Loading...
HomeMy WebLinkAbout09-02-2025 EDA Packet ECONOMIC DEVELOPMENT AUTHORITY City Hall—Shared Vision Room, 3989 Central Ave NE Tuesday, September 02, 2025 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 211 885 797 611 1 and passcode mh9ki7WK. For questions, please call the Community Development Department at 763-706-3670. 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. CALL TO ORDER/ROLL CALL PLEDGE OF ALLEGIANCE CONSENT AGENDA 1. Approve August 4th, 2025 Regular EDA Meeting Minutes. (pg. 3) 2. Resolution 2025-21 to Approve the Financial Reports and Payment of the Bills for July 2025. (pg. 16) MOTION: Move to approve the Consent Agenda as presented. BUSINESS ITEMS 3. Purchase of 4510 Taylor St NE. (pg. 30) MOTION: Move to waive the reading of Resolution 2025-24, there being ample copies available to the public. MOTION: Move to adopt Resolution 2025-24, a Resolution of the Columbia Heights Economic Development Authority, approving the purchase agreement between the Columbia Heights Economic Development Authority and Kirk Miller. 4. 2026 EDA Budget Approval. (pg. 47) MOTION: Move to waive the reading of Resolution 2025-22 and 2025-23, there being ample copies available to the public. MOTION: Move to adopt Resolution 2025-22, a resolution of the Columbia Heights Economic Development Authority, adopting a budget for the fiscal year of 2026 and setting the 2025 tax levy, payable in 2026. MOTION: Move to adopt Resolution 2025-23, a resolution of the Columbia Heights Economic Development Authority, adopting a budget for the fiscal year of 2026 and authorizing a special benefit tax levy, payable in 2026. 1 City of Columbia Heights AGENDA September 02, 2025 Economic Development Authority Page 2 5. Executive Session: Develop or Consider Counteroffers for the Purchase of Real Property at 4024-4026 Central Ave NE. Closed per Minn. Stat. 13D.05, Subdivision 3(c). (pg. 57) ATTENDANCE INFORMATION: Move to recess to Closed Session pursuant to Minnesota Statutes 13D.05, Subdivision 3(c), members of the public will not be able to attend the executive session portion of the meeting. For questions regarding this notice, please contact Administration at 763-706-3610. BUSINESS UPDATES a. NOAH Program Development b. SPAAR Key Communities Grant: Homeownership Resource Night ADJOURNMENT 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—Shared Vision Room, 3989 Central Ave NE Monday, August 04, 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; Lamin Dibba; Rachel James; Amáda Márquez- Simula; Justice Spriggs; Marlaine Szurek 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 July 7, 2025. 2. Approve financial reports and payment of bills for June 2025 – Resolution No. 2025-17. Motion by Deneen, seconded by Spriggs, to approve the Consent Agenda as presented. All ayes of present. MOTION PASSED. RESOLUTION NO. 2025-17 A RESOLUTION OF THE ECONOMIC DEVELOPMENT AUTHORITY OF COLUMBIA HEIGHTS, MINNESOTA, APPROVING THE FINANCIAL STATEMENTS FOR THE MONTH OF JUNE 2025 AND THE PAYMENT OF THE BILLS FOR THE MONTH OF JUNE 2025. 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 2025 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 3 Item 1. City of Columbia Heights MINUTES August 04, 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 4th of August, 2025 Offered by: Laurel Deneen Seconded by: Justice Spriggs Roll Call: All ayes of present. MOTION PASSED. President Attest: Secretary BUSINESS ITEMS 3. Façade Improvement Grant Report for Juanchito Barber located at 4050 Central Ave NE Voight reported on the 2025 Façade Improvement Grant application for 4050 Central Ave NE. This building was formerly occupied by Don’s Barber Shop. The new tenant is Juanchito Barber, a new business. The new tenant is applying for grant funds for new storefront signage on t he Central Avenue façade of the structure. A photo of the existing conditions has been included in the Agenda Packet. Voight stated the applicant was able to receive two bids for the signage, amounting to $4,300 (SignMinds Inc.) and $5,844.09 (BMS Signs & Printing). This sets them up for a grant amount of $2,922.05. Renderings of the proposed signage have been included in the packet. Community Development staff recommend funding this project in full as the new signage will reflect the new business and help attract customers. 4 Item 1. City of Columbia Heights MINUTES August 04, 2025 EDA Meeting Page 3 Voight noted that, thus far in 2025, the EDA has approved three Façade Improvement Grant applications for a total of $11,749.25 approved, with an additional $2,922.05 being requested at this meeting. This leaves $65,328.70 in Façade Improvement Grant funds remaining from the initial annual budget of $80,000. Questions/Comments from Members: Szurek asked if the applicants were doing anything more to the building than just putting up signage. Voight replied that the rendering is strictly for the signage. The grant funding request is only for the signage. She added that the applicant intends to do some painting and other things on the front of the structure, but they were unsure of specifics during the time that they were filling out the application. Buesgens asked if the EDA had any influence in encouraging the applicant to do anything like signs that project from the structure. Forney replied that the City Code only allows signs to stick out a certain amount from the building. Buesgens asked what the reason was for the signs not jutting out too far. Forney replied that it is due to the structural weight that it causes. James expressed her gratitude that the applicant worked with the multicultural liaison and that the grant was reaching a broader community of applicants. She added that she is glad that something is happening in the vacant space. Motion by Márquez-Simula, seconded by Dibba, to waive the reading of Resolution 2025-18, there being ample copies available to the public. All ayes of present. MOTION PASSED. Motion by Márquez-Simula, seconded by Buesgens, to adopt Resolution No. 2025-18, 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 Juanchito Barber. All ayes of present. MOTION PASSED. RESOLUTION NO. 2025-18 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 JUANCHITO BARBER 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 Pr ogram (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 5 Item 1. City of Columbia Heights MINUTES August 04, 2025 EDA Meeting Page 4 of revitalizing existing storefronts, increasing business vitality and economic performance, and decreasing criminal activity along Central Avenue Northeast and 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 Business District; and WHEREAS, the Authority has thoroughly reviewed copies of the proposed form of the Grant Agreement. NOW, THEREFORE BE IT RESOLVED that, after appropriate examination and due consideration, the Authority 1. approves the form and substance of the Grant Agreement, and approves the Authority entering into the Agreement with Juanchito Barber. 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 4th of August, 2025 Offered by: Amáda Márquez-Simula Seconded by: Connie Buesgens Roll Call: All ayes of present. MOTION PASSED. President Attest: Secretary 4. 4243 5th St Habitat For Humanity Gap Financing Discussion Forney reported at the May 5th EDA meeting, Community Development staff presented a gap financing request from Twin Cities Habitat for Humanity (TCHFH) for their partnership project at 4243 5th Street NE. At that time, TCHFH identified a total financing gap of approximately $120,000, comprised of a $90,000 development gap and a $30,000 affordability gap. At the May meeting, TCHFH requested $75,000 in financial assistance to help close the development portion of the gap. During the EDA’s discussion of the request at that meeting, EDA commissioners ex pressed hesitation about providing the full amount of funding. Commissioners were divided on whether to 6 Item 1. City of Columbia Heights MINUTES August 04, 2025 EDA Meeting Page 5 directly fund the project in full, to offer to fund the project in full but with half as a loan and half as a grant, or to reserve the funds for future initiatives. Since that meeting, staff have worked closely with TCHFH to explore creative solutions to address the funding gap. As a result, staff and TCHFH are bringing forward a revised proposal that balances the project's needs with the EDA’s expressed financial considerations. TCHFH will attend the meeting in person to present on this revised request and provide additional details about how they finance their projects. Forney stated that after further discussion, staff and TCHFH have agreed on a reduced request for $35,000 in financial assistance. This revised figure acknowledges the project’s unique financing challenges while preserving EDA resources for future initiatives. It also reflects unforeseen project costs and changing site conditions, which are described below. Unlike typical Habitat for Humanity projects, the 4243 5th Street project was initiated in direct partnership with the City, at a time when traditional grant programs were unavailable. This challenging timing meant that Habitat had fewer external funding sources than usual, contributing to the financing gap. In addition, unexpected stormwater drainage issues emerged during the course of the project, adding additional costs. After the demolition of the previous structure in December 2023 , the site was improperly regraded by the demolition contractor. When an unusual winter rain event occurred, this caused water to flow into a neighboring property’s basement. The demolition contractor had fixed the problem, but during the building of the n ew home, similar issues have emerged. Habitat has since had to regrade the lot and install additional stormwater infrastructure to ensure proper drainage, increasing the project’s cost. Forney noted that staff are proposing that the $35,000 in assistance be provided in the form of a forgivable deferred loan, as outlined in the attached loan documents and resolution. The loan will be contingent on TCHFH completing all requirements outlined in the Pre-Development Agreement executed with the City. Upon completion of these requirements, the loan will be forgiven, effectively functioning as a grant. To fund the forgivable loan, staff recommend utilizing pooled TIF resources from the C8 TIF District. Under this structure, the C8 District would loan $35,000 to th e W3W4 Scattered Site TIF District, which would then issue the forgivable loan directly to Twin Cities Habitat for Humanity. The W3W4 District would repay the C8 District using revenue generated from properties within its district. Since the W3W4 District is restricted to funding affordable housing-related expenditures, this ensures the proper use of funds. Utilizing pooled TIF dollars also means the proposed loan would not impact the EDA’s 2025 budget allocation. Following this transaction, the C8 TIF District would still have approximately $180,000 available for future affordable housing projects. Forney mentioned that Community Development staff recommend approval of the $35,000 forgivable loan to TCHFH. This action continues the EDA’s strong partnership with Habitat for Humanity and supports the redevelopment of 4243 5th Street NE. The revised request balances the immediate financing needs of the project while preserving funding capacity for future affordable housing opportunities. Staff believe this proposal represents a responsible and collaborative approach to gap financing in a constrained funding environment. Noah Keller, Habitat for Humanity Representative, stated he is a real estate development manager with Twin Cities Habitat for Humanity. He provided a summary and history of the project site. He 7 Item 1. City of Columbia Heights MINUTES August 04, 2025 EDA Meeting Page 6 noted that the house was going to be torn down and used for the Fire Department to do training. After the training, the City was able to offer the property to Habitat for Humanity for $1. The property development agreement came with a specific timeline for when the house needed to be completed. He noted that they are on track to complete construction before the deadline. He explained that an issue with the timeline was that they could not have anothe r funding source to help with the remaining development or affordability gap. Typically, on a Habitat project, it is anticipated that $40,000-$50,000 is private funding. If needed, Habitat for Humanity will dedicate additional funds from the General Fund to cover the remaining development costs or affordability gap. Mr. Keller explained that due to the lack of other public funding sources, they were able to raise $30,000 in private funding, but there was still a $90,000 development gap. He mentioned that when he heard