HomeMy WebLinkAbout05-11-2009CITY OF MOUNDS VIEW
ECONOMIC DEVELOPMENT AUTHORITY MEETING AGENDA
MOUNDS VIEW CITY HALL
Monday, May 11, 2009
6:00 PM
1. CALL TO ORDER
2. ROLL CALL: President Flaherty, Vice President Stigney, Commissioner Hull,
Commissioner Mueller, Commissioner Gunn
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 13, 2009, EDA Minutes.
6. CONSENT AGENDA
7. EDA BUSINESS
A. Review City Tagline Options
8. REPORTS
A. Update - City Communications/Marketing Plan
B. Business Improvement Partnership Loan Program Inquiry
C. Update - Property Owner (2949 Hwy 10) Acquisition Request
D. Update - Select Senior Living Project
9. NEXT EDA MEETING: Tuesday, May 26, 2009 at 6:30 p.m.
10. ADJOURNMENT
Corrections made by Mayor Flaherty, Councilmembers Hull, Mueller, and Gunn. Clerk-Administrator Ericson, Asst
Clerk-Administrator Crane, Community Development Director Roberts, and Economic Deve. Spec. Steinmetz.
PROCEEDINGS OF THE MOUNDS VIEW EDA 1
CITY OF MOUNDS VIEW 2
RAMSEY COUNTY, MINNESOTA 3
4
Regular Meeting 5
April 13, 2009 6
Mounds View City Hall 7
2401 Highway 10, Mounds View, MN 55112 8
6:03 P.M. 9
10
11
1. CALL MEETING TO ORDER 12
13
2. ROLL CALL: President Flaherty, Vice President Stigney, Commissioner Hull, 14
Commissioner Mueller, Commissioner Gunn, and Executive Director Ericson. 15
16
NOT PRESENT: None. 17
18
3. APPROVAL OF AGENDA 19
20
MOTION/SECOND: Mueller/Hull. To Approve the April 13, 2009, Agenda as presented. 21
22
Ayes – 5 Nays – 0 Motion carried. 23
24
4. PUBLIC INPUT 25
26
None. 27
28
5. APPROVAL OF MINUTES 29
A. EDA Minutes, Monday, February 23, 2009. 30
31
The following correction was requested: Page 2, Reports, Line 52, “Economic Development 32
Specialist Steinmetz stated the EDC appreciates that the Council will consider these priorities.” 33
34
MOTION/SECOND: Mueller/Gunn. To Approve the Monday, February 23, 2009, Minutes as 35
corrected. 36
37
Ayes – 5 Nays – 0 Motion carried. 38
39
6. CONSENT AGENDA 40
41
None. 42
43
Mounds View EDA April 13, 2009
Regular Meeting Page 2
7. EDA BUSINESS 44
A. Resolution 09-EDA-252, Approving First Amendment to Development 45
Assistance Agreement between Mounds View Economic Development 46
Authority and MoundsVista, Inc. 47
48
Economic Development Specialist Steinmetz presented the past consideration of the 49
MoundsVista, Inc. (dba The Mermaid) TIF revenue bond agreement for assistance of $631,897 50
and request to modify the Development Assistance Agreement to allow for the sale of the hotel 51
and continuation of semi-annual payments to the bondholders. In response to the suggestion that 52
MoundsVista pay off one-third of the outstanding balance of the bonds, they indicated they are 53
not in a financial position to do so. Economic Development Specialist Steinmetz presented 54
staff’s recommendation to approve the first amendment to the Development Assistance 55
Agreement, allow for the sale of the hotel, and continuation of semi-annual payments to the 56
bondholders. If approved, the Council will consider the final plat to divide the property into one 57
lot for the hotel and a second lot for the restaurant and banquet center. 58
59
President Flaherty opened the floor for public comment. None was offered and it was noted the 60
applicant was not in attendance. 61
62
Commissioner Mueller noted if they wish to sell, the contract requires payment of the bond note. 63
Economic Development Specialist Steinmetz explained the MoundsVista attorney alluded to that 64
requirement; however, the contract does not contain such a requirement. In early negotiations 65
between staff and MoundsVista, several options were discussed but MoundsVista has clearly 66
indicated they need to sell the hotel and transfer those funds to their other property. In addition, 67
when the final plat is recorded, Ramsey County will require payment of taxes. 68
69
Vice President Stigney referenced a letter from the MoundsVista attorney indicating their 70
intention to sell only the hotel and that the Agreement requires payment in full of the note if any 71
portion of their property is sold. Executive Director Ericson clarified that the letter from the 72
MoundsVista attorney is incorrect because there is no such requirement in the Development 73
