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HomeMy WebLinkAbout06-28-2004PROCEEDINGS OF THE MOUNDS VIEW EDA CITY OF MOUNDS VIEW RAMSEY COUNTY, MINNESOTA Regular Meeting June 28, 2004 Mounds View City Hall 2401 Highway 10, Mounds View, MN 55112 10:06 P.M. 1. CALL MEETING TO ORDER 2. ROLL CALL: Stigney, Gunn, Quick, Marty and Linke NOT PRESENT: None. 3. APPROVAL OF AGENDA Mayor Linke stated he would like to amend the agenda to add an EDA Business Item C, which would be to rescind 04-EDA-187 that was passed at the last EDA meeting. MOTION/SECOND: Gunn/Stigney. To Approve the June 28, 2004 Agenda as amended. Ayes – 5 Nays – 0 Motion carried. 4. APPROVAL OF EDA MINUTES A. June 14, 2004 Minutes MOTION/SECOND: Gunn/Marty. To Approve the Minutes of June 14, 2004 as presented. Ayes – 5 Nays – 0 Motion carried. 5. CONSENT AGENDA None. 6. EDA BUSINESS A. Resolution 04-EDA-188 Requesting that the Mounds View EDA Adopt the Modification to the Project Plan for the Mounds View Economic Development Project (A copy of the Modification is part of the City Council packet, Item 10A). Mounds View EDA June 28, 2004 Regular Meeting Page 2 MOTION/SECOND. Gunn/Stigney. To waive the reading and approve Resolution 04-EDA-188 Requesting that the Mounds View EDA Adopt the Modification to the Project Plan for the Mounds View Economic Development Project. Ayes-5 Nays-0 Motion carried. B. Resolution 04-EDA-189 Authorizing Staff to Draft a Development Agreement to Provide $75,000 in TIF Assistance to Velmeir Companies to facilitate the Redevelopment of the Amoco Property located at 2800 Co. Highway 10. Economic Development Coordinator Backman stated the commercial site at 2800 Co. Highway 10 was formerly an Amoco gasoline station and has been vacant for over three years. Three underground storage tanks, the associated piping and contaminated soils were removed from the site in June of 2001. For over a year the Velmeir Companies, a Michigan development group, has been working to redevelop the site for a 13,000 square foot CVS Pharmacy facility. Velmeir has negotiated purchase agreements with Amoco and all adjoining property owners, prepared and submitted site plans to the City, obtained preliminary plat approval from both the Planning Commission and City Council, and is now before the City Council for final plat approval. Economic Development Coordinator Backman stated the current total project cost is over $3.65 million, which exceeds the project budget as set by the end user. Expected additional costs during the past two months have been added to the site development costs. In particular, Rice Creek Watershed District has added over $106,000 in stormwater management costs. These added costs put the project in jeopardy. In a June 22, 2004 letter John Kauppila, Director of Construction for Velmeir, indicates that construction of the new store in Mounds View is at risk unless the developer can obtain some financial assistance from the City. Mr. Kauppila highlights three potential areas of assistance – Demolition & Site Clearing, Stormwater Requirements with RCWD, and Park Dedication Fees. The company requests a TIF grant for $75,000 that could be applied to one or more of the eligible items. Velmeir indicates that if the amount is provided they are still over budget and absorbing costs, but they will commit to moving forward with the development. Economic Development Coordinator Backman stated that staff has been in discussions with the TIF advisors regarding this request. The items brought up by Velmeir are allowable TIF expenses. From a procedural standpoint, the Velmeire should pay the full amount of the fees or costs, then the City could reimburse the developer up to an agreed upon amount. Anything above the cap would be borne by the developer. As with the TIF grant to Rob Carlson Builders for the Highway Business Center, the purpose of the assistance is to encourage the redevelopment of a property with a vacant building near the entrance to the City, and to facilitate the advent of a new business in the community. Mounds View EDA June 28, 2004 Regular Meeting Page 3 Economic Development Director Backman stated that staff recommends the Mounds View EDA approve Resolution 04-EDA-189 that authorizes staff to draft a development agreement with Velmeir to provide a grant for $75,000 to facilitate the redevelopment of the vacant commercial property located at 2800 County Highway 10. The funding source would be Tax Increment Financing (TIF) funds from District No. 2. It would be paid to Velmeir on a reimbursement basis any anything above $75,000 would be borne by the developer. Jim Belvert of Belvert Companies stated the costs of the pond are a huge factor right now, as well as they had to purchase additional land to accommodate the pond. Mayor Linke stated it is getting ridiculous how they face these same problems on every project. Council Member Gunn stated that this is what TIF money is for. MOTION/SECOND: Gunn/Quick. To waive the reading and approve Resolution 04-EDA-189 Authorizing Staff to Draft a Development Agreement to Provide $75,000 in TIF Assistance to Velmeir Companies to facilitate the Redevelopment of the Amoco Property located at 2800 Co. Highway 10. Council Member Stigney stated this is an expensive project, and the developer should have anticipated some additional expenditures. He stated he was not in favor of granting the $75,000, and he felt they should stand on their own two feet. Economic Development Director Backman stated Velmeir has spent in excess of $200,000 to date. He stated the developer can eat only so much. Council Member Stigney stated he felt the developer could afford it more than the City could. Council Member Marty stated he had come into the meeting agreeing with Council Member Stigney, but after hearing of the dealings with the Rice Creek Watershed, he was more on the fence. He stated he would like to have the park dedication fees portion removed from this, but otherwise he can go along with it. Mayor Linke stated they are not saying no to the park dedication fees. Ayes – 4 Nays – 1 (Stigney) Motion carried. C. Rescind 04-EDA-187, the Environmental Study for the 2525 Highway 10 Gas Station. MOTION/SECOND. Linke/Marty. To rescind approval of Resolution 04-EDA-187, the environmental study for the 2525 Highway 10 gas station. Mounds View EDA June 28, 2004 Regular Meeting Page 4 Ayes-5 Nays-0 Motion carried. 7. REPORTS Council Member Quick stated he felt enough was enough with the Rice Creek Watershed District. MOTION/SECOND. Quick/Marty. To direct staff to meet with state representatives and state senator and anybody else that they can at the legislature to discuss the issue with the Rice Creek Watershed District, and to also involve Ramsey County Commissioners. Ayes-5 Nays-0 Motion carries. 8. NEXT EDA MEETING: Monday, July 12, 2004 9. ADJOURNMENT President Linke adjourned the meeting at 10:30 p.m. Respectfully submitted, Recorded and transcribed by: Sheree Theobald TimeSaver Off Site Secretarial, Inc.