HomeMy WebLinkAbout12-21-2020 EDA Packet
ECONOMIC DEVELOPMENT AUTHORITY SPECIAL MEETING
AGENDA
December 21, 2020
3:00 pm
City Hall
Council Chambers
590 40th Avenue NE
Columbia Heights, MN 55421
NOTICE THAT THIS MEETING MAY BE CONDUCTED 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 & City Council, this
meeting may, pursuant to Minn. Stat. § 13D.021, occur by a combination of in -person and
electronic means. In all meeting formats whether solely in -person or a combination of in-
person and electronic means, members of the public who wish to attend may do so by
attending in-person or by calling 1-312-626-6799 and entering meeting ID 881 1056 7645 at the
scheduled meeting time. If there are any questions about this notice or attending/calling in to
the meeting, please contact the City Clerk at (763) 706-3611.
1. Call to Order
2. Roll Call
3. Pledge of Allegiance
CONSENT AGENDA
4. Approve regular meeting minutes of December 7, 2020.
Motion: Move to approve the Consent Agenda as presented.
BUSINESS ITEMS
5. Approve Amendment to Purchase Agreement for 1002 40th Avenue NE – Resolution
2020-22.
Motion: Move to waive the reading of Resolution 2020-22, there being ample copies
available to the public.
Motion: Move to adopt Resolution 2020-22, a resolution approving an amendment to
purchase agreement for the purchase of 1002 40th Avenue NE.
OTHER BUSINESS
6. Adjourn
ECONOMIC DEVELOPMENT AUTHORITY (EDA)
MINUTES OF THE MEETING OF
DECEMBER 7, 2020
The meeting was called to order at 5:00 pm by Chair Szurek.
Members Present: Novitsky, Buesgens, Schmitt, Herringer, Murzyn, Williams, and Szurek.
Staff Present: Aaron Chirpich (Community Development Director), Mitchell Forney
(Community Development Coordinator), and Shelley Hanson (Recording
Secretary).
PLEDGE OF ALLEGIANCE- RECITED
CONSENT AGENDA
1. Approve the minutes from the meetings of September 28 and October 5, 2020
2. Approve the Financial Reports and Payment of Bills for September and October 2020-Resolution
2020-18.
Questions from Members:
Herringer commented that he liked the new format for the financial reports. He questioned the payments to
Xcel Energy on check #181975. Chirpich stated this was for the parking ramp by the medical clinic.
Herringer then asked about the payment to Sprint on check # 182163. Chirpich responded that this was the
settlement payout for the tower relocation issue. The payment to AT & T (check #182180) was the first
payment as part of the settlement also. They will have another one next year. And the two payments to Crown
Castle were part of the settlement to them also (paid from two different funds). The remainder of their
settlement is the construction of the new tower and their right to continue leasing space on the tower.
Motion by Buesgens, seconded by Williams, to approve the consent agenda as presented.
All ayes. MOTION PASSED.
RESOLUTION NO. 2020-18
A RESOLUTION OF THE ECONOMIC DEVELOPMENT AUTHORITY OF COLUMBIA HEIGHTS,
MINNESOTA, APPROVING THE FINANCIAL STATEMENTS FOR THE MONTHS OF
SEPTEMBER AND OCTOBER 2020, AND THE PAYMENT OF THE BILLS FOR THE MONTHS OF
SEPTEMBER AND OCTOBER 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 September and October, 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
EDA
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Dec 7, 2020
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 7th day of December, 2020
Offered by: Buesgens
Seconded by: Willliams
Roll Call: All ayes
President
Attest:
Assistant Secretary
BUSINESS ITEMS
1. Approve CEE Contract for Home Energy Squad Services-Resolution 2020-19
Forney explained that in April 2019 the EDA Approved a partnership with the Center for Energy and
Environment (CEE) to provide subsidized home energy inspections through CEE’s Home Energy Squad
program. This program was renewed in 2020 and has seen 51 households take advantage of the subsidized
home visits. In the past 2 years the City has funded the program with a max contribution of $5,000 per year.
CEE offers two different types of visits under its home energy program. Energy Saver visits cost $70 and
include an insulation inspection, safety check on heating and water systems, and the direct install of energy-
saving materials where possible, including high-efficiency showerheads, faucet aerators, door weather stripping,
programmable thermostats, and LED light bulbs. Energy Planner visits cost $100 and include everything
offered in an Energy Saver visit plus a blower door test to check for air leaks, visual inspection of insulation
levels with use of infrared camera, heating system and hot water heater combustion safety tests, and a report to
the homeowner on recommended energy upgrades.
