HomeMy WebLinkAbout09-08-2020 EDA PacketCOLUMBIA HEIGHTS EDA
NOTICE OF CONDUCTING MEETING BY A COMBINATION
OF IN-PERSON AND ELECTRONIC MEANS
Following a determination by City Manager Kelli Bourgeois, and emergencies declared
by the United States, The State of Minnesota, and the Columbia Heights Mayor & Cit y Council,
the Columbia Heights Special EDA Meeting Scheduled for Tuesday September 8, 2020 at 6 pm
will, pursuant to Minn. Stat. § 13D.021, occur by a combination of in-person and electronic
means. Members of the public who wish to attend may do so by attending in-person in the
Council Chambers at the Columbia Heights City Hall or by calling 1-312-626-6799 and entering
meeting ID 798 821 7248 at the scheduled meeting time. Comments can be submitted ahead of
the meeting to achirpich@columbiaheightsmn.gov or by calling (763) 706-3672.
If there are any questions about this notice or attending/calling in to the meeting,
please contact the Community Development Department at (763) 706-3670. The meeting
location for this meeting is the Council Chambers at Columbia Heights City Hall located at 590
40th Ave NE, Columbia Heights, MN 55421.
ECONOMIC DEVELOPMENT AUTHORITY AGENDA
September 8, 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 special meeting minutes of July 13, 2020 .
5. Approve Financial Report and Payment of Bills for June and July, 2020 – Resolution
2020-09
Motion: Move to approve Consent Agenda as presented.
BUSINESS ITEMS
6. Façade Improvement Grant Award Recommendation for VFW Post 230 – Resolution
2020-10
Motion: Move to waive the reading of Resolution 2020-10, there being ample copies
available to the public.
Motion: Move to adopt Resolution 2020-10, a resolution approving the form and
substance of the Façade Improvement Grant agreement, and approving authority staff
and officials to take all actions necessary to enter the autho rity into a Facade
Improvement Grant agreement with VFW Post 230.
7. Decertification of Tax Increment Financing District T4 – Resolution 2020-11
Motion: Move to waive the reading of Resolution 2020-11, there being ample copies
available to the public.
Motion: Move to adopt Resolution 2020-11, a Resolution decertifying tax increment
financing district Kmart-Central Ave (County No. T4) of the City of Columbia Heights.
8. Economic Development Authority Budget and Tax Levy – Resolution 2020-12
Motion: Move to waive the reading of Resolution 2020-12, there being ample copies
available to the public.
Motion: Move to adopt Resolution 2020-12, a resolution of the Columbia Heights
Economic Development Authority, adopting a budget for the fiscal year of 2021 and
setting the 2020 tax levy, payable in 2021.
9. Housing and Redevelopment Authority Tax Levy – Resolution 2020-13
Motion: Move to waive the reading of Resolution 2020-13, there being ample copies
available to the public.
Motion: Move to adopt Resolution 2020-13, a resolution of the Columbia Heights
Economic Development Authority, adopting a budget for the fiscal year of 2021 and
authorizing a special benefit tax levy, payable in 2021.
OTHER BUSINESS
10. Adjourn
The next scheduled EDA meeting will be on September 14, 2020 @ 5:30 p.m.
ECONOMIC DEVELOPMENT AUTHORITY (EDA)
MINUTES OF THE MEETING OF
July 13, 2020
The meeting was called to order at 5:33pm by Chair Szurek.
Members Present: Novitsky, Buesgens, Schmitt, Herringer, Williams, Murzyn and Szurek.
Staff Present: Aaron Chirpich (Community Development Director), Kelly Bourgeois (City
Manager) and Christy Bennett (Recording Secretary).
CONSENT AGENDA
1. Approve the minutes from the meeting of June 22, 2020.
2. Approve Financial Report and Payment of Bills for April and May 2020, Resolution 2020-08.
Questions from Members:
Herringer asked about Anoka County payment of $50k on page 12 of May financials. Chirpich said that this is
the first half of taxes for 3989 Central Ave.
Herringer asked what the $121k payment for Northeast Bank on page 12 of the April financials was for.
Chirpich said it was for the purchase of 4441 Central Ave as part of the commercial revitalization program. It is
labeled incorrectly in the financials, but it came from the same fund the 3989 Central Ave redevelopment
project.
Herringer asked about Pro-Tec Design Inc payment of $12k on page 12 of the April Financials. Chirpich said
this payment was for the cameras that are installed as part of the façade improvement grant.
Motion by Buesgens, seconded by Murzyn to approve the consent agenda as presented.
All ayes. MOTION PASSED.
RESOLUTION NO. 2020-08
A RESOLUTION OF THE ECONOMIC DEVELOPMENT AUTHORITY OF COLUMBIA HEIGHTS,
MINNESOTA, APPROVING THE FINANCIAL STATEMENTS FOR THE MONTHS OF APRIL AND
MAY 2020, AND THE PAYMENT OF THE BILLS FOR THE MONTHS OF APRIL AND MAY 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 April and May, 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 13th day of July, 2020
Offered by: Buesgens
Seconded by: Murzyn
Roll Call: All Ayes
BUSINESS ITEMS
6. Designate the City of Columbia Heights to Act as Agent for EDA for Demolition of 3989 Central
Avenue NE.
