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HomeMy WebLinkAbout02.03.2025 EDA Meeting ECONOMIC DEVELOPMENT AUTHORITY City Hall—Shared Vision Room, 3989 Central Ave NE Monday, February 03, 2025 5:00 PM MINUTES The meeting was called to order at 5:00 pm by President James. CALL TO ORDER/ROLL CALL Members present: Connie Buesgens; Laurel Deneen; Rachel James; Amada Márquez-Simula; Marlaine Szurek Members absent: Lamin Dibba, Justice Spriggs Staff Present: 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 January 6, 2025. 2. Approve financial reports and payment of bills for December 2024 – Resolution No. 2025-04. Motion by Deneen, seconded by Buesgens, to approve the Consent Agenda as presented. All ayes of present. MOTION PASSED. RESOLUTION NO. 2025-04 A RESOLUTION OF THE ECONOMIC DEVELOPMENT AUTHORITY OF COLUMBIA HEIGHTS, MINNESOTA, APPROVING THE FINANCIAL STATEMENTS FOR THE MONTH OF DECEMBER 2024 AND THE PAYMENT OF THE BILLS FOR THE MONTH OF DECEMBER 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 December 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 February 03, 2025 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 3rd of February Offered by: Laurel Deneen Seconded by: Connie Buesgens Roll Call: All ayes of present. MOTION PASSED. President Attest: Secretary BUSINESS ITEMS 3. 2025 EDA Goal Setting: Session II Voight reported at the EDA’s January meeting, staff led the Commission in a two-part interactive goal-setting exercise. During the first part of the activity, commissioners and a staff representative each suggested three or four ideas – initiatives, strategies, or topics – that they would like the EDA to focus on in 2025. In the second part of the exercise, each Commissioner cast three votes to identify their priorities from the collected list of suggestions. Following the meeting, staff compiled the full list of ideas and tallied the votes. Voight explained through this activity, the EDA defined and prioritized four focus areas for 2025: 1. Central Ave (revitalization, placemaking, and quality of life) 2. Business (support, outreach, and grants) (tie) 2. Neighborhood/Housing (revitalization) (tie) City of Columbia Heights MINUTES February 03, 2025 EDA Meeting Page 3 4. “Big Sites” (redevelopment) Voight mentioned that based on the focus areas defined by the Commission and on the specific strategy and program suggestions Commissioners made during the activity, staff have prepared a list of draft 2025 goals for the EDA’s consideration. The goals listed below will inform the creation and execution of the work plan for Community Development staff. In doing so, they will help match EDA priorities with available resources. Certain goals are specific, while others are more general; while developing this list, staff worked to capture the ideas put forth by the Commission while leaving space for additional opportunities. 1. Central Ave a. In alignment with City Council citywide goals for public art, develop and launch a Central Business District public art program. b. Facilitate placemaking along and near Central Avenue, taking into consideration existing program-based opportunities and upcoming MnDOT-led street redevelopment. 2. Business a. Create initiatives to increase the City’s interactions with and promotion of the local business community. b. Update City grant programs to ensure they provide beneficial and valuable support to businesses. 2. Neighborhood/Housing a. Review, revise, and continue to administer the EDA’s Commercial Revitalization Program to address substandard and non-conforming housing stock. b. Establish and implement an allocation plan for the City’s Affordable Housing Trust Fund. 4. “Big Sites” a. Advance redevelopment of EDA-owned properties. b. Promote and champion opportunities for major local redevelopment sites. i. Marketing ii. Outreach to developers iii. Track progress in 2025 Voight stated it is important to note that staff will address work plan items in order of the EDA’s chosen priorities as much as possible, but some initiatives may be shifted due to external timelines (for example, funding distribution dates). Staff will also take advantage of opportunities to build momentum by completing projects that rely solely on internal processes, and that can have an immediate impact on the community (for example, revisions to existing grant programs). In addition to guiding staff and the Commission in their daily work, this shared framework will provide a way of looking back at the end of the year, assessing progress, and evaluating priorities for the future. Questions/Comments from Members: Buesgens suggested adding the Central Avenue updated design guidelines to the goals since there could be some roadblocks with the ideas the EDA may have if the guidelines are not included. James mentioned that it was on the Planning Commission's agenda to update the 2022 design City of Columbia Heights MINUTES February 03, 2025 EDA Meeting Page 4 guidelines. She mentioned that streets look more attractive when businesses are able to have the freedom with guidance to personalize their spaces. Deneen added that it would be good timing since the 2050 Comprehensive Plan will be developed. Buesgens asked the commissioners if they agreed that the Central Avenue design guidelines should be included. James mentioned that the design guidelines make sense to come from the Planning Commission to the Council. Forney