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HomeMy WebLinkAbout06-02-2025 EDA Packet ECONOMIC DEVELOPMENT AUTHORITY City Hall—Shared Vision Room, 3989 Central Ave NE Monday, June 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 255 081 653 537 8 and passcode G3Wk2mU6. 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 May 5th, 2025, Regular EDA Meeting Minutes. (pg. 3) 2. Resolution 2025-13 to Approve the Financial Reports and Payment of the Bills for April 2025. (pg. 14) MOTION: Move to approve the Consent Agenda as presented. BUSINESS ITEMS 3. Façade Improvement Grant Report for Capati Bermeo Inc (Mr Fuego Grill) located at 4001 University Ave NE. (pg. 26) MOTION: Move to waive the reading of Resolution 2025-14, there being ample copies available to the public. MOTION: Move to adopt Resolution 2025-14, a resolution 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 Capati Bermeo Inc (Mr Fuego Grill). 4. NOAH Program Discussion and Proposal. (pg. 42) BUSINESS UPDATES a. Bee Lawn Signage b. MHFA Housing Grants c. Business Directory 1 City of Columbia Heights AGENDA June 02, 2025 Economic Development Authority Page 2 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, May 05, 2025 5:00 PM MINUTES The meeting was called to order at 5:00 pm by President James CALL TO ORDER/ROLL CALL Members present: Connie Buesgens; Laurel Deneen; Rachel James; Amáda Márquez-Simula; Justice Spriggs (5:06 pm); Marlaine Szurek Members absent: Lamin Dibba 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 April 07, 2025. 2. Approve financial reports and payment of bills for March 2025 – Resolution No. 2025-11 Motion by Buesgens, seconded by Márquez-Simula, to approve the Consent Agenda as presented. All ayes of present. MOTION PASSED. RESOLUTION NO. 2025-11 A RESOLUTION OF THE ECONOMIC DEVELOPMENT AUTHORITY OF COLUMBIA HEIGHTS, MINNESOTA, APPROVING THE FINANCIAL STATEMENTS FOR THE MONTH OF MARCH 2025 AND THE PAYMENT OF THE BILLS FOR THE MONTH OF MARCH 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 that 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 March 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 May 05, 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 5th of May, 2025 Offered by: Connie Buesgens Seconded by: Amáda Márquez-Simula Roll Call: All ayes of present. MOTION PASSED. President Attest: Secretary BUSINESS ITEMS 3. EDA Budget Amendment: 2025 Expenditures Voight reported the EDA’s 2025 budget, adopted through EDA Resolutions 2024-22 and 2024-23 and City Council Resolutions 2024-63 and 2024-66, did not define expenditure line items for all of the EDA’s 2025 budgeted funds. At the time of the budget’s approval, a total of $180,000, composed of $65,000 from EDA Administration Fund 204 and $115,000 from EDA R edevelopment Fund 408, had not yet been assigned to specific uses. Voight noted at its April 7th meeting, the EDA discussed and agreed upon the uses for these $180,000, as follows: • Increasing funding for the Commercial Revitalization Program from $200,000 to $300,000; • Increasing the Façade Improvement Grant Program from $50,000 to $80,000; • Increasing the Fire Suppression Grant Program from $60,000 to $100,000; and 4 Item 1. City of Columbia Heights MINUTES May 05, 2025 EDA Meeting Page 3 • Allocating $10,000 for an EDA-led public art initiative in the Central Business District Voight stated the resolution makes financial adjustments to the EDA’s accounts to allow for these agreed-upon expenditures. Specifically, it authorizes the transfer of $65,000 from Fund 204 to Fund 408 and appropriates $90,000 of Fund 408 to the Authority’s 2025 expenditures. The actions of the resolution correspond to the EDA’s discussion at the April 7th meeting; no additional changes are proposed. Questions/Comments from Members: Buesgens expressed her excitement about public art being included in the budget. Motion by Deneen, seconded by Márquez-Simula, to waive the reading of Resolution No. 2025-12, there being ample copies available to the public. All ayes of present. MOTION PASSED. Motion by Deneen, seconded by Buesgens, to approve Resolution No. 2025-12, a Resolution of the Columbia Heights Economic Development Authority, amending its 2025 budget by authorizing the transfer of funds from Fund 204 to Fund 408 and by appropriating a portion of Fund 408 to the Authority’s 2025 expenditures. All ayes of present. MOTION PASSED. RESOLUTION NO. 2025-12 A RESOLUTION OF THE ECONOMIC DEVELOPMENT AUTHORITY OF COLUMBIA HEIGHTS, MINNESOTA, AMENDING ITS 2025 BUDGET BY AUTHORIZING THE TRANSFER OF FUNDS FROM FUND 204 TO FUND 408 AND BY APPROPRIATING A PORTION OF FUND 408 TO THE AUTHORITY’S 2025 EXPENDITURES. WHEREAS, the Columbia Heights Economic Development Authority (the “Authority”) adopted Resolutions 2024-22 and 2024-23 setting the Authority’s budget for 2025; and WHEREAS, the City of Columbia Heights (the “City”) subsequently adopted Resolutions 2024 -63 and 2024-66 approving the Authority’s 2025 budget proposal; and WHEREAS, some of the Authority’s 2025 budgeted resources were not yet assigned line items for expenditure at the time of budget approval; and WHEREAS, at its April 7th meeting, the Authority assigned line items to these dollars and desires to make the necessary financial adjustments to its accounts to provide for their expenditure. NOW, THEREFORE BE IT RESOLVED that, after appropriate examination and due consideration, the Authority: 1. Authorizes the transfer of $65,000 from EDA Administration Fund 204 to EDA Redevelopment Fund 408; and 2. Appropriates $90,000 of Fund 408 to the Authority’s 2025 expenditures. 5 Item 1. City of Columbia Heights MINUTES May 05, 2025 EDA Meeting Page 4 ORDER OF ECONOMIC DEVELOPMENT AUTHORITY Passed this 5th of May, 2025 Offered by: Laurel Deneen Seconded by: Connie Buesgens Roll Call: All ayes of present. MOTION PASSED. President Attest: Secretary 4. EDA Grant Program Guidelines Review Forney reported during the Economic Development Authority’s (EDA) 2025 goal-setting session, the commission identified the reframing of its current grant programs as a priority for the year. At last month’s EDA meeting, the commission used its additional funding allocation to enhance its existing programs with the goal of reaching more businesses throughout the city. In response, staff have prepared recommended revisions to existing grant program guidelines and are open to discussion and feedback. If the EDA wishes to modify these recommendations during the meeting, commissioners may do so by making a motion, such as: “I move to amend the amended [insert grant name] grant guidelines.” Any edits suggested through discussion can be formally added or removed via motion. Forney noted that staff are recommending several updates to the Façade Improvement Grant Program to expand eligibility and better support revitalization efforts in key commercial areas. Most notably, businesses located within the Central Business Zoning District would become eligible for an enhanced grant amount, allowing reimbursement of up to 50% of project costs with a maximum award of $10,000—an increase from the standard $5,000 maximum available to other applicants. Additionally, staff recommend