Agenda Packets - 2007/11/13 - Laserfiche WebLink

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Item No: 11(B)1 Meeting Date: Nov 13, 2007 Type of Business: Reports Administrator Review: _______ City of Mounds View Staff Report To: Honorable Mayor and City Council From: James Ericson, Community Development Director Item Title/Subject: Report Concerning Potential Development Opportunity at the Mermaid Introduction: This is a brief report to let the Council know that the Mermaid is once again actively exploring potential development opportunities on their property located at the corner of County Road 10 and County Road H. Background: Some members of the Council may recall that the Mermaid had applied for approval of a new hotel addition last year (2006) however no plans were submitted and ultimately the request was withdrawn. The year before that (2005), the Mermaid had requested and received preliminary concept plan approval for a hotel addition to be attached to the existing hotel and would sit alongside County Road H. The staff report from the March 28, 2005 meeting is attached for your reference. Discussion: The Mermaid presently would like to subdivide their parcel to create a new 1.26-acre lot at the immediate corner of County H and County 10. They have erected a real estate sign at that corner advertising for the lot. I have been in communications with both Charlie Hall and Dan Hall and explained the process involved in creating a new lot. Suffice it to say that such a process would require many months to process and would necessitate multiple planning approvals. Plat. The first step in such a process would be the major subdivision. The Mermaid or their designee would need to submit a preliminary plat which carves out the 1.26 acre parcel for subsequent redevelopment. There are issues associated with such an action, not the least of which is potential impacts to the 2001 TIF Revenue Bond which was approved to finance the hotel development. Our bond counsel, Briggs and Morgan, confirmed that the bond covenants prohibit any subdivision, sale or lease of the land. I have communicated to the Mermaid’s attorney that it could be the case that the TIF bond would need to be paid off to permit such a subdivision. The alternative would be to receive written consent from the bondholders to proceed with the subdivision. This is necessary because a subdivision and sale would decrease the amount of increment generated which is necessary to make the bond payments. Zoning. The property is zoned PUD, or, Planned Unit development. The only uses permitted on the site are hotel, restaurant, lounge, banquet center and bowling. Thus, any proposed redevelopment on the corner would need to be consistent with these permitted uses or a rezoning request would be required.