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HomeMy WebLinkAbout5-1-12 agenda (4)AGENDA COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY Monday November 5, 2012 6:30pm City Hall, Conference room 1. Call to Order/Roll Call Gary L. Peterson, President ]Donna Schmitt, Vice President ]Bruce Nawrocki, Secretary /Trasurer . Pledge of Allegiance Bobby Williams Tarnmera. Diehm Gerry H6rringer Marlaine S'zurek CONSENT AGENDA 3. Approve Minutes of August 6, 2012 meeting, Special meeting of August 27, 2012, Special meeting, of September 17, 2012 . and Executive Session of September 17, 2012 a.. Approve financial report and payment of bills for July, August and September 2012 on Resolution 2012 -14. Motion: Move to waive the readings of Resolution 2012 -14 to approve Consent agenda as presented. BUSINESS ITEMS 4. Grand Central Loft Town homes proposal — Synergy Land Company 5. Scattered Site Relator RFP Review 6. Consider donation of 666 40t" Street Property Motion: Move to waive the reading of Resolution 2012 -15, there being ample copies available to the public. Motion: Move to approve Resolution 2012 -15, authorizing acceptance of the donation of the property located at 666 40`x' Avenue Northeast in the City of Columbia Heights; furthermore authorizing the City Manager to enter into any agreements for the same. 7.. Anoka County Tax Levy S. Administrative Report . Adjourn The next regular GDA meeting will be Monday December 3 2012 at City Hall. ECONOMIC DEVELOPMENT AUTHORITY (EDA) MINUTE'S OF THE MEETING OF AUGUST G, 2012 IN CONFERENCE ROOM 1 The meeting was called to order at 7:12 pm by Chair Peterson. Members Present: Bruce Nawrocki, Cary Peterson, Donna Schmitt, Gerry Herringer, and Tammera Diehrn. Members Absent: Marlaine Szurek and Bobby Williams. Staff Present: Walt Fehst, Scott Clark, Sheila Cartney, and Shelley Hanson. Also present were: Peter Jesh of Coventry Senior Living and Keith Ebenste'iner from ReMax. Real Estate Company. 2. PLEDGE OF ALLEGIANCE RECITED 3. CONSENT ITEMS 1, Approve the Minutes from Special Meeting of May 7, 2012 and from the Executive Session of May 7, 2012. 2, Approve the Financial Report and Payment of Bills for April, May and June 2012 on Resolution 2012 -09. Questions from members: There were no questions. Motion by Diehm, seconded by Schmitt; to waive the reading of Resolution 2012 -09, there being an ample amount of copies available to the public. All ayes. MOTION PASSED. Motion by Diehm, seconded by Schmitt, to approve the minutes and adopt Resolution 2012 -09. All ayes. MOTION PASSED EDA RESOLUTION 2012 -09 RESOLUTION OF THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) APPROVING THE FINANCIAL STATEMENT FOR APRIL, MAY, AND .TUNE 2012 AND PAYMENT OF BILLS FOR THE MONTHS OF APRIL, MAY, AND JUNE. 2012. W ERE,AS, the Columbia Heights Economic Development Authority (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 FDA Minutes Page 2 August 6, 2012 WHEREAS, the financial statement for the months of April, May, and June 2012 has 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, itlChiding but not limited to Comprehensive Annual Financial Reports, Annual City approved Budgets, Audits and similar documentation; and WHEREAS, financials 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 a part of the permanent records of the Columbia Heights Economic Development Authority. Passed this 6th Day of August, 2012 MOTION BY: Diehm SECONDED BY: Schmitt AYES: All ayes Gary Peterson, President Attest By: Shelley Hanson, Secretary BUSINESS ITEMS 4,. General Discussion with Coventry for Assisted Living Proposal at 37n' and University Clark explained that Peter Josh, representing Coventry Senior Living which is part of a Company named ICON, was resent to have an informal discussion with the EDA regarding a potential assisted living facility at 37 and University. The FDA's role in this is that the subject property parcels are under the "Huset Park Redevelopment Agreement" which specifically calls for 183 units of owner occupied condominiums or cooperative units, plus 11,600 sq. of retail. If this project proceeds, a formal amendment to the Agreement would have to be made in addition to the normal land use permitting process through the Planning Commission and City Council. Clark explained the ownership history of the site to the members. EDA Minutes Page 3 August b, 2012 Mr. ;Mesh introduced Keith Ebensteiner from ReMax who is working with BNC Bank to market and develop the remaining pieces of this site. Jesh stated that ICON is interested in constructing an Assisted Living building on the remaining Phase 2 piece and a Sr, Independent Living building on the site by the roundabout. If those buildings are successful they would potentially build another Assisted Living Building on the south piece at 37t" and University Ave. Jesh says having an independent building nearby naturally feeds the occupancy of the Assisted Living building. He told members that if the project moves forward, they plan on having Ebenezer manage the building(s). Jesh said they have done market studies and there is a deed for this type of housing in this area. He told members the preliminary plan is to construct a 95 -100 unit, 4 story building on the Phase 2 site of Assisted Living space, and a 50 -100 unit, 3 or 4 story building on the roundabout site of Sr. Independent Living space. He said it generally takes one year to build and two years to fill the units. Development of the south piece would depend on how quickly the units rent out. Clark asked Jesh if ICON would be taking Fee Title for all three pieces and Jesh stated they would, if they can come to an agreement with the bank. The members asked if the retail component would still be considered as part of their plans. Jesh stated that would depend on the market needs in the area. He intends to keep it as a possibility. Diehm said there are currently other Assisted Living facilities in Columbia Heights and that those buildings are not full. She questioned whether he has done recent market studies to justify additional construction of this type. Jesh said he had, and that the studies indicate a need for "Elderly Waiver" units. New Perspectives/Lighthouse is a market rate building. He told members their buildings would primarily be "Elderly Waiver" or a mix of both. Herringer asked if the "Elderly Waiver" would apply to the Independent Living units as well. Jesh said no, just the Assisted Living Building. He told members that part of the plan is to react to the needs of the public as there are many types or levels of Sr. Assistance. Jesh said that often times they can tie some of the services for both buildings together such as the emergency life line alerts. Nawrocki asked if the units would be owner - occupied condo units, or rental units. Jesh said they would be rental. Coventry Senior Living has found it beneficial to have Ebenezer manage their buildings since they are affiliated with Fairview Health Systems which also direct people to their housing options. Jesh told members Coventry Sr. Living has the following buildings: Maplewood -they are 90% done with construction of 107-unit building and that 25 units are already reserved. They will be breaking ground this summer for another building in Mounds View. Coon Rapids -90 units that is 90% full, and a new building in Mahtomedi with 48 units that is 75% full. Jesh said his job is to find sites and get the financial deals put together. Schmitt asked if the EDA is in favor of this, how soon it would be until ICON started construction. Jesh told them it would take 4 or 5 months to complete the sales transaction if the bank accepts their offer, and they would probably start construction in the spring of 2013. Ebensteiner told members EDA Minutes Page 4 August 6, 2012 there are 23 banks involved in the ownership of this site and they must work through that, but they felt the first step was to see if the EDA is interested in this type of project before they expend funds to pursue this. Dichm stated she was excited to see any interest in the site and would like ICON to keep an open mind about including some space for retail in their plans. Schmitt thought it was a great idea, especially since they are interested in developing all three pieces. She also stated she is very comfortable with Ebenezer managing the buildings as they have a good reputation with such facilities, Herringer said he believed it is a positive move to complete the development and that he would keep an open mind about the deal and the plans. Nawrocki said he wouldn't commit yet as he didn't have enough information.. Peterson stated he felt it was a good option for the community. He knows there are a lot of hurdles, but is excited to see the project move forward. Peterson told Jesh, that four of the five members present were in favor of them pursuing the purchase and development of the remaining parcels for Senior Living Buildings as informally discussed. 516. Resolution 2012 -10 HRA Levy Budget Clark explained that the 2013 budget for all of the Community Development Department was enclosed in the agenda packets. Although some of the Department's budget (fund 20 1) is not controlled by the EDA, the EDA traditionally reviews and acts on this budget as a whole, which is in turn, finalized by the City Council, The actual EDA portion of the budget is fund 204 and the attached resolutions serve as a recommendation to the City Council for levying both an EDA and a BRA levy. The Department's operating budget is straightforward due to the size of the department and no on -going capital and/or rolling stock requirements, and expenditures (combining fund 201 and 204) have been reduced by 2.6% comparing 2012 to 2013. Clark reviewed this year's budget highlights are as follows: 1.The 2012 HRA levy (called statutorily a special benefits levy), is driven by a State formula easing the City's market value, has been reduced by $8,553 from $218,343 to $209,790. The EDA traditionally maximizes the LIRA levy as budget revenue, and the aforementioned reduction is due to market value reductions. The EDA levy (under separate resolution) has been maintained at prior year levels equaling $84,811. 