revising the guidelines to allow funding for exterior improvements facing a public alleyway, provided the property is located within the Central Business Zoning District. The list of eligible improvements would also be expanded to include permanent landscaping features, such as hardscaping elements, large planters, trees, and benches. These proposed changes are intended to encourage continued investment in the city’s core commercial area and to enhance the appearance and usability of business-facing public spaces. Staff are not recommending expanding the program to include interior improvements, as doing so would significantly alter the program’s intent. Should the EDA wish to support such improvements, staff would suggest establishing a separate program dedicated to interior build-out assistance. Forney mentioned that staff are also proposing updates to the Fire Suppression Grant Program. Specifically, staff recommend increasing the maximum grant award from $30,000 to $50,000 to better offset the substantial cost of installing fire suppression systems. In addition, staff recommend expanding geographic eligibility to include industrial properties along 39th Avenue NE. These changes aim to make the program more accessible and impactful for businesses with 6 Item 1. City of Columbia Heights MINUTES May 05, 2025 EDA Meeting Page 5 significant safety and compliance needs. Forney stated that the Commercial Revitalization Program is not a traditional EDA grant program but functions more as a budgetary expenditure line item. Historically, the EDA has defined the parameters of this program through the budgeting process and specific approvals of in dividual purchases, rather than through a formalized set of guidelines. Staff recommend continuing this flexible, project-based approach. To that end, staff propose s memorializing the current program parameters and EDA intent in the minutes of this meeting. Presently, there are two primary parameters: (1) staff may enter into negotiations for property purchases prior to formal EDA approval as long as any purchase agreement includes a contingency clause requiring EDA approval, and (2) staff have been directed to target nonconforming single-family homes located within commercial zoning districts. The EDA has also discussed the possibility of expanding the program to include properties that directly abut strategic redevelopment areas or any blighted or substandard residential properties with redevelopment potential. Staff are open to including these additions or other ideas the EDA may wish to pursue, provided consensus is reached during the meeting. In conclusion, staff are open to discussion on all proposed revisions and look forward to implementing any approved changes to enhance the effectiveness and reach of the EDA’s grant and revitalization programs. Questions/Comments from Members: James noted that there is a fence on the roof of Wendy’s and noted that roofing materials are not included in the grant program, but wondered if the fence would qualify. Forney replied that it would qualify, and the EDA could approve screening materials at its discretion. Márquez-Simula mentioned she was happy that alleys were being included in the façade improvement grant program. James noted she would like to prioritize Central Avenue since there are big investments coming to the area. Márquez-Simula mentioned she is not as interested in the area behind Central Avenue since there are properties that are not being used. She noted there are many empty properties on 40th Avenue. She added that she would rather focus on the businesses on Central Avenue. Deneen stated she did not mind keeping the language open to allow for more discussions about properties becoming available. Hopefully, the empty storefronts will invite more development after the construction on Central Avenue is complete. Szurek agreed with Márquez-Simula’s comments. Buesgens mentioned that the changes allow further flexibility for future Councils to allow more expansion and redevelopment in the City. Forney mentioned that Voight built out a GIS tool to convert the old pdf zoning map to a GIS zoning map. Residents can go in and click on a property and see what the zoning is. James asked where the tool was located. Forney replied that it is on the City’s website under the Community Development 7 Item 1. City of Columbia Heights MINUTES May 05, 2025 EDA Meeting Page 6 tab. Motion by Deneen, seconded by Márquez-Simula, to approve the Façade Improvement Grant Guidelines as amended. All ayes of present. MOTION PASSED. Motion by Deneen, seconded by Márquez-Simula, to approve the Fire Suppression Grant Guidelines as amended. All ayes of present. MOTION PASSED. 5. Discussion of Redevelopment Opportunities Forney explained at the April EDA meeting, staff had planned to provide a few business updates for discussion, but due to time constraints, those conversations were cut short. Staff would now like to bring two of those items back for general discussion to gather the EDA’s input on potential redevelopment opportunities. No formal action is requested at this time—staff are simply seeking feedback and direction. Forney stated the first item concerns the EDA-owned property at 841 49th Avenue NE. The EDA acquired this parcel in 2023 due to its severely blighted condition. Staff is interested in hearing the EDA’s thoughts on potential redevelopment options for the site. Because of its close proximity to Central Avenue, one option could be to hold the property for long-term commercial redevelopment, particularly if the adjacent Taco Bell site were to be redeveloped in the future. Alternatively, the EDA could conduct a request for proposals and consider selling the lot to a developer for a residential project. Possible residential uses include an affordable homeownership opportunity similar to the recent project at 4243 5th Street NE, an accessory dwelling unit (ADU) demonstration project, or the construction of a new duplex. Staff would like to know if the EDA is interested in pursuing any of these options and whether there is support for moving a redevelopment project forward in 2025. Questions/Comments from Members: Buesgens mentioned there is a new three-plex building on Johnson Street, south of Lowry Avenue. She explained that it is an area that would be a good transition area from residential and commercial. She added that the parcel could become a three-plex stacked building. Forney noted that the parcel would need to be rezoned , but he could look into it. Márquez-Simula asked if staff had spoken with anyone from the Taco Bell since a roundabout will go in near the Taco Bell. She wondered if Taco Bell would want to move if a portion of the property were taken during the Central Avenue redevelopment. Chirpich replied that he is not aware of any discussions with Taco Bell wanting to relocate. Szurek asked how much of the Taco Bell property would be lost due to the roundabout. Chirpich replied that he did not know. James mentioned she liked the idea of using the parcel for anything except a single-family home. She added she is open to having further discussion of having the parcel be used for housing in a denser way. 8 Item 