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HomeMy WebLinkAbout07-26-2004PROCEEDINGS OF THE MOUNDS VIEW EDA CITY OF MOUNDS VIEW RAMSEY COUNTY, MINNESOTA Regular Meeting July 26, 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, Marty and Linke NOT PRESENT: Quick. 3. APPROVAL OF AGENDA MOTION/SECOND: Gunn/Marty. To Approve the July 26, 2004 Agenda as Presented. Ayes – 4 Nays – 0 Motion carried. 4. APPROVAL OF EDA MINUTES A. July 12, 2004 Minutes MOTION/SECOND: Marty/Stigney. To Approve the Minutes of July 12, 2004 as Presented. Ayes – 4 Nays – 0 Motion carried. 5. CONSENT AGENDA None. 6. EDA BUSINESS A. Resolution 04-EDA-191, Approving the Development Agreement to Provide $75,000 in Tax Increment Financing (TIF) Assistance to Velmeir Co., LLC to facilitate the Redevelopment of the Amoco Property located at 2800 County Highway 10 in Mounds View. Economic Development Coordinator Backman stated that on June 28, 2004 the Mounds View EDA authorized staff to draft a development agreement to provide $75,000 in Tax Increment Financing assistance to Velmeir to facilitate the redevelopment of the Amoco site at County Highway 10. The Mounds View EDA recommended that the reimbursement be limited to costs Mounds View EDA July 26, 2004 Regular Meeting Page 2 associated with demolition and clearing, Rice Creek Watershed District stormwater management requirements, and/or park dedication feeds. The source of funds for the $75,000 grant would be Tax Increment Financing funds. Economic Development Coordinator Backman stated Briggs & Morgan, the City’s TIF legal advisor, provided City Staff with a draft of the Development Agreement on July 12, 2004. Velmeir’s legal advisor reviewed the agreement last week and suggested four changes in the document. These were deemed reasonable and were incorporated into Development Agreement. Economic Development Coordinator Backman stated that Staff recommends that the Mounds View EDA approve Resolution 04-EDA-191 that approves the 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 funds from District No. 2. It would be paid to Velmeir on a reimbursement basis and anything above $75,000 would be borne by the developer. Commissioner Marty asked when the $75,000 would be re-paid, and Economic Development Coordinator Backman stated that this was in the form of a grant. Commissioner Marty asked when the TIF District would make up the money in order to decertify this property, and Economic Development Coordinator Backman stated that the property would be developed over the next six to eight months, and it would be on the tax rolls for 2006. He stated the taxes would be approximately $100,000 per year. Commissioner Marty asked if they could decertify the property in a year, and Economic Development Backman stated probably in two years. Commissioner Marty asked about park dedication fees, and President Linke stated that they would be receiving park dedication fees. Commissioner Marty stated he would feel more comfortable taking the wording regarding park dedication fees out of the resolution. Commissioner Gunn agreed, saying it appeared that the city is paying the city. MOTION/SECOND. Marty/Gunn. To approve Resolution No. 04-EDA-191 as amended, removing all language regarding park dedication fees. Commissioner Stigney stated he would not support this drug store by voting to help them with TIF funds. Ayes – 3 Nays – 1 (Stigney) Motion carried. Mounds View EDA July 26, 2004 Regular Meeting Page 3 7. REPORTS Economic Development Coordinator Backman stated the closing was held on July 13th with Procraft Homes, and that the well at 3016 County Raod H2 had been capped, the siding removed, and that on July 27th they would demolish the building. Economic Development Coordinator Backman stated there had been an inquiry by Cressa Partners of Minneapolis regarding the golf course property for corporate office buildings that would employ over 1,000 people. He stated they initially would build a 600,000 square foot building, and eventually up to 1.5 million square feet. He stated the $100 million investment would generate approximately $1.6 million per year in property taxes and would pay the city’s debt on the golf course. He stated they would like to acquire the property in eight to nine months and that construction would start in approximately mid 2005. Economic Development Coordinator Backman asked the Authority if they wished him to pursue this or drop it, and Commissioner Stigney replied to pursue it. President Linke stated he believed this would be a matter for the Council, not the EDA. Economic Development Coordinator Backman stated that this development would like require title research information, and Commissioner Stigney stated he felt EDA funds would be an appropriate funding source rather than General Funds. President Linke stated he would rather have everything presented in one package at the next EDA meeting. MOTION/SECOND. Marty/Stigney. To research title to the golf course property using EDA funds. President Linke stated he would be voting against this because he would like to have all the information presented at the same time. Commissioner Stigney stated he felt they would be remiss if they didn’t look into the title at this time because this particular development has a potential of bringing in $1.6 million in taxes. Commissioner Gunn agreed. Ayes-3 Nays-1 (Linke) Motion carried. 8. NEXT EDA MEETING: Monday, August 9, 2004 (Following Council Meeting) 9. ADJOURNMENT President Linke adjourned the meeting at 6:52 p.m. Respectfully submitted, Mounds View EDA July 26, 2004 Regular Meeting Page 4 Recorded and transcribed by: Sheree Theobald TimeSaver Off Site Secretarial, Inc.