that there was additional City money through the TIF pool, he requested additional funding. He noted that the $35,000 of funding would help alleviate a little over one-third of the remaining development gap. He added that there is a family that is already matched to the home. Questions/Comments from Members: James asked how long the loan would take to be forgiven through repayments. Forney replied that it would take longer than the TIF district has left. Márquez-Simula mentioned that she was glad to have the funds used in a way that supports affordable housing. She suggested having an update about the family moving into the home during a Council meeting so the community can see that the City wants to support affordable housing. Deneen mentioned that there was an outside company that came in to do regrading. She asked if the City has gone after insurance to get some of the money recouped due to poor grading. Forney replied that the grading was not under the City’s responsibility. The homeowner eventually took up the issue with the contractor, and the contractor fixed the site prior to Habitat for Humanity taking over. Dibba clarified that Habitat for Humanity was requesting $35,000 from the EDA. He wondered how the remaining gap funds would be obtained. Mr. Keller replied that Habitat for Humanity would backfill whatever gap remained through general fundraising. He added that it would simply mean that the property would require more private subsidy than other projects. Mr. Keller expressed his appreciation for the City’s solution-based approach. Motion by Buesgens, seconded by Deneen, to waive the reading of Resolution No. 2025-19 and 2025- 20, there being ample copies available to the public. All ayes of present. MOTION PASSED. Motion by Buesgens, seconded by Deneen, to adopt Resolution No. 2025-19, a Resolution of the Economic Development Authority of Columbia Heights, Minnesota, authorizing an interfund loan for advance of funds from Tax Increment Financing University Avenue Redevelopment District (no. C8) for costs in connection with the City-Wide Scattered Site Housing Tax Increment Financing District. All ayes 8 Item 1. City of Columbia Heights MINUTES August 04, 2025 EDA Meeting Page 7 of present. MOTION PASSED. Motion by Buesgens, seconded by Deneen, to adopt Resolution 2025-20, a Resolution of the Economic Development Authority of Columbia Heights, Minnesota, approving a loan to Twin Cities Habitat For Humanity, Inc. and approving a loan agreement relating to a forgivable loan and related loan documents. RESOLUTION NO. 2025-19 AUTHORIZING AN INTERFUND LOAN FOR ADVANCE OF FUNDS FROM TAX INCREMENT FINANCING UNIVERSITY AVENUE REDEVELOPMENT DISTRICT (NO. C8) FOR COSTS IN CONNECTION WITH THE CITY-WIDE SCATTERED SITE HOUSING TAX INCREMENT FINANCING DISTRICT BE IT RESOLVED By the Board of Commissioners of the Columbia Heights Economic Development Authority (the “Authority” or “EDA”) as follows: Section 1. Background. 1.01. Pursuant to Minnesota Statutes, Sections 469.174 through 469.1799, as amended, and predecessor statutes (the “TIF Act”), the City of Columbia Heights, Minnesota (the “City”) and the Housing and Redevelopment Authority in and for the City (the “HRA”) previously established Tax Increment Financing University Avenue Redevelopment District (No. C8) (“TIF District C8”) within a project area variously called the Downtown CBD Revitalization Project, the Central Business District Redevelopment Project, and the CBD Redevelopment Project (the “Project”). 1.02. By resolution approved January 8, 1996, the City transferred to the EDA the control, authority and operation of all projects then administered by the HRA. 1.03. Pursuant to the TIF Act, the City and the Authority also previously established the CityWide Scattered Site Housing Tax Increment Financing District (“Scattered Site TIF District”) within the Project. 1.04. The Authority expects to incur certain costs related to the Scattered Site TIF District, which costs may be financed on a temporary basis from available Authority funds. 1.03. Under Section 469.178, Subdivision 7 of the TIF Act, the Authority is authorized to advance or loan money from any fund from which such advances may be legally made in order to finance expenditures that are eligible to be paid with tax increments under the TIF Act. 1.04. The Authority intends to establish a deferred loan for affordable housing redevelopment within the Project, including but not limited to property located at 4243 5th Street NE, Columbia Heights MN 55421, in the City (collectively, the “Property”), and intends to pay all or a portion of the costs of the deferred loan using tax increments from TIF District C8, up to the total balance of tax increments available in the fund or account for TIF District C8 (the “Balance”). 9 Item 1. City of Columbia Heights MINUTES August 04, 2025 EDA Meeting Page 8 1.05. The Authority has designated the advance of funds for the deferred loan as an interfund loan (the “Interfund Loan” or “Loan”). Section 2. Authorization of Use of Funds; Further Actions. 2.01. The Authority hereby authorizes use of the Balance from TIF District C8 as one of th e legally available funding sources for the Interfund Loan. 2.02. The Authority authorizes the Loan in the amount of $35,000, to be drawn from the account for TIF District C8. Such amount will be made available to the Authority at or before the disbursement of the deferred loan. The outstanding principal balance of the Loan bears interest at the rate of 5.0 percent per annum (which is the greater of the rates specified under Sections 270C.40 or 549.09 in accordance with Minnesota Statutes, Section 469.178, subdivision 7); provided, however, the Executive Director of the EDA is authorized to specify a lower rate. Interest accrues from the respective dates of each disbursement from the identified account in order to fund the deferred loan. 2.03. The Loan is payable from tax increments generated from the Scattered Sit e TIF District (if any), from any other tax increments legally available for such purposes, and from any other revenues available to the Authority. Principal and interest (“Payments”) shall be made at the times any revenue sources are available to make installment payments. The outstanding balance of principal and interest is due on the date of last receipt of tax increment from the Scattered Site TIF District or from any other tax increment district from which repayment of the Loan is made. Payments will b e credited to the account from which the Loan was drawn. All payments shall be applied first to accrued interest, and then to unpaid principal of the Loan. 2.04. The Authority reserves the right to permanently allocate all or any portion of the Balance to the deferred loan and to amend the terms of the Interfund Loan at any time by resolution of the Authority’s Board of Commissioners, including a determination to forgive the outstanding principal amount and accrued interest to the extent permissible under law. Section 3. Effective Date. This resolution is effective upon approval. ORDER OF ECONOMIC DEVELOPMENT AUTHORITY Passed this 4th of August, 2025 Offered by: Connie Buesgens Seconded by: Laurel Deneen Roll Call: All ayes of present. MOTION PASSED. President Attest: Secretary 10 Item 1. City of Columbia Heights MINUTES August 04, 2025 EDA Meeting Page 9 RESOLUTION NO. 2025-20 APPROVING LOAN TO TWIN CITIES HABITAT FOR HUMANITY, INC. AND APPROVING A LOAN AGREEMENT RELATING TO A FORGIVABLE LOAN AND RELATED LOAN DOCUMENTS WHEREAS, the Columbia Heights Economic Development Authority (the “EDA”) is an economic development authority established pursuant to Minnesota Statutes, Sections. 469.090 to 469.108, as amended (“EDA Act”), and has all the powers under the EDA Act as well as all the powers of a housing and redevelopment authority under Minnesota Statutes, Sections 469.001 to 469.047 (“HRA Act”). Under Minnesota Statutes, Section 469.192, the EDA also has the authority to make loans for any purpose the EDA is authorized to carry out under the EDA Act and HRA Act; and WHEREAS, Twin Cities Habitat for Humanity, Inc., a Minnesota nonprofit corporation (the “Borrower”), has requested that the EDA loan the Borrower funds to finance the development of a singlefamily residential home (the “Project”), located at 4243 5th Street in the City of Columbia Heights, Minnesota (the “Property”); and WHEREAS, the Board of Commissioners (the “Board”) of the EDA has received and reviewed a form of Loan Agreement, to be entered into between the EDA and the Borrower (the “Loan Agreement”), providing for a forgivable loan in the amount of $35,000.00 to the Borrower (the “Loan”) from available tax increments in the fund or account for the City-Wide Scattered Site Housing Tax Increment Financing District, which increments are proposed to be transferred from the fund or account for the Tax Increment Financing University Avenue Redevelopment District (No. C8), to provide gap financing for the Project; and WHEREAS, the Board has also received and reviewed (i) a form of Promissory Note, to be given by the Borrower to the EDA as evidence of the Loan (the “Promissory Note”), and (ii) a Mortgage, to be given by the Borrower, as mortgagor, to the EDA, as mortgagee, to secure the Loan, as further described therein (the “Mortgage”). NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of the Columbia Heights Economic Development Authority, that: 1. The Loan Agreement, the Promissory Note, and the Mortgage (collectively, the “Loan Documents”) are all approved in accordance with their terms, subject to modifications that do not alter the substance of the transaction and that are approved by the President and the Secretary of the EDA, provided that execution of the Loan Documents by such officials shall be conclusive evidence of approval. 2. The President and the Secretary of the EDA are authorized to execute on behalf of the EDA the Loan Documents and any documents referenced therein requiring execution by the EDA, and to carry out, on behalf of the EDA, its ob ligations thereunder. In the event of absence or disability of any such 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 11 Item 1. City of Columbia Heights MINUTES August 04, 2025 EDA Meeting Page 10 official, or by such other officer or officers of the Board as, in the opinion of legal counsel to the EDA, may act in their behalf. 3. The authority to approve, execute and deliver future amendments to the Loan Documents or consents is hereby delegated to the Executive Director, subject to the following conditions: (a) such amendments or consents to not materially adversely affect the interests of the EDA; (b) such amendments or consents do not contravene or violate any policy of the EDA, the City or applicable provision of law, and (c) such amendments or consents are acceptable in form and substance to the counsel retained by the EDA to review such amendments. The authorization hereby given shall be further construed as authorization for the execution and delivery of s uch certificates and related items as may be required to demonstrate compliance with the agreements being amended and the terms of this resolution. The execution of any instrument by the Executive Director shall be conclusive evidence of the approval of such instruments in accordance with the terms hereof. In the absence of the Executive Director any instrument authorized by this paragraph to be executed and delivered may be executed by the officer of the EDA authorized to act in the Executive Director’s place and stead. Passed this 4th of August, 2025 Offered by: Connie Buesgens Seconded by: Laurel Deneen Roll Call: All ayes of present. MOTION PASSED. President Attest: Secretary 5. Central Avenue Pass-through Purchase Discussion Voight stated that at the direction of the EDA, Community Development staff contacted the owner of the property at 4024-4026 Central Avenue NE to discuss the pedestrian pass-through on the south side of the property. For many years, the City has provided maintenance services for this pedestrian walkway leading from Central Ave in the east to the alley and the Van Buren Ramp in the west, even though it is private property. The City maintains the lighting mounted on the south wall of the 4024-4026 building and provides snow removal in the winter. Voight noted that after discussion with Community Development staff, the property owner expressed an interest in selling the pass-through portion of the property to the City. Ideally, they would like to complete the sale this fall. If the EDA were to purchase the pass-through, it would clarify liability in the event of an accident, ensure that the path remains open to public pedestrian use in the event of a change of building ownership, and potentially provide opportunities for