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HomeMy WebLinkAbout09-17-2004 Minutes of the Economic Development Commission City of Mounds View Ramsey County, Minnesota Regular Meeting September 17, 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 7:40 a.m. 2. ROLL CALL: Members Present: Greg Belting, Jackie Entsminger, Tom Field, Torri Johnson, Stan McDonald Members Absent: 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 June 18, 2004 EDC minutes. Motion Carried: 5 Ayes 0 Nays 4. SPECIAL BUSINESS A. No Special Business Scheduled during the 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: Backman will provide an update regarding the chamber later in the meeting during the discussion of the selection of the new M.V. Banquet manager. EDC Minutes September 17, 2004 Page 2 D. Report of Staff: 1. Street and Utility Contract Award and Construction Start—Pro Craft Development (Hidden Hollow): Things have continued to move forward. As members are aware the grading for the Hidden Hollow project began in July. The city-owned house was demolished on July 28th. On August 19th bids were received for the street and utility project (for bidding purposes Hidden Hollow was combined with the second access road project for the Mounds View Manufactured Home Community). On August 28, 2004 the City Council selected Redstone Construction of Mora to install the street (Hidden Hollow Court) and utilities. On September 2nd a Pre-Construction Meeting was held at City Hall. Currently the contractors are installing the stormwater lines. Jim Melcher, the builder, indicates that several homes of prospective buyers are now in the blueprint stage. 2. Construction Start—Velmeir Companies (CVS Pharmacy): Backman expressed satisfaction with the progress with this project. He received the grand opening of the CVS Pharmacy in Eagan and mentioned a news article that discussed other CVS stores locating in Andover, Blaine, Coon Rapids, Maple Grove, White Bear Lake, NE Minneapolis, and St. Paul. Approximately 16 store locations are being considered by Velmeir. In Mounds View, site clearance began on August 30, 2004 and the Amoco building was demolished on September 2nd. One thing Backman noticed after the site was leveled was that the adjacent PAK Building’s deteriorated look is more visible than before. The City will follow up with the owners and encourage them to improve the site. Belting asked when CVS would open the Mounds View store. Backman replied that earlier this year the developer was aiming for October/ November. Now it is projected to be around Christmas. 3. Selection of Canyon Grille as New Manager for the Mounds View Banquet Facility and Development of the New Management Agreement: After doing D&B and personal background checks on the principals, staff recommended that the City go with Canyon Grille as the new manager of the M.V. Banquet Center. On August 23, 2004 the City Council unanimously selected Canyon Grille as the new manager effective January 1, 2005. On September 1st the Mermaid communicated to the City that it was exercising its early termination clause in the Interim Agreement and that it would be done on November 1st. Instead of four months the new manager has only two months to get ready to take over the operation (inc. finalizing the management agreement, gearing up staff, ordering and installing equipment). Canyon Grille remains very interested in taking over Banquet Center management. The Mermaid also indicated that it was actively moving events from the M.V. B.C to its main location. While not prohibited under the Interim Agreement, it was disappointing for the City. Field asked about the lease amount currently projected at $5,000 per month. Backman noted that the Mermaid currently pays the City $6,000 a month and retains any lease payments from the Twin Cities North Chamber. Under the Canyon Grille proposal, the new management group would lease the whole banquet area, excluding the Chamber offices and would pay the City $5,000 a month. Additionally, the TCN Chamber would pay directly to the City $1,160 a month. Field asked about the qualifications of the equipment coming in to the M.V.B.C. Backman stated that the walk-in cooler would be new and that the convection oven would likely be refurbished. 4. Approval of the Proposed TIF Parcel Decertification (10 parcels in TIF District #2; and 1 parcel in District #1): Backman noted that the City Council has approved the decertification of 10 parcels mostly in the area around Realife Housing Cooperative. This will cost the EDA approximately 10% or $220,000 in economic development dollars, but this will be offset by increased increment elsewhere due to higher property values. The general TIF policy is that if we are not intending to redevelop an area or specific parcels, then those properties should EDC Minutes September 17, 2004 Page 3 not be in a TIF district. Parcels should remain in the districts if the increments back up obligations (e.g. developer payments) or there is the potential for redevelopment. Johnson asked if this item was completed. Backman replied affirmatively. Belting mentioned that there are residents that are concerned about the City taking residential property. Backman explained that some residents are confusing the TIF district changes with the Home Improvement Program. The latter is a voluntary program designed to assist homeowners. It provides residents with another potential buyer (the City). 6. EDC BUSINESS A. Title Commitment Research & Legal Opinion, Wetland Delineation, Phase I Environmental Analysis, Commercial Appraisal, Alternative Urban Areawide Review (AUAR), Boundary Survey, Buyout of Outdoor Signs, Water & Sewer Extension Report, and Other Activities for the Bridges Golf Course Redevelopment Project (CRESA Partners working with Undisclosed Client): Activities surrounding the potential redevelopment of the Bridges Golf Course have been intense over the past month and a half. Old Republic and Kennedy & Graven were involved in title work that was authorized by the Mounds View EDA on July 26. Schedule A of the Title research describes conditions and easements that govern the parcels. Schedule B includes copies of the original documents. Backman distributed copies of a map of the area and a title legal opinion of the golf course prepared by Scott Riggs, the City’s Attorney. The legal opinion was presented to the M.V. EDA on September 13th. There were four action items in the opinion for the EDA to consider: 1) Survey all property encompassing the Bridges; 2) Initiate steps to remove the public purpose/right of reverter deed restriction from the former MnDOT property and determine if legislative action is feasible; 3) Negotiate with SYSCO, if needed, as to the release of the former SYSCO deed restriction; and 4) Determine how to proceed with the billboard leases. The Golf Course has approximately $4.1 million of debt associated with it (tax-exempt bonds issued for construction and interfund loans to cover operating deficits). The City has previously authorized outdoor signs as a means of generating income to pay off the debt. Redeveloping the Bridges would create more jobs and tax base. Backman has had discussions with the Governor’s Office regarding the reverter clause issue. They do not see it has a huge problem. SEH completed the wetland delineation report this week. A Phase I Environmental Assessment through CRA is also underway (being paid for by CRESA). On September 13, 2004 the M.V. EDA authorized a commercial appraisal of the Bridges. Orion Appraisals is on target to complete this on September 28th. Also authorized was an Alternative Urban Areawide Review (AUAR). This assessment process will cost at least $55,000 and will take four or more months to complete. Backman explained the need for such an assessment process and what they entail. He showed samples of such documents to the members. Field asked about the source of funding for the AUAR. Backman responded that it would come from TIF dollars. Belting inquired as to whether the information that is being gathered can be used for other development options if CRESA’s project does not move forward. Backman replied that all of the information is useful for other development opportunities. He added that City staff has met with CRESA several times and sees them as viewing the Mounds View site very seriously. The End User remains undisclosed at this time. B. Other—BioLife Plasma Services, a new business in Mounds View, has an Open House planned for October 4, 2004. The public is invited. EDC Minutes September 17, 2004 Page 4 7. ADJOURNMENT There being no further business before the Commission, Johnson adjourned the September 17th meeting of the Economic Development Commission at 8:30 a.m. Respectfully submitted, Aaron A. Backman Economic Development Coordinator \\Trout\CommDev\Economic Development\EDC\Minutes\Min04\9-17-04.doc