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HomeMy WebLinkAbout06-10-2013 CITY OF MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY MEETING AGENDA MOUNDS VIEW CITY HALL Monday, June 10, 2013 6:30 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 A. April 22, 2013, EDA Minutes B. May 13, 2013, EDA Minutes 6. CONSENT AGENDA 7. EDA BUSINESS A. Resolution 13-EDA-278 Authorizing and Approving the Authority's Purchase Offer for the Property Located at 2394 County Road 10, Mounds View, Ramsey County, Minnesota, and Approval of the Terms and Conditions and Purchase Agreement 8. REPORTS 9. NEXT EDA MEETING: Monday, June 24, 2013, at 630pm 10. ADJOURNMENT DRAFT 1 425582v2 SJR MU210-213 PURCHASE AGREEMENT 1. PARTIES. This Purchase Agreement (the “Agreement) is made this ____ day of June, 2013, by and between Krystal Maintenance, Inc., a Minnesota corporation (the “Seller”), and the Mounds View Economic Development Authority, a public body corporate and politic under the laws of the state of Minnesota (the “Buyer”). 2. SALE OF PROPERTY. Seller is the owner of that certain real estate located at 2394 County Road 10, Mounds View, Ramsey County, Minnesota (the “Property”) and is subject to an ALTA survey of the Property prepared by a registered land surveyor (the “Survey”) and paid for by the Buyer at its sole expense. See Exhibit A attached for legal description. 3. OFFER/ACCEPTANCE. In consideration of the mutual agreements herein contained, Buyer offers and agrees to purchase and Seller agrees to sell and hereby grants to Buyer the exclusive right to purchase the Property and all improvements thereon, together with all appurtenances, including, but not limited to, plant, shrubs, trees, and grass, excluding any furniture, fixtures and equipment owned by tenant on the Property. Seller shall have until June 11, 2013, at 4:30 p.m., to accept this Agreement. 4. PURCHASE PRICE AND TERMS: A. PURCHASE PRICE: The purchase price of the Property shall be $300,000.00. The purchase price shall be paid in cash on the date of the closing (approximately $300,000.00). B. TERMS: (1): EARNEST MONEY: No earnest money shall be paid by Buyer to the Seller, the agreement to which is hereby acknowledged. (2): BALANCE DUE SELLER: Buyer agrees to pay by check on the Closing Date any remaining Balance Due according to the terms of this Purchase Agreement. (3): DEED/MARKETABLE TITLE: Subject to performance by Buyer, Seller agrees to execute and deliver a Warranty Deed conveying marketable title to the Property to Buyer, subject only to the following exceptions: DRAFT 2 425582v2 SJR MU210-213 a. Building and zoning laws, ordinances, state and federal regulations. b. Reservation of minerals or mineral rights to the State of Minnesota, if any. c. Public utility, drainage and road easements of record which will not interfere with Buyer’s intended use of the Property. d. Lien of current taxes not yet due and payable. 5. DOCUMENTS TO BE DELIVERED AT CLOSING BY SELLER. In addition to the Warranty Deed required at paragraph 4B(4) above, Seller shall deliver to the Buyer: A. Standard form Affidavit of Seller. B. Updated abstract of title, if available or current title commitment submitted to Buyer for review 15 days prior to closing. C. A “bring-down” certificate, certifying that all of the warranties made by Seller in this Purchase Agreement remain true as of the date of closing. D. Certificate that Seller is not a foreign person or entity. E. Bill of Sale conveying title of the personal property, if any, to Buyer. F. Buyer may undertake a Phase I and Phase II environmental analysis. If an environmental investigation discloses the existence of petroleum product or other pollutant, contaminant or other hazardous substance on the property, Seller shall provide either (i) a closure letter from the Minnesota Pollution Control Agency (MPCA) or other appropriate regulatory authority that remediation has been completed to the satisfaction of the MPCA or other authority; or (ii) agreement for remediation/indemnification and security as the Buyer may require. G. Well disclosure certificate, if required, or, if there is no well on the Property, the Warranty Deed given pursuant to subparagraph (4) above must include the following statement: "The Seller certifies that the seller does not know of any wells on the described real property." DRAFT 3 425582v2 SJR MU210-213 H. Individual sewage treatment system disclosure statements prepared on forms provided for that purpose as required by applicable statutes. I. Methamphetamine Disclosure form required by applicable statutes. J. A comprehensive endorsement to the title insurance policy will be included and paid for by Seller. K. Executed termination agreements terminating all leases affecting the Property. L. Such other documents as may be reasonably required by Buyer’s title examiner or title insurance company. M. Certificate of Good Standing as to corporate status of the Seller (presently the Seller’s corporate status is inactive and not in good standing). 