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HomeMy WebLinkAbout05-13-2013 CITY OF MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY MEETING AGENDA MOUNDS VIEW CITY HALL Monday, May 13, 2013 6:00 PM 1. CALL TO ORDER 2. ROLL CALL: President Flaherty, Vice President Gunn, Commissioner Hull, Commissioner Meehlhause, Commissioner Mueller 3. APPROVAL OF AGENDA 4. PUBLIC INPUT: Citizens may speak to issues not on tonight’s agenda. Before speaking, please give your full name and address for the minutes. Also, please limit your comments to three minutes. 5. APPROVAL OF MINUTES - None 6. CONSENT AGENDA 7. EDA BUSINESS A. Resolution 13-EDA-275 Amending Mounds View Home Improvement Loan Program B. Resolution 13-EDA-276 Amending Mounds View Business Improvement Partnership Loan Program C. Resolution 13-EDA-277 Authorizing and Approving the Authority's Purchase Offer for the Property Located at 2400 County Road H2, Mounds View, Ramsey County, Minnesota, and Approval of the Terms and Conditions and Purchase Agreement 8. REPORTS 9. NEXT EDA MEETING: Tuesday, May 28, 2013, at 6:30pm 10. ADJOURNMENT Item No: 7A Meeting Date: May 13, 2013 Type of Business: EDA Administrator Review : ____ City of Mounds View Staff Report To: Economic Development Authority (EDA) From: Heidi Steinmetz, Economic Development Specialist Item Title/Subject: Resolution 13-EDA-275 Amending the Mounds View Home Improvement Loan Program Background The Home Improvement Loan Program was created by the EDA in late 2010 to provide additional home improvement loan options to Mounds View residents. Shown below, the program offers four types of loans, three of which cater to low-income residents who may not qualify for traditional home improvement loan financing. Loan Name Loan Amount Interest Rate Payment Type Home Demolition Up to $10,000 3% Fixed Code Enforcement Up to $7,000 0% Fixed General Home Improvement Up to $10,000 3% Fixed Emergency Deferred Up to $7,000 0% Deferred Since the program’s inception, three loans have closed (bathroom remodel, new roof and home demolition). The total amount of loan funds used is $24,000. Discussion The EDC (April 19) and EDA (April 22) recently discussed the following two amendments to the Home Improvement Loan Program : 1) Decrease the Mounds View Home Improvement Loan Program budget to $100,000 2) Increase the Home Demolition Loan amount to $15,000 Recommendation City staff recommends that the EDA consider Resolution 13-EDA-275 Amending the Mounds View Home Improvement Loan Program. Respectfully submitted, ___________________________ Heidi Steinmetz, Economic Development Specialist Attachment – Resolution 13-EDA-275 EDA RESOLUTION 13-EDA-275 MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY COUNTY OF RAMSEY STATE OF MINNESOTA RESOLUTION AMENDING THE MOUNDS VIEW HOME IMPROVEMENT LOAN PROGRAM WHEREAS, the Mounds View Economic Development Authority (EDA) has Housing and Redevelopment Authority powers provided in Minnesota Statutes, Sections 469.001 to 469.047; and, WHEREAS, the purposes of Sections 469.001 to 469.047 are: (1) to provide a sufficient supply of adequate, safe, and sanitary dwellings in order to protect the health, safety, morals, and welfare of the citizens of this state; (2) to clear and redevelop blighted areas; (3) to perform those duties according to comprehensive plans; (4) to remedy the shortage of housing for low and moderate income residents, and to redevelop blighted areas, in situations in which private enterprise would not act without government participation or subsidies; and (5) in cities of the first class, to provide housing for persons of all incomes; and, WHEREAS, on November 22, 2012, the Mounds View EDA approved criteria for a one-year pilot program called the Mounds View Home Improvement Loan Program consisting of the following four loan types available to Mounds View residents: 1) Home Demolition, 2) Code Enforcement, 3) General Home Repair and 4) Emergency Deferred; and, WHEREAS, on December 12, 2011, the EDA authorized a one-year extension of loan program through 2012 and increased the program’s loan-to-value ratio to 110%; and, WHEREAS, on June 11, 2012, the EDA expanded the “General Home Repair” loan criteria to include unimproved driveways as an eligible project; and, WHEREAS, on October 8, 2012, the EDA renamed the “General Home Repair” loan to the “General Home Improvement” loan, added bathroom and kitchen remodels to the list of eligible improvements for the “General Home Improvement” loan and added clarifying language to address eligible repairs and improvements for the “General Home Improvement” loan. Resolution 13-EDA-275 Page 2 of 2 NOW, THEREFORE BE IT RESOLVED THAT the Mounds View Economic Development Authority does hereby authorize the following amendments to the Mounds View Home Improvement Loan Program : 1) Decrease the Mounds View Home Improvement Loan Program budget to $100,000 2) Increase the Home Demolition Loan amount to $15,000 Adopted this 13th day of May, 2013 by the Mounds View Economic Development Authority ________________________________ Joe Flaherty, President (ATTEST) ________________________________ James Ericson, Executive Director Item No: 7B Meeting Date: May 13, 2013 Type of Business: EDA Administrator Review : ____ City of Mounds View Staff Report To: Economic Development Authority (EDA) From: Heidi Steinmetz, Economic Development Specialist Item Title/Subject: Resolution 