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HomeMy WebLinkAbout12.02.2024 EDA Meeting ECONOMIC DEVELOPMENT AUTHORITY City Hall—Council Chambers, 3989 Central Ave NE MONDAY, DECEMBER 02, 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: Kt Jacobs; Rachel James; Amada Márquez-Simula; Marlaine Szurek Members absent: Connie Buesgens; Justice Spriggs, Lamin Dibba Staff Present: Andrew Boucher, City Planner; Mitchell Forney, Community Development Director; Aaron Chirpich, City Manager; Sarah LaVoie, Administrative Assistant; Emilie Voight, Community Development Coordinator PLEDGE OF ALLEGIANCE CONSENT AGENDA 1. Approve the minutes of the regular EDA Meeting of November 04, 2024. 2. Approve financial reports and payment of bills for October 2024– Resolution No. 2024-28. Motion by Márquez-Simula, seconded by James, to approve the Consent Agenda as presented. All ayes of present. MOTION PASSED. RESOLUTION NO. 2024-28 A RESOLUTION OF THE ECONOMIC DEVELOPMENT AUTHORITY OF COLUMBIA HEIGHTS, MINNESOTA, APPROVING THE FINANCIAL STATEMENTS FOR THE MONTH OF OCTOBER 2024 AND THE PAYMENT OF THE BILLS FOR THE MONTH OF OCTOBER 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 October 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 City of Columbia Heights MINUTES December 02, 2024 EDA Meeting Page 2 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 2nd day of December, 2024 Offered by: Amada Marquez-Simula Seconded by: Rachel James Roll Call: All ayes of present. MOTION PASSED. President Attest: Secretary BUSINESS ITEMS 3. Façade Improvement Grant Report for Doña Mary located at 4929 Central Ave Voight reported the storefront used to be occupied by the Insty-Prints print shop. The new tenant will be Doña Mary, an Ecuadorian fast-food restaurant. The applicant is applying for grant funds for new signage on the façade of the structure and new panels for the existing pylon sign. The applicant was able to receive one bid for the signage, amounting to $9,250, setting them up for a grant amount of $4,625. They have received authorization from the property owner to install new signage and are hoping to open their restaurant before the end of 2024, so they are motivated to complete the work quickly. Community Development Staff recommend funding the signage project in full as the new signage will reflect the change in business occupancy and will help attract customers. In 2024, the EDA has approved 9 façade improvement grant applications for a total of $42,127 approved, with an additional $4,625 being requested at this meeting. This leaves $3,248 in Façade Improvement Grant funds remaining from the initial annual budget of $50,000. City of Columbia Heights MINUTES December 02, 2024 EDA Meeting Page 3 Motion by James, seconded by Márquez-Simula, to waive the reading of Resolution No. 2024-29, there being ample copies available to the public. All ayes of present. MOTION PASSED. Motion by James, seconded by Márquez-Simula, to approve Resolution No. 2024-29, a Resolution of the Columbia Heights Economic Development Authority, 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 Doña Mary, LLP . All ayes of present. MOTION PASSED. RESOLUTION NO. 2024-29 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 DOÑA MARY, LLP 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 storefronts, 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 Doña Mary, LLP. 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 City of Columbia Heights MINUTES December 02, 2024 EDA Meeting Page 4 Passed this 2nd of December, 2024 Offered by: Rachel James Seconded by: Amada Marquez-Simula Roll Call: All ayes of present. MOTION PASSED. President Attest: Secretary 4. Saint Paul Area Association of Realtors (SPAAR) Key Communities Grant Application Discussion Voight reported the Saint Paul Area Association of Realtors (SPAAR) awards annual Key Communities grants of up to $1,500 to Twin Cities Metro area cities for programs or projects related to homeownership, place making, walkability, and similar themes. The program’s purpose is to build relationships between SPAAR members and communities. 2025 will be the fifth year of the program. Once grantees are chosen, SPAAR members and staff work with local stakeholders to determine which city-led initiative will be funded in each community and, in addition, to help identify other relevant grants and to provide technical support as applicable. Applications are due at 5 p.m. on Friday, December 13, 2024. Voight mentioned that Staff would like to know if the EDA was interested in applying for the grant and if there were any particular projects the EDA was interested in doing. She noted that James sent in ideas including an educational program, multiple language resources for homeownership, or making a Columbia Heights walking path including signage. She added that Spriggs sent in ideas including banners on Central Avenue, a home improvement booklet, and a business flyer that would have a list of local businesses in the community that could be included in the newsletter. She asked the EDA if they were interested in applying for the grant and what projects they would be interested in. Questions/Comments from Members: Márquez-Simula expressed her support. Jacobs mentioned she liked the idea regarding the business booklet. She suggested having an envelope with a list of businesses and organizations in the City that could be given to new residents. Forney added that there could be a packet for new business owners that includes a packet of EDA grants and opportunities, the Chamber of Commerce, and other resources. Jacobs mentioned that Kiwanis has put up banners to honor those who serve in the military and would not want to see those taken down in the future. 