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2018.03.06 EDA Meeting PacketAGENDA ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF CRYSTAL  REGULAR MEETING  TUESDAY, MARCH 6, 2018 IMMEDIATELY FOLLOWING THE 7:00 P.M. CITY COUNCIL MEETING CRYSTAL CITY HALL COUNCIL CHAMBERS 1. Call to order * 2. Roll call * 3. Consider approval of minutes from the February 5, 2018 regular meeting and February 20, 2018 work session. 4. Public Hearing to consider a resolution approving the sale of an EDA lot at 5607 Zane Avenue North to Novak-Fleck for construction of a new single family home 5. Consider acceptance of the 2017 EDA Annual Report 6. Consider approval of the 2018 EDA Work Program 7. Other business * 8. Adjournment * *Items for which no materials are included in the packet Page 1 of 2 Minutes of the Economic Development Authority of the City of Crystal Regular Meeting February 5, 2018 1. Call to Order President Parsons called the regular meeting of the Economic Development Authority of the City of Crystal (EDA) to order at 8:07 p.m. 2. Roll Call Upon call of the roll, the following members were present: Jim Adams, John Budziszewski, Elizabeth Dahl, Jeff Kolb, Nancy LaRoche and Olga Parsons. The following staff members were present: Anne Norris, Executive Director, John Sutter, Deputy Executive Director, Dan Olson, City Planner, and Troy Gilchrist, City Attorney. 3. Approval of Minutes Motion by Commissioner Kolb (Adams) to approve the minutes of the January 2, 2018 annual organizational meeting. Motion carried. 4. 5573 Zane - Lot Sale Public Hearing The EDA held a public hearing to consider a resolution approving the sale of an EDA lot at 5573 Zane Avenue North to Novak-Fleck for construction of a new single family home. Mr. Olson presented the staff report and took questions from the Board. President Parsons opened the public hearing. There being no one present to offer testimony, President Parsons closed the public hearing. Motion by Commissioner Budziszewski (LaRoche) to adopt the resolution authorizing the sale of 5573 Zane Avenue North to Novak-Fleck for new home construction. Motion carried. 5. 5607 Zane - Consider Builder’s Proposal The EDA considered tentative acceptance of a proposal from Novak-Fleck to purchase the EDA lot at 5607 Zane Avenue North. Mr. Olson presented the staff report and took questions from the Board. Page 2 of 2 Motion by Commissioner Budziszewski (LaRoche) to tentatively accept the proposal from Novak-Fleck for the EDA lot at 5607 Zane Avenue North. Motion carried. 6. Information item: 2017 Housing, Foreclosure and Rental Summary Mr. Sutter presented the staff report and took questions from the Board. 7. Other Business There was no other business. 8. Adjourment Motion by Commissioner LaRoche (Adams) to adjourn. Motion carried. The meeting adjourned at 8:28 p.m. ______________________________ Olga Parsons, President ATTEST: ______________________________ Elizabeth Dahl, Secretary Page 1 of 1 Minutes of the Economic Development Authority of the City of Crystal Work Session February 20, 2018 1. Call to Order President Parsons called the work session of the Economic Development Authority of the City of Crystal (EDA) to order at 7:46 p.m. 2. Roll Call Upon call of the roll, the following members were present: Jim Adams, Elizabeth Dahl, Julie Deshler, Jeff Kolb, Nancy LaRoche and Olga Parsons. The following staff members were present: Anne Norris, Executive Director, John Sutter, Deputy Executive Director, and Troy Gilchrist, City Attorney. 3. Proposed 2017 Annual Report and 2018 Work Program Mr. Sutter presented the draft 2017 Annual Report and 2018 Work Program and took questions from the EDA. 4. Adjournment Motion by Commissioner Deshler (LaRoche) to adjourn. Motion carried. The meeting adjourned at 8:50 p.m. ______________________________ Olga Parsons, President ATTEST: ______________________________ Elizabeth Dahl, Secretary ___________________________________________________________ FROM: Dan Olson, City Planner ____________________________________________________________________ TO: Anne Norris, City Manager (for March 6 EDA Meeting) DATE: March 1, 2018 RE: PUBLIC HEARING: Consider resolution authorizing the sale of lot at 5607 Zane Avenue North for construction of new home Novak Fleck, a Minnesota Residential Building Contractor with no enforcement actions, has