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03-06-2023 EDA Packet
ECONOMIC DEVELOPMENT AUTHORITY Public Safety Building—Training Room, 825 41st Ave NE Monday, March 06, 2023 5:00 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 830 2526 7731 or by Zoom at https://us02web.zoom.us/j/83025267731. For questions please call the Community Development Department at 763-706-3670. CALL TO ORDER/ROLL CALL PLEDGE OF ALLEGIANCE CONSENT AGENDA 1. Accept February 6, 2023 EDA Meeting Minutes 2. Approve the Financial Reports and Payment of the Bills for January 2023 MOTION: Move to approve the Consent Agenda as presented. BUSINESS ITEMS 3. Approve Purchase of 4243 5th Street and Approval of Inter-fund Loan MOTION: Move to waive the reading of resolution 2023 -07 and 2023-08, there being ample copies available to the public. MOTION: Move to approve Resolution 2023-07, a resolution authorizing an interfund loan for advance of funds from tax increment financing University Avenue Redevelopment District (no. C8) for costs in connection with the city-wide scattered site housing tax increment financing district MOTION: Move to approve Resolution 2023-08, a resolution approving the purchase agreement between the Economic Development Authority of Columbia Heights, Minnesota, and Lauren M. Bell 4. 40th and University Avenue Right-of-Way Purchase from MnDOT MOTION: Move to waive the reading of Resolution 2023-09, there being ample copies available to the public. MOTION: Move to adopt resolution 2023-09, a resolution approving the conveyance of real property between the Minnesota Department of Transportation and the Economic Development Authority of Columbia Heights, Minnesota 1 City of Columbia Heights AGENDA March 06, 2023 Economic Development Authority Page 2 5. Rail Werks Brewing Fire Suppression Grant Application MOTION: Move to waive the reading of Resolution 2023-10, there being ample copies available to the public. MOTION: Move to approve Resolution 2023-10, a resolution of the Economic Development Authority of Columbia Heights, Minnesota, approving the form and substance of the Fire Suppression Grant Agreement, and approving authority staff and officials to take all actions necessary to enter the authority into the Fire Suppression Grant Agreement with R ail Werks Brewing Depot. 6. Rail Werks Brewing Façade Improvement Grant Application MOTION: Move to waive the reading of Resolution 2023-11 there being ample copies available to the public. MOTION: Move to adopt Resolution 2023-11, 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 Rail Werks Brewing Depot PUBLIC HEARINGS OTHER BUSINESS 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 ECONOMIC DEVELOPMENT AUTHORITY Public Safety Building—Training Room, 825 41st Ave NE Monday, February 06, 2023 5:00 PM MINUTES The meeting was called to order at 5:00 pm by Chair Szurek. CALL TO ORDER/ROLL CALL Commissioners Present: Connie Buesgens, KT Jacobs, Rachel James, Amáda Márquez Simula, Justice Spriggs, Marlaine Szurek Commissioners Not Present: Gerry Herringer Staff Present: Kelli Bourgeois, City Manager; Aaron Chirpich, Community Development Director; Sara Ion, City Clerk; Ben Sandell, Communications Coordinator; Mitchell Forney, Community Development Coordinator; Alicia Howe, Administrative Assistant PLEDGE OF ALLEGIANCE OATH OF OFFICE Chirpich stated Ion administered the oath of office at an earlier t ime and would not need to administer the Oath of Office during the meeting. ELECTION OF OFFICERS 1. Election of Economic Development Authority Officers Chirpich stated pursuant to the bylaws of the Columbia Heights Economic Development Authority (the “EDA”), officers are required to be elected annually. He added that in order for an EDA Commissioner to be considered for an officer position, an EDA Commissioner must be nominated by another commissioner, or by him or herself. Chirpich noted that the EDA bylaws require the City Manager (Kelli Bourgeois) 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 department’s Administrative Assistant, Alicia Howe serve as the Secretary. Chirpich called for nominations for the President of the EDA. Szurek nominated herself. 3 Item 1. City of Columbia Heights MINUTES February 06, 2023 Economic Development Authority Page 2 Motion by Jacobs, seconded by Márquez Simula to elect Marlaine Szurek as President of the Economic Development Authority. A roll call vote was taken. All ayes of present. MOTION PASSED. Chirpich called for nominations for the Vice President of the EDA. Jacobs nominated herself. James asked what the role of the Vice President was. Chirpich stated it is to serve the role of the President, and have signing authority when the President is absent. Márquez Simula nominated James. Motion to elect Jacobs as Vice President of the Economic Development Authority. A roll call vote was taken. 2 ayes, 4 nays. MOTION FAILED 2-4. Nays: Jacobs, Szurek. Ayes: Márquez Simula, Buesgens, Spriggs, James. Motion to elect James as Vice President of the Economic Development Authority. A roll call vote was taken. 4 ayes, no nays. MOTION PASSED. Ayes: Márquez Simula, Buesgens, Spriggs, James. Nays: Jacobs, Szurek Chirpich stated they would be required to pass a motion to officially elect James as Vice President of the EDA. Szurek asked if that was required in the bylaws. Ion confirmed they would need to pass a motion. Motion by Márquez Simula, seconded by Spriggs to elect James as Vice President of the Economic Development Authority. A roll call vote was taken. 4 ayes, 2 nays. MOTION PASSED. Ayes: Márquez Simula, Buesgens, Spriggs, James. Nays: Jacobs, Szurek Chirpich called for nominations for the Treasurer of the EDA. Szurek nominated Jacobs. Szurek stated Herringer was the previous Treasurer. Jacobs asked if she could step into the role if Herringer did not desire the position and added she did not want to take the role from him. Chirpich stated there needed to be an election during the meeting. Szurek stated she did not think Herringer would be concerned about being the treasurer again. Chirpich noted the primary role of the Treasurer was to ask detailed questions regarding financials. Motion by Szurek, seconded by Buesgens to elect Jacobs as Treasurer of the Economic Development Authority. A roll call vote was taken. All ayes of present. MOTION PASSED. Motion by James, seconded by Márquez Simula to appoint Alicia Howe as the Secretary of the Economic Development Authority. A roll call vote was taken. All ayes of present. MOTION PASSED. Following ratification of the above motions, the newly elected President of the EDA will now preside over the remainder of the meeting. CONSENT AGENDA 4 Item 1. City of Columbia Heights MINUTES February 06, 2023 Economic Development Authority Page 3 2. Accept December 12, 2022 EDA Meeting Minutes. 3. Approve the Financial Reports and Payment of the Bills for November and December 2022 Motion by Buesgens, seconded by Jacobs to approve the Consent Agenda as presented. All ayes of present. MOTION PASSED. RESOLUTION NO. 2023-01 A RESOLUTION OF THE ECONOMIC DEVELOPMENT AUTHORITY OF COLUMBIA HEIGHTS, MINNESOTA, APPROVING THE FINANCIAL STATEMENTS FOR THE MONTHS OF NOVEMBER, AND DECEMBER 2022, AND THE PAYMENT OF THE BILLS FOR THE MONTHS OF NOVEMBER AND DECEMBER 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 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 November and December 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, 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 a part of the permanent records of the Columbia Heights Economic Development Authority. 5 Item 1. City of Columbia Heights MINUTES February 06, 2023 Economic Development Authority Page 4 ORDER OF ECONOMIC DEVELOPMENT AUTHORITY Passed this 6th day of February, 2023 Offered by: Buesgens Seconded by: Jacobs Roll Call: All ayes of present President Attest: Secretary BUSINESS ITEMS 4. Designating the Official Depositories of the Economic Development Authority Forney stated the EDA is required to designate by resolution the depositories used for its funds and investments. He added the resolution 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 Wells Fargo Bank of Minnesota, N.A. and U.S. Bank for certain specialized services such as payroll and debt service payments. Forney noted 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. He reviewed the history of the EDA, stating, 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 three banking relationships, as they meet the EDA’s current needs, and provide capacity for addressing the EDA’s evolving needs for electronic banking services. Forney stated there are two differences between this year’s depositories and those of 2022. First, is the addition of US bank, which has a history of being utilized on and off by the EDA. Second, is the restriction of investment custodians from the previously “any with a MN office” to only Pershing and the banks authorized as depositori es. This was required after a change to the municipal advisor rule. All investments must still comply with authorized investments as set forth in Minnesota statutes. Questions/Comments from Members: 6 Item 1. City of Columbia Heights MINUTES February 06, 2023 Economic Development Authority Page 5 Szurek asked why they use multiple banks. Bourgeois stated it had to do with limits of money in each bank. Motion by James, seconded by Szurek to waive the reading of Resolution 2023-02, there being ample copies available to the public. All ayes of present. MOTION PASSED. Motion by James, seconded by Buesgens to adopt Resolution 2023-02, a resolution designating official depositories, for the Columbia Heights Economic Development Authority. All ayes of present. MOTION PASSED. RESOLUTION NO. 2023-02 A RESOLUTION OF THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTH ORITY 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, U.S. Bank, and Wells Fargo Bank of Minnesota, N.A., 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 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. 7 Item 1. City of Columbia Heights MINUTES February 06, 2023 Economic Development Authority Page 6 IT IS FURTHER RESOLVED, that Northeast Bank, U.S. Bank, and Wells Fargo Bank of Minnesota, N.A., 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 Authorit y, including those drawn to the individual order of any person 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 Wells Fargo Bank of Minnesota, N.A., 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 Authorit y 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 this 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 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 6th day of February, 2023 Offered by: James 8 Item 1. City of Columbia Heights MINUTES February 06, 2023 Economic Development Authority Page 7 Seconded by: Buesgens Roll Call: All ayes of present. President Attest: Secretary 5. Amendment of EDA Bylaws to Adjust Meeting Start Time Forney stated after reviewing the Columbia Heights Economic Development Authority (the "EDA") bylaws, staff has identified outdated language regarding the regular meeting start time for the authority. He mentioned currently, the bylaws set a specific time of 6:30 p.m. for monthly EDA meetings. Due to the recent change of the City Council meeting start time, staff thought it best to remove the specific time from the bylaws. He noted many times, the EDA meeting is shifted between 5:00 P.M. and 5:30 P.M. depending on the content of the EDA agenda. By giving the EDA the ability to shift between meeting times without having to follow special meeting procedures, the EDA will have the flexibility necessary to limit wasted time between the EDA and City Council meetings. The EDA meeting time is still broadcasted on all public outlets and advertised three days prior to any meeting, regular or special. He stated in the agenda there is the amended and restated bylaws of the EDA. All proposed language changes in the EDA b ylaws is marked with an underline for an addition or a strikeout to indicate a deletion. Motion by Spriggs, seconded by Buesgens to waive the reading of Resolution 2023-03, there being ample copies available to the public. All ayes of present. MOTION PASSED. Motion by Spriggs, seconded by Buesgens to adopt Resolution 2023-03, a resolution approving an amendment to the Economic Development Authority’s bylaws. All ayes of present. MOTION PASSED. RESOLUTION NO. 2023-03 A RESOLUTION OF THE ECONOMIC DEVELOPMENT AUTHORITY OF COLUMBIA HEIGHTS, MINNESOTA, APPROVING AN AMENDMENT TO THE ECONOMIC DEVELOPMENT AUTHORITY’S BYLAWS WHEREAS, the Columbia Heights Economic Development Authority (the “Authority”) has considered proposed certain amendments to its Bylaws; and WHEREAS, Article IV, Section 6 of the Bylaws provides for amendments to the Bylaws by majority vote of the Board at any regular or special meeting of the Authority; and WHEREAS, The Board has determined that it is reasonable, expedient and in the best interest of the public to amend Article III, Section 1 of the Bylaws to change the regular meeting time of the Authority Board; and WHEREAS, the Authority has thoroughly reviewed the proposed amendment to the bylaws. 9 Item 1. City of Columbia Heights MINUTES February 06, 2023 Economic Development Authority Page 8 NOW, THEREFORE BE IT RESOLVED that, after appropriate examination and due consideration, the Authority 1. hereby approves the amendment to its Bylaws in the form attached to this Resolution as Exhibit A. ORDER OF ECONOMIC DEVELOPMENT AUTHORITY Passed this 6th day of February, 2023 Offered by: Spriggs Seconded by: Buesgens Roll Call: All ayes of present President Attest: Secretary 6. Ruff Love Doggy Daycare Fire Suppression Grant Application Forney stated in 2022 the EDA created the Fire Suppression Grant Program (“Program”). Through this program the EDA wanted to assist local businesses with the cost burdening work of installing fire suppression systems within commercial buildings. As noted in the program g uidelines, a lot of the commercial properties in Columbia Heights do not have fire suppression systems. The cost of adding these systems, when required, is very prohibitive for small businesses. Certain businesses and certain changes in use require the addition of fire suppression systems. He added, since the creation of the program, there has been several interested business owners, but zero applicants. He noted staff believed Miller’s Bar would have been a prime target for the program, but when asked, the owner said that even with the grant it would be too expensive. Staff encouraged the owner to still apply but have not received any word since. There are currently two applications in the pipeline. The first is before you this evening. The second is for Rail Werks brewery which is planned to go into the strip mall at 4001 Central Ave NE. Forney noted the first applicant is Jessen Como the owner of Ruff Love Dogs. Ruff Love Dogs currently operates in NE Minneapolis but is being forced out of their building due to a pending redevelopment project. Ruff Love Dogs is now under contract to purchase the building located at 3801 3rd ST NE in Columbia Heights and has plans to retrofit the building for its new use as a dog kennel/daycare. The applicant has received two competitive quotes for the required fire suppression system, proving that the upgrade adds approximately $80,000 to the build out. Forney stated in 2022, The EDA allocated $45,000 for the creation of the Program, and budgeted $60,000 for 2023, leaving the program with a balance of $105,000. As stated above, it has been difficult for staff to find business that are able to apply to the Program. Many businesses don’t have the capital to pay for the addition of a fire suppression system in their building. He noted from the bids that Ruff Love Dogs received, it costs about $40,000 to run a new water service line 10 Item 1. City of Columbia Heights MINUTES February 06, 2023 Economic Development Authority Page 9 from the street to the building. This doesn’t include the installation of any fire suppression equipment within the building. Due to the cost of installing a fire suppression system that includes the installation of a new water service, staff are recommending an increase to the total amount provided through the program. Forney stated the current maximum grant allowed is 50% of the project cost up to $15,000. Staff believe by increasing the grant from $15,000 to $30,000 the EDA would make the Program more marketable and practical. Increasing the maximum grant to $30,000 would still allow smaller projects to occur but would also incentivize businesses and property owners seeking larger projects with limited capital to reinvest into their buildings. Unlike some Façade Improvements, the fire suppression systems will be installed and available for the next business that chooses to call the building home. Staff conducted a comparison of other cities with similar programs. Of the eight cities reviewed, five cities had a maximum allotment of $20,000 - $30,000. While one of the cities had a maximum grant of $10,000 covering up to 100% of the expenses. Staff believe setting the EDA’s program at $30,000 is a good middle ground that affords the EDA at least two grants per year if the $60,000 annual budget allotment remains intact. Forney stated, in addition to the increasing of the grant amounts, community development staff are recommending a few edits to the program guidelines. The first edit is to update the guidelines to include industrial properties. By limiting the program to commercial properties, the EDA eliminates improvements to the City’s small industrial sector. By including industrial properties, the City may be able to attract businesses like Ruff Love. The second proposed edit is to expand the Program along Central Ave to 53rd Avenue. This would bring the program into alignment with the Façade Grant Program’s boundaries. This would have been the original intent, but the Façade Grant’s boundaries were extended after the development of the Fire Suppression grant program. Questions/Comments from Members: Szurek stated she was surprised Miller’s Bar did not h ave a grant and asked if there were stipulations which would lower the insurance premium if there’s a suppression system in the business. Forney agreed and stated Miller’s Bar is considering adding a liquor license which would require them by State law to have a fire suppression but ultimately decided the program was too expensive. Chirpich added that Miller’s Bar has received informal quotes from contractors within the $80,000 range. He noted the street work increases costs due to putting in separate water lines. He stated with the building in its current form, it could be a good fit for the program but there is a need for significant water line upgrades. Jacobs highlighted the agenda on page 80, second paragraph and noted it states “businesses or commercial property owners” but stated they are allowing tenants. She asked if the language needed clarification to include tenants. Forney agreed that it there should be clarity. Jacobs asked to clarify the statement “qualifying improvements must exceed $1,000” in the “Eligible Applicants” section on page 80 of the agenda. She added the amount seemed low and stated it should be a higher amount or eliminated. Chirpich and Forney agreed. Forney stated Staff are opened to edits and changes. 