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HomeMy WebLinkAbout09-07-2021 EDA Packet ECONOMIC DEVELOPMENT AUTHORITY Public Safety Building—Training Room, 825 41st Ave NE Tuesday, September 07, 2021 6:00 PM AGENDA ATTENDANCE INFORMATION FOR THE PUBLIC Members of the public who wish to attend may do so in-person, by calling 1-312-626-6799 and entering meeting ID 843 8098 0103 or by Zoom at https://us02web.zoom.us/j/84380980103. For questions please call the Community Development Department at 763-706-3670. CALL TO ORDER/ROLL CALL PLEDGE OF ALLEGIANCE CONSENT AGENDA 1. APPROVE REGULAR MEETING MINUTES OF AUGUST 2, 2021 2. APPROVE FINANCIAL REPORTS AND PAYMENT OF BILLS OF JULY 2021 MOTION: Move to approve the Consent Agenda as presented. BUSINESS ITEMS 3. ADOPTION OF THE 2022 BUDGET AND AUTHORIZATION OF THE EDA AND HRA LEVIES MOTION: Move to waive the reading of Resolution 2021-14, there being ample copies available to the public. MOTION: Move to adopt Resolution 2021-14, a resolution of the Columbia Heights Economic Development Authority, adopting a budget for the fiscal year of 2022 and setting the 2021 tax levy, payable in 2022. MOTION: Move to waive the reading of Resolution 2021-15, there being ample copies available to the public. MOTION: Move to adopt Resolution 2021-15, a resolution of the Columbia Heights Economic Development Authority, adopting a budget for the fiscal year of 2022 and authorizing a special benefit tax levy, payable in 2022. 4. FAҪADE IMPROVEMENT GRANT FOR DAIRY QUEEN, 3959 CENTRAL AVENUE NE MOTION: Move to waive the reading of Resolution 2021-16, there being ample copies 1 City of Columbia Heights AGENDA September 07, 2021 Economic Development Authority Page 2 available to the public. MOTION: Move to adopt Resolution 2021-16, a resolution approving the form and substance of the façade improvement grant agreement, and approving authority staff and officials to take all actions necessary to enter the authority into a façade improvement grant agreement with Tom Letness. 5. FAҪADE IMPROVEMENT GRANT FOR HAIRATAGE, 530 40TH AVENUE NE MOTION: Move to waive the reading of Resolution 2021-17, there being ample copies available to the public. MOTION: Move to adopt Resolution 2021-17, a resolution approving the form and substance of the façade improvement grant agreement, and approving authority staff and officials to take all actions necessary to enter the authority into a façade improvement grant agreement with Donna Mahlmann. PUBLIC HEARINGS OTHER BUSINESS 6. EXPAND GEOGRAPHIC BOUNDARIES OF THE FAҪADE IMPROVEMENT GRANT PROGRAM MOTION: Move to expand the geographic boundaries of the Façade Improvement Grant Program to designate commercial properties located along University Avenue NE, 37th Avenue NE, and 37th Place NE as eligible to participate in the program. 7. DISCUSS POTENTIAL REDEVELOPMENT OF 2201 37TH AVENUE NE ADJOURNMENT Auxiliary aids or other accommodations for individuals with disabilities are available upon request when the request is made at least 72 hours in advance. Please contact Administration at 763-706-3610 to make arrangements. 2 MINUTES CITY OF COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) MEETING AUGUST 2, 2021 The meeting was called to order at 6:00 pm by Chair Szurek. Members present: Connie Buesgens, Kt Jacobs, Nick Novitsky, Amada Márquez-Simula, Marlaine Szurek Members absent: Gerry Herringer, John Murzyn Jr. Staff Present: Aaron Chirpich, Community Development Director; Kelli Bourgeois, City Manager; Joe Kloiber, Finance Director; Ben Sandell, Communications Coordinator; and Alicia Apanah, Administrative Assistant PLEDGE OF ALLEGIANCE CONSENT AGENDA 1. Approve the minutes of the regular EDA Meeting of June 7, 2021 2. Approve financial reports and payment of bills for May and June 2021 – Resolution No. 2021-07 Motion by Jacobs, seconded by Novitsky, to approve the Consent Agenda as presented. All ayes of present. MOTION PASSED. RESOLUTION NO. 2021-12 A RESOLUTION OF THE ECONOMIC DEVELOPMENT AUTHORITY OF COLUMBIA HEIGHTS, MINNESOTA, APPROVING THE FINANCIAL STATEMENTS FOR THE MONTHS OF MAY AND JUNE 2021, AND THE PAYMENT OF THE BILLS FOR THE MONTHS OF MAY AND JUNE, 2021. 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 May and June 2021 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 meth od outlined by the State of Minnesota’s Records Retention Schedule, 3 Item 1. City of Columbia Heights MINUTES August 2, 2021 EDA Meeting Page 2 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 2nd day of August, 2021 Offered by: Seconded by: Roll Call: President Attest: Assistant Secretary BUSINESS ITEMS 3. Discuss 2022 Levy Limit and Budget for the EDA Commercial Revitalization Fund Chirpich stated that evening’s discussion of the 2022 levy limit and budget for the EDA Commercial Revitalization Fund would be considered more of a work session, rather than asking for any EDA action, and weight in on certain items to prepare for a budget and also get some feedback on potential redevelopment sites. The first item is preparation for the upcoming budget season for the expected final approval in September, and then discusses the Commercial Revitalization Fund, most commonly referred to as Fund 408, a working capital fund designed to provide the resources necessary for the EDA to implement approved development activities for the benefit of the community. Two long-running activities covered within the fund are the Commercial Revitalization Project and the Façade Improvement Grant Program. The Commercial Revitalization Project aims to acquire legally non- conforming single-family homes that are zoned commercially along Central and University Avenues. Chirpich said there is no perfect rhythm; they are acquired as they become available on the market, and the unofficial goal is one per year, with $200,000 having been aside annually over the last three years. $50,000 has been set aside annual for the Façade Improvement Grant Program, which also includes surveillance cameras. In May of 2021, the allocated, as part of a pilot program, $45,000 of fund balance from Fund 408 to create a pilot fire suppression assistance grant program that aims to help small businesses cover the cost of upgrading older buildings with modern fire 4 Item 1. City of Columbia Heights MINUTES August 2, 2021 EDA Meeting Page 3 suppression systems. Chirpich stated that with the addition of the fire suppression emphasis, the fact that many of the family acquisitions in the Revitalization Program cost more than $200,000, and the levy has not been increased for three years, staff believes that the EDA should consider increasing the amount of the HRA levy for the 2022 budget. The EDA could increase the HRA Levy to the current maximum of $310,000, or any amount in between $250,000 and the maximum , though no formal action is requested of the EDA at this time. The levy is tied to the applicable market value tax base of the City, and 0.158% of that contributes to what the City can levy in total. Kloiber added that the EDA levy is used for EDA operating purposes and the HRA levy is used for project purposes, and they are different from other levies as there is a statutory levy limit that applies to them every year. Unlike the City’s general levy, the EDA does not have the complete flexible control in any one year. Questions/Comments from Members: Buesgens asked whether the money used recently for the house that was demolished on 40th and University fall within this fund, and Chirpich confirmed so. She said it would be money that could be used to clear out properties for redevelopment, façades and sprinkler systems and would support