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Home My WebLink About04-26-1999 EDA CITY OF MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY MONDAY,April 26, 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 19, 1999 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 5. EDA BUSINESS none 6. REPORTS 7. ADJOURNMENT EDA CITY OF MOUNDS VIEW MEETING MINUTES MONDAY,APRIL 12, 1999 7:00 P.M. 1. CALL MEETING TO ORDER 2. ROLL CALL: Coughlin, Marty, Quick, Stigney, Thomason. NOT PRESENT: None. 3. APPROVAL OF EDA MINUTES FROM MARCH 22, 1999 MOTION/SECOND: Marty/Thomason. To approve minutes of EDA for March 22, 1999. Ayes - 5. Nays - 0. Motion carried. 4. SPECIAL ORDER OF BUSINESS None. 5. CONSENT AGENDA None. 6. EDA BUSINESS A. Consideration of Resolution No. 99-EDA-108,Resolution Approving An Amended Development Assistance Agreement with Michael Investments Concerning the Building N Project Community Development Director Jopke explained this issue was addressed at the March 1 Work Session, the March 8 regular Council/EDA meeting,the March 25 EDA meeting, and the . April 5 regular Council/EDA meeting. He reviewed recent action taken and advised that the developer is now requesting that the Development Assistant Agreement be further amended to clarify certain housekeeping matters, including: 1. A change in the date of the Agreement. 2. A revision of the definition of the term"Improvements"to reflect the alternate site plan approved by the City Council in December of 1998. 3. A change to indicate that the development entity is a general partnership and not a � corporation. 1 U:\CARTS\COUNCIL\MINUTES\MVEDA 12.APR 4. A change to indicate that Jeffrey L. Neilsen is the General Partner and not President of rel' Michael Investments. 41, It was noted that Jim O'Meara of Briggs and Morgan who drafted the original agreement on behalf of the EDA has reviewed the proposed changes and indicated that there are no legal issues with the proposed changes. Staff recommends approval of a resolution approving and authorizing the execution of an amended development assistance agreement with Michael Investments regarding the Building N project. Commissioner Quick asked if staff is satisfied with the agreement. Community Development Director Jopke stated the agreement is consistent with past EDA approvals and he is satisfied since these issues involve housekeeping issues. MOTION: Quick. To adopt Resolution 99-EDA-108, a resolution approving and authorizing the execution of an amended development assistance agreement with Michael Investments regarding the Building 'N' Project. There being no second, President Coughlin declared the motion to have died for lack of a second. MOTION: Coughlin. President Coughlin stated since this amended development agreement has !a not been acted on in the affirmative, he offered the following resolution: "It is hereby resolved by the Board of Commissioners of the Mounds View Economic Development Authority that any and all prior authorizations of the officers of the Authority to execute any Development Assistance Agreement between the Authority and The Everest Group or Michael Investments, including without limitation Resolution Nos. 97-EDA67 and 98-EDA97 of the Board adopted on August 25, 1997, and September 14, 1998, respectively, be and hereby are withdrawn and rescinded. Accordingly, the officers of the Authority are no longer authorized to execute any such agreements respecting tax increment assistance for the so-called Building 'N' project." President Coughlin explained he was authorized to enter into an agreement if the agreement was found to be good and right and the resolution he is proposing, essentially, rescinds that authority 111 for himself and Mr. Whiting to enter into an agreement by the EDA proper. SECOND: Thomason. Ayes - 4. Nays - 1 (Quick). Motion carried. President Coughlin stated the next issue to address is that the EDA has been holding documents sent by Michael Investments that pertained to the original agreement prior to this present EDA consideration. He asked whether it is the will of the EDA to accept the document as originally 2 U:\CARTS\COUNCIL\MINUTES\MVEDAI2.APR approved or reject it. President Coughlin restated that the EDA is currently holding a signed document from the developer with the hope this group would enter into an agreement. He noted it also has a park dedication attached. He asked the EDA's pleasure. Vice President Stigney stated the agreement before the EDA was signed but, if not signed, could be