Loading...
HomeMy WebLinkAbout07-27-1998 • CITY OF MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY MONDAY JULY 27, 1998 ROLL CALL President McCarty called the meeting to order at 8:50 p.m., July 27, 1998. MEMBERS PRESENT: President McCarty, Vice-President Koopmeiners, Commissioners Gunn, Quick, and Stigney. ALSO PRESENT: City Administrator Chuck Whiting, Community Development Director Rick Jopke, Housing Inspector Steve Dorgan, Economic Development Director Kevin Carroll, and Recorder Dave Hix. 1. AGENDA ADDITIONS No additions were considered. 2. APPROVAL OF MINUTES • MOTION/SECOND: Stigney/Koopmeiners to approve the July 13, 1998 meeting minutes as submitted. VOTE: Ayes - 4 Nays - 0 Abstain- 1(McCarty) Motion carried 3. SPECIAL ORDER OF BUSINESS No special order of business was considered. 4. CONSENT AGENDA No Consent Agenda was considered. 5. AUTHORITY BUSINESS A. Discussion of HRP property-8283 Long Lake Road Dorgan gave his report as follows: Staff was asking the Authority for direction with the property located at 8283 Long Lake Road. The property was acquired by the City in March of 1997. In October of 1997 the City Council directed staff to discuss with developers the possibilities of further developing this property. To • date no development has been proposed for the property. Numerous calls have been received from private individuals wanting to develop the site as a single-family residence. • Page 2 EDA July 27, 1998 MOTION/SECOND: Quick/Stigney to direct staff to continue to market the property as a subdividable lot and wait for a private proposal prior to proceeding further on the sale of the lot. VOTE: Ayes - 5 Nays - 0 Motion carried B. Discussion of Home Improvement Loan Interest Subsidy Program Dorgan gave his report as follows: Staff has been working with the EDC over the past several months to develop a Home Improvement Loan Program. Guidelines for the program have been put in resolution form which was presented to the EDA for their approval. The program was composed of two components as follows: 1. Subsidizing MHFA, Minnesota Housing Finance Agency,home improvement loans. A. Increases the maximum household income from$49,000 to $69,900 • B. To be used for homes built before 1965 2. Subsidize market rate loans by a rate of 3 percent Two financial institutions will be sponsoring the programs in the City; Western Bank and The Center for Energy Environment, a nonprofit lender. Both components would use TIF funds available through the City. The City currently has allocated$130,000 for 1998. Of that amount, $5,600 has been used leaving an available balance of$124,400. This program proposes to allocate $75,000 for intersubsidies for the two components. $40,000 for the MHFA component and $35,000 for the market rate loans. The EDA recently approved the purchase of an HRP property located at 6991 Pleasant View Drive for a price of$62,500. The funds for this property will also be allocated out of the remaining $124,000 TIF funds. Staff is recommending allocating Home Improvement Loan Interest Subsidy Program funds over a two-year period to allow the purchase of this HRP property. Stigney voiced his opposition to subsidizing home improvement loans to people that can afford II/ to do improvements with their own funds. • Page 3 EDA July 27, 1998 Quick asked how prospective program participants would be qualified. Dorgan stated the person would go to the lender and the llender would establish their household income. The lender would then determine if the proposed work was on its list of qualified improvements. When all conditions of the approval process are met the bank or other lender issues the loan with the City being responsible for subsidizing the loan interest. MOTION/SECOND: Koopmeiners/Stigney to direct staff to develop a Home Improvement Loan Interest Subsidy Program and set the proposed program on a future agenda for action or further discussion. VOTE: Ayes - 5 Nays - 0 Motion carried C. Consideration of Resolution No. 98-EDA-96, Modifying the Business Improvement Partnership Loan Program in certain respects. Carroll gave his report as follows: • Staff is recommending the reactivation of the Business Improvement Partnership Loan Program that had been started in 1995. This Program was developed to assist local businesses in the expansion or improvement of their operations. The program is, or could be, one of the most visible manifestations of the city's commitment to improving the local business climate. If handled properly,the Program could engender good will and generate favorable publicity for the businesses that recieve assistance and for the City itself. The 1998 budget allocates $45,000 for Business Improvement Partnership Loans none of which has apparently been loaned,to date. The Program should first be specifically targeted to conforming businesses that are located in buildings that are structurally sound,but that are unattractive, inefficient, outdated, or in need of improvement or renovation for other valid reasons. An effort should be made to avoid generating more interest than the City has the financial means to accommodate in order to minimize ill will and/or claims of favoritism with respect to those who do receive loans. City money should not be used to improve nonconforming uses that the City may eventually want to eliminate or relocate. Loan funds should be used in a manner that would produce visible results, thereby improving not only the business in question but also the overall appearance of the City's business district. Staff is recommending eliminating the requirement that a business be in operation in Mound View for two years before becoming eligible for the Program. Given the fact that loan proceeds • Page 4 EDA July 27, 1998 will generally be used for interior and exterior structural and cosmetic improvements that will stay in the City, the City will benefit from any such improvements even if other businesses eventually occupy the improved business sites. Requests from longstanding members of the local business community should be entitled to priority over a relative newcomer, all other things being equal. This is not a grant program but a loan program. The Program has a history of 100 percent repayment by all who have participated in the program. This is a prime example of how a city can "prime the pump"for improving both the tax base and also the appearance of the business community. Stigney stated he would not be in favor of changing the two-year requirement that is on the books currently. MOTION/SECOND: Stigney/Gunn to approve Resolution No. 98-EDA-96, Modifying the Business Improvement Partnership Loan Program, deleting Item A of the Resolve Clause. • VOTE: Ayes - 5 Nays - 0 Motion carried D. Consideration of Resolution No. 98-EDA-95,Appointing Economic Development Commission members to fill the two current vacancies. MOTION/SECOND: McCarty/Gunn to approve, as amended, Resolution No. 98-EDA-95 striking in the "Now Therefore Be It Resolved" that the Economic Development Authority of the City of Mounds View hereby appoints Sean Walther and Wendy Marty to the Economic Development Commission, with terms expiring December 31, 2000 and December 31, 1998 respectively. Striking the rest of the recommendation that Mr. Laube be held in limbo in case somebody decides not to serve. VOTE: Ayes - 5 Nays - 0 Motion carried 6. REPORTS No reports were considered from the Commissioners or staff. 7. ADJOURNMENT MOTION/SECOND: Koopmeiners/Stigney to adjourn the meeting. • VOTE: Ayes - 5 Nays - 0 Motion carried • Page 5 EDA July 27, 1998 There being no further business before the EDA, President McCarty adjourned the meeting at 9:20 p.m. Respectfully submitted, Dave Hix Recorder • •