Assistance Agreement. Executive Director Ericson stated the EDA is under no requirement to 74
amend the Agreement but if an amendment is considered, the EDA can place a condition for 75
partial or full payment of the bond note. 76
77
Vice President Stigney stated his understanding the Agreement may not “require” payment but 78
the EDA can place that condition. He indicated he had asked staff to negotiate at least partial 79
payment in consideration for an amendment so the TIF District is reduced in some manner. 80
81
Commissioner Gunn stated even if they don’t pay down the note, payments will continue and all 82
that would be accomplished by payment of one-third of the note is to move up the District’s close 83
date. She noted that a lot is owed in back taxes, which may be equivalent to the one-third 84
amount. Economic Development Specialist Steinmetz stated she is not aware of the amount of 85
Mounds View EDA April 13, 2009
Regular Meeting Page 3
back taxes owed. Commissioner Gunn stated a willingness to approve the amendment since the 86
TIF District will continue, she would like the business to stay in Mounds View, and if approved 87
they would be able to pay their current and back taxes. 88
89
Commissioner Hull stated support to consider the amendment with no contingencies since it 90
would result in the hotel being sold, The Mermaid would be in a better financial position, 91
expansion of the hotel would occur to increase the value and tax base, and additional jobs may be 92
created. Currently, it would be a burden on The Mermaid if required to pay one-third of the bond 93
note. 94
95
Vice President Stigney stated that expanding the tax base will not matter until the TIF District is 96
paid off. He stated support to shorten the life of the TIF District and pointed out that no 97
information has been provided regarding The Mermaid’s financial position so he is not able to 98
consider that matter. He stated he is not in favor of an “all or nothing” position but would like to 99
know what MoundsVista will offer to accomplish the amendment. 100
101
Commissioner Mueller noted that one bondholder has indicated no objection to not paying off 102
the bond and the other bondholder has indicated they want to be bought out. Economic 103
Development Specialist Steinmetz explained that when MoundsVista was considering an earlier 104
amendment, Western Bank indicated a willingness to buy out First Bank. However, noting has 105
been submitted in writing to confirm that remains the case. 106
107
President Flaherty stated he had hoped The Mermaid owners would be in attendance to answer 108
questions. However, they did relate to staff that they are unable to pay off one-third of the bonds. 109
He noted that The Mermaid is a struggling business, they are making attempts to gain solvency, 110
and that revenue may be needed to pay property taxes. 111
112
President Flaherty asked whether Mounds View assumes any risk by modifying the Agreement. 113
Executive Director Ericson stated it would not. 114
115
President Flaherty asked what is the benefit to retire a portion of the District. Executive Director 116
Ericson explained the EDA can selectively decertify parcels but could not decertify any Mermaid 117
parcels while a TIF note is associated with those parcels. The drawback is that the TIF dollars 118
otherwise generated on those parcels would no longer be available for street and utility projects 119
and the City’s budget anticipates those dollars will be available. 120
121
Vice President Stigney stated again he would like to know what MoundsVista is willing to do if 122
the EDA considers the requested amendment. He noted when the hotel expansion occurs, they 123
may request it to also be in the TIF District. 124
125
President Flaherty commented on the importance of balancing the needs of the City with the 126
needs of the property owner. He stated he would take that stance for any Mounds View business, 127
Mounds View EDA April 13, 2009
Regular Meeting Page 4
not just The Mermaid. 128
129
Commissioner Gunn stated she had asked for written confirmation from the bond holders in 130
addition to other information. She stated she is willing to table consideration until that 131
confirmation is received. 132
133
