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HomeMy WebLinkAbout02-11-2008 CITY OF MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY MEETING AGENDA MOUNDS VIEW CITY HALL Monday, February 11, 2008 6:30 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. 5. APPROVAL OF MINUTES A. January 14, 2008, EDA Minutes. 6. CONSENT AGENDA 7. EDA BUSINESS A. Resolution 08-EDA-242 Appreciation to Tom Field for his twelve years of service with the Economic Development Commission (EDC) 8. REPORTS 9. NEXT EDA MEETING: Monday, February 25, 2008. 10. ADJOURNMENT Corrections made by Council Member Roger Stigney and Jim Ericson, Interim City Administrator PROCEEDINGS OF THE MOUNDS VIEW EDA 1 CITY OF MOUNDS VIEW 2 RAMSEY COUNTY, MINNESOTA 3 4 Regular Meeting 5 January 14, 2008 6 Mounds View City Hall 7 2401 Highway 10, Mounds View, MN 55112 8 6:06 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 Economic Development Specialist Heidi Steinmetz asked that the EDA consider swapping the 21 order in which they consider the first two items so that 7B is heard before Item 7A. 22 23 MOTION/SECOND: Mueller/Flaherty. To Approve the Monday, January 14, 2008 Agenda as 24 amended. 25 26 Ayes - 5 Nays – 0 Motion carried. 27 28 4. PUBLIC INPUT 29 30 None. 31 32 5. APPROVAL OF MINUTES 33 34 A. December 10, 2007 EDA Minutes 35 36 MOTION/SECOND: Flaherty/Marty. To Approve the Minutes of December 10, 2007 as 37 Presented. 38 39 Ayes – 5 Nays – 0 Motion carried. 40 41 6. CONSENT AGENDA 42 43 None. 44 45 Mounds View EDA January 14, 2008 Regular Meeting Page 2 46 7. EDA BUSINESS 47 48 B. Resolution 08-EDA-240 Approving a One-Time Payment to SYSCO Food 49 Services of Minnesota in the Amount of $250,000 Plus Accrued Interest per the 50 Tax Increment Revenue Note Certified in April 2007. 51 52 Economic Development Specialist Steinmetz indicated that Sysco is well underway creating the 53 required jobs ahead of schedule and Staff does not feel meeting the job and wage creation jobs 54 will be an issue for Sysco. As such, Staff is recommending that the EDA consider a one time 55 payment to save the EDA $33,000 in interest. 56 57 Commissioner Mueller asked whether Sysco is in agreement with the early payment. 58 59 Economic Development Specialist Steinmetz indicated that Staff has been working with Sysco 60 and they have been informed and accept the recommendation. 61 62 Commissioner Flaherty asked why Sysco is willing to do this. 63 64 Scott Mcguire, CFO and Vice President of SYSCO Minnesota, indicated that he has no problem 65 with the company receiving the money early rather than late. 66 67 President Marty thanked Ms. Steinmetz for the Staff report. 68 69 Brian Amundsen, 3048 Wooddale Drive, indicated that he heard that the job and wage goals 70 were “expected” to be met. He said that he is wondering why this is being pushed through when 71 the jobs and wage requirements are not yet met. 72 73 Economic Development Specialist Steinmetz explained that it is Staff responsibility to find ways 74 to save money. She then said that pursuant to State Statute Sysco is required to create these jobs 75 and, if they do not, they must repay the EDA on a pro rated basis the money that the EDA will be 76 paying out. 77 78 Economic Development Specialist Steinmetz explained that Staff is required to report to the 79 State of Minnesota any subsidies of $100,000 so the State is monitoring this as well. 80 81 Commissioner Flaherty indicated that he is pleased that there are monitoring requirements for 82 fulfillment of the obligation on jobs and wages. 83 84 Commissioner Mueller asked Sysco to provide information on job creation for the coming year. 85 86 Phil Seipp, President of SYSCO Minnesota, explained that they have picked up new business 87 Mounds View EDA January 14, 2008 Regular Meeting Page 3 that has allowed them to expand and they expect to continue adding business through 2008. He 88 then thanked the City for the support they have received and noted that this is a great City to do 89 business in. 90 91 MOTION/SECOND: Marty/Mueller. To Waive the Reading and Approve Resolution 08-EDA-92 240 Approving a One-Time Payment to SYSCO Food Services of Minnesota in the Amount of 93 $250,000 Plus Accrued Interest per the Tax Increment Revenue Note Certified in April 2007 94 95 Vice President Stigney asked whether this was really necessary to expand the TIF district for the 96 extra three years. He then said that he will vote in favor of the resolution but he is sorry that this 97 ever happened as he was opposed to granting assistance for SYSCO in the first place. 