HomeMy WebLinkAbout05-12-2008
CITY OF MOUNDS VIEW
ECONOMIC DEVELOPMENT AUTHORITY MEETING AGENDA
MOUNDS VIEW CITY HALL
Monday, May 12, 2008
6:30 p.m.
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. Feb 11, 2008, EDA Minutes
B. March 10, 2008, EDA Minutes
6. CONSENT AGENDA
7. EDA BUSINESS
A. Discuss Marketing Preferences for EDA-Owned Property Located at 2390
County Road 10
8. REPORTS
A. Expiration of Preliminary Development Agreement with Master Development
9. NEXT EDA MEETING: Tuesday, May 27, 2008.
10. ADJOURNMENT
PROCEEDINGS OF THE MOUNDS VIEW EDA 1
CITY OF MOUNDS VIEW 2
RAMSEY COUNTY, MINNESOTA 3
4
Regular Meeting 5
February 11, 2008 6
Mounds View City Hall 7
2401 Highway 10, Mounds View, MN 55112 8
6:30 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, and Interim Executive Director 15
Ericson. 16
17
NOT PRESENT: None. 18
19
3. APPROVAL OF AGENDA 20
21
MOTION/SECOND: Mueller/Hull. To Approve the Monday, February 11, 2008 Agenda as 22
Presented. 23
24
Ayes - 5 Nays – 0 Motion carried. 25
26
4. PUBLIC INPUT 27
28
None. 29
30
5. APPROVAL OF MINUTES 31
32
A. January 14, 2008 EDA Minutes 33
34
President Marty noted he had a few commas. 35
36
Add Interim Executive Director Ericson to roll call. 37
38
MOTION/SECOND: Mueller/Flaherty. To Approve the January 14, 2008 EDA Minutes as 39
Amended. 40
41
Ayes – 5 Nays – 0 Motion carried. 42
43
44
Mounds View EDA February 11, 2008
Regular Meeting Page 2
6. CONSENT AGENDA 45
46
None. 47
48
7. EDA BUSINESS 49
50
A. Resolution 08-EDA-242 Appreciation to Tom Field for his Twelve Years of 51
Service with the Economic Development Commission (EDC) 52
53
Mayor Marty read Resolution 08-EDA-242 to Mr. Field and those in attendance. He then 54
thanked Mr. Field for his years of service to the City. 55
56
Mr. Field thanked the Council for the recognition. 57
58
8. REPORTS 59
60
Interim Executive Director Ericson noted that he was working with the city Attorney on 61
appointments to the EDC and there is a Resolution for consideration on February 25, 2008 that 62
will take care of appointments to the EDC and the Authority. He further explained that Staff is 63
working to rectify the discrepancy between the by-laws and state statute. 64
65
Commissioner Mueller indicated that she had the opportunity to present the award to Mr. Jaker 66
and she enjoyed it. 67
68
Commissioner Flaherty asked for an update on the grant application. 69
70
Economic Development Specialist Steinmetz indicated that the changes were made and the grant 71
was submitted by Staff. She then provided an update on the Roberts parcel noting that the broker 72
representing a potential buyer alerted Staff on Friday that the perspective buyer was awaiting a 73
bid to sprinkle the building and, when that bid is in, they were hoping to submit a purchase 74
agreement. 75
76
9. NEXT EDA MEETING: Monday, February 25, 2008 at 6:30 p.m. 77
78
10. ADJOURNMENT 79
80
President Marty adjourned the meeting at 6:40 p.m. 81
82
Respectfully submitted, 83
Recorded and transcribed by: 84
Joan Lenzmeier, Recording Clerk 85
TimeSaver Off Site Secretarial, Inc. 86
PROCEEDINGS OF THE MOUNDS VIEW EDA 1
CITY OF MOUNDS VIEW 2
RAMSEY COUNTY, MINNESOTA 3
4
Regular Meeting 5
March 10, 2008 6
Mounds View City Hall 7
2401 Highway 10, Mounds View, MN 55112 8
6:02 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, Commissioner Mueller, and Interim Executive Director Ericson. 15
16
NOT PRESENT: None. 17
18
3. APPROVAL OF AGENDA 19
20
MOTION/SECOND: Mueller/Hull. To Approve the Monday, March 10, 2008 Agenda as 21
Amended. 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. February 25, 2008 EDA Minutes 32
33
Commissioner Mueller, on Page 3, Line 117, she read information that she would like added. 34
Staff will enter. 35
36
Commissioner Mueller, on Page 5, Line 207, she added wording. 37
38
Commissioner Flaherty, Page 3, Line 83, should state asked what takes precedence, the Charter 39
or State Statute. 40
41