the proposed increase of $310,000, adding that she would like to see landscaping included for some small businesses. Márquez-Simula agreed with Buesgens and said she loved the idea of landscaping and improving the business district. Novitsky agreed with both Buesgens and Márquez-Simula and asked whether the fund would cover home energy as well. Chirpich said resources were allocated to that, he believed, for a five-year period and may very well have come out of Fund 408 and will need to verify that. He said the City is still participating in the home energy audit reimbursement, and Novitsky said he was glad the City is still doing so. Novitsky asked if the Façade grant is available on University as well, and Chirpich said 40th and Central for sure but the program hasn’t been expanded to University. If expanded, Novitsky said he would like University included and then, after including those businesses, look into moving forward with the landscaping part of it. Jacobs said she is in favor of the increase but believes it is premature to tag on landscapi ng at this point. It’s her understanding the businesses would have a “bucket” to do their façades, money that they didn’t have to spend, but thinks there should be some investment on their part. Chirpich asked whether the Commission wished to consider filling the “bigger basket” to feed the smaller programs and then come back and consider changes to the paramet ers of the façade program or the Commercial Revitalization program. Chirpich added that the EDA doesn’t have to maximize the available levy limit; it can consider a number that isn’t the full $310,000. Buesgens asked if unused money carries over, and Kloiber confirmed so. Jacobs asked if it has any effect on what the maximum cap is for the following year, and Kloiber said no. 5 Item 1. City of Columbia Heights MINUTES August 2, 2021 EDA Meeting Page 4 Chirpich asked for comment on the full $310,000, and it was Commission consensus that it is not a big jump and members would support it. Szurek said, with the amount of money that owners are asking for homes that may be totally run down, a lower amount ma y not be enough money to procure that property and thinks raising the amount is an excellent idea. It was determined then that staff will make the amendment for the Commission’s full budget review in September, which will be in greater detail. 4. Discuss Redevelopment Concept for 2201 37th Avenue NE Chirpich explained that staff has been contacted by a developer (business name to be determined) who is interested in constructing a market rate/workforce apartment community in Columbia Heights. Staff discussed the City’s priority areas for redevelopment, and the developer expressed interest in the former Unique Thrift Store site at 2201 37th Avenue NE. He displayed the area map and said the property is currently cited as General Business. From a redevelopment perspective, staff believes the site has the potential to support a vertical mixed -use project that includes small- scale commercial/retail spaces with high-density residential. The Comprehensive Plan supports high-density residential and commercial redevelopment in this area and identifies the site as an area of opportunity, stressing the importance of creating an attractive and welcoming site design because the property serves as an entry point into Columbia Heights. The developer is currently interested in a housing only redevelopment concept and has submitted a preliminary site plan that is consistent with the development standards found in the City’s R -4 residential zoning guidelines. The site plan includes 112 market rate units of varying sizes with a mix of underground parking, surface parking, and above ground garages to accommodate the parking requirements of the City. Staff has encouraged the developer to consider a mixed-use concept for the site. However, the developer has requested that the City consider a housing only redevelopment concept and provide feedback before moving forward with changes to the plan and potential acquisition of the property. Questions/Comments from Members: Jacobs asked what the difference is in unit numbers between the two options. Chirpich said it has yet to be determined. The developer ran a fit plan, like a site plan, that used the R-4 standard, which is 122 units. The Comprehensive Plan would need to be amended if it went straight residential, as it’s calling for mixed-use, and he said this property is three acres and another development is building 266 units on 2-1/2 acres on Central. Buesgens asked why the lot would require a TIF, and Chirpich said it is going to be significantly above what a project with raw land is going to support, and would require demolition and other site preparation costs. She didn’t think it would require a TIF because there are no water issues and didn’t have all of the other problem issues involved with other projects. He said staff doesn’t know whether or not there are soil or sewer issues but there will likely be TIF-eligible costs. Chirpich said he would like to frame it as being what type of project the Commission would want to invest in from a TIF perspective – is it a mixed-use, or a straight multifamily, and what does and 6 Item 1. City of Columbia Heights MINUTES August 2, 2021 EDA Meeting Page 5 doesn’t the Commission like about what is being proposed. Buesgens asked how many buildings the developer has built, and Chirpich responded “zero.” She said she would be nervous about this project being his first. Hark said staff understand that concern, don’t want the City to be the “test,” but also realize this is a non -active site that should be redeveloped. Jacobs is in favor of the project and it being high -density. With its geographic location, she thinks having some type of mixed use makes sense but would want a very limited length of TIF. Chirpich said staff always shoots for that but said it is sometes out of their control, being a balance for what the City is giving for what it is getting. Jacobs is very concerned about the developer coming forward without a confirmed business name. Chirpich said credentials are going be to important to the EDA. Márquez-Simula said it seems to be more of a conversation of what possibilities there might be for this specific property, instead of it being a concrete proposal. Chirpich said the developer knows the challenge in front of him and was comfortable getting some feedback from the Commission on what they would support for a project. Staff said it would be fair to go back to developer and share the Commission’s concern about the project, working with someone who doesn’t have a track record and then see how he responds. He could partner up with someone to convince the Commission that it’s worthwhile to move ahead. Szurek’s concern is that the developer didn’t want to talk about doing commercial and apartments above. Chirpich said he wasn’t totally opposed to it. She added that he is calling the proposed development “luxury workforce apartments,” and she thinks the two names do not go together and hopes the Alatus project is not workforce and will be higher-end apartments that the City is due. She also said Dominion described to the EDA that Grand Central Flats was going to be a beautiful workforce housing development but has turned out to be low -income Section 8 instead; if Dominium approaches the EDA again, she will be frank with them because they did not follow through with what they said. Szurek believes Minneapolis putting a huge pressure on the Columbia Heights to build more low-income housing and doesn’t like the proposed project, describing it as being too “cookie-cutter.” Chirpich said the area is a gateway to the City and is important to have something attractive and well done; and this is an opportunity to put a spotlight on it. Staff will accept more inquiries on the site and want to be better armed before more conversations. Szurek commented that this inquiry has at least started a conversation about the site. Novitsky thinks the site should be at least mixed -use and could not support a project even if it was done by the most reputable apartment builder because there need to be more businesses. Buesgens said the strip mall nearby is not worthwhile. Chirpich said it needs help but there are some “neat” businesses there that are struggling, but there is a better chance that it could be elevated if the proposed site was developed. She said she doesn’t know what the market is right now with businesses trying to outlast the pandemic but suggested maybe a small gym or coffee 7 Item 1. City of Columbia Heights MINUTES August 2, 2021 EDA Meeting Page 6 shop would be viable. Buesgens would hate to lose the two apartment buildings nearby but is unsure how best to plan for the area. Novitsky suggested, for future discussion, trying to get the strip mall included in the Façade program, if it’s not already, and may help spur some constructive planning. Chirpich likes the idea of expanding the Façade program. Chirpich added that he spoke with another company about this site, and so something can be done. Buesgens asked about mixed-use zoning. Chirpich said it would go PUD and not be rezoned mixed- use, as it’s similar to PUD in concept. Buesgens said a PUD would be good for that corner but added that the current apartments aren’t going anywhere. Chirpich said, from a Met Council and planning principle perspective, there would need to be some other mixed-use element to bring more density into the site other than the R-4. Whether or not the market will say it absolutely cannot be done, that can’t be determined until City staff speak with other individuals. Buesgens agreed with Jacobs, with it being a good site for high-density as there is not much residential around it and traffic would be fine. Márquez-Simula said it would be great to redevelop the area and bring in a lot more people to create a neighborhood, where people can feel like they belong, and businesses in the strip mall have been there for a while – such as the Mexican restaurant and dry cleaner. She said it would also be a good idea to build an apartment building near the City-owned liquor store. Concerning mixed use, Jacobs asked if it would be retail businesses or accommodate some type of offices. Chirpich, as an example, said it could be an insurance broker, etc. Other suggestions were a brewery, salon or spa, dance studio. Márquez-Simula said businesses would also need space for online food sales, coffee sales or jewelry sales. There were further discussions about TIF and its time limits as well as the current church within the strip mall. Bourgeois said there are a number of factors that go into allowing a church into that building. Márquez-Simula asked whether a new style of apartment buildings could be considered, rather than the current Lego-box style, and be more creative when speaking with developers. Szurek agreed, and Jacobs said that is her issue with 42 nd Avenue. Chirpich said their preference would be a subjective lens, but it would be addressed through the City’s design guidelines, which are due for a revamp. Szurek asked whether the district would have to be expanded so that there is more say as to what a design would be. Novitsky said there would be more design flexibility for higher-end projects and buildings capped at rent would have limitations. 8 Item 1. City of Columbia Heights MINUTES August 2, 2021 EDA Meeting Page 7 Chirpich asked if the Commission likes the aesthetics at 40 th and Central, and they said it is a start. Jacobs liked the different heights of the residential project at the Rainbow site. Chirpich said it is all a balancing act and very subjective. Márquez-Simula thinks the Grand Central Flats work well with the buildings that were already there and the building’s color coordinates with them. Jacobs wants the City to “be first” and push building designs. Buesgens asked whether residents who are artists could be part of a design committee for 43rd and Central, and Chirpich said a consulting group would likely be brought in to lead the group. He anticipates that Alatus will purchase the property from Hy-Vee this week but closing has not yet been scheduled. On another topic, Márquez-Simula asked whether the gas station site at 47th and Central is part of it and whether there are plans for it. Chirpich said Hy-Vee told Alatus early on that they won’t be serious about selling that until the sale of the main site is completed, adding that there is a second parcel near the property that would be a sizable plot (about two acres in total) for construction. ADJOURNMENT Motion by Buesgens, seconded by Jacobs, to adjourn the meeting at 6.54 pm. All ayes. MOTION PASSED. Respectfully submitted, _______________________________ Alicia Apanah, Recording Secretary 9 Item 1. Resolution 2021-13 RESOLUTION NO. 2021-13 A RESOLUTION OF THE ECONOMIC DEVELOPMENT AUTHORITY OF COLUMBIA HEIGHTS, MINNESOTA, APPROVING THE FINANCIAL STATEMENTS FOR THE MONTH OF JULY 2021, AND THE PAYMENT OF THE BILLS FOR THE MONTH OF JULY 2021. 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 month of July 2021 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 7th day of September, 2021 Offered by: Seconded by: Roll Call: President Attest: Assistant Secretary 10 Item 2. CHECK# DATE VENDOR NAME AMOUNT FUND DESCRIPTION 186473 70821 COMCAST 12.33 201 MONTHLY SERVICE 186473 70821 COMCAST 9.77 201 MONTHLY SERVICE 186480 70821 ECM PUBLISHERS INC 78.75 201 PHN ORD #1666 062521 186480 70821 ECM PUBLISHERS INC 50.63 201 PHN ORD #1667 062521 186480 70821 ECM PUBLISHERS INC 50.63 201 PHN PLAN COMM 062521 186480 70821 ECM PUBLISHERS INC 76.25 201 AD 3927 HAYES CUP 0625 186488 70821 INNOVATIVE OFFICE SOLUTN 13.38 201 DUCT TAPE 186816 72921 MAJESTIC CUSTOM CONSTRUC 10.00 201 REFUND DIFFERENCE 186820 72921 METRO COUNCIL ENVIROMENT 2,485.00 201 SAC JUNE 2021 186820 72921 METRO COUNCIL ENVIROMENT -24.85 201 LESS RETENTION 186831 72921 NORTHWEST ASSOC CONSULTN 3,525.60 201 PLANNING CONSULTANT SE 186838 72921 PREMIUM WATERS INC 3.00 201 063021 COOLER 186731 72221 REDPATH AND COMPANY LTD 747.00 201 FINAL BILL 2020 AUDIT 186618 71521 SMITH/RYAN 80.00 201 CELL PHONE 112820-0127 186618 71521 SMITH/RYAN 200.00 201 CELL PHONE 012821-0627 186473 70821 COMCAST 16.44 204 MONTHLY SERVICE 186473 70821 COMCAST 13.03 204 MONTHLY SERVICE 186789 72921 EHLERS & ASSOCIATES INC 300.00 204 ALATUS 4300 CENTRAL TI 186789 72921 EHLERS & ASSOCIATES INC 6,250.00 204 ALATUS 4300 CENTRAL TI 186789 72921 EHLERS & ASSOCIATES INC 6,250.00 204 ALATUS 4300 CENTRAL TI 186789 72921 EHLERS & ASSOCIATES INC 3,750.00 204 ALATUS 4300 CENTRAL TI 186789 72921 EHLERS & ASSOCIATES INC 500.00 204 ALATUS 4300 CENTRAL TI 186789 72921 EHLERS & ASSOCIATES INC 4,275.00 204 REUTER WALTON TIF 186789 72921 EHLERS & ASSOCIATES INC 300.00 204 REUTER WALTON TIF 186810 72921 KENNEDY & GRAVEN 1,253.75 204 REUTER WALTON TIF 186810 72921 KENNEDY & GRAVEN 4,535.20 204 ALATUS 4300 CENTRAL TI 186587 71521 KNOWBE4 INC 114.15 204 PHISH TRNG 072221-0721 186516 70821 POPP.COM INC 62.36 204 MONTHLY SERVICE 186837 72921 POPP.COM INC 6.53 204 MONTHLY SERVICE 186731 72221 REDPATH AND COMPANY LTD 1,245.00 204 FINAL BILL 2020 AUDIT 186536 71421 REUTER WALTON DEVELOPMEN 197,736.00 204 REFUND PROJECT DEPOSIT 186625 71521 TIMESAVER