HomeMy WebLinkAbout01-02-2024 EDA Minutes
ECONOMIC DEVELOPMENT AUTHORITY
City Hall—Shared Vision Room, 3989 Central Ave NE
Tuesday, January 02, 2024
5:00 PM
MINUTES
The meeting was called to order at 5:00 pm by President Szurek.
CALL TO ORDER/ROLL CALL
Members present: Connie Buesgens; Kt Jacobs; Rachel James (virtual); Amada Márquez-Simula; Justice
Spriggs; Marlaine Szurek; Lamin Dibba
Staff Present: Andrew Boucher, City Planner; Aaron Chirpich, Community Development Director;
Mitchell Forney, Community Development Coordinator; Kevin Hansen, Interim City Manager; and Sara
Ion, City Clerk
PLEDGE OF ALLEGIANCE
CONSENT AGENDA
1. Approve the minutes of the regular EDA Meeting of October 23, 2023.
2. Approve financial reports and payment of bills for October and November 2023 – Resolution No.
2024-01.
Márquez-Simula noted on page 9 of the minutes that the City is updating the gender pronouns and
that there is a “he/she” instead of using “they”.
Motion by Jacobs, seconded by Buesgens, to approve the Consent Agenda as presented. A roll call vote
was taken. All ayes of present. MOTION PASSED.
RESOLUTION NO. 2024-01
A RESOLUTION OF THE ECONOMIC DEVELOPMENT AUTHORITY OF COLUMBIA HEIGHTS, MINNESOTA,
APPROVING THE FINANCIAL STATEMENTS FOR THE MONTHS OF OCTOBER AND NOVEMBER 2023
AND THE PAYMENT OF THE BILLS FOR THE MONTHS OF OCTOBER AND NOVEMBER 2023.
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 October and Novemb er 2023 have been
reviewed by the EDA Commission; and
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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, financial 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 as part of the permanent records of the Columbia
Heights Economic Development Authority.
ORDER OF ECONOMIC DEVELOPMENT AUTHORITY
Passed this 2nd day of January 2024
Offered by: Kt Jacobs
Seconded by: Connie Buesgens
Roll Call: All ayes of present. MOTION PASSED.
Vice President
Attest:
Secretary
BUSINESS ITEMS
3. Election of Economic Development Authority Officers
Chirpich welcomed Szurek back to the EDA and welcomed Dibba to the EDA.
Márquez-Simula asked if President Szurek and Dibba could introduce themselves. President
Szurek stated that she has served on the EDA for 30 years and previously was on the City
Council and Planning Commission. Dibba mentioned that he has lived in Columbia Heights for
15 years and is originally from The Gambia West Africa. He added that he would like to
contribute to the community because he loves the City. He owns a beauty shop business and
a grocery store.
Chirpich noted that in 2023 the president was Szurek, vice president was James , and the
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treasurer was Jacobs. He explained that they will take nominations for each position.
Jacobs nominated Szurek for EDA President.
Chirpich called for nominations for Vice President of the EDA. James nominated herself.
Márquez-Simula nominated James.
Chirpich called for nominations for treasurer of the EDA. Spriggs nominated himself.
Chirpich noted that a motion is not required for the nominations and that there would simply
be a vote.
Forney called for a vote to nominate Szurek as President of the Economic Development
Authority. A roll call vote was taken. A roll call vote was taken. All ayes of present.
Forney called for a vote to nominate James as Vice President of the Economic Development
Authority. A roll call vote was taken. A roll call vote was taken. All ayes of present.
Forney called for a vote to nominate Spriggs as Treasurer of the Economic Development
Authority for 2024. A roll call vote was taken. A roll call vote was taken. All ayes of present.