mentioned that the design guidelines are more of a planning document that is required of businesses. The Planning Commission will be working on the design guidelines during the Planning Commission meeting. James mentioned that the pedestrian alley behind the ramp could be a site for art or revitalization and included in the Central Avenue goal. She wondered if the goal would be included under item A or B for the Central Avenue goals. Voight replied that it could fit under City Grant Programs under the Business category. If it is in reference to a specific space then it could be considered under the Central Avenue goal. Márquez-Simula wondered if the parking lot behind the County building could be included in the place-making since there could be a pollinator garden or a bench included. Voight replied that the idea has been recorded and will make sure to refer back to it. James read a comment that Spriggs passed on that said “Local art has been a goal of ours for many years and he is super excited to see the creative ideas and strong investment in the item.” Forney noted that the Community Development Department will be working on community art. He mentioned that they want to identify the EDA’s role in it and the business-centric goals that go along with it. James asked if it would be a goal to discuss the fire suppression and façade grants in the future. Voight agreed that it would be. Buesgens added a suggestion of finding a business that is good at designing facades and adding funds to help pay for signs. James asked to clarify if “review and revise and continue to administer the EDA’s Commercial Revitalization Program to address substandard and non-conforming housing stock” under the Neighborhood Goal/Housing goal including expanding the program. Forney replied that it would include a discussion to determine if the program should be expanded or if funds should be used in partnership with Habitat for Humanity or other neighborhood stabilization programs. Buesgens suggested including a timeline for when the EDA would discuss expanding it for the whole block. The EDA could pick one or two blocks for redevelopment in the future and initiate the plan to begin purchasing the homes on the other side of the block. She added that the EDA needs to start discussing which blocks make sense. James read a note from Spriggs that said “I would be in favor of expanding the commercial revitalization program beyond just the Central Avenue corridor to take advantage of good locations that come up as prime redevelopment.” City of Columbia Heights MINUTES February 03, 2025 EDA Meeting Page 5 Buesgens asked if the EDA is going to consider purchasing a rental property that could be brought to the Council to vote since there are relocation costs. She mentioned years ago the Council had an opportunity to purchase a large portion of land and declined to do it due to relocation costs. She added that the relocation costs were pennies compared to what the City could have made for redeveloping the land. Forney mentioned that it is not policy to bring it to the Council and that staff determine if relocation costs are too high before bringing it to the EDA. Forney mentioned that there is a lot behind Taco Bell that would make the most sense to include housing like a duplex since Taco Bell will not be moving anytime soon and it would not make sense for the City to redevelop. Chirpich added that the lot is currently zoned for one to two families. Buesgens noted that the United States received a lot of lumber from Canada and wondered if developers were worried about being able to finish projects due to the tariffs. Forney replied that expectations are that the prices for building will increase due to rebuilding after the Los Angeles fires and the tariffs. James mentioned her appreciation for tracking the progress under “promote and champion opportunities for major local redevelopment sites” in the fourth goal. Voight noted that Spriggs mentioned the idea of a potential small business loan program. 4. Affordable Housing Trust Fund Sources and Uses Planning Voight reported in 2024, the City Council designated the EDA as the sole administrator of the City’s Affordable Housing Trust Fund. Currently, the Affordable Housing Trust Fund contains $142,878.18 from the 2024 local affordable housing sales tax issuance. Establishing and implementing an allocation plan for the Affordable Housing Trust Fund is one of the EDA’s 2025 goals. Voight noted that based on the EDA’s neighborhood and housing revitalization goals, staff have developed a recommendation to use existing and anticipated Trust Fund resources while pursuing additional funding streams. This recommendation includes some actions to take now and others to take later this year. Voight stated first, the sales tax Trust Fund resources would be used to develop and launch a program to support Naturally Occurring Affordable Housing (NOAHs) in the city of Columbia Heights. Since local affordable housing sales tax issuance occurs annually, a NOAH program established using this money would already have a reliable, regular financial foundation. Voight mentioned in addition, in order to diversify the Trust Fund’s sources and uses, staff would also pursue two 2025 grant opportunities through the Minnesota Housing Finance Agency (MHFA), as described below: the Community Stabilization Program and the Local Housing Trust Fund Grants Program.  