submitted a proposal to purchase the lot at 5607 Zane Avenue North for $55,000. The EDA tentatively accepted the builder’s proposal on February 5, 2018. There have not been any changes to the site or building plan since that tentative approval . Attached are an aerial photo and proposed site and building plans for a new home with an attached two-car garage. The house would have approximately 1,200 finished square feet on the main level with an open living-dining-kitchen area, three bedrooms and two bathrooms. It would also have unfinished square footage on the lower level, with an option to have it finished with additional bedrooms, a bathroom, and recreation room. Similar homes have been built by Novak Fleck on other EDA lots, including 5209 - 49th Avenue North which recently sold for $265,000. The builder does not yet have a buyer for the home at 5607 Zane Avenue North. For 5607 Zane, if on March 6 the EDA adopts the attached resolution, then the lot sale would close soon after. Construction would begin after closing with completion anticipated by summer 2018. REQUESTED EDA ACTION: After holding the public hearing and receiving any testimony, consider adopting the attached resolution authorizing the property sale of 5607 Zane Avenue North to Novak Fleck. EDA STAFF REPORT PUBLIC HEARING 5607 Zane Avenue North – Sale of lot to Novak Fleck ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF CRYSTAL HENNEPIN COUNTY STATE OF MINNESOTA RESOLUTION NO. 2018 - 03 A RESOLUTION AUTHORIZING THE SALE OF 5607 ZANE AVENUE NORTH FOR NEW HOUSE CONSTRUCTION WHEREAS, the Economic Development Authority of the City of Crystal (“the EDA”) is the owner of 5607 Zane Avenue North, legally described as follows: Lot 9, Block 2, Kennard’s Second Addition, Hennepin County, Minnesota (“the Property”); and WHEREAS, the EDA has solicited proposals from builders who desire to purchase the Property from the EDA and construct thereon a new single family house; and WHEREAS, the EDA has reviewed and accepted the proposal from Novak-Fleck. NOW, THEREFORE, BE IT RESOLVED that the EDA authorizes the sale of the Propert y to Novak-Fleck. BE IT FURTHER RESOLVED that the sale shall be completed in accordance with the terms of the Purchase and Redevelopment Agreement in substantially the form on file in City Hall, and that the President and Executive Director are hereby authorized to sign said Agreement and other documents required to complete the sale of the Property to Novak-Fleck. Adopted this 6th day of March, 2018. ____________________________________ Olga Parsons, President ____________________________________ Anne Norris, Executive Director March 6, 2018 Scattered Site Redevelopment •Five lots sold in 2017$55,000 average lot price •Four new homes sold (fifth is pending sale)$288,000 average home price1,611 finished sq. ft. average home size$179 average price per finished sq. ft. Scattered Site Redevelopment Scattered Site Redevelopment Home Improvement Rebates •Households eligible up to 120% of area median income •84 rebates paid in 2017•$167,185 total expenditures− $134,185 in rebates− $33,000 for admin•Average rebate $1,597•Average project $14,246 Home Improvement Rebates Deferred Home Improvement Loans •Federal funds (Community Development Block Grant)•Households below 50% of area median income•No interest charge•Loan forgiven after 15 yearsRepayment required if they move out or sellRepayments go back into the program•In 2017, five Crystal projects were completed and $141,000 was spent•At the end of 2017, two projects totaling $58,000 were in process and 19 homeowners were on the waiting list CPRR Train Horn Quiet Zone •Completed 11/25/2017Contractor will come back in spring 2018 to complete minor punch list items related to road work•Final construction cost projected to be $185,000$8,000 less than bid due to reduced quantities•99.8% compliance with train horn ruleRoad crossing sequence blown only 4 times in 1,680 estimated crossings since 11/25/2017Different horn sounds used occasionally for other reasons•BNSF trains still routinely use the road crossing sequenceSome people mistake these occurrences for CPRR trainsIf Blue Line Extension is built, BNSF will also be a QZ 4-plex at 5900 56th •EDA acquired May 2017•Tenants relocated in August-September 2017•EDA decided in October 2017 to demolish and sell lot•Demolition completed November 