6. CONTINGENCIES. A. Buyer’s obligation to buy is contingent upon the following: (1): Buyer’s determination of marketable title pursuant to paragraph 12 of this Agreement; and (2): Buyer’s determination, in its sole discretion, that the results of the environmental investigation under paragraph 9 of this Agreement are satisfactory to Buyer. (3):. Buyer’s approval of an appraisal of the Property, at Buyer’s expense. (4): Seller to supply buyer with a copy of all written leases and a list of any outstanding verbal agreements regarding leasehold agreements and evidence that such leases or agreements have been terminated. (5): Approval of this Agreement by the Buyer’s governing body. Upon receipt of an acceptable appraisal and upon the approval of Buyer's governing body, the Buyer shall provide written notice to Seller that the contingencies set forth at 6.A.3 and 6.A.5 above are satisfied. Until Seller receives such notice, Seller will not begin performance of Seller's performance obligations required by this Agreement. Buyer shall have until the Date of Closing to remove the remaining contingencies set forth above in this paragraph 6. The contingencies are solely for the benefit of Buyer and may be waived by Buyer. If the contingencies are duly satisfied or waived, then the Buyer and Seller shall proceed to close the transaction as contemplated herein. If, however, one or more contingencies is not satisfied, or is DRAFT 4 425582v2 SJR MU210-213 not satisfied on time, and is not waived, this Purchase Agreement shall thereupon be void, at the option of Buyer. If this Agreement is voided by Buyer, Buyer and Seller shall execute and deliver to each other the termination of this purchase agreement. As a contingent purchase agreement, the termination of this agreement is not required pursuant to Minnesota Statutes, Section 559.21, et seq. B. Seller’s obligation to sell is contingent upon the following: (1): None. 7. OPERATION OF PROPERTY PRIOR TO CLOSING. Until the Closing Date, Seller shall have the full responsibility for the continued maintenance of the Property. Prior to the Closing Date: A. Seller shall not cause any new liens, leases, contracts or encumbrances to be created by Seller against the Property; B. Seller shall continue to comply with all of its duties and obligations as set forth in any leases or contracts in effect at the Property; C. Seller shall maintain the Property. 8. CLOSING DATE. The closing of the sale of the Property shall take place on or before June 30, 2013. The closing shall take place at Buyer’s location or as mutually agreed upon by the parties. 9. ENVIRONMENTAL INSPECTION AND REPRESENTATIONS. A. Buyer and its agents shall have the right to enter upon the Property after the date of this purchase agreement for the purpose of inspecting the Property and conducting such environmental examination and tests as Buyer deems necessary. Buyer agrees to indemnify the Seller against any liens, claims, losses, or damage occasioned by Buyer’s exercise of its right to enter and work upon the Property. Buyer agrees to provide Seller with a copy of any report prepared as a result of such examination and tests. B. Seller hereby warrants to Buyer that during the time the Seller has owned the Property there have been no acts or occurrences upon the Property that have caused or could cause contamination or hazardous substances in the subsoil or ground water of the Property or other adjacent properties. This warranty shall survive the closing of this transaction. C. Seller agrees to indemnify and holds harmless Buyer from any and all claims, DRAFT 5 425582v2 SJR MU210-213 causes of action, damages, losses, or costs (including reasonable attorney's fees) relating to contamination or hazardous substances in the subsoil or groundwater of the Property or other adjacent properties which arise from or are caused by acts or occurrences upon the Property prior to Buyer taking possession of the same. 10. REAL ESTATE TAXES. A. Seller will pay at or prior to closing all real estate taxes due and payable in 2012 and prior years on the Property. B. Buyer and Seller shall prorate to date of closing the real estate taxes due and payable in the year of closing on the Property. C. If this conveyance constitutes a split in a legal description or tax parcel, Buyer’s pro-rate share of taxes due in the year of closing shall be based on the date of closing and on the percentage of the tax parcel acquired by Buyer. 