1. City of Columbia Heights MINUTES May 05, 2025 EDA Meeting Page 7 Deneen stated she was in favor of doing an ADU project because it is a way to build density within density that is already there. She added that it would be beneficial to site this kind of project in this space because people could see what could be built within the City’s zoning regulations, which could open up the value of a property. Szurek mentioned that the large property would be a waste with an accessory building on it. She expressed her support for doing a three-plex building. She asked if there had been any inquiries about ADUs. Forney replied that the City had not received any. Szurek expressed her concern about the cost of the project since there would have to be separate water, sewer, and gas lines for each unit. Deneen explained that ADUs have been largely supported in the community and mentioned that there were many people who attended the Planning Commission to express their support of making ADUs allowed in the City because many people have aging parents and would like to have them live in their homes. She added that many people desire to live more multiculturally. Buesgens mentioned that the City would not receive as much tax money if the parcel were made into a three-plex. She asked if ADUs are part of a tax package or a house. Chirpich replied that they would have to look into it and see how it is assessed. He mentioned that it would likely be valued as a single-family home. Spriggs mentioned that he likes the idea of the three-plex because it could add gentle density, and is by the bus line and schools. Buesgens mentioned that if Medicaid continues in the direction that it is going, people will be in need of assisted living or places where Medicaid is covered. If that happens, there will be a larger demand for ADUs. Forney mentioned the second item involves the property at 3932 Central Avenue NE, which is currently owned by the Anoka County Community Action Program (ACCAP). ACCAP recently contacted City staff to explore whether the City or EDA might be interested in purchasing the site . The building is experiencing worsening structural issues, and the cost to repair them is expected to be significant. ACCAP indicated that if the EDA is not interested in acquiring the site for redevelopment, it will likely place the property on the open market. Staff is seeking the EDA’s initial thoughts on whether there is interest in exploring a potential acquisition. Questions/Comments from Members: Deneen expressed her concern about purchasing the building because it would deplete a lot of the EDA’s funding. In addition, it would cost more money to either demolish it or make it safe. James stated she was not interested in purchasing the property. Buesgens asked if ACCAP has asked the State if they would qualify for NOAH funds. Forney explained that in order to receive NOAH funds, they cannot have previously received tax incentives. 9 Item 1. City of Columbia Heights MINUTES May 05, 2025 EDA Meeting Page 8 He added that he would assume they have received some tax incentives since they are a non -profit. Buesgens asked how current residents would be able to find homes that are at a similar price to what they are paying now. She wondered if there was a way that relocation fees could be paid. She asked if the City could look into creating an Ordinance that could address the issue of residents being relocated due to a building being put up for sale. She added that the owners need to take responsibility for residents being relocated. James agreed that the City should look into tenant relocation assistance. The Commission agreed. James asked if the Commission agreed that the property was not the best option for the EDA to purchase. The Commission agreed. 6. Gap Funding Request 4243 5th St NE Forney noted Community Development staff recently met with representatives from Habitat for Humanity to continue building a collaborative relationship and explore opportunities for future partnerships. During this meeting, Habitat shared an update on their current project at 4243 5th Street NE—a new single-family home development in Columbia Heights. While construction is progressing, Habitat is facing a financing gap due to the accelerated timeline and limited access to traditional funding sources. Forney stated in response, that Habitat has asked whether the Economic Development Authority (EDA) would consider contributing financial support to help close a portion of this gap and ensure the project's successful completion. To provide a full picture, Habitat has shared an updated project pro forma, which is attached to this memo. The pro forma outlines a total estimated gap of $120,000, including a $90,000 development gap and a $30,000 affordability gap. The affordability gap reflects the assumption that the future homeowner will earn just below 80% of the area median income (AMI). However, since Habitat typically serves households earning between 50% and 80% AMI, the final affordability gap may grow depending on the income of the eventual buyer. Habitat is requesting $75,000 in assistance from the EDA to help bridge the development portion of the funding gap. While this request would not cover the entire shortfall, it would provide critical support to keep the project within Habitat’s general financing goals. Forney mentioned in response to staff questions about the funding shortfall, Habitat explained that the opportunity to develop the Columbia Heights site emerged quickly, limiting their ability to apply for traditional funding sources such as HOME, CDBG, or other public grants. Additionally, ongoing uncertainty in federal funding has affected their broader pipeline of projects, compounding the challenges for this specific development. Without local support, Habitat would need to absorb the full deficit internally, which could limit its capacity for future work. Forney explained that should the EDA choose to provide the requested $75,000, staff would recommend utilizing the pooled tax increment financing (TIF) balance from the C -8 District, the same source used for the acquisition and demolition of the property. The funds would be loane d to the City’s Scattered Site TIF District, which would then issue a grant to Habitat for Humanity. This arrangement would be formalized through either an amendment to the existing redevelopment agreement or a new grant agreement. The Scattered Site TIF District would repay the loan over 10 Item 1. City of Columbia Heights MINUTES May 05, 2025 EDA Meeting Page 9 time using future TIF revenue. Forney noted that staff recommends moving forward with the $75,000 funding request. Habitat’s ask is well below the full gap, and the EDA’s stated goals include partnering with Habitat on future projects. Even after this contribution, approximately $140,000 would remain in t he C-8 District fund, enough to support potential purchase-rehab projects in 2025 or 2026. As additional repayments are made into the C-8 District, the City could also consider supporting future tear- down and rebuild projects. At this time, staff is seeking the EDA’s general guidance on the proposal. If the EDA is supportive, staff will return at the