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HomeMy WebLinkAbout05-05-2025 EDA Packet ECONOMIC DEVELOPMENT AUTHORITY City Hall—Shared Vision Room, 3989 Central Ave NE Monday, May 05, 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 232 292 874 180 3 and passcode vA373rv2. 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 April 7th, 2025, Regular EDA Meeting Minutes. (pg. 3) 2. Resolution 2025-11 to Approve the Financial Reports and Payment of the Bills for March 2025. (pg. 16) MOTION: Move to approve the Consent Agenda as presented. BUSINESS ITEMS 3. EDA Budget Amendment: 2025 Expenditures. (pg 28) MOTION: Move to waive the reading of Resolution 2025-12, there being ample copies available to the public. MOTION: Move to approve Resolution 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. 4. EDA Grant Program Guidelines Review. (pg. 30) MOTION: Move to approve the Façade Improvement Grant Guidelines as amended. MOTION: Move to approve the Fire Suppression Grant Guidelines as amended. 5. Discussion of Redevelopment Opportunities. (pg. 39) 6. Gap Funding Request 4243 5th St NE. (pg. 40) BUSINESS UPDATES 1 City of Columbia Heights AGENDA May 05, 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, April 07, 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; Justice Spriggs; Amada Márquez- Simula (5:50 pm.) Marlaine Szurek; Lamin Dibba Members absent: Amada Márquez-Simula Staff Present: Mitchell Forney, Community Development Director; Aaron Chirpich, City Manager; Sarah LaVoie, Administrative Assistant; Emilie Voight, Community Development Coordinator; Brenna Jansen, Community Development Intern PLEDGE OF ALLEGIANCE CONSENT AGENDA 1. Approve the minutes of the Special EDA Meeting of February 24, 2025. 2. Approve the minutes of the Regular EDA Meeting of March 03, 2025. 3. Approve financial reports and payment of bills for February 2025 – Resolution No. 2025-08. Motion by Deneen, seconded by Spriggs, to approve the Consent Agenda as presented. All ayes of present. MOTION PASSED. RESOLUTION NO. 2025-08 A RESOLUTION OF THE ECONOMIC DEVELOPMENT AUTHORITY OF COLUMBIA HEIGHTS, MINNESOTA, APPROVING THE FINANCIAL STATEMENTS FOR THE MONTH OF FEBRUARY 2025 AND THE PAYMENT OF THE BILLS FOR THE MONTH OF FEBRUARY 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 February 2025 have been reviewed by the EDA Commission; and 3 Item 1. City of Columbia Heights MINUTES April 07, 2025 EDA Meeting Page 2 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 Passed this 7th day of April, 2025 Offered by: Laurel Deneen Seconded by: Justice Spriggs Roll Call: All ayes of present. MOTION PASSED. President Attest: Secretary: BUSINESS ITEMS 4. Façade Improvement Grant Report for IBNM Properties, LLC, located at 513 40th Ave NE . Jansen reported the report pertains to IBNM Properties LLC's 2025 Façade Improvement Grant application for window replacement at 511 and 513 40th Ave NE. In 2019 , building owner ORB LLC received a façade improvement grant that funded the replacement of four windows at 509 40th Ave NE, which is the same building as the current application. Sometime after that project was completed, IBNM Properties LLC assumed ownership of the building. They now seek a façade improvement grant to replace four windows in units 511 and 513 of the same building, which were broken in an act of vandalism. 4 Item 1. City of Columbia Heights MINUTES April 07, 2025 EDA Meeting Page 3 Jansen stated Diva’s Salon and Roman Cafe are located at 511 and 513 40th Ave NE, where the windows will be replaced. The applicant is applying for grant funds to replace these four windows. Photos of the damaged windows are included in the packet. The applicant also ex pressed interest in the possibility of installing security cameras through the program. Community Development Staff recommends funding the window replacement project in full as the project will improve the safety and appearance of the property. Jansen explained the applicant provided two bids for the window replacement. RAS Glass LLC estimated the job at $4,295. City Wide Glass only included three windows in their estimate, but the applicant would have four windows replaced. Including the fourth window in that est imate would bring the cost to $3,706.52. This qualifies the applicant for a grant amount of $2,147.50. This is the first Façade Improvement Grant to be brought forth in 2025. If approved, the EDA will have $47,852.50 remaining in the program's budget. Questions/Comments from Members: Deneen noted that the Resolution mentioned the City monitoring the surveillance cameras and asked if the approval of the Resolution would include funding for the cameras or if it would come back as a second motion. Jansen replied that it would come back as a second motion. James asked if there was a limit in the program of how many times one property or one owner could apply to the program. Jansen replied that she did not believe there was a limit. Previous applicants have received multiple grants. Forney added that there are no limitations in the program guidelines to limit how many times a property or owner could apply to the program. Motion by Szurek, seconded by Deneen, to waive the reading of Resolution No. 2025-09, there being ample copies available to the public. All ayes of present. MOTION PASSED. Motion by Szurek, seconded by Deneen, to approve Resolution No. 2025-09, a Resolution of the Columbia Heights Economic Development Authority, approving the form and substance of the Façade Improvement Grant Agreement, and approving authority staff and officials to take all actions necessary to enter the authority into a Façade Improvement Grant Agreement with IBNM Properties, LLC.. All ayes of present. MOTION PASSED. RESOLUTION NO. 2025-09 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 IBNM PROPERTIES LLC. 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 5 Item 1. City of Columbia Heights MINUTES April 07, 2025 EDA Meeting Page 4 WHEREAS, pursuant to guidelines established for the Program, the Authority is to award and administer a series of grants to eligible commercial property owners and/or tenants for the purposes of revitalizing existing store fronts, increasing business vitality and economic performance, and decreasing criminal activity along Central Avenue Northeast, in the City’s Business districts, pursuant to a Façade Improvement Grant Agreement with various property owners and/or tenants; and WHEREAS, pursuant to the Program, the City is to coordinate a surveillance camera monitoring program by placing surveillance cameras on some of the storefronts that are part of the Program for the purposes of improving public safety in and around the Central 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 IBNM Properties LLC. 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 7th day of April, 2025 Offered by: Marlaine Szurek Seconded by: Laurel Deneen Roll Call: All ayes of present. MOTION PASSED. President Attest: Secretary: 5. 