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HomeMy WebLinkAbout09-08-2020 EDA Minutes ECONOMIC DEVELOPMENT AUTHORITY (EDA) MINUTES OF THE MEETING OF September 8, 2020 The meeting was called to order at 6:00 pm by Chair Szurek. Members Present: Novitsky, Buesgens, Schmitt, Herringer, Murzyn and Szurek. Members Absent: Williams. Staff Present: Aaron Chirpich (Community Development Director), Kelly Bourgeois (City Manager), Mitchel Forney (Community Development Coordinator), and Christy Bennett (Recording Secretary). CONSENT AGENDA 1.Approve the minutes from the meeting of July 13, 2020. 2.Approve Financial Report and Payment of Bills for June and July 2020, Resolution 2020-09. Questions from Members: Herringer asked about the line item for Xcel Energy in the amount of $18,830.48 on page 11 of the June 2020 financials. Chirpich explained this was to pay for the deposit to Xcel Energy to initiate the work necessary to th relocate the power line that will serve the new development at 40 Ave and Central Ave. The payment will cover the design, engineering, and moving the cable. This cost will be reimbursed to the EDA by the developer Alatus through the re-development agreement. Herringer asked about the line item for Carlson McCain Inc in the amount of $24,753.30 on page 4 of the July financials. Chirpich explained that Carlson McCain is the EDA’s consultant on the Root property re- development. They are the environmental cleanup consultant that was hired to complete the scope of work for the project and oversee the contamination cleanup. This was the first payment to Carlson McCain for the work that they have completed so far, which consists primarily of the preparation of the environmental reviews for the property and the submission of the response action plan (RAP) to the MN Pollution Control Agency. The EDA recaptures the majority of these funds through Community Development Block Grant dollars that have already been awarded to the EDA for this project. Motion by Buesgens, seconded by Novitsky to approve the consent agenda as presented. All ayes. MOTION PASSED. 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 Heights Economic Development Authority. ORDER OF ECONOMIC DEVELOPMENT AUTHORITY Passed this 8th day of September, 2020 Offered by: Buesgens Seconded by: Novitsky Roll Call: All Ayes BUSINESS ITEMS 1. Façade Improvement Grant Award Recommendation for VFW Post 230 – Resolution 2020-10 BACKGROUND: Forney explained 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 in 2020. 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 project. 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 installation 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. Questions/comments from members: Buesgens said this is exciting. Motion by Novitsky, seconded by Herringer, to waive the reading of Resolution 2020-10, there being ample copies available to the public. Ayes: Novitsky, Buesgens, Schmitt, Herringer, Szurek Abstain: Murzyn MOTION PASSED Motion by Novitsky, seconded by Herringer, 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. Ayes: Novitsky, Buesgens, Schmitt, Herringer, Szurek Abstain: Murzyn MOTION PASSED 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 thth Central Avenue Northeast, 40 Ave NE, and 38 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 by 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: Novitsky Seconded by: Herringer Roll Call: All Ayes Decertification of Tax Increment Financing District T4 – Resolution 2020-11 2. BACKGROUND: Chirpich shared 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 issued 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. Questions/comments from members: There were no questions/comments. Motion by Buesgens, seconded by Murzyn, to waive the reading of Resolution 2020-11, there being ample copies available to the public. All Ayes. MOTION PASSED. Motion by Buesgens, seconded by Murzyn, 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. All Ayes. MOTION PASSED. 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 Economic Development Authority Budget and Tax Levy – Resolution 2020-12 3. BACKGROUND: Chirpich shared 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. Questions/Comments from members: Herringer asked whether the electrical service at 3989 Central, which has been costing around $1,100 a month for service, is shown in the budgets for funds 204 or 408 that were presented. Chirpich said this would be part of fund 408, though it is not identified as a line item in the specific budget presented this evening. Other redevelopment funds that have been transferred to Fund 408 are being used to pay those bills. The City has been shifting around money from a variety of sources to bolster Fund 408, which has been used to pay those bills. The City will recapture the development funds with the sale of the property, to replenish Fund 408. Motion by Novitsky, seconded by Murzyn, to waive the reading of Resolution 2020-12, there being ample copies available to the public. All Ayes. MOTION PASSED. Motion by Novitsky, seconded by Murzyn, 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. All Ayes. MOTION PASSED. Motion by Buesgens, seconded by Novitsky, to waive the reading of Resolution 2020-13, there being ample copies available to the public. All Ayes. MOTION PASSED. Motion by Buesgens, seconded by Murzyn, 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. All Ayes. MOTION PASSED. 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, thatthe 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, thatthe 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: Novitsky Seconded by: Murzyn Roll Call: All Ayes 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, thatthe 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: Buesgens Seconded by: Murzyn Roll Call: All Ayes Other Updates Chirpich reminded commission members that there will be a special EDA meeting on September 14, 2020 starting at 5:30pm. Motion by Buesgens, seconded by Novitsky, to adjourn the meeting at 6:27 pm. All Ayes. MOTION PASSED. Respectfully submitted, Christy Bennett Secretary