11-20-1997 - Laserfiche WebLink

Home Browse Search

M:\MASTERFILES\EDC MINUTES-RESOLUTIONS\EDC MINUTES\1997\EDCMIN11.DOC 2 evaluate the possibility of working with Everest to move into the proposed Building N of which the City has committed a large amount of TIF. Those thoughts were communicated to Portable Products in writing. Pat Pelstring handed out a response to the City regarding their request and mentioned that he was aware that Portable Products had contacted Everest regarding Building N as an alternative. The response requested that the EDC consider providing $620,000 instead of the $700,000 as a grant. These funds would support the buy-out of Portable Products lease so that they could expand into Building N. Mr. Pelstring noted that by allowing Portable Products to break their lease obligation, which is estimated to have a present value of $2 million, Calpers would be losing a minimum of $180,000 in leasehold improvement, in addition to the $2 million committed and Portable Products would be losing $115, 000 in leasehold improvement invested for their current location. TIF Consultant Dave Maroney wondered if Sims Deltec was interested in moving anymore and what guarantee would the City have that Portable Products would stay in Mounds View. Mr. Pelstring could not answer those questions and suggested that the City discuss this with Portable Products directly. Carlson noted that this request is still difficult to consider and she would feel uncomfortable recommending approval unless there could be strong justification for the use of the funds. Mr. Pelstring mentioned that this would provide for the continued growth and retention of two quality companies and Portable Products is unique and valuable to the community. Calpers is fairly neutral in the request but is trying to facilitate options to keep the company here. Carlson responded that the burden of growth should be on Fiscars and that they should have taken this into consideration when they purchased Portable Products. Larson agreed and felt that in a business buy out that the commitment to the lease is already on the books as a liability. Schmidt wondered if there were other ways to resolve this situation by possibly reengineering the distribution system. Goff wondered why the company was not here to represent themselves when they would be the key beneficiary. Carlson thought that a request for $62,000 may be reasonable but that the $620,000 was still out of the responsibility of the City. Maroney verified that he would never recommend this professionally as presented. Motion/Second: Carlson/Larson moved not recommend the request to fund the buy out of Portable Products lease and that Calpers and Portable Products should negotiate as a owner/tenant transaction only. This request is outside the realm of the City=s responsibility. Motion Carried 5 ayes 0 nays A. Discussion of Mounds View Ring Road Concept Bennett gave a summary of the ring road concept and discussions at the community meeting regarding the traffic concerns. The commissioners agreed that the ring road concept was good for the City and that the traffic signal is very important to the community center for the enhancement and safety of the City and its residents. The commission would like to continue to be involved with the development of the concept. Larson mentioned that it would be worthwhile to have the road moved