700 40th Ave NE Fire Suppression Grant Application (Barack Realty, LLC). Voight reported in 2022, the EDA created the Fire Suppression Grant Program to assist local businesses with the expenses incurred when installing fire suppression systems within commercial buildings. Many of the commercial properties in Columbia Heights do not have fire su ppression systems. Certain businesses and certain changes of use require the addition of fire suppression systems to existing buildings. In 2023, the EDA amended the program’s guidelines to expand the 6 Item 1. City of Columbia Heights MINUTES April 07, 2025 EDA Meeting Page 5 maximum grant award, to increase the geographic boundary for eligible properties, and to include industrial properties as eligible businesses. In 2024, the EDA added licensed nonresidential-based childcare facilities to the eligible business types. Since the program’s creation, there have been three grant recipients. Voight stated per the program guidelines, the program reimburses businesses, tenants, or property owners for eligible improvements up to fifty percent (50%) of the total project cost, for a maximum reimbursement of $30,000. The owner of 700 40th Ave NE has submitted an a pplication for this grant program. The existing structure is being remodeled and converted to an office use. Per Minnesota State Statutes 1306.0020 MUNICIPAL OPTION, Subp. 2, this change of use requires the installation of a fire suppression system in the building. Voight explained the applicant has provided two quotes from licensed fire protection contractors: Summit Fire Protection, quoted at $129,385.00, and Infinity Fire Protection, quoted at $89,990.00. These quotes have been included in the meeting packet. In the 2023 budgeting process, the EDA allocated $60,000 to the program to award two grants, but these funds were not expended because there were no applicants in 2024. In the 2024 budgeting process, the EDA allocated $60,000 to the program for 2025. Voight mentioned Staff recommend approval of the application at the maximum reimbursement allowance of $30,000. As demonstrated by the quotes provided by the applicant, the price of adding fire suppression systems is cost-prohibitive for small businesses. Installation of the required fire suppression system in the structure will help modernize the building and ensure it can be used in a safe manner by future tenants. Questions/Comments from Members: Spriggs asked if the unused money would go back into the fund 408. Voight replied that the money is still technically assigned to the program. Therefore, there could be more applicants who receive it this year because the money is waiting in the account. Forney clarified that the money goes into the 408 fund. The money can be, but does not have to be, spent on the program. Szurek mentioned that the scope of work was not provided by Infinity Fire and expressed her concern regarding the work quality. Voight replied that the quotes must come from licensed fire protection contractors. The plan was submitted as part of the grant application and permit application process and was prepared by Infinity Fire. She added that the information that was provided in the plan was sufficiently detailed to obtain the required fire permit. Voight noted that she was unaware of any current code violations on the property. Staff have been in touch with the individuals doing the building conversion about the plans to proceed in a safe and appropriately permitted manner. Dibba asked if the City historically just went by the basic requirement that the contractor must be licensed in fire suppression, or if there are additional qualifications that are looked into to ensure the quality of work. Forney replied that the EDA has two bids in order to ensure that the 7 Item 1. City of Columbia Heights MINUTES April 07, 2025 EDA Meeting Page 6 contractors are not overbidding on a project. Typically, the lowest bidder is chosen, but the applicant can pick the higher bid if it believes the quality of work will be greater. He explained that the Fire Department and the building official are involved in the fire suppression grant process. The City ensures that the fire suppression system runs and operates according to City Code. The façade grant program looks at the workmanship more than the fire suppression grant program, since the fire suppression grant program is more concerned with whether the system functions appropriately or not. Voight explained that the fire suppression installation is required because the building is undergoing a change of use. If the use were to remain the same as the previous use, there would likely be no requirement triggering the installation of a new fire suppression system. She added that she heard and understood the concern about having quality work being completed and emphasized the importance of making buildings safer. Motion by Spriggs, seconded by Buesgens, to waive the reading of Resolution No. 2025-10, there being ample copies available to the public. All ayes of present. MOTION PASSED. Motion by Spriggs, seconded by Buesgens, to adopt Resolution No. 2025-10, a Resolution of the Economic Development Authority of Columbia Heights, Minnesota, approving the form and substance of the Fire Suppression Grant Agreement, and approving authority staff and officials to take all actions necessary to enter the authority into the Fire Suppression Grant Agreement with Barack Realty, LLC. All ayes of present. MOTION PASSED. RESOLUTION NO. 2025-10 A RESOLUTION OF THE ECONOMIC DEVELOPMENT AUTHORITY OF COLUMBIA HEIGHTS, MINNESOTA, APPROVING THE FORM AND SUBSTANCE OF THE FIRE SUPPRESSION GRANT AGREEMENT, AND APPROVING AUTHORITY STAFF AND OFFICIALS TO TAKE ALL ACTIONS NECESSARY TO ENTER THE AUTHORITY INTO THE FIRE SUPPRESSION GRANT AGREEMENT WITH BARACK REALTY, LLC. WHEREAS, the City of Columbia Heights (the “City”) and the Columbia Heights Economic Development Authority (the “Authority”) have collaborated to create a certain Fire Suppression 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 or industrial property owners and/or tenants for the purposes of revitalizing, rehabilitating, and restoring buildings, and increasing business vitality, economic performance, and public safety; 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 8 Item 1. City of Columbia Heights MINUTES April 07, 2025 EDA Meeting Page 7 into the agreement with Barack Realty, LLC. 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. Passed this 7th day of April, 2025 Offered by: Justice Spriggs Seconded by: Connie Buesgens Roll Call: All ayes of present. MOTION PASSED. President Attest: Secretary: 6. 2025 Outstanding Business of the Year Award. Voight reported in November of 2022, the EDA approved the establishment of the Outstanding Business of the Year Award. This award recognizes local businesses for noteworthy accomplishments, contributions to the community, and significant community service efforts. Voight noted the award criteria include: being a long-standing business within the City of Columbia Heights and reaching a milestone year; completing a major business expansion, remodel, exterior renovations, landscaping improvements, or a relocation to a new facility within the City; implementing environmentally friendly or sustainability-related initiatives or improvements; making a major contribution or contributions to the community; and/or performing other accomplishments or contributions worthy of recognition. The EDA reserves the right to make no selection if the nominations do not meet the standard of recognition. Voight stated that this year, the EDA received four nominations for the following local businesses (in alphabetical order): Hairatage, The Central Mix, The Golden Nuts, and Yummy Bites. Nominations were submitted by community members residing in Columbia Heights. The nominations have been included in the meeting packet. If selected as the 2025 Business of the Year, the winning business will be honored by the presentation of a plaque during a City Council meeting, by marketing of the achievement at City even ts and on City reader board signs, and by being spotlighted in a recognition article posted on the City's website and in its newsletter. Questions/Comments from Members: 9 Item 1. City of Columbia Heights MINUTES April 07, 2025 EDA Meeting Page 8 Deneen mentioned she was excited to see Hairatage nominated because they have been around for a long time. She added that the haircuts are affordable, and the prices have not risen since Covid. The community knows Hairatage well, and the owner is well known and active in the community. The 15th anniversary of Hairatage is coming up. She added that The Golden Nuts is a staple in the community and also stood out as a possible option. Buesgens noted she likes all of the businesses. Hairatage has been a long-standing business. She mentioned she did not know how the contribution to the community compared to the other businesses. She stated her top contender would be Hairatage since it has been there the longest, and the other businesses are newer to the community. She added that her second choice would be The Golden Nuts. Szurek stated she was impressed by Hairatage and would like to give the award to someone who has been in the community for a while. She added that her second choice would be The Central Mix because she knows the owners, and they have been in the community for a long time. She noted she would like to see more from the other two businesses before they are considered , since they are newer to the City. Spriggs agreed with the previous comments and added that it is an accomplishment that Hairatage made it through Covid and is still affordable, and deserves recognition. Dibba agreed with voting for Hairatage. James agreed with the previous comments. Motion by Buesgens, seconded by Deneen, to approve Hairatage as the 2025 Columbia Heights Business of the Year. All ayes of present. MOTION PASSED. 