5. EDA 2024 End of Year Review Voight reported Staff has prepared 2024 year-in-review summaries of EDA programs and activities, City of Columbia Heights MINUTES December 02, 2024 EDA Meeting Page 5 as well as a recap of the focus areas identified in the EDA’s March 2024 discussion of priorities and goals. She presented the end-of-year review: Façade Improvement Grant Program: - Applications: 10 applications were received in 2024, and 9 were approved, for a total of $42,127 approved out of a total program budget of $50,000. - Disbursements: 6 grants were disbursed, for a total of $28,762. - Pending: 1 grantee has completed project improvements and is preparing financial documents for disbursement. 1 grant application was submitted for the December 2nd EDA meeting and is still in review. - In addition, one 2023 grantee finished their project improvements and received their approved 2023 disbursement of $4,600. - No cameras were installed through this program in 2024. Fire Suppression Grant Program: No applications were received for this program in 2024, and no funds were disbursed. After community interest, however, at its August meeting , the EDA amended the Fire Suppression Grant Program guidelines to allow childcare businesses to qualify as eligible applicants. The childcare applicant that initiated this request is currently working with an architect to create a plan for remodeling their building. Home Energy Squad (in partnership with Center for Energy and Environment and Xcel Energy): In 2024, through September, the Market Rate Home Energy Squad conducted 13 visits, and the Low - Income Home Energy Squad conducted 8 visits. The City contributed financially toward 9 visits, for a total 2024 financial contribution of $435. Property Transactions: - Sale: 4243 5th Street NE to Habitat for Humanity - Transfer: of the library property to the City - Loan: to the City for purchase of 675 37th Ave NE - Purchase: 4416 Central Ave NE (through Commercial Revitalization program) - Deconstruction: 3851 Central Ave NE, 3853 Central Ave NE, 4416 Central Ave NE (for recycling and reuse, in partnership with Better Futures) - Demolition: 941 44th Ave NE, 3851 Central Ave NE, 3853 Central Ave NE, 4416 Central Ave NE Miscellaneous: - The City Council established a housing trust fund in May 2024 and delegated the administration of this fund to the EDA. - The EDA honored Heights Pizza Man as the 2024 Columbia Heights Business of the Year. Recap from March 2024 EDA Priorities Discussion: - The EDA indicated interest in utilizing Metropolitan Affordable Sales Tax funds (held in the housing trust fund) as follows: o Low-income home improvement loans o NOAH (naturally occurring affordable housing) loans ▪ Particular interest for focus on small multifamily buildings (fourplexes, etc.) City of Columbia Heights MINUTES December 02, 2024 EDA Meeting Page 6 o Affordable housing home ownership redevelopment projects o - The EDA indicated interest in modifying the Façade Improvement Grant Program to include: o Art elements o Landscaping elements such as permanent landscaping, rain gardens, and planting of native plants and trees - The EDA also proposed the following focus areas for future projects or programs: o Micro loans to help businesses with things like landscaping design, graphic design for websites or menus, or basic business support services like bookkeeping o Gap funding for businesses o Additional funding sources for art o Developing a list of local businesses and spotlighting/promoting it in the City’s communications o Directing prospective and existing small businesses to Anoka County’s Open to Business resources Additional July 2024 Update: In July 2024, the EDA received word that it would receive less Metropolitan Affordable Sales Tax funding than previously calculated. Staff continued down the route of preparing a program for low-income home improvement loans, working with CEE and Kennedy Graven to review the program’s legal framework and contracts. At the January 2025 EDA meeting, the EDA will further discuss how it would like to proceed. Questions/Comments from Members: James wondered if the EDA could rethink the fire suppression program since it has not been utilized all year. She added that she does not want to get rid of the program, but fire suppression is still too expensive even with the City’s grant. Forney agreed and suggested having one grant per year but it would provide more grant funds. Szurek asked where the funds would come from for the fire suppression grant. Forney replied that it is currently through the EDA budget but can discuss additional funds in the future. Jacobs mentioned surrounding communities provide funding and grants to help seniors in need of housing. She added that she hopes future Councils could think through how to help seniors in the community. The EDA agreed. Jacobs stated there should be discussion regarding affordable housing for seniors and not just younger people coming into the community. 6. Tax Increment Financing Districts Update Forney reported after receiving a request from a member of the EDA, Staff thought the December EDA meeting a great time to review the City’s current Tax Increment Financing Districts. Since these numbers are from 2023, there is a lag regarding the effects of 4d legislation on the districts and changes that were established in 2023. The tax estimates in Attachment 1 in the Agenda Packet are based off the 2023 numbers and are subject to change with the new 4d legislation. These estimates only take into effect the City’s estimated taxes. The estimates leave out any taxes that w ould be subtracted for fiscal disparities or special taxing districts. Forney mentioned for much of this review, Staff focused on the effect on tax capacity, which is a City of Columbia Heights MINUTES December 02, 2024 EDA Meeting Page 7 key factor in assessing the financial implications and revenue -generating potential of proposed changes