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EDC Minutes February 20, 2004 Page 2 D. Report of Staff: 1. Everest Development Request for Supplemental TIF Payments for Building N Project: Backman noted that the EDC had discussed the supplemental TIF request at its January meeting. The request was going to be presented at the February 9th of the Mounds View EDA. This was postponed because Michael Investments (Everest Development) wanted more time to prepare and respond to potential questions. Backman prepared a memo for the February EDA meeting. It states that the EDC adopted a motion not recommending EDA approval of the proposed supplemental TIF payments based on the documentation presented and reviewed by the EDC. 2. Signed Purchase Agreement by Bethlehem Baptist Church to Acquire Building N: Simultaneously with the supplemental TIF request, Everest has been negotiating to sell the building. The interested buyer, Bethlehem Baptist Church (BBC), is located in downtown Minneapolis and would like to establish a branch of the church in the north metro area. Temporarily it is holding services at Northwestern College. On February 12, 2004 the church signed a purchase agreement to acquire the building for $5.6 million. The purchase is contingent upon the City approving an amendment to the PUD to allow a religious organization to be located in the Mounds View Business Park. Backman discussed with City Administrator Kurt Ulrich the issue of a tax-exempt church locating in a commercial/industrial area. He suggested contacting the City of Brooklyn Park. They negotiated a Payment in Lieu of Taxes (PILOT) Agreement with Living Word Christian Center during the 1990’s and are located in the middle of an industrial park. Brooklyn Park issued a Conditional Use Permit. Field inquired if the BBC had been informed about the PILOT example. Backman met with the church in January and BBC indicated that they were open to considering the idea as a way to reimburse the city for services provided. Field asked about the impact on surrounding businesses. Backman replied the church intended to have activities throughout the week, not just on Sundays. The issue goes before the Planning Commission on March 3, 2004. They will be more focused on “use” aspects. (There is sufficient parking for the church at the proposed site). The City Council will be more focused on the financial questions (eg. TIF). Backman discussed the TIF issues with our TIF legal counsel, Briggs & Morgan. Mary Ippel, in a memo to the City, recommended eliminating the TIF Agreement and Note if the church acquires the property. Johnson asked for EDC direction on the issue. Entsminger is interested in exploring the possibility for an agreement. Belting was more supportive of the PUD amendment with a PILOT being considered. Johnson made a motion to explore all options regarding PILOT or other arrangements relating to the BBC’s acquisition of Building N. Seconded by McDonald. Field would like to see the church pay for legal fees related to any such agreement. Motion passed 5 to 0. 3. Developer Activities—Velmeir Companies (Amoco Site): Backman indicated by John Kauppila, Velmeir, indicated that they are finalizing agreements with all landowners, including BP Amoco. 4. Signed Purchase Agreement by Pro Craft Homes & Fyksens / Developer Agreement (Woods of Mounds View): Backman distributed a revised Development Agreement to EDC members. On February 4th Pro Craft Homes and the Fyksens signed a purchase agreement. Backman believes that progress was made after Plan C was presented to the EDA. With the Fyksen property back in the project, Plan B is back and the project encompasses 17 single- family homes. On February 23rd the City Council will consider acquiring Lot 36 from Ramsey County for $68,901.14. It is a tax-forfeited property with a use deed.