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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 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 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 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 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 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 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 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 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 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, City of Columbia Heights MINUTES June 03, 2024 Economic Development Authority Page 7 Sarah LaVoie, Recording Secretary