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HomeMy WebLinkAbout06-14-2004PROCEEDINGS OF THE MOUNDS VIEW EDA CITY OF MOUNDS VIEW RAMSEY COUNTY, MINNESOTA Regular Meeting June 14, 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: Gunn/Stigney. To Approve the June 14, 2004 Agenda as Presented. Ayes – 5 Nays – 0 Motion carried. 4. APPROVAL OF EDA MINUTES A. May 24, 2004 Minutes MOTION/SECOND: Stigney/Marty. To Approve the Minutes of May 24, 2004 as Presented. Ayes – 5 Nays – 0 Motion carried. 5. CONSENT AGENDA None. 6. EDA BUSINESS A. Resolution 04-EDA-187 Approving Phase I Environmental Assessment and other Assessment Activities for the Commercial Property known as Gas for Less at 2525 County Highway 10 in Mounds View. Economic Development Coordinator Backman reviewed the Resolution with the Authority and indicated that staff advises the environmental activities be completed prior to any proposed closing on the property, which could occur on June 30th. He indicated there was a Phase I Environmental Assessment that was completed on May 7, 2004 that was undertaken by Western Mounds View EDA June 14, 2004 Regular Meeting Page 2 Bank that was doing a refinancing for the owners. President Linke asked if the person who did the Phase I Environmental Assessment was one of the ones the City was looking at to do this process. Economic Development Coordinator Backman stated it was not, and that it was Protec Environmental Consultants out of Mendota Heights who had done it. He indicated the City should obtain a tank removal cost estimate and conduct site borings for an amount not to exceed $5,200. President Linke asked if that would include tank removal. Economic Development Coordinator Backman stated that would be for the tank removal estimate, and that it would probably be in excess of $10,000 to remove the tanks. Commissioner Stigney asked whether that was over and above the cost of the Purchase Agreement. Economic Development Coordinator Backman stated it would be over and above the cost of the Purchase Agreement. Commissioner Stigney stated he thought this should all be worked into the Purchase Agreement. He stated he would be reluctant to pass this unless it’s contingent upon something else. Economic Development Coordinator Backman stated the acquisition funds would be from the Special Project Fund, and the cost for the environmental assessment activities would be from TIF funds. Commissioner Marty asked if the City could pass these costs onto the next buyer. Economic Development Coordinator Backman stated that could be part of the negotiation process with the developer. President Linke stated he would like the costs to go through the Purchase Agreement. Community Development Director Ericson stated that the sellers would not agree to that as they are selling the land in an as-is condition, and that they do have another seller on hand that will purchase the property. He stated that the City Attorney may prefer to have another Phase I Environmental Assessment done, and they may end up with the same information. He stated they would ask if they could utilize the one that was provided today. MOTION/SECOND. Stigney/Gunn, for discussion. To postpone action on the matter until the Mounds View EDA June 14, 2004 Regular Meeting Page 3 City Attorney reviews it. Commissioner Marty asked if there was a time line they were working against. Environmental Development Coordinator Backman stated if there were no action taken, the other interested party would be able to close this week. He stated the Environmental Assessment could be completed within two weeks. Commissioner Gunn asked how soon the City Attorney would be able to go through this. Environmental Development Coordinator Backman stated they can get a turn around pretty quickly. Ayes-1 (Stigney) Nays-4 Motion failed. MOTION/SECOND. Marty/Gunn. To approve Resolution 04-EDA-187, Approving Environmental Assessment, obtain a tank removal cost estimate and conduct a minimum of four site borings of the property known as Gas for Less at 2525 County Highway 10 in Mounds View for an amount not to exceed $7,500 to be paid from the City’s TIF funds. Ayes-4 Nays-1 (Stigney) Motion carried. B. Resolution 04-EDA-182 Approving a Purchase and Redevelopment Agreement with Pro Craft Development for the Hidden Hollow residential development project. Economic Development Coordinator Backman reviewed the Resolution with the Authority and indicated that staff and Procraft Development representatives and their respective legal representatives have negotiated a final version of the Purchase and Redevelopment Agreement for the Hidden Hollow residential development to be constructed south of County Road H2. Economic Development Coordinator Backman stated that the Hidden Hollow residential development project will create 17 new home lots on a new Hidden Hollow Court cul-de-sac taking access from County Road H2. The value of the lots themselves will vary; however, it is expected that they will be sold for in excess of $100,000 each and upon which be improved with homes valued at more than $400,000. The developer has already executed the petition and waiver to initiate the street project and the closing will be scheduled as soon as the title work is prepared. Kennedy and Graven produced the document and will coordinate the property closing. Economic Development Coordinator Backman stated he received a letter from Cherokee Bank, stating they approved a loan request on behalf of Procraft Development. Mounds View EDA June 14, 2004 Regular Meeting Page 4 Commissioner Stigney asked if the City Attorney had reviewed the resolution and supporting documents. Economic Development Coordinator Backman stated that he has and approved of them. Commissioner Marty asked if all of the staff and city costs are built into the $299,000 listed in 1.06. Economic Development Coordinator Backman stated that they were. Commissioner Marty asked if the developer pays for all the attorneys’ fees to create and/or manage the agreement listed in 13.0, closing costs. Economic Development Coordinator Backman answered yes. Commissioner Marty asked what 17.3, Item D meant. Economic Development Coordinator Backman stated it meant they couldn’t sell until after closing. Commissioner Marty stated he thought items 17.4(a) and 19.14 were excellent. MOTION/SECOND: Marty/Stigney. To Approve Resolution 04-EDA-182 Approving and Authorizing a Purchase and Redevelopment Agreement by and Between the Mounds View Economic Development Authority and Pro Craft Development. Ayes – 5 Nays – 0 Motion carried. 7. REPORTS None. 8. NEXT EDA MEETING: June 28, 2004 (Following Council Meeting) 9. ADJOURNMENT President Linke adjourned the meeting at 6:57 p.m. Respectfully submitted, Recorded and transcribed by: Mounds View EDA June 14, 2004 Regular Meeting Page 5 Sheree Theobald TimeSaver Off Site Secretarial, Inc.