EDA
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Dec 7, 2020
For the last two years the EDA has only funded the Energy Planner visits, formerly called the Enhanced Visit,
in an attempt to influence homeowners to take advantage of the more robust program. Due to the fact that the
EDA’s contribution has been underutilized for the last two years, Community Development staff recommends
funding both programs during this agreement cycle. Once the program reaches its potential of serving 100
households per year, the contribution may be altered again to refocus on the Energy Planner visits. If approved
the City would subsidize both types of visits by 50 percent, $35 for Energy Saver visits and $50 for Energy
Planner Visits.
The agreement included with this letter has a term length of three years. CEE recently re-negotiated their
partnership with Excel energy and has signed a new three year agreement to operate the Home Energy Squad
Program. CEE has requested that future agreements follow the agreement cycle they have with Excel Energy so
that all their partnerships are renewed at the same time.
STAFF RECOMMENDATION:
Staff recommends approving Resolution 2020-19, a resolution approving an agreement with the Center for
Energy and Environment to subsidize Home Energy Squad visits.
Questions/comments from members:
Buesgens stated that it’s a good idea to keep this program in place.
Szurek asked if we would be adding an additional $5,000 to the program for 2021 or if the leftover funds would
help offset that amount to keep the annual program cost to $5,000. Chirpich said the remaining funds from
2020 will be carried forward (approximately $2,500), and additional funds would be added to bring the 2021
working capital to $5,000. She stated residents probably were skeptical of participating in this program during
2020 due to covid, and were apprehensive about letting people in their homes to conduct the audits. Hopefully
we will get more residents to take advantage of this program going forward.
Novitsky asked if the EDA is approving $5,000 per year maximum for the entire three years period now, or if
this will be brought back to them every year. Chirpich stated this is approval for the three year period and there
is no need to come back till 2023.
Schmitt clarified that only approximately $2,500 will be needed to fund the program for 2021. Chirpich stated
that was correct.
Motion by Schmitt, seconded by Novitsky, to waive the reading of Resolution 2020-19, there being ample copies
available to the public. All ayes MOTION PASSED.
Motion by Schmitt, seconded by Novitsky, to adopt Resolution 2020-19, a resolution of the Columbia Heights
Economic Development Authority approving the agreement with the Center for Energy and Environment to
perform Home Energy Squad visits. All ayes. MOTION PASSED.
EDA
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Dec 7, 2020
This is the Agreement we will enter into with “CEE”, along with the approved Resolution 2020-19.
AGREEMENT to Perform
Home Energy Squad Visits
In the City of Columbia Heights
This Agreement is made by and between the Columbia Heights Economic Development (“EDA”) with offices at 590 40th
Ave NE Columbia Heights, MN 55421and the Center for Energy and Environment (“CEE”), with offices at 212 3rd
Avenue North, Suite 560, Minneapolis, Minnesota 55401.
The following agreement is for the Center for Energy and Environment (CEE) to deliver Home Energy Squad Planner
visits to residents of the City of Columbia Heights.
PROGRAM SCOPE
The purpose of the Home Energy Squad visits is to promote energy conservation in residential properties. Energy Saver
visits offer energy efficient installs, and Energy Planner visits offer installs, diagnostic tests, and follow -up services. CEE
will perform Home Energy Squad Energy Saver and Energy Planner visits for residents per the fee schedule listed below.
ELIGIBLE
PROPERTI
ES
Properties must be residential (from 1-4 units) and located within the geographical boundaries of the City of Columbia
Heights. Individual owners of condominiums or town homes are eligible for funding.
CEE TASKS
1. Conduct Home Energy Squad Energy Saver Visits. CEE will conduct Home Energy Squad Energy Saver visits
to help homeowners identify and implement energy savings opportunities in their homes. The visit will include an
insulation inspection, safety check on heating system and water, and the direct install of energy-saving materials
where possible, including high-efficiency showerheads, faucet aerators, door weather stripping, programmable
thermostats and LED light bulbs.
