HomeMy WebLinkAbout08-12-1996 EDA___ _ _
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1VIOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY
AUGUST 12, 1996
TIME: IMMEDIATELY FOLLOWING COUNCIL MEETING
MEETING NO. 25
1. CALL TO ORDER
2. ROLL CALL - President Linlce
Vice President Blanchard
Secretary Trude
Commissioner Quick
Commissioner Hanlcner
3. APPROVAL OF AGENDA
EDA ACTION: ATD
Comments:
4. APPROVAL OF MINUTES:
June 24, 1996
EDA ACTION: ATD
Comments:
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EDA
PAGE TWO
AUGUST 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 Resolti►tion No. 96-EDA50 Approving Business Improvement
Partnership Loan for Mounds View Fina; Staff Report No. EDA-9655C
EDA ACTION: ATD
Comments:
g. 12EPORTS:
Re�port 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:
EDA
PAG� THREE
AUGUST 12, 1996
b. Commissioner Hanlcner:
5. Report of Executive Director:_
6. Report of Treasurer:
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PROCEEDINGS OF THE MOUNDS VIEW
�CONOMIC DEVELOPMENT AUTHORITY
Meeting No. 24
June 24, 1996
Mounds View City Hall
2401 Hwy. 10, Mounds View MN 55112
CALL TO ORDER
The Economic Development Authority was called to order by President Linlce on June
24, 1996 at 8:50 p.m.
ROLL CALL
MEMBERS PRESENT: President, Jerry Linlce; Vice President Phyllis Blanchard,
Secretary, Julie Trude; Commissioner Gary Quicic, Commissioner Sue Hai�lcner,
Executive Director Cathy Bennett, and City Administrator Chucic Whiting.
OTHERS PRESENT: None
APPROVAL OF AGENDA:
MOTION/SECOND: Trude/Hai�lcner to Approve EDA Agenda as Presented.
VOTE: 5 ayes 0 nays
APPROVAL OF MINUT�S:
Motion Carried
MOTION/SECOND: Quicic/Trude to approve the minutes of the EDA Meeting of May
28, 1996.
VOTE: 5 ayes 0 nays Motion Carried
CONS�NT AGENDA:
There were no items placed on the Consent Agenda for this meeting.
PUBLIC HEARINGS:
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EDA Meeting #24
June 24, 1996
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There were no Public Hearings scheduled for this meeting.
EDA SUSINESS:
A. Consideration of Resolt►tion 96-EDA-49, Approving and Authorizing the Acquisition
of 8265 Silver Lalce Road Property for Redevelopment Purposes and the �xecution of a
Purchase Agreement for that Purchase.
Ms. Cathy Bennett, Executive Director, explained that the Community Development
Department has been worlcing on the clean up of the property located at 8265 Silver Lalce
Road for the past two months. On May 28, 1996, Jennifer Bergman, Housing Inspector
was contacted by the Department of Housing and Urban Development regarding the
purchase of the property by the City of Mounds View. The property was offered to the
city for $70,200. The city had an appraisal of the property which came in at $52,000
which was forwarded to HUD. After reviewing our appraisal, HUD noted that their
appraisal did not talce into consideration the condition of the foundation and they had
another appraisal done on the property which came in at $55,000. They have offered the
property to the City for $49,500, which is a 10% discount on their appraisal. HUD will
cover. the closing costs ($2,475.). They have aslced that the purchase agreement be signed
and returned to them by June 27, 1996. This property would be purchased under the
EDA's Housing Replacement Program and Ms. Bennett noted it is in conformance with
the EDA's Tax Increment Project Plan for Redevelopment. The property will be
demolished and it will be put out for bid for development of a new single family
residence to increase the value of the property and the aesthetics of the neighborhood.
Mr. Bill Doty, 3049 Bronson Drive, aslced what the purpose is for having a separate
corporation such as an Economic Development Authority, which is not part of the city
charter. If the city is going to have a charter, it must be followed.
Ms. Bennett explained that an EDA is able to enter into different types of joint ventures
witl� regards to properties.
Mr. Whiting stated there are differences between what an �DA can do and what a City
Council can do. Furthermore the Charter does not prohibit this and the EDA is within
the guidelines of the state law and the charter (the Charter does allow the Council to set
up committees and commissions).
