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Home My WebLink About07-01-2024 EDA Packet ECONOMIC DEVELOPMENT AUTHORITY City Hall—Shared Vision Room, 3989 Central Ave NE Monday, July 01, 2024 5:00 PM AGENDA ATTENDANCE INFORMATION FOR THE PUBLIC Members of the public who wish to attend may do so in -person, or by using Microsoft Teams and entering meeting ID 241 904 269 20 and passcode QPW2Gy . For questions please call the Community Development Department at 763-706-3670. CALL TO ORDER/ROLL CALL PLEDGE OF ALLEGIANCE CONSENT AGENDA 1. Approve June 3rd, 2024, Regular EDA Meeting Minutes. 2. Approve the Financial Reports and Payment of the Bills for May 2024 MOTION: Move to approve the Consent Agenda as presented. BUSINESS ITEMS 3. Approval of Demolition Contract for 941 44th, 3851 Central Ave, and 3853 Central Ave MOTION: Move to accept the proposal from Nitti Rolloff Services, in the amount of $65,925 for the removal of burnt materials at 3853 Central, the demolition of all buildings and site improvements, the cutting and capping of all utilities at the property lines, and the regrading of the lots located at 941 44th Ave NE, 3851 Central Ave NE, and 3853 Central Ave NE; and furthermore, to authorize the President and Executive Director to enter into an agreement for the same. 4. Deconstruction of 4416 Central Ave NE MOTION: Move to accept the proposal from Better Futures Minnesota, in the amount of $_______ for deconstruction work on the property located at 4416 Central Ave NE; and furthermore, to authorize the President and Executive Director to enter into an agreement or agreements for the same. 5. Junk Removal from 4416 Central Ave NE 1 City of Columbia Heights AGENDA July 01, 2024 Economic Development Authority Page 2 MOTION: Move to accept Bauer Services bid of $3,999.22, for the removal of all junk and household items located at 4416 Central Ave NE; and furthermore, to authorize the President and Executive Director to enter into an agreement for the same. 6. Asbestos and Hazardous Material Abatement for the EDA Owned Property Located at 4416 Central Ave NE MOTION: Move to accept the bid of $2,500 by Dennis Environmental, for the removal of all hazardous materials located at 4416 Central Ave NE; and furthermore, to authorize the President and Executive Director to enter into an agreement for the same. 7. Façade Improvement Grant Report for Las Americas Ecuadorian Bakery located at 4355 Central Ave MOTION: Move to waive the reading of Resolution 2024-18, there being ample copies available to the public. MOTION: Move to adopt Resolution 2024-18, a resolution approving the form and substance of the façade improvement grant agreement, and approving authority staff an d officials to take all actions necessary to enter the authority into a façade improvement grant agreement with the owner of Las Americas Ecuadorian Bakery. 8. Home Improvement Loan Program Discussion BUSINESS UPDATES 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 City Hall—Shared Vision Room, 3989 Central Ave NE Monday, June 03, 2024 5:00 PM MINUTES ATTENDANCE INFORMATION FOR THE PUBLIC Members of the public who wish to attend may do so in -person, or by using Microsoft Teams and entering meeting ID 224 457 257 667 and passcode gVthwt . For questions please call the Community Development Department at 763-706-3670. The meeting was called to order at 5:00 pm by President Szurek. CALL TO ORDER/ROLL CALL Members present: Connie Buesgens; Kt Jacobs; Rachel James; Amada Márquez-Simula; Marlaine Szurek; Lamin Dibba Members absent: Justice Spriggs Staff Present: Mitchell Forney, Community Development Coordinator; Kevin Hansen, Interim City Manager; Sarah LaVoie, Administrative Assistant; Sara Ion, City Clerk; Tonja West-Hafner, Assistant Director of Community Government Relations at Anoka County, PLEDGE OF ALLEGIANCE CONSENT AGENDA 1. Approve May 6, 2024, Regular EDA Meeting Minutes 2. Approve Financial Reports and Payment of Bills of April 2024. Motion by Jacobs, seconded by Márquez-Simula, to approve the Consent Agenda as presented. All ayes of present. MOTION PASSED. RESOLUTION NO. 2024-16 A RESOLUTION OF THE ECONOMIC DEVELOPMENT AUTHORITY OF COLUMBIA HEIGHTS, MINNESOTA, APPROVING THE FINANCIAL STATEMENTS FOR THE MONTH OF APRIL 2024 AND THE PAYMENT OF THE BILLS FOR THE MONTH OF APRIL 2024. 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 3 Item 1. City of Columbia Heights MINUTES June 03, 2024 Economic Development Authority Page 2 receipts and disbursements, their nature, the money on hand, the purposes to which the money on hand is to be applied, the EDA's credits and assets and its outstanding liabilities; and WHEREAS, said Statute also requires the EDA to examine the statement and treasurer's vouchers or bills and if correct, to approve them by resolution and enter the resolution in its records; and WHEREAS, the financial statements for the month of April 2024 have been reviewed by the EDA Commission; and WHEREAS, the EDA has examined the financial statements and finds them to be acceptable as to bo th form and accuracy; and WHEREAS, the EDA Commission has other means to verify the intent of Section 469.096, Subd. 9, including but not limited to Comprehensive Annual Financial Reports, Annual City approved Budgets, Audits and similar documentation; and WHEREAS, financial statements are held by the City’s Finance Department in a method outlined by the State of Minnesota’s Records Retention Schedule, NOW, THEREFORE BE IT RESOLVED by the Board of Commissioners of the Columbia Heights Economic Development Authority that it has examined the referenced financial statements including the check history, and they are found to be correct, as to form and content; and BE IT FURTHER RESOLVED the financial statements are acknowledged and received and the check history as presented in writing is approved for payment out of proper funds; and BE IT FURTHER RESOLVED this resolution is made as part of the permanent records of the Columbia Heights Economic Development Authority. ORDER OF ECONOMIC DEVELOPMENT AUTHORITY Passed this 3rd day of June 2024 Offered by: KT Jacobs Seconded by: Amada Márquez-Simula Roll Call: All ayes of present. MOTION PASSED. President Attest: Secretary BUSINESS ITEMS 3. Anoka County Housing Study Presentation, Karen Skepper 4 Item 1. City of Columbia Heights MINUTES June 03, 2024 Economic Development Authority Page 3 Forney explained that Karen Skepper was unable to make the meeting but Assistant Director of Community Government Relations at Anoka County, Tonja West -Hafner would be replacing her to conduct the presentation. Ms. West-Hafner reviewed the Anoka County Housing Study. There is continued growth in Anoka County. The labor shortages remain. There is a tight rental market with a vacancy rate of 2.3%. There is a dramatic increase in for-sale home prices. Housing affordability continues to decrease in all markets but especially for low and moderate-income households. There is a demand for all types of housing through 2030 and a potential demand for 18,041 new housing units. Ms. West-Hafner explained that the Twin Cities Metro area continues to add households despite a downturn resulting from the Pandemic. The labor shortages continue in many industry segments and continue for in-person industries. Anoka County has experienced strong development of new rental housing product in the “suburban” communities. Production of rental units in more rural areas is a missing piece. There is a strong demand for affordable units across the country with very limited vacant units. The general occupancy demand is projected at 8,295 owner-occupied units and 4,509 rental units between 2023 and 2030. Ms. West-Hafner noted there is a senior housing demand. The market rate is 2,758 units (58%), 1,269 units (25%) are affordable and 666 (19%) units are subsidized. It is projected that by 2030 there will be 5,237 senior housing units to the general occupancy demand. Szurek asked if the senior housing numbers were for Columbia Heights. Ms. West-Hafner replied that it referred to the entire County of Anoka. Ms. West-Hafner stated that Anoka County is a job exporter. The ratio of employed residents to jobs is 0.58. Many residents commute from Anoka County to Hennepin or Ramsey County for higher-paying jobs. The Median household income in Anoka County is $90,027 but the average wage in 2022 was $64,212 for jobs in the County. While rents tend to be lower in Anoka County, new construction for 2 -bedroom rents exceeds $1,600 per month. Anoka County workers cannot afford the new construction rentals. Ms. West-Hafner mentioned that the Department of Housing and Urban Development has a general benchmark of 30% of a household’s adjusted gross rent to be affordable. In Anoka County, 42% of renters pay more than 30% of their income for rent, making them cost-burdened. 22% of renters pay more than 50% of their income for rent making them severely cost burdened. Renter households making less than $35,000 per year are 82% cost burdened with 60% severely cost burdened and are paying more than half of their income for rent. Ms. West-Hafner noted that 18% of all homeowners are cost-burdened and are paying more than 30% of their income for housing. 6% of homeowners are severely cost-burdened and are paying more than 50% of their income for housing. For homeowners earning less 5 Item 1. City of Columbia Heights MINUTES June 03, 2024 Economic Development Authority Page 4 than $50,000 per year, the numbers increase to 58% cost-burdened and 32% severely cost- burdened. The solution is either higher wages or affordable housing development. Ms. West-Hafner explained that there are currently 3,083 affordable units that are income- restricted in the County. There is a need for an additional 1,935 affordable or subsidized units to meet the 2030 demand. This would require 150 -200 units each year to be developed over the next decade. Public and private sector efforts are needed to meet this goal. The demand has increased for townhomes and small lot single-family development, but the availability of the project is limited. Developers are increasing the production of luxury townhomes/small lots. Ms. West-Hafner stated the Twin Cities median resale single-family home in 2023 was $416,870 which is up 46% since 2018. The time on the market continues to be days rather than months with multiple offers on entry-level housing which creates bidding wars. The Metro area's new construction single-family median price is $500,000. Ms. West-Hafner mentioned that the 2020 average Anoka County household size is 2.80 people. The County is expected to remain stable until 2030. Hennepin and Ramsey Counties will decrease through 2030. Young families will offset older households that are downsizing. Single-family housing development will attract slightly larger households. 70% of households in Anoka County are families. Ms. West-Hafner explained that 89% of Anoka County households did not move in 2021. 81% of the County households own their housing. Of the residents that moved, 5.4% moved from Anoka County but stayed in Minnesota and 4.1% of them moved to another Anoka County location. Younger residents moved more often with 20% of those aged 23 -34 moving within the last year compared to 5.2% of persons aged 75+. Ms. West-Hafner reviewed the employment growth trends. In 2000 Anoka County had 110,050 jobs. The number of jobs decreased to 106,387 between 2008 and 2011. However, in 2020 the job market recovered and rebounded to 113,111 jobs. A record number of unemployment claims were filed in the spring of 2020 due to the pandemic lockdown requiring non-essential workers to stay home while public venues including bars and restaurants were closed. Between 2020 and 2022, Anoka County is estimated to have bounced back with employment increasing by 15.1% over two years. By 2030, Anoka County is forecasted to have 137,890 jobs. 2040 is expected to have 147,220 jobs in the County. By comparison, the Twin Cities Metro jobs rebounded by 11.7% between 2020 and 2022 with continued strong growth through 2040. 75% of Anoka County jobs are located in Coon Rapids, Blaine, Fridley, Anoka and Ramsey. 66% of new job growth is anticipated to occur in those five cities. Ultra-low unemployment rates can be indicative of labor shortages putting pressure on wages. Ms. West-Hafner noted that the location of Columbia Heights has freeway access which drives up the demand for new housing. Redevelopment over the last decade in the City has produced results with increases in market-rate rental, active adult affordable senior, and other high-density rental products. To support entry-level and move-up housing, the City 6 Item 1. City of Columbia Heights MINUTES June 03, 2024 Economic Development Authority Page 5 should consider in-fill locations or redevelopment sites where a cluster of new units may be placed. In addition, the City should anticipate some replacement of older single -family homes. James asked Ms. West-Hafner to clarify what other high-density rental products meant and if it was a separate category from the market rate. Ms. West-Hafner replied that it was not a separate category but a mixture of different incomes. Ms. West-Hafner stated that the City has no vacant developed lots or future lots for single- family or owned multi-family homes. The demand for owned housing is limited by the availability of land. Redevelopment could accommodate some of the demand. High construction costs would need to be publicly assisted to achieve feasible sale prices. Ms. West-Hafner mentioned that there is a demand for 556 rental units by the end of 2030. In addition, there is a need for 250 market rates, 250 affordable, and 56 subsidized units to meet the demand by the end of 2040. Due to the proximity to jobs and the low vacancy rate in established rental developments, additional units could be added over the next few years to meet the demand. There is a demand for senior housing. The highest unmet need is for independent living and market-rate units with a-la-cart services. Szurek noted that she could see the City doing a survey to determine which homes in the City are in bad shape and then to see which homes the City would like to acquire. Forney added that the Council recently approved a Housing Trus t Fund for the EDA. There will be some programs that would qualify under that and would begin soon. Ms. West-Hafner explained that the information is simply a study and that the City is not required to do everything that is suggested. The study aims to create opportunities and educate the City. She added that the County will use the first round of funding to redevelop the Royce Place building. Szurek asked what the County was planning on doing with the building. Ms. West -Hafner replied that they would rehabilitate it into an apartment building. Hansen noted that the County just closed on the Royal Place building and asked if it would be about 24 months until the site was available. Ms. West-Hafner replied that it would be close to that. She added that the County does not want to be the long-term owners of the property and ideally would like to redevelop the rite