Chirpich explained that since the last EDA meeting held on June 22, staff has continued to work toward
preparing the 3989 Central Avenue redevelopment project for closing. One of the primary barriers to closing on
the land sale to Alatus is clearing title of the rooftop cell antenna lease encumbrances. To clear title to the
property, the City has filed a petition with the courts to remove the lease hold interests by eminent domain. Due
to delays in the court system primarily related to the COVID-19 pandemic, the initial eminent domain hearing
has been pushed to August 18. Subsequently, the delays with the eminent domain process have pushed the
anticipated lease removal and land sale closing to mid-October.
To keep the project moving forward and create the space necessary for the eminent domain proceedings to
conclude, demolition and removal of all site improvements in the project area need to be completed before
closing. In the case of this project, the redevelopment site includes six separate parcels with ownership that is
shared between the City and the EDA. In order to consolidate the demolition contract into one agreement, staff
recommends the EDA designate the City of Columbia Heights as agent on behalf of the EDA for all demolition
related work associated with the project.
To complete the demolition work, staff is working with Doran Construction on the preparation of a bid package
that will be processed through the typical public bidding process. The City will act as owner and Doran will
provide construction management services for the work. Under the current timeline, bids for the demolition
work will be due and opened on August 4, and the subsequent contract award will take place at the August 10
City Council meeting. Demolition work is expected to start by August 14, and conclude by mid-October. The
costs incurred by the City for demolition will be recaptured with the sale of the redevelopment parcels to
Alatus.
Questions/comments from members:
Szurek asked if there would be money involved in getting Crown to vacate. Chirpich said that with eminent
domain, we would deposit the fair market appraisal value of $335 k in escrow with the court. Upon completion
of the hearing on August 18th that determines public purpose, where the judge rules that there is a public
purpose for the project, we deposit the appraised amount in escrow and then wait for a hearing at a later date to
figure out who gets what. Chirpich stated that the important part is to clear the title and to create the space
necessary for this to conclude.
Schmitt asked why we have to deposit $325k in escrow, questioning why the City isn’t just paying for the tower
space, rather than the building. Chirpich explained that the $335k appraisal is for the tower space/lease area.
Chirpich further explained that the appraisal is looking at the business interest that Crown Castle has in our
property, in other words, the present day value is considered the amount that Crown Castle could sell the lease
space to another theoretical company that is interested using that space in a similar way on the open market. It
doesn’t account for future revenue, because that would be the benefit of the new owner.
Szurek asked if the EDA could lose that $335k and Chirpich replied that the EDA could. This has been the
framework of eminent domain from the beginning that this was an expected outcome. Szurek asked where this
money is coming from. Chirpich said that staff are planning to have that money come from the Anoka Count
HRA Levy fund for special projects. The council will have to pass a resolution to use the funds, but staff has
already checked with Anoka County that this would indeed be an eligible use of the funds. We have about
$900,000 in the account right now, with a little more going into it with this year’s first half taxes payment still
going into it.
Buesgens asked if we were basically buying out the contract, since the building is being torn down. Chirpich
responded that more or less, that is how the courts would view it. That is the prescriptive route of eminent
domain; you have to appraise it and give them fair market value. What Crown Castle is contesting is our fair
market value determination, and thus they are reluctant to accept the offer.
Herringer commented that you have to keep in mind that you are dealing with a New York Stock Exchange
company with assets of $7 billion dollars who is going to hold out for the max that they can get. Herringer
asked when we did our due diligence on buying 3989 Central Ave, when did we realize that the previous owner
has sold his interest in the cell tower lease. Chirpich responded that Stadium Village sold the lease for a lump
sum of $460,000 to Crown Castle in 2011-12. Crown Castle already had the lease interest on the building when
we purchased 3989 Central Ave, and he did disclose the lease hold interest in our negotiation process. They
overpaid in 2011 and now the asset that their interest sits on has depreciated. The appraisal tries to take that into
consideration; they monetize an expected annual rental income from this leasable space, which is where the
$335k is derived. Chirpich commented that Crown Castle knew the property was distressed, which is why they
approached the City about getting off it.
Szurek asked if we offered Crown Castle the $335,000 to vacate the lease, since that is the fair market value.
Buesgens confirmed we did. Szurek asked if they could get more than the $335,000. Chirpich explained that the
courts are our outlet, because we have the framework of a deal that we have been working together on in good
faith and we have eminent domain powers. This is a viable plan, considering that we need the demolition done
either way and we have a viable economic development resource to pay for it, we have no reason to believe the
project is in jeopardy. We have to try to exercise our authority, as they have not been reasonable.
Buesgens commented that she was glad the title company decided not to move forward without the lease being
cleared up, so that Crown Castle doesn’t try to sue them.
