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EDC Minutes May 21, 2004 Page 2 members. Helgemoe reminded the commissioners that Spring Golf Tournament will be held at Majestic Oaks on Tuesday and is open to the public. D. Report of Staff: 1. Preliminary Report on Hidden Hollow Utility & Street Improvements & Approval of the Preliminary Plat/Plan Submittal for Hidden Hollow Subdivision: Backman had sent copies of the preliminary feasibility study put together by Bonestroo to the EDC members. He reviewed several components, including treating wetlands, right-of-way issues, storm sewer improvements, and total project costs. The city’s engineering company forecasts total project costs as $520,000 for streets and utilities. ProCraft had estimated it to be over $320,000. The largest elements are sanitary sewer ($130,000) and streets ($112,000). Johnson asked if the costs for the sewer trunk line will be split between the City and Mounds View. Backman responded that the north portion of the line ($85,000) and a utility access path ($9,400) probably will be paid by the City. 2. Preliminary Plat / Plan Submittal Developer Activities—Velmeir Companies (Amoco Site): Backman distributed copies of the latest site plans for the CVS Pharmacy site. On Wednesday the preliminary plat was approved by the M.V. Planning Commission. On May 24, 2004 the City Council is expected to approve the preliminary plat. One issue that came up was pertaining to the minimum lot area needed for the 23 housing units at Silverview Terrace. Velmeir Companies, the developer, is buying a wedge of property (on the north side) from Mr. Fox that results in Fox’s property being 4,300 sq. ft. below the minimums. Ultimately the developer moved the western boundary of Silverview Terrace by 12 feet. The developer continues to handle all stormwater on site. 3. Approval of the Termination of the Development Agreement between the Mounds View EDA and Michael Investments for the Building N Project: As the members are aware on February 4, 2004 the owners of Building N signed a Purchase Agreement to sell the building with Bethlehem Baptist Church. In April the City approved an amendment to allow religious organizations within the PUD, and the owners asked to be released from their obligations under the Development Agreement. On May 10th the EDA approved the termination of the Development Agreement between the EDA and Michael Investments. Subsequently on May 14, 2004, the owners of the building indicated that it was their intent to be released from the obligations (e.g. indemnification), but not to terminate the Agreement and stop future developer payments (even after the sale of the property in Mid-June 2004). Backman sought legal advice from Briggs & Morgan. A May 19, 2004 memo outlined three options for the City to consider: 1) Modify the terms of the Agreement to specifically release Michael Investments from any indemnification obligations and the City retains any future developer payments. 2) Rescind the termination of the Development Agreement and continue making developer payments to Michael Investments (most likely for August 2004 and February 2005). 3) Return to the plan as set forth in the Purchase Agreement where the Agreement and TIF Note are assigned to the church, BBC assumes Michael Investments, and Michael Investments is entirely released. The EDA could then negotiate with the church to terminate the Agreement. Johnson indicated a preference for option one. Helgemoe preferred option two. McDonald and Entsminger were undecided and wanted more information before making a decision. The EDA will consider this issue next week. 4. Appraisal for Acquiring Gas for Less (2525 Co. Hwy 10): As the Commissioners are aware the Olson Harvey Convenience Stores bought the gas station at 2525 County Highway 10 in 2002 for $1,080,000. The real estate broker indicates the current sale price is $820,000. On April 26, 2004 the Mounds View Economic Development Authority authorized staff to