and then hand it over to someone else. Dibba asked when the last time the housing study was conducted. Ms. West-Hafner replied that she was not sure but believed the County paid for a study ten years ago. She added that the City can conduct a study each year by having the City pay for it. 4. Deconstruction of 3851 Central Ave 7 Item 1. City of Columbia Heights MINUTES June 03, 2024 Economic Development Authority Page 6 Forney stated that Better Futures was able to get to the 3853 Central Avenue property before the Fire Department did the controlled burn on the property. Better Futures was able to get a lot of materials from the property and recycled many items as well. In a previous meeting, the EDA decided that the bid was too high. The high bid included the tearing down of the garage and removing the shed. The EDA directed Staff to find a lower bid. Staff were able to get the bid to $6,995. Szuerk asked if there would be another practice fire burn on another property. Forney replied that there would be but the largest hurdle is to have an Angstrom analytical come and test the burn site to make sure there are no hazardous materials. James mentioned that the bid was more reasonable and is in favor o f accepting the bid. Motion by James, seconded by Buesgens, to accept the proposal from Better Futures Minnesota, in the amount of $6,995 for deconstruction work on the property located at 3851 Central Ave NE; and furthermore, to authorize the President and Executive Director to enter into an agreement for the same. All ayes of present. MOTION PASSED. BUSINESS UPDATES Forney stated the demolition of additional properties will be before the EDA in July. Last Friday, the EDA closed on 4416 Central Avenue and will begin preparing the property for the Fire Department to do a training burn. As mentioned before, the County closed on the Royce Place building. The lot line will need to be adjusted in preparation for the building being redeveloped. He noted that Dibba brought up the Promise Act grant program during the last EDA meeting. Staff are going to work on notifying businesses about the Promise Act grant program. Forney mentioned that the Council passed the time of sale recently so the program is up and running. Staff met with an art studio that is looking to do retail and a nonprofit art studio that would allow people to create art and sell it on the site. Szurek asked if the art studio had picked a site yet. Forney replied that they had not yet. He encouraged the commissioners to notify Staff if they know of any building spaces that are available since there can be spaces that are under the radar within the City. Jacobs mentioned that she heard a rumor that the old events center was becoming a coffee shop and asked if that was true. Forney replied that he had not heard of that happening. ADJOURNMENT Motion by Jacobs, seconded by Márquez-Simula, to adjourn the meeting at 5:48 pm. All ayes. MOTION PASSED. 8 Item 1. City of Columbia Heights MINUTES June 03, 2024 Economic Development Authority Page 7 Respectfully submitted, _______________________________ Sarah LaVoie, Recording Secretary 9 Item 1. Resolution 2024-17 RESOLUTION NO. 2024-17 A RESOLUTION OF THE ECONOMIC DEVELOPMENT AUTHORITY OF COLUMBIA HEIGHTS, MINNESOTA, APPROVING THE FINANCIAL STATEMENTS FOR THE MONTH OF MAY 2024 AND THE PAYMENT OF THE BILLS FOR THE MONTH OF MAY 2024. WHEREAS, the Columbia Heights Economic Development Authority (the “EDA”) is required by Minnesota Statutes Section 469.096, Subd. 9, to prepare a detailed financial statement which shows all receipts and disbursements, their nature, the money on hand, the purposes to which the money on hand is to be applied, the EDA's credits and assets and its outstanding liabilities; and WHEREAS, said Statute also requires the EDA to examine the statement and treasurer's vouchers or bills and if correct, to approve them by resolution and enter the resolution in its records; and WHEREAS, the financial statements for the month of May 2024 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 as part of the permanent records of the Columbia Heights Economic Development Authority. ORDER OF ECONOMIC DEVELOPMENT AUTHORITY Passed this 1st day of July 2024 Offered by: Seconded by: Roll Call: President Attest: Secretary 10 Item 2. AmountInvoiceInvoice DateVendorInvoice Line DescGL Number INVOICE GL DISTRIBUTION REPORT FOR CITY OF COLUMBIA HEIGHTS 1/2Page:06/14/2024 11:14 AM User: suems DB: Columbia Heights EXP CHECK RUN DATES 05/01/2024 - 05/31/2024 BOTH JOURNALIZED AND UNJOURNALIZED PAID Check 1231 5,829.00 151804/19/24BETTER FUTURES MN3853 CENTRAL AVE DECONSTRUCTION 1ST HALF408.6414.43050 5,829.00 Total For Check 1231 Check 1267 2.99 301524 MENARDS03/15/24MENARDS CASHWAY LUMBER-FRIDLEYLOCK BRACKET-3851 CENTRAL204.6314.42171 2.99 Total For Check 1267 Check 198808 24.30 19984289704/15/24COMCAST041524 934571297 COMM DEV ADMIN (2.3%)204.6314.43250 24.30 Total For Check 198808 Check 198873 16.54 04012404/01/24ARVIG ENTERPRISES, INCCOMM DEV ADMIN (2.3%) INTERNET 0424204.6314.43250 16.54 Total For Check 198873 Check 198884 465.00 9677802/12/24EHLERS & ASSOCIATES INCTIF CONSULTING ALATUS393.7000.43050 465.00 Total For Check 198884 Check 198893 47,127.50 04302404/30/24H M PROPERTIES LLCFIRE SUPPRESION GRANT408.6418.44600 47,127.50 Total For Check 198893 Check 198933 16.54 05012405/01/24ARVIG ENTERPRISES, INCCOMM DEV ADMIN (2.3%) INTERNET 0524204.6314.43250 16.54 Total For Check 198933 Check 198989 12.42 99283144404/30/24POPP.COM INC043024 -10010429 COM DEV ADMINISTRATION204.6314.43210 18.26 99283036004/26/24POPP.COM INC042624 10013121 PHONE COMMDEV ADMIN204.6314.43210 30.68 Total For Check 198989 Check 199068 733.21 110564815905/09/24XCEL ENERGY (N S P)ELECTRIC228.6317.43810 733.21 Total For Check 199068 Check 199072 395.00 664405/21/24ANGSTROM ANALYTICAL INCBURNT MATERIALS TESTING 3853 CENTRAL AVE408.6414.43050 395.00 Total For Check 199072 Check 199076 1,395.00 28230104/30/24BARNA GUZY & STEFFEN LTDLOCAL HOUSING TRUST FUND 46000-200204.6314.43045 1,395.00 Total For Check 199076 Check 199131 1,769.93 600071973004/24/24TK ELEVATOR CORPORATIONELEVATOR CAMERA INSTALLATION228.6317.44000 1,769.93 Total For Check 199131 11 Item 2. AmountInvoiceInvoice DateVendorInvoice Line DescGL Number INVOICE GL DISTRIBUTION REPORT FOR CITY OF COLUMBIA HEIGHTS 2/2Page:06/14/2024 11:14 AM User: suems DB: Columbia Heights EXP CHECK RUN DATES 05/01/2024 - 05/31/2024 BOTH JOURNALIZED AND UNJOURNALIZED PAID 1,486.05 Fund 204 EDA ADMINISTRATION 2,503.14 Fund 228 DOWNTOWN PARKING 465.00 Fund 393 TIF BB6 ALATUS 4300 CENTRAL 53,351.50 Fund 408 EDA REDEVELOPMENT PROJECT FD Fund Totals: 47,127.50 FIRE SUPPRESION GRANT408.6418.44600 6,224.00 BURNT MATERIALS TESTING 3853 CENTRAL AVE408.6414.43050 465.00 TIF CONSULTING ALATUS393.7000.43050 1,769.93 ELEVATOR CAMERA INSTALLATION228.6317.44000 733.21 ELECTRIC228.6317.43810 57.38 COMM DEV ADMIN (2.3%) INTERNET 0424204.6314.43250 30.68 043024 -10010429 COM DEV ADMINISTRATION204.6314.43210 1,395.00 LOCAL HOUSING TRUST FUND 46000-200204.6314.43045 2.99 LOCK BRACKET-3851 CENTRAL204.6314.42171 --- TOTALS BY GL DISTRIBUTION --- 57,805.69 Total For All Funds: 12 Item 2. REVENUE AND EXPENDITURE REPORT FOR CITY OF COLUMBIA HEIGHTS 1/9Page:06/14/2024 11:13 AM User: suems DB: Columbia Heights PERIOD ENDING 05/31/2024 % BDGT USED UNENCUMBERED BALANCE YTD BALANCE 05/31/2024 ACTIVITY FOR MONTH 05/31/24 ENCUMBERED YEAR-TO-DATE 2024 AMENDED BUDGETDESCRIPTIONGL NUMBER Fund 202 - ANOKA CO COMM DEV PROGRAMS Expenditures Dept 6355 - ANOKA CO HRA LEVY PROJECTS OTHER SERVICES & CHARGES 100.00 (1,231.00)1,231.00 0.00 0.00 0.00 EXPERT & PROFESSIONAL SERV.202.6355.43050 100.00 (1,231.00)1,231.00 0.00 0.00 0.00 OTHER SERVICES & CHARGES 100.00 (1,231.00)1,231.00 0.00 0.00 0.00 Total Dept 6355 - ANOKA CO HRA LEVY PROJECTS 100.00 (1,231.00)1,231.00 0.00 0.00 0.00 TOTAL EXPENDITURES 100.00 1,231.00 (1,231.00)0.00 0.00 0.00 NET OF REVENUES & EXPENDITURES 100.00 (1,231.00)1,231.00 0.00 0.00 0.00 TOTAL EXPENDITURES 0.00 0.00 0.00 0.00 0.00 0.00 TOTAL REVENUES Fund 202 - ANOKA CO COMM DEV PROGRAMS: 13 Item 2. REVENUE AND EXPENDITURE REPORT FOR CITY OF COLUMBIA HEIGHTS 2/9Page:06/14/2024 11:13 AM User: suems DB: Columbia Heights PERIOD ENDING 05/31/2024 % BDGT USED UNENCUMBERED BALANCE YTD BALANCE 05/31/2024 ACTIVITY FOR MONTH 05/31/24 ENCUMBERED YEAR-TO-DATE 2024 AMENDED BUDGETDESCRIPTIONGL NUMBER Fund 204 - EDA ADMINISTRATION Revenues Dept 0000 - NON-DEPARTMENTAL TAXES 0.66 218,556.90 1,443.10 0.00 0.00 220,000.00 EDA CURRENT AD VALOREM204.0000.31011 (0.12)90,110.75 (110.75)0.00 0.00 90,000.00 AREA WIDE TAX204.0000.31014 100.00 3,870.85 (3,870.85)0.00 0.00 0.00 DELNQ. AD VALOREM204.0000.31020 100.00 112.86 (112.86)0.00 0.00 0.00 PENALTIES & INTEREST204.0000.31910 (0.86)312,651.36 (2,651.36)0.00 0.00 310,000.00 TAXES CHARGES FOR SERVICES 100.00 (30.00)30.00 0.00 0.00 0.00 ADMINISTRATIVE FEES204.0000.34112 100.00 (30.00)30.00 0.00 0.00 0.00 CHARGES FOR SERVICES MISCELLANEOUS 0.00 3,700.00 0.00 0.00 0.00 3,700.00 INTEREST ON INVESTMENTS204.0000.36210 0.00 3,700.00 0.00 0.00 0.00 3,700.00 MISCELLANEOUS (0.84)316,321.36 (2,621.36)0.00 0.00 313,700.00 Total Dept 0000 - NON-DEPARTMENTAL (0.84)316,321.36 (2,621.36)0.00 0.00 313,700.00 TOTAL REVENUES Expenditures Dept 6314 - ECONOMIC DEVELOPMENT AUTH OTHER SERVICES & CHARGES 100.00 (1,938.00)1,938.00 1,395.00 0.00 0.00 ATTORNEY FEES-OTHER204.6314.43045 179.98 (1,999.50)2,189.50 748.25 2,310.00 2,500.00 EXPERT & PROFESSIONAL SERV.204.6314.43050 23.33 2,300.00 700.00 0.00 0.00 3,000.00 TRAINING & EDUCATION ACTIVITIES204.6314.43105 71.16 201.89 498.11 18.25 0.00 700.00 TELEPHONE204.6314.43210 40.49 297.56 202.44 0.00 0.00 500.00 POSTAGE204.6314.43220 45.10 219.62 180.38 40.84 0.00 400.00 OTHER TELECOMMUNICATIONS204.6314.43250 0.00 200.00 0.00 0.00 0.00 200.00 LOCAL TRAVEL EXPENSE204.6314.43310 0.00 1,500.00 0.00 0.00 0.00 1,500.00 OUT OF TOWN TRAVEL EXPENSE204.6314.43320 0.00 200.00 0.00 0.00 0.00 200.00 LEGAL NOTICE PUBLISHING204.6314.43500 41.67 1,866.65 1,333.35 266.67 0.00 3,200.00 PROP & LIAB INSURANCE204.6314.43600 0.00 500.00 0.00 0.00 0.00 500.00 REPAIR & MAINT. SERVICES204.6314.44000 97.20 30.80 1,069.20 0.00 0.00 1,100.00 SOFTWARE & SOFTWARE SUBSCRIPTIONS204.6314.44030 41.67 5,308.35 3,791.65 758.33 0.00 9,100.00 INFORMATION SYS:INTERNAL SVC204.6314.44040 0.00 500.00 0.00 0.00 0.00 500.00 SUBSCRIPTION, MEMBERSHIP204.6314.44330 0.00 700.00 0.00 0.00 0.00 700.00 COMMISSION & BOARDS204.6314.44380 100.00 (385.00)385.00 0.00 0.00 0.00 LOANS & GRANTS204.6314.44600 60.57 9,502.37 12,287.63 3,227.34 2,310.00 24,100.00 OTHER SERVICES & CHARGES PERSONNEL SERVICES 42.93 116,318.13 87,481.87 24,506.08 0.00 203,800.00 REGULAR EMPLOYEES204.6314.41010 44.63 8,470.96 6,829.04 1,837.96 0.00 15,300.00 P.E.R.A. CONTRIBUTION204.6314.41210 46.45 8,460.40 7,339.60 2,004.07 0.00 15,800.00 F.I.C.A. CONTRIBUTION204.6314.41220 45.40 12,775.82 10,624.18 2,126.93 0.00 23,400.00 INSURANCE204.6314.41300 36.16 1,021.46 578.54 91.83 0.00 1,600.00 WORKERS COMP INSURANCE PREM204.6314.41510 43.42 147,046.77 112,853.23 30,566.87 0.00 259,900.00 PERSONNEL SERVICES 14 Item 2. REVENUE AND EXPENDITURE REPORT FOR CITY OF COLUMBIA HEIGHTS 3/9Page:06/14/2024 11:13 AM User: suems DB: Columbia Heights PERIOD ENDING 05/31/2024 % BDGT USED UNENCUMBERED BALANCE YTD BALANCE 05/31/2024 ACTIVITY FOR MONTH 05/31/24 ENCUMBERED YEAR-TO-DATE 2024 AMENDED BUDGETDESCRIPTIONGL NUMBER Fund 204 - EDA ADMINISTRATION Expenditures SUPPLIES 33.09 133.82 66.18 0.00 0.00 200.00 OFFICE SUPPLIES204.6314.42000 0.00 200.00 0.00 0.00 0.00 200.00 MINOR EQUIPMENT204.6314.42010 18.85 162.31 37.69 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 12.98 696.13 103.87 0.00 0.00 800.00 SUPPLIES CONTINGENCIES & TRANSFERS 41.67 16,858.35 12,041.65 2,408.33 0.00 28,900.00 OPER. TRANSFER OUT - LABOR204.6314.47100 41.67 16,858.35 12,041.65 2,408.33 0.00 28,900.00 CONTINGENCIES & TRANSFERS 44.50 174,103.62 137,286.38 36,202.54 2,310.00 313,700.00 Total Dept 6314 - ECONOMIC DEVELOPMENT AUTH 44.50 174,103.62 137,286.38 36,202.54 2,310.00 313,700.00 TOTAL EXPENDITURES 100.00 142,217.74 (139,907.74)(36,202.54)(2,310.00)0.00 NET OF REVENUES & EXPENDITURES 44.50 174,103.62 137,286.38 36,202.54 2,310.00 313,700.00 TOTAL EXPENDITURES 0.84 316,321.36 (2,621.36)0.00 0.00 313,700.00 TOTAL REVENUES Fund 204 - EDA ADMINISTRATION: 15 Item 2. REVENUE AND EXPENDITURE REPORT FOR CITY OF COLUMBIA HEIGHTS 4/9Page:06/14/2024 11:13 AM User: suems DB: Columbia Heights PERIOD ENDING 05/31/2024 % BDGT USED UNENCUMBERED BALANCE YTD BALANCE 05/31/2024 ACTIVITY FOR MONTH 05/31/24 ENCUMBERED YEAR-TO-DATE 2024 AMENDED BUDGETDESCRIPTIONGL NUMBER Fund 228 - DOWNTOWN PARKING Revenues Dept 0000 - NON-DEPARTMENTAL TRANSFERS & NON-REV RECEIPTS 0.00 56,600.00 0.00 0.00 0.00 56,600.00 TRANSFER IN-SPECIAL PROJ REV228.0000.39247 0.00 56,600.00 0.00 0.00 0.00 56,600.00 TRANSFERS & NON-REV RECEIPTS 0.00 56,600.00 0.00 0.00 0.00 56,600.00 Total Dept 0000 - NON-DEPARTMENTAL 0.00 56,600.00 0.00 0.00 0.00 56,600.00 TOTAL REVENUES Expenditures Dept 6317 - DOWNTOWN PARKING OTHER SERVICES & CHARGES 41.67 1,808.35 1,291.65 258.33 0.00 3,100.00 PROP & LIAB INSURANCE228.6317.43600 36.02 1,279.60 720.40 0.00 0.00 2,000.00 UTILITY SERVICES228.6317.43800 31.89 8,854.00 4,146.00 733.21 0.00 13,000.00 ELECTRIC228.6317.43810 18.82 28,411.77 5,973.93 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 23.13 42,353.72 12,131.98 991.54 614.30 55,100.00 OTHER SERVICES & CHARGES 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 22.52 43,853.72 12,131.98 991.54 614.30 56,600.00 Total Dept 6317 - DOWNTOWN PARKING 22.52 43,853.72 12,131.98 991.54 614.30 56,600.00 TOTAL EXPENDITURES 100.00 12,746.28 (12,131.98)(991.54)(614.30)0.00 NET OF REVENUES & EXPENDITURES 22.52 43,853.72 12,131.98 991.54 614.30 56,600.00 TOTAL EXPENDITURES 0.00 56,600.00 0.00 0.00 0.00 56,600.00 TOTAL REVENUES Fund 228 - DOWNTOWN PARKING: 16 Item 2. REVENUE AND EXPENDITURE REPORT FOR CITY OF COLUMBIA HEIGHTS 5/9Page:06/14/2024 11:13 AM User: suems DB: Columbia Heights PERIOD ENDING 05/31/2024 % BDGT USED UNENCUMBERED BALANCE YTD BALANCE 05/31/2024 ACTIVITY FOR MONTH 05/31/24 ENCUMBERED YEAR-TO-DATE 2024 AMENDED BUDGETDESCRIPTIONGL NUMBER Fund 372 - HUSET PARK AREA TIF (T6) Revenues Dept 0000 - NON-DEPARTMENTAL TAXES 1.70 835,571.22 14,428.78 0.00 0.00 850,000.00 CURRENT AD VALOREM372.0000.31010 100.00 (281,513.10)281,513.10 0.00 0.00 0.00 DELNQ. AD VALOREM372.0000.31020 34.82 554,058.12 295,941.88 0.00 0.00 850,000.00 TAXES MISCELLANEOUS 0.00 5,000.00 0.00 0.00 0.00 5,000.00 INTEREST ON INVESTMENTS372.0000.36210 0.00 5,000.00 0.00 0.00 0.00 5,000.00 MISCELLANEOUS 34.61 559,058.12 295,941.88 0.00 0.00 855,000.00 Total Dept 0000 - NON-DEPARTMENTAL 34.61 559,058.12 295,941.88 0.00 0.00 855,000.00 TOTAL REVENUES Expenditures Dept 7000 - BONDS OTHER SERVICES & CHARGES 0.00 550,000.00 0.00 0.00 0.00 550,000.00 LOANS & GRANTS372.7000.44600 0.00 550,000.00 0.00 0.00 0.00 550,000.00 OTHER SERVICES & CHARGES CAPITAL OUTLAY 100.00 0.00 140,000.00 0.00 0.00 140,000.00 PRINCIPAL372.7000.46010 52.09 24,050.00 26,150.00 0.00 0.00 50,200.00 INTEREST372.7000.46110 67.93 481.00 575.00 0.00 444.00 1,500.00 FISCAL