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HomeMy WebLinkAbout01-14-2008PROCEEDINGS OF THE MOUNDS VIEW EDA CITY OF MOUNDS VIEW RAMSEY COUNTY, MINNESOTA Regular Meeting January 14, 2008 Mounds View City Hall 2401 Highway 10, Mounds View, MN 55112 6:06 P.M. 1. CALL MEETING TO ORDER 2. ROLL CALL: President Marty, Vice President Stigney, Commissioner Hull, Commissioner Flaherty, and Commissioner Mueller. NOT PRESENT: None. 3. APPROVAL OF AGENDA Economic Development Specialist Heidi Steinmetz asked that the EDA consider swapping the order in which they consider the first two items so that 7B is heard before Item 7A. MOTION/SECOND: Mueller/Flaherty. To Approve the Monday, January 14, 2008 Agenda as amended. Ayes - 5 Nays – 0 Motion carried. 4. PUBLIC INPUT None. 5. APPROVAL OF MINUTES A. December 10, 2007 EDA Minutes MOTION/SECOND: Flaherty/Marty. To Approve the Minutes of December 10, 2007 as Presented. Ayes – 5 Nays – 0 Motion carried. 6. CONSENT AGENDA None. Mounds View EDA January 14, 2008 Regular Meeting Page 2 7. EDA BUSINESS B. Resolution 08-EDA-240 Approving a One-Time Payment to SYSCO Food Services of Minnesota in the Amount of $250,000 Plus Accrued Interest per the Tax Increment Revenue Note Certified in April 2007. Economic Development Specialist Steinmetz indicated that Sysco is well underway creating the required jobs ahead of schedule and Staff does not feel meeting the job and wage creation jobs will be an issue for Sysco. As such, Staff is recommending that the EDA consider a one time payment to save the EDA $33,000 in interest. Commissioner Mueller asked whether Sysco is in agreement with the early payment. Economic Development Specialist Steinmetz indicated that Staff has been working with Sysco and they have been informed and accept the recommendation. Commissioner Flaherty asked why Sysco is willing to do this. Scott Mcguire, CFO and Vice President of SYSCO Minnesota, indicated that he has no problem with the company receiving the money early rather than late. President Marty thanked Ms. Steinmetz for the Staff report. Brian Amundsen, 3048 Wooddale Drive, indicated that he heard that the job and wage goals were “expected” to be met. He said that he is wondering why this is being pushed through when the jobs and wage requirements are not yet met. Economic Development Specialist Steinmetz explained that it is Staff responsibility to find ways to save money. She then said that pursuant to State Statute Sysco is required to create these jobs and, if they do not, they must repay the EDA on a pro rated basis the money that the EDA will be paying out. Economic Development Specialist Steinmetz explained that Staff is required to report to the State of Minnesota any subsidies of $100,000 so the State is monitoring this as well. Commissioner Flaherty indicated that he is pleased that there are monitoring requirements for fulfillment of the obligation on jobs and wages. Commissioner Mueller asked Sysco to provide information on job creation for the coming year. Phil Seipp, President of SYSCO Minnesota, explained that they have picked up new business Mounds View EDA January 14, 2008 Regular Meeting Page 3 that has allowed them to expand and they expect to continue adding business through 2008. He then thanked the City for the support they have received and noted that this is a great City to do business in. MOTION/SECOND: Marty/Mueller. To Waive the Reading and Approve Resolution 08-EDA- 240 Approving a One-Time Payment to SYSCO Food Services of Minnesota in the Amount of $250,000 Plus Accrued Interest per the Tax Increment Revenue Note Certified in April 2007 Vice President Stigney asked whether this was really necessary to expand the TIF district for the extra three years. He then said that he will vote in favor of the resolution but he is sorry that this ever happened as he was opposed to granting assistance for SYSCO in the first place. Ayes – 5 Nays – 0 Motion carried. A. Resolution 08-EDA-239 Approving a Redevelopment Grant Application and Expenditure of Tax Increment Funds for Costs Associated with the Acquisition and Redevelopment of 2400 County Road H2 Economic Development Coordinator Steinmetz explained that the EDA requested dialogue with the Developer to put together a project on all three parcels. Michael Tobin representing Master Development is in attendance to answer questions. Economic Development Coordinator Steinmetz indicated that in December the EDA agreed to hold a public hearing to consider providing up to $100,000 to assist with redevelopment of 2400 County Road H2. Since then, Staff has drafted a grant application to the Minnesota Department of Economic Development to request grant funds to further assist with this project. Economic Development Coordinator Steinmetz indicated that the EDA has invested $675,000 toward this project including the acquisition of the Premium Stop site, demolition, clearing of the site and other activities. Economic