7. 2025 EDA Expenditures Discussion Forney reported Community Development wanted to bring forth a comprehensive discussion regarding expenditures for 2025. For 2025, the EDA has budgeted $375,000 for Fund 204 and $425,000 for Fund 408. Fund 204 is an operating fund that was increased to provide greater flexibility for the EDA’s initiatives. This fund will retain a budgeted fund balance of $310,000, with an additional $65,000 transferred to Fund 408 for expenditure. Forney mentioned Fund 408’s 2025 budget included the following expenditures: • $5,000 for the Home Energy Squad Program (This expenditure was removed in 2025 after Xcel Energy took on the 50% buy down for the Home Energy Squad Program.) • $50,000 for the Façade Improvement Grant Program • $60,000 for the Fire Suppression Grant Program • $200,000 for the Commercial Revitalization Program Forney stated that with the additional $65,000 from Fund 204 and the $5,000 no longer allocated to HES, Fund 408 has $180,000 available for allocation in 2025. Staff seeks guidance from the EDA on how to allocate these funds. Tonight’s discussion does not encompass all revenue sources (e.g., ACHRA levy, 10 Item 1. City of Columbia Heights MINUTES April 07, 2025 EDA Meeting Page 9 pooled TIF funds, etc.), but it aims to establish a plan for expenditure early in the year. Listed below are initiatives highlighted during EDA goal-setting sessions that may require funding: - Shift additional funding from Fund 408 to the local housing trust fund in order to increase the amount of affordable housing resources available. - Set aside funds to be utilized in conjunction with pooled TIF funds in preparation for purchasing and redeveloping a blighted single-family home in partnership with Habitat for Humanity. - Set money aside to pursue possible future loan or grant programs, for example, a business remodel 2% loan program, a front door rehabilitation loan program, or a single-family home rehabilitation program. Forney explained that Staff recommends amending existing grant programs and utilizing additional funds to expand them. Increasing funding for the Commercial Revitalization Program from $200,000 to $300,000 would allow the City to continue purchasing approximately one property per year, as rising market costs have made $200,000 insufficient for property acquisition and demolition. Staff also suggests expanding this program to support a broader range of properties. Additionally, Staff recommends increasing the Façade Improvement Grant from $50,000 to $80,000 and expanding its eligibility to include interior improvements, permanent landscaping, and larger grant amounts for businesses in the Central Business District. A discussion on including funding for façade improvement camera installation is up for discussion next. This $30,000 increase could be utilized to add cameras in 2025. Staff also recommend that the Fire Suppression Grant Program be increased from $60,000 to $100,000, with an individual grant cap increase to $50,000, and expanding grant eligibility to all commercial properties within the city to encourage broader participation. Moreover, allocating $10,000 for a public art initiative could enhance the Central Business District through either a commissioned public art piece or a business-based public art grant. Staff are not currently seeking feedback on the proposed edits to the current grant program guidelines, but thought the possible future changes may add context to the budget conversation. Questions/Comments from Members: James noted that the Agenda Packet says that Staff are not currently seeking feedback on the proposed edits to the current grant program guidelines because they are seeking feedback on the budget. Buesgens stated that she liked that Staff are expanding the grant programs and that there would be exterior improvements. She asked for clarification on the proposed rehabilitation loan. Forney replied that the front door rehabilitation loan program would be used to rehabilitate single-family homes. Buesgens mentioned an idea of having funds in the façade improvement program, where businesses could use funds for their thresholds in 2028 after the Central Ave project. She added that next year, the Federal small business loan program would be cut, and it could be a time when the City could provide small business loans. Deneen asked how much murals usually cost. Buesgens replied that it can range. Deneen wondered if $10,000 would be enough to cover the cost for a high-quality artist to provide art on Central Avenue. Szurek replied that it is a start, but it would not be enough. James added that in a couple of years, there would be enough funds. Buesgens noted she would like to see a kinetic art 11 Item 1. City of Columbia Heights MINUTES April 07, 2025 EDA Meeting Page 10 piece. Voight added that there would need to be ongoing maintenance of the art piece and that this will be discussed in a future conversation on public art . James stated she liked seeing the funds go up for the commercial revitalization program due to the market value of homes currently. 8. Façade Improvement Grant Cameras Discussion. Voight reported the EDA’s façade improvement grant program involves collaboration with the Columbia Heights Police Department (CHPD) to install City-owned surveillance cameras on the outside of grantee businesses. The goal of this part of the grant program is to reduce the incident rate of criminal activity while increasing business vitality and economic performance. Typically, cameras are not installed one-by-one on grantee properties but are instead installed in a batch once several grantees have expressed interest in cameras. Voight mentioned in 2024, the EDA approved ten façade improvement grant applications. Seven of these grantees expressed interest in the installation of surveillance cameras on their properties. So far in 2025, Staff have received one application for a façade improvement grant. The business owner who submitted this application has also indicated that they would be interested in cameras. Voight stated the EDA budgeted $50,000 for façade improvement grants in 2025 and has the authority to use all or a portion of these funds for the installation of cameras instead of for direct disbursement to grantees. In the past, the Commission has waited to install cam eras until the end of the year in order to assess how much of the annual program budget remained after the direct disbursements to grantees. Another option the EDA could consider would be preemptively setting aside part of the 2025 program budget for camera installation. For reference, at the end of 2024, only $3,248 remained from the initial $50,000 program budget. Voight noted because no cameras were installed in 2024 and because several grantees have expressed interest, Staff recommend that the EDA discuss and come to an agreement tonight on how to budget for camera installation in 2025. Once the EDA has provided direction on th is item, Staff will liaise with CHPD to evaluate which grantee properties might be candidates for cameras and will then obtain quotes from camera installers. Per the program guidelines, in order to