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.
Members absent: Brian Sjoberg, EDA Liaison Roger Stigney.
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 remainder of the term of Dan Nelson (term ending December 31, 1998). The
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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' "equity 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 that 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 "AmericInn Hotel Investment Analysis," it was suggested that the projected"average
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 . .proximat 7:50 p.m.
:ctfully S mitted,
kV/14, (1///6
-vin Carroll
gnomic D +elopment Coordinator
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