HomeMy WebLinkAbout11-12-1996 EDACity of Mounds View
Economic Development Authority
November 12,1996
Meeting No. �8
AGENDA
CALL TO ORDER
2. ROLL CALL - President Linlce
Vice President Blanchard
Secretary Trude
Commissioner Quick
Commissioner Hankner
3. APPROVAL OF AGENDA
EDA ACTION: ATD
Comments:
4. APPROVAL OF MINUTES:
September 23, 1996
EDA ACTION:
Comments:
EDA
PAGE TWO
NOVEMBER 12, 1996
5. CONSENT AGENDA
No items on consent agenda.
6. PUBLIC HEARING
No public hearing scheduled for this meeting.
7. EDA BUSINESS
A. Consideration of Resolution No. 96-EDA-56 Authorizing the Negotiation and
Execution of a Contract for Professional Services with SRF Consulting Group, Inc.
For the Study of Highway 10, Section 9. Staff Report No. EDA-96-60C
EDA ACTION: ATD
Comments:
B. Consideration of Resolution No. 96-EDA-55 Authorizing the Acquisition of Certain
Property for Redevelopment Purposes and the Execution of a Purchase Agreement
for that Purchase. Staff Report No. EDA-96-61 C
EDA ACTION: ATD
Comments:
8. REPORTS:
Re�ort of EDA Board Members:
1. Report of President Linke:
2. Report of Vice President Blanchard:
EDA
PAGE THREE
NOVEMBER 12, 1996
3. Report of Secretary Trude:
4. Report of Commissioners:
a. Commissioner Quicic:
b. Commissioner Hanlcner:
5. Report of Executive Director:
6. Report of Treasurer:
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REQUEST FOR EDA CONSID�RATION
STAFF REPORT
EDA MEETING DATE
November 12, 1996
Agenda Section 7A
Report #: EDA 96-60C
Report Date: 1 l /8/96
Item Description: Consideration of Resolution Authorizing the Negotiation and Execution of a Contract for
Professional Services with SRF Consulting Group, Inc. for the study of Highway 10, Section 9
Explanation/Summary (attach supplement sheets as necessary)
Summary:
At the November 4th worlc session, SRF Consulting Group, Inc. gave a brief presentation regarding their proposal for
the study of Highway 10, Section 9 as requested by the EDC and approved by the EDA in September. The goal of the
study is to develop a coordinated vision and prepare schematic plans for the future development of undeveloped aud
underdeveloped areas of Highway 10 located between County Road I and Highway 10. The objective is to maximize
the tax base of the City and pro�ide the framework for a quality aesthetically pleasing physical envii•onment, wllile
protecting and enhancing the natut•al environment and surrounding land uses in the area.
SRF Consulting Group, Inc. is teaming up with Towle Real Estate to provide a variety of services to achieve the City's
goal for the study. They are proposing a process of evaluation and visioning tliat includes consensus building by all
stal<eholders in the area while providing forums for public input throughout the process. SRF will analyze the issues,
opportunities and constraints and create three redevelopment strategies. In addition, with the assistance of Towle Real
Estate, a market overview will be conducted to identify the potential for types of uses in the area. It is expected that
the study will be a three to four month process with a final product presented to the community at the end of the
process. The plan will be useful in marlceting the properties and guiding staff when pt•oposals for development are
presented by the private sector. in addition, the study will be helpful in the process to update the comprehensive plan
which is scheduled to begin in 1997.
The Economic Development Commission (EDC) interviewed five candidate �rms for the study of Highway 10 -
Section 9 on October 24th and October 29th. The majority of the proposals were very competitive regardiiig services
offered and the price range for those services. The EDC feels that community participation from the stakeholders in
the area is very important as well as inarlcet analysis a�id a final product that can be used to attract developers for the
desired uses.
After careful considerations and two mornings dedicated to the interviews, the EDC, through a motion made by Dan
Nelson and seconded by Rosemary Goff, recommended SRF Consulting Group for a maximum cost of $25,000 to be
taken from the tax increment fund that is set aside for the redevelopment of Highway 10.