2. Conduct Home Energy Squad Energy Planner Visits. CEE will conduct Home Energy Squad Energy Planner
visits to help homeowners identify and implement energy savings opportunities in their homes. The Energy
Planner visit will include the direct install of energy-saving materials where possible, including high-efficiency
showerheads, faucet aerators, door weather stripping, programable thermostats and LED light bulbs. In addition, it
will include a blower door test to check for air leaks, visual inspection of insulation levels with use of infrared
camera as weather permits, heating system and hot water heater combustion safety tests and a report to the
homeowner on recommended energy upgrades (if resident is a renter, permission from the landlord may be
required for doing these additional diagnostic services).
The co-pay and exact package of services are subject to change based on programmatic considerations, including
CEE’s agreement with utilities and other factors which are outside the bounds of this agreement. CEE will notify
the Columbia Heights EDA prior to any changes taking effect. CEE will lead a community-based marketing
campaign to promote the program. The Columbia Heights EDA shall provide assistance in developing and
implementing this campaign.
3. Providing Air Sealing and Insulation quotes. If air sealing and/or insulation are recommended at a Home
Energy Squad Energy Planner visit, CEE may provide a quote to the resident that would be honored by
participating insulation contractors. CEE is an independent third party to any transaction between the resident and
Type of Home Energy Squad Visit EDA payment Resident co-pay
Energy Saver visit $35 $35
Energy Planner visit $50 $50
EDA
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Dec 7, 2020
4. the insulation contractor. CEE does not receive any compensation from insulation contractors, nor does CEE,
CenterPoint Energy or Xcel Energy accept any liability for any work performed by these contractors. Any
agreement for work done by the contractors is solely between the contractor and the resident.
5. Follow-up services and insulation contractor assistance. If major upgrades (air sealing, insulation and furnace
or boiler replacement) are recommended at the visit, CEE will follow-up with homeowners through email or by
phone to encourage implementation. When a quote is provided CEE has the ability to schedule insulation work
directly with a qualified contractor making it easier for homeowner to move forward with recommendations. CEE
will also provide contact information to program participants who have follow-up questions after the home visit.
CITY TASKS
1. Assist and coordinate with CEE on marketing activities. This includes working with CEE on press releases,
articles in CITY newsletters, water bill inserts, promoting program on CITY website, CITY email lists, assistance
in coordinating with neighborhood and other CITY leaders, assistance in reserving workshop and event space as
needed.
PAYMENT
CEE shall submit regular invoices to the Columbia Heights EDA for activity performed under this agreement. Invoices
will be emailed to the Community Development Department.
The Columbia Heights EDA will reimburse CEE $35 for every Energy Saver visit and $50 for every Home Energy Squad
Planner visit completed not to exceed $5,000 per year without further authorization from the EDA.
CONTACTS
The following individuals shall be contacts for this program:
COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT CONTACT PERSON
Aaron Chirpich
Community Development Department, City of Columbia Heights
achirpich@columbiaheightsmn.gov 763-706-3670
CEE CONTACT PERSON
Stacy Boots Camp, Center for Energy and Environment
Assistant Outreach Manager
sbootscamp@mncee.org or 612-244-2429
TERM
The project shall run from January, 1 2021 through December 31, 2023 and may be extended upon mutual agreement by
the parties.
In witness thereof, the parties have executed this work order as of the date written below.
COLUMBIA HEIGHTS ECONOMIC
DEVELOPMENT AUTHORITY
CENTER FOR ENERGY AND
ENVIRONMENT
By: By:
Date: Date:
TAX ID 41-1647799
EDA
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Dec 7, 2020
RESOLUTION NO. 2020-19
A RESOLUTION OF THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY
APPROVING THE AGREEMENT WITH THE CENTER FOR ENERGY AND ENVIRONMENT TO
PERFORM HOME ENERGY SQUAD VISITS.
