Loading...
HomeMy WebLinkAbout2022-01-19 EDA Packet CITY OF CENTERVILLE ECONOMIC DEVELOPMENT AUTHORITY ǣ MEETING AGENDA Wednesday, January 19, 2022 6:30 p.m. or shortly thereafter MEETING IS IN PERSON CITY HALL COUNCIL CHAMBERS LIVE-STREAMED AT: https://northmetrotv.com/centerville-stream/ MEETING I. CALL TO ORDER II. ROLL CALL III. APPROVAL OF AGENDA 1. Call for Changes to the Agenda IV. APPROVAL OF MINUTES 1. November 17, 2021 EDA Meeting Minutes V. BILLS AND COMMUNICATIONS 1. Bills a. Check List 2. Communications VI. REPORTS 1. AdministratorÓs Report 2. Partner Agency Reports a. Anoka County Regional Economic Development (ACRED) b. Quad Area Chamber of Commerce c. Hugo Area Business Association 3. Year to Date Financials 4. Ongoing Programs: a. Blue Logo Sign b. CenterStage c. Business Revolving Loan and Grant Program d. COVID Relief Business Assistance Grant Programs VII. OLD BUSINESS 1. 1737 Main Street VIII. NEW BUSINESS 1. City Website Redesign Input 2. Downtown Building Condition Assessment Î CDBG/HOME Grant IX. ADJOURNMENT INFORMATIONAL MATERIALS None MEETING REMINDERS All Meetings at 6:30 PM unless otherwise noted City Council Meeting Î Wednesday, January 26, 2022 Parks and Recreation Committee Î Wednesday, January 5, 2022 Planning and Zoning Commission Î Tuesday, January 4, 2022 Economic Development Authority Î Wednesday, March 16, 2022 Anoka County Regional Economic Development Authority Meetings Anoka County Business/Banking Summit Î TBD Quad Area Chamber of Commerce Meetings Board of Directors Meeting Î Monday, January 17, 2022 (4 PM via Zoom) 01/11/22 3:53 PM CITY OF CENTERVILLE Page 1 Check Detail - December 2021 Checks Check DateCheck #Vender NameCommentsAmount 112/21/2021000011EIRS/EFTPSFICA/MED W/H- EDA - PP 4$45.90 Check Nbr 000011 IRS/EFTPS$45.90 112/28/2021000013EVZ WIRELESS - WEBPAYWEBPAY UNKNOWN CHG - BANK REFUNDED CHGS ON 1-10-2$255.27 Check Nbr 000013 VZ WIRELESS - WEBPAY$255.27 112/21/2021001022 TIMESAVER OFF SITE SECRETARIALEDA MINUTES FOR 11-17-21$151.00 Check Nbr 001022 TIMESAVER OFF SITE SECRETARIAL$151.00 112/21/2021001023 CITY OF CENTERVILLEREIMBURSE CITY FOR CABLE TIES FOR WREATHS$10.19 Check Nbr 001023 CITY OF CENTERVILLE$10.19 $462.36 01/11/22 3:36 PM CITY OF CENTERVILLE Page 1 *Check Reconciliation© EDA-MIDWESTONE BANK 10350 EDA DECEMBER 2021 Account Summary Beginning Balance on12/1/2021$30,160.72 Cleared $27,672.50 + Receipts/Deposits$0.00 Statement$27,672.50 - Payments (Checks and Withdrawals) $2,488.22 Difference $0.00 $27,672.50 Ending Balance as of 12/28/2021 Cash Balance Beginng Balance $30,160.72 Active201-10350 ECONOMIC DEVELOPMENT FUND$27,521.50 + Total Deposits $0.00 Cash Balance$27,521.50 - Checks Written$2,639.22 Check Book Balance $27,521.50 Difference $0.00 01/11/22 3:36 PM CITY OF CENTERVILLE Page 2 *Check Reconciliation© EDA-MIDWESTONE BANK 10350 EDA Check Nbr OutstandingCleared Vendor NameCheck Date 505399EQuarterly ACH12/8/2021$277.05 000011EIRS/EFTPS12/21/2021$45.90 000013EVZ WIRELESS - WEBPAY12/28/202 1$255.27 001018 S & B CENTER CORPORATION11/17/2021$437.98 001021 JETS LLC11/17/2021$1,461.83 001022 TIMESAVER OFF SITE SECRETARIAL12/21/2021$151.00 001023 CITY OF CENTERVILLE12/21/2021$10.19 Receipts/Deposits $0.00$0.00 $0.00 Total Deposits $151.00$2,488.22 Payments/Withdrawals $2,639.22 Outstanding + Cleared Checks = Total Checks Written *NM Next Month items not included in Total Checks Written and Total Deposits Administrator/EngineerÓs Report January 12, 2022 Mark your calendar: Preschool registration for 2022-2023 begins in March! As part of the Centerville Elementary expansion, Centennial Preschool will be adding new classrooms for the 2022-23 school year. With additional space comes the ability to offer more schedule options; the Centerville location will now offer two, three and five-day/week full-day schedules. ÐWeÓre delighted to be able to meet the growing demand in the Centerville area,Ñ said Preschool Coordinator Sara Ison. ÐThe waiting list for our Centerville classroom was always long. While we will not have as many preschool seats as there are kindergarteners each year, this certainly gets us closer.Ñ The Centennial Preschool 2022-23 brochure will be available online at isd12.org/preschool in mid- December. Registration for the placement lottery will begin in March 2022. PARKS AND RECREATION Recommendation to Council to Thin Trees from Eagle Park The Committee recommended to Council approval of lowest bidder, LangerÓs Tree Service - $6,950; for thinning of trees, (removal of 83 trees), in an effort to extend the life/growth cycle of remaining trees and to declutter the wooded areas. Council discussed the item at their January 12, 2022 meeting and tabled it for additional research and discussion purposes. Abutting property owners and the HOA will be notified prior to date of removal if approved. Annual Skate/Sled Nights The Committee has scheduled their Annual Skate/Sled Nights for Friday, January 14, 2022 and Saturday, February 12, 2022, from 6-9 p.m. at Laurie LaMotte Memorial Park. Wargo Nature Center will provide snowshoes and kicksleds for participants to use for free. The Committee will be providing FREE popcorn, hot cocoa and sÓmores for roasting over the bonfire. The event has been posted per