AGENT CHARGES372.7000.46200 0.00 1,000.00 0.00 0.00 0.00 1,000.00 MISCELLANEOUS FISCAL CHARGES372.7000.46210 86.75 25,531.00 166,725.00 0.00 444.00 192,700.00 CAPITAL OUTLAY 22.51 575,531.00 166,725.00 0.00 444.00 742,700.00 Total Dept 7000 - BONDS 22.51 575,531.00 166,725.00 0.00 444.00 742,700.00 TOTAL EXPENDITURES 114.67 (16,472.88)129,216.88 0.00 (444.00)112,300.00 NET OF REVENUES & EXPENDITURES 22.51 575,531.00 166,725.00 0.00 444.00 742,700.00 TOTAL EXPENDITURES 34.61 559,058.12 295,941.88 0.00 0.00 855,000.00 TOTAL REVENUES Fund 372 - HUSET PARK AREA TIF (T6): 17 Item 2. REVENUE AND EXPENDITURE REPORT FOR CITY OF COLUMBIA HEIGHTS 6/9Page:06/14/2024 11:13 AM User: suems DB: Columbia Heights PERIOD ENDING 05/31/2024 % BDGT USED UNENCUMBERED BALANCE YTD BALANCE 05/31/2024 ACTIVITY FOR MONTH 05/31/24 ENCUMBERED YEAR-TO-DATE 2024 AMENDED BUDGETDESCRIPTIONGL NUMBER Fund 392 - TIF BB2 ALATUS 40TH AV Expenditures Dept 7000 - BONDS OTHER SERVICES & CHARGES 100.00 (500.00)500.00 0.00 0.00 0.00 EXPERT & PROFESSIONAL SERV.392.7000.43050 100.00 (500.00)500.00 0.00 0.00 0.00 OTHER SERVICES & CHARGES CAPITAL OUTLAY 0.00 (176.00)0.00 0.00 176.00 0.00 FISCAL AGENT CHARGES392.7000.46200 0.00 (176.00)0.00 0.00 176.00 0.00 CAPITAL OUTLAY 100.00 (676.00)500.00 0.00 176.00 0.00 Total Dept 7000 - BONDS 100.00 (676.00)500.00 0.00 176.00 0.00 TOTAL EXPENDITURES 100.00 676.00 (500.00)0.00 (176.00)0.00 NET OF REVENUES & EXPENDITURES 100.00 (676.00)500.00 0.00 176.00 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: 18 Item 2. REVENUE AND EXPENDITURE REPORT FOR CITY OF COLUMBIA HEIGHTS 7/9Page:06/14/2024 11:13 AM User: suems DB: Columbia Heights PERIOD ENDING 05/31/2024 % BDGT USED UNENCUMBERED BALANCE YTD BALANCE 05/31/2024 ACTIVITY FOR MONTH 05/31/24 ENCUMBERED YEAR-TO-DATE 2024 AMENDED BUDGETDESCRIPTIONGL NUMBER Fund 393 - TIF BB6 ALATUS 4300 CENTRAL Revenues Dept 0000 - NON-DEPARTMENTAL MISCELLANEOUS 0.00 63,700.00 0.00 0.00 0.00 63,700.00 LOAN INTEREST393.0000.36216 0.00 63,700.00 0.00 0.00 0.00 63,700.00 MISCELLANEOUS TRANSFERS & NON-REV RECEIPTS 0.00 5,885,000.00 0.00 0.00 0.00 5,885,000.00 BOND PROCEEDS393.0000.39310 0.00 5,885,000.00 0.00 0.00 0.00 5,885,000.00 TRANSFERS & NON-REV RECEIPTS 0.00 5,948,700.00 0.00 0.00 0.00 5,948,700.00 Total Dept 0000 - NON-DEPARTMENTAL 0.00 5,948,700.00 0.00 0.00 0.00 5,948,700.00 TOTAL REVENUES Expenditures Dept 7000 - BONDS OTHER SERVICES & CHARGES 100.00 (465.00)465.00 0.00 0.00 0.00 EXPERT & PROFESSIONAL SERV.393.7000.43050 100.00 (465.00)465.00 0.00 0.00 0.00 OTHER SERVICES & CHARGES CAPITAL OUTLAY 0.00 5,935,000.00 0.00 0.00 0.00 5,935,000.00 PRINCIPAL393.7000.46010 0.00 13,400.00 0.00 0.00 0.00 13,400.00 INTEREST393.7000.46110 100.00 (1,000.00)1,000.00 0.00 0.00 0.00 MISCELLANEOUS FISCAL CHARGES393.7000.46210 0.02 5,947,400.00 1,000.00 0.00 0.00 5,948,400.00 CAPITAL OUTLAY 0.02 5,946,935.00 1,465.00 0.00 0.00 5,948,400.00 Total Dept 7000 - BONDS 0.02 5,946,935.00 1,465.00 0.00 0.00 5,948,400.00 TOTAL EXPENDITURES 488.33 1,765.00 (1,465.00)0.00 0.00 300.00 NET OF REVENUES & EXPENDITURES 0.02 5,946,935.00 1,465.00 0.00 0.00 5,948,400.00 TOTAL EXPENDITURES 0.00 5,948,700.00 0.00 0.00 0.00 5,948,700.00 TOTAL REVENUES Fund 393 - TIF BB6 ALATUS 4300 CENTRAL: 19 Item 2. REVENUE AND EXPENDITURE REPORT FOR CITY OF COLUMBIA HEIGHTS 8/9Page:06/14/2024 11:13 AM User: suems DB: Columbia Heights PERIOD ENDING 05/31/2024 % BDGT USED UNENCUMBERED BALANCE YTD BALANCE 05/31/2024 ACTIVITY FOR MONTH 05/31/24 ENCUMBERED YEAR-TO-DATE 2024 AMENDED BUDGETDESCRIPTIONGL NUMBER Fund 408 - EDA REDEVELOPMENT PROJECT FD Revenues Dept 0000 - NON-DEPARTMENTAL TAXES 2.16 229,920.82 5,079.18 0.00 0.00 235,000.00 HRA CURRENT AD VALOREM408.0000.31012 (0.47)75,353.25 (353.25)0.00 0.00 75,000.00 AREA WIDE TAX408.0000.31014 100.00 4,613.07 (4,613.07)0.00 0.00 0.00 DELNQ. AD VALOREM408.0000.31020 0.04 309,887.14 112.86 0.00 0.00 310,000.00 TAXES 0.04 309,887.14 112.86 0.00 0.00 310,000.00 Total Dept 0000 - NON-DEPARTMENTAL 0.04 309,887.14 112.86 0.00 0.00 310,000.00 TOTAL REVENUES Expenditures Dept 6314 - ECONOMIC DEVELOPMENT AUTH OTHER SERVICES & CHARGES 100.00 (219.00)219.00 0.00 0.00 0.00 EXPERT & PROFESSIONAL SERV.408.6314.43050 100.00 (298.89)298.89 0.00 0.00 0.00 MISC. CHARGES408.6314.44300 100.00 (4,600.00)4,600.00 0.00 0.00 0.00 LOANS & GRANTS408.6314.44600 100.00 (5,117.89)5,117.89 0.00 0.00 0.00 OTHER SERVICES & CHARGES CAPITAL OUTLAY 100.00 (15,000.00)15,000.00 0.00 0.00 0.00 LAND408.6314.45110 100.00 (15,000.00)15,000.00 0.00 0.00 0.00 CAPITAL OUTLAY 100.00 (20,117.89)20,117.89 0.00 0.00 0.00 Total Dept 6314 - ECONOMIC DEVELOPMENT AUTH Dept 6414 - COMMERCIAL REVITALIZATION OTHER SERVICES & CHARGES 100.00 (79,630.00)79,630.00 395.00 0.00 0.00 EXPERT & PROFESSIONAL SERV.408.6414.43050 100.00 (495.21)495.21 0.00 0.00 0.00 REPAIR & MAINT. SERVICES408.6414.44000 100.00 (53.24)53.24 0.00 0.00 0.00 TAXES & LICENSES408.6414.44390 0.00 100,000.00 0.00 0.00 0.00 100,000.00 LOANS & GRANTS408.6414.44600 80.18 19,821.55 80,178.45 395.00 0.00 100,000.00 OTHER SERVICES & CHARGES CAPITAL OUTLAY 107.87 (16,519.55)226,519.55 226,519.55 0.00 210,000.00 LAND408.6414.45110 107.87 (16,519.55)226,519.55 226,519.55 0.00 210,000.00 CAPITAL OUTLAY 98.93 3,302.00 306,698.00 226,914.55 0.00 310,000.00 Total Dept 6414 - COMMERCIAL REVITALIZATION Dept 6418 - FIRE SUPPRESSION GRANT OTHER SERVICES & CHARGES 100.00 (50,000.00)47,127.50 0.00 2,872.50 0.00 LOANS & GRANTS408.6418.44600 100.00 (50,000.00)47,127.50 0.00 2,872.50 0.00 OTHER SERVICES & CHARGES 20 Item 2. REVENUE AND EXPENDITURE REPORT FOR CITY OF COLUMBIA HEIGHTS 9/9Page:06/14/2024 11:13 AM User: suems DB: Columbia Heights PERIOD ENDING 05/31/2024 % BDGT USED UNENCUMBERED BALANCE YTD BALANCE 05/31/2024 ACTIVITY FOR MONTH 05/31/24 ENCUMBERED YEAR-TO-DATE 2024 AMENDED BUDGETDESCRIPTIONGL NUMBER Fund 408 - EDA REDEVELOPMENT PROJECT FD Expenditures 100.00 (50,000.00)47,127.50 0.00 2,872.50 0.00 Total Dept 6418 - FIRE SUPPRESSION GRANT 121.55 (66,815.89)373,943.39 226,914.55 2,872.50 310,000.00 TOTAL EXPENDITURES 100.00 376,703.03 (373,830.53)(226,914.55)(2,872.50)0.00 NET OF REVENUES & EXPENDITURES 121.55 (66,815.89)373,943.39 226,914.55 2,872.50 310,000.00 TOTAL EXPENDITURES 0.04 309,887.14 112.86 0.00 0.00 310,000.00 TOTAL REVENUES Fund 408 - EDA REDEVELOPMENT PROJECT FD: 360.80 518,866.17 (399,849.37)(264,108.63)(6,416.80)112,600.00 NET OF REVENUES & EXPENDITURES 9.49 6,671,700.45 693,282.75 264,108.63 6,416.80 7,371,400.00 TOTAL EXPENDITURES - ALL FUNDS 3.92 7,190,566.62 293,433.38 0.00 0.00 7,484,000.00 TOTAL REVENUES - ALL FUNDS 21 Item 2. ECONOMIC DEVELOPMENT AUTHORITY AGENDA SECTION BUSINESS ITEMS MEETING DATE 07/01/2024 ITEM: Approval of Demolition Contract for 941 44th, 3851 Central Ave, and 3853 Central Ave DEPARTMENT: Community Development BY/DATE: Mitchell Forney, 6-25-24 BACKGROUND: Earlier this year, the EDA purchased the properties located at 941 44th Ave, 3851 Central Ave NE, and 3853 Central Ave NE to hold them for redevelopment. 3851 and 3853 Central Ave NE are being held in combination with 3841 Central Ave to create what is shaping up to be a significant redevelopment opportunity. Other than one house separating these properties the EDA owns .47 acres of land across the three properties. 941 44th Ave NE, was more of a strategic acquisition which will be held for a longer period. Throughout the summer, the Columbia Heights Fire Department was able to utilize both structures for a variety of training , ultimately burning down 3851 Central Ave NE in a training burn on May 6th, 2024. The next step in the redevelopment of these properties is to demolish the remaining structures on all properties. Staff prepared bid sheets and submitted bid requests to several contractors and received six bids. To make the project easier to bid on, the EDA had taken on the environmental testing and removal of all personal items and hazardous materials from the buildings. As part of the demolition bid , the contractor is responsible for the removal of all outbuildings and site improvements to the properties. This also includes the removal and capping of the water and sewer lines at the property line to prepare the sites for redevelopment. Below is a chart outlining the bids and bid amounts received. S taff recommend awarding the project to the low bidder Nitti Rolloff Services for $65,925. Company Name Bid Amount Rick’s Demolition and Concrete Removal $91,500 All State Companies Inc $68,000 Kamish Excavating Inc $133,230 Scherber Co $106,437 Nitti Rolloff Services $65,925 Semple Excavating $104,740 RECOMMENDED MOTION(S): MOTION: Move to accept the proposal from Nitti Rolloff Services, in the amount of $65,925 for the removal of burnt materials at 3853 Central, the demolition of all buildings and site improvements, the cutting and capping of all utilities at the property lines, and the regrading of the lots located at 941 44th Ave NE, 3851 Central Ave NE, and 3853 Central Ave NE; and furthermore, to authorize the President and Executive Director to enter into an agreement for the same. ATTACHMENT(S): 1. Sample Agreement 2. Rick’s Demolition and Concrete Removal Bid 22 Item 3. Page 2 3. All State Companies Inc Bid 4. Kamish Excavating Inc Bid 5. Scherber Co Bid 6. Nitti Rolloff Services Bid 7. Semple Excavating Bid 8. Bid Specs 23 Item 3. 1 EDA IN AND FOR THE CITY OF COLUMBIA HEIGHTS CONTRACT FOR THE UTILITY DISCONECTION, DEMOLITION OF SITE IMPROVEMENTS, AND SITE GRADING AT 941 44TH AVE NE, 3851 CENTRAL AVE NE, AND 3853 CENTRAL AVE NE For valuable consideration as set forth below, this Contract dated the ____ day of ______, 2024, is made and entered into between the Economic Development Authority in and for the City of Columbia Heights, a public body corporate and politic created pursuant to the laws of the State of Minnesota ("EDA") and Nitti Rolloff Services, a Minnesota corporation ("Contractor"). 1. CONTRACT DOCUMENTS Contractor hereby promises and agrees to perform and comply with all the provisions of this Contract pursuant to the specifications for demolition, water/sewer line capping, and site grading attached hereto as Exhibit A for the residential properties located at 941 44th Ave NE, 3851 Central Ave NE, and 3853 Central Ave NE, Columbia Heights, Minnesota (“Properties”). The Contract including specifications in Exhibit A shall comprise the total agreement of the parties hereto. No oral order, objection, or claim by any party to the other shall affect or modify any of the terms or obligations contained in this Contract. 2. THE WORK The work to be performed by Contractor under this Contract (hereinafter the "Work"), is defined in the Proposal as the removal of burnt materials at 3853 Central, the demolition of all buildings and site improvements, the cutting and capping of all utilities at the property lines, and the regrading of the primary excavation areas at all three locations. As part of the Work, Contractor agrees to remove all excess material from the Properties. 3. CONTRACT PRICE The EDA agrees to pay Contractor the sum of $65,925 in exchange for the Contractor furnishing labor and materials for the Work at the Properties, payable within 30 days of Contractor’s completion of the Work. Contractor may start work on this project upon its execution of this Contract and providing proof of insurance pursuant to paragraph 5. 4. COMPLETION DATE/LIQUIDATED DAMAGES Contractor shall complete all Work on or before August 30th 2024 ("Completion Date"). Due to the difficulty in ascertaining and establishing the actual damages which the EDA or City would sustain, liquidated damages are specified as follows for failure of Contractor to complete his performance under this Contract by the Completion Date: for every calendar day that the 24 Item 3. 2 Contract shall remain uncompleted beyond the Completion Date of August 30th, 2024, Contractor shall pay the EDA $50.00 per day as liquidated damages. 5. INSURANCE Before beginning actual work under this Contract, Contractor shall submit to the EDA and obtain the EDA's approval of a certificate of insurance on Standard Form C.I.C.C.-701 or ACORD 25 forms, showing the following insurance coverage, and listing the Contractor as a loss payee under the policies: a. General Contractor Liability: $1,000,000.00 b. Workman's Compensation: Statutory Amounts The EDA and the City shall be named as an Additional Insureds in regard to the General Contractor Liability forms where required by written contract on a primary and non-contributory basis, including completed operations. This certificate must provide for the above coverages to be in effect from the date of the Contract until 30 days after the Completion Date, and must provide the insurance coverage will not be canceled by the insurance company without 30 days written notice to the EDA of intent to cancel. The certificate must further provide that Contractor’s insurance coverage is primary coverage notwithstanding any insurance coverage carried by the EDA that may apply to injury or damage relating to the maintenance or repair of the City streets or rights- of-way by either the City, EDA or any employee, agent, independent contractor or any other person or entity retained by the City or EDA to perform the services described herein. All insurance is subject to the review and approval of the Columbia Heights City Attorney. 6. LAWS, REGULATIONS AND SAFETY Contractor shall give all notices and comply with all laws, ordinances, rules, and regulations applicable to performance under this Contract. Contractor shall provide adequate signs and/or barricades, and will take all necessary precautions for the protection of the work and the safety of the public. 7. INDEMNIFICATION To the fullest extent permitted by law, Contractor shall indemnify and hold harmless the City, EDA, their agents and employees from and against all claims, damages, losses and expenses, including but not limited to attorney's fees, arising out of or resulting from the performance of Work, provided that any such claim, damage, loss or expense (1) is attributable to bodily injury, sickness, disease or death, or to injury or to destruction of tangible property (other than the Work itself) including the loss of use resulting therefrom, and (2) is caused in whole or in part by any negligent act or omission of Contractor, any Subcontractor, anyone directly or indirectly employed by any of them or anyone for whose acts any of them may be liable, regardless of whether or not it is caused in part by a party indemnified hereunder. 25 Item 3. 3 8. ASSIGNMENT Contractor shall not assign or transfer, whether by an assignment or novation or otherwise, any of its rights, duties, benefits, obligations, liabilities or responsibilities without prior written consent of the EDA. 9. NOTICE The address and telephone number of Contractor for purposes of giving notices and any other purpose under this Contract shall be 8651 Naples St NE, Suite #100, Blaine, MN 55449, (763)238-1014. The address of the EDA for purposes of giving notices and any other purposes under this Contract shall be 3989 Central Ave. NE. Columbia Heights, MN 55421. IN WITNESS WHEREOF, the parties to this Contract have hereunto set their hands and seals as of the day and year first above written. ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF COLUMBIA HEIGHTS By: ____________________________________ Aaron Chirpich Its: Executive Director NITTI ROLLOFF SERVICES INC. By: ____________________________________ Its: ______________________________ 26 Item 3. 4 Exhibit A Specifications See attached. 27 Item 3. BID FORM Property Owner: City of Columbia Heights Economic Development Authority Property Addresses: 941 44th Ave NE (P.I.D. 36-30-24-22-0050), 3851 Central Ave NE (P.I.D. 36-30-24-33-0011), 3853 Central Ave NE (P.I.D. 36-30-24-33-0159) For a price of $________________, the contractor named below proposes to fully complete the work in accordance with the attached specifications for burnt material removal, demolition, water and sewer utility cut off, and site grading at 941 44th Ave, 3851 Central Ave NE, and 3853 Central Ave NE. Name of Contractor: __________________________________________________________ License Number: _____________________________________________________________ Address: ____________________________________________________________________ Telephone: ______________________ E-mail Address: __________________________ Contractor Signature: ________________________________________ Date: _________________ Title: _________________________________________ 28 Item 3. 29 Item 3. 30 Item 3. 31 Item 3. 32 Item 3. 33 Item 3. R E Q U E S T F O R Q U O T E / P R O J E C T S P E C I F I C A T I O N S From: The Economic Development Authority in and for the City of Columbia Heights Subject: Request for quotes for demolition, site grading, and utility disconnection at 941 44th Ave NE, 3851 Central Ave NE, and 3853 Central Ave NE. Overview: The City of Columbia Heights EDA is the owner of the properties addressed 941 44th Ave NE (P.I.D. 36-30-24-22-0050), 3851 Central Ave NE (P.I.D. 36-30-24-33-0011), 3853 Central Ave NE (P.I.D. 36-30-24-33-0159). On May 6th, 2024, the Columbia Heights Fire Department utilized single family structure at 3853 Central for a training burn. The EDA is requesting quotes for the removal burnt materials at 3853 Central, the demolition of all buildings and site improvements, the cut of all utilities at the property lines, and the regrading of the primary excavation areas at all three locations. If you are interested in submitting a quote for this project, please review the enclosed specifications and inspect the site. Please call Mitchell Forney in the Community Development Department with any questions and for access to the properties, 763-706-3674. Proposals must be completed on the enclosed bid form and submitted by 1:00p.m. on June 20th, 2024. Proposals may be submitted by U.S. Mail, e-mail or in person; please note the enclosed bid form must be used. City staff will review the submitted proposals and forward them to the EDA. City staff expect the EDA to select a demolition contractor at their next meeting on July 1st, 2024. The timeline for completion of all work will be prior to August 30th, 2024. Submit proposals to the following: Attn: Mitchell Forney City of Columbia Heights Community Development Department 3989 Central Ave, NE Columbia Heights, MN 55421 mforney@columbiaheightsmn.com 34 Item 3. B I D F O R M Property Owner: City of Columbia Heights Economic Development Authority Property Addresses: 941 44th Ave NE (P.I.D. 36-30-24-22-0050), 3851 Central Ave NE (P.I.D. 36-30-24-33-0011), 3853 Central Ave NE (P.I.D. 36-30-24-33-0159) For a price of $________________, the contractor named below proposes to fully complete the work in accordance with the attached specifications for burnt material removal, demolition, water and sewer utility cut off, and site grading at 941 44th Ave, 3851 Central Ave NE, and 3853 Central Ave NE. Name of Contractor: __________________________________________________________ License Number: _____________________________________________________________ Address: ____________________________________________________________________ Telephone: ______________________ E-mail Address: __________________________ Contractor Signature: ________________________________________ Date: _________________ Title: _________________________________________ 35 Item 3. S P E C I F I C A T I O N S F O R D E M O L I T I O N A N D R E L A T E D W O R K Scope of Work A) General 1) Contractor shall furnish all labor, materials, and equipment, and shall perform all service and work required to remove the; burnt materials, buildings, structures, and improvements from the site along with the post demolition grading of the site, in strict accordance with these specifications and in accordance with all applicable ordinances and laws pertaining to removal of buildings, structures, grading and erosion control. Before demolition, contractor is to install silt fencing around the entire perimeter of the disturbed area. Erosion control logs can be used at the site entrance only. 2) Contractor shall thoroughly review these specifications and examine the site to evaluate existing and proposed conditions prior to making a quote. Failure to do so shall in no way relieve contractor from performing the work as required or be grounds for a claim for extra payment. B) Demolition and Disposal of Buildings and Site Improvements 1) All buildings and site improvements on the site shall be removed and properly disposed of. Demolition to include, but not limited to stairs, ramps, fences, retaining walls, floor slabs, garages, equipment bases, driveways, aprons, foundation walls and footings, and other structure components, appurtenances and contents associated with each structure, unless noted otherwise. Include removal of all out-buildings and miscellaneous items included in the attached pictures. 2) All demolition materials, substrates, debris, waste, or other materials shall be collected, stored, handled, managed, and disposed of in accordance with currently accepted practices at an approved, licensed, or permitted facility in accordance with applicable federal, state, and local ordinances, rules, and regulations. 36 Item 3. S P E C I F I C A T I O N S F O R D E M O L I T I O N A N D R E L A T E D W O R K C) Backfill, Compaction and Grading 1) No demolition material shall be left in or placed in any excavation. All excavations unless otherwise noted, shall be back filled with clean imported sand. Imported material shall be placed in 1-foot lifts and compacted to no less than 95% standard proctor density. Contractor shall provide the city with third party sampling, analysis, and reports to demonstrate that 95% compaction has been achieved. 2) The finished grade shall be determined by matching the existing average grade of the excavation areas prior to demolition. The final grade shall maintain pre demolition drainage patterns. 3) Upon completion of the finished grade, contractor shall spread 3” of imported topsoil to all disturbed areas of the site and apply seed and blanket to the same. D) Abandonment of Wells 1) The city is not aware of any wells on the properties. If a well is discovered: As part of this bid, the demolition contractor is to hire a well sealing company to properly seal the well and record the sealing with the Minnesota Department of Health. Contractor must provide records of the well sealing to the city upon completion. E) Utilities 1) Contractor shall be responsible for calling Gopher State One Call for the location of any underground utilities prior to commencement of demolition and site grading work. 2) The city has completed the disconnection of electricity (Excel Energy), natural gas (CenterPoint Energy) services for the properties. Other private communication utilities such as telephone and cable may still be connected; if so, contractor shall roll them back and secure them at the pole prior to demolition. 37 Item 3. S P E C I F I C A T I O N S F O R D E M O L I T I O N A N D R E L A T E D W O R K 3) Contractor is to coordinate the shut off of water with Public Works to ensure that the water is off before the demolition work is started. Contractor is to remove the water line from the main structure by kinking the line where it meets the curb stop and mark on-site, the location of the service termination. 4) Contractor is to coordinate the termination of the private sewer line with Public Works. The sewer lines shall be removed and capped where it meets the Property Lines. Document and mark on-site, the location of the service termination. F) Asbestos and Other Hazardous Materials 1) The City has contracted with Angstrom Analytical for the completion of a pre- demolition survey for the properties. The survey is attached to this report. The City utilized Dennis Environmental to remove any asbestos or hazardous materials found in the survey, prior to the demo. 2) For 3853 Central Ave NE. The City has contracted with Angstrom Analytical for the completion of testing of the buildings’ burnt materials. Attached is the report regarding the burnt materials. Burnt materials shall be disposed of in accordance with all state and federal requirements. G) Permits and Inspections 1) Contractor will complete and submit the City of Columbia Heights demolition permit application. Contractor shall have the work inspected prior to backfilling the primary excavation. The sewer and water service termination will also be inspected by City Public Works staff. A separate sewer and water disconnection permit must be secured from the City. 2) If any permits from other governmental agencies are required, contractor shall, at contractor’s own expense, secure such permits, pay any fees, and complete any inspections required by same, and provide a copy of the permit to the City. 3) Contractor shall submit “Notification of Intent to Perform a Demolition” Form to the MPCA. 38 Item 3. S P E C I F I C A T I O N S F O R D E M O L I T I O N A N D R E L A T E D W O R K H) Miscellaneous Provisions, and Notices 1) Contractor shall erect and maintain all necessary barricades and warnings to adequately safeguard workers, adjacent property, and the public. 2) The demolition and clearing of the site shall be carried out in such a manner to preclude damage to adjacent property or public right-of-way. 3) Contractor is to provide dust control during demolition by watering the homes. Water is available at no cost from the City by accessing adjacent hydrants. Please notify Columbia Heights Public Works one week in advance to coordinate hydrant connection 4) Submission of a proposal will constitute an incontrovertible representation by contractor that contractor has complied with every requirement of these specifications and attachments thereto; that without exception the proposal is premised upon performing and furnishing the work including but not limited to the specific means, methods, techniques, sequences, procedures or precautions expressly required by these specifications and attachments thereto; that contractor has received from the City satisfactory written resolution of any conflicts, errors, ambiguities, and discrepancies; and that these specifications and attachments thereto are generally sufficient to indicate and convey understanding of the terms and conditions for performing and furnishing the work. 39 Item 3. S P E C I F I C A T I O N S F O R D E M O L I T I O N A N D R E L A T E D W O R K 40 Item 3. S P E C I F I C A T I O N S F O R D E M O L I T I O N A N D R E L A T E D W O R K 41 Item 3. S P E C I F I C A T I O N S F O R D E M O L I T I O N A N D R E L A T E D W O R K 42 Item 3. S P E C I F I C A T I O N S F O R D E M O L I T I O N A N D R E L A T E D W O R K 3851 Central – Remove all items and excess debris. 43 Item 3. S P E C I F I C A T I O N S F O R D E M O L I T I O N A N D R E L A T E D W O R K 3851 Central – Remove all items and excess debris. 44 Item 3. S P E C I F I C A T I O N S F O R D E M O L I T I O N A N D R E L A T E D W O R K 3851 Central – Remove all items and excess debris. 45 Item 3. S P E C I F I C A T I O N S F O R D E M O L I T I O N A N D R E L A T E D W O R K 3851 Central– Remove all items and excess debris. 46 Item 3. S P E C I F I C A T I O N S F O R D E M O L I T I O N A N D R E L A T E D W O R K 3851 Central – Remove all items and excess debris. 47 Item 3. S P E C I F I C A T I O N S F O R D E M O L I T I O N A N D R E L A T E D W O R K 3851 Central – Remove all items and excess debris. 48 Item 3. S P E C I F I C A T I O N S F O R D E M O L I T I O N A N D R E L A T E D W O R K 3851 Central – Remove all items and excess debris. 49 Item 3. S P E C I F I C A T I O N S F O R D E M O L I T I O N A N D R E L A T E D W O R K 3851 Central – Remove all items and excess debris. 50 Item 3. S P E C I F I C A T I O N S F O R D E M O L I T I O N A N D R E L A T E D W O R K 3851 Central– Remove all items and excess debris. 51 Item 3. S P E C I F I C A T I O N S F O R D E M O L I T I O N A N D R E L A T E D W O R K 3851 Central– Remove all items and excess debris. 52 Item 3. S P E C I F I C A T I O N S F O R D E M O L I T I O N A N D R E L A T E D W O R K 3851 Central– Remove all items and excess debris. 53 Item 3. S P E C I F I C A T I O N S F O R D E M O L I T I O N A N D R E L A T E D W O R K 3851 Central – Remove all items and excess debris. 54 Item 3. S P E C I F I C A T I O N S F O R D E M O L I T I O N A N D R E L A T E D W O R K 3853 Central – Remove all items and excess debris. 55 Item 3. S P E C I F I C A T I O N S F O R D E M O L I T I O N A N D R E L A T E D W O R K 3853 Central– Remove all items and excess debris. 56 Item 3. S P E C I F I C A T I O N S F O R D E M O L I T I O N A N D R E L A T E D W O R K 3853 Central– Remove all items and excess debris. 57 Item 3. S P E C I F I C A T I O N S F O R D E M O L I T I O N A N D R E L A T E D W O R K 3853 Central – Remove all items and excess debris. 58 Item 3. S P E C I F I C A T I O N S F O R D E M O L I T I O N A N D R E L A T E D W O R K 3853 Central – Remove all items and excess debris. 59 Item 3. S P E C I F I C A T I O N S F O R D E M O L I T I O N A N D R E L A T E D W O R K 3853 Central– Remove all items and excess debris. 60 Item 3. S P E C I F I C A T I O N S F O R D E M O L I T I O N A N D R E L A T E D W O R K 3853 Central – Remove all items and excess debris. 61 Item 3. S P E C I F I C A T I O N S F O R D E M O L I T I O N A N D R E L A T E D W O R K 3853 Central – Remove all items and excess debris. 62 Item 3. S P E C I F I C A T I O N S F O R D E M O L I T I O N A N D R E L A T E D W O R K 3853 Central– Remove all items and excess debris. 63 Item 3. S P E C I F I C A T I O N S F O R D E M O L I T I O N A N D R E L A T E D W O R K 941 44th – Remove all items and excess debris. 64 Item 3. S P E C I F I C A T I O N S F O R D E M O L I T I O N A N D R E L A T E D W O R K 941 44th – Remove all items and excess debris. 65 Item 3. S P E C I F I C A T I O N S F O R D E M O L I T I O N A N D R E L A T E D W O R K 941 44th – Remove all items and excess debris. 66 Item 3. S P E C I F I C A T I O N S F O R D E M O L I T I O N A N D R E L A T E D W O R K 941 44th – Remove all items and excess debris. 67 Item 3. S P E C I F I C A T I O N S F O R D E M O L I T I O N A N D R E L A T E D W O R K 941 44th– Remove all items and excess debris. 