11 Item 1. City of Columbia Heights MINUTES February 06, 2023 Economic Development Authority Page 10 Spriggs asked how many current businesses would need the fire suppression upgrade. Forney stated almost every business has the issue and would need it. Chirpich added that there are standards in place for Columbia Heights that other cities do not have. The City of Columbia Heights has made a commitment to ensure the safety of the community and improve the insurance rating for the entire City. He stated they do not have an exact amount of businesses in need of the fire suppression upgrade but stated any building over 20 years old is typically going to need it. Jacobs asked who governs the requirement for a fire suppression upgrade and mentioned when she owned a restaurant it was a requirement. Szurek shared her experience of owning a restaurant and noted the importance of restaurants with grills and deep fryers to have fire suppressions. She asked how many businesses have suppression systems. Chirpich stated most have them and added that Miller’s Bar does have a kitchen appliance fire suppression. He stated the fire department has oversight of the systems. Szurek stated it did not seem necessary for Ruff Love Doggy Daycare to have a fire suppression system. Chirpich also that noted Ruff Love Dogs will go through the Planning Commission process and the decision during the EDA meeting would be contingent upon a zoning change that would take place for the site. He added that Staff support the zoning appeal. James stated it would be worth raising the grant to $30,000 since there have not been any applicants and since it is a goal to get businesses involved in the program. She expressed the importance to get buildings up to standard. She added she would support expanding all the way down Central Avenue. Buesgens asked due to interest, how likely it would be to increase the grant to $90,000 in a few years. Chirpich stated they could investigate increasing the levy or re-allocate. He stated they currently have a $310,000 pool with $60,000 going to fire suppression, $50,000 going to façade grants, and $200,000 to commercial revitalization. Spriggs asked if the water service lines running from the street to businesses should be considered during reconstruction of roads since the City would cover those costs during that time. Chirpich stated Public Works could consider analyzing that. Bourgeois explained areas that are privately owned. Buesgens mentioned MNdot has made tentative plans to do construction on Central Avenue and 28th Avenue and added they use the opportunity to incentivize business owners to use the program. Chirpich stated Public Works would need to provide their input. Motion by Buesgens, seconded by James to waive the reading of Resolution 2023-04, there being ample copies available to the public. All ayes of present. MOTION PASSED. Motion by Buesgens, seconded by James to approve Resolution 2023-04, a resolution of the Economic Development Authority of Columbia Heights, Minnesota, approving the form and substance of the Fire Suppression Grant Agreement, and approving authority staff and officials to 12 Item 1. City of Columbia Heights MINUTES February 06, 2023 Economic Development Authority Page 11 take all actions necessary to enter the authority into the Fire Suppression Grant Agreement with Jessen Como. All ayes of present. MOTION PASSED. Motion by Buesgens, seconded by James to edit the Fire Suppression Grant Guidelines as presented with additional changes purposed by KT Jacobs. All ayes of present. MOTION PASSED. RESOLUTION NO. 2023-04 A RESOLUTION OF THE ECONOMIC DEVELOPMENT AUTHORITY OF COLUMBIA HEIGHTS, MINNESOTA, APPROVING THE FORM AND SUBSTANCE OF THE FIRE SUPPRESSION GRANT AGREEMENT, AND APPROVING AUTHORITY STAFF AND OFFICIALS TO TAKE ALL ACTIONS NECESSARY TO ENTER THE AUTHORITY INTO THE FIRE SUPPRESSION GRANT AGREEMENT WITH JESSEN COMO. WHEREAS, the City of Columbia Heights (the “City”) and the Columbia Heights Economic Development Authority (the “Authority”) have collaborated to create a certain Fire Suppression 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 and industrial property owners and/or tenants for the purpose of installing fire suppression systems thereby increasing business variety, economic performance, and public safety; and WHEREAS, the Authority has thoroughly reviewed copies of the proposed form of the Grant Agreement. NOW, THEREFORE BE IT RESOLVED that, after appropriate examination and due consideration, the Authority 1. approves the form and substance of the grant agreement and approves the Authority entering into the agreement with Jessen Como. 2. that the City Manager, 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. 3. that the City Manager, 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. ORDER OF ECONOMIC DEVELOPMENT AUTHORITY Passed this 6th day of February, 2023 Offered by: Buesgens Seconded by: James Roll Call: All ayes of present President 13 Item 1. City of Columbia Heights MINUTES February 06, 2023 Economic Development Authority Page 12 Attest: Secretary 7. Purchase of 841 49th Ave NE, Purchase Agreement and Budget Amendment Approval Forney stated staff are bringing forth for consideration the purchase of the property located at 841 49th Ave NE. The property has been designated as uninhabitable by the City and is in very poor condition. Community development staff believe this property is a prime candidate for redevelopment due to its substandard condition and parcel location. Forney reviewed the history, stating, on June 21st, 2021, Columbia Heights Police were called by a concerned neighbor to investigate a complaint and to conduct a welfare check at the subject property. Columbia Heights Police with the help of the Fire Department, found the property to be unsecured and uninhabitable with no one living at the property. Trash and debris were scattered around the property and filled the inside of the house and garage. Upon initial inspection, the Fire Department also noted that the basement had been completely flooded to within a few feet of the basement ceiling. Police and fire declared the house unfit for occupancy and boarded up the property. Conce rned that the electricity, water, and gas utilities were compromised Chief O’Brian initiated an emergency disconnect of all utilities from the property. The fire department continued to check in on the property and abate all property maintenance issues. Fr om the initial welfare check, until December 2022 the fire department attempted to get into contact with the property owner to no avail. Staff have attached images from the initial abatement of the property. As you can see, the house is full of trash, and due to the flooding of the basement, the interior of the house has been infested by black mold. Forney added, in December 2022, the brother of the owner of the property showed up at the Community Development Department trying to gain access to the propert y. He proceeded to inform staff that the owner had been moved to a nursing home in 2021 and is currently in hospice care. He mentioned the family had not heard from the owner for 9 years. The owner’s brother (‘Seller”) has gained Power of Attorney to get the owners finances in order. After viewing the condition of the property, the owner, and his representative approached the city asking if we would be interested in purchasing the property. Forney noted that community development staff conducted a financial analysis of the property and determined that it would be in the interest of the City to consider the purchase of the property. In conducting the pro -forma of the property, staff put together a base offer for $90,000, contingent on approval by the EDA. Staff negotiated the number to $91,976 after agreeing to assist in paying some of the additional costs levied to the owner. According to the county, the land has an estimated market value of $69,500. Community development staff believe that the negotiated $91,976 purchase price is reasonable because it gives the City site control and the ability to drive redevelopment of the site. After the seller agreed to the purchase price and its contingencies, staff worked with 14 Item 1. City of Columbia Heights MINUTES February 06, 2023 Economic Development Authority Page 13 Kennedy and Graven, the EDA’s Legal Counsel, to draft the purchase agreement that is attached to this report. Forney stated the purchase and redevelopment of 841 49th is consistent with the goals of the EDA’s redevelopment fund 408. Even though it meets the intent of the fund, the property is not zoned commercial which means that it does not fall within the purview of the Commercial Revitalization Program. Due to this, the purchase of the property requires an amendment to the 2023 budget to allocate funds for this specific project. Resolution 2023-05 approves the purchase of the property while amending the 2023 budget to reflect the purchase price and related costs. The related project costs that are covered by the budget amendment are: closing costs, hazardous material abatement costs (asbestos and trash removal), and demolition costs (demolition, grading, and utility disconnects). Fund 408 has about $2.5 million available after accounting for the projected 2023 budget. This is more than sufficient to fund the project. As stated in the resolution, $91,976 will go to the purchase of the property while $50,000 will go to the related costs described above. Excess money will be returned to fund 408 after the demolition and grading has been complete. Forney mentioned the location of 841 49th Ave NE gives the City many options with regard to redeveloping the lot. The lot itself is approximately 15,00 sq/ft and is zoned R -2A, Single- and Two-Family. Without rezoning, this would allow the City to redevelop a single family home or twin home on the lot. 841 49th is also near Central Avenue, directly behind the Taco Bell. This opens the possibility for the lot to be rezoned and used commercially in the future. Forney noted ultimately, 841 49th Ave NE has been a problem property for the City and the neighborhood. The condition of the interior and exterior make it uninhabitable. But for EDA involvement, this property could remain vacant and unsalvageable for even longer than it already has. The prime location of the parcel affords the EDA the opportunity to consider many redevelopment options. Questions/Comments from Members: Buesgens stated it is a big deal and is excited about the possibilities for the property. She asked what the 408 fund was. Forney stated it was the redevelopment project fund for the EDA. Chirpich added it is pooled from various areas and projects are designated within the fund. Buesgens asked for other examples for how the fund could be used. Chirpich stated the goal is to put back what is taken out. He added the HRA levy contributes annually into the fund and strategic sales of redevelopment properties are held in the fund. He stated whatever is made from land sale proceeds would go into the fund. Szurek asked if the $50,000 would include demolition. Chirpich stated they expect $30,000 for demolition. Szurek asked if they set the budget for $50,000 for any contingencies. Chirpich agreed. 15 Item 1. City of Columbia Heights MINUTES February 06, 2023 Economic Development Authority Page 14 Márquez Simula asked when neighborhood feedback would occur. Forney stated it is going to the Planning Commission first and they are confirming that the acquisition conforms with the Comprehensive Plan. Chirpich added that it would go to the neighborhood when a specific project is proposed. Márquez Simula asked if the goal was to commercialize the property instead of build a single family home. Forney added the initial step is to remove the home and then the EDA can decide what they think is best for the parcel. Jacobs stated she would like it to be a single family home or a duplex since it is near the school. Szurek asked if there was an ally way behind the Taco Bell. Chirpich stated there was. Spriggs asked what the timeline was for the demolition. Forney stated the proposal is for spring 2023, but demolition contracts will be approved by the EDA at a subsequent meeting. James noted the parcel is on a heavily wooded lot and stated her desire to maintain older trees in good health. Márquez Simula agreed. Chirpich stated they analyze the trees as a part of the process. Buesgens stated she would like to see the parcel go commercial since there are only 9% of commercial properties in the City and would like to see an opportunity to bring more money in. Motion by Márquez Simula, seconded by Jacobs to waive the reading of Resolution 2023- 05, there being ample copies available to the public. All ayes of present. MOTION PASSED. Motion by Jacobs, seconded by Márquez Simula to approve Resolution 2023-05, a Resolution approving the purchase agreement between the Economic Development Authority of Columbia Heights, Minnesota, and Matthew Plemel POA for Michael James Plemel and Amending the 2023 Fund 408 Budget. All ayes of present. MOTION PASSED. RESOLUTION NO. 2023-05 A RESOLUTION APPROVING THE PURCHASE AGREEMENT BETWEEN THE ECONOMIC DEVELOPMENT AUTHORITY OF COLUMBIA HEIGHTS, MINNESOTA, AND MATTHEW PLEMEL POA FOR MICHAEL JAMES PLEMEL AND AMENDING THE 2023 FUND 408 BUDGET BE IT RESOLVED BY the Board of Commissioners ("Board") of the Columbia Heights Economic Development Authority (the "Authority") as follows: SECTION 1. RECITALS. 1.01. The Authority and Matthew Plemel POA for Michael James Plemel (“Seller”) desire to enter into a purchase agreement (the “Purchase Agreement”) pursuant to which the Authority will acquire certain property in the City located at 841 49th Avenue NE (the “Property”) from the Seller for economic redevelopment purposes. The Property is described in Exhibit A attached hereto. 16 Item 1. City of Columbia Heights MINUTES February 06, 2023 Economic Development Authority Page 15 1.02. Pursuant to the Purchase Agreement, the Authority will purchase the Property from the Seller for a purchase price of $91,976 plus related closing costs. 1.03. The Authority finds that acquisition of the Property is consistent with the City’s Comprehensive Plan and will result in redevelopment of the substandard property located at 841 49th Ave NE. Such acquisition of this Property, for subsequent resale, best meets the community’s needs and will facilitate the economic redevelopment and revitalization of this area of the City. 1.04. The Authority also finds that this redevelopment project is consistent with the purpose of the Economic Development Authority Redevelopment Fund 408. The current 2023 budget for Economic Development Authority Redevelopment Fund 408 does no t include this redevelopment project and must be amended as the property was not available on September 26, 2022, when the Authority adopted this budget. The available balance of the Economic Development Authority Redevelopment Fund 408, beyond that committed for the existing 2023 budget, is approximately $2.5 million, which is more than sufficient to fund the redevelopment project. SECTION 2. PURCHASE AGREEMENT AND BUDGET AMENDMENT 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 presented to the Authority and on file at City Hall, subject to modifications that do not alter the substance of the transaction and that are approved by the President and Executive Director, provided that execution of the Purchase Agreement by those officials shall be conclusive evidence of their approval. 2.02. The Authority herby amends the 2023 budget for the Economic Development Authority Redevelopment Fund 408 to appropriate $91,976 for the purchase of 841 49th Avenue NE, and $50,000 for other related project costs. 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 acquire the Property from the Seller, all as described in the Purchase Agreement ORDER OF ECONOMIC DEVELOPMENT AUTHORITY Passed this 6th day of February, 2023 Offered by: Jacobs Seconded by: Márquez Simula Roll Call: All ayes of present President Attest: 17 Item 1. City of Columbia Heights MINUTES February 06, 2023 Economic Development Authority Page 16 Secretary OTHER BUSINESS Forney stated there are upcoming properties such as another single family home acquisition that staff will seek authorization to purchase. Forney stated staff are working with MNDot to acquire a section of excess MNDot right-of-way that adjoins the Root property. Forney added Rail Works Brewery is looking into going into the strip mall located at 40th and Central Avenue and have submitted building plans and will submit and façade and fire suppression grant. He encouraged the Councilmembers to keep the EDA in mind as they do their goal setting. ADJOURNMENT Motion by Jacobs, seconded by Márquez Simula, to adjourn the meeting at 6:01 pm. All ayes. MOTION PASSED. Respectfully submitted, _______________________________ Alicia Howe, Administrative Assistant 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. 