State Statute for the possibility of potential for quorums of all Committee/Commission & Council Members. Skate Park Study The Parks and Recreation Committee continues to look for the publicÓs input on the existing Wheels Skate Park at Laurie LaMotte Memorial Park. The facility is nearing the end of its useful life and there are important decisions regarding its future that need to be made and taken into consideration (i.e. complete some major maintenance on the existing equipment, buy new modular ramps, rails and the like) or make a major investment in a poured concrete facility? Send us your thoughts at info@centervillemn.com ADMINISTRATION WeÓve Hired! Please Meet New Staff Member Athanasia Lewis, Assistant City Administrator Athanasia began her service for the City of Centerville on January 1, 2022 as Assistant City Administrator. She brings more than ten years of local government Experience with her. Previously, Athanasia held positions as an administrator and as an assistant administrator. Athanasia holds a Bachelor of Arts degree in History and a Master of Public Administration from the University of Tennessee. She recently completed the Basic Economic Development Certification program at the University of Wisconsin. Athanasia is passionate about public service and considers herself a servant leader. Outside of work, Athanasia enjoys spending time with family and friends; she also enjoys traveling. Athanasia is settling into her position well, and is diligently working with staff on a website redesign. Athanasia has experience in this area and will put it to good use with the City! The new website will include pages for EDA, Parks & Recreation, Council and more. A new website has been a long standing goal of the CityÓs and it will be great to have a new presence with increased functionality. Athanasia will be meeting with committee/commissions to learn about their website needs and she will also give a presentation to Council in the near future. Meeting and City Hall Schedule January 13 Î January 18, 2022. City Hall is closed due to COVID exposure. Residents are being assisted through online capabilities and via telephone January 17, 2022. City Hall is Closed Î Martin Luther King Day January 22, 2022. Council Retreat, City of Hugo, Rice Lake Center January 26, 2022, 5:00 p.m. Council Work Session & 6:30 p.m. Regular Council meeting February 1, 2022, 6:30 p.m. - Planning & Zoning Commission meeting (Zoom capabilities Î see website calendar) February 2, 2022, 6:30 p.m. Î Parks & Recreation Committee meeting (Zoom capabilities Î see website calendar) Rental Assistance If you or someone you know is struggling to pay rent, help is available. Make the call to 211 to get more information. This information is provided by the United Way. CITY COUNCIL First City in Minnesota to Appoint a Junior Council Member With an idea submitted by the Mayor to gain youth involvement in local government, the City adopted a Junior Council Member Program. The Council feels that input from the Centennial High School is important and a recommendation was brought forward to make an appointment. Interviews were held and Danny Peterson, a Centerville resident and 11th grader at Centennial High School, was appointed as the first-ever Centerville Junior Council Member. Danny does not have voting powers but he will be able to express his opinions at Council meetings. DannyÓs first meeting was on January 12th! ECONOMIC DEVELOPMENT Quad Area Chamber of Commerce The Quad Area Chamber of Commerce is working on another year of successful programming and events. Currently, Chamber staff are working on a business expo, senior fair, and an event that recognizes our beloved veterans. More information about these events is available on the ChamberÓs website at: Quad Area Chamber of Commerce - MN. This year the Chamber will continue to work with cities in the quad-area on an individual basis, however there will be a regional marketing effort added as well. Economic Development Authority (EDA) The Committee remains focused on providing reduced price marketing opportunities (Center Stage, Highway Signage, business water connections program through July 31, 2022, COVID funding assistance, etc.) These items were included in their 2022 Budget. The Committee is also committed to expanding marketing and beautification efforts in the city in an effort to attract new businesses. If you are a current Centerville business in need of assistance or know of a business that desires to come to Centerville, please contact us at: info@centervillemn.com. Anoka County Regional Economic Development (ACRED) th ACRED will hold their strategic goal setting meeting on January 25. The executive director will be reaching out to the city for feedback on how they can best assist Centerville. COMMUNITY DEVELOPMENT Block 7 Property (Downtown) Î ÐSorel QuarterÑ The Planning & Zoning Commission recommended to Council approval of a Preliminary Plat & Planned Unit Development (PUD) for the proposed 26 row-style housing project. The Commission recommended slight modifications for several items (i.e. lighting, monument signage and landscaping). The developer, Centra Homes, brought forward to Council suggestions for remedies to the P & ZÓs