Development Coordinator Steinmetz reported that 2400 County Road H2, the Robert’s site, has become available through foreclosure. Commissioner Mueller asked the amount of the requested DEED grant. Economic Development Coordinator Steinmetz indicated that the amount of the grant request presently would be $495,000, which is the identified funding gap in putting together a project for all three parcels. Mounds View EDA January 14, 2008 Regular Meeting Page 4 Economic Development Coordinator Steinmetz indicated that there is an estimate for $80,000 in demolition, $50,000 for filling and $55,000 for water and sewer improvements and $10,000 for ponding. Commissioner Flaherty asked what the bank has listed the property for. Economic Development Coordinator Steinmetz indicated the listing price is $1.1 million. The Bank had originally mentioned that they might be willing to accept $800,000 for the property. Commissioner Flaherty asked what the bid to Welsh was for this property by the Developer. Mr. Tobin indicated that it has been a few months since this was being discussed. Master had submitted an offer less than $800,000. Commissioner Flaherty asked why the City would not just buy the property. Economic Development Coordinator Steinmetz indicated that would be an option or the EDA could receive the grant funds and work with a developer who could provide the matching funds for the acquisition. Interim Executive Director Ericson indicated that the local matching funds do not have to come from the City; they could come from working with a developer or other entity. Valerie Amundsen, 3048 Woodale Drive, indicated that she had expressed concern about putting more money into this corner when she contacted Council Member Mueller. She then said that she does not feel that it is up to the City to become developers. Ms. Amundsen said that she does not support this whatsoever as she feels that the property should stand on its own and be sold for what the market will bear. Interim Executive Director Ericson indicated that Staff would work toward a purchase price of $800,000 or less rather the $1.1 million that the bank feels it is worth. He then said that Staff feels that it is an appropriate use of TIF dollars to acquire properties that may not otherwise redevelop and get back on the tax rolls. Brian Amundsen, 3048 Wooddale Drive, asked whether the EDA regularly approves multiple issues in one resolution. He then said that he sees three requests, one for the grant, one for the TIF funds and one for the purchase of the property. He then requested that the items be separated. Mr. Amundsen said that he would like to see this property develop at the expense of a developer and not the City. Mounds View EDA January 14, 2008 Regular Meeting Page 5 Commissioner Flaherty indicated that he would like to remove the TIF funding and leave the grant application in the Resolution. He then said that he would expect assurances from Master that the Premium Stop purchase would be reimbursed to the City. President Marty said that the price tag is off by about $300,000 and this grant is almost $500,000 so that should take care of some of the other issues as to demolition, site clearing and filling, etc. Staff and the Authority discussed potential revisions to the resolution to eliminate any association or reference to EDA funds being used for the acquisition of the property. Vice President Stigney said that he feels a need to postpone this as it is confusing and needs to be clarified with Master to see if they can do this on their own dime. He then said that he has questions about the big picture for this site and questions with the grant. MOTION/SECOND: Stigney/Marty. To Postpone to the Next EDA Meeting. Commissioner Flaherty said that he sees no issue with submitting the grant as it is as this would not commit the City to anything. Interim Executive Director Ericson indicated that there is time to postpone to the next meeting and still make the grant deadline if approved. Ayes – 5 Nays – 0 Motion carried. C. Resolution 08-EDA-241 Appreciation to Gerald (Jerry) Jaker for his two years of service with the Economic Development Commission (EDC) President Marty read Resolution 08-EDA-241. MOTION/SECOND: Marty/Mueller. To Approve Resolution 08-EDA-241, Appreciation to Gerald (Jerry) Jaker for his two years of service with the Economic Development Commission (EDC). President Marty thanked Mr. Jaker, who was not able to attend the meeting, and all those serving the City on Committees and Commissions. Ayes – 5 Nays – 0 Motion carried. 8. REPORTS 9. NEXT EDA MEETING: Monday, January 28, 2008 at 6:00 p.m. Mounds View EDA January 14, 2008 Regular Meeting Page 6 10. ADJOURNMENT MOTION/SECOND: Mueller/Hull. To Adjourn. Ayes – 5 Nays – 0 Motion carried. President Marty adjourned the meeting at 7:10 p.m. Respectfully submitted, Recorded and transcribed by: Joan Lenzmeier, Recording Clerk TimeSaver Off Site Secretarial, Inc.