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HomeMy WebLinkAbout04-27-1998 EDA CITY OF MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY MONDAY,APRIL 27, 1998 Meeting No.,54' AGENDA ROLL CALL:President McCarty,Vice President Koopmeiners, Commissioner Gunn, Commissioner Quick, Commissioner Stigney 1. AGENDA ADDITIONS 2. APPROVAL OF MINUTES March 23, 1998 -EDA Minutes 3. SPECIAL ORDER OF BUSINESS • None • 4. CONSENT AGENDA None 5. COUNCIL BUSINESS A. Consideration of Resolution No. 98-EDA-89 approving the expenditure of tax increment funds for the promotion and implementation of a"Home Improvement Fair." B. Consideration of Resolution No. 98-EDA-90 approving the application for the "Community Fix-up Fund"program offered through the Minnesota Housing • Finance.Agency • 6. REPORTS A. Status of Housing Replacement Program Projects/Properties 7. ADJOURNMENT 1 PROCEEDINGS OF THE MOUNDS VIEW 2 ECONOMIC DEVELOPMENT AUTHORITY 3 4 Meeting No. 54 5 Apri113, 1998 6 Mounds View City Hall • 7 2401 Hwy. 10,Mounds View MN 55112 8 *********************************************************************************** 9. 10 CALL TO ORDER 11 12 The Economic Development Authority was called to order by Vice President Koopmeiners at 7:46 p.m.on 13 Apri113, 1998. 14 15 - ROLL CALL 16 17 MEMBERS PRESENT: Sherry Gunn,Gary Quick,Roger.Stigney,Roger Koopmeiners, Clerk 18 Administrator Chuck Whiting,Community Development Director Rick Jopke, Housing Inspector Steve 19 Dorgan, and City Attorney Bob Long. 20 21 MEMBERS ABSENT: Duane McCarty 22 23 OTHERS PRESENT: None 24 25 1. AGENDA ADDITIONS: 26 27 None. 28 29 2. APPROVAL OF MINUTES: 30 31 March 9, 1998-EDA Meeting Minutes 32 33 MOTION/SECOND: Stigney/Quick to approve the minutes of the EDA Meeting on March 9, 1998 as 34 presented in writing. 35 36 VOTE: 4 ayes 0 nays Motion Carried 37 38 3. SPECIAL ORDER OF BUSINESS: 39 40 None. 41 42 4. CONSENT AGENDA: • 43 44 None. 45 46 S. COMMISSION BUSINESS: . 47 48 A. Consideration of Resolution No. 98-EDA87,Approving the Expenditure of Tax Increment Funds 49 for the Appraisal of 6991 Pleasant View Drive for consideration of purchase by the EDA. 50 51 Mr.Dorgan,Housing Inspector explained that the city was recently approached by Joe Witzman,owner of 52 6991 Pleasant View Drive,in regard to the city's participation in the Housing Replacement Program. Staff 53 has conducted an inspection of the property and determined that the property meets the requirements of the 54 program. tiNAPPRO\l' EDA Meeting#54 April 13, 1998 Page 2 1 . 2 The property at 6991 Pleasant View Drive,is a very small home with a larger garage. It stands on a very . 3 large lot(100 feet wide X approximately 400 feet deep). Resolution 98-EDA87 would authorize for the 4 appraisal of the property and authorize the staff to begin negotiations for the purchase of the property. 5 6 Commissioner Stigney asked if it is the general practice to obtain an appraisal on the property. 7 8 Mr.Dorgan explained that an appraisal has always been done of property prior to the city's purchase. 9 10 A question was asked as to the plans for the existing garage on the property. Mr.Dorgan explained that 11 the garage could possibly be used,however probably a more realistic option would be to have the garage 12 moved from the site to make the entire site available. 13 14 Commissioner Quick asked to abstain from the vote as he is a co-worker and personal friend of Mr. 15 Witzman. 16 17 MOTION/SECOND: Gunn/Stigney to approve Resolution No.98-EDA-87,Approving the Expenditure of 18 Tax Increment Funds for the Appraisal of 6991 Pleasant View Drive for consideration of purchase by the 19 EDA. 20 21 VOTE: 3 ayes 1 Abstain(Quick) Motion Carried 22 23 B. Consideration of Resolution No.98-EDA88,Amending the Purchase Agreement with Preferred 24 Builders for 8365 Spring Lake Road Clarifying the Legal Description of the Lot and Utility 25 Easements. 