Chirpich stated that the next step is to make a motions to elect each individual position with
President Szurek leading the EDA through the process since she is the newly elected
President. It should be noted that the EDA bylaws require the City Manager (Kevin Hansen) to
serve as the “Executive Director”, the Community Development Director (Aaron Chirpich) to
serve as “Deputy Director” and the Finance Director (Joseph Kloiber) to serve as the
“Assistant Treasurer”. The bylaws also specify that the position of “Secretary” be appointed
by the EDA. Thus, it is recommended that the Community Development Coordinator, Mitchell
Forney, serve as the Secretary until the department’s secretary position is filled.
Motion by Márquez-Simula, seconded by Spriggs to elect Marlaine Szurek as President of the
Economic Development Authority. A roll call vote was taken. All ayes of present. MOTION
PASSED.
Motion by Márquez-Simula, seconded by Spriggs to elect Rachel James as Vice President of
the Economic Development Authority. A roll call vote was taken. All ayes of present. MOTION
PASSED.
Motion by Márquez-Simula, seconded by Jacobs to elect Justice Spriggs as Treasurer of the
Economic Development Authority. A roll call vote was taken. All ayes of present. MOTION
PASSED.
Motion by Jacobs, seconded by Buesgens to appoint Mitchell Forney as the Secretary of the
Economic Development Authority. A roll call vote was taken. All ayes of present. MOTION
PASSED.
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Following ratification of the above motions, the newly elected President of the EDA will now preside
over the remainder of the meeting.
4. Designating the Official Depositories of the Economic Development Authority
Chirpich reported that the EDA is required to designate by resolution the depositories used for its
funds and investments. The Resolution 2024-02 follows the general format of resolutions passed in
previous years by the EDA and City. Most general banking transactions of the EDA and City are
conducted through Northeast Bank. Accounts are also maintained at U.S. Bank for certain
specialized services such as payroll and debt service payments.
Chirpich stated the only material difference between this proposed resolution and the resolution
adopted annually by the City Council is that the EDA resolution allows for the EDA’s funds to be
held in accounts under the name of the City. This has always been the EDA’s practice. Since the
creation of the EDA in 1996, it has never had a separate checking account under its own name. All
EDA expenditures since its inception have been made using checks drawn in the City’s name on
behalf of the EDA. Staff recommends maintaining these two banking relationships, as they meet
the EDA’s current needs, and provide capacity for addressing the EDA’s evolving needs for
electronic banking services. There is one difference between this year’s depositories and those of
2023. Wells Fargo is no longer used by the EDA for its payroll processing or any other transactions
and has been removed from the depository’s resolution.
Motion by Jacobs, seconded by Buesgens, to waive the reading of Resolution No. 2024-02, there being
ample copies available to the public. A roll call vote was taken. All ayes of present. MOTION PASSED.
Motion by Jacobs, seconded by Buesgens, to adopt Resolution No. 2024-02, a Resolution of the
Columbia Heights Economic Development Authority, designating official depositories. A roll call vote
was taken. All ayes of present. MOTION PASSED.
RESOLUTION NO. 2024-02
A RESOLUTION OF THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY DESIGNATING
OFFICIAL DEPOSITORIES
Now, therefore, in accordance with the bylaws and regulations of the Columbia Heights Economic
Development Authority (the Authority), the Board of Commissioners of the Authority makes the
following:
ORDER OF BOARD
IT IS HEREBY RESOLVED, that Northeast Bank, and U.S. Bank, are hereby designated as depositories for
the Authority’s funds.
IT IS FURTHER RESOLVED, that the funds of the Authority can be held in accounts at these depositories
under the name and federal identification number of the City of Columbia Heights, Minnesota (the
City), together with the funds of the City, provided that separate fund accounting records are
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maintained for the respective Authority and City shares of such accounts in a manner consistent with
generally accepted accounting and auditing standards.
IT IS FURTHER RESOLVED, that the responsibility for countersigning orders and checks drawn against
funds of the Authority, assigned in the Authority’s bylaws to the Authority President, is hereby
delegated to the City Mayor.
