EDA authorizes purchase of 4217 Central Ave NE for redevelopment, approves $305,000 budget amendment

On June 1, 2026, the Columbia Heights Economic Development Authority voted to approve a purchase agreement with AA Homes LLC for 4217 Central Ave NE and to amend the 2026 Redevelopment Fund 408 budget to appropriate $305,000 for the acquisition and related project expenses. The motion (Resolution 2026-18) passed with all ayes of those present.

Community Development Director Mitchell Forney said a Time of Sale inspection and staff review identified the property as a redevelopment opportunity along the Central Avenue corridor. Forney reported the structure is in poor condition and recommended a $225,000 purchase price and authorization of up to $80,000 to cover demolition, closing costs and other redevelopment expenses. Forney said staff would temporarily bridge acquisition costs from Fund 408 and seek reimbursement from Anoka County HRA (ACHRA) levy funding for eligible expenses.

Forney provided budget figures to commissioners: an approximate Fund 408 balance of $1,358,600 and an ACHRA levy balance of $716,891.57. He said the City previously used this reimbursement mechanism on similar redevelopment acquisitions. Commissioners asked logistical questions about demolition methods, adjacent parcels and tenant relocation; Forney clarified the Fire Department would not conduct a live burn for demolition and that ACHRA funds have broad uses consistent with redevelopment goals.

The resolution approves the form of the Purchase Agreement, authorizes execution by the President and Executive Director (City Manager), and amends the Redevelopment Fund 408 to appropriate $305,000 for the project. The EDA recorded unanimous approval by members present; the City will seek ACHRA reimbursement following acquisition.