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HomeMy WebLinkAbout06-26-2006PROCEEDINGS OF THE MOUNDS VIEW EDA CITY OF MOUNDS VIEW RAMSEY COUNTY, MINNESOTA Regular Meeting June 26, 2006 Mounds View City Hall 2401 Highway 10, Mounds View, MN 55112 6:30 P.M. 1. CALL MEETING TO ORDER 2. ROLL CALL: President Marty, Vice President Stigney, Commissioner Gunn, Commissioner Flaherty, and Commissioner Thomas. NOT PRESENT: None. 3. APPROVAL OF AGENDA MOTION/SECOND: GUNN/FLAHERTY. To Approve the June 26, 2006 Agenda as presented. Ayes – 5 Nays – 0 Motion carried. 4. PUBLIC INPUT There was none. 5. APPROVAL OF MINUTES A. EDA Minutes, June 12, 2006. MOTION/SECOND: FLAHERTY/STIGNEY. To Approve the June 12, 2006 Minutes as amended. Ayes – 5 Nays – 0 Motion carried. 6. CONSENT AGENDA None. 7. EDA BUSINESS A. Consider EDA Resolution 06-EDA-220 Authorizing the Acquisition of the Premium Stop Property Located at 2390 County Road 10 Consistent with the terms of the Approved Purchase Agreement. Mounds View EDA June 26, 2006 Regular Meeting Page 2 Community Development Director Ericson stated this item was on the last agenda but tabled pending additional review of environmental issues. He stated Staff reviewed the proposal and the sellers have agreed to escrow $25,000 for two years to take care of remediation or environmental issues on the site. Community Development Director Ericson said the site has been closed by the MPCA and the engineer gave it a full bill of health. In the Environmental Report there is trace contamination and the MPCA said it is fairly common in places like this. They stated further action is not required. Community Development Director Ericson explained the City has requested a “no liability “ letter that releases the City of any liability in the chain of ownership and the previous owners of the property will be responsible for any contamination. He stated Staff believes they have enough information to go ahead with the purchase and recommends authorizing the acquisition of the property. He stated it is the same resolution as was presented at the last meeting with the added clause. Community Development Director Ericson explained the payment will be for the full amount and the title company will set the amount aside in escrow. Everyone feels it is a clean site and there is a strong likelihood that no remediation will be necessary. He added that redevelopment for commercial or retail should be fine. Commissioner Flaherty asked for clarification about the purchase price. Community Development Director Ericson responded the purchase price is $625,000. Commissioner Flaherty asked about the way the MPCA identifies the site versus the way the City identifies the site. Community Development Director Ericson stated that the way the MPCA designates the property is as the original owner and it has no effect on the purchase. Commissioner Flaherty asked about the MPCA letter regarding the liability language. He questioned the fact that nobody is saying it is a clean site and asked if nobody is saying it’s a clean site. City Attorney Riggs stated that under federal law, anyone who purchases the property must go through the MPCA and the liability letter will remove the City from the chain of ownership. Commissioner Flaherty asked who would be responsible if a future developer insists on a clean site. City Attorney Riggs responded that the City will not be able to say it’s a clean site and will not enter an agreement that indemnifies the City. He stated based on his discussions, and based on potential usage and zoning, there will not be an issue with the site. Commissioner Flaherty stated he wants to make sure the City is not “thrown a curveball” later on and is on the hook for a large clean up. City Attorney Riggs said his staff has been trying to make sure that the City will not be responsible. He stated it appears the City will not be responsible, but there is no 100% guarantee. He said the City cannot say it’s a clean property and, in case soil has to be moved or remediated, the $25,000 in escrow will take care of the expense. City Attorney Riggs said the escrow covers any kind of environmental problem that Mounds View EDA June 26, 2006 Regular Meeting Page 3 comes up in the next 2-2.5 years and it favors the EDA. Commissioner Thomas said until the letter is in hand, her trust level is very low. She said she is less concerned about financial liabilities and more concerned about timing issues. She said she has very little trust that the previous owners, who will be liable legally, can be contacted in a timely manner. She said she believes the City is in a tenuous position. She said if something were to happen, she suspects the City will have to step in and is not thrilled with the idea. She said she is looking for every shred of assurance before she will sign off on the purchase. President Marty said he feels the same way and would like to have the letter in hand. He commended the staff report with the several options about how to market the land. He said there were two options for the site, and he likes the second option of hiring consultants to conduct a site-specific market analysis as to the highest and best use of the parcel recognizing its inherent impediments such as lot configuration, access, and lot size rather than simply reacting to proposals as they are presented. President Marty stated that Staff could actively market the site to developers who specialize in areas identified in the analysis consistent with the declared plans optioned by the City. He said such a plan could conceivably involve adjacent properties as well. He stated Staff is recommending such a plan and if the EDA concurs, they will go ahead and receive proposals from consultant firms. President Marty added he sees this as proactive rather than reactive