Commissioner Mueller stated she would like to hear from the business owners before the EDA 134
makes this decision. 135
136
Commissioner Mueller noted there may be timing issues because license renewals are coming 137
due for The Mermaid and one condition for renewal is being current on tax payments. 138
139
President Flaherty noted The Mermaid owners had just arrived and asked Mr. Hall to address the 140
questions raised why MoundsVista was not able to pay off one-third of the bond note. 141
142
Dan Hall, 2200 Highway 10 and owner of The Mermaid, explained that they do not have funds 143
available to pay the note early. He stated they have placed personal guarantees so the City will 144
not be out any money and bringing in another owner for the hotel assures there will be no 145
shortfall in taxes so the TIF payments can be made. Mr. Hall stated this is a calculated move to 146
solidify their business and there is no reason to accelerate the note payments since their request is 147
miniscule in the broad scope of things and does not place a burden on Mounds View. 148
149
Commissioner Mueller asked how many people MoundsVista presently employs. Mr. Hall stated 150
they average 150 employees with 125 during summer months and up to 175 during the holiday 151
season. They have 65-70 full-time employees. The new prospective owner wants to construct 152
an addition to the hotel, which would increase property taxes paid. 153
154
Commissioner Mueller asked about the property value on which the TIF note was originated. 155
Mr. Hall stated it was $8.4 million to $8.6 million and their property taxes just increased by 10% 156
so he does not believe the property value will go down if this passes. 157
158
Vice President Stigney asked what they would be willing to do. Mr. Hall stated he cannot afford 159
to pay on the note, his family still personally guarantees payment of the TIF, and Mounds View 160
would not have any additional burden. 161
162
Vice President Stigney asked if The Mermaid will go bankrupt unless no TIF payment is made. 163
Mr. Hall stated he does not want to use the word “bankruptcy” but he is out of money and this 164
sale will put money back into the coffers of The Mermaid. He advised they have not paid 165
property tax from last fall because they do not have the money. Vice President Stigney asked if 166
they can submit supportive documentation of The Mermaid financials to show that is the case. 167
168
President Flaherty stated The Mermaid is trying to make a sale to gain solvency and if any 169
Mounds View EDA April 13, 2009
Regular Meeting Page 5
portion of the TIF bond is required, even 1/10th, it would come from operating revenue. Mr. Hall 170
stated it would come from money needed to pay delinquent and current taxes. He pointed out 171
that if taxes are not paid, he will not be able to obtain a liquor license. 172
173
Commissioner Hull stated that 1/6th would be $68,000 and if Mounds View needs it that bad, it 174
should close its doors. He stated he has no problem with the amendment approval without 175
contingencies because The Mermaid is an excellent business and hires many people including 176
residents. 177
178
MOTION/SECOND: Gunn/Hull. To Waive the Reading and Approve Resolution 09-EDA-252, 179
Approving First Amendment to Development Assistance Agreement between Mounds View 180
Economic Development Authority and MoundsVista, Inc. 181
182
Commissioner Mueller asked when the closing date would be if this is approved without 183
requirement for advance bond payment. Mr. Hall stated the scheduled closing is April 30, 2009, 184
and the buyer owns seven other hotels in the Twin Cities area. The appraisal will be completed 185
this Wednesday. 186
187
Commissioner Mueller asked if property taxes will be paid by May 15 if the sale does not go 188
through. Mr. Hall stated taxes would not be paid. 189
190
President Flaherty stated this business is attempting to reorganize to be more viable and payment 191
of taxes is an important consideration. He stated he would consider the same action for any 192
business in Mounds View that came before the Council. 193
194
Vice President Stigney noted that Mr. Hall has indicated that he cannot pay 10% or the deal 195
would fall through. Mr. Hall stated he did not make that implication. 196
197