or developments. Staff utilized tax capacity because it is the building block for all taxes levied on a property regardless of taxes levied by special districts or other entities. Attachment 4, Property Taxes 101, dives deeper into how property taxes are calculated. Staff can expand on the topic or answer any additional questions in person as property taxes are a very complex topic. Forney presented on each current TIF district within the city. Below are a few key notes on each district: University Ave Redevelopment: This district has been decertified but still holds pooled funds. Since the district was established prior to 1990 the district no longer has any revenue but can remain open for use of the pooled funds. City Wide Scattered Site: District is currently using its tax increment to pay back an interfund loan from the University Ave Redevelopment TIF District. This loan was utilized to purchase, demolish , and sell the property 4253 5th St to Habitat for Humanity. Crest View Real Estate Eq: District was decertified in June of 2023. Huset Park Area: The project has been completed and has a long time until the district’s liabilities are paid off. Central Value Center: Project was never started, and the district was decertified in 2021. 47th and Grand: Project is doing well and may be able to pay off its liabilities early depending on the effect of 4d on the district. NE Business Center: The project has just been completed and has a long time until the district’s liabilities are paid off. Alatus TIF District: The City has issued bonds for the mortgage of the project, but the project has not started. There are no revenues until the project pays off the mortgage and improvements to the site are made. 42nd & Jackson: Project was completed in 2023 so there is no data on the current tax capacity or district revenues. Questions/Comments from Members: Jacobs asked if the change in the legislature change how a city could determine how many years the TIF would be. Forney replied that the City still has the ability to do that. She mentioned that the TIF does not have to be over an extended amount of time and suggested the City continue to discuss how long each TIF should be. She added that the TIF should be relative to the project. Márquez-Simula asked Forney what the best way was to discuss the length of the TIFs. Forney City of Columbia Heights MINUTES December 02, 2024 EDA Meeting Page 8 replied in a goal-setting meeting. Forney mentioned that there is a possibility of using the Affordable Housing Trust Fund instead of TIF’s for the Reuter Walton project. Szurek expressed her concern regarding property taxes and wondered what the City would do to stop property taxes from increasing. Forney noted that the County increased taxes this year. Szurek mentioned many of her neighbors have junk in their yard and is worried that the City will turn into a trash City. Forney replied that administrative fines are utilized to help maintain a clean City. Szurek stated that no one is doing anything about it. Jacobs agreed and added that the Ordinances are in place but they are not enforced. Forney explained that courts are still full since Covid so the process is not running completely but the City is working towards having a smoother process. BUSINESS UPDATES Voight mentioned that Naturally Occurring Affordable Housing (NOAH) should have more information in January regarding funding and the application process. In the 2024 cycle, the funding was increased from $45 million to $70 million. Jacobs asked what the status was for the funding for the Public Works building. Forney replied that it is going through bonding through the State and will be brought up during the next legislative session. Forney mentioned that the Trust Fund Matching grant is on the same timeline as the NOAH grant. Forney reported that Habitat for Humanity is looking for an opportunity. The EDA was considering a house on Summit Avenue. The homeowner has passed away and donated the house to AS PCA. Staff are working with the ASPCA to try to purchase the home in order to demolish it and give it to Habitat for Humanity. Forney updated the EDA about projects in the City. The County’s HRA toured The Crestview project site that Anoka County purchased and concluded that the site needs to be demolished and affordable housing built on it. There is strong interest from a developer for the Medtronic site. Márquez-Simula asked if it was true that the Crestview location on Central Avenue and 42 nd Avenue was for sale. Chirpich that he heard something similar. Szurek wondered if the ownership had changed. Márquez-Simula mentioned that there is a city with deeply affordable housing buildings and has had problems with behavior. The city requires 24-hour security in the affordable housing buildings. She mentioned that it is something to consider for the City. Márquez-Simula noted that there are some buildings that have bright lights on the top of their buildings and the light is directed towards the street instead of down on the parking lot. She asked to consider how to eliminate the issue in the future for businesses. Jacobs added that there are residents who have similar lights and that something needs to be done with residents as well. Forney replied City of Columbia Heights MINUTES December 02, 2024 EDA Meeting Page 9 that the City can enforce how many foot candles are over the property line through Ordinances. Márquez-Simula asked for an update on “what’s legal” signs and temporary signs for businesses. Chirpich replied that City Planner Boucher has been pursuing enforcement action on several violations on Central Avenue. ADJOURNMENT Motion by Márquez-Simula, seconded by James, to adjourn the meeting at 5:58 pm. All ayes. MOTION PASSED. Respectfully submitted, _______________________________ Sarah LaVoie, Recording Secretary