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HomeMy WebLinkAbout01-14-2008 CITY OF MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY MEETING AGENDA MOUNDS VIEW CITY HALL Monday, January 14, 2008 6:00 PM 1. CALL TO ORDER 2. ROLL CALL: President Marty, Vice President Stigney, Commissioner Flaherty, Commissioner Hull, 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 and sign in on the sign-in sheet located on the podium. 5. APPROVAL OF MINUTES: A. December 10, 2007 EDA Minutes 6. CONSENT AGENDA 7. EDA BUSINESS 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 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 C. Resolution 08-EDA-241 Appreciation to Gerald (Jerry) Jaker for his two years of service with the Economic Development Commission (EDC) 8. REPORTS 9. NEXT EDA MEETING: Monday, January 28, 2008 10. ADJOURNMENT Item No. 7C Meeting Date: January 14, 2008 Type of Business: EDA Administrator Review: _____ City of Mounds View Staff Report To: Mounds View Economic Development Authority From: Heidi Steinmetz, Economic Development Specialist Item Title/Subject: Consider Resolution of Appreciation 08-EDA-241 to Gerald (Jerry) Jaker for his two years of service with the Economic Development Commission (EDC) Background: Jerry Jaker was appointed as a business representative to the EDC in January of 2005. Mr. Jaker is the Executive Director of the Minnesota Institute of Public Health located at 2720 Hwy 10 in Mounds View. He gladly served on the EDC for two years through December 2007. Discussion: Mr. Jaker regrets that he is unable to attend the EDA meeting for recognition of his service. He asked that staff reiterate his appreciation toward fellow EDC members and his thankfulness to the EDA for providing him with the opportunity to serve on the EDC. Recommendation: Staff recommends that the EDA consider approving Resolution of Appreciation 08-EDA- 241 to Gerald (Jerry) Jaker for his two years of service with the Economic Development Commission (EDC). Respectfully submitted, ____________________________ Heidi Steinmetz Economic Development Specialist Attachment: 1. Resolution 08-EDA-241 EDA RESOLUTION NO. 08-EDA-241 MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY COUNTY OF RAMSEY STATE OF MINNESOTA RESOLUTION OF APPRECIATION TO GERALD (JERRY) JAKER FOR HIS TWO YEARS OF SERVICE WITH THE ECONOMIC DEVELOPMENT COMMISSION (EDC) WHEREAS, Jerry Jaker was appointed to the Economic Development Commission in January of 2005 and had extensive experience working for businesses; and WHEREAS, Jerry Jaker has served as a business representative on the Economic Development Commission with dedication and a high level of enthusiasm; and, WHEREAS, Jerry Jaker has gained the respect and gratitude of his fellow Economic Development Commissioners. NOW, THEREFORE, BE IT RESOLVED, that the Mounds View Economic Development Authority, on behalf of the residents of the City of Mounds View, expresses its appreciation to Jerry Jaker for his dedication and devoted service on the Mounds View Economic Development Commission. Adopted this 14th day of January, 2008 by the Mounds View Economic Development Authority ________________________________ Rob Marty, President (ATTEST) ________________________________ James Ericson, Interim Executive Director Item No. 7A Meeting Date: January 14, 2008 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: Consider 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 Introduction: On December 3 and 10, 2007, the City Council and EDA discussed the potential of participating financially with the redevelopment of the 2.05-acre Robert’s Sports Bar parcel, located at 2400 County Road H2. On December 10th, the EDA authorized a public hearing to be scheduled for today’s date, January 14, 2008, to consider a business subsidy towards the redevelopment of Robert’s. Per State Statute, the pubic hearing notice was published in the January 2, 2008 New Brighton-Mounds View Bulletin, however a public hearing is no longer needed at this time due to staff’s request to submit a grant application to the Minnesota Department of Employment and Economic Development (DEED). A public hearing may be needed in the future if grant funds are received. Background: The City Council and EDA have already invested $670,000 towards the redevelopment of the Premium Stop Redevelopment Area, which includes 2400 County Road H2 (Robert’s), 2390 Hwy 10 (former Premium Stop) and 2394 Hwy 10 (Taiko Japanese Restaurant). This investment included the following costs: appraisal of the former Premium Stop property, site acquisition, demolition, environmental abatement and the DSU/Bonestroo prepared planning study for the area. The EDA and City Council’s investment thus far has clearly demonstrated a commitment to the Premium Stop Redevelopment Area project. In addition, the EDA has indicated an interest in maximizing the project footprint; therefore staff is suggesting the DEED application for assistance with the acquisition and redevelopment of 2400 County Road H2. Staff is also requesting that feedback be solicited from property owners located adjacent to the area regarding the potential vacation of a portion of Greenfield Avenue as shown on the attached site map. Discussion: Grant Application The DEED Redevelopment Grant Program was established by the 1998 Minnesota State Legislature to assist with complex and costly redevelopment projects that might not occur without