Vice President Stigney stated the motion establishes a precedence by granting a request of a 198
business and its offering absolutely nothing to the City. He noted the tax payers would gain 199
benefit if the TIF District is shortened. Mr. Hall suggested that would be a windfall for the 200
taxpayers since the money would come from his pocket. Vice President Stigney stated if they 201
cannot support 10% then he questions whether the business is even viable. 202
203
President Flaherty stated he understands it would not stop the project from moving forward but 204
could impact The Mermaid’s operation, future hiring, and cause a possible reduction in staff. 205
206
AMENDMENT MOTION/SECOND: Stigney/Mueller (for discussion purposes). To Waive the 207
Reading and Approve Resolution 09-EDA-252, Approving First Amendment to Development 208
Assistance Agreement between Mounds View Economic Development Authority and 209
MoundsVista, Inc., as amended to require a minimum 10% payment of the one-third TIF bond, 210
which gives the taxpayers some benefit. 211
Mounds View EDA April 13, 2009
Regular Meeting Page 6
212
Vice President Stigney stated he has seen no written documentation supporting Mr. Hall’s 213
comments about their financial insolvency. 214
215
Commissioner Mueller stated she understands the desire for “give and take” by both parties but 216
when she thinks about the jobs involved and the business owner coming before the EDA with a 217
“cry for help,” the $13,666 (10% of one-third) will not make that great of an impact to the City’s 218
budget. However, it could make a great impact to the jobs of the employees at the business. 219
Commissioner Mueller stated she would like to see some “give and take” in the negotiation but 220
this business has been creatively trying to solve fiscal issues during difficult economic times to 221
stay afloat in an entertainment business. She stated the EDA needs to see some “gray” between 222
the “black and white” so she does not favor the amendment. 223
224
Ayes – 1 (Stigney) Nays – 4 Amendment failed. 225
226
Ayes – 4 Nays – 1 (Stigney) Motion carried. 227
228
RECESS AND RECONVENE 229
230
MOTION/SECOND: Mueller/Gunn. To recess the EDA at 7:08 p.m. so the Council meeting 231
can be called to order. 232
233
Ayes – 5 Nays – 0 Motion carried. 234
235
President Flaherty reconvened the EDA meeting at 7:28 p.m. 236
237
B. Adopt Brand Strategy and Select New City Logo. 238
239
Economic Development Specialist Steinmetz presented staff’s recommendation to formally 240
adopt the final Brand Strategy developed by Risdall Marketing. She read the Brand Promise and 241
advised the objectives and recommendations are included in the Brand Strategy. 242
243
MOTION/SECOND: Mueller/Gunn. To Approve Adoption of the Brand Strategy and 244
Recommendations. 245
246
Commissioner Mueller stated her support for Objective #5 addressing active and healthy 247
lifestyles, including the creation of a Mounds View Garden Club. 248
249
President Flaherty read the five objectives contained in the Brand Strategy aloud. 250
251
Objective One - Develop a new look and tagline 252
Objective Two - Keep residents and businesses informed 253
Mounds View EDA April 13, 2009
Regular Meeting Page 7
Objective Three – Capitalize on the County Road 10 corridor 254
Objective Four – Develop a long rang vision for future development 255
Objective Five – Support active and healthy lifestyles 256
257
Vice President Stigney noted the Risdall Marketing work cost $23,000 and no funds have been 258
budgeted to implement this plan. He stated he does not support that expenditure or the motion 259
on the floor. 260
261
Commissioner Mueller stated that she doesn’t want the public thinking that it cost $23,500 262
for a few objectives. She asked Ms. Steinmetz to explain what the City received for the 263
contract amount. Ms. Steinmetz explained that so far the City received resident and 264
business surveys, a research report and a logo. They City will also receive a tagline and a 265
marketing/communications plan in the next few weeks. 266
267
Ayes – 4 Nays – 1 (Stigney) Motion carried. 268
269
Economic Development Specialist Steinmetz stated the EDA is also asked to choose the final 270
logo design. She reviewed that seven logo designs had been submitted for consideration at April 271