Attached is a resolution that authorizes staff to negotiate and execute a contract with SRF Consulting foe the study.
The maxitnum cost of the project would be $25,000.
Cathy Benn , con. Dev. Coordinator
RECOMMENDATION: Waive the readiilg and approve Resolution No. 96-EDA 56 Approving and Authorizing the
Negotiation and Execution of a Contract with SRF Consulting Group, Inc.
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MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY
RESOLUTION NO. 96-EDAS6
COUNTY OF RAMSEY
STATE OF MINNESOTA
RESOLUTION AUTHORIZING THE NEGOTIATION AND EXECUTION OF A
CONTRACT FOR PROFESSIONAL SERVICES WITH SRF CONSULTING GROUP,
INC. FOR THE STUDY OF HIGHWAY 10, SECTION 9
It is hereby resolved by the Board of Commissioners (the "Board") of the Mounds View
Economic Development Authority (the "Authority") as follows:
1. RECITALS:
(a) the Authority has the powers provided in Minnesota Statutes, Sections 469.124 to
469.124 and 469.090 to 469.108 (collectively the "Act").
(b) Pursuant to and in furtherance of the objectives of the Act, the Authority has
undertalcen a prograzn to promote development and redevelopment of certain land within
the City of Mounds View and in this connection is engaged in carrying out the Mounds
View Economic Development Project (the "Project") within the City.
(c) There has been approved pursuant to the Act a Project Plan for the Project.
(d) The redevelopment and development of property within the Project are stated
objectives of the Project Plan.
(e) In order to achieve the objectives of the Project Plan, the Authority has determined
the need to contract with urban design, plaruung, transportation, engineering, land use and
environmental professional service companies to aid and assist in the redevelopment and
development of property within the Project.
(� The Authority desires to study approximately 33 acres of land located in the City
along Highway 10 between County Road I and Spring Lake Road (the "Section 9 Study
Area") which has been identified as a priority area for redevelopment within the City.
(g) It has been recommended by the IVlounds View Economic Development Commission
(the "Commission"), an advisory group to the Authority, to enter into a contract for
professional services (the "Contract") with SRF Consulting Group, Inc. to complete a
study of the Section 9 Study Area for an amount not to eYCeed $25,000.
__.--__ ,_ _ _ : _ _
EDA RESOLUTION NO. 96-EDA56
PAGE TWO OF TWO
2. The Board hereby determines that the Authority's negotiation and execution of a Cor�tra��
would be in furtherance of the Project Plan and hereby approves and authorizes said actions,
including the negotiation and execution of the Contract by the officers of the Authority in their
discretion and at such time, if any, as they may deem appropriate.
3• Upon final negotiation, execution and delivery ofthe Contract, the officers and
employees of the Authority (including members of the City staff and Commission, acting u� the�r
capacity as staff to the Authority as well) are hereby authorized and directed to take or cause to
be taken such actions as may be appropriate or necessary on behalf of the Authority to implemex�t
the Contract which is being accomplished for redevelopment purposes.
4. The Board hereby determines that the negotiation, execution and performance of the
Contract will help realize the public purposes of the Act and are in furtherance of the Plan.
Adopted by the Board of Commissioners of the Mounds View Economic Development A�xtlxoY��
on November 12, 1996.
ATTEST:
(SEAL)
President
Executive Director
Executive Director's Certifcate
I, the undersigned, being the duly qualified and acting Executive Director of the Mourzds
View Economic Development Authority, do hereby certify that I have carefully coznpared the
attached and foregoing resolution adopted at a regular meeting of the Board of Commissioners of
said Authority duly called and regularly held on the date herein indicated with the original thereof
on file in my office and i further certify the same is a full, true, and correct copy thereof, insoiar as
the same relates to the negotiation and approval of a certain Contract for professional serv�ces
respecting to the study of redevelopment property located on Highway 10 between County Road Y
and Spring Lake Road.
