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Home My WebLink About08-05-2024 EDA Packet ECONOMIC DEVELOPMENT AUTHORITY City Hall—Shared Vision Room, 3989 Central Ave NE Monday, August 05, 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 236 494 101 511 and passcode fLHbJr . For questions please call the Community Development Department at 763-706-3670. CALL TO ORDER/ROLL CALL PLEDGE OF ALLEGIANCE CONSENT AGENDA 1. Approve July 1st, 2024, Regular EDA Meeting Minutes (pg. 3) 2. Approve the Financial Reports and Payment of the Bills for June 2024 (pg. 16) MOTION: Move to approve the Consent Agenda as presented. BUSINESS ITEMS 3. Transfer of the Library Property to the City (pg. 28) MOTION: Move to waive the reading of resolution 2024 -20, there being ample copies available to the public. MOTION: Move to approve resolution 2024-20, a resolution authorizing conveyance of certain real Property to the City of Columbia Heights 4. Review of EDA owned Properties (pg. 31) 5. 2025 EDA Budget Discussion (pg. 32) 6. Fire Suppression Grant Amendment Discussion (pg. 36) MOTION: Move to amend the Fire Suppression Grant Program Guidelines adding childcare businesses to the eligible applicant’s section. BUSINESS UPDATES ADJOURNMENT 1 City of Columbia Heights AGENDA August 05, 2024 Economic Development Authority Page 2 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—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 Márquez-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. All 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, 3 Item 1. 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 941 44th, 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 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 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 4 Item 1. 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 remo val 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 line s, 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 thro ugh offering deconstruction services. These deconstruction services involve the dismantling and repurposing of buildings, which provide valuable job skills training while also promoting sustainable practices. 5 Item 1. 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 ite ms 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 lef t 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 6 Item 1. 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. 5. 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 pres ent. 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 7 Item 1. 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. Façade Improvement Grant Report for Las Americas Ecuadorian Bakery located at 4355 Central Ave Forney reported 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. Forney noted that 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. Questions/Comments from Members: Szurek explained that her friend had someone shoot at her house and encouraged residents to install cameras. Motion by James, 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 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. 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 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 8 Item 1. 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 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 Busin ess 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 9 Item 1. City of Columbia Heights MINUTES July 1, 2024 EDA Meeting Page 8 Metropolitan Affordable Sales Tax funds for future expenditure. T hese 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 mater ials 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 10 Item 1. 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. Márquez-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. 11 Item 1. 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 th at 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. Márquez-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. Márquez-Simula asked if the Staff hours would be easier if there was only one loan program to focus on. Forney agreed. Márquez-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 12 Item 1. 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. Márquez-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 Márquez-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 ver y least maintain the baseline requirements per unit. Forney added that the rental licensing process would also create a guardrail. Márquez-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 loa n 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” 13 Item 1. 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. Márquez-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 loa n. 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. Márquez-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 p roperty 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. 