13-EDA-276 Amending the Mounds View Business Improvement Partnership Loan Program Background The Business Improvement Partnership Loan Program was created by the EDA in 1995 to provide up to $25,000 loans at 2% interest for exterior and interior improvements. Attached is the program flyer and application. The program was used three times; one for Dynex Industries in 1995, one for Mister Donut in 1995 and another to Mounds View Fina in 1996. Each loan was a “participation loan” with $25,000 provided by the EDA and $25,000 provided by the bank. The total loan fund budget for 20 13 is $50,000. Discussion The EDC (April 19) and EDA (April 22) recently discussed the following amendments to the Business Improvement Partnership Loan Program: 1) Remove the requirement that businesses must be located in Mounds View for two years prior to applying for the loan 2) Because the participating bank will require financial statements and bids to underwrite the loan, remove the requirement that applicants must also provide the information to the EDA Recommendation City staff recommends that the EDA consider Resolution 13-EDA-276 Amending the Mounds View Business Improvement Partnership Loan Program. Respectfully submitted, ___________________________ Heidi Steinmetz, Economic Development Specialist Attachments  Revised Business Improvement Partnership Loan Program Flyer & Application  Resolution 13-EDA-276 ECONOMIC DEVELOPMENT AUTHORITY (EDA) BUSINESS IMPROVEMENT PARTNERSHIP LOAN PROGRAM $25,000 LOANS AT 2% FOR EXISTING MOUNDS VIEW BUSINESSES All applications must be approved by a participating bank and the City of Mounds View Economic Development Authority (EDA). PROGRAM PURPOSE The Mounds View Business Improvement Partnership Program was established to partner with the local business community by providing 2% interest loans for exterior and interior improvements. HOW THE PROGRAM WORKS The Mounds View Economic Development Authority, in partnership with local ba nks, will provide improvement loans to new and existing Mounds View businesses at a minimum of $10,000 and a maximum of $50,000 (the most the EDA itself would loan is $25,000). The EDA participates in the program by providing ½ the loan amount at a 2% interest rate. The loan is non-assumable. ELIGIBILITY REQUIREMENTS  Property must be located in Mounds View  Existing business for two years  Qualified small business and credit history  Loan must be used to improve the interior or exterior of existing facility  Interior and exterior improvements must conform to current zoning ordinances, building codes, and other applicable city ordinances  Owner or officer of the business must be loan applicant QUALIFIED IMPROVEMENTS  Repair storefront entrances, windows, doors and other decorative applications  Upgrade interior design and configuration to enhance business  Paint, clean, or stain interior and exterior of building  Upgrade or replace existing business sign  New or upgraded landscaping to improve appearance of facility  Parking lot reconfiguration or repair  Required storm water discharge improvements  Upgrade facility to comply with American with Disabilities Act requirements HOW TO APPLY Contact Economic Development Specialist Heidi Steinmetz at 763-717-4029 or heidi.steinmetz@ci.mounds-view.mn.us for an application. APPLICATION: EDA BUSINESS IMPROVEMENT PARTNERSHIP LOAN Date:____________________ Business Name:___________________________________________________________ Business Address:_________________________________________________________ Applicant Name (Business Owner):____________________________________________ Phone:_______________________Email:_______________________________________ Business Website Address:_____________________________________ When was your business founded?______________ Business Description:______________________________________________________ _________________________________________________________________________ Participating Bank Name & Address:__________________________________________ Participating Bank Contact Name & Phone:_____________________________________ Description of Work to be Performed Name of Contractor Projected Cost Signature:__________________________________________________ Title:_______________________________________________________ Please attach project plans and specifications to your application. All applications must be approved by a participating bank and the City of Mounds View Economic Development Authority (EDA). EDA RESOLUTION 13-EDA-276 MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY COUNTY OF RAMSEY STATE OF MINNESOTA RESOLUTION AMENDING THE MOUNDS VIEW BUSINESS IMPROVEMENT PARTNERSHIP LOAN PROGRAM WHEREAS, the Mounds View Economic Development Authority (EDA) h as Economic Development Authority powers provided in Minnesota Statutes, Sections 469.090 to 469.108; and, WHEREAS, on June 5, 1995 per Resolution 95-EDA-27, the Mounds View EDA approved a business loan program for Mounds View businesses to provide low interest loans for interior and exterior improvements; and, WHEREAS, loans are “participation loans” offering $25,000 from the EDA and $25,000 provided by the participating bank; and, WHEREAS, the total loan fund budget for 2013 is $50,000. NOW, THEREFORE BE IT RESOLVED THAT the Mounds View Economic Development Authority does hereby authorize the following amendments to the Business Improvement Partnership Loan Program: 1) Remove the