HomeMy WebLinkAbout09-26-2022 EDA Minutes Special
SPECIAL ECONOMIC DEVELOPMENT
AUTHORITY MEETING
City Hall—Council Chambers, 590 40th Ave NE
Monday, September 26, 2022
5:00 PM
MINUTES
The special meeting was called to order at 5:00 pm by Chair Szurek.
CALL TO ORDER/ROLL CALL
Members Present: Gerry Herringer, Kt Jacobs, Amáda Márquez Simula (arrived at 5:06 pm), John
Murzyn Jr., Nick Novitsky, Marlaine Szurek
Members Absent: Connie Buesgens
Staff Present: Kelli Bourgeois, City Manager; Aaron Chirpich, Community Development Director; Joseph
Kloiber, Finance Director; Sara Ion, City Clerk; Mitchell Forney, Community Development Coordinator;
Alicia Howe, Administrative Assistant
PLEDGE OF ALLEGIANCE
CONSENT AGENDA
1. Approve the minutes of the regular EDA Meeting of September 6, 2022
2. Approve financial reports and payment of bills of August 2022 – Resolution No. 2022-17
Herringer questioned the bills regarding the three developer payments. Chirpich stated the payments
are biannual payments to various developers throughout the City that have TIF contracts.
Herringer asked about the fourth developer payment. Chirpich stated that it was a similar payment
and then gave the name of each development related to each payment.
Motion by Murzyn Jr, seconded by Márquez Simula, to approve the Consent Agenda as presented. All
ayes of present. MOTION PASSED.
RESOLUTION NO. 2022-17
A RESOLUTION OF THE ECONOMIC DEVELOPMENT AUTHORITY OF COLUMBIA HEIGHTS, MINNESOTA,
APPROVING THE FINANCIAL STATEMENTS FOR THE MONTH OF AUGUST 2022 AND THE PAYMENT OF
THE BILLS FOR THE MONTH OF AUGUST 2022.
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
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Special Economic Development Authority Meeting Page 2
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 August 2022 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 26th day of September, 2022
Offered by:
Seconded by:
Roll Call:
President
Attest:
Secretary
BUSINESS ITEMS
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3. Adoption of the 2023 Budget and Authorization of the EDA and HRA Levies
Chirpich reported that in late August, the proposed budget for the 2023 fiscal year was distributed
to the Council. Before the Council completes their final review of the proposed budget, 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 Proj ects; and to
authorize their respective 2022 tax levies, payable in 2023.
The EDA effectively has two separate tax levies after the Council granted the EDA certain HRA
powers in 1996. One tax levy is administered by the City under Minnesota Statutes, Sect ion 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 2023, the
EDA Levy would capture $297,100 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 $607,100.
The proposed 2023 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, the Façade Improvement Grant Program, and the Fire Supp ression Grand
Program. It is worth noting that the proposed 2023 budget for Fund 204 includes a 19% levy
increase, which represents an increase of $47,200 from 2022. This increase is primarily driven by
regular COLA increases and salary adjustments for the Community Development Director, and
Community Development Coordinator that resulted from the compensation study that was
completed this year. More detail regarding revenue and expenses was provided in the summary
budgets in the packet.
The following overview was provided:
Fund: 204 – EDA Administration -- Revenue $297,100, Expense $297,100
Fund: 408 – Redevelopment Projects -- Revenue $310,000, Expense $310,000
Total Revenue $607,100 and Total Expenses $607,100
Herringer asked about the levy for $310,000 in 2022. Chirpich stated that the levy was higher than
the budget so there was a surplus in 2022.
Motion by Márquez Simula, seconded by Jacobs, to waive the reading of Resolution 2022-18, there
being ample copies available to the public. All ayes of present. MOTION PASSED.
Motion by Márquez Simula, seconded by Novitsky, to adopt Resolution 2022-18, a resolution of the
Columbia Heights Economic Development Authority, adopting a budget for the fiscal year of 2023
and setting the 2022 tax levy, payable in 2023. All ayes of present. MOTION PASSED.
RESOLUTION NO. 2022-18
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A RESOLUTION OF THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY, ADOPTING A
BUDGET FOR THE FISCAL YEAR OF 2023 AND SETTING THE 2022 TAX LEVY, PAYABLE IN 2023 .
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 $297,100 for 2023; 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 $297,100 for taxes payable in 2023;
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 26th day of September, 2022
Offered by:
Seconded by:
Roll Call:
President
Attest:
Secretary
Motion by Márquez Simula, seconded by Murzyn Jr., to waive the reading of Resolution 2022-19,
there being ample copies available to the public. All ayes of present. MOTION PASSED.
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Motion by Novitsky, seconded by Jacobs, to adopt Resolution 2022-19, a resolution of the Columbia
Heights Economic Development Authority, adopting a budget for the fiscal year of 2023 and
authorizing a special benefit tax levy, payable in 2023. All ayes of present. MOTION PASSED.
RESOLUTION NO. 2022-19
A RESOLUTION OF THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY, ADOPTING A
BUDGET FOR THE FISCAL YEAR OF 2023 AND AUTHORIZING A SPECIAL BENEFIT TAX LEVY, PAYABLE
IN 2023.
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 469.108 1 (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 2023, and the proposed amount of the HRA Levy, payable in 2023, 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 2023 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 2023 under Section 469.033 of the HRA Act.