18 Item 1. Resolution 2023-06 RESOLUTION NO. 2023-06 A RESOLUTION OF THE ECONOMIC DEVELOPMENT AUTHORITY OF COLUMBIA HEIGHTS, MINNESOTA, APPROVING THE FINANCIAL STATEMENT FOR THE MONTH OF JANUARY 2023 AND THE PAYMENT OF THE BILLS FOR THE MONTH OF JANUARY 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 statement for the month of January 2023 has been reviewed by the EDA Commission; and WHEREAS, the EDA has examined the financial statement and finds it 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 sta tement including the check history, and they are found to be correct, as to form and content; and BE IT FURTHER RESOLVED the financial statement is 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 6th day of March, 2023 Offered by: Seconded by: Roll Call: President Attest: Secretary 19 Item 2. AmountInvoiceInvoice DateVendorInvoice Line DescGL Number INVOICE GL DISTRIBUTION REPORT FOR CITY OF COLUMBIA HEIGHTS 1/2Page:02/16/2023 08:31 AM User: suems DB: Columbia Heights EXP CHECK RUN DATES 01/01/2023 - 01/31/2023 BOTH JOURNALIZED AND UNJOURNALIZED PAID Check 193585 475.00 7659712/14/22BOND TRUST SERVICES CORPPAYING AGENT FEE EDA BOND 2016372.7000.46200 475.00 Total For Check 193585 Check 193655 12,000.00 7241112/14/22AID ELECTRIC SERVICE INCVAN BUREN LIGHTING REPLACEMNT & UPGRADES420.6317.44000.1915 12,000.00 Total For Check 193655 Check 193729 12.61 99276113011/30/22POPP.COM INC113022 -10010429 COM DEV ADMINISTRATION204.6314.43210 12.61 99276548712/31/22POPP.COM INC123122 -10010429 COM DEV ADMINISTRATION204.6314.43210 29.50 99276426112/26/22POPP.COM INC122622 10013121 PHONE COMMDEV ADMIN204.6314.43210 54.72 Total For Check 193729 Check 193740 154.00 M2786512/30/22TIMESAVER OFF SITE SECRETR INCEDA MINUTES 121222204.6314.43050 154.00 Total For Check 193740 Check 193777 220,442.81 01172301/17/23COLUMBIA HEIGHTS LEASED2ND HALF 2022 DEVELOPER PAYMENT T6372.7000.44600 220,442.81 Total For Check 193777 Check 193778 122,522.03 01172301/17/23COLUMBIA HEIGHTS LEASED2ND HALF 2022 DEVELOPER PAYMENT Z6375.7000.44600 122,522.03 Total For Check 193778 Check 193780 18,578.00 01172301/17/23CREST VIEW ON 42ND2ND HALF 2022 DEVELOPER PAYMENT R8389.7000.44600 18,578.00 Total For Check 193780 Check 286 25.02 254584211/30/22AMAZON.COMPILOT PENS204.6314.42000 25.02 Total For Check 286 Check 328 13,353.75 218793112/20/22U.S. BANKINTEREST392.7000.46110 13,353.75 Total For Check 328 20 Item 2. AmountInvoiceInvoice DateVendorInvoice Line DescGL Number INVOICE GL DISTRIBUTION REPORT FOR CITY OF COLUMBIA HEIGHTS 2/2Page:02/16/2023 08:31 AM User: suems DB: Columbia Heights EXP CHECK RUN DATES 01/01/2023 - 01/31/2023 BOTH JOURNALIZED AND UNJOURNALIZED PAID 233.74 Fund 204 EDA ADMINISTRATION 220,917.81 Fund 372 HUSET PARK AREA TIF (T6) 122,522.03 Fund 375 TIF Z6: 47TH & GRAND 18,578.00 Fund 389 TIF R8 CRESTV/TRANSITION BLK 13,353.75 Fund 392 TIF BB2 ALATUS 40TH AV 12,000.00 Fund 420 CAP IMPROVEMENT-DEVELOPMENT Fund Totals: 12,000.00 VAN BUREN LIGHTING REPLACEMNT & UPGRADES420.6317.44000.1915 13,353.75 INTEREST392.7000.46110 18,578.00 2ND HALF 2022 DEVELOPER PAYMENT R8389.7000.44600 122,522.03 2ND HALF 2022 DEVELOPER PAYMENT Z6375.7000.44600 475.00 PAYING AGENT FEE EDA BOND 2016372.7000.46200 220,442.81 2ND HALF 2022 DEVELOPER PAYMENT T6372.7000.44600 54.72 113022 -10010429 COM DEV ADMINISTRATION204.6314.43210 154.00 EDA MINUTES 121222204.6314.43050 25.02 PILOT PENS204.6314.42000 --- TOTALS BY GL DISTRIBUTION --- 387,605.33 Total For All Funds: 21 Item 2. REVENUE AND EXPENDITURE REPORT FOR CITY OF COLUMBIA HEIGHTS 1/8Page:02/16/2023 08:30 AM User: suems DB: Columbia Heights PERIOD ENDING 01/31/2023 % BDGT USED UNENCUMBERED BALANCE YTD BALANCE 01/31/2023 ACTIVITY FOR MONTH 01/31/23 ENCUMBERED YEAR-TO-DATE 2023 AMENDED BUDGETDESCRIPTIONGL NUMBER Fund 204 - EDA ADMINISTRATION Revenues Dept 0000 - NON-DEPARTMENTAL TAXES 0.00 208,100.00 0.00 0.00 0.00 208,100.00 EDA CURRENT AD VALOREM204.0000.31011 0.00 89,000.00 0.00 0.00 0.00 89,000.00 AREA WIDE TAX204.0000.31014 0.00 297,100.00 0.00 0.00 0.00 297,100.00 TAXES 0.00 297,100.00 0.00 0.00 0.00 297,100.00 Total Dept 0000 - NON-DEPARTMENTAL 0.00 297,100.00 0.00 0.00 0.00 297,100.00 TOTAL REVENUES Expenditures Dept 6314 - ECONOMIC DEVELOPMENT AUTH PERSONNEL SERVICES 7.72 181,518.83 15,181.17 15,181.17 0.00 196,700.00 REGULAR EMPLOYEES204.6314.41010 7.50 13,596.84 1,103.16 1,103.16 0.00 14,700.00 P.E.R.A. CONTRIBUTION204.6314.41210 8.48 13,819.31 1,280.69 1,280.69 0.00 15,100.00 F.I.C.A. CONTRIBUTION204.6314.41220 8.21 21,296.22 1,903.78 1,903.78 0.00 23,200.00 INSURANCE204.6314.41300 8.57 1,371.45 128.55 128.55 0.00 1,500.00 WORKERS COMP INSURANCE PREM204.6314.41510 7.80 231,602.65 19,597.35 19,597.35 0.00 251,200.00 PERSONNEL SERVICES SUPPLIES 0.00 200.00 0.00 0.00 0.00 200.00 OFFICE SUPPLIES204.6314.42000 0.00 500.00 0.00 0.00 0.00 500.00 MINOR EQUIPMENT204.6314.42010 0.00 1,900.00 0.00 0.00 0.00 1,900.00 END USER DEVICES204.6314.42011 0.00 200.00 0.00 0.00 0.00 200.00 GENERAL SUPPLIES204.6314.42171 0.00 200.00 0.00 0.00 0.00 200.00 FOOD SUPPLIES204.6314.42175 0.00 3,000.00 0.00 0.00 0.00 3,000.00 SUPPLIES OTHER SERVICES & CHARGES 104.55 (100.00)0.00 0.00 2,300.00 2,200.00 EXPERT & PROFESSIONAL SERV.204.6314.43050 39.33 910.00 590.00 590.00 0.00 1,500.00 TRAINING & EDUCATION ACTIVITIES204.6314.43105 6.02 657.89 42.11 42.11 0.00 700.00 TELEPHONE204.6314.43210 0.00 600.00 0.00 0.00 0.00 600.00 POSTAGE204.6314.43220 8.47 274.58 25.42 25.42 0.00 300.00 OTHER TELECOMMUNICATIONS204.6314.43250 0.00 1,500.00 0.00 0.00 0.00 1,500.00 OUT OF TOWN TRAVEL EXPENSE204.6314.43320 36.30 127.40 72.60 72.60 0.00 200.00 LEGAL NOTICE PUBLISHING204.6314.43500 8.33 2,475.00 225.00 225.00 0.00 2,700.00 PROP & LIAB INSURANCE204.6314.43600 0.00 500.00 0.00 0.00 0.00 500.00 REPAIR & MAINT. SERVICES204.6314.44000 0.00 800.00 0.00 0.00 0.00 800.00 SOFTWARE & SOFTWARE SUBSCRIPTIONS204.6314.44030 8.33 7,975.00 725.00 725.00 0.00 8,700.00 INFORMATION SYS:INTERNAL SVC204.6314.44040 0.00 200.00 0.00 0.00 0.00 200.00 SUBSCRIPTION, MEMBERSHIP204.6314.44330 0.00 900.00 0.00 0.00 0.00 900.00 COMMISSION & BOARDS204.6314.44380 19.14 16,819.87 1,680.13 1,680.13 2,300.00 20,800.00 OTHER SERVICES & CHARGES CONTINGENCIES & TRANSFERS 8.33 20,258.33 1,841.67 1,841.67 0.00 22,100.00 OPER. TRANSFER OUT - LABOR204.6314.47100 8.33 20,258.33 1,841.67 1,841.67 0.00 22,100.00 CONTINGENCIES & TRANSFERS 22 Item 2. REVENUE AND EXPENDITURE REPORT FOR CITY OF COLUMBIA HEIGHTS 2/8Page:02/16/2023 08:30 AM User: suems DB: Columbia Heights PERIOD ENDING 01/31/2023 % BDGT USED UNENCUMBERED BALANCE YTD BALANCE 01/31/2023 ACTIVITY FOR MONTH 01/31/23 ENCUMBERED YEAR-TO-DATE 2023 AMENDED BUDGETDESCRIPTIONGL NUMBER Fund 204 - EDA ADMINISTRATION Expenditures 8.56 271,680.85 23,119.15 23,119.15 2,300.00 297,100.00 Total Dept 6314 - ECONOMIC DEVELOPMENT AUTH 8.56 271,680.85 23,119.15 23,119.15 2,300.00 297,100.00 TOTAL EXPENDITURES 100.00 25,419.15 (23,119.15)(23,119.15)(2,300.00)0.00 NET OF REVENUES & EXPENDITURES 8.56 271,680.85 23,119.15 23,119.15 2,300.00 297,100.00 TOTAL EXPENDITURES 0.00 297,100.00 0.00 0.00 0.00 297,100.00 TOTAL REVENUES Fund 204 - EDA ADMINISTRATION: 23 Item 2. REVENUE AND EXPENDITURE REPORT FOR CITY OF COLUMBIA HEIGHTS 3/8Page:02/16/2023 08:30 AM User: suems DB: Columbia Heights PERIOD ENDING 01/31/2023 % BDGT USED UNENCUMBERED BALANCE YTD BALANCE 01/31/2023 ACTIVITY FOR MONTH 01/31/23 ENCUMBERED YEAR-TO-DATE 2023 AMENDED BUDGETDESCRIPTIONGL NUMBER Fund 228 - DOWNTOWN PARKING Revenues Dept 0000 - NON-DEPARTMENTAL TRANSFERS & NON-REV RECEIPTS 0.00 56,700.00 0.00 0.00 0.00 56,700.00 TRANSFER IN-SPECIAL PROJ REV228.0000.39247 0.00 56,700.00 0.00 0.00 0.00 56,700.00 TRANSFERS & NON-REV RECEIPTS 0.00 56,700.00 0.00 0.00 0.00 56,700.00 Total Dept 0000 - NON-DEPARTMENTAL 0.00 56,700.00 0.00 0.00 0.00 56,700.00 TOTAL REVENUES Expenditures Dept 6317 - DOWNTOWN PARKING PERSONNEL SERVICES 0.00 1,500.00 0.00 0.00 0.00 1,500.00 INTERDEPARTMENTAL LABOR SERV228.6317.41070 0.00 1,500.00 0.00 0.00 0.00 1,500.00 PERSONNEL SERVICES OTHER SERVICES & CHARGES 8.33 2,933.33 266.67 266.67 0.00 3,200.00 PROP & LIAB INSURANCE228.6317.43600 11.33 1,773.43 226.57 226.57 0.00 2,000.00 UTILITY SERVICES228.6317.43800 0.00 13,000.00 0.00 0.00 0.00 13,000.00 ELECTRIC228.6317.43810 1.76 34,385.70 0.00 0.00 614.30 35,000.00 REPAIR & MAINT. SERVICES228.6317.44000 0.00 2,000.00 0.00 0.00 0.00 2,000.00 BLDG MAINT CONTRACTUAL SERVICES228.6317.44020 2.01 54,092.46 493.24 493.24 614.30 55,200.00 OTHER SERVICES & CHARGES 1.95 55,592.46 493.24 493.24 614.30 56,700.00 Total Dept 6317 - DOWNTOWN PARKING 1.95 55,592.46 493.24 493.24 614.30 56,700.00 TOTAL EXPENDITURES 100.00 1,107.54 (493.24)(493.24)(614.30)0.00 NET OF REVENUES & EXPENDITURES 1.95 55,592.46 493.24 493.24 614.30 56,700.00 TOTAL EXPENDITURES 0.00 56,700.00 0.00 0.00 0.00 56,700.00 TOTAL REVENUES Fund 228 - DOWNTOWN PARKING: 24 Item 2. REVENUE AND EXPENDITURE REPORT FOR CITY OF COLUMBIA HEIGHTS 4/8Page:02/16/2023 08:30 AM User: suems DB: Columbia Heights PERIOD ENDING 01/31/2023 % BDGT USED UNENCUMBERED BALANCE YTD BALANCE 01/31/2023 ACTIVITY FOR MONTH 01/31/23 ENCUMBERED YEAR-TO-DATE 2023 AMENDED BUDGETDESCRIPTIONGL NUMBER Fund 372 - HUSET PARK AREA TIF (T6) Revenues Dept 0000 - NON-DEPARTMENTAL TAXES 0.00 194,000.00 0.00 0.00 0.00 194,000.00 CURRENT AD VALOREM372.0000.31010 0.00 194,000.00 0.00 0.00 0.00 194,000.00 TAXES MISCELLANEOUS 0.00 3,000.00 0.00 0.00 0.00 3,000.00 INTEREST ON INVESTMENTS372.0000.36210 0.00 3,000.00 0.00 0.00 0.00 3,000.00 MISCELLANEOUS 0.00 197,000.00 0.00 0.00 0.00 197,000.00 Total Dept 0000 - NON-DEPARTMENTAL 0.00 197,000.00 0.00 0.00 0.00 197,000.00 TOTAL REVENUES Expenditures Dept 7000 - BONDS CAPITAL OUTLAY 0.00 135,000.00 0.00 0.00 0.00 135,000.00 PRINCIPAL372.7000.46010 0.00 54,200.00 0.00 0.00 0.00 54,200.00 INTEREST372.7000.46110 47.50 525.00 475.00 475.00 0.00 1,000.00 FISCAL AGENT CHARGES372.7000.46200 0.25 189,725.00 475.00 475.00 0.00 190,200.00 CAPITAL OUTLAY 0.25 189,725.00 475.00 475.00 0.00 190,200.00 Total Dept 7000 - BONDS 0.25 189,725.00 475.00 475.00 0.00 190,200.00 TOTAL EXPENDITURES 6.99 7,275.00 (475.00)(475.00)0.00 6,800.00 NET OF REVENUES & EXPENDITURES 0.25 189,725.00 475.00 475.00 0.00 190,200.00 TOTAL EXPENDITURES 0.00 197,000.00 0.00 0.00 0.00 197,000.00 TOTAL REVENUES Fund 372 - HUSET PARK AREA TIF (T6): 25 Item 2. REVENUE AND EXPENDITURE REPORT FOR CITY OF COLUMBIA HEIGHTS 5/8Page:02/16/2023 08:30 AM User: suems DB: Columbia Heights PERIOD ENDING 01/31/2023 % BDGT USED UNENCUMBERED BALANCE YTD BALANCE 01/31/2023 ACTIVITY FOR MONTH 01/31/23 ENCUMBERED YEAR-TO-DATE 2023 AMENDED BUDGETDESCRIPTIONGL NUMBER Fund 392 - TIF BB2 ALATUS 40TH AV Expenditures Dept 7000 - BONDS CAPITAL OUTLAY 100.00 (13,353.75)13,353.75 13,353.75 0.00 0.00 INTEREST392.7000.46110 100.00 (13,353.75)13,353.75 13,353.75 0.00 0.00 CAPITAL OUTLAY 100.00 (13,353.75)13,353.75 13,353.75 0.00 0.00 Total Dept 7000 - BONDS 100.00 (13,353.75)13,353.75 13,353.75 0.00 0.00 TOTAL EXPENDITURES 100.00 13,353.75 (13,353.75)(13,353.75)0.00 0.00 NET OF REVENUES & EXPENDITURES 100.00 (13,353.75)13,353.75 13,353.75 0.00 0.00 TOTAL EXPENDITURES 0.00 0.00 0.00 0.00 0.00 0.00 TOTAL REVENUES Fund 392 - TIF BB2 ALATUS 40TH AV: 26 Item 2. REVENUE AND EXPENDITURE REPORT FOR CITY OF COLUMBIA HEIGHTS 6/8Page:02/16/2023 08:30 AM User: suems DB: Columbia Heights PERIOD ENDING 01/31/2023 % BDGT USED UNENCUMBERED BALANCE YTD BALANCE 01/31/2023 ACTIVITY FOR MONTH 01/31/23 ENCUMBERED YEAR-TO-DATE 2023 AMENDED BUDGETDESCRIPTIONGL NUMBER Fund 393 - BB6 IF ALATUS 4300 CENTRAL Expenditures Dept 7000 - BONDS CAPITAL OUTLAY 0.00 26,700.00 0.00 0.00 0.00 26,700.00 INTEREST393.7000.46110 0.00 1,000.00 0.00 0.00 0.00 1,000.00 FISCAL AGENT CHARGES393.7000.46200 0.00 27,700.00 0.00 0.00 0.00 27,700.00 CAPITAL OUTLAY 0.00 27,700.00 0.00 0.00 0.00 27,700.00 Total Dept 7000 - BONDS 0.00 27,700.00 0.00 0.00 0.00 27,700.00 TOTAL EXPENDITURES 0.00 (27,700.00)0.00 0.00 0.00 (27,700.00)NET OF REVENUES & EXPENDITURES 0.00 27,700.00 0.00 0.00 0.00 27,700.00 TOTAL EXPENDITURES 0.00 0.00 0.00 0.00 0.00 0.00 TOTAL REVENUES Fund 393 - BB6 IF ALATUS 4300 CENTRAL: 27 Item 2. REVENUE AND EXPENDITURE REPORT FOR CITY OF COLUMBIA HEIGHTS 7/8Page:02/16/2023 08:30 AM User: suems DB: Columbia Heights PERIOD ENDING 01/31/2023 % BDGT USED UNENCUMBERED BALANCE YTD BALANCE 01/31/2023 ACTIVITY FOR MONTH 01/31/23 ENCUMBERED YEAR-TO-DATE 2023 AMENDED BUDGETDESCRIPTIONGL NUMBER Fund 408 - EDA REDEVELOPMENT PROJECT FD Revenues Dept 0000 - NON-DEPARTMENTAL TAXES 0.00 235,000.00 0.00 0.00 0.00 235,000.00 HRA CURRENT AD VALOREM408.0000.31012 0.00 75,000.00 0.00 0.00 0.00 75,000.00 AREA WIDE TAX408.0000.31014 0.00 310,000.00 0.00 0.00 0.00 310,000.00 TAXES 0.00 310,000.00 0.00 0.00 0.00 310,000.00 Total Dept 0000 - NON-DEPARTMENTAL 0.00 310,000.00 0.00 0.00 0.00 310,000.00 TOTAL REVENUES Expenditures Dept 6411 - FACADE IMPROVEMENT GRANT OTHER SERVICES & CHARGES 0.00 50,000.00 0.00 0.00 0.00 50,000.00 LOANS & GRANTS408.6411.44600 0.00 50,000.00 0.00 0.00 0.00 50,000.00 OTHER SERVICES & CHARGES 0.00 50,000.00 0.00 0.00 0.00 50,000.00 Total Dept 6411 - FACADE IMPROVEMENT GRANT Dept 6414 - COMMERCIAL REVITALIZATION CAPITAL OUTLAY 0.00 200,000.00 0.00 0.00 0.00 200,000.00 LAND408.6414.45110 0.00 200,000.00 0.00 0.00 0.00 200,000.00 CAPITAL OUTLAY 0.00 200,000.00 0.00 0.00 0.00 200,000.00 Total Dept 6414 - COMMERCIAL REVITALIZATION Dept 6418 - FIRE SUPPRESSION GRANT OTHER SERVICES & CHARGES 0.00 60,000.00 0.00 0.00 0.00 60,000.00 LOANS & GRANTS408.6418.44600 0.00 60,000.00 0.00 0.00 0.00 60,000.00 OTHER SERVICES & CHARGES 0.00 60,000.00 0.00 0.00 0.00 60,000.00 Total Dept 6418 - FIRE SUPPRESSION GRANT 0.00 310,000.00 0.00 0.00 0.00 310,000.00 TOTAL EXPENDITURES 0.00 0.00 0.00 0.00 0.00 0.00 NET OF REVENUES & EXPENDITURES 0.00 310,000.00 0.00 0.00 0.00 310,000.00 TOTAL EXPENDITURES 0.00 310,000.00 0.00 0.00 0.00 310,000.00 TOTAL REVENUES Fund 408 - EDA REDEVELOPMENT PROJECT FD: 28 Item 2. REVENUE AND EXPENDITURE REPORT FOR CITY OF COLUMBIA HEIGHTS 8/8Page:02/16/2023 08:30 AM User: suems DB: Columbia Heights PERIOD ENDING 01/31/2023 % BDGT USED UNENCUMBERED BALANCE YTD BALANCE 01/31/2023 ACTIVITY FOR MONTH 01/31/23 ENCUMBERED YEAR-TO-DATE 2023 AMENDED BUDGETDESCRIPTIONGL NUMBER Fund 420 - CAP IMPROVEMENT-DEVELOPMENT Expenditures Dept 6317 - DOWNTOWN PARKING OTHER SERVICES & CHARGES 0.00 (78,765.50)0.00 0.00 78,765.50 0.00 REPAIR & MAINT. SERVICES420.6317.44000.1915 0.00 (78,765.50)0.00 0.00 78,765.50 0.00 OTHER SERVICES & CHARGES 0.00 (78,765.50)0.00 0.00 78,765.50 0.00 Total Dept 6317 - DOWNTOWN PARKING 0.00 (78,765.50)0.00 0.00 78,765.50 0.00 TOTAL EXPENDITURES 100.00 78,765.50 0.00 0.00 (78,765.50)0.00 NET OF REVENUES & EXPENDITURES 100.00 (78,765.50)0.00 0.00 78,765.50 0.00 TOTAL EXPENDITURES 0.00 0.00 0.00 0.00 0.00 0.00 TOTAL REVENUES Fund 420 - CAP IMPROVEMENT-DEVELOPMENT: 569.96 98,220.94 (37,441.14)(37,441.14)(81,679.80)(20,900.00)NET OF REVENUES & EXPENDITURES 13.51 762,579.06 37,441.14 37,441.14 81,679.80 881,700.00 TOTAL EXPENDITURES - ALL FUNDS 0.00 860,800.00 0.00 0.00 0.00 860,800.00 TOTAL REVENUES - ALL FUNDS 29 Item 2. ECONOMIC DEVELOPMENT AUTHORITY AGENDA SECTION BUSINESS ITEMS MEETING DATE 3/6/2023 ITEM: Approve Purchase of 4243 5th Street and Approval of Inter-fund Loan DEPARTMENT: Community Development BY/DATE: Mitchell Forney, 3/1/2023 BACKGROUND: Early in 2023, community development staff were approached by John Rockwell with REMAX Synergy with a seller that was interested in selling their home to the City of Columbia Heights. John has worked extensively with the City in the past. Previously, he was in charge of finding and negotiating on behalf of the EDA for houses that were purchased under the Commercial Revitalization Program. The seller has aged out of the home and now resides in an elderly care facility. The house and garage have slowly fallen into disrepair. The owner's family sought to sell the property to the City rather than to someone that would attempt to flip the house. The home was originally built in 1916 and contains 600 sq/ft of livable space. The house is very small and when combined with the detached garage only takes up about 1/3 of the lot. Community development staff thought that this property was perfect for redevelopment. When staff toured the residence there were holes in the ceiling with garbage bags used to plug areas that had been leakin g. Rather than letting the house fall into the hands of a flipper, staff thought it a perfect candidate for affordable home ownership and redevelopment. Staff are purposing a partnership with the non-profit Habitat for Humanity to redevelop an affordable single-family home on the site. Staff have been in contact with Habitat for Humanity, and they will be able to address the project in the spring of 2024. When looking into financing the project, community development staff along with help from the finance director, found pooled TIF funds in an old redevelopment TIF district, C8. Staff also identified the scattered site TIF district w3/w4. The C8 district and w3/w4 district have historically had a symbiotic relationship. When C8 was decertified, it loaned its pooled funds to w3/w4 to be used in the redevelopment of affordable single- family housing. Specifically housing that was purchased from housing foreclosures during the recession. W3/w4 utilizes TIF acquired from scattered single-family lots, previously redeveloped, to pay back the money loaned from the C8 district. Since the C8 district was established prior to the TIF rules being changed in 1990, the pooled funds have different rules than modern districts , allowing them to remain almost indefinitely or until the district no longer has obligations, i.e. loans. The w3/w4 district was established in 2015 and will be decertified in 2040. Staff purpose utilizing this symbiotic relationship to loan funds from C8 to w3/w4 in order to purchase 4243 5th Street. W3/w4 will then utilize the TIF it is currently collecting to repay the C8 loan with 5% interest. In order to utilize w3/w4, the property has to meet HUD low-income requirements. Which is why staff believe Habitat for Humanity is the perfect partner. C8 currently has approximately $385,000 dollars. Staff are requesting an interfund loan for this project in the amount of $170,000, to cover the $120,000 purchase price along with demolition costs. Leaving $215,000 in C8 available for similar projects in the future. The EDA can continue to utilize this relationship to purchase houses until the decertification of w3/w4. If the EDA identifies more properties to purchase, staff recommends modifying w3/w4 to include the homes which would increases the amount of TIF that w3/w4 captures to pay back its loans. 30 Item 3. Page 2 RECOMMENDED MOTION(S): MOTION: Move to waive the reading of resolution 2023-07 and 2023-08, there being ample copies available to the public. MOTION: Move to approve Resolution 2023-07, a resolution authorizing an interfund loan for advance of funds from tax increment financing University Avenue Redevelopment District (no. C8) for costs in connection with the city-wide scattered site housing tax increment financing district MOTION: Move to approve Resolution 2023-08, a resolution approving the purchase agreement between the Economic Development Authority of Columbia Heights, Minnesota, and Lauren M. Bell ATTACHMENT(S): EDA Resolution 2023-07 EDA Resolution 2023-08 Location Map 4243 5th Street Purchase Agreement 31 Item 3. Error! Unknown document property name. COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY CITY OF COLUMBIA HEIGHTS ANOKA COUNTY STATE OF MINNESOTA RESOLUTION NO. 2023-07 AUTHORIZING AN INTERFUND LOAN FOR ADVANCE OF FUNDS FROM TAX INCREMENT FINANCING UNIVERSITY AVENUE REDEVELOPMENT DISTRICT (NO. C8) FOR COSTS IN CONNECTION WITH THE CITY-WIDE SCATTERED SITE HOUSING TAX INCREMENT FINANCING DISTRICT BE IT RESOLVED By the Board of Commissioners of the Columbia Heights Economic Development Authority (the “Authority” or “EDA”) as follows: Section 1. Background. 1.01. Pursuant to Minnesota Statutes, Sections 469.174 through 469.1799, as amended, and predecessor statutes (the “TIF Act”), the City of Columbia Heights, Minnesota (the “City”) and the Housing and Redevelopment Authority in and for the City (the “HRA”) previously established Tax Increment Financing University Avenue Redevelopment District (No. C8) (“TIF District C8”) within a project area variously called the Downtown CBD Revitalization Project, the Central Business District Redevelopment Project, and the CBD Redevelopment Project (the “Project”). 1.02. By resolution approved January 8, 1996, the City transferred to the EDA the control, authority and operation of all projects then administered by the HRA. 1.03. Pursuant to the TIF Act, the City and the Authority also previously established the City- Wide Scattered Site Housing Tax Increment Financing District (“Scattered Site TIF District”) within the Project. 1.04. The Authority expects to incur certain costs related to the Scattered Site TIF District, which costs may be financed on a temporary basis from available Authority funds. 1.03. Under Section 469.178, Subdivision 7 of the TIF Act, the Authority is authorized to advance or loan money from any fund from which such advances may be legally made in order to finance expenditures that are eligible to be paid with tax increments under the TIF Act. 1.04. The Authority intends to acquire and demolish certain property within the Project, including but not limited to property located at 4243 5th Street NE, Columbia Heights MN 55421, in the City (collectively, the “Property”), and intends to pay all or a portion of the costs of acquiring and demolishing the Property using tax increments from TIF District C8, up to the total balance of tax increments (approximately $385,000) available in the fund or account for TIF District C8 (the “Balance”). 1.05. The Authority has designated the advance of funds for the acquisition and demolition of the Property as an interfund loan (the “Interfund Loan” or “Loan”). Section 2. Authorization of Use of Funds; Further Actions. 2.01. The Authority hereby authorizes use of the Balance from TIF District C8 as one of the legally available funding sources for the Interfund Loan. 32 Item 3. 