MHFA’s new Community Stabilization Program is specifically geared toward preserving NOAHs. Although little information has been published about this grant program, it is expected to launch sometime in 2025. A grant received through this program could be used City of Columbia Heights MINUTES February 03, 2025 EDA Meeting Page 6 to bolster the new NOAH initiative’s finances. Upon announcement of the program’s opening date and confirmation that its guidelines would allow funding distribution through the Trust Fund, staff would bring more detailed information to the EDA for discussion, in preparation for an application  MHFA’s new Local Housing Trust Fund Grants Program is currently accepting notices of intent to apply for 2025 grant funding. Awards received through this program would funnel directly into the Trust Fund and could be used for a broad range of actions related to the preservation, development, and creation of new affordable housing. For example, these funds could contribute to funding in lieu of TIF, to purchasing and redeveloping substandard and non-conforming single-family houses, or to expanding partnerships with agencies like Habitat for Humanity. These funds must be used within five years and must only be used for households at or below 115% of the State median income. Voight stated the Community Stabilization Program is not yet open for applications. However, the EDA could already move forward with an application for the Local Housing Trust Fund Grants Program. One key element of the Local Housing Trust Fund Grants Program is that it requires a match based on new public revenue. MHFA defines new public revenue as, “local income that is committed to the Local Housing Trust Fund on or after June 29th, 2021” (MHFA program guide). Grantees may be eligible to receive matching funds up to a total MHFA contribution of $225,000. New public revenue in an amount up to $150,000 may be matched with grant funds at 100%. Additional new public revenue of more than $150,000 and up to $300,000 may be matched with grant funds at 50%. For example, a $300K City contribution could earn a $150K match, plus up to $75K additional match, for a total MHFA contribution of $225K and a total grant budget of $525K. Voight noted staff would recommend using existing EDA financial reserves in Fund 408 for the project match dollars. The Fund 408 reserve currently holds $510,000. In order to apply for Local Housing Trust Fund Grants Program funding, the City must complete and submit an Intent to Apply by 5:00 p.m. on February 11th. Once the Intent to Apply has been submitted, MHFA will invite potential applicants to technical assistance sessions to learn more about the application process. The Request for Proposals application will then open on Wednesday, February 12th, and close on March 19th. Voight mentioned at this time, staff ask that the EDA provide feedback on this general proposal of Affordable Housing Trust Fund sources and uses. Furthermore, staff ask that the EDA decide whether staff should proceed with an application for the MHFA Local Housing Trust Fund Grants Program. If in favor of an application, staff would ask that the EDA agree upon the funding source (for example, Fund 408) and estimated dollar amount (City match) to list on the Intent to Apply form. Based on the EDA’s direction today, staff would also proceed with any other grant administration actions necessary between now and the March EDA meeting. Questions/Comments from Members: Buesgens stated she was in favor of applying for both grants as long as the EDA was not losing money. She asked if NOAHs applied to single families and multi-families. Voight replied that the City of Columbia Heights MINUTES February 03, 2025 EDA Meeting Page 7 information staff have received this year is that it is opening this year. There is a certain amount of money that has been set aside with the State legislator for the MHFA to use towards NOAHs. She added that she is unaware if there is a restriction on the number of units. She noted staff would look into it for the Community Stabilization Program. James mentioned she was in favor of maximizing the matching funds if there is money in the redevelopment 408 fund. She asked if the funds could be used for loans for homeowners who were trying to maintain NOAH. Forney replied that the idea had been discussed and staff decided that the City did not have enough funding to do two programs but could branch out when there is more funding available. He asked what program the EDA would like to prioritize for the year. Buesgens replied that she would like to focus on NOAHs. There are NOAHs in the City that are 60 years old and are in need of help. She mentioned in California many mom-and-pop multi-family rentals were bought out by investors. The investors increased the rent and many people were left on the street because they could not afford the rent. She expressed her fear of investors doing the same thing to the City. She suggested finding ways that the City could incentivize landlords to fix up rental properties in order to keep the rents affordable. James asked if the EDA would like to set up a NOAHs program. The EDA agreed that they would like to set up a program. James asked the EDA if they would want to proceed with an application for the local housing trust fund grants program. The EDA agreed that they would like to proceed. James asked the EDA where they would like to