placemaking, improved security, and public art in the Central Business District. Voight mentioned that the property owner granted permission for the City to have the property 12 Item 1. City of Columbia Heights MINUTES August 04, 2025 EDA Meeting Page 11 surveyed in order to confirm the exact dimensions of the area. The survey has been included in the Agenda Packet. If the EDA were to purchase this property, it could do so using EDA Redevelopment Fund 408. This fund currently holds approximately $510,000 in pooled funds unassigned to specific EDA programs or expenditures. Voight stated Community Development staff recommend that the EDA decide whether it would like to put forward an offer to purchase a portion of the property at 4024 -4026 Central Ave NE (the pass-through), and if yes, that it define a price for said offer. Questions/Comments from Members: Buesgens stated she did not have a problem with purchasing a portion of the property. She mentioned that redevelopment might occur in the space in the future. She noted it would give the City some leverage in the future. She added that if the City is taking care of the section, it makes sense for the City to own it. She asked how much it would cost. Voight replied that she would look it up. Voight mentioned that the ally serves as a pedestrian access to the ramp. The City would like to maintain the access area. Deneen asked what the City’s rights were to include lighting in the area, especially if the lighting required drilling into the other property walls in order to get wiring set up. Voight replied that the City maintains some lights that are already installed. She added that there is an informal agreement with the surrounding properties. She noted that if the building was sold to a new property owner and the owner did not want the City to maintain the lights, the City might have a difficult time trying to continue to maintain the lighting. The current owner could be receptive to the City putting in additional lighting since he has been receptive so far. She mentioned that owning the property would allow the City more flexibility for deciding what could go in there, like sidewalk-mounted lights. Márquez-Simula stated that she was in favor of purchasing the property. She asked if the City had permission to paint the walls. Voight replied that the City would need to get to an agreement with the property owners to do so. Márquez-Simula mentioned that she would like the City to have a discussion with the property owners to see if it was a possibility. Buesgens pointed out that when there is a purchase agreement, the City would have a deed for the stretch of property. She wondered if there was a way for there to be an agreement with the property owners and the City so that the City is able to ensure that the easements are included. Voight replied that it is something to take into account and to have discussions on whether the easements are a part of the purchase deal or wrapped up into the purchase for a certain amount of time. She mentioned that the space would allow for sidewalk murals on the ground. Buesgens asked how old the buildings are. Voight replied that there is a survey for the property at 4026 from 1924. Forney added that the other building was also from 1924. Dibba asked if the two buildings were owned by the same person. Voight replied that the buildings 13 Item 1. City of Columbia Heights MINUTES August 04, 2025 EDA Meeting Page 12 are owned by two different owners. Dibba suggested that the City speak with both property owners about public art. James mentioned that she has seen a lot of public art that does not attach to walls. She suggested public art such as a bench, thin lights, sculptures, etc. She added that she thought it was a great idea to purchase the property. Voight mentioned that if the EDA offered $6 per square foot , it would be about $6,500. She suggested that the EDA come up with an initial offer and a potential second offer price. Deneen stated she was in favor of offering $5-$5.50 per square foot because the space is not useful for the property owners and the City is already maintaining it. She added that the City has already taken responsibility for it. She noted that the easements for the walls are an additional conversation and have the potential to be something that is negotiated as well. James asked the Commissioners if they were in favor of purchasing the property. The EDA agreed. James agreed with Deneen’s comments and added that she is open to the idea of the City having a negotiation with the property owners. She noted that she would like to have in writing the righ ts to use the lighting and the mural on the northside property. She stated she would be willing to increase the price. Deneen clarified that her suggestion for having a lower offer cost is just for the base cost of the property, and that the easement would be additional money. Voight summarized that the EDA would like to purchase the property for around $5.50 per square foot as a starting offer. She asked the EDA what their second offer would be. Deneen asked if they would want to discuss that in an open meeting. Chirpich suggested bringing back the property owner’s offer to the EDA during the negotiation period. BUSINESS UPDATES a. NOAH Program Development Voight mentioned that the EDA discussed a few months ago about moving forward with a NOAH program using the Affordable Housing Trust Fund. Staff have been working with CEE and the legal counsel to work out the contracts, documents, and budgets. The contracts will be available for the EDA to review during the September EDA meeting. The contract will include a recap of the design and the budget documents. Forney added that the MMB distributed how much the City would be getting for the year, which will be $394,000 and will be in two installments. The funds from LAHA cannot be used to administer the program. Márquez-Simula mentioned that there are a number of stores in the Business District that have fabric or other materials covering their storefront windows. She asked for an update during the next EDA meeting regarding what the City Code is, and which bu sinesses are in the Business District and would need enforcement. Forney replied that the City does not allow businesses to cover their windows completely. He added that the new Code Enforcer would begin reaching out to businesses that have covered their windows. He noted that he would speak with the Code Enforcer. Dibba asked if there was an update regarding the Rainbow and Medtronic sites. Forney replied that the City Council recently heard from the developer for the Medtronic site during the last Counc il 14 Item 1. City of Columbia Heights MINUTES August 04, 2025 EDA Meeting Page 13 meeting. The rezoning of the property, the preliminary plat, the easement vacation, and the shoreland overlay variance were approved during the meeting. The project will be moving into the development contract phase. He developer will need each part of the site approved. The EDA will be hearing from the developer regarding a TIF application and request for financial assistance. The City Council has approved applying for LCDA funding and LIHTC bonds from the State. The developer did not receive their bond funding in July. The next bond cycle is in January. The project is anticipated to start in spring or summer next year. Chirpich mentioned that there are ongoing conversations regarding the Rainbow site. The most recent discussions are on how to refinance the debt on the project in order to get to the next iteration and get it to the City for project approval. Staff will get a plan ready for the Council for the September work session meeting. The plan would include discussing bond refunding strategies and buying some time to get into 2026 for phase one. The proposed plan is still the same to have multi- family housing, an LA Fitness, and an Ace Hardware. The traffic study for the project is near completion. There may need to be an additional signal on 43rd Avenue. Alatus is considering reducing the density, in which case the signal may not be needed. Alatus has secured financing for the next phase of its project in Hopkins. He stated that the project is moving in a positive direction. ADJOURNMENT Motion by Buesgens, seconded by Szurek, to adjourn the meeting at 5:52 pm. All ayes. MOTION PASSED. Respectfully submitted, Sarah LaVoie, Recording Secretary 15 Item 1. Resolution 2025-21 RESOLUTION NO. 2025-21 A RESOLUTION OF THE ECONOMIC DEVELOPMENT AUTHORITY OF COLUMBIA HEIGHTS, MINNESOTA, APPROVING THE FINANCIAL STATEMENTS FOR THE MONTH OF JULY 2025 AND THE PAYMENT OF THE BILLS FOR THE MONTH OF JULY 2025. 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 July 2025 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 2nd day of September 2025 Offered by: Seconded by: Roll Call: Title: President Attest: Title: Secretary 16 Item 2. AmountInvoiceInvoice DateVendorInvoice Line DescGL Number INVOICE GL DISTRIBUTION REPORT FOR CITY OF COLUMBIA HEIGHTS 1/3Page:08/18/2025 01:06 PM User: suems DB: Columbia Heights EXP CHECK RUN DATES 07/01/2025 - 07/31/2025 BOTH JOURNALIZED AND UNJOURNALIZED PAID Check 203513 23.16 24387250206/15/25COMCAST061525 934571297 COMM DEV ADMIN (2.3%)204.6314.43250 23.16 Total For Check 203513 Check 203557 13.87 99288033305/31/25POPP.COM INC053125 -10010429 COM DEV ADMINISTRATION204.6314.43210 13.87 Total For Check 203557 Check 203573 210.75 3056406/13/25TIMESAVER OFF SITE SECRETR INCEDA MINUTES 060225204.6314.43050 210.75 Total For Check 203573 Check 203609 7,800.00 250226.00-106/20/25LHB INCTIF ANALYSIS 800 53RD AVE 0525204.0000.22825 7,800.00 Total For Check 203609 Check 203625 1,155.00 13-VB06/27/25RTD POWER WASHING, INCSWEEPING - VAN BUREN RAMP 228.6317.44000 1,155.00 Total For Check 203625 Check 203631 814.00 S417869-IN06/24/25TESSMAN COGRASS & CLOVER SEED - BEE LAWN PROJ EDA408.6314.44300 814.00 Total For Check 203631 Check 203692 41.62 99288288706/26/25POPP.COM INC062625 - 10013121 PHONE COMMDEV ADMIN204.6314.43210 41.62 Total For Check 203692 Check 203695 400.00 15049853206/30/25REDPATH AND COMPANY LLC2024 AUDIT ENGAGEMENT204.6314.43050 400.00 Total For Check 203695 Check 203714 689.79 119743474307/09/25XCEL ENERGY (N S P)ELECTRIC228.6317.43810 689.79 Total For Check 203714 Check 203745 23.16 24639796507/15/25COMCAST071525 934571297 COMM DEV ADMIN (2.3%)204.6314.43250 23.16 Total For Check 203745 Check 203800 13.87 99288383506/30/25POPP.COM INC063025 -10010429 COM DEV ADMINISTRATION204.6314.43210 13.87 Total For Check 203800 Check 203812 172.00 3072807/14/25TIMESAVER OFF SITE SECRETR INCEDA MINUTES 070725204.6314.43050 172.00 Total For Check 203812 Check 203814 375.00 202259007/09/25TWIN CITIES NORTH CHAMBER OFMEMBERSHIP 080125-073126204.6314.44330 375.00 Total For Check 203814 Check 203832 3.15 05282505/28/25ARVIG ENTERPRISES, INCCOMM DEV ADMIN (2.3%) INTERNET 0625204.6314.43250 3.15 Total For Check 203832 17 Item 2. AmountInvoiceInvoice DateVendorInvoice Line DescGL Number INVOICE GL DISTRIBUTION REPORT FOR CITY OF COLUMBIA HEIGHTS 2/3Page:08/18/2025 01:06 PM User: suems DB: Columbia Heights EXP CHECK RUN DATES 07/01/2025 - 07/31/2025 BOTH JOURNALIZED AND UNJOURNALIZED PAID Check 203844 243.75 10202207/11/25EHLERS & ASSOCIATES INCGENERAL 4300 CENTRAL DISCUSSION204.6314.43050 243.75 Total For Check 203844 Check 203858 1,500.00 443607/22/25KURTH SURVEYINGSURVEY LOTS 4024 & 4026 CENTRAL AVE NE228.6317.43050 1,500.00 Total For Check 203858 Check 2249 10,269.52 0083785-IN11/27/24IDC AUTOMATIC, LLCVAN BUREN RAMP CONCRETE REPAIRS228.6317.44000 10,269.52 Total For Check 2249 Check 2318 21,875.00 9596706/18/25BOND TRUST SERVICES CORPINTEREST372.7000.46110 21,875.00 Total For Check 2318 Check 2347 1,120,000.00 0805202507/31/25LINCOLN AVENUE CAPITAL MGMT LLCREFUND OF MMB BOND APPLICATION DOWN PAYM204.0000.22000 1,120,000.00 Total For Check 2347 18 Item 2. AmountInvoiceInvoice DateVendorInvoice Line DescGL Number INVOICE GL DISTRIBUTION REPORT FOR CITY OF COLUMBIA HEIGHTS 3/3Page:08/18/2025 01:06 PM User: suems DB: Columbia Heights EXP CHECK RUN DATES 07/01/2025 - 07/31/2025 BOTH JOURNALIZED AND UNJOURNALIZED PAID 1,129,320.33 Fund 204 EDA ADMINISTRATION 13,614.31 Fund 228 DOWNTOWN PARKING 21,875.00 Fund 372 HUSET PARK AREA TIF (T6) 814.00 Fund 408 EDA REDEVELOPMENT PROJECT FD Fund Totals: 814.00 GRASS & CLOVER SEED - BEE LAWN PROJ EDA408.6314.44300 21,875.00 INTEREST372.7000.46110 11,424.52 VAN BUREN RAMP CONCRETE REPAIRS228.6317.44000 689.79 ELECTRIC228.6317.43810 1,500.00 SURVEY LOTS 4024 & 4026 CENTRAL AVE NE228.6317.43050 375.00 MEMBERSHIP 080125-073126204.6314.44330 49.47 COMM DEV ADMIN (2.3%) INTERNET 0625204.6314.43250 69.36 062625 - 10013121 PHONE COMMDEV ADMIN204.6314.43210 1,026.50 GENERAL 4300 CENTRAL DISCUSSION204.6314.43050 7,800.00 TIF ANALYSIS 800 53RD AVE 0525204.0000.22825 