Whereas, one of the several purposes of the EDA Administration Fund 204 is to extend temporary internal financing to other EDA funds; and Whereas, the EDA estimates the term of this financing will be less than nine months; NOW, THEREFORE, IT IS HEREBY RESOLVED, that the City of Columbia Heights approves an interfund loan of $600,000 at zero percent interest, from EDA Administration Fund 204 to EDA Redevelopment Fund 408, effective upon the date of approval. Passed this _________ day of ______________________, 2020 Offered by: Seconded by: Roll Call: Marlaine Szurek, President Attest: Christy, Bennett, Secretary A-1 Resolution 2019-17 COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. 2020-05 RESOLUTION APPROVING PURCHASE AGREEMENT BETWEEN THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY AND DEUTSCHE BANK NATIONAL TRUST COMPANY, AS TRUSTEE, ON BEHALF OF THE HOLDERS OF THE J.P. MORGAN MORTGAGE ACQUISTION TRUST 2007-CH5 ASSET BACKED PASS-THROUGH CERTIFICATES, SERIES 2007-CHS. BE IT RESOLVED BY the Board of Commissioners ("Board") of the Columbia Heights Economic Development Authority (the "Authority") as follows: Section 1. Recitals. 1.01. The Authority and Deutsche Bank National Trust Company, as Trustee, on behalf of the holders of the J.P. Morgan Mortgage Acquisition Trust 2007-CH5 Asset Backed Pass-Through Certificates, Series 2007-CH5 (“Seller”) desire to enter into a purchase agreement (the “Purchase Agreement”) pursuant to which the Authority will acquire certain property in the City located at 4441 Central Avenue NE (the “Property”) from the Seller for economic redevelopment purposes. The Property is described in Exhibit A attached hereto. 1.02. Pursuant to the Purchase Agreement, the Authority will purchase the Property from the Seller for a purchase price of $125,250 plus related closing costs. 1.03. The Authority finds that acquisition of the Property is consistent with the City’s Comprehensive Plan and will result in redevelopment of a nonconforming property, and that such acquisition will facilitate the economic redevelopment and revitalization of this area of the City. Section 2. Purchase Agreement Approved. 2.01. The Authority hereby ratifies and approves the actions of Authority staff and of Re/Max Synergy acting as the Authority’s real estate broker (“Broker”) in researching the Property and preparing and presenting the Purchase Agreement. The Authority approves the Purchase Agreement in the form presented to the Authority and on file at City Hall, subject to modifications that do not alter the substance of the transaction and that are approved by the President and Executive Director, provided that execution of the Purchase Agreement by those officials shall be conclusive evidence of their approval. 2.02. Authority staff and officials are authorized to take all actions necessary to perform the Authority’s obligations under the Purchase Agreement as a whole, including without limitation execution of any documents to which the Authority is a party referenced in or attached to the Purchase Agreement, and any deed or other documents necessary to acquire the Property from the Seller, all as described in the Purchase Agreement. Approved this 23rd day of March, 2020, by the Board of Commissioners of the Columbia Heights Economic Development Authority. _________________________________ President ATTEST: __________________________________ Secretary A-1 Resolution 2019-17 EXHIBIT A PROPERTY Lot Twenty-two (22) and Lot Twenty-three (23), Block One (1), Reservoir Hills Columbia Heights, Anoka County, Minnesota