11. SPECIAL ASSESSMENTS. A. Seller shall pay at or prior to closing the balance of all special assessments levied prior to closing, including assessments certified for payment with real estate taxes payable in 2013. B. Seller shall provide at closing for the payment of all special assessments pending as of the date of this Agreement by escrowing an amount equal to one and one- half times the estimated amount of said special assessments. C. Seller shall pay any deferred real estate taxes or special assessments, payment of which is required as a result of the closing of this sale. D. As of the date of this Agreement, Seller has not received a notice of hearing for a new public improvement project from any governmental assessing authority, the costs of which project may be assessed against the Property. If a notice of pending special assessment is issued after the date of this Purchase Agreement and on or before the date of closing, Buyer shall assume payment of all of any such special assessments, and Seller shall provide for payment on date of closing of none of any such special assessments. E. Notwithstanding any other provision of this Agreement, Seller shall at all times be responsible to pay special assessments, if any, for delinquent sewer or water bills, removal of diseased trees prior to the date of this Agreement, snow removal, or other current services provided to the Property by the assessing authority while the Seller is in possession of the Property. DRAFT 6 425582v2 SJR MU210-213 12. MARKETABILITY OF TITLE; EXAMINATION OF TITLE. Upon execution of this Agreement, the Seller shall deliver to the Buyer the abstract for the Property, if available. The Buyer shall obtain a commitment for title insurance (“Commitment”) for the Subject Property. The Buyer shall have 15 days from the date of its receipt of the Commitment to review the state of title to the Property and to provide the Seller with a list of written objections to such title. Upon receipt of the Buyer’s list of written objections, the Seller shall proceed in good faith and with all due diligence to attempt to cure the objections made by the Buyer. In the event that the Seller has failed to cure objections within 30 days after its receipt of the Buyer’s list of such objections, the Buyer may (i) by the giving of written notice to the Seller terminate this Agreement and this Agreement shall be null and void and neither party shall have any liability hereunder, or (ii) waive such objection and proceed pursuant to this Agreement. The Buyer shall have the right, but not the obligation, to purchase title insurance at the Buyer’s sole cost. The Seller will take no actions nor permit any liens to encumber title to the Property between the date of this Agreement and the date on which the Property is delivered to the Buyer. 13. CLOSING COSTS AND RELATED ITEMS. Buyer will pay: (a) the closing fees charged by the title insurance or other closing agent, if any, utilized to close the transaction contemplated by this Agreement; (b) the premium for title insurance policy, if any, obtained by the Buyer, with the exception of a comprehensive endorsement which shall be paid by the Seller; and (c) recording fees required to enable the Buyer to record its deed from Seller under this Agreement. Seller will pay: (a) any transfer taxes required to record the deed from Seller under this Agreement; (b) all liens, encumbrances or mortgages, if any, and (c) any other recording fees that may be required to give Buyer good marketable title to the Property. 14. POSSESSION A. Possession. Seller shall transfer possession of the Property to the Buyer no later than date of closing. B. Removal of Property. Seller agrees to remove from the Property all debris and items of Seller's personal property not included in this sale no later than date of closing. Items not removed by that date will be disposed of by the Buyer, and the cost of disposal will be Seller’s expense. C. Utilities. Seller agrees to pay all charges for sewer, water, electric, gas, and cable television or any other applicable utilities until date of closing, if any. D. No encumbrances. Seller agrees not to place any liens or encumbrances on the Property after the date of this Purchase Agreement. 15. REMOVAL OF HAZARDOUS MATERIAL. Seller, prior to vacation of the Property, shall remove all substances which, under state or federal law, must be disposed of at an approved DRAFT 7 425582v2 SJR MU210-213 disposal facility. This includes, but is not limited to, used oil, paints, solvents, fertilizers, poisons, and the like. 16. DISCLOSURE; INDIVIDUAL SEWAGE TREATMENT SYSTEM. Seller discloses that there is not an individual sewage treatment system on or serving the Property. If there is an individual sewage treatment system on or serving the Property, Seller discloses that the system (is) (is not) in use, and Seller further discloses that the type of system is a _______________ system and the location is shown on the map attached as Exhibit B to this Purchase Agreement. 