The URL can be used to link to this page

Home My WebLink About09-28-05 Work Session PacketCOLUMBIA HEIGHTS CITY COUNCIL LETTER Meeting of: September 28, 2005 AGENDA SECTION: ORIGINATING DEPARTMENT: CITY NO: Community Development MANAGER'S APPROVAL ITEM: BY: Robert Streetar BY: DATE: September 22, 2005 BACKGROUND The purpose of this memorandum is to recommend to the City Council next steps to address the issues and concerns found in the Heritage Heights Neighborhood, specifically a plan for the renewal and redevelopment of this neighborhood to secure the long-term viability of this valuable part of the City. June 21, 2005 City Council work session Residents of the neighborhood shared their concerns regarding the condition of the neighborhood. Resident concerns centered on crime, poor personal resident behavior, poor property image, and lack of property investment. These concerns echoed those expressed by residents in the early 1990's, which led to the creation of the Sheffield Redevelopment Plan in 1994 and implementation in 1995. Sheffield Redevelopment Plan - 1994 In 1994, the City of Columbia Heights implemented a neighborhood revitalization plan to address the concerns of residents living in this neighborhood. The red line on the attached map identifies the revitalization area known as the Sheffield neighborhood. Specifically, the concerns centered on three themes, they were: 1. The intensity of duplex and multi -family housing in the neighborhood and the lack of upgrading and maintenance; 2. The need for either substantial upgrading or removal of blighted single-family homes, duplex, and multifamily units; 3. The need for buffer areas between the commercial developments along Central Avenue and the residential properties to the west. The neighborhood had been in decline for 10 years. Property values on single-family homes, duplexes and multifamily had been declining. Parcels, that had homes removed and marketed for new development, remained vacant. In addition, significant police resources were employed to stabilize the neighborhood. Subsequently, this neighborhood implicated the rest of the City as a questionable place to move to and raise a family or remain. Subsequently, the City responded agreeing to implement five strategies, which were to: 1. Acquire 20 duplexes and remove or renovate into single-family homes. 2. Promote turning back rental duplexes into owner -occupied units. The City would acquire the units, rehab them, and then sell them to new homeowners. 3. Provide loans/grants to encourage property owners to improve their properties. 4. Provide financial incentives to encourage the creation of a buffer area between the commercial properties and the residential properties on the east side of Central Avenue. 5. Acquire and demolish and/or renovate multi -family buildings. Of the five strategies, the City only implemented the first, resulting in 18 new single-family homes built in 1995. This area is shown in green on the attached map. July 19. 2005 City Council work session The Council directed staff to recommend a planning process for the potential renewal and redevelopment of the Heritage Heights Neighborhood. Planning Process Staff recommends entering into a six-month planning process with assistance from the planning firm of Dahlgren, Shardlow and Uban (DSU). DSU assisted the City with the planning of Grand Central Lofts in 2003. The planning process would begin in October and end no later than April 2006. The planning process would consist of: • Establishing a resident redevelopment advisory committee to the City Council as was done in the Kmart redevelopment planning process. Reviewing the redevelopment area characteristics and related opportunities and constraints. • Determining the redevelopment potential for different types of uses such as residential, commercial office and retail through a market study. • Developing feasible redevelopment scenarios for advisory committee and Council review and feedback. • Determining the public actions