HomeMy WebLinkAbout08-08-1994 UNAPPROVED
PROCEEDINGS OF THE MOUNDS VIEW
ECONOMIC DEVELOPMENT AUTHORITY
3 Meeting No. 8
4 August 8, 1994
5 Mounds View City Hall
6 2401 Hwy. 10, Mounds View, MN 55112
7
8
9 CALL TO ORDER
10
11 The Economic Development Authority was called to order by President Linke,
12 on August 8 , 1994 7 : 30 p.m.
13
14 ROLL CALL
15
16 MEMBERS PRESENT: President, Jerry Linke; Vice President, Phyllis
17 Blanchard; Secretary, Diane Wuori; Commissioners Gary Quick and Julie
18 Trude; Executive Director, Samantha Orduno-and Clerk, Michele Severson
19
20 OTHERS PRESENT: Economic Development Coordinator, Cathy Bennett
21
22 MEMBERS ABSENT: None
23
24 APPROVAL OF AGENDA:
110
MOTION/SECOND: Quick/Trude to Approve EDA Agenda
28 VOTE: 5 ayes 0 nays Motion Carried
29
30
31 APPROVAL OF MINUTES There were no minutes to approve at this meeting.
32
33 CONSENT AGENDA
34
35 There were no items placed on the Consent Agenda for this meeting.
36
37 EDA BUSINESS
;38
39 A. Consideration of Approval of Resolution No. 94-EDA12 Appointing
40 Members to the Economic Development Commission
41
42 Cathy Bennett, Economic Development Coordinator, reported that at
43 the July work session, 13 applications were considered for Economic
44 Development Commission members. Bennett noted that in an effort to
45 create a balance between location, gender and experience to fill the
46 four resident vacancies and three business vacancies for the
47 Commission residents Rosemary Goff, Peg Mountin, Dan Nelson, and
48 Delane Welsch and business representatives Mark Malone, Western
49 Bank, Ron Schmidt, Mounds View Amoco, and Phil Seipp, SYSCO,
50 Minnesota were recommended and are scheduled for appointment as
Economic Development Commission members. Bennett stated that all
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UNAPPROVED .
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1 EDA Page Thr e
2 Meeting No. 6 August 8 ,
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4
5 Commissioner Trude asked if the wetland issues were solved.
6
7 Cathy Bennett noted that MSP worked out a compromise mitigation plan
8 with Rice Creek Watershed District. This plan is scheduled to be
_ 9 heard by the Board on August 24 , 1994 . It is expected to be
10 approved.
11 -
12 Commissioner Trude asked why the EDA has to act on this so quickly.
13 The resolution was just received by the EDA tonight.
14
15 President Linke explained that our attorneys see no legal problem
16 with this extension since it is a pay as you go agreement.
17 President Linke stated that it is a request from the Minnesota
18 Housing and Finance Agency rather than from the Developer in order
19 to apply for housing credits.
20
21 Commissioner Trude stated that she doesn't like the last minute
22 decisions that need to be made and she will vote against this item.
23 Trude stated that the EDA has not rushed through any other business
24 dealings and is not comfortable with how fast the developer is
25 requesting the EDA to act without time to properly review the
26 information presented.
27
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28 President Linke again explained that it was the state housing
29 agency's requirement, not the developer's.
30
31 Commissioner Trude stated that maybe the EDA should relook at this
32 development.
33
34 Vice President Blanchard stated that MSP should have known that
35 typically construction lenders prefer 18 months to complete such a
36 project and concurs with Trude's comments.
37
38 Commissioner Trude asked that this be considered at the next
39 meeting.
40
41 Commissioner Wuori asked about the deadline.
42
43 President Linke stated that the letter had to be in last Friday.
44
45 Paul Harrington, Community Development Coordinator, stated that
46 there had to be some promise that this item would be brought to the
47 EDA for action on Monday. MHFA's application was due Friday and the
48 construction lender would not sign the application without some
49 indication that the "drop dead" date would be extended.
50
51 Commissioner Trude stated that this must have been an uncomfortable
52 position for staff to be put in.
