07-31-2002 - Laserfiche WebLink

Home Browse Search

EDC Minutes July 31, 2002 Page 3 4. Six Month Report to City Council: Members were sent a copy of Backman’s activity report that was presented to the City Council on June 24th. He briefly highlighted the main areas covered in the report: Business visits, business prospects, meetings with developers/property managers, TIF activities/meetings, chamber of commerce activities, I- 35W Corridor Coalition meetings, and other ED activities. Sonterre mentioned that the City Council recognizes and appreciates the work that Backman is doing; and that the economic development work is moving in a positive fashion. 5. EDAM Summer Conference: Backman attended the Economic Development Association of Minnesota (EDAM) Summer Conference at Madden’s Resort near Brainerd (6/26 – 6/28). In addition to the networking opportunities, Backman described the presentations as good and mentioned several to the EDC members. 6. Manufactured Home Park Revitalization Public Meeting: Backman distributed a sample letter that was sent inviting all Moundsview MHC residents to a public meeting at the Community Center on July 10th to discuss the program. In addition to the City, Ramsey County and Durand & Associates had presenters. Attendance at the meeting was excellent—about 40 people came. More importantly, all but two had manufactured homes in the target age (1976 or earlier). Field asked about verifying the age and numbers of units. Backman mentioned a survey that indicated there were approximately 55 units (out of 153) in the targeted age category. The next steps are finalizing the application format for homeowners (hopefully ready by mid-August) and the role of the Housing Resource Center (income verification and other administrative activities). The HRC will hold an open house in their new north metro office in Shoreview on August 3rd. 6. EDC BUSINESS A. City Council Action re Everest Request for Revised C.G. Hill Development Agreement: Following the meeting with the City on May 30th where they agreed overpayments were made over six years regarding C.G. Hill (totaling $12,073.76), Everest requested that the TIF Note for C.G. Hill be extended for 10 ½ years. This request was considered at the City’s July 1st Work Session. Backman presented four possible courses of action for the City Council: 1) approve the Everest request; 2) make a lump sum payment on principal balance at end of the TIF Note; 3) extend the term of the TIF Note by three years; or 4) leave the agreement as-is (expiring on 8/1/03 with unpaid principal balance). The consensus of the Council was to go with Option 4. Backman noted that with all “Pay-as-you-go” TIF Notes, developers are reimbursed for eligible development costs over time. They do so with the knowledge that they are “at risk” if increment does not materialize as expected. He sought the legal advice of Jim O’Meara, our TIF attorney, who concurred with our interpretation of the Agreement. Backman notified Everest on July 7th. B. Abbey Carpet—Prospect Activities: Backman has been interacting with Abbey Carpet, a floor covering business located in New Brighton, over the past six months. The EDC at its 6/21/02 meeting approved a resolution directing Backman to explore financial assistance that would be TIF funds allocated for demolition of the old Perkins Restaurant building, and/or a tax abatement with a graduated rate over five years. On July 17th John Kopas provided a written offer to Dan Hall of $700,000 for the purchase of the property. The purchase agreement was signed the next day (and a copy provided to the City). Mr. Kopas indicated that the greatest need was for demolition assistance. It would be paid on a reimbursement basis up to $25,000 and anything above that figure would be borne by the developer. Backman prepared a resolution that was considered and approved (4 to 1) by the City Council on July 22nd. Mr. Kopas is working with an architectural firm on the building site plan for the 20,000 sq. ft. building.