26 27 Mr.Dorgan explained that this item was brought to staffs attention several weeks ago when Preferred 28 Builders attempted to obtain a building permit and it was discovered that the sale of the property was not 29 yet recorded. It was found that the legal description of the property on the Purchase Agreement was • 30 inadequate and that an additional 50 feet needed to be added to the legal description. Additionally,an 31 easement on the property was established at 10 feet around the entire property,where a five foot easement . 32 was adequate along the north property line of the lot. 33 34 MOTION/SECOND: Quick/Gunn to approve Resolution No.98-EDA88, Amending the Purchase 35 Agreement with Preferred Builders for 8365 Spring Lake Road clarifying the legal description of the lot 36 and utility easements. 37 • 38 VOTE: 4 ayes 0 nays Motion Carried. 39 40 6. REPORTS: • 41 42 Report of EDA Board Members: 43 44 Report of Vice President Koopmeiners: No report. 45 46 Report of Commissioners: 47 0 48 Commissioner Quick: No report. ,pro UNAPPRO V ICU EDA Meeting#54 Apri113, 1998 Page 3 1 Commissioner Stigney: No report. • 2 3 Commissioner Gunn: No report. 4 5 Report of Community Development Director: Mr.Jopke explained that he has been going through an 6 interview process to hire a new Economic Development Coordinator to replace Cathy Bennett. After the 7 interview process, Mr.Jopke spoke with a gentleman named Kevin Carroll about accepting the position at 8 a Step 1,with a beginning salary of$35,000. Mr.Carroll has a law degree and was in private practice for 9 16 years and during that time developed an interest in Economic Development. He has experience on a 10 number of Boards and appears to be a very good candidate for the position. 11 12 MOTION/SECOND: Quick/Gunn to formally offer the Economic Development Coordinator position to 13 Mr.Kevin Carroll,pending a satisfactory background check. 14 15 Commissioner Stigney asked if the position would be funded with Tax Increment Financing. 16 17 Mr.Jopke responded in the affirmative. 18 19 VOTE: 4 ayes 0 nays Motion Carried 20 21 Report of Treasurer: No report. 22 23 Report of Attorney: No report. 24 25 7. ADJOURNMENT: 26 • 27 MOTION/SECOND: Stigney/Gunn to adjourn the meeting at 8:00 p.m. 28 29 VOTE: 4 ayes 0 nays Motion Carried 30 31 Respectfully submitted, 32 33 34 Tamara D. Saeflce • 35 Recording Secretary 36 37 . 38 39 40 41 • 42 43 . AppRovED 1 PROCEEDINGS OF THE MOUNDS VIEW 2 .. ECONOMIC DEVELOPMENT AUTHORITY 3 4 Meeting No. 52 5 March 9, 1998 6 Mounds View City Hall 7 2401 Hwy. 10,Mounds View MN 55112 8 *********************************************************************************** 9 10 CALL TO ORDER 11 12 The Economic Development Authority was called to order by President McCarty at 9:45 p.m.on March 9, 13 1998. 14 15 ROLL CALL 16 17 MEMBERS PRESENT: Duane McCarty,Sherry Gunn,Gary Quick,Roger Stigney,Roger Koopmeiners, 18 Clerk Administrator Chuck Whiting,Community Development Director Rick Jopke, and City Attorney 19 Scott Riggs. 20 21 OTHERS PRESENT: None 22 23 L AGENDA ADDITIONS: .24 . . 25 None. 26 27 2. APPROVAL OF MINUTES: 28 • 29 February 23, 1998-EDA Meeting Minutes 30 31 MOTION/SECOND: Koopmeiners/Stigney to approve the minutes of the EDA Meeting on February 23, 32 1998 as presented in writing. 33 34 VOTE: 5 ayes 0 nays Motion Carried 35 36 3. SPECIAL ORDER OF BUSINESS: 37 38 None. 39 40 4. CONSENT AGENDA: 41 42 S: COMMISSION BUSINESS: 43 44 A. Consideration of Resolution No. 98-EDA83 Approving Amendments to the Housing Replacement 45 Program. 46 47 . MOTION/SECOND: Stigney/Quick to Approve Resolution No.98-EDA83,Approving Amendments to 48 the Housing Replacement Program. 49 50 VOTE: 5 ayes 0 nays Motion Carried 51 52 B. Consideration of Resolution NO.98-EDA86,Approving Tax Increment Assistance and 53 Authorizing the Negotiation of a Development Assistance Agreement with the Silverview Estates,Inc. 54 • EDA Meeting#52 - March 9, 1998PPIOVEll gPa e 2 1 Mr.Jopke,Community Development Director,explained that Silverview Estates,Inc.is requesting tax 2 increment assistance in the amount of$1,070,000 to help finance their project on the southeast corner of 3 Silver Lake Road and Highway 10. He noted that the proposal is consistent with the city's tax increment 4 policy and it is staffs recommendation that Resolution No.98-EDA86 be approved. 