68 Item 3. S P E C I F I C A T I O N S F O R D E M O L I T I O N A N D R E L A T E D W O R K 941 44th – Remove all items and excess debris. 69 Item 3. S P E C I F I C A T I O N S F O R D E M O L I T I O N A N D R E L A T E D W O R K 941 44th – Remove all items and excess debris. 70 Item 3. S P E C I F I C A T I O N S F O R D E M O L I T I O N A N D R E L A T E D W O R K 941 44th – Remove all items and excess debris. 71 Item 3. S P E C I F I C A T I O N S F O R D E M O L I T I O N A N D R E L A T E D W O R K 941 44th – Remove all items and excess debris. 72 Item 3. S P E C I F I C A T I O N S F O R D E M O L I T I O N A N D R E L A T E D W O R K 941 44th – Remove all items and excess debris. 73 Item 3. S P E C I F I C A T I O N S F O R D E M O L I T I O N A N D R E L A T E D W O R K 941 44th – Remove all items and excess debris. 74 Item 3. S P E C I F I C A T I O N S F O R D E M O L I T I O N A N D R E L A T E D W O R K 941 44th – Remove all items and excess debris. 75 Item 3. S P E C I F I C A T I O N S F O R D E M O L I T I O N A N D R E L A T E D W O R K 941 44th – Remove all items and excess debris. 76 Item 3. S P E C I F I C A T I O N S F O R D E M O L I T I O N A N D R E L A T E D W O R K 941 44th – Remove all items and excess debris. 77 Item 3. S P E C I F I C A T I O N S F O R D E M O L I T I O N A N D R E L A T E D W O R K 941 44th – Remove all items and excess debris. 78 Item 3. S P E C I F I C A T I O N S F O R D E M O L I T I O N A N D R E L A T E D W O R K 941 44th – Remove all items and excess debris. 79 Item 3. S P E C I F I C A T I O N S F O R D E M O L I T I O N A N D R E L A T E D W O R K 941 44th – Remove all items and excess debris. 80 Item 3. Burn Report 81 Item 3. 82 Item 3. 83 Item 3. 84 Item 3. 85 Item 3. 86 Item 3. 87 Item 3. 88 Item 3. 89 Item 3. 90 Item 3. 91 Item 3. 92 Item 3. 93 Item 3. 94 Item 3. 95 Item 3. 96 Item 3. 97 Item 3. 98 Item 3. 99 Item 3. 100 Item 3. 101 Item 3. 102 Item 3. 103 Item 3. 104 Item 3. 105 Item 3. 106 Item 3. 107 Item 3. 108 Item 3. 109 Item 3. ECONOMIC DEVELOPMENT AUTHORITY AGENDA SECTION BUSINESS ITEMS MEETING DATE 07/01/2024 ITEM: Deconstruction of 4416 Central Ave NE DEPARTMENT: Community Development BY/DATE: Mitchell Forney, 6-25-24 BACKGROUND: When prepping previous EDA Properties for demolition the commission looked to better futures for the recycling and reuse of building materials. By partnering with Better Futures, the EDA had prevented a large number of materials from ending up in the landfill. As a reminder, Better Futures Minnesota is a nonprofit organization dedicated to transforming the lives of men who have faced incarceration, homelessness, and unemployment. Through their comprehensive program, they provide a range of supportive services including transitional housing, employment training, job placement assistance, personal development workshops, mental health counseling, and substance abuse support. They support this mission through offering deconstruction services. These deconstruction services involve the dismantling and repurposing of buildings, which provide valuable job skills training while also promoting sustainable practices. Attached is the bid that staff received for the deconstruction of 4416 Central Ave NE. The bid for 4416 Central is split into two parts, the first containing items and finishes within the home and the other including items and the overall deconstruction of the garage. It is important to note that the garage is in good enough shape for Better Futures to reuse a large portion of the garage’s building materials. With the bid, Better Futures’ staff estimated that, if approved in whole, the project would divert 3-4 tons of materials for reuse from the waste stream. Attached is the list of items that would be removed from the buildings. The Fire department is seeking to utilize this home for a training burn which brought staff to limit the scope of the bid to internal materials. Included in the contract is the use of ply wood to re-secure the flooring affected by the removal of finishes. This is a precaution that Better Futures will be able to handle and was raised by the fire department during the burn of 3851 Central Ave. The EDA has budgeted $55,000 for the demolition of 4416 Central, staff believe that there are ample amounts of funds to support all abatement and demolition activities if the EDA decides to go forward with all or part of the Better Futures bid. Household Items and Finishes $8,810 Garage $2,200 Total: $11,010 Better Futures is a great organization which not only offers deconstruction services but utilizes them for job training. By utilizing deconstruction, the EDA can keep items and finishes that are as good as new from ending up in the land fill. With that being said, deconstruction is an added cost in the demolition of a property. Increasing the amount the EDA needs to spend on each project. Staff recommend considering the projects on a case-by-case basis as the EDA deliberates if it wants to go the deconstruction route. 110 Item 4. Page 2 RECOMMENDED MOTION(S): MOTION: Move to accept the proposal from Better Futures Minnesota, in the amount of $_______ for deconstruction work on the property located at 4416 Central Ave NE; and furthermore, to authorize the President and Executive Director to enter into an agreement or agreements for the same. ATTACHMENT(S): 1. 4416 Central Bid 2. List of Recoverable materials 111 Item 4. Better Futures Minnesota Date: June 21, 2024 Bid Proposal for: City of Columbia Heights 3989 Central Avenue NE Columbia Heights, MN 55421 Estimated Start Date: August 2024 Estimated Completion Date: 4-6 working days following start date BFM Contact: Quinn Jenkins 651.797.8746 Alex Baldwin 443.478.0717 Project Site: 4416 Central Ave NE Minneapolis, MN 55421 Bid Submitted to: Mitchell Forney Community Development Coordinator mforney@columbiaheightsmn.gov Bid Price for a Partial Deconstruction: $8,810 50% of which is due with this signed agreement. Final payment to Better Futures is due within 15 days of project completion. ALTERNATE A: Bid Price for the Deconstruction of Detached Garage: $2,200 50% of which is due with this signed agreement. Final payment to Better Futures is due within 15 days of project completion. Why Throw Away a Building? o Every ton of building material buried in landfills emits 1.35 metric tons of carbon dioxide (CO2). o Material reuse and the method of deconstruction generates net zero emissions of CO2. o The impact of Better Futures’ building material stewardship work in 2023 was equal to taking 6100 cars off the road for a year. 112 Item 4. 2 This Bid is valid for twenty business days. The scope of work includes the following: Better Futures Minnesota’s deconstruction team will harvest the reusable and recyclable materials from the property, per the attached preliminary materials list dated 06/21/24. Household items not shown on the preliminary materials list are to be removed by Others, prior to deconstruction work starting. Better Futures Minnesota will reinforce any areas of the subfloor that are damaged or missing with OSB/ plywood, once the wood flooring is removed. This bid price includes the following items: 1. A supervisor and workers for deconstruction and reclamation of most re-usable and recyclable materials. The crew for this project will consist of 1 Foreman and 4 workers. All workers are OSHA-10 certified and have completed basic deconstruction training. 2. Deconstruction tools and equipment, onsite portable toilet, dumpster for recycling (as applicable). Transport of all harvested and reclaimed materials from the job-site. 3. A final materials list documenting all the items harvested for reuse and donated to Better Futures Minnesota. If an appraisal is secured, the value of the materials donated will be based on the actual number and type of materials harvested over the course of the project. The appraiser will use the final harvest list to produce a formal appraisal. This formal appraisal is used to support a tax deduction. 4. The environmental benefits/impact of this project will be documented and presented to the customer. For this environmental report, the weight and disposition receipts of the remaining foundation and debris removal will need to be provided to BFM. 5. BFM plans to be on site for (4-6) workdays. Work to be performed between the hours of 8:00 am and 3:30 pm. Snow or inclement weather may affect days on site (snow fall events greater than 1” typically result in a 1 day delay). ITEMS AND TASKS NOT INCLUDED This bid does not include: 1. The cost for MSW handling (trash), hazardous material handling (asbestos, paint, oil, etc.), relocation (basic electric and gas disconnects are free through the utility company that provides the service to the property), capping of wells, removal of septic tanks, a survey, bonds, testing, restoration, street patching, MDH submittals, soil corrections, traffic control, dust control and or winter conditions, unless otherwise stated above. 113 Item 4. 3 2. This bid does not include the cost of testing for and removing hazardous materials. The customer is responsible for completing this work and sharing appropriate documentation with Better Futures before deconstruction work can begin. 3. The cost/ work of disconnecting any necessary utilities. 4. The price/ work to obtain permits. The customer must secure any necessary permits before deconstruction work can be initiated. 5. This proposal is for salvage only. The cost of any additional demolition work is not included in this proposal. ENVIRONMENTAL AND ECONOMIC IMPACT OF OUR WORK Better Futures’ deconstruction methods will divert a significant amount of materials from the landfill. In addition, this project will provide much-needed employment for up to 5 men who are committed to pursuing a better life. Wages paid on this job will enable the men to support their families and further develop marketable skills. QUALITY WORK STANDARDS Insurance documents provided on request. All work is guaranteed and will be performed to the specifications and standards outlined in this agreement. Better Futures is a safety-first organization and conforms to OSHA job site standards. SITE CONDITIONS We will maintain a safe and clean jobsite. All workers will wear uniforms, hard hats, safety vests, safety glasses, and steel toe boots with steel inserts at all times. CHANGE ORDERS Any change orders must be in writing and signed by authorized personnel prior to execution of the change. Customer Date Better Futures Minnesota Date Please provide billing information: Contact Name Address Phone Thank you for the opportunity to bid on this project. Please see below for important terms and conditions 114 Item 4. 4 1. Services. Contractor shall provide the services specified in the “Scope of Services” described on the face of this agreement which services may be referred to herein as the “Services” or the “Project.” Any change in the Services after this Agreement has been signed will be effective only if described in a written change order signed by Client and Contractor. 2. Term. The Services to be provided under this Agreement shall begin on the Start Date and be completed no later than the Completion Date set forth on page 1 of this Agreement (the “Completion Date”). Contractor shall be entitled to an extension of time for all causes beyond the Contractor’s control, including changes to the Project ordered by the Client, labor disputes, fire, and unusual delay in deliveries, abnormal weather conditions, or unavoidable casualties. 3. Compensation. Client must pay Contractor the amount stated on the face of this agreement, (the “Contract Sum”), at the times stated on the face of this agreement. 4. Right to Stop Work. If Client fails to make payment when due, Contractor shall have the right to stop performance of the Project until Contractor has been paid all amounts due it, in which case a Change Order shall be issued to increase the Contract Sum and extend the Completion Date as compensation to Contractor for the costs (including reasonable markup for overhead and profit) and delays attributable to the stoppage of the Project. 5. Relationship of Parties. Contractor and each of its employees and agents are at all times performing as an independent contractor and not as an employee of Client. 6. Subcontractors. Contractor may in its discretion engage subcontractors to perform some or all of the Services, provided that each subcontractor will be bound by the terms of this Agreement, and Contractor assumes responsibility for the actions and omissions of the subcontractor 7. Licenses, Permits, Fees and Assessments. Client shall obtain at its sole cost and expense such licenses, permits and approvals as may be required by law for the performance of the Services required by this Agreement. Client shall have the sole obligation to pay for any fees, assessments and taxes, plus applicable penalties and interest, which may be imposed by law and arise from or are necessary for Contractor’s performance of the Services required by this Agreement, and shall indemnify, defend and hold harmless Contractor against any such fees, assessments, taxes, penalties or interest levied, assessed or imposed against Contractor hereunder. 8. Asbestos and Other Hazardous Materials. Client acknowledges that Contractor is not qualified or licensed to identify, remove, or abate hazardous materials. Client represents that to the best of its knowledge, there is no asbestos or other hazardous materials to which Contractor or its employees or agents will be exposed in performing the Services at the Client’s work site. In the event that provision of the Services are likely to expose Contractor or its employees or agents to any such hazardous materials, Contractor may at its option elect to terminate this Agreement immediately upon written notice to Client. 9. Equipment and Supplies. Contractor agrees to furnish all equipment, materials, labor and supplies necessary to perform work to be completed by Contractor under this Agreement. 115 Item 4. 5 10. Condition of Work Site. Contractor shall at the end of each work day establish an orderly work area, keeping the work area free from accumulation of waste materials. Upon completion of the work, Contractor shall remove all of the Contractor’s equipment and surplus materials. 11. Waste. Unless otherwise specified on the face of this agreement, Client will be solely responsible for the proper disposal of waste resulting from the Services, in compliance with all federal, state, county, city, and municipal laws, orders, ordinances, rules and regulations. Client shall pay all costs associated with disposal of such waste. 12. Insurance. Contractor shall procure and maintain workers’ compensation insurance as required by law and commercial general liability in reasonable amounts. 