HomeMy WebLinkAbout07-20-1998
Minutes of the Economic Development Commission
City of Mounds View
Ramsey County, Minnesota
Regular Meeting
July 20, 1998
City of Mounds View, Conference Room C
2401 Highway 10, Mounds View, MN 55112
[NOTE: The EDC meeting that would ordinarily have been held at 7:30
a.m. on Thursday, July 23, 1998 was rescheduled to July 20th so that the
EDC members could attend a City Council work session at 6:00 p.m. on
that date. The EDC members participated in a discussion of the
Mermaid Hotel/Banquet Facility Project in the Council chambers from
6:00 p.m. until approximately 7:00 p.m., after which the EDC members
convened in Conference Room C for the regular monthly EDC meeting.]
1. CALL TO ORDER:
The meeting was called to order at 7:05 p.m. by Chairperson Cindy Carlson.
2. ROLL CALL:
Members present: Cindy Carlson, Ron Schmidt, Tom Field, and Rosemary Goff.
Staff present: Economic Development Coordinator Kevin Carroll.
3. APPROVAL OF MINUTES:
Deferred to August meeting due to time constraints.
4. SPECIAL BUSINESS
None.
5. EDC BUSINESS
At the request of the City Council, the EDC members interviewed the following five
applicants for the current vacancies on the EDC: Wendy Marty, William Laube, Sean
Walther, Richard Oman, and Gregory Johnson. After considering factors including
(but not limited to) the personal and professional experience of the candidates, their
enthusiasm for and attitude about the position in question, their availability for
regular and special EDC meetings, and actual or potential conflicts of interest, the
Commissioners agreed to recommend Sean Walther for the remainder of the term of
Steven Larson (term ending December 31, 2000) and Wendy Marty for the
APPROVED
remainder of the term of Dan Nelson (term ending December 31, 1998). The
Commissioners also agreed to recommend William Laube as an alternate, in the
event that either of the other two recommended candidates accepts an appointment
to another City commission or is otherwise unable or unwilling to serve on the EDC.
6. REPORTS FROM CHAIR, COMMISSIONERS, AND STAFF:
EDC members and staff commented briefly on the prior discussion of the Mermaid
project. Commissioners asked whether the Halls= Αequity investment≅ of $1.1
million ($250,000 + $850,000) consisted of cash, or cash and land/building(s), or
land and building(s) alone. It was also suggested that the projected 10% interest
rate on the Banquet Center financing may be significantly higher than the actual rate
that could probably be obtained, and that the stated 10 year amortization period may
be significantly shorter than the time period that is usually used for projects of this
kind, thereby artificially inflating the annual operating expenses. With regard to the
ΑmericInn Hotel Investment Analysis,≅ it was suggested that the projected Αaverage
daily rates≅ ranging from $62 to $70 for years 1 through 5 were on the low side, and
that rates ranging from $75 to $85 would probably be more accurate.
Commissioners commented that it might be useful to get some advice or input on
these and other related matters from an objective third party (consultant, analyst,
etc.) who is more familiar with revenue projections, anticipated operating expenses
and financing arrangements for projects of this type.
The Commissioners indicated that they appreciated the opportunity to learn more
about project, and that they are looking forward to hearing more about the project
periodically, as it progresses.
7. ADJOURNMENT
There being no further business before the Commission, this meeting of the
Economic Development Commission adjourned at approximately 7:50 p.m.
Respectfully Submitted,
Kevin Carroll
Economic Development Coordinator