1,120,000.00 REFUND OF MMB BOND APPLICATION DOWN PAYM204.0000.22000 --- TOTALS BY GL DISTRIBUTION --- 1,165,623.64 Total For All Funds: 19 Item 2. REVENUE AND EXPENDITURE REPORT FOR CITY OF COLUMBIA HEIGHTS 1/10Page:08/18/2025 01:05 PM User: suems DB: Columbia Heights PERIOD ENDING 07/31/2025 % BDGT USED UNENCUMBERED BALANCE YTD BALANCE 07/31/2025 ACTIVITY FOR MONTH 07/31/25 ENCUMBERED YEAR-TO-DATE 2025 AMENDED BUDGETDESCRIPTIONGL NUMBER Fund 204 - EDA ADMINISTRATION Revenues Dept 0000 - NON-DEPARTMENTAL TAXES 0.00 298,000.00 0.00 0.00 0.00 298,000.00 EDA CURRENT AD VALOREM204.0000.31011 0.00 77,000.00 0.00 0.00 0.00 77,000.00 AREA WIDE TAX204.0000.31014 0.00 375,000.00 0.00 0.00 0.00 375,000.00 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 2,000.00 0.00 0.00 0.00 2,000.00 INTEREST ON INVESTMENTS204.0000.36210 0.00 2,000.00 0.00 0.00 0.00 2,000.00 MISCELLANEOUS 0.01 376,970.00 30.00 0.00 0.00 377,000.00 Total Dept 0000 - NON-DEPARTMENTAL 0.01 376,970.00 30.00 0.00 0.00 377,000.00 TOTAL REVENUES Expenditures Dept 6314 - ECONOMIC DEVELOPMENT AUTH PERSONNEL SERVICES 62.41 70,360.37 116,839.63 16,307.40 0.00 187,200.00 REGULAR EMPLOYEES204.6314.41010 62.19 5,292.86 8,707.14 1,164.21 0.00 14,000.00 P.E.R.A. CONTRIBUTION204.6314.41210 61.18 5,551.23 8,748.77 1,219.44 0.00 14,300.00 F.I.C.A. CONTRIBUTION204.6314.41220 36.96 15,444.50 9,055.50 1,281.68 0.00 24,500.00 INSURANCE204.6314.41300 60.97 273.20 426.80 57.04 0.00 700.00 WORKERS COMP INSURANCE PREM204.6314.41510 0.00 9,400.00 0.00 0.00 0.00 9,400.00 COLA ALLOWANCE204.6314.41810 57.49 106,322.16 143,777.84 20,029.77 0.00 250,100.00 PERSONNEL SERVICES SUPPLIES 18.11 163.78 36.22 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 0.00 200.00 0.00 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 4.53 763.78 36.22 0.00 0.00 800.00 SUPPLIES OTHER SERVICES & CHARGES 100.00 (2,939.80)2,939.80 2,266.00 0.00 0.00 ATTORNEY FEES-OTHER204.6314.43045 150.56 (4,500.00)12,625.00 415.75 775.00 8,900.00 EXPERT & PROFESSIONAL SERV.204.6314.43050 61.31 1,625.00 2,575.00 0.00 0.00 4,200.00 TRAINING & EDUCATION ACTIVITIES204.6314.43105 106.48 (58.36)479.53 42.44 478.83 900.00 TELEPHONE204.6314.43210 70.83 233.36 566.64 0.00 0.00 800.00 POSTAGE204.6314.43220 61.66 115.01 184.99 23.16 0.00 300.00 OTHER TELECOMMUNICATIONS204.6314.43250 0.00 200.00 0.00 0.00 0.00 200.00 LOCAL TRAVEL EXPENSE204.6314.43310 50.00 750.00 750.00 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 58.33 1,458.31 2,041.69 291.67 0.00 3,500.00 PROP & LIAB INSURANCE204.6314.43600 0.00 400.00 0.00 0.00 0.00 400.00 REPAIR & MAINT. SERVICES204.6314.44000 594.97 (5,444.70)1,988.18 0.00 4,556.52 1,100.00 SOFTWARE & SOFTWARE SUBSCRIPTIONS204.6314.44030 20 Item 2. REVENUE AND EXPENDITURE REPORT FOR CITY OF COLUMBIA HEIGHTS 2/10Page:08/18/2025 01:05 PM User: suems DB: Columbia Heights PERIOD ENDING 07/31/2025 % BDGT USED UNENCUMBERED BALANCE YTD BALANCE 07/31/2025 ACTIVITY FOR MONTH 07/31/25 ENCUMBERED YEAR-TO-DATE 2025 AMENDED BUDGETDESCRIPTIONGL NUMBER Fund 204 - EDA ADMINISTRATION Expenditures 58.33 3,958.31 5,541.69 791.67 0.00 9,500.00 INFORMATION SYS:INTERNAL SVC204.6314.44040 57.86 295.00 405.00 375.00 0.00 700.00 SUBSCRIPTION, MEMBERSHIP204.6314.44330 0.00 800.00 0.00 0.00 0.00 800.00 COMMISSION & BOARDS204.6314.44380 108.81 (2,907.87)30,097.52 4,205.69 5,810.35 33,000.00 OTHER SERVICES & CHARGES CONTINGENCIES & TRANSFERS 51.13 12,266.69 12,833.31 1,833.33 0.00 25,100.00 OPER. TRANSFER OUT - LABOR204.6314.47100 51.13 12,266.69 12,833.31 1,833.33 0.00 25,100.00 CONTINGENCIES & TRANSFERS 62.32 116,444.76 186,744.89 26,068.79 5,810.35 309,000.00 Total Dept 6314 - ECONOMIC DEVELOPMENT AUTH 62.32 116,444.76 186,744.89 26,068.79 5,810.35 309,000.00 TOTAL EXPENDITURES 283.13 260,525.24 (186,714.89)(26,068.79)(5,810.35)68,000.00 NET OF REVENUES & EXPENDITURES 62.32 116,444.76 186,744.89 26,068.79 5,810.35 309,000.00 TOTAL EXPENDITURES 0.01 376,970.00 30.00 0.00 0.00 377,000.00 TOTAL REVENUES Fund 204 - EDA ADMINISTRATION: 21 Item 2. REVENUE AND EXPENDITURE REPORT FOR CITY OF COLUMBIA HEIGHTS 3/10Page:08/18/2025 01:05 PM User: suems DB: Columbia Heights PERIOD ENDING 07/31/2025 % BDGT USED UNENCUMBERED BALANCE YTD BALANCE 07/31/2025 ACTIVITY FOR MONTH 07/31/25 ENCUMBERED YEAR-TO-DATE 2025 AMENDED BUDGETDESCRIPTIONGL NUMBER Fund 228 - DOWNTOWN PARKING Revenues Dept 0000 - NON-DEPARTMENTAL TRANSFERS & NON-REV RECEIPTS 58.33 24,166.69 33,833.31 4,833.33 0.00 58,000.00 TRANSFER IN-SPECIAL PROJ REV228.0000.39247 58.33 24,166.69 33,833.31 4,833.33 0.00 58,000.00 TRANSFERS & NON-REV RECEIPTS 58.33 24,166.69 33,833.31 4,833.33 0.00 58,000.00 Total Dept 0000 - NON-DEPARTMENTAL 58.33 24,166.69 33,833.31 4,833.33 0.00 58,000.00 TOTAL REVENUES Expenditures Dept 6317 - DOWNTOWN PARKING SUPPLIES 6.60 1,401.05 98.95 0.00 0.00 1,500.00 OTHER TECHNOLOGY EQUIPMENT228.6317.42012 6.60 1,401.05 98.95 0.00 0.00 1,500.00 SUPPLIES OTHER SERVICES & CHARGES 100.00 (4,276.73)4,276.73 1,500.00 0.00 0.00 EXPERT & PROFESSIONAL SERV.228.6317.43050 58.33 1,541.69 2,158.31 308.33 0.00 3,700.00 PROP & LIAB INSURANCE228.6317.43600 61.29 812.88 1,287.12 271.99 0.00 2,100.00 UTILITY SERVICES228.6317.43800 39.69 8,081.11 5,318.89 689.79 0.00 13,400.00 ELECTRIC228.6317.43810 50.86 17,298.61 17,287.09 0.00 614.30 35,200.00 REPAIR & MAINT. SERVICES228.6317.44000 21.60 1,568.00 432.00 0.00 0.00 2,000.00 BLDG MAINT CONTRACTUAL SERVICES228.6317.44020 0.00 100.00 0.00 0.00 0.00 100.00 TAXES & LICENSES228.6317.44390 55.53 25,125.56 30,760.14 2,770.11 614.30 56,500.00 OTHER SERVICES & CHARGES 54.26 26,526.61 30,859.09 2,770.11 614.30 58,000.00 Total Dept 6317 - DOWNTOWN PARKING 54.26 26,526.61 30,859.09 2,770.11 614.30 58,000.00 TOTAL EXPENDITURES 100.00 (2,359.92)2,974.22 2,063.22 (614.30)0.00 NET OF REVENUES & EXPENDITURES 54.26 26,526.61 30,859.09 2,770.11 614.30 58,000.00 TOTAL EXPENDITURES 58.33 24,166.69 33,833.31 4,833.33 0.00 58,000.00 TOTAL REVENUES Fund 228 - DOWNTOWN PARKING: 22 Item 2. REVENUE AND EXPENDITURE REPORT FOR CITY OF COLUMBIA HEIGHTS 4/10Page:08/18/2025 01:05 PM User: suems DB: Columbia Heights PERIOD ENDING 07/31/2025 % BDGT USED UNENCUMBERED BALANCE YTD BALANCE 07/31/2025 ACTIVITY FOR MONTH 07/31/25 ENCUMBERED YEAR-TO-DATE 2025 AMENDED BUDGETDESCRIPTIONGL NUMBER Fund 372 - HUSET PARK AREA TIF (T6) Revenues Dept 0000 - NON-DEPARTMENTAL TAXES 0.00 880,000.00 0.00 0.00 0.00 880,000.00 CURRENT AD VALOREM372.0000.31010 0.00 880,000.00 0.00 0.00 0.00 880,000.00 TAXES MISCELLANEOUS 0.00 10,000.00 0.00 0.00 0.00 10,000.00 INTEREST ON INVESTMENTS372.0000.36210 0.00 10,000.00 0.00 0.00 0.00 10,000.00 MISCELLANEOUS 0.00 890,000.00 0.00 0.00 0.00 890,000.00 Total Dept 0000 - NON-DEPARTMENTAL 0.00 890,000.00 0.00 0.00 0.00 890,000.00 TOTAL REVENUES Expenditures Dept 7000 - BONDS OTHER SERVICES & CHARGES 66.65 3,335.28 5,364.72 0.00 1,300.00 10,000.00 EXPERT & PROFESSIONAL SERV.372.7000.43050 0.00 450,000.00 0.00 0.00 0.00 450,000.00 LOANS & GRANTS372.7000.44600 1.45 453,335.28 5,364.72 0.00 1,300.00 460,000.00 OTHER SERVICES & CHARGES CAPITAL OUTLAY 100.00 0.00 145,000.00 0.00 0.00 145,000.00 PRINCIPAL372.7000.46010 52.40 21,850.00 24,050.00 0.00 0.00 45,900.00 INTEREST372.7000.46110 111.67 (175.00)475.00 0.00 1,200.00 1,500.00 FISCAL AGENT CHARGES372.7000.46200 88.73 21,675.00 169,525.00 0.00 1,200.00 192,400.00 CAPITAL OUTLAY 27.19 475,010.28 174,889.72 0.00 2,500.00 652,400.00 Total Dept 7000 - BONDS 27.19 475,010.28 174,889.72 0.00 2,500.00 652,400.00 TOTAL EXPENDITURES 74.66 414,989.72 (174,889.72)0.00 (2,500.00)237,600.00 NET OF REVENUES & EXPENDITURES 27.19 475,010.28 174,889.72 0.00 2,500.00 652,400.00 TOTAL EXPENDITURES 0.00 890,000.00 0.00 0.00 0.00 890,000.00 TOTAL REVENUES Fund 372 - HUSET PARK AREA TIF (T6): 23 Item 2. REVENUE AND EXPENDITURE REPORT FOR CITY OF COLUMBIA HEIGHTS 5/10Page:08/18/2025 01:05 PM User: suems DB: Columbia Heights PERIOD ENDING 07/31/2025 % BDGT USED UNENCUMBERED BALANCE YTD BALANCE 07/31/2025 ACTIVITY FOR MONTH 07/31/25 ENCUMBERED YEAR-TO-DATE 2025 AMENDED BUDGETDESCRIPTIONGL NUMBER Fund 375 - TIF Z6: 47TH & GRAND Expenditures Dept 7000 - BONDS OTHER SERVICES & CHARGES 100.00 (1,289.72)689.72 0.00 600.00 0.00 EXPERT & PROFESSIONAL SERV.375.7000.43050 100.00 (1,289.72)689.72 0.00 600.00 0.00 OTHER SERVICES & CHARGES 100.00 (1,289.72)689.72 0.00 600.00 0.00 Total Dept 7000 - BONDS 100.00 (1,289.72)689.72 0.00 600.00 0.00 TOTAL EXPENDITURES 100.00 1,289.72 (689.72)0.00 (600.00)0.00 NET OF REVENUES & EXPENDITURES 100.00 (1,289.72)689.72 0.00 600.00 0.00 TOTAL EXPENDITURES 0.00 0.00 0.00 0.00 0.00 0.00 TOTAL REVENUES Fund 375 - TIF Z6: 47TH & GRAND: 24 Item 2. REVENUE AND EXPENDITURE REPORT FOR CITY OF COLUMBIA HEIGHTS 6/10Page:08/18/2025 01:05 PM User: suems DB: Columbia Heights PERIOD ENDING 07/31/2025 % BDGT USED UNENCUMBERED BALANCE YTD BALANCE 07/31/2025 ACTIVITY FOR MONTH 07/31/25 ENCUMBERED YEAR-TO-DATE 2025 AMENDED BUDGETDESCRIPTIONGL NUMBER Fund 391 - SCATTERED SITE TIF W3/W4 Expenditures Dept 7000 - BONDS OTHER SERVICES & CHARGES 100.00 (2,166.44)1,566.44 0.00 600.00 0.00 EXPERT & PROFESSIONAL SERV.391.7000.43050 100.00 (2,166.44)1,566.44 0.00 600.00 0.00 OTHER SERVICES & CHARGES 100.00 (2,166.44)1,566.44 0.00 600.00 0.00 Total Dept 7000 - BONDS 100.00 (2,166.44)1,566.44 0.00 600.00 0.00 TOTAL EXPENDITURES 100.00 2,166.44 (1,566.44)0.00 (600.00)0.00 NET OF REVENUES & EXPENDITURES 100.00 (2,166.44)1,566.44 0.00 600.00 0.00 TOTAL EXPENDITURES 0.00 0.00 0.00 0.00 0.00 0.00 TOTAL REVENUES Fund 391 - SCATTERED SITE TIF W3/W4: 25 Item 2. REVENUE AND EXPENDITURE REPORT FOR CITY OF COLUMBIA HEIGHTS 7/10Page:08/18/2025 01:05 PM User: suems DB: Columbia Heights PERIOD ENDING 07/31/2025 % BDGT USED UNENCUMBERED BALANCE YTD BALANCE 07/31/2025 ACTIVITY FOR MONTH 07/31/25 ENCUMBERED YEAR-TO-DATE 2025 AMENDED BUDGETDESCRIPTIONGL NUMBER Fund 392 - TIF BB2 ALATUS 40TH AV Expenditures Dept 7000 - BONDS OTHER SERVICES & CHARGES 100.00 (1,646.02)1,046.02 0.00 600.00 0.00 EXPERT & PROFESSIONAL SERV.392.7000.43050 100.00 (1,646.02)1,046.02 0.00 600.00 0.00 OTHER SERVICES & CHARGES 100.00 (1,646.02)1,046.02 0.00 600.00 0.00 Total Dept 7000 - BONDS 100.00 (1,646.02)1,046.02 0.00 600.00 0.00 TOTAL EXPENDITURES 100.00 1,646.02 (1,046.02)0.00 (600.00)0.00 NET OF REVENUES & EXPENDITURES 100.00 (1,646.02)1,046.02 0.00 600.00 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: 26 Item 2. REVENUE AND EXPENDITURE REPORT FOR CITY OF COLUMBIA HEIGHTS 8/10Page:08/18/2025 01:05 PM User: suems DB: Columbia Heights PERIOD ENDING 07/31/2025 % BDGT USED UNENCUMBERED BALANCE YTD BALANCE 07/31/2025 ACTIVITY FOR MONTH 07/31/25 ENCUMBERED YEAR-TO-DATE 2025 AMENDED BUDGETDESCRIPTIONGL NUMBER Fund 393 - TIF BB6 ALATUS 4300 CENTRAL Expenditures Dept 7000 - BONDS OTHER SERVICES & CHARGES 100.00 (1,271.02)671.02 0.00 600.00 0.00 EXPERT & PROFESSIONAL SERV.393.7000.43050 100.00 (1,271.02)671.02 0.00 600.00 0.00 OTHER SERVICES & CHARGES CONTINGENCIES & TRANSFERS 0.00 346,000.00 0.00 0.00 0.00 346,000.00 TRANSFER OUT TO BONDS393.7000.47160 0.00 346,000.00 0.00 0.00 0.00 346,000.00 CONTINGENCIES & TRANSFERS 0.37 344,728.98 671.02 0.00 600.00 346,000.00 Total Dept 7000 - BONDS 0.37 344,728.98 671.02 0.00 600.00 346,000.00 TOTAL EXPENDITURES 0.37 (344,728.98)(671.02)0.00 (600.00)(346,000.00)NET OF REVENUES & EXPENDITURES 0.37 344,728.98 671.02 0.00 600.00 346,000.00 TOTAL EXPENDITURES 0.00 0.00 0.00 0.00 0.00 0.00 TOTAL REVENUES Fund 393 - TIF BB6 ALATUS 4300 CENTRAL: 27 Item 2. REVENUE AND EXPENDITURE REPORT FOR CITY OF COLUMBIA HEIGHTS 9/10Page:08/18/2025 01:05 PM User: suems DB: Columbia Heights PERIOD ENDING 07/31/2025 % BDGT USED UNENCUMBERED BALANCE YTD BALANCE 07/31/2025 ACTIVITY FOR MONTH 07/31/25 ENCUMBERED YEAR-TO-DATE 2025 AMENDED BUDGETDESCRIPTIONGL NUMBER Fund 408 - EDA REDEVELOPMENT PROJECT FD Revenues Dept 0000 - NON-DEPARTMENTAL TAXES 0.00 325,000.00 0.00 0.00 0.00 325,000.00 HRA CURRENT AD VALOREM408.0000.31012 0.00 100,000.00 0.00 0.00 0.00 100,000.00 AREA WIDE TAX408.0000.31014 0.00 425,000.00 0.00 0.00 0.00 425,000.00 TAXES 0.00 425,000.00 0.00 0.00 0.00 425,000.00 Total Dept 0000 - NON-DEPARTMENTAL 0.00 425,000.00 0.00 0.00 0.00 425,000.00 TOTAL REVENUES Expenditures Dept 6314 - ECONOMIC DEVELOPMENT AUTH OTHER SERVICES & CHARGES 100.00 (57.60)57.60 0.00 0.00 0.00 EXPERT & PROFESSIONAL SERV.408.6314.43050 100.00 (814.00)814.00 0.00 0.00 0.00 MISC. CHARGES408.6314.44300 100.00 (871.60)871.60 0.00 0.00 0.00 OTHER SERVICES & CHARGES 100.00 (871.60)871.60 0.00 0.00 0.00 Total Dept 6314 - ECONOMIC DEVELOPMENT AUTH Dept 6411 - FACADE IMPROVEMENT GRANT OTHER SERVICES & CHARGES 100.00 (21,637.94)21,637.94 4,601.75 0.00 0.00 LOANS & GRANTS408.6411.44600 100.00 (21,637.94)21,637.94 4,601.75 0.00 0.00 OTHER SERVICES & CHARGES 100.00 (21,637.94)21,637.94 4,601.75 0.00 0.00 Total Dept 6411 - FACADE IMPROVEMENT GRANT Dept 6414 - COMMERCIAL REVITALIZATION