17. CONDITION OF SUBSOIL AND GROUND WATER. Seller hereby warrants to Buyer that during the time the Seller has owned the Property there have been no acts or occurrences upon the Property that have caused or could cause contamination or hazardous substances in the subsoil or ground water of the Property or other adjacent properties. This warranty shall survive the closing of this transaction. In the event Buyer’s testing discloses contamination or hazardous conditions in the subsoil or groundwater of the Property, Buyer shall be privileged to rescind this transaction and cancel the Purchase Agreement upon written notice to Seller. 18. WELL DISCLOSURE. Seller discloses that there is not a well on or serving the Property. If a well is present, a well disclosure statement accompanies this agreement. 19. SELLER’S WARRANTIES. Seller warrants that buildings, if any, are entirely within the boundary lines of the Property. Seller warrants that there is a right of access to the real Property from a public right-of-way. Seller warrants that there has been no labor or material furnished to the Property for which payment has not been made. Seller warrants that there are no present violations of any restrictions relating to the use or improvement of the Property. These warranties shall survive the closing of this transaction. 20. NO MERGER OF REPRESENTATIONS, WARRANTIES. The representations and warranties contained in this Agreement shall not be merged into any instruments or conveyance delivered at Closing, but instead shall survive closing, and the parties shall be bound accordingly. 21. RELOCATION BENEFITS. The Buyer has notified the Seller that (a) the Buyer only seeks to acquire the Property by voluntarily conveyance; (b) the parties mutually initiated negotiations; and (c) if negotiations fail, the Buyer will not acquire or undertake acquisition of the Property by eminent domain. 22. NO BROKER. Buyer represents that it has not engaged any real estate broker in connection with the sale of the Property. Seller has not engaged the services of a broker, or if Seller has engaged the services of a broker, Seller will be solely responsible for the costs of such broker and shall defend, indemnify and hold Buyer harmless from any claims of such broker. DRAFT 8 425582v2 SJR MU210-213 23. ENTIRE AGREEMENT; AMENDMENTS. This Agreement constitutes the entire agreement between the parties and no other agreement prior to this Purchase Agreement or contemporaneous herewith shall be effective except as expressly set forth or incorporated herein. Any purported amendment shall not be effective unless it shall be set forth in writing and executed by both parties or their respective successors or assigns. 24. BINDING EFFECT; ASSIGNMENT. This Agreement shall be binding upon and inure to the benefit of the parties and their respective heirs, executors, administrators, successors and assigns. Buyer shall not assign its rights and interest hereunder without notice to Seller. 25. NOTICE. Any notice, demand, request or other communication which may or shall be given or served by the parties shall be deemed to have been given or served on the date the same is deposited in the United States Mail, registered or certified, postage prepaid and addressed as follows: SELLER: Krystal Maintenance, Inc. ATTN: _________________ 2394 County Road 10 Mounds View, MN 55112 ATTORNEY FOR Newquist & Herrick Law Offices, P.C. SELLER: Attn: Gregg V. Herrick Fridley Plaza Office Building, Suite 301 6401 University Avenue NE Fridley, MN 55432 BUYER: Mounds View Economic Development Authority Attn: James Ericson 2401 Highway 10 Mounds View, MN 55112 ATTORNEY FOR Kennedy & Graven, Chartered BUYER: Attn: Scott J. Riggs 470 U.S. Bank Plaza 200 South Sixth Street Minneapolis, MN 55402 26. SPECIFIC PERFORMANCE. This Agreement may be specifically enforced by the parties, provided that any action for specific enforcement is brought within six months after the date of the alleged breach. This paragraph is not intended to create an exclusive remedy for breach of this agreement; the parties reserve all other remedies available at law or in equity. DRAFT 9 425582v2 SJR MU210-213 27. INDEMNIFICATION. The Seller hereby agrees to protect, defend and hold the Buyer and its officers, elected and appointed officials, employees, administrators, commissioners, agents, and representatives harmless from and indemnified against any and all loss, cost, fines, charges, damage and expenses, including, without limitation, reasonable attorneys’ fees, consultants’ and expert witness fees, and travel associated therewith, due to claims or demands of any kind whatsoever (including those based on strict liability) arising out of (i) the marketing, sale or leasing of all or any part of the Property, including, without limitation, any claims for any lien imposed by law for services, labor or materials furnished to or for the benefit of the Property, or (ii) any claim by the State of Minnesota or the Minnesota Pollution Control Agency or any other person pertaining to the violation of any permits, orders, decrees or demands made by said