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HomeMy WebLinkAbout07-13-2020 EDA Packet ECONOMIC DEVELOPMENT AUTHORITY AGENDA SPECIAL MEETING July 13, 2020 5:30 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 June 22, 2020 5. Approve Financial Reports and Payments of Bills for April and May 2020, Resolution 2020-08. Motion: Move to approve the Consent Agenda as presented. BUSINESS ITEMS 6. Designate the City of Columbia Heights to Act as Agent for EDA for Demolition of 3989 Central Avenue NE. Motion: Move 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. PUBLIC HEARING 7. Public Hearing – Approve Land Sale to Alatus LLC for Redevelopment of EDA Owned Property and Approval of TIF Agreement for Same Motion: Move to close the public hearing without taking action on the sale of EDA owned land or TIF agreement. OTHER BUSINESS 8. Adjourn ECONOMIC DEVELOPMENT AUTHORITY (EDA) MINUTES OF THE MEETING OF June 22, 2020 The meeting was called to order at 6:01pm by Chair Szurek. Members Present: Novitsky, Buesgens, Schmitt, Herringer, Williams, Murzyn and Szurek. Staff Present: Kelly Bourgeois (City Manager) and Christy Bennett (Recording Secretary). CONSENT AGENDA 1. Approve the minutes from the meeting of June 8, 2020. Motion by Novitsky, seconded by Buesgens to approve the minutes from the June 8, 2019, meeting as presented. All ayes. MOTION PASSED. Public Hearing – Approve Land Sale to Alatus LLC for Redevelopment of EDA owned Property and Approval of TIF Agreement for Same BACKGROUND: Bourgeois explained 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. Due to the complex nature of the project, the contracts remain unfinished and staff needs more time to prepare. Therefore, staff recommends that the EDA continue the hearing to July 13, at 5:30 p.m. Comments from Members There were no questions from members. Motion by Buesgens, seconded by Williams, to open the public hearing and continue the hearing to July 13, 2020 at 5:30 pm. All Ayes. MOTION APPROVED. Public Hearing Opened There were no questions from the public. Public Hearing Closed Redevelopment Project Updates: Bourgeois shared that staff is in continual discussions with multiple parties. They are working on the quick take process regarding the lease for the cell antennas that were located on top of 3989 Central Ave. The antennas for both carriers, Sprint and AT&T, are physically off the building and all related accessory equipment has been decommissioned. There had been a court date set (July 10th) for the public purpose portion of the quick take, the condemnation hearing, but there was a request by AT&T for a new judge. The new judge has been appointed, but the new court date has not been scheduled yet. Staff is continuing to work with all of the parties on a resolution outside of court. Bourgeois said that staff continues to work diligently with Alatus and their architects, as well as the City’s architects. Leo A Daly is designing the City Hall portion of the project, while Doran is working with Alatus on the overall design and construction of the building as a whole. Demolition is tentatively scheduled to occur in mid-July if the closing date for the sale of 3989 Central Ave can be completed by July 15th. That date is contingent on some of the title pieces being resolved which depends on the date of any court action. Staff is still hopeful this can happen, but we are closing in on that date quickly. Staff is discussing how demolition can still occur if the closing does not happen on July 15th. There are a couple of ways to provide for that, but the developer would pay for the demolition, no matter how it is done. Alatus already has their contract lined up for the demolition, for both the office building and the ramp. The demolition will require the closing of a lane on Central Ave, which requires MnDOT approval. Kevin Hansen, the Public Works Director, is working with Doran on making contact with DOT to obtain the demo permits and the lane closure permits from DOT for that to happen. The construction itself will also likely require closure of a lane on 40th Ave long-term. Hansen is working on that with Anoka County for permitting for the on-going construction to occur. Bourgeois said various legal documents are being reviewed by two attorneys on the City’s behalf and Alatus’ attorneys, which include the TIF Agreement, the Development Agreement, and the Condo Agreement. The Condo Agreement will detail how on-going expenses and maintenance of the property would be split between Alatus and the City. The Condo Agreement must be executed before we can approve any of the other final agreements: the Development Agreement, the Purchase Agreement, and the TIF Agreement. Bourgeois stated that we are getting close to completing the final design for City Hall. Staff’s goal is to get to 95% complete and then the plans would be put on hold until the shell is up and the space is ready for staff and the architects to actually finish the interior layout. Staff, Leo A Daly, and Doran are moving along very quickly and coordinating with one another, as there are so many components that are shared and are reliant on each other. We likely would have waited awhile to finish our design plans if this were not the case. Bourgeois shared that we are saving money