2.The reduction in the HRA levy, coupled with the EDA levy and one quarter only of Parkview administration revenue ($9,250) almost balances the fund 204 expenditures. The anticipated $20,209 expenditure over revenue difference, if realized, will be made up by fund 204 fund balance. 3.Fund 201 (Protective Inspections which includes building inspections and planning) has a proposed shortfall of $69,049. The difference will be made up by existing fiend balances EDA Minutes Page 3 August 6, 2012 in Fund 2.01. The aforementioned loss is a projected worst case scenario and one or two unanticipated projects in 2013 could substantially change these figures. Due to the inconsistency of building inspection revenue, revenue seldom matches expenditures. Fund 201 fund balances are used to offset years in which there are operating losses and the fund is replenished in years when revenues exceed expenditures. Staff recommends the Levy's as recommended. Questions by members: Nawrocki stated Ire was surprised at same of the figures. lie believes the whole budget should be reviewed, not just individual departments or funds. I-Ie went on to say there should be further reduction of expenditures. Clark said Fund 204 (EDA Administration) has been reduced by $16,000. He went on to explain that the FDA does not approve Fund 201 (Protection Inspections) -- --that is done by the City Council. Information on that fund was included since Community Development is responsible for both funds. Nawrocki stated that the budget indicates that find balances will be used to balance the 201 budget, and he disagrees with doing that. Clark explained to members that some years the revenues exceed projections due to a healthy economy, and a lot of construction and remodeling being done. Other years do not bring, in enough revenue to cover expenses, so fund balances roust be used. This is something that is hard to foresee and action one way or the other is usually done in hindsight. This service is something that must be provided per State Law, but revenues constantly fluctuate and are hard to predict. Nawrocki then asked about increased amounts in the contingency fund and was told that was where the cost of living expenses were categorized. lie then complained about the cost of refreshments for residents who went through the Citizen's Academy. He noted that the reduction in the administration fee from Parkview Villa indicates that the sale will probably go through and it is another reason that personnel should be cut from Community Development, Fehst stated that this Department cut three positions in the last five years, and that none of them have been replaced. Schunitt stated she thought the Parkview Administration Revenue should be included in the budget for the entire year since the sale has not been finalized. Clark will make that adjustment. Nawrocki asked for clarification on the two Resolutions and needed to know which figures went with each Resolution. Motion by Diehrn, seconded by Schmitt, to waive the reading of Resolutions 2012 -10 and 2012 -11 there being ample copies available to the public. All Ayes. MOTIOINPASSED. Motion by Diehrn, seconded by Schmitt, to ap rove Resolution 2012 -10, Resolution Authorizing the Levy of a Special Benefit Levy pursuant to Minnesota Statutes, Section 469.033, Subdivision 6 andApproval of a Budget for Fiscal year 2013. Roll Call: ayes- Diehrn„ Schmitt, Peterson, and Herringer Nays- Nawrocki MOTION PASSED. Motion by Diehni, seconded by Schmitt, to alsprove Resolution 20'12 -11, Resolution of the Economic Development Authority (EDA) in and for Columbia Heights Adol)ting the 2013 budget and setting the EDA Levy with the correction of adding revenues for entire year for Parkview Villa Administration. Roll Call: ayes- Diehrn, Sclunitt, Peterson, and Her °ringer Nays - Nawrocki MOTION PASSED. FDA Minutes Page 6 August 6, 2012 COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. 2012-10 AUTHORIZING THE L EVY OF A SPECIAL BENEFIT LEVY PURSUANT TO MINNESOTA STATUTES, SECTION 469.033, SUBDIVISION 6 AND APPROVAL OF A BUDGET FOR FISCAL YEAR 2013 WHEREAS, pursuant to Minnesota Statutes, Section 469.090 to 469.1081 ( "EDA Act ") the City of Columbia Heights ( "City ") created the Columbiia. Heights Economic Development Authority (the "EDA "); and WHEREAS, pursuant to City Resolution 2001 -62 and Ordinance No. 1442, the City Council granted to the EDA all powers and duties of a housing and redeveI opine tit authority under the provisions of Minnesota Statutes, Sections 469.0101 to 469.047 (the '''HRA Act "), except certain powers that are allocated to the Housing and Redevelopment Authority in and for the City of Columbia Heights (the "'HRA"); and WHEREAS, Section 469.033, Subdivision 6, of the HRA Act permits the FDA and HRA, together, to levy and collect a special 'benefit levy of tip to .0185 percent of taxable market value in the City upon all taxable real property within the City; and WHEREAS, the EDA desires to levy a special benefit levy in the amount of .0 185 percent of taxable market value in the City; and WHEREAS, the EDA understands that the HRA does not expect to levy a special benefit tax for fiscal year 2013; and WHEREAS, the EDA has before it for its consideration a copy of a budget for its operations for the fiscal year 2013 and the amount of tile levy for collection in fiscal year 2013 shall be based on this budget. NOW, THEREFORE, Be It Resolved by the Board of Commissioners of the Columbia Heights Economic Development Authority: I , The budget of $324,060 for the operations of the EDA presented for consideration by the Board of Commissioners of the EDA is Hereby in all respects approved. Such budget includes the amount the EDA requests (by separate resolution) to be levied by the City under Minnesota Statutes, Section 469.107, together with the amount to be levied hereunder by the EDA under Minnesota Statutes, Section 469.033, subdivision 6. 2. Staff of the EDA arc hereby authorized and directed to file the budget with the City in accordance with Minnesota Statutes, Section 469.033, Subdivision f. 3. There is hereby levied, subject to the approval of the City Council of the City, a special benefit levy pursuant to Minnesota Statutes, Section 469.033, Subdivision 6, in the amount equal to the lesser of a levy at a rate of .0185 percent of taxable market value in City, or $209,790 with respect to taxes payable in calendar year 2013. 4. Staff of the EDA are hereby authorized and directed to seek the approval by resolution of the City Council of the City of the levy of special benefit taxes in 2013 and to take such other actions as are necessary to levy and certify such levy. EDA (Minutes Page 7 August. 6, 2012 Motion by: Diehm Second by: Sclnnitt Roll Call: ayes - Diebtn, Schmitt, Peterson and Herringer Nays- Nawrocki Motion passed this 6 "' day of August 2012 Attest by: Walter R. Fehst, Executive Director Gary L. Peterson, President EDA RESOLUTION 2012 -11. RESOLUTION OF THE ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR COLUMBIA HEIGHTS (EDA) ADOPTING THE 2013 BUDGET AND SETTING THE EDA LEVY. BE TT RESOLVED By the Columbia Heights Economic Development Authority (EDA) of Columbia Heights, Minnesota as follows: WHEREAS, the Columbia Heights City Council established the Columbia Heights Economic Development Authority January 8, 1996 pursuant to Minnesota Statutes 469.090 to 469.1081; and WHEREAS, the City Council has given to the EDA the responsibility for all development and redevelopment projects and programs; and WHEREAS, the EDA is authorized under State Statutes, Section 469.107 to levy a tax on its area of operation for the purposes authorized under State Statues 469.090 to 469,1081, subject to consent by the City Council. NOW, THEREFORE BE IT RESOLVED BY THE EDA FOR THE CITY OF COLUMBIA HEIGHTS, MINNESOTA THAT: 1. The EDA adopts and recommends to the City Council for approval a budget of $324,060 for year 2013. 