OTHER SERVICES & CHARGES 100.00 (130.54)130.54 0.00 0.00 0.00 TAXES & LICENSES408.6414.44390 0.00 200,000.00 0.00 0.00 0.00 200,000.00 LOANS & GRANTS408.6414.44600 0.07 199,869.46 130.54 0.00 0.00 200,000.00 OTHER SERVICES & CHARGES CAPITAL OUTLAY 0.00 200,000.00 0.00 0.00 0.00 200,000.00 LAND408.6414.45110 0.00 200,000.00 0.00 0.00 0.00 200,000.00 CAPITAL OUTLAY 0.03 399,869.46 130.54 0.00 0.00 400,000.00 Total Dept 6414 - COMMERCIAL REVITALIZATION 5.66 377,359.92 22,640.08 4,601.75 0.00 400,000.00 TOTAL EXPENDITURES Fund 408 - EDA REDEVELOPMENT PROJECT FD:28 Item 2. REVENUE AND EXPENDITURE REPORT FOR CITY OF COLUMBIA HEIGHTS 10/10Page:08/18/2025 01:05 PM User: suems DB: Columbia Heights PERIOD ENDING 07/31/2025 % BDGT USED UNENCUMBERED BALANCE YTD BALANCE 07/31/2025 ACTIVITY FOR MONTH 07/31/25 ENCUMBERED YEAR-TO-DATE 2025 AMENDED BUDGETDESCRIPTIONGL NUMBER Fund 408 - EDA REDEVELOPMENT PROJECT FD 90.56 47,640.08 (22,640.08)(4,601.75)0.00 25,000.00 NET OF REVENUES & EXPENDITURES 5.66 377,359.92 22,640.08 4,601.75 0.00 400,000.00 TOTAL EXPENDITURES 0.00 425,000.00 0.00 0.00 0.00 425,000.00 TOTAL REVENUES 2,575.12 381,168.32 (385,243.67)(28,607.32)(11,324.65)(15,400.00)NET OF REVENUES & EXPENDITURES 24.38 1,334,968.37 419,106.98 33,440.65 11,324.65 1,765,400.00 TOTAL EXPENDITURES - ALL FUNDS 1.94 1,716,136.69 33,863.31 4,833.33 0.00 1,750,000.00 TOTAL REVENUES - ALL FUNDS 29 Item 2. ITEM: Purchase of 4510 Taylor St NE. DEPARTMENT: Community Development BY/DATE: CD Coordinator, 08/28/2025 CORE CITY STRATEGIES: (please indicate areas that apply by adding an “X” in front of the selected text below) X Community that Grows with Purpose and Equity _High Quality Public Spaces X Safe, Accessible and Built for Everyone X Engaged, Effective and Forward-Thinking _Resilient and Prosperous Economy _Inclusive and Connected Community BACKGROUND: Staff are bringing forth for consideration the purchase of real property located at 4510 Taylor St NE. The subject property is residentially zoned (R-2A) and is the site of a one-bedroom, one-bathroom house that was built in 1946. The City’s Building Inspector recently conducted a time-of-sale inspection of the house in preparation for its sale. While communicating with the seller’s representative, the Inspector identified that the property had not yet been listed and that the seller might be open to discussing purchase options with the City. Community Development staff arranged with the seller’s representative to visit the property. During their visit, staff determined that the property would be a good fit for residential redevelopment: the house was vacant, had been subject to water damage, and would need repairs amounting to tens of thousands of dollars to make it habitable again. The cost of the necessary repairs would be disproportionate to the small size of the house, which measures only approximately 588 square feet . The property is also non-conforming with regard to parking because it does not have a garage. Anoka County currently lists the estimated market value of the land – with no buildings – at $86,000. The seller’s representative indicated they had received two offers above this price. After consultation with CD staff, Director Forney made an initial verbal offer of $100,000 for purchase of the property, plus closing costs, and explained that this offer was contingent on approval by the EDA. The seller, Kirk Miller, verbally accepted this offer. The City then followed up with a written offer letter , which the seller also acknowledged. By purchasing this residential property, the EDA would create an opportunity to engage with partners to provide a new housing unit or units on the site. Like in previous redevelopment projects, the EDA could work with a group like Better Futures to deconstruct the house for recycling and reuse of salvageable materials. The City’s Fire and Police Departments might be able to use the site for training. After demolition, the EDA could choose to work with an organization like Habitat for Humanity or with a private developer for the construction of new housing. Staff are of the opinion that the purchase and redevelopment of the property by the EDA would provide more opportunities than would be possible with private purchase and renovation of the existing structure. ECONOMIC DEVELOPMENT AUTHORITY AGENDA SECTION BUSINESS ITEMS MEETING DATE 09/02/2025 30 Item 3. City of Columbia Heights - EDA Letter Page 2 Each year, the EDA budgets $200,000 for property acquisition through Redevelopment Fund 408, specifically through the Commercial Revitalization Program. The EDA has not yet spent these funds in 2025. Staff therefore suggest that the EDA use Redevelopment Fund 408 Commercial Revitalization dollars to finance the purchase of 4510 Taylor. The purchase and redevelopment of this site are consistent with the goals of Redevelopment Fund 408, but because the property is not commercially zoned an amendment to the 2025 budget will be necessary to allocate funds for this specific site. This proposal aligns with the EDA’s 2025 goal of continuing to administer the EDA’s Commercial Revitalization Program to address substandard and non - conforming housing stock. Resolution 2025-24 approves the draft purchase agreement, amends the 2025 budget, and allocates an additional $70,000 to related site preparation costs. These related project costs include closing costs, hazardous material abatement (such as asbestos and trash removal), tree removal, and demolition. Any excess funds remaining once demolition and grading have been completed will be returned to EDA Redevelopment Fund 408. STAFF RECOMMENDATION: Community Development staff recommend that the EDA pass Resolution 2025-24 to approve purchase of the property at 4510 Taylor St NE for residential redevelopment. RECOMMENDED MOTION(S): MOTION: Move to waive the reading of Resolution 2025-24, there being ample copies available to the public. MOTION: Move to adopt Resolution 2025-24, a Resolution of the Columbia Heights Economic Development Authority, approving the purchase agreement between the Columbia Heights Economic Development Authority and Kirk Miller. ATTACHMENT(S) 1. Resolution 2025-24 2. Draft Purchase Agreement 4510 Taylor St NE 3. Preliminary Offer Letter 4510 Taylor St NE 4. Site Map 31 Item 3. 4905-3421-1171.1 RESOLUTION NO. 2025-24 A RESOLUTION APPROVING THE PURCHASE AGREEMENT BETWEEN THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY AND KIRK MILLER. BE IT RESOLVED BY the Board of Commissioners ("Board") of the Columbia Heights Economic Development Authority (the "Authority") as follows: SECTION 1. RECITALS. 1.01. The Authority and Kirk Miller and any other individual with a legal interest in the Property hereafter defined (“Seller”) desire to enter into a purchase agreement (the “Purchase Agreement”) pursuant to which the Authority will acquire certain property in the City located at 4510 Taylor St NE (the “Property”) from the Seller for economic redevelopment purposes. The Property is described in Exhibit A attached hereto. 1.02. Pursuant to the Purchase Agreement, the Authority will purchase the Property from the Seller for a purchase price of $100,000 plus related closing costs. 1.03. The Authority finds that acquisition of the Property is consistent with the City’s Comprehensive Plan and will result in redevelopment of the Property, which constitutes substandard property. Such acquisition of this Property, for subsequent resale and redevelopment (the “Redevelopment Project”), best meets the community’s needs and will facilitate the economic redevelopment and revitalization of this area of the City. 1.04. The Authority also finds that the Redevelopment Project is consistent with the purpose of the Economic Development Authority Redevelopment Fund 408. The current 202 5 budget for Economic Development Authority Redevelopment Fund 408 does not include the Redevelopment Project and must be amended as the Property was not available on September 3, 2024, when the Authority adopted this budget. The available balance of the Economic Development Authority Redevelopment Fund 408, beyond that committed for the existing 2025 budget, is approximately $500,000, which is more than sufficient to finance the Redevelopment Project. SECTION 2. PURCHASE AGREEMENT AND BUDGET AMENDMENT APPROVED. 2.01. The Authority hereby ratifies and approves the actions of Authority staff and of Kutak Rock LLP (“Legal Counsel”) in researching the Property and preparing and presenting the Purchase Agreement. The Authority approves the Purchase Agreement substantially in the form presented to the Authority and on file at City Hall, subject to modifications that do not alter the substance of the transaction and that are approved by the President and Executive Director, provided that execution of the Purchase Agreement by those officials shall be conclusive evidence of their approval. 2.02. The Authority hereby amends the 2025 budget for Economic Development Authority Redevelopment Fund 408 to appropriate $100,000 for the purchase agreement and $70,000 for additional estimated project costs relating to the Redevelopment Project, including but not limited to closing costs, hazardous material abatement, tree removal, and demolition. 2.03. Authority staff and officials are authorized to take all actions necessary to perform the Authority’s obligations under the Purchase Agreement as a whole, including withou t limitation execution of any documents to which the Authority is a party referenced in or attached to the Purchase Agreement, and any 32 Item 3. 4905-3421-1171.1 deed or other documents necessary to acquire the Property from the Seller, all as described in the Purchase Agreement. ORDER OF ECONOMIC DEVELOPMENT AUTHORITY Adopted this 2nd day of September, 2025 Offered by: Seconded by: Roll Call: President Attest: Secretary 33 Item 3. 4905-3421-1171.1 EXHIBIT A Legal Description of the Property LOT 13 & LOT 14 EX S 20 FT BLOCK 6 SHEFFIELDS 2ND SUB, EX RD SUBJ TO EASE OF REC, according to the plat on file in the Office of the Registrar of Titles of Anoka County, State of Minnesota. 34 Item 3. 4933-8541-9875.3 Second Draft August 28, 2025 PURCHASE AGREEMENT THIS PURCHASE AGREEMENT (the “Agreement”) is made as of this ____ day of __________________, 2025, by and between Kirk Miller [, a single individual] OR [and __________, a married couple ([collectively, ]the “Seller”), and the Columbia Heights Economic Development Authority, a public body corporate and politic under the laws of the State of Minnesota (the “Buyer”). RECITALS The Seller is the owner of property located at: 4510 Taylor Street NE, Columbia Heights, Anoka County, Minnesota (PID No. 25-30-24-33-0095), which is legally described in EXHIBIT A attached hereto (the “Property”). AGREEMENT 1. Offer/Acceptance for Sale of Property. The Seller agrees to sell to the Buyer the Property and the Buyer agrees to purchase the same, according to the terms of this Agreement. 2. Purchase Price for Property and Terms. A. PURCHASE PRICE: The total purchase price for the Property is One Hundred Thousand and 00/100ths Dollars ($100,000.00) (the “Purchase Price”). B. TERMS: (1): Earnest Money. The sum of [One Thousand] Dollars ($[1,000.00]) (the “Earnest Money”) shall be paid by the Buyer to the Seller, receipt of which is hereby acknowledged by the Seller. (2): Balance Due Seller. The Buyer agrees to pay by check or electronic transfer of funds on the date of closing on the Property (the “Closing Date”) any remaining balance of the Purchase Price due to the Seller according to the terms of this Agreement. (3): Deed/Marketable Title. Subject to performance by the Buyer, the Seller agrees to execute and deliver a Personal Representative’s Deed conveying marketable title to the Property to the Buyer, subject only to the following exceptions: (a) Building and zoning laws, ordinances, state, and federal regulations. (b) Reservation of minerals or mineral rights to the State of Minnesota, if any. (c ) Public utility and drainage easements of record which will not interfere with the Buyer’s intended use of the Property. (4): Documents to Be Delivered at Closing by the Seller. In addition to the Personal Representative’s Deed required at paragraph 2B(3) above, the Seller shall deliver to the Buyer: 35 Item 3. 