2017•Estimated expenditure at time of acquisition: $427,000•Actual expenditures: $401,000 Other 2017 Activities Community Branding & Image Enhancement:•New neighborhood signs•New City Hall entry signs Blight Removal:•Demolition of old park buildings at Broadway and Crystal Highlands parks The EDA paid the cash expenditures related to these items. The Public Works Department provided in-kind labor/equipment. City Property atYear-End 2017 (north third) City Property at Year-End 2017 (middle third) City Property at Year-End 2017 (south third) March 6, 2018 Continuing Activities 1. Scattered Site Lots•One sold(4724 Lakeland)•Two pending (5573 & 5607 Zane)•Two likely by June (5612 & 5618 Adair)•Estimated proceeds $280,000 (budget was $105,000) Continuing Activities2. Home Improvement Grants•Now administered by CEE•Maximum household income 110% AMI•$185,000 budgeted for 2018 (mostly TIF) 3. Community Fix-Up Fund•Also administered by CEE & max. income 110% AMI•$25,000 budgeted for 2018 (all TIF)•Seeking state match again (will know by summer) 4. Deferred Home Improvement Loans•Federal funds (CDBG)•Maximum household income 50% AMI•Crystal now part of the Consolidated Pool Bass Lake Road Streetscape Project Key Project Elements:•12-spaces of on-street parallel parking•Reconstruct sidewalk•New fixtures (benches, bike racks, trash receptacles, etc.)•New landscaping including irrigation•Paved boulevard/buffer area with decorative concrete•Lighting retrofit/upgrade to LEDs Both sides of Bass Lake Road from BNSF to HampshireIncludes much better parking lot illumination for security Bass Lake Road Streetscape Project Bass Lake Road Streetscape ProjectFinancing:•$602,000 for construction$200,000 from Hennepin County$330,000 of available increment from TIF District #2151$72,000 from Street Light Utility•$48,000 for construction engineering (from EDA fund balance) Schedule: Bidding – March 2018 Construction start – May 2018 Substantial completion – July 2018 Final completion – September 2018 Open To Business •Adjacent cities offer this service•Cost is $3,750/year (matched by Hennepin County)•Encourages self-employment and “organic” business growth•O2B provides technical assistance with business plans, marketing, etc.•O2B advisors are available by appointment at no cost•O2B will also have bimonthly office hours in Crystal for walk-ins Fire Sprinkler Financing •Intended to:Reduce potential loss of life (occupants & first responders)Preserve & enhance property valuesPrevent the emergence of blightImprove utilization of older buildings (jobs & economic opportunity) •Structured as a special assessment •No interest, 5 year payback term •Max. 25% property value and $100,000 per parcel Community Image Enhancement •Remove “Welcome to Crystal” sign on Burger King property at West Broadway & Douglas DriveSign was built as part of 1995 development dealCity has no formal easement for the signSign structure is failing - need to remove or replace •Install standardized entry signs at entry points on major roadsIntegrate new city logo and/or flag into the designGoal is to be less utilitarian, more decorative, possibly with some beautification elementsPossible locations to start:-36th Avenue median west of Hwy 100-Northeast corner of Douglas Drive & Medicine Lake RoadCould use as model for other entrance points Marketing•Marketing Brochure / Social Media Materials – 2018 TaskMay need two versions (one residential, one commercial)Residential: Proximity, parks and schools, great valueCommercial: Proximity, workforce, business-friendlyWe have a good story to tell!•Business Recruitment - different strategies for different situationsMost businesses already know where they want to be -won’t be swayed by city - but may respond to grassroots social media campaigns and city can help with that.Continue to reach out to potential businesses when a property goes on the marketSmaller businesses and start-ups may benefit from O2BCity staff is accessible and responsiveCity code changes (incl. UDC) make it easier to do business here 42nd Avenue•Has an outsized negative impact on Crystal’s image•Unsure if/when redevelopment opportunities would arise•Unsure if/when county will reconstruct roadway•2018 goal: Feasibility of utility undergrounding and street lighting, including potential funding, for 2019 construction Looking Ahead(Biennial Budget Cycle)