Williams expressed concern that there is not an executed contract in place with Alatus and that they could back
out at any time or even collapse as a company, while we, as a small city, have millions of dollars into this
project. He stated he was against this from the beginning. Buesgens asked if we had a pre-development
agreement in place with them. Chirpich said yes, but it’s a small escrow deposit. Chirpich said when the EDA
went into this decision; it was made based on the importance of redeveloping 3989 Central Ave, regardless of
the Alatus project. Alatus is a qualified, capable partner that, despite a pandemic, has secured equity and has a
bank lined up. The vision from the Council and the EDA was that this was a priority site and if the EDA did not
step in to take the lead, the City would continue to have a vacant 6 story office building with no clear future.
Buesgens pointed out that if the EDA hadn’t bought the building, the City would have no control over what
happened to it. If by chance this deal falls apart, the City still owns the lot(s) and has control over what happens
on the site. Chirpich said that the City was also facing the prospect of handing over a $2 million ramp to Ned
Abdul at 500 LLC, which was a motivating factor in the urgency to purchase the building. According to
Chirpich, Alatus has invested hundreds of thousands of dollars into this project already. They have submitted
their building plans to the City and they are ready to go. Chirpich said that in staff’s opinion, it isn’t really an
option to back out at this juncture.
Schmitt commented that the city has a history of buying distressed properties. The City bought the Burger King
and the bowling alley with no developer in sight, as well as purchasing multiple homes in the city. We took the
risk, because we knew they needed to be replaced. This is another risk. In most cases, the risks have panned out
in good ways. We need this site re-developed, whether by Alatus or someone else. She said Alatus is proving to
be patient. She also said that the pandemic isn’t helping the situation. Chirpich said that it set us back at least 2
months, but is grateful that we are able to check off the big boxes still and be in a positive position, despite the
pandemic.
Schmitt thanked staff for all their hard work on this project.
Motion by Buesgens, seconded by Herringer, to designate the City of Columbia Heights as agent on behalf of
the Economic Development Authority for demolition of all site improvements located at the 3989 Central
Avenue NE redevelopment site.
All Ayes. MOTION PASSED.
PUBLIC HEARING
7. Approve Land Sale to Alatus LLC for Redevelopment of EDA Owned Property and Approval of
TIF Agreement for Same
Chirpich shared that the EDA opened a public hearing on June 8, 2020 to consider the sale of EDA owned
property and final approval of the tax increment financing agreement for the EDA’s redevelopment site located
at 3989 Central Avenue. At the time of the hearing, the final purchase, redevelopment, and TIF agreements
were not ready for review and approval. Therefore, the hearing was continued to June 22 at 6:00 p.m. At the
time of the June 22 public hearing, the land sale agreements and final TIF agreement remained unfinished.
Therefore, the public hearing was continued to July 13, at 5:30 p.m.
Since the June 22 public hearing, staff has continued to work toward preparing the project for closing. One of
the primary barriers to closing on the land sale to Alatus is clearing title of the rooftop cell antenna lease
encumbrances. To clear title to the property, the City has filed a petition with the courts to remove the lease
hold interests by eminent domain. Due to delays in the court system primarily related to the COVID -19
pandemic, the initial eminent domain hearing has been pushed to August 18. Subsequently, the delays with the
eminent domain process have pushed the anticipated lease removal and land sale closing to mid-October.
Therefore, staff recommends that the Council close the public hearing to consider the purchase, redevelopment,
and TIF agreements without taking action. Staff will re-publish for a new hearing date once a final closing date
has been established.
Questions/comments from members:
Williams expressed his concern again that there is not a formal/legal agreement to guarantee that Alatus will
buy 3989 Central Ave, as agreed upon.
Novitsky said we haven’t overpaid for the property, purchased at the market value of $2.8 million, so worst case
scenario, if this deal falls through, we aren’t losing money selling it to another development company at market
value. On top of that, it is worth more to a developer once the demolition has happened. Novitsky and Buesgens
shared that they are still in favor of this project. Williams stated he is still concerned about spending more
money on the project.
Herringer said that Alatus does have money involved in the project that they will not want to lose, too. Chirpich
agreed, sharing that Alatus has spent hundreds of thousands of dollars on this project in architectural and design
work, soil borings and environmental testing. If this project doesn’t happen, Alatus is out all that money, while
the City still has a property to sell. Chirpich said he would argue that it is a bigger risk for Alatus at this point,
than for the City. Chirpich said we have a preliminary development agreement in place, which is on par for how
these projects work in many cities. We have a history of doing preliminary development agreements in this city.
Public Hearing Opened
There were no comments
Public Hearing Closed
Motion by Schmitt, seconded by Novitsky, to close the public hearing without taking action.
Ayes- Schmitt, Notivsky, Buesgens, Murzyn. Abstained- Williams.
MOTION PASSED.
Other Updates
Chirpich brought up the property 960 40th Ave, located to the east of the ramp, which has been a priority
acquisition throughout the planning for this project. Staff had always thought the EDA would entertain the
acquisition at a later date, after closing on the Alatus deal. Alatus has approached the owners and has the
framework of a deal to acquire the property. They have a purchase agreement in place with some contingencies.