next meeting with the appropriate agreements and documentation to execute the grant and facilitate the transfer of funds. Questions/Comments from Members: Szurek asked if the money would be lost or if the EDA would be able to get the money back from Habitat for Humanity. Forney replied that the City could offer the money as a loan . Szurek stated she did not believe the EDA should simply hand the money to Habitat for Humanity because it would deplete the funds. She added that she has not heard of the EDA needing to fill a gap for another organization in the past and noted that it is $75,000. Forney explained that the funding would be taken back through the tax increment financing district, but it would not be paid back from Habitat for Humanity. He added that it is possible to look into a loan option with Habitat for Humanity. Szurek mentioned that Habitat for Humanity was building a $300,000 house. Forney noted that it was the house that the EDA had decided to build through the development contract. Szurek asked who would be able to afford the house. Forney explained that Habitat for Humanity buys the mortgage down to make it affordable for a family. Habitat for Humanity uses its own funding to cover the gap so that families can afford the properties. Szurek stated that she was not comfortable handing out $75,000. Deneen wondered if there was a way to get some of the money back through the sale of the property. Forney replied that he did not know if they could get much money from the sale since Habitat for Humanity holds the mortgage of the house as well as the sale. Márquez-Simula stated she would be more comfortable if half of the funds were a loan . Szurek mentioned that she does not remember Habitat for Humanity asking for money in the past and added that it makes her feel uncomfortable. Buesgens asked if Habitat for Humanity would be able to do a loan. Forney replied that the City would need to discuss the option with Habitat for Humanity. Buesgens asked what the original purpose of the $75,000 would have been. Forney replied that the EDA had previously discussed using the funds to continue using them for the pooled C8 TIF District funds for another project with Habitat for Humanity. Buesgens asked how much was in the fund currently. Forney replied $215,000. Buesgens asked if using the funds would limit what the EDA 11 Item 1. City of Columbia Heights MINUTES May 05, 2025 EDA Meeting Page 10 could do in the future in purchasing other homes. Forney explained that Habitat for Humanity lowered their funding request in order not to limit the EDA. He added that $215,000 would not be enough to purchase and demolish a home, but $140,000 (left over after the $75,000 request) would allow the EDA to do a rehabilitation project with Habitat for Humanity in the future. James stated she was in favor of doing a $50,000 TIF grant or doing a half TIF and half loan. Buesgens stated she was in favor of doing the full $75,000. Deneen agreed with Buesgens’ comments and added that the EDA’s goal is to have more affordable housing, and it would have a great impact on the City. Spriggs agreed with Deneen. He asked if there was a possibility of doing a zero-interest loan where the funds could be paid over several years. James asked if the EDA needed to come to a decision during the meeting or if it could be postponed until the June meeting. Forney replied that no formal action was required and the EDA could postpone the decision. James stated she would like to look into loan options more until the EDA makes a decision. Buesgens mentioned she would like additional information on future projects Habitat for Humanity was looking into in the City. She added that it would be helpful if the City checked with Habitat for Humanity to see where their funding is at before the project. James summarized that the EDA would like additional information regarding loan options or if it needs to be TIF. She added that Szurek had mentioned that she does not want the money to just be given away. James noted that the EDA would like to discuss Szurek’s comment further. BUSINESS UPDATES Voight updated the EDA about the NOAH Community Stabilization Program from the Minnesota Housing Finance Agency. MHFA has come out with general draft documentation about the general program for stakeholder review and comment. The City received the information. The program will have several criteria that do not make it a good fit for the City. The program is loan-based and not grant-based. In addition, the properties must be specifically defined for use and owned by the recipient of the funding. Public housing is not eligible. Buesgens asked who would be able to apply for the loan. Voight replied that the owner of a building would be able to apply. Forney added that the City could promote the loan program. Voight updated the EDA regarding pollinator plants being planted on EDA or City-owned properties that are currently vacant. She spoke with the City’s Forester, and he brought back a flowering bee lawn proposal. She explained that the City’s Forester provided details about the mix of native grass and low- flowering plants and specifically recommended Dutch White Clover. Staff would like the EDA to discuss if they are interested in moving forward with the proposal. The Commission agreed that they would like to move forward. Voight explained that it is ideal to do the plantings in the fall, but if there are some areas with bare soil, the City can do those plantings and complete them earlier. James asked if the City Forester provided a cost for the project. Voight replied that the City Forester did not provide a cost breakdown but it was relatively inexpensive and Public Works would be able to 12 Item 1. City of Columbia Heights MINUTES May 05, 2025 EDA Meeting Page 11 provide the labor. Forney added that staff would look at the costs. If the cost is low enough, it could be funded through the operating budget. Buesgens mentioned that she would like to see other varieties of native plants so that people could see the variety of plants and colors. She added that she would like to see a pilot for the property on Tyler Place and 44th Avenue to have the neighbor water the lawn since they have agreed to do so. She explained that when the flowering bee lawn is first put down, it needs to be watered every day. She added that it would be helpful to get started on the process now before it gets too hot. James mentioned the EDA should focus on City-owned lots. Buesgens clarified that the property she was talking about was on a City-owned lot. She expressed her concern that if the City waits too long to plant the native plants, they will turn into weeds by the end of the summer. James asked the Commission if they were in favor of the bee lawns. The Commission agreed that they were in favor. Márquez-Simula asked if the City knew what was happening with Heights Rental. Forney replied that the Heights Rental owners are looking to sell the parcel. The City has a first right of refusal for the parcel. The owners are exploring the idea of who could be interested in the parcel. The owners are looking to sell in March 2026, but if they sell to the City they will likely look to see