Loading...
HomeMy WebLinkAbout06-18-2004 Minutes of the Economic Development Commission City of Mounds View Ramsey County, Minnesota Regular Meeting June 18, 2004 City of Mounds View, Council Chambers 2401 Highway 10, Mounds View, MN 55112 1. CALL TO ORDER: Chairperson Torri Johnson called the meeting to order at 7:42 a.m. 2. ROLL CALL: Members Present: Greg Belting, Tom Field, Torri Johnson, Stan McDonald Members Absent: Jackie Entsminger, David Fox , Jason Helgemoe Staff Present: Economic Development Coordinator Aaron Backman Others Present: None 3. APPROVAL OF EDC MINUTES: Motion/Second: Field moved and Belting seconded the approval of the April 16, 2004 EDC minutes. Motion Carried: 4 Ayes 0 Nays 4. SPECIAL BUSINESS A. No Special Business Scheduled during the meeting. A business tour is planned at the conclusion of the regular meeting. 5. REPORT OF COMMISSIONERS, STAFF AND EDA LIAISON A. Commissioner Reports: None B. Report of EDA Liaison: None C. TCN Chamber of Commerce Update: Following the Board of Directors meeting on May 28, 2004, a general membership meeting was held to review local requests for grants. Members approved 29 grants totaling $42,000—the largest number of grants approved at one time by the Chamber since inception. Last year the Chamber provided $85,000 in grants for education, community and social needs. This year lawful purpose expenditures are projected to grow to EDC Minutes June 18, 2004 Page 2 $130,000. Johnson noted that in spite of the cold weather, the Spring Golf Tournament was a success and generated increased revenues for the Chamber. D. Report of Staff: 1. Final Plat and Approval of the Hidden Hollow Purchase & Redevelopment Agreement—Pro Craft Development: On June 14th the Mounds View EDA voted 5 to 0 to approve the Purchase & Redevelopment Agreement for the Hidden Hollow project. Also on Monday the developer’s lender, Cherokee Bank, provided a letter indicating it had approved full funding for the new housing subdivision. The next step for the project in on June 28th, the final plat will be considered by the City Council. Kurt Ulrich, the City Administrator came into the Council Chambers for the meeting. 2. Final Plat and Land Closing—Velmeir Companies (CVS Pharmacy): The sale was planned for the end of June, however, the issue of stormwater management has delayed things. Backman described Loucks (Velmeir’s architects) interaction with Rice Creek Watersehd District. Loucks had submitted it application to RCWD in April only to find out that the day before the RCWD Board was going to review (June 9th) that it was not complete. With additional stormwater management costs, the developer is looking at $50,000 to $100,000 of additional expenses that it had not anticipated. The cost overrun threatens the project. Backman has discussed the situation with Velmeir to try to find a solution. Field asked if TIF assistance could be provided to Velmeir so as not to lose the project and the potential investment. Backman replied that he would discuss the idea with Jim Ericson. Ulrich stated that he thought the City providing TIF assistance was a good idea in this case, and mentioned that the RCWD is a problem for the City. He added that the City will be talking to over cities regarding RCWD policies. Backman mentioned that the City could participate in demolition and stormwater management costs. 3. Rescinding of the Termination of the Development Agreement between the Mounds View EDA and Michael Investments for the Building N Project: In April the City approved an amendment to allow religious organizations within the PUD, and the owners asked to be released from their obligations under the Development Agreement. On May 10th the EDA approved the termination of the Development Agreement between the EDA and Michael Investments. Subsequently on May 14, 2004, the owners of the building indicated that it was their intent to be released from the obligations (e.g. indemnification), but not to terminate the Agreement and stop future developer payments (even after the sale of the property in Mid- June 2004). Backman sought legal advice from Briggs & Morgan. A May 19, 2004 memo outlined three options for the City to consider: 1) Modify the terms of the Agreement to specifically release Michael Investments from any indemnification obligations and the City retains any future developer payments. 2) Rescind the termination of the Development Agreement and continue making developer payments to Michael Investments (most likely for August 2004 and February 2005). 3) Return to the plan as set forth in the Purchase Agreement where the Agreement and TIF Note are assigned to the church, BBC assumes Michael Investments, and Michael Investments is entirely released. The EDA could then negotiate with the church to terminate the Agreement. On May 24th the EDA decided to rescind the termination of the Development Agreement, meaning it stays in force and that Everest receives at least two more developer payments. On June 15th the building was sold to Bethlehem Baptist Church for $5.6 million and they now control the building. 4. Purchase Agreement for Acquiring Gas for Less (2525 Co. Hwy 10): Backman provided an aerial photograph of the site to the Commissioners. On April 26, 2004 the Mounds View Economic Development Authority authorized staff to proceed with an appraisal of the EDC Minutes June 18, 2004 Page 3 commercial property at 2525 County Highway 10, known as Gas & Wash. The EDA approved that an appraisal be undertaken for an amount not to exceed $4,000 to be paid from the City’s EDA funds. Written quotes were obtained from five Twin Cities commercial appraisal companies. Tisdell Appraisal Services, Inc. from Burnsville was selected. It had the most economical quote ($3,000) with the quickest completion time (three weeks). The appraisal was completed on May 27, 2004. Mr. Tisdell placed the market value at $819,000. On May 19, 2004 the Mounds View Planning Commission considered and approved a resolution recommending approval of the acquisition of the parcel at 2525 Hwy 10. The Commissioners determined that the City’s acquisition of the lot for redevelopment would be consistent with the Comprehensive Plan future land use. On May 24th the M.V. City Council authorized staff to negotiate a Purchase Agreement and present it to the Council for final action. Backman began negotiations with Calhoun Companies, the broker. The owners did not wish to go below a sales price of $820,000. Backman contacted several Twin Cities firms to get proposals for an environmental assessment of the gas station. Proposals were received from Peer Engineering, DPRA, and Applied Engineering. On June 14, 2004 Backman presented to the M.V. EDA a resolution to undertake the environmental assessment of the property. This was approved 4 to 1. Later that same evening at the City Council considered the Purchase Agreement for $820,000. This resolution was defeated on a 2 to 3 vote. Ulrich mentioned that another person had testified that they had a verbal agreement with the owners to buy the property, wanted to continue to operate the facility as a gas station, and mentioned that they would make improvements to the property. This person testifying at City Hall may have swayed several members of the Council. 5. Modification of the Economic Development Project Plan (TIF Mod.) to identify Parcels for Potential Acquisition: Backman asked members to consider the parcel map and proposed budget and contact him if they had any comments. On June 16th the Planning Commission passed the Project Plan Modification. On June 28th a public hearing will be held to discuss the modification. 6. EDC BUSINESS A. Discussing the renaming of County Highway 10: Due to limited time, this item was deferred for a later EDC meeting. 7. ADJOURNMENT Backman indicated that he had arranged for a tour of Liberty Enterprises new production area in Building G in the MV Business Park. Manning, Assist. Operations Manager, will be meeting the EDC members at the door prior to the tour. Given that the tour is to begin at 8:30 a.m., and there being no further business before the Commission, Johnson adjourned the June 18th meeting of the Economic Development Commission at 8:28 a.m. Respectfully submitted, Aaron A. Backman Economic Development Coordinator \\Trout\CommDev\Economic Development\EDC\Minutes\Min04\6-18-04.doc