Loading...
HomeMy WebLinkAbout03-03-2025 EDA Packet ECONOMIC DEVELOPMENT AUTHORITY City Hall—Shared Vision Room, 3989 Central Ave NE Monday, March 03, 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 278 440 248 950 and passcode AW9Zv98t. 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 February 3rd, 2025, Regular EDA Meeting Minutes. (pg. 3) 2. Resolution 2025-06 to Approve the Financial Reports and Payment of the Bills for January 2025. (pg. 13) MOTION: Move to approve the Consent Agenda as presented. BUSINESS ITEMS 3. ACRED Presentation. (pg. 20) 4. Commitment of Matching Funds for MHFA Local Housing Trust Fund Grants Program. (pg. 21) MOTION: Move to waive the reading of Resolution 2025-07, there being ample copies available to the public. MOTION: Move to adopt Resolution 2025-07, a resolution of the Columbia Heights Economic Development Authority approving the Local Housing Trust Fund match commitment. 5. 4647 Polk Deed Restriction Discussion. (pg. 24) BUSINESS UPDATES ADJOURNMENT 1 City of Columbia Heights AGENDA March 03, 2025 Economic Development Authority Page 2 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, February 03, 2025 5:00 PM MINUTES The meeting was called to order at 5:00 pm by President James. CALL TO ORDER/ROLL CALL Members present: Connie Buesgens; Laurel Deneen; Rachel James; Amada Márquez-Simula; Marlaine Szurek Members absent: Lamin Dibba, Justice Spriggs Staff Present: Mitchell Forney, Community Development Director; Aaron Chirpich, City Manager; Sarah LaVoie, Administrative Assistant; Emilie Voight, Community Development Coordinator PLEDGE OF ALLEGIANCE CONSENT AGENDA 1. Approve the minutes of the regular EDA Meeting of January 6, 2025. 2. Approve financial reports and payment of bills for December 2024 – Resolution No. 2025-04. Motion by Deneen, seconded by Buesgens, to approve the Consent Agenda as presented. All ayes of present. MOTION PASSED. RESOLUTION NO. 2025-04 A RESOLUTION OF THE ECONOMIC DEVELOPMENT AUTHORITY OF COLUMBIA HEIGHTS, MINNESOTA, APPROVING THE FINANCIAL STATEMENTS FOR THE MONTH OF DECEMBER 2024 AND THE PAYMENT OF THE BILLS FOR THE MONTH OF DECEMBER 2024. WHEREAS, the Columbia Heights Economic Development Authority (the “EDA”) is required by Minnesota Statutes Section 469.096, Subd. 9, to prepare a detailed financial statement which shows all receipts and disbursements, their nature, the money on hand, the purposes to which the money on hand is to be applied, the EDA's credits and assets and its outstanding liabilities; and WHEREAS, said Statute also requires the EDA to examine the statement and treasurer's vouchers or bills and if correct, to approve them by resolution and enter the resolution in its records; and WHEREAS, the financial statements for the month of December 2024 have been reviewed by the EDA Commission; and WHEREAS, the EDA has examined the financial statements and finds them to be acceptable as to both form and accuracy; and 3 Item 1. City of Columbia Heights MINUTES February 03, 2025 EDA Meeting Page 2 WHEREAS, the EDA Commission has other means to verify the intent of Section 469.096, Subd. 9, including but not limited to Comprehensive Annual Financial Reports, Annual City approved Budgets, Audits and similar documentation; and WHEREAS, financial statements are held by the City’s Finance Department in a method outlined by the State of Minnesota’s Records Retention Schedule, NOW, THEREFORE BE IT RESOLVED by the Board of Commissioners of the Columbia Heights Economic Development Authority that it has examined the referenced financial statements including the check history, and they are found to be correct, as to form and content; and BE IT FURTHER RESOLVED the financial statements are acknowledged and received and the check history as presented in writing is approved for payment out of proper funds; and BE IT FURTHER RESOLVED this resolution is made as part of the permanent records of the Columbia Heights Economic Development Authority. ORDER OF ECONOMIC DEVELOPMENT AUTHORITY Passed this 3rd of February Offered by: Laurel Deneen Seconded by: Connie Buesgens Roll Call: All ayes of present. MOTION PASSED. President Attest: Secretary BUSINESS ITEMS 3. 2025 EDA Goal Setting: Session II Voight reported at the EDA’s January meeting, staff led the Commission in a two-part interactive goal-setting exercise. During the first part of the activity, commissioners and a staff representative each suggested three or four ideas – initiatives, strategies, or topics – that they would like the EDA to focus on in 2025. In the second part of the exercise, each Commissioner cast three votes to identify their priorities from the collected list of suggestions. Following the meeting, staff compiled the full list of ideas and tallied the votes. Voight explained through this activity, the EDA defined and prioritized four focus areas for 2025: 1. Central Ave (revitalization, placemaking, and quality of life) 2. Business (support, outreach, and grants) (tie) 2. Neighborhood/Housing (revitalization) (tie) 4 Item 1. City of Columbia Heights MINUTES February 03, 2025 EDA Meeting Page 3 4. “Big Sites” (redevelopment) Voight mentioned that based on the focus areas defined by the Commission and on the specific strategy and program suggestions Commissioners made during the activity, staff have prepared a list of draft 2025 goals for the EDA’s consideration. The goals listed below will inform the creation and execution of the work plan for Community Development staff. In doing so, they will help match EDA priorities with available resources. Certain goals are specific, while others are more general; while developing this list, staff worked to capture the ideas put forth by the Commission while leaving space for additional opportunities. 1. Central Ave a. In alignment with City Council citywide goals for public art, develop and launch a Central Business District public art program. b. Facilitate placemaking along and near Central Avenue, taking into consideration existing program-based opportunities and upcoming MnDOT-led street redevelopment. 2. Business a. Create initiatives to increase the City’s interactions with and promotion of the local business community. b. Update City grant programs to ensure they provide beneficial and valuable support to businesses. 2. Neighborhood/Housing a. Review, revise, and continue to administer the EDA’s Commercial Revitalization Program to address substandard and non-conforming housing stock. b. Establish and implement an allocation plan for the City’s Affordable Housing Trust Fund. 4. “Big Sites” a. Advance redevelopment of EDA-owned properties. b. Promote and champion opportunities for major local redevelopment sites. i. Marketing ii. Outreach to developers iii. Track progress in 2025 Voight stated it is important to note that staff will address work plan items in order of the EDA’s chosen priorities as much as possible, but some initiatives may be shifted due to external timelines (for example, funding distribution dates). Staff will also take advantage of opportunities to build momentum by completing projects that rely solely on internal processes, and that can have an immediate impact on the community (for example, revisions to existing grant programs). In addition to guiding staff and the Commission in their daily work, this shared framework will provide a way of looking back at the end of the year, assessing progress, and evaluating priorities for the future. Questions/Comments from Members: Buesgens suggested adding the Central Avenue updated design guidelines to the goals since there could be some roadblocks with the ideas the EDA may have if the guidelines are not included. James mentioned that it was on the Planning Commission's agenda to update the 2022 design 5 Item 1. City of Columbia Heights MINUTES February 03, 2025 EDA Meeting Page 4 guidelines. She mentioned that streets look more attractive when businesses are able to have the freedom with guidance to personalize their spaces. Deneen added that it would be good timing since the 2050 Comprehensive Plan will be developed. Buesgens