5 6 MOTION/SECOND: Koopmeiners/Quick to approve Resolution No.98-EDA86,Approving Tax 7 Increment Assistance and Authorizing the Negotiation of a Development Assistance Agreement with the 8 Silverview Estates,Inc. 9 10 VOTE: 5 ayes 0 nays Motion Carried 11 12 6. REPORTS: 13 • 14 Report of EDA Board Members: 15 16 Report of President McCarty: No report. • 17 18 Report of Vice President Koopmeiners: No report. 19 20 Report of Commissioners: 21 22 Commissioner Quick: No report. 23 • 24 Commissioner Stigney: No report. 25 26 Report of Executive Director: No report. 27 28 Report of Treasurer: No report. 29 30 Report of Attorney: No report. 31 32 7. ADJOURNMENT: 33 34 MOTION/SECOND:Koopmeiners/Quick to adjourn the meeting at 9:55 p.m. 35 36 VOTE: 5 ayes 0 nays Motion Carried 37 38 Respectfully submitted, 39 40 41 Tamara D. Saefke 42 Recording Secretary 43 44 45 46 • 47 48 • • Item No. 5 A • Staff Report No. Meeting Date: 4-27-98 Type of Business: EDAB WK:Work Session;PH:Public Hearing; CA:Consent Agenda;EDAB:EDA Business Mounds View Economic Development Authority Staff Re port To: Mounds View Economic Development Authority From: Steve Dorgan,Housing Inspector ' Item Title/Subject: Appropriation of TIF funds for"Home Improvement Fair" Date of Report: April 24, 1998 • SUMMARY At the EDC meeting on April 23, 1998,the commission approved a resolution recommending the EDA appropriate$2,500 in tax increment funds to promote and implement a"Home Improvement Fair"to occur in the spring of 1999.Because of the cities aging housing stock, it is imperative that we encourage reinvestment to avoid blight and encourage the upgrade and quality of housing in the_city. Numerous communities throughout the metropolitan area organize an annual fair which features local contractors, financial institutions and other various exhibits relating to home remodeling and improvement. Cities which have held fairs indicate investments in fairs are a break even venture with revenue coming from the rental of booths to venders. A"Home Improvement Fair" sponsored by the city would not only promote home improvement and redevelopment within the city,but may also be used to promote other city services as well. As an example,the fair could be held at the new Community Center to kick off it's opening. The fair may also be used as a venue for marketing a city sponsored loan program, as well as other housing programs and funding sources to promote home improvement and redevelopment of housing within the community. ACTION TO BE CONSIDERED • Adopt EDA Resolution No.98-EDA-90 approving the appropriation of$2,500 in tax increment funds to promote and implement a"Home Improvement Fair"to occur in the spring of 1999. Steve Dorgan,Housmg Inspector 717-4023 • Attachments: Exhibit A- EDC Resolution No.98-EDC-22 Exhibit B- Resolution No. 98-EDA-90 N:\DATA\GROUPS\ECONDEVIEDA EDOHOMEFAnt\EDA4 27.MEM EXHIBIT A MOUNDS VIEW ECONOMIC DEVELOPMENT COMMISSION • RESOLUTION NO. 98-EDC-22 CITY OF MOUNDS VIEW COUNTY OF RAMSEY • . STATE OF MINNESOTA RESOLUTION RECOMMENDING THE ECONOMIC DEVELOPMENT AUTHORITY'S CONSIDERATION TO APPROPRIATE TAX INCREMENT FINANCING TO PROMOTE AND IMPLEMENT A "HOME IMPROVEMENT FAIR" WHEREAS, due to the age and condition of the city'shousing stock it is important to encourage reinvestment in the community to avoid blight and to upgrade the quality, livability and marketability of the housing stock; and WHEREAS, a "Home Improvement Fair"would work to promote home improvement and remodeling of the city's housing by providing resources needed for homeowners to improve their home; and . WHEREAS, a "Home Improvement Fair"would be a venue for marketing city sponsored housing programs as well as other housing programs and funding sources to Mounds View homeowners; and WHEREAS, cities which have held home improvement fairs indicate investments in fairs are a breakeven venture with revenue coming from the rental of booths; and WHEREAS, the Economic Development Commission's mission includes acting as an advisor to the Economic Development Authority with regards to economic matters; and WHEREAS, the Economic Development Commission finds that the use of tax increment . financing to promote and implement