take the funds from and how much to put into the program. Forney reviewed the staff’s recommendation for using the funds in the 408 fund. The money would not come from the current EDA budget or an increase in levy taxes. It would be funds that the EDA had levied for in the past that have not been spent yet. There are currently $1,510,000 in the EDA fund 408. There is a $1,000,000 loan from the EDA to the City for the purchase of the JBS lot. Once the Public Works development gets picked up, the EDA will receive that loan money back. Therefore, the EDA currently does not have access to the money so the staff recommends to dip into the reserve of the 408 fund to pay for the program. The EDA agreed with the staff’s recommendation. James asked the EDA what dollar amount they would like to put into the fund. She mentioned that Spriggs suggested using $300,000 to end with a total of $525,000. The EDA agreed. BUSINESS UPDATES Voight mentioned Business of the Year applications are opened. The City has received one application so far. The closing date for applications is March 31 st. Members of the EDA and elected officials may not nominate businesses but they can promote the program. Voight noted that the City has been selected to receive a SPAAR grant from the Saint Paul Area Association of Realtors. It was an application that staff submitted a few months ago. A grant amount of $1,500 came from the local chapter. She added that they will also be sending an application for a national grant which could be up to $7,000. City of Columbia Heights MINUTES February 03, 2025 EDA Meeting Page 8 Forney stated the new Community and Economic Development intern started last week and will be working on the work plan based on the goals that were developed during the meeting. He added that the intern hopes to attend a few EDA meetings. He added that staff received an email from the EDA’s attorney stating that the attorneys the City has been working with are going to be shifting to a different organization. Staff will see how that affects the EDA and will bring back their findings. ADJOURNMENT Motion by Buesgens, seconded by Márquez-Simula, to adjourn the meeting at 5:49 pm. All ayes. MOTION PASSED. Respectfully submitted, _______________________________ Sarah LaVoie, Recording Secretary 1 Emilie Voight From:Justice Spriggs Sent:Sunday, February 2, 2025 11:13 PM To:Emilie Voight; Mitchell Forney Cc:Rachel James; Aaron Chirpich Subject:2/3/2025 HRA and EDA Meetings Community Development Team and EDA/HRA President, Wanted to share my thoughts on the upcoming HRA and EDA meetings since I will be unable to attend this month. HRA Meeting - Open to having an officer position if appointed, but do not feel strongly about it. EDA Meeting - Goal Setting: All of these ideas are extremely exciting and important! Out of all the ones listed, a few jump out to me the most - public art, City grant/loan programs, and Commercial Revitalization Program. I also think the Affordable Housing Trust Fund is a major one but that will be talked about more below. Public art has been a goal of many of ours for years, and I am super excited to see the creative ideas that will come of a strong investment in this! For the Commercial Revitalization Program, I am in favor of extending this beyond the Central Ave corridor to continue taking advantages of good locations that would be prime for redevelopment. I am not sure if this is something we have explicitly talked about as a Council, but I really do like the idea of having some sort of "Small Business Loan," whether that be this year or in the future. It came up in discussion I had with Mitch and Emily on Friday, and I think it could be a great program for the EDA - it would allow for businesses to have more flexibility on how to use the funds, provide them the money up front instead of other programs that may provide reimbursement (but the business would need to have the capitol in the first place to make the purchase, which could be a challenge), and the EDA would also recoup a bit of the cost from the low interest rate attached. - Affordable Housing Trust Fund Sources and Use of Planning: So many ways to go about this to start! And so many great ideas brought by staff and Council. After reading the proposal in the packed by staff, I am in full support of their idea to create a NOAH program as the major first step and then also apply for the two grants discussed. I am also in favor of applying with the maximum amount to the Trust Fund Grants Program to see if we could end up with a pot of money of $525,000 to use broadly. In my opinion, this would a great opportunity for the EDA to attack the affordable housing crisis in Heights, and I love the fact that this portion of funds (if awarded) would be available for five years. 2 Let me know if there are any questions! Justice Justice Spriggs, M.D. (he/him) I Council Member - City of Columbia Heights 3989 Central Ave NE, Columbia Heights, MN, 55421 Email: jspriggs@columbiaheightsmn.gov Direct: 763-706-3617 I Main: 763-706-3600 http://columbiaheightsmn.gov *Please note: Due to my schedule and family/work balance, I often email outside of typical business hours. Please do not feel pressured to respond outside of your own working pattern. Sign up for CodeRED Alerts for the City of Columbia Heights here. Follow the City of Columbia Heights on Social Media! 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