asked the commissioners if they agreed that the Central Avenue design guidelines should be included. James mentioned that the design guidelines make sense to come from the Planning Commission to the Council. Forney mentioned that the design guidelines are more of a planning document that is required of businesses. The Planning Commission will be working on the design guidelines during the Planning Commission meeting. James mentioned that the pedestrian alley behind the ramp could be a site for art or revitalization and included in the Central Avenue goal. She wondered if the goal would be included under item A or B for the Central Avenue goals. Voight replied that it could fit under City Grant Programs under the Business category. If it is in reference to a specific space then it could be considered under the Central Avenue goal. Márquez-Simula wondered if the parking lot behind the County building could be included in the place-making since there could be a pollinator garden or a bench included. Voight replied that the idea has been recorded and will make sure to refer back to it. James read a comment that Spriggs passed on that said “Local art has been a goal of ours for many years and he is super excited to see the creative ideas and strong investment in the item.” Forney noted that the Community Development Department will be working on community art. He mentioned that they want to identify the EDA’s role in it and the business-centric goals that go along with it. James asked if it would be a goal to discuss the fire suppression and façade grants in the future. Voight agreed that it would be. Buesgens added a suggestion of finding a business that is good at designing facades and adding funds to help pay for signs. James asked to clarify if “review and revise and continue to administer the EDA’s Commercial Revitalization Program to address substandard and non-conforming housing stock” under the Neighborhood Goal/Housing goal including expanding the program. Forney replied that it would include a discussion to determine if the program should be expanded or if funds should be used in partnership with Habitat for Humanity or other neighborhood stabilization programs. Buesgens suggested including a timeline for when the EDA would discuss expanding it for the whole block. The EDA could pick one or two blocks for redevelopment in the future and initiate the plan to begin purchasing the homes on the other side of the block. She added that the EDA needs to start discussing which blocks make sense. James read a note from Spriggs that said “I would be in favor of expanding the commercial revitalization program beyond just the Central Avenue corridor to take advantage of good locations that come up as prime redevelopment.” 6 Item 1. City of Columbia Heights MINUTES February 03, 2025 EDA Meeting Page 5 Buesgens asked if the EDA is going to consider purchasing a rental property that could be brought to the Council to vote since there are relocation costs. She mentioned years ago the Council had an opportunity to purchase a large portion of land and declined to do it due to relocation costs. She added that the relocation costs were pennies compared to what the City could have made for redeveloping the land. Forney mentioned that it is not policy to bring it to the Council and that staff determine if relocation costs are too high before bringing it to the EDA. Forney mentioned that there is a lot behind Taco Bell that would make the most sense to include housing like a duplex since Taco Bell will not be moving anytime soon and it would not make sense for the City to redevelop. Chirpich added that the lot is currently zoned for one to two families. Buesgens noted that the United States received a lot of lumber from Canada and wondered if developers were worried about being able to finish projects due to the tariffs. Forney replied that expectations are that the prices for building will increase due to rebuilding after the Los Angeles fires and the tariffs. James mentioned her appreciation for tracking the progress under “promote and champion opportunities for major local redevelopment sites” in the fourth goal. Voight noted that Spriggs mentioned the idea of a potential small business loan program. 4. Affordable Housing Trust Fund Sources and Uses Planning Voight reported in 2024, the City Council designated the EDA as the sole administrator of the City’s Affordable Housing Trust Fund. Currently, the Affordable Housing Trust Fund contains $142,878.18 from the 2024 local affordable housing sales tax issuance. Establishing and implementing an allocation plan for the Affordable Housing Trust Fund is one of the EDA’s 2025 goals. Voight noted that based on the EDA’s neighborhood and housing revitalization goals, staff have developed a recommendation to use existing and anticipated Trust Fund resources while pursuing additional funding streams. This recommendation includes some actions to take now and others to take later this year. Voight stated first, the sales tax Trust Fund resources would be used to develop and launch a program to support Naturally Occurring Affordable Housing (NOAHs) in the city of Columbia Heights. Since local affordable housing sales tax issuance occurs annually, a NOAH program established using this money would already have a reliable, regular financial foundation. Voight mentioned in addition, in order to diversify the Trust Fund’s sources and uses, staff would also pursue two 2025 grant opportunities through the Minnesota Housing Finance Agency (MHFA), as described below: the Community Stabilization Program and the Local Housing Trust Fund Grants Program.  MHFA’s new Community Stabilization Program is specifically geared toward preserving NOAHs. Although little information has been published about this grant program, it is expected to launch sometime in 2025. A grant received through this program could be used 7 Item 1. City of Columbia Heights MINUTES February 03, 2025 EDA Meeting Page 6 to bolster the new NOAH initiative’s finances. Upon announcement of the program’s opening date and confirmation that its guidelines would allow funding distribution through the Trust Fund, staff would bring more detailed information to the EDA for discussion, in preparation for an application  MHFA’s new Local Housing Trust Fund Grants Program is currently accepting notices of intent to apply for 2025 grant funding. Awards received through this program would funnel directly into the Trust Fund and could be used for a broad range of actions related to the preservation, development, and creation of new affordable housing. For example, these funds could contribute to funding in lieu of TIF, to purchasing and redeveloping substandard and non-conforming single-family houses, or to expanding partnerships with agencies like Habitat for Humanity. These funds must be used within five years and must only be used for households at or below 115% of the State median income. Voight stated the Community Stabilization Program is not yet open for applications. However, the EDA could already move forward with an application for the Local Housing Trust Fund Grants Program. One key element of the Local Housing Trust Fund Grants Program is that it requires a match based on new public revenue. MHFA defines new public revenue as, “local income that is committed to the Local Housing Trust Fund on or after June 29th, 2021” (MHFA program guide). Grantees may be eligible to receive matching funds up to a total MHFA contribution of $225,000. New public revenue in an amount up to $150,000 may be matched with grant funds at 100%. Additional new public revenue of more than $150,000 and up to $300,000 may be matched with grant funds at 50%. For example, a $300K City contribution could earn a $150K match, plus up to $75K additional match, for a total MHFA contribution of $225K and a total grant budget of $525K. Voight noted staff would recommend using existing EDA financial reserves in Fund 408 for the project match dollars. The Fund 408 reserve currently holds $510,000. In order to apply for Local Housing