a"Home Improvement Fair" for the spring of 1999 is consistent with the City's tax increment policies. NOW THEREFORE, BE IT RESOLVED that the Economic Development Commission of the . City of Mounds View hereby recommends that the Economic Development Authority approve $2,500 of tax increment funds to develop a"Home Improvement Fair"for the spring of 1999. Adopted this 23th day of April, 1998. ATTEST: Chair • (SEAL) • City Administr for EXHIBIT B RESOLUTION NO. 98-EDA-90 MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY • COUNTY OF RAMSEY STATE OF MINNESOTA RESOLUTION APPROVING APPLICATION FOR"COMMUNITY FIX UP FUND"PROGRAM OFFERED RED THROUGH THE MINNESOTA HOUSING FINANCE AGENCY WHEREAS,due to the age and condition of the city's housing stock it is important to encourage reinvestment in the community to avoid blight and to upgrade the quality of the housing stock;and • WHEREAS,the city may apply to the MHFA for participation in the"Community Fix-up Fund" program to target a specific area of housing within the community. Under this program,homeowners with an annual adjusted household income of$69,920 or less may access below market rate home improvement loans. Where currently,Mounds View homeowners with an adjusted annual income of only$49,000 or less may access below market rate home improvement loans through MHFA. Participation in the program will increase , • the availability of below market rate loans to Mounds View homeowners. WHEREAS,the Economic Development Authority has determined that the specific target area of housing need required for proposal to the MHFA"Community Fix-up Fund"program are homes built before 1965. In part,because over 50%of homes built in the city were built before 1965 and that these homes predominantly show the greatest need for home improvement and revitalization;and WHEREAS,the Economic Development Authority fmds that by applying for the"Community Fix-up Fund"program,more Mounds View homeowners may become eligible for home improvement loans at a reduced interest rate. NOW THEREFORE,BE IT RESOLVED that the Economic Development Authority of the City of Mounds View hereby recommends application to the MHFA for the"Community Fix-up Fund"program. • Adopted this 27th day of April, 1998. • Duane McCarty,President • ATTEST: Charles S.Whiting,Executive Director • • • N:\DATA\GROUPS\ECONDEV\EDA EDC HOMEFAIR\EDA4 27.RES • Item No. 5 • Staff Report No. Meeting Date: 4-27-98 Type of Business: EDAB • WK:Work Session;PH:Public Hearing; CA:Consent Agenda;EDAB:EDA Business Mounds View Economic Development Authority Staff Re ort Tof Mounds View Economic Development Authority • • From: ' Steve Dorgan,Housing Inspector Item Title/Subject: Application for MHFA"Community Fix-up Fund" Program Date of Report: April 24, 1998 SUMMARY • At the EDC meeting on April 23, 1998,the commission approved a resolution reccomending application to the MHFA for the"Community Fix-up Fund"program. Staff has been working with the EDC and participating lenders to evaluate programs which would provide below market rate loans to Mounds View homeowners. At this time,homeowners in the city have access to below market rate home improvement loans through the Minnesota Housing Finance Agency(MHFA)"Fix-up Fund"program with interest rates ranging between 2%-8%for homeowners with an adjusted annual household income of$49,000 or less. In addition to these loans,the city also has an opportunity to apply to the MHFA for participation in the "Community Fix-up Fund"program. Under this program the adjusted annual household income is increased to$69,920 for qualifying homes. However,as part of the program application,the city must identify a specific need/objective(i.e.homes built before 1965). The city should apply for these funds at this time so that MHFA can process the application and make the funds available. MHFA program applications take approximately 30 days to process. ACTION TO BE CONSIDERED Adopt EDA Resolution No. 98-EDA-89 approving the application to the MHFA for participation in the "Community Fix-up Fund"program. • • Steve organ, o mg Inspector 717-4023 Attachments: Exhibit A - EDC Resolution No. 98-EDC-23 