recommendations. They also requested a timeframe extension to complete the first 13 homes due to labor/material costs and availability. Centra Homes also brought forward concerns for obtaining certain desired materials of the P & Z and Council, with recommendations for alternative materials. Council approved the Preliminary Plat & Planned Unit Development (PUD) with concerns for the aforementioned materials. Council was assured that final approval by the Planning & Zoning Commission, staff and Council following City Code requirements would allow for appropriate selections. Centerville Elementary School Expansion Construction continues to be on schedule. stnd Old Mill Estates 1 and 2 Additions The developer and city continue to work together on finishing the remaining work. Street signs, mailboxes and most of the sidewalk have now been completed, leaving only pedestrian ramps, boulevard turf establishment and a few odds and ends to be completed. The City is in discussion with the homeowner near the cul-de-sac on Old Mill Court, exploring alternative routes for the trail. The city will continue to hold security for the completion of the trail until this process plays out and the trail link is completed. th Centerville Storage (20Ave. Mini Storage) With the site fully paved and landscaped, the developer is just waiting on a fence to complete the site and open for business. Bay View Villas (Waterworks Site) The vast majority of the project work is now done. Some lakeshore plantings and final landscaping items remain. Mailboxes are now in and the pond has been dredged to final grade. Atlas Villas Memory Care Project (1825 Main Street) Interior work on the building continues with no word regarding a grand opening date. Development Inquiries Additional inquiries from Brew Pub developer Apartment developer inquiries Bakery looking for potential locations Distribution Center looking at industrial land Rehbein Commercial Infrastructure work is now, largely complete, with the sewer, water and stormwater having been installed. The street (Michaud Way) has been constructed up through the base course of asphalt. The wearing course will be installed next year if there are no settlements or other issues. The contractor is working through punch list items and will be completing the trail and sidewalks next year. Kwik Trip The owner has communicated that construction could begin by mid-summer, 2022. Norbella Senior Living Norbella has now broken ground on the site, installing utilities and excavating for the foundation and parking lot. Work will continue in an effort to enclose the building for winter work on the interior. Peterson Shores The developer has signed necessary agreements and is authorized to file the plat. Rehbein Industrial Work on the extension of Fairview Street has begun, with the installation of sewer service stubs and water main. Storm sewer and street construction will follow, weather permitting. Sutton Transport The site has been graded and is ready for construction, once agreements are finalized. 2050/2070 Main Street A permit has been issued for roofing of the building in preparation of the tenant. CODE ENFORCEMENT Î RESIDENTIAL General Sidewalk clearing. COMMUNITY ENGAGEMENT Web Site Social Media AdministratorÓs Report uploaded Center Stage Committee Agendas/Packets uploaded Meeting Agendas Public Hearings Reader Board Job Posting Î Rink Attendants Meeting Schedules Community Events Community Email List AdministratorÓs Report Connect with the City Meeting Agendas on these platforms FINANCE American Rescue Plan (ARP) The City Council reviewed information from the Finance Director regarding the eligibility of certain expenses and the opportunity to recover lost revenue. The US Treasury guidance on lost revenue letÓs cities show any growth in tax levy income, less than 4.1% year over year, as eligible for reimbursement through the ARP. If funds are allocated for lost revenue, they must simply be spent on general government expenses. Council has not made formal commitments yet, but it is likely that the city will use a mix of expense and lost revenue allocations for its ARP funds. STORMWATER/WETLAND LaMotte Park Stormwater Reuse System Expansion This project has been finalized and will be submitted for reimbursable grant funds from the Rice Creek Watershed District and Met Council, respectively. For the few weeks the system was fully functional at the end of the year, results were positive and point towards a productive future of water reuse in the city. Fairview North A wetland boundary determination was approved by the Wetland Conservation Act Technical Evaluation Panel. The submittal was for the 40 acres north of Fairview Street. SEWER AND WATER Commercial Water Connection Fee Assistance As part of the cityÓs ongoing effort to help businesses through the pandemic, a new program was introduced, cutting connection fees for city water in half, through the end of 2021 for commercial properties. If you own a commercial property in Centerville that is not currently hooked to city water, and are interested in learning more, please call City Hall. Modifications to the program are being considered at the next City Council meeting. St. Paul Regional Water Services The 120+ year-old intake structure in Centerville Lake was demolished this week. St. Paul Regional Water Service, who maintains riparian rights to Centerville Lake (meaning they can still pump water from it), intends to keep their infrastructure on shore and the pipe that leads from here to St. Paul, but has now removed their intake in the lake. Wellhead Protection Plan We have been notified that our grant application to seal some wells in our Wellhead Protection Area was received and will qualify for funds, once they are available. The current allotment of grant funds has been exhausted, but more funds will be available in 6 months. 