ORDER OF ECONOMIC DEVELOPMENT AUTHORITY
Passed this 26th day of September, 2022
Offered by:
Seconded by:
Roll Call:
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President
Attest:
Secretary
4. Adopt Resolution 2022-20, Authorizing Certain 2022 Inter-Fund Transfers
Director Chirpich stated that at the September 12, 2022, meeting, the Council approved certain
interfund transfers. Two of those transfers involve Funds of the Economic Development Authority,
and those transfers therefore also require approval by the Authority.
1. To transfer the $3,331,655 of assets received by EDA Redevelopment Fund 408 from the sale of
3989 Central Avenue; to the City for use within the new city hall project in Governmental Buildings
Fund 411 as follows: noncash value of office condominium shell to be constructed $2,115,600; cash
deposited to city hall construction escrow account at closing $421,748; cash deposited with EDA at
closing, in excess of EDA land cost $394,307.
2. To transfer $150,000 of surplus operating fund balance from EDA Administration Fund 204 to the
Governmental Equipment Fund 431. This combines with $1,850,000 of surplus separately
transferred from various City operating funds to the Governmental Equipment Fund 431, to provide
a total $2 million to extend the number of years for which Governmental Equipme nt Fund 431 is
sustainable. This is a funding mechanism the City and EDA use periodically to provide funding for
various capital purposes. The need to do this $2 million transfer is described in the narrative to City
Manager’s 2023 proposed budget. Staff notes that balance in the Governmental Equipment Fund
431 is available to all governmental functions of the EDA and City for capital equipment purchases.
This $150,000 transfer from EDA Fund 204 will still leave the remaining fund balance in EDA Fund
204, well above the established working capital target of 45% of next year’s budget for that fund .
Motion by Novitsky, seconded by Jacobs, to waive the reading of Resolution 2022-20, there being
ample copies available to the public. All ayes of present. MOTION PASSED.
Motion by Novitsky, seconded by Murzyn Jr., to adopt Resolution 2022-20, transferring $3,331,655
to the Governmental Buildings Fund 411 from EDA Redevelopment Fund 408, and transferring
$150,000 from EDA Administration Fund 204 to the Governmental Equipment Fund 431. All ayes of
present. MOTION PASSED.
RESOLUTION NO. 2022-20
A RESOLUTION OF THE ECONOMIC DEVELOPMENT AUTHORITY OF COLUMBIA HEIGHTS,
MINNESOTA, APPROVING THE TRANSFER OF $3,331,655 FROM EDA REDEVELOPMENT FUND 408
TO THE GOVERNMENTAL BUILDINGS FUND 411, AND APPROVING THE TRANSFER OF $150,000
FROM EDA ADMINISTRATION FUND 204 TO GOVERNMENTAL EQUIPMENT FUND 431.
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WHEREAS, the Economic Development Authority of Columbia Heights, Minnesota (the Authority)
carried out a redevelopment project at 3989 Central Avenue NE for multiple public purposes
including securing a site for a new city hall; and
WHEREAS, this project resulted in the Authority receiving certain assets totaling $3,331,655 over
the Authority’s cost in this project; and
WHEREAS, not intending to own the new city hall or any of its related assets, the Authority elects to
transfer these assets to the City for construction of the new city hall; and
WHEREAS, the Minnesota Office of the State Auditor has established a fund balance guideline for
local governments to generally apply to operating funds of the local government, because retaining
more fund balance that necessary for operations is a burden on taxpayers; and
WHEREAS, the operating fund of the Authority currently has fund balance above this threshold; and
WHEREAS, best financial practices include pairing the one-time source of such available fund
balance with appropriate one-time uses, such as purchases of capital equipment through the
Governmental Equipment Fund 431.
NOW, THEREFORE BE IT RESOLVED that, after appropriate examination and due consideration, the
Authority
1. Approves the transfer of $3,331,655 from EDA Redevelopment Fund 408 to the Governmental
Buildings Fund 411.
2. Approves the transfer of $150,000 from EDA Administration Fund 204 to Governmental
Equipment Fund 431.
ORDER OF ECONOMIC DEVELOPMENT AUTHORITY
Passed this 26th day of September, 2022
Offered by:
Seconded by:
Roll Call:
President
Attest:
Secretary
OTHER BUSINESS
Chirpich thanked the commissioners for convening that evening for the special EDA meeting. He stated
that there would be no regular EDA meeting in October 2022.
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Szurek asked about the “Rainbow Site”. Chirpich said there wasn’t an update and that they continue to
work with grocery partners for the site.
Chirpich stated that the Ratio Apartments obtained a temporary certificate of occupancy; there are still
some “punch list” items that remain on the exterior of the building. He further said that the Council
and commissioners will be invited for a tour of the building once it is complete.
Herringer asked about the number of potential tenants. Chirpich did not have an exact number, but
stated that it was difficult to do virtual tours when the building was not finished, so now that it is
finished, they should have more interest; they will update the commission on the leasing in the futur e.
ADJOURNMENT
Motion by Jacobs, seconded by Márquez Simula, to adjourn the meeting at 5:17 pm. All ayes. MOTION
PASSED.
Respectfully submitted,
_______________________________
Alicia Howe, Administrative Assistant