Alatus has asked the City if they have interest in the property in a similar fashion as the scattered site
redevelopment program. Staff is open to this, but needs to understand what the use would be first. Chirpich
stated that the “EDA would need to be able to use it in a way that is consistent with the EDA’s expectations and
to not just give it to the project. Staff thinks that it would be a priority acquisition under any measure, given the
house’s condition. Houses that have access to their garages along that alley have been placed in a category for
future re-development when the owners are ready to sell, so that the City can close the alley and not have to
maintain it. It is problematic from a maintenance perspective for the City, as for snow removal; there is nowhere
to push it.
Chirpich told members that Staff would get more information, understand the nature of the deal, and see if it
would be a good project for the City at a later date. This could be used to develop a new home or it could be
acquired and held until contiguous sites are acquired to do a bigger project. Kevin Hansen, the City Engineer,
has also drawn up storm water improvements for the site he would like to see through that would provide
treatment for the lake to the north. Chirpich said he was just putting this on the radar and that Staff may
potentially bring this back to the EDA for consideration after further review.
Buesgens asked to confirm that Alatus has currently made an offer and has a purchase agreement for the house
and that at some future date, Alatus and the City may talk about the City taking over the lot. Chirpich this is the
idea, though he needs to review the agreements a little more thoroughly, as it would need to make sense for the
City to acquire the property.
Herringer asked what the asked what the offer on the house was. Chirpich said he didn’t recall the exact
amount, but that the offer was over $200,000 and that the property is tax assessed for just under that. Novitsky
commented once the new development goes up, it would be worth over $200,000.
Murzyn said there have been cars junked in the backyard for years and that the soil is probably bad, along with
the water table being high in that area. This makes him a bit leery of purchasing the property, as there may be
cleanup to deal with and/or limitations on what can be built there. Buesgens said that there is the previously
mentioned option of using it for the storm water improvements. Chirpich agreed that it could be used similarly
to the storm water retention basin on Gould. Szurek said that it would be a lot of money to build something like
that. Chirpich said the City could likely secure grant funding, as it would be an improvement that would help
the impaired waterway. Looking at it from a global perspective, it’s not a need, but there would be support for
that type of improvement.
Szurek said this has been the EDA’s plan, to remove questionable housing and replace it with things to improve
the city. With the new development at 3989 Central Ave, keeping the deteriorating housing right next to it will
bode poorly for the image of the project. Szurek said she thinks this should be taken into consideration and
agrees that something needs to be done with those properties.
Buesgens said that it could be a good deal for Alatus, creating green space near the development, if we don’t
purchase the property from them because of the condition and price. Chirpich said that option is probably not
palatable to Alatus.
Szurek said the EDA should let Staff look into this more and come back to this discussion at a future meeting,
when Staff has a better understanding of whether or not it makes sense for the City to look at purchasing the
property.
Motion by Herringer, seconded by Buesgens, to adjourn the meeting at 6:26pm.
All Ayes. MOTION PASSED.
Respectfully submitted,
Christy Bennett
Secretary
Resolution 2020-09
RESOLUTION NO. 2020-09
A RESOLUTION OF THE ECONOMIC DEVELOPMENT AUTHORITY OF COLUMBIA HEIGHTS, MINNESOTA,
APPROVING THE FINANCIAL STATEMENTS FOR THE MONTHS OF JUNE AND JULY 2020, AND THE PAYMENT
OF THE BILLS FOR THE MONTHS OF JUNE AND JULY 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 June and July, 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 Height s
Economic Development Authority.
ORDER OF ECONOMIC DEVELOPMENT AUTHORITY
Passed this 8th day of September, 2020
Offered by:
Seconded by:
Roll Call:
President
Attest:
Assistant Secretary
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AGENDA SECTION BUSINESS ITEMS
ITEM NO. 6
MEETING DATE 9-8-2020
CITY OF COLUMBIA HEIGHTS – ECONOMIC DEVELOPMENT AUTHORITY
Façade Improvement Grant Report VFW
ITEM: Façade Improvement Grant Report VFW 230, 4446 Central
DEPARTMENT: Community Development CITY MANAGER’S APPROVAL:
BY/DATE: Mitchell Forney, 8/27/20 20 BY/DATE:
BACKGROUND:
This report is in regards to the 2020 Façade improvement Grant application for VFW post 230 located at 4446
Central Ave NE.
Due to the emergence of the COVID-19 Pandemic Community development staff, at the request of the EDA,
has continued to offer the Façade improvement grant program to the businesses of Columbia Heights. With
regards to the extenuating circumstances the 2020 Façade Improvement Grant program is being offered
throughout the year on a first come first serve basis, with applications being accepted until the end of
October. The application from VFW Post 230 is the first façade improvement application received by the
Community Development Department. The community development department continues to advertise the
program and will be including the program in the efforts to advertise the Business Relief Grant Program.
VFW Post 230 is requesting the full $5,000 grant amount to assist with their proje ct. Their proposal includes
the installation of new windows and siding along the Eastern side of the building, along with a new window on
the eastern side of the entrance. The bids submitted with the application estimate the total project cost to be
$11,500.00.
After speaking with the Columbia Heights Police Department the VFW location will remain in consideration for
the Camera aspect of the Façade Improvement Grant Program. The Camera aspect of the program will be
executed at the end of the grant cycle in order to include all projects in one Camera instillation agreement.