Exhibit B - Resolution No. 98-EDA-89 EXHIBIT A MOUNDS VIEW ECONOMIC DEVELOPMENT COMMISSION RESOLUTION NO. 98-EDC-23 CITY OF MOUNDS VIEW • COUNTY OF RAMSEY STATE OF MINNESOTA • RESOLUTION RECOMMENDING THE ECONOMIC DEVELOPMENT AUTHORITY'S CONSIDERATION TO APPLY FOR THE "COMMUNITY FIX-UP FUND" PROGRAM OFFERED THROUGH THE MINNESOTA HOUSING FINANCE AGENCY WHEREAS, due to the age and condition of the city's housing stock it is important to encourage reinvestment in the community to avoid blight and to upgrade the quality, livability and marketability of the housing stock; and • WHEREAS, the city may apply to the MHFA for participation in the"Community Fix-up Fund" program to target a specific area of housing within the community. Under this program, the annual adjusted household income limit for homeowners within a qualifying community is increased from $49,000 to $69,920, thereby increasing the availability of loans at a lower interest rate to Mounds View homeowners. In addition, the city will significantly reduce the interest rate by providing a subsidy for a proposed loan program to further encourage participation; and • WHEREAS, the EDC has determined that the specific target area of housing need required for proposal for the "Community Fix-up Fund" program are homes built before 1965. In part, because over 50% of homes built in the city were built before 1965 and that these homes predominantly show the greatest need for home improvement and revitalization; and WHEREAS, the Economic Development Commission finds that by applying for the"Community Fix-up Fund" program, more Mounds View homeowners may become eligible for home improvement loans at a reduced interest rate. NOW THEREFORE, BE IT RESOLVED that the Economic Development Commission of the City of Mounds View hereby recommends that the Economic Development Authority approve application to the MHFA for the"Community Fix-up Fund".program as part of a city sponsored home improvement loan subsidy program. • Adopted this 23th day of April, 1998. • • ATTEST: Chair (SEAL) IT • (,-).0A;(. . City Administor EXHIBIT B • RESOLUTION NO. 98-EDA-89 MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY COUNTY OF RAMSEY STATE OF MINNESOTA RESOLUTION APPROVING APPLICATION FOR"COMMUNITY FIX UP FUND"PROGRAM OFFERED THROUGH THE MINNESOTA HOUSING FINANCE AGENCY WHEREAS,due to the ageand condition of the city's housing stock it is important to encourage reinvestment in the community to avoid blight and to upgrade the quality of the housing stock; and WHEREAS,the city may apply to the MHFA for participation in the"Community Fix-up Fund" program to target a specific area of housing within the community. Under this program,homeowners with an annual adjusted household income of$69,920 or less may access below market rate home improvement loans. Where currently,Mounds View homeowners with an adjusted annual income of only$49,000 or less may access below market rate home improvement loans through MHFA. Participation in the program will increase the availability of below market rate loans to Mounds View homeowners;and WHEREAS,the Economic Development Authority has determined that the specific target area of housing need required for proposal to the MHFA"Community Fix-up Fund"program are homes built before 1965. In part,because over 50%of homes built in the city were built before 1965 and that these homes predominantly show the greatest need for home improvement and revitalization; and WHEREAS,the Economic Development Authority fmds that by applying for the"Community Fix-up Fund"program,more Mounds View homeowners may become eligible for home improvement loans at a reduced interest rate. NOW THEREFORE,BE IT RESOLVED that the Economic Development Authority of the City of Mounds View hereby recommends application to the MHFA for the"Community Fix-up Fund"program. Adopted this 27th day of April, 1998. • Duane McCarty,President • ATTEST: • Charles S.Whiting,Executive Director • • • NADATA\GROUPS\ECONDEVIEDA EDCIHOMELOAN\EDA4 27.RES Item No. 66 A • Staff Report No. • Meeting Date: 4-27-98 • Type of Business: EDAB WK.