renegotiated. President Coughlin stated it could be renegotiated and asked for a motion to accept or reject the agreement in its current form. MOTION/SECOND: Stigney/Marty to reject the signed agreement between the Mounds View Economic Development Authority and The Everest Group or Michael Investments. Tim Nelson, representing Michaels Investments, stated he is unsure where this action is going but noted they did submit the signed development agreement approved last fall with the la►' condition the park dedication fee be paid and the EDA was authorized to enter in to that agreement. He suggested that despite the first action taken, there is a binding EDA agreement subject to payment of the park dedication fee. Mr. Nelson stated they would like the flexibility to develop the building and felt it was a clear indication when the site plan was approved. He stated it is shocking to him that these housekeeping changes, which are consistent with the site plan approval, cannot be approved on their own merits. Mr. Nelson stated this has been a long process, over several years, and they would like some closure. He stated he hopes the EDA has conferred with their legal counsel about possible actions since they consider they have a binding agreement subject to payment of the park dedication fee. Mr. Nelson asked the EDA to reconsider their first action and approve the housekeeping changes so they have the flexibility to develop what they feel is a higher quality building, will be taxed higher, result in more employment, and bring to a conclusion their involvement in the Mounds View Business Park. He offered to answer questions. President Coughlin noted that Mr.Nelson's colleague is also present. President Coughlin stated several weeks ago he,the Community Development Director, and the Assistant to the City Administrator met with Mr. Nelson and his colleagues who presented a variety of arguments. At that time, those documents were presented and are now being considered. President Coughlin explained that at that time he talked with Mr.Nelson,they came to a conclusion, and shook hands that Mr. Nelson would present those documents to this entire body, not just to him or staff. A week later the documents arrived by courier, and he was very displeased. In light of that, President Coughlin stated that he has a problem with what Mr. Nelson is now saying since, if his word is his bond,they shook hands on that agreement, and had an understanding, so it is easy to make the "jump"that Mr. Nelson cannot now be fully trusted regarding what he is saying for fear he is just"talking through his hat." 3 U:\CARTS\COUNCIL\MINUTES\MVEDA12.APR 1�1 President Coughlin stated even these actions which Mr. Nelson has taken, as much as they have irritated him, have not swayed him in action or the vote that will be taken tonight. But, he wants it to be made known as part of the public record that they(President Coughlin and Mr. Nelson) had a handshake agreement in front of witnesses that Mr. Nelson would do one thing yet he did another. He stated this leaves Mr. Nelson in quite a"pickle." Mr. Nelson stated he regrets President Coughlin is displeased but he believes the action they took was to tender the documents and park dedication fee to the City, whether directly to this body or not. He stated he wanted to submit the documents and cover letter ahead of time to make their opinions known. He stated they can develop the site with the previously approved project, the alternate site plan and amended development agreement, or develop it for some other potential use not covered under the development agreement. However, he would like to do the office flex development being presented tonight. Mr. Nelson explained the agreement was unsigned due to the condition attached by the previous Council that it could not be executed until the park dedication fee was paid in advance. Mr. Nelson explained that paying the $57,000 park dedication fee without knowing whether the project would go forward was something they were not thrilled about but they sent the check and executed the EDA agreement approved by the EDA. He restated they can develop the site as previously approved but he believes it would be the best alternate for them and the City to develop the office flex alternate. President Coughlin noted the motion on the floor would reject the original development It agreement as presented by Mr. Nelson and before the EDA right now. Commissioner Marty stated the Council was led to believe this would be an agenda