2 Error! Unknown document property name. 2.02. The Authority authorizes the Loan in the amount of $170,000, to be drawn from the account for TIF District C8. Such amount will be made available to the Authority at or before the closing on the acquisition of each Property by the Authority. The outstanding principal balance of the Loan bears interest at the rate of 5.0 percent per annum (which is the greater of the rates specified under Sections 270C.40 or 549.09 in accordance with Minnesota Statutes, Section 469.178, subdivision 7); provided, however, the Executive Director of the EDA is authorized to specify a lower rate. Interest accrues from the respective dates of each disbursement from the identified account in order to acquire the Property. 2.03. The Loan is payable from tax increments generated from the Scattered Site TIF District (if any), from any other tax increments legally available for such purposes, from proceeds of the sale of the Property (if any), and from any other revenues available to the Authority. Principal and interest (“Payments”) shall be made at the times any revenue sources are available to make installment payments. The outstanding balance of principal and interest is due on the date of last receipt of tax increment from the Scattered Site TIF District or from any other tax increment district from which repayment of the Loan is made. Payments will be credited to the account from which the Loan was drawn. All payments shall be applied first to accrued interest, and then to unpaid principal of the Loan. 2.04. The Authority reserves the right to permanently allocate all or any portion of the Balance to the acquisition of the Property and to amend the terms of the Interfund Loan at any time by resolution of the Authority’s Board of Commissioners, including a determination to forgive the outstanding principal amount and accrued interest to the extent permissible under law. Section 3. Effective Date. This resolution is effective upon approval. Approved by the Board of Commissioners of the Columbia Heights Economic Development Authority this 6TH day of March, 2023. ______________________________ President ATTEST: ___________________________________ Secretary 33 Item 3. RESOLUTION NO. 2023-08 A RESOLUTION APPROVING THE PURCHASE AGREEMENT BETWEEN THE ECONOMIC DEVELOPMENT AUTHORITY OF COLUMBIA HEIGHTS, MINNESOTA, AND LAUREN M. BELL BE IT RESOLVED BY the Board of Commissioners ("Board") of the Columbia Heights Economic Development Authority (the "Authority") as follows: SECTION 1. RECITALS. 1.01. The Authority and Lauren M. Bell (“Seller”) desire to enter into a purchase agreement (the “Purchase Agreement”) pursuant to which the Authority will acquire certain property in the City located at 4243 5th Street NE (the “Property”) from the Seller for housing redevelopment purposes. The Property is described in Exhibit A attached hereto. 1.02. Pursuant to the Purchase Agreement, the Authority will purchase the Property from the Seller for a purchase price of $120,000 plus related closing costs. 1.03. The Authority finds that acquisition of the Property is consistent with the City’s Comprehensive Plan and will result in redevelopment of the substandard property located at 4243 5th Street. Such acquisition of this Property, for subsequent resale, best meets the community’s needs and will facilitate the housing redevelopment and revitalization of this area of the City. 1.04. The Authority also finds that this redevelopment project is consistent with the purpose of the Economic Development Authority Scattered Site Housing TIF District w3/w4. SECTION 2. PURCHASE AGREEMENT AND BUDGETT AMENDMENT APPROVED. 2.01. The Authority hereby ratifies and approves the actions of Authority staff and of REMAX Synergy (“Broker”) in researching the Property and preparing and presenting the Purchase Agreement. The Authority approves the Purchase Agreement in the form presented to the Authority and on file at City Hall, subject to modifications that do not alter the substance of the transaction and that are approved by the President and Executive Director, provided that execution of the Purchase Agreement by tho se officials shall be conclusive evidence of their approval. 2.02. The Authority herby approves the use of funds from TIF District w3/w4 for the purchase agreement and $50,000 for other project costs that comply with the standards laid out in the w3/w4 TIF Plan adopted by the City of Columbia Heights. 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 acquire the Property from the Seller, all as described i n the Purchase Agreement 34 Item 3. ORDER OF ECONOMIC DEVELOPMENT AUTHORITY Adopted this 6th day of March, 2023 Offered by: Seconded by: Roll Call: President Attest: Secretary 35 Item 3. EXHIBIT A Legal Description of the Property LOT 26 BLOCK 28 COLUMBIA HEIGHTS ANNEX 36 Item 3. 37 Item 3. 38 Item 3. 39 Item 3. 40 Item 3. 41 Item 3. 42 Item 3. 43 Item 3. 44 Item 3. 45 Item 3. 46 Item 3. 47 Item 3. 48 Item 3. 49 Item 3. 50 Item 3. 51 Item 3. 52 Item 3. 53 Item 3. 54 Item 3. 55 Item 3. 56 Item 3. 57 Item 3. 58 Item 3. 59 Item 3. ADDENDUM TO PURCHASE AGREEMENT This form approved by the Minnesota Association of REALTORS®, which disclaims any liability arising out of use or misuse of this form. © 2020 Minnesota Association of REALTORS®, Edina, MN 1. Date 2. Page 1 3. Addendum to Purchase Agreement between parties, dated 4. (Date of this Purchase Agreement), pertaining to t he purchase and sale of the Property at 5. . 0U[OLL]LU[VMHJVUÅPJ[IL[^LLU[OPZ(KKLUK\THUKHU`V[OLYWYV]PZPVUVM[OL7\YJOHZL(NYLLTLU[[OLSHUN\HNL 7. in this Addendum shall govern. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. (Seller) (Date) (Buyer) (Date) 32. (Seller) (Date) (Buyer) (Date) 33. THIS IS A LEGALLY BINDING CONTRACT BETWEEN BUYER(S) AND SELLER(S). 34. IF YOU DESIRE LEGAL OR TAX ADVICE, CONSULT AN APPROPRIATE PROFESSIONAL. MN-APA (8/20) January 24th, 2023 January 24th 2023 4243 5th Street NE Columbia Heights MN 55421 This purchase agreement is subject to the full ratification of the Columbia Heights Economic Development Authority at their March 2023 meeting. If the purchase agreement is not ratified a cancellation of the purchase agreement will be signed and all earnest money will be returned to the buyer. The Seller warrants that there are no tenants on the property with a lawful leasehold interest. In the event any tenant come forward and claims an interest in the property at the time of or following the purchase, the Seller agress to fully indemnify the buyer for any and all costs associated with terminating such tenancy and for any and all relocation assistance and benefits that may be due to such tenant together with attorneys's fees that the Buyer would have to incure in connection with legal action required to resolve any relocation assistance or benefits duspute with such tenant. Seller acknowledges that it is not being displaced from the property as a result of the purchase agreement and that it is not eligible for relocation assistance and benefits, that the purchase price includes compensation for any and all relocation assistance and benefits for shich the Seller may be eligible. The provisions of this paragraph shall survie the closing of the transaction contemplated by this purchase agreement. For purposes of this Agreement, "relocation assitance and benefits" shall have the meanings ascribed to them by Minnesota Uniform Relocation Act, Minnesota Statues, Santions 117.50 to 117.56, the Uniform Relocation Asistance and Real Property Acquistion Policies Act, 42 U.S.C. Sections 4601-4655 (the federal URA)and the regulations implementing the federal URA, 49 C.D.R. Part 24 60 Item 3. 61 Item 3. ECONOMIC DEVELOPMENT AUTHORITY AGENDA SECTION BUISNESS ITEMS MEETING DATE 3/6/2023 ITEM: 40th and University Avenue Right-of-Way Purchase from MnDOT DEPARTMENT: Community Development BY/DATE: Mitchell Forney, 02/27/2023 BACKGROUND: In 2019, the City began in earnest to enact its plan to redevelop the southwestern quadrant of the 40th Avenue and University Avenue intersection, as redevelopment of this corner is a priority that is articulated in the City’s comprehensive plan. As part of this redevelopment initiative, the City and EDA have purchased three separate parcels to prepare a shovel ready site for future development. Community development staff are bringing forward for the EDA’s consideration the purchase of MnDot right-of-way that adjoins the City’s current land holdings in this location. The acquisition of this land from MnDot will make the City’s parcels more accessible, developable, and improve the overall layout of the redevelopment site. LAND ASSEMBLY HISTORY TO DATE: In 2009, the City purchased the parcel located at 3853 3rd Street as part of its program to purchase and rehabilitate foreclosed homes during the housing crises. In 2010, the City demolished the single-family home on the property, and it has sat vacant since. In 2019, the city purchased the former Root Electronics parcel (393 University Ave NE) out of tax forfeiture for $81,600. After the purchase, community development staff worked to secure federal Community Development Block Grant (CDBG) funding for the demolition of buildings and environmental remediation of the site. The City’s environmental contractor, Carlson McCain conducted environmental testing of the site and in December of 2021, Carlson McCain and the City’s demolition contractor, Veit initiated the environmental cleanup. Over a period of four weeks, Veit removed two storage buildings, their slab foundations, the basement foundation of the main Root building, 665 tons of contaminated soil, and clear-cut most of the trees and scrub brush on the site. During the remediation of the site, Veit and Carlson McCain uncovered an old dumpsite on the southern end of the property, two large fuel storage tanks, and an additional foundation underneath one of the storage building foundations. The dumpsite and additional foundation were immediately remediated. With the assistance of Carlson McCain, the City applied for the State of Minnesota’s Abandoned Underground Petroleum Storage Tank Removal Program. As part of the program, the Minnesota Department of Commerce paid for the entire project cost of removing the fuel storage tanks and conducting post removal environmental testing. At the same time, Community Development staff and the EDA were in negotiations with the owner of 230 40th Ave NE. In late 2019, the EDA purchased the house for $275,000 and prepared the property to be used by the Fire Department in a training exercise burn. After the house was burned down the site was cleared of all improvements and now sits vacant. MNDOT RIGHT-OF-WAY ACQUISITION: As you can see from attachment three (Parcel Map), there is a service road that used to serve as the entrance to the Root property and the former house at 230 40th Ave. This service road is owned by the Minnesota Department of Transportation (MnDot), even though it acts as the only entrance point to the two City owned properties. As part of the redevelopment of the southwest corner, staff thought it imperative to acquire part of this right-of-way. In June of 2022, staff reached out to the MnDot requesting the conveyance of the land. After meeting to discuss possible contingencies, MnDot responded with the purchase approval letter before 62 Item 4. Page 2 you today. Acquiring this right-of-way makes the City owned parcels whole and makes the combination of parcels more attractive to developers. As part of the property conveyance, MnDot wanted to ensure that the City meets three requirements. First, that the entrance to any future development on the site will have to meet current setback standards from the 40 th and University intersection. The current service road is too close to the intersection and will have to be pushed to the west to meet current MnDot standards. This will occur upon redevelopment of the site and does not have to be done until then. Second, that the City be responsible for repairing and making the sidewalk along 40th Avenue ADA compliant. In 2025, Anoka County plans to re- build part of 40th Ave along the north side of the site. Staff were able to negotiate the resolution timeline for the ADA compliance upgrades to coincide with the work to be done on 40th Avenue. Last, that the City shall be responsible for moving the fence that currently lines the border between the parcel and the University Ave right-of-way. This is to ensure the fence delineates the new boundary and will be completed when the redevelopment of the site is conducted. As part of the purchase process, the Minnesota Pollution Control Agency (MPCA), has conducted a Phase 1 environmental review of the property. No major issues were found but there is a possibility the site may need additional environmental remediation. Staff have also worked with the EDA’s legal counsel to complete a title commitment review of the parcel. The title has comeback clean, and staff have title insurance prepared. The purchase of the property will be paid out of fund 408, specifically the Commercial Redevelopment Program. With a purchase price of $7,700.00 for 14,161 sq/ft of commercial land, staff believe that the purchase of the land is a great opportunity for the City. The parcel is completely useless to anyone other than the City and if it remained in MNDOT’s hands it would stay vacant. The addition of this parcel adds another puzzle piece to the eventual redevelopment of the corner and sets up the City to drive the eventual project. RECOMMENDED MOTION(S): MOTION: Move to waive the reading of Resolution 2023-09, there being ample copies available to the public. MOTION: Move to adopt resolution 2023-09, a resolution approving the conveyance of real property between the Minnesota Department of Transportation and the Economic Development Authority of Columbia Heights, Minnesota ATTACHMENT(S): Resolution 2023-09 MN DOT Offer Letter Parcel Map MN DOT Exhibit A MN DOT Exhibit B MN DOT Internal Phase 1 63 Item 4. Resolution 2023-09 RESOLUTION NO. 2023-09 A RESOLUTION APPROVING THE CONVEYANCE OF REAL PROPERTY BETWEEN THE MINNESOTA DEPARTMENT OF TRANSPORTATION 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 has received a conveyance offer letter (the “Agreement”) from the Minnesota Department of Transportation (MNDOT) (the “Seller”) pursuant to which the Authority will acquire certain property in the City of Columbia Heights (the “City”) located on the southwest corner of 40th Ave and University Ave (the “Property”) from the Seller for economic redevelopment purposes. The Property is described in Exhibit A attached hereto. 1.02. Pursuant to the Agreement, the Authority will purchase the Property from the Seller for a purchase price of $7,700. 1.03. The Authority finds that acquisition of the Property is consistent with the City’s Comprehensive Plan and will result in the redevelopment of a substandard property, and that such acquisition will facilitate the economic development and revitalization of this area of the City. 1.04. The Authority also finds that this redevelopment project is consistent with the purpose of the Economic Development Authority Redevelopment Fund 408. Specifically, this project meets the requirements of the Commercial Revitalization Program within fund 408. SECTION 2. PURCHASE AGREEMENT APPROVED. 2.01. The Authority hereby ratifies and approves the actions of Authority staff and Kennedy Graven in researching the Property and preparing and presenting the Agreement. The Authority approves the Agreement in the form presented to the Authority and on file at City Hall, subject to modifications that do not alter the substance of the transaction and that are approved by the President and Executive Director, provided that execution of the Agreement by those officials shall be conclusive evidence of their approval. 2.02. Authority staff and officials are authorized to take all actions necessary to perform the Authority’s obligations under the Agreement as a whole, including without limitation execution of any documents to which the Authority is a party referenced in or attached to the Agreement, and any deed or other documents necessary to acquire the Property from the Seller, all as described in the Agreement. 64 Item 4. ORDER OF ECONOMIC DEVELOPMENT AUTHORITY Passed this 6th day of March 2023 Offered by: Seconded by: Roll Call: President Attest: Secretary 65 Item 4. EXHIBIT A Property DESCRIPTION FOR CONVEYANCE Parcel 216 C.S. 0205 (47=156-23) That part of Tract A described below: Tract A. That part of Lot 18, and the North Half, front and rear of Lot 2, Rearrangement of Block “E”, Columbia Heights Annex to Minneapolis, lying westerly of the highway, according to the plat thereof on file and of record in the office of the County Recorder in and for Anoka County, Minnesota; which lies westerly of a line run parallel with and distant 63 feet westerly of Line 1 described below; Line 1. Beginning at a point on the south line of Block 91, said Columbia Heights Annex to Minneapolis, distant 25 feet West of the southeast corner thereof; thence northwesterly to a point on the north line of Lot 18, Rearrangement of Block E, said Columbia Heights Annex, distant 107 feet east of the northwest corner thereof and there terminating; containing 14161 square feet, more or less; Subject to the following restriction: No access shall be permitted to Trunk Highway No. 47 and 40th Avenue Northeast from the lands herein conveyed. 66 Item 4. 395 John Ireland Boulevard Saint Paul, MN 55155 An Equal Opportunity Employer Conveyance Offer Letter - Indemnity RC1019 2/1/2023 January 31, 2023 Certified Mail Return Receipt Requested Mitchell Forney City of Columbia Heights 590 40th Avenue Columbia Heights, MN 55421 In reply refer to: C.S. 0205 (47=156) 623 Parcel 216 Anoka County Conveyance No. 2022-0017 Dear Mr. Forney, We are pleased to inform you that conditional approval has been obtained for the conveyance of the above-referenced real property as described in Exhibit “A” and shown in Exhibit “B” (the “Property”). The State of Minnesota, Department of Transportation (“Seller”) offers to convey the Property to City of Columbia Heights (“Buyer”) for a consideration of $7,700.00 in accordance with the following terms and conditions: 1. All current real estate taxes, existing or pending assessments, delinquent taxes, fees and penalties will be paid by Buyer. 2. Seller makes no representations about the status of the title to the Property and is not obligated to correct any title defects. 3. This conveyance is subject to the following, which will be included in the deed issued to Buyer (the Grantee described below is one and the same as the Buyer described in this offer letter): a. Access control described in Exhibit “A” and shown in Exhibit “B”. b. The Property is subject to the rights of existing utilities, if any, as provided in Minnesota Statutes §161.45 subd. 3. c. Existing Right of Way fence shall be relocated by the city to the proper position along the New Right of Way line as shown in Exhibit “B”. 4. The Property and all improvements, if any, are being conveyed as-is and where- is. 5. Payment must be made in the form of a cashier’s check, certified check or 67 Item 4. Mitchell Forney February 1, 2023 Page 2 Conveyance Offer Letter - Indemnity RC1019 2/1/2023 money order made payable to “Commissioner of Transportation – Trunk Highway Fund” in the amount of $7700.00 6. This offer is subject to and specifically conditioned upon receipt of the above- mentioned consideration on or before July 31, 2023. If such consideration is not received on or before that date, this offer is null and void and of no further force and effect; and Seller is released from any further obligation to Buyer and may negotiate with other parties for sale or other disposition of the Property. 