2 4933-8541-9875.3 (a) Standard form Affidavit of Seller. (b) A “bring-down” certificate, certifying that all of the warranties made by the Seller in this Agreement remain true as of the Closing Date. (c) Certificate that the Seller is not a foreign national. (d) Well disclosure certification, if required, or, if there is no well on the Property, the Personal Representative’s Deed given pursuant to paragraph 2B(3) above must include the following statement: “The Seller certifies that the Seller does not know of any wells on the described real property.” The Seller agrees to have all wells located on the Property, which are not in use, sealed by a licensed well contractor at the Seller’s expense prior to closing. If the circumstances prohibit locating and sealing wells prior to closing, the Seller agrees to escrow funds on the Closing Date for the purpose of locating and sealing wells. (e) Methamphetamine Disclosure Certificate. (f) Any other documents reasonably required by the Buyer’s title insurance company or attorney to evidence that title to the Property is marketable and that the Seller ha s complied with the terms of this Agreement. 3. Contingencies. The Buyer’s obligation to buy is contingent upon the following: (a) The Buyer’s determination of marketable title pursuant to paragraph 4 of this Agreement; (b) Approval of this Agreement by the Board of Commissioners of the Buyer. The Buyer shall have until the Closing Date to remove the foregoi ng contingencies. The contingency at item (a) is solely for the benefit of the Buyer and may be waived by the Buyer. The contingency at item (b) may not be waived by either party. If the Buyer or its attorney gives written notice to the Seller that the contingencies at items (a) and (b) are duly satisfied or waived, the Buyer and the Seller shall proceed to close the transaction as contemplated herein. If one or more of the Buyer’s or the Seller’s contingencies is not satisfied, or is not satisfied on time, and is not waived, this Agreement shall thereupon be void at the written option of the Buyer and the Seller shall return the Earnest Money to the Buyer, and the Buyer and the Seller shall execute and deliver to each other a termination of this Agreement. As a contingent Agreement, the termination of this Agreement is not required pursuant to Minn. Stat., Section 559.21, et. seq. 4. Title Examination/Curing Title Defects. As soon as reasonably possible after execution of this Agreement by both parties: (a) The Seller shall surrender any abstract of title, certificate of title, or a copy of any owner’s title insurance policy for the Property, if in the Seller’s possession or control, to the Buyer or to the Buyer’s designated title service provider; and (b) The Buyer shall obtain the title evidence determined necessary or desirable by the Buyer. 36 Item 3. 3 4933-8541-9875.3 The Buyer shall have twenty (20) days from the date it receives such title evidence and a fully executed Agreement to raise in writing any objections to title it may have. Objections not made within such time will be deemed waived. The Seller shall have thirty (30) days from the date of such objection to effect a cure; provided, however, that the Seller shall have no obligation to cure any objections, and may inform the Buyer in writing of such. The Buyer may then elect to close notwithstanding the uncured objections or declare this Agreement null and void, and the parties will thereby be released from any further obligation hereunder. 5. Environmental Warranty. The Seller warrants that the Property has not been used for production, storage, deposit, or disposal of any toxic or hazardous waste or substance, petroleum product, or asbestos product during the period of time the Seller has owned the Property. The Seller further warrants that the Seller has no knowledge or information of any fact which would indicate the Property was used for production, storage, deposit, or disposal of any toxic or hazardous waste or substance, petroleum product, or asbestos product prior to the date the Seller purchased the Property. 6 Real Estate Taxes and Special Assessments. Real estate taxes payable in the year of closing will be prorated between the Buyer and the Seller as of the Closing Date. The Seller shall pay all real estate taxes payable in previous years. The Seller agrees to pay all assessments levied or pending prior to the Closing Date (including, but not limited to, delinquent water or sewer bills, waste management fees, etc.), including those charges levied, pending, or certified to taxes payable in the year of closing. If closing occurs prior to the date the amount of real estate taxes due in the year of closing are available from Anoka County, the current year’s taxes will be prorated based on the amount due in the prior year. 7. Closing Date. The Closing Date will be on or before ________, 2025. Delivery of all papers and the closing shall be made at the offices of Buyer, 3989 Central Avenue NE, Columbia Heights, Minnesota 55421, or at such other location as is mutually agreed upon by the parties. All deliveries and notices to the Buyer shall be made to the above address and marked to the attention of the Community Development Coordinator. 8. Possession/Utilities/Removal of Property/Escrow. (a) Possession. The Seller agrees to deliver possession of the Property not later than the Closing Date. (b) Utilities. City of Columbia Heights (the “City”) water and sewer charges, electricity and natural gas charges, fuel oil and liquid petroleum gas shall be pro-rated between the parties as of the Closing Date. The Seller shall arrange for final readings as of the Closing Date. (c) Personal Property and Debris. The Seller must remove all debris and personal property not included in this sale, including all furniture from the Property prior to closing. The Buyer may inspect the Property immediately prior to closing in order to ensure that removal of all debris and personal property has been completed. 9. Seller’s Warranties. The Seller hereby represent s and warrants to the Buyer as of the Closing Date that: (a) Title. The Seller has good, indefeasible, and marketable fee simple title to the Property. 37 Item 3. 4 4933-8541-9875.3 (b) Condemnation. There is no pending or, to the actual knowledge of the Seller, threatened condemnation or similar proceeding affecting the Property or any portion thereof, and the Seller has no actual knowledge that any such action is contemplated. (c) Defects. The Seller is not aware of any latent or patent defects in the Property, such as sinkholes, weak soils, unrecorded easements, or restrictions. (d) Legal Compliance. The Seller has complied with all applicable laws, ordinances, regulations, statutes, rules, and restrictions pertaining to and affecting the Property and the Seller shall continue to comply with such laws, ordinances, regulations, statutes, rules, and restrictions. (e) Legal Capacity. The Seller has the legal capacity to enter into this Agreement. The Seller has not filed, voluntarily or involuntarily, for bankruptcy relief within the last year under the United States Bankruptcy Code, nor has any petition for bankruptcy or receivership been filed against the Seller within the last year. (f) Sewer and Water. The Seller warrant s that the Property is connected to City sewer and City water. (g) Mechanics’ Liens. The Seller warrants that, prior to the closing, the Seller shall pay in full all amounts due for labor, materials, machinery, fixtures, or tools furnished within the one hundred twenty (120) days immediately preceding the closing in connection with construction, alteration, or repair of any structure upon or improvement to the Property. (h) Legal Proceedings. There are no legal actions, suits, or other legal or administrative proceedings, pending or threatened, that affect the Property or any portion thereof; and the Seller has no knowledge that any such action is presently contemplated. (i) Leases. The Seller represents that there are no third parties in possession of the Property, or any part thereof; and that there are no other leases, oral or written affecting the Property or any part thereof. (j) Foreign Status. The Seller is not “foreign persons” as such term is defined in the Internal Revenue Code of 1986. (k) Methamphetamine Production. To the best of the Seller’s knowledge, methamphetamine production has not occurred on the Property. (l) Refuse and Hazardous Materials. The Seller has not performed and has no actual knowledge of any excavation, dumping, or burial of any refuse materials or debris of any nature whatsoever on the Property. To the Seller’s best actual knowledge and belief, there are no “Hazardous Materials” (as hereinafter defined) on the Property that would subject the Buyer to any liability under either federal or state laws, including, but not limited to, the disposal of any foreign objects or materials upon or in the Property, lawful or otherwise. Without limiting the generality of the foregoing, the Seller represent s and warrants to the Buyer that, to the Seller’s best actual knowledge and belief: (1) The Property is not now and has never been used to generate, manufacture, refine, transport, treat, store, handle, dispose, transfer, produce, process, or in any manner deal with Hazardous Materials; 38 Item 3. 5 4933-8541-9875.3 (2) No Hazardous Materials have ever been installed, placed, or in any manner handled or dealt with on the Property; (3) There are no underground or aboveground storage tanks on the Property; (4) Neither the Seller nor any prior owner of the Property or any tenant, subtenant, occupant, prior tenant, prior subtenant, prior occupant, or person (collectively, “Occupant”) have received any notice or advice from any governmental agency or any other Occupant with regard to Hazardous Materials on, from, or affecting the Property. The term “Hazardous Materials” as used herein includes, without limitation, gasoline, petroleum products, explosives, radioactive materials, hazardous materials, hazardous wastes, hazardous or toxic substances, polychlorinated biphenyls or related or similar materials, asbestos or any material containing asbestos, or any other substance or material as may be defined as a hazardous or toxic substance by any federal, state, or local environmental law, ordinance, rule, or regulation including, without limitation, the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended (42 U.S.C. Section 9601, et seq.), the Hazardous Materials Transportation Act, as amended (42 U.S.C. Section 1801, et seq.), the Resource Conservation and Recovery Act, as amended (42 U.S. C. Section 1251, et seq.), the Clean Air Act, as amended (42 U.S.C. Section 7401, et seq.) and in the regulations adopted and publications promulgated pursuant thereto. The Seller’s representations and warranties set forth in this Section shall be continuing and are deemed to be material to the Buyer’s execution of this Agreement and the Buyer’s performance of its obligations hereunder. All such representations and warranties shall be true and correct on and as of the Closing Date with the same force and effect as if made at that time; and all of such representations and warranties shall survive the closing and any cancellation or termination of this Agreement, and shall not be affected by any investigation, verification or approval by any party hereto or by anyone on behalf of any party hereto. The Seller agrees to defend, indemnify, and hold the Buyer harmless for, from, and against any loss, costs, damages, expenses, obligations, and attorneys’ fees incurred should an assertion, claim, demand, action, or cause of action be instituted, made, or taken, which is contrary to or inconsistent with the representations or warranties contained herein. 10. Closing Costs/Recording Fees/Deed Tax. The Buyer will pay: (a) title insurance premium costs; (b) the recording fee for the deed transferring title to the Buyer; (c) any transfer taxes, recording fees and Well Disclosure fees required to enable the Buyer to record its deed from the Seller under this Agreement; and (d) the closing fee charged by the title insurance or other closing agent, if any, utilized to close the transaction contemplated by this Agr eement. The Seller will pay: (i) any transfer or deed taxes due and payable in the year of closing on and after the Closing Date; (ii) any fees and charges related to the filing of any instrument required to make title marketable; and (iii) the cost of the title insurance commitment and any title searches and examination fees. Each party shall pay its own attorneys’ fees. 11. Relocation Benefits; Indemnification. The Seller acknowledges that the Seller is being displaced from the Property as a result of the transaction contemplated by this Purchase Agreement and that the Seller may be eligible for relocation assistance and benefits and that the Purchase Price includes compensation for any and all relocation assistance and benefits for which the Seller may be eligible and the Seller agrees to waive any and all further relocation assistance benefits. The provisions of this paragraph shall survive closing of the transaction contemplated by this Agreement. 12. Risk of Loss. If there is any loss or damage to the Property between the date hereof and the Closing Date, for any reason including fire, vandalism, flood, earthquake, or act of God, the risk of loss 39 Item 3. 