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HomeMy WebLinkAbout05-10-1999 EDA 1i i-li CITY OF MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY MONDAY, May 10, 1999 AGENDA ROLL CALL: President Coughlin, Vice President Stigney, Commissioner Marty, Commissioner Quick, Commissioner Thomason 1. AGENDA ADDITIONS None 2. APPROVAL OF MINUTES A. Approval of EDA minutes from April 26, 1999 3. SPECIAL ORDER OF BUSINESSif, none 1i 4. CONSENT AGENDA ;I A. Set Public Hearing for May 24, 1999 for the sale of City owned property located at 6991 Pleasant View Drive 5. EDA BUSINESS none 6. REPORTS 7. ADJOURNMENT i Item No. Meeting Date: 5-10-99 Staff Report No. Type of Business: EDACA WK:Work Session;PH:Public Hearing; CA:Consent Agenda;EDBA:EDA Business Mounds View Economic Development Authority Staff Report To: Honorable Mayor and City Council Members From: Steve Dorgan, Housing Inspector Item Title/Subject: 6991 Pleasant View Drive Set Public Hearing for Sale of Property Date of Report: May 6, 1999 SUMMARY At the city council workshop meeting on May 3, the council directed staff to arrange for the sale of the city owned property at 6991 Pleasant View Drive to Marquis Builders, Inc. for the redevelopment of the subject lot. Minnesota State Statues require a public hearing be held for the sale of any city owned property. Staff has arranged for the publication of a public hearing as well as mailing a notice to all property owners within 350 feet of the subject site. The public hearing has been scheduled for the EDA meeting on May 24, 1999. ACTION TO BE CONSIDERED Set a public hearing for the EDA meeting on May 24, 1999 for the sale of the city owned property at 6991 Pleasant View Drive. Steve Dorgan, Ho g Inspector 612/717-4023 EDA CITY OF MOUNDS VIEW MEETING MINUTES MONDAY,APRIL 26, 1999 9:11 P.M. . CALL MEETING TO ORDER ROLL CALL: Coughlin, Marty, Quick, Stigney, Thomason. NOT PRESENT: None. 1. AGENDA ADDITIONS 1 None. 2. APPROVAL OF EDA MINUTES FROM APRIL 19, 1999 Commissioner Marty requested clarification to Page 4, second paragraph. Tim Nelson, representing Michael Investments, stated the minutes accurately reflect"office flex." MOTION/SECOND: Thomason/Marty. To approve minutes of EDA for April 19, 1999. Ayes - 5. Nays - 0. Motion carried. • 3. SPECIAL ORDER OF BUSINESS None. 4. CONSENT AGENDA A. Resolution 99-EDA-110 Approving 8300 Fairchild Avenue B. Resolution 99-EDA-111 Approving Purchase of 2091 Hillview Road for Redevelopment ! President Coughlin asked the EDA if anyone would like to remove items for discussion. MOTION/SECOND: Marty/Stigney. To approve the Consent Agenda for items A and B, as listed above. Ayes - 5. Nays - 0. Motion carried. • 1 U:\CARIS\COUNCIL\MINUTES\MVEDA26.APR 5. EDA BUSINESS A. Consideration of Resolution No. 99-EDA-112 Resolution Approving Modifications to Development Assistance Agreement with Michael Investments Concerning the Building N Project City Attorney Long reviewed that there was a closed session to discuss the threatened litigation over the Development Agreement negotiations. He advised that the negotiations have proceeded but he has not yet given a formal presentation to the Board. City Attorney Long explained that if the EDA would like a full presentation and explanation of the outcome of those negotiations, it would be appropriate to hold an executive session of the Board. Or, he could provide an abbreviated presentation at the public meeting. Unanimous consent was reached to adjourn to a closed session. President Coughlin recessed the EDA meeting to a closed session to discuss the potential litigation at 9:17 P.M. The meeting was reconvened at 9:45 P.M. Economic Development Coordinator Carroll explained the EDA and staff have talked with Everest Development about completion of the site and Building N and, over the course of several weeks, discussion has intensified. He advised of the proposed final changes to the Development Assistance Agreement,noting that Section 1.1 refers exclusively to a 69,582 square foot office/flex/service facility. Economic Development Coordinator Carroll explained that it had been the view of EDA members and others that those options created the possibility of a speculative building and they desired more assurance on what would be built so Everest agreed i, to delete reference of a warehouse facility. He explained the advantage to the City is that even though the building is smaller it is considered to be a higher quality structure, comparable to the Liberty Check building, with more brick and masonry, and predominantly office space. Economic Development Coordinator Carroll explained another change was that the earlier draft specified a certain number of jobs (20 jobs at unspecified wage rates). He explained that in view of the assistance to be provided,the EDA felt the developer should provide a greater number of jobs and specifics on wages to be paid. He advised the previous language has been replaced with a reference to 75 jobs with an average wage rate of at least$12 per hour. Economic Development Coordinator Carroll explained the provision on the interest provision was negotiated several years ago at 8%but there was concern with the EDA that, perhaps, it was higher than needed be so they negotiated a reduction to 7.25%which is reflected in the current draft. Economic Development Coordinator Carroll explained another provision has to do with plans prepared for this building. The Agreement now includes Exhibit F which will be copies of the specific building plans. He noted the advantage to the City and EDA is that rather than agreeing 2 U:\CARIS\COUNCIL\MINUTES\MVEDA26.APR 1 ; to a speculative agreement,the developer has to agree with what is in the plan and build that building. 