Trust Fund Grants Program funding, the City must complete and submit an Intent to Apply by 5:00 p.m. on February 11th. Once the Intent to Apply has been submitted, MHFA will invite potential applicants to technical assistance sessions to learn more about the application process. The Request for Proposals application will then open on Wednesday, February 12th, and close on March 19th. Voight mentioned at this time, staff ask that the EDA provide feedback on this general proposal of Affordable Housing Trust Fund sources and uses. Furthermore, staff ask that the EDA decide whether staff should proceed with an application for the MHFA Local Housing Trust Fund Grants Program. If in favor of an application, staff would ask that the EDA agree upon the funding source (for example, Fund 408) and estimated dollar amount (City match) to list on the Intent to Apply form. Based on the EDA’s direction today, staff would also proceed with any other grant administration actions necessary between now and the March EDA meeting. Questions/Comments from Members: Buesgens stated she was in favor of applying for both grants as long as the EDA was not losing money. She asked if NOAHs applied to single families and multi-families. Voight replied that the 8 Item 1. City of Columbia Heights MINUTES February 03, 2025 EDA Meeting Page 7 information staff have received this year is that it is opening this year. There is a certain amount of money that has been set aside with the State legislator for the MHFA to use towards NOAHs. She added that she is unaware if there is a restriction on the number of units. She noted staff would look into it for the Community Stabilization Program. James mentioned she was in favor of maximizing the matching funds if there is money in the redevelopment 408 fund. She asked if the funds could be used for loans for homeowners who were trying to maintain NOAH. Forney replied that the idea had been discussed and staff decided that the City did not have enough funding to do two programs but could branch out when there is more funding available. He asked what program the EDA would like to prioritize for the year. Buesgens replied that she would like to focus on NOAHs. There are NOAHs in the City that are 60 years old and are in need of help. She mentioned in California many mom-and-pop multi-family rentals were bought out by investors. The investors increased the rent and many people were left on the street because they could not afford the rent. She expressed her fear of investors doing the same thing to the City. She suggested finding ways that the City could incentivize landlords to fix up rental properties in order to keep the rents affordable. James asked if the EDA would like to set up a NOAHs program. The EDA agreed that they would like to set up a program. James asked the EDA if they would want to proceed with an application for the local housing trust fund grants program. The EDA agreed that they would like to proceed. James asked the EDA where they would like to take the funds from and how much to put into the program. Forney reviewed the staff’s recommendation for using the funds in the 408 fund. The money would not come from the current EDA budget or an increase in levy taxes. It would be funds that the EDA had levied for in the past that have not been spent yet. There are currently $1,510,000 in the EDA fund 408. There is a $1,000,000 loan from the EDA to the City for the purchase of the JBS lot. Once the Public Works development gets picked up, the EDA will receive that loan money back. Therefore, the EDA currently does not have access to the money so the staff recommends to dip into the reserve of the 408 fund to pay for the program. The EDA agreed with the staff’s recommendation. James asked the EDA what dollar amount they would like to put into the fund. She mentioned that Spriggs suggested using $300,000 to end with a total of $525,000. The EDA agreed. BUSINESS UPDATES Voight mentioned Business of the Year applications are opened. The City has received one application so far. The closing date for applications is March 31 st. Members of the EDA and elected officials may not nominate businesses but they can promote the program. Voight noted that the City has been selected to receive a SPAAR grant from the Saint Paul Area Association of Realtors. It was an application that staff submitted a few months ago. A grant amount of $1,500 came from the local chapter. She added that they will also be sending an application for a national grant which could be up to $7,000. 9 Item 1. City of Columbia Heights MINUTES February 03, 2025 EDA Meeting Page 8 Forney stated the new Community and Economic Development intern started last week and will be working on the work plan based on the goals that were developed during the meeting. He added that the intern hopes to attend a few EDA meetings. He added that staff received an email from the EDA’s attorney stating that the attorneys the City has been working with are going to be shifting to a different organization. Staff will see how that affects the EDA and will bring back their findings. ADJOURNMENT Motion by Buesgens, seconded by Márquez-Simula, to adjourn the meeting at 5:49 pm. All ayes. MOTION PASSED. Respectfully submitted, _______________________________ Sarah LaVoie, Recording Secretary 10 Item 1. 1 Emilie Voight From:Justice Spriggs Sent:Sunday, February 2, 2025 11:13 PM To:Emilie Voight; Mitchell Forney Cc:Rachel James; Aaron Chirpich Subject:2/3/2025 HRA and EDA Meetings Community Development Team and EDA/HRA President, Wanted to share my thoughts on the upcoming HRA and EDA meetings since I will be unable to attend this month. HRA Meeting - Open to having an officer position if appointed, but do not feel strongly about it. EDA Meeting - Goal Setting: All of these ideas are extremely exciting and important! Out of all the ones listed, a few jump out to me the most - public art, City grant/loan programs, and Commercial Revitalization Program. I also think the Affordable Housing Trust Fund is a major one but that will be talked about more below. Public art has been a goal of many of ours for years, and I am super excited to see the creative ideas that will come of a strong investment in this! For the Commercial Revitalization Program, I am in favor of extending this beyond the Central Ave corridor to continue taking advantages of good locations that would be prime for redevelopment. I am not sure if this is something we have explicitly talked about as a Council, but I really do like the idea of having some sort of "Small Business Loan," whether that be this year or in the future. It came up in discussion I had with Mitch and Emily on Friday, and I think it could be a great program for the EDA - it would allow for businesses to have more flexibility on how to use the funds, provide them the money up front instead of other programs that may provide reimbursement (but the business would need to have the capitol in the first place to make the purchase, which could be a challenge), and the EDA would also recoup a bit of the cost from the low interest rate attached. - Affordable Housing Trust Fund Sources and Use of Planning: So many ways to go about this to start! And so many great ideas brought by staff and Council. After reading the proposal in the packed by staff, I am in full support of their idea to create a NOAH program as the major first step and then also apply for the two grants discussed. I am also in favor of applying with the maximum amount to the Trust Fund Grants Program to see if we could end up with a pot of money of $525,000 to use broadly. In my opinion, this would a great opportunity for the EDA to attack the affordable housing crisis in Heights, and I love the fact that this portion of funds (if awarded) would be available for five years. 11 Item 1. 