2020 Downtown Street and Utility Improvements Punch list work is now complete. Final payments will be processed soon. PUBLIC SAFETY Centennial Lakes Police Department New Corporal Officer Jon Krueger was recently promoted to Corporal after a review of his many responsibilities outside of normal patrol duties. Congrats to Jon! From the Chief: Officer Krueger has over 24 years of dedicated service to this department and our communities. He has great rapport with his fellow officers, and has been a mentor to our newer officers. He has been our liaison to our multi-housing facilities, and has been a union steward for the past three years. He joined the Beyond the Yellow Ribbon organization (support for service members, veterans, and military families) and has frequently kept his partners informed of the happenings and resources he has. He lives in and is an active member of the community. He represents our department very well both on duty and off duty. I have received numerous recommendations for Officer Krueger to be selected as Corporal from his fellow officers. Officer Krueger has a strong work ethic and a very positive attitude. Officer Krueger has demonstrated the qualities, and fulfilled the requirements necessary, to achieve the position of Corporal. It is for all above reasons and more that Jon Krueger has obtained the position of Corporal effective immediately. Reserve Officer Positions The Centennial Lakes Police Department has had a successful program of reserve officers. These employees allow our department to ramp up in times of need without the expense of a full-time employee. Our reserve officers plan an important role in keeping our city safe. If you know anyone interested in joining the force, please contact CLPD during normal business hours. Centennial Fire District Fire District Reorganization The departmentÓs administrative functions have now been fully transferred to the Spring Lake Park Î Blaine Î Mounds View (SBM) department, as of September 1. The two positions for full-time firefighters have been filled from internal candidates (those working as paid on call firefighters) and are now on duty during the weekday timeslot. SBM staff have begun the process of auditing our departmentÓs equipment, training and standard operating procedures to find any gaps or areas for improvement and to ensure proper budgetary planning takes place. WeÓre Hiring The district is looking for paid-on-call firefighters. Find out more at www.centennialfire.org CITY OF CENTERVILLE REQUEST FOR ACTION Agenda Item # Department: RequestedMeetingDate: January 19, 2022 EDA VI.2.c TITLE OF ISSUE: Ongoing Programs Report - HBA BACKGROUND AND SUPPLEMENTAL INFORMATION: The Hugo Business Association (HBA) met last week and welcomed incoming President Julie Larson from TGK Automotive. The HBA meets the second Tuesday of every month at Hugo City Hall from 12:00pm-1:00pm. The City of Hugo moved their State of the City address from February to March this year. The date has yet to be determined. COST AND SOURCE(S) OF FUNDING: N/A REQUESTED ACTION: Update Only. For ClerkÓs Use: SUPPORTED DOCUMENTS ATTACHED Motion By: ____________________________________ Resolution Ordinance Contract Minutes Plan Map Second By: ____________________________________ Vote Record: AyeNay ____ Other (specify) ____________ _____ _______________________________________________________________ _____ _____ _______________________________________________________________ _____ Refer to: _________________________________ Tabled Until: ______________________________ Consent Other: ___________________________________ Regular CITY OF CENTERVILLE REQUEST FOR ACTION Agenda Item # Department: RequestedMeetingDate: January 19, 2022 EDA VI.4 TITLE OF ISSUE: Ongoing Programs Report BACKGROUND AND SUPPLEMENTAL INFORMATION: Blue Logo Sign - Staff will have a full update on this next month CenterStage - Main Street Marketers reports that they reached out to the 3 new businesses; Atlas Villas, Norbella Senior Living and Centerville Storage. They are waiting to hear back from some, while others wanted to wait until they were closer to opening their doors. Business Revolving Loan/Grants - No new applications. JETS Machine Shop sign is up and looks great. COVID Relief Programs - No active programs available. COST AND SOURCE(S) OF FUNDING: N/A REQUESTED ACTION: Update Only. For ClerkÓs Use: SUPPORTED DOCUMENTS ATTACHED Motion By: ____________________________________ Resolution Ordinance Contract Minutes Plan Map Second By: ____________________________________ Vote Record: AyeNay ____ Other (specify) ____________ _____ _______________________________________________________________ _____ _____ _______________________________________________________________ _____ Refer to: _________________________________ Tabled Until: ______________________________ Consent Other: ___________________________________ Regular CITY OF CENTERVILLE REQUEST FOR ACTION Agenda Item # Department: RequestedMeetingDate: January 19, 2022 EDA VII.1 TITLE OF ISSUE: 1737 Main Street BACKGROUND AND SUPPLEMENTAL INFORMATION: Mike Brass will be on hand to discuss the most recent refinement of our design for a potential mixed use building at 1737 Main Street, including both architecture, engineering, zoning and financial issues. COST AND SOURCE(S) OF FUNDING: Costs previously approved. REQUESTED ACTION: Discussion only. No formal action requested at this time. For ClerkÓs Use: SUPPORTED DOCUMENTS ATTACHED Motion By: ____________________________________ Resolution Ordinance Contract Minutes Plan Map Second By: ____________________________________ X Vote Record: AyeNay ____ Architectural drawings, financial analysis Other (specify) ____________ _____ _______________________________________________________________ _____ _____ _______________________________________________________________ _____ Refer to: _________________________________ Tabled Until: ______________________________ Consent Other: ___________________________________ Regular Financial Analysis Net Rental Income 0 Apartment Analysis 2nd Floor BedsUnitsRent/ unitTotal SFOffice SFTotals per FlWhse $PSFAnnual RentMonthly Rent Per Unit 1 1$2,2751,3001,300$27,300$2,275 1 1$2,1001,2001,200$25,200$2,100 01$1,7501,0001,000$21,000$1,750 0 1$1,7501,0001,000$21,000$1,750 0$0.00$0.00$0$0 0$0.00$0.00$0$0 0$0.00$0.00$0$0 Tax value 2020$1,700,000Total Income$94,500$7,875 Taxes 2021$25,000Taxes-26.47%($25,015)($2,085) Units 3Expenses-16.64%($15,727)($1,311) Beds 2Totals-43.11%($40,742)($3,395) Totals7,0003,5000$53,758$4,480 Blended Net Rent$7.68 % of Office Build Out50% Taxes and Operating ItemBldg SFTotal Taxes$PSFAnnual T & OMonthly T & O Taxes7,000$25,015$3.57$25,015$2,085 Operating7,000$2.25$15,727$1,311 Utilities7,000$0.00$0$0 Totals$5.82$40,742$3,395 1/13/2022 All information is judged reliable, Michael A. Brass | President10:28 AM however, no warranty or representation 612.750.4312 | mike@mikebrass.comPage 1 of 4 is made to its accuracy or completeness. Financial Analysis Summary Building Summary 0 Apartment Analysis 2nd Floor Total Building SF7,000 PSF Yearly Base Rent$53,758 Office SF7,000Yearly OP Expenses$40,742 Warehouse SF0$0.00 Monthly Net Rent$4,480 Blended Net Rent$7.68Monthly OP Expenses$3,395 Tax & OP$5.82% of Office Build Out50% Income and Expense Summary Annual Gross IncomeCost Per Unit$567,000$ 94,500.00 Less Operation ExpensesAvg Rent $2,625$ 40,741.71 Number of units Net Operating Income$ 53,758.29 1 Acquisition Costs Square Feet$PSF Purchase Price243 bid 7,000$243.00$1,701,000.00 Office Improvements 7,000$0.00$ - Itemized Improvements See Itemized Impv Sheet$0 Other 0$0.00$0 Land Costs (New Construction Only) 0.00Acres0$3.00$ - Sub Total Hard Costs(Coverage Ratio)#DIV/0!$ 1,701,000.00 Soft Costs See Soft Costs$ 17,010.00 Total Acquisition Costs$245.43$ 1,718,010.00 Financing Summary % Total Acquisition Costs 100%$ 1,718,010.00 1st Mortgage 80%$ 1,374,408.00 2nd Mortgage or SBA 0%$ - Seller Carry Back 0%$ - Total Mortgage 80%$ 1,374,408.00 20% Equity Required For Bank $ 343,602.00 Mortgage Details AmountTermInterst Rate 1st Mortgage$1,374,408254.25%$ 89,348.30 2nd Mortgage$0204.25%$ - Seller Carry Back $086.00%$ - 25#DIV/0! Total Mortgage Cost Yearly $1,374,408 $ 89,348.30 Total Mortgage Cost Monthly $7,445.69 Vacancy Expenses %SFRate PSF Annual Net Income $ 53,758.29 Minus Vacancy Net Expenses 5%350$7.68$ (2,688.00) Minus Vacancy Operating Expenses 5%350$5.82$ (2,037.09) AmountTermRate Reserves / Improvements$0203.00%$ - Equals Annual Adjusted Net $ 49,033.21 Bottom Line AmountTermRate TIF Income $0123.00%$ - Adjusted Net Income.$ 49,033.21 Mortgage Payment$ (89,348.30) Yearly Cash Flow($40,315.09) Monthly Cash Flow($3,359.59) Return on Investment-11.73% Debt Constant6.50% Debt Ratio0.60 Cap Rate Value2.85% Straight Cash Return2.85% All information is judged reliable, however, no warranty or representation is made to it accuracy or completeness Michael A. Brass | President1/13/2022 | 10:28 AM 612.750.4312 | mike@mikebrass.comPage 2 of 4 FINANCIAL ANALYSIS Financial Analysis Assumptions Net Rental Income Main Floor / Retail or office SpaceTenantTotal SFOffice SFOffice $PSFWhse $PSFAnnual RentMonthly Rent Whse SF 1 Main floor 7,0257,0250$16.00$0.00$112,400$9,367 2 Apt up 00$16.00$0.00$0$0 3 0$16.00$0.00$0$0 Apartment Analysis is separate 4 0$16.00$0.00$0$0 5 0$16.00$0.00$0$0 6 0$16.00$0.00$0$0 7 0$16.00$0.00$0$0 8 0$16.00$0.00$0$0 9 0 Elevator00 Vertical Penetrations00$0 Totals7,0257,0250$112,400$9,367 Blended Net Rent$16.00 % of Office Build Out100% Taxes and Operating ItemBldg SFTotal Taxes$PSFAnnual T & OMonthly T & O Taxes7,025$40,183$5.72$40,183$3,349 Operating7,025$1.05$7,376$615 Utilities7,025$0.00$0$0 TotalsTax & CAM$6.77$47,559$3,963 Base Rent$16.00$112,400$9,367 Gross$22.77$159,959$13,330 Gross Rents Total SFOffice SFWhse SFBlended NetTax & CAMNet Per Month Gross Per Month 7,0257,0250$16.00$6.77$9,367$13,330 000#DIV/0!