this fall 2025. Márquez-Simula requested that the Business Updates topics be included on the agenda in order to know what the topics are. Forney replied that it could be included. James asked if the City knew what would be happening with the building by Crestview , which was going to be purchased by Anoka County. Forney explained that the County purchased the building and that reusing the building would cost more and be more difficult than just demolishing the building. The County has put out an RFP to prospective developers to come to them and propose projects to redevelop the site. James asked if there would be affordable homes included. Forney replied that he believed there would be some affordability with services built into the RFP. ADJOURNMENT Motion by Buesgens, seconded by Szurek, to adjourn the meeting at 6:09 pm. All ayes. MOTION PASSED. Respectfully submitted, Sarah LaVoie, Recording Secretary 13 Item 1. Resolution 2025-13 RESOLUTION NO. 2025-13 A RESOLUTION OF THE ECONOMIC DEVELOPMENT AUTHORITY OF COLUMBIA HEIGHTS, MINNESOTA, APPROVING THE FINANCIAL STATEMENTS FOR THE MONTH OF APRIL 2025 AND THE PAYMENT OF THE BILLS FOR THE MONTH OF APRIL 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 April 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 June 2025 Offered by: Seconded by: Roll Call: Title: Attest: Title: Secretary 14 Item 2. AmountInvoiceInvoice DateVendorInvoice Line DescGL Number INVOICE GL DISTRIBUTION REPORT FOR CITY OF COLUMBIA HEIGHTS 1/2Page:05/15/2025 10:07 AM User: suems DB: Columbia Heights EXP CHECK RUN DATES 04/01/2025 - 04/30/2025 BOTH JOURNALIZED AND UNJOURNALIZED PAID Check 202545 4,300.00 10079003/07/25EHLERS & ASSOCIATES INCMEDTRONIC FIN ANALYSIS,COMM W/DEVELOPER204.0000.22825 75.00 10056903/07/25EHLERS & ASSOCIATES INCTIF AGREEMENT REVIEW 3989 CENTRAL392.7000.43050 4,375.00 Total For Check 202545 Check 202651 51.98 99287217303/26/25POPP.COM INC032625 - 10013121 PHONE COMMDEV ADMIN204.6314.43210 13.86 99287316403/31/25POPP.COM INC033125 -10010429 COM DEV ADMINISTRATION204.6314.43210 65.84 Total For Check 202651 Check 202662 176.25 2992402/14/25TIMESAVER OFF SITE SECRETR INCEDA MINUTES 020325204.6314.43050 172.00 2999902/28/25TIMESAVER OFF SITE SECRETR INCEDA MINUTES 022425204.6314.43050 193.50 3006703/14/25TIMESAVER OFF SITE SECRETR INCEDA MINUTES 030325204.6314.43050 541.75 Total For Check 202662 Check 202767 232.50 10097804/07/25EHLERS & ASSOCIATES INCEXPERT & PROFESSIONAL SERV.204.6314.43050 225.00 10097904/07/25EHLERS & ASSOCIATES INCEXPERT & PROFESSIONAL SERV.204.6314.43050 457.50 Total For Check 202767 Check 202780 331.00 18579401/14/25KENNEDY & GRAVENCONVEYANCE OF 960 40TH204.6314.43045 191.65 18648402/17/25KENNEDY & GRAVENCONVEYANCE OF 960 40TH LEGAL RECORDING204.6314.43045 522.65 Total For Check 202780 Check 202789 100.00 ALR0169124X11/25/24MN DEPT OF LABOR & INDUSTRYELEVATOR PERMIT-VAN BUREN RAMP228.6317.44390 100.00 Total For Check 202789 15 Item 2. AmountInvoiceInvoice DateVendorInvoice Line DescGL Number INVOICE GL DISTRIBUTION REPORT FOR CITY OF COLUMBIA HEIGHTS 2/2Page:05/15/2025 10:07 AM User: suems DB: Columbia Heights EXP CHECK RUN DATES 04/01/2025 - 04/30/2025 BOTH JOURNALIZED AND UNJOURNALIZED PAID 5,887.74 Fund 204 EDA ADMINISTRATION 100.00 Fund 228 DOWNTOWN PARKING 75.00 Fund 392 TIF BB2 ALATUS 40TH AV Fund Totals: 75.00 TIF AGREEMENT REVIEW 3989 CENTRAL392.7000.43050 100.00 ELEVATOR PERMIT-VAN BUREN RAMP228.6317.44390 65.84 032625 - 10013121 PHONE COMMDEV ADMIN204.6314.43210 999.25 EXPERT & PROFESSIONAL SERV.204.6314.43050 522.65 CONVEYANCE OF 960 40TH204.6314.43045 4,300.00 MEDTRONIC FIN ANALYSIS,COMM W/DEVELOPER204.0000.22825 --- TOTALS BY GL DISTRIBUTION --- 6,062.74 Total For All Funds: 16 Item 2. REVENUE AND EXPENDITURE REPORT FOR CITY OF COLUMBIA HEIGHTS 1/9Page:05/15/2025 10:05 AM User: suems DB: Columbia Heights PERIOD ENDING 04/30/2025 % BDGT USED UNENCUMBERED BALANCE YTD BALANCE 04/30/2025 ACTIVITY FOR MONTH 04/30/25 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 32.20 126,914.33 60,285.67 16,607.36 0.00 187,200.00 REGULAR EMPLOYEES204.6314.41010 33.16 9,357.89 4,642.11 1,186.72 0.00 14,000.00 P.E.R.A. CONTRIBUTION204.6314.41210 31.56 9,787.26 4,512.74 1,242.39 0.00 14,300.00 F.I.C.A. CONTRIBUTION204.6314.41220 21.27 19,289.55 5,210.45 1,281.70 0.00 24,500.00 INSURANCE204.6314.41300 32.70 471.08 228.92 58.11 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 29.94 175,220.11 74,879.89 20,376.28 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 (673.80)673.80 0.00 0.00 0.00 ATTORNEY FEES-OTHER204.6314.43045 107.53 (670.00)6,795.00 3,702.75 2,775.00 8,900.00 EXPERT & PROFESSIONAL SERV.204.6314.43050 42.02 2,435.00 1,765.00 0.00 0.00 4,200.00 TRAINING & EDUCATION ACTIVITIES204.6314.43105 87.87 109.19 311.98 49.40 478.83 900.00 TELEPHONE204.6314.43210 35.30 517.64 282.36 0.00 0.00 800.00 POSTAGE204.6314.43220 33.25 200.24 99.76 21.33 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 50.00 750.00 750.00 750.00 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 33.33 2,333.32 1,166.68 291.67 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 17 Item 2. REVENUE AND EXPENDITURE REPORT FOR CITY OF COLUMBIA HEIGHTS 2/9Page:05/15/2025 10:05 AM User: suems DB: Columbia Heights PERIOD ENDING 04/30/2025 % BDGT USED UNENCUMBERED BALANCE YTD BALANCE 04/30/2025 ACTIVITY FOR MONTH 04/30/25 ENCUMBERED YEAR-TO-DATE 2025 AMENDED BUDGETDESCRIPTIONGL NUMBER Fund 204 - EDA ADMINISTRATION Expenditures 33.33 6,333.32 3,166.68 791.67 0.00 9,500.00 INFORMATION SYS:INTERNAL SVC204.6314.44040 4.29 670.00 30.00 0.00 0.00 700.00 SUBSCRIPTION, MEMBERSHIP204.6314.44330 0.00 800.00 0.00 0.00 0.00 800.00 COMMISSION & BOARDS204.6314.44380 75.27 8,160.21 17,029.44 5,606.82 7,810.35 33,000.00 OTHER SERVICES & CHARGES CONTINGENCIES & TRANSFERS 29.22 17,766.68 7,333.32 1,833.33 0.00 25,100.00 OPER. TRANSFER OUT - LABOR204.6314.47100 29.22 17,766.68 7,333.32 1,833.33 0.00 25,100.00 CONTINGENCIES & TRANSFERS 34.66 201,910.78 99,278.87 27,816.43 7,810.35 309,000.00 Total Dept 6314 - ECONOMIC DEVELOPMENT AUTH 34.66 201,910.78 99,278.87 27,816.43 7,810.35 309,000.00 TOTAL EXPENDITURES 157.44 175,059.22 (99,248.87)(27,816.43)(7,810.35)68,000.00 NET OF REVENUES & EXPENDITURES 34.66 201,910.78 99,278.87 27,816.43 7,810.35 309,000.00 TOTAL EXPENDITURES 0.01 376,970.00 30.00 0.00 0.00 377,000.00 TOTAL REVENUES Fund 204 - EDA ADMINISTRATION: 18 Item 2. REVENUE AND EXPENDITURE REPORT FOR CITY OF COLUMBIA HEIGHTS 3/9Page:05/15/2025 10:05 AM User: suems DB: Columbia Heights PERIOD ENDING 04/30/2025 % BDGT USED UNENCUMBERED BALANCE YTD BALANCE 04/30/2025 ACTIVITY FOR MONTH 04/30/25 ENCUMBERED YEAR-TO-DATE 2025 AMENDED BUDGETDESCRIPTIONGL NUMBER Fund 228 - DOWNTOWN PARKING Revenues Dept 0000 - NON-DEPARTMENTAL TRANSFERS & NON-REV RECEIPTS 33.33 38,666.68 19,333.32 4,833.33 0.00 58,000.00 TRANSFER IN-SPECIAL PROJ REV228.0000.39247 33.33 38,666.68 19,333.32 4,833.33 0.00 58,000.00 TRANSFERS & NON-REV RECEIPTS 33.33 38,666.68 19,333.32 4,833.33 0.00 58,000.00 Total Dept 0000 - NON-DEPARTMENTAL 33.33 38,666.68 19,333.32 4,833.33 0.00 58,000.00 TOTAL REVENUES Expenditures Dept 6317 - DOWNTOWN PARKING SUPPLIES 0.00 1,500.00 0.00 0.00 0.00 1,500.00 OTHER TECHNOLOGY