install cameras, grantees will be required to enter into lease agreements with the EDA. Questions/Comments from Members: Dibba asked how many cameras had been installed in the five businesses in 2022-2023. Forney replied that all the cameras require a DVR in order for the police to be able to pull the footage. There is talk that a fiber line would be coming through the City, which would mean the camera program may no longer require the expensive DVR. In 2022-2023, three cameras were installed at the Heights Cyclery and one DVR. Five cameras and one DVR were installed at Lowell’s Auto. Three cameras and one DVR were installed at Heights VFW. Two cameras and one DVR were installed at Matt’s auto. Two cameras and one DRV were installed at Five Dollar Pizza. There were 15 total 12 Item 1. City of Columbia Heights MINUTES April 07, 2025 EDA Meeting Page 11 cameras installed. Dibba mentioned that it is a worthy investment and provides security in the community. He asked if there was data on the impact of the cameras that have already been installed. Forney replied that there are no statistics, but he could speak with the Police Department to get data. On the first day the cameras were installed, someone who was tagging businesses with graffiti was caught. The cameras were also used to solve a murder in the City. Deneen asked what was involved with the lease agreements. Forney replied in order to make the lease agreement official, the City pays the business $10 to establish the agreement. The business pays for the electricity to run the DRV. The City pays for the installation, the cameras, and anything else associated with it. The lease agreement ultimately states that if their employee damages a camera, they are responsible for the replacement of it, and that the City has access to the DVR at any time. The EDA could consider doing more than $10 so that the businesses are not paying as much for the electricity. Szurek asked if the cameras were motion-activated. Forney replied that they are running all the time. Buesgens asked how much the DRV costs. Voight replied about $2,000. Buesgens asked if the façade improvement grant cameras could be on a case-by-case basis. Forney replied that the EDA could do that, or they could wait until the end of the year to see how much money has already been expended. Buesgens mentioned that she would like to see a case-by-case basis because she would not want to send away a business that would want a camera. Deneen noted that the EDA should wait to hear about the fiber option , since it could significantly cut costs, since a DVR would not be needed. Chirpich noted that the fiber option would not be available for another three years. Deneen noted she would not want to spend $10,000 on something that would only be good for a year. Spriggs asked what the cost would be in 2025 since there has been inflation since 2022. He added that $40,000 may only cover two businesses instead of five. He asked if there could be a cost comparison between 2025 and 2022. James mentioned she believed the EDA should get more information and then discuss the item more in the future. Buesgens asked if the camera outside City Hall would be replaced since the quality of the camera was poor. Chirpich replied that there are no immediate plans to replace it. BUSINESS UPDATES Voight updated the EDA that the application for the Minnesota Housing Finance Agency Local Housing Trust Fund Grant dollars was submitted last month and Staff expect to hear back from them in June. 13 Item 1. City of Columbia Heights MINUTES April 07, 2025 EDA Meeting Page 12 Staff are working on a proposal for the NOAH program and will present the proposal to the EDA at an upcoming meeting. Forney noted that Columbia Heights Rental approached the City because they are looking to retire from the business. As part of the development of the library parcel, they received an easement agreement for 25 feet around the building. The City has a first right of refusal on the parcel. If the owners decide to sell the entire business, and they get a bona fide offer , the EDA or the City could take the offer and purchase the property. The owners have approached Staff to talk about the purchase. They are asking for $1.6 million for the parcel. Staff are currently working with the City’s Attorney to get a better idea of the options. Forney wondered if the EDA was interested in the purchase of the property. It would open redevelopment opportunities on the corner in conjunction with the library parcel. Chirpich added that the time frame for sale is one to two years. He mentioned that he thought it was a great redevelopment site. Deneen asked what the hope would be for the site. Chirpich replied that it would not be a good site for a coffee shop and that there are additional challenges in the area. He noted that Staff had discussed ideas such as a restaurant. Buesgens noted that the price the owners are looking at is not too far “out of the ball park” since it is on Central Avenue. Forney noted that the City paid $750,000 for the two properties across the street. Buesgens asked if a portion of the money would come from the County for redevelopment. Forney replied that Staff are in discussion about that. The EDA would likely need to use some of its funds. Forney mentioned that the City has been contacted by the University of St. Thomas about the Community Entrepreneurship Program. The program does cohorts in women- and BIPOC-owned businesses to teach them how to be entrepreneurs and everything they need to know to grow a business. They reached out to the City because they cannot find a place in Anoka County to run the program near a transit line. The City has investigated using Murzyn Hall to host the meetings. However, there is a fee to provide staffing. He asked if the EDA was interested in supporting this and potentially partnering with the County to cover the staffing fees. James asked what time the cohort met and the number of people in attendance. Forney replied that it would be 30 people and would start in September and go for six weeks on Saturdays. James noted that Murzyn Hall is not a very transit-friendly location. Forney agreed and mentioned that the program leaders investigated a couple of locations and thought Murzyn Hall would be the best. He added that Staff would work with the legal side of things to make sure it would work. ADJOURNMENT Motion by Deneen, seconded by Buesgens, to adjourn the meeting at 6:04 pm. All ayes. MOTION PASSED. Respectfully submitted, 14 Item 1. City of Columbia Heights MINUTES April 07, 2025 EDA Meeting Page 13 _______________________________ Sarah LaVoie, Recording Secretary 15 Item 1. Resolution 2025-11 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 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 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 WHEREAS, the EDA Commission has other means to verify the intent of Section 469.096, Subd. 9, including but not limited to Comprehensive Annual Financial Reports, Annual City approved Budgets, Audits and similar documentation; and WHEREAS, financial statements are held by the City’s Finance Department in a method outlined by the State of Minnesota’s Records Retention Schedule, NOW, THEREFORE BE IT RESOLVED by the Board of Commissioners of the Columbia Heights Economic Development Authority that it has examined the referenced financial statements including the check history, and they are found to be correct, as to form and content; and BE IT FURTHER RESOLVED the financial statements are acknowledged and received and the check history as presented in writing is approved for payment out of proper funds; and BE IT FURTHER RESOLVED this resolution is made as part of the permanent records of the Columbia Heights Economic Development Authority. ORDER OF ECONOMIC DEVELOPMENT AUTHORITY Passed this 5th day of May 2025 Offered by: Seconded by: Roll Call: Title: Attest: Title: Secretary 16 Item 2. AmountInvoiceInvoice DateVendorInvoice Line DescGL Number INVOICE GL DISTRIBUTION