OFF SITE SECRE 266.50 204 060721 EDA MINUTES 186455 70821 BAILEY NURSERIES INC 7,128.50 226 TREES 186384 70121 CURBSIDE PRODUCTIONS LLC 1,500.00 226 MOVIE IN THE PARK PYMT 186476 70821 CURBSIDE PRODUCTIONS LLC 343.75 226 MUSIC IN THE PARK 0707 186560 71521 CURBSIDE PRODUCTIONS LLC 343.75 226 MUSIC IN THE PARK 0712 186478 70821 DEGENNARO, DAVID 300.00 226 MUSIC IN THE PARK-0707 186387 70121 ECM PUBLISHERS INC 500.00 226 100 YEAR INSERT 061821 186676 72221 EHLERS & ASSOCIATES INC 484.50 372 TIF REPORTING T6 186676 72221 EHLERS & ASSOCIATES INC 484.50 374 TIF REPORTING Z2 186676 72221 EHLERS & ASSOCIATES INC 484.50 375 TIF REPORTING Z6 186676 72221 EHLERS & ASSOCIATES INC 484.50 389 TIF REPORTING R8 186676 72221 EHLERS & ASSOCIATES INC 484.50 391 TIF REPORTING W3,W4 186777 72921 CENTER POINT ENERGY 27.86 408 MONTHLY SERVICE 186803 72921 HUMMINGBIRD ENVIRONMENTA 4,080.00 408 1002 40TH REMEDIATION 186810 72921 KENNEDY & GRAVEN 42.00 408 NE BUSINESS CENTER 186713 72221 NORTHERN TECHNOLOGIES LL 1,840.00 408 CEO EXPLORE,ENG REVIEW 186530 70821 WARE/ JON C 10.00 408 GRANT PRO.LICENSE FEE 186756 72221 XCEL ENERGY (N S P) 11.84 408 MONTHLY SERVICE 11 Item 2. 12 Item 2. 13 Item 2. 14 Item 2. 15 Item 2. 16 Item 2. 17 Item 2. 18 Item 2. 19 Item 2. 20 Item 2. 21 Item 2. ECONOMIC DEVELOPMENT AUTHORITY AGENDA SECTION BUSINESS ITEMS MEETING DATE SEPTEMBER 7, 2021 ITEM: Adoption of the 2022 Budget and Authorization of the EDA and HRA Levies DEPARTMENT: Community Development BY/DATE: Aaron Chirpich – 9/01/2021 BACKGROUND: In late August, the proposed budget for the 2022 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 2021 tax levies, payable in 2022. 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 2022, the EDA Levy would capture $255,500 from the City’s estimated market land value; whereas the HRA Levy would net $310,000. When combined, both levies result in total net revenue of $565,500. The proposed 2022 fund budgets are dedicated to maintaining 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 2022 budget for Fund 408 includes a 24% levy increase, which represents an increase of $60,000 from 2021. This increase was discussed with the EDA at the August 2nd, 2021 meeting, and supported by all members present. The Fund 408 budget does not reflect a direct allocation of th e additional $60,000. At the August 2nd meeting, the EDA board directed staff to pursue the levy increase for the 2022 budget and were comfortable leaving decisions on how to allocate the additional funding later in the year. The table below reflects an ov erview of both fund budgets. For more detail, please refer to the attached summary budgets. Fund Revenue Expense 204 – EDA Administration $255,500 $250,028 408 – Redevelopment Projects $310,000 $250,000 Increase (Decrease) to Fund Balance $65,472 Total Including Interfund Transfers $565,500 $565,500 22 Item 3. Page 2 RECOMMENDED MOTION(S): MOTION: Move to waive the reading of Resolution 2021-14, there being ample copies available to the public. MOTION: Move to adopt Resolution 2021-14, a resolution of the Columbia Heights Economic Development Authority, adopting a budget for the fiscal year of 2022 and setting the 2021 tax levy, payable in 2022. MOTION: Move to waive the reading of Resolution 2021-15, there being ample copies available to the public. MOTION: Move to adopt Resolution 2021-15, a resolution of the Columbia Heights Economic Development Authority, adopting a budget for the fiscal year of 2022 and authorizing a special benefit tax levy, paya ble in 2022. ATTACHMENT(S):  Resolution 2021-14  Resolution 2021-15  Fund 204: EDA Administration Budget Summary  Fund 408: EDA Redevelopment Project Budget Summary 23 Item 3. Resolution 2020-14 RESOLUTION NO. 2021-14 A RESOLUTION OF THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY, ADOPTING A BUDGET FOR THE FISCAL YEAR OF 2022 AND SETTING THE 2021 TAX LEVY, PAYABLE IN 2022. 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 $565,500 for 2022; and BE IT FURTHER RESOLVED, that the EDA adopts and requests the City Council’s approval of an EDA tax levy under Section 469.107 of the EDA Act, in the amount of $250,028 for taxes payable in 2022; and BE IT FURTHER RESOLVED, that the Executive Director is instructed to transmit a copy of this resolution to the City Manager, Finance Director, and City Clerk of the City of Columbia Heights, Minnesota. ORDER OF ECONOMIC DEVELOPMENT AUTHORITY Passed this 7th day of September, 2021 Offered by: Seconded by: Roll Call: President Attest: Secretary 24 Item 3. Resolution 2021-15 RESOLUTION NO. 2021-15 A RESOLUTION OF THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY, ADOPTING A BUDGET FOR THE FISCAL YEAR OF 2022 AND AUTHORIZING A SPECIAL BENEFIT TAX LEVY, PAYABLE IN 2022. 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 is 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, by separate resolution, the EDA has before it for consideration a copy of the EDA budget for the fiscal year of 2022, and the proposed amount of the HRA Levy, payable in 2022, 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 an HRA Levy payable in 2022 of $310,000 under Section 469.033 of the HRA Act; and BE IT FURTHER RESOLVED, that the Board of Commissioners of the Columbia Heights Economic Development Authority hereby directs staff to take such actions necessary to file with the City and certify with the County of Anoka County, the HRA Levy in the amount of $310,000 for taxes payable in 2022 under Section 469.033 of the HRA Act. ORDER OF ECONOMIC DEVELOPMENT AUTHORITY Passed this 7th day of September, 2021 Offered by: Seconded by: Roll Call: President Attest: Secretary 25 Item 3. EDA Planning &Downtown Redevelopment Inspections EDA Parking Project 201 204 228 408 Revenue 30999 Taxes -255,500 -310,000 31999 Licenses & Permits 317,500 --- 32999 Intergovernmental ---- 33999 Charge for Services ---- 34999 Fines & Forfeits ---- 35999 Miscellaneous 2,500 -31,200 - 36999 Sales and Related Charges ---- 39199 Transfers & Non Rev Receipts 140,000 -10,000 - Total Revenue 460,000 255,500 41,200 310,000 Expenses 0999 Personal Services 378,796 208,128 -- 1999 Supplies 7,425 2,900 -- 2999 Other Services and Charges 32,550 17,100 41,200 50,000 4999 Capital Outlay ---200,000 6999 Contingencies & Transfers 21,900 21,900 -- Total Expenses 440,671 250,028 41,200 250,000 Summary Change to Fund Balance 19,329 5,472 -60,000 City of Columbia Heights, Minnesota BUDGET 2022 Community Development 26 Item 3. DEPARTMENT: ECONOMIC DEVELOPMENT AUTHORITY 204 COMMUNITY DEVELOPMENT Actual Actual Adopted Department City Manager Council 46314 ECONOMIC DEVELOPMENT AUTH.Expense Expense Budget Proposed Proposed Adopted Line Item Description 2019 2020 2021 2022 2022 2022 0999 Personal Services 110,610 147,639 209,600 208,128 208,128 - 1999 Supplies 350 1,922 3,200 2,900 2,900 - 2999 Other Services & Charges 33,937 18,773 21,800 17,100 17,100 - 4999 Capital Outlay ------ 6999 Contingencies & Transfers 16,000 19,500 20,025 21,900 21,900 - TOTALS: ECONOMIC DEVELOPMENT AUTH160,897 187,833 254,625 250,028 250,028 - Activity Description Objectives Budget Comments on Proposed Budget CITY OF COLUMBIA HEIGHTS, MINNESOTA BUDGET 2022 The Economic Development Authority coordinates several activities that both directly and indirectly act as a catalyst for improving the community's overall quality of life, business vitality, and economic performance. The main activities of Economic Development Authority staff include providing support to the Columbia Heights Economic Development Authority and the Housing & Redevelopment Authority in and for the City of Columbia Heights; leveraging public and