2 Let me know if there are any questions! Justice Justice Spriggs, M.D. (he/him) I Council Member - City of Columbia Heights 3989 Central Ave NE, Columbia Heights, MN, 55421 Email: jspriggs@columbiaheightsmn.gov Direct: 763-706-3617 I Main: 763-706-3600 http://columbiaheightsmn.gov *Please note: Due to my schedule and family/work balance, I often email outside of typical business hours. Please do not feel pressured to respond outside of your own working pattern. Sign up for CodeRED Alerts for the City of Columbia Heights here. Follow the City of Columbia Heights on Social Media! Facebook Twitter Instagram YouTube Disclaimer: Information in this message or attachment may be government data and thereby subject to the Minnesota Government Data Practices Act; may be subject to attorney-client or work product privilege; may be confidential, privileged, proprietary, or otherwise protected. The unauthorized review, copying, retransmission, or other use or disclosure of the information is strictly prohibited. If you are not the intended recipient of this message, please immediately notify the sender of the transmission error and then promptly delete this message from your computer system. 12 Item 1. Resolution 2025-06 RESOLUTION NO. 2025-06 A RESOLUTION OF THE ECONOMIC DEVELOPMENT AUTHORITY OF COLUMBIA HEIGHTS, MINNESOTA, APPROVING THE FINANCIAL STATEMENTS FOR THE MONTH OF JANUARY 2025 AND THE PAYMENT OF THE BILLS FOR THE MONTH OF JANUARY 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 January 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 3rd day of March 2025 Offered by: Seconded by: Roll Call: President Attest: Secretary 13 Item 2. AmountInvoiceInvoice DateVendorInvoice Line DescGL Number INVOICE GL DISTRIBUTION REPORT FOR CITY OF COLUMBIA HEIGHTS 1/2Page:02/19/2025 10:42 AM User: suems DB: Columbia Heights EXP CHECK RUN DATES 01/01/2025 - 01/31/2025 BOTH JOURNALIZED AND UNJOURNALIZED PAID Check 1901 384,272.44 12312412/31/24COLLIERS FUNDING LLC1ST HALF DISTRICT BB2 2025392.7000.44600 384,272.44 Total For Check 1901 Check 201513 62.42 1143710/22/24BAA PRINTING SOLUTIONS INCBUSINESS CARDS, NAME BADGE E.VOIGHT204.6314.42171 62.42 Total For Check 201513 Check 201533 59.26 IN469781011/19/24INNOVATIVE OFFICE SOLUTIONS LLCCALENDARS204.6314.42000 59.26 Total For Check 201533 Check 201712 475.00 9280912/11/24BOND TRUST SERVICES CORP2016A FISCAL AGENT FEES372.7000.46200 475.00 Total For Check 201712 Check 201755 188.00 M2971412/12/24TIMESAVER OFF SITE SECRETR INCEDA MEETING 120224204.6314.43050 188.00 Total For Check 201755 Check 201784 23.97 23127298601/15/25COMCAST011525 934571297 COMM DEV ADMIN (2.3%)204.6314.43250 23.97 Total For Check 201784 Check 201837 48.82 99286114612/26/24POPP.COM INC122624 - 10013121 PHONE COMMDEV ADMIN204.6314.43210 13.85 99286216312/31/24POPP.COM INC123124 -10010429 COM DEV ADMINISTRATION204.6314.43210 62.67 Total For Check 201837 Check 201841 5,000.00 2201202501/22/25QUINCY RAVEN COMMERCIAL PROPFACADE IMPROVEMENT 4030 CENTRAL AVE NE408.6411.44600 5,000.00 Total For Check 201841 Check 201859 864.71 115423047801/08/25XCEL ENERGY (N S P)ELECTRIC228.6317.43810 864.71 Total For Check 201859 14 Item 2. AmountInvoiceInvoice DateVendorInvoice Line DescGL Number INVOICE GL DISTRIBUTION REPORT FOR CITY OF COLUMBIA HEIGHTS 2/2Page:02/19/2025 10:42 AM User: suems DB: Columbia Heights EXP CHECK RUN DATES 01/01/2025 - 01/31/2025 BOTH JOURNALIZED AND UNJOURNALIZED PAID 396.32 Fund 204 EDA ADMINISTRATION 864.71 Fund 228 DOWNTOWN PARKING 475.00 Fund 372 HUSET PARK AREA TIF (T6) 384,272.44 Fund 392 TIF BB2 ALATUS 40TH AV 5,000.00 Fund 408 EDA REDEVELOPMENT PROJECT FD Fund Totals: 5,000.00 FACADE IMPROVEMENT 4030 CENTRAL AVE NE408.6411.44600 384,272.44 1ST HALF DISTRICT BB2 2025392.7000.44600 475.00 2016A FISCAL AGENT FEES372.7000.46200 864.71 ELECTRIC228.6317.43810 23.97 011525 934571297 COMM DEV ADMIN (2.3%)204.6314.43250 62.67 122624 - 10013121 PHONE COMMDEV ADMIN204.6314.43210 188.00 EDA MEETING 120224204.6314.43050 62.42 BUSINESS CARDS, NAME BADGE E.VOIGHT204.6314.42171 59.26 CALENDARS204.6314.42000 --- TOTALS BY GL DISTRIBUTION --- 391,008.47 Total For All Funds: 15 Item 2. REVENUE AND EXPENDITURE REPORT FOR CITY OF COLUMBIA HEIGHTS 1/4Page:02/19/2025 10:41 AM User: suems DB: Columbia Heights PERIOD ENDING 01/31/2025 % BDGT USED UNENCUMBERED BALANCE YTD BALANCE 01/31/2025 ACTIVITY FOR MONTH 01/31/25 ENCUMBERED YEAR-TO-DATE 2025 AMENDED BUDGETDESCRIPTIONGL NUMBER Fund 204 - EDA ADMINISTRATION Expenditures Dept 6314 - ECONOMIC DEVELOPMENT AUTH PERSONNEL SERVICES 100.00 (16,253.93)16,253.93 16,253.93 0.00 0.00 REGULAR EMPLOYEES204.6314.41010 100.00 (1,130.96)1,130.96 1,130.96 0.00 0.00 P.E.R.A. CONTRIBUTION204.6314.41210 100.00 (1,224.37)1,224.37 1,224.37 0.00 0.00 F.I.C.A. CONTRIBUTION204.6314.41220 100.00 (1,366.23)1,366.23 1,366.23 0.00 0.00 INSURANCE204.6314.41300 100.00 (56.88)56.88 56.88 0.00 0.00 WORKERS COMP INSURANCE PREM204.6314.41510 100.00 (20,032.37)20,032.37 20,032.37 0.00 0.00 PERSONNEL SERVICES OTHER SERVICES & CHARGES 100.00 (1,755.50)1,380.50 1,380.50 375.00 0.00 EXPERT & PROFESSIONAL SERV.204.6314.43050 100.00 (530.78)51.95 51.95 478.83 0.00 TELEPHONE204.6314.43210 100.00 (30.27)30.27 30.27 0.00 0.00 OTHER TELECOMMUNICATIONS204.6314.43250 100.00 (291.67)291.67 291.67 0.00 0.00 PROP & LIAB INSURANCE204.6314.43600 100.00 0.00 506.28 506.28 (506.28)0.00 SOFTWARE & SOFTWARE SUBSCRIPTIONS204.6314.44030 100.00 (791.67)791.67 791.67 0.00 0.00 INFORMATION SYS:INTERNAL SVC204.6314.44040 100.00 (3,399.89)3,052.34 3,052.34 347.55 0.00 OTHER SERVICES & CHARGES CONTINGENCIES & TRANSFERS 100.00 (1,833.33)1,833.33 1,833.33 0.00 0.00 OPER. TRANSFER OUT - LABOR204.6314.47100 100.00 (1,833.33)1,833.33 1,833.33 0.00 0.00 CONTINGENCIES & TRANSFERS 100.00 (25,265.59)24,918.04 24,918.04 347.55 0.00 Total Dept 6314 - ECONOMIC DEVELOPMENT AUTH 100.00 (25,265.59)24,918.04 24,918.04 347.55 0.00 TOTAL EXPENDITURES 100.00 25,265.59 (24,918.04)(24,918.04)(347.55)0.00 NET OF REVENUES & EXPENDITURES 100.00 (25,265.59)24,918.04 24,918.04 347.55 0.00 TOTAL EXPENDITURES 0.00 0.00 0.00 0.00 0.00 0.00 TOTAL REVENUES Fund 204 - EDA ADMINISTRATION: 16 Item 2. REVENUE AND EXPENDITURE REPORT FOR CITY OF COLUMBIA HEIGHTS 2/4Page:02/19/2025 10:41 AM User: suems DB: Columbia Heights PERIOD ENDING 01/31/2025 % BDGT USED UNENCUMBERED BALANCE YTD BALANCE 01/31/2025 ACTIVITY FOR MONTH 01/31/25 ENCUMBERED YEAR-TO-DATE 2025 AMENDED BUDGETDESCRIPTIONGL NUMBER Fund 228 - DOWNTOWN PARKING Revenues Dept 0000 - NON-DEPARTMENTAL TRANSFERS & NON-REV RECEIPTS 100.00 (4,833.33)4,833.33 4,833.33 0.00 0.00 TRANSFER IN-SPECIAL PROJ REV228.0000.39247 100.00 (4,833.33)4,833.33 4,833.33 0.00 0.00 TRANSFERS & NON-REV RECEIPTS 100.00 (4,833.33)4,833.33 4,833.33 0.00 0.00 Total Dept 0000 - NON-DEPARTMENTAL 100.00 (4,833.33)4,833.33 4,833.33 0.00 0.00 TOTAL REVENUES Expenditures Dept 6317 - DOWNTOWN PARKING OTHER SERVICES & CHARGES 100.00 (308.33)308.33 308.33 0.00 0.00 PROP & LIAB INSURANCE228.6317.43600 100.00 (260.07)260.07 260.07 0.00 0.00 UTILITY SERVICES228.6317.43800 100.00 (4,149.55)3,535.25 3,535.25 614.30 0.00 REPAIR & MAINT. SERVICES228.6317.44000 100.00 (4,717.95)4,103.65 4,103.65 614.30 0.00 OTHER SERVICES & CHARGES 100.00 (4,717.95)4,103.65 4,103.65 614.30 0.00 Total Dept 6317 - DOWNTOWN PARKING 100.00 (4,717.95)4,103.65 4,103.65 614.30 0.00 TOTAL EXPENDITURES 100.00 (115.38)729.68 729.68 (614.30)0.00 NET OF REVENUES & EXPENDITURES 100.00 (4,717.95)4,103.65 4,103.65 614.30 0.00 TOTAL EXPENDITURES 100.00 (4,833.33)4,833.33 4,833.33 0.00 0.00 TOTAL REVENUES Fund 228 - DOWNTOWN PARKING: 17 Item 2. REVENUE AND EXPENDITURE REPORT FOR CITY OF COLUMBIA HEIGHTS 3/4Page:02/19/2025 10:41 AM User: suems DB: Columbia Heights PERIOD ENDING 01/31/2025 % BDGT USED UNENCUMBERED BALANCE YTD BALANCE 01/31/2025 ACTIVITY FOR MONTH 01/31/25 ENCUMBERED YEAR-TO-DATE 2025 AMENDED BUDGETDESCRIPTIONGL NUMBER Fund 372 - HUSET PARK AREA TIF (T6) Expenditures Dept 7000 - BONDS CAPITAL OUTLAY 100.00 (1,675.00)475.00 475.00 1,200.00 0.00 FISCAL AGENT CHARGES372.7000.46200 100.00 (1,675.00)475.00 475.00 1,200.00 0.00 CAPITAL OUTLAY 100.00 (1,675.00)475.00 475.00 1,200.00 0.00 Total Dept 7000 - BONDS 100.00 (1,675.00)475.00 475.00 1,200.00 0.00 TOTAL EXPENDITURES 100.00 1,675.00 (475.00)(475.00)(1,200.00)0.00 NET OF REVENUES & EXPENDITURES 100.00 (1,675.00)475.00 475.00 1,200.00 0.00 