7. Upon receipt of payment for the conveyance, Seller will issue to Buyer a quitclaim deed, using the legal description in Exhibit “A”. Buyer agrees that upon issuance of the quitclaim deed, the Seller may record the deed in the Office of the County Recorder or Registrar of Titles as appropriate. Seller will provide Buyer with the recorded deed within 15 days of the return of the deed from the County. 8. The Seller may revoke this offer and cancel this conveyance in its discretion at any time before payment is received. The Seller shall notify Buyer in writing of such revocation and cancellation. Upon cancellation, this offer is null and void and shall be of no further force and effect; and the Seller is released from any further obligation to Buyer. Please submit payment to: Minnesota Department of Transportation 395 John Ireland Blvd., St. Paul, MN 55155-1800. Attn: Jason Alman, MS 632 Jason can be reached at 651.366.3487 Sincerely, Joseph D. Pignato, Director Office of Land Management Enclosures: Exhibits A and B 68 Item 4. 3930 University 230 40th 3853 3rd MNDOT ParcelAPPROX ³ Parcel Map Owner Information: Disclaimer: Map and parcel data are believ ed to be acc urate, b ut accura cy is not gu aran teed. This is not a legal docume nt and sho uld not besubstituted for a title searc h, apprais al, survey, or for zoning verification. Date: 2/27/20231:1,200Anoka County GIS CO LUMBIA HEIGHTS EDA 590 40TH AVENU E NE COLUMBIA HEIGH TS MN 55421 Parce l Information: 35-3 0-24-3 2-0104 230 4 0TH AVE NE MN COLUMBIA HEIGHTS 55421 MANDY MEISNER 0.72Approx. Acres: REARRANGEME NT OF BLOCK E OF COLUMBIA HEIGHTS ANNEX Commissioner: Plat: 69 Item 4. BLANKDESCRIPTION Page 1 of 1 RLD1001 10/19/2022 October 18, 2022 2022-0017-0205 DESCRIPTION FOR CONVEYANCE Parcel 216 C.S. 0205 (47=156-23) That part of Tract A described below: Tract A.That part of Lot 18, and the North Half, front and rear of Lot 2, Rearrangement of Block “E”, Columbia Heights Annex to Minneapolis, lying westerly of the highway, according to the plat thereof on file and of record in the office of the County Recorder in and for Anoka County, Minnesota; which lies westerly of a line run parallel with and distant 63 feet westerly of Line 1 described below; Line 1.Beginning at a point on the south line of Block 91, said Columbia Heights Annex to Minneapolis, distant 25 feet West of the southeast corner thereof; thence northwesterly to a point on the north line of Lot 18, Rearrangement of Block E, said Columbia Heights Annex, distant 107 feet east of the northwest corner thereof and there terminating; containing 14161 square feet, more or less; Subject to the following restriction: No access shall be permitted to Trunk Highway No. 47 and 40th Avenue Northeast from the lands herein conveyed. 70 Item 4. 216 PARCEL CONVEY 40th AVE T H 4 7 SCALE: 1" = 100' MAP: 6-90 AREA: 14161 SQ FT PARCEL 216 CS 0205 (47=156) 623 CONVEYANCE 2022-0017 DM N 14-30-2423-30-2426-30-2435-30-2471 Item 4. Internal Memo Date: December 21, 2022 To: Michelle Waters Office of Environmental Stewardship, Environmental Investigation Unit From: Jill Keefe Office of Environmental Stewardship, Environmental Investigation Unit From: 612-257-1987 RE: Conveyance 2022-0017 – OES review C.S. 0205 (47=156) 623 Parcel 216 NW quadrant of TH 47 and 40th Avenue NE, Columbia Heights, Anoka County (the Conveyance Parcel) Introduction It is important to know if a property is contaminated prior to selling or leasing a property, so that the condition of the property at the time of sale or lease is documented, and this information can be disclosed to a purchaser/lessee. In November 2022, MnDOT’s consultant reviewed the following information to determine if there are any contamination concerns for the Conveyance Parcel: • Minnesota Pollution Control Agency (MPCA) database regarding known contaminated sites. • Minnesota Department of Agriculture (MDA) database regarding known contaminated sites. • Minnesota Department of Health (MDH) Minnesota Well Index (MWI) database regarding known water wells. • MnDOT Conveyance Parcel File Information • MnDOT Environmental Files • Aerial Photographs • Topographic maps • MnDOT Right of Way (ROW) maps Location The Conveyance Parcel consists of one undeveloped parcel measuring approximately 14,161 square feet and located at the southwest quadrant of Trunk Highway (TH) 47 (also known as University Avenue NE) and 40th Avenue NE in Columbia Heights, Anoka County. The Conveyance Parcel is bounded to the north by 40th Avenue NE with residential development beyond, to the east by TH 47 ROW with TH 47 and commercial and residential development beyond, to the south by an undeveloped parcel with residential development beyond, and to the west by residential development. The surrounding area is a mixture of residential and commercial development. 72 Item 4. MnDOT Conveyance Parcel File A review of the MnDOT Conveyance Parcel File was completed. The Conveyance Parcel was acquired in 1964-65 through condemnation proceedings for TH 47 improvements. At the time of acquisition, Parcel 216 was undeveloped and measured 27,400 square feet. No evidence of wells associated with the Conveyance Parcel were included in the file. No information included in the MnDOT Conveyance Parcel File indicates soil or groundwater impacts to the Conveyance Parcel. Historical Maps and Photographs A review of topographic maps covering the Conveyance Parcel and surrounding area was completed for the years 1902, 1921, 1954, 1959, 1969, 1973, 1981, 1986, 1993, 2013, 2016 and 2019. No structures are depicted at the Conveyance Parcel through 1993. A road or driveway is depicted along the west side of the Conveyance Parcel from 1973 through 1993. The 2013 through 2019 maps only show topography, roads and waterways; therefore, no specific features are depicted on or in the vicinity of the Conveyance Parcel. Roads border the Conveyance Parcel to the north and east on all of the maps. Scattered structures typical of dwellings are depicted in the surrounding area through 1921. The surrounding area is shaded as to depict urban development from 1954 through 1993. A review of aerial photographs of the Conveyance Parcel and surrounding area was completed for the years 1938, 1945, 1947, 1957, 1960, 1965, 1972, 1977, 1985, 1991, 1997, 2005, 2008, 2011, 2017, 2020, and 2022. The Conveyance Parcel was undeveloped and covered with vegetation through 1965 with some ground disturbance present in 1938 and 1945. A dirt trail or road is apparent extending from the intersection of 40th Avenue NE and TH 47 towards the Conveyance Parcel in 1945. Since 1972, a road or driveway is apparent extending south from 40th Avenue NE and bisecting the Conveyance Parcel; the remainder of the Conveyance Parcel is covered with vegetation. Roads border the Conveyance Parcel to the north and east on all of the photographs. 40th Avenue NE adjacent to the north has expanded by 1945. TH 47 adjacent to the east has expanded by 1972. The surrounding area is progressively developed for residential and commercial uses with a gasoline station visible in the northeast quadrant of TH 47 and 40th Avenue NE from 1991 through 2011. A review of MnDOT ROW maps for the Conveyance Parcel and surrounding area was completed. The ROW maps are typically undated. ROW Map 6-90, updated as recently as 2018, depicted a dump in the southwest quadrant of TH 47 and 40th Avenue NE. The boundary of the dump was not depicted and the labeling of the dump appeared to be east of the Conveyance Parcel. A small ice house was also depicted but was not located on the Conveyance Parcel. Dwellings are depicted in the surrounding area as well as two gasoline stations further to the south of the Conveyance Parcel. MnDOT Environmental Files A search of MnDOT Office of Environmental Stewardship files was completed. The following environmental documents were reviewed: • Limited Phase I Environmental Site Assessment, Trunk Highway 47, Minneapolis and Columbia Heights, Minnesota, State Project Number: 2726-74, prepared by Braun Intertec, dated July 20, 2015 (2015 Phase I ESA) 73 Item 4. • Phase II Environmental Site Assessment, Trunk Highway 47, Minneapolis and Columbia Heights, Minnesota, State Project Number 2726-74, prepared by Braun Intertec, dated December 5, 2016 (2016 Phase II ESA) • Construction Monitoring Summary Letter, Trunk Highway 47 (University Avenue), Minneapolis and Columbia Heights, Minnesota, State Project No.: 2726-74, prepared by Braun Intertec, dated January 10, 2019 (2019 ConMon) 2015 Phase I ESA The 2015 Phase I ESA was prepared for MnDOT in preparation for the reconstruction of TH 47. The assessment was prepared using MnDOT’s modified version of the Phase I ESA standard practice for environmental site assessments. Based on the results, the Conveyance Parcel was not listed as a Site of Environmental Concern. A former filling station (Site 3 – Commercial Building at 4001 University Avenue NE) located in the northeast quadrant of TH 47 and 40th Avenue NE was identified as a Medium Potential for Contamination due to its past use and reported petroleum tank releases; a former filling station (Site 5 – Sarna’s Classic Grill at 3939 University Avenue NE) located in the southeast quadrant of TH 47 and 40th Avenue NE was identified as a Medium Potential for Contamination due to its past use and reported petroleum tank releases; and a former commercial property (Site 8 – Former Root Equipment at 3930 University Avenue NE) located adjacent south of the Conveyance Parcel was identified as a High Potential for Contamination due to the site being identified as a Potential Voluntary Investigation & Cleanup Program site. 2016 Phase II ESA The 2016 Phase II ESA was prepared in preparation for the TH 47 reconstruction project to investigate areas along TH 47 for the potential presence of subsurface contamination as identified in the 2015 Phase I ESA. Groundwater was not encountered at a terminus depth of 10 feet below ground surface (bgs) in any of the soil borings completed during the 2016 Phase II ESA. The closest soil boring to the Conveyance Parcel (Boring B-1) was completed approximately 150 feet to the southeast on the west side of TH 47 adjacent to Site 8 (adjacent south of the Conveyance Parcel). Evidence of debris including glass, bituminous and concrete was encountered at depths between 5 and 10 feet. No volatile organic compounds (VOCs), semi-volatile organic compounds (SVOCs), or metals were detected at concentrations exceeding their soil reference values (SRVs) or soil leaching values (SLVs). Diesel range organics (DRO) and gasoline range organics (GRO) were not detected at concentrations exceeding laboratory reporting limits. 2019 ConMon The 2019 ConMon was prepared for MnDOT to summarize environmental construction monitoring activities along TH 47. The activities were limited to the northeast quadrant of TH 47 and 27th Avenue NE, which was located more than a mile south of the Conveyance Parcel. MPCA and MDA Regulatory Database Review A review of the MPCA and MDA databases of known contaminated sites was completed. No MPCA or MDA sites were mapped on the Conveyance Parcel. No MDA release sites were mapped on or within 500 feet of the Conveyance Parcel. The following MPCA sites were mapped or measured within 500 feet of the Conveyance Parcel: 74 Item 4. • Root Equipment, located at 3930 University Avenue NE, formerly located adjacent south-southwest of the Conveyance Parcel, is a brownfields site (BF0001551) and Voluntary Investigation & Cleanup Program (VIC) site (VP29280). Based on a review of the MPCA files for BF0001551 and VP29280, the site had been developed since at least 1918, when the former main site building was constructed. One additional building was constructed in 1954, and two additional buildings were constructed in the 1970s. The site was historically occupied by a trucking company. From 1977 to 2006, the site was occupied by Root Equipment Supply Company, which sold electrical supplies and did electrical repair and electrical salvaging work. Surficial mercury and polychlorinated biphenyls (PCBs) in the main building were cleaned-up in 2007, after the site sold to a redeveloper, but no redevelopment occurred. Unpermitted dumping followed in 2009 and 2010, and the main site building burned down in 2010. Approximately nine tons of mercury and PCB contaminated ash and debris was disposed off-site in 2010. Four used oil drums were removed from the site and properly disposed of in 2010. A Phase II ESA was completed at the site in 2012 in association with VP29280 consisting of the advancement of 20 soil probes and 11 trenches. Probes GP-12 and GP-20 were completed within 15 feet of the south and southwest borders of the Conveyance Parcel, respectively, to depths of 8 feet. Test Trench TR-7 was completed to a depth of 6 feet approximately 15 feet south of the Conveyance Parcel. Groundwater was not encountered in GP-12, GP-20 or TR-7 or in any of the other borings that were completed to a depth of 40 feet bgs. Shallow soil samples were collected and analyzed for VOCs, PCBs, DRO, asbestos and RCRA metals. The results of the Phase II indicated the presence of metals, PCBs, and petroleum constituents in near-surface soils at the site. Arsenic, barium, lead and PCBs exceeded residential SRVs in several locations (the highest arsenic concentration was detected along the east side of the site) and lead and PCBs exceeded industrial SRVs in one location each. Specifically for GP-12, GP-20 and TR-7, various metals were detected in soil at concentrations less than their SRVs and DRO was detected in GP-20 (0-2’) at a concentration of 113 milligrams/kilograms (mg/kg). A subsurface investigation was conducted in 2019 in association with BF0001551. Soil samples were collected and analyzed for arsenic, barium and/or lead, PCBs and DRO. Four soil vapor samples were collected and analyzed for VOCs. Groundwater was not encountered in any soil borings that were completed to depths up to 40 feet bgs. Soil samples (C-2C, C-2A and C-5A) were collected within 15 feet of the south and southwest borders of the Conveyance Parcel. Hotspot 3 was identified in the area of GP- 20 from the 2012 Phase II ESA. DRO was detected in C-2A and C-2C with the concentration in C-2C at 126 mg/kg. Residual DRO was detected in the base and sidewalls samples from the excavation of C-2C and in the north and south sidewalls of the excavation of Hotspot 3. Lead was detected in C-5A at a concentration less than its SRVs; a composite soil sample from grid 5 (south of the Conveyance Parcel) had a lead concentration greater than its residential SRV. DRO was detected in the north and south sidewalls of Hotspot 3 at concentrations up to 39 mg/kg. Petroleum-related VOCs were detected in soil vapor. The closest soil vapor sampling location (VP-2 approximately 45 feet south of the Conveyance Parcel) had benzene at a concentration that exceeded its residential intrusion screening value (ISV) and 1,3-butadiene at a concentration that exceeded its industrial ISV. A Response Action Plan (RAP) dated November 22, 2019 was approved by the MPCA in a letter dated July 75 Item 4. 16, 2020. Response actions were completed at the site and were described in a RAP Implementation Report dated September 16, 2022. Approximately 744 cubic yards of contaminated soil intermixed with debris were excavated from the site and disposed of at permitted landfills. The extent of excavation around C-2C and Hotspot 3 was to the southwest border of the Conveyance Parcel. Soil confirmation samples were collected from the sidewalls of the remedial excavation at Hotspot 11 (approximately 300 feet south of the Conveyance Parcel) and analyzed for arsenic, the contaminant of concern at that location. Soil confirmation samples were collected from the base of each of the four former buildings and analyzed for arsenic, lead, PCBs, and DRO. Confirmation samples indicate that residual contamination does not pose a risk to human health or the environment. The MPCA subsequently approved the RAP Implementation report. The MPCA issued a No Further Action Determination for Soil letter on December 5, 2022 for BF0001551. • Meilke Petroleum/Conoco, 3955 University Avenue NE, formerly located approximately 275 feet east of the Conveyance Parcel across TH 47, is a tank site (four removed petroleum USTs) and a closed petroleum tank release site (Leak #1534 and #14828). Leak #1534 Based on a review of the MPCA file for Leak #1534, a petroleum tank release was reported on August 31, 1989 following the advancement of two soil borings. Six soil borings (boring B4 was located closest to the Conveyance Parcel, approximately 225 feet to the east, and was located southwest of the tank basin and pump islands) were advanced in January 1990 to depths ranging from 21 to 41.5 feet and were screened for organic vapors with a photoionization detector (PID). PID readings ranging from 0 to 170 parts per million (ppm) were recorded. Soil contamination appeared to be limited to the glacial till. Two soil samples were collected from the soil borings and submitted for laboratory analysis for benzene, ethylbenzene, toluene and xylene (BETX), methyl tert-butyl ether (MTBE), and total hydrocarbons (TPH) as gasoline. The shallower samples showed moderately low to high levels of contamination while the deeper samples showed zero to low levels of contamination (BETX, MTBE and TPH as gasoline were detected in the soil sample collected from B4 (19.5-20.5’) with the highest concentration being TPH as gasoline at 1,500 micrograms/kilogram). The horizontal extent of soil contamination appeared to be limited to the area around the tank basins and near the building (which may be related to a former waste oil tank that was removed in 1986). The subsurface data indicated that contamination was restricted by clayey soils between 14.5 and 26.5 feet bgs. Water bearing sand lenses exist in the glacial till at depths of 20 to 35 feet (the water table was estimated to be at a depth of approximately 75 feet). Water samples were collected from three of the soil borings. BETX, MTBE and TPH were detected in the groundwater samples (BETX, MTBE and TPH as gasoline were detected in the groundwater sample collected from B4 with the highest concentration being TPH as gasoline at 1,100 micrograms/liter (ug/l)). Tanks tightness tests were conducted on the four tanks at the site (one 3,000-gallon diesel UST, two 3,000-gallon gasoline USTs and one 6,000-gallon gasoline UST) on September 5, 1991; all systems passed the tightness testing. The file was closed by the MPCA on November 14, 1991. Leak #14828 Based on a review of the MPCA file for Leak #14828, a petroleum tank release was reported on June 27, 2002 following a Phase II ESA of the site. Five soil borings were advanced on June 27, 2002 (borings GP-1 and GP-3 were advanced along the west side of the site approximately 225 feet east of the Conveyance 76 Item 4. Parcel). Soil and groundwater samples collected from the borings revealed elevated levels of contaminants (DRO, GRO, and BETX); none of these parameters were detected in the soil samples collected from GP-1 and GP-3 and DRO and BETX were detected in the groundwater sample collected from GP-1 with the highest concentration being DRO at 120 parts per billion (ppb). Four USTs were removed on August 15, 2002 from the north portion of the site. The tank excavation was completed to a depth of 10 feet. Water was encountered at depths ranging from approximately 10 feet to 24 feet (was likely a perched water table). Associated piping