item at the last work session and were also led to believe that Mr. Nelson or someone from that organization would attend the work session to answer any questions. He asked why no one was present. Mr. Nelson stated he spoke with staff about whether they would attend and he had informed staff they would not attend since they had submitted the agreement, stated their case in the cover letter, and thought all the questions raised about potential changes in the development agreement had been adequately researched by the City staff, including the interest rate being in the market. He stated he also submitted information to staff about pay-as-you-go TIF agreements and interest rates from other communities. Mr. Nelson stated the questions asked at the meeting had also been answered by the employment requirement in the agreement. He explained that it was low because the penalties are so severe if the standard is not met. Mr. Nelson stated he expects that a lot of jobs will be created but in case the building is empty for a period of time,they cannot afford for the project to go away. He stated the formula came from an appraisal commissioned by the City at their expense. Mr. Nelson advised they felt the appraisal was inappropriately low. 4 U:\CARIS\COUNCIL\MINUTES\MVEDAI2.APR Mr.Nelson stated he also heard there were not a lot of questions asked and any asked were to have been relayed from staff to them. He asked the EDA to deal with the merits of the issue, if they want to see the project move forward, and if the agreement reached is appropriate. Mr. Nelson stated they want the project to go forward and he sees no issues except that they have upset the President and did not attend the recent work session. He stated they also wanted to allow the EDA to be able to discuss all issues free and clear of their attendance and he is now available to answer any and all questions. Mr.Nelson urged the EDA to not throw out the project and to deal with the real issues, if there Pt,, are any. He stated his opinion that it would be a mistake to revoke a development agreement that has been approved by the City and executed by the developer. President Coughlin stated he wants to separate the discussion of the development agreement from Mr. Nelson's personal activities. He stated Mr. Nelson has indicated that he decided it would be better for this group if he were not present at the work session, and he decided that the answers to the questions were already provided. President Coughlin explained that the reason he told Mr. Nelson, (and they agreed on it)to attend a work session was so Mr. Nelson would be present in person and the Council would not have to play "telephone" with questions, directing questions through staff, but would have the questions answered by Mr. Nelson in a timely manner. President Coughlin stated again that Mr. Nelson broke his word. He stated he will separate that issue from the development agreement but Mr. Nelson must understand he does not take kindly to shaking hands over an agreement on something as insignificant as attending a meeting with a document rather than sending it by courier. He noted the request of Mr. Nelson is for $1.2 million in tax beaks and he expects the developer to attend"hat in hand" and to honor a request as simple as attending a work session to answer questions directly. ##j President Coughlin stated it was his suggestion that Mr. Nelson attend the work session which he communicated through a memorandum to the rest of the members so all expected Mr.Nelson's attendance. In light of the amount of money being requested,he stated he is disheartened that Mr. Nelson did not at least meet the simplest of requests to attend the work session in person. President Coughlin reviewed that the motion on the floor is to reject the original development agreement authorized by the EDA on February 14, 1998 to enter into an agreement, if found to be in order. Ayes - 4. Nays -1 (Quick) Motion carried. 