14 Item 1. City of Columbia Heights MINUTES July 1, 2024 EDA Meeting Page 13 Respectfully submitted, Sarah LaVoie, Recording Secretary 15 Item 1. Resolution 2024-19 RESOLUTION NO. 2024-19 A RESOLUTION OF THE ECONOMIC DEVELOPMENT AUTHORITY OF COLUMBIA HEIGHTS, MINNESOTA, APPROVING THE FINANCIAL STATEMENTS FOR THE MONTH OF JUNE 2024 AND THE PAYMENT OF THE BILLS FOR THE MONTH OF JUNE 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 June 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 5th day of August 2024 Offered by: Seconded by: Roll Call: President Attest: Secretary 16 Item 2. AmountInvoiceInvoice DateVendorInvoice Line DescGL Number INVOICE GL DISTRIBUTION REPORT FOR CITY OF COLUMBIA HEIGHTS 1/2Page:07/15/2024 11:14 AM User: suems DB: Columbia Heights EXP CHECK RUN DATES 06/01/2024 - 06/30/2024 BOTH JOURNALIZED AND UNJOURNALIZED PAID Check 199156 24.30 20234566805/15/24COMCAST051524 934571297 COMM DEV ADMIN (2.3%)204.6314.43250 24.30 Total For Check 199156 Check 199188 18.25 99283430105/26/24POPP.COM INC052624 10013121 PHONE COMMDEV ADMIN204.6314.43210 18.25 Total For Check 199188 Check 199254 748.25 M2920505/31/24TIMESAVER OFF SITE SECRETR INCEDA MEETING 050624204.6314.43050 748.25 Total For Check 199254 Check 199291 1,600.00 1005106/03/24DENNIS ENVIRONMENTAL OPERATIONSASBESTOS TILE ABATEMENT 941 44TH AVE NE408.6414.43050 1,600.00 Total For Check 199291 Check 199307 285.50 18150705/17/24KENNEDY & GRAVENCL205-00089 4416 CENTRAL AVE NE PURCHASE408.6414.43050 285.50 Total For Check 199307 Check 199325 13.69 99283537005/31/24POPP.COM INC053124 -10010429 COM DEV ADMINISTRATION204.6314.43210 13.69 Total For Check 199325 Check 199328 24,436.00 0611202406/11/24RAIL WERKS BREWING DEPOT LLCFIRE SUPPRESION GRANT PAYMENT408.6418.44600 24,436.00 Total For Check 199328 Check 199345 2,197.86 36302422005006/06/24ANOKA COUNTY PROPERTY RECORDS941 44TH AVE FULL YR, 1ST HALF PENALTY408.6414.44390 3,777.43 36302433015906/11/24ANOKA COUNTY PROPERTY RECORDS3853 CNTRL AVE FULL YR, 1ST HALF PENALTY408.6414.44390 5,810.59 36302433001106/11/24ANOKA COUNTY PROPERTY RECORDS3851 CNTRL AVE FULL YR, 1ST HALF PENALTY408.6414.44390 11,785.88 Total For Check 199345 Check 199420 4,374.34 0611202406/11/24ROYAL RESTORATION INCFACADE IMPROVEMENT GRANT PAYEMENT408.6411.44600 4,374.34 Total For Check 199420 Check 199441 671.70 111141493006/10/24XCEL ENERGY (N S P)ELECTRIC228.6317.43810 671.70 Total For Check 199441 17 Item 2. AmountInvoiceInvoice DateVendorInvoice Line DescGL Number INVOICE GL DISTRIBUTION REPORT FOR CITY OF COLUMBIA HEIGHTS 2/2Page:07/15/2024 11:14 AM User: suems DB: Columbia Heights EXP CHECK RUN DATES 06/01/2024 - 06/30/2024 BOTH JOURNALIZED AND UNJOURNALIZED PAID 804.49 Fund 204 EDA ADMINISTRATION 671.70 Fund 228 DOWNTOWN PARKING 42,481.72 Fund 408 EDA REDEVELOPMENT PROJECT FD Fund Totals: 24,436.00 FIRE SUPPRESION GRANT PAYMENT408.6418.44600 11,785.88 941 44TH AVE FULL YR, 1ST HALF PENALTY408.6414.44390 1,885.50 ASBESTOS TILE ABATEMENT 941 44TH AVE NE408.6414.43050 4,374.34 FACADE IMPROVEMENT GRANT PAYEMENT408.6411.44600 671.70 ELECTRIC228.6317.43810 24.30 051524 934571297 COMM DEV ADMIN (2.3%)204.6314.43250 31.94 053124 -10010429 COM DEV ADMINISTRATION204.6314.43210 748.25 EDA MEETING 050624204.6314.43050 --- TOTALS BY GL DISTRIBUTION --- 43,957.91 Total For All Funds: 18 Item 2. REVENUE AND EXPENDITURE REPORT FOR CITY OF COLUMBIA HEIGHTS 1/9Page:07/15/2024 11:02 AM User: suems DB: Columbia Heights PERIOD ENDING 06/30/2024 % BDGT USED UNENCUMBERED BALANCE YTD BALANCE 06/30/2024 ACTIVITY FOR MONTH 06/30/24 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: 19 Item 2. REVENUE AND EXPENDITURE REPORT FOR CITY OF COLUMBIA HEIGHTS 2/9Page:07/15/2024 11:02 AM User: suems DB: Columbia Heights PERIOD ENDING 06/30/2024 % BDGT USED UNENCUMBERED BALANCE YTD BALANCE 06/30/2024 ACTIVITY FOR MONTH 06/30/24 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 0.00 0.00 0.00 ATTORNEY FEES-OTHER204.6314.43045 182.74 (2,068.50)3,708.50 69.00 860.00 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 73.11 188.20 511.80 0.00 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 0.00 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 50.00 1,599.98 1,600.02 266.67 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 50.00 4,550.02 4,549.98 758.33 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 65.17 8,394.68 14,845.32 1,094.00 860.00 24,100.00 OTHER SERVICES & CHARGES PERSONNEL SERVICES 50.61 100,664.29 103,135.71 15,653.84 0.00 203,800.00 REGULAR EMPLOYEES204.6314.41010 52.31 7,296.93 8,003.07 1,174.03 0.00 15,300.00 P.E.R.A. CONTRIBUTION204.6314.41210 54.86 7,132.37 8,667.63 1,328.03 0.00 15,800.00 F.I.C.A. CONTRIBUTION204.6314.41220 53.87 10,794.72 12,605.28 1,981.10 0.00 23,400.00 INSURANCE204.6314.41300 39.96 960.61 639.39 