HomeMy WebLinkAbout06-03-2024 EDA Minutes
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
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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 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 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
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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 incom e
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
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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
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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 Trust 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
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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 of 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.
Respectfully submitted,
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Sarah LaVoie, Recording Secretary