98 99 Ayes – 5 Nays – 0 Motion carried. 100 101 A. Resolution 08-EDA-239 Approving a Redevelopment Grant Application 102 and Expenditure of Tax Increment Funds for Costs Associated with the 103 Acquisition and Redevelopment of 2400 County Road H2 104 105 Economic Development Specialist Steinmetz explained that the EDA requested dialogue with the 106 Developer to put together a project on all three parcels. Michael Tobin representing Master 107 Development is in attendance to answer questions. 108 109 Economic Development Specialist Steinmetz indicated that in December the EDA agreed to hold 110 a public hearing to consider providing up to $100,000 to assist with redevelopment of 2400 111 County Road H2. Since then, Staff has drafted a grant application to the Minnesota Department 112 of Economic Development to request grant funds to further assist with this project. 113 114 Economic Development Specialist Steinmetz indicated that the EDA has invested $675,000 115 toward this project including the acquisition of the Premium Stop site, demolition, clearing of the 116 site and other activities. 117 118 Economic Development Specialist Steinmetz reported that 2400 County Road H2, the Robert’s 119 site, has become available through foreclosure. 120 121 Commissioner Mueller asked the amount of the requested DEED grant. 122 123 Economic Development Specialist Steinmetz indicated that the amount of the grant request 124 presently would be $495,000, which is the identified funding gap in putting together a project for 125 all three parcels. 126 127 128 Mounds View EDA January 14, 2008 Regular Meeting Page 4 Economic Development Specialist Steinmetz indicated that there is an estimate for $80,000 in 129 demolition, $50,000 for filling and $55,000 for water and sewer improvements and $10,000 for 130 ponding. 131 132 Commissioner Flaherty asked what the bank has listed the property for. 133 134 Economic Development Specialist Steinmetz indicated the listing price is $1.1 million. The 135 Bank had originally mentioned that they might be willing to accept $800,000 for the property. 136 137 Commissioner Flaherty asked what the bid to Welsh was for this property by the Developer. 138 139 Mr. Tobin indicated that it has been a few months since this was being discussed. Master had 140 submitted an offer less than $800,000. 141 142 Commissioner Flaherty asked why the City would not just buy the property. 143 144 Economic Development Specialist Steinmetz indicated that would be an option or the EDA could 145 receive the grant funds and work with a developer who could provide the matching funds for the 146 acquisition. 147 148 Interim Executive Director Ericson indicated that the local matching funds do not have to come 149 from the City; they could come from working with a developer or other entity. 150 151 Valerie Amundsen, 3048 Woodale Drive, indicated that she had expressed concern about putting 152 more money into this corner when she contacted Council Member Mueller. She then said that 153 she does not feel that it is up to the City to become developers. 154 155 Ms. Amundsen said that she does not support this whatsoever as she feels that the property 156 should stand on its own and be sold for what the market will bear. 157 158 Interim Executive Director Ericson indicated that Staff would work toward a purchase price of 159 $800,000 or less rather the $1.1 million that the bank feels it is worth. He then said that Staff 160 feels that it is an appropriate use of TIF dollars to acquire properties that may not otherwise 161 redevelop and get back on the tax rolls. 162 163 Brian Amundsen, 3048 Wooddale Drive, asked whether the EDA regularly approves multiple 164 issues in one resolution. He then said that he sees three requests, one for the grant, one for the 165 TIF funds and one for the purchase of the property. He then requested that the items be 166 separated. 