60.85 0.00 1,600.00 WORKERS COMP INSURANCE PREM204.6314.41510 51.19 126,848.92 133,051.08 20,197.85 0.00 259,900.00 PERSONNEL SERVICES 20 Item 2. REVENUE AND EXPENDITURE REPORT FOR CITY OF COLUMBIA HEIGHTS 3/9Page:07/15/2024 11:02 AM User: suems DB: Columbia Heights PERIOD ENDING 06/30/2024 % BDGT USED UNENCUMBERED BALANCE YTD BALANCE 06/30/2024 ACTIVITY FOR MONTH 06/30/24 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 50.00 14,450.02 14,449.98 2,408.33 0.00 28,900.00 OPER. TRANSFER OUT - LABOR204.6314.47100 50.00 14,450.02 14,449.98 2,408.33 0.00 28,900.00 CONTINGENCIES & TRANSFERS 52.06 150,389.75 162,450.25 23,700.18 860.00 313,700.00 Total Dept 6314 - ECONOMIC DEVELOPMENT AUTH 52.06 150,389.75 162,450.25 23,700.18 860.00 313,700.00 TOTAL EXPENDITURES 100.00 165,931.61 (165,071.61)(23,700.18)(860.00)0.00 NET OF REVENUES & EXPENDITURES 52.06 150,389.75 162,450.25 23,700.18 860.00 313,700.00 TOTAL EXPENDITURES 0.84 316,321.36 (2,621.36)0.00 0.00 313,700.00 TOTAL REVENUES Fund 204 - EDA ADMINISTRATION: 21 Item 2. REVENUE AND EXPENDITURE REPORT FOR CITY OF COLUMBIA HEIGHTS 4/9Page:07/15/2024 11:02 AM User: suems DB: Columbia Heights PERIOD ENDING 06/30/2024 % BDGT USED UNENCUMBERED BALANCE YTD BALANCE 06/30/2024 ACTIVITY FOR MONTH 06/30/24 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 50.00 1,550.02 1,549.98 258.33 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 37.06 8,182.30 4,817.70 671.70 0.00 13,000.00 ELECTRIC228.6317.43810 22.81 27,015.77 7,369.93 1,396.00 614.30 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 27.35 40,027.69 14,458.01 2,326.03 614.30 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 26.63 41,527.69 14,458.01 2,326.03 614.30 56,600.00 Total Dept 6317 - DOWNTOWN PARKING 26.63 41,527.69 14,458.01 2,326.03 614.30 56,600.00 TOTAL EXPENDITURES 100.00 15,072.31 (14,458.01)(2,326.03)(614.30)0.00 NET OF REVENUES & EXPENDITURES 26.63 41,527.69 14,458.01 2,326.03 614.30 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: 22 Item 2. REVENUE AND EXPENDITURE REPORT FOR CITY OF COLUMBIA HEIGHTS 5/9Page:07/15/2024 11:02 AM User: suems DB: Columbia Heights PERIOD ENDING 06/30/2024 % BDGT USED UNENCUMBERED BALANCE YTD BALANCE 06/30/2024 ACTIVITY FOR MONTH 06/30/24 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): 23 Item 2. REVENUE AND EXPENDITURE REPORT FOR CITY OF COLUMBIA HEIGHTS 6/9Page:07/15/2024 11:02 AM User: suems DB: Columbia Heights PERIOD ENDING 06/30/2024 % BDGT USED UNENCUMBERED BALANCE YTD BALANCE 06/30/2024 ACTIVITY FOR MONTH 06/30/24 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: 24 Item 2. REVENUE AND EXPENDITURE REPORT FOR CITY OF COLUMBIA HEIGHTS 7/9Page:07/15/2024 11:02 AM User: suems DB: Columbia Heights PERIOD ENDING 06/30/2024 % BDGT USED UNENCUMBERED BALANCE YTD BALANCE 06/30/2024 ACTIVITY FOR MONTH 06/30/24 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: 25 Item 2. REVENUE AND EXPENDITURE REPORT FOR CITY OF COLUMBIA HEIGHTS 8/9Page:07/15/2024 11:02 AM User: suems DB: Columbia Heights PERIOD ENDING 06/30/2024 % BDGT USED UNENCUMBERED BALANCE YTD BALANCE 06/30/2024 ACTIVITY FOR MONTH 06/30/24 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 6411 - FACADE IMPROVEMENT GRANT OTHER SERVICES & CHARGES 100.00 (4,374.34)4,374.34 4,374.34 0.00 0.00 LOANS & GRANTS408.6411.44600 100.00 (4,374.34)4,374.34 4,374.34 0.00 0.00 OTHER SERVICES & CHARGES 100.00 (4,374.34)4,374.34 4,374.34 0.00 0.00 Total Dept 6411 - FACADE IMPROVEMENT GRANT Dept 6414 - COMMERCIAL REVITALIZATION OTHER SERVICES & CHARGES 100.00 (90,334.50)86,837.00 6,921.50 3,497.50 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 (11,839.12)11,839.12 11,785.88 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 102.67 (2,668.83)99,171.33 18,707.38 3,497.50 100,000.00 OTHER SERVICES & CHARGES CAPITAL OUTLAY 107.87 (16,519.55)226,519.55 0.00 0.00 210,000.00 LAND408.6414.45110 107.87 (16,519.55)226,519.55 0.00 0.00 210,000.00 CAPITAL OUTLAY 26 Item 2. REVENUE AND EXPENDITURE REPORT FOR CITY OF COLUMBIA HEIGHTS 9/9Page:07/15/2024 11:02 AM User: suems DB: Columbia Heights PERIOD ENDING 06/30/2024 % BDGT USED UNENCUMBERED BALANCE YTD BALANCE 06/30/2024 ACTIVITY FOR MONTH 06/30/24 ENCUMBERED YEAR-TO-DATE 2024 AMENDED BUDGETDESCRIPTIONGL NUMBER Fund 408 - EDA REDEVELOPMENT PROJECT FD Expenditures 106.19 (19,188.38)325,690.88 18,707.38 3,497.50 310,000.00 Total Dept 6414 - COMMERCIAL REVITALIZATION Dept 6418 - FIRE SUPPRESSION GRANT OTHER SERVICES & CHARGES 100.00 (74,436.00)71,563.50 24,436.00 2,872.50 0.00 LOANS & GRANTS408.6418.44600 100.00 (74,436.00)71,563.50 24,436.00 2,872.50 0.00 OTHER SERVICES & CHARGES 100.00 (74,436.00)71,563.50 24,436.00 2,872.50 0.00 Total Dept 6418 - FIRE SUPPRESSION GRANT 138.10 (118,116.61)421,746.61 47,517.72 6,370.00 310,000.00 TOTAL EXPENDITURES 100.00 428,003.75 (421,633.75)(47,517.72)(6,370.00)0.00 NET OF REVENUES & EXPENDITURES 138.10 (118,116.61)421,746.61 47,517.72 6,370.00 310,000.00 TOTAL EXPENDITURES 0.04 309,887.14 112.86 0.00 0.00 310,000.00 TOTAL REVENUES Fund 408 - EDA REDEVELOPMENT PROJECT FD: 429.49 596,206.79 (475,142.49)(73,543.93)(8,464.30)112,600.00 NET OF REVENUES & EXPENDITURES 10.54 6,594,359.83 768,575.87 73,543.93 8,464.30 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 27 Item 2. ECONOMIC DEVELOPMENT AUTHORITY AGENDA SECTION BUSINESS ITEM MEETING DATE 08/05/2024 ITEM: Transfer of the Library Property to the City DEPARTMENT: Community Development BY/DATE: Mitchell Forney, 7-31-24 BACKGROUND: During review of the City and EDA owned properties staff found that the library was still technically owned by the EDA. The redevelopment of the library property was carried out by the EDA and was never transferred to the City. Having the property under City ownership changes very little but allows the Council to make decisions regarding the property which technically should have been done by the EDA in the past. RECOMMENDED MOTION(S): MOTION: Move to waive the reading of resolution 2024-20, there being ample copies available to the public. MOTION: Move to approve resolution 2024-20, a resolution authorizing conveyance of certain real Property to the City of Columbia Heights ATTACHMENT(S): 1. Resolution 2024-20 28 Item 3. 1 CL162-31-965193.v1 Resolution 2024-20 COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY CITY OF COLUMBIA HEIGHTS ANOKA COUNTY STATE OF MINNESOTA RESOLUTION NO. 2024-20 A RESOLUTION AUTHORIZING CONVEYANCE OF CERTAIN REAL PROPERTY TO THE CITY OF COLUMBIA HEIGHTS WHEREAS, the Columbia Heights Economic Development Authority (the “Authority”) is the owner of certain real property located at 3939 Central Ave NE, Columbia Heights, in Anoka County, Minnesota and legally described as that part of block 4 Waltons rear of lots 33 & 34 block 6 Reservoir Hills lying S of N 150 ft, lying W of E 165 ft of S 180 ft of N 330 ft, & lying N of S 100 ft of W 183 ft thereof (the “Property”); and WHEREAS, the City of Columbia Heights, Minnesota (the “City”) is interested in owning the Property; and WHEREAS, the Authority has determined that it is in the best interest of the public to convey the Property to the City; and WHEREAS, the Authority and the City have followed applicable statutory provisions, including but not limited to, Minnesota Statutes, Sections 465.035 and 471.64. NOW THEREFORE, BE IT RESOLVED by the Board of Commissioners of the Columbia Heights Economic Development Authority as follows: 1. The recitals set forth in the preamble to this resolution and the exhibits attached to this resolution are incorporated into this resolution as if fully set forth herein. 2. The conveyance of the Property by the Authority to the City is hereby authorized pursuant to a quit claim deed. 3. The Board hereby authorizes the President and Executive Director, in their discretion and at such time, if any, as they may deem appropriate, to execute on behalf of the Authority all appropriate documents to convey title of the Property to the City, including but not limited to a quit claim deed (the “Conveyance Documents”), and to carry out, on behalf of the Authority, the Authority’s obligations thereunder when all conditions precedent thereto have been satisfied. The Conveyance Documents shall be in substantially the form on file with the Authority and the approval hereby given to the Conveyance Documents includes approval of such additional details therein as may be necessary and appropriate and such modifications thereof, deletions therefrom and additions thereto as may be necessary and appropriate and approved by legal counsel to the Authority and by the officers authorized herein to execute said documents 29 Item 3. 2 CL162-31-965193.v1 Resolution 2024-20 prior to their execution; and said officers are hereby authorized to approve said changes on behalf of the Authority. The execution of any instrument by the appropri ate officers of the Authority herein authorized shall be conclusive evidence of the approval of such document in accordance with the terms hereof. This resolution shall not constitute an offer and the Conveyance Documents shall not be effective until the date of execution thereof as provided herein. 