2. The EDA adopts and recommends to, the City Council for approval a levy of $84,811 for year 2013. The Executive Director is instructed to transmit a copy of this resolution to the City Manager and Finance Director /City Clerk of the City of Columbia Heights, Minnesota. APPROVED THIS 6`r' day of August 2012 MOTION BY: Dichm SECONDED BY: Schmitt Roll Call: ayes- Diehm, Schmitt, Peterson, and Herringer nays- Nawrocki MOTION PASSED. Attest by: Walter R. Fehst, Executive Director Gary L. Peterson, President EDA Minutes Page 8 August 6, 2012 7. Resolution 2012 -12 Approving Funding for the Single Finnily Deferred Loan Proge•am Cartney requested that the Economic Development Authority (EDA) authorize funding of $35,000 for the Single- Family Home Deferred Loan Program (SFDL), which was included in the Housing Maintenance Plan 2008 — 2017, approved by the EDA on AugLISt 18, 2007. The purpose of the SFDL is to provide low - interest loans to homeowners of lower income to complete structural improvements that would help inaiintain the quality of their homes and the City's housing stock. Assistance is targeted at homeowners who need to perform horne maintenance, but who may not be able to pay a monrtlily debt service of conventional loan. The SFDL would provide half of the total project costs, or up to $7,500, in a deferred loan to homeowners making 80% of the median area income or less. To qualify for the program, the homeowner must provide matching funds for the remaining project costs. Exterior home improvements related to health and safety, code violations or energy efficiency, such as windows, siding and roofs would be eligible. Repayment of the loan, plus simple interest of two percent, will be required upon sale of the house or transfer of title. The homeowner can use the proceeds from the sale of the house to pay the loan. Repaid loans will be returned to the funds available to finance future loans. In February 2011, the EDA allocated $35,000 to this program, to date $60,940 in loans have been obligated resulting in $0 find balance for the remainder of 2012; if the EDA would like to continue the SFDL program staff .suggests allocating '$35,000 for 2012, which historically has been sufficient for a yearly allotment. Staff recommends the EDA obligate $35,000 from fund 420 for the Single Family Deferred Loan Program, Questions from members: Members inquired how much money was in the fund 420. Cartney responded that currently there is approximately 19 million in that fund and this request is for $35,000. Herringer asked bow much interest applicants pay for this money. Cartney stated they pay 2% simple interest at the tirne of sale. The interest is not accrued on an annual basis. Nawrocki stated that the EDA recently approved $50,000 in funding and wondered why we are approving another $35,000. Cartrcy said the $50,000 funding approved in May was for the Rebate Program. She explained the difference between the two programs and told members how much was used last year. Herringer asked how many applications we currently have waiting. Cartney told him staff has not been taking any applications for this program since additional funding had not yet been approved. He asked if the funds would carry over till next ycar if not used in the remaining months of 2012 and she told him, yes. Motion by Dieh »r, seconded by Schinitl, to waive the reading of Resolution 2012 -12 there being ample copies available to thepublic, All ayes. MOTTONPASSED. Motion by Schmitt, seconded by Diehrn, to approve Resolution 20'12 -12 approving funding of $35, 000 for the Single Family Deferred Lawn f tom fund 920..411 ayes. MO7'TOt' PASSED. EDA Minutes Page August 6, 2012 EDA RESOLUTION NO. 201242 A RESOLUTION APPROVING FUNDING FOR THE SINGLE FAMILY DEFERRED LOAN PROGRAM ($35,000) WHEREAS, since 2007 the Economic Development Authority (EDA) has provided the Single Family Deferred Loan Program to residents of the City of Columbia Heights, and WHEREAS, the Columbia .Heights EDA through its Comprehensive Plan has established as a goal the preservation of the single- family housing stock; and WHEREAS, the EDA approved the Housing Maintenance Plan 2008 -2017 to improve and maintain the residential homestead housing stock; and WHEREAS, this resolution seeks to authorize and provide additional fiends for the continuation of the City's Single Family Deferred Loan Program to be administered by the City. NOW, THEREFORE, BE IT RESOLVED that the EDA allocates $35,000 for the Single Family Deferred Loan Program from Fund 420 — Capital Improvement Development Fund. Passed this 6 "' day of August, 2012. President Walter Fehst, Executive Director 8. Scattered Site Update /Direction Cartney told members that in February, the EDA approved RFP guidelines and directed staff to send out the RFP for development of four scattered site lots (4303 Reservoir Blvd, 4502 Washington, 4110 G'i', and 4421 5`E') Staff sent out twenty RFP's directly and also listed the lots and RFP on the City's Webpage. The RFP provided a two month window for applicants to submit their proposals, no proposals were received. Currently the four lots are listed for sale on the City's webpage, on findingmyroof.com a free real- estate listing site and Postlets.com a website that lists the real estate on several webpages for free. Because of the direction in February to only list the four lots, staff has not listed any other lots for .sale on the webpage, as price points have not been established. In February the EDA also discussed three other options: (1) City continue to market and sell the properties with assistance of the EDA attorney, (2) Hire a realtor to market and sell the properties, (3) Partner with Anoka County's Realtor who is familiar with the area and restrictions as he is selling the County's NSP lots. If the EDA were to choose option (1) a budget should be created for marketing (signage, web listings etc).. if option (2) is selected an RFP would go out to the St.. Paul Realtors Association and on our webpage and staff would bring back a recommendation at a later EDA meeting. Staff met with .Anoka County's realtor, Jared I -loylo with Remax Advantage Plus, in January to discuss what Anoka County is doing with their lots, at that time he indicated he would be interested in listing the EDA lots, but has not EDA Minutes Page 1.0 August 6, 2012 been contacted since then (option 3). Regardless of what option the EDA decides to go with staff recommends using the established guidelines for all the lots, 'Staff recommends the Board give approval to send out RFPs to various Realtors and see what they propose. The RFPs will ask them to submit their contacts, background, credentials and the amount of Commission they will charge to market the lots for its. Questions from members: Schmitt asked about the possibility of selling the lots to neighboring properties. Fehst said he'd rather see the lots marketed for construction of new homes. This way we would recoup some of our expenses and it would generate more tax dollars through the years. Cartney said the lots would have to be taken out of the TIF District in order to do that. It was noted that if these empty lots were combined with another lot that it would generate much less tax dollar revenues. Nawrocki thought the goal should be to try and recuperate some of our costs associated with buying these properties and demolishing the structures. Clark said the EDA knew it would take some time to sell the lots for new construction, and we must try different ways to market them to meet this ,goal. Herri.n,ger asked if they would fall under the" 9 year rule" for paying taxes on them. Clark told him, yes. Schmitt liked Option 2, plus she suggested putting up "For Sale" signs on the 4 properties we are focusing on currently. She also stated that when we get the RFP's back from the Realtors that we should be able to negotiate the amount of commission and that a list of all the lots should be included for them to market, not just the four "select" lots. The members agreed with this direction. 9. Anoka County Tax Levy Clark stated that in 2007 both the Economic Development Authority and the City Council entered into discussions and approved participating with the Anoka County Housing and Redevelopment Authority, for five years, to levy a tax for economic development purposes. Enclosed in the packet was the August 28, 2007 EDA report and City Council Resolution ##2007 -156 which will give the rationale for the participation. At that time, it was calculated that the total five year allocation would be approximately $1,285,776 minus the County's administration fee of 15% (the final net number would be $1,092,250). However, the total net anticipated allocation from years 2008 -2012 is only $937,524 since the levy amount is driven by State formula and is calculated based on City marketable tax value, which has decreased greatly over the past 5 years, Also enclosed was a spread sheet showing the obligated and unobligated funds for the 2008 through 2012 allocations. The majority of the funds were previously dedicated to the purchase of the "Mady's Property" as part of a large redevelopment action, but the offer to purchase the property was rescinded by the owner. EDA Minutes Page I 1 August 6, 2012 The Anoka County levy program is a rolling five year program which means that the City /EDA has to either (1) Agree to be part of the program for another five years (years 2013- 2017 with an estimated total net allocation of $850,000 ($170,000 annually) or (2) Not re-up and forfeit the opportunity to participate for the full five year cycle, The policy question for the EDA is whether or not to use this program as a future source for redevelopment, housing and/or economic development programs. The EDA has limited resources for future activities and this allocation provides another tool for activities that could otherwise be halted due to a lack of funds. From a staff perspective, the lack of a specific program attached to these fiends should not be a rationale for discontinuing the levy program. As the City ages, new issues and hopefully opportunities, will present themselves for public assisted reinvestment. As stated previously, these funds can't be generated at a future date, nor are they characterized as grant funds that could be applied for when needed. The funds can be viewed as a means to create a fund balance towards future expenditures that are consistent with an aging community and match the goals of the City. Examples of future use could be purchasing or assisting in a major redevelopment effort (such as a Mady's type project) or a loan program that would leverage these fiends and allow access to a greater range of i EDA Minutes Page 12 August 6, 2012 Dielim questioned whether we will still have an I -IRA levy once Parkview Villa is sold. Clark stated that, yes there will still be an HRA levy and a HRA Commission since we deal with other housing issues and programs other than just Parkview Villa. The levy structure won't be changed after the sale. Dichm then asked how soon we have to make a decision on this matter. Clark told her by October. She then suggested tabling this until the next meeting so that more information can be reviewed in regards to potential target areas, additional tax levy options, and current fiend balances. Motion by Schmitt, seconded by Herringer, to bring this item back at the September meeting. All ayes. MOTION PASSED. 