IT IS FURTHER RESOLVED, that checks, drafts, or other withdrawal orders issued against the funds of
the Authority on deposit with these depositories under the City’s name shall be signed by the
following:
City Mayor
City Manager
City Finance Director
and that said banks are hereby fully authorized to pay and charge said accounts for any such checks,
drafts, or other withdrawal orders issued by the City on behalf of the Authority.
IT IS FURTHER RESOLVED, that Northeast Bank, and U.S. Bank, are hereby requested, authorized and
directed to honor checks, drafts or other orders for the payment of money drawn in the City’s name on
behalf of the Authority, including those drawn to the individual order of any pe rson or persons whose
name or names appear thereon as signer or signers thereof, when bearing or purporting to bear the
facsimile signatures of the following:
City Mayor
City Manager
City Finance Director
and that Northeast Bank, and U.S. Bank, shall be entitled to honor and to charge the Authority, or the
City on behalf of the Authority, for all such checks, drafts or other orders, regardless of by whom or by
what means the facsimile signature or signatures thereon may have been affixed thereto, if such
facsimile signature or signatures resemble the facsimile specimens duly certified to or filed with the
Banks by the City Finance Director or other officer of the Authority or City.
IT IS FURTHER RESOLVED, that the City Finance Director or their designee shall be authorized to make
electronic funds transfers in lieu of issuing paper checks, subject to the controls required by Minnesota
Statutes and by the City of Columbia Heights’ financial policies.
IT IS FURTHER RESOLVED, that all transactions, if any, relating to deposits, withdrawals, re-discounts
and borrowings by or on behalf of the Authority with said depositories, made directly by the Authority
or by the City on the behalf of the Authority, prior to the adoption of t his resolution be, and the same
hereby are, in all things ratified, approved and confirmed.
IT IS FURTHER RESOLVED, that any bank designated above as a depository, may be used as a custodian
(a.k.a. depository) for investment purposes, so long as the investments comply with authorized
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investments as set forth in Minnesota Statutes.
IT IS FURTHER RESOLVED, that Bank of New York Mellon DBA Pershing Advisor Solutions LLC may be
used as a custodian (a.k.a. depository) for investment purposes so long as the investments comply with
the authorized investments as set forth in Minnesota Statutes.
IT IS FURTHER RESOLVED, that the funds of the Authority can be held in accounts at such investment
custodians under the name and federal identification number of the City, together with the funds of
the City, provided that separate fund accounting records are maintained for the respective Authority
and City shares of such accounts in a manner consistent with generally accepted accounting and
auditing standards.
BE IT FURTHER RESOLVED, that any and all resolutions heretofore adopted by the Board of
Commissioners of the Authority with regard to depositories or brokerage firms are superseded by this
resolution.
ORDER OF ECONOMIC DEVELOPMENT AUTHORITY
Passed this 2nd day of January 2024
Offered by: Kt Jacobs
Seconded by: Connie Buesgens
Roll Call: All ayes of present. MOTION PASSED.
Vice President
Attest:
Secretary
5. Asbestos and Personal Item Abatement for EDA Owned Properties Located at 941 44th Ave, 3853
Central Ave NE, and 3851 Central Ave NE.
Forney reported stated that the item is regarding approving bids for the removal of hazardous
material and household items from 941 44th Ave, 3853 Central Ave NE, and 3851 Central Ave NE.
Earlier this year, the EDA purchased the properties intending to demolish them and prepare the
sites for redevelopment. It is the intent of the fire department to utilize 3853 Central in a training
burn scenario. Due to this the abatement of household items and hazardous materials are being
bid separate from the demolition. The scope of work submitted in the bid request included the
removal of asbestos-containing materials, appliances, and accessories containing hazardous
materials, alongside the removal of the limited remaining household items. In response to the
request for bids, the EDA received one quote. The quote was submitted by Dennis Environmental
Operations who also recently completed the abatement of 243 5th St and 841 49th St. The Dennis
Environmental bid came in at $16,150, which pencils out to $5,383 per property. Looking at
previous projects, this is well within the expected range per property. Dennis Environmental
Operations shall furnish the services and necessary equipment to complete all work specified in the
scope of work. All work will be performed in accordance with OSHA regulations, Minne sota
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Department of Health Asbestos Abatement Rules, and other applicable Federal and State
regulations. Dennis Environmental Operations shall insure proper clean up, transport, and disposal
of hazardous and asbestos-containing materials and household items.