4. In the event of absence or disability of the officers, any of the documents authorized by this resolution to be executed may be executed without further act or authorization of the Board by any duly designated acting official, or by such other officer or officers of the Board as, in the opinion of the City Attorney, may act in their behalf. Upon execution and delivery of the Conveyance Documents, the officers and employees of the Board are hereby authorized and directed to take or cause to be taken such actions as may be necessary on behalf of the Board to implement the Conveyance Documents. ORDER OF ECONOMIC DEVELOPMENT AUTHORITY Passed this 5th day of August 2024 Offered by: Seconded by: Roll Call: President Attest: Secretary 30 Item 3. ECONOMIC DEVELOPMENT AUTHORITY AGENDA SECTION BUSINESS ITEMS MEETING DATE 08/05/2024 ITEM: Review of EDA owned Properties DEPARTMENT: Community Development BY/DATE: Mitchell Forney, 7/31/2024 BACKGROUND: At the last EDA meeting staff had put together an internal GIS tool for the EDA that highlights City and EDA owned properties. While this tool is not ready to be shared on the website the list of relevant properties can be found below. Most of the homes purchased by the EDA have been purchased via the Commercial Revitalization Program. This program, established in 2017 utilized left over funds from the HRA’s management of Parkview villa to begin the process of revitalizing the City’s business corridors. This is completed through the purchase and demolition of nonconforming buildings on commercially zoned properties. Which are then held by the EDA until they can be resold for commercial use or can be combined with other commercial properties. Staff have brought forth this topic as at the last EDA meeting the commission did not have time to discuss. List of redevelopable City and EDA owned properties: (Does not include public properties such as parks, water retention ponds or lands held for a public purpose.) 4833 University Ave 4827 University Ave 841 49th Ave 4441 Central Ave 4416 Central Ave 941 44th Ave 1002 40th 230 40th Ave 3930 University Ave 3853 3rd St PIN 343024440013 PIN 343024440014 828 40th Ave 3982 VanBuren St 3841 Central Ave 3851 Central Ave 3853 Central Ave 31 Item 4. ECONOMIC DEVELOPMENT AUTHORITY AGENDA SECTION BUSINESS ITEMS MEETING DATE 08/05/2024 ITEM: 2025 EDA Budget Discussion DEPARTMENT: Community Development BY/DATE: Mitchell Forney, 8/1/24 BACKGROUND: Each year the EDA sets its own budget for programs, operations, and staff. As Budget season heats up, staff wanted to circle back with the EDA on its upcoming budget to ensure it reflects the goals and priorities of the EDA. This discussion goes hand in hand with the EDA/City owned properties discussion along with updates on the new affordable housing trust fund . Staff would like to present the current budget structure, update the EDA on recent changes, and propose shifting one of the year-to-year budget priorities. Sources and Uses The EDA currently receives funding from the following sources: EDA Levy: the EDA levy is a separate tax levy that is statutorily regulated and limited by the state. The EDA specifically utilizes this levy to pay for EDA operating expenses, a portion of the Community Development Director position, and the entirety of the Community Development Coordinator position. Currently, before COLA increases are factored in, the EDA levy is budgeted for $306,600. With a maximum allowed by the state of $419,402. HRA Levy: the HRA levy is also a separate tax levy that is statutorily regulated and limited by the state . The HRA levy is maintained by the EDA since the HRA remitted all its powers and duties to the EDA. The EDA utilizes the HRA levy to fund its grant programs and commercial revitalization program. The Façade and Fire suppression Grant programs are levied for $50,000 and $60,000 respectably. With $200,000 going to the Commercial Revitalization program. Over the last few years, the Home Energy Squad Buy Down was pulled from extra fund balances. This year staff are adding it to the HRA levy so that it has a permanent funding source. This brings the HRA levy expenditures to $315,000 total with a maximum allowed by the state of $427,959. Anoka County HRA Levy: The ACHRA levy is an economic development focused levy administered by Anoka County on behalf of the City. Part of this levy is held by the County in order to administer county wide programs and grant funding opportunities. The remainder is then placed in an account to be accessed by the City whenever qualifying projects emerge. The most recent use of this fund was for the purchase and demolition costs associated with 3851-3853 Central Ave. The ACHRA Levy brought in $148,099.63 to the City’s account in 2024. Excluding the 39th and Central project costs, the City currently holds $374,454.62 in its account with the ACHRA levy. Affordable Housing Trust Fund: Currently the EDA operates the affordable housing trust fund for the City . Currently the trust funds only source of income is through the receipt of state Local Affordable Housing AID funds (LAHA). Initially the state had estimated that Columbia Heights would receive around $280,000 in 2024. In July staff were notified that the actual amount to be distributed to Columbia Heights was $142,878.20. The first half payment was received on July 20th. The revised number is lower due to the tax only being in effect for 32 Item 5. Page 2 7 months in 