EQUIPMENT228.6317.42012 0.00 1,500.00 0.00 0.00 0.00 1,500.00 SUPPLIES OTHER SERVICES & CHARGES 100.00 (2,776.73)2,776.73 0.00 0.00 0.00 EXPERT & PROFESSIONAL SERV.228.6317.43050 33.33 2,466.68 1,233.32 308.33 0.00 3,700.00 PROP & LIAB INSURANCE228.6317.43600 36.46 1,334.41 765.59 267.75 0.00 2,100.00 UTILITY SERVICES228.6317.43800 24.94 10,057.73 3,342.27 787.87 0.00 13,400.00 ELECTRIC228.6317.43810 40.96 20,780.93 3,535.25 0.00 10,883.82 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 40.65 33,531.02 12,085.16 1,363.95 10,883.82 56,500.00 OTHER SERVICES & CHARGES 39.60 35,031.02 12,085.16 1,363.95 10,883.82 58,000.00 Total Dept 6317 - DOWNTOWN PARKING 39.60 35,031.02 12,085.16 1,363.95 10,883.82 58,000.00 TOTAL EXPENDITURES 100.00 3,635.66 7,248.16 3,469.38 (10,883.82)0.00 NET OF REVENUES & EXPENDITURES 39.60 35,031.02 12,085.16 1,363.95 10,883.82 58,000.00 TOTAL EXPENDITURES 33.33 38,666.68 19,333.32 4,833.33 0.00 58,000.00 TOTAL REVENUES Fund 228 - DOWNTOWN PARKING: 19 Item 2. REVENUE AND EXPENDITURE REPORT FOR CITY OF COLUMBIA HEIGHTS 4/9Page:05/15/2025 10:05 AM User: suems DB: Columbia Heights PERIOD ENDING 04/30/2025 % BDGT USED UNENCUMBERED BALANCE YTD BALANCE 04/30/2025 ACTIVITY FOR MONTH 04/30/25 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): 20 Item 2. REVENUE AND EXPENDITURE REPORT FOR CITY OF COLUMBIA HEIGHTS 5/9Page:05/15/2025 10:05 AM User: suems DB: Columbia Heights PERIOD ENDING 04/30/2025 % BDGT USED UNENCUMBERED BALANCE YTD BALANCE 04/30/2025 ACTIVITY FOR MONTH 04/30/25 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: 21 Item 2. REVENUE AND EXPENDITURE REPORT FOR CITY OF COLUMBIA HEIGHTS 6/9Page:05/15/2025 10:05 AM User: suems DB: Columbia Heights PERIOD ENDING 04/30/2025 % BDGT USED UNENCUMBERED BALANCE YTD BALANCE 04/30/2025 ACTIVITY FOR MONTH 04/30/25 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: 22 Item 2. REVENUE AND EXPENDITURE REPORT FOR CITY OF COLUMBIA HEIGHTS 7/9Page:05/15/2025 10:05 AM User: suems DB: Columbia Heights PERIOD ENDING 04/30/2025 % BDGT USED UNENCUMBERED BALANCE YTD BALANCE 04/30/2025 ACTIVITY FOR MONTH 04/30/25 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: 23 Item 2. REVENUE AND EXPENDITURE REPORT FOR CITY OF COLUMBIA HEIGHTS 8/9Page:05/15/2025 10:05 AM User: suems DB: Columbia Heights PERIOD ENDING 04/30/2025 % BDGT USED UNENCUMBERED BALANCE YTD BALANCE 04/30/2025 ACTIVITY FOR MONTH 04/30/25 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: 24 Item 2. REVENUE AND EXPENDITURE REPORT FOR CITY OF COLUMBIA HEIGHTS 9/9Page:05/15/2025 10:05 AM User: suems DB: Columbia Heights PERIOD ENDING 04/30/2025 % BDGT USED UNENCUMBERED BALANCE YTD BALANCE 04/30/2025 ACTIVITY FOR MONTH 04/30/25 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 6411 - FACADE IMPROVEMENT GRANT OTHER SERVICES & CHARGES 100.00 (14,625.00)14,625.00 0.00 0.00 0.00 LOANS & GRANTS408.6411.44600 100.00 (14,625.00)14,625.00 0.00 0.00 0.00 OTHER SERVICES & CHARGES 100.00 (14,625.00)14,625.00 0.00 0.00 0.00 Total Dept 6411 - FACADE IMPROVEMENT GRANT Dept 6414 - COMMERCIAL REVITALIZATION OTHER SERVICES & CHARGES 0.00 200,000.00 0.00 0.00 0.00 200,000.00 LOANS & GRANTS408.6414.44600 0.00 200,000.00 0.00 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 0.00 400,000.00 0.00 0.00 0.00 400,000.00 Total Dept 6414 - COMMERCIAL REVITALIZATION 3.66 385,375.00 14,625.00 0.00 0.00 400,000.00 TOTAL EXPENDITURES 58.50 39,625.00 (14,625.00)0.00 0.00 25,000.00 NET OF REVENUES & EXPENDITURES 3.66 385,375.00 14,625.00 0.00 0.00 400,000.00 TOTAL EXPENDITURES 0.00 425,000.00 0.00 0.00 0.00 425,000.00 TOTAL REVENUES Fund 408 - EDA REDEVELOPMENT PROJECT FD: 2,007.03 293,682.80 (285,488.63)(24,347.05)(23,594.17)(15,400.00)NET OF REVENUES & EXPENDITURES 18.60 1,436,953.88 304,851.95 29,180.38 23,594.17 1,765,400.00 TOTAL EXPENDITURES - ALL FUNDS 1.11 1,730,636.68 19,363.32 4,833.33 0.00 1,750,000.00 TOTAL REVENUES - ALL FUNDS 25 Item 2. ECONOMIC DEVELOPMENT AUTHORITY AGENDA SECTION BUSINESS ITEMS MEETING DATE 06/02/2025 ITEM: Façade Improvement Grant Report for Capati Bermeo Inc (Mr Fuego Grill) located at 4001 University Ave NE. DEPARTMENT: Community Development BY/DATE: CD Coordinator, 05/30/2025 BACKGROUND: This report pertains to the 2025 Façade Improvement Grant application for 4001 University Ave NE. This restaurant building was formerly owned and occupied by the Afandina Cafe. The new tenant is Mr. Fuego Grill, an Ecuadorian restaurant owned and operated by Capati Bermeo Inc. The new tenant has a contract for deed agreement for the property. The applicant is applying for grant funds for new storefront signage on two sides of the exterior façade. Photos of the existing conditions and images showing the proposed new signage have been included in the packet. The applicant was able to receive one bid for the signage, amounting to $9,203.50, setting them up for a grant amount of $4,601.75. Community Development staff recommend funding this project in full as the new signage will reflect the change in building occupancy and will help attract customers. Thus far in 2025, the EDA has approved one Façade Improvement Grant application for a total of $2,147.50 approved, with an additional $4,601.75 being requested at this meeting. This leaves $73,250.75 in Façade Improvement Grant funds remaining from the initial annual budget of $80,000. RECOMMENDED MOTION(S): MOTION: Move to waive the reading of Resolution 2025-14, there being ample copies available to the public. MOTION: Move to adopt Resolution 2025-14, a resolution 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 Capati Bermeo Inc (Mr Fuego Grill). ATTACHMENT(S): 1. Resolution 2025-14 2. Sample Façade Improvement Grant Agreement 3. Capati Bermeo Inc (Mr Fuego Grill) Façade Improvement Grant Application 26 Item 3. Resolution 2025-14 RESOLUTION NO. 2025-14 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 CAPATI BERMEO INC (MR FUEGO GRILL) WHEREAS, the City of Columbia Heights (the “City”) and the Columbia Heights Economic Development Authority (the “Authority”) have collaborated to create a certain Façade Improvement Grant Program (the “Program”); and WHEREAS, pursuant to guidelines established for the Program, the Authority is to award and administer a series of grants to eligible commercial property owners and/or tenants for the purposes of revitalizing existing storefronts, increasing business vitality and economic performance, and decreasing criminal activity along Central Avenue Northeast 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 Capati Bermeo Inc (Mr Fuego Grill). 