Vice President Stigney, Page 4, Line 139, should state big box stores. 42
43
44
Mounds View EDA March 10, 2008
Regular Meeting Page 2
MOTION/SECOND: Mueller/Stigney. To Approve the EDA Minutes of February 25, 2008, as 45
Amended. 46
47
Ayes – 5 Nays – 0 Motion carried. 48
49
6. CONSENT AGENDA 50
51
None. 52
53
7. EDA BUSINESS 54
55
A. Resolution 08-EDA-244, Approve Mounds View Business Toolbox 56
57
Economic Development Specialist Steinmetz reviewed the Mounds View Business Toolbox, 58
noting that this is an internal document only. 59
60
Vice President Stigney commented that in the first paragraph in the Toolbox document he would 61
like to add a sentence. The sentence he would like to add is as follows: “It is intended to serve 62
as a summary document listing financial and technical resources available for economic 63
development and redevelopment for business retention.” 64
65
Vice President Stigney requested that Staff review the document to ensure it is updated. 66
67
Economic Development Specialist Steinmetz noted that the EDA did not adopt the recent policy. 68
69
MOTION/SECOND: Flaherty/Mueller. To Approve Resolution 08-EDA-244, Approve Mounds 70
View Business Toolbox as Amended by Vice President Stigney. 71
72
MOTION/SECOND: Stigney/Marty. To List the EDA Priority as the Overriding Goal. 73
74
Ayes – 5 Nays – 0 Amendment carried. 75
76
Commissioner Mueller asked for a reminder on the TRF, TIF, and Business Subsidy documents 77
for future reference that you revert to this document and update it as well. 78
79
Ayes – 5 Nays – 0 Motion carried as amended. 80
81
82
Mounds View EDA March 10, 2008
Regular Meeting Page 3
8. REPORTS 83
84
A. Premium Stop Redevelopment Area Update 85
86
Economic Development Specialist Steinmetz explained that 11 properties in a contiguous area 87
are for sale and Staff recommends that the City look at redeveloping the site because this is not 88
something that happens very often within a community. 89
90
Interim Executive Director Ericson indicated that he has discussed this with the City Attorney 91
and, if there is a vision of the City to redevelop the area, then the City should consider a 92
moratorium until there is time to determine if the DEED grant is awarded. 93
94
The EDA discussed the potential to adopt a moratorium to control redevelopment of the area. 95
96
Commissioner Mueller said that if her City slapped a moratorium on her property that could 97
affect the sale that could lead to a legal issue. 98
99
Commissioner said that if the City wishes to purchase the property that would be fine. However, 100
he does not think that it is at all fair to institute a moratorium to control the property and 101
negatively impact the property owner without laying out any cash to purchase the property. 102
103
Commissioner Hull said that there are City funds tied up in the Premium Stop site, there are 11 104
properties along the corridor available, and he would like to move forward with a moratorium 105
because reopening Roberts as a bar again would interfere with the redevelopment plans. 106
107
Vice President Stigney said that he would not agree to a moratorium. He then said that Staff 108
could discuss the City’s plans with the developer interested in Robert’s, but he does not believe 109
in a moratorium at this time. 110
111
Economic Development Specialist Steinmetz suggested an economic development roundtable 112
discussion. 113
114
Commissioner Flaherty indicated that he is willing to sit down with Master’s Development to 115
discuss the situation but he is not willing to institute a moratorium. 116
117
Valerie Amundson asked whether the City needs to look into code violations with the Robert’s 118
property to inform them that they could not purchase the property and just operate it with a new 119
name. She then said that she could agree to a very short moratorium but feels that one year 120
would not be appropriate. 121
122
9. NEXT EDA MEETING: Monday, March 24, 2008 at 6:00 p.m. 123