6. REPORTS There were none at this time. 5 U:\CARTS\COUNCIL\MINUTES\MVEDA12.APR 7. ADJOURNMENT Mayor Coughlin adjourned the meeting at 7:30 P.M. Respectfully submitted, r Ni Recorded and transcribed by: Carla Wirth TimeSaver Off Site Secretarial, Inc. Irl el 6 U:\CARTS\COUNCIL\MINUTES\MVEDAI2.APR Item No. Meeting Date: 4-26-99 Staff Report No. Type of Business: EDBA WK•Work Session;PH:Public Hearing; CA:Consent Agenda;EDBA:EDA Business Mounds View Economic Development Authority Staff Report To: Mounds View Economic Development Authority From: Steve Dorgan, Housing Inspector Item Title/Subject: Housing Replacement Program— 8300 Fairchild Avenue Date of Report: April 20, 1999 SUMMARY At the city council workshop meeting on April 5, the council directed staff to draft a resolution approving the property located at 8300 Fairchild Avenue for participation in the Housing Replacement Program. The property owner is requesting Option 2 of the HRP, which provides demolition funds for the existing home. As part of the proposal, the property owner will construct a new home. ACTION TO BE CONSIDERED Approve resolution 99-EDA-110 authorizing the expenditure of TIF funds for the demolition of the home at 8300 Fairchild Avenue for redevelopment of the property. Steve Dorgan, Housing Inspector 612/717-4023 email steved@rcmnet.org Attachments: 1) Resolution 99-EDA-110 RESOLUTION NO. 99-EDA-110 MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY COUNTY OF RAMSEY STATE OF MINNESOTA RESOLUTION APPROVING AND AUTHORIZING THE EXPENDITURE OF TAX INCREMENT FUNDS FOR THE DEMOLITION OF HOME AT 8300 FAIRCHILD AVENUE AS PART OF THE EDA HOUSING REPLACEMENT PROGRAM It is hereby resolved by the Board of Commissioners(the"Board")of the Mounds View Economic Development Authority(the"Authority")as follows: Section 1. Recitals. 1.01 The Authority has the powers provided in Minnesota Statutes, Sections 469.124 to 469.134 and 469.090 to 469.108(collectively,the"Act"). 1.02 Pursuant to and in furtherance of the objectives of the Act,the Authority has undertaken a program to promote development and redevelopment of certain land within the City of Mounds View and in this connection is engaged in carrying out the Mounds View Economic Development Project(the "Project")within the City. 1.03 There has been approveD pursuant to the Act a Project Plan for the Project. 1.04 The Housing Replacement Program has been adopted under and as part of the Project Plan. 1.05 The redevelopment of property within the Project is a stated objective of the Project Plan and the Housing Replacement Program. 1.06 In order to achieve the objectives of the Project Plan,the Authority has determined to provide substantial aid and assistance through the fmancing of certain public costs of Development. 1.07 The stated purposes of the Housing Replacement Program include reducing the social costs of blight,making better use of public infrastructure,and redistributing tax base to communities with higher levels of fiscal needs. The Housing Replacement Program's objectives include replacing smaller, lower-value housing on scattered sites throughout the City with larger,new and higher-value housing designed for families,the elimination of blighting influences and substandard housing,and the increase of available quality housing for families within the City. 1.08 It has been proposed that the Authority provide funding for the demolition of the home located in the City at 8300 Fairchild Avenue(the"Property")and that the Authority enter into an agreement(the"Agreement")with the owner for the clearance of the property for redevelopment. Section 2. Resolved. 2.01 The Board hereby determines that the Authority's execution of the Agreement and the subsequent clearance of the Property would be in furtherance of the Project Plan and the Housing Replacement Program and hereby approves and authorizes said actions,including the execution of the Agreement by the officers of the Authority in their discretion and at such time,if any,as they may deem appropriate. 2.02 Upon execution and delivery of the Agreement,the officers and employees of the Authority(including members of the City Staff,acting in their capacity as staff to the Authority as well) are hereby authorized and directed to take or cause to be taken such actions as may be appropriate or RESOLUTION NO. 98-EDA-93 PAGE TWO OF TWO necessary on behalf of the Authority to implement the Agreement,including the demolition of the Property's building,which is being accomplished for redevelopment purposes. 