•Work Session;PH:Public Hearing; • CA:Consent Agenda;EDAB:EDA Business Mounds View Economic Development Authority Stafi' Re port • • To: Mounds View Economic Development Authority From: Steve Dorgan,Housing Inspector Item Title/Subject: • Housing Replacement Program Property Status Date of Report: April 24,1998 Due to several changes in properties, staff thought it may be timely to update the EDA on the status of properties currently involved in the Housing Replacement Program(HRP). Earlier this year, staff took a proactive approach to marketing the HRP by identifying properties as to condition based both on Ramsey County Assessing Data and a windshield survey.The owners of the selected properties were notified of the HRP offered by the city. In recent months, staff has received several requests from homeowners for consideration in the HRP. Of these requests,two properties have qualified for the HRP. The following provides a status of properties which has received EDA approval for participation in the HRP: 8265 pring Lake Road • • This lot was acquired by the EDA last year and sold to Preferred Builders in January of this year..Since the sale of the lot,Preferred Builders has applied for and received a building setback variance from the city. Discrepancies in the easement documents were recently discovered in the purchase agreement. Corrections to these documents have been made and are in the process of being recorded. It is anticipated that Preferred.Builders will be obtaining their building permit and begin construction in the next week. The purchase agreement requires the home to be built by July 1, 1998. 8283 Long Lake Road This property was acquired last year and is currently owned by the EDA. Last fall the EDA requested proposals for purchase of the property and received an offer from Preferred Builders. The EDA requested the developer explore options for acquiring adjacent properties for the creation of a small subdivision. In recent conversations with Preferred Builders,they have informed staff that they are • working to acquire two of the surrounding properties. Staff has also received numerous requests for purchase of the property. Interested parties have been informed of the EDA's request for a more efficient development of the property. 8005 Groveland Road Last year,the owner of the property approached for participation in the HRP. There was some inquiry as to what the best use of the property due to an adjacent vacant lot and its proximity to Steve's Appliance. Several options regarding the property were explored,including; 1)acquiring the property for development of single family homes 2)rezoning the property to multiple family housing 3)rezoning the property to commercial and possibly selling the property to Steve's Appliance for expansion of their business. The appraisal of the property was higher than previously acquired HRP properties. The last direction by the EDA was to wait for a potential acquisition of an adjacent commercial property. Staff Memo -HRP Property Status April 24, 1998 • Page 2 • 7934 Woodlawn Drive • . The city received a request from the property owner for participation in the HRP in January of 1998. The property was found to meet the.HRP criteria and the EDA approved an appraisal of the property. The owner was actively selling the home at the time and subsequently sold the property-for$7,000 above the city's appraised price. . • 6991 Pleasant View Drive The City received a request from the property owner for participation in the HRP earlier this month. An inspection revealed the property met the HRP criteria. The EDA approved an appraisal of the property. Once the appraisal is complete,staff will begin negotiation with the owner and present the fmdings to the • EDA for action. • Staff will continue to identify properties qualifying for the HRP and market the program to Mounds View homeowners. Efforts will also be taken to process acquired properties for sale and redevelopment in an efficient and timely manner. Attached is a map of the properties currently involved in the HRP. Iiii, • . • • \a Steve Dorgan, i g Inspector 717-4023 • Attachments: Exhibit A -HRP Property Location Map • . N:\DATA\GROUPS\ECONDBV\MVHHRP\EDA4 27 MEM