124
Mounds View EDA March 10, 2008
Regular Meeting Page 4
10. ADJOURNMENT 125
126
President Marty adjourned the meeting at 7:00 p.m. 127
128
Respectfully submitted, 129
130
Recorded and transcribed by: 131
132
133
134
Joan Lenzmeier, Recording Clerk 135
TimeSaver Off Site Secretarial, Inc. 136
Item No. 8A
Meeting Date: May 12, 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: Expiration of Preliminary Development Agreement with
Master Development
Background
Per the attached EDA Resolution 237 dated November 13, 2007, the EDA authorized
then Interim EDA Executive Director Jim Ericson to execute a six-month Preliminary
Development Agreement of the EDA-owned Premium Stop property with Master
Development. The Agreement gave Master Development exclusive negotiating rights to
initiate a project for the EDA-owned property. The Agreement also encouraged Master
Development to initiate discussions with adjacent property owners in order to assemble
a larger project footprint, which would support the highest and best use of the EDA’s
property.
As Mike Tobin of Master Development reported at the City Council’s redevelopment
roundtable discussion at the April 7th Work Session, his staff has worked diligently to
initiate a project for the area but market forces and the economy has made it difficult.
At the April 14th Regular City Council Meeting, staff informally inquired of whether or not
the Council foresaw extending the Preliminary Development Agreement between the
EDA and Master Development. At that time, the Council did not foresee extending the
Agreement.
Issue
The Preliminary Development Agreement with Master Development expires on May 14,
2008, which is six months from the date EDA Resolution 237 was executed. As staff
mentioned at the City Council’s May 5th Work Session, the expiration of the Agreement
means that staff will now become the main “marketer” of the property, rather than
Master Development.
Update
Staff spoke with Mike Tobin of Master Development on May 7th and Mr. Tobin stated
that he agrees with the Council/EDA and does not wish to extend the Agreement. He
Item 8A − Reports
Expiration of Preliminary Development Agreement with Master Development
May 12, 2008 EDA Meeting
Page 2 of 2
does, however, hope to maintain an informal relationship with the City and may be
approaching staff in the future regarding his interest in a different site located within
Mounds View.
Conclusion
Building and maintaining positive relationships with developers and other
redevelopment professionals is crucial to obtaining the best possible projects for the
community. Although the Preliminary Development Agreement with Master
Development did not provide the preferred results, it is important that the EDA, staff and
Master Development maintain a positive relationship.
Respectfully submitted,
____________________________
Heidi Steinmetz
Economic Development Specialist
Attachment:
• 07-EDA-237 Resolution
Item No. 7A
Meeting Date: May 12, 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: Discuss Marketing Preferences for EDA-Owned Property
Located at 2390 County Road 10
Background
In mid-to-late 2006, the EDA invested $666,000 in the former Premium Stop property
located at 2390 County Road 10. It was reiterated at the City Council’s Work Session
on April 7, 2008 that this investment was the EDA’s first step towards becoming actively
involved in the redevelopment of the County Road 10 corridor.
A breakdown of the EDA’s investment towards the former Premium Stop property is
listed below:
$2,000 appraisal
$625,000 acquisition
$25,000 building demolition, site clearance/environmental abatement
$14,000 DSU/Bonestoo prepared planning study and market research
In an effort to initiate a project on the property, the EDA entered into a six-month
Preliminary Development Agreement with Master Development on November 13, 2007.
The agreement gave Master Development exclusive marketing and negotiating rights
for the property.