2023 and the state’s modeling being wrong. The state will continue to monitor and revise its estimates going forward. The EDA can easily maintain the status quo but due to recent conversations with the EDA and the City receiving less LAHA funding staff are recommending a slight shift in the priorities of the EDA. At the last EDA meeting the EDA spoke extensively about expanding the number of housing programs beyond a single-family rehabilitation loan program. Community Development staff still hold true to the goals of the Commercial Redevelopment Program but understand that housing is currently one of the largest barriers to regional economic development. Staff’s recommendation is to shift the current budget of $200,000 from the Commercial Revitalization Program to the Affordable Housing Trust Fund or other housing initiatives in general. With the County and City both looking at general levy increases, staff believe that not increasing the EDA’s levies is a way to limit the increased tax burden on residents and businesses. The EDA can also maintain the Commercial revitalization program using the ACHRA levy for purchase and demolition projects. Staff are open to all options when considering funding the EDA’s priorities and are prepared to assist in the discussion. During the September EDA meeting the EDA will officially pass its 2025 budget resolutions. Staff are looking for guidance as we prepare for final approval. ATTACHMENT(S): 1. LAHA Distribution Numbers 33 Item 5. CITY FINAL DISTRIBUTION FACTOR CERTIFIED 2024 LOCAL AFFORDABLE HOUSING AID Andover 0.0061 $98,152.49 Anoka 0.0073 $118,154.37 Apple Valley 0.0176 $282,732.21 Blaine 0.0182 $292,706.63 Bloomington 0.0352 $567,427.48 Brooklyn Center 0.0117 $188,983.33 Brooklyn Park 0.0288 $464,128.62 Burnsville 0.0252 $405,820.74 Champlin 0.0065 $103,882.47 Chanhassen city 0.0079 $126,855.46 Chaska 0.0081 $130,038.78 Columbia Heights 0.0089 $142,878.19 Coon Rapids 0.0221 $355,471.16 Cottage Grove 0.0078 $125,476.02 Crystal 0.0079 $127,279.90 Eagan 0.0215 $346,610.91 East Bethel 0.0016 $25,466.59 Eden Prairie 0.0167 $268,672.53 Edina 0.0211 $339,342.32 Farmington 0.0055 $88,549.46 Forest Lake 0.0074 $118,578.81 Fridley 0.0102 $163,516.74 Golden Valley 0.0085 $137,095.15 Ham Lake 0.0038 $61,066.76 Hastings 0.0071 $114,387.44 Hopkins 0.0107 $172,642.26 Hugo 0.0037 $59,740.38 Inver Grove Heights 0.0124 $200,443.29 Lake Elmo 0.0030 $48,810.97 Lakeville 0.0142 $229,464.59 Lino Lakes 0.0055 $88,284.18 Little Canada 0.0047 $75,020.33 Maple Grove 0.0165 $265,701.43 Maplewood 0.0138 $221,506.29 Mendota Heights 0.0027 $43,876.81 Minneapolis 0.2033 $3,274,101.65 Minnetonka 0.0200 $321,515.71 Mounds View 0.0044 $71,412.57 New Brighton 0.0089 $142,719.02 New Hope 0.0113 $181,714.74 North St. Paul 0.0053 $84,570.30 Oakdale 0.0111 $178,743.63 Plymouth 0.0225 $363,111.14 2024 Local Affordable Housing Aid: Cities 34 Item 5. CITY FINAL DISTRIBUTION FACTOR CERTIFIED 2024 LOCAL AFFORDABLE HOUSING AID 2024 Local Affordable Housing Aid: Cities Prior Lake 0.0068 $109,824.67 Ramsey 0.0074 $118,897.15 Richfield 0.0145 $233,602.92 Robbinsdale 0.0064 $103,298.86 Rogers 0.0020 $32,204.63 Rosemount 0.0053 $85,047.80 Roseville 0.0131 $211,213.54 Savage 0.0091 $146,432.90 Shakopee 0.0132 $212,327.70 Shoreview 0.0081 $130,516.28 South St. Paul 0.0075 $120,170.48 St. Louis Park 0.0205 $330,429.02 St. Paul 0.1338 $2,154,208.31 Stillwater 0.0059 $94,703.88 Vadnais Heights 0.0050 $80,007.54 Victoria 0.0012 $19,046.89 Waconia 0.0046 $73,322.56 West St. Paul 0.0111 $178,000.86 White Bear Lake 0.0095 $152,905.66 Woodbury 0.0188 $301,991.32 TOTAL 1.0000 $16,104,806.82 35 Item 5. ECONOMIC DEVELOPMENT AUTHORITY AGENDA SECTION BUSINESS ITEMS MEETING DATE 08/05/2024 ITEM: Fire Suppression Grant Amendment Discussion DEPARTMENT: Community Development BY/DATE: Mitchell Forney, 8/1/24 BACKGROUND: Recently, David’s Christian Learning Center (DCLC) located in St. Matthew Lutheran Church, reached out to the Community Development Department interested in the EDA’s Fire Suppression Grant Program. As it stands, DCLC would not be able to utilize the grant because the building is located at 4101 Washington St which is located outside of the program’s geographic boundaries. Staff have brought forth the item for discussion by the commission. There are multiple routes that can be considered. Option one, maintain the program as is, limiting the program to only the City’s main commercial corridors. Option two, amend the program to allow for childcare businesses in any district. Option three expand the program to reach all areas of the City. Staff’s recommendation is option two, amending the program to add childcare businesses in any section of the City as eligible. With current market conditions, the number one barrier to residential growth and economic development is the high cost of childcare. Investing in