Questions/Comments from Members:
Buesgens asked when the fire department would like to utilize the property. Forney replied in the
spring.
Márquez-Simula asked if any of the items such as windows, or cabinets in the property were
brought to ReStore instead of a landfill. Forney replied that appliances were taken by the fire
department and that they work with ReStore if there are eligible items. He added that a lot of the
items would not have qualified for ReStore since they were outdated. Chirpich added that a
company reached out and requested to have access to properties like this to take any items that
may be of value instead of it going to a landfill. Staff will follow up with the company.
Motion by Buesgens, seconded by Jacobs, to accept the bid of $16,150 by Dennis Environmental
Operations, for the removal of all hazardous materials and household items located at 941 44th
Ave, 3853 Central Ave NE, and 3851 Central Ave NE; and furthermore, to authorize the President
and Executive Director to enter into an agreement for the same. A roll call vote was taken. All ayes
of present. MOTION PASSED.
6. Sale of 4243 5th Street to Habitat for Humanity
Forney reported in early 2023, representatives of the owner of 4243 5th Street approached the
community development Staff, expressing the desire to sell the blighted 1916 single-family home
on the site. To facilitate the acquisition and demolition, the EDA utilized income restricted pooled
TIF funds from its scattered site district. The overarching project aimed at selli ng the vacant lot to
Habitat for Humanity, allowing them to construct a single-family home for eventual sale to an
income-qualified owner-occupant. With the property now cleared through demolition, the next
step is its development, scheduled for the upcoming spring.
Forney added that the proposed purchase agreement, which staff presents for approval, formalizes
the key components previously discussed by the EDA. Notable points include the sale of the
property to Habitat for $1.00, the construction of a new 3-bedroom, 2-story single-family home by
Habitat for Humanity (with a floor plan endorsed by the EDA), and the requirement that the home
be sold to an income-qualifying family meeting the criteria of Habitat's affordable homeownership
program. The agreement accommodates Habitat's construction timeline (planned for this spring),
but sets the completion deadline for no later than December 31, 2025. Staff strongly recommends
approving the purchase agreement, marking a crucial step in what the City anticipates will be a
lasting partnership for fostering affordable homeownership within the City.
Questions/Comments from Members:
Buesgens asked how many Habitat for Humanity Homes are in the City. Forney replied that Staff do
not know how many are in the City. Habitat for Humanity has two types of programs; one is a
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complete rebuild of lots while the other is rehabilitation. President Szurek noted that when she was
on the City Council, they did five Habitat for Humanity Homes.
Márquez-Simula asked if Staff would be able to find out how many Habitat for Humanity Homes are
in the City.
Buesgens asked if residents of a Habitat for Humanity home need to stay in the home for a certain
amount of time until they could sell it. Jacobs stated she thought it was seven to ten years.
Buesgens asked when the Habitat for Humanity house is sold if it would be at market rate or if it
remains an affordable house. Forney replied that it depends on the house and that a land trust is
put on it so that it would be sold back to Habitat for Humanity. He added that he believed it was 15
years and that it is recorded on the deed of the house. Buesgens suggested that there would be a
land trust on the properties.
Motion by Jacobs, seconded by Spriggs, to waive the reading of Resolution No. 2024-03, there being
ample copies available to the public. A roll call vote was taken. All ayes of present. MOTION PASSED.
Motion by Jacobs, seconded by Spriggs, to adopt Resolution No. 2024-03, a Resolution of the Economic
Development Authority of Columbia Heights, Minnesota, approving the purchase agreement between
Twin Cities Habitat for Humanity, and the Economic Development Authority of Columbia Heights,
Minnesota. A roll call vote was taken. All ayes of present. MOTION PASSED.