BE IT RESOLVED BY the Board of Commissioners of the Columbia Heights Economic Development
Authority (the "EDA") as follows:
WHEREAS, the EDA has determined that it is necessary and desirable to promote energy conservation within
the City of Columbia Heights (the “City”); and
WHEREAS, the EDA has continually supported the partnership with the Center for Energy and Environment
(“CEE”) to work towards a more energy efficient city; and
WHEREAS, the EDA has reviewed the Agreement to Perform Home Energy Squad Enhanced Visits in the
City (the “Agreement”) and has determined to partner with CEE for the purposes of subsidizing home energy
squad visits, lowering energy costs of residential properties, and increasing the City’s energy efficiency;
NOW, THEREFORE BE IT RESOLVED that the EDA hereby approves the form and substance of the
Agreement in the form presented; and
BE IT FURTHER RESOLVED, that Kelli Bourgeois, as the Executive Director of the EDA is hereby
authorized, empowered and directed for and on behalf of the EDA to enter into the Agreement and take such
action as deemed necessary and appropriate to carry out the purpose of the foregoing resolution.
ORDER OF ECONOMIC DEVELOPMENT AUTHORITY
Passed this 7th day of December, 2020
Offered by: Schmitt
Seconded by: Novitsky
Roll Call: All ayes
President
Attest:
Assistant Secretary
2. Approve Hazardous Material Abatement Contract for 230 40th Avenue NE
Forney told members this contract being considered is to approve a bid for the removal of hazardous material from
230 40th Avenue NE. In December of 2019 the EDA purchased the property located at 230 40th Ave through the
Commercial Revitalization Program. It was the ultimate goal of the EDA to demolish the blighted single family
residential house on the property and prepare the site for future redevelopment. The House itself will not be
demolished until the spring of 2021 after the structure has been utilized for training by the Fire Department.
EDA
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Dec 7, 2020
The scope of work submitted in the bid request included the removal of asbestos containing materials, appliances,
and accessories containing hazardous materials. In response to the request for bids, the EDA received 2 quotes. The
quote submitted by Hummingbird Environmental LLC was determined to be the lowest qualified bid. For $1,500
Hummingbird Environmental LLC shall furnish the services and necessary equipment to complete all work specified
in the scope of work. All work will be performed in accordance with OSHA regulations, Minnesota Department of
Health Asbestos Abatement Rules, and other applicable Federal and State regulations. Hummingbird Environmental
LLC shall insure proper clean up, transport, and disposal of hazardous and asbestos containing materials.
Bid Spreadsheet:
Company Total
Dennis Environmental
Operations
$ 2,000.00
Hummingbird
Environmental LLC
$ 1,500.00
STAFF RECOMMENDATION:
Staff recommends awarding the contract to the low bidder for abatement work at 230 40th Ave NE to Hummingbird
Environmental LLC.
Questions/comments from members:
There were no questions.
Motion by Buesgens, seconded by Williams, to accept the low bid from Hummingbird Environmental LLC, for the
removal of all hazardous materials located at 230 40th Avenue NE; and furthermore, to authorize the President and
Executive Director to enter into an agreement for the same. All ayes. MOTION PASSED.
A copy of the contract is as follows:
EDA IN AND FOR THE CITY OF COLUMBIA HEIGHTS CONTRACT FOR REMOVAL OF ASBESTOS,
AND OTHER HAZARDOUS MATERIALS FROM 230 40th AVE NE, COLUMBIA HEIGHTS
For valuable consideration as set forth below, this Contract dated the __ day of December, 2020, is made and
entered into between the Economic Development Authority in and for the City of Columbia Heights, a public body
corporate and political created pursuant to the laws of the State of Minnesota ("EDA ") and Hummingbird Environmental
LLC. a Minnesota Limited Liability Company ("Contractor").
1. CONTRACT DOCUMENTS
Contractor hereby promises and agrees to perform and comply with all the provisions of this Contract and the
Proposal dated November 6, 2020, prepared by Contractor attached hereto as Exhibit A for the removal of asbestos-
containing materials, and removal of other hazardous materials in preparation for demolition of the residential property
located at 230 40th Ave NE, Columbia Heights, Minnesota (“Property”). The survey prepared by Angstrom Analytical,
Inc. dated June 30, 2020 (“Survey”) identifies certain hazardous materials that shall be removed by Contractor from the
Property and is attached hereto as Exhibit B. The Contract, Proposal and Survey shall comprise the total agreement of
the parties hereto. No oral order, objection, or claim by any party to the other shall affect or modify any of the terms or
obligations contained in this Contract.
EDA
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Dec. 7, 2020
2. THE WORK
The work to be performed by Contractor under this Contract (hereinafter the "Work"), is defined in the Proposal
as removal of asbestos-containing materials, and removal of hazardous and solid waste materials identified on the Survey,
excluding the fuel tanks, in preparation for demolition of the residence located on the Property. As part of the Work,
Contractor agrees to remove all excess material from the Property.
