HomeMy WebLinkAbout09-26-1996Minutes of the Economic Development Commission
City of Mounds View
Ramsey County, Minnesota
Regular Meeting
September 26, 1996
City of Mounds View, Council Chambers
2401 Highway 10, Mounds View, MN 55112
Call to Order:
The meeting was called to order at 7:37 a.m. by Chairperson, Dan Nelson.
Roll Call:
Members present were as follows: Cindy Carlson, Rosemary Goff, Dan Nelson, Brian Sjoberg, Ron
Schmidt. Members Delane Welsch and Bev Terhark and EDA Liaison Sue Hankner and Alternate Liaison
Gary Quick were absent. Economic Development Coordinator Cathy Bennett was present.
3. Approval Of Minutes:
Motion/Second: Goff/Sjoberg moved approval of Minutes of August 22, 1996 Meeting as
amended.
Motion Carried 4 ayes 0 nays
Special Business
No Special Business
A. Consideration of Draft Recommendations for Improved Communication
Between the EDC and EDA
Coordinator Bennett presented recommendations for improved communications
between the EDC and EDA that are a compilation of what was discussed at the August
EDC meeting. Commissioners made minor revisions to both documents and requested
that these recommendations be discussed with the EDA at the September work session
for comment.
Motion/Second: Goff/Sjoberg moved to approve recommendations for improved
communication between the EDA and EDC as amended and forwarded to the EDA for
comment.
Motion Carried 5 ayes 0 nays
B. Consideration of Draft Request for Proposal for Professional Services
Coordinator Bennett noted that on September 9th, the EDA approved Resolution no. 96-
EDA51 Authorizing the Economic Development Commission to work on a request for proposal
and solicit bids for the development of a vision and schematic plan for highway 10
redevelopment area, section 9.
With the ideas that were generated by the EDC at the August meeting, Coordinator Bennett
presented a draft RFP and a list of consultants that are located in the Twin Cities. Coordinator
Bennett noted that if approved she would mail the Up's to consultants the first week in
October with a submission deadline of October 16.
Commissioners made minor revisions to the background section and scope of the study.
Motion/Second: Carlson/Goff moved to approve the request for proposal as amended
Motion Carried 5 ayes 0 nays
C. Consideration of Loan Request from Addie Lane Floral
Commissioner Carlson provided an overview of a request from Carol and Dean Johnson DBA
Addie Lane Floral for a loan in the total amount of $33,145. The loan request is to expand the
current floral business, located in Silver View Plaza, to include the serving of Espresso, Brewed
Coffee and Danish. The loan would be used to purchase espresso equipment, espresso cart,
plumbing, electrical and remodeling work, wire racks and beginning inventory. Mounds View's
participation would include $16,750 at 2% interest for 8 years. The basic strategy for the loan
includes goals of increasing floral sales and profit margin and increase the customer base by
offering another product and service not currently offered in the immediate area. Commissioner
Carlson reviewed the company and personal financial statements and noted a bank risk rating
of 4 "watch" due to several factors such as the tight margin to repay debt with heavy reliance on
projections rather than strong collateral.
The commission discussed the business loan program's purpose for interior and exterior
improvement and were concerned that this request did not technically fit into the current
criteria. In addition, the commission was concerned that the request was for 100% financing
with no existing business or personal equity and were unsure regarding the market to support
the projections which has a direct impact on the repayment ability of the loan. The current
collateral would be enough to repay bank loan but due to the City's second position there would
be limited to no funds to pay back the City's half. The commission noted that Addie Lane
Floral and the owners Carol and Dean Johnson have been a great asset to the community both
in their floral service business and volunteer activities with Festival in the Park, Marketing Task
Force and Chamber.
The Corrunission would like to assist the company but it may not be in the best interest of the
City at this time. One suggestion included reconsidering the loan package if the Johnson's could
identify an additional guarantor who could inject and pledge at least $10,000 of additional
collateral.
Motion/Second: Nelson/Goff moved to deny the current request for $16,500 City loan based
upon historical repayment ability and lack of strong secondary repayment source. The
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commission would reconsider the loan package if there was the addition of a guarantor who has
adequate Financial strength and would pledge additional collateral in the amount of at least
$10,000.
Motion Carried 4 ayes 0 nays 1 abstain
D. Discussion of Sample Tax Increment Financing Application and Review of Guidelines
for the Analysis of the Sample Application
Motion/Second: Schmidt/Sjoberg moved to table this item due to time constraints.
Motion Carried 5 ayes 0 nays
Reports From Chair, Commissioners and Staff:
Commissioner Schmidt mentioned that he had talked with the Owner of Win Insurance Agency
located on the corner of Silver Lake Road and Highway 10 and that he was actively trying to
market his property. Coordinator Bennett mentioned that she received a call from him and
updated him on the proposed study of this area of Highway 10.
Chairperson Nelson noted that the next meeting would be on October 24, 1996 at 7:30 a.m.
instead of 6:00 p.m.
Adjournment
There being no further business before the Commission, this meeting of the Econom c Development
Conan scion adjourned at 8:50 a.m.
Respectfully Submitted,
WA
Econom c Deve pment Coordinator