requirement that businesses must be located in Mound s View for two years prior to applying for the loan 2) Because the participating bank will require financial statements and bids to underwrite the loan, remove the requirement that applicants must also provide the information to the EDA Adopted this 13th day of May, 2013 by the Mounds View Economic Development Authority ________________________________ Joe Flaherty, President (ATTEST) ________________________________ James Ericson, Executive Director Item No: EDA 7C Meeting Date: May 13, 2013 Type of Business: Business City of Mounds View Staff Report To: Mounds View Economic Development Authority From: James Ericson, Executive Director Item Title/Subject: Authorization and Approval of the Authority's Purchase Offer for the Property Located at 2400 County Road H2, Mounds View, Ramsey County, Minnesota, and Approval of the Terms and Conditions and Purchase Agreement Introduction: The Mounds View Economic Development Authority, acting as the City Council, has met on March 25, 2013 and April 22, 2013 pursuant to Minnesota Statutes Sections 13D.05, subdivision 3(c), to conduct closed sessions to review and consider strategies and to develop or consider offers or counteroffers for the purchase or sale of an interest in real or personal property located in the City at 2400 County Road H2. Discussion: The City Council directed staff to engage the services of a real estate broker to negotiate with the seller on the City’s behalf. A letter of intent dated April 24, 2013 was executed by the broker and seller and returned to the City on April 29, 2013. The letter of intent indicated a purchase agreement would be provided to the seller at the agreed upon price of $729,000, subject to numerous conditions and contingencies to protect the City’s interests. The Purchase Agreement (attached) has been executed by the seller and now awaits EDA consideration. The property located at 2400 Co. Road H2 is zoned B-3, Highway Business Commercial, which the Comprehensive Plan designates as Mixed-Use Planned Unit Development on the Future Land Use Map. The parcel has been utilized as a bar and restaurant since originally constructed in 1973. The lot is 2.05 acres and borders three streets—County Road H2, Edgewood Drive and Greenfield Avenue. The EDA already owns the parcel formerly known as the “Premium Stop”, located across Greenfield Avenue fronting County Road 10. Acquisition of the property would be consistent with the City Council’s priorities relating to the Co. Road 10 corridor. Recommendation: Resolution 13-EDA-277 is attached for the Authority’s consideration which authorizes and approves the Authority's purchase offer for the property located at 2400 County Road H2, Mounds View, Ramsey County, Minnesota, and approval of the terms and conditions and Purchase Agreement. Respectfully submitted, ________________________ James Ericson City Administrator MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY CITY OF MOUNDS VIEW COUNTY OF RAMSEY STATE OF MINNESOTA RESOLUTION 13-EDA-277 MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION AUTHORIZING PURCHASE OF PROPERTY WHEREAS, Goff Holdings, LLC, a Minnesota limited liability company (“Seller”) is an owner of real estate located at 2400 County Road H2, Mounds View, Ramsey County, Minnesota, and which is legally described in the Agreement as hereinafter defined (the “Property”); and WHEREAS, the Mounds View Economic Development Authority, a public body corporate and politic (the “EDA”) desires to purchase of the Property from the Seller; and WHEREAS, the EDA has followed applicable statutory provisions and the EDA finds that the purchase of the Property will fulfill the objectives, goals and mission of the EDA; and WHEREAS, the EDA has caused to be prepared an offer and purchase agreement (the “Agreement”) providing for the terms of the conveyance of the Property from Seller to the EDA, with such Agreement being as set forth in Exhibit A and incorporated into and made a part of this Resolution. NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF COMMISSIONERS OF THE MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY, AS FOLLOWS: 1. The recitals set forth in this Resolution are incorporated into and made a part of this Resolution. 2. The purchase of the Property by the EDA is hereby approved pursuant to the terms of the Agreement, which is also approved in substantially the form presented to the Commission on this date, subject to modifications that do not materially alter the EDA's rights and obligations under the Agreement and that are approved by the Authority's President and Executive Director, which approvals shall be conclusively evidenced by execution of the Agreement. 3. The President and Executive Director of the EDA are hereby authorized and directed to execute all appropriate documents, including but not limited to the Agreement, to effectuate the transaction contemplated by this Resolution. 4. The President and Executive Director of the EDA, staff and consultants are hereby authorized and directed to take any and all additional steps and actions necessary or convenient in order to accomplish the intent of this Resolution. Approved by the Board of Commissioners of the Mounds View Economic Development Authority this 13th day of May, 2013. ___________________________________ President ATTEST: __________________________________________ Executive Director