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EDA Meeting #24
June 24, 1996
Page 3
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1 MOTION/SECOND: Quicic/Hanlcner to Approve Resolution No. 96-EDA-49,
2 Approving and Authorizing the Acquisition of 8265 Silver Lalce Road Property for
3 Redevelopment Purposes and the Execution of Purchase Agreement for the Purchase.
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5 VOTE: 5 ayes 0 nays Motion Carri.ed
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7 REPORTS:
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9 Report of President Linlce: No report.
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11 Repoi-t of Vice President Blanchard: No report.
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13 Report of Secretary Trude: No report.
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15 Report of Commissioner Quicic. No report.
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17 Report of Commissioner Hanlcner: No report.
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19 Report of Executive Director: No report.
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21 President Linlce adjourned the meeting at 9:10 p.m.
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23 Respectfully submitted,
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27 Tamara D. Saeflce
28 Recording Secretary
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ECONOMIC DEVELOPMENT AUTHORITY
REQUEST FOR EDA CONSIDERATION
STAFF REPORT
EDA MEETING DAT�
Au u� st l2, 1996
Agenda Section 7a
Report Nuinbec:EDA96-SSc
Report Date: 8/12/96
Special Order of Bus.
Consent Agenda
Public Hearings
X �DA Business
Item Description: Consideration of Business Improvement Partnership Loan to Mounds View Fina
Executive Director's Review/Recommendation:
-No Comments to supplement this report
-Comments attached.
Explanation/Summary (attach supplement sheets as necessary)
Summary:
Owners of Mounds View Fina, Thomas Manke and Leon Theis have been in contact with Western Bank for several
months regarding the expansion of the their gas station located at 2280 W. County Road I. Western Bank suggested
they review the possibility of applying for the City's Business Improvement Partnership Program to finance part of their
expansion and remodel.
Since Mounds View Fina is now fully approved by the City to construct a canopy, they are now in a position to request
financial assistance from the City to complete the remodeling and expansion of the gas station. The applicant is
requesting the maximum loan of $50,000. The City's participation would be $25,000 at 2% fixed interest for ten years
and Western Bank's participation would be 11 % fixed interest for ten years. I have attached a summary report from
Western Bank explaining the structure and terms of the loan for your review. Western Bank has approved participation
in the loan as well as additional financing for the project.
The improvements include interior and exterior remodeling, installation of new counters, coolers, fixtures, blacktop,
islands, tanks, pumps and canopy. This project meets the goals of the program by enhancing the aesthetics of property
and improving the commercial tax base.
The EDC loan committee (comprised of 4 members of the EDC) held a meeting this morning at 7:30 am to review
financials, discuss the projects eligibility as part of the program objectives and discuss the company's ability to repay the
loan. All of the criteria for approving the loan have been met and the EDC loan committee is recommending approval of
the application to the EDA with a motion made by chairperson Dan Nelson and seconded by Rosemary Goff. I have
attached a copy of the EDC resolution making this recommendation.
Ex t� e Director
RECOMMENDATION: Approve Resolution No, 96-EDA 50 Approving a Business Improvement Partnership Loan
for Mounds View Fina
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BUSINESS LOAN REQUEST
AUGUST 1996
APPLICANT: Mounds View Fina, A Minnesota General Partnership
2280 W. County Rd. I
Mounds View, MN 55112
Partners include:
Thomas L. Manke Leon M. Theis
2011 Brenner St. 4690 Chandler Rd.
Roseville, MN 55113 Shoreview, MN 55126
BUSTNESS: Gasoline station with convenience store. There has
been a gas station at this site for over 40 years.
It has been operated as a Fina for 8+ years. The
current owners originally leased the faci.lity in
July 1993. They purchased it on a Contract for Deed
in October 1994.
PROJECT
DESCRIPTION
FINANCING
REQUESTED:
Interior and exterior remodel. Installation of new
counters, coolers, fixtures, black�op, islands,
tanks, pumps, canopy, etc.
l. $100,000.00 bank financing
10 year term, l0o fixed rate, secured with
$50k mortgages on the owners homesteads.
Charge for costs {title insurance, MRT,
recording) plus $1Q0 documentation fee.
2. $ 50,000.00 bank/City "Business Improvment
Partnership Program"
$25k bank at 110 fixed, 10 years
$25k City at 2o fixed, 1.0 years
Charge for costs (searches, UCC filing) plus
$100 documentation fee.