RESOLUTION NO. 2024-03
A RESOLUTION APPROVING THE PURCHASE AGREEMENT BETWEEN TWIN CITIES HABITAT FOR
HUMANITY, AND THE ECONOMIC DEVELOPMENT AUTHORITY OF COLUMBIA HEIGHTS, MINNESOTA
BE IT RESOLVED BY the Board of Commissioners ("Board") of the Columbia Heights Economic
Development Authority (the "Authority") as follows:
SECTION 1. RECITALS.
1.01. The Authority (“Seller”) and Twin Cities Habitat for Humanity (“Buyer”) desire to enter
into a purchase agreement (the “Purchase Agreement”) pursuant to which the Buyer will acquire
certain property in the City located at 4243 5th Street (the “Property”) from the Seller for
redevelopment purposes. The Property is described in Exhibit A attached hereto.
1.02. Pursuant to the Purchase Agreement, the Buyer will purchase the Property from the Seller
for a purchase price of $1.00 plus related closing costs.
1.03. The Authority finds that the sale of the Property is consistent with the City’s
Comprehensive Plan and will result in redevelopment of the empty lot located at 4243 5th Street. Such
sale of this Property best meets the community’s needs and will facilitat e affordable homeownership
opportunities within the City.
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SECTION 2. PURCHASE AGREEMENT APPROVED.
2.01. The Authority hereby ratifies and approves the actions of Authority staff and of Kennedy
Graven (“Legal Counsel”) in researching the Property and preparing and presenting the Purchase
Agreement. The Authority approves the Purchase Agreement in the form pr esented to the Authority
and on file at City Hall, subject to modifications that do not alter the substance of the transaction and
that are approved by the President and Executive Director, provided that execution of the Purchase
Agreement by those officials shall be conclusive evidence of their approval.
2.03. Authority staff and officials are authorized to take all actions necessary to perform the
Authority’s obligations under the Purchase Agreement as a whole, including without limitation
execution of any documents to which the Authority is a party referenced in or attached to the
Purchase Agreement, and any deed or other documents necessary to sell the Property to the Buyer, all
as described in the Purchase Agreement
ORDER OF ECONOMIC DEVELOPMENT AUTHORITY
Passed this 2nd day of January 2024
Offered by: Kt Jacobs
Seconded by: Justice Spriggs
Roll Call: All ayes of present. MOTION PASSED.
Vice President
Attest:
Secretary
President Szurek asked if there was an update on the development of 4300 Central Ave NE. Chirpich
replied that Staff have been meeting with Alatus and expect them to enter into land use approval soon.
It is still a goal to have break ground in 2024. There are continued discussions regarding the grocery
store with the biggest challenge being finances right now. There are no significant issues and the
project is still on track.
James noted that the sign next to the property, abutting Central Avenue has a banner that lists stores
that are no longer there. She asked if it was part of the remediation process to get rid of the sign.
Chirpich replied that it was not a part of the demolition scope but will come down as part of the
redevelopment process.
Márquez-Simula asked if there was a timeline. Chirpich replied there was no timeline established.
Chirpich explained that there would be an open house at City Hall at 6 pm on Tuesday, January 9, 2024
regarding the Medtronic site Comprehensive Plan amendment. He encouraged the EDA commissioners
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to attend. Hansen added that all of the commissions have been invited to the meeting.
Márquez-Simula asked if updates from past meetings could be included in the Other Business portion
of the Agenda. She provided an example of last meeting discussion where the fire suppression system
was an item on the Agenda. She mentioned that it would be nice to know if there are any updates on
any items that are moving forward. Forney replied that he would include that in the next meeting
Agenda.
ADJOURNMENT
Motion by Dibba, seconded by Márquez-Simula, to adjourn the meeting at 5:46 pm. A roll call vote was
taken. All ayes of present. MOTION PASSED.
Respectfully submitted,
_________________________
Mitchell Forney, Recording Secretary