ran in a westerly direction from the tank basin towards the pump islands and was also removed. Petroleum impacted soils were encountered during removal of the tanks. Additional investigation was conducted in October 2002 to define the extent of the soil and groundwater impacts. Two soil borings (GP-6 and GP-7) were advanced to depths of 25 feet in order to define the vertical and horizontal extent of the release to the northeast (these two borings were advanced along the east side of Lookout Place, which appears to be within or adjacent to the northeast corner of the site). Groundwater was encountered in one of the soil borings at a depth of 17 feet. Soil samples were collected from both borings and analyzed for DRO, GRO and BETX with detectable concentrations of petroleum constituents with slightly elevated DRO and GRO concentrations in the sample from Soil Boring GP-6 (22-24’). A groundwater sample was collected from GP-7 for analysis of DRO, GRO and VOCs. GRO was detected at a concentration of 51 ug/l and benzene at a concentration of 1.5 ug/l. The leak site was closed by the MPCA on December 12, 2002. Another subsurface investigation was conducted in May 2006 in preparation of redevelopment of the site into a restaurant. Seven borings were advanced (boring GP-6 was advanced along the west side of the site approximately 225 feet east of the Conveyance Parcel) and soil and groundwater samples were collected for analysis of DRO, GRO, BETX, MTBE, polynuclear aromatic hydrocarbons (PAHs) and/or VOCs. No parameters were detected in soil sample GP-6 (0-1’); a groundwater sample was not collected from GP-6. Soil and groundwater contamination appeared to be limited to the area surrounding the former gasoline station (the northern portion of the site with groundwater impacts extending below 40th Avenue NE). Three soil vapor samples were collected approximately 250 east of the Conveyance Parcel; various petroleum and non-petroleum VOCs were detected in all of the soil vapor samples with benzene exceeding is chronic health risk value in one sample. Response actions were completed. Impacted soil resulting from utility trenching, grading, or installation of the new building foundations was not encountered. DRO was detected in a soil sample collected from beneath a hydraulic lift but at a concentration below action levels. The MPCA issued a Completion of Voluntary Response Actions for Petroleum Contamination letter on March 8, 2007 for Leak #14828. • University Food & Fuel, 4001 University Avenue NE, formerly located approximately 300 feet northeast of the Conveyance Parcel across TH 47 and 40th Avenue NE, is a tank site (two removed gasoline USTs) and a closed petroleum tank release site (Leak #11531 and #17042). Leak #11531 Based on a review of the MPCA file for Leak #11531, a petroleum tank release was reported on July 11, 1998 based on field results of seven soil borings (P-1 through P-7) advanced on July 10, 1998 to depths up to 82 feet bgs. Groundwater was not encountered in any of the borings; the estimated depth to groundwater was 107 feet bgs. Boring P-7 was the closest to the Conveyance Parcel, approximately 260 feet to the northeast and to the southwest of the tank basin. Three additional borings (TB-1 through TB- 3) were advanced in October 1998. Boring TB-3 was the closest to the Conveyance Parcel, approximately 77 Item 4. 280 feet to the northeast and to the south-southwest of the tank basin. The USTs (two 10,000-gallon gasoline) were located approximately 300 feet northeast of the Conveyance Parcel. Soil samples were collected from all of the borings and analyzed for BETX, GRO, DRO and/or MTBE. None of these parameters were detected in soil sample P-7 (5’). Toluene, ethylbenzene, xylene, MTBE and GRO were detected in soil sample TB-3 (23’) with the highest concentration being GRO at 270 mg/kg. None of the parameters were detected in soil sample TB-3 (80-82’). Based on the laboratory analytical data, the highest concentration of petroleum hydrocarbon impacted soil appeared to extend from 15 to 23 feet bgs in the vicinity of the USTs. Based on the analytical results, the MPCA closed the file on September 24, 1999. The file also contained a Minnesota Duty Officer Report dated November 7, 2013 that stated a release was reported following the removal of two 10,000-gallon gasoline USTs. Perched water was encountered in the tank basin. Stained soils were observed and petroleum odors were present. The highest PID vapor reading was 1,222 ppm, which was detected in a soil sample collected from the north end of the east tank. No additional information was provided. Leak #17042 Based on a review of the MPCA file for Leak #17042, a release was reported on September 20, 2007 based on the results of a Phase II ESA. Five borings (GP-1 through GP-5) were advanced in September 2007. Three additional borings (GP-6 through GP-8) were advanced in January 2008. The borings were completed to depths up to 36 feet bgs; groundwater was not encountered. Boring GP-8 was the closest to the Conveyance Parcel, approximately 250 feet to the northeast and to the west of the tank basin. Borings GP-4 and GP-7 were completed approximately 20 to 25 feet further from the Conveyance Parcel and to the south of the tank basin. Five soil vapor sampling locations were also completed with the closest (VP-5) being just north of GP-8. Soil samples were collected from the eight soil borings and were analyzed for BETX, GRO, MTBE and/or VOCs. No parameters were detected in soil samples GP-8 (2’), GP-8 (36’), GP-4 (30’) and GP-7 (36’). GRO was detected at a concentration of 5.6 mg/kg in soil sample GP-4 (21’). Ethylbenzene, xylene, GRO and several other petroleum VOCs were detected in soil sample GP-7 (24’) with 1,2,4-trimethylbenzene and 1,3,5- trimethylbenzene exceeding their Tier 1 SRVs. The soil impacts were defined vertically and horizontally at the site around the tank basin. Several VOCs were detected in the soil vapor sample collected from VP-5 with the benzene concentration within the action level range. It was recommended that additional soil vapor investigation be conducted. An additional soil vapor sample (VP-6) was collected south of the adjoining building to the north (approximately 400 feet northeast of the Conveyance Parcel) in May 2008 and several VOCs were detected. Based on the additional investigation, file closure was requested. The MPCA closed the file on July 22, 2008. The file also contained the same Minnesota Duty Officer Report dated November 7, 2013. Based on the available information, there was no documentation that indicated the identified contamination associated with the reported releases has impacted the Conveyance Parcel; however, no investigation activities were conducted on the Conveyance Parcel. 78 Item 4. MDH MWI Database Review A review of the MWI did not identify any wells registered to, or plotted at, the Conveyance Parcel. Findings These findings are prepared for internal MnDOT decision making and are not to be relied upon by any prospective purchasers as environmental due diligence. Based on the available information, there may be residual soil contamination on the Conveyance Parcel associated with historic land use on the adjoining property to the south-southwest (residual DRO contamination was detected in sidewalls samples collected from excavations that abutted the southwest portion of the Conveyance Parcel). The Office of Environmental Stewardship recommends that MnDOT proceed with conveyance of the Conveyance Parcel; however, the environmental information that MnDOT has regarding the Conveyance Parcel should be shared in any sales agreement. It is also recommended that any final sales language state that the Conveyance Parcel is sold “as is”. Please let me know if you have questions or would like additional information. cc: File 79 Item 4. ECONOMIC DEVELOPMENT AUTHORITY AGENDA SECTION BUSINESS ITEMS MEETING DATE 03/06/2023 ITEM: Rail Werks Brewing Fire Suppression Grant Application DEPARTMENT: Community Development BY/DATE: Mitchell Forney, 3/1/2023 BACKGROUND: In 2022, the EDA created the Fire Suppression Grant Program (“Program”). Through this program the EDA wanted to assist local businesses with the cost burdening work of installing fire suppression systems within commercial buildings. As noted in the program guidelines, a lot of the commercial properties in Columbia Heights do not have fire suppression systems. The cost of adding these systems, when required, is very cost prohibitive for small businesses. Certain businesses and certain changes in use require the addi tion of fire suppression systems. The Applicant in question is William Roberts the owner of Rail Werks Brewing Depot. Rail Works Brewing is currently in the process of retrofitting a space in the strip mall on the NE corner of 40 th and Central. They are a new business that has been garnering funding and support in the community over the past few years. Along with brewing beer, Rail Werks plans to sell barbeque out of its kitchen. As noted, adding kitchens into any space can be very costly. The Fire Suppression Grant program can only assist with the Sprinkler and ANSUL system. While Rail Werks still needs to front the cost for hoods and the fire suppression related kitchen and HVAC equipment. Attached to the application are the applicants plans for the buil ding. To install the required fire suppression system Rail Werks Brewing is looking at adding a cost of approximately $48,872 to their build out. In 2022 The EDA allocated $45,000 for the creation of the Program, and budgeted $60,000 for 2023, leaving the program with a balance of $105,000. After the approval of Ruff Love Dogs Application for $30,000 , the EDA currently has $75,000 available for 2023. If approved , Rail Werks would receive a grant of $24,436 bringing the EDA’s funds available to $50,564 for the remainder of 2023. As stated above it has been difficult for staff to find business that are able to apply to the program. Staff believe that this project meets the intent of the Fire Suppression Grant program, assisting in the bringing a desirable business to the City of Columbia Heights. RECOMMENDED MOTION(S): MOTION: Move to waive the reading of Resolution 2023-10, there being ample copies available to the public. MOTION: Move to approve Resolution 2023-10, a resolution of the Economic Development Authority of Columbia Heights, Minnesota, approving the form and substance of the Fire Suppression Grant Agreement, and approving authority staff and officials to take all actions necessary to enter the authority into the Fire Suppression Grant Agreement with Rail Werks Brewing Depot. 80 Item 5. Page 2 ATTACHMENT(S): Resolution 2023-10 Rail Werks Brewing Fire Suppression Grant Application Fire Suppression Grant Agreement Fire Suppression Grant Guidelines 81 Item 5. Resolution 2023-10 RESOLUTION NO. 2023-10 A RESOLUTION OF THE ECONOMIC DEVELOPMENT AUTHORITY OF COLUMBIA HEIGHTS, MINNESOTA, APPROVING THE FORM AND SUBSTANCE OF THE FIRE SUPPRESSION GRANT AGREEMENT, AND APPROVING AUTHORITY STAFF AND OFFICIALS TO TAKE ALL ACTIONS NECESSARY TO ENTER THE AUTHORITY INTO THE FIRE SUPPRESSION GRANT AGREEMENT WITH RAILWERKS BREWING DEPOT. WHEREAS, the City of Columbia Heights (the “City”) and the Columbia Heights Economic Development Authority (the “Authority”) have collaborated to create a certain fire Suppression 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, rehabilitating, and restoring commercial build ings increasing business vitality, economic performance, and public safety; and WHEREAS, the Authority has thoroughly reviewed copies of the proposed form of the Grant Agreement. NOW, THEREFORE BE IT RESOLVED that, after appropriate examination and due consideration, the Authority 1. approves the form and substance of the grant agreement and approves the Authority entering into the agreement with Rail Werks Brewing Depot. 2. that the City Manager, 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. 3. that the City Manager, 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. ORDER OF ECONOMIC DEVELOPMENT AUTHORITY Adopted this 6th day of March, 2023 Offered by: Seconded by: Roll Call: President Attest: Secretary 82 Item 5. 83 Item 5. 84 Item 5. 1 Mitchell Forney From:Lisa Cornwell <lisa@grootwassink.com> Sent:Tuesday, February 28, 2023 2:59 PM To:Mitchell Forney Cc:Tim McLaughlin; William Roberts Subject:Fire Suppression Grant Attachments:Fire Suppression Grant Application 2023.pdf This message originated from outside the City of Columbia Heights email system. Use caution when clicking hyperlinks, downloading pictures or opening attachments. If necessary, contact sender by phone. WHEN IN DOUBT, THROW IT OUT! Mitch Attached is the fire suppression grant application. Columbia Heights Center, LLC un derstands and approves the scope of the fire suppression work to be done. If you have any questions please contact Tim McLaughlin. Lisa Cornwell Grootwassink Real Estate 14675 Martin Drive Suite 200 Eden Prairie, MN 55344 Office: 952-944-1665 Fax: 952-944-2419 lisa@grootwassink.com 85 Item 5. QUOTE TO: Tim McLaughlin FROM: Brad Zurn COMPANY: Grootwasink COMPANY: The Fire Group Inc. DATE:4/18/2022 PHONE: 651-285-2238 SUBJECT: Werks Brewing Depot SCOPE OF WORK: Demo pendent sprinkler heads and install new upright sprinkler heads as needed for exposed ceilings. Add pendent sprinkler heads above the bar. Move sprinkler heads in the bathrooms. Add dry pendent sprinkler heads in the cooler. Raise mains and branchlines to the bottom of the barjoists in the back portion of the dining hall. TAX AND PERMIT FEE'S INCLUDED. WE PROVIDE NON-UNION LABOR. WE RESERVE THE RIGHT TO SUBMIT MONTHY PROGRESS BILLINGS AS NEEDED. PRICE TO DO THIS WORK:24,916.00$ VALID FOR 30 DAYS. This proposal is based on current pricing for steel products. If notice to proceed, returned signed proposal, or contract is not received by The Fire Group, Inc by the 30 day valid date, purchaser accepts that material pricing may be increased under this proposal. The Fire Grroup, Inc. will provide supplier increase announcement upon request. The Fire Group, Inc. recommends that the purchaser request updated pricing prior to awarding this project if past 30 days. HAVE YOUR JOB SUPERINTENDENT CONTACT CHAD TO SCHEDULE THIS WORK 651-402-2402 Please call me with any questions. Thank You, Brad Zurn Vice President ACCEPTED BY: THE FIRE GROUP INC. DATE: 833 3RD STREET SW*SUITE 4*NEW BRIGHTON, MN 55112*FAX 651-633-3000*PHONE 612-567-4653*LIC #C190 86 Item 5. Viking Service Proposal 08-06-2014.docx 301 York Avenue • St. Paul MN 55130 • 651.558.3300 • 800.229.6263 People. Integrity. Professionalism. Excellence. PROPOSAL PROPOSAL SUBMITTED TO Rail Werks PHONE 612-710-7603 DATE 1/30/23 STREET EMAIL railwerks@outlook.com DATE OF PLANS N/A CITY, STATE, ZIP CODE JOB NAME: Rail Werks – Tenant Improvement ARCHITECT N/A ATTENTION William Roberts JOB LOCATION 4055 Central Ave NE Columbia Heights, MN BID NUMBER ZS23-001 Viking Automatic Sprinkler Co. is pleased to provide this proposal for fire sprinkler modifcations and installation: Plug/remove all pendant style sprinklers in future dining area and hallways in the back Install approx. (60) upright sprinklers where drops were Raise approx. 50 feet of main in future dining area Add approx. (4) dry sprinklers for coolers Reroute sprinkler lines in kitchen area for new hood system All work to be performed during normal working hours 7:00AM – 3:30PM.. Due to the existing pandemic involving COVID-19 and the constantly evolving situation, we reserve the right to an extension of time arising from or related to COVID-19 shutdowns, disruptions and/or business interruptions. In the event of any associated volatility in materials, we reserve the right to adjust all prices based on the cost of materials at the time of contract. The customer may be required to pay for materials at the time of contract to guarantee price. INCLUSIONS DEMO MATERIAL & FABRICATION INSTALLATION Lift Rental Permit EXCLUSIONS: PAINTING & PATCHING RAISING OR RELOCATING MAINS OR LINES OVERTIME & OFF HOURS WORK WE PROPOSE HEREBY TO FURNISH MATERIAL AND LABOR - COMPLETE IN ACCORDANCE WITH THE ABOVE SPECIFICATION, FOR THE SUM OF: Twenty-Four Thousand Nine Hundred Seventeen DOLLARS ($24,917.00) PAYMENT TO BE MADE MONTHLY AS THE WORK PROGRESSES TO THE VALUE OF 100 (%) PERCENT OF ALL WORK COMPLETE AND MATERIAL ON JOB SITE. THE ENTIRE AMOUNT OF CONTRACT TO BE PAID WITHIN 30 DAYS AFTER COMPLETION. NOTE: THIS PROPOSAL MAY BE WITHDRAWN BY US IF NOT ACCEPTED WITHIN 30 DAYS. Zach Szody AUTHORIZED SIGNATURE _________ Zach Szody - SERVICE MANAGER ACCEPTANCE OF PROPOSAL THE ABOVE PRICES AND SPECIFICATIONS AND THE TERMS AND CONDITIONS FOUND OF THE FINAL PAGE OF THIS PROPOSAL ARE SATISFACTORY AND ARE HEREBY ACCEPTED. YOU ARE AUTHORIZED TO DO THE WORK AS SPECIFIED. PAYMENT WILL BE MADE AS OUTLINED ABOVE. PLEASE PRINT NAME ___________________ DATE OF ACCEPTANCE / / _ TITLE __________________________________________ CUSTOMER SIGNATURE ___________________ 87 Item 5. Viking Service Proposal 08-06-2014.docx TERMS AND CONDITIONS The Proposal, together with these Terms and Conditions, constitute the entire agreement (“Agreement”) of the parties. 1. This Agreement is for work performed on this Proposal only. If Customer wants Viking Automatic Sprinkler Co. (“Company”) to make any additional repairs, alterations or replacements as a result of the work performed, the Company will do so for additional compensation to be agreed upon in writing by the parties. 2. The Company does not know and does not represent whether the current fire protection system on the property of Customer (“Property”) was originally designed and installed in such a way that the system will perform as originally intended or is suitable and sufficient for its intended purpose given the way in which the Property has been or will be used. In other words, the Property has been or may be used in ways such that the configuration of partition walls, the location of and types of materials (including the presence of hazardous materials) and other conditions of the Property’s use are such that the fire protection system is inadequate, insufficient or unsuitable for the Property. The Company is NOT responsible for any damages due to: (1) incompatibility of materials within a CPVC piping system, or, (2) corrosion or deterioration of piping due to Customer’s water supply, atmospheric conditions, soil quality, or any other condition at Customer’s facility that adversely affects the integrity of the fire protection system. THIS AGREEMENT IS NOT A GUARANTEE OR WARRANTY THAT THE SYSTEM WILL IN ALL CASES (A) PROVIDE THE LEVEL OF PROTECTION FOR WHICH IT WAS ORIGINALLY INTENDED, (B) IS FREE OF ALL DEFECTS AND DEFICIENCIES, (C) AND IS IN COMPLIANCE WITH ALL APPLICABLE CODES. Customer agrees that it has not retained Company to make these assessments unless otherwise specifically indicated. 3. The Company will be permitted, at all reasonable times, to enter the Property to conduct the work as outlined in this Agreement. 