$6.77$0#DIV/0! MICHAEL A BRASS 612-223-6292 Page 110:29 AM 1/13/2022 WELSH COMPANIES Financial Analysis Building Summary Main Floor / Retail or office Total Building SF7,025 PSF Yearly Base Rent$112,400MO$9,367 Office SF7,025$16.00 Yearly OP Expenses$47,559MO$3,963 Apt Up 0$0.00 Blended Net Rent$16.00Depr in Yrs 27.5/3939 Tax & OP$6.77% of Office Build Out100% Income and Expense Summary Annual Gross Income$ 159,959.25 Less Operation Expenses$ 47,559.25 Net Operating Income$ 112,400.00 Acquisition Costs Square Feet$PSF Purchase Price / Shell CostsOrginal $243 psf 7,025$260.00$ 1,826,500.00 Office Improvements 7,025$0.00$ - Itemized Improvements See Itemized Impv Sheet$0 Other 0$0.00$0 Land Costs (New Construction Only) 0.22Acres9,664$0.00$ - Enter Total $ Amount Soil Corrections (New Construction Only) $ - Sub Total Hard Costs(Coverage Ratio)73%$ 1,826,500.00 Soft Costs See Soft Costs$ - Total Acquisition Costs$260.00$ 1,826,500.00 Financing % Total Acquisition Costs 100%$ 1,826,500.00 1st Mortgage 80%$ 1,461,200.00 2nd Mortgage or SBA 0%$ - Total Mortgage 80%$ 1,461,200.00 20% Equity Required For Bank $ 365,300.00 Mortgage Details AmountTermInterst Rate 1st Mortgage$1,461,200254.80%$ 100,471.58 2nd Mortgage$0254.80%$ - 25#DIV/0! Total Mortgage Cost Yearly $1,461,200 $ 100,471.58 Total Mortgage Cost Monthly $8,372.63 Vacancy Expenses %SFRate PSF Annual Net Income $ 112,400.00 Minus Vacancy Net Expenses 0%0$16.00$0.00 Minus Vacancy Operating Expenses 0%0$6.77$0.00 AmountTermRate Reserves / Improvements$000.00%0 Equals Annual Adjusted Net $ 112,400.00 Bottom Line AmountTermRate TIF Income $000.00%0 Debt Constant6.88%Adjusted Net Income$ 112,400.00 Debt Ratio1.12Mortgage Payment$ (100,471.58) Yearly Cash Flow$ 11,928.42 Monthly Cash Flow$ 994.04 Return on Investment3.27% Cap Rate Value6.15% Straight Cash Return6.15% All information is judged reliable, however, no warranty or representation is made to it accuracy or completeness Michael A. Brass | President1/13/2022 | 10:29 AM 612.750.4312 | mike@mikebrass.comPage 2 of 4 CITY OF CENTERVILLE REQUEST FOR ACTION Agenda Item # Department: RequestedMeetingDate: January 19, 2022 EDA VIII.2 TITLE OF ISSUE: Downtown Building Condition Assessment - CDBG/HOME Grant Application BACKGROUND AND SUPPLEMENTAL INFORMATION: Staff would like to discuss a strategy to rehab various apartment units in the downtown area on the second floor of mixed use buildings (retail/bar/restaurant below). An abundance of funds for this type of work are available if the units are rented to people meeting certain affordability requirements. These funds are administered through Anoka County's Housing and Redevelopment Authority (HRA), and come via the CDBG and HOME programs. Before applying for a grant it would be important to know whether or not the projects are economically feasible, given the 25% grant match required with some programs. Attached for your review is a proposal for a building condition assessment. The end goal of the assessment is to gauge the feasibility of the project. COST AND SOURCE(S) OF FUNDING: $7,975 - EDA General Fund REQUESTED ACTION: Motion to approve proposal for Building Condition Assessment from CR-Building Performance Specialists, contingent upon approval from private property owners for access to the structures. For ClerkÓs Use: SUPPORTED DOCUMENTS ATTACHED Motion By: ____________________________________ Resolution Ordinance Contract Minutes Plan Map Second By: ____________________________________ Vote Record: AyeNay ____ Proposal Other (specify) ____________ _____ _______________________________________________________________ _____ _____ _______________________________________________________________ _____ Refer to: _________________________________ Tabled Until: ______________________________ Consent Other: ___________________________________ Regular December 8, 2021 RE: Centerville, MN: Downtown Facility Assessment Study Mark Statz, P.E. City Administrator/Engineer City of Centerville 1880 Main St Centerville, MN 55038 Dear Mr. Statz, We greatly appreciate the opportunity to work with the City of Centerville. CR-Building Performance Specialists (CR-BPS) is pleased to present this proposal to provide professional services for a Facility Assessment Study for three structures including bars, catering and residential apartments above. The City is requesting professional services for a Facility Assessment which includes assessments for Facility System Conditions, Functionality, Life Safety, ADA & Adaptation. This study, will include three assets roughly 8,900 SF. The baseline data gathered will allow you to establish long- and short-range capital plans, identify potential funding sources, and target strategic partnerships. It is our understanding that Centerville would like to establish this work as a baseline cost effort to inform critical decision-making regarding apartment needs and improvement projects for its facilities. This Study will focus on the following: a.Facility System Conditions Assessment i.Exterior Systems: roofs, walls, window systems, exterior doors and structural components ii.Interior Systems: walls, doors, floors and