childcare facilities not only assists in lowering the cost of childcare but also directly contributes to the City’s workforce. These actions can be made via motion so any edits the EDA would like to make can be drafted in real time. Attached is the email staff received and a draft of the changes recommended by staff. RECOMMENDED MOTION(S): MOTION: Move to amend the Fire Suppression Grant Program Guidelines adding childcare businesses to the eligible applicant’s section. ATTACHMENT(S): 1. Draft Fire Suppression Grant Guidelines Edits 2. DCLC Email 36 Item 6. FIRE SUPPRESSION GRANT, PROGRAM COMMUNITY DEVELOPMENT – FIRE SUPPRESSION GRANT, PROGRAM REVISED AS OF: 2/6/2023 PROGRAM OVERVIEW The Columbia Heights Economic Development Authority (the “EDA”) has created and now offers the Fire Suppression Grant Program (the “Grant Program”). As part of the City’s Business Retention and Expansion Strategy, the EDA has identified the need to bolster public safety and improve the commercial stock within the city. Setting out to encourage the revitalization, rehabilitation, and restoration of older, underutilized commercial spaces within the City of Columbia Heights (the “City”). Many of the older commercial structures throughout the city lack basic fire suppression systems or infrastructure for said systems. As new businesses seek to develop in the city, they are limited by code requirements for the instillation of fire suppression systems. These improvements are very costly making it difficult for small business to enter and utilize many of the City’s older and smaller commercial spaces. The Fire Suppression Grant, Program seeks to assist businesses and property owners in partially alleviating the costs of installing fire suppression systems. The Grant Program reimburses businesses, tenants, or property owners for eligible improvements up to fifty percent (50%) of the total project cost; for a maximum reimbursement of $30,000. The applicant is reimbursed once the improvements are completed in accordance with program guidelines. The building or business owner must apply for, be approved for, and sign a grant agreement before doing the work in order to receive the grant. ELIGIBLE APPLICANTS  Applicants must be an owner or a tenant, with approval from the property owner(s), of a commercial or industrial property, or a 501(c)(3) organization in the City of Columbia Heights (the “City”) located along 37th Avenue NE, 37th Place NE, 40th Avenue NE, University Avenue NE, or Central Avenue NE between 37th and 53rd Avenue NE. Additionally, applicants can qualify if they are the building owner or operator of a licensed non-residential based childcare facility.  Applicants must be in good standing with the City, including but not limited to, legally operating with proper licensure; and current on property taxes, utility bills, and special assessments.  No new construction will be considered under this program.  The use of the building must be commercial or mixed-use ELIGIBLE IMPROVEMENTS Fire safety improvements must be completed by a licensed contractor and comply with all permitting and inspection requirements:  Design & Engineering costs directly associated to the fire sprinkler system installation  Construction and instillation of a fire line from the main water line to the building 37 Item 6. PAGE 2 OF 3  Fire sprinkler system equipment/installation  Associated fire alarm systems/installation in conjunction to a fire sprinkler system Please note: Labor costs of a contractor, including necessary design work are eligible costs for reimbursement but cannot exceed 10% of the construction costs. Required Application Documents Required Application Materials:  A complete application sent to the attention of the Columbia Heights Economic Development Authority at following location: 590 40th Ave NE, Columbia Heights, MN 55421  Proof of ownership or signed letter from the property owner acknowledging the scope of work and giving the renter permission to apply for the grant and to complete the proposed work.  A detailed scope of work  Electronic copy of drawings or designs  Submit 2 or more competitive proposals from licensed and bonded contractors. These proposals should give detailed information about the work to be done, the costs, and the project completion schedule. Any contractor that has submitted a competitive detailed estimate may be used. Contractors cannot be changed unless new proposals have been submitted and approved by the EDA.  Other supporting documents may be requested by staff or the EDA. APPLICATION PROCESS 1. Applications will be open and accepted until the initial allocation of funding is exhausted. 