private partnerships to increase the amount of reinvestment within the City; serving as project managers for development and redevelopment projects; writing and maintaining grants from governmental agencies and corporate institutions; preparing and maintaining Tax Increment Financing, Tax Abatement, and Private Activity Bond records; developing and implementing a Business Retention & Expansion programs; managing housing programs; and facilitating the acquisition and conveyance of City owned properties. City Goal - ECONOMIC STRENTH & EXCELLENT HOUSING AND NEIGHBORHOODS - Implement goals and objectives of the Economic Development Authority. - Drive redevelopment projects in priority areas of the City through strategic partnerships. - Monitor and implement housing programs to ensure neighborhood reinvestment is occurring. - Develop and implement programs that work to increase assessed property values. - Enhance business opportunities with the City. - Develop and implement a Business Retention & Expansion program. - Increase the City's tax base. City Goal - AFFORDABILITY - Work to ensure that high-quality, affordable housing options are available for all residents. The Economic Development Authority Fund budget for 2022 will decrease by $4,597. PERSONAL SERVICES: Personal Services will decrease by $1,472 and will accommodate planned COLA increases for the CD Director and CD Coordinator. EDA Fund 204 will also transfer out $12,170 to the Administrative department to contribute to the funding of the Communications and Events Specialist position. Funding for this position has increased by $702 for 2022. SUPPLIES: Supplies will decrease by $300 to be more reflective of historic trends related to general office supply costs. OTHER SERVICES AND CHARGES: Other Services and Charges will decrease by $4,700 due to decreases in Expert and Professional Services, Property and Liability Insurance, and Telephone costs. Expert and Professional Services contracts are more appropriately assigned to specific development projects that are typically funded through Fund 408 or other development funds managed by the City. 27 Item 3. DEPARTMENT: COMMERCIAL REVITALIZATION 408 EDA REDEVELOPMENT PROJECT Actual Actual Adopted Department City Manager Council 46414 COMMERCIAL REVITALIZATION Expense Expense Budget Proposed Proposed Adopted Line Item Description 2019 2020 2021 2022 2022 2022 0999 Personal Services 1,133 3,141 ---- 1999 Supplies 7,083 -7,083 ---- 2999 Other Services & Charges 49,210 12,168 50,000 50,000 50,000 - 4999 Capital Outlay -140,001 200,000 200,000 200,000 - 6999 Contingencies & Transfers ------ TOTALS: COMMERCIAL REVITALIZATION 57,426 148,227 250,000 250,000 250,000 - Activity Description Objectives Budget Comments on Proposed Budget CITY OF COLUMBIA HEIGHTS, MINNESOTA BUDGET 2022 The Redevelopment Project Fund is a working capital fund designed to provide the resources necessary for the Columbia Heights Economic Development Authority to implement approved activities for the benefit of the community. The two approved activities covered within this fund are the Commercial Revitalization Project and the Facade Improvement Grant Program. City Goal - ECONOMIC STRENTH & EXCELLENT HOUSING AND NEIGHBORHOODS - Implement the Commercial Revitalization Project and the Facade Improvement Grant Program. - Drive redevelopment projects in priority areas of the City. City Goal - DIVERSE, WELCOMING SMALL-TOWN FEEL -Implement the Facade Improvement Grant Program to invest in small local businesses. The Redevelopment Project Fund will remain unchanged for 2022 at $250,000. This fund is supported by the HRA Levy and is recognized in Fund 408. Fund 408 will continue to support redevelopment projects and program expenditures of the Columbia Heights Economic Development Authority, including the Facade improvement grant program, and strategic property acquisitions. 28 Item 3. FUND NUMBER COMMERCIAL REVITALIZATION 408-46414 Total Total Total Total Comp Total Total Comp Position Title 2021 2022 Salaries Fringe & Fringe Salaries Fringe & Fringe Subtotal -------- Total -------- NONPERSONNEL COSTS Existing average annual property acquisitions in commercial corridor 200,000 Existing façade improvement program, including: Façade grants to businesses Security video installed at businesses subtotal 50,000 Expenditure budget total 250,000 Note: The 2022 proposed revenue budget will provide an additional $60,000 beyond the existing expenditures above. The EDA has recently discussed expanding the exisiting façade improvement program to include fire suppression systems, landscaping, and other private improvements within the commercial corridor. The EDA has also discussed expanding prpoerty acquisition in the commercial corridor to more than $200,000 min the short-term. The additional $60,000 would be available for such purposes, once the EDA has reached final decisions in this area. F.T.E. CITY OF COLUMBIA HEIGHTS, MINNESOTA BUDGET 2022 SUMMARY OF COST FACTORS FOR THE COMING YEAR Explanation of Personnel 2021 Adopted 2022 Proposed 29 Item 3. ECONOMIC DEVELOPMENT AUTHORITY AGENDA SECTION BUSINESS ITEMS MEETING DATE SEPTEMBER 7, 2021 ITEM: Façade Improvement Grant for Dairy Queen, 3959 Central Avenue NE DEPARTMENT: Community Development BY/DATE: Aaron Chirpich – 9-01-2021 BACKGROUND: The EDA has received a Façade Improvement Grant application from Tom Letness for the Dairy Queen building located at 3959 Central Avenue NE. Mr. Letness is requesting a $1,750 grant to support his proposed $3,500 painting project. The project scope includes a full repainting of the entire exterior of the building to bring the facility up to the current color specifications set by the Dairy Queen Corporation. All sides of the building are visible from a public street. Therefore, per the grant program guidelines, repainting of the entire building is a grant eligible activity. Mr. Letness has submitted a complete application for eligible improvements, and staff recommends approval of the request. RECOMMENDED MOTION(S): MOTION: Move to waive the reading of Resolution 2021-16, there being ample copies available to the public. MOTION: Move to adopt Resolution 2021-16, a resolution approving the form and substance of the façade improvement grant agreement, and approving authority staff and officials to take all actions necessary to enter the authority into a façade improvement grant agreement with Tom Letness. ATTACHMENT(S):  Resolution 2021-16  Application and Narrative  Estimates  Current Conditions Photo  Proposed Improvements Photo  Sample Grant Agreement 30 Item 4. Resolution 2021-16 RESOLUTION NO. 2021-16 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 TOM LETNESS. 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 the City’s commercial corridors, pursuant to a Façade Improvement Grant Agreement with Tom Letness (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 Tom Letness, as recommended by the Community Development Department of the City, in accordance with the Program guidelines. BE IT FURTHER RESOLVED, that Kelli Bourgeois, as the Executive Director 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 Kelli Bourgeois, as the Executive Director 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 7th, 2021 ORDER OF ECONOMIC DEVELOPMENT AUTHORITY Passed this 7th day of September, 2021 Offered by: Seconded by: Roll Call: Marlaine Szurek, President Attest: Secretary 31 Item 4. 32 Item 4. 33 Item 4. 34 Item 4. 35 Item 4. 36 Item 4. 37 Item 4. 38 Item 4. 39 Item 4. 40 Item 4. 41 Item 4. 