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HomeMy WebLinkAbout07-01-2024 EDA MinutesECONOMIC DEVELOPMENT AUTHORITY City Hall —Council Chambers, 3989 Central Ave NE Monday, July 01, 2024 5:00 PM MINUTES The meeting was called to order at 5:00 pm by President Szurek. CALL TO ORDER/ROLL CALL Members present: Connie Buesgens; Kt Jacobs; Rachel James; Amada Marquez-Simula; Justice Spriggs; Marlaine Szurek; Lamin Dibba Staff Present: Andrew Boucher, City Planner; Aaron Chirpich, City Manager; Mitchell Forney, Community Development Coordinator; Sarah LaVoie, Administrative Assistant PLEDGE OF ALLEGIANCE CONSENT AGENDA 1. Approve the minutes of the regular EDA Meeting of June 3, 2024. 2. Approve financial reports and payment of bills for May 2024 — Resolution No. 2024-17 Motion by Jacobs, seconded by James, to approve the Consent Agenda as presented. A11 ayes of present. MOTION PASSED. 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, City of Columbia Heights MINUTES July 1, 2024 EDA Meeting Page 2 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: Rachel James Seconded by: KT Jacobs Roll Call: All ayes of present. MOTION PASSED. President Attest: Secretary BUSINESS ITEMS 3. Approval of Demolition Contract for 94144th, 3851 Central Ave, and 3853 Central Ave Forney reported that there are weeds growing on 3853 Central Avenue and Staff have been in contact with the Public Works Department about it to get them taken care of. Earlier this year, the EDA purchased the properties located at 94144th 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. 94144th 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 6, 2024. The next step in the redevelopment of these properties is to demolish the remaining structures on all properties. Forney noted that Staff prepared bid sheets and submitted bid requests to several contractors and City of Columbia Heights MINUTES July 1, 2024 EDA Meeting Page 3 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. Staff recommend awarding the project to the low bidder Nitti Rolloff Services for $65,925. The City has worked with Nitti Rolloff Services many times over the years. Questions/Comments from Members: Szurek asked if there were any chances of acquiring the lot that sits between the two properties on Central Avenue. Forney replied that the property owners have expressed interest at a very high price. He added the City will wait and see if the property owners would want to sell eventually or see what the market does in the future. Buesgens asked what the property owners wanted for the property. Forney replied that they wanted $1,000,000. James noted that the proposal references the alley pad may not be saved. Forney replied there is about three to four feet of sidewalk that Staff asked the bidders to try to save as much as possible so that the sidewalk would not be disturbed. One contractor did not think they would be able to get in there without causing damage. Ultimately, if a contractor causes damage to it, it will be fine but they would be required to replace the sidewalk. There is a parking area in the alley that will be maintained so it can be used by the apartments. Motion by Buesgens, seconded by Jacobs, 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. All ayes of present. MOTION PASSED. 4. Deconstruction of 4416 Central Ave NE Forney reported 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. Forney added that 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. City of Columbia Heights MINUTES July 1, 2024 EDA Meeting Page 4 Forney explained that 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. 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 plywood 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. Forney stated 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 landfill. 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 recommends considering the projects on a case -by -case basis as the EDA deliberates if it wants to go the deconstruction route. Questions/Comments from Members: Szurek asked if the property owners approached the City about selling the property. Forney agreed and added that the children of the property owners inherited the property and contacted the City. Szurek asked if the owners had taken all items that they wanted out of the house. Forney replied that they took all the items they wanted and held an estate sale as well. What is left in the house is just junk that they could not get rid of. Buesgens asked how much more the garage would cost. Forney replied $2,200. Buesgens asked what the total costs would be. Forney replied $11,010. Buesgens stated that she supported the costs. Chirpich noted that Better Futures replaces flooring to prepare for training exercises. Forney added that this was an issue in the past with the Fire Department but Staff are working with the Fire Department for them to have the ability to secure the floor. Jacobs asked if Better Futures would pick up debris and nails. Forney replied that they would. Szurek asked when the house was built. Forney replied in the 1940s. Szurek asked if there were any renovations done since then. Forney replied that he assumed there had been but the renovations are old. Jacobs asked if Better Futures was a nonprofit organization. Forney replied that they are. Jacobs asked if the City could claim credit for on donation. Chirpich replied that it was a question for the finance