STAFF RECOMMENDATION:
Staff Recommends that the EDA approve Resolution 2020-10 approving VFW Post 230’s application in full and
allowing staff to enter into agreements to execute Grant funding.
RECOMMENDED MOTION(S):
Motion: Move to waive the reading of Resolution 2020-10, there being ample copies available to the public.
Motion: Move to adopt Resolution 2020-10, resolution approving the form and substance of the façade
improvement grant agreement, and approving authority staff and officials to take all actions necessary to
enter the authority into a façade improvement grant agreement with VFW post 230.
ATTACHMENTS:
1. Resolution 2020-10
2. Sample Façade Improvement Grant Agreement
3. VFW Project scope
Resolution 2020-10
RESOLUTION NO. 2020-10
A RESOLUTION OF THE ECONOMIC DEVELOPMENT AUTHORITY OF COLUMBIA HEIGHTS,
MINNESOTA, APPROVING THE FORM AND SUBSTANCE OF THE FAÇADE IMPROVEMENT
GRANT AGREEMENT, AND APPROVING AUTHORITY STAFF AND OFFICIALS TO TAKE ALL
ACTIONS NECESSARY TO ENTER THE AUTHORITY INTO A FAÇADE IMPROVEMENT
GRANT AGREEMENT WITH VFW POST 230.
BE IT RESOLVED BY the Board of Commissioners ("Board") of the Columbia Heights Economic
Development Authority (the "Authority") as follows:
WHEREAS, the City of Columbia Heights (the “City”) and the Authority have collaborated to create a certain
Façade Improvement Grant Program (the “Program”); and
WHEREAS, pursuant to guidelines established for the Program, the Authority is to award and administer a
series of grants to eligible commercial property owners and/or tenants for the purposes of revitalizing existing
store fronts, increasing business vitality and economic performance, and decreasing criminal activity along
Central Avenue Northeast, 40th Ave NE, and 38th Ave NE, pursuant to a Façade Improvement Grant Agreement
with VFW Post 230 (the “Grant Agreement”); and
WHEREAS, the Authority has reviewed copies of the proposed form of the Grant Agreement.
NOW, THEREFORE BE IT RESOLVED that the Authority hereby approves the form and substance of the
Grant Agreement, and approves the Authority entering into the Grant Agreement with VFW Post 230, as
recommended b y the Community Development Department of the City, in accordance with the Program
guidelines.
BE IT FURTHER RESOLVED, that Marlaine Szurek, as the President of the Authority, is hereby authorized,
empowered and directed for and on behalf of the Authority to enter into the Grant Agreement.
BE IT FURTHER RESOLVED, that Marlaine Szurek, as the President of the Authority, is hereby authorized
and directed to execute and take such action as he/she deems necessary and appropriate to carry out the purpose
of the foregoing resolution.
BE IT FURTHER RESOLVED, that these actions shall be effective as of September 8th, 2020
ORDER OF ECONOMIC DEVELOPMENT AUTHORITY
Passed this 8th day of September, 2020
Offered by:
Seconded by:
Roll Call:
Marlaine Szurek, President
Attest:
Shelley Hanson, Secretary
FAÇADE IMPROVEMENT GRANT AGREEMENT
THIS FAÇADE IMPROVEMENT GRANT AGREEMENT (“Agreement”), dated this
_____ day of ______________, 2020 (the “Effective Date”), is entered into by and between
[PROPERTY OWNER] a Minnesota [ENTITY TYPE] (the “Grantee”), and the Columbia
Heights Economic Development Authority (the “EDA”).
RECITALS
WHEREAS, Grantee is [the owner of] [a tenant at] certain Property located at
__________________ in the City of Columbia Heights (the “City”), Anoka County, Minnesota,
and legally described in Exhibit A hereto (the “Property”);
WHEREAS, the EDA, in cooperation with the City and its police department, has
instituted a Façade Improvement Grant Program (the “Program”) for the purpose of revitalizing
existing store fronts, increasing business vitality and economic performance, and decreasing
criminal activity;
WHEREAS, as part of the Program, the EDA has proposed to make grants of money in
the maximum amount of $5,000.00 per parcel of real property, to property owners, tenants, or
nonprofit organizations, in order to revitalize, rehabilitate, and restore exterior store fronts within
the Central Business District in the City (the “CBD”), increase business vitality and economic
performance in the CBD, and in certain instances, to provide monitored surveillance within the
CBD; and
WHEREAS, Grantee desires to participate in the Program, on the terms and conditions
set forth below.