10. 828 40"' Avenue Tax Exemption ,Status In 1999' the EDA purchased property at 828 40'"' Ave with an old TV repair building on the lot. In 2001 the- building was torn down leaving a vacant green space. Community Development Block Grant (CDBG) money was used for the purchase and demolition. The purchase price was '$72,246.50 and demolition was $7,117.,20 a total of $79,363.70 of CDBG funds used. After purchase of the lot, the property was placed into tax exempt status. For the past three years the subject lot has been used as a community garden and in 2011 the EDA tinned down a proposal to sell the subject lot for a parking lot proposal for an adjacent accounting firm. It was also at that time that Anoka County explained national objective needs to be met or the city would need to pay back some of the CDBG funds (market value not the total finds used). Based on a letter dated January 23, 2012 from Anoka County, as of'December 31, 2012 the subject lot will no longer be tax exempt. State Statute 272.02 Subd. 39 states "The holding of property by a political subdivision of the state for later resale for economic development purposes shall be considered a public purpose in accordance with subdivision 8 for a period not to exceed nine years.." Anoka County 2013 value is $31,600 resulting in 2013 taxes of $659 in which $309 would come back to the City. The EDA has three options: 1. Start marketing this site for redevelopment and pay taxes a. If sold for redevelopment CDBG national objects will need to be met or the market value will have to be paid back to Anoka County. 2.. Keep the site as is and start paying taxes on the site until ready to market. 3. Dedicate the lot as park land to permanently use as a community garden or green space, which will maintain the tax exempt status. however, this will trigger the need to pay back CDBG finds to Anoka County ($31,600). Due to the small net amount in taxes plus the cost to repay CDBG funds, staff reeo►nmends option #2 using Fund 420. Questions from members: Peterson agrees with staffs recommendation to go with option 2n Nawrocki said it was originally intended to be used by the Library. Cartney explained that if we turned it into a parking lot for the Library that we would have to pay back the CDBG funds in the amount of $31,600 to Anoka County as it doesn't meet the national objectives. Staff checked on this when the Accountant wanted to purchase the lot a year or so ago. EDA Minutes Page 13 August 6, 2012 Motion Jay Diehni, seconded by Peterson, to keep the parcel as a corninunity garden andpay taxes until the EDA is ready to market the lotfor sate. All ayes, MOTION PASSED, 11. Adn►inistrative Report There were no further reports. The next regular EDA meeting will be Tuesday, September 4, 2012 at City Hall at 6:30 pin. Dielnni stated she will not be at that meeting, The meeting was adjourned at 9:05 pm. Respectfully submitted, Shelley Hanson Secretary ECONOMIC DEVELOPMENT AUTHORITY (EDA) MINUTES OF THE SPECIAL MEETING OF SEPTEMBER 17, 2012 IN CONF ERENCE ROOM 1 The meeting was called to order at 6:00 pm by Chair Peterson. Members Present: Bruce Nawrocki, Gary Peterson, Donna Schmitt, Gerry Herringer, and Tammera Diehm, and Marlaine Szur'c!k. Members Absent: Bobby Williams Staff Present: Walt liehst, Scott Clark, Sheila Cartney, and Shelley Hanson. Also present was: Bob Lindahl from Kennedy & Graven Law Office. PLEDGE DGE OF ALLEGIANCE- RECITED The meeting was adjourned to an Executive Session to discuss a Purchase Agreement for 3919 -3927 Central Ave. After some discussion it was decided to Hold the next EDA meeting on Monday October S, 2012 at City Hall. The special meeting and Executive Session were adjourned at 6:52 pm. Respectfully submitted, Shelley Hanson Secretary COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) Meeting of. November 5, 2012 AGENDA SECTION: Consent ORIGINATING EXECUTIVE NO: 3a DEPARTMENT: EDA DIRECTOR APPROVAL ITEM: Financial Report and Payment of Bills BY: Sheila Cartney BY: DATE: July l 7, 2012 BACKGROUND: The Financial Reports are for the month of July, August and September 2012 and Resolution 2012 -14 is attached for approval. RECOMMENDATION: Staff will be available to answer questions. If the report is satisfactorily complete, we recommend the Board take affirmative action to receive the Financial Reports and approve the payment of bills. RECOMMENDED MOTION: Move to waive the reading of Resolution 2012 -14 there being ample copies available to the public. Move to approve Resolution 2012 -14, Resolution of the Columbia Heights Economic Development Authority (EDA) approving the Financial Statements and Payment of Bills for the month of July, August and September 2012. Attachments: Resolution and Vinancial EDA ACTION: EDA RESOLUTION 2012 -14 RESOLUTION OF THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) APPROVING THE FINANCIAL STATEMENTS FOR JULY, AUGUST AND SEPTEMBER 2012 AND PAYMENT OF BILLS FOR THE MONTHS OF JULY, AUGUST AND SEPTEMBER 2012. WHEREAS, the Columbia Heights Economic Development Authority (EDA) is required by Minnesota Statutes Section 459.096, 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 FDA'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 statement for the months of July, August and September 2012 has 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, financials statements are held by the City's Finance Department in a method outlined by the State of Minnesota's Records Retention Schedule, NOW, THEREFORE' IBE 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 a part of the permanent records of the Columbia Heights Economic Development Authority. 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IH F' rd 0 GD xd d ' 00 m 7 CI} t'7 (n C3 W tl ro z (� ti E� H1C , zy a N ro CD 00 0(n W H (DM W i� th r� zz �z €ro n E I C) r H u3l av co � ~n 1 cn 00 Jr 0W H µd '� H v3 iFl {j7 H O H (I z � c; z x d bj LA H 0 H 0 � r h� n 0 t� tti w H z y tJ r �P N 0 0 0 c H uJ d az �z (7) Hr I � Iz I {] I Ca I I b] I [+j Ix �d O o I J� w v 0 0 0 �JN \ H O N z ryj CD yiy �z 0 NC) la*j H H u� r c: --j rj) I -a w� 0 M ro M H 0 tv c (L4 (D z01 P. f9 b 0m �c Q- 00 �GI O m pay Mi l [n[] M 'z ti 0 H K; GH d t.s Id �_ 00 nm bJ H U1 t-J U] U I I bj N I C) I R H' Iz� o (] H I �z (7) 0 I I I I I- �v I � IH n r� H c <� n3 OO I cO ®0 �r ro� t }LA COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) Meeting of November 5, 2012 AGENDA 'SECTION: Business Item ORIGINATING EXECUTIVE NO.4 DEPARTMENT: EDA DIRECTOR APPROVAL ITEM: Grand Central Loft Town Homes BY: Sheila Cartney BY: AZZ , a � A Proposal — 4,800 Grand Ave DATE: October 25, 2012 BACKGROUND: In 2003„ a development plan was approved for three 60 -unit condo buildings and 21 townhouses as part of the Grand Central Lofts Agreement. Currently there are 10 townhouse units built and one condo building. The townhouses are platted as individual lots with zero lot line setbacks. This proposal would be part of phase two of the townhouse portion of the development that is unfinished at this time. PROPOSAL: The applicant is proposing to reduce the number: and style of townhouse units. The approved unit number was 21 with 10 built and 11 remaining units /lots. The applicant proposes to reduce the number to 9 and create detached single family homes instead of attached townhomes. The proposed lots will be slightly larger than what was previously approved at 3,150 square feet (original is 2,460sq. ft.). The proposed single family homes will have similar architecture and earth tones to complement the existing buildings and will be part of the Home Owner's Association. These changes constitute a preliminary and final plat, and site plan review approval. The changes to this proposal are minor in nature and are before the EDA in order to determine if the proposal still meets the spirit and intent of the original development. RECOMMENDATION: Staff recommends the proposal move forward to the Planning Commission and City Council for Preliminary plat and Site Plan Review as proposed. RECOMMENDED MOTION: Motion: The EDA affirms that the proposed modifications meet the spirit and intent of the original Grand Central Townhouse Proposal based upon successful review by the Planning Commission and City Council. Attachments: Narrative, Site plan, original plat, proposed elevations EDA ACTION: Proposal: Cottages at Cralndview Tier 2 & affiliates seek to re -plat the 11 existing townhome pads and abutting outlot into 9 single family detached homes. Similar to the existing 11 vacant townhome lots, the 9 new SF lots would participate in the existing association's common elements (proportionate to the 11 lots share). Similar to typical SF homes, exterior ,& lot maintenance would be the responsibility of the homeowner. The Proposed Lots : * Proposed lot size is 45' x 70'. These lots are generally consistent with the existing townhome pads. Since the townhome pads were platted to the rear wall line, the SF lots are 7' +/- deeper to accommodate rear lot space (i.e. patio). • Proposed side yard setbacks = 5' on broth sides (10' between units) • Proposed pads / homme dimensions -- willl vary per plan, but generally 32 -35' wide X 63' +/- deep •, Proposed homes (with prelim engineering review) will likely be able to take advantage of lexisting sewer /water stubs. Photos to Right: • Top: Concept plan layout (with existing plat lines below proposed) • Middle: Concept home front elevation (color packages in earth tones to complement existing lofts & townhome buildings). Note general use of architectural accents. • Bottom: Main & 2°'d floor plans 3 r ITr� �• "���.