13. Claims for Concealed or Unknown Conditions. If conditions are encountered at the Project which are concealed physical conditions which differ materially from those indicated in the bid or unknown physical conditions of an unusual nature, which differ materially from those ordinarily found to exist and generally recognized as inherent in activities of the character provided for in the Agreement, and if such conditions cause an increase in the Contractor’s cost of, or time required for, performance, then there shall be an equitable adjustment in the compensation paid to Contractor and the Completion Date. 14. Termination. This Agreement may be terminated at any time under the following circumstances: (a) In the event of a breach of any material provision of this Agreement, on 10 days’ written notice by the non-breaching party to the other party, but only if such breach is not cured within 10 days after such notice is given. The notice shall specify the nature of the breach. (b) By either party without the requirement of notice if a petition for relief under the laws of bankruptcy is filed by or against the other party, the other party makes an assignment for the benefit of creditors, or the other party is the subject of the appointment of a receiver, and such petition, assignment or appointment is not dismissed or vacated within thirty days. 15. Effect of Termination or Expiration. In the event this Agreement is terminated for any reason, Contractor shall be entitled to compensation for its services based on the Project’s percentage of completion, and for the cost of materials that were utilized through the termination date. 16. Assignment. Neither party shall assign the rights nor delegate the duties arising hereunder, whether by operation of law or otherwise, without the prior written consent of the other. Any attempted assignment or delegation without such prior written consent shall be null and void. 17. Force Majeure. Neither party shall be liable, nor be deemed to be in default hereunder, for any delay or failure in performance, or interruption of services, resulting directly or indirectly from acts beyond the control of such party, including but not limited to acts of God, 116 Item 4. 6 labor disputes, acts of a public enemy, accidents, acts of war, governmental regulations, equipment breakdown, or any cause beyond the control of the parties hereto. 18. Promotional Displays and Photographs: Client hereby grants Contractor the right to post the Contractor’s promotional sign on Client’s property during the time of construction and to allow the Contractor to photograph the Work and to use such photographs in Contractor’s promotions. 19. NOTICE TO MINNESOTA OWNERS OF LIEN RIGHTS: 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 THE CONTRIBUTIONS. UNDER MINNESOTA LAW, 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 THEM FROM US UNTIL 120 DAYS AFTER COMPLETION OF THE IMPROVEMENT UNLESS WE GIVE YOU A LIEN WAIVER SIGNED BY PERSONS WHO SUPPLIED ANY LABOR OR MATERIALS FOR THE IMPROVEMENT AND WHO GAVE YOU TIMELY NOTICE. 20. Entire Agreement. This Agreement, including all Exhibits, constitutes the entire Agreement between the parties with respect to the subject matter hereof and supersedes all prior agreements and understandings between the parties, whether written or oral. This Agreement does not confer any rights or remedies upon any person or entity not a party hereto. 21. Amendment. No amendment or modification to this Agreement will be effective unless it is in writing and signed by duly authorized representatives of both parties. 22. Notices. Whenever notice is required or permitted to be given to a party under this Agreement, such notice must given in writing and sent by certified mail, postage prepaid, to the appropriate party at the address set forth on page 1 of this Agreement. 117 Item 4. Year Built: 1954 Sq ft.: 1,040 # of Stories: 1 & basement Property ID#: DESCRIPTION OF ITEM Mfg Name Model #Serial #Dimension/Size WxHxD QTY UNIT WEIGHT TOTAL WEIGHT NOTES 1 Bedroom #1 2 ceiling fan 48"1 ea 0.00 0.00 3 oak flooring, 3/4" thick T&G 1.5" wide 115 sq ft 0.00 0.00 10% loss 4 Interior door, HC 30" x 80"1 ea 0.00 0.00 5 Bathroom #1 1 ea 0.00 6 Toilet Elger 1 ea 0.00 0.00 7 light fixture 30"1 ea 0.00 0.00 8 Mirror 36" x 30"1 ea 0.00 0.00 9 Medicine cabinet, wood 1 ea 0.00 0.00 10 Vanity cabinet 40" x 32" x 22"1 ea 0.00 0.00 11 Interior door, HC 28" x 80"1 ea 0.00 0.00 12 Bedroom #2 1 ea 0.00 0.00 13 oak flooring, 3/4" thick T&G 1.5" wide 125 sq ft 0.00 0.00 10% loss 14 Ceiling fan 42"1 ea 0.00 0.00 15 Interior door, HC 30" x 80"1 ea 0.00 0.00 16 Bedroom #3 1 ea 0.00 17 oak flooring, 3/4" thick T&G 1.5" wide 115 sq ft 0.00 0.00 10% loss 18 Interior door, HC 28" x 80"1 ea 0.00 0.00 19 Interior door, HC 30" x80"2 ea 0.00 0.00 20 Living Room 1 ea 0.00 21 oak flooring, 3/4" thick T&G 1.5" wide 270 sq ft 0.00 0.00 10% loss 22 Chandelier 30"1 ea 0.00 0.00 23 Standing lamp 1 ea 0.00 0.00 24 Kitchen 1 ea 0.00 25 Refrigerator 1 ea 0.00 0.00 26 Freezer 1 ea 0.00 27 Oven RECYCLE 1 ea 0.00 28 Kitchen sink, cast iron 33" x 22"1 ea 0.00 29 Upper cabinet unit 28" x 32" x 12"1 ea 0.00 30 Upper cabinet unit 30" x 32" x 12"2 ea 0.00 31 Upper cabinet unit 30" x 18" x 12"1 ea 0.00 32 Upper cabinet unit 36" x 18" x 12"1 ea 0.00 Client Name: City of Columbia Heights Better Futures Minnesota Job: 4416 Central Ave NE Address: 4416 Central Ave NE, Minneapolis, MN 55421 E-Mail: mforney@columbiaheightsmn.gov Phone: Preliminary Materials List Oak flooring, cabinetry, light fixtures, bath fixtures, garage select mechanical units Notes: Partial deconstruction Date: 06.11.24 118 Item 4. 33 Base cabinet unit 30" x 35" x 24"1 ea 0.00 34 Base cabinet unit 90" x 35" x 24"1 ea 0.00 35 Stained glass light fixture 1 ea 0.00 36 Spice cabinet 1 ea 0.00 37 Basement 38 Toilet 1 ea 0.00 0.00 39 sink, wall mount 1 ea 0.00 0.00 40 Washer 1 ea 0.00 0.00 41 Dryer 1 ea 0.00 0.00 42 Furnace 1 ea 0.00 0.00 43 Cedar paneling, 3/4" thick T&G 5",7",9"180 sq ft 0.00 0.00 44 Oven EXCLUDE 1 ea 0.00 45 Freezer EXCLUDE 1 ea 0.00 0.00 46 Water Heater EXCLUDE 1 ea 0.00 47 Exterior 1 ea 0.00 48 Concrete pavers est- field verify 40 ea 0.00 0.00 49 AC Unit 1 ea 0.00 0.00 50 Mailbox, black 1 ea 0.00 51 52 Garage 1 ea 0.00 53 Misc hand tools, sewing machine 1 ea 0.00 0.00 54 Coffee table 1 ea 0.00 0.00 55 Dresser 1 ea 0.00 0.00 56 Garage door estimated 8' x 7'2 ea 0.00 0.00 57 Garage door openers 2 ea 0.00 0.00 58 2" x 4", Douglas Fir 2" x 4"440 ln ft 0.00 0.00 59 2" x 6", Douglas Fir 2" x 6"360 ln ft 0.00 0.00 0.00 ALTERNATE A 119 Item 4. ECONOMIC DEVELOPMENT AUTHORITY AGENDA SECTION BUSSINESS ITEMS MEETING DATE 07/01/2024 ITEM: Junk Removal from 4416 Central Ave NE DEPARTMENT: Community Development BY/DATE: Mitchell Forney, 6-26-24 BACKGROUND: When the EDA purchased 4416 Central Ave NE, there were some remaining personal items left in the property. The EDA traditionally buys properties “as is” due to their blighted or aging conditions and the generally exigent circumstances of the families or homeowners involved. Because of the remaining personal items, Community Development staff reached out to the Fire Department's abatement contractor to procure a bid for removing all the junk from the home. If approved, any items identified in the deconstruction bid will be left for Better Futures. Aside from the items identified by Better Futures, all other items in the home will be discarded. The previous owner hosted a couple of estate sales and Habitat for Humanity salvaged what they could, leaving the remaining items with no other place to go but to be removed. Staff recommend approving Bauer Services' bid of $3,999.22 to remove the junk from the premises. Working with the Fire Department's abatement contractor allows the EDA to maintain a tight timeline in order to clear the junk before asbestos removal and deconstruction projects begin. RECOMMENDED MOTION(S): MOTION: Move to accept Bauer Services bid of $3,999.22, for the removal of all junk and household items located at 4416 Central Ave NE; and furthermore, to authorize the President and Executive Director to enter into an agreement for the same. ATTACHMENT(S): 1. Bauer Services Bid 120 Item 5. 1 Bauer Services II INC Client:City of Columbia Heights Home:(763) 706-3674 Property:4416 Central Ave Ne Columbia Heights, MN 55421 Operator:JRODR Estimator:Jorge Rodriguez Business:(763) 421-1723 Position:Estimator Company:Bauer Services Inc. Business:730 Buchanan St Anoka, MN 55304 Type of Estimate: Date Entered:6/14/2024 Date Assigned: Price List:MNMN8X_JUN24 Labor Efficiency:Restoration/Service/Remodel Estimate:COLUMBIAHEIGHTS4416 121 Item 5. 2 Bauer Services II INC COLUMBIAHEIGHTS4416 6/24/2024 Page: 2 COLUMBIAHEIGHTS4416 COLUMBIAHEIGHTS4416 DESCRIPTION QTY REMOVE REPLACE TAX TOTAL 1. Dumpster load 1.00 EA 866.41 0.00 0.00 866.41 2. General Demolition (Bid Item)1.00 EA 2,472.00 0.00 0.00 2,472.00 3. Plumber - per hour 3.00 HR 0.00 220.27 0.00 660.81 To cap gas lines to water heater and furnace. Total: COLUMBIAHEIGHTS4416 0.00 3,999.22 Line Item Totals: COLUMBIAHEIGHTS4416 0.00 3,999.22 122 Item 5. 3 Bauer Services II INC COLUMBIAHEIGHTS4416 6/24/2024 Page: 3 Summary Line Item Total 3,999.22 Replacement Cost Value $3,999.22 Net Claim $3,999.22 Jorge Rodriguez Estimator 123 Item 5. 4 Bauer Services II INC COLUMBIAHEIGHTS4416 6/24/2024 Page: 4 Recap of Taxes Matl Sales Tax Reimb Manuf. Home Tax Clothing Acc Tax Equipment (9.025%) (9.025%)(9.025%)(9.025%) Line Items 0.00 0.00 0.00 0.00 Total 0.00 0.00 0.00 0.00 124 Item 5. 5 Bauer Services II INC COLUMBIAHEIGHTS4416 6/24/2024 Page: 5 Recap by Room Estimate: COLUMBIAHEIGHTS4416 3,999.22 100.00% Subtotal of Areas 100.00%3,999.22 Total 3,999.22 100.00% 125 Item 5. 6 Bauer Services II INC COLUMBIAHEIGHTS4416 6/24/2024 Page: 6 Recap by Category Items Total % GENERAL DEMOLITION 3,338.41 83.48% PLUMBING 660.81 16.52% Subtotal 3,999.22 100.00% 126 Item 5. ECONOMIC DEVELOPMENT AUTHORITY AGENDA SECTION BUSINESS ITEMS MEETING DATE 07/01/2024 ITEM: Asbestos and Hazardous Material Abatement for the EDA Owned Property Located at 4416 Central Ave NE DEPARTMENT: Community Development BY/DATE: Mitchell Forney, 6-26-24 BACKGROUND: This memo is regarding approving bids for the removal of hazardous materials from 4416 Central Ave NE. Earlier this year, the EDA purchased the property intending to demolish it and prepare the site for redevelopment. As with other EDA properties the Fire department would like to utilize the structure in a training burn scenario. Due to this, the abatement of all hazardous materials is being bid separate from the demolition. In response to the request for bids, the EDA received four quotes. The lowest quote came from Dennis Environmental at $2,500. Looking at previous projects, this is well within the expected range per property. Dennis Environmental shall furnish the services and necessary equipment to com plete all work specified in the scope of work. All work will be performed in accordance with OSHA regulations, Minnesota Department of Health Asbestos Abatement Rules, and other applicable Federal and State regulations. Dennis Environmental shall insure proper clean up, transport, and disposal of hazardous and asbestos-containing materials and household items. Bid Spreadsheet: Robinson Environmental $4,382 Sheltertech Corp $5,670 Dennis Env $2,500 Hummingbird Env $4,300 RECOMMENDED MOTION(S): MOTION: Move to accept the bid of $2,500 by Dennis Environmental, for the removal of all hazardous materials located at 4416 Central Ave NE; and furthermore, to authorize the President and Executive Director to enter into an agreement for the same. ATTACHMENT(S): 1. Robinson Environmental Bid 2. Sheltertech Bid 3. Dennis Environmental Bid 4. Hummingbird Environmental Bid 5. Contract 127 Item 6. 128 Item 6. 129 Item 6. 130 Item 6. 131 Item 6. 132 Item 6. 1 EDA IN AND FOR THE CITY OF COLUMBIA HEIGHTS CONTRACT FOR REMOVAL OF ASBESTOS, AND OTHER HAZARDOUS MATERIALS FROM 4416 CENTRAL AVE NE, COLUMBIA HEIGHTS For valuable consideration as set forth below, this Contract dated the __ day of _____, ____, is made and entered into between the Economic Development Authority in and for the City of Columbia Heights, a public body corporate and political created pursuant to the laws of the State of Minnesota ("EDA") and Dennis Environmental Operations, a Minnesota Limited Liability Company ("Contractor"). 1. CONTRACT DOCUMENTS Contractor hereby promises and agrees to perform and comply with all the provisions of this Contract and the Proposal dated June 27, 2024, prepared by Contractor attached hereto as Exhibit A for the removal of asbestos-containing/hazardous materials in preparation for demolition of the residential property located at 4416 Central Ave NE, Columbia Heights, Minnesota (“Property”). The survey prepared by Angstrom Analytical, Inc. dated June 19, 2024 (“Survey”) identifies certain hazardous materials that shall be removed by Contractor from the Property and is attached hereto as Exhibit B. The Contract, Bid request, Proposal and Survey shall comprise the total agreement of the parties hereto. No oral order, objection, or claim by any party to the other shall affect or modify any of the terms or obligations contained in this Contract. 2. THE WORK The work to be performed by Contractor under this Contract (hereinafter the "Work"), is defined in the Proposal as removal of asbestos-containing/hazardous materials identified on the Survey and in the bid request, in preparation for demolition of the residence located on the Property. 3. CONTRACT PRICE The EDA agrees to pay Contractor the sum of $2,500 in exchange for Contractor furnishing labor and materials for the Work at the Property, payable within 30 days of Contractor’s completion of the Work. Contractor may start work on this project upon its execution of this Contract. 4. COMPLETION DATE/LIQUIDATED DAMAGES Contractor shall complete all Work on or before August 12th, 2024. ("Completion Date"). Due to the difficulty in ascertaining and establishing the actual damages which the EDA would sustain, liquidated damages are specified as follows for failure of Contractor to complete his performance under this Contract by the Completion Date: for every calendar day that the Contract 133 Item 6. 2 shall remain uncompleted beyond the Completion Date of August 12th, 2024, Contractor shall pay the EDA $50.00 per day as liquidated damages. 5. INSURANCE Before beginning actual work under this Contract, Contractor shall submit to the EDA and obtain the EDA's approval of a certificate of insurance on Standard Form C.I.C.C.-701 or ACORD 25 forms, showing the following insurance coverage, and listing the EDA and City as a loss payee under the policies: a. General Contractor Liability: $1,000,000.00 b. Workman's Compensation: Statutory Amounts This certificate must provide for the above coverages to be in effect from the date of the Contract until 30 days after the Completion Date, and must provide the insurance coverage will not be canceled by the insurance company without 30 day’s written notice to the EDA of intent to cancel. The certificate must further provide that Contractor’s insurance coverage is primary coverage notwithstanding any insurance coverage carried by the City or EDA that may apply to injury or damage relating to the maintenance or repair of the City streets or rights-of-way by either the City, EDA or any employee, agent, independent contractor or any other person or entity retained by the City or EDA to perform the services described herein. All insurance is subject to the review and approval of the Columbia Heights City Attorney. 