director. Buesgens added that it was too bad that the State did not provide credit for using City of Columbia Heights MINUTES July 1, 2024 EDA Meeting Page 5 a place like Better Futures since it keeps more materials out of dumps and is a good motivator for cities. Forney noted that the State does grant programs for organizations like Better Futures. Motion by Spriggs, seconded by Jacobs, to accept the proposal from Better Futures Minnesota, in the amount of $11,010 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. All ayes of present. MOTION PASSED. S. Junk Removal from 4416 Central Ave NE Forney reported 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. Questions/Comments from Members: Szurek asked if junk removal would come first. Forney replied that it would go first. Motion by Dibba, seconded by Spriggs, 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. All ayes of present. MOTION PASSED. 6. Asbestos and Hazardous Material Abatement for the EDA Owned Property Located at 4416 Central Ave NE Forney reported 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 complete all work specified in the scope of work. All work will be performed in accordance with OSHA regulations, Minnesota Department of Health City of Columbia Heights MINUTES July 1, 2024 EDA Meeting Page 6 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. Motion by Buesgens, seconded by Jacobs, 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. All ayes of present. MOTION PASSED. 7. Facade Improvement Grant Report for Las Americas Ecuadorian Bakery located at 4355 Central Ave Forney reported the property business owner is applying for the facade 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. Forney noted that the EDA has approved 6 facade improvement grant applications, approving $29,750 this year with $4.494 being asked for at this meeting. This leaves $15,756 in Fagade Grant funds for the remainder of the year. estions/Comments from Members: Szurek explained that her friend had someone shoot at her house and encouraged residents to install cameras. Motion by lames, seconded by Buesgens, to waive the reading of Resolution No. 2024-18, there being ample copies available to the public. All ayes of present. MOTION PASSED. Motion by James, seconded by Jacobs, to adopt Resolution No. 2024-18, a Resolution of the Economic Development Authority of Columbia Heights, Minnesota, approving the form and substance of the facade improvement grant agreement, and approving authority staff and officials to take all actions necessary to enter the authority into a facade improvement grant agreement with the owner of Las Americas Ecuadorian Bakery. All ayes of present. MOTION PASSED. RESOLUTION NO. 2024-18 A RESOLUTION OF THE ECONOMIC DEVELOPMENT AUTHORITY OF COLUMBIA HEIGHTS, MINNESOTA, APPROVING THE FORM AND SUBSTANCE OF THE FACADE IMPROVEMENT GRANT AGREEMENT, AND APPROVING AUTHORITY STAFF AND OFFICIALS TO TAKE ALL ACTIONS NECESSARY TO ENTER THE AUTHORITY INTO FACADE IMPROVEMENT GRANT AGREEMENT WITH LAS AMERICAS ECUADORIAN BAKERY City of Columbia Heights MINUTES July 1, 2024 EDA Meeting Page 7 WHEREAS, the City of Columbia Heights (the "City') and the Columbia Heights Economic Development Authority (the "Authority") have collaborated to create a certain Fagade 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 Fagade 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 Passed this 1st day of July 2024 Offered by: Rachel James Seconded by: Connie Buesgens Roll Call: All ayes of present. MOTION PASSED. President Attest: Secretary 8. Home Improvement Loan Program Discussion Forney reported in May 2024, the City Council established a housing trust fund to hold the City of Columbia Heights MINUTES July 1, 2024 EDA Meeting Page 8 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. Forney explained that 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. Forney stated 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 $200,000 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. Forney noted 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 $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. Forney explained whichever route the EDA wants to take, Staff are looking to establish a base set of City of Columbia Heights MINUTES July 1, 2024 EDA Meeting Page 9 guidelines for the loan program. 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. Questions/Comments from Members: Szurek asked if the amount of money varies by the size of the city. Forney replied that it is based off of the city's population and how much tax money is brought in. Buesgens asked if the programs that provide matching funds are competitive or easier to receive. Forney replied that he believed they were easy to receive. Buesgens asked if the City received the matching funds, if the money could be used for another type of program. Forney replied that the funds would need to be used in the Housing Trust Fund. Buesgens noted she is in favor of the NOAH option since it would include fourplexes. She added that her concern with not helping fourplexes is that property owners would leave and new owners would come in and raise the rent costs. She mentioned that she would rather focus on the renters and the buildings. Marquez-Simula agreed with Buesgens comments and added that the buildings were built in the 1960s and 1070s and have large rooms that property owners typically