3. CONTRACT PRICE
The EDA agrees to pay Contractor the sum of $1,500.00 in exchange for Contractor furnishing labor and
materials for the Work at the Property, payable within 30 days of Contractor’s completion of the Work.
Contractor may start work on this project upon its execution of this Contract.
4. COMPLETION DATE/LIQUIDATED DAMAGES
Contractor shall complete all Work on or before January 30th, 2021. ("Completion Date"). Due to the difficulty in
ascertaining and establishing the actual damages which the EDA would sustain, liquidated damages are specified as
follows for failure of Contractor to complete his performance under this Contract by the Completion Date: for every
calendar day that the Contract shall remain uncompleted beyond the Completion Date of January 30th, 2021, Contractor
shall pay the EDA $50.00 per day as liquidated damages.
5. INSURANCE
Before beginning actual work under this Contract, Contractor shall submit to the EDA and obtain the EDA's
approval of a certificate of insurance on Standard Form C.I.C.C.-701 or ACORD 25 forms, showing the following
insurance coverage, and listing the EDA and City as a loss payee under the policies:
a. General Contractor Liability: $1,000,000.00
b. Workman's Compensation: Statutory Amounts
This certificate must provide for the above coverages to be in effect from the date of the Contract until 30 days after the
Completion Date, and must provide the insurance coverage will not be canceled by the insurance company without 30
day’s written notice to the EDA of intent to cancel. The certificate must further provide that Contractor’s insurance
coverage is primary coverage notwithstanding any insurance coverage carried by the City or EDA that may apply to
injury or damage relating to the maintenance or repair of the City streets or rights -of-way by either the City, EDA or any
employee, agent, independent contractor or any other person or entity retained by the City or EDA to perform the services
described herein. All insurance is subject to the review and approval of the Columbia Heights City Attorney.
6. LAWS, REGULATIONS AND SAFETY
Contractor shall give all notices and comply with all laws, ordinances, rules and regulations applicable to
performance under this Contract. Contractor shall provide adequate signs and/or barricades, and will take all necessary
precautions for the protection of the Work and the safety of the public.
7. INDEMNIFICATION
To the fullest extent permitted by law, Contractor shall indemnify and hold harmless the EDA, its agents and
employees from and against all claims, damages, losses and expenses, including but not limited to attorney's fees, arising
out of or resulting from the performance of Work, provided that any such claim, damage, loss or expense (1) is
attributable to bodily injury, sickness, disease or death, or to injury or to destruction of tangible property (other th an the
Work itself) including the loss of use resulting therefrom, and (2) is caused in whole or in part by any negligent act or
omission of Contractor, any Subcontractor, anyone directly or indirectly employed by any of them or anyone for whose
acts any of them may be liable, regardless of whether or not it is caused in part by a party indemnified hereunder.
EDA
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Dec 7, 2020
8. ASSIGNMENT
Contractor shall not assign or transfer, whether by an assignment or novation or otherwise, any of its rights,
duties, benefits, obligations, liabilities or responsibilities without prior written consent of the EDA.
9. NOTICE
The address and telephone number of Contractor for purposes of giving notices and any other purpose under this
Contract shall be 522 Concord Street North, Suite 400, South St. Paul, MN 55075, 651-457-4699.
The address of the EDA for purposes of giving notices and any other purposes under this Contract shall be 590
40th Avenue NE, Columbia Heights, MN 55421.
IN WITNESS WHEREOF, the parties to this Contract have hereunto set their hands and seals as of the day and
year first above written.
ECONOMIC DEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF COLUMBIA HEIGHTS
By: ____________________________________
Kelli Bourgeois
Its: Executive Director
Hummingbird Environmental LLC.
By: ____________________________________
Its: ____________________________________
3. Approve Service Agreement with TimeSaver Off Site Secretarial Inc.
Chirpich explained that the Community Development department has made the move to one full time
Administrative Assistant over the past year. This position is responsible for all administrative duties serving the
department, including work that supports the activities of the EDA. To accommodate the move to a single
Administrative Assistant, the workload for the position needs to be reduced or streamlined wherever possible.