2, 2009 Workshop. 272
273
Commissioner Mueller noted the City paid for professional branding which involved a lot of 274
work, research, and surveying of residents and businesses. Economic Development Specialist 275
Steinmetz reviewed the history of the brand strategy consideration and detailed the steps taken by 276
Risdall Marketing during its survey and research reports and creation of logo designs and 277
taglines. A Communications Plan will also be developed to define how the City can better 278
communicate with its residents and business owners. Economic Development Specialist 279
Steinmetz stated it is correct that money was not budgeted to phase in a new logo design; 280
however, it is the intent to first deplete the stationary and supplies on hand and staff will research 281
corporate sponsorship to cover implementation costs. 282
283
Patrick Bettenburg, Risdall Marketing Project Manager, stated the new logo will create a new 284
identity for Mounds View. He presented the three final logo designs and explained the 285
modifications made to each. 286
287
Community Development Director Roberts noted visual samples were also provided of street 288
signs and the water tower showing each logo. 289
290
Commissioner Hull stated support for Option 2. 291
292
Commissioner Mueller stated support for Option 2 with the lettering remaining black and the 293
lines green. 294
295
Mounds View EDA April 13, 2009
Regular Meeting Page 8
Commissioner Gunn stated supported for Option 2, especially after seeing how it would appear 296
on the water tower. 297
298
Vice President Stigney stated he likes Option 1 with heavier lettering because it is more artistic 299
and not the same classic design (Option 2) used by all other cities. 300
301
Economic Development Specialist Steinmetz stated in January of 2008, the EDC began the 302
branding project and had presented recommendations to the EDA. Also, an article was included 303
in the Mounds View Matters inviting resident participation. Two residents, Val Amundson and 304
Cindy Carvelli, responded and were helpful during the process. 305
306
EDC members offered comment on the logo designs. 307
308
Val Amundson, 3048 Woodale Drive, noted the survey found that residents believe that Mounds 309
View is a fun community. She found Option 2 to be more “business” or “stuffy” in design so she 310
supports Option 1 with tweaks to make it more outstanding. She also felt a tagline would fit 311
nicely under the arched bottom line. 312
313
President Flaherty stated support for Option 1 if tweaked to make the design more bold. 314
315
Mr. Bettenburg stated the final art phase will fine tune those tweaks; however, use of a different 316
font would change the impact. 317
318
MOTION/SECOND: Mueller/Hull. To Approve Logo Design Option 2, which will be unveiled 319
at the Town Hall meeting, and to direct staff to work with Risdall Marketing to fine tune the 320
design. 321
322
Vice President Stigney stated he found Option 2 to be “corporate” and “stuffy” in appearance and 323
Option 1 to be more free-flowing and relaxed. He stated he does not support Option 2 and 324
suggested resident input be received at the Town Hall meeting prior to a final decision. 325
326
Ayes – 4 Nays – 1 (Stigney) Motion carried. 327
328
Mr. Bettenburg stated taglines will be developed with the Marketing/Communications Plan. 329
330
8. REPORTS 331
332
None. 333
334
9. NEXT EDA MEETING: Monday, April 27, 2009 335
336
10. ADJOURNMENT 337
Mounds View EDA April 13, 2009
Regular Meeting Page 9
338
President Flaherty adjourned the meeting at 8:01 p.m. 339
340
Respectfully submitted, 341
342
Recorded and transcribed by: 343
Carla Wirth 344
TimeSaver Off Site Secretarial, Inc. 345
Item Number: 7
Meeting Date: May 11, 2009
Type of Business: EDA
Administrator Review: _____
City of Mounds View Staff Report
To: Economic Development Authority
From: Heidi Steinmetz, Economic Development Specialist
Item Title/Subject: Review City Tagline Options
Background
In August 2008, the EDA authorized a contract with Risdall Marketing Group to work
with City staff on the Mounds View Branding Project. After a nine-month process, the
EDA adopted a brand strategy and new logo for Mounds View in April 2009.