and commends Staff for such a stance. He said he would like to have some consultants look at the area and market it as is determined. He stated he agrees with the Staff report. President Marty explained that some of the costs could be passed on to future developers. Community Development Director Ericson said those costs could be passed on to the developers through the asking price of the property. Vice President Stigney said they are talking about adjacent properties as well and asked how it would be paid for, whether through TIF funding or development funds. He said he wished all of that was “ironed out” before it was brought to the EDA. President Marty noted that one of the adjoining property owners has stated willingness to sell depending on the price. He said the other property just opened, but it would not necessarily be up to the City to acquire the properties, but having the consultants looking at the adjacent properties for future development. Vice President Stigney asked if TIF funds would be used, and Community Development Director Ericson said that would not be indicated up front. He said the EDA could communicate to potential developers that TIF funding would not be used, but does not want to “close the door” on TIF funding. Vice President Stigney stated TIF could always be opened up, but if the developers know TIF Mounds View EDA June 26, 2006 Regular Meeting Page 4 could be used, they may try to get TIF funding. He added that the EDA should not offer TIF funding. President Marty agreed, and said he would like to keep TIF off the table. He said if something comes in that appeals to the Council, it will be addressed at that time. Commissioner Thomas said this discussion is premature and should wait until it is the Council’s to discuss. She said there is some thought the EDA could put into it as far as options for the property once that time comes. Commissioner Flaherty said he agrees, but does not believe he would say right now that TIF is not available and added developers could ask on a case-by-case basis. He asked that any City funds put toward demolition reflect in the selling price of the property. Community Development Director Ericson said the liability letter is forthcoming and states that the tanks were removed prior to the City maintaining ownership. The letter is a statement to the fact that the City has not caused any of the contamination that is out there. He said the letter is coming and it is clear that the City has nothing to do with the contamination. He said from a Staff perspective, he shares the concern about not having the letter, but if the property is before June 30th, it will save the City close to $20,000 in 2007 taxes. Commissioner Thomas suggested that a resolution be contingent on receipt of the letter, although it still makes her nervous. Community Development Director Ericson stated the letter could be here as soon as tomorrow. President Marty said he would like it to be contingent on the letter as well and Vice President Stigney agreed. Vice President Stigney said the City should not buy the property since it is currently on the tax roll and will be off the tax roll once it is purchased by the City. He stated he does not support the purchase. President Marty that it is one mile of streets off of the tax roll, but is blighted property right on the main street and if it can be developed, he hopes the City will get a higher and better use for property which will generate considerable more taxes than the gas station brought in. He said the only other interest has been from other gas station companies and he would like to get a higher and better use. Vice President Stigney said there will have to be a pretty high price to gain more tax income. President Marty said depending on how it is developed, the City should be able to recoup some money. MOTION/SECOND: GUNN/FLAHERTY. To Approve the Resolution 06-EDA-220 Authorizing the Acquisition of the Premium Stop Property Located at 2390 County Road 10 Consistent with the terms of the Approved Purchase Agreement, contingent upon the receipt of the liability letter from the MPCA. Ayes – 4 Nays – 1 (Stigney) Motion carried. Mounds View EDA June 26, 2006 Regular Meeting Page 5 B. Review Mounds View Tax Increment Financing (TIF) Policy Community Development Director Ericson suggested this action be deferred until the next EDA meeting since it is a potentially long discussion. MOTION/SECOND: GUNN/STIGNEY. To postpone the review of the Mounds View Tax Increment Funding (TIF) Policy until the July 10th meeting. Ayes – 5 Nays – 0 Motion carried. 8. REPORTS Economic Development Coordinator Backman said he attended the Economic Development Association of Minnesota, or EDAM, conference the past week where nine awards were presented to various projects. He stated the best business retention and expansion was to Red Wing, the Best Recruitment Project award went to Greater Mankato for the Wal-Mart distribution center, Best Redevelopment award was to Columbia Heights for Parkview, and Presidents Award for best overall project was awarded to Mounds View for the Medtronic project. Economic Development Coordinator Backman presented the award to the EDA. He said past winners have included the Phalen Corridor in St. Paul, and stated Mounds View is in honored company for the award. He said it was a team effort on part of Council and other parties involved. Economic Development Coordinator Backman explained the selection criteria and stated the City did well in all categories. He stated it is an honor to be recognized by peers on a statewide level. 9. NEXT EDA MEETING: Monday, July 10, 2006 at 6:30 p.m. 10. ADJOURNMENT President Marty adjourned the meeting at 7:05 p.m. Respectfully submitted, Recorded and transcribed by: Lauren McKay TimeSaver Off Site Secretarial, Inc.