REPORT FOR CITY OF COLUMBIA HEIGHTS 1/2Page:04/15/2025 10:04 AM User: suems DB: Columbia Heights EXP CHECK RUN DATES 03/01/2025 - 03/31/2025 BOTH JOURNALIZED AND UNJOURNALIZED PAID Check 2021 785.00 858850901/15/25AMERICAN PLANNING ASSOC.NATIONAL PLANNING CONF-E. VOIGHT204.6314.43105 280.00 80501/16/25ECONOMIC DEVELOPMENT ASSOC. OF MN2025 WINTER CONF M. FORNEY204.6314.43105 700.00 012425 EHLERS01/24/25EHLERS & ASSOCIATES INCPUBLIC FINANCE SEMINAR-A. BOUCHER204.6314.43105 30.00 343002/05/25ECONOMIC DEVELOPMENT ASSOC. OF MNMEMBERSHIP-CD INTERN204.6314.44330 1,795.00 Total For Check 2021 Check 202226 24.08 23378273202/15/25COMCAST021525 934571297 COMM DEV ADMIN (2.3%)204.6314.43250 24.08 Total For Check 202226 Check 202304 4,700.00 10042502/17/25EHLERS & ASSOCIATES INCLICOLN AVE COMMMUNITIES MEDTRONIC ANALYS204.0000.22825 620.00 10035602/17/25EHLERS & ASSOCIATES INCGENERAL TIF CONSULTING204.6314.43050 300.00 10031602/17/25EHLERS & ASSOCIATES INCTIF ESTIMATES UPDATE NE BUSINESS392.7000.43050 5,620.00 Total For Check 202304 Check 202319 151.15 18648502/17/25KENNEDY & GRAVENCL205-00031 CONVEYANCE 960 40TH 204.6314.43045 151.15 Total For Check 202319 Check 202386 1,481.90 1080321429903/06/25DELL MARKETING LPTEAMS PREMIUM204.6314.44030 1,481.90 Total For Check 202386 Check 202416 51.87 99286852601/26/25POPP.COM INC022625 - 10013121 PHONE COMMDEV ADMIN204.6314.43210 13.86 99286951702/28/25POPP.COM INC022825 -10010429 COM DEV ADMINISTRATION204.6314.43210 65.73 Total For Check 202416 Check 202452 24.08 23631032403/15/25COMCAST031525 934571297 COMM DEV ADMIN (2.3%)204.6314.43250 24.08 Total For Check 202452 Check 202495 550.00 15049385601/31/25REDPATH AND COMPANY LLC2024 AUDIT ENGAGEMENT204.6314.43050 550.00 Total For Check 202495 Check 202512 1,246.94 116796485003/11/25XCEL ENERGY (N S P)ELECTRIC228.6317.43810 1,246.94 Total For Check 202512 Check 2035 245,438.81 12312412/31/24COLUMBIA HEIGHTS LEASED1ST HALF DISTRICT T6 2025372.7000.44600 245,438.81 Total For Check 2035 Check 2036 93,502.02 12312412/31/24COLUMBIA HEIGHTS LEASED1ST HALF DISTRICT Z6 2025375.7000.44600 93,502.02 Total For Check 2036 17 Item 2. AmountInvoiceInvoice DateVendorInvoice Line DescGL Number INVOICE GL DISTRIBUTION REPORT FOR CITY OF COLUMBIA HEIGHTS 2/2Page:04/15/2025 10:04 AM User: suems DB: Columbia Heights EXP CHECK RUN DATES 03/01/2025 - 03/31/2025 BOTH JOURNALIZED AND UNJOURNALIZED PAID 9,411.94 Fund 204 EDA ADMINISTRATION 1,246.94 Fund 228 DOWNTOWN PARKING 245,438.81 Fund 372 HUSET PARK AREA TIF (T6) 93,502.02 Fund 375 TIF Z6: 47TH & GRAND 300.00 Fund 392 TIF BB2 ALATUS 40TH AV Fund Totals: 300.00 TIF ESTIMATES UPDATE NE BUSINESS392.7000.43050 93,502.02 1ST HALF DISTRICT Z6 2025375.7000.44600 245,438.81 1ST HALF DISTRICT T6 2025372.7000.44600 1,246.94 ELECTRIC228.6317.43810 30.00 MEMBERSHIP-CD INTERN204.6314.44330 1,481.90 TEAMS PREMIUM204.6314.44030 48.16 021525 934571297 COMM DEV ADMIN (2.3%)204.6314.43250 65.73 022625 - 10013121 PHONE COMMDEV ADMIN204.6314.43210 1,765.00 NATIONAL PLANNING CONF-E. VOIGHT204.6314.43105 1,170.00 GENERAL TIF CONSULTING204.6314.43050 151.15 CL205-00031 CONVEYANCE 960 40TH 204.6314.43045 4,700.00 LICOLN AVE COMMMUNITIES MEDTRONIC ANALYS204.0000.22825 --- TOTALS BY GL DISTRIBUTION --- 349,899.71 Total For All Funds: 18 Item 2. REVENUE AND EXPENDITURE REPORT FOR CITY OF COLUMBIA HEIGHTS 1/9Page:04/15/2025 10:03 AM User: suems DB: Columbia Heights PERIOD ENDING 03/31/2025 % BDGT USED UNENCUMBERED BALANCE YTD BALANCE 03/31/2025 ACTIVITY FOR MONTH 03/31/25 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 30.00 0.00 0.00 ADMINISTRATIVE FEES204.0000.34112 100.00 (30.00)30.00 30.00 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 30.00 0.00 377,000.00 Total Dept 0000 - NON-DEPARTMENTAL 0.01 376,970.00 30.00 30.00 0.00 377,000.00 TOTAL REVENUES Expenditures Dept 6314 - ECONOMIC DEVELOPMENT AUTH PERSONNEL SERVICES 23.33 143,521.69 43,678.31 16,307.39 0.00 187,200.00 REGULAR EMPLOYEES204.6314.41010 24.68 10,544.61 3,455.39 1,164.22 0.00 14,000.00 P.E.R.A. CONTRIBUTION204.6314.41210 22.87 11,029.65 3,270.35 1,219.43 0.00 14,300.00 F.I.C.A. CONTRIBUTION204.6314.41220 16.04 20,571.25 3,928.75 1,281.68 0.00 24,500.00 INSURANCE204.6314.41300 24.40 529.19 170.81 57.06 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 21.79 195,596.39 54,503.61 20,029.78 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 (151.15)151.15 0.00 0.00 0.00 ATTORNEY FEES-OTHER204.6314.43045 65.92 3,032.75 3,092.25 743.50 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 75.13 223.79 197.38 65.84 478.83 900.00 TELEPHONE204.6314.43210 35.30 517.64 282.36 282.36 0.00 800.00 POSTAGE204.6314.43220 26.14 221.57 78.43 24.08 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 0.00 1,500.00 0.00 0.00 0.00 1,500.00 OUT OF TOWN TRAVEL EXPENSE204.6314.43320 0.00 200.00 0.00 0.00 0.00 200.00 LEGAL NOTICE PUBLISHING204.6314.43500 25.00 2,624.99 875.01 291.67 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 1,481.90 4,556.52 1,100.00 SOFTWARE & SOFTWARE SUBSCRIPTIONS204.6314.44030 19 Item 2. REVENUE AND EXPENDITURE REPORT FOR CITY OF COLUMBIA HEIGHTS 2/9Page:04/15/2025 10:03 AM User: suems DB: Columbia Heights PERIOD ENDING 03/31/2025 % BDGT USED UNENCUMBERED BALANCE YTD BALANCE 03/31/2025 ACTIVITY FOR MONTH 03/31/25 ENCUMBERED YEAR-TO-DATE 2025 AMENDED BUDGETDESCRIPTIONGL NUMBER Fund 204 - EDA ADMINISTRATION Expenditures 25.00 7,124.99 2,375.01 791.67 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 56.50 14,354.88 10,834.77 3,681.02 7,810.35 33,000.00 OTHER SERVICES & CHARGES CONTINGENCIES & TRANSFERS 21.91 19,600.01 5,499.99 1,833.33 0.00 25,100.00 OPER. TRANSFER OUT - LABOR204.6314.47100 21.91 19,600.01 5,499.99 1,833.33 0.00 25,100.00 CONTINGENCIES & TRANSFERS 25.46 230,315.06 70,874.59 25,544.13 7,810.35 309,000.00 Total Dept 6314 - ECONOMIC DEVELOPMENT AUTH 25.46 230,315.06 70,874.59 25,544.13 7,810.35 309,000.00 TOTAL EXPENDITURES 115.67 146,654.94 (70,844.59)(25,514.13)(7,810.35)68,000.00 NET OF REVENUES & EXPENDITURES 25.46 230,315.06 70,874.59 25,544.13 7,810.35 309,000.00 TOTAL EXPENDITURES 0.01 376,970.00 30.00 30.00 0.00 377,000.00 TOTAL REVENUES Fund 204 - EDA ADMINISTRATION: 20 Item 2. REVENUE AND EXPENDITURE REPORT FOR CITY OF COLUMBIA HEIGHTS 3/9Page:04/15/2025 10:03 AM User: suems DB: Columbia Heights PERIOD ENDING 03/31/2025 % BDGT USED UNENCUMBERED BALANCE YTD BALANCE 03/31/2025 ACTIVITY FOR MONTH 03/31/25 ENCUMBERED YEAR-TO-DATE 2025 AMENDED BUDGETDESCRIPTIONGL NUMBER Fund 228 - DOWNTOWN PARKING Revenues Dept 0000 - NON-DEPARTMENTAL TRANSFERS & NON-REV RECEIPTS 25.00 43,500.01 14,499.99 4,833.33 0.00 58,000.00 TRANSFER IN-SPECIAL PROJ REV228.0000.39247 25.00 43,500.01 14,499.99 4,833.33 0.00 58,000.00 TRANSFERS & NON-REV RECEIPTS 25.00 43,500.01 14,499.99 4,833.33 0.00 58,000.00 Total Dept 0000 - NON-DEPARTMENTAL 25.00 43,500.01 14,499.99 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 25.00 2,775.01 924.99 308.33 0.00 3,700.00 PROP & LIAB INSURANCE228.6317.43600 23.71 1,602.16 497.84 0.00 0.00 2,100.00 UTILITY SERVICES228.6317.43800 19.06 10,845.60 2,554.40 1,246.94 0.00 13,400.00 ELECTRIC228.6317.43810 11.79 31,050.45 3,535.25 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 20.06 45,164.49 10,721.21 1,555.27 614.30 56,500.00 OTHER SERVICES & CHARGES 19.54 46,664.49 10,721.21 1,555.27 614.30 58,000.00 Total Dept 6317 - DOWNTOWN PARKING 19.54 46,664.49 10,721.21 1,555.27 614.30 58,000.00 TOTAL EXPENDITURES 100.00 (3,164.48)3,778.78 3,278.06 (614.30)0.00 NET OF REVENUES & EXPENDITURES 19.54 46,664.49 10,721.21 1,555.27 614.30 58,000.00 TOTAL EXPENDITURES 25.00 43,500.01 14,499.99 4,833.33 0.00 58,000.00 TOTAL REVENUES Fund 228 - DOWNTOWN PARKING: 21 Item 2. REVENUE AND EXPENDITURE REPORT FOR CITY OF COLUMBIA HEIGHTS 4/9Page:04/15/2025 10:03 AM User: suems DB: Columbia Heights PERIOD ENDING 03/31/2025 % BDGT USED UNENCUMBERED BALANCE YTD BALANCE 03/31/2025 ACTIVITY FOR MONTH 03/31/25 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): 22 Item 2. REVENUE AND EXPENDITURE REPORT FOR CITY OF COLUMBIA HEIGHTS 