42 Item 4. FAÇADE IMPROVEMENT GRANT AGREEMENT THIS FAÇADE IMPROVEMENT GRANT AGREEMENT (“Agreement”), dated this _____day of September, 2021 (the “Effective Date”), is entered into by and between Tom Letness, Dairy Queen (the “Grantee”), and the Columbia Heights Economic Development Authority (the “EDA”). RECITALS WHEREAS, Grantee is the owner at certain Property located at 3959 Central Ave NE in the City of Columbia Heights (the “City”), Anoka County, Minnesota, and legally described in Exhibit A hereto (the “Property”); WHEREAS, the EDA, in cooperation with the City and its police department, has instituted a Façade Improvement Grant Program (the “Program”) for the purpose of revitalizing existing store fronts, increasing business vitality and economic performance, and decreasing criminal activity; WHEREAS, as part of the Program, the EDA has proposed to make grants of money in the maximum amount of $5,000.00 per parcel of real property, to property owners, tenants, or nonprofit organizations, in order to revitalize, rehabilitate, and restore exterior store fronts within the City, increase business vitality and economic performance in the City, and in certain instances, to provide monitored surveillance within the City; and WHEREAS, Grantee desires to participate in the Program, on the terms and conditions set forth below. NOW, THEREFORE, in consideration of the premises and of the agreements hereinafter contained, the parties agree as follows: 1. Property Improvements: Grantee agrees to complete the improvements at the Property that are identified on Exhibit B attached hereto (the “Improvements”), subject to the following terms and conditions: a. If requested by the EDA, Grantee shall provide plans and specifications to the EDA, detailing the Improvements to be constructed (the “Plans”). If Grantee wishes to revise the Plans, Grantee must submit the revised Plans to the EDA at the address provided herein. The EDA shall give written notice of its approval or disapproval of the revisions to the Plans, and if the EDA does not give such written approval or disapproval within ten (10) business days after receipt of Grantee’s revised Plans, the EDA shall be deemed to have approved the revisions to the Plans. b. The Improvement shall be constructed consistently with the Plans, as the same may be revised pursuant to Section 1(a) herein. The cost to complete construction of the Improvements shall be defined as the “Improvement 43 Item 4. 2 Costs.” The Improvements shall be completed in a first-class manner, consistent with the Plans, if any, and in compliance with all applicable laws, rules, and regulations. Grantee shall obtain all required permits and approvals from the City and any other governing authority with jurisdiction over the Property related to the construction of the Improvements. The out-of-pocket costs for such permitting and approvals shall be the responsibility of Grantee, provided the same shall be included in the definition of “Improvement Costs,” and subject to the provisions of Section 2 of this Agreement. c. Grantee agrees to commence the Improvements within sixty (60) days following the Effective Date, and to complete the Improvements within six (6) months following the issuance of all necessary building permits, but in no event later than eight (8) months following the Effective Date. 2. Payment of Grant Funds: Grantee shall be responsible for making initial payment to all contractors involved in the construction of the Improvements. Upon final completion of the Improvements, Grantee shall make a written request to the EDA for reimbursement of one-half (1/2) of the actual Improvement Costs incurred by Grantee, but in no event shall the reimbursement exceed Five Thousand Dollars ($5,000.00). The written request shall include: a. Proof of final inspection of the Improvements by the City building inspector; b. Before and after photographs of the Property, reflecting the Improvements made (as well as follow-up transmission of electronic files of such photographs), and reflecting that the Improvements were completed consistently with any approved Plans; c. A copy of the final invoice(s) received from the contractor(s) who completed the Improvements; and d. Proof of payment of invoice(s) that comprised the Improvement Costs. Following Grantee’s written request for reimbursement, Grantee shall cooperate with the EDA in delivering to the EDA such follow-up information as is reasonably requested by the EDA in order to review the Improvements and Improvement Costs reimbursement request. Within twenty-one (21) days following receipt of Grantee’s written request for reimbursement of Improvement Costs, the EDA shall: (i) make payment of the reimbursement, (ii) send Grantee written explanation of such other items of information as are needed by the EDA to evaluate the reimbursement request, or (iii) send Grantee written explanation of the EDA’s reasons for denial of repayment of any of Grantee’s requested reimbursement. 3. Liability for Improvements: Neither the City nor the EDA shall in any event be liable to the Grantee, nor to any of its agents, employees, guests or invitees at the Property for, and the Grantee shall indemnify, save, defend, and hold harmless the City and the EDA from, any claims or causes of action, including attorney’s fees incurred by the City or the EDA, arising from defect or claimed defect of any of the Improvements, 44 Item 4. 3 or arising from any action of the City or the EDA under this Agreement. This section shall survive the termination or expiration of this Agreement. 4. Written Notice: Wherever any notice is required or permitted hereunder, such notice shall be in writing. Any notice or document required or permitted to be delivered hereunder shall be deemed to be delivered when actually received by the designated addressee or regardless of whether actually received or not, when deposited in the United States Mail, postage prepaid, certified mail, return receipt requested, addressed to the parties hereto at their respective addresses, as set forth below, or at such other address as they may subsequently specify by written notice. If to the EDA: Columbia Heights EDA Community Development Department 590 40th Avenue N.E. Columbia Heights, MN 55421 If to Grantee: Dairy Queen Attn: Tom Letness 3955 Central Ave NE Columbia Heights, MN 55421 5. Captions; Choice of Law; Etc. The paragraph headings or captions appearing in this Agreement are for convenience only, are not a part of this Agreement, and are not to be considered in interpreting this Agreement. This Agreement constitutes the complete agreement between the parties and supersedes any prior oral or written agreements between the parties regarding the subject matter contained herein. There are no verbal agreements that change this Agreement. This Agreement binds and benefits the parties hereto and their successors and assigns. This Agreement has been made under the laws of the State of Minnesota, and such laws will control its interpretation. [Signatures to Appear on Following Page] 45 Item 4. 4 IN WITNESS WHEREOF, Grantee and the EDA have signed this Agreement as of the day and year first above written. GRANTEE: Tom Letness Dairy Queen By:____________________________ Name: Tom Letness Its: Authorized Representative Date: __________________________ EDA: COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY By: Name: Kelli Bourgeois Its: Executive Director Date: __________________________ 46 Item 4. 5 EXHIBIT A LEGAL DESCRIPTION OF PROPERTY THAT PRT OF BLK 4 WALTONS REARR OF LOTS 33 AND 34 BLK 6 RESERVOIR HILLS COL HGTS DESC AS FOL; BEG AT THE NW COR OF SD BLK 4 TH S ALG THE W LINE OF SD BLK 4 39.65 FT THE E PRLL/W THE N LINE OF SD BLK 4 128 FT TH N PRLL/W THE W LINE OF SD BLK 4 39.65 FT TO THE N LINE OF SD BLK 4 TH W ALG SD N LINE TO THE POB; SUBJ TO EASE OF REC 47 Item 4. 