section off to create two bedrooms instead of three bedrooms which creates less parking issues. She noted that the greed of landlords coming in could create additional issues by trying to make more bedrooms out of the space. Forney explained that the State has passed some funding for eightplexes and above but it does not include fourplexes. Buesgens explained that she would rather go with the NOAH option rather than the Homeowners program because it is more of a priority for her to help the rental properties and keep them affordable. She added that the Metropolitan Council used to have a similar program and had some restrictions where property owners could not raise the rent for a certain amount of time and also incentive them to fix the building up. Jacobs noted that having a cap on how much the rent can be raised should be a part of the process. Szurek agreed. Jacobs stated she wished there was a way there could be a balance between homeowners and the fourplexes since there are many young people purchasing starter homes and do not have the money to do upgrades to the homes. James agreed with the comments that have been made. She mentioned that she has had discussions with community members who have raised concerns that their house needs improvements and are not able to afford to do so. Due to the time of sale, there are restrictions on what people can do with their homes. She noted that she would interested in doing something with the low income home improvement loans since there are already restrictions being placed on it. City of Columbia Heights MINUTES July 1, 2024 EDA Meeting Page 10 Buesgens asked if the loans could be split and have $20,000 for five homeowners and $160,000 for the fourplexes with NOAH. Forney replied that it is an option to split it but the issue is that the first five loans would be gone right away. Buesgens replied that it would be fine because if the matching funds come through than funds could be added later on. Forney explained another caution point is that the City would need to build in the administration for the second program. Spriggs asked if each grant needed to be $20,000. Forney replied that it did not need to be. Spriggs noted that he could see people having $6,000 or $7,000 loans. He agreed with James' comments of people needing the money for improvements on their homes. He mentioned that he qualified for a similar program in Anoka County when he first moved into his home but it has been a slow process and would like to see the City be more efficient and would be his first option in how to move forward. He added that the NOAH option would be a close second option for him. The third option would be the down payment assistance program. Forney explained that the numbers the EDA has in the Agenda Packet are what Staff have discussed with CEE. The next portion to discuss is how much and what percentage and what kind of loan programs the EDA wants to do. The County program is through CDBG and is extremely hard to get and is a long process. The County is looking to use some of their tax funds for the down payment assistance program and some other programs. Having a program through the City would be easier and a lot more direct. Marquez-Simula wondered if the EDA could rotate the focus of a program each year so Staff do not have to juggle two different programs. Forney replied that the EDA can choose which kind of funding it wants to do and simply pay the servicing loans are ongoing. Marquez-Simula asked if the Staff hours would be easier if there was only one loan program to focus on. Forney agreed. Marquez-Simula noted that repairs can be included in the mortgage. She mentioned that if the seller is able to identify what needs to be fixed in the home, the new owner can include the cost of repairs into the mortgage. Jacobs expressed her concern of low income property owners purchasing a home and not being able to afford improvements. She added that she would like to see those people taken care of so that they can remain the neighborhood and not go in foreclosure. She mentioned that she appreciates the desire to upgrade the fourplexes, however it is a business as opposed to an individual who is going into a home and trying to build some equity in their life. Buesgens explained that if the City does not help assist the fourplexes, property owners could leave and the Metropolitan Council could change the requirements of the City. James stated it would be worth it to use 100% of the matching program. Forney mentioned that the EDA would be receiving funds back from the Anoka County HRA levy for the purchase of the properties on Central Avenue. Buesgens asked if the City could do one year of the Homeowners Improvement loan and then the next year do NOAH and focus on fourplexes. Forney replied that the City would need to confirm City of Columbia Heights MINUTES July 1, 2024 EDA Meeting Page 11 with CEE. Buesgens stated that she would be on board with alternating between the two programs. Marquez-Simula agreed and explained that she would like to help property owners and would not like to see greedy rental business come into the City and raise prices. Dibba agreed with Marquez-Simula's comments and wondered if there was something the City could do to help the issue of rental businesses coming in and creating more bedrooms in spaces and raising the prices. Chirpich stated that the City's minimum development