public financial assistance. Pursuant to Minnesota Statutes 116J.561 - 116J.565, DEED has the authority to award grants to assist development authorities with eligible redevelopment costs. The Premium Stop redevelopment project contains eligible costs to receive these funds. Therefore, staff has prepared the attached grant application for the EDA’s consideration. The attached grant application assumes that the EDA will utilize the funds to purchase 2400 County Road H2. There are two main reasons why staff is recommending this approach: 1. If the EDA gained control of the property, it would better ensure that the City’s redevelopment goals and vision for the area are met. 2. Developer interest in the redevelopment area may increase due to a larger project footprint. The EDA would be required to provide a 50% match to any grant funds received. Since DEED allows the match to be generated by any funds available to the EDA; the EDA may use funds provided by a developer to complete the match requirement. Next Steps If the EDA authorizes the grant application, the next step would be to submit a purchase offer to the landowners of 2400 Country Road H2. The offer would be contingent upon grant funds received and would require the EDA’s expenditure of approximately $25,000 of unobligated pooled Tax Increment funds to be used as earnest money. The EDA would then consider a purchase agreement at a future EDA meeting. Summary It is often the case with redevelopment endeavors, such as the Premium Stop project, that up-front financing is needed to fill the financial “gap” due to acquisition costs, demolition, site clearance, environmental remediation, soil infill, etc. Utilizing subsidies such as TIF or grant funds are not used to unnecessarily profit private developers but rather to facilitate redevelopment that would not otherwise occur but for the assistance. It is staff’s opinion that grant funds are needed to narrow the financial “gap” for the Premium Stop Redevelopment Area project. Recommendation: Staff recommends that the EDA consider 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. Respectfully submitted, ____________________________ Heidi Steinmetz Economic Development Specialist Attachments: 1. Site Map 2. Grant Application 3. Resolution 08-EDA-239 Item No. 7B Meeting Date: January 14, 2008 Type of Business: EDA Administrator Review: _____ City of Mounds View Staff Report To: Mounds View Economic Development Authority From: Heidi Steinmetz, Economic Development Specialist Item Title/Subject: Consider 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 Issued in April 2007 Background: SYSCO has been a member of Mounds View’s business community for nearly twenty years. In 1989, their lot was created in addition to an outlot that was deeded to the City. Today, SYSCO’s lot is 30.5 acres in size, which includes three acres of the outlot that the City transferred back to SYSCO to accommodate SYSCO’s 2006 parking lot expansion. In February of 2006, the EDA entered into the attached development agreement with SYSCO for the expansion of the parking lot, which also included the relocation of a storm water retention pond. The site plan for the parking lot expansion and photos of the completed project are attached for the EDA’s reference. The development agreement included the issuance of the attached $250,000 Tax Increment Revenue Note to be paid to SYSCO over the course of two years at 5% interest with bi-annual payments beginning in August of 2008. The 5% interest began to accrue the date the Note was issued, which was April 1, 2007. The development agreement also included a requirement that SYSCO create 40 new jobs at a minimum of $18.00 per hour by the “Benefit Date” (December 2008), which is two years after the project was completed. SYSCO is well on their way of meeting their job creation goals as displayed in the attached job creation status report. Discussion: Staff is recommending that the EDA consider the attached resolution approving a one- time payment, plus accrued interest from April 1, 2007 to January 15, 2008, of the previously approved Tax Increment Revenue Note to SYSCO instead of issuing multiple developer payments over time. This would save the EDA approximately $33,000 in interest. The resolution also requires SYSCO to repay a portion of the increment based on jobs created ($6,250 per job) only if they do not meet their job creation goals. Staff is confident that SYSCO will meet their goals due to the timeliness of the jobs they have created thus far. Recommendation: Staff recommends that the EDA consider 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 Issued in April 2007. Respectfully submitted, ____________________________ Heidi Steinmetz Economic Development Specialist Attachments: 1. Development Agreement 2. Parking Lot Expansion Site Plan & Photos 3. Tax Increment Revenue Note 4. Job Creation Status Report 5. Resolution 08-EDA-240 Minutes reflect changes by Mayor Rob Marty, Interim City Administrator Jim Ericson and Councilmember Carol Mueller PROCEEDINGS OF THE MOUNDS VIEW EDA 1 CITY OF MOUNDS VIEW 2 RAMSEY COUNTY, MINNESOTA 3 4 Regular Meeting 5 December 10, 2007 6 Mounds View City Hall 7 2401 Highway 10, Mounds View, MN 55112 8 9:26 P.M. 9 10 11 1. CALL MEETING TO ORDER 12 13 2. ROLL CALL: President Marty, Vice President Stigney, Commissioner Hull, 14 Commissioner Flaherty, and Commissioner Mueller. 