2.03 That the Board of the Authority hereby determines that the execution and performance of the Agreement for redevelopment of the Property will help realize the public purposes of the Act and are in furtherance of the Project Plan and the Housing Replacement Program and authorizes the President and Executive Director to appropriate a maximum of$15,000 in tax increment funds to arrange for the demolition of the building on the property located at 8300 Fairchild Avenue. Adopted by the Board of Commissioners of the Mounds View Economic Development Authority this 26th day of April, 1999. Dan Coughlin,President ATTEST: Charles S.Whiting,Executive Director N:\DATA\GROUPS\ECONDE V\EDA-EDC\EDA\RES99\RS99-110.EDA.DOC Item No. Meeting Date: 4-26-99 Staff Report No. Type of Business: EDBA WK:Work Session;PH:Public Hearing; CA:Consent Agenda;EDBA:EDA Business Mounds View Economic Development Authority Staff Report To: Mounds View Economic Development Authority From: Steve Dorgan, Housing Inspector Item Title/Subject: Acquisition/Redevelopment— 2091 Hillview Road Date of Report: April 21, 1999 SUMMARY At the city council workshop meeting on April 5, the council directed staff to draft a resolution approving the acquisition of the property located at 2091 Hillview Road for redevelopment purposes. The direction from the council was to facilitate the redevelopment/rehabilitation by the property to a market rate developer/owner to ensure continued contribution of property taxes. ACTION TO BE CONSIDERED Approve resolution 99-EDA-111 authorizing the expenditure of TIF funds for the acquisition of the building at 2091 Hillview Road to facilitate redevelopment/rehabilitation of the subject site. --11001 Steve Dorgan, ` ' _ •g Inspector 612/717-4023 email steved@rcmnet.org Attachments: 1) Resolution 99-EDA-111 RESOLUTION NO. 99-EDA-111 MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY COUNTY OF RAMSEY STATE OF MINNESOTA RESOLUTION APPROVING AND AUTHORIZING THE EXPENDITURE OF TAX INCREMENT FUNDS FOR THE ACQUISITION OF 2091 HILLVIEW ROAD FOR THE PURPOSE OF RESELLING THE PROPERTY FOR REDEVELOPMENT/REHABILITATION It is hereby resolved by the Board of Commissioners (the "Board") of the Mounds View Economic Development Authority(the "Authority") as follows: Section 1. Recitals. 1.10 The Authority has the powers provided in Minnesota Statutes, Sections 469.124 to 469.134 and 469.090 to 469.108 (collectively, the "Act"). 1.02 Pursuant to and in furtherance of the objectives of the Act, the Authority has undertaken a program to promote development and redevelopment of certain land within the City of Mounds View and in this connection is engaged in carrying out the Mounds View Economic Development Project (the "Project")within the City. 1.03 There has been approve pursuant to the Act a Project Plan for the Project. 1.04 The redevelopment of property within the Project is a stated objective of the Project Plan. 1.05 In order to achieve the objectives of the Project Plan, the Authority has determined to provide substantial aid and assistance through the financing of certain public costs of development. 1.06 It has been proposed that the Authority acquire the property located in the City at 2091 Hillview Road (the "Property") and that the Authority enter into a purchase agreement and/or similar agreement(s) (collectively, the "Agreement") for the acquisition and resale of the Property for the purposes of redevelopment. Section 2. Resolved. 2.01 The Board hereby determines that the Authority's execution of the Agreement and the subsequent acquisition and redevelopment of the Property would be in furtherance of the Project Plan and hereby approves and authorizes said actions, including the execution of the Agreement by the officers of the Authority in their discretion and at such time, if any, as they may deem appropriate. 2.02 Upon execution and delivery of the Agreement, the officers and employees of the Authority(including members of the City Staff, acting in their capacity as staff to the F:\DATA\GROUPS\ECONDEv\EDA-EDC\EDA\RES99\RS99-III.EDA.DOC RESOLUTION NO. 99-EDA-111 PAGE TWO OF TWO Authority as well) are hereby authorized and directed to take or cause to be taken such actions as may be appropriate or necessary on behalf of the Authority to implement the Agreement, including the acquisition of the Property, which is being accomplished for redevelopment purposes. 2.03 That the Board of the Authority hereby determines that the execution and performance of the Agreement and acquisition of the Property will help realize the public purposes of the Act and are in furtherance of the Project Plan and authorizes the President and Executive Director to appropriate a maximum of$85,000 in tax increment funds to purchase the property located at 2091 Hillview Road for redevelopment purposes. Adopted by the Board of Commissioners of the Mounds View Economic Development Authority this 26th day of April, 1999. Dan Coughlin, President ATTEST: Charles Whiting, Executive Director F:\DATA\GROUPS\ECONDEV\EDA-EDC\EDA\RES99\RS99-111.EDA.DOC