NOW, THEREFORE, in consideration of the premises and of the agreements hereinafter
contained, the parties agree as follows:
1. Property Improvements: Grantee agrees to complete the improvements at the
Property that are identified on Exhibit B attached hereto (the “Improvements”),
subject to the following terms and conditions:
a. If requested by the EDA, Grantee shall provide plans and specifications to the
EDA, detailing the Improvements to be constructed (the “Plans”). If Grantee
wishes to revise the Plans, Grantee must submit the revised Plans to the EDA
at the address provided herein. The EDA shall give written notice of its
approval or disapproval of the revisions to the Plans, and if the EDA does not
give such written approval or disapproval within ten (10) business days after
receipt of Grantee’s revised Plans, the EDA shall be deemed to have approved
the revisions to the Plans.
b. The Improvement shall be constructed consistently with the Plans, as the same
may be revised pursuant to Section 1(a) herein. The cost to complete
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construction of the Improvements shall be defined as the “Improvement
Costs.” The Improvements shall be completed in a first-class manner,
consistent with the Plans, if any, and in compliance with all applicable laws,
rules, and regulations. Grantee shall obtain all required permits and approvals
from the City and any other governing authority with jurisdiction over the
Property related to the construction of the Improvements. The out-of-pocket
costs for such permitting and approvals shall be the responsibility of Grantee,
provided the same shall be included in the definition of “Improvement Costs,”
and subject to the provisions of Section 2 of this Agreement.
c. Grantee agrees to commence the Improvements within sixty (60) days
following the Effective Date, and to complete the Improvements within six (6)
months following the issuance of all necessary building permits, but in no
event later than eight (8) months following the Effective Date.
2. Payment of Grant Funds: Grantee shall be responsible for making initial payment to
all contractors involved in the construction of the Improvements. Upon final
completion of the Improvements, Grantee shall make a written request to the EDA for
reimbursement of one-half (1/2) of the actual Improvement Costs incurred by
Grantee, but in no event shall the reimbursement exceed Five Thousand Dollars
($5,000.00). The written request shall include:
a. Proof of final inspection of the Improvements by the City building inspector;
b. Before and after photographs of the Property, reflecting the Improvements
made (as well as follow-up transmission of electronic files of such
photographs), and reflecting that the Improvements were completed
consistently with any approved Plans;
c. A copy of the final invoice(s) received from the contractor(s) who completed
the Improvements; and
d. Proof of payment of invoice(s) that comprised the Improvement Costs.
Following Grantee’s written request for reimbursement, Grantee shall cooperate with
the EDA in delivering to the EDA such follow-up information as is reasonably
requested by the EDA in order to review the Improvements and Improvement Costs
reimbursement request. Within twenty-one (21) days following receipt of Grantee’s
written request for reimbursement of Improvement Costs, the EDA shall: (i) make
payment of the reimbursement, (ii) send Grantee written explanation of such other
items of information as are needed by the EDA to evaluate the reimbursement
request, or (iii) send Grantee written explanation of the EDA’s reasons for denial of
repayment of any of Grantee’s requested reimbursement.
3. Liability for Improvements: Neither the City nor the EDA shall in any event be liable
to the Grantee, nor to any of its agents, employees, guests or invitees at the Property
for, and the Grantee shall indemnify, save, defend, and hold harmless the City and the
EDA from, any claims or causes of action, including attorney’s fees incurred by the
City or the EDA, arising from defect or claimed defect of any of the Improvements,
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or arising from any action of the City or the EDA under this Agreement. This section
shall survive the termination or expiration of this Agreement.
4. Written Notice: Wherever any notice is required or permitted hereunder, such notice
shall be in writing. Any notice or document required or permitted to be delivered
hereunder shall be deemed to be delivered when actually received by the designated
addressee or regardless of whether actually received or not, when deposited in the
United States Mail, postage prepaid, certified mail, return receipt requested,
addressed to the parties hereto at their respective addresses, as set forth below, or at
such other address as they may subsequently specify by written notice.
If to the EDA:
Columbia Heights EDA
Community Development Department
590 40th Avenue N.E.
Columbia Heights, MN 55421
If to Grantee:
____________________
Attn: ________________
____________________
____________________
5. Captions; Choice of Law; Etc. The paragraph headings or captions appearing in this
Agreement are for convenience only, are not a part of this Agreement, and are not to
be considered in interpreting this Agreement. This Agreement constitutes the
complete agreement between the parties and supersedes any prior oral or written
agreements between the parties regarding the subject matter contained herein. There
are no verbal agreements that change this Agreement. This Agreement binds and
benefits the parties hereto and their successors and assigns. This Agreement has been
made under the laws of the State of Minnesota, and such laws will control its
interpretation.
[Signatures to Appear on Following Page]
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IN WITNESS WHEREOF, Grantee and the EDA have signed this Agreement as of the
day and year first above written.
GRANTEE: [_________________________]
a [_______________________]
By:____________________________
Name: _________________________
Its:____________________________
Date:__________________________
EDA: COLUMBIA HEIGHTS ECONOMIC
DEVELOPMENT AUTHORITY
By:
Name: _________________________
Its:____________________________
Date:__________________________
5
EXHIBIT A
LEGAL DESCRIPTION OF PROPERTY
6
EXHIBIT B
PROPERTY IMPROVEMENTS SUBJECT TO 50% REIMBURSEMENT
AGENDA SECTION BUSINESS ITEM
ITEM NO. 7
MEETING DATE SEPTEMBER 8, 2020
CITY OF COLUMBIA HEIGHTS – ECONOMIC DEVELOPMENT AUTHORITY
ITEM: Decertification of the Kmart-Central Ave T4 Tax Increment Financing District
DEPARTMENT: Community Development CITY MANAGER’S APPROVAL:
BY/DATE: Aaron Chirpich, September 3, 2020 BY/DATE:
BACKGROUND:
In 2003, the Kmart-Central Avenue-T4 Tax Increment Financing (TIF) District was established to assist in the
redevelopment of the former Kmart site located in the northeast quadrant of the intersection of 47th Avenue
and Central Avenue. TIF was used to pay for eligible expenses incurred by the developer, including the
demolition of the former Kmart building. The developer, New Heights Development, LLC received TIF
assistance in the amount of $700,000 through the issuance of a tax increment revenue note by the EDA.