6 EXHIBIT B PROPERTY IMPROVEMENTS SUBJECT TO 50% REIMBURSEMENT This attachment contains a summary of the project identified in the application for the Façade Improvement Grant Program. The Summary reflects the Grantee’s proposed project as approved by the EDA on September 7th, 2021 and may reflect minor changes to the total cost and minor changes in the proposed project that occurred subsequent to application submission. The application is incorporated into this grant agreement by reference and is made a part of this grant agreement as follows. If the application or any provision in this application conflicts with or is inconsistent with other provisions of this agreement or the project summary contained in this Attachment B, the terms and descriptions contained in this grant agreement and the Project summary shall prevail. Project Summary: Repainting of the entire exterior of the building totaling an amount equal to $3,500. 48 Item 4. ECONOMIC DEVELOPMENT AUTHORITY AGENDA SECTION BUSINESS ITEMS MEETING DATE SEPTEMBER 7, 2021 ITEM: Façade Improvement Grant for Hairatage, 530 40th Avenue NE DEPARTMENT: Community Development BY/DATE: Aaron Chirpich – 9-02-2021 BACKGROUND: The EDA has received a Façade Improvement Grant application from Donna Mahlmann for the Hairatage building located at 528 40thAvenue NE. Mrs. Mahlmann is requesting a $3,100 grant to support her proposed $6,200 stucco repair and painting project. The project scope includes fixing several damaged stucco areas on the South and West sides of the building and a full repainting of the repaired areas. The building is situated on a corner lot at the intersection of 40th Avenue NE and Summit Street NE. Therefore, all sides of the building are visible from a public street. It is important to note that this property did receive a $4,684 Façade Improvement Grant from the EDA in 2019 for stucco repair, repainting, and new awnings on the main façade (North side). At that time, the building was not owned by Mrs. Mahlmann, as she was leasing the space and received the grant as a tenant. The program guidelines do not prohibit multiple grant awards for the same property. However, the EDA’s grant agreement contracts do state the following: “the EDA has proposed to make grants of money in the maximum amount of $5,000 per parcel of real property, to property owners, tenants, or nonprofit organizations.” It is staff’s opinion that offering a second grant to the same property in this case is open to interpretation by the EDA. Given the fact that since the last grant award, the building has been purchased by the applicant, staff is supportive of the request, as Mrs. Mahlmann has shown a commitment to investing long-term in the community. RECOMMENDED MOTION(S): MOTION: Move to waive the reading of Resolution 2021-17, there being ample copies available to the public. MOTION: Move to adopt Resolution 2021-17, a resolution approving the form and substance of the façade improvement grant agreement, and approving authority staff and officials to take all actions necessary to enter the authority into a façade improvement grant agreement with Donna Mahlmann. ATTACHMENT(S):  Resolution 2021-17  Application and Narrative  Estimates  Project Photos  Sample Grant Agreement 49 Item 5. 50 Item 5. 51 Item 5. 52 Item 5. 53 Item 5. 54 Item 5. 55 Item 5. 56 Item 5. 57 Item 5. 58 Item 5. Resolution 2021-17 RESOLUTION NO. 2021-17 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 DONNA MAHLMANN. 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 the City’s commercial corridors, pursuant to a Façade Improvement Grant Agreement with Donna Mahlmann (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 Donna Mahlmann, as recommended by the Community Development Department of the City, in accordance with the Program guidelines. BE IT FURTHER RESOLVED, that Kelli Bourgeois, as the Executive Director 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 Kelli Bourgeois, as the Executive Director 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 7th, 2021 ORDER OF ECONOMIC DEVELOPMENT AUTHORITY Passed this 7th day of September, 2021 Offered by: Seconded by: Roll Call: Marlaine Szurek, President Attest: Secretary 59 Item 5. FAÇADE IMPROVEMENT GRANT AGREEMENT THIS FAÇADE IMPROVEMENT GRANT AGREEMENT (“Agreement”), dated this _____day of September, 2021 (the “Effective Date”), is entered into by and between Donna Mahlmann, Hairatage (the “Grantee”), and the Columbia Heights Economic Development Authority (the “EDA”). RECITALS WHEREAS, Grantee is the owner at certain Property located at 528 40th Ave NE in the City of Columbia Heights (the “City”), Anoka County, Minnesota, and legally described in Exhibit A hereto (the “Property”); WHEREAS, the EDA, in cooperation with the City and its police department, has instituted a Façade Improvement Grant Program (the “Program”) for the purpose of revitalizing existing store fronts, increasing business vitality and economic performance, and decreasing criminal activity; WHEREAS, as part of the Program, the EDA has proposed to make grants of money in the maximum amount of $5,000.00 per parcel of real property, to property owners, tenants, or nonprofit organizations, in order to revitalize, rehabilitate, and restore exterior store fronts within the City, increase business vitality and economic performance in the City, and in certain instances, to provide monitored surveillance within the City; and WHEREAS, Grantee desires to participate in the Program, on the terms and conditions set forth below. NOW, THEREFORE, in consideration of the premises and of the agreements hereinafter contained, the parties agree as follows: 1. Property Improvements: Grantee agrees to complete the improvements at the Property that are identified on Exhibit B attached hereto (the “Improvements”), subject to the following terms and conditions: a. If requested by the EDA, Grantee shall provide plans and specifications to the EDA, detailing the Improvements to be constructed (the “Plans”). If Grantee wishes to revise the Plans, Grantee must submit the revised Plans to the EDA at the address provided herein. The EDA shall give written notice of its approval or disapproval of the revisions to the Plans, and if the EDA does not give such written approval or disapproval within ten (10) business days after receipt of Grantee’s revised Plans, the EDA shall be deemed to have approved the revisions to the Plans. b. The Improvement shall be constructed consistently with the Plans, as the same may be revised pursuant to Section 1(a) herein. The cost to complete construction of the Improvements shall be defined as the “Improvement 60 Item 5. 