4. TO THE FULLEST EXTENT PERMITTED BY LAW, CUSTOMER AGREES TO DEFEND, INDEMNIFY AND HOLD HARMLESS COMPANY AND ITS OFFICERS, DIRECTORS, EMPLOYEES, AGENTS, PARENT COMPANY, SUBSIDIARIES AND AFFILIATES, (HEREINUNDER REFERRED TO AS “INDEMNIFIED PARTIES”) FROM AND AGAINST ANY AND ALL CLAIMS, DEMANDS, LOSSES, EXPENSES OR LIABILITIES OF ANY KIND, INCLUDING ATTORNEY'S FEES, (HEREINUNDER REFERRED TO AS “DAMAGES”), ARISING OUT OF OR IN ANY WAY RELATING TO OR CONNECTED WITH THE WORK PERFORMED BY THE COMPANY UNDER THIS AGREEMENT (WHETHER ARISING DURING OR FOLLOWING THE PERFORMANCE OF THE WORK). THE FOREGOING OBLIGATIONS TO DEFEND, INDEMNIFY AND HOLD HARMLESS SHALL BE ENFORCEABLE REGARDLESS OF WHETHER SUCH “DAMAGES” ARE ACTUALLY OR ALLEGEDLY CAUSED BY THE NEGLIGENCE, PRODUCT LIABILITY, BREACH OF CONTRACT, BREACH OF WARRANTY, BREACH OR VIOLATION OF A STATUTE, ORDINANCE, GOVERNMENTAL REGULATION, STANDARD OR RULE OR OTHER FAULT OF ANY OF THE “INDEMNIFIED PARTIES”, IT BEING THE EXPRESS INTENT OF CUSTOMER TO DEFEND INDEMNIFY AND HOLD HARMLESS THE “INDEMNIFIED PARTIES” FROM THE CONSEQUENCES OF THE “INDEMNIFIED PARTIES” OWN NEGLIGENCE, PRODUCT LIABILITY, BREACH OF CONTRACT, BREACH OF WARRANTY, BREACH OR VIOLATION OF A STATUTE, ORDINANCE, GOVERNMENTAL REGULATION, STANDARD OR RULE OR OTHER FAULT. SHOULD THE “DAMAGES” ASSERTED AGAINST THE “INDEMNIFIED PARTIES” ARISE OUT OF THE SOLE NEGLIGENCE OF THE “INDEMNIFIED PARTIES” CUSTOMER'S INDEMNIFICATION OBLIGATIONS HEREUNDER SHALL BE ONLY FOR THE AMOUNT OF THE “DAMAGES” THAT EXCEEDS THE LESSER OF $5,000 OR THE CONTRACT AMOUNT. CUSTOMER FURTHER AGREES TO INDEMNIFY THE “INDEMNIFIED PARTIES” FOR THEIR LEGAL FEES, COSTS AND DISBURSEMENTS PAID OR INCURRED TO ENFORCE THE PROVISIONS OF THIS PARAGRAPH AND TO OBTAIN, MAINTAIN AND PAY FOR SUCH INSURANCE COVERAGE AND ENDORSEMENTS, INCLUDING COMPLETED OPERATIONS COVERAGE, AS WILL INSURE THE PROVISIONS OF THIS PARAGRAPH, AND UPON REQUEST, SHALL PROVIDE COMPANY WITH EVIDENCE THEREOF. 5. IT IS UNDERSTOOD AND AGREED BY CUSTOMER THAT COMPANY IS NOT AN INSURER, THAT CUSTOMER SHALL OBTAIN THE TYPE AND AMOUNT OF INSURANCE COVERAGE WHICH IT DETERMINES NECESSARY, AND THAT THE AMOUNTS PAYABLE TO THE COMPANY HEREUNDER ARE BASED UPON THE VALUE OF THE SERVICES RENDERED AND ARE UNRELATED TO THE VALUE OF CUSTOMER'S PROPERTY, THE PROPERTY OF OTHERS LOCATED ON CUSTOMER'S PREMISES, OR ANY POTENTIAL LIABILITY OR DAMAGE TO CUSTOMER ARISING OUT OF THE WORK PERFORMED BY COMPANY. CUSTOMER ACCORDINGLY AGREES THAT THE LIABILITY OF COMPANY, ITS OFFICERS, DIRECTORS, EMPLOYEES, PARENT COMPANIES, SUBSIDIARIES, AFFILIATES AND AGENTS ARISING OUT OF OR IN ANY WAY RELATING TO OR CONNECTED WITH THE WORK PERFORMED BY THE COMPANY SHALL BE LIMITED TO THE LESSER OF $5,000 OR THE PRICE OF THE WORK PERFORMED BY THE COMPANY. THIS LIMITATION OF LIABILITY SHALL APPLY TO ALL CLAIMS, DEMANDS, LOSSES, EXPENSES OR LIABILITIES OF ANY KIND, INCLUDING ATTORNEY'S FEES, (HEREINAFTER REFERRED TO AS “DAMAGES”), SUSTAINED BY CUSTOMER OR ANY OTHER PARTY CLAIMING BY OR THROUGH CUSTOMER, AND SHALL APPLY REGARDLESS OF WHETHER SUCH “DAMAGES” ARE ACTUALLY OR ALLEGEDLY CAUSED BY THE NEGLIGENCE, PRODUCT LIABILITY, BREACH OF CONTRACT, BREACH OF WARRANTY, BREACH OR VIOLATION OF A STATUTE, ORDINANCE, GOVERNMENTAL REGULATION STANDARD OR RULE OR OTHER FAULT OF COMPANY, ITS OFFICERS, DIRECTORS, EMPLOYEES, AGENTS, PARENT COMPANIES, SUBSIDIARIES AND AFFILIATES. 6. CUSTOMER AGREES TO REQUIRE ITS INSURANCE POLICIES TO BE ENDORSED SO AS TO WAIVE ALL RIGHTS OF SUBROGATION AGAINST COMPANY. 7. While the Company will make every reasonable effort to prevent the discharge of water into or onto areas of landscaping, decorative pavement, etc., it is the Customer’s responsibility to provide sufficient and readily accessible means to accept the full flow of water that may be required by tests as determined by the Proposal. 8. This Agreement may not be assigned by Customer without the written consent of the Company. 9. Neither party shall be liable to the other for indirect, incidental, consequential or punitive damages arising out of the work. 10. If payment for work provided in this Agreement is not received by the Company within 30 days from Customer’s receipt of an invoice for the work, Customer shall pay interest at the rate of 3% per annum on all past due sums, together with all costs of collection, including attorney’s fees. 11. This Agreement constitutes the entire agreement of the parties. If any provision hereof shall be invalid, the remaining provisions shall survive and be enforceable against the parties. The law of the state where the work is performed will govern. This Agreement supersedes all prior agreements. This Agreement may be modified only by a written instrument signed by both parties. 88 Item 5. REVISED PROPOSAL Submitted To: From: Phone: Page: Rail Werks Brewing Depot Tom Berg Cell: 612-741-9365 1 of 3 Attention: Email: William Roberts Tom.Berg@Northland-MN.com Email: Job Location: railwerks@outlook.com 4055 NE Central Ave, Columbia Heights, MN 55421 Date: Miscellaneous Job Information: REV2 2/3/23 Provide And Install Kitchen Ventilation Systems Northland Mechanical Contractors, Inc. is pleased to present the following proposal to provide labor and materials to install one ventilation system for the char broiler, fryer, and range, and then another separate ventilation system for the rack smoker. We specifically include: • Delivery and staging of equipment and materials • Crane and rigging work • Lift rental • Installation of two hoods, both with perforated supply plenums • Installation of two exhaust fans with roof curbs, one for each hood • Installation of two direct fired make-up air units with roof curbs, one for each hood • Installation of double walled exhaust ductwork for each hood, all with external fire barrier wrap • Installation of new make up air ductwork to each set of perforated supply plenums • Modification of existing ductwork feeding the kitchen to maximize airflow • Installation of new gas piping from near kitchen to feed make-up air units and kitchen appliances • Provide electrical controls / panels that include demand control ventilation components, VFDs, sensors, and lighting relay kits (installed by others) • Start up and commissioning of all equipment • Smoke / pressure testing on exhaust ductwork as required • Mechanical drawings, permits, and inspections as required We hereby propose to furnish material and labor, complete in accordance with the above specifications, for the sum of: $106,950 One Hundred Six Thousand Nine Hundred Fifty Dollars ADD to provide and install fire suppression systems for both hoods including gas piping, power wiring, and control wiring………………………………………………………………………………………………………………..……………..…$29,970_____ ADD to install evaporator coil in main make-up air unit now in order to add cooling later………………..$5,720_____ ADD to install complete cooling system for main make-up air unit (includes evaporator coil)……..….$20,000_____ ADD to provide backsplash and side panels for main hood (installed by others)…………………..…………..$3,640_____ ADD to provide backsplash for smoker hood (installed by others)…………………..………………………………..$1,410_____ 89 Item 5. If the price of material significantly increases due to market instability, or other causes that are no fault of Northland Mechanical, the price shall be equitably adjusted by an amount reasonably necessary to cover any such significant price increases. Thank you, Tom Berg Senior Project Manager Northland Mechanical Contractors, Inc. See Page 3 of this Proposal for important inclusions, exclusions, and clarifications. Acceptance of Proposal: The above prices, specifications and conditions are satisfactory and hereby accepted. You are authorized to do the work as specified. Payment will be made as outlined above. Payment Terms: A deposit of 50% will be required prior to mobilization or equipment purchase. Full payment is due upon receipt of final invoice. Interest of 1.5% monthly will apply to any unpaid balance remaining 15 days after invoicing. Northland Mechanical Co ntractors, Inc. reserves the right to file a lien if the invoice is not paid in full. Date of Acceptance Customer Signature 90 Item 5. REVISED PROPOSAL Submitted To: From: Phone: Page: Rail Werks Brewing Depot Tom Berg Cell: 612-741-9365 3 of 3 Attention: Email: William Roberts Tom.Berg@Northland-MN.com Email: Job Location: railwerks@outlook.com 4055 NE Central Ave, Columbia Heights, MN 55421 Date: Miscellaneous Job Information: REV2 2/3/23 Provide And Install Kitchen Ventilation Systems General Inclusions • The entire installation will be performed in accordance with all state and local codes • New installations will carry a parts and labor warranty of (1) year • Freight and sales tax • Permit and inspections • Clean up and removal of NMC debris from the jobsite General Exclusions • Overtime labor (Standard work hours are 7:00AM and 3:30PM Monday through Friday) • Diagnostics and additional corrections, if necessary • Other system deficiencies and/or unforeseen conditions • Controls, control wiring, or mounting of controls • Roofing, roof work, or deck cutting • Bond costs • Fire protection, alarm & detection • Mechanical equipment safety rails & screening • Electrical power wiring • Arc fault/arc flash study if required • Smoke/fire damper control wiring • Painting equipment, piping, or ductwork • Asbestos testing and/or abatement • Structural engineering & reinforcement Clarifications • We apply for energy efficiency utility rebates when available as an added service to our customers. Rebates are subject to verification and acceptance by the Utility. Northland Mechanical does not have authority over rebates and is not responsible for declined applications or rebate amounts. • All work to be completed in a workmanlike manner according to standard practices • Any alteration or deviation from above specifications involving extra costs will be executed only upon written orders, and will become an extra charge over and above the estimate • All agreements are contingent upon strikes, accidents, or delays beyond our control • Owner is to carry fire, builder’s risk, tornado, and other necessary insurance • Our workers are fully covered by Workers Compensation Insurance • Our proposal is valid for 30 days from the proposal date 91 Item 5. Date: MN MN Attn: Phone: Fax:Fax: E-Mail: Qty 2 Qty Includes Includes Includes Includes John Oczak Date Signature of Acceptance Date JOczak@nardinifire.com *The final page of this document includes important information regarding Nardini Fire Equipment Co.,Inc.and Nardini Fire Company of North Dakota terms and conditions of service and products.This includes limitations of liability,contractual limitation in which you may bring a claim,disclaimers of warranty,and other terms that may impact Customer’s rights.By signing below,Customer’s authorized representative acknowledges and warrants that they have read, understood, and agreed to be bound by these conditions. Note: This NFE proposal may be withdrawn if not accepted within 30 days. Acceptance of Proposal – The above prices, specifications, and conditions are satisfactory and are hereby accepted. You are authorized to do the work as specified. Payment will be made within 30 days. John Oczak 2/14/2023 +Third Party Fees: Invoicing/Administrative/Safety/Compliance: Additional as Required *Required 50% down payment upon acceptance Pricing firm for 60 days *Includes equipment, piping and labor Thank you for the opportunity to offer our product and services. If you have any questions, please call. 3. Gas valve installed (if required). 4. Electric work substantially completed (wiring by others). Note: If the above items are not met, additional charges may be assessed. The Pre-Engineered system as described above will be installed in accordance with and will meet approvals of: The manufacturer, U.L. 300 listing, purchaser’s insurance company, and local fire authority. *TOTAL: $8,450.00 - A minimum of 7 days advance notice is required prior to scheduled installation Exclusions:Electric wiring, gas valve installation, fire alarm interface, sprinkler system work, off-hours labor, union labor, semi-annual maintenance, hydrostatic testing, work not listed. Tax additional as required. The following items must be completed before installation of the Pre-Engineered System -- by others. 1. Hood hung and ductwork installed. 2. Appliances in place or a detailed layout completed showing dimensions and location. Drops, nozzles, chrome sleeving Detection system Includes Standard labor hours for install (1) Ansul gas valve & (1) pull station, per system This proposal includes the following accessories: Equipment Qty Equipment Release mechanism, tanks, wet agent, switches Includes Permit and 1 trip to test w/ City inspector 1 system will protect smaller 4' hood w/ smoker Excludes Fire alarm panel interfacing. Excludes Electrician for power wiring, Ansul gas valve install 1 system will protect 10' hood. Pursuant to your request, we wish to offer the following for your consideration: Equipment Qty Equipment Ansul R-102 fire suppression systems. railwerks@outlook.com E-Mail: FIRE SUPPRESSION SYSTEM PROPOSAL 612-710-7623 Phone: Railwerks Railwerks Columbia Hts Columbia Hts Proposal Submitted To:Bill To #:Worksite:Order #: Mr. William Contact: 405 County Road E, West Saint Paul, MN 55126 Phone: (651) 483-6631 Fax: (651) 483-6945 www.nardinifire.com / sales@nardinifire.com Saint Paul/Minneapolis ⬧ Brainerd Fargo ⬧ Bismarck ⬧ Detroit Lakes ⬧ Williston February 14, 2023 Quote Proposal #: STP-23-019567 Page 1 92 Item 5. Date: February 14, 2023 Quote Proposal #: STP-23-019567 *Definition “Customer”is defined as Company,Entity,Person or End User which is executing this document.“Company”is defined as Nardini Fire Equipment Company,Inc and/or Nardini Fire Equipment Company, Inc of North Dakota. *Limitation of liability Customer acknowledges that the Company is not an insurer of or against any potential or actual loss or damage to person or property,whether direct,incidental and/or consequential, that may occur in or at the premises. Company’s total liability to customer for damages for any claims,losses or damages arising out of or in any way related to any cause whatsoever in relation to this agreement,whether based in contract,tort (including negligence),strict liability,breach of warranty or other cause,shall not exceed $250.00.Notwithstanding the foregoing sentence,under no circumstances shall company be liable for any damages for loss of use,interruption of business,lost profits,revenue or opportunity,claims of third parties or for injury to persons or property or for any other special,exemplary,incidental,indirect,punitive,consequential or other damages of any kind or nature. If the Company is found liable for any loss or damage due to its gross negligence, the Company’s liability shall not exceed $7,500.00. *Warranty disclaimer Except as provided in any specific warranty paragraphs,Company makes no warranty of any kind,express or implied,including but not limited to,any warranty of merchantability or warranty of fitness for a particular purpose. *For inspections only This agreement is not a guarantee or warranty that the system will in all cases provide the level of protection for which it was originally intended,is free of all defects and deficiencies,and is in compliance with all applicable codes.Customer agrees that it has not retained Company to make these assessments unless otherwise specifically indicated. *Indemnification Customer agrees to indemnify,hold harmless,defend,and release the Company from liability and shall reimburse the Company for any liabilities,damages,losses or expenses (including reasonable attorneys’fees,expert fees and costs (including litigation costs),injuries,claims,suits,judgments,and causes of action incurred by the Company in connection with any claims,suits,judgments and causes of action which relate to the products or services the Company provides.This indemnity includes claims brought by any third party,including,without limitation,Customer’s insurance company,whether the claim arises under contract,warranty,tort,or any other theory of liability. *Waiver of subrogation In case of any claim or loss,Customer agrees that it is responsible to maintain,and has sufficient insurance coverage to cover any potential claim or loss.Customer further agrees to look to its property and/or general liability insurance carrier for reimbursement.Customer and Company mutually agree to release one another from any and claims with respect to any loss covered by (or which should have been covered)the insurance coverages which were required and/or recommended that may be applicable to any property where Company performs services and/or provides materials for Company.For purposes of this Section,all deductibles shall be considered insured losses. They further mutually agreed that their respective insurance companies shall have no right of subrogation against the other on account thereof. *Customer responsibilities Customer shall be responsible for maintaining adequate heat throughout the facility to prevent freezing or damage to the existing fire sprinkler system.The customer understands and expressly acknowledges that fire protection systems are susceptible to damage by water intrusion,ice,or other conditions inside the piping that the Company cannot detect upon inspection.In the event that water,ice,or other conditions occur which render the fire protection system inoperable or damaged,Company expressly disclaims any responsibility for such conditions,and assumes no responsibility to investigate the cause,source or extent of such condition.Customer acknowledges this warning,and acknowledges that under NFPA and other applicable codes and regulations,it is the responsibility of the customer to maintain its fire protection system,including but not limited to ensuring proper drainage.Failure to properly maintain or drain such systems may lead to breaks or other conditions that may render the fire protection system inoperable, or that damage to the system may result in injury, damage to property and loss of use. *Intent of inspection This inspection/testing is not intended to be a code review, complete system or code compliance evaluation. *Contractual limitation period Customer expressly agrees that any claim,lawsuit,or cause of action,whether in contract,tort or other legal theory,relating in any way and/or arising out of Company’s services and/or materials provided to Customer,its subsidiaries and/or its insurers,must be filed no more than one (1)year from the date the alleged damage(s)occurs, that is the subject of the claim, lawsuit and/or cause of action. Customer expressly waives any statutory and/or common law limitation period to the contrary. *Law and jurisdiction This Agreement will be governed by,construed,and enforced in accordance with the laws of the State of Minnesota or North Dakota applicable to agreements made and to be performed entirely within such state,without regard to such state’s conflict of laws rules.Company and Customer agree that any action brought by any party shall be brought and resolved exclusively by the state and federal courts located in Ramsey County (MN)or Cass County (ND),and the courts to which an appeal therefrom may be taken,provided that any party shall have the right,to the extent permitted by applicable law,to proceed against any other party or its property in any other location to the extent necessary for the enforcing party to enforce a judgment or other court order or arbitral award.Each of the parties hereby consents to the jurisdiction of such courts and waives all questions of jurisdiction and venue.The parties agree that either or both of them may file a copy of this Section with any court as written evidence of the knowing,voluntary and bargained Agreement between the parties irrevocably to waive any objections to venue or to convenience of forum.Legal process in any proceeding may be served on any party anywhere in the world. *Severability If any provision of this Agreement is held illegal or unenforceable in a judicial proceeding,such provision shall be severed and shall be inoperative,and the remainder of this Agreement shall remain operative and binding on the Parties. *Integration This Agreement supersedes all prior agreements between the parties with respect to its subject matter and constitutes (along with the documents referred to in this Agreement) a complete and exclusive statement of the terms of the agreement between the parties with respect to its subject matter. Page 2 93 Item 5. 