5/9Page:04/15/2025 10:03 AM User: suems DB: Columbia Heights PERIOD ENDING 03/31/2025 % BDGT USED UNENCUMBERED BALANCE YTD BALANCE 03/31/2025 ACTIVITY FOR MONTH 03/31/25 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: 23 Item 2. REVENUE AND EXPENDITURE REPORT FOR CITY OF COLUMBIA HEIGHTS 6/9Page:04/15/2025 10:03 AM User: suems DB: Columbia Heights PERIOD ENDING 03/31/2025 % BDGT USED UNENCUMBERED BALANCE YTD BALANCE 03/31/2025 ACTIVITY FOR MONTH 03/31/25 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: 24 Item 2. REVENUE AND EXPENDITURE REPORT FOR CITY OF COLUMBIA HEIGHTS 7/9Page:04/15/2025 10:03 AM User: suems DB: Columbia Heights PERIOD ENDING 03/31/2025 % BDGT USED UNENCUMBERED BALANCE YTD BALANCE 03/31/2025 ACTIVITY FOR MONTH 03/31/25 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 75.00 600.00 0.00 EXPERT & PROFESSIONAL SERV.392.7000.43050 100.00 (1,646.02)1,046.02 75.00 600.00 0.00 OTHER SERVICES & CHARGES 100.00 (1,646.02)1,046.02 75.00 600.00 0.00 Total Dept 7000 - BONDS 100.00 (1,646.02)1,046.02 75.00 600.00 0.00 TOTAL EXPENDITURES 100.00 1,646.02 (1,046.02)(75.00)(600.00)0.00 NET OF REVENUES & EXPENDITURES 100.00 (1,646.02)1,046.02 75.00 600.00 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: 25 Item 2. REVENUE AND EXPENDITURE REPORT FOR CITY OF COLUMBIA HEIGHTS 8/9Page:04/15/2025 10:03 AM User: suems DB: Columbia Heights PERIOD ENDING 03/31/2025 % BDGT USED UNENCUMBERED BALANCE YTD BALANCE 03/31/2025 ACTIVITY FOR MONTH 03/31/25 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: 26 Item 2. REVENUE AND EXPENDITURE REPORT FOR CITY OF COLUMBIA HEIGHTS 9/9Page:04/15/2025 10:03 AM User: suems DB: Columbia Heights PERIOD ENDING 03/31/2025 % BDGT USED UNENCUMBERED BALANCE YTD BALANCE 03/31/2025 ACTIVITY FOR MONTH 03/31/25 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 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: 1,778.43 258,478.38 (260,553.73)(22,311.07)(13,324.65)(15,400.00)NET OF REVENUES & EXPENDITURES 16.34 1,476,991.63 275,083.72 27,174.40 13,324.65 1,765,400.00 TOTAL EXPENDITURES - ALL FUNDS 0.83 1,735,470.01 14,529.99 4,863.33 0.00 1,750,000.00 TOTAL REVENUES - ALL FUNDS 27 Item 2. ECONOMIC DEVELOPMENT AUTHORITY AGENDA SECTION BUSINESS ITEMS MEETING DATE 05/05/2025 ITEM: EDA Budget Amendment: 2025 Expenditures. DEPARTMENT: Community Development BY/DATE: CD Coordinator 04/29/2025 BACKGROUND: 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 Redevelopment Fund 408, had not yet been assigned to specific uses. 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  Allocating $10,000 for an EDA-led public art initiative in the Central Business District. The attached resolution makes financial adjustments to the EDA’s account s 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. RECOMMENDED MOTION(S): MOTION: Move to waive the reading of Resolution 2025-12, there being ample copies available to the public. MOTION: Move to approve Resolution 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. ATTACHMENT(S): 1. Resolution 2025-12 28 Item 3. 1 Resolution 2025-12 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. ORDER OF ECONOMIC DEVELOPMENT AUTHORITY Adopted this 5th day of May, 2025 Offered by: Seconded by: Roll Call: Title: Attest: Title: 29 Item 3. ECONOMIC DEVELOPMENT AUTHORITY AGENDA SECTION BUSINESS ITEMS MEETING DATE 05/05/2025 ITEM: EDA Grant Program Guidelines Review DEPARTMENT: Community Development BY/DATE: Mitchell Forney, 4-23-25 BACKGROUND: 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. 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. 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 significant safety and compliance needs. 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 individual purchases, rather than through a formalized set of guidelines. Staff recommend continuing this flexible, project-based approach. To that end, staff propose 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 30 Item 4. Page 2 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 implement ing any approved changes to enhance the effectiveness and reach of the EDA’s grant and revitalization programs. RECOMMENDED MOTION(S): MOTION: Move to approve the Façade Improvement Grant Guidelines as amended. MOTION: Move to approve the Fire Suppression Grant Guidelines as amended. ATTACHMENT(S): 1. Façade Improvement Grant Guidelines Proposed Amendment 2. Fire Suppression Grant Guidelines Proposed Amendment 31 Item 4. FAÇADE IMPROVEMENT GRANT PROGRAM COMMUNITY DEVELOPMENT – FAÇADE IMPROVEMENT GRANT PROGRAM REVISED AS OF: 5/5/2025 PROGRAM OVERVIEW In a collaborative effort with the Columbia Heights Police Department (the “CHPD”), the Columbia Heights Economic Development Authority (the “EDA”) offers a Façade Improvement Grant Program (the “Grant Program”). The purpose of the Grant Program is to encourage businesses and commercial property owners to revitalize, rehabilitate, and restore exterior store fronts, but also for the CHPD to provide monitored surveillance in the City to reduce the incident rate of criminal activity, as well as increase business vitality and economic performance. The Grant Program reimburses businesses or commercial property owners for eligible improvements up to fifty percent (50%) of the total project cost, for a maximum reimbursement of $5,000. However, businesses located within the Central Business Zoning District are eligible for an enhanced grant amounting up to fifty percent (50%) of the total project cost, for a maximum reimbursement of $10,000. Moreover, if determined by the CHPD that an exterior surveillance system is warranted, the EDA will install surveillance equipment to monitor adjacent businesses and properties, as well as parks and open spaces. ELIGIBLE APPLICANTS Applicants must be an owner of a commercial property, a commercial tenant with approval from the property owner(s), or a 501(c)(3) organization in the City of Columbia Heights (the “City”) located along 37th Avenue NE, 37th Place NE, 40th Avenue NE, University Avenue NE, or Central Avenue NE. Applicants must be in good standing with the City, including but not limited to, legally operating with proper licensure; and current on property taxes, utility bills, and special assessments. ELIGIBLE FAÇADE IMPROVEMENTS Façade improvements must be visible from a public street completed by a licensed contractor, and comply with one or more of the following eligible façade improvements: or, for properties located within the Central Business Zoning District, from a public alleyway. All improvements must be completed by a licensed contractor and must correspond to one or more of the following eligible project types:  Architectural Improvements  Canopy or Awning Installation or Repair  Exterior Llighting  Exterior Painting, Re-siding, or Professional Cleaning  Green Façade Improvement (i.e. Living Wall, ecofriendly [non-VOC] paint, reclaimed wood, etc.)  Installation of New or Renovated Signage (Excluding LED)  Masonry Repairs or Tuck-pointing  Replacement of Windows and Doors  Restoration of Exterior Finishes and Materials  Permanent Landscaping (i.e. elements of hardscaping, large planters, trees, benches, etc.)  