TOTAL EXPENDITURES 0.00 0.00 0.00 0.00 0.00 0.00 TOTAL REVENUES Fund 372 - HUSET PARK AREA TIF (T6): 18 Item 2. REVENUE AND EXPENDITURE REPORT FOR CITY OF COLUMBIA HEIGHTS 4/4Page:02/19/2025 10:41 AM User: suems DB: Columbia Heights PERIOD ENDING 01/31/2025 % BDGT USED UNENCUMBERED BALANCE YTD BALANCE 01/31/2025 ACTIVITY FOR MONTH 01/31/25 ENCUMBERED YEAR-TO-DATE 2025 AMENDED BUDGETDESCRIPTIONGL NUMBER Fund 408 - EDA REDEVELOPMENT PROJECT FD Expenditures Dept 6411 - FACADE IMPROVEMENT GRANT OTHER SERVICES & CHARGES 100.00 (9,625.00)9,625.00 9,625.00 0.00 0.00 LOANS & GRANTS408.6411.44600 100.00 (9,625.00)9,625.00 9,625.00 0.00 0.00 OTHER SERVICES & CHARGES 100.00 (9,625.00)9,625.00 9,625.00 0.00 0.00 Total Dept 6411 - FACADE IMPROVEMENT GRANT 100.00 (9,625.00)9,625.00 9,625.00 0.00 0.00 TOTAL EXPENDITURES 100.00 9,625.00 (9,625.00)(9,625.00)0.00 0.00 NET OF REVENUES & EXPENDITURES 100.00 (9,625.00)9,625.00 9,625.00 0.00 0.00 TOTAL EXPENDITURES 0.00 0.00 0.00 0.00 0.00 0.00 TOTAL REVENUES Fund 408 - EDA REDEVELOPMENT PROJECT FD: 100.00 36,450.21 (34,288.36)(34,288.36)(2,161.85)0.00 NET OF REVENUES & EXPENDITURES 100.00 (41,283.54)39,121.69 39,121.69 2,161.85 0.00 TOTAL EXPENDITURES - ALL FUNDS 100.00 (4,833.33)4,833.33 4,833.33 0.00 0.00 TOTAL REVENUES - ALL FUNDS 19 Item 2. ECONOMIC DEVELOPMENT AUTHORITY AGENDA SECTION BUSINESS ITEMS MEETING DATE 03/03/2025 ITEM: ACRED Presentation DEPARTMENT: Community Development BY/DATE: Mitchell Forney, 2-26-25 BACKGROUND: At the March 3rd meeting, the EDA will receive a brief presentation about the Anoka County Regional Economic Development (ACRED) initiative. The purpose of the presentation is to check in with the Economic Development Director of ACRED while also highlighting recent changes that have been made as a result of strategic planning. For context in 2018, a large majority of the cities in Anoka County signed a Memorandum of Understanding (MOU) to create ACRED in hopes of bringing a unified voi ce to economic development throughout the county. ATTACHMENT(S): None 20 Item 3. ECONOMIC DEVELOPMENT AUTHORITY AGENDA SECTION BUSINESS ITEMS MEETING DATE 3/3/2025 ITEM: Commitment of Matching Funds for MHFA Local Housing Trust Fund Grants Program . DEPARTMENT: Community Development BY/DATE: CD Coordinator, 2/27/2025 BACKGROUND: At the EDA’s February meeting, the Commission directed Staff to prepare an application for the Minnesota Housing Finance Agency (MHFA) Local Housing Trust Fund Grants Program. As explained by Staff during the meeting, this grant program requires the applicant to provide a match of new public revenue. New public revenue is defined as local income that is committed to the Local Housing Trust Fund on or after June 29, 2021, from any source other than the state or federal government. The dollar amount of the applicant match determines the maximum potential grant award. Per the EDA’s guidance, Staff have prepared a resolution to commit $300,000 from Economic Development Authority Redevelopment Fund 408 to the Local Housing Trust Fund for the match. Fund 408 currently holds $510,000. Based on the grant’s program guidelines, the $300K City match could potentially earn a $150K MHFA contribution, plus up to an additional $75K MHFA contribution, for a total MHFA contribution of $225K and a total grant program budget of $525K. In order to fulfill the financial requirements of the grant application, Staff recommend passing the attached Resolution 2025-07. This resolution provides for the commitment of $300,000 from EDA Fund 408 to the Columbia Heights Local Housing Trust Fund. The resolution specifies that this commitment of matching funds is conditioned on award of MHFA grant dollars. RECOMMENDED MOTION(S): MOTION: Move to waive the reading of Resolution 2025-07, there being ample copies available to the public. MOTION: Move to adopt Resolution 2025-07, a resolution of the Columbia Heights Economic Development Authority approving the Local Housing Trust Fund match commitment. ATTACHMENT(S): 1. Resolution 2025-07 21 Item 4. 1 Resolution 2025-07 COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. 2025-07 A RESOLUTION APPROVING THE LOCAL HOUSING TRUST FUND MATCH COMMITMENT BE IT RESOLVED BY the Board of Commissioners (the “Board”) of the Columbia Heights Economic Development Authority (the “Authority”) as follows: SECTION 1. RECITALS. 1.01. The Minnesota Legislature appropriated funds for the Local Housing Trust Fund Grants Program (the “Program”), which Program is administered through the Minnesota Housing Finance Agency (“Minnesota Housing”), to incentivize local governments to create or fund local housing trust funds by providing a portion of matching state funds to encourage investment in affordable housing across Minnesota. Entities, including but not limited to cities, who have an existing local housing trust fund are eligible to apply for a grant under the Program. Under the Program, eligible cities may request matching funds for local income that is committed to the local housing trust fund on or after June 29, 2021 from any source other than the state or federal government (“New Public Revenue”). An eligible city may receive matching funds up to 100% of the New Public Revenue committed to the local housing trust fund, up to $150,000, and depending on funding availability, the Program will also match an amount up to 50% of the New Public Revenue above $150,000 but not more than $300,000. Grant proceeds from the Program may be used for: administrative expenses, up to 10% of the Program grant; grants, loans, and loan guarantees for the development, rehabilitation, or financing of housing; match for other funds from federal, state, or private resources for housing projects; or down payment assistance, rental assistance, and home buyer counseling services. All Program grant proceeds must be used for households at or below 115% of the State Median Income (as defined in the Program Guide for the Program prepared by Minnesota Housing). 1.02. Pursuant to Ordinance 1698, adopted by the City Council of the City of Columbia Heights, Minnesota (the “City”) on May 28, 2024 (the “Ordinance”), the City established a local housing trust fund (the “Housing Trust Fund”) under Minnesota Statues, Section 462C.16, as amended, and designated the Authority as the administrator of such fund. The Ordinance requires the Housing Trust Fund to be funded, in part, by an annual allocation of funds from the local affordable housing aid received from the Metropolitan Region Sales and Use Tax established pursuant to Minnesota Statutes, Section 297A.9925, as amended, and permits the Housing Trust Fund to be funded by other sources, including but not limited to: donations, bond proceeds; grants and loans from a state, federal, or private source, including the Program; appropriations by a local government; investment earnings of the Housing Trust Fund; and housing and redevelopment authority levies. 1.03. The City has determined to apply to Minnesota Housing for a grant from the Program, and to that end, the Authority has determined that it is in the best interest of the public to to commit $300,000 from Economic Development Authority Redevelopment Fund 408 (the “Fund 408”) to the Housing Trust Fund, subject to an award of Program grant proceeds. 1.04. If awarded, Program grant proceeds will be used for projects and programs intended to create, maintain, and support affordable housing in the City for households at or below 115% of the State Median Income, in accordance with the requirements of the Program. 22 Item 4. 2 Resolution 2025-07 SECTION 2. LOCAL HOUSING TRUST FUND MATCH COMMITMENT APPROVED. 2.01. The Board of the Authority hereby approves a commitment of $300,000 from Fund 408 to the Housing Trust Fund. The commitment approved pursuant to this resolution is conditioned on an award by Minnesota Housing to the City of Program grant proceeds. 2.02. Program grant proceeds shall be used for projects and programs intended to create, maintain, and support affordable housing in the City, and other authorized purposes under the Program. 