6 4933-8541-9875.3 shall be on the Seller. If the Property is destroyed or substantially damaged before the Closing Date, this Agreement may become null and void, at the Buyer’s option. At the request of the Buyer, the Seller agrees to sign a cancellation of this Agreement. 13. Default/Remedies. If the Buyer defaults in any of the covenants herein, the Seller may terminate this Agreement, and on such termination all payments made hereunder shall be retained by the Seller as liquidated damages, time being of the essence. This provision shall not deprive either party of the right to enforce specific performance of this Agreement, provided this Agreement has not terminated and action to enforce specific performance is commenced within six (6) months after such right of action arises. In the event the Buyer defaults in its performance of the terms of this Agreement and Notice of Cancellation is served upon Buyer pursuant to Minn. Stat. Section 559.21, the termination period shall be thirty (30) days as permitted by Minn. Stat., Section 559.21, subd. 4. 14. Notice. Any notice, demand, request, or other communication which may or shall be given or served by the parties, shall be deemed to have been given or served on the date the same is personally served upon one of the following indicated recipients for notices or is deposited in the United States Mail, registered or certified, return receipt requested, postage prepaid and addressed as follows: SELLER: Kirk Miller 5371 Osprey Court Fontana, CA 92336 BUYER: Columbia Heights Economic Development Authority Attn: Executive Director 3989 Central Avenue NE Columbia Heights, MN 55421 AGENT: Kutak Rock LLP Attn: Sofia Lykke, Esq. 60 South Sixth Street, Suite 3400 Minneapolis, MN 55402 Notice may also be made by email or other electronic transmission provided that the recipient of such notice has acknowledged receipt. Any party may change its address for the service of notice by giving notice of such change in accordance with this paragraph. 15. Entire Agreement. This Agreement, including all exhibits, and other amendments signed by the parties, shall constitute the entire Agreement between the Seller and the Buyer, and supersedes any other written or oral agreements between the parties relating to the Property. This Agreement can be modified only in a writing properly signed by both the Seller and the Buyer. 16. Commissions. Both the Buyer and the Seller represent and warrant to the other that they have not entered into a contract with any real estate broker, finder, or other person entitled to a commission, finder’s fee, or similar from the transaction contemplated by this Agreement. Each party agrees to indemnify, defend, and hold harmless the other party against any claim made by any broker, finder, or other person for a commission or fee based on alleged acts or agreements with the indemnifying party. 17. Controlling Law. This Agreement has been made under the substantive laws of the State of Minnesota, and such laws shall control its interpretation. 40 Item 3. 7 4933-8541-9875.3 18. Survival. Notwithstanding any other provisions of law or court decision to the contrary, the provisions of this Agreement shall survive closing. 19. Counterparts. This Agreement may be executed in any number of counterparts, each of which will, for all purposes, be deemed to be an original, and all of which are identical. This Agreement may be further evidenced by electronic signature pages. 20. Binding Effect. This Agreement binds and benefits the parties and their heirs, successors and assigns. (The remainder of this page is intentionally left blank.) 41 Item 3. S-1 4933-8541-9875.3 IN WITNESS WHEREOF, the undersigned have executed this Purchase Agreement as of the date and year first written above. SELLER: By: ________________________________ Kirk Miller By: ________________________________ [Spouse, if any] 42 Item 3. S-2 4933-8541-9875.3 BUYER: Columbia Heights Economic Development Authority By: ________________________________ Its: President By: ________________________________ Its: Executive Director 43 Item 3. A-1 4933-8541-9875.3 EXHIBIT A LEGAL DESCRIPTION OF THE PROPERTY LOT 13 & LOT 14 EX S 20 FT BLOCK 6 SHEFFIELDS 2ND SUB, EX RD SUBJ TO EASE OF REC, according to the plat on file in the Office of the Registrar of Titles of Anoka County, State of Minnesota. 44 Item 3. 45 Item 3. Anoka County Parcel Viewer 8/20/2025, 2:19:34 PM 0 50 10025 ft 0 10 205 m 1:600 Web AppBuilder for ArcGIS 46 Item 3. ITEM: 2026 EDA Budget Approval. DEPARTMENT: Community Development BY/DATE: Mitchell Forney, 8-12-25 CORE CITY STRATEGIES: X Community that Grows with Purpose and Equity _High Quality Public Spaces _Safe, Accessible and Built for Everyone _Engaged, Effective and Forward-Thinking X Resilient and Prosperous Economy _Inclusive and Connected Community BACKGROUND In September, the proposed budget for the 2026 fiscal year will be distributed to the City Council. Before the City Council completes its final review of the proposed budget, the Columbia Heights Economic Development Authority (“EDA”) and the Housing and Redevelopment Authority in and for the City of Columbia Heights (“HRA”) are required to adopt fund budgets for Fund 204: EDA Administration and Fund 408: EDA Redevelopment Projects, and to authorize their respective 2025 tax levies, payable in 2026. The EDA effectively has two separate tax levies after the City Council granted the EDA certain HRA powers in 1996. One tax levy is administered by the City under Minnesota Statutes, Section 469.107 on behalf of the EDA (the “EDA Levy”), and the other is a special benefit tax levy administered by the EDA under Minnesota Statutes, Section 469.033 on behalf of the HRA (the “HRA Levy”). The proposed fund budgets reflect total levels within the statutory limits. 2025 2026 204 Budgeted $ 375,000 $ 413,900 204 Budgeted Expenditures $ 309,000 $ 333,900 204 Transfer to 408 $ 65,000 $ 80,000 408 Budgeted $ 425,000 $ 420,000 408 With Transferred funds $ 490,000 $ 500,000 408 Budgeted Expenditures $ 490,000 $ 500,000 204 & 408 Combined Total $ 800,000 $ 833,900 Above is a chart showing the differences between the budget of 2025 and staff’s proposed budget for 2026. As the Authority can see there is an increase in budgeted amount for 204. This is attributed to the loss of funds in the 408 HRA Levy, and the increase in operating costs for staff time and EDA administrative costs. The increase in EDA administrative costs is better exemplified by the change in 204 Budgeted Expenditures column as it removes the transfer out to 408. The budgeted 408 fund has a $5,000 decrease due to the fact that the City’s market value has decreased since last year, reducing the amount the EDA can levy via the HRA levy. The last item of note is the $10,000 increase in funding and expenditures in 408. Staff’s budget recommendation, ECONOMIC DEVELOPMENT AUTHORITY AGENDA SECTION BUSINESS ITEMS MEETING DATE 09/02/2025 47 Item 4. City of Columbia Heights - Council Letter Page 2 shown below, is the same as last year but with the addition of $10,000 in funds for the administration costs of the Naturally Occurring Affordable Housing Loan Program. Use Amount Façade Improvement $ 80,000 Fire Suppression $ 100,000 Revitalization $ 300,000 NOAH Loan Admin Costs $ 10,000 Business Art Program/Public Art Initiative $ 10,000 Total $ 500,000 Ultimately, staff’s proposal results in a 9.3% increase in the EDA Levy and a 1.2 % decrease in the HRA levy. Similar to the process followed last year, any increase the EDA levy must follow the public hearing and approval process identified in MN Statutes section 469.107 (attached). STAFF RECOMMENDATION Staff’s recommendation is reflected in the attached resolutions. If, after further discussion, the EDA would like to alter the amount on the budget resolutions, amendment motions can be made at the meeting. The other remaining documents cover the breakdown of which priorities the levied funds are attributed to. For more detail, please refer to the attached summary budgets. RECOMMENDED MOTION(S): MOTION: Move to waive the reading of Resolution 2025-22 and 2025-23, there being ample copies available to the public. MOTION: Move to adopt Resolution 2025-22, a resolution of the Columbia Heights Economic Development Authority, adopting a budget for the fiscal year of 2026 and setting the 2025 tax levy, payable in 2026. MOTION: Move to adopt Resolution 2025-23, a resolution of the Columbia Heights Economic Development Authority, adopting a budget for the fiscal year of 2026 and authorizing a special benefit tax levy, payable in 2026. ATTACHMENT(S) 1. Levy Calculations Chart 2. Resolution 2025-22 3. Resolution 2025-23 4. MN Statutes section 469.107 5. Budget Summaries 48 Item 4. CCH EDA/HRA Levy Valuation Applicable (b) EDA HRA Budget Year (a) Market Value Levy Limit Levy Limit Year (a) EDA Levy HRA Levy 2008 1,446,275,700 0.01813% 0.01850% 2009 80,000 267,561 Adopted 2009 1,420,604,300 0.01813% 0.01850% 2010 83,971 262,556 Adopted 2010 1,299,323,500 0.01813% 0.01850% 2011 84,811 240,374 Adopted 2011 1,181,497,100 0.01813% 0.01850% 2012 84,811 218,343 Adopted 2012 998,667,376 0.01813% 0.01850% 2013 84,811 184,753 Adopted 2013 993,984,300 0.01813% 0.01850% 2014 84,000 183,887 Adopted 2014 954,475,000 0.01813% 0.01850% 2015 84,000 176,578 Adopted 2015 1,093,861,500 0.01813% 0.01850% 2016 78,023 202,364 Adopted 2016 1,132,257,300 0.01813% 0.01850% 2017 84,000 209,468 Adopted 2017 1,214,009,300 0.01813% 0.01850% 2018 220,100 224,592 Adopted 2018 1,335,438,300 0.01813% 0.01850% 2019 242,100 247,000 Adopted 2019 1,466,682,000 0.01813% 0.01850% 2020 245,100 250,100 Adopted 2020 1,666,215,700 0.01813% 0.01850% 2021 255,500 250,000 Adopted 2021 1,677,580,500 0.01813% 0.01850% 2022 255,500 310,000 Adopted 2022 1,808,577,800 0.01813% 0.01850% 2023 297,100 310,000 Adopted 2023 2,232,137,100 0.01813% 0.01850% 2024 310,000 310,000 Adopted 2024 2,313,390,800 0.01813% 0.01850% 2025 375,000 425,000 Adopted 2025 2,284,174,100 0.01813%0.01850%2026 414,105 422,554 Max Allowed Note (a): There is a one year lag in the market values used for the EDA & HRA levy limits. For example, the market values used for regular property taxes payable in 2019, are the values used to calculate the limit for EDA & HRA levies for taxes payable in 2020. Note (b): For payable years prior to 2014, the applicable value was the Taxable Market Value For payable years after 2013, the applicable value is the Assessor's Estimated Market Value 49 Item 4. Resolution 2025-22 RESOLUTION NO. 2025-22 A RESOLUTION OF THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY, ADOPTING A BUDGET FOR THE FISCAL YEAR OF 2026 AND SETTING THE 2025 TAX LEVY, PAYABLE IN 2026. BE IT RESOLVED, by the Columbia Heights Economic Development Authority (the “EDA”) as follows: WHEREAS, the City of Columbia Heights (the “City”) established the EDA by an enabling resolution adopted on January 8, 1996, pursuant to Minnesota Statutes 469.090 to 469.1081 (the “EDA Act”); and WHEREAS, the City Council of the City has given to the EDA the responsibility for all development and redevelopment projects and programs; and WHEREAS, under Section 469.107 of the EDA Act, the City is authorized to levy a tax for the benefit of the EDA on its area of operation for the purposes authorized under the EDA Act, subject to the approval of the City Council; NOW, THEREFORE BE IT RESOLVED, that, after appropriate examination and due consideration, the Board of Commissioners of the Columbia Heights Economic Development Authority herby: 1. Adopts and requests the City Council’s approval of its budget in the amount of $413,900 for 2026; and 2. Adopts and requests the City Council’s approval of an EDA tax levy under Section 469.107 of the EDA Act, in the amount of $413,900 for taxes payable in 2026; and 3. Authorizes the transfer of $80,000 from EDA Administration Fund 204 to EDA Redevelopment Fund 408; and 4. Instructs the Executive Director to transmit a copy of this resolution to the City Manager, Finance Director, and City Clerk of the City of Columbia Heights, Minnesota. ORDER OF ECONOMIC DEVELOPMENT AUTHORITY Passed this 2nd day of September, 2025 Offered by: Seconded by: Roll Call: President Attest: Secretary 50 Item 4. Resolution 2025-23 RESOLUTION NO. 2025-23 A RESOLUTION OF THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY, ADOPTING A BUDGET FOR THE FISCAL YEAR OF 2026 AND AUTHORIZING A SPECIAL BENEFIT TAX LEVY, PAYABLE IN 2026. BE IT RESOLVED, by the Columbia Heights Economic Development Authority (the “EDA”) as follows: WHEREAS, the City of Columbia Heights (the “City”) established the EDA by an enabling resolution adopted on January 8, 1996, pursuant to Minnesota Statutes 469.090 to 469.1081 (the “EDA Act”); and WHEREAS, the City Council granted the EDA all powers and duties of a housing and redevelopment authority by an enabling resolution and ordinance adopted on October 22, 2001, pursuant to Minnesota Statutes 469.001 to 469.047 (the "HRA Act"), except certain powers that are allocated to the Housing and Redevelopment Authority in and for the City of Columbia Heights (the “HRA”); and WHEREAS, under Section 469.033 of the HRA Act, the EDA is authorized to levy a special benefit tax, in an amount not to exceed .0185 percent of the City’s estimated market value (the “HRA Levy”); and WHEREAS, by separate resolution, the EDA has before it for consideration a copy of the EDA budget for the fiscal year of 2026, and the proposed amount of the HRA Levy, payable in 2026, is based on said budget; NOW, THEREFORE BE IT RESOLVED, that, after appropriate examination and due consideration, the Board of Commissioners of the Columbia Heights Economic Development Authority herby: 1. adopts an HRA Levy payable in 2026 of $420,000 under Section 469.033 of the HRA Act; and 2. directs staff to take such actions necessary to file with the City and certify with the County of Anoka County, the HRA Levy in the amount of $420,000 for taxes payable in 2026 under Section 469.033 of the HRA Act. ORDER OF ECONOMIC DEVELOPMENT AUTHORITY Passed this 2nd day of September, 2025 Offered by: Seconded by: Roll Call: President Attest: Secretary 51 Item 4. 