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4 UNAPPROVED
EDA Page Two
Meeting No. 6 August 8, 1994
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4
5 terms will expire December 31, 1994. All applicants were qualified
6 for appointment to this Commission and those applications of those
7 not appointed to this Commission will be retained for vacancies on
8 this Commission. President Linke recommended Commissioner Gary
9 Quick serve as liaison to this commission. In the past,
10 Commissioner Quick's work schedule has made it difficult for him to
11 participate in other City Commissions and currently he is not
12 assigned as a liaison to any commission. The EDC is a good
13 opportunity for Quick to participate as a liaison to a citizen
14 group.
15
16 MOTION/SECOND: Wuori/Blanchard to Adopt Resolution No. 94-EDA12
17 Appointing Members to the Economic Development Commission
18
19 VOTE: 5 ayes 0 nays Motion Carried
20
21 B. Consideration of Resolution No. 94-EDA13 Approving and Authorizing
22 the Execution of a Revised Development Assistance Agreement with MSP
23 Real Estate, Regarding Silver Lake Pointe Apartments
24
25 Cathy Bennett, Economic Development Coordinator, reported that Jeff
6 Huggett of MSP Real Estate contacted Paul Harrington, Community
Development Coordinator, and requested an extension of the "drop
dead" date of December 31, 1995, reference in Article III, Section
29 3 . 1 of the Agreement, to June 30, 1996. Bennett explained that the
30 drop dead date is the date the developer must complete the
31 improvements in accordance with the approved construction plans.'
32
33 Bennett explained that the reason for the request for extension of
34 the "drop dead" date was that MSP's construction lender was
35 concerned with the project having to be completed in one year and
36 that 18 months is typically requested for completion of such a
37 project. Bennett also noted that since this is a pay-as-you-go
38 assistance agreement, the extension of the date does not pose a
39 financial burden on the City, it merely defers the date in which the
40 tax increment is incurred. This would be a one year extension.
41 Paul Harrington, Community Development Coordinator, after discussion
42 with President Linke and a bond attorney at Briggs and Morgan,
43 prepared a letter expressing strong support from the community and
44 EDA for a successful, expedient project.
45
46 President Linke stated that before the letter was drafted, Paul and
47 Cathy conferred with him in regard to the request from MSP.
48
49 Discussion evolved among the EDA Commissioners regarding the reasons
50 for the extension request and regarding the date of project
51 construction.
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UNAPPROVED
1 EDA Page Fo r
2 Meeting No. 6 August 8,
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4
5 Commissioner Trude stated that the attorney should draft something
6 that says they should begin construction as soon as possible.
7
8 Cathy Bennett stated that she would converse with the
9 attorney for a clause which encourages MSP to finish
10 construction in an expedient manner as originally planned.
11
12 Commissioner Quick stated that the project should not be jeopardized
13 over this requested change. It took the City and EDA a long time to
14 find someone to develop the project. Quick stated that the problems
15 being made are just the bureaucracy that has to be dealt with at the
16 state level.
17
18 MOTION/SECOND: Quick/Linke to Adopt Resolution No. 94-EDA13
19 Approving and Authorizing the Execution of a Revised Development
20 Assistance Agreement with MSP Real Estate, Regarding Silver Lake
21 Pointe Apartments
22
23 VOTE: 4 ayes 1 nay Motion Carried
24
25 REPORTS
26
27 1. Report of President Linke: No report. •
28
29 2 . Report of Vice President Blanchard: Vice President Blanchard
30 reaffirmed that Commissioner Trude has valid points about rushing
31 things through with regards to Development Agreements
32
33 3 . Report of Secretary Wuori: No report.
34
35 4 . a. Report of Commissioner Quick: No report.
36
37 b. Report of Commissioner Trude: No report.
38
39 5 . Report of Executive Director Orduno: Not in attendance.
40
41 6. Report of Treasurer Brager: Not in attendance.
42
43 7 . Report of Attorney: No report.
44
45 ADJOURNMENT
46
47 There being no further business before this Council, President Linke
48 adjourned the meeting at 7 : 58 p.m.
49
50
51 Respectfully submitted,
52
53 Michele Severson 1111
54 Clerk