2.03 The officers, employees and other agents of the Authority are hereby authorized to do all acts and things required of them by or in connection with this resolution and the application for Program grant proceeds, for the full, punctual, and complete performance of all the terms, covenants, and agreements contained in this resolution. ORDER OF ECONOMIC DEVELOPMENT AUTHORITY Adopted this 3rd day of March, 2025 Offered by: Seconded by: Roll Call: President Attest: Secretary 23 Item 4. ECONOMIC DEVELOPMENT AUTHORITY AGENDA SECTION BUSINESS ITEMS MEETING DATE 03/03/2025 ITEM: 4647 Polk Deed Restriction Discussion DEPARTMENT: Community Development BY/DATE: Mitchell Forney, 2-27-25 BACKGROUND: Earlier this month Community Development staff were contacted by the owner of 4647 Polk St about removing a deed restriction on their property. The deed restriction was established by the purchase and redevelopment agreement that was executed with the sale of the lot within the EDA’s Single-Family Home Lot Sales Program. The owner is looking to establish a group home on the premise which is not currently allowed due to the restriction. The 10-year restriction expires on 05/23/2027. Staff let the property owner know that the City has not removed restrictions in the past and that staff would recommend against removal of the restriction. The owner still wanted to speak before the Council with which staff told them about the community forum or how to contact members of the Council if they wanted to explore addressing the item. The owner has submitted the attached email regarding the situation and has worked with staff to bring this item forward. In 2015 the EDA created the Single-Family Home Lot Sales Program to sell residential lots the EDA had purchased during the 2008-2009 recession. This program sought to redevelop the empty lots the EDA had purchased into single-family homes. Throughout the life of the program, the City purchased 22 properties, demolished the existing homes, and sold the vacant lots to developers. All 22 properties were redeveloped with single-family homes. At the end of the program, the City spent $2,150,459.61 on the purchase and demolition of the properties, recouping $373,000 from the sales of the lots resulting in a total program cost of $1,777,459.61. To maintain the EDA’s investment in the properties, the EDA included a deed restriction on the property. The restriction prohibits the use of the properties as anything other than a single-family, owner occupied home for 10 years after the property is sold to the developer. This deed restriction travels with all subsequent owners of the property and is recorded in the purchase and redevelopment agreement alongside the deed to the property. The property in question was previously a single-family home and was purchased by the EDA on 10/23/2008. The EDA expended $81,220 total on the purchase and demolition of the structure. In 2017 the EDA sold the property to Tollberg Homes for $25,000. On which the developer worked to build the current single-family home on the lot. The current owner is the original owner of the home and purchased it directly from Tollberg Homes. Regarding next steps, if the EDA decides against the request, the deed restriction will remain in place and will expire on 05/23/2027. At that time, the property owner can utilize the property in accordance with the City’s current zoning and building code. If the EDA would like to remove the deed restriction staff will need to enlist the assistance of the EDA’s legal counsel to review and develop documents, agreements, and a resolution to strike the restriction from the previous agreements and recorded documents. Staff recommend not removing the deed restriction for a variety of reasons. First, staff have been involved in multiple similar cases in which a homeowner wanted to obtain a rental license but was not allowed. These 24 Item 5. Page 2 previous situations have resulted in the owner living in the property until the restriction expires or the owner selling the property. Approving a conditional removal of the restriction would result in unequitable enforcement of the program and its guidelines. The removal process would also cost the EDA staff time and legal fees diverting resources from current projects. Last, staff do not recommend removing the restriction as it would act contrary to the previous EDA’s decision and goals set out for the program. ATTACHMENT(S):  Email from Homeowner  Program Guidelines  Deed  Purchase and Redevelopment Agreement 25 Item 5. 26 Item 5. 27 Item 5. 28 Item 5. 477833v2 CBR CL205-55 Single Family Home Lot Sales Program 29 Item 5. 477833v2 CBR CL205-55 COMMUNITY PROFILE There is renewed interest in constructing new single family homes in the first ring suburbs of Minneapolis and St. Paul. Living closer to the urban core allows people to have shorter commutes to work, and a plethora of dining and entertainment opportunities. Columbia Heights is well positioned as a first ring suburb, directly adjacent to booming Northeast Minneapolis. Columbia Heights offers high-quality lots in existing neighborhoods with close proximity to both Downtown Minneapolis and the northern suburbs. Despite only being two and a half miles from Downtown Minneapolis, Columbia Heights offers small town amenities, such as our own “Main Street” along Central Avenue, our award winning School District, as well as neighborhood and regional parks. Public and private reinvestment continues to occur in Columbia Heights, including the construction of a new, state-of-the-art Public Library, new restaurant and shopping areas, and a water park-themed splash pad. Columbia Heights has many community amenities, and provides exceptional real estate value to homebuyers. Columbia Heights continues to make a concerted effort to reinvest in its neighborhoods. Having implemented several housing reinvestment programs throughout the past several years, Columbia Heights is seeing a marked increase in new single family home construction. The lots that are for sale as a part of this program were strategically acquired by Columbia Heights’ Economic Development Authority, and are ready to be developed. We welcome you to Rediscover the Heights! 30 Item 5. 477833v2 CBR CL205-55 PROGRAM GUIDELINES This program is designed to sell residential lots to state-licensed home builders for the construction of new single family homes. The City’s Economic Development Authority (EDA) is only authorized to work with, and sell properties to, builders licensed by the State of Minnesota. EDA staff will evaluate all proposals received in the month prior to each regular meeting of the EDA Board, and will present the proposal that best meets the criteria established in these Guidelines at the next following EDA Board meeting. The EDA Board retains absolute authority and discretion to decide whether or not to accept any particular proposal, and reserves the right to consider offers that do not strictly comply with the guidelines under certain circumstances. Proposals must be submitted by state-licensed builders who have constructed at least three houses in Minnesota in the last five years, or have equivalent experience acceptable to the EDA. The house may be built speculatively or for a specific buyer, but it cannot be used as a rental property. The new owner-occupied single family home must have at least three legally conforming bedrooms, two bathrooms and a two-car garage (which may be either attached or detached, depending on the property layout). EDA staff reviews all proposals to determine if they meet EDA program requirements. Builders may propose to purchase a lot or they may propose to purchase a six-month option on the lot. Either type of proposal must be approved in concept by the EDA Board. After concept approval by the EDA Board, EDA staff will work with the builder to determine specific house plans and to prepare an Option Agreement or Purchase and Redevelopment Agreement. Only Option Agreements executed by the builder, and accompanied by an option fee of $1,000, will be considered by the EDA Board for final approval at its next meeting. If the Option Agreement is approved by the EDA, the option fee is non-refundable and is renewable for one additional six-month term for an additional non-refundable fee of $500. The option provides the builder with an exclusive right to purchase the lot and build a single family home, subject to EDA requirements. Option fee(s) will be credited toward the purchase price of the property. If the builder opts not to purchase the lot, the EDA will retain the option fee(s). As a condition of the option, the builder must list the lot with a “to-be- 31 Item 5. 