persons or with regard to the presence of any pollutant, contaminant or hazardous waste on the Property; and (iii) or by reason of the execution of this Agreement or the performance of this Agreement. The Seller, and the Seller’s successors or assigns, agree to protect, defend and save the Buyer, and its officers, agents, and employees, harmless from all such claims, demands, damages, and causes of action and the costs, disbursements, and expenses of defending the same, including but not limited to, attorneys fees, consulting engineering services, and other technical, administrative or professional assistance. This indemnity shall be continuing and shall survive the delivery of the Warranty Deed for the Property, and shall survive termination or cancellation of this Agreement. Nothing in this Agreement shall be construed as a waiver or modification of immunity or limitation on liability to which the Buyer is entitled pursuant to Minn. Stat. § 466, or otherwise. 28. RELEASE OF CLAIMS. The Seller and the Seller’s attorneys, agents, employees, former employees, insurers, heirs, administrators, representatives, successors and assigns, hereby releases and forever discharges the Buyer, and its attorneys, agents, representatives, employees, former employees, insurers, heirs, executors and assigns of and from any and all past, present or future claims, demands, obligations, actions or causes of action, at law or in equity, whether arising by statute, common law or otherwise, and for all claims for damages, of whatever kind or nature, and for all claims for attorneys' fees, and costs and expenses, including but not limited to all claims of any kind arising out of the negotiation, Buyer consideration, execution and performance of this Agreement between the parties. Nothing contained in this paragraph 28 is intended to prevent the exercise of any rights available pursuant to paragraph 26 of this Agreement. [The rest of this page left intentionally blank.] DRAFT 10 425582v2 SJR MU210-213 IN WITNESS WHEREOF, the parties have executed this agreement as of the date written above. SELLER Krystal Maintenance, Inc. By: ___________________________________ Its: ___________________________________ BUYER Mounds View Economic Development Authority By: Its: Executive Director By: Its: President A-1 425582v2 SJR MU210-213 EXHIBIT A LEGAL DESCRIPTION [legal description to be inserted] B-1 425582v2 SJR MU210-213 EXHIBIT B MAP LOCATING SEWAGE SYSTEM [If Needed] PROCEEDINGS OF THE MOUNDS VIEW EDA 1 CITY OF MOUNDS VIEW 2 RAMSEY COUNTY, MINNESOTA 3 4 Regular Meeting 5 April 22, 2013 6 Mounds View City Hall 7 2401 Highway 10, Mounds View, MN 55112 8 6:00 P.M. 9 10 11 1. CALL MEETING TO ORDER 12 13 2. ROLL CALL: President Flaherty, Vice President Gunn, Commissioner Hull, 14 Commissioner Meehlhause, Commissioner Mueller, and Executive Director Ericson. 15 16 NOT PRESENT: None. 17 18 3. APPROVAL OF AGENDA 19 20 MOTION/SECOND: Mueller/Meehlhause. To Approve the April 22, 2013, Agenda as 21 presented. 22 23 Ayes – 5 Nays – 0 Motion carried. 24 25 4. PUBLIC INPUT 26 27 None. 28 29 5. APPROVAL OF MINUTES 30 31 A. January 14, 2013, EDA Minutes. 32 33 MOTION/SECOND: Gunn/Mueller. To Approve the January 14, 2013, Minutes as presented. 34 35 Ayes – 5 Nays – 0 Motion carried. 36 37 6. CONSENT AGENDA 38 39 None. 40 41 7. EDA BUSINESS 42 43 A. Discuss Economic Development Advertising. 44 45 Economic Development Specialist Steinmetz stated this item was placed on the agenda to allow 46 Mounds View EDA April 22, 2013 Regular Meeting Page 2 the EDA to discuss advertising the City to a target audience of businesses and potential 1 developers. She commented the EDC discussed this item last Friday but does not have a 2 recommendation at this time. The EDC would like to further review the item at their May 3 meeting prior to making a recommendation to Council. 4 5 Commissioner Mueller thanked staff for working through this issue with the EDC and she looked 6 forward to hearing their recommendation in May. 7 8 Commissioner Meehlhause noted he attended the EDC meeting last Friday and one item 9 discussed was better utilizing the billboards in the community to create interest for potential 10 developers. 11 12 Mayor Flaherty explained he looked forward to discussing this item in detail next month. 13 14 B. Review Home Improvement Loan Program 15 16 Economic Development Specialist Steinmetz stated the EDA’s home improvement loan program 17 was created in late 2010. The four different loan types were discussed in detail. She explained a 18 total of three loans have been closed since the program began. It was noted the lack of interest in 19 this program could be due to the downturn in the economy or rise in unemployment. 