HomeMy WebLinkAbout06-24-1996 EDA'I�IOL71�1�� �IEW ECOI�OI�/IIC I���1��,OPIVIEN
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JLTN� �� 1�96
TII�/��. �l�/il�/[EDIATEL� �'OL.�,��ING COUN
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; �1t1C�;1�Yl�TC� NO. 24:
1. CALL TO ORDER
2. ROLL CALL - President Linlce
Vice President Blanchard
Secretary Trude
Commissioner Quicic
Commissioner Hanlcner
3. APPROVAL OF AGENDA
EDA ACTION: ATD
Comments:
4. APPROVAL OF MINUTES:
May 28, 1996
EDA ACTION: ATD
Comments:
rTxoR�TY :
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EDA
PAGE TWO
JUNE 24, 1996
5. CONS�NT AGENDA
No items on consent agenda.
6. PUBLIC HEARING
No public hearing scheduled for this meeting.
7. EDA BUSINESS
A. Consideration of Resolution 96-EDA-49 Approving and Authorizing the Acquisition
of 8265 Silver Lalce Road Property for Redevelopment Purposes and the Execution
of a Purchase Agreement for that Purchase, Staff Report No. EDA-96-54C
EDA ACTION:
Cominents:
8. REPORTS:
Re�ort of EDA Board Members:
1. Report of President Linlce:
2. Report of Vice President Blanchard:
3. Report of Secretary Trude:
4. Report of Commissioners:
a. Commissioner Quicic
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EDA
PAGE THREE
JCJNE 24, 1996
b. Commissioner Hanlcner:
5• Report of Executive Director:
6. Report of Treasurer:
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PROC�GDINCS OF TH� MOUNDS VI�W
ECONOMIC DEVELOPMENT AUTHORITY
Meeting No. 23
. May 28, 1996
Mounds View City IIall
2401 Hwy. 10, Mounds Vie�,v MN 55 I I 2
CALL TO ORDER
The Economic Dcvelopment Authorily was c<�Iled to order by President Linkc on May 28, I)96 �t 8:45 p.m.
ROLL CALL
MEMT3ERS PRESI;N'[': President, .ien�� I.,inke; Vice President Phyllis l�lanchard, Secretaiy, Julie Trude;
Commissioner G<uy Quick, Commissionu- Sue Hanlaier, Cily /�clministr�itc�r Chucl: Whiting and Fconomic
llcvelopment Coordinator Cathy 13ennctt.
O'1'I-I�RS PRF,SLN'1`. Lioh Lc�ug, Cil� Alturnep
APPROVAL OF AGENDA:
it�/O'1'ION/.SECDA�U: "�rude:/131�ncht�rd to Ap��rovc lhe �DA /�gcnda ��s ��rescnted.
VOT�: 5 aycs 0 nays Motion Can'izd
APPROVAL OF MINUTES:
Ms. Hanla�er note� onc coil�cctiim e>n l'age 2, line 4. 'l l�� minutes ,houlcl b� changed to read as follows:
��Ms. Ha�ila�cr ��ske�l Commissionzr'I'rud� ho�v ;lie knc�v <�ncl �vhcn she knc�-� th��t Commissiona- I Iankner �v��s
�ware th�t the EDA �vould c�ll to ordcr ancl take action. Commissioner 'l�rude saicl sl�e ��resumed.
Additiotlally, lines 8 and �) rclerencing thc support of the ��ulice to the ��tu-chasc �ire ne�t c��mpletely accuralc
and asked for some claritic�tion li�om Conunis,i��ner �IYude".
Ms. 'Trude st�ited she felt th� ininutes �vcrc accuratc. She did not leel adcling lhe coircctions added any value to
t11C Rll11UCCS.
rL/OTIUN/,SECOND: H<inkner/(,)uick to <�pprovc U�e minutes <�l the I�I�A M�cting uf M�y 13, 19)G A�
ntv�NULn.
V(�1 L?: 4 tly��
CONSENT AGGNDA:
I n�iy (�I�rude) Motiun Carried
I�here �vere no item; placecl cm tlie Cunscnl l�genda lur lhis mccting.
PUBLIC H�ARINGS:
"I�here wcre ne� Public I learin�;, schc�luled I'cir lhis mccUng.
EDA BUSINESS:
�DA Mceting #23
May 28, 1996
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A. Consideration of Continuing Operatian of th� Bel-Rae through July.
Ms. ]3eruiett stateci �t the last 1:17/� mccting, shc �vas asl:ed to look into �vhat it �.ve>ul�l tnke to oper�tc thc Bel-
Itae tlu'ough July. Mr. Jambor prei�ared u cash Ilo�.v projcction based upon the regtilar Tll�u'sday and Fi-iday
night cvents which cun�cntly havc ti stc��dy follc��vin�.
Thc city would be rcquir��J to halcl �� liquc�r liccn�e t�nci secitre insurtincc coverage lix lh�it license in addition to
the gencral li�bility cover�ge lbr Uie building ��nci it's conlents. Mr. Jan�bor oPYercd to oversce thc operation of
U�e cvents for the city tlu'ough July and beyond if th� city su desir�s. Nv�. Loiig, City Attorney> prep�red a
manage�ncnt a�,n�eement �vhich ���ould allo�v Mr. .lambe�r tu hir� labor an�l run th� events as he has done so lor
many years, attd it has hcen r�vic�-ved by Mr. Jillll�)l)1"S. I�1� agreeittent �vc�uld allo�-v Mr. Jambor to takc �0°/,
of the protits after all ol�thc o��cr�iting expense, are ce�vercd, to covcr the ce>;l ot overseeing the o��eration. Il
tlle cily �vcre to continuc opertition hcyon�l .lul��, th� prolil ��erccnta�e ��'ould increase.
