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the EDC consider providing$620,000 instead of the$700,000 as a grant. These funds would support the <br /> buy-out of Portable Products lease so that they could expand into Building N. Mr. Pelstring noted that by <br /> allowing Portable Products to break their lease obligation, which is estimated to have a present value of$2 <br /> million, Calpers would be losing a minimum of$180,000 in leasehold improvement, in addition to the$2 . <br /> million committed and Portable Products would be losing$115, 000 in leasehold improvement invested for <br /> their current location. <br /> TIF Consultant Dave Maroney wondered if Sims Deltec was interested in moving anymore and what <br /> guarantee would the City have that Portable Products would stay in Mounds View. Mr. Pelstring could not <br /> answer those questions and suggested that the City discuss this with Portable Products directly. Carlson noted <br /> that this request is still difficult to consider and she would feel uncomfortable recommending approval unless <br /> there could be strong justification for the use of the funds. Mr. Pelstring mentioned that this would provide <br /> for the continued growth and retention of two quality companies and Portable Products is unique and valuable <br /> to the community. Calpers is fairly neutral in the request but is trying to facilitate options to keep the <br /> company here. Carlson responded that the burden of growth should be on Fiscars and that they should have <br /> taken this into consideration when they purchased Portable Products. Larson agreed and felt that in a <br /> business buy out that the commitment to the lease is already on the books as a liability. Schmidt wondered if <br /> there were other ways to resolve this situation by possibly reengineering the distribution system. Goff <br /> wondered why the company was not here to represent themselves when they would be the key beneficiary. <br /> Carlson thought that a request for$62,000 may be reasonable but that the$620,000 was still out of the <br /> responsibility of the City. Maroney verified that he would never recommend this professionally as presented. <br /> Motion/Second: Carlson/Larson moved not recommend the request to fund the buy out of Portable Products <br /> lease and that Calpers and Portable Products should negotiate as a owner/tenant transaction only. This <br /> request is outside the realm of the City's responsibility. <br /> Motion Carried 5 ayes 0 nays <br /> A. Discussion of Mounds View Ring Road Concept • <br /> Bennett gave a summary of the ring road concept and discussions at the community meeting regarding the <br /> traffic concerns. The commissioners agreed that the ring road concept was good for the City and that the <br /> traffic signal is very important to the community center for the enhancement and safety of the City and its <br /> residents. The commission would like to continue to be involved with the development of the concept. <br /> Larson mentioned that it would be worthwhile to have the road moved away from Highway 10 as much as <br /> possible so that it does not look like a frontage road. This should be looked at taking into consideration the <br /> costs for mitigation of the wetland. <br /> 6. REPORTS FROM CHAIR, COMMISSIONERS AND STAFF: <br /> No reports <br /> 7. ADJOURNMENT: <br /> There being no further business before the Commission, this meeting of the Economic Development <br /> Commission adjourned at 8:55 a.m. <br /> Respectfully Submitted, <br /> Director of Econdmic Development <br /> C:AEDA-EDC\EDCMIN 11.97 <br /> 2 <br />