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HomeMy WebLinkAbout05-23-2005PROCEEDINGS OF THE MOUNDS VIEW EDA CITY OF MOUNDS VIEW RAMSEY COUNTY, MINNESOTA Regular Meeting May 23, 2005 Mounds View City Hall 2401 Highway 10, Mounds View, MN 55112 6:00 P.M. 1. CALL MEETING TO ORDER 2. ROLL CALL: President Marty, Vice President Stigney, Commissioner Flaherty, and Commissioner Gunn. NOT PRESENT: Commissioner Thomas 3. APPROVAL OF AGENDA MOTION/SECOND: Gunn/Flaherty. To Approve the May 23, 2005 Agenda as presented. Ayes – 4 Nays – 0 Motion carried. 4. PUBLIC INPUT NONE 5. APPROVAL OF MINUTES. A. EDA Minutes May 9, 2005 City Administrator Ulrich had the following corrections: • Page 8, line 306 – the motion should be Marty/Thomas not Ulrich/Thomas. President Marty had the following corrections: • Page 3, line 88 – Rodger McCombs should be Rodger McComb • Page 4, line 138 – ‘facility mgmt’ should read ‘facility management’ MOTION/SECOND: Gunn/Flaherty To Approve the Minutes of May 9, 2005 as amended. Ayes – 4 Nays – 0 Motion carried. Mounds View EDA May 23, 2005 Regular Meeting Page 2 6. CONSENT AGENDA A. Set a Special Meeting of the EDA for June 20, 2005 at 6:00 p.m. at the Mounds View Community Center, 5394 Edgewood Drive. B. Schedule an Executive Session immediately following this meeting to discuss and consider the sale of real property commonly known as The Bridges Golf Course, and a buyout offer of the billboard signs (Verbal Report). MOTION/SECOND: Flaherty/Marty. To Approve the Consent Agenda as presented. Ayes – 4 Nays – 0 Motion carried. Duane McCarty asked the Commission what State Statute applies to the Executive Session scheduled for this evening. City Attorney Riggs stated that Minnesota State Statute 13d, Subdivision 3.C.3 Duane McCarty asked if the value of the property has been determined and if the Executive Session is to specifically discuss the appraisal value. President Marty stated that the property values have not yet been determined. City Administrator Ulrich clarified that the purpose of the Executive Session is to discuss the general specifics of the property purchase. City Attorney Riggs further explained that the purpose for the Executive Session is to deal with the terms of the offer. He stated that Council has to determine if the offer is acceptable or if there is a need to counter the offer. 7. EDA BUSINESS A. 6:05 pm. Continuation of the May 9, 2005 Public Hearing for the Purpose of Considering the Proposed Sale of Land comprising The Bridges of Mounds View Golf Course to Medtronic, Inc. Stacy Kvilvang, Ehlers & Associates provided the Commission with an overview of the Tax Increment Financing process noting that it provides the ability to capture and use the increased local property tax revenues from new development within a defined geographic area. She provided examples of the eligible uses and reviewed the building blocks of TIF. She reviewed the process used to determine the base value of a property noting that they are in discussion with the County Assessor in an effort to determine the accurate value of the property. Mounds View EDA May 23, 2005 Regular Meeting Page 3 Ms. Kvilvang stated that one item, fiscal disparities, requires discussion. She stated that State law requires new commercial/industrial properties in the 7-County metro area to contribute 40- percent of the valuation to an area-wide pool for all local taxing jurisdictions. She reviewed the impacts noting that the EDA has indicated that the fiscal disparities would be paid inside the tax district. She reviewed the items not captured for TIF noting that in this case Medtronic’s base taxes comprise approximately 6-percent. She stated that the net TIF to Medtronic would be 37- percent or approximately $ .37 of each dollar they pay in taxes. She explained that the Development Agreement is the binding contract and includes all of the details for the project and all of the terms as to how the project would move forward. She stated that the City would pay as they go through the project. She explained that the Developer would bear the brunt of the initial costs and would be required to show proof of completion and payment before the City would make payment to the Developer. She stated that the Developers would pay their taxes; the City would then determine the tax increment and forward payment to Medtronic. Ms. Kvilvang reviewed the Development Performa, the comparable land costs and future development potential for the site. She provided the Commission with a an overview of the 2005 Ramsey County Ranking data noting that the information is based on 2004 data. She stated that at the County level Mounds View is ranked Number 1 and explained that there are three Districts in the City because of the base valuation noting that anything captured for the tax increment base would be a bit higher. She stated that at a State level, in 2004, Mounds View was ranked 11 noting that based on the 2005 data the City’s ranking falls to 26. She stated that they plan to do a comparison that would show where Mounds View falls in the ranking for tax increment percentages. Ms. Kvilvang stated that the next step includes special legislation noting that they were initially looking at a redevelopment district. She explained that when the proposal moved to the House the same legislation was introduced noting that changes were made and the District was changed to an Economic Development District. She further explained that an extension was provided that gives the same benefits and reviewed with the Commission. She stated that the final version would come back to the City for approval and would also be reviewed and approved by the School Board and County. She stated that the review and consideration for approval of the Development Agreement is scheduled for June 20, 2005 and from there it would then move through the standard City approval process. President Marty opened the public hearing at 6:29 p.m. Barbara Haake, 3420 County Road I referenced the Executive Session scheduled to discuss The Bridges stating that from her perspective this a done deal. She referenced the May 4th article in the newspaper about proposed property sale values of $300,000 an acre in Blaine and Roseville, noting that Residents have been told that the City would get $120,000 an acre, and urged the Commission not to ask for anything less than $250,000 per acre. She expressed concerns stating that it feels as if Mounds View is getting taken adding that this is not a good deal for the City of Mounds View EDA May 23, 2005 