Discussion
As detailed in tonight’s agenda Item 8A, the agreement with Master Development will
expire on May 14, 2008, therefore staff is seeking direction from the EDA regarding the
way the EDA would like staff to market the property. Staff is requesting direction
regarding the following questions:
1. How aggressively should staff market the property?
Current Marketing: Developer Meetings and Web Promotion
Currently, the property is being promoted through staff meetings with developers and
other redevelopment professionals, through the City’s Website, and through a new
regional Economic Development Website located at www.MetroMSP.org.
Item 7A, Discuss Marketing Preferences for EDA-Owned Property
May 12, 2008 EDA Meeting
Page 2 of 3
Additional Marketing: Signage and Land Price Clarification
Signage
Another idea for promoting the site would be a “Land for Development” sign to be
placed on the property for public relations purposes. Since the property is not
generating additional tax base for the City, a sign would send the message to residents
and the larger community that the EDA is being proactive with trying to sell or initiate a
project on the property. Inquiries from developers and commercial real estate brokers
are typically generated from the MN Commercial Association of Realtors (MNCAR)
Website or by word-of-mouth, so as mentioned above, the main purpose of a “Land for
Development” sign would be for public relations purposes.
Since the agreement with Master Development will soon expire and in an effort to be
proactive, staff requested basic real estate sign quotes from three sign companies,
located in Blaine, Fridley and Mounds View. Staff received two quotes and Let’s Get
Graphic in Mounds View was the only company to submit a proof, which is attached for
the EDA’s review. Staff will verbally present the details of the sign quotes at the EDA
meeting if the EDA wishes to move forward with a sign.
Land Price
A more aggressive marketing approach, which is basically shifting into the “sales”
category, may be for the EDA to determine a base land price for the property. The EDA
may wish to begin this discussion because it will present a professional image to the
development community. If the EDA states that the price is simply “negotiable” without
having a base price in mind, this does not send a very professional image to the
development community.
The current value of the EDA’s property will be determined by its current use, which is a
vacant commercial lot. The value will not be determined by the type of development
that may occur on the property in the future. Therefore, it is highly unlikely that the EDA
will be “made whole” on their acquisition investment of $625,000.
If the EDA wishes to begin discussing a base price at this time, the EDA could
determine the price based on sale prices of comparable properties, which is how most
offers are generated per a potential buyer’s real estate broker’s guidance. Attached are
a few comparable list prices of properties located in nearby communities.
The EDA could also determine the price based on the Ramsey County’s 2008 estimated
market value, which is $446,000, which equates to just under $8.00 per square foot. It
is highly unlikely that the EDA will receive an offer based on the assessed value but it is
a starting point for the EDA to consider.
Item 7A, Discuss Marketing Preferences for EDA-Owned Property
May 12, 2008 EDA Meeting
Page 3 of 3
In summary, at the May 5, 2008 City Council Work Session, the Council was unsure if
now is the right time to sell the property due to market issues and the economy. If the
EDA determines a base price now, the price can always be adjusted. Comparable sale
prices may change as well as the County’s estimated market value. In addition, if
multiple entities become interested in the site, that increased demand will positively
affect the price in which the EDA may be able to receive.
2. Should staff focus its marketing message on the EDA’s willingness to sell the
property only if the property becomes part of a larger redevelopment project?
Also on May 5, 2008, the Council expressed concern over selling the EDA’s property as
a stand-alone property. Staff would like clarification on the assumption that the EDA
wishes to remain firm in their desire to "bundle" the property with adjacent property or
properties in order to assemble a larger project footprint, which would support the
highest and best use of the property.
Either way, the EDA does not have to sell their property to someone who wants to
construct an undesired use for the site. Since the EDA has control of the site, it is to
their discretion as to how the property is developed. This would be formalized through a
development agreement associated with the sale of the land and a right of reverter
clause would return the title back to the EDA if the developer fails to perform.
Recommendation
Staff recommends that the EDA provide direction to staff regarding the above questions.
Respectfully submitted,
____________________________
Heidi Steinmetz
Economic Development Specialist
Attachments:
• “Land for Development” Sign Proof
• Comparable Sale (List) Prices
• 2008 Ramsey County Estimated Market Value for 2390 County Road 10