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Mounds View EDA January 8, 2018 Regular Meeting Page 2 changes the Council had proposed for the agreement and noted the City Attorney had reviewed 1 these changes. Staff recommended approval of Preliminary Development Agreement with INH. 2 3 Vice President Gunn read a statement aloud for the record stating the Preliminary Development 4 Agreement was nothing more than an agreement to continue negotiations and to do so 5 exclusively. She explained this agreement does not bind the EDA to approving the project or 6 selling the land. She indicated in the private sector this type of agreement is called an access 7 agreement which includes a letter of intent and serves the same purpose. She reported the 8 agreement ensures that the City will not sell the land while an engaged buyer is completing due 9 diligence on the property with the intent to purchase. 10 11 President Mueller read Resolution 18-EDA-303 in full for the record. 12 13 MOTION/SECOND: Gunn/Hull. To Adopt Resolution 18-EDA-303, approving a Preliminary 14 Development Agreement with INH Property Management, Inc. by the Mounds View Economic 15 Development Authority. 16 17 Commissioner Meehlhause reiterated this was a preliminary agreement and allows the developer 18 to complete a feasibility study to determine if the developer would like to come forward with a 19 project. He reported this was a standard operating procedure for cities and noted this same 20 procedure was followed with the Beard Group in 2015. 21 22 Commissioner Bergeron called the Authorities attention to the third whereas, stating the specialty 23 retail has been spelled out in the Resolution. He commented that it appears all of the developer’s 24 apples have been placed in one basket and they would like to proceed with the gun club. He 25 stated in the fourth whereas, the smaller traditional retail was an alternate and not in conjunction 26 with the development. He expressed concern with these changes and feared the gun club had 27 been solidified into this proposal. 28 29 President Mueller read Section 7 of the Agreement noting the developer would be solely 30 responsible for all costs incurred by the developer and will pay the EDA a non-refundable sum of 31 $7,500 as reimbursement of its administrative costs. She reported this sum would cover 32 administrative fees taken on by the City. She explained that in order for a project to move 33 forward on this property a development agreement had to be in place and would allow INH the 34 opportunity to develop more detailed plans for their project. These detailed plans would be 35 reviewed by the Council and discussed at public hearings in the near future. 36 37 Commissioner Bergeron stated he wanted to make the developer aware of his stance on the 38 project right from the beginning. 39 40 Commissioner Hull asked if the residents would be allowed to speak at the EDA meeting. 41 President Mueller recommended these comments be taken at the City Council meeting. 42