To achieve this objective, staff recommends that the EDA contract with TimSaver Secretarial to complete
meeting minutes on behalf of the EDA. TimeSavers currently provide minute taking services for the City
Council, and they have proposed adding the EDA to the City’s base contract. The company will use video
recordings of EDA meetings to complete the work. Timesavers will bill the EDA separately from the City
according the terms of the attached rate schedule. Rates will vary and the price sheet was included in the agenda
packets. Chirpich stated that the City Council meetings average about $200 per meeting.
STAFF RECOMMENDATION:
Staff recommends approving the proposed Timesaver Secretarial 2021 rate schedule as presented for minute
taking services.
EDA
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Dec 7, 2020
Questions/comments from members:
There were no questions regarding this matter.
Motion by Novitsky, seconded by Murzyn, to approve the 2021 rate schedule proposed by TimeSaver Off Site
Secretarial, Inc. to provide minute taking services for the EDA in 2021; and furthermore, to authorize the
Executive Director to enter into an agreement for the same. All ayes. MOTION PASSED.
4. Approve Acquisition of 960 40th Ave NE and 1002 40th Ave NE-Resolution 2020-20 & 2020-21
Chirpich explained that during the predevelopment planning phase for the 3989 Central redevelopment project,
it became clear that the acquisition of 960 40th Avenue NE was necessary for the successful completion of the
larger project. The necessity to acquire 960 40th Avenue is driven by its close proximity to the redevelopment
site and the need to maintain alley access to nearby properties during construction.
Chirpich told members that the single-family home located at 960 40th Avenue sits just four (4) feet from the
western property line that adjoins the redevelopment site. Directly west of the house and five feet from the
property line of 960 40th Avenue there is a narrow alley. This alley serves as an access point to the garages of
two additional homes in the immediate vicinity. Beneath the alley lies a City storm sewer line that has to be
relocated as part of the broader redevelopment project. To keep the project on schedule, this sewer line has to be
relocated at the beginning of the project. Removal and relocation of the current storm sewer line requires
removal of the alley. Because the alley is so close to the primary excavation for the underground parking
structure of the new development, the alley will be removed for a long period of time and the hole where the
alley used to be will be over 10 feet deep. Therefore, to maintain access for the other homes nearby that utilize
the alley for their garages, a new access point is required. To achieve the new access point, Alatus has
purchased the property at 960 40th Avenue and they have torn down the former detached garage that was on the
site. Removal of the garage has allowed access for the adjacent property owners to be achieved along the
eastern side of 960 40th Avenue, effectively bypassing the former narrow alley.
Alatus originally approached staff in June of 2020 to see if the EDA could entertain the purchase of 960 40th
Avenue at that time, as Alatus had reached out to the owner and determined that the owner was interested in
selling. Staff responded to Alatus by stating that the EDA could not consider the purchase because the EDA’s
redevelopment funds were tied up in the purchase of the 3989 Central Avenue redevelopment site. Staff did
indicate that 960 40th Avenue would be a property of interest to the EDA once the closing of 3989 Central was
completed.
Now that the EDA has closed on the sale of the redevelopment site to Alatus, staff recommends moving
forward with the acquisition of 960 40th Avenue. Staff considers the property to be a priority acquisition for
redevelopment given the poor condition of the home and its close proximity to the new development. Alatus has
purchased the property for $225,000 and has paid the former owner an additional $55,000 in relocation
assistance, for a total investment of $280,000. The tax assessed value of the property is $185,000. Alatus has
offered the property to the EDA for $225,000. Staff considers this a fair deal given the fact that the acquisition
was necessary to ensure the success of the larger project, and Alatus has agreed to cover the relocation
expenses. Staff has no immediate plans for redevelopment of the site, as additional adjacent properties will have
to be acquired to assemble enough land for a larger project.
EDA
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Dec 7, 2020
BACKGROUND – 1002 40th Avenue:
1002 40th Avenue is located just east of 960 40th Avenue and was offered for sale on 11-20-20 with a list price
of $165,000. This property was formerly used as a duplex, but most recently was being used as a single family
home. The listing agent indicated that there were multiple pending offers on the first day it was listed and
informed staff that no offers would be reviewed until 11-23-20. Staff submitted an offer of $175,000 on 11-23-
20, and the offer was accepted the next day. The seller received multiple offers for the home, and indicated that
the EDA’s offer was not the highest price offer received. The other higher price offers were viewed as less
secure than the EDA’s. The tax assessed value of the property is $172,000. Staff considers this potential
acquisition to be a priority given its proximity to the 3989 Central Avenue redevelopment site, and the 960 40th
Avenue property discussed above. Chirpich acknowledged that the EDA/City would still need to acquire the
three properties in between 960 and 1002 40th Ave, and possible one property on Gould, in order to create a
redevelopment site, but it is working toward that goal.