15 16 NOT PRESENT: None. 17 18 3. APPROVAL OF AGENDA 19 20 MOTION/SECOND: Mueller/Hull. To Approve the Monday, December 10, 2007 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. November 13, 2007 Minutes 32 33 Line 100 insert “of the document” to finish the line. 34 35 Vice President Stigney, Page 2, insert the word “with”. 36 37 MOTION/SECOND: Mueller/Stigney. To Approve the December 10, 2007 Minutes as 38 Amended. 39 40 Ayes – 5 Nays – 0 Motion carried. 41 42 6. CONSENT AGENDA 43 Mounds View EDA December 10, 2007 Regular Meeting Page 2 44 None. 45 46 7. EDA BUSINESS 47 48 A. Consider Authorizing Assistance to Master Development for the Acquisition 49 and Redevelopment of Real Property Located at 2400 County Road H2. 50 51 Interim Executive Director Ericson explained that the purpose of the report is to review the 52 discussion with Master Development relating to the Robert’s site. The property is for sale and 53 Master Development is negotiating with the bank that now owns it. 54 55 Interim Executive Director Ericson explained that Master Development has requested that the 56 City consider assisting with purchasing the property in order for it to redevelop. Staff feels that 57 this is warranted, and there is $625,000 that Master Development has agreed to pay for the 58 Premium Stop parcel and redevelopment of the Robert’s site, which would increase the tax base 59 for the future. 60 61 Staff is not suggesting fully funding the requested amount. 62 63 Vice President Stigney indicated that he would like to let this redevelop as the market dictates, 64 rather than using City funds to redevelop. He then said that he would like Staff to contact them 65 to see what the plans are. 66 67 Commissioner Flaherty said that when the City agreed to purchase Premium Stop, the City is to 68 be made whole on that project. He then said that he would be willing to discuss this after the 69 City is made whole on the project. 70 71 The Authority agreed to discuss this again on January 14, 2008. 72 73 B. EDA Resolution 07-EDA-238 Appointing Members to the EDC 74 75 Interim Executive Director Ericson reviewed the applications for members to the EDC. The 76 names are Daniel Larson and Jennifer Wagner and Staff recommends approval of Resolution 07-77 EDA-238 appointing these two individuals to fill the vacancies on the EDC. 78 79 MOTION/SECOND: Mueller/Hull. To Waive the Reading and Approve Resolution 07-EDA-80 238, Appointing Members to the EDC. 81 82 Commissioner Mueller indicated she would like to ensure that the outgoing commissioners are 83 recognized for service. 84 85 Mounds View EDA December 10, 2007 Regular Meeting Page 3 Staff agreed to schedule a recognition for the outgoing members. 86 87 8. REPORTS 88 89 9. NEXT EDA MEETING: Monday, January 14, 2008 at 6:00 p.m. 90 91 10. ADJOURNMENT 92 93 President Marty adjourned the meeting at 9:46 p.m. 94 95 Respectfully submitted, 96 97 Recorded and transcribed by: 98 99 100 101 Joan Lenzmeier, Recording Clerk 102 TimeSaver Off Site Secretarial, Inc. 103 Item No. 7C Meeting Date: January 14, 2008 Type of Business: EDA Administrator Review: _____ City of Mounds View Staff Report To: Mounds View Economic Development Authority From: Heidi Steinmetz, Economic Development Specialist Item Title/Subject: Consider Resolution of Appreciation 08-EDA-241 to Gerald (Jerry) Jaker for his two years of service with the Economic Development Commission (EDC) Background: Jerry Jaker was appointed as a business representative to the EDC in January of 2005. Mr. Jaker is the Executive Director of the Minnesota Institute of Public Health located at 2720 Hwy 10 in Mounds View. He gladly served on the EDC for two years through December 2007. Discussion: Mr. Jaker regrets that he is unable to attend the EDA meeting for recognition of his service. He asked that staff reiterate his appreciation toward fellow EDC members and his thankfulness to the EDA for providing him with the opportunity to serve on the EDC. Recommendation: Staff recommends that the EDA consider approving Resolution of Appreciation 08-EDA- 241 to Gerald (Jerry) Jaker for his two years of service with the Economic Development Commission (EDC). Respectfully submitted, ____________________________ Heidi Steinmetz Economic Development Specialist Attachment: 1. Resolution 08-EDA-241 EDA RESOLUTION NO. 08-EDA-241 MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY COUNTY OF RAMSEY STATE OF MINNESOTA RESOLUTION OF APPRECIATION TO GERALD (JERRY) JAKER FOR HIS TWO YEARS OF SERVICE WITH THE ECONOMIC DEVELOPMENT COMMISSION (EDC) WHEREAS, Jerry Jaker was appointed to the Economic Development Commission in January of 2005 and had extensive experience working for businesses; and WHEREAS, Jerry Jaker has served as a business representative on the Economic Development Commission with dedication and a high level of enthusiasm; and, WHEREAS, Jerry Jaker has gained the respect and gratitude of his fellow Economic Development Commissioners. NOW, THEREFORE, BE IT RESOLVED, that the Mounds View Economic Development Authority, on behalf of the residents of the City of Mounds View, expresses its appreciation to Jerry Jaker for his dedication and devoted service on the Mounds View Economic Development Commission. Adopted this 14th day of January, 2008 by the Mounds View Economic Development Authority ________________________________ Rob Marty, President (ATTEST) ________________________________ James Ericson, Interim Executive Director