Discussion
It is now time for the EDA to discuss new tagline options for the City. Patrick
Bettenburg of Risdall Marketing Group will facilitate the EDA’s discussion.
City Tagline History
The City’s original tagline was “Gateway to the North”. There are records that the City
used “Pride, Progress and Partnerships” and “Quite Simply the Best” as its tagline
beginning in 1991 but essentially, “Pride, Progress and Partnerships” has been the
City’s tagline for the past 18 years.
Public Input on Current Tagline
During the survey work last Fall, Mounds View residents and businesses provided input
on “Pride, Progress and Partnerships”. Responses to the resident survey were evenly
mixed on whether the tagline appropriately describes the city. Of the respondents that
said “no”, however, many felt that the tagline made no difference or was of little
significance. Others stated strongly that it doesn’t fit where the City is today.
When businesses were asked if “Pride, Progress and Partnerships” appropriately
described the City, the majority of business respondents (80.6%) indicated that it did.
This strong response indicates that the tagline represented relevant business attributes
that were important to the respondents.
EDA Item 7 – May 11, 2009
Review City Tagline Options
Page 2 of 3
City Staff Team
The same City staff team that reviewed logo options also reviewed tagline options. The
team consisted of representatives from each City department. Based on their research
and expertise, Risdall created several taglines for the City and presented the following
tagline options to the staff team:
• Where you want to be
• The small town with big
opportunities
• Connected to the future
• Central to growth
• Close. Convenient. Connected.
• Convenient. Connected. Caring.
• Close enough. Far enough.
• See more from here
• Growing better everyday
• It’s all here
• A caring connected community
• Discover for yourself
• A connected community
• The heart of it all
After City staff discussed the above options, staff asked Risdall to refine the taglines.
Based on comments and input, Risdall submitted the following list of possible taglines to
staff:
• Close enough. Far enough.
• Growing better every day.
• Small Town Feel. Big Picture
Thinking.
• At the center of growth.
• The Intersection of Progress and
Growth.
• Growing home.
• Where past values meet a bright
future.
• The future looks great from here.
In addition, various City staff members brainstormed on their own to create additional
taglines. Listed below are the strongest of the additional taglines:
• Small Town Feel. Big City Vision.
• Small town feel. Forward looking vision
• Community Within Reach
• Community Redefined
• Two Words. One Community.
EDA Item 7 – May 11, 2009
Review City Tagline Options
Page 3 of 3
• Honor the past. Celebrate the present. Choose the future.
• Mounds View: Value(s) the past. Welcome(s) the future.
• Celebrating the present and planning for the future
• A small town feel with a modern vision
• Honoring the past and building the future
Risdall then asked the staff team to select the five strongest options from the refined list
that Risdall had prepared. Below are the results of the staff team’s preferences:
• Close enough. Far enough. 1st
• Where past values meet a bright future. 2nd
• Small Town Feel. Big Picture Thinking. Tied for 3rd
• The future looks great from here. Tied for 3rd
• The Intersection of Progress and Growth. Tied for 4th
• Growing better every day. Tied for 4th
• At the center of growth. Tied for 5th
• Growing home. Tied for 5th
Since there were ties for 3rd, 4th and 5th place, there was apparent difficultly on
reaching a staff consensus on tagline options. Therefore, Risdall suggested that the
City postpone the tagline discussion until after the EDA/Council chose a new logo
design.
Recommendation
Based on feedback from the residents and businesses, staff recommends that the EDA
consider the following questions about taglines:
• Do any of the tagline options listed in this staff report describe Mounds View
today and for Mounds View going forward?
• Does the City need two taglines (one for residents and another for businesses)?
Staff recommends that the EDA select the strongest five tagline options (from any of the
options listed in this staff report) for final consideration at the May 26 or June 8, 2009,
EDA meeting.