I fiirther certify that Boardmember
resolution, that Boardmember
moved the adoption of saia
seconded said motion, and that upon a vote
being taken thereon, the following Boardmembers voted in favor thereof:
and the following Boardmembers voted against the same:
whereupon said resolution was declared duly passed and adopted.
WIT`NESS my hand as such Executive Director of said Authonity the day of
, 1996.
EYecutive Director
Mounds View Econorriic
Development Authority
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REQUEST FOR �DA CONSIDERATION
STAFF REPORT
EDA MEETING DATE
November 12, 1996
Agenda Section 7B
Report #: EDA 96-61 C
Report Date: 11/8/96
Item Description: Consideration of Resolution Approving and Authorizing the Acquisition of 2975
Highway 10 for Redevelopment Purposes and the Execution of a Purchase Agreement for that Purchase
Explanatlon/Summary (attach supplement sheets as necessary)
Summary:
Over the past year, the EDA has discussed the status of property located at 2975 Highway 10. It has been vacant since
the summer of 1995 and prior to that the property was a used car sales lot. In June of 1995, the property went into
foreclosure with an outstanding note of $150,000. As part of foreclose proceedings, there was a sherif sale, whereby
the t�ote on the property could be purchased. Since there was no sale, the banl< continued to hold the note and were
required to go through a redemption period of 6 months. The redemption period allows the owner to malce the note
current and get the property bacic within the six month period. The redemption period ended October 5, 1996 with no
action fi'om the owner. The City has been in close contact with the banlc regarding the status of the property. As a
courtesy, loan officer Glen McCabe offered the sale of the property to the City prior to putting it on the marlcet.
The purchase was discussed by the EDA at the Novembei• 4th work session and staff was directed to negotiate a
purchase for $106,000 which would cover bacl< property taxes. In addition, the EDA suggested several contingencies
as part of the sale such as payment of all past due City fees, removing debris and hazardous substances from tlle
property and covering the cost for a Phase I Environmental Assessment.
Norwest was willing to draw up a purchase agreement including the EDA's contingencies but the same day received
another offer from a long time banlc customer (1Cen Clark) interested in using the property for an "insta-lube" station.
Not•west is currently evaluating the pros and cons of each offer.
ICen Clar•Ic representing Amoco and Bill Clarl< Oil Company met with the Community Development Staff regarding
the procedures for an "insta-lube" on the site. It was explained that he would need to obtain a conditional use permit
from the Planning Commission and Council for this use and the process may talce approximately 120 days. Staff
reviewed the additional recoinmended requirements that should be met to improve the property prior to issuance of a
conditional use permit. Those requirements included improvement of parlcing lot with curbing, driveway access more
clearly defined, additional landscaping, expand, repair or replace existing fence which serves as a buffer to the
residential neighborhood, paiut exterior of building and remove window signs and replacement of parlcing lot liglits.
Norwest is aware of the process, additional requirements aud the possibility that the conditional use permit will not be
�ranted if all of the requirements are not met. Planning Commission reviewed a similat• case recently fi•om another
applicant who recently requested that the City delay final consideration.
�
Cathy Benne , c n. Dev. Coordinator
RECOMM�NDATION: Waive the reading and approve Resolution No. 96-EDA 55 Approving and Authorizing the
Acquisition of 2975 Highway 10 for Redevelopment Purposes and the Execution of a Purchase Agreement
Summary (Page Two of Two)
Staff Report Noa EDA 96-61C
I have prepared a resolution which would provide staff with the authorization to negotiate and execute a purchase
agreement. Once Norwest mal<es a decision rega�•ding who they would like to sell the property to this would allow
staff to continue the process without further delay. if a purchase agreement is signed, Norwest would require some
earnest tnoney toward that purchase. I am proposing 1% of the purchase price which is a standard percentage for
earnest money in real esfate transactions.
The purchase price of the property would come fi•om available tax increment funds that were set aside for Highway 10
redevelopment. This property was identified as a priority as part of the discussion by the EDA earlier this year
regarding redevelopment sections along Highway 10. It was identified as blighted and non conforming with the
surrounding land uses and the suggested strategy was to consider land use options and redevelopment/acquisition
possibilities.