20 21 Economic Development Specialist Steinmetz commented the EDC discussed this program and 22 recommended the EDA reduce the amount allotted for the loan program to $100,000. This 23 would allow for the remaining $50,000 to be used for revitalization of County Road 10. The 24 EDC also recommended the EDA increase the home demolition loan amount to $15,000, which 25 would closer reflect the actual expense to demo a home. 26 27 Commissioner Mueller questioned how the EDC suggested the $50,000 should be used for 28 revitalization. Economic Development Specialist Steinmetz stated no priorities were specified at 29 their last meeting. She commented the EDC understood that the corridor was a priority and 30 having these funds available would better align with the EDA’s 2013 goals. She indicated 31 $100,000 would be enough to meet the current needs of the home improvement loan program. 32 33 President Flaherty thought this adjustment made sense and the shift in funds would assist the 34 EDA in meeting their goals for the corridor. He supported the increase to the home demolition 35 loan amount to $15,000. He explained the economy was coming around and the loan program 36 may see more use in the coming years. 37 38 President Flaherty requested staff review the loan documents further to see if performance 39 measures were in place for demolition loans. 40 41 Vice President Gunn reviewed the loan process forms noting all contractors had to be licensed 42 and all work must be completed within 120 days of the loan closing. It was her understanding 43 that these stipulations ensured that demolition work would be completed. 44 Mounds View EDA April 22, 2013 Regular Meeting Page 3 1 Commissioner Mueller was in favor of increasing the home improvement loans due to the fact 2 bathroom and kitchen remodeling projects were extremely expensive. She suggested these loans 3 be increased to $25,000. 4 5 President Flaherty requested feedback be gained from the Housing Resource Center prior to the 6 City making this adjustment. Economic Development Specialist Steinmetz commented she 7 could speak to the Housing Resource Center and report back to the EDA. 8 9 The EDA was in favor of decreasing the loan program to $100,000, with the remaining $50,000 10 being used for Highway 10 revitalization. In addition, the demolition loan program could be 11 increased to $15,000. The EDA requested further information from staff on potentially 12 increasing the home improvement loan amount to $25,000. 13 14 Economic Development Specialist Steinmetz explained she would report back to the EDA in 15 May with an amended Resolution for the Home Improvement Loan Program. 16 17 C. Review Business Improvement Partnership Loan Program. 18 19 Economic Development Specialist Steinmetz explained the Business Improvement Partnership 20 Loan Program was funded 50% by the EDA and 50% by a local bank. She reviewed the 21 eligibility criteria within the program stating the main issue the EDC has with the program was 22 requiring that businesses be located in the City of Mounds View for at least two years. She 23 commented that this requirement was limiting businesses that could apply for the loan program. 24 It was recommended the criteria be altered to ensure the businesses are well established while 25 also allowing for businesses to move into Mounds View and apply for a low interest loan to 26 assist in growing their business. 27 28 Commissioner Mueller requested the loan program state that the loans were being offered only to 29 Mounds View businesses. President Flaherty agreed. 30 31 Commissioner Hull questioned who administered the loans. Economic Development Specialist 32 Steinmetz indicated Western Bank handled the underwriting and loan administration process. 33 34 Economic Development Specialist Steinmetz explained she would report back to the EDA in 35 May with an amended Resolution for the Business Improvement Partnership Loan Program. 36 37 8. REPORTS 38 39 Economic Development Specialist Steinmetz stated the Mounds View Business Council would 40 meet again on Wednesday, May 10th at the Community Center at 7:30 a.m. All were invited to 41 attend. 42 43 9. NEXT EDA MEETING: Monday, May 13, 2013, at 6:30 p.m. 44 Mounds View EDA April 22, 2013 Regular Meeting Page 4 1 10. ADJOURNMENT 2 3 President Flaherty adjourned the meeting at 6:36 p.m. 4 5 Respectfully submitted, 6 7 8 Recorded and transcribed by: 9 Heidi Guenther 10 TimeSaver Off Site Secretarial, Inc. 11 PROCEEDINGS OF THE MOUNDS VIEW EDA 1 CITY OF MOUNDS VIEW 2 RAMSEY COUNTY, MINNESOTA 3 4 Regular Meeting 5 May 13, 2013 6 Mounds View City Hall 7 2401 Highway 10, Mounds View, MN 55112 8 6:01 P.M. 9 10 11 1. CALL MEETING TO ORDER 12 13 2. ROLL CALL: President Flaherty, Vice President Gunn, Commissioner Hull, 14 Commissioner Meehlhause, Commissioner Mueller, and Executive Director Ericson. 15 16 NOT PRESENT: None. 17 18 3. APPROVAL OF AGENDA 19 20 MOTION/SECOND: Mueller/Meehlhause. To Approve the May 13, 2013, Agenda as 21 presented. 22 23 Ayes – 5 Nays – 0 Motion carried. 