2 Costs.” The Improvements shall be completed in a first-class manner, consistent with the Plans, if any, and in compliance with all applicable laws, rules, and regulations. Grantee shall obtain all required permits and approvals from the City and any other governing authority with jurisdiction over the Property related to the construction of the Improvements. The out-of-pocket costs for such permitting and approvals shall be the responsibility of Grantee, provided the same shall be included in the definition of “Improvement Costs,” and subject to the provisions of Section 2 of this Agreement. c. Grantee agrees to commence the Improvements within sixty (60) days following the Effective Date, and to complete the Improvements within six (6) months following the issuance of all necessary building permits, but in no event later than eight (8) months following the Effective Date. 2. Payment of Grant Funds: Grantee shall be responsible for making initial payment to all contractors involved in the construction of the Improvements. Upon final completion of the Improvements, Grantee shall make a written request to the EDA for reimbursement of one-half (1/2) of the actual Improvement Costs incurred by Grantee, but in no event shall the reimbursement exceed Five Thousand Dollars ($5,000.00). The written request shall include: a. Proof of final inspection of the Improvements by the City building inspector; b. Before and after photographs of the Property, reflecting the Improvements made (as well as follow-up transmission of electronic files of such photographs), and reflecting that the Improvements were completed consistently with any approved Plans; c. A copy of the final invoice(s) received from the contractor(s) who completed the Improvements; and d. Proof of payment of invoice(s) that comprised the Improvement Costs. Following Grantee’s written request for reimbursement, Grantee shall cooperate with the EDA in delivering to the EDA such follow-up information as is reasonably requested by the EDA in order to review the Improvements and Improvement Costs reimbursement request. Within twenty-one (21) days following receipt of Grantee’s written request for reimbursement of Improvement Costs, the EDA shall: (i) make payment of the reimbursement, (ii) send Grantee written explanation of such other items of information as are needed by the EDA to evaluate the reimbursement request, or (iii) send Grantee written explanation of the EDA’s reasons for denial of repayment of any of Grantee’s requested reimbursement. 3. Liability for Improvements: Neither the City nor the EDA shall in any event be liable to the Grantee, nor to any of its agents, employees, guests or invitees at the Property for, and the Grantee shall indemnify, save, defend, and hold harmless the City and the EDA from, any claims or causes of action, including attorney’s fees incurred by the City or the EDA, arising from defect or claimed defect of any of the Improvements, 61 Item 5. 3 or arising from any action of the City or the EDA under this Agreement. This section shall survive the termination or expiration of this Agreement. 4. Written Notice: Wherever any notice is required or permitted hereunder, such notice shall be in writing. Any notice or document required or permitted to be delivered hereunder shall be deemed to be delivered when actually received by the designated addressee or regardless of whether actually received or not, when deposited in the United States Mail, postage prepaid, certified mail, return receipt requested, addressed to the parties hereto at their respective addresses, as set forth below, or at such other address as they may subsequently specify by written notice. If to the EDA: Columbia Heights EDA Community Development Department 590 40th Avenue N.E. Columbia Heights, MN 55421 If to Grantee: Hairatage Attn: Donna Mahlmann 528 40th Ave NE Columbia Heights, MN 55421 5. Captions; Choice of Law; Etc. The paragraph headings or captions appearing in this Agreement are for convenience only, are not a part of this Agreement, and are not to be considered in interpreting this Agreement. This Agreement constitutes the complete agreement between the parties and supersedes any prior oral or written agreements between the parties regarding the subject matter contained herein. There are no verbal agreements that change this Agreement. This Agreement binds and benefits the parties hereto and their successors and assigns. This Agreement has been made under the laws of the State of Minnesota, and such laws will control its interpretation. [Signatures to Appear on Following Page] 62 Item 5. 4 IN WITNESS WHEREOF, Grantee and the EDA have signed this Agreement as of the day and year first above written. GRANTEE: Donna Mahlmann Hairatage By:____________________________ Name: Donna Mahlmann Its: Authorized Representative Date: __________________________ EDA: COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY By: Name: Kelli Bourgeois Its: Executive Director Date: __________________________ 63 Item 5. 5 EXHIBIT A LEGAL DESCRIPTION OF PROPERTY LOT 1 AUDITORS SUBDIVISION NO 24 64 Item 5. 6 EXHIBIT B PROPERTY IMPROVEMENTS SUBJECT TO 50% REIMBURSEMENT This attachment contains a summary of the project identified in the application for the Façade Improvement Grant Program. The Summary reflects the Grantee’s proposed project as approved by the EDA on September 7th, 2021 and may reflect minor changes to the total cost and minor changes in the proposed project that occurred subsequent to application submission. The application is incorporated into this grant agreement by reference and is made a part of this grant agreement as follows. If the application or any provision in this application conflicts with or is inconsistent with other provisions of this agreement or the project summary contained in this Attachment B, the terms and descriptions contained in this grant agreement and the Project summary shall prevail. Project Summary: Repair stucco and repaint repaired areas of building totaling an amount equal to $6,200. 65 Item 5. ECONOMIC DEVELOPMENT AUTHORITY AGENDA SECTION OTHER BUSINESS MEETING DATE SEPTEMBER 7, 2021 ITEM: Expand Geographic Boundaries of the Façade Improvement Grant Program DEPARTMENT: Community Development BY/DATE: Aaron Chirpich – 9-2-2021 BACKGROUND: At the August 2nd EDA meeting, the EDA board discussed expanding the geographic boundaries of the Façade Improvement Grant Program. The program currently covers commercial properties located along Central Avenue NE between 37th and 47th Avenue NE, and commercial properties along 40th Avenue NE. At the August meeting, commissioners expressed a desire to expand the program to include commercial properties along University Avenue NE, 37th Avenue NE, and 37th Place NE. Staff recommend approval of expanding the program to these new locations. RECOMMENDED MOTION(S): MOTION: Move to expand the geographic boundaries of the Facade Improvement Grant Program to designate commercial properties located along University Avenue NE, 37th Avenue NE, and 37th Place NE as eligible to participate in the program. 66 Item 6. ECONOMIC DEVELOPMENT AUTHORITY AGENDA SECTION OTHER BUSINESS MEETING DATE SEPTEMBER 7, 2021 ITEM: Discuss Potential Redevelopment of 2201 37th Avenue NE DEPARTMENT: Community Development BY/DATE: Aaron Chirpich – 9-2-2021 BACKGROUND: At the August 2nd, EDA meeting, staff presented a redevelopment concept plan for the former Unique Thrift Store site at 2201 37th Avenue NE. The project presented included a full redevelopment of the site into a multifamily apartment community with no commercial or retail space. The board was generally receptive to redevelopment of the property with high-density residential housing, but wanted to see a commercial component integrated into the plans to create a mixed -use project. The board was also concerned with the lack of development credentials for the developer proposing the plan. Since the August meeting, the developer has revised their plans to include a 2,400 square foot commercial tenant space on the first floor that would be intended for a coffee shop/bistro use. The developer has not partnered with an experienced development firm at this time. Rather, the developer is requesting that staff present the revised plans to gauge interest from the EDA. If the EDA is interested in taking the concept further, the developer is prepared to seek out project partners for the project. ATTACHMENT(S):  Revised Site Plan 67 Item 7. 68 Item 7. 69 Item 7. 70 Item 7.