167 168 Mr. Amundsen said that he would like to see this property develop at the expense of a developer 169 and not the City. 170 Mounds View EDA January 14, 2008 Regular Meeting Page 5 Commissioner Flaherty indicated that he would like to remove the TIF funding and leave the 171 grant application in the Resolution. He then said that he would expect assurances from Master 172 that the Premium Stop purchase would be reimbursed to the City. 173 174 President Marty said that the price tag is off by about $300,000 and this grant is almost $500,000 175 so that should take care of some of the other issues as to demolition, site clearing and filling, etc. 176 177 Staff and the Authority discussed potential revisions to the resolution to eliminate any association 178 or reference to EDA funds being used for the acquisition of the property. 179 180 Vice President Stigney said that he feels a need to postpone this as it is confusing and needs to be 181 clarified with Master to see if they can do this on their own dime. He then said that he has 182 questions about the big picture for this site and questions with the grant. 183 184 MOTION/SECOND: Stigney/Marty. To Postpone to the Next EDA Meeting. 185 186 Commissioner Flaherty said that he sees no issue with submitting the grant as it is as this would 187 not commit the City to anything. 188 189 Interim Executive Director Ericson indicated that there is time to postpone to the next meeting 190 and still make the grant deadline if approved. 191 192 Ayes – 5 Nays – 0 Motion carried. 193 194 C. Resolution 08-EDA-241 Appreciation to Gerald (Jerry) Jaker for his two 195 years of service with the Economic Development Commission (EDC) 196 197 President Marty read Resolution 08-EDA-241. 198 199 MOTION/SECOND: Marty/Mueller. To Approve Resolution 08-EDA-241, Appreciation to 200 Gerald (Jerry) Jaker for his two years of service with the Economic Development Commission 201 (EDC). 202 203 President Marty thanked Mr. Jaker, who was not able to attend the meeting, and all those serving 204 the City on Committees and Commissions. 205 206 Ayes – 5 Nays – 0 Motion carried. 207 208 8. REPORTS 209 210 9. NEXT EDA MEETING: Monday, January 28, 2008 at 6:00 p.m. 211 212 Mounds View EDA January 14, 2008 Regular Meeting Page 6 10. ADJOURNMENT 213 214 MOTION/SECOND: Mueller/Hull. To Adjourn. 215 216 Ayes – 5 Nays – 0 Motion carried. 217 218 President Marty adjourned the meeting at 7:10 p.m. 219 220 Respectfully submitted, 221 222 Recorded and transcribed by: 223 224 225 226 Joan Lenzmeier, Recording Clerk 227 TimeSaver Off Site Secretarial, Inc. 228 Item No. 7A Meeting Date: Febuary 11, 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-242 to Tom Field for his twelve years of service with the Economic Development Commission (EDC) Background: Tom Field was appointed as a resident representative to the EDC in October of 1997. He was then reappointed in March 2002 and January 2005. Mr. Field has resided in Mounds View for 31 years and gladly served on the EDC for a total of twelve years until December 2007. Discussion: Mr. Field plans to attend the EDA meeting as the EDA considers Resolution 08-EDA-242. Recommendation: Staff recommends that the EDA consider approving Resolution of Appreciation 08-EDA-242 to Tom Field for his twelve years of service with the Economic Development Commission (EDC). Respectfully submitted, ____________________________ Heidi Steinmetz Economic Development Specialist Attachment: Resolution 08-EDA-242 EDA RESOLUTION NO. 08-EDA-242 MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY COUNTY OF RAMSEY STATE OF MINNESOTA RESOLUTION OF APPRECIATION TO TOM FIELD FOR HIS 12 YEARS OF SERVICE WITH THE ECONOMIC DEVELOPMENT COMMISSION (EDC) WHEREAS, Tom Field was appointed to the Economic Development Commission in October of 1997, March 2002 and January 2005 serving a total of three terms; and WHEREAS, Tom Field has served as a residing representative on the Economic Development Commission with dedication and a high level of enthusiasm; and, WHEREAS, Tom Field has gained the respect and gratitude of his fellow Economic Development Commissioners. NOW, THEREFORE, BE IT RESOLVED, Mounds View Economic Development Authority, on behalf of the residents of the City of Mounds View, expresses its appreciation to Tom Field for his dedication and devoted service on the Mounds View Economic Development Commission. Adopted this 11th day of February, 2008 by the Mounds View Economic Development Authority . (ATTEST) ________________________________ Rob Marty, President ________________________________ ________________________________ Roger Stigney, Vice President Commissioner Al Hull ________________________________ ________________________________ Commissioner Joe Flaherty Commissioner Carol Mueller ________________________________ James Ericson, Interim Executive Director