477833v2 CBR CL205-55 built” house plan displayed on the Multiple Listing Service (MLS) for the duration of the option. No single builder may hold more than 25% of the lot inventory in options. Only Purchase and Redevelopment Agreements executed by the builder, and accompanied by a paid earnest deposit of $2,000, will be considered for final approval by the EDA Board at its next meeting. If the Purchase and Redevelopment Agreement is not approved by the EDA, the earnest deposit will be returned to the builder. If the Purchase and Redevelopment Agreement is approved by the EDA, the earnest deposit is non-refundable. The earnest deposit will be credited toward the purchase price of the property at closing. If the Purchase and Redevelopment Agreement is terminated prior to closing, the EDA will retain the earnest deposit. FREQUENTLY ASKED QUESTIONS Are lot prices negotiable? Lot prices are based upon the Estimated Land Value of each individual property. The EDA reserves the right to review and adjust lot prices periodically. How are legal fees and closing costs handled? In general, the Economic Development Authority’s legal fees and closing costs are included within the price of the lot. Builder is responsible for its own legal fees and costs related to any title evidence deemed necessary by the builder. A nonrefundable $2,000 earnest deposit will be required from the builder at the time the builder signs the Purchase and Redevelopment Agreement. The Purchase and Redevelopment Agreement will be drafted prior to approval of the sale by the EDA and will specify specific cost structures. How does the EDA handle multiple offers? The EDA considers proposals from time to time, based on EDA staff presentation. In the case of multiple offers received prior to a regular EDA Board meeting, the offer best complying with the price and development criteria established in these Guidelines as to a given lot will be presented to the EDA Board for its consideration. The EDA retains 32 Item 5. 477833v2 CBR CL205-55 absolute discretion to decide whether or not to accept any particular proposal. Offers to purchase lots will take precedence over offers to purchase options on lots. Has the lot been surveyed? No survey work has been performed by the EDA. However, with prior consent of the EDA, the prospective builder may have the lot surveyed by a registered land surveyor. The EDA and City retain the right to keep a copy of all official surveys as part of the public record for the property. What is the condition of the property? Each lot is sold “as is.” The prospective builder is responsible to perform all necessary improvement to the lot at its own cost. Is sewer and water available to the property? Please contact the Columbia Heights Public Works Department (763-706-3700) regarding requirements for connecting to the public sewer and water system. How much time do I have to commence and complete construction? After purchasing a lot, construction should begin within a reasonable time period and must be completed within one year. See the Purchase and Redevelopment Agreement for more details. What are the building requirements for a new home? All homes constructed through this program must contain the following:  Three bedrooms  Two bathrooms  Two enclosed garage stalls, accessible by a paved driveway  Windows on every wall of the home  Basements with at least one egress window  One canopy tree in either the front or rear yard  All required features of the State Building Code 33 Item 5. 477833v2 CBR CL205-55 Can a new home become rental property? No, all lots purchased must be developed with owner-occupied housing. Each conveyance is subject to a ten-year deed restriction requiring owner occupancy, as required by the Purchase and Redevelopment Agreement. See Purchase and Redevelopment Agreement for more details. 34 Item 5. 477833v2 CBR CL205-55 LOTS FOR SALE PROPERTY ADDRESS APPROXIMATE DIMENSIONS (w x d) AREA (sq. ft.) Minimum Sale Price 4606 POLK ST NE 4641 TYLER ST NE 50’ x 128’ 60’ x 128’ 6,534 7,840 $20,000 $20,000 35 Item 5. 477833v2 CBR CL205-55 Please note that only lots listed on this chart are for sale under this program. The City or EDA may own additional properties that are not for sale for various reasons. The City and EDA will not entertain offers for properties not actively listed for sale. 36 Item 5. 477833v2 CBR CL205-55 ADDITIONAL INFORMATION Thank you for your interest in developing housing in the City of Columbia Heights. For more information about this program, please visit www.columbiaheightsmn.gov or contact the Community Development Department at (763) 706-3670. 37 Item 5. 477833v2 CBR CL205-55 PROPOSAL FORM (Please detach and complete this section and submit it to the Community Development Department) PROPERTY ADDRESS:______________________________________________________ CHECK ONE: ___ BUILDER OFFERS $________ TO PURCHASE THIS LOT ___ BUILDER OFFERS $1,000 FOR A SIX-MONTH OPTION TO PURCHASE THIS LOT FOR $________ This proposal is not a purchase agreement or other binding contract. At this time, the builder is submitting a proposal to purchase this lot and build a new single family house in accordance with the RFP Guidelines, or is requesting a six- month option for the same. If a builder’s proposal is tentatively accepted by the EDA Board, then EDA staff will work with the builder to determine the specific house plan and draft an Option Agreement or Purchase and Redevelopment Agreement to be signed by the builder and presented to the EDA Board at its next meeting with the required earnest money or option fee. If the EDA Board gives final approval at that time, a binding contract exists between the EDA and builder. Builders may purchase a 6-month option on a lot for $1,000, renewable for an additional 6 months for an additional $500. The option provides the builder with exclusive right to purchase the lot and build a house subject to the normal EDA process, requirements and guidelines. As a con dition of the option, the builder must list the lot with a to-be-built house on the MLS for the duration of the option. The number of options is limited. No builder may have an option on more than 25% of the Program’s lots. BUILDER: (Builder is required to be a Residential Building Contractor licensed by the State of Minnesota.) Name: _______________________________________ State License Number: _____________ Phone: ___________________________ Address: _____________________________________ City/State/Zip: __________________________________________________________________ Email: ___________________________________ Website: _____________________________ REQUIRED ATTACHMENTS AND ADDITIONAL INFORMATION: Attach one representative example of a house you would plan to build on this lot if your proposal is selected. It does not need to show exactly how it would be placed on the lot, it just needs to show the approximate size, quality and features you would anticipate a new house would have on this lot. A specific house plan would be determined after a proposal is tentatively accepted by the EDA. The EDA will only sell lots to licensed builders who have experience in house construction in Minnesota. Please list the addresses of three houses you have built in Minnesota within the last five years, or attach other evidence of qualification for review by the EDA. House #1: _______________________________________________________________ House #2: _______________________________________________________________ House #3:________________________________________________________________ 38 Item 5. 