The County Assessed value of the property is $75,300 with an estimated marlcet value of $125,500. Total taxes paid iu
1995 totaled $3,184 witli City taxes totaling approximate(y $573. Earlier this year the property was being offered for a
sale of $225,000.
Purchasing the pi•operty would allow the City to evaluate if the current land use is compatible with the surrounding
area and develop strategies for its redeveloptnent.
MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY
RESOLUTION NO. 96-EDA55
COUNTY OF RAMSEY
STATE OF MINNESOTA
RESOLUTION APPROVING AN]) AUTHORIZING THE ACQUISITION OF 2975
HIGHWAY 10 FOR REDEVELOPMENT PURPOSES .AND THE EXECUTION OF A
PURCHASE AGREEMENT FOR THAT PURCHASE
It is hereby resolved by the Board of Commissioners (the "Board") of the Mounds View
Economic Development Authority (the "Authority") as follows:
1. RECITALS:
(a) the Authority has the powers provided in Minnesota Statutes, Sections 469.124 to
469.124 and 469.090 to 469.108 (collectively the "Act").
(b) Pursuant to and in furtherance of the objectives of the Act, the Authority has
undertaken a program to promote development and redevelopment of certain land within
the City of Mounds View and in this connection is engaged in carrying out the Mounds
View Economic Development Project (the "Project") within the City.
(c) There has been approved pursuant to the Act a Project Plan for the Project.
(d) The redevelopment and development of property within the Project by private
developers are stated objectives of the Project Plan.
(e) In order to achieve the objectives of the Project Plan, the Authority has determined to
provide substantial aid and assistance through the financing of certain public costs of
development.
( fl The Authority desires to acquire the approximately .63 acres of land located in the
City at 2975 Highway 10 (the "Property"), bounded generally be Highway 10 and Spring
Lake Road, and it has been proposed that the Authority enter into a purchase agreement
(the "Agreement") with the owners of that property for that acquisition presently
estimated at a cost of $106,000.
(g) The Authority authorizes an eYpenditure no greater than 3% of the pwrchase price to
be used for closing costs.
EDA RESOLUTION NO. 96-EDA55
PAGE TWO OF TWO
2. The Board hereby determines that the Authority's execution of the Agreement and the
subsequent acquisition of the Property would be in furtherance of the Project Plan and hereby
approves and authorizes said actions, including the execution of the Agreement by the officers of
the Authority in their discretion and at such time, if any, as they may deem appropriate..
3. Upon execution and delivery of the Agreement, the officers and employees of the
Authority (including members of the City staff, acting in their capacity as staff to the Authority
as we11) are hereby authorized and directed to take or cause to be taken such actions as may be
appropriate or necessary on behalf of the Authority to implement the Agreement, including th�
acquisition of the Property, which is being accomplished for redevelopment purposes.
4. The Board hereby determines that the execution and performance of the Agreement and th�
acquisition of the Property will help realize the public purposes of the Act and are in furtherance
of the Plan.
Adopted by the Board of Commissioners of the Mounds View Economic Development Auf.hority
on November 12, 1996.
ATTEST:
(SEAL)
President
Executive Director
Executive Director's Certificate
I, the undersigned, being the duly qualified and acting Executive Director of the Mounds
View Economic Development Authority, do hereby certify that I have carefully cornpared the
attached and foregoin� resolution adopted at a regular meeting of the Board of Commissioners of
said Authority duly called an.d regularly held on the date herein indicated with the original thereof
on file in my office and i further certify the same is a full, true, and correct copy thereof, insofar as
the same relates to the appraval of a certain Purchase Agreement respecting redevelopment property
located at 2975 Highway 10.
I further certify that Boardmember
resolution, that Boardmember
moved the adoption of said
seconded said motion, and that upon a vot�
being taken thereon, the following Boardmembers voted in favor thereof:
and the following Boardmembers voted against the same:
whereupon said resolution was declared duly passed and adopted.
WITNESS my hand as such EYecutive Director of said Authority the
, 1996.
day of
Executive Director
Mounds View Economic
Development Authority