� � +fit t i� �,� �� ���'.� � �.� ��� -�,� �" �Qaur �3 Ftsarinrd „ .... - �: oeo n rNrur. na �n U—IM G' wr* e smp�xTMan � .../ �aree _ e�w.aaezw wuwer. ro oncnee 90 " xc NAIW FL,OOE -- __.._._.......,......_,� SEC.�M�� PLOOR General Benefits: Consistent with our discussion with City staff, Flier 2 believes several benefits exist to the City & the HOA — including: • Vacant, distressed lots built & occupied • SF homes differentiate from existing product ( & limit oversupply) • Proposed lots are ,generally typical of other city lots • Completed units will more fully contribute to the Homeowners Association and City tax base. • Market based solution to distressed property not seeking outside subsidy or City participation. About The Applicant: Tier 2 Funding is a locally owned & operated real estate investment firm. Through relationships with affiliates, the company is vertically integrated to provide the following activities: land development, financing, home construction, buiidlling products, mortgage financing, & realty services. Tier 2 & its affiliates have a history of successful development & construction. The company currently owns (lots in Woodbury, Rosemount, & Prior Lake. They use this lot inventory for in -house homebuilding as well as resale to individuals or builders. In addition to multi -lot developments, they also build homes on individual lots. Photos to Right: • Top: Sample home Tier 2 /Regal in Burnsville (200 Krestwood Blvd) • Middle: Sample IhomeTier2 /Regal in Minneapolis (3310 E. 54t °' St.) • Bottom: Sample (project -12 lots in Prior Lake (Jeffer's) Next Steps : If the City is generally supportive of the proposed concept, Tier 2 will move toward the following activity: • Work with City stuff to prepare & submit a formal preliminary plat • Work with the existing Homeowners Association to address questions and facilitate the concept • See final plat approval & plan for construction start this coming March /April. , K' If the City is generally supportive of the proposed concept, Tier 2 will move toward the following activity: • Work with City stuff to prepare & submit a formal preliminary plat • Work with the existing Homeowners Association to address questions and facilitate the concept • See final plat approval & plan for construction start this coming March /April. Cottalges at Grand'view Concept Overviiew Nov. 5'h, 2012 Summary of Request: As the City is aware, portions of the Grand Central Loft project has been distressed for some time. This past summer, Tier 2 & its affiliates contracted 11 finished, developed townhome lots abutting the Grand Central Lofts project. Over the past 2 months, Tier 2 has met several times with City staff to review & discuss the proposed concept of re-plating the property to 9 single family detached lots. Tier 2. seeks general feedback in support of the concept. If provided, the intent is to work with City staff & the HOA to move toward a formal application for re -plat of the property. Existing Conditions : Separate from the condo/loft portion of the original project, 21 townhome pads were approved & platted. Of these 10 townJhomes were built prior to the remaining 11 pads falling into a distressed status. Due to dramatic shifts in market demand & overall conditions these pads have sat vacant for several years. Given market conditions, Vocation, demographics, & area supply/demand, it is unlikely the market will support construction of additional attached townhome iunits in the foreseeable future on this site. Photsos to Right : • Top: Aerial view of project area • Middle: Existing 4 unit building Bottom: Existing 2 unit building 1 f s 11"JI 11,11 r I I DINING RM I I I I I LIVING ROOMI I I . I I I--------- - - - --' _ II (I �t ;,.:..::. KITCHEN - t --_ t t FA PIUCIR R n 1 j EOYI=R, ilt 1 I, LAUN ' DEN G ENTRY - 11 PORCH GARAGE r- - - - - - - - - - - - - 1 f 1 I 1 I 4 1 I MAIN FLOOR PLAN. SECOND FLOOD; PLAN COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) Meeting of November 5, 2012 AGENDA SECTION: Business Item ORIGINATINIG EXECUTIVE NO:5 DEPARTMENT: EDA DIRECTOR APPROVAL Aor ITEM: Scattered Site Real Estate RFP's BY: Sheila Car°tney BY: DATE: October 23, 2012 BACKGROUND: At the August 2012 EDA tweeting the EDA directed staff to prepare an RFP for real estate services for the scattered site lots. Staff prepared the RFP and sent it to the St. Paul Association of Realtors and advertised oil the City's webpage. To date 9 responses have been received. Below is a summary of the responses in no particular order. 1) Bruce Magnuson Edina Realty, licensed rcaltor since 2005. *Has lived in Columbia Heights for 42 years and has participated in several civil activities. • Sold 15 properties in Columbia Heights • Magnuson is also collaborating with a developer to purchase the lots for development • Marketing Plan. • MLS listing • Sign installation • Listing on Facebook and Craigs List • Listing on EdinaRealty.com then fed to other websites o Website stats emailed to seller o Review trends in marketplace • Fee Schedule 0 7.3% per lot 0 23% to selling broker 0 10% Total 2) Darcy Gedney - Peoples Realty, licensed realtor since 2002. • Has worked and lived in Anoka County for over 20 years • Marketing Plan • MLS listing • Sign installation • Advertise all properties on multiple wbpages • Communication is key • Fee Schedule 0 4.5% per lot (total) 0 2.7% commission to buyer o Administration fee of $250 per closing 3) Jason Borowitz - fis rMLS Realty, licensed realtor since 2001. *Has worked in Anoka County for 7 years • Marketing Plan • MLS listing • 'Sign installation • Real Estate Magazine • Provide a marketing report every 21 days • Fee Schedule 0 5'% Per lot or minimum of $2,000 0 15% per lot or $1,000 minimuun to cooperating broker 4) David Bichanga — Re /Max Results- Klick'Team, Reo Group, licensed since 2005 • Has sold 4 single family homes in Columbia Heights and 9 in Anoka County *Has experience with governmental agencies *Marketing Plan o MLS listing o Internet exposure on Google and Yahoo a Personal promotion to other agents o Sign installation o Advertise in local Newspaper . Fee Schedule 0 3% of the lot price or ininimum of $1000 5) Myrna Bourcy — Re /Max Results, licensed since 1991 • Re /Max is the number one real estate seller in Anoka County • Marketing Plan • MLS listing • Sign Installation • Fee Schedule o 8% per lot 6) Eric Young — Edina Realty /Young Real Estate Inc., licensed since 2004 • Worked with a builder who has built and sold 4 new single family hoines in the last five years in Columbia Heights *Realtor for Grand Central Lofts and Parkside Village • Past experience working with governmental entities • Marketing Plan o MLS listing o www.columbial- leiglitsRealty.com o Listing on other webpages • Fee Schedule 0 4.7% of sales price of the lot 7) Chris Kimball — Best Value Real Estate Inc., licensed since 1987 • Columbia Heights resident for 15 years • Owner and Vice President of Vanderbilt Homes Inc., ,a licensed home builder • Past experience working with governmental entities • Marketing Plan • MLS listing • Sign installation *Fee Schedule • Using a co -op broker, a commission of 5'% would be charged, Best Value to offer a 2.7% buyer - broker commission and retaining 2.3% • Not a co -op transaction and Best Value represents both buyer and seller, a 4% commission would be applicable. S ArneriBid — Auctioneers • Auction properties on November 30 "' 2 Scattered Site RFP •Estimated selling price of lots range from $6,000424,10100 • Marketing Plan • Sign installation • Print media and direct mailing • Digital media • Fee Schedule o Marketing Plan: $4,718.98 0 10% buyer's premium added to high bid and becomes part of the total purchase price AmeriBid retains the 101% 9) Patti Ann Kaspe — Exit Realty Nexus, license since 2005 • Experience in Anoka County • Marketing flan o MLS listing o Buildhere.us magazine o Stand -alone website o Sign installation o Various other internet pages • Fee Schedule o Listing agent services $700 per lot o Regulatory Compliance Broker Admin fee $395 per lot o Buyer Broker or Bayer Agent compensation 2.5% of gross lot sale price Staff suggests that the EDA narrow down the candidates to three and conduct interviews at the next EDA meeting. Staff recommends Bruce Magnuson, Edina Realty; Eric Young, Edina Realty /Young Real Estate Inc.; and Chris Kimball, Best Value Real Estate Inc. All three of these candidates have experience in Columbia Heights, with builders and government. All RFP''s received are available in the Community Development office for review, because of the quantity and documentation type staff is not including the RPF's in the packet. RE, ECOMMENDATION Staff recommends that the EDA narrow clown the candidates to three and conduct . interviews at a later EDA meeting. Staff recommends Bruce Magnuson, Edina Realty; Eric Young, Edina Realty /Young Real Estate Inc.; and Chris Kimball, Best Value Real Estate Inc. RECOMMENDED MOTION: Move to authorize staff to schedule interviews for the December 3, 2012 EDA meeting with Bruce Magnuson, Edina Realty; Eric Young, Edina Realty /Young Real Estate Inc.; and Chris Kimball, Best Value Real Estate