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HomeMy WebLinkAbout05-24-2004PROCEEDINGS OF THE MOUNDS VIEW EDA CITY OF MOUNDS VIEW RAMSEY COUNTY, MINNESOTA Regular Meeting May 24, 2004 Mounds View City Hall 2401 Highway 10, Mounds View, MN 55112 6:30 P.M. 1. CALL MEETING TO ORDER 2. ROLL CALL: Stigney, Gunn, Quick, Marty and Linke NOT PRESENT: None. 3. APPROVAL OF AGENDA MOTION/SECOND: Marty/Stigney. To Approve the May 24, 2004 Agenda as Presented. Ayes – 5 Nays – 0 Motion carried. 4. APPROVAL OF EDA MINUTES A. May 10, 2004 Minutes Commissioner Marty requested the following change: On Page 2, Line 64 change Commissioner to Vice President. MOTION/SECOND: Marty/Stigney. To Approve the Minutes of May 10, 2004 as Amended. Ayes – 5 Nays – 0 Motion carried. 5. CONSENT AGENDA None. 6. EDA BUSINESS A. Consider Michael Investment Request (May 14 & 18, 2004 Correspondence) and Review May 19, 2004 Briggs & Morgan Memo. Economic Development Coordinator Backman reviewed the request from Michael Investment with the Authority. He then reviewed three options with the Authority. Mounds View EDA May 24, 2004 Regular Meeting Page 2 President Linke questioned whether the Church would be paying the second half taxes. Economic Development Coordinator Backman indicated that Michaels Investments has paid the first half taxes and, provided the property is sold, the Church would make the second half tax payment. President Linke indicated that the payment due in August is based upon the April tax payment that was made by Michaels so it seems appropriate that the City make the payment to them in August. He then said that once the Church owns the property the reimbursements by the City stop. Community Development Director Ericson indicated that it is Michaels Investments’ position that they did not consent to the action that was taken with regard to the Resolution adopted and they need to consent to the termination and, without that consent, there is an active and in force development agreement and the City is liable to make the payments to the developer. If it is not assigned to the Church the City has to make payments and, if transferred to the Church then the City would make payments as long as tax payments are being made. He then said that, once an exemption is filed, then there are no further tax payments made and no payments required by the City. Vice President Stigney asked for a staff recommendation. Economic Development Coordinator Backman indicated that part of his position has been that he has not wanted to increase the liability of the City and, for that reason, he has not wanted to see giving up the indemnification and feels it should remain. Commissioner Gunn asked when the property tax payments would cease. Economic Development Coordinator Backman indicated the payments would cease after the Church makes the final payment. Economic Development Coordinator Backman indicated the Church has expressed an interest in having its tax-exempt status and would want to do that as quickly as possible. John Grano indicated that the Church has entered into an amended purchase agreement with Michaels where they waived contingencies and the Church agreed to reassign the TIF agreement back to them. He then said that the Church would work with the City and the closing is set for June 15, 2004. Commissioner Marty commented that it appears that anything that would come in would be forwarded to Michael Investments. Mounds View EDA May 24, 2004 Regular Meeting Page 3 Mr. Grano indicated the TIF note payment goes to Michaels and the indemnification stays with Michael Investments with the building. MOTION/SECOND: Quick/Gunn. To Approve Option Two. Vice President Stigney asked for Staff recommendation. Economic Development Coordinator Backman indicated that if he was encouraged to make a decision he would go with option two and the reasons for that would be retaining indemnification and he would like to see the development agreement closed out as soon as possible. Ayes – 5 Nays – 0 Motion carried. B. Correct EDA Resolution 04-EDA-186 by Changing the Date of Requested Public Hearing from June 21, 2004 to June 28, 2004. MOTION/SECOND: Marty/Stigney. To Approve the Correction of Resolution 04-EDA-186 by Changing the Date of Requested Public Hearing from June 21, 2004 to June 28, 2004. Ayes – 5 Nays – 0 Motion carried. C. Discussion of Map Identifying Parcels to be Identified as Potential Commercial and Residential Redevelopment Areas as Part of the Proposed TIF Plan Modifications. Economic Development Coordinator Backman briefly discussed the proposed map with the Authority and asked Members to provide input on any additional parcels they would like to see added to the map. 7. REPORTS A. Review Appraisal for Acquiring Gas & Wash 2525 County Highway 10. The Authority discussed the appraisal received on the Gas & Wash property. Staff indicated that the appraised value was found to be $819,000. 8. NEXT EDA MEETING: June 14, 2004 Mounds View EDA May 24, 2004 Regular Meeting Page 4 9. ADJOURNMENT President Linke adjourned the meeting at 7:10 p.m. Respectfully submitted, Recorded and transcribed by: Joan Lenzmeier TimeSaver Off Site Secretarial, Inc.