standards within the zoning require four areas for housing units. If a new order is submitted, the City has to review it and will at the very least maintain the baseline requirements per unit. Forney added that the rental licensing process would also create a guardrail. Marquez-Simula explained that new apartment buildings are creating small bedrooms and has seen apartments in other cities take a dining nook and put up drywall and a doorway and call it a bedroom. Spriggs asked if there was a difference in Staff time between the traditional versus deferred loan structure. Chirpich replied that it is cheaper to do one loan program. He added that the cost of home improvements have skyrocketed. Szurek noted that she would like to finish the meeting at 6 pm so that the City Councilmembers would be able to do their next meeting. She added that the EDA could continue to discuss the item at a different meeting. Chirpich mentioned that it sounded like Staff needed to do more research on NOAH. He added that Staff has no fully vetted it to know if CEE is a partner to administer it. Forney stated that they do multi -family homes. Szurek asked if this was CEE's proposal. Chirpich replied that it was. Szurek noted that after reading the proposal they could eat up the loan program with the charges. Forney explained that the deferred loans are less expensive to manage and cost $1.00 a month with some additional fees but nothing compared to the traditional loans with monthly servicing fees. With deferred loans, citizens are not making monthly payments so the CEE is not actively connecting with citizens. With 36% of the population living in their home for more than 15 years, the City would expect 64% of the loans to be paid back. He added that is if the City does a 15-year term. The City would still recoup costs, but would not be making money from insurance. If the EDA decides to do a traditional loan, insurance does not make the City a whole lot of money because, after all of the administration fees, the City is looking at $945 per loan prior to the implementation of fees. The deferred program would have less of a cost. Staff would recommend moving forward with a deferred loan instead of a traditional loan as well as moving forward with a version of the low-income home program because the program will not get out until later this fall. James noted on page 168 of the Agenda Packet that it read "eligible properties one to four units" City of Columbia Heights MINUTES July 1, 2024 EDA Meeting Page 12 and asked if that covered what the EDA was discussing. Forney replied that it a decision point for the EDA. The EDA can determine what properties are eligible. James stated she would be in favor of moving forward with the home improvement loan, knowing it could go up to four as long as they are owner -occupied. She added that she thinks the City should invest from Anoka County or any other funds to get the funds 100% matched. Marquez-Simula and Jacobs agreed with James' comments. Forney clarified that the EDA would like to move forward with the deferred loan at 0% interest, with a 15 year term for maximum and 10 year term for $10,000 less. He asked if the EDA would like to stick with the $20,000 maximum loan amount. Jacobs replied that she would prefer no more than $20,000. The EDA agreed. Forney mentioned that the EDA could do a $20,000 maximum this year and then readdress it at a later date. He asked if the EDA had any issues with the eligible improvements. Szurek replied that she liked the exclusion of a swimming pool. Jacobs noted that the requirement currently says only one bid is required and would like to see three. Szurek suggested having two bids required. The EDA agreed. James noted that one thing she liked about the Fridley home improvement program was that if a homeowner did not need a contractor, they could use the funds to purchase the materials needed for the home improvement. She wondered if there needed to be a requirement that the homeowner needed to apply for permits to do the work themselves in order to receive the loan. Chirpich replied that the loan program could mandate a follow-up inspection to ensure that the work was completed correctly. Spriggs asked if there was a reference in the loan program for the owner to occupy the property after the home improvement. Forney replied that Staff could look into doing a deed restriction. Chirpich added that the previous program that City had included the same requirement. Buesgens clarified that there would still be fees with the deferred loan because inspections will be required. She asked what would happen if someone did not pass the inspection. Forney replied that he would look into it. Marquez-Simula noted that the minutes did not say "draft" in the Agenda Packet. She added that it should have "draft" on it until it is voted to be approved. Forney replied that he would get that updated. BUSINESS UPDATES Forney mentioned there was an email to the EDA commissioners with a map application of the EDA properties. He displayed the map for the EDA and briefly reviewed the property locations. He added that he could include this as a discussion topic in a future meeting. ADJOURNMENT Motion by Buesgens, seconded by Spriggs to adjourn the meeting at 6:09 pm. All ayes. MOTION PASSED. City of Columbia Heights MINUTES July 1, 2024 EDA Meeting Page 13 Respectfully submitted, Sarah LaVoie, Recording Secretary