Inc. EDA AC's I CN : 3 Scattered Site R P COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) Meeting of: November 5,a 2012 AGENDA SECTION: Business Items ORIGINATING EXECUTIVE NO:6 DEPARTMENT: EDA DIRECTOR APPROVAL ITEM: Donation 666 40 "' Ave — Resolution 2012 -15 BY: Sheila Cartney BY: x y - DATE: October 24, 2012 BACKGROUND: In late 2008 the Mayor received a letter from Michael Thoennes, property owner of 666 40"' inquiring if the City would be interested in receiving this property as a donation. Since receipt of that letter (attached) staff has worked with Thoennes' attorney Charles Pashke on obtaining ownership documents. It wasn't turtil September 2012 that those documents were presented to staff. The property is zoned Limited Business and is vacant. In August 2011, Fire Department staff secured the property as it had been broken into and revealed that water was turned on and flooded the basernent. The Building Official posted the property as hazardous in September 2011, In the meantime the subject property has continued to physically decline and staff recommends demolition. This property has historically been used as a "cut- through" to Huset Park, staff suggests that the city use this property as an informal access to the park once the demolition is complete. This property was previously used as a dental laboratory; therefore staff recommends that before the EDA accept the donation a pre demolition survey be conducted on the site to see if there are any unforeseen contaminants. Staff also recommends using the City's attorney to draft the purchase agreement and the Quick Claim Deed. It is anticipated that the survey and demolition work will cost approximately $ 10,000.00 and will be funded through fund 376 (C8 TIF district). RECOMMENDATION: Staff recommends the EDA accept the donation of 666 40`x' Ave as long as there are no major contaminants revealed in the pre - demolition survey. RECOMMENDED MOTION: Motion: Move to waive the reading of Resolution 2012 -15, there being ample copies available to the public. Motion: Move to approve resolution 2012 -15 authorizing acceptance of the donation of the property located at 666 40 "' Avenue Northeast in the City of Columbia Heights; furthermore allowing the City Manager to enter into any agreements for the same. Attachments: Letter elated December 23, LUW Kesolutron 1.UI2-13, t -aunty value EDA ACT']CON: EDA RESOLUTION 2012 -15 RESOLUTION AUTHORIZING THE ACCEPTANCE OF THE DONATION OF THE PROPERTY LOCATED AT 666 40Tu AVENUE NORTHEAST IN THE CITY OF COLUMBIA HEIGHTS WHEREAS, the property owner Michael Thoennes desires to donate the property (located in Columbia Heights at 666 40 °i Avenue, legal description of Lot 45 & 46 Columbia Heights Annex Subject to Easement of Record, Anoka County Minnesota; and WHEREAS, the confirmation of the desire to donate the subject property has been received by the City in a letter dated December 23, 2008; and WHEREAS, accepting the donation and rernoving the building is consistent with the FDA's 2011 -201.2 Goals and Work plan of Sustaining Residential neighborhoods; and WHEREAS, the property will be used as an informal park access to I -luset Park; and WHEREAS, the EDA is recognizing the donation through a formal resolution; and WHEREAS, Closing costs, demolition, and related costs shall be paid by fund 376. NOW TI- IEREFORE BE IT RESOLVED, that the EDA accepts the subject donation based on the fallowing: 1) All utilities are paid by the subject property owner by the date of closing 2) The EDA will be responsible for any taxes due and payable in 2013 and beyond 3) The building shall be vacant upon closing 4) Staff is authorized to prepare bids and documents for the purpose of demolition of the subject property. Passed this 5"' day of November 2012 President Peterson Attest: Shelley Hanson„ Secretary December 23, 20018 Mayor City of Columbia Heights 590 -40th Avenue NE Columbia Heights, MN 55421 Dear Mayor Peterson: For many years I have owned the dental laboratory property at 666 -40th Avenue NE in Columbia Heights, It is a very old building at the "T" intersection of Madison and 40th Avenue NE. The building is no longer being used by my dental laboratory. The property has served many years also as a pathway or "shortcut between Huset park and 40th Avenue NE. I am not complaining, just making an observation that the south side block is very long to get to the park via city sidewalks or streets, thus the shortcut. In any event, I am in the process of selling the (property but would consider a "gifting of the land and building" to the City of Columbia Heights. Basically there would be no strings attached except the transfer of the property and building as is after I move the equipment out. Do you think there would be any interest of the park commission or City in this kind of proposition? The timeframe would probably be in the spring/early summer. ;. I fir Sincerely, Michael J. Thoennes, DDS Page 1 of 1 Wciconts to LhO NRIU MIC D1' Anoka County /� ivlik117u'39rtt (1 )l�,r Y Property Detains Values Pr�rperty ID 35 30 24 -42 -0499 Situs Address _ b66 40TH AVE E COLUMBIA HEIGHTS, MN 55421 -0000 Developed by Manatron, Inc. 02010 All rights reserved. Version 1.0.4581.14247 https;llstarlite.co.anoka. nti. usIO 30cgv2tLie0zcd25lc2lge55 )lparcelinfo.aspx 9/28/2012 COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) Meeting of. November 5, 2012 AGENDA SECTION: Business items ORIGINATING EXECUTIVE NO: 7 DEPARTM ENT: EDA DIRECTOR APPROVAL I`T'EM: Anoka County Levy BY: Scott Clark BY: DATE: October 29, 2012 BACKGROUND: On August b, 2012 staff presented an in- depth. EDA letter to the Commissioners, which included. Historical documents, regarding the stib�jcct issue. Based on the rules of engagement with Anoka County, if there is no formal action to deny the next five -year funding cycle, then the levy is autornatically continued. If the EDA agrees to continue, staff recommends that the City Council affirm the same through a Council resolution. At the last meeting it was asked as to How we can use these fluids. Within the most general perspective, arty activity that the City's EDA or I -IRA can legally enter into by means of State law, is an eligible activity. This means that any bonafide economic development program, marketing, housing programs, redevelopment activities can be funded. The funds cannot be used for general governmental expenses and salaries. The only caveat is that the Anoka County HRA, which oversees these activities, must agree to the same that these are "authorized" activities. In other words, their purview is not policy but eligibility. More specifically, we could use these funds to expand into programs that we do not have such as a business retention loan ( this was all activity that CDBG funds were applied for and not approved in 201.2), the City could look at a different rehab loan program which could include more residents, the EDA could buy and lease some of the small existing commercial buildings for specific uses, the money could be saved towards a major redevelopment land purchase, some cities have moved towards having the EDA fund small business consultants for advice, etc. Staff is not recommending any of these programs at this time, but the list is to gain a flavor of activities that the City could expand into and have a resource to match the expenditure. From an economic development perspective, this city is going through a major shift, moving from a past industrial /service base to a pure service based economy. A significant amount of new businesses are first time start -ups, and time and energy should be spent on how we ensure their success and equally, to identify other opportunities that the market is not presently recognizing (such as the restatrr •ant /art /entertairatttent success of northeast Minneapolis). Lastly, as stated before, these dollars should be viewed in terms of both the now and the future, This levy provides another mechanists to buildd sorne additional sources of revenue for future needs as the challenges of all aging community will guarantee that additional resources will be necessary to bolster residential and /or commercial neighborhoods. RECOMMENDATION: Staff recommends continuation of (lie Anoka County Levy for an additional five years, RECOMMENDED MOTION: Motion: Move to authorize staff to submit a letter of acknowledgement to Anoka County that the City will continue with the Anoka County Economic Development Levy. Attac inents: City Comity Resditition 2007 -156, EDA Letters of August 28' 2007 and August 6, 2012, Anoka County Levy Fund 202 EDA ACTION: COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) Meeting of: August 6, 2012 AGENDA SECTION: Business Items ORIGINATING EXECUTIVE NO:9 DEPARTMENT: EDA DIRECTOR APPROVAL ITEM: Anoka County Levy BY: Scott Clark BY: DATE: July 22, 2012 BACKGROUND: In 2007 both the Economic Development. Authority and the City Council entered into discussions and approved participating with the Anoka County Housing and Redevelopment Authority, for five years, to levy a tax for economic development purposes. Attached is the August 28, 2007 EDA report and City Council Resolution 92007 -156 which will give the rationale for the participation. At that time, it was calculated that the total five year allocation would be approximately $1,28'5,776 minus the County's administration fee of 15% (the final net number would be $1,092,250). However, the total net anticipated allocation fronn years 2008 -2012 is only $937,524 since the levy amount is driven by State formula and is calculated based on City marketable tax value, which has decreased greatly over the past 5 