necessary to implement the preferred concept such as amending the Comprehensive Plan and Zoning Ordinance. • Presenting to the City Council with a preferred redevelopment concept and authorization to implement to the concept by soliciting developer interest. Please note, since July, DSU has assisted the citizens of Hilltop to prepare potential redevelopment concepts along Central Avenue. The concepts have included new commercial, and housing. Given the planning Hilltop is undertaking, and the new Grand Central Lofts development, this planning effort for the renewal and redevelopment of the Heritage Heights Neighborhood, represents a good opportunity to make a significant impact in the area along Central Avenue in both Columbia Heights and Hilltop. The quoted approximate cost for this planning effort is $50,000, which is the same cost as the planning efforts that were undertaken for the redevelopment of the Kmart site and the redevelopment of the industrial park. Early Acquisition of Property There has been some discussion of the City acquiring properties when they are voluntarily placed for sale as a means to facilitate the improvement of the neighborhood. Please find attached information provided by Ehlers and Associates regarding a five million dollar bond issue, the proceeds of which could be used to acquire, demolish and relocate occupants of up to 20 properties. As the attached information shows the annual debt service, to include principal and interest, would be $277,700. Increasing or decreasing the bond amount would increase or decrease the debt service. Selling bonds at the point represents a greater risk in that if a redevelopment project did not occur the debt would become an obligation of all residents in Columbia Heights. Staff recommends the Council wait until the planning process is complete to consider selling bonds for the early acquisition of property. Doing so would ensure that the bonds could be repaid from the tax increment needed to assist the redevelopment and not the residents. It is important realize that any redevelopment will occur over the next 3 to 5 years as this is a considerable undertaking. It is also important to move quickly and deliberately to implement the planning process so that by late spring or early summer 2006 the City can begin to implement a plan and begin to make a difference for the residents in this neighborhood as well as protect the private and public investment made in the Grand Central Lofts development. RECOMMENDATION: Staff recommends working with DSU to prepare a renewal and redevelopment plan for the Heritage Heights Neighborhood. Staff also recommends waiting until the planning process is complete to consider selling bonds for the early acquisition of property COUNCIL ACTION: h:\Consent2002\CL consent2002\ HERITAGE HEIGHTS NEIGHBORHOOD Grand Central Lofts 4657 1 4656 4655 4660 4657 4653 950 4654 4653 4648 4651 4648 4651 4647 4640 4642 4645 4641 4641 4634 4647 4636 4637 4633 4628 J 4633 4628 � 4641 �� 0 4633 4625 a 4635 4624 Q 4624 4621 4616 46 % 4629 4616 4619 4615 4618 4617 4613 4612 i 4613 4605 4607 4606 4607 4600 = 4601 46TH 4556 4555 4556 4557 4554 4555 P4536 4549 4546 4549 4548 549 4545 4541 4537 1542 4543 4540 � 4535 4532 4535 Y 4536 O} 4529 4526 J 4529 Oa 4525 4534 4525 4522 4521 4530 4511 4518 4520 4519 4519 4517 4510 4511 4514 4515 4516 4513 4508 4509 4510 450 4501 1 4507 4501 1025 1035 4500 111 45TH Legend 1994_Redevelopment Owner -Occupied Rental J 1995 Redevelopment j 4655 4653 4650 1480 46451400 4644 r41643 1440 4650 4649 4639 4636 4643 4637 w 4633 4632 o u� o� rn O1 N �' m 4636 z p v 4631 ? U) 4631 2 J. 4627 4626 w 4625 PARKVIEW 4628 = 4627 LL 4621 4620 a 4615 4614 4619 4613 4609 4608 4607 4603 4602 4601 Tm-On �q Ic" o 1P) v °� v v v v d� 4622 O -' 4621 4614 4615 4606 4607 4 00 4601 4556 4555 0 o m 4550 4555 NCJ N '' ''' M v 4544 4539 rn r- Mo Ln L N N N N M M 4532 O 4531 452 .2 45 1/2 Keyes Park 4518 LL 4515 o0 0 o io w 4509 M M 4506 n M M w 1133 1201 Cy N M M M 1994 Sheffield