STAFF RECOMMENDATION:
Staff recommends that the EDA approve the purchase of both properties as part of a strategic land acquisition
effort that will promote additional redevelopment in the immediate vicinity of the 3989 Central Avenue site. In
addition to the base acquisition price of each home, staff anticipates that demolition and site clearing costs for
both properties combined will total $50,000, bringing the total project budget to $450,000. Funding will come
from the EDA redevelopment Fund 408. There are adequate funds to cover this expense, but it will commit
most of the 2021 amount with these transactions.
Questions/comments from members:
Buesgens asked what kind of redevelopment Chirpich envisioned for this site. He responded that possibly a
smaller multi-unit development such as a couple of two story, tri-plex buildings. He said he would not
recommend constructing single family homes on the lots. Buesgens asked if staff had engaged in a
conversation to see if the three property owners in between are interested in selling. Chirpich stated that staff
has not approached them thus far.
Buesgens thinks the City Council should have a conversation about its policy regarding relocation fees. There
was a discussion about the history of the City being reluctant to cover these expenses, and it being an “unwritten
policy” to avoid it if possible. She thinks the topic needs to be re-visited in order to speed up the acquisition
process for future redevelopment areas such as this one. Chirpich told members that it is usually easier to
negotiate terms for relocation with single family home owners than it is for apartment building owners/tenants
due to the number of renters involved.
Szurek thought it was a good opportunity to pick up these properties while we have the chance to do so.
Herringer said the City avoided paying relocation fees when buying the old Mady’s bowling alley site by
waiting until all the tenants had vacated the space on their own. It was noted, this becomes a more expensive
issue when dealing with commercial property versus residential.
EDA
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Dec 7, 2020
Motion by Buesgens, seconded by Schmitt, to waive the reading of Resolution 2020-20, there being ample
copies available to the public. All ayes. MOTION PASSSED.
Motion by Buesgens, seconded by Schmitt, to adopt Resolution 2020-20, a resolution approving the purchase
agreement between the Columbia Heights Economic Development Authority and Alatus, LLC. All ayes.
MOTION PASSED.
Motion by Novitsky, seconded by Murzyn, to waive the reading of Resolution 2020-21, there being ample copies
available to the public. All ayes. MOTION PASSED.
Motion by Novitsky, seconded by Murzyn, to adopt Resolution 2020-21, a resolution approving the purchase
agreement between the Columbia Heights Economic Development Authority and Lori Gibson. Roll Call Vote:
COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY
RESOLUTION NO. 2020-20
RESOLUTION APPROVING PURCHASE AGREEMENT BETWEEN THE COLUMBIA HEIGHTS
ECONOMIC DEVELOPMENT AUTHORITY AND ALATUS, LLC
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 Alatus, LLC (“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 960 40th 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 $225,000 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 substandard 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 in researching the Property and
preparing and presenting the Purchase Agreement. The Authority approve s 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.
EDA
Page 13
Dec 7, 2020
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 7th day of December, 2020, by the Board of Commissioners of the Columbia Heights Economic
Development Authority.
_________________________________
President
ATTEST:
__________________________________
Secretary
EXHIBIT A
PROPERTY
Lot 23, Block 6, Reservoir Hills, Columbia Heights, Anoka County, Minnesota
COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY
RESOLUTION NO. 2020-21
RESOLUTION APPROVING PURCHASE AGREEMENT BETWEEN THE
COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY AND
LORI GIBSON
BE IT RESOLVED BY the Board of Commissioners ("Board") of the Columbia Heights Economic
Development Authority (the "Authority") as follows:
Section 2. Recitals.
1.01. The Authority and Lori Gibson (“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 1002 40th 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 $175,000 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 substandard property, and that such acquisition will facilitate the economic redevelopment and
revitalization of this area of the City.
