Loading...
HomeMy WebLinkAbout09-11-1995 EDA MinutesCITY OF LINO LAKES ECONOMIC DEVELOPMENT AUTHORITY MINUTES DATE: September 11, 1995 TIME: 6:03 p.m. MEMBERS PRESENT. V. Reinert, L. Elliott, S. Kuether, J. Bergeson MEMBERS ABSENT: A. Neal OTHER PRESENT: Brian Wessel, Community Development Director Randy Schumacher, City Administrator Mary LaForest, Economic Development Assistant CONSIDERATION OF MINUTES EDA Member Kuether moved to approve the minutes from the August 14, 1995 EDA meeting. EDA Member Elliott seconded the motion. Motion passed unanimously. CONSIDERATION OF RESOLUTION NO. 95-10 AUTHORIZING PREPARATION OF A MODIFICATION OF TAX INCREMENT FINANCING DISTRICT 1-7 Mr. Wessel explained to the board members that this resolution had originally been prepared to provide financial assistance to Wisconsin Magneto, a distributor of Briggs & Stratton engine parts. The company had several offers from different cities, and they had informed Mr. Wessel that they were choosing Anoka's offer. The two offers were comparable, but Anoka finances all land and assessments up front. Mr. Whalen, general manager of the company, preferred the Lino Lakes location, but corporate officials were opposed to locating next to the prison. Another prospect who expressed interest in the site was anxious to move through the approval process and begin construction this fall. Developer Bill Fogerty and Custom Remodelers, Inc. are interested in purchasing 3 acres to construct a 30,000 square foot facility. Custom Remodelers will occupy one-half the building for its telemarketing/office/warehouse space, and Mr. Fogerty will lease the rest. Custom Remodelers has been in business 5 years, with substantial sales growth. While some negotiations must still be worked out, Mr. Wessel explained that adopting this resolution would merely allow the process to begin to ensure construction could begin before winter. EDA President Reinert questioned whether a remodeling company would have outside storage, since the company would be highly visible from the freeway. Mr. Wessel said he toured the company, and they claim most of their inventory is siding and windows, and needs to be kept indoors. Any outside storage is an issue that will be considered in the design scheme. Mr. Bergeson commented that some telemarketing firms were not reputable. Mr. Wessel indicated that this company is both stable and reputable. EDA Member Elliott moved to approve Resolution No. 95-10. EDA Member Bergeson seconded the motion. Motion passed unanimously. CONSIDERATION OF RESOLUTION NO. 95-11 AUTHORIZING THE EDA TO ENTER INTO A PURCHASE AGREEMENT WITH ANOKA COUNTY FOR 6508 HODGSON ROAD Mr. Wessel explained that city attorney Bill Hawkins had been negotiating with Anoka County for the sale of a .7-acre property on the corner of Hodgson Road/Birch Street that had been seized under forfeiture laws. The county is willing to sell it to the city for its fair market value of $61,400. The city will be required to register title in Anoka County District Court, which will cost approximately $3,000-5,000. After checking comparable real estate with a local real estate agent, Mr. Wessel said he estimates the actual market value to be in the range of $90,000-100,000, leaving a cushion of at least $20,000 for clean up and site preparation costs. Mr. Wessel read the resolution, which directs staff and city attorney to enter into a purchase agreement with the county. EDA Member Kuether stated that she was not comfortable with the city picking up legal fees, and she believed that all the entities receiving a share of the forfeiture proceeds should pay a share of the fees. She also did not want to pay the $61,400 in advance of gaining clear title. She suggested the money go into an interest bearing account. Reinert questioned why getting a clear title was a problem. Ms. LaForest indicated that Minnesota drug forfeiture law was unclear regarding a public entity's ability to get title, and this legal proceeding was necessary to interpret the law. Mr. Schumacher stated that this would be considered a redevelopment activity, and any action regarding this is in the domain of the EDA. Kuether suggested that an amendment be added to the resolution that states that legal costs be prorated among benefiting agencies. Kuether moved to approve the amendment. Elliott seconded the motion. Motion passed unanimously. Kuether moved to approve the amended resolution. Elliott seconded the motion. Motion passed unanimously. ADJOURNMENT EDA Member Elliott moved to adjourn. Bergeson seconded the motion. Motion passed unanimously. Meeting adjourned at 6:30 p.m.