Neiahborhood Project Area L O w W W 4622 O -' 4621 4614 4615 4606 4607 4 00 4601 4556 4555 0 o m 4550 4555 NCJ N '' ''' M v 4544 4539 rn r- Mo Ln L N N N N M M 4532 O 4531 452 .2 45 1/2 Keyes Park 4518 LL 4515 o0 0 o io w 4509 M M 4506 n M M w 1133 1201 Cy N M M M 1994 Sheffield Neiahborhood Project Area L O w W W City of Columbia Heights, MN $5,060,000 Taxable G.O. Temporary Bonds, Series February 1, 2006 No Capitalized Interest Issue Summary Sources & Uses Dated 02/01/2006 1 Delivered 02/01/2006 SOURCES OF FUNDS ParAmount of Bonds ................... :.................................................................................................................................. $5,060,000.00 TOTALSOURCES.......................................................................................................................................................... $5,060,000.00 USES OF FUNDS Total Underwriter's Discount(0.400%)........................................................................................................................... 20,240.00 Costsof Issuance........................................................................................................................................................... 36,000.00 Deposit to Project Construction Fund............................................................................................................................... 5,000,000.00 RoundingAmount........................................................................................................................................................... 3,760.00 TOTALUSES ................................................................................................................................................................ $5,060,000.00 Ser 05 S5MM Not Taxable N / S/NCLEMWOSE / ": ",k? / 9:00 AM Ehlers & Associates, Inc. Leaders in Public Finance Page 1 City of Columbia Heights, MN $5,060,000 Taxable G.O. Temporary Bonds, Series February 1, 2006 No Capitalized Interest Issue Summary Net Debt Service Schedule Date Principal Coupon Interest Total P+I Net New D/S Fiscal Total 02/01/2006 - _ A/!//i�GligL afgr .mule 08/01/2006 - - 113,850.00 113,850.00 113,850.00 02/01/2007 - - 113,850.00 113,850.00 113,850.00 EEE 08/01/2007 - - 113,850.00 113,850.00 113,850.00 02/01/2008 - - 113,850.00 113,850.00 113,850.00 227,700.00 08/01/2008 - - 113,850.00 113,850.00 113,850.00 02/01/2009 5,060,000.00 4.500% 113,850.00 5,173,850.00 5,173,850.00 5,287,700.00 Total $5,060,000.00 - $683,100.00 $5,743,100.00 $5,743,100.00 Ser 05$5MM Net Taxable N / S/NCLEPURPOSE / 912012005 / 9.•00 `1M Ehlers & Associates, Inc. Leaders in Public Finance Page 3 Grid 8 Detail, June -September 2005 Citizen contacts — 357 Driving after cancellation — 1 No proof of insurance — 3 Driving after suspension — 1 Tobacco violation — 2 Illegal parking — 15 Revoked license plate — 1 Minor consumption — 1 Speeding — 5 Possession drug dealing — 2 Assaults — 3 Dumping complaint - 1 Suspicious activity — 8 Unlawful discharge of firearm — 4 Junk vehicle — 2 Fight calls — 4 Group loitering — 5 Medical — 1 Juvenile complaints — 10 Vehicle in park after closing — 1 Domestics — 18 Driving while intoxicated — 1 Curfew violations = 11 Vehicle lockout — 1 Fireworks complaint — 4 Unwanted guest — 1 Attempt warrant arrest — 3 Alarm — 1 Expired license plate — 3 Disturbance call — 1 Equipment violations — 4 Possession of Marijuana — 3 No Minnesota DL = 2 Traffic stops — 48 Felony arrests -- 5 Bike violations — 9 Driving after revocation — 6 Noise complaint — 5 Stop sign violation — 3 Recovered stolen auto — 1 Underage consumption — 1 Dog bite report — 1 Expired driver's license — 1 Aggravated assault — 1 Scavenging —1 Suspicious activity — 10 Intoxicated subject — 3 Warrant arrest — 7 Motorist assist — 1 Lost person — 1 Driving after suspension — 6 Open garage door — 1 Medical — 1 Juvenile fight — 1 Found child — 1 Found property — 3 Damage to property — 1 Disorderly conduct — 3 Robbery of person - 1