years. Attached is a spread sheet showing the obligated and unobligated funds for the 2005 through 2012 allocations. The majority of the funds were previously dedicated to the purchase of the "Mady's Property" as part of a large redevelopment action, but the offer to purchase the property was rescinded by the owner. The Anoka County levy program is a rolling five year program which means that the City /EDA has to either (1) Agree to be part of the program for another five years ( years 2013- 2017 with an estimated total net allocation of $8:50,000 ($170,000 annualy) or (2) Not re -up and forfeit the opportunity to participate for the full five year cycle. The policy question for the EDA is their: desire, or not, to use this program as a future source for redevelopment, housing and/or economic development programs. The EDA has limited resources for future activities and this allocation provides another tool for activities that could be halted due to a lack of funds. From a staff perspective, the lack of currently having a specific program attached to these funds should not be a rationale for not continuing with the levy program. As the City ages, new issues and hopefully opportunities, will present themselves for public assisted reinvestment. As stated previously, these funds can't be generated at a future date nor are they characterized as grant funds that could be applied for when needed. The funds can be viewed as creating a fund balance towards future expenditures that are consistent with an aging community and match the goals of the City. Examples of future use could be purchasing or assisting in a major redevelopment effort (such as a Mady's type project) or a loan program that would leverage these funds and allow access to a greater range of income levels. According to Anoka County, if the City desires to proceed with a new five year allocation no new resolution has to be passed and the extension is automatic, If the City elects not to pursue this funding levy a letter should be forwarded regarding the same. RE, COMMENDATION — staff views that as an aging community the EDA should avail themselves to whatever funding sources that they can for future projects. As stated in the 20,07 report, if an FDA has a future project that is critical these funds can serve as an alternative to bonding, reducing the EDA "s current redevelopment funds and/or: the need to seek funding from other: sources. Many first ring suburbs have compiled significant levels of redevelopment fund balances from old tax increment districts and this City has not had that luxury, meaning that building fund balances for redevelopment efforts needs to come from whatever sources can be found. That being said staff recommends continuing with the five year program. RECOMMENDED MOTION: Motion: Move to authorize staff to submit a letter of acknowledgement to Anoka County that the City will continue with the Anoka County Economic Development Levy. Attachments: Spreadsheet of fiwnds„ 2007-156 resolution, staff report dated August 28, 2007 EDA ACTION: COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY Meeting of: August 28, '2007 AGENDA SECTION: Business Items ORIGINATING DEPARTMENT: CITY MANIAGER'S NO: 7 Community Development APPROVAL ITEM: Anoka County Housing & BY: Robert Streetar BY: Redevelopment Authority DATE: August 24, 2007 Economic Deve!Lopment Activities This memo presents EIDA Commissioners with an offer from the Anoka County Housing and Redevelopment Authority (ACHRA) to participate in ACHRA economic development activities. Commissioners are asked to make a recommendation to the City Council. If Commissioners recommend participating, the recommendation will be forwarded to the City Council at their September 10th meeting for action. If not, no further action is required. Should the City participate in the ACHRA economic development activities? BACKGROUND: Shouilld the City participate in the ACHRA Economic Development Activities? For background on the ACHRA's offer, please read the executive summary on pages 2 -4 of the Report of the Anoka County Economic (Development Exploratory Commiittee that is attached. Analysis To participate the City Council must pass a resolution to "opt in" to the ACHRA economic development activities. If the City chooses to participate, it must participate for a minimum of five years, after which time the City may choose to `opt out." Should/ the City choose to participate the ACHRA would levy a tax in Columbia Heights each year the City participated. If the City chooses not to participate it must wait five years before it may choose to "opt in. " As Commissioners know, the City is faced with many redevelopment and housing challenuges, which will continue to present themselves long into the future. Redevelopment and improving the housing stock renews, and revitalizes the City, but it requires sufficient investment of public resources. By participating, the City would have additional resources to invest in these imrortant priorities. Redevelopment projects such as 37th' and Central, 39th' and Central, anud 40 h and University could benefit from these additional resources, as federal, state and regional resources have been declining or flat. It also means the City may not have to establish as many TI F districts, or may result in TIF districts with shorter terms, thereby ensuring the new taxes from redevelopment are placed on the tax roles sooner. In addlition to increased resources for redevelopment anud housing priorities, the City could also use all or part of the levy to pay for costs related to redeveloping the Heritage Heights site for the new public safety facility and/or a community center,. For example, over the next fives years the ACHRA would probably levy a minimum of $1,021,245, or about $205,000 annually. If the City used all of the levy proceeds to reduce the annual debt service on the general obligation bonds to fund the acquisition, demolition and relocation costs required to make the site ready, the interest savings are estimated to be about $975 „000, on a 25 -year issue at 5.25%. Also, using the levy proceeds would reduce the amouint of general obligation debt, thereby preserving the city's debt capacity for other needs such as public safety„ or public works. The table Ibelow estimates the minimum and maximum the ACHRA could levy, and the cost to homeowner with a home with an estimated market valuie of $200,000. Minimum Levy` Cost ** Maximum Levy Cost" 2008 2009 2010 2011 2012 196,24 $200,166 $204,169 $208,252 $212,417 1 330.20 $30.51 $30.82 $31.13 $31.44 Total $1,021,245 $154,10 247,07 $252,014 $257,054 $262,195 $267,439 I $1,285,776 3 $38.03 $38.80 $39.19 $39,581 $194.02 *As determined by the ACHRA, * *Estimated Market Value of Home - $200,000 In summary, the ACHRA is offering the City of Columbia Heights the opportunity to participate in the ACHRA economic development activities. This could provide additional resources for redevelopment and housing related activities, as well as reduce the cost of a public safety facility and /or community center. The cost of participating is estimated to be $30 to, $40 annually. The Commissioners are asked to make a recommendation to the City Council to be acted upon at the September 10 City Council meeting. Karen Skepper, Anoka County Community Development Manager will be present to answer any questions. RECOMMENDATION: Staff recommends commissioners discuss and make a recommendation to City Council to participate or not in the ACHRA Economic Development Activities. RECOMMENDED MOTION: None Attachments EDA ACTION: CITY OF COLUMBIA HEIGHTS RESOLUTION 2007 -156 RESOLUTION OF THE CITY OF COLUMBIA HEIGHTS TO PARTICIPATE IN THE ANOKA COUNTY HOUSING AND REDEVELOPMENT AUTHORITY ECONOMIC DEVELOPMENT ACTIVITIES. WHEREAS, the City of Columbia Heights is an Anoka County municipality, and such is a rapidly growing and important segment of the Twin Cities Metropolitan Region, made up of rich variety of vital, desirable communities; and WHEREAS, the City of Columbia Heights Council members believe that the residents of Columbia Heights would realize many benefits from expansion of the Anoka County tax base, including but not limited to; the creation of local job opportunities, redeveloping certain sites withlin the City, as well as maintaining and improving the Ciity's housing stock, wider sharing of tax burden, and access to enhanced infrastructure, services, and retail and business activities, and„ WHEREAS, in order to expand the local tax base, the Anoka County Board of Commissioners has indicated an interest in fostering a regional approach to economic development in Anoka County, and, WHEREAS, in 2007 a statutorily formed) citizens exploratory committee recommended to the Board of Commissioners that the Anoka County Housing and Redevelopment Authority be granted the powers of an economic development authority„ and WHEREAS, on June 12, 2007, the Anoka County Board of Commissioners, after fulfilling the statutory requirements, did authorize their Housing and Redevelopment Authority to exercise the powers of an economic development authority, and, WHEREAS, MN Stat. 469.1082 requires that a municipality shall, declare its willingness, by resolution, to join the county in its economic development activities. NOW, THEREFORE BE IT RESOLVED, that the City of Columbia Heights does hereby declare its support of Anoka County and its countywide economic development objectives and activities, and), BE IIT FURTHER RESOLVED that the City of Columbia Heights does hereby elect to participate in Anoka County Housing and Redevelopment Authority economic development activities, ands BE IT FURTHER RESOLVED that