Respectfully submitted,
___________________________
Heidi Steinmetz
Economic Development Specialist
Item Number: 8
Meeting Date: May 11, 2009
Type of Business: EDA
Administrator Review: _____
City of Mounds View Staff Report
To: Economic Development Authority
From: Heidi Steinmetz, Economic Development Specialist
Item Title/Subject: Reports
8A. Update – City Communications/Marketing Plan
Patrick Bettenburg of Risdall Marketing Group will present the EDA with the City
Communications/Marketing Plan on Tuesday, May 26, 2009. The plan will be an
extension of Mounds View’s branding process and will build upon the work already done
during the branding phase. The plan’s goal and objectives as stated in Risdall’s June
27, 2008, proposal to the EDA are as follows:
Plan Goal: Successfully connect with the City’s target audiences, getting them to
remember the City’s brand message and associate it with the brand’s value.
Plan Objectives:
• Refine the City’s current communication vehicles
• Offer suggestions for other communication efforts
• Provide a structure for each communication channel
The implementation of the plan is not included in the EDA’s contract with Risdall, so City
staff would implement the plan. Implementation tasks will include the extension of the
brand identity to the communication vehicles such as the City Website and the City
newsletter.
8B. Business Improvement Partnership Loan Program Inquiry
Staff received an inquiry on April 24, 2009, about the EDA’s Business Improvement
Partnership Loan Program. Attached is the program criteria for the EDA’s reference.
The inquiry came from Brian Wentz of Klein Bank out of Maple Grove who is trying to
finance a start-up dental clinic to locate in Mounds View City Center Suites (5372
Edgewood Drive).
As shown on the attached flyer, there are three units available for sale in Mounds View
City Center Suites. The dentist and the building owner have an agreed upon purchase
EDA Item 8 – May 11, 2009
Reports
Page 2 of 3
agreement for Unit 5366, which is 1,550 square feet. The purchase agreement is
contingent upon the dentist obtaining financing to assist with such things as purchasing
the space (about $183,000) and building out the space (about $120,000). The space
currently has sand floors. Mr. Wentz also told City staff that the clinic would create
three initial jobs in Mounds View (dentist, dental hygienist and receptionist).
The proposed dental clinic does not meet the EDA’s loan program criteria because only
businesses that have been located in Mounds View for at least two years are eligible.
Staff has not received a loan application but the dentist plans to submit an application if
the EDA is willing to consider waiving the aforementioned loan criteria. Staff is
requesting direction from the EDA on this issue.
8C. Update - Property Owner (2949 Hwy 10) Acquisition Request
On April 27, 2009, homeowner Mark Schnor (2949 Hwy 10) asked the EDA to purchase
his property for redevelopment purposes. The EDA did not make a decision to
purchase Mr. Schnor’s property but directed staff to continue promoting the site for
redevelopment.
Staff met with Finn Daniels Architects on April 28, 2009 who is interested in completing
a 30-unit rental townhome project in Mounds View. They are interested in the five-
parcel, 4-acre site shown below, which includes Mr. Schnor’s property, Mr. Waldoch’s
property and Mr. Lillistrand’s property.
EDA Item 8 – May 11, 2009
Reports
Page 3 of 3
Finn Daniels Architects are currently acting as the developer to initiate this project.
They are studying the site and invited the property owners to a joint meeting to discuss
the total land costs. Would the EDA support a rental townhome project on this site?
8D. Update - Select Senior Living Project
The City Council approved this 95-unit senior housing project at the corner of Groveland
Road and County Road 10 in October 2008. The contractor applied for the building
permit in February 2009 and Building Official Kathi Osmonson has signed off on the
building plans. There are several items that the City needs the developer or builder to
complete before issuing the permit including:
• A signed Development Agreement
• A signed Final Plat
• Payment of Park Dedication and County Hwy10 trail fees
In addition, the developer needs to secure financing in order to purchase the property.
Respectfully submitted,
____________________________
Heidi Steinmetz
Economic Development Specialist
Attachments:
• Business Improvement Partnership Loan Program Criteria
• Mounds View City Center Suites Flyer