Ms. T3cunett prcpari;d a spreadshc�l bt�secl on the ticket /bar salcs anc3 thc t'e�; fi>r th� evcnts in July. Shc also
cslim�tcd tl�c gencral operating cx��cuses lhal �voul�l he incun�ccl in kecping thc ballrootn open another month.
Once th� operating cxpenses have been takcn out nf thc revcnuc, thc cify ���oul� cnd up ���ith a neg<ttive cash
tlo�-v.
A discussion i'ollowecl in r�gard to the cstimated r�vcnue/ey�cnscs. Ms. 13cniiatt ueried th�t Mr. J��mbors glve
vcry consavative cstim��te�.
Ms. "1'rtidc �vondered iC it �vuuld l,e h�nel7cial t�� ce�ntinu� uperatiim to hel�� cleG�ay th� cost ol�thc utilitics.
Ms. I3ennetl stated the cosl of lhe'ulilitics �vc�uld h� c<msi�lcrahl�l Icss �vilh nci activil�� than what is estimated to
COIIII[lll� II]C U�)CI'1110115 Il)1' UIIC Illl)Illjl.
A�IOlYON/.SFCOA�D: L)uick/1-lankncr to cleny the con�inticcl c����ratioiis c�i� lhe 13c1-ltae H'cl�Il'00111 C�ll'OLI�;II 1�1i:
montl� of July hased uu th� l'ruj�ct�d �otu�c�, <�nil U,es �pre��dsh�et and Insuranc� I,iahilities.
Ms. l-lanl:i�er st�ted �vhen one ecrosiclers thc ecunoinica of this, ba��il upvn the inluru�ation �iv�il�hle, there is
iiot much profit lo be madc. �l�hc pro��crty has h�en removcd from the ta� re�les. In ordcr to make any proiit,
U�e city will necd to market it. 5h� �loes nc�t thi�il: th� council �vants tc� �liv�rt st��fl� time in markeling �vhen therc
are so inany other tlting� that nced t�� h� donc.
NL�. Linl.c stated he ho��es lu scc the builcling un�lcr ci>nstrueli<�n �vithin tw�u tnc�nths tlilil" U1C Cllv lRI�Bti COflllO�
of the property.
Ms. 'I�rudc nolcd shc doc, ne�t tecl il mal:cs sense tu continuc thc u���ralion li�r unly one �uonth, lio�,vever shc
�vondercd if it thc city shc�ulcl c��n,i�1�r �� six munlh o��cr�ili�m.
Mr. Whi[ing notc�l lh��t �vithc>ut �in>> activitic, a��ter Junc> lhc stcill an�i Citl' �'��i����il ���ill nee� tc� �vork as
expediently as possiblc tc� tin�l l���ssihlc u,�s IC)f IIIC �)UIICIIII€;.
V O"l'E
REPORTS
3 ay�; 2 na��s ("I,ru�le/131anch�rd) Moli�m C<uried
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LDn Meeling #23
May 28, 1996
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2 Report of President I,inke: No Report.
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4 Reporl of Vicc 1'residenl 131v�char�l: Nc� Rc��ort.
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6 Report oi� Sccretary �l�ucic: Nc> Re��ort.
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8 Re��ort oi'Comtnis�ioncrs:
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10 Coimnissioner Quick: No IZeport.
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12 Commissioner Hanl:n�r: No R�port.
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14 Repoil oC��ecutivc Director: No Re��c�rt.
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I � I'resicl�nt L,inkc: adu�ui�c�i lliu mc��in� a� ') I U�� m.
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19 R�spectlully submiuecl,
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22 Tam�ra D. Saeil<e
23 Recording Seci-et��y
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iV10UNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY
REQUESi FOR EDA CONSIDERATIDN
ST.�FF REPORT
EDA vtEETING DATE June 24, 1996
EDA Action:
❑ Special Order of Business
❑ Public Hearings �enda Section:� Q
❑ Consent Agenda Report Number: Fnn_qh-54C
[�} EDA Business Report Date: _ _
[tem Description: Consideration of Resolution No. 96-EDA-49 Approving and Authorizing t e �
Acquisition of 8265 Silver Lake Road Property for Redevelopment Purposes a'
Esecutive Director's Review/Rec;ommendation:
- No comments to supplement tliis report
- Comnierits attaclieu
E.Yplauation/Summary �auach supplcment sheets as necessary)
S iJ�ti� W RY:
I was contacted by the Department of Housing and Urban Development (HCTD) regarding the
purchase of 8265 Spring Lake Road by the City of Mounds View on Tuesday, May 28, 1996.
HUD, at that time, offered us the property at $70,200. We informed HUD that due to the
condition of the foundation, we would not consider purchasing the property at_ that price.
On May 30, 1996, we had an appraisal conducted on the property. The appraisal showed a
market value of $52,000, We sent H[JD a copy of our appraisal and stated that we would not pay
over the appraised amount shown. �
H[ID stated that their appraisal did not reflect the condition of the foundation. Apparently, the
basement of the property was full when their appraiser conducted the appraisal and could not see
the foundation. Their second appraisal had a market value of $55,000 and they have offered the
property to the City at a 10% discount for $49,500.
HUD sent us the purchase agreement and asked that we return it to them by June 27, 1996. We
have forwarded copies to the City Attorney and it should be completed by early next weelc.
Staff will provide a copy of the Resolution authorizing the execution of a purchase agreement at
the Ju�e 24 meeting, �
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� ' fc`.�C' ��/ f�' '?�r-..-o.�—
Je fer B r�man, Ho sing Inspector
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RECO�t,�tEVD,�Trov: Approve or deny Resolution authorizing the execution of a purchase
agreement for 8265 Spring Lalce Road