Any other exterior façade improvement approved by the EDA 32 Item 4. PAGE 2 OF 4 Please note: Labor costs of a contractor, including necessary design work, are eligible costs for reimbursement through the Grant Program. Ineligible costs include, but are not limited to, new construction, interior renovations, repair or replacement of a roof, improvements to an alley façade, improvements started prior to receiving a signed grant agreement from the EDA, and any other improvements not listed above. EXTERIOR SURVEILLANCE SYSTEM IMPROVEMENTS The CHPD shall review all Grant Program applications submitted to determine if the installation of an exterior surveillance system is warranted. If it is determined that an exterior surveillance system is warranted, the applicant will then be required to enter into a Lease Agreement with the EDA. The Lease Agreement will allow the EDA to (1) install security cameras on the exterior of the primary structure; (2) install recording equipment inside of the primary structure in a locked and secured location to prevent destruction or tampering; and (3) allow for annual maintenance inspections for a period of five (5) years. All surveillance system equipment shall be installed by a consultant selected by the EDA, and reviewed by the CHPD. Since specifications of the surveillance system equipment may vary based on desired coverage, configuration, and size of the commercial property, the following are minimum specifications to be installed: Cameras:  IP - Enabled  Ability to operate in all resolutions up to HDTV 720p/ 1MP  Ability to record thirty (30) frames per second  Capable of recording optimal images in all lighting conditions  Vandal-resistant  Weather-proof in extreme temperatures from -40° to 131 °F Network Video Recorder:  Sufficient memory to retain data from all cameras for a period of fifteen (15) days  Capacity to deliver thirty (30) frames per second, per camera  Ability to produce a DVD-R copy of desired data APPLICATION PROCESS 1. Applications will be open and accepted until annual allocation of funding is exhausted. 2. When gGrants are will be awarded, and applicants will be notified via email correspondence. A Grant Agreement and if necessary a Lease Agreement for the exterior surveillance system must be approved and signed before commencement of any improvements. Please be sure to obtain all necessary Building Permits. 3. Upon a grant being awarded, a meeting will be organized established to go over the submitted improvement plan to discuss grant expectations and to address grant concerns. 4. The grant recipient or its contractor must commence the improvements within sixty (60) days after an approved Grant Agreement. The façade improvements must be completed within six (6) months after the issuance of the necessary Building Permits. 5. After façade improvements are complete, the grant funds will be disbursed for reimbursement to the applicant after all of the following pieces of information have been submitted: a. Proof of Final Inspection by the Building Official b. A Copy of the Final Invoice Received from the Contractor c. Before and After Photographs d. Proof of Payment to the Contractor (i.e. receipt, invoice, etc.) 33 Item 4. PAGE 3 OF 4 ADDITIONAL INFORMATION Required Application Materials:  A complete application sent to the attention of the Columbia Heights Economic Development Authority at following location: 590 40th Ave NE 3989 Central Ave NE, Columbia Heights, MN 55421  Clear and colored BEFORE photographs of building exterior building  A detailed improvement plan of new exterior façade improvements including design (sketches), color scheme, materials, project execution timeline, and overall budget for plan  Proof of good standing with the City  Submit 2 or more competitive proposal from licensed and bonded contractors. These proposals should give detailed information about the work to be done, the costs, and the project completion schedule. Any contractor that has submitted a competitive detailed estimate may be used. Contractors cannot be changed unless new proposals have been submitted and approved by the EDA. DESIGN GUIDELINES This These Design Guidelines outline the standards, which must be followed when renovating buildings using a Ffaçade Ggrant. These design guidelines take into consideration a building’s historic significance in determining what would be appropriate treatment and the overall vision for the City. Architectural styles are diverse, from historic commercial or Mediterranean Revival to 20th century modern. The vision for the district is a commercial area that highlights the historical nature of Columbia Heights that stays in touch with dynamic changes of the City and is always pedestrian-friendly. FAÇADE IMPROVEMENTS ENCOURAGED Windows & Doors:  Window and door openings shall comprise at least 30% of the area of the ground floor of the primary street façade  No tinted windows, only clear glass  Windows and doors free of clutter and obstructions, allowing clear views between the business and the street Historical Preservation:  Historic building repair or replacement should match current design of building  Stay traditional to the character of the building  Maintain similar color scheme Structure & Materials:  Use durable materials such as brick, stone, stucco, etc.  The base (ground floor) should appear visually distinct from the upper stories of the building Painting & Lighting:  Unpainted brick stay unpainted, previously painted masonry may be painted  Use of non-VOC paint encouraged  No more than two principal colors (neutral or muted colors like browns, grays, dark blue) may be used on a façade or individual storefront 34 Item 4. PAGE 4 OF 4  Bright or primary colors should be used only as accents  Spot or flood lighting to highlight the architectural detailing of a building should be inconspicuous and blend with the wall on which it is mounted  Lighting recessed doorways is encouraged  Energy saving light bulbs encouraged  Light fixtures that complement the entire façade Awnings/Signage:  Attach awnings to the building at or below the lower edge of the sign band  Awnings made of canvas and waterproof cloth designed to resist fading and tearing  Colors that coordinate with the building and area  Awning that’s proportional to the building  Awnings with thin profiles that do not obscure the building and storefront Signs:  Projecting/hanging signs: are double-sided and project from a building over the sidewalk  Wall signs: are attached to the primary façade and best viewed looking straight at the building from across the street  Are encouraged to be rectangular shaped  Type fonts and colors that are legible from a distance FAÇADE IMPROVEMENTS PROHIBITED  Covering, obscuring, or removing cornices, trim, or other architectural details  Alterations that have no historical basis for historical buildings  Covering brick or stone with vinyl, aluminum, or wood siding  Sandblasting brick, which removes a protective exterior  Reducing existing window size to accept standard residential window sizes  Replacing windows with wall surface, wood, metal, or other materials  Rigid materials like aluminum, vinyl, fiberglass, asphalt, or plastics that are sensitive to weather conditions  No lights should move, flash or make noise  Signs that are: blocking storefront windows, too large, small font making it difficult to read, using banners as permanent signage 35 Item 4. FIRE SUPPRESSION GRANT, PROGRAM COMMUNITY DEVELOPMENT – FIRE SUPPRESSION GRANT, PROGRAM REVISED AS OF: 2/6/2023 5/5/2025 PROGRAM OVERVIEW The Columbia Heights Economic Development Authority (the “EDA”) has created and now offers the Fire Suppression Grant Program (the “Grant Program”). As part of the City’s Business Retention and Expansion Strategy, the EDA has identified the need to bolster public safety and improve the commercial stock within the city. Setting out to encourage the revitalization, rehabilitation, and restoration of older, underutilized commercial spaces within the City of Columbia Heights (the “City”). Many of the older commercial structures throughout the city lack basic fire suppression systems or infrastructure for said systems. As new businesses seek to develop in the city, they are limited by code requirements for the instillation of fire suppression systems. These improvements are very costly making it difficult for small business to enter and utilize many of the City’s older and smaller commercial spaces. The Fire Suppression Grant, Program seeks to assist businesses and property owners in partially alleviating the costs of installing fire suppression systems. The Grant Program reimburses businesses, tenants, or property owners for eligible improvements up to fifty percent (50%) of the total project cost; for a maximum reimbursement of $30,000 $50,000. The applicant is reimbursed once the improvements are completed in accordance with program guidelines. The building or business owner must apply for, be approved for, and sign a grant agreement before doing the work in order to receive the grant. ELIGIBLE APPLICANTS  Applicants must be an owner or a tenant, with approval from the property owner(s), of a commercial or industrial property, or a 501(c)(3) organization in the City of Columbia Heights (the “City”) located along 37th Avenue NE, 37th Place NE, 39th Avenue NE, 40th Avenue NE, University Avenue NE, or Central Avenue NE between 37th and 53rd Avenue NE. Additionally, applicants can qualify if they are the building owner or operator of a licensed non-residential based childcare facility.  