24 25 4. PUBLIC INPUT 26 27 None. 28 29 5. APPROVAL OF MINUTES 30 31 None. 32 33 6. CONSENT AGENDA 34 35 None. 36 37 7. EDA BUSINESS 38 39 A. Resolution 13-EDA-275 Amending Mounds View Home Improvement Loan 40 Program. 41 42 Economic Development Specialist Steinmetz stated on April 22nd the EDA discussed this item 43 and two possible changes to the Home Improvement Loan Program. She requested the EDA 44 approve the loan program with the proposed amendments. 45 Mounds View EDA May 13, 2013 Regular Meeting Page 2 1 Commissioner Mueller requested clarification from Staff on why the budget for the home loan 2 program was reduced and how those additional funds would be used. Economic Development 3 Specialist Steinmetz explained the Home Improvement Loan Program was being reduced from 4 $150,000 to $100,000 and the additional $50,000 would be set aside for County Road 10 corridor 5 improvements. The change was made to assist in reaching the Council’s 2013 goals to revitalize 6 the corridor. 7 8 MOTION/SECOND: Gunn/Hull. To Waive the Reading and Adopt Resolution 13-EDA-275 9 Amending Mounds View Home Improvement Loan Program. 10 11 Ayes – 5 Nays – 0 Motion carried. 12 13 B. Resolution 13-EDA-276 Amending Mounds View Business Improvement 14 Partnership Loan Program. 15 16 Economic Development Specialist Steinmetz stated the Mounds View Business Improvement 17 Partnership Loan program was discussed by the EDA on April 22nd. Two revisions were 18 proposed regarding the amount of time a business had to be located in the City of Mounds View 19 and to not require the business applicants to provide duplicate financials to the City, when these 20 were already necessary for the bank. She recommended the EDA approve the amendments to the 21 Business Improvement Partnership Loan Program. 22 23 President Flaherty approved of the potential changes as it could assist new businesses in the City. 24 25 MOTION/SECOND: Mueller/Meehlhause. To Waive the Reading and Adopt Resolution 13-26 EDA-276 Amending Mounds View Business Improvement Partnership Loan Program. 27 28 Ayes – 5 Nays – 0 Motion carried. 29 30 C. Resolution 13-EDA-277 Authorizing and Approving the Authority’s 31 Purchase Offer for the Property Located at 2400 County Road H2, Mounds 32 View, Ramsey County, Minnesota, and Approval of the Terms and 33 Conditions and Purchase Agreement. 34 35 Executive Director Ericson indicated the City was made aware of the availability of the parcel at 36 2400 County Road H2 and met in Closed Session to discuss the purchase of this property. A 37 letter of intent was finalized with the seller and was reviewed by the Authority. He noted the 38 purchase price for this property would be $729,000 and was consistent with the priorities for the 39 County Road 10 corridor. He indicated the property was just over two acres in size and would 40 provide a meaningful site for redevelopment along the corridor. Staff recommended the Council 41 authorize and approve the purchase offer for the property at 2400 County Road H2. He 42 Mounds View EDA May 13, 2013 Regular Meeting Page 3 commented the purchase would be funded through unobligated tax increment finance dollars. 1 2 Commissioner Hull asked how the purchase would be funded. Executive Director Ericson 3 explained the City had three TIF districts that would be expiring shortly and increment dollars 4 from these districts would be used for the purchase. 5 6 Commissioner Mueller questioned if the environmental inspections would be completed. 7 Executive Director Ericson stated this would be investigated further by Staff and an 8 environmental study may not be necessary as the City was aware of the history of the site. He 9 indicated if a study was necessary it would be completed prior to June 30th. 10 11 Commissioner Meehlhause inquired if an appraisal would be completed. Executive Director 12 Ericson stated it was Staff’s recommendation to not conduct an appraisal as the City had a good 13 idea of the property’s valuation. 14 15 Commissioner Meehlhause clarified that the City’s broker fees would be paid by the Seller. 16 Executive Director Ericson commented this was the case. 17 18 Commissioner Hull questioned the taxable value of the three city-owned parcels near the 19 intersection of H2. Executive Director Ericson indicated the tax value of the three parcels was 20 $1.37 million. He stated if and when the parcels were to redevelop, this value would increase. 21 22 President Flaherty indicated the purchase of this property fit into the City’s vision for the 23 revitalization of the County Road 10 corridor. He questioned if the property taxes through June 24 of 2013 would be paid in full prior to closing. City Attorney Riggs noted this would be reviewed 25 prior to closing through the title work. 26 27 President Flaherty stated this was a wise purchase that fit the City’s vision for the corridor. 