2. Upon the Receipt of a complete application Community Development staff will review the planned project with the building official and fire department prior to bringing it before the EDA. During the review staff may request more information or documents related to the project 3. After the EDA’s decision applicants will be notified via email correspondence. A Grant Agreement must be approved and signed before commencement of any improvements. 4. Once the Grant Agreement is executed the Recipient of the grant, may begin the project improvements, the Grantee is responsible for obtaining all necessary permits and inspections throughout the process. 5. The grant recipient or its contractor must commence the improvements sixty (60) days after an executed Grant Agreement. The project specified in the agreement must be completed within ten (10) months after the signing of the agreement. 6. Once the project is complete, the grant funds will be disbursed for reimbursement to the applicant after all the following pieces of information have been submitted: a. Proof of Final Inspection by the Building Official and fire department b. A Copy of the Final Invoice Received from the Contractor c. Before and After Photographs d. Proof of Payment to the Contractor (i.e. receipt, invoice, etc.) e. Copies of all applicable permits ADDITIONAL REQUIREMENTS 38 Item 6. PAGE 3 OF 3  Grants will only be awarded for projects that lead to the installation of a complete fully functioning fire suppression system. Installation of a main line attachment without an immediate plan for the installation of a fire suppression system is also prohibited.  If costs exceed the original estimates or exceed the maximum of the program, the property owner or tenant will be responsible for the full amount of the excess. The EDA cannot reimburse more than the total amount specified in the Agreement.  Any work commenced prior to the signing of the GRANT Agreement will not be eligible for reimbursement funding. 39 Item 6. 1 Mitchell Forney From:K K <karriekikeh@gmail.com> Sent:Tuesday, July 23, 2024 5:23 PM To:Mitchell Forney Subject:Re: Fire Suppression Program Thank you so much Mitch! Let me know if I can provide any additional information ahead of your 8/5 meeting. Karrie On Tue, Jul 23, 2024 at 11:36 AM Mitchell Forney <MForney@columbiaheightsmn.gov> wrote: Karrie, I am just emailing in response to your email listed below. Staff are open to the idea and will bring it for discussion to the EDA at their August 5th meeting. We will talk with them to see if they are interested in expanding the location parameters of the program with the caveat that it would also open the program up to a larger variety of properties as well. I will keep you updated on how the conversion goes. Thanks, Mitch David's Christian Learning Center (DCLC) operates out of St. Matthew Lutheran Church at 4101 Washington St. DCLC operates as a non- profit community service under St. Matthew's 503(c) umbrella. In effort to expand our program and access to affordable daycare in the Columbia Heights community a Fire Marshal inspection was carried out last fall. Several significant violations were noted. The violations apply not only to our proposed expansion space, but also our existing operational space. Our church is unable to fund the work required to 40 Item 6. 2 address the violations and are forced to consider the reality of shutting our doors. We are aware of your Fire Suppression Grant (Pilot Program) and would like your consideration to apply.1) The 2022-2023 time period has passed, is grant funding still available?2) The Grant overview indicates property must be along 37th Ave, 40th Ave, University Ave or Central Ave between 37th & 53rd Ave. Our building is located on the corner of 41st Ave and Washington St - one block outside of your location requirements. Can exception be made for our application?We're in the process of hiring an architect to complete a fire and life safety report for our building; we will immediately start the bid process to complete the required work following receipt. In the meantime, as we the weigh options and difficult decisions ahead of us, I appreciate your feedback to the questions noted above.Please feel free to contact me for additional information!Karrie Kikeh Mitchell Forney | Community Development Coordinator City of Columbia Heights | Community Development Department 3989 Central Avenue NE | Columbia Heights, MN 55421 mforney@columbiaheightsmn.gov 763-706-3674 Disclaimer: Information in this message or attachment may be government data and thereby subject to the Minnesota Government Data Practices Act; may be subject to attorney-client or work product privilege; may be confidential, privileged, proprietary, or otherwise protected. The unauthorized review, copying, retransmission, or other use or disclosure of the information is strictly prohibited. If you are not the intended recipient of this message, please immediately notify the sender of the transmission error and then promptly delete this message from your computer system. 41 Item 6.