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HomeMy WebLinkAbout03-18-2005 Minutes of the Economic Development Commission City of Mounds View Ramsey County, Minnesota Regular Meeting March 18, 2005 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 7:39 a.m. 2. ROLL CALL: Members Present: Greg Belting, Jackie Entsminger, Tom Field, Jason Helgemoe, Torri Johnson Members Absent: Jerry Jaker, Stan McDonald Staff Present: Economic Development Coordinator Aaron Backman Others Present: None 3. APPROVAL OF EDC MINUTES: Motion/Second: The December 10, 2004 minutes were not completed by this meeting. No Commission action was taken. 4. SPECIAL BUSINESS A. None. 5. REPORT OF COMMISSIONERS, STAFF AND EDA LIAISON A. Commissioner Reports: Entsminger noted that she had attended the steering committee meeting for the County Road 10 Corridor and the potential renaming of the City’s main thoroughfare. Backman mentioned that there is now new carpet in the Mounds View Community Center. B. Report of Staff: 1. Update on status of Medtronic Corporate Office Campus / Bridges Redevelopment Project: Backman reviewed the meetings that have been held regarding the Bridges Redevelopment, including transportation, legislative meetings and hearings, and negotiating meetings with Medtronic and Clear Channel. On the morning of March 10th, City staff met with Commissioner Tony Bennett at Medtronic’s Shoreview office regarding the transportation improvements needed for Medtronic. He is very supportive of road improvements to County Road J and the seeking of state appropriations to do so. Backman discussed the two primary pieces of legislation the City is seeking—the special Tax Increment Financing (TIF) legislation and the reverter clause legislation. City staff attended and testified at two hearings in the State House. The reverter clause bill passed out of the House Transportation Policy Committee on March 1st, and was heard (but not acted on) in the House Transportation Finance Committee on March 10th. One amendment that was proposed (but EDC Minutes March 18, 2005 Page 2 not adopted) in the first House Committee hearing, was that the City of Mounds View contribute $1 million to the State Highway Trust Fund as part of the reverter clause legislation. The concern is that too large of a contribution to the state will stymie the deal. Backman was pulled out of the Bennett meeting to meet with Donn Hagmann from Medtronic. Hagmann indicated that Medtronic staff had discussed the reverter clause and the issue of a payment to the Trunk Highway Fund, and that Medtronic was willing to offer up to $1 million as a contribution to the Fund to make this deal happen. Backman communicated this offer to the City Council at its meeting on March 14th. He remains concerned that legislators could ask for more money to resolve the reverter clause issue. Overall there are two main transportation elements—first element entails improvements to County Road J and replacement of the Bridge; second element involves construction of a new Interchange for 35W and Lake Drive/Co. Road J. Funding for the first is being sought now, funding for the second could come five years later. Earlier this month the three cities reviewed design options for the second element and made recommendations to MnDOT. Backman distributed the latest version of the Medtronic Traffic Study. Negotiations with Medtronic have been going well regarding the terms and the Development Agreement. The challenge will be dealing with the signs. There have been four negotiating sessions with Clear Channel. Currently the City awaits a response to its latest counterproposal. 2. Laport Meadows Housing Development—Coldwell Banker/Skyline Builders (Minneapolis) & Rick Boschee Homes (Roseville): Backman distributed a map about this potential residential development. Primarily there are two developers that have shown continued interest in a housing project in Laport Meadows—Skyline Builders from Minneapolis and Rick Boschee Homes from Roseville. Both mentioned the Medtronic campus as a driver for their interest. Homeowners may or may not choose to sell their land to a developer. Field asked how the builders were selected. Backman replied that the City was approached by the developers (not the other way around, and unlike other projects). Backman went before the City Council on March 14th to discuss the City undertaking a wetland delineation study in 2005. Regardless of whether a residential project happens, it would be beneficial to do the study. It is useful information for existing homeowners and the City would control the information. The successful developer will have to deal with wetlands, a mixed ownership pattern, and the need for a sound wall. The type of units will depend on the proposal. 3. Potential Sale & Redevelopment of Gas for Less Site (2525 Co. Hwy 10): The Gas for Less site is up for sale again, eight months after it last sold. The current owners are very motivated and have signed a purchase agreement. Backman revealed that the end user is Synder’s. They have been working on the site for the past several months. What does the new location accomplish for them? The lease with Synder’s in Moundsview Square expires this September. The company wants greater visibility on Co. Road 10 and seeks to own their own facility. Their architect has submitted building plans for a structure half the size of CVS or Walgreen’s (6,000 sq. ft. vs. 12,000+ sq. ft.). Backman noted that they are retaining a store, not adding a store. 4. Woodale & Co. Road 10; Donut Connection, Oasis, etc.—Potential Redevelopment: Backman met with a developer regarding these redevelopment locations. The Woodale location could potentially be used for medical businesses, clinics, specialty grocery store, etc. Jim Ericson arrived at meeting. 6. EDC BUSINESS A. Discussion with Ken Henk, Director of Development and Construction, Paster Enterprises regarding Caribou Coffee Development and Potential Assistance. Backman introduced Ken EDC Minutes March 18, 2005 Page 3 Henk from Paster Enterprises. Backman presented correspondence regarding the Hardee’s Restaurant building. The conversion to Caribou Coffee (western end of the building) represents a sizeable investment on Paster’s part. Backman also distributed to the members building schematics showing the renovated building. Paster was able to get a settlement with Hardee’s for $150,000 (Hardee’s had a ground lease until 2011). Henk asked for financial assistance from the City as part of this project. Backman inquired about building valuations—the old value was estimated to be $50 a sq. ft., and the new value $130 a sq. ft. Henk indicated that from the 1/18/05 letter to the 2/25/06 project costs increased from $376,000 to $517,000. Entsminger asked about the higher costs. Henk indicated that while they would be able to save the slab, utilities, mechanical systems, curb and paving, the renovation costs were coming in higher. Field asked about the payback calculations. Henk responded saying it was based upon the difference in rent. Backman asked about other potential users of the building, and noted that in other projects the City has participated in site clearance activities or in stormwater management activities. Henk provided some cost estimates for demolition, excavation, landscaping. Ericson indicated that the City could contact RCWD about potential ponding changes and if there could be overflow to the road right-of-way. Backman asked about the financial gap needed. Henk indicated that the gap was at least $125,000. Backman will discuss the numbers with Field and other EDC members and come back to the next EDC meeting with more information. 7. ADJOURNMENT There being no further business before the Commission, Johnson adjourned the March 18th meeting of the Economic Development Commission at 9:03 a.m. Respectfully submitted, Aaron A. Backman Economic Development Coordinator