6. LAWS, REGULATIONS AND SAFETY Contractor shall give all notices and comply with all laws, ordinances, rules and regulations applicable to performance under this Contract. Contractor shall provide adequate signs and/or barricades, and will take all necessary precautions for the protection of the Work and the safety of the public. 7. INDEMNIFICATION To the fullest extent permitted by law, Contractor shall indemnify and hold harmless the EDA, its agents and employees from and against all claims, damages, losses and expenses, including but not limited to attorney's fees, arising out of or resulting from the performance of Work, provided that any such claim, damage, loss or expense (1) is attributable to bodily injury, sickness, disease or death, or to injury or to destruction of tangible property (other than the Work itself) including the loss of use resulting therefrom, and (2) is caused in whole or in part by any negligent act or omission of Contractor, any Subcontractor, anyone directly or indirectly employed by any of them or anyone for whose acts any of them may be liable, regardless of whether or not it is caused in part by a party indemnified hereunder. 134 Item 6. 3 8. ASSIGNMENT Contractor shall not assign or transfer, whether by an assignment or novation or otherwise, any of its rights, duties, benefits, obligations, liabilities or responsibilities without prior written consent of the EDA. 9. NOTICE The address and telephone number of Contractor for purposes of giving notices and any other purpose under this Contract shall be 551 Topping St, St. Paul, MN 55103, 651-488-4835. The address of the EDA for purposes of giving notices and any other purposes under this Contract shall be 3989 Central Avenue NE, Columbia Heights, MN 55421. IN WITNESS WHEREOF, the parties to this Contract have hereunto set their hands and seals as of the day and year first above written. ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF COLUMBIA HEIGHTS By: ____________________________________ Aaron Chirpich Its: Executive Director Dennis Environmental Operations By: ____________________________________ Its: ____________________________________ 135 Item 6. ECONOMIC DEVELOPMENT AUTHORITY AGENDA SECTION BUSINESS ITEMS MEETING DATE 07/01/2024 ITEM: Façade Improvement Grant Report for Las Americas Ecuadorian Bakery located at 4355 Central Ave DEPARTMENT: Community Development BY/DATE: Mitchell Forney 6-28-24 BACKGROUND: This report pertains to 2024 Façade Improvement Grant application for 4355 Central Ave. The property business owner is applying for the façade improvement grant to install two signs, one on the store front and one on the already established pylon. A rendering of the proposed awning has been included in the packet. The lowest bid for the signs came in at $8,988, which sets them up for a grant amount of $4,494. Community Development Staff recommend funding the project in full as it is a new Ecuadorian bakery coming into the city, which will be filling the long vacant space next to redwing shoes. The EDA has approved 6 façade improvement grant applications, approving $29,750 this year with $4.494 being asked for at this meeting. This leaves $15,756 in Façade Grant funds for the remainder of the year. RECOMMENDED MOTION(S): MOTION: Move to waive the reading of Resolution 2024-18, there being ample copies available to the public. MOTION: Move to adopt Resolution 2024-18, 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 the owner of Las Americas Ecuadorian Bakery. ATTACHMENT(S): 1. Resolution 2024-18 2. Sample Façade Improvement Grant Agreement 3. 4355 Central Ave Application 136 Item 7. Resolution 2024-18 RESOLUTION NO. 2024-18 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 LAS AMERICAS ECUADORIAN BAKERY 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 Business districts, 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 Las Americas Ecuadorian Bakery 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 they deem necessary and appropriate to carry out the purpose of the foregoing resolution. ORDER OF ECONOMIC DEVELOPMENT AUTHORITY Adopted this 1st day of July, 2024 Offered by: Seconded by: Roll Call: President Attest: Secretary 137 Item 7. FAÇADE IMPROVEMENT GRANT AGREEMENT THIS FAÇADE IMPROVEMENT GRANT AGREEMENT (“Agreement”), dated this ___ day of ______, 2024 (the “Effective Date”), is entered into by and between Las Americas Ecuadorian Bakery, the tenant (the “Grantee”), and the Columbia Heights Economic Development Authority (the “EDA”). RECITALS WHEREAS, Grantee is the owner of certain Property located at 4355 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 138 Item 7. 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, 139 Item 7. 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: Las Americas Ecuadorian Bakery 4355 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] 140 Item 7. 4 IN WITNESS WHEREOF, Grantee and the EDA have signed this Agreement as of the day and year first above written. GRANTEE: Las Americas Ecuadorian Bakery the Tenant By:____________________________ Name: _________________________ Its:____________________________ Date:__________________________ EDA: COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY By: Name: _________________________ Its:____________________________ Date:__________________________ 141 Item 7. 5 EXHIBIT A LEGAL DESCRIPTION OF PROPERTY UNIT 4355 OF LOTS 17, 18, 19 & N 30 FT OF LOT 20 BLK 2 RESERVOIR HILLS, EX RD SUBJ TO EASE OF REC 142 Item 7. 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 July 1st, 2024, 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: furnish and install two custom fabricated signs totaling an amount equal to $8,988 143 Item 7. 144 Item 7. 145 Item 7. 146 Item 7. 147 Item 7. 148 Item 7. 149 Item 7. 150 Item 7. 151 Item 7. 152 Item 7. 153 Item 7. 154 Item 7. 155 Item 7. 156 Item 7. 157 Item 7. 158 Item 7. ECONOMIC DEVELOPMENT AUTHORITY AGENDA SECTION BUSINESS ITEMS MEETING DATE 07/01/2024 ITEM: Home Improvement Loan Program Discussion DEPARTMENT: Community Development BY/DATE: Mitchell Forney, 6-28-24 BACKGROUND: In May 2024, the City Council established a housing trust fund to hold the Metropolitan Affordable Sales Tax funds for future expenditure. These funds originated from the state and must be spent in accordance with state law, to include income limits on the expenditure of funds. At the March EDA meeting, the EDA came up with the idea of spending the funds on low-income home improvement loans, naturally occurring affordable housing loans, and affordable housing home ownership redevelopment projects. Directing staff to prioritize the creation of low-income home improvement loans. Staff have worked with our program contractor Center for Energy and Environment (CEE) to produce the loan materials for the EDA’s Discussion. At the time of writing this letter, staff have not received an update on the amount of funds the City will be receiving from the Metropolitan Affordable Sales Tax. League of Minnesota Cities staff expect the updated numbers to be released on July 1st with the first payment of those funds coming later that month. Due to not knowing the exact number, staff are operating off the initial estimate of Approximately $260,000. If the EDA is interested it can add more funding to the Trust Fund to further enhance the funds’ offerings. The Minnesota Housing Finance Agency (MHFA) is offering a grant that matches City contributions to the fund at 100% up to $150,000, and 50% up to $300,000. Staff have reached out to MHFA who are still working on putting together that grant program. Further information will be brought to the EDA when available. Due to the EDA directing staff to prioritize the low-income home improvement loans, staff reached out to CEE to begin the process of setting up the administration of the said loan program. The Community Development department does not have the staff capacity to effectively manage complex loans, which is why partnering with CEE is essential. When discussing the EDA’s goals with CEE and comparing them to other communities, it became very clear that the expected $260,000 doesn’t go as far as staff originally expected. With loans at $20,000 the EDA will only be able to offer 10 loans per year. This is with $2000,000 committed to the program and the cost of servicing the loans with some funds possibly left over. Due to this CEE recommended that the EDA commit fully to one loan program rather than spreading the $260,000 across two separate programs. When considering what type of loan program the EDA wants to establish there are two primary routes, deferred loan programs and traditional loan programs. The deferred loan program would offer a loan at 0% interest for a specified term. If the homeowner lived in the home longer than the term of the loan then the loan is forgiven, essentially a grant. If the owner sells the home before the term expires, they are required to pay the loan back in full at the sale of the property. Deferred loans are less expensive to manage, costing $1.00 per month with very few additional fees. With 36% of the population living in their home for more than 15 years the City could expect 64% of the loans to be paid back. Whereas traditional loans can be set at a certain interest rate. This means that the City makes income on the loans and the loans are paid back in full at the end of the term. These loans are more expensive to service ($15 per loan, per month) and carry additional fees. With basic math and assumptions: On a $15,000, 15-year loan, at 3% interest. The City would recoup 159 Item 8. Page 2 $3645.70 in interest but would pay $2,700 in monthly payments leaving the City with an income of $945.70 per loan, prior to the implementation of any additional fees. Whichever route the EDA wants to take, staff are looking to establish a base set of guidelines for the loan program. Attached is a draft set of guidelines established for the City with the below assumptions. Staff are looking to talk through these decision points with the EDA and get feedback on how the EDA would like to structure the program. Rate – 3% Minimum Loan - $1,000 Maximum Loan - $20,000 Maximum Term for <$10,000 – 10 years Max term – 15 years Eligible Improvements: Most permanent interior and exterior improvements. The City shall be asked to approve uses of funds when eligibility is uncertain. ATTACHMENT(S): All attachments are rough drafts sent over by CEE, the program guidelines have been pulled from other cities. 1. CEE Loan Servicing Duties 2. CEE Loan Servicing Pricing 3. CEE Programs Guidelines Fridley 4. CEE Example Budget 160 Item 8. 1 | P a g e (client) Loan Servicing Agreement #XXXX LOAN SERVICING AGREEMENT Exhibit A: Duties of Servicer NEW LOAN SET UP Loan Boarding CEE will board the loan upon origination into CEE’s servicing system. For any unsecured loan, CEE will board the new loan within three (3) Business days of origination. For any secured loan, CEE will board the new loan within three (3) Business days after the expiration of the right of rescission. CEE will confirm the funding pool and assure that the new loan draws off the correct pool. For purposes of this Agreement, “business days” means calendar days other than weekends, official federal holidays, and non-banking holidays. Reporting CEE will report all amortizing loans to at least one of the three major credit agencies upon inception as it may designate in its sole discretion. Quality Control Review The loan and ACH entry instruction will be reviewed prior to activation to verify the servicing system matches the terms of the promissory note and any other programmatic requirements per the documents submitted. Welcome Letter A welcome letter will be sent to borrowers within five (5) business days after boarding. This letter shall include the toll-free customer service number as well as an email address that is available for borrowers to use should they have a question regarding their loan. Customer service is available from 8:00 AM to 4:30 PM Central Time, on “business days”. An automatic ACH enrollment form is included in the letter for borrowers to complete and return to CEE if they would like recurring payments to be initiated automatically by CEE. The letter will also contain instructions for borrowers to receive access to the online loan portal where they have access to all their loan information and ability to make payments. STANDARD SERVICING –AMORTIZING/DEFERRED Billing Borrowers with loans that have regularly scheduled payments will receive billing statements on a monthly basis or other appropriate frequency based on terms of the promissory note. 161 Item 8. 2 | P a g e (client) Loan Servicing Agreement #XXXX Collection of Loan payments CEE shall collect payments of principal, interest and any appropriate fees. CEE shall confirm the application of payments to be consistent with the loan documents as part of ongoing due diligence. Customer Service CEE shall provide customer service to borrowers from 8:00AM – 4:30 PM Central Time on “business days”. The customer service team is available through the toll free phone number or email at loanservicing@mncee.org. Borrowers will receive a response within five (5) business days following a question submitted to CEE. Borrowers are able to view loan information on the loan portal as well as schedule payments. Past Due Collections CEE will make reasonable efforts to maintain loans in a current status and will deal promptly with those which are delinquent in accordance with the Collection Activity section below. CEE will process loan defaults as directed by Client. Reporting CEE will provide standard monthly reporting for the prior month’s activities to Client no later than the 10th business day of each month. The standard reports are as listed: o Loan Trial Balance o Aged Delinquency o Principal and Interest Collections o New Loan o Paid Loan o Fee Scheduled o Fee Earned Special reports may be added at an additional cost for programming. (See Exhibit B for pricing) IRS Reporting CEE shall provide borrowers with the required IRS annual tax reporting. Funds Remittance CEE shall remit collected funds less servicing and other applicable fees and any late charges assessed to borrower by the 10th business day of the month. Late charges will be retained by CEE. Funds will be remitted via ACH. An invoice will be distributed detailing the servicing fees. CEE shall remit such funds by means of ACH or other electronic funds transfer to an account designated by Client. 162 Item 8. 