USES/SOURCES: USES
$ 81,563
57,670
50,356
16,278
15,300
$221,167
SOURCES
$100,000
25,000
25,000
50,000
15,000
6,167_
$221,167
Interior remodeling (Bauer)
Exterior demo, tank removal/install.
concrete/asphalt, etc. (Zahl)
Exterior equipment and canopy (Zahl)
Interior equipment/fixtures (AA Eqpt)
Used Equipment (Croix Oil)
Bank loan secured with residences
City portion / BIP Program
Bank portion / BIP Program
Croix Oil Co. ("Jobber"), 5 years
Grant from Croix (forgiven over 5 years)
Partnerhip cash
EDC RESOLUTION NO. 96-EDC15
RESOLUTION RECOMMENDING APPROVAL OF A BUSINESS IMPROVEMENT
PARTNERSHIP LOAN TO MOUNDS VIEW FINA
WHEREAS, general partners Thomas L. Manke and Leon M. Theis, who have
operated the Mounds View Fina since 1993, has approached the City for a Business
Improvement Partnership Loan., and
WHEREAS, Mounds View Fina is requesting the maximum loan of $50,000 for
interior and exterior improvements to the gas station located at 2280 W. County Road I, and
� WHEREAS, Mounds View's Economic Development Authority would be
responsible for $25,000 at 2% fixed interest rate and Western Bank would be responsible for
$25,000 at 11% f�ed interest rate for ten years, and
WHEREAS, Mounds View Fina has been approved for the $25,000 loan by
Western Bank as well as additional financing for the proj ect, _- ' �
and
WHEREAS, Mounds View Fina will be remodeling the interior, adding new
equipment and fixtures, installing new gas tank and adding a canopy as part of their
improvement project; and
WHEREAS, Mounds View's Business Improvement Partnership Loan will allow
Mounds View Fina to complete the needed interior and exterior improvements, and
WHEREAS, the Economic Development Commission Loan Committee believes
that assisting Mounds View Fina will benefit the entire community of Mounds View by
improving the aesthetics of the commercial sector in Nlounds View thereby increasing the tax
base.
NOW, THEREFORE, BE IT RESOLVED THAT the Economic Development
Commission hereby recommends approval of a$50,000 Business Improvement Partnership
Loan which includes $25,000 Economic Development Authority participation and $25,000
Western Bank participation.
�dopted by the
ATTEST:
Develop�
12th
t Commission of the City of Mounds View this
August, 1996.
(SEAL) �
/ Econ i Development Coordinator
J
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RESOLUTTON NO. 96-EDA50
CITY OF MOUNDS VIEW
COUNTY OF R.AMSEY
5TATE OF MINNESOTA
RESOLUTION APPROVING BUSINESS IMPROVEMENT PARTNERSHIP LOAN
FOR MOUNDS VIEW FINA
WHEREAS, Mounds View Fina, owned and operated by Thomas L. Manke and Leon
M. Theis since 1993, has requested financial assistance from the Mounds View Economic
Development Authority, and
WHEREAS, Mounds View Fina is requesting the maximum loan of $50,000 £or interior
and exterior improvements to the gas station located at 2280 W. County Road I, and
WHEREAS, Mounds View's Economic Development Authority would be iesponsible for
$25,000 at 2 percent fixed interest and Western Bank would be responsible for $25,000 at 11 percent
fixed interest for ten years, and
WHEREAS, Western Bank has completed bank underwriting procedures for Mounds
View Fina which demonstrates their abiltiy to conform with the repayment schedule and have
approved participation in the loan with the NIounds View Economic Development Authority, and
WHEREAS, the Economic Development Commission Loan Comm.ittee, who asks as an
advisory to the Economic Development Authority in reviewing loan applications, has reviewed the
loan and has recommended approval per Resolution No. 96-EDC-15; and
WHEREAS, the improvements to 1VIounds View Fina include interior remodeling,
adding new equipment, installing new gas tanks and adding a canopy, and
WHEREAS, Business Improvement Partnership Loan will allow Mounds View Fina to
complete the needed interior and exterior improvements, and
WHEREAS, the improvements are in conformance with the requirements of the
Business Improvement Partnership Program approved on June 5, 1995 per Resolution No 95-
EDA27.
NOW, THEREFORE, BE IT RESOLVED THAT the Economic Development
Authority hereby approves a Business Improvement Partnership Loan to Mounds View Fina in the
amount of $50,000 of which $25,000 is the Economic Development Authority's participation to be
funded out of existing tax increment district dollars.
ATTEST:
(SEAL)
Adopted this 12th day of August, 1996.
President
EYecutive Director