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 Adopted this 2nd day of June, 2025 Offered by: Seconded by: Roll Call: __________________________________ President Attest: _______________________________________ Secretary 27 Item 3. FAÇADE IMPROVEMENT GRANT AGREEMENT THIS FAÇADE IMPROVEMENT GRANT AGREEMENT (“Agreement”), dated this ___ day of June, 2025 (the “Effective Date”), is entered into by and between Capati Bermeo Inc (Mr Fuego Grill), the tenant (the “Grantee”), and the Columbia Heights Economic Development Authority (the “EDA”). RECITALS WHEREAS, Grantee is a tenant at certain Property located at 4001 University Ave NE in the City of Columbia Heights (the “City”), Anoka County, Minnesota, and legally described in Exhibit A hereto (the “Property”); WHEREAS, the EDA, in cooperation with the City and its police department, has instituted a Façade Improvement Grant Program (the “Program”) for the purpose of revitalizing existing storefronts, increasing business vitality and economic performance, and decreasing criminal activity; WHEREAS, as part of the Program, the EDA has proposed to make grants of money in the maximum amount of Five Thousand Dollars ($5,000.00) per parcel of real property in the City, or the maximum amount of Ten Thousand Dollars ($10,000.00) per parcel of real property located in the Central Business Zoning District in the City (the “CBD”), to property owners, tenants, or nonprofit organizations, in order to revitalize, rehabilitate, and restore exterior storefronts, increase business vitality and economic performance, and in certain instances, to provide monitored surveillance; WHEREAS, the Property concerned by this Agreement is not located within the CBD; and WHEREAS, Grantee desires to participate in the Program, on the terms and conditions set forth below. NOW, THEREFORE, in consideration of the premises and of the agreements hereinafter contained, the parties agree as follows: 1. Property Improvements: Grantee agrees to complete the improvements at the Property that are identified on Exhibit B attached hereto (the “Improvements”), subject to the following terms and conditions: a. If requested by the EDA, Grantee shall provide plans and specifications to the EDA, detailing the Improvements to be constructed (the “Plans”). If Grantee wishes to revise the Plans, Grantee must submit the revised Plans to the EDA at the address provided herein. The EDA shall give written notice of its approval or disapproval of the revisions to the Plans, and if the EDA does not give such written approval or disapproval within ten (10) business days after 28 Item 3. 2 receipt of Grantee’s revised Plans, the EDA shall be deemed to have approved the revisions to the Plans. b. The Improvements shall be constructed consistently with the Plans, as the same may be revised pursuant to Section 1(a) herein. The cost to complete construction of the Improvements shall be defined as the “Improvement Costs.” The Improvements shall be completed in a first-class manner, consistent with the Plans, if any, and in compliance with all applicable laws, rules, and regulations. Grantee shall obtain all required permits and approvals from the City and any other governing authority with jurisdiction over the Property related to the construction of the Improvements. The out-of-pocket costs for such permitting and approvals shall be the responsibility of Grantee, provided the same shall be included in the definition of “Improvement Costs,” and subject to the provisions of Section 2 of this Agreement. c. Grantee agrees to commence the Improvements within sixty (60) days following the Effective Date, and to complete the Improvements within six (6) months following the issuance of all necessary building permits, but in no event later than eight (8) months following the Effective Date. 2. Payment of Grant Funds: Grantee shall be responsible for making initial payment to all contractors involved in the construction of the Improvements. Upon final completion of the Improvements, Grantee shall make a written request to the EDA for reimbursement of one-half (1/2) of the actual Improvement Costs incurred by Grantee, but in no event shall the reimbursement exceed Five Thousand Dollars ($5,000.00). The written request shall include: a. Proof of final inspection of the Improvements by the City building inspector; b. Before and after photographs of the Property, reflecting the Improvements made (as well as follow-up transmission of electronic files of such photographs), and reflecting that the Improvements were completed consistently with any approved Plans; c. A copy of the final invoice(s) received from the contractor(s) who completed the Improvements; and d. Proof of payment of invoice(s) that comprised the Improvement Costs. Following Grantee’s written request for reimbursement, Grantee shall cooperate with the EDA in delivering to the EDA such follow-up information as is reasonably requested by the EDA in order to review the Improvements and Improvement Costs reimbursement request. Within twenty-one (21) days following receipt of Grantee’s written request for reimbursement of Improvement Costs, the EDA shall: (i) make payment of the reimbursement, (ii) send Grantee written explanation of such other items of information as are needed by the EDA to evaluate the reimbursement request, or (iii) send Grantee written explanation of the EDA’s reasons for denial of repayment of any of Grantee’s requested reimbursement. 29 Item 3. 3 3. Liability for Improvements: Neither the City nor the EDA shall in any event be liable to the Grantee, nor to any of its agents, employees, guests or invitees at the Property for, and the Grantee shall indemnify, save, defend, and hold harmless the City and the EDA from, any claims or causes of action, including attorney’s fees incurred by the City or the EDA, arising from defect or claimed defect of any of the Improvements, or arising from any action of the City or the EDA under this Agreement. This section shall survive the termination or expiration of this Agreement. 4. Written Notice: Wherever any notice is required or permitted hereunder, such notice shall be in writing. Any notice or document required or permitted to be delivered hereunder shall be deemed to be delivered when actually received by the designated addressee or regardless of whether actually received or not, when deposited in the United States Mail, postage prepaid, certified mail, return receipt requested, addressed to the parties hereto at their respective addresses, as set forth below, or at such other address as they may subsequently specify by written notice. If to the EDA: Columbia Heights EDA Community Development Department 3989 Central Avenue NE Columbia Heights, MN 55421 If to Grantee: Capati Bermeo Inc (Mr Fuego Grill) Attn: Luis Cuenca 4001 University Ave NE Columbia Heights, MN 55421 5. Captions; Choice of Law; Etc. The paragraph headings or captions appearing in this Agreement are for convenience only, are not a part of this Agreement, and are not to be considered in interpreting this Agreement. This Agreement constitutes the complete agreement between the parties and supersedes any prior oral or written agreements between the parties regarding the subject matter contained herein. There are no verbal agreements that change this Agreement. This Agreement binds and benefits the parties hereto and their successors and assigns. This Agreement has been made under the laws of the State of Minnesota, and such laws will control its interpretation. [Signatures to Appear on Following Page] 30 Item 3. 4 IN WITNESS WHEREOF, Grantee and the EDA have signed this Agreement as of the day and year first above written. GRANTEE: CAPATI BERMEO INC (MR FUEGO GRILL), THE TENANT By:____________________________ Name: _________________________ Its:____________________________ Date:__________________________ EDA: COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY By: Name: _________________________ Its:____________________________ Date:__________________________ 31 Item 3. 