3 | P a g e (client) Loan Servicing Agreement #XXXX COLLECTION ACTIVITY Early Delinquency CEE will make reasonable efforts to maintain loans in a current status and will make reasonable periodic efforts to contact borrowers who are delinquent, in order to encourage payment. Such efforts will be limited to those loans that are no more than 90 days past due. o CEE will follow customary, usual and prudent business practices in servicing delinquent loans. o CEE will send delinquency letters for loans 31- 60 days past due. o CEE will continue sending letters and begin phone calls for loans 61-90 days past due. Late Delinquency CEE will make reasonable efforts to contact Borrowers, solicit payments, and return loans to a current status, where the loan has reached 90 or more days past due, in order to encourage payment. o CEE will follow customary, usual and prudent business practices in servicing delinquent loans. o CEE will send formal default letters for loans reaching 120 or more days past due. o CEE shall continue phone calls to borrower at 90 days past due. o After 120 days past due, Client shall determine next steps and CEE shall have no obligation to take further action regarding delinquent loans until directed by Client. DEFAULT MANAGEMENT Client shall be solely responsible for declaring a loan to be in default, and determining whether a loan is to be charged-off. Loan Modifications CEE shall respond to Client or Borrower requests for modifications to their loan terms, including Repayment Plans, Forbearance Agreements, Deferments, Extensions, Short Sales (Pre- Foreclosure Sales), or Negotiated Releases of collateral, obligors or guarantors (each a “Loan Modification”). CEE shall make no decisions independent of the Client. Client shall have final approval of any Loan Modifications, unless Client has instructed CEE in writing that it may approve Loan Modifications pursuant to criteria established by Client. CEE will follow customary, usual and prudent business practices in its review and processing of Loan Modifications, and keep Client informed of the status of such requests. 163 Item 8. 4 | P a g e (client) Loan Servicing Agreement #XXXX Both Client and CEE recognize that time is of the essence in responding to and approving or declining Loan Modification requests. CEE shall monitor Borrowers for compliance with the terms of the loan modification and make such changes to the loan record as required by the modification terms. Special Servicing CEE shall perform special servicing actions and steps at the direction of the Client for loans subject to formal legal proceedings, including Bankruptcy, Foreclosure, Deed-in-lieu of Foreclosure, Collections suits, Repossession, and Charge-offs involving either an obligor(s) or guarantor(s). CEE shall make no decisions or take actions independent of the Client, who shall have final say in approval of any Special Servicing actions (other than routine steps taken to protect or preserve Clients interests), unless Client has instructed CEE in writing that it may approve and take such actions. CEE must employ staff with expertise in the above areas and maintain compliance with all applicable regulations. CEE will follow customary, usual and prudent business practices in its review, processing, and management of Special Servicing of Client loans, and keep Client informed of the status of loans subject to Special Servicing. Both Client and CEE recognize that time is of the essence in responding to and approving or declining Special Servicing Actions. CEE shall monitor Borrowers who are subject to Special Servicing, consistent with the governing legal proceedings or requirements, and make such changes to the loan record as required to reflect the Special Servicing requirements. With respect to Bankruptcy, the Special Servicing shall include Filings, Proof of Claim, Repayment Plan setup and monitoring, and discharge/completion processing. (See Exhibit B for pricing) Other Servicing CEE shall perform the following additional servicing actions and steps for loans as requested by Client. CEE will follow customary, usual and prudent business practices in providing these services. The Client shall bear all of CEE’s out of pocket costs for third parties related to these items. CEE will notify Client of the potential out of pocket costs prior to performing any of the additional actions. o REO Marketing o Insurance Inspections o Default Inspections o Property Valuation or Appraisal o Property Preservation and security 164 Item 8. 5 | P a g e (client) Loan Servicing Agreement #XXXX SUBORDINATION PREPARATION CEE will review subordination requests in accordance with the Client’s subordination program requirements. Subordinations will be forwarded to the Client for signature if request meets the program requirements. Fees related to the subordination are paid by borrowers. MORTGAGE SATISFACTION PREPARATION Loan Payoffs CEE will process loan payoffs, issue payoff statements as requested by authorized individuals within 30 calendar days and remit funds to Client. CEE shall draft mortgage satisfactions (“Satisfaction”) within 30 calendar days after loan is paid in full to ensure funds received are cleared. The Satisfaction is then sent to client for signature. CEE shall provide instructions to borrowers as to how to properly record the Satisfaction. In the event that $5 (five dollars) or less of principle balance remains, CEE and Client will not attempt to collect the remaining fee and will consider the loan as satisfied. FINAL/SPECIAL PROCESSING TRANSACTIONS CEE shall charge additional fees in special circumstances such as a charge-off, foreclosure, servicing release, or any other transaction that is processed on a loan that is not paid in full but is no longer an active loan on the servicing system. This does NOT include processing a paid in full transaction. 165 Item 8. 1 | P a g e Loan Servicing Contract #XXXX LOAN SERVING AGREEMENT Exhibit B: Pricing Schedule Activity Description Pricing New Program Setup Creating the new program in CEE Loan Servicing System and creating reports $1,000 one-time fee New Loan Setup Loan Boarded to servicing system and quality control review, welcome letter $35.00 one-time fee per loan Standard Servicing Activities – Amortizing and Interest Only Payment Loans Payment processing, billing notices, customer service, investor reporting, early collections $15.00 per loan per month Standard Servicing Activities- Deferred Loans (no payments) Payment processing, customer service, investor reporting $1.00 per loan per month (no fee if the City has an active amortizing pool serviced by CEE) Collection Activity Collection Work for loans past due 15- 90 days $5.00/loan per month on all amortizing loans Default Management Example of activities: Repayment Plan, Forbearance Agreement, Deferment, Extension $80.00 per hour plus any charges that may be incurred from 3rd party vendor. Subordination Preparation Review request and Prepare subordination document $200.00 per request (Borrower Paid) Mortgage/Deed of Trust Satisfaction Preparation Drafting of mortgage/deed of trust satisfaction (excludes recording / filing fees) $30.00 one-time fee per loan Final /Special Processing Transaction For Charge-off, foreclosure, service release, loans not paid in full but no longer active on the servicing system $25.00 per transaction Conversion/On-Boarding of Amortizing Loans Boarding Loans previously serviced by a different company $70.00 one-time fee per loan Special Report Programming Special report creation not included in standard report package $150.00 one-time fee per report Special Reporting Distribution Monthly maintenance for special reports created for distribution $75.00 one-time fee per report Special Project work Special requests, such as assistance in audit preparation, special mailings, etc. $80.00 per hour plus any charges that may be incurred from 3rd party vendors. Non-Standard Servicing Activities Any additional activities required for servicing a loan not specified in contract $80.00 per hour, fee will be set based on time to complete task on a regular basis 166 Item 8. Exhibit A-24 Page 1 EXHIBIT A-24 PROGRAM GUIDELINES 167 Item 8. Exhibit A-24 Page 2 COLUMBIA HEIGHTS LOAN PROGRAM GUIDELINES The Columbia Heights Loan Programs are designed to supplement existing loan programs available from MHFA, CEE, private lenders and other housing resources. Center for Energy and Environment shall serve as the administrator for the Loan Programs and will secure the most beneficial financing based on the borrower’s needs independent of the funding source. Home Improvement Loan Interest Rate: 3% Amortization Type: Amortizing (Monthly Payments Required). Loan Amount: Minimum of $1,000 and Maximum of $20,000. Total Project Cost: The borrower must have sufficient funds necessary to cover the cost of the entire project as outlined in the bid(s). Additional funds may come from the applicant’s personal savings, gifts, or other non-City loans. Loan term: This will be somewhat flexible depending on the size of the loan and the borrower’s ability to repay the loan. The minimum term is 1 year; the maximum term will be up to 10 years for loan amounts up to $10,000 and up to 15 years for loan amounts greater than $10,000 Eligible Properties: 1-4 unit owner-occupied properties located within the City of Columbia Heights, including individual townhomes, twin homes, and condominiums. Properties held in a Trust are NOT eligible. Ineligible Properties: Properties with more than four units, cooperatives, manufactured homes, or properties used for commercial purposes. Eligible Borrowers: All borrowers must be legal residents of the United States. Ineligible Borrowers: Including but not limited to: Foreign Nationals, Non-Occupant Co-Borrowers, and Properties in the name of a business. Ownership/Occupancy: Owner- occupied only. Loan - to - Value Ratio: The ratio of all loans secured by the property, including the new loan, should not exceed 110% of the property value. Half of the improvement value may be added to the initial property value. Value can be established by the Property Tax Statement, or an Appraisal dated within the past 12 months. 168 Item 8. Exhibit A-24 Page 3 Income Limit: None. Debt - to - Income Ratio: 50% Credit Requirements: 1) All mortgage payments must be current and reflect no 30 day late payments history in the past 12 month period (without reasonable explanation). 2) All real estate taxes must be current. 3) No outstanding judgements or collections. 4) Bankruptcy must have been discharged for at least 18 months prior to loan closing (without reasonable explanation). 5) The redemption period on prior foreclosures must have occurred at least 18 months prior to the loan application date. 6) Generally, no more than two 60-day late payments on credit report (without reasonable explanation). 7) No defaulted government loans. Multiple Loans per Property/Borrower: More than one loan per property/borrower is allowed, however, the outstanding balance(s) for this loan CANNOT exceed $20,000. The outstanding balance of ALL Fridley loans CANNOT exceed $75,000. Eligible Use of Funds: Most permanent interior and exterior improvements. The City shall be asked to approve uses of funds when eligibility is uncertain. Ineligible Use of Funds: Payment for work initiated prior to the loan being approved and closed, unless due to emergency. Recreation or luxury projects (pools, lawn sprinkler systems, playground equipment, saunas, whirlpools, etc.), furniture, non-permanent appliances (unless part of a full kitchen remodel), and funds for working capital, debt service, homeowner labor or refinancing existing debts are NOT allowed. Bids: Only 1 bid is required. All contractors must be properly licensed or registered and permits must be obtained when required. Sweat Equity / Homeowner Labor: Work may be performed by property owners on a “sweat equity” basis. Loan funds may be used only for the purchase of materials. Loan funds cannot be used to purchase tools/ equipment or compensate for labor. Rental of equipment to complete the project is eligible. Post Installation Inspection: Permits must be obtained and signed off by a City inspector where required; when not required, a post installation inspection will be performed by CEE to ensure the work has been completed before any funds will be released. Loan Security: All loans will be secured with a mortgage in favor of the City of Columbia Heights. Borrower Fees: Borrower will be responsible for a 1% origination fee, title report, document preparation fee, mortgage filing and service fees, credit report fees and any applicable closing fee. Underwriting Decision: Applicants must have acceptable credit history. CEE will approve or deny loans based on a credit report, income verification and other criteria as deemed necessary through CEE’s underwriting guidelines. CEE’s decision shall be final. Work Completion: All work must be completed within 120 days of the loan closing. However, when warranted, CEE may authorize exceptions on a case-by-case basis. 169 Item 8. Exhibit A-24 Page 4 General Program Conditions Application Processing: Loans will be distributed on a first come first serve basis as borrowers qualify. Applicants must provide a completed application package including the following in order to be considered for funding.  Completed and signed application form  Proof of income  Bids or estimates for proposed projects  Other miscellaneous documents loan officers may require. Disbursement Process: Payment to the contractor (or owner in sweat equity situations) will be made upon completion of work. An inspection will be performed by a City Inspector and/or CEE to verify the completion of the work. The following items must be received prior to final disbursement of funds:  Final invoice or proposal from contractor (or materials receipt from supplier);  Final inspection verification by a City Inspector (or CEE);  Completion certificate(s) signed by borrower and contractor;  Lien waiver for entire cost of work;  Evidence of city permit (if required) 170 Item 8. EXHIBIT B Columbia Heights Program Budget Columbia Heights Program Budget Allocation (includes Loans plus Annual Administration Fee, Post‐ Installation Inspection Fees, One Time Set-Up Fee and Loan Origination Fees): $TBD TOTAL PROGRAM BUDGET: $TBD Budget Notes: 1. CEE shall submit monthly invoices for grants, origination fees and post‐ installation inspections for that period. 2. Services performed by CEE will initially be funded from the Total Program Budget as stated above and paid in accordance with the following schedule. (1) Annual Administration Fee $5,000 (2) Home Improvement Loan Origination Fee: $750 per loan closed (3) Remodeling Advisor (RAV) or Prioritization Visit $250 (4) Post Installation Inspection $150 (5) One Time-Program Set-Up Fee: $2,500 *Annual Administration Fee is pro-rated the first year of the contract and determined by the date the contract is executed. Annual Administration Fee shall be due January 1 each year thereafter. There will be a One-Time Set UP Fee of $500 for each additional program added to the Program Guidelines. 3. Marketing Marketing efforts outside of CEE’s website and Loan information are not included in the administrative budget. Hourly rates are inclusive of all overhead expenses and will be charged only for hours directly related to the labor of all additional program marketing. CEE will also be reimbursed for any non‐labor, out‐of‐pocket expenses relating to these services on a dollar‐for‐dollar basis. Exhibit B ‐ Budget 171 Item 8.