28 29 MOTION/SECOND: Gunn/Mueller. To Waive the Reading and Adopt Resolution 13-EDA-277 30 Authorizing and Approving the Authority’s Purchase Offer for the Property Located at 2400 31 County Road H2, Mounds View, Ramsey County, Minnesota, and Approval of the Terms and 32 Conditions and Purchase Agreement, adding a fifth condition stating the purchase would be 33 funding by unobligated tax increment finance dollars. 34 35 Commissioner Meehlhause supported the purchase as it coordinated well with the EDA’s vision 36 for the Highway 10 corridor, along with the Council’s 2013 priorities. He noted this purchase 37 would have no financial impact on the Mounds View residents. 38 39 Commissioner Hull indicated he too supported the purchase as it would lead to healthy 40 redevelopment along the corridor. 41 42 Mounds View EDA May 13, 2013 Regular Meeting Page 4 Ayes – 5 Nays – 0 Motion carried. 1 2 8. REPORTS 3 4 Executive Director Ericson stated the EDC would be meeting on Friday morning. 5 6 9. NEXT EDA MEETING: Monday, Tuesday, May 28, 2013, at 6:30 p.m. 7 8 10. ADJOURNMENT 9 10 President Flaherty adjourned the meeting at 6:31 p.m. 11 12 Respectfully submitted, 13 14 15 Recorded and transcribed by: 16 Heidi Guenther 17 TimeSaver Off Site Secretarial, Inc. 18 Item No: 7A Meeting Date: June 10, 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-278, Authorizing and Approving the Authority's Purchase Offer for the Property Located at 2394 County Road 10, Mounds View, Ramsey County, Minnesota, and Approval of the Terms and Conditions and Purchase Agreement Background The City Council’s 2013 Priority Statement includes an action step to “Consider targeted property acquisitions on a case-by-case basis to eliminate blight and to encourage redevelopment and land assembly”. An opportunity is available to the EDA to purchase a commercial property in the City that would encourage land assembly and redevelopment in a key redevelopment area of the City. The available property is the former Taiko Japanese restaurant building, located at 2394 County Road 10. The property is currently in foreclosure and will revert back to US Bank when the redemption period expires on July 5, 2013, unless a buyer purchases the property from the current owner prior to July 5th. The EDA owns a parcel adjacent to this property, which was the former Premium Stop gas station. The EDA will soon own another parcel adjacent to this property, which was the former Robert’s Sports Bar. Discussion Combining the former Premium Stop parcel, the former Robert ’s parcel and the former Taiko parcel would create a 3.81-acre redevelopment opportunity for the EDA. Below is a location map of the three parcels. Former Premium Stop 2390 County Rd 10 1.28 acres Former Taiko 2394 County Rd 10 .48 acre Former Robert’s 2400 County Rd H2 2.05 acre County Rd 10 County Rd H2 June 10, 2013 - EDA Meeting Item 7A - Res. 13-EDA-278 Page 2 of 2 The EDC discussed the former Taiko parcel at their meetings in February and April 2013. On April 19th, the EDC recommended that the EDA consider purchasing 2394 County Road 10 at an appropriate price. Discussion Per City staff’s direction, the City attorney drafted the attached Purchase Agreement between the EDA and the seller of 2394 County Road 10, which is Krystal Maintenance, Inc. The seller and his legal representative are currently reviewing the Purchase Agreement. The purchase price includes the loan amount owed to US Bank, property taxes and additional fees associated with the foreclosure process. A condition of the sale would be a “lease-back” provision allowing for the current owner to lease the building from the EDA until redevelopment of the property occurs. Recommendation Resolution 13-EDA-278 is attached for the Authority’s consideration which authorizes and approves the Authority's purchase offer for the property located at 2 394 County Road 10, Mounds View, Ramsey County, Minnesota, and approval of the terms and conditions and Purchase Agreement. Respectfully submitted, ___________________________ Heidi Steinmetz, Economic Development Specialist Attachment: Resolution 13-EDA-278 1 425581v2 SJR MU210-213 MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY CITY OF MOUNDS VIEW COUNTY OF RAMSEY STATE OF MINNESOTA RESOLUTION 13-EDA-278 MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION AUTHORIZING PURCHASE OF PROPERTY WHEREAS, Krystal Maintenance, Inc., a Minnesota corporation (“Seller”) is an owner of real estate located at 2394 County Road 10, Mounds View, Ramsey County, Minnesota, and which Parcel I.D. No. 08.30.23.31.0071 and 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. 2 425581v2 SJR MU210-213 Approved by the Board of Commissioners of the Mounds View Economic Development Authority this 10th day of June 2013. ___________________________________ President ATTEST: __________________________________________ Executive Director A-1 425581v2 SJR MU210-213 EXHIBIT A PURCHASE AGREEMENT [INSERT PURCHASE AGREEMENT]