The T4 district is set to expire on December 31, 2020 and the EDA must decertify the district in preparation of
the pending expiration. All obligations made under the original TIF agreement have been satisfied, and the TIF
note has been paid in full. This means that tax increment is no longer being collected, and taxes in the district
will now flow back to the City, County, School District, and all other taxing jurisdictions.
STAFF RECOMMENDATION:
Staff recommends approval of Resolution 2020-11 as presented.
RECOMMEDED MOTION(S):
Motion: Move to waive the reading of Resolution 2020-11, there being ample copies available to the public.
Motion: Move to adopt Resolution 2020-11, a resolution of the Columbia Heights Economic Development
Authority, decertifying tax increment financing district Kmart-Central Ave (County No. T4) of the City of
Columbia Heights.
ATTACHMENTS:
Resolution 2019-11
2003, the RESOLUTION NO. 2020-11
COLUMBIA HEIGHTS ECOMOMIC DEVELOPMENT AUTHORITY
COUNTY OF ANOKA
STATE OF MINNESOTA
A RESOLUTION DECERTIFYING
TAX INCREMENT FINANCING DISTRICT KMART-CENTRAL AVE (COUNTY NO. T4)
OF THE CITY OF COLUMBIA HEIGHTS
WHEREAS, on September 22, 2003, the City (the "City") and Economic Development Authority
(the “Authority”) created its Tax Increment Financing District Kmart-Central Ave (County No.T4), (the
"District") within its Central Business District Redevelopment Project (the "Project"); and
WHEREAS, Minnesota Statutes, Section 469.174 to 469.179 authorizes the Authority to decertify
a tax increment financing district on any date after all bonds and other obligations have been satisfied; and
WHEREAS, as of the decertification date all bonds to which tax increment from the District have
been pledged are paid in full; and
WHEREAS, the Authority desires by this resolution to decertify the District effective September 8,
2020, by which all taxing jurisdictions will benefit from an increased tax base effective for taxes payable in
2020; and
WHEREAS, the excess tax increment in the account for the District, if any, will be returned to the
County Auditor for redistribution to the regular taxing jurisdictions;
NOW THEREFORE, BE IT RESOLVED by the Board of Economic Development Authority of the
City of Columbia Heights that it acknowledges such action was taken by the County Auditor of Anoka
County to decertify the District as a tax increment district and to no longer remit tax increment from the
District to the City.
DATED: September 8, 2020
__________________________________
Chair
ATTEST:
________________________________
(Seal)
AGENDA SECTION BUSINESS ITEM
ITEM NO. 8 & 9
MEETING DATE SEPTEMBER 8, 2020
CITY OF COLUMBIA HEIGHTS – ECONOMIC DEVELOPMENT AUTHORITY
ITEM: Adoption of the 2021 Budget and Authorization of EDA and HRA Levies
DEPARTMENT: Community Development CITY MANAGER’S APPROVAL:
BY/DATE: Aaron Chirpich, September 1, 2020 BY/DATE:
BACKGROUND:
In late August, the proposed budget for the 2021 fiscal year was distributed to the City Council. Before the City
Council completes their final review of the proposed budget later this fall, the Columbia Heights Economic
Development Authority (the “EDA”) and the Housing and Redevelopment Authority in and for the City of
Columbia Heights (the “HRA”) are required to adopt fund budgets for Fund 204: EDA Administration and Fund
408: EDA Redevelopment Projects; and to authorize their respective 2020 tax levies, payable in 2021.
Overall, the proposed 2021 fund budgets are balanced, with funds specifically dedicated to maintain existing
projects and initiatives, as well as allocating funds for programs that reflect the priorities of the EDA, such as
the Commercial Revitalization Project and the Façade Improvement Grant Program. It is worth noting that the
proposed 2021 budget for Fund 204 includes a 3.9% levy increase, which represents an increase of $15,425
from 2020. This increase can be attributed to three primary changes within the Community Development
department that are detailed in the comment section of the Fund 204 summary budget that is attached to this
report.
The EDA effectively has two separate tax levies after the City Council granted the EDA certain HRA powers in
1996. One tax levy is administered by the City under Minnesota Statutes, Section 469.107 on behalf of the EDA
(the “EDA Levy”) and the other is a special benefit tax levy administered by the EDA under Minnesota Statutes,
Section 469.033 on behalf of the HRA (the “HRA Levy”). The proposed fund budgets reflect total levy amounts
that are within the statutory limits. For 2021, the EDA Levy would capture $254,625 from the City’s estimated
market land value; whereas the HRA Levy would net $250,000. When combined, both levies result in total net
revenue of $504,625.