469.107 CITY MAY LEVY TAXES FOR ECONOMIC DEVELOPMENT AUTHORITY.​ Subdivision 1.City tax levy.A city may, at the request of the authority, levy a tax in any year for the​ benefit of the authority. The tax must be not more than 0.01813 percent of estimated market value. The​ amount levied must be paid by the city treasurer to the treasurer of the authority, to be spent by the authority.​ The requirements of section 275.067 apply to an economic development authority that has not previously​ certified a levy.​ Subd. 2.Reverse referendum.A city may increase its levy for economic development authority purposes​ under subdivision 1 in the following way. Its city council must first pass a resolution stating the proposed​ amount of levy increase. The city must then publish the resolution together with a notice of public hearing​ on the resolution for two successive weeks in its official newspaper or if none exists in a newspaper of​ general circulation in the city. The hearing must be held two to four weeks after the first publication. After​ the hearing, the city council may decide to take no action or may adopt a resolution authorizing the proposed​ increase or a lesser increase. A resolution authorizing an increase must be published in the city's official​ newspaper or if none exists in a newspaper of general circulation in the city. The resolution is not effective​ if a petition requesting a referendum on the resolution is filed with the city clerk within 30 days of publication​ of the resolution. The petition must be signed by voters equaling five percent of the votes cast in the city in​ the last general election. The election must be held at a general or special election. Notice of the election​ must be given in the manner required by law. The notice must state the purpose and amount of the levy.​ History: 1987 c 291 s 108; 1988 c 719 art 5 s 84; 1989 c 277 art 4 s 64; 1992 c 511 art 5 s 13; 2013​ c 143 art 14 s 80; 2023 c 64 art 12 s 11​ Official Publication of the State of Minnesota​ Revisor of Statutes​ 469.107​MINNESOTA STATUTES 2024​1​ 52 Item 4. DEPARTMENT: ECONOMIC DEVELOPMENT AUTHORITY 204 COMMUNITY DEVELOPMENT Actual Actual Adopted Department City Manager Council 6314 ECONOMIC DEVELOPMENT AUTH.Expense Expense Budget Proposed Proposed Adopted Description 2023 2024 2025 2026 2026 2026 Personnel Services 251,800 241,300 250,100 266,600 266,600 - Supplies 100 2,300 800 800 800 - Other Services & Charges 27,600 34,700 33,000 40,900 40,900 - Capital Outlay - - - - - - Contingencies & Transfers 22,100 28,900 25,100 95,600 95,600 - TOTALS: ECONOMIC DEVELOPMENT AUTH301,600 307,200 309,000 403,900 403,900 - Activity Description Comments on Proposed Budget CITY OF COLUMBIA HEIGHTS, MINNESOTA BUDGET 2026 The Economic Development Authority coordinates several activities that both directly and indirectly act as a catalyst for improving the community's overall quality of life, business vitality, and economic performance. The main activities of Econom ic Development Authority staff include providing support to the Columbia Heights Economic Development Authority and the Housing & Redevelopment Authority in and for the City of Columbia Heights; leveraging public and private partnerships to increase the amount of reinvestment within the City; serving as project managers for development and redevelopment projects; writing and maintaining grants from governmental agencies and corporate institutions; preparing and maintaining Tax Increment Financing, Tax Abatement, and Private Activity Bond records; developing and implementing a Business Retention & Expansion programs; managing housing programs; and facilitating the acquisition and conveyance of City owned properties. The proposed 2026 budget is an increase of $94,900 or 31% higher than 2025, due to an EDA increase in project related funding. PERSONNEL SERVICES: Personnel services will increase by $16,500, or 6.6% due to having a full staff throughout the year. SUPPLIES: The Supplies budget will remain unchanged for 2026. OTHER SERVICES AND CHARGES: Other Services and Charges will increase by $7,900 to adequately reflect the anticipated workload of the department, and account for increases in Expert and Professional Services, Training and Education, Memberships, new telephones, and fund transfers to the EDA's Commercial Revitalization Fund. The largest increase of $70,500 will be regarding project based funds transferred to EDA Fund 408. This is to back fill a loss in market value and a 2026 decrease in HRA levy funds. These transfe rred funds will allow 408 to operate at the same level as 2025 in 2026. 53 Item 4. DEPARTMENT: COMMERCIAL REVITALIZATION 408 EDA REDEVELOPMENT PROJECT Actual Actual Adopted Department City Manager Council 6414 COMMERCIAL REVITALIZATION Expense Expense Budget Proposed Proposed Adopted Description 2023 2024 2025 2026 2026 2026 Personnel Services - - - - - - Supplies - - - - - - Other Services & Charges 73,800 209,500 200,000 20,000 20,000 - Capital Outlay 392,000 - 200,000 300,000 300,000 - Contingencies & Transfers - - - - - - TOTALS: COMMERCIAL REVITALIZATION465,800 209,500 400,000 320,000 320,000 - Activity Description Comments on Proposed Budget CITY OF COLUMBIA HEIGHTS, MINNESOTA BUDGET 2026 The Redevelopment Project Fund is a working capital fund designed to provide the resources necessary for the Columbia Heights Economic Development Authority to implement approved activities for the benefit of the community. The three approved activities covered previously within this fund are the Commercial Revitalization Project,the Facade Improvement Grant Program,and the Fire Suppression grants program. Fund 408-6414 specifically pertains to expenditures related to the EDA’s Commercial Revitalization program, future commercial art investments, and admin fee’s for the EDA’s Naturally Occurring Affordable Housing Loan Program. The proposed 2026 budget is an decrease of $80,000 or 20% less than the amended 2025 budget. This fund is supported by the Housing and Redevelopment Authority (HRA) Levy and is recognized in Fund 408. Fund 408 will continue to support redevelopment projects and program expenditures of the Columbia Heights Economic Development Authority (EDA),including the EDA’s Commercial Revitalization program, future commercial art investments, admin fee’s for the EDA’s Naturally Occurring Affordable Housing Loan Program, and strategic property acquisitions. The fund 408 budget is increasing by $10,000 in 2026 to accommodate one primary change. The $10,000 increase will be dedicated to cover administrative costs of executing the affordable trust funds grant or loan programs. Prior to 2026, the facade improvement grants were budgeted in this department. Beginning in 2026, that activity is segregated into its own department #6411 within EDA fund 408. Prior to 2026, the Fire Supression grants were budgeted in this department. Beginning in 2026, that activity is segregated into its own department #6418 within EDA fund 408. 54 Item 4. DEPARTMENT: EDA REDEVELOPMENT PROJECT FD 408 EDA REDEVELOPMENT PROJECT Actual Actual Adopted Department City Manager Council 6411 FAÇADE IMPROVEMENT GRANT Expense Expense Budget Proposed Proposed Adopted Description 2023 2024 2025 2026 2026 2026 Personnel Services ------ Supplies 30,500 ----- Other Services & Charges 12,500 38,400 -80,000 80,000 - Capital Outlay ------ Contingencies & Transfers ------ TOTALS: ECONOMIC DEVELOPMENT AUTH43,000 38,400 -80,000 80,000 - Activity Description Comments on Proposed Budget CITY OF COLUMBIA HEIGHTS, MINNESOTA BUDGET 2026 The Redevelopment Project Fund is a working capital fund designed to provide the resources necessary for the Columbia Heights Economic Development Authority to implement approved activities for the benefit of the community. The three approved activities covered previously within this fund are the Commercial Revitalization Project, the Facade Improvement Grant Program, and the Fire Suppression grants program. Fund 408-6411 specifically pertains to expenditures related to the EDA’s Facade Improvement Grant Program. In 2025, the EDA established its ongoing budget and allocations for various programs and initiatives. In alignment with that decision, staff are proposing to maintain the same expenditure level of $80,000 for the Facade Improvement Grant Program 2026. 55 Item 4. DEPARTMENT: FIRE SUPPRESSION GRANT 408 EDA REDEVELOPMENT PROJECT Actual Actual Adopted Department City Manager Council 6418 FIRE SUPPRESSION GRANT Expense Expense Budget Proposed Proposed Adopted Description 2023 2024 2025 2026 2026 2026 Personnel Services - - - - - - Supplies - - - - - - Other Services & Charges - 74,400 - 100,000 100,000 - Capital Outlay - - - - - - Contingencies & Transfers - - - - - - TOTALS: FIRE SUPPRESSION GRANT - 74,400 - 100,000 100,000 - Activity Description Comments on Proposed Budget CITY OF COLUMBIA HEIGHTS, MINNESOTA BUDGET 2026 The Redevelopment Project Fund is a working capital fund designed to provide the resources necessary for the Columbia Heights Economic Development Authority to implement approved activities for the benefit of the community. The three approved activities covered previously within this fund are the Commercial Revitalization Project,the Facade Improvement Grant Program,and the Fire Suppression grants program. Fund 408-6418 specifically pertains to expenditures related to the EDA’s Fire Suppression Grant Program. In 2025, the EDA established its ongoing budget and allocations for various programs and initiatives. In alignment with that decision, staff are proposing to maintain the same expenditure level of $100,000 for the Fire Suppresion Grant Program in 2026. 56 Item 4. ITEM: Executive Session: Develop or Consider Counteroffers for the Purchase of Real Property at 4024-4026 Central Ave NE. Closed per Minn. Stat. 13D.05, Subdivision 3(c). DEPARTMENT: Community Development BY/DATE: CD Coordinator, 08/27/2025 CORE CITY STRATEGIES: (please indicate areas that apply by adding an “X” in front of the selected text below) _Community that Grows with Purpose and Equity X High Quality Public Spaces X Safe, Accessible and Built for Everyone _Engaged, Effective and Forward-Thinking _Resilient and Prosperous Economy _Inclusive and Connected Community CLOSED EXECUTIVE SESSION SCRIPT: May I hear a motion to close the executive session to discuss Agenda Item 5 pursuant to Minnesota Statute 13D.05, Subdivision 3(c)?  Is there a second?  I have a motion by Commissioner ________________  And a second by Commissioner ________________  All in favor? Any opposed? The motion carries. At this time, I will close the meeting pursuant to Minnesota Statute 13D.05 , Subdivision 3(c), so the EDA Commission may consider counteroffers for the purchase of real property at 4024-4026 Central Ave NE. At this time, I will ask all attendees to leave the room. I will also note that at the conclusion of this closed session we will resume the regular EDA meeting. Now that the discussion for Agenda Item 5 is completed, can I hear a motion to reconvene the open session?  Is there a second?  I have a motion by Commissioner ________________  And a second by Commissioner ________________  All in favor? Any opposed? The motion carries. We will now reconvene the open session. ECONOMIC DEVELOPMENT AUTHORITY AGENDA SECTION EXECUTIVE SESSION MEETING DATE 09/02/2025 57 Item 5.