7012 6th St. N. Oakdale MN 55128 (651) 738-9354 MRohrer@brucenelsonph.com Estimate ESTIMATE #1013913166 DATE PO # CUSTOMER William Roberts 4055 Northeast Central Avenue Columbia Heights, MN 55421 SERVICE LOCATION 4055 Northeast Central Avenue Columbia Heights, MN 55421 DESCRIPTION Provide necessary labor and material for gas piping installation of the following: 1 - Charbroiler 1 - Fryer 1 - Range 1 - Smoker 1 - Brew kettle Includes: Necessary roof blocks Dormont appliance quick disconnects Gas regulators Installation of customer supplied ansol valves Provide necessary permits and inspections Estimate Description Qty Rate Total Commercial Plumbing As Proposed Commercial Plumbing as Proposed 1.00 $10,675.00 $10,675.00 CUSTOMER MESSAGE Estimate Total:$10,675.00 94 Item 5. Payment Terms § 50% down payment with progress payments § Remainder due upon completion § Credit card or debit card payments will be subject to an additional 4% service fee Due to market volatility and fluctuating material prices, quotes are subject to change after 48 hours Exceptions/Terms & Conditions § All work to be performed is based on regular hour pricing, unless otherwise specified above. § General contractor/owner is responsible for all layout of work and must be completed prior to the start of the job. § General contractor/owner to provide reasonable access to work area and to minimize mobilizations and down time. § No soil corrections, i.e. dewatering, rock removal, frost removal, etc. § No floor cutting and/or patching. § No wall cutting and/or patching. § No roof patching. § No outside utilities or SAC & WAC fees. § No pipe insulation figured unless noted above. § Energy Codes are not figured in bid total. § Permit and inspection costs are not included in the bid total, unless otherwise specified above. § General contractor/owner is responsible for opening and patching of walls, ceilings, and floors, unless otherwise specified above. § Bruce Nelson Plumbing & Heating Service, Inc. is not responsible for the cutting of any lines that are located within the concrete or directly below it, i.e. power, phone, electrical, fuel, conduit, etc., and will not be held liable for repair of any such lines. All such lines should be sufficiently buried below grade. § No electrical work to be performed, unless otherwise specified above. § Any work outside the scope of work listed above will not be performed without a signed change order. § Any person or company supplying labor or materials for this improvement to your property may file a lien against your property if that person or company is not paid for their contributions. § You have the right to pay persons who supplied labor or materials for this improvement directly and deduct this amount from our contract price, or withhold the amounts due unless we give you a lien wavier signed by persons who supplied any labor or materials for the improvement, and who gave you a timely notice. § Materials and fixtures provided & installed by Bruce Nelson Plumbing & Heating Service carry a 1-year parts & labor warranty. § Bruce Nelson Plumbing & Heating Service recommends all fixtures and materials be supplied by us. This greatly increases our ability to resolve problems that can and do come up and to reduce extra costs. If additional work is required for owner provided fixtures/equipment, it considered a continuation of work and will be charged on a time and material basis. The purchaser or manufacture furnishes warranty. Thank You for allowing Bruce Nelson Plumbing and Heating Service, Inc. to submit this proposal and we look forward to working with you. 95 Item 5. 96 Item 5. 97 Item 5. 98 Item 5. 99 Item 5. 100 Item 5. 101 Item 5. 102 Item 5. 103 Item 5. 104 Item 5. 105 Item 5. 106 Item 5. FIRE SUPPRESION GRANT AGREEMENT THIS FIRE SUPPRESION GRANT AGREEMENT (“Agreement”), dated this _____ day of ______________, 2022 (the “Effective Date”), is entered into by and between Rail Werks Brewing Depot (the “Grantee”), and the Columbia Heights Economic Development Authority (the “EDA”). RECITALS WHEREAS, Grantee is the owner of certain Property located at 4055 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 has instituted a Fire Suppression Grant, Pilot Program (the “Program”) for the purpose of revitalizing existing commercial spaces, increasing business vitality, and bolstering public safety; WHEREAS, as part of the Program, the EDA has proposed to make grants of money in the maximum amount of $30,000 per parcel of real property, to property owners, tenants, or nonprofit organizations, in order to promote safety, attract new businesses, and revitalize commercial buildings 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. Fire Suppression Improvements: Grantee agrees to complete the fire suppression improvements at the Property that are identified on Exhibit B attached hereto (the “Improvements”), subject to the following terms and conditions: a. Grantee shall provide plans and specifications to the EDA, detailing the Improvements to be completed (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 thirty (30) 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 Costs.” The Improvements shall be completed in a first-class manner, consistent with the Plans, if any, and in compliance with all applicable laws, 107 Item 5. 2 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 signing of the Agreement, and to complete the Improvements within ten (10) months but may request a six (6) month extension provided there is demonstrated hardship. 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 Fifteen Thousand Dollars ($30,000). The written request shall include: a. Proof of all inspections of the Improvements by the City building inspector and fire department; b. Before and after photographs 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. e. A copy of all applicable permit(s). 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, 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. 108 Item 5. 3 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: Rail Werks Brewing Depot Attn: William Roberts 4055 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] 109 Item 5. 4 IN WITNESS WHEREOF, Grantee and the EDA have signed this Agreement as of the day and year first above written. GRANTEE: Rail Werks Brewing Depot By:____________________________ Name: _________________________ Its:____________________________ Date:__________________________ EDA: COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY By: Name: _________________________ Its:____________________________ Date:__________________________ 110 Item 5. 5 EXHIBIT A LEGAL DESCRIPTION OF PROPERTY UNIT 4055 IN: TAXABLE PORTION OF ALL THAT PRT OF BLK 4 RESERVOIR HILLS & VAC 41ST AVE DESC AS FOL; E 11 FT OF S 103.5 FT OF LOT 31 & S 103.5 FT OF LOTS 32 & 33, TOG/W ADJ VAC 41ST AVE & TOG/W 111 Item 5. 6 EXHIBIT B PROPERTY IMPROVEMENTS SUBJECT TO A 50% REIMBURSEMENT This attachment contains a summary of the project identified in the application for the Fire Suppression Grant Program. The Summary reflects the Grantee’s proposed project as approved by the EDA on March 6th, 2023 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: Alteration of the current fire sprinklers and installation of an ANSUL system $48,872.00 112 Item 5. FIRE SUPPRESSION GRANT, PILOT PROGRAM COMMUNITY DEVELOPMENT – FIRE SUPPRESSION GRANT, PILOT PROGRAM REVISED AS OF: 4/26/2022 PROGRAM OVERVIEW The Columbia Heights Economic Development Authority (the “EDA”) has created and now offers the Fire Suppression Grant, Pilot Program (the “Grant Program”). As part of the City’s Business Retention and Expansion Strategy, the EDA has identified the need to bolster public safety and improve the commercial stock within the city. Setting out to encourage the revitalization, rehabilitation, and restoration of older, underutilized commercial spaces within the City of Columbia Heights (the “City”). Many of the older commercial structures throughout the city lack basic fire suppression systems or infrastructure for said systems. As new businesses seek to develop in the city, they are limited by code requirements for the instillation of fire suppression systems. These improvements are very costly making it difficult for small business to enter and utilize many of the City’s older and smaller commercial spaces. The Fire Suppression Grant, Pilot Program seeks to assist businesses and property owners in partially alleviating the costs of installing fire suppression systems. This program, being initiated by the Community Development Department shall be a pilot program for the remainder of 2022 and 2023 The Grant Program reimburses businesses, tenants, or property owners for eligible improvements up to fifty percent (50%) of the total project cost; for a maximum reimbursement of $30,000. The applicant is reimbursed once the improvements are completed in accordance with program guidelines. The building or business owner must apply for, be approved for, and sign a grant agreement before doing the work in order to receive the grant. ELIGIBLE APPLICANTS • Applicants must be an owner or a tenant, with approval from the property owner(s), of a commercial or industrial property, or a 501(c)(3) organization in the City of Columbia Heights (the “City”) located along 37th Avenue NE, 37th Place NE, 40th Avenue NE, University Avenue NE, or Central Avenue NE between 37th and 53rd Avenue NE. • Applicants must be in good standing with the City, including but not limited to, legally operating with proper licensure; and current on property taxes, utility bills, and special assessments. • No new construction will be considered under this program. • The use of the building must be commercial or mixed-use ELIGIBLE IMPROVEMENTS Fire safety improvements must be completed by a licensed contractor and comply with all permitting and inspection requirements: 113 Item 5. PAGE 2 OF 3 • Design & Engineering costs directly associated to the fire sprinkler system installation • Construction and instillation of a fire line from the main water line to the building • Fire sprinkler system equipment/installation • Associated fire alarm systems/installation in conjunction to a fire sprinkler system Please note: Labor costs of a contractor, including necessary design work are eligible costs for reimbursement but cannot exceed 10% of the construction costs. Required Application Documents Required Application Materials: • A complete application sent to the attention of the Columbia Heights Economic Development Authority at following location: 590 40th Ave NE, Columbia Heights, MN 55421 • Proof of ownership or signed letter from the property owner acknowledging the scope of work and giving the renter permission to apply for the grant and to complete the proposed work. • A detailed scope of work • Electronic copy of drawings or designs • Submit 2 or more competitive proposals from licensed and bonded contractors. These proposals should give detailed information about the work to be done, the costs, and the project completion schedule. Any contractor that has submitted a competitive detailed estimate may be used. Contractors cannot be changed unless new proposals have been submitted and approved by the EDA. • Other supporting documents may be requested by staff or the EDA. APPLICATION PROCESS 1. Applications will be open and accepted until the initial allocation of funding is exhausted. 2. Upon the Receipt of a complete application Community Development staff will review the planned project with the building official and fire department prior to bringing it before the EDA. During the review staff may request more information or documents related to the project 3. After the EDA’s decision applicants will be notified via email correspondence. A Grant Agreement must be approved and signed before commencement of any improvements. 4. Once the Grant Agreement is executed the Recipient of the grant, may begin the project improvements, the Grantee is responsible for obtaining all necessary permits and inspections throughout the process. 5. The grant recipient or its contractor must commence the improvements sixty (60) days after an executed Grant Agreement. The project specified in the agreement must be completed within ten (10) months after the signing of the agreement. 6. Once the project is complete, the grant funds will be disbursed for reimbursement to the applicant after all the following pieces of information have been submitted: a. Proof of Final Inspection by the Building Official and fire department b. A Copy of the Final Invoice Received from the Contractor c. Before and After Photographs d. Proof of Payment to the Contractor (i.e. receipt, invoice, etc.) e. Copies of all applicable permits 114 Item 5. PAGE 3 OF 3 ADDITIONAL REQUIREMENTS • Grants will only be awarded for projects that lead to the installation of a complete fully functioning fire suppression system. Installation of a main line attachment without an immediate plan for the installation of a fire suppression system is also prohibited. • If costs exceed the original estimates or exceed the maximum of the program, the property owner or tenant will be responsible for the full amount of the excess. The EDA cannot reimburse more than the total amount specified in the Agreement. • Any work commenced prior to the signing of the GRANT Agreement will not be eligible for reimbursement funding. 115 Item 5. ECONOMIC DEVELOPMENT AUTHORITY AGENDA SECTION BUSINESS ITEMS MEETING DATE 3/1/2023 ITEM: Rail Werks Brewing Façade Improvement Grant Application DEPARTMENT: Community Development BY/DATE: Mitchell Forney, 3/1/23 BACKGROUND: This report is regarding the 2023 Façade improvement Grant application for Rail Werks Brewing Depot. Located at 4055 Central Ave NE, Rail Werks Brewing recently leased the property and is currently working on a complete buildout of one of the open spaces. Rail Werks is installing brewing equipment, a commercial kitchen, and building out its dining area. Rail Werks is applying to the Façade Grant Program to assist in the installation of a new sign. As we are continuing to see with other businesses, Rail Werks was only able to receive one bid for the exterior work. The bid came in at $9,200 and meets the requirements for a grant amount of $4,600. Community development staff recommend funding the project in full. The business owner is clearly investing in both the façade and interior of the building. The updates to the building will rehabilitate the space and bring a desired business to the City. RECOMMENDED MOTION(S): MOTION: Move to waive the reading of Resolution 2023-11 there being ample copies available to the public. MOTION: Move to adopt Resolution 2023-11, 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 Rail Werks Brewing Depot ATTACHMENT(S): 1. Resolution 2023-11 2. Sample Façade Improvement Grant Agreement 3. Rail Werks Brewing Application 116 Item 6. Resolution 2023-11 RESOLUTION NO. 2023-11 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 FAÇADE IMPROVEMENT GRANT AGREEMENT WITH RAIL WERKS BREWING DEPOT WHEREAS, the City of Columbia Heights (the “City”) and the Columbia Heights Economic Development Authority (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 Central Avenue Northeast, in the City’s Central Business district, pursuant to a Façade Improvement Grant Agreement with various property owners and/or tenants; and WHEREAS, pursuant to the Program, the City is to coordinate a surveillance camera monitoring program by placing surveillance cameras on some of the storefronts that are part of the Program for the purposes of improving public safety in and around the Central Business District; and WHEREAS, the Authority has thoroughly reviewed copies of the proposed form of the Grant Agreement. NOW, THEREFORE BE IT RESOLVED that, after appropriate examination and due consideration, the Authority 1. approves the form and substance of the grant agreement, and approves the Authority entering into the agreement with Rail Werks Brewing Depot 2. that the City Manager, 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. 3. that the City Manager, 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. ORDER OF ECONOMIC DEVELOPMENT AUTHORITY Adopted this 6th day of March, 2023 Offered by: Seconded by: Roll Call: President Attest: Secretary 117 Item 6. FAÇADE IMPROVEMENT GRANT AGREEMENT THIS FAÇADE IMPROVEMENT GRANT AGREEMENT (“Agreement”), dated this _____ day of ______________, 2023 (the “Effective Date”), is entered into by and between Rail Werks Brewing Depot (the “Grantee”), and the Columbia Heights Economic Development Authority (the “EDA”). RECITALS WHEREAS, Grantee is the tenant at certain Property located at 4055 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 Central Business District in the City (the “CBD”), increase business vitality and economic performance in the CBD, and in certain instances, to provide monitored surveillance within the CBD; 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 118 Item 6. 2 construction of the Improvements shall be defined as the “Improvement 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, 119 Item 6. 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: Rail Werks Brewing Depot Attn: William Roberts 4055 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] 120 Item 6. 4 IN WITNESS WHEREOF, Grantee and the EDA have signed this Agreement as of the day and year first above written. GRANTEE: Rail Werks Brewing Depot By:____________________________ Name: _________________________ Its:____________________________ Date:__________________________ EDA: COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY By: Name: _________________________ Its:____________________________ Date:__________________________ 121 Item 6. 5 EXHIBIT A LEGAL DESCRIPTION OF PROPERTY UNIT 4055 IN: TAXABLE PORTION OF ALL THAT PRT OF BLK 4 RESERVOIR HILLS & VAC 41ST AVE DESC AS FOL; E 11 FT OF S 103.5 FT OF LOT 31 & S 103.5 FT OF LOTS 32 & 33, TOG/W ADJ VAC 41ST AVE & TOG/W 122 Item 6. 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 March 6th, 2023 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: Build and install a new sign and logo $9,200 123 Item 6. 124 Item 6. 125 Item 6. SALES QUOTE 1475 North Star Sign Quality Signs Affordable Prices , Licensed-Bonded-Insured DATE FEBRUARY 28, 2023 732 Gannon Way Victoria, MN 55386 Phone 651.398.7152 North_star_sign@yahoo.com SOLD TO RAIL WERKS BREWING DEPOT 4055 CENTRAL AVE NE COLUMBIA HEIGHTS, MN SHIP TO SAME SALESPERSON JOB SHIPPING METHOD SHIPPING TERMS DELIVERY DATE PAYMENT TERMS DUE DATE SEAN NSS NC NA 50% DOWN BAL. COD NA ITEM # QTY DESCRIPTION UNIT PRICE DISCOUNT LINE TOTAL 1 1 ONE SET OF 24” L. E. D. LIT LETTERS ON RACEWAYS INSTALLED . LETTERS HAVE BLACK PERF. VINYL $7275.00 $7275.00 2 1 6’ X 5’ STEAM ENGINE LOGO PER ARTWORK PROVIDED. L. E. D. LIT. INSTALLED. $425.00 $425.22 3 1 24” DIAMETER DOUBLE SIDED PROJECTION SIGN . ARTWORK PROVIDED. L. E . D. LIT. INSTALLED. $1500.00 $1500.00 TOTAL DISCOUNT SUBTOTAL $9200.00 SALES TAX 0 $9200.00 MAKE CHECKS PAYABLE TO NORTH STAR SIGN THANK YOU FOR YOUR BUSINESS 126 Item 6. 127 Item 6.