by doing them concurrently. Bourgeois said that there is an Xcel electric line that is running underneath where the new building will sit that needs to be moved. The City needs to get into the queue to have it moved, as it will be months till it can be moved once in the queue. Bourgeois shared this will be going before City Council later this evening, as the City will need to pay for the work up front to even get in the queue. Alatus will be paying the city back for this work. The amount to do the work came in around $19k, which is lower than expected. The line services the strip mall across the street from 3989 Central Ave. Bourgeois shared that staff is working on the exterior design currently. Doran had a base price for the design and now we are waiting on them for pricing on some higher end materials, like limestone, to see how much extra it will cost. There will be a difference that will need to be considered or we will need to look at alternative materials to try to make the renderings work. Staff is also looking at landscaping and safety along especially Central and also along 40th Ave where all the windows are. Crash protection will likely be mostly stone benches with some bollards on the 40th Ave side. Trees, the little parklet, and the area to get into City Council chambers are all being planned for right now. Staff is still working with Doran on signage for the sidewalk and driveway into the parking ramp. We are hopefully going to go to MWMO to see if we can get some assistance with heated sidewalks and heated ramp that goes into the parking area. They provided that assistance at the library and it works extremely well. It helps with ice and is a lot less maintenance to maintain during the winter. Buesgens asked if this would be for the sidewalks on 40th and Central, too. Bourgeois said that they are planning to ask for is all along Central, on 40th Ave up to the driveway that goes into the ramp, the ramp entrance, and along Gould where the coffee shop area is. Past that area would be up to Alatus to determine if they want to do that as well. Bourgeois said that Doran provided a draft landscape for the entire area, which is very nicely done. It is very heavy on plants, which will add a lot of greenery to that area, which staff was happy to see. Herringer asked if the hearing will be in Anoka County. Bourgeois said that it would be the venue, which is good for the City. Herringer asked if it was on the 10th. Bourgeois explained that the date had been set for the 10th, but with the change in judge, it will likely be a different date. Herringer asked if we know who the judge is. Bourgeois said that staff does know who the judge will be, but could not recall the name. She said that the City’s attorneys were happy with the judge that was chosen. Buesgens asked what the reason was for changing the judge. Bourgeois said we can only speculate, but we do not know the actual reason that AT&T made this request. Herringer asked who is representing Crown Castle. Bourgeois explain that each party has their own representation. Crown Castle is represented and attorney with Fredrikson & Byron, while AT&T is represented by Brandee L. Caswell at Faegre Drinker. Sprint is a party, but they have not been as actively involved, because they solely decommissioned their equipment. Due to Sprint’s merger with T-Mobile providing them access to a T-Mobile antenna on Parkview Villa, there was no need to re-locate them. Szurek asked how soon Chirpich will be available. Bourgeois said that he should be back in the office tomorrow. Szurek shared that the sound on Zoom was terrible and that she would connect with Chirpich to get a review of the update shared. Motion by Buesgens, seconded by Novitsky, to adjourn the meeting at 6:20 pm. All Ayes. MOTION PASSED. Respectfully submitted, Christy Bennett Secretary City of Columbia Heights Economic Development Authority Financial Reports April 30, 2020 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 City of Columbia Heights Economic Development Authority Financial Reports May 31, 2020 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 Resolution 2020-06 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: Seconded by: Roll Call: President Attest: Assistant Secretary AGENDA SECTION BUSINESS ITEMS ITEM NO. 6 MEETING DATE JULY 13, 2020 CITY OF COLUMBIA HEIGHTS – ECONOMIC DEVELOPMENT AUTHORITY ITEM: Designate the City of Columbia Heights to Act as Agent on Behalf of the EDA for Demolition of 3989 Central Avenue NE. DEPARTMENT: Community Development CITY MANAGER’S APPROVAL: BY/DATE: Aaron Chirpich, July 9, 2020 BY/DATE: BACKGROUND: 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. RECOMMENDED MOTION: Motion: Move 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. AGENDA SECTION PUBLIC HEARING ITEM NO. 7 MEETING DATE JULY 13, 2020 CITY OF COLUMBIA HEIGHTS – ECONOMIC DEVELOPMENT AUTHORITY ITEM: Public Hearing: Approve Land Sale to Alatus LLC for Redevelopment of EDA Owned Property and Approval of TIF Agreement for Same. DEPARTMENT: Community Development CITY MANAGER’S APPROVAL: BY/DATE: Aaron Chirpich, July 9, 2020 BY/DATE: BACKGROUND: 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. RECOMMENDED MOTION: Motion: Move to close the public hearing without taking action.