477833v2 CBR CL205-55 PROPOSAL GUIDELINES Please provide the following information regarding the lot(s) intended for purchase: A. Legal Description: The property is legally described as ______________________________________________________________________________________ ______________________________________________________________________________________ ______________________________________________________________________________________ B. Anticipated Timeline for Lot Sales. After a builder submits a qualifying proposal, the timeline is as follows:  EDA meeting #1: EDA rejects or tentatively accepts builder’s proposal. If accepted, builder prepares detailed house plans for EDA public hearing and works with staff to prepare proposed Option Agreement or Purchase and Redevelopment Agreement .  21 days after EDA meeting #1: Deadline for builder to sign the Purchase & Redevelopment Agreement and pay $2,000 earnest money or sign the Option Agreement and pay Option fee.  EDA meeting #2 (approximately one month after #1): EDA holds public hearing and considers a resolution authorizing the lot sale or Option Agreement. Fees are refunded at this time if EDA does not approve the Option Agreement or Purchase and Redevelopment Agreement. If approved, fees are non-refundable.  60 days after EDA meeting #2 deadline for builder to close on the lot purchase. C. Deadline for Completion. Construction of the new house must be completed within one year of EDA date of closing (see above) D. Specifications. 1. Grading & Drainage a) The lot is generally ____________________________________________________ b) Drainage from the house, garage, driveway and any other structures shall be accommodated on the site so that water flow onto adjacent properties is minimized. Builder’s final grade shall carry water primarily to the street. If determined by the Building Official to be necessary, builder will install rain gutters to direct roof runoff to minimize impacts on adjacent properties. Builders will restore any disturbed turf or landscaping. c) Builder will follow Best Management Practices to minimize erosion and runoff onto adjacent properties and public ways. At a minimum, builder will install silt fencing or wattle lots to prevent runoff silt from flowing ono the street or adjacent properties. 2. Utilities a) Utility meters shall be reasonably screened from street view; locations must be specified on the plans submitted with the building permit application. b) All utility service lines shall be underground. Utilities may locate necessary facilities such as pedestals or boxes in the street right-of-way or utility & drainage easements. c) Any expenses for connection of the house to utilities shall be the responsibility of builder, including any necessary landscaping or sidewalk, curb or pavement work, but excepting reasonable costs associated with sewer stub replacement discussed in e) below d) Municipal Water. Municipal water is available at the lot line along ______________ There are no WAC charges. e) Municipal Sanitary Sewer. There are ______ There are not_______ SAC charges 39 Item 5. 477833v2 CBR CL205-55 levied by Metropolitan Council Environmental Services. f) Private Utilities, including natural gas( ), electricity ( ), telephone ( ), and cable television ( ). The house shall access private utilities via underground connections only. **Describe where utilities are located *** g) Questions regarding city utilities should be directed to Columbia Heights Public Works Department at 763-706-3700. Questions regarding private utilities should be directed to the respective utility company. 3. Driveways and Curb Cuts a) A hard surfaced driveway is required to provide access from the street or alley to the new house’s garage. b) The driveway approach (the area between the street and the front lot line) must tie into and match the existing curb cut. c) Alternatively, builder may install a wider curb cut, up to a maximum of 22 feet, at its own expense (a separate permit and escrow are required). Unused curb cut and driveway apron shall be removed and replaced with full height curb and gutter and turf. d) In no circumstances shall the curb cut or driveway approach from the curb cut to the lot line exceed 22 feet in width. e) Once onto the subject property, the driveway may exceed 22 feet in width provided it also does not exceed the width of the overhead garage doors plus six feet. f) The house’s building permit application must include a site plan showing the proposed driveway layout. 4. General Construction Practices. The construction site, neighboring property and adjacent public streets shall be kept free of construction debris at all times, and builder must have a construction dumpster to prevent debris from being scattered or blown around. 5. Building Standards. a) Compliance with Columbia Heights City Code. b) Minimum required setbacks for the house are as follows: 25’ from the front lot line, 20% of lot depth for the rear lot line and _____’ from the side lot lines. c) The houses shall have at least three bedrooms and two bathrooms. d) The house shall have a full depth basement, unless the selected design results in a split level/garden level type of basement. At a minimum, basements shall have at least one egress window and a rough in for a future ¾ bath. Additional basement windows are desirable. Slab houses and crawlspace houses will not be considered by the EDA. e) Exterior materials (siding, soffit, doors and windows) shall be low maintenance. The use of brick or stucco is encouraged. Fiber cement siding or wood siding with natural resistance to decay are encouraged but they must be property stained or panted. Vinyl or other low maintenance siding materials are generally acceptable and can be made more desirable through the use of shakes and other ornamental design features. f) The house shall have a detached or an attached garage for at least two cars, accessed via a hard surfaced driveway from the street or alley. g) The design should emphasize the front door as the focal point for the front of the house. A large and usable (minimum depth 6 feet) front porch is desired. Garage door dominance in design should be minimized as much as possible. h) Plans should present a balanced and pleasing distribution of wall and window areas from all views. Each exterior wall must have at least one window. i) The new house shall be built with a passive venting system for radon gas reduction. 40 Item 5. 477833v2 CBR CL205-55 j) The new house shall have Carbon Monoxide alarms in accordance with M.S. 299F.50 k) No equipment such as air-conditioning cooling structures or condensers that generate noise shall be located within a side setback, drainage & utility easement, or 10 feet of living quarters located in a building on adjacent property. 6. Landscaping. The lot shall be landscaped to be aesthetically pleasing in all seasons. Land forms and plant materials shall be used to define the site and blend neatly with adjoining property. At a minimum the following are required:  Plant one large species canopy shade tree in the front yard, and one large species canopy shade tree in the back yard (if none exist).  Grass or other vegetative cover must be provided to all non -paved outdoor surfaces. Species, size and specific locations of all new trees should be indicated on planting plan. Builder must submit a planting plan to the City for review and approval prior to planting. If builder desires to close on the sale of the new house prior to completion and acceptance of the landscaping, the EDA may require that funds be escrowed by the builder to guarantee that landscaping is completed in a timely manner after closing. 41 Item 5. 42 Item 5. 43 Item 5. 44 Item 5. 45 Item 5. 46 Item 5. 47 Item 5. 48 Item 5. 49 Item 5. 50 Item 5. 51 Item 5. 52 Item 5. 53 Item 5. 54 Item 5. 55 Item 5. 56 Item 5. 57 Item 5. 58 Item 5. 59 Item 5. 60 Item 5. 61 Item 5. 62 Item 5. 63 Item 5. 64 Item 5. 65 Item 5. 66 Item 5. 67 Item 5. 68 Item 5. 69 Item 5.