ceilings, visible, structure, and finishes iii.Health/Fire/Life Safety iv.Heating, Ventilation and Air Conditioning v.Electrical vi.Plumbing vii.Fire Protection viii.Conveyances Listed below are the facility assets and overall size of the assets to be included in this Study. KellyÔs Bar and Grill: 2,400 SF The Southern Rail: 4,000 SF Chef Hot Hands: 2,500 SF Task 1 Ï Coordinate and Collect (Project Kick-Off Meeting) CR-BPS will collect and review all available background information including, but not limited to: drawings, utility data (5 years preferred), past studies, building history, maintenance and operation manuals, etc. The Client and CR-BPS will conduct a Project Kick-Off meeting. The goal of this meeting is to: Review background information Present and review schedule Customize Asset Management software (VFA Facility) data entry standards and protocols to align with CityÔs standards Task 2 Ï On-site Assessments & Department Interviews CR-BPSÔs Facility Assessors will conduct an on-site, physical inspection of each asset. The CR-BPS team will also conduct interviews with Staff if available. CR-BPS shall be escorted by a City representative - preferably the building manager or operations/maintenance supervisor - for building access and interviews. Task 3 Ï Data Entry CR-BPS will enter all facility data into the FSAM software tool. For this project, the City will use CR-BPSÔs in-house FSAM software tool (VFA license). If the City prefers to purchase their own license, CR-BPS will facilitate negotiations and purchase agreements as needed. Note: CR-BPS does not benefit financially from the CityÔs purchase of VFA. Task 4 Ï Fully Populated Asset Management Program Ï Final Deliverable Due to the dynamic nature of this Asset Management process, we anticipate customizing final deliverables to the ClientÔs needs. As we work through this process, we will uncover what deliverables that will best serve the Client in the short and long term. Thus, minimum deliverables are listed below, and may be changed based on mutual consent. WWW.CR-BPS.COM 2 Final Deliverable: 1.Fully populated FSAM tool for each asset 2.Executive Summary Report including: a.Asset Information b.System Information c.Requirement Information d.Funding Needs Information (5/10/20+ year Capital Plan) Our proposed schedule is to proceed with work upon authorization by the City. The following are milestone tasks to be scheduled based on availability. Notice to Proceed Kick-Off Meeting & On-Site Assessment Final Deliverable Compensation shall be on an hourly, not-to-exceed basis, based on actual hours worked for CR- BPS personnel assigned to the work, plus reimbursable expenses, to be billed monthly. Downtown Facility Assesment Study$7,975.00 Total Fee$7,975.00 Reimbursable Expenses: The above fee includes all expenses associated with the project, including equipment, labor, materials, mileage, reproduction, and postage costs. Additional services are available and may be addressed and negotiated in a separate proposal. CR-BPS is available to provide on-going services and support for the Client long-term. Examples of these services are as follows: On-Going FSAM support Presentations outside of final deliverable (Board Meetings, Committee Meetings, Council Meetings, Public/ Staff Meetings, etc.) Adding additional buildings to the FSAM database (VFA Tool) Assist in development of Scope of Work requirements/ Basis of Design/ Design Guidelines for future projects WWW.CR-BPS.COM 3 RFP generation support (using FSAM data and performance targets in the RFP that outline detailed/ specific expectations that guide proposal responses) Cost estimating Forensic evaluations and testing Ï Thermography, Blower Door, Air Tightness, etc. Work with other A/E firms on ClientÔs behalf Work with other discipline firms on ClientÔs behalf Additional training on the FSAM software tool Tracking additional sustainability and key indicator metrics (water, waste, etc.) Monitor and Verification of energy performance projects Funding documentation (example: grants, low-interest loans, rebates, etc.) Presentation assistance (example: Council meetings, Committee meetings, Public meetings, etc.) Energy Audits (ASHRAE Level 2 and 3) Energy Modeling Long Term Reporting Pre-Design Services Master Planning Services Other services as determined by mutual consent Change-in-Project and Agreement Changes: The terms of this Agreement may be changed by the mutual understanding of CR-BPS and the City. Both parties shall approve such changes, incorporated in written amendments to the Agreement. Insurance: CR-BPS will provide the following insurance coverage: A professional liability insurance policy, insuring payment of damages for legal liability arising out of the performance of professional services for the City, in the insured's capacity as "Owner" of the Courthouse Campus assets. A 2,000,000-dollar professional insurance policy for each claim is provided by CR-BPS to cover legal liabilities caused by any error, omission, or negligent act of CR-BPS or any person or organization. And stating that such insurance cannot be canceled until thirty (30) days after the Owner has received written notice to the insurer's intention to cancel the insurance. CR-BPS provides Worker's