Applicants must be in good standing with the City, including but not limited to, legally operating with proper licensure; and current on property taxes, utility bills, and special assessments.  No new construction will be considered under this program.  The use of the building must be commercial, industrial, or mixed-use. ELIGIBLE IMPROVEMENTS Fire safety improvements must be completed by a licensed fire suppression contractor and comply with all permitting and inspection requirements:  Design & Engineering costs directly associated to the fire sprinkler system installation 36 Item 4. PAGE 2 OF 3  Construction and instaillation of a fire line from the main water line to the building  Fire sprinkler system equipment/installation  Associated fire alarm systems/installation in conjunction to a fire sprinkler system Please note: Labor costs of a contractor, including necessary design work, are eligible costs for reimbursement but cannot exceed 10% of the construction costs. REQUIRED APPLICATION DOCUMENTS Required Application Materials:  A complete application sent to the attention of the Columbia Heights Economic Development Authority at the following location: 590 40th Ave NE 3989 Central Ave NE, Columbia Heights, MN 55421  Proof of ownership or signed letter from the property owner acknowledging the scope of work and giving the renter permission to apply for the grant and to complete the proposed work.  A detailed scope of work  Electronic copy of drawings or designs  Submit 2 or more competitive proposals from licensed and bonded contractors. These proposals should give detailed information about the work to be done, the costs, and the project completion schedule. Any contractor that has submitted a competitive detailed estimate may be used. Contractors cannot be changed unless new proposals have been submitted and approved by the EDA.  Other supporting documents may be requested by staff or the EDA. APPLICATION PROCESS 1. Applications will be open and accepted until the initial allocation of funding is exhausted. 2. Upon the Receipt of a complete application Community Development staff will review the planned project with the Bbuilding Oofficial and Ffire Ddepartment prior to bringing it before the EDA. During the review staff may request more information or documents related to the project 3. After the EDA’s decision applicants will be notified via email correspondence. A Grant Agreement must be approved and signed before commencement of any improvements. 4. Once the Grant Agreement is executed, the Recipient of the grant, may begin the project improvements,. Tthe Grantee is responsible for obtaining all necessary permits and inspections throughout the process. 5. The grant recipient or its contractor must commence the improvements within sixty (60) days after an executed Grant Agreement. The project specified in the agreement must be completed within ten (10) months after the signing of the agreement. 6. Once the project is complete, the grant funds will be disbursed for reimbursement to the applicant after all the following pieces of information have been submitted: a. Proof of Final Inspection by the Building Official and Ffire Ddepartment b. A Copy of the Final Invoice Received from the Contractor c. Before and After Photographs d. Proof of Payment to the Licensed Fire Suppression Contractor (i.e. receipt, invoice, etc.) e. Copies of all applicable permits 37 Item 4. PAGE 3 OF 3 ADDITIONAL REQUIREMENTS  Grants will only be awarded for projects that lead to the installation of a complete fully functioning fire suppression system. Installation of a main line attachment without an immediate plan for the installation of a fire suppression system is also prohibited.  If costs exceed the original estimates or exceed the maximum of the program, the property owner or tenant will be responsible for the full amount of the excess. The EDA cannot reimburse more than the total amount specified in the Agreement.  Any work commenced prior to the signing of the GrantRANT Agreement will not be eligible for reimbursement funding. 38 Item 4. ECONOMIC DEVELOPMENT AUTHORITY AGENDA SECTION BUSINESS ITEMS MEETING DATE 05/05/2025 ITEM: Discussion of Redevelopment Opportunities DEPARTMENT: Community Development BY/DATE: Mitchell Forney, 5-1-25 BACKGROUND: 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. 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 redevelop 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. 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, they 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. 39 Item 5. ECONOMIC DEVELOPMENT AUTHORITY AGENDA SECTION BUSINESS ITEMS MEETING DATE 05/05/2025 ITEM: Gap Funding Request 4243 5th St NE DEPARTMENT: Community Development BY/DATE: Mitchell Forney, 5-1-25 BACKGROUND: 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. In response, 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 th at 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. 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, wh ich could limit their capacity for future work. 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 loaned 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 time using future TIF revenue. 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 $140,000 would remain in the C-8 District fund, enough to support potential purchase-rehab projects in 2025 or 2026. As additional repayments are made into the C -8 District, the City could also consider supporting future tear-down and rebuild projects. 40 Item 6. Page 2 At this time, staff is seeking the EDA’s general guidance on the proposal. If the EDA is supportive, staff will return at the next meeting with the appropriate agreements and documentation to execute the grant and facilitate the transfer of funds. ATTACHMENT(S): 1. 4243 5th St NE Pro Forma 41 Item 6. Project Budget: Total Development Costs FY 2025 Address: 4243 5th St NE Description: Owner-Direct Purchase ACQUISITION COSTS Purchase Price 1.00$ Closing Costs - Acquisition 1,010.00$ Total Acquisition Costs 1,011.00$ CONSTRUCTION COSTS Hard Construction Costs 334,000.00$ General Contractor Fee 14,500.00$ Hard Construction Costs - In Kind Labor 10,000.00$ Hard Construction Costs - In Kind Materials 2,500.00$ Total Construction Costs 361,000.00$ SOFT COSTS Design - Architect Fee 2,000.00$ Soil Tests 3,300.00$ Survey 3,700.00$ Radon/Asbestos/Lead Tests -$ ER Tests -$ Green Certification Internal Marketing 6,000.00$ Seller's Closing Costs 1,250.00$ Appraisal Fee 400.00$ Holding Costs (maintenance, utilities)-$ Property Insurance 5,263.00$ Real Estate Taxes 1,700.00$ Title and Recording Fees Construction Financing (Interest during Construction)1,300.00$ TCHFH Lending Fee 3,600.00$ Land Trust Admin Fee Realtor Fee Total Soft Costs 28,513.00$ Developer’s Fee 19,526.20$ TOTAL DEVELOPMENT COSTS 410,050.20$ Sale Price 320,000.00$ Project Value Gap (TDC less Sales Price)90,050.20$ Development Gap Sources Columbia Heights New Construction 42 Item 6. TCHFH Private Fundraising 90,050.20$ Source -$ Total Development Sources 90,050.20$ Affordability Gap Sources Anoka HOME -$ Other public funding options?-$ Private Donations 30,000.00$ MHFA - Affordability Gap 40,000.00$ Total Affordability Sources 70,000.00$ TCHFH First Mortgage 250,000.00$ First Mortgage + Affordability Gap Sources 410,050.20$ 43 Item 6.