STAFF RECOMMENDATION:
Staff recommends approval of Resolution 2020-12 and Resolution 2019-13 as presented.
RECOMMEDED MOTION(S):
Motion: Move to waive the reading of Resolution 2020-12, there being ample copies available to the public.
Motion: Move to adopt Resolution 2020-12, a resolution of the Columbia Heights Economic Development
Authority, adopting a budget for the fiscal year of 2021 and setting the 2020 tax levy, payable in 2021 .
Motion: Move to waive the reading of Resolution 2020-13, there being ample copies available to the public.
Motion: Move to adopt Resolution 2020-13, a resolution of the Columbia Heights Economic Development
Authority, adopting a budget for the fiscal year of 2021 and authorizing a special benefit tax levy, payable in
2021.
City of Columbia Heights - EDA Letter Page 2
ATTACHMENTS:
Resolution 2019-12
Resolution 2019-13
Fund 204: EDA Administration Budget
Fund 408: EDA Redevelopment Project Budget
Resolution 2020-12
RESOLUTION NO. 2020-12
A RESOLUTION OF THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY, ADOPTING A BUDGET
FOR THE FISCAL YEAR OF 2021 AND SETTING THE 2020 TAX LEVY, PAYABLE IN 2021.
BE IT RESOLVED, by the Columbia Heights Economic Development Authority (the “EDA”) as follows:
WHEREAS, the City of Columbia Heights (the “City”) established the EDA by an enabling resolution adopted on
January 8, 1996, pursuant to Minnesota Statutes 469.090 to 469.1081 (the “EDA Act”); and
WHEREAS, the City Council of the City has given to the EDA the responsibility for all development and
redevelopment projects and programs; and
WHEREAS, under Section 469.107 of the EDA Act, the City is authorized to levy a tax for the benefit of the EDA
on its area of operation for the purposes authorized under the EDA Act, subject to the approval of the City
Council.
NOW, THEREFORE BE IT RESOLVED, by the Board of Commissioners of the Columbia Heights Economic
Development Authority, that the EDA adopts and requests the City Council’s approval of its budget in the
amount of $504,625 for 2021; and
BE IT FURTHER RESOLVED, that the EDA adopts and requests the City Council’s approval of its tax levy in the
amount of $254,625 for taxes payable in 2021; and
BE IT FURTHER RESOLVED, that the Executive Director is instructed to transmit a copy of this resolution to the
City Manager, Finance Director, and City Clerk of the City of Columbia Heights, Minnesota.
ORDER OF ECONOMIC DEVELOPMENT AUTHORITY
Passed this 8th day of September, 2020
Offered by:
Seconded by:
Roll Call:
President
Attest:
Secretary
Resolution 2020-13
RESOLUTION NO. 2020-13
A RESOLUTION OF THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY, ADOPTING A BUDGET
FOR THE FISCAL YEAR OF 2021 AND AUTHORIZING A SPECIAL BENEFIT TAX LEVY, PAYABLE IN 2021.
BE IT RESOLVED, by the Columbia Heights Economic Development Authority (the “EDA”) as follows:
WHEREAS, the City of Columbia Heights (the “City”) established the EDA by an enabling resolution adopted on
January 8, 1996, pursuant to Minnesota Statutes 469.090 to 469.1081 (the “EDA Act”); and
WHEREAS, the City Council granted the EDA all powers and duties of a housing and redevelopment authority
by an enabling resolution and ordinance adopted on October 22, 2001, pursuant to Minnesota Statutes
469.001 to 469.047 (the "HRA Act"), except certain powers that are allocated to the Housing and
Redevelopment Authority in and for the City of Columbia Heights (the “HRA”); and
WHEREAS, under Section 469.033 of the HRA Act, the EDA and HRA, are authorized to levy a special benefit
tax, in an amount not to exceed .0185 percent of the City’s estimated market value (the “HRA Levy”); and
WHEREAS, the EDA desires to maintain its HRA Levy at the amount of .0185 percent of the City’s estimated
market value as authorized by the HRA Act; and
WHEREAS, the EDA has before it for consideration a copy of its budget for the fiscal year of 2021, and the
amount of the HRA Levy, payable in 2021, is based on said budget.
NOW, THEREFORE BE IT RESOLVED, by the Board of Commissioners of the Columbia Heights Economic
Development Authority, that the EDA hereby adopts and requests the City Council approve its budget in the
amount of $504,625 for 2021, and such budget includes both the amount the EDA requests to be levied by the
City under Section 469.107 of the EDA Act, and the amount levied by the EDA under Section 469.033 of the
HRA Act; and
BE IT FURTHER RESOLVED, that the EDA hereby directs staff to file its budget with the City in accordance to
Section 469.033 of the HRA Act, and take such actions necessary to levy and certify the HRA Levy in the
amount of $250,000 for taxes payable in 2021.
ORDER OF ECONOMIC DEVELOPMENT AUTHORITY
Passed this 8th day of September, 2020
Offered by:
Seconded by:
Roll Call:
President
Attest:
Secretary