Compensation insurance in the statutory amount, not less than $500,000 for all employees engaged in the Work. Comprehensive automobile and vehicle liability insurance covering claims for injuries to members of the public and/or damages to the property of others arising from the use of motor WWW.CR-BPS.COM 4 vehicles, including on-site and off-site operations, and owned, non-owned, or hired vehicles in an amount not less than the prescribed State requirements. Indemnity Provisions: In recognition of the relative risks and benefits of the Project to both the Owner and Consultant, the risks have been allocated such that the Owner agrees, to the fullest extent permitted by law, to limit the liability of the Consultant and the Consultant's officers, directors, partners, employees and sub-consultants (hereinafter jointly referred to as "Consultant") to the Owner for any and all claims, losses, costs, damages of any nature whatsoever or claims expenses from any cause or causes, including attorney's fees and costs and expert witness fees and costs, so that the total aggregate liability of the consultant for the entire Project which is the subject of this Agreement, regardless of how limited in scope the services under this Agreement may be , shall not exceed the Consultants total aggregate fee received for services for the Project. To the fullest extent permitted by law, Owner shall indemnify and hold harmless CR-BPS from and against any and all costs, losses and damages arising from claims against CR-BPS by third parties (including but not limited to all fees and charges of engineers, architects, attorneys another professionals, and all court or arbitration or other dispute resolution costs) to the extent caused by the negligent acts or omissions of Owner or Owner's officers, directors, partners and employees in the performance and furnishing of Owner's services under this Agreement. To the fullest extent permitted by law, CR-BPS shall indemnify and hold harmless Owner, Owner's officers, directors, partners and employees from claims against Owner by third parties (including but not limited to all fees and charges of engineers, architects, attorneys another professionals, and all court or arbitration and other dispute resolution costs) to the extent caused by the negligent acts or omissions of CR-BPS or CR-BPS's officers, directors, partners and employees in the performance and furnishing of CR-BPS services under this Agreement. Dispute Resolution CR-BPS and Owner each agree to be bound by and subject to the dispute resolution provisions set out in the Agreement. In the absence of any provisions to the contrary in the Agreement, CR-BPS and Owner agree that any disputes shall be resolved under the laws of the state of Minnesota. To resolve any conflicts that arise during the design or construction of the Project or following the completion of the Project, CR-BPS and Owner agree that all disputes between them arising out of or relating to this Agreement shall be submitted to non-binding mediation unless the parties mutually agree otherwise. The Owner agrees that it will also participate in non-binding mediation proceedings with the Owner if required for in the Agreement. The Owner and CR-BPS further agree to include similar mediation provision in all agreements with independent contractors and Owners retained for the Project and to require all independent contractors and Owners also to include a similar mediation provision in all agreements with subcontractors, sub-Owners, suppliers, or fabricators so retained, thereby providing for WWW.CR-BPS.COM 5 mediation as the primary method for dispute resolution between the parties to those agreements. We appreciate the opportunity to present this proposal letter to provide our professional services. We look forward to work with you over the coming year. If you have any questions, or need additional information, please do not hesitate to call me at 612.203.3163 or email me at ckraemer@cr-bps.com. Respectfully Submitted, Chad Kraemer Ï Vice President CR-BUILDING PERFORMANCE SPECIALISTS, GBC. Accepted this _______________________ day of ___________________________ 2021 By: Mark Statz, PE City Administrator/Engineer ___________________________________ Title: ___________________________ Authorized Signature WWW.CR-BPS.COM 6 Home Apartments (14) Home Home Home Vacant Vacant Apartments (6) Apartments Vacant (3) Building Antiques, Kelly's, Vacant Apartments (2) Home Home Home apartments (2) Rivard St. Genevieve's Catering, Home Electric Catholic Church Apartments (inactive) and Rectory (2) Home Home Home Home Development Home Southern inquiry Home Vacant Rail, Vacant Home apartments (2) Downtown (M-1) Home Home Home Home Vacant - 21 active apartment units Proposed - 4 vacant apartment units Townhomes Concept: (26) - 1 vacant commercial building Townhomes Home - 9 homes (4+) Home Home HomeHome - 4 businesses (antiques, catering, Home Home bar/restaurant, bar) - 2 half-acre vacant lots (City-owned) - 0 paved, off-street parking Home Home Home Home Home Home Home Downtown (M-2) Home - 6 active apartment units Home - 1 business (electrician) - 1 vacant buildable parcel (0.3-acre) - 30 planned townhomes - 26 homes CvjmejohDpoejujpo BttfttnfouQspqptbm