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HomeMy WebLinkAbout11-13-1995 EDA MinutesDATE: TIME: MEMBERS PRESENT: MEMBERS ABSENT: OTHER PRESENT: CITY OF LINO LAKES ECONOMIC DEVELOPMENT AUTHORITY MINUTES November 13, 1995 6:01 p.m. V. Reinert, L. Elliott, S. Kuether, J. Bergeson, A. Neal None Brian Wessel, Community Development Director Ron Batty, Bond Consultant Randy Schumacher, City Administrator Mary LaForest, EDA Secretary CONSIDERATION OF MINUTES EDA member Elliott moved to approve the minutes from the September 11, 1995 meeting. EDA member Neal seconded the motion. Motion passed unanimously. CONSIDERATION OF DISBURSEMENT Mr. Wessel explained to the board that the disbursement for $61,400 to Anoka County was for purchase of the Kaiser property on Hodgson Road and Birch Street. EDA member Kuether stated she wanted the money put into an interest bearing account until closing. She moved to disburse the funds contingent upon the funds being placed in an interest bearing account with interest to Lino Lakes until the title is transferred. EDA member Bergeson seconded the motion. Motion passed unanimously. CONSIDERATION OF CONTRACT FOR PRIVATE DEVELOPMENT BETWEEN EDA AND FOGERTY DEVELOPMENT/CUSTOM REMODELERS Mr. Wessel explained to the board that a development contract between the EDA and Fogerty Development/Custom Remodelers allows the EDA to purchase the 3 acres of property in the Apollo Business Park from the city, and to write down the cost of the property and sell it to the developer for $100,603.50. In the agreement the developer agrees to pay the EDA $110,603.50 at closing, and the EDA will reimburse the developer that amount on a pay-as-you-go basis. The agreement also arranges for the city to remove $84,207 in special assessments once the building is complete. Mr. Wessel stated that minor details had not been finalized with Fogerty Development. He requested the EDA approve the development contract contingent upon Mr. Wessel and Mr. Batty being comfortable with the final agreement. If the developer required any substantial changes, Mr. Wessel will bring the contract back to the EDA for approval. EDA member Kuether moved to approve the development contract with the contingency. EDA member Elliott seconded the motion. Motion passed unanimously. RESOLUTION ADOPTING MODIFIED TIF PLAN FOR TIF DISTRICT 1-7 Mr. Batty explained to the board that this modification of the plan was in response to the Fogerty Development/Custom Remodelers proposal for office/warehouse and leasable space in the city - owned portion of the Apollo Business Park. EDA member Elliott moved to adopt resolution No. 95-12. EDA member Bergeson seconded the motion. Motion passed unanimously. PUBLIC HEARING ON PROPOSED SALE OF PROPERTY IN APOLLO BUSINESS PARK EDA president Reinert opened the hearing at 6:20 p.m. Mr. Wessel explained that the purpose of the hearing was to receive comments regarding the sale of city -owned property to Fogerty Development/Custom Remodelers. No comments from the public were received. EDA member Kuether moved to close the hearing. EDA member Elliott seconded the motion. The hearing was closed at 6:21 p.m. RESOLUTION AUTHORIZING SALE OF PROPERTY TO FOGERTY DEVELOPMENT/CUSTOM REMODELERS Mr. Wessel explained that adoption of this resolution would complete the FDA's transaction for the sale of property to the developer. Closing of the property is scheduled for January. EDA member Elliott moved to adopt Resolution No. 95-13. EDA member Kuether seconded the motion. Motion passed unanimously. CONSIDERATION OF RESOLUTION AUTHORIZING PREPARATION OF A MODIFIED PROGRAM FOR DEVELOPMENT DISTRICT NO. 1 AND TIF PLANS FOR TIF DISTRICTS NO. 1-1 AND 1-2 Mr. Wessel explained that this modification was to transfer funds within the district. The city constructed the West Central trunk project from accumulated service area funds, which serves as a source of funds for many of the city's largest sanitary sewer projects. In order to provide a continuing source of funds for similar projects, this modification will allow the EDA to reimburse the city's fund from accumulated tax increment in TIF Districts 1-1 and 1-2. EDA member Kuether moved to adopt Resolution No. 95-14 authorizing preparation of the modified program and plans. EDA member Bergeson seconded the motion. Motion passed unanimously. CONSIDERATION OF RESOLUTION NO. 95-15 AMENDING RESOLUTION NO. 95-11 AUTHORIZING THE EDA TO ENTER INTO A PURCHASE AGREEMENT WITH ANOKA COUNTY Mr. Wessel explained that the EDA had authorized in September 1995 for the purchase of 6508 Hodgson Road from Anoka County, with the contingency that legal costs to obtain title be prorated among agencies benefiting from the sale. The city attorney later advised staff that this would not be possible, and the county will not agree to the sale unless Lino Lakes is willing to pay for the cost of gaining title. Mr. Hawkins also explained that the county would reject the EDA's contingency made earlier that evening regarding putting the purchase money into an interest bearing account. The county believes the price on this property was well below the market price, and has the right to spend the money. The county has agreed to refund the purchase price if title cannot be cleared. Mr. Hawkins does not anticipate any problems with gaining title. The city can't take down the building until it has title. The biggest risk is that the city will be out interest on the $61,400 if it can't get title. EDA member Elliott moved to adopt Resolution No. 95-15 authorizing the EDA to enter into a purchase agreement with the county. EDA member Kuether seconded the motion. Motion passed unanimously. EDA member Bergeson removed his second from the earlier motion to require the city's payment for the land be put into an interest bearing account until title was gained. EDA member Kuether moved to approve the disbursement to Anoka County without the contingency. EDA member Bergeson seconded the motion. Motion passed unanimously. Meeting adjourned, 6:30 p.m.