the City of Columbia Heights does hereby elect to participate in the Anoka County 'Housing and Redevelopment Authority economic development activities to request funds to support the City's redevelopment and housing maintenance and improvement goals, and, BE IIT FURTHER RESOLVED this resolution and attachments are to be made a part of the permanent records of the City of Columbia Heights. Passed this — day of , 2007. MOTION BY: SECONDED BY: AYES: NAYS: Mayor- Gary L. Peterson Attest by: Patricia Muscovitz, Deputy Clerk /CIAP EDA Minutes Page 10 August 6, 2012 been contacted since then (option 3). Regardless of what option the EDA decides to go with staff recommends using the established guidelines for all the lots. Staff recommends the Board give approval to send out RFPs to various Realtors and see what they propose. The RFPs will ask them to submit their contacts, background, credentials and the amount of Commission they will charge to market the lots for us. uestions from members Schnnitt asked about the possibility of selling the lots to neighboring properties. Fehst said he'd rather see the lots marketed for construction of new homes. This wary we would recoup some of our expenses and it would generate more tax dollars through the years. Cartney said the lots would have to be taken out of the TIF District in order to do that. It was noted that if these empty lots were combined with another lot that it would generate much less tax dollar revenues. Nawrocki thought the goal should be to try and recuperate some of our costs associated with buying these properties and demolishing the structures. Clark said the EDA knew it would take some time to sell the lots for new construction, and we must try different ways to market them to meet this goal. Herringer asked if they would fall under the" 9 year rule" for paying taxes on therm. Clark told him, yes. Schmitt liked Option 2, plus she suggested putting up "For Sale" signs on the 4 properties we are focusing on currently. She also stated that when we get the RFD's back from the Realtors that we should be able to negotiate the amount of commission and that a list of all the lots should be included for them to market, not just the four "select" lots. The members agreed with this direction. 9. Anoka County Tax Levy Clark stated that in 2007 both the Economic Development Authority and the City Council entered into discussions and approved participating with the Anoka County Housing and Redevelopment Authority, for five years, to levy a tax for economic development purposes. Enclosed in the packet was the August 28, 2007 EDA report and City Council Resolution #2007 -156 which will give the rationale for the participation. At that time, it was calculated that the total five year allocation would be approximately $1,285,776 minus the County's administration fee of 15% (the final net number would be $1,092,250). However, the total net anticipated allocation from years 2008 -2012 is only $937,524 since the levy amount is driven by State formula and is calculated based on City marketable tax value, which has decreased greatly over the past 5 years. Also enclosed was a spread sheet showing the obligated and unobligated funds for the 2008 through 2012 allocations. The majority of the funds were previously dedicated to the purchase of the "toady's Property" as part of a large redevelopment action, but the offer to purchase the property was rescinded by the owner. EDA Minutes Page 11 August 6, 2012 The Anoka County levy program is a rolling five year program which means that the City /EDA has to either (1) Agree to be part of the program for another five years (years 2013- 2017 with an estimated total net allocation of $850,000 ($170,000 annually) or (2) Not re -up and forfeit the opportunity to participate for the full five year cycle. The policy question for the EDA is whether or not to use this program as a future source for redevelopment,, housing and /or economic development programs. The EDA has limited resources for future activities and this allocation provides another tool for activities that could otherwise be halted due to a lack of funds. From a staff perspective, the lack of a specific program attached to these funds should not be a rationale for discontinuing the levy program. As the City ages, new issues and hopefully opportunities, will present themselves for public assisted reinvestment. As stated previously, these funds can't be generated at a future date, nor are they characterized as grant funds that could be applied for when needed. The funds can be viewed as a means to create a fund balance towards future expenditures that are consistent with an aging community and match the goals of the City. Examples of future use could be purchasing or assisting in a major redevelopirient effort (such as a. Mady's type project) or a loan program that would leverage these funds and allow access to a greater range of income levels. According to Anoka County, if the City desires to proceed with a new five year allocation no new resolution has to be passed and the extension is automatic. If the City elects not to pursue this funding levy a letter should be forwarded regarding the same. Staff views that as an aging community the EDA should avail themselves to whatever funding sources that they can for future projects. As stated in the 2007 report, if an EDA has a future project that is critical these funds can serve as an alternative to bonding, reducing the EDA's current redevelopment funds and /or the need to seek funding from other sources. Many first ring suburbs have cornpiled significant levels of redevelopment fund balances from old tax increment districts and this City has not had that luxury, meaning that building fund balances for redevelopment efforts needs to come from whatever sources can be found. That being said staff recommends continuing with the five year prograrn. Questions from Members Nawrocki strongly opposed continuing with this program. He feels this is a deceptive way to collect additional tax dollars from our residents and that $125,000 is taken off the top by Anoka County, He said if additional finds are warranted for redevelopment efforts then raise the taxes to do so, and not go through this process which hands over funds to the County that could be used by the City. Fehst agrees with Nawrocki to a point on how it's done. however, we have no other way to get money for redevelopment projects, and if we don't have fuunds in place, then we cannot take action on properties that may become available to us for improvement. There was a brief discussion about the options we have to increase levy amounts that would provide funds without continuing with this particular program. EDA Minutes Page 12 August 6, 2012 Diehm questioned whether we will still have an HRA levy once Parkview Villa is sold. Clark stated that, yes there will still be an HRA levy and a HRA Commission since we deal with other housing issues and programs other than just Parkview Villa. The levy structure won't be changed after the sale. Diehm then asked how soon we have to make a decision on this matter. Clark told her by October. She then suggested tabling this until the next meeting so that more information can be reviewed in regards to potential target areas, additional tax levy options, and current fund balances. Malian by Schmitt, seconded by Herrin er, to bring this item back at the September meeting. All ayes. MOTION PASSED. 10, 828 40"' Avenue Tax Exemption Status In 1999 the EDA purchased property at 828 41 "' Avc with an old TV repair building ovi the lot. In 2001 the building was torn down leaving a vacant green space. Community Development Block. Grant (CDBG) money was used for the purchase and demolition. The purchase price was $72,246.50 and demolition was $7,117.20 a total of $79,363.70 of CDBG funds used. After purchase of the lot, the property was placed into tax exempt status.. For the past three years the subject lot has been used as a community garden and in 2011 the EDA turned down a proposal to sell the subject lot for a parking lot proposal for an adjacent accounting firm. It was also at that time that Anoka County explained national objective needs to be met or the city would need to pay back some of the CDBG funds (market value not the total funds used). Based oil a letter dated January 23, 2012 from Anoka County, as of December 31, 2012 . the subject lot will no longer be tax exempt. State Statute 272.02 Subd. 39 states "The holding of property by a political subdivision of the state for later resale for economic developnnent purposes shall be considered a public purpose in accordance with subdivision 8 for a period not to exceed nine years.." Anoka County 2013 value is $31,600 resulting in 2013 taxes of $659 in which $309 would come back to the City. The EDA has three options: 1. Start marketing this site for redevelopment and pay taxes a. If sold for redevelopment CDBG national objects will need to be met or the market value will have to be paid back to Anoka County. 2. Keep the site as is and start paying taxes on the site until ready to market. 3. Dedicate the lot as park land to permanently use as a community garden or green space, which will maintain the tax exempt status. However, this will trigger the need to pay back CDBG funds to Anoka County ($31,600). Due to the small net amount in taxes plus the cost to repay CDBG funds, staff recommends option #2 using fund 420. Questions from members: Peterson agrees with staff's recommendation to go with option #2. Tlawrocki said it was originally intended to be used by the Library. 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