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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: ��U� CN2 C�<<J)G�JCo��;; -� A � �= n,n •A f �����u ~ � S ogrP3t ' Parinc[s�"Q 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. _- : . _ _ _ _ . _ _ ___ _ __ , 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 - �.�V�T ��G� C�(ll)[�`��f�;)�,� �'•,� iii��inl,'� ~Oki�,1S , Partnecs�`�QS 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