5 EXHIBIT A LEGAL DESCRIPTION OF PROPERTY LOTS 4 , 5 & 6 AUDITORS SUBDIVISION NO 38 TOG/W S 45 FT OF PRT OF LOT 8 BLOCK 1 REAR OF BLOCK D COLUMBIA HEIGHTS ANNEX, LYG E OF UNIVERSITY AVE & W OF LINE 128 FT W OF E LINE OF SD LOT 8 32 Item 3. 6 EXHIBIT B PROPERTY IMPROVEMENTS SUBJECT TO 50% REIMBURSEMENT This attachment contains a summary of the project identified in the application for the Façade Improvement Grant Program. The Summary reflects the Grantee’s proposed project as approved by the EDA on June 2nd, 2025, and may reflect minor changes to the total cost and minor changes in the proposed project that occurred subsequent to application submittal. The application is incorporated into this Grant Agreement by reference and is made a part of this Grant Agreement as follows. If the application or any provision in this application conflicts with or is inconsistent with other provisions of this Agreement or the project summary contained in this Exhibit B, the terms and descriptions contained in this Grant Agreement and the project summary shall prevail. Project summary: furnish and install two new storefront façade signs totaling an amount equal to $9,203.50. 33 Item 3. 34 Item 3. 35 Item 3. 36 Item 3. 37 Item 3. 38 Item 3. 39 Item 3. 40 Item 3. 41 Item 3. ECONOMIC DEVELOPMENT AUTHORITY AGENDA SECTION BUSINESS ITEMS MEETING DATE 06/02/2025 ITEM: NOAH Program Discussion and Proposal. DEPARTMENT: Community Development BY/DATE: CD Coordinator, 05/30/2025 BACKGROUND: At its February meeting, the EDA directed Community Development staff to develop a proposal to support naturally occurring affordable housing (NOAH) in Columbia Heights. Per the Greater Minnesota Housing Fund, NOAHs are “residential rental properties that are affordable, but… unsubsidized by any federal program. Their rents are relatively low compared to the regional housing market.”* Based on the EDA’s neighborhood and housing revitalization goals, staff’s recommendation during the February discussion was to use the funds in the City’s Affordable Housing Trust Fund to support the new NOAH program. The EDA agreed with this recommendation for program financing. The Affordable Housing Trust Fund currently holds $142,878.18 from the 2024 local affordable housing sales tax issuance (also known as Local Affordable Housing Aid – LAHA – funds). Additional LAHA dollars are expected to be disbursed to the City annually; these dollars will be allocated to the Trust Fund and ensure continuity of financial support for the program over time. Specific income and expenditure requirements are assigned to LAHA funds. Notably, for rental housing, occupying households must earn at or below 80% of the greater of state or area median income (AMI), with priority given for use of funds for households at or below 50%. Income limits do not apply to the property owners unless the units are owner-occupied. Rental properties are also subject to affordability criteria and must be affordable to the local workforce; based on common methods of assessing housing affordability, this means that rents of participating units should not exceed 30% of the occupying household’s income, or 30% of a certain percentage of AMI. All of these restrictions make LAHA funds well-suited to use for NOAH preservation. However, LAHA funds may not be used for administrative and staffing costs. For this reason, the EDA will need to identify a separate budget stream for all administrative costs associated with the program. In order to design the new program, staff consulted the Minnesota Center for Energy and Environment (CEE). CEE is a nonprofit organization that partners with many Minnesota cities on housing grant and loan programs. Given its years of experience and its ongoing government partnerships across the Twin Cities metro area, CEE has both the capacity and the expertise necessary to act as loan originator, loan servicer, and, as applicable for any projects not subject to City permitting, property inspector. Taking into account the rules around LAHA fund use and the EDA’s previous discussions about NOAH priority areas, staff have developed a proposal for a deferred loan program targeted toward the rehabilitation of multi-family (2+ units) NOAH rental properties. The loan program would include the following elements:  A remodeling advisor visit,  Loan origination, and  Loan administration. 42 Item 4. Page 2 Program details:  Deferred loan: no reimbursement required, loan forgiven if the recipient completes the full term of the loan. If the recipient sells or transfers the property, they are required to reimburse the loan in full.  Loan amount: from $2,000 to $50,000  Loan term (duration): 30 years Additional terms:  Manufactured homes and co-ops are not eligible for loans.  No owner-occupancy restrictions: for example, a building owned by an LLC is eligible for a loan.  Loan funds to be held in escrow from loan closing through work completion and inspection, then disbursed to recipients. In order to ensure that participating properties remain affordable, the EDA would enter into a development agreement with each loan recipient. Each agreement would include a recorded declaration or covenant stipulating that affordability requirements (income- and/or rent-based) shall remain in effect for the full term of the loan. Staff have calculated that the approximate Year 1 program administrative cost (not including actual loan disbursements) for a deferred loan program as described would be at least $10,097. This estimate is based on one loan originated and would increase with each additional loan originated. The Year 2 approximate program administrative cost – for one loan, with no additional loans originated in Year 2 – would be at least $5,012. This Year 2 cost would repeat on an annual basis until the conclusion of the loan’s term, regardless of the NOAH program’s duration. Even if the EDA were to dissolve the NOAH program, its contract with CEE would require annual administrative and loan servicing fees until the conclusion of all of the loans’ terms. The details and terms described in staff’s current proposal are flexible and can be modified based on the EDA’s preferences and priorities for the program. The program could also include additional restrictions, for example, caps on percentage of project cost, a minimum number of licensed bids for any giv en project, or choosing to assign origination fees to the recipients to lighten the City’s share of the administrative costs. At this time, staff are asking the EDA for feedback about this program proposal:  Does the general design of the program match the EDA’s intent for NOAH preservation?  Does the EDA wish to modify any of the details or terms proposed in this staff report? Following tonight’s discussion, staff can update the proposal and add or remove terms prior to bringing contract documents before the Commission at its next meeting. *Source: https://noahimpactfund.com/impact -investing-affordable-housing-minnesota/what-is-noah/ 43 Item 4.