Regular Meeting Page 4 Mounds View. She asked the Commission not to consider TIF and asked what kind of taxes would the City of Mounds View receive if the property, valued close to $85 million, were not under TIF. She expressed frustration stating that she has requested copies of the options available on several occasions and has yet to receive the information. Ms. Kvilvang explained that she does not have the numbers adding that they would work with the Assessor to see what the value is and run the numbers through TIF. President Marty stated that they should probably get a few quotes from realtors in addition to the numbers from the Assessor. He stated that it would be interesting to see how it would be marketed from a realtor’s perspective. Duane McCarty, 8060 Long Lake Road, referenced 469.175 – Establishing and Changing TIF plans, Subdivision 3, states that a County Auditor shall not certify until a tax increment financing plan for the proposed project has been approved by the municipality in which it is located in. He clarified his understanding is that the Auditor cannot certify until the land has been approved. He stated that the residents are very frustrated with the whole process. He reviewed future estimate values and projected depreciation of cash accounts with the Commission noting that the numbers are based on information from the City Finance Department and the Ramsey County Abstract Value for 2005. He noted that the current numbers are more conservative than the numbers used in 1988 and expressed concerns that the City is taking a very conservative 3-percent gain over a 30-year term. He stated that they would find that the conservative real estate value appreciation is $16.5 million at the end of the term and the ending cash account would be approximately $6.7 million, with a total value, over a period of time, would be approximately $20 million. He stated that Ms. Haake made a good point and asked the Commission to clarify the numbers that they are dealing with and where they are coming from. He suggested that the City utilize appraisal companies and get two or three appraisals to get a better idea of what they are dealing with. He noted that the airport would increase land value considerably adding that the City is not dealing with solid numbers here. He stated that he, along with other Residents, is getting weary as they are not getting any answers to the questions asked. He stated that the Community expected more from the City of Mounds View. President Marty acknowledged Mr. McCarty’s concerns and agreed that the Commission and the Residents have not been able to fully discuss all of the issues and their concerns. He explained that there has not been enough time to fully discuss the issues with the EDA meetings scheduled to take place before the City Council meetings. He agreed that the process has been very slow adding that a special meeting has been scheduled for Monday, June 20, 2005 at 6:00 p.m. to discuss the issues. He stated that the meeting would be held at the Banquet Center and would have the same format as the Town Hall meeting. He stated that it is their hope to have more information available that would help to answer a lot of the questions raised by the Community. He stated that he too has several questions noting that he discovered this weekend that this District is set up as an Economic Development District with an eight-year term. He stated that in Mounds View EDA May 23, 2005 Regular Meeting Page 5 reading the House bill as it was portrayed at the Capital that the City of Mounds View requested that the District be extended from an 8-year to a 25-year district. He stated that he was not aware that anyone on the EDA had asked to extend the District and clarified that in the discussions they have held the questions asked are if there are any possible ways to reduce the District from 25 years to 20 or 15 years. Ms. Haake offered to help the Commission work with the Representatives on this issue. She stated that if they would give her the information, signed, that she would discuss their concerns with the Representatives and work to resolve the issues. Daniel Hall, 2200 Highway 10 noted that the Commission and Council have had a tough time noting that they do not have all of the facts and figures available to make a good decision. He suggested that the Commission and Council making sure that they have some parameters on the numbers for the June 20th meeting. He agreed stating that the City should get some real numbers together and obtain a few appraisals prior to the June 20th meeting, as they should know the numbers before making all of these big decisions. President Marty stated that this Public Hearing would be continued to Monday, June 20, 2005. Commissioner Gunn suggested to the Residents that they write out their questions and place it in the drop box located at City Hall. She stated that this would give Staff the opportunity to review and have answers available at the June 20th meeting. Tim Mitchell, 2280 Knollwood Drive, stated that this is the best golf course he has ever played in his life. He stated that people love the course adding that he would be totally upset of the golf course goes. He stated that it is his hope that The Bridges would continue. Darlene Cherry, Roseville, stated that she plays at The Bridges quite often, as it is a unique and affordable course. She stated that The Bridges is a family oriented course and a good place for both youth and adults. She noted that The Bridges is profitable now that it has the billboard contract and revenue. She urged the Commission to keep The Bridges. She stated that if they decide to sell the property to Medtronic the Commission should consider building a smaller golf course, similar to The Bridges. Sue Jung, Regional Manager, Country Suites/Holiday Express, Coon Rapids stated that Medtronic is a wonderful asset to a Community noting that Medtronic is one of their top ten accounts. She stated that Medtronic is a real asset and would help the Community grow. President Marty closed the public hearing at 6:52 p.m. MOTION/SECOND: Gunn/Flaherty. To approve the motion to continue the Public Hearing to Monday June 20, 2005 at 6:00 p.m. Mounds View EDA May 23, 2005 Regular Meeting Page 6 Ayes – 4 Nays – 0 Motion carried. 8. REPORTS NONE 9. NEXT EDA MEETING: Monday, June 13, 2005 at 6:30 p.m. 10. ADJOURNMENT The Commission agreed, by consensus, to adjourn at 6:54 p.m. Respectfully submitted, Recorded and transcribed by: Bonnie Sullivan TimeSaver Off Site Secretarial, Inc.