1 Economic Development Coordinator Carroll advised that Everest Development has one tenant who is reaching a decision point of whether they want to locate in this building and some changes reflect that specific prospective tenant. He noted the EDA and staff talked in closed session about the documents to be approved and the process to be followed. President Coughlin asked Mr. Nelson if he would like to address the EDA. Tim Nelson, Michael Investments, stated he has nothing to add, stands for questions, and would like an opportunity to address the EDA following decisions made. MOTION/SECOND: President Coughlin/Marty. to reconsider the action taken on Resolution No. 99-EDA-09 which rescinded the authority of the EDA President and Executive Director. Ayes - 5. Nays - 0. Motion carried. MOTION/SECOND: President Coughlin/Thomason. to ratify the action taken by EDA President and City Administrator in signing the original September 8, 1998 agreement presented to the EDA. Ayes - 5. Nays - 0. Motion carried. MOTION/SECOND: Thomason/Marty. To adopt Resolution No. 99-EDA-112 Approving Modifications to Development Assistance Agreement with Michael Investments Concerning the Building N Project. Attorney Long explained that this Resolution, in paragraph 5, indicates upon execution, this new Agreement would essentially supersede and nullify previous agreements that were signed, making this become the new and complete Agreement. He also noted that Paragraph 6, upon approval and execution of this Development Assistance Agreement, will be contingent upon signing a Mutual Release of All Claims to which the developer has agreed. The Mutual Release of All Claims will be signed prior to executing this document. Ayes - 5. Nays - 0. Motion carried. i Mr. Nelson stated he appreciates the action taken by the EDA and commented that Building N will be the last building project within the Mounds View Business Park. On behalf of Everest Group, he stated he is pleased and proud to bring this project to completion. Mr. Nelson reviewed the history of their development of the Mounds View Business Park which started in 1986. He advised that to date, they have developed approximately 1.1 million square feet of 3 U:\CARTS\COUNCIL\MINUTES\MVEDA26.APR I office and industrial space in the park which brought in over 1,500 employees and generated in excess of$30 million of new real estate tax base. Mr.Nelson stated the Mounds View Business Park is the single largest and most important economical development project Mounds View has ever seen with benefits from its substantial tax base, employment opportunities, and spill over economic effects of spending dollars in the community. Mr.Nelson stated the intangible benefits include the aesthetics of the ponds,tree lined boulevards, architectural character, and placing Mounds View on the Twin Cities commercial/industrial real estate map. Mr. Nelson publicly acknowledged the contribution of past Mounds View staff and elected officials who helped in the development of the Mounds View Business Park as follows: Former City Administrator Don Pauley, Former Mayor Jerry Linke, Former Mayor and Council Member Sue Hankner, Former City Council Members Phyllis Blanchard, Diane Wuori and Barb Haake, and Council Member Gary Quick. He encouraged the residents of Mounds View to remember and thank these people for their contributions. Mr. Nelson stated that he felt it was their duty to inform the public and Mounds View residents of a risk and potential problem relating to the Mounds View Business Park that directly affects them. He explained that since the Park was so successful,the project is generating millions of dollars of excess real estate taxes (tax increment) which flows to the City outside of its normal operating budget and tax collections. He explained this presents a real challenge, burden, and danger to the City concerning the handling, spending, and accounting for these excess increment funds. He commented on what they have witnessed in other communities which resulted in problems of favoritism, secret meetings, lack of accountability and special deals for"pet" projects through the illegal use of excess TIF funds. To avoid thee dangers and pitfalls and return the excess increment to City, County and School District taxpayers, Mr.Nelson urged the Council and EDA and all Mounds View residents to act to close down TIF districts as soon as possible after TIF project expenses are paid for. 7. REPORTS There were none at this time. 8. ADJOURNMENT President Coughlin adjourned the meeting at 9:59 P.M. Respectfully submitted, Recorded and transcribed by: 4 U:\CARTS\COUNCIL\MINUTES\MVEDA26.APR Carla Wirth TimeSaver Off Site Secretarial, Inc. a i i 5 U:\CARIS\COUNCIL\MINUTES\MVEDA26.APR