EDA
Page 14
Dec 7, 2020
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 7th day of December, 2020, by the Board of Commissioners of the Columbia Heights Economic
Development Authority.
_________________________________
President
ATTEST:
__________________________________
Secretary
EXHIBIT A
PROPERTY
Lot 19, Block 6, Reservoir Hills, Anoka County, Minnesota.
OTHER BUSINESS
The next regularly scheduled meeting is January 4, 2021.
Motion by Buesgens, seconded by Murzyn to adjourn the meeting at 5:48 pm.
Respectfully submitted,
Shelley Hanson
Secretary
AGENDA SECTION BUSINESS ITEM
ITEM NO. 5
MEETING DATE DECEMBER 21, 2020
CITY OF COLUMBIA HEIGHTS – ECONOMIC DEVELOPMENT AUTHORITY
ITEM: Approve Amendment to Purchase Agreement for 1002 40th Avenue NE
DEPARTMENT: Community Development CITY MANAGER’S APPROVAL:
BY/DATE: Aaron Chirpich, December 18, 2020 BY/DATE:
BACKGROUND
The EDA approved the purchase of 1002 40th Avenue NE on December 7, 2020. Following approval by the
EDA, staff began to prepare for the closing. During review of the transaction by the title company representing
the City, an issue was identified with the purchase agreement.
The sale of 1002 40th is being managed by the daughter of the current owners who have recently moved into
an assisted living facility. The daughter is acting in the capacity of Attorney-In-Fact to complete the transaction
for her parents. The purchase agreement that was prepared by the listing agent representing the seller
indicates only the daughter as seller. The title company and the City’s redevelopment counsel both agree that
the actual owners need to be represented on the purchase agreement. To clear up the discrepancy, the City’s
realtor representative has prepared the attached amendment to the purchase agreement. The amendment
has been reviewed and approved by title and the City’s redevelopment counsel.
STAFF RECOMMENDATION:
Staff recommends approving the amendment to the purchase agreement as presented.
RECOMMENDED MOTION(S)
Motion: Move to waive the reading of Resolution 2020-22, there being ample copies available to the public.
Motion: Move to adopt Resolution 2020-22, a resolution approving an amendment to purchase agreement for
the purchase of 1002 40th Avenue NE.
ATTACHMENTS:
Resolution 2020-22
Purchase Agreement Amendment
EDA RESOLUTION NO. 2020-22
RESOLUTION APPROVING AN AMENDMENT TO
PURCHASE AGREEMENT FOR THE PURCHASE OF 1002
40TH AVENUE NE
BE IT RESOLVED BY the Board of Commissioners ("Board") of the Columbia Heights
Economic Development Authority, Columbia Heights, Minnesota (the "Authority") as follows:
Section 1. Recitals.
1.01. On December 7, 2020, the Authority adopted its Resolution No. 2020-21,
approving a purchase agreement (the “Purchase Agreement”) between the Authority and Lori
Gibson for the purchase by the Authority of certain property located at 1002 40th Avenue NE in
the City of Columbia Heights (the “Property”), described in Exhibit A attached hereto.
1.02. The parties have determined that it is necessary to amend the Purchase Agreement
to clarify that the fee owners of the Property are Jerome Earl Swanson and Mary C. Swanson,
married to each other (“Sellers”), and that Lori Gibson serves as Attorney-In-Fact to the Sellers.
1.03. The parties have negotiated and propose to execute an Amendment to the
Purchase Agreement (the “Amendment”), pursuant to which the Sellers are correctly identified
and the power of attorney of Lori Gibson is acknowledged.
Section 2. Amendment Approved.
2.01. The Amendment as presented to the Board is hereby in all respects approved,
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 Amendment by such
officials shall be conclusive evidence of approval.
2.02. The President and Executive Director are hereby authorized to execute on behalf
of the Authority the Amendment and any documents necessary to acquire the Property from the
Sellers, and to carry out, on behalf of the Authority, its obligations thereunder.
2.03. Authority staff and consultants are authorized to take any actions necessary to
carry out the intent of this resolution.
Approved this 21st day of December, 2020, by the Board of Commissioners of the Columbia
Heights Economic Development Authority.
_____________________________
President
ATTEST:
____________________________
Secretary
EXHIBIT A
Property
Lot 19, Block 6, Reservoir Hills, Anoka County, Minnesota.
Abstract property.