HomeMy WebLinkAbout12-08-2008
CITY OF MOUNDS VIEW
ECONOMIC DEVELOPMENT AUTHORITY MEETING AGENDA
MOUNDS VIEW CITY HALL
Monday, December 8, 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.
5. APPROVAL OF MINUTES:
A. July 14, 2008 EDA Minutes
B. September 22, 2008 EDA Minutes
C. October 27, 2008 EDA Minutes
6. CONSENT AGENDA
7. EDA BUSINESS
A. Resolution 08-EDA-249 Authorizing a Modification of the Project Plan for the
Mounds View Economic Development Project
B. Resolution 08-EDA-250 Authorizing the Expenditure of Tax Increment Financing
Funds for the Appraisal of 5066 Irondale Road (For Consideration of Purchase
under the EDA’s Housing Replacement Program).
C. Discuss Redevelopment of County Road 10 & Corner of Woodale Drive
8. REPORTS
9. NEXT EDA MEETING: Monday, January 12, 2009 at 6:30 p.m.
10. ADJOURNMENT
Corrections made by Assistant City Clerk-Administrator Crane
**An records audit of minutes is currently be done and Staff found that the July 14, 2008 EDA Minutes were not
approved by the EDA.**
PROCEEDINGS OF THE MOUNDS VIEW EDA 1
CITY OF MOUNDS VIEW 2
RAMSEY COUNTY, MINNESOTA 3
4
Regular Meeting 5
July 14, 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: Vice President Stigney, Commissioner Hull, Commissioner Flaherty, 14
Commissioner Mueller, and Acting Executive Director Crane. 15
16
NOT PRESENT: President Marty. 17
18
3. APPROVAL OF AGENDA 19
20
MOTION/SECOND: Flaherty/Mueller. To Approve the Monday, July 14, 2008 Agenda as 21
Presented. 22
23
Ayes - 4 Nays – 0 Motion carried. 24
25
4. PUBLIC INPUT 26
27
None. 28
29
5. APPROVAL OF MINUTES 30
31
A. Tuesday, May 27, 2008 EDA Minutes 32
33
MOTION/SECOND: Flaherty/Mueller. To Approve the May 27, 2008 EDA Minutes. 34
35
Ayes – 4 Nays – 0 Motion carried. 36
37
B. June 9, 2008 EDA Minutes 38
39
MOTION/SECOND: Mueller/Flaherty. To Approve the June 9, 2008 EDA Minutes as 40
Presented. 41
42
Mounds View EDA July 14, 2008
Regular Meeting Page 2
Ayes – 4 Nays – 0 Motion carried. 43
44
6. CONSENT AGENDA 45
46
None. 47
48
7. EDA BUSINESS 49
50
A. Branding Proposal Update 51
52
Economic Development Coordinator Steinmetz indicated that a list of 19 consultants was 53
distributed and the list was provided by the cities of Coon Rapids and Anoka. 54
55
Economic Development Coordinator Steinmetz indicated that Staff plans to interview the three 56
finalists this week and will make a recommendation to the EDA to consider meeting with a final 57
or top consultant. Staff will be asking the EDA to consider doing an informal interview meeting 58
on July 28, 2008 to see if the EDA would like to move forward toward entering into a contract 59
with one of the consultants. 60
61
Commissioner Mueller said that the chart breaks down by Phase I and Phase II and she would 62
like a breakdown of each Phase. 63
64
Economic Development Coordinator Steinmetz indicated that Phase I included branding services 65
and assistance with deciding who Mounds View is and where Mounds View wants to go. Phase 66
II is a combination of a marketing plan and a public communications plan. 67
68
Commissioner Flaherty said that this is a marketing plan not specifically geared toward bringing 69
in business but to bring in new residents and market the City as a good place to locate. 70
71
Economic Development Coordinator Steinmetz provided information on the three top 72
consultants for the EDA to consider. 73
74
Commissioner Flaherty asked where the funding would come from. 75
76
Economic Development Coordinator Steinmetz indicated that there is a line item in the EDA 77
budget for other professional services and that can be used to pay for consultant services. 78
79
Economic Development Coordinator Steinmetz indicated that cities usually look at their 80
marketing plan every three to five years. 81
82
Vice President Stigney said that it surprises him that Staff indicated that a Treasurer was not 83
needed as there were no funds in the EDA and now there is a budget for this. He then said that 84
Mounds View EDA July 14, 2008
Regular Meeting Page 3
he is not interested in paying for a proposal at this time because all he has seen is a cost and not 85
an actual proposal for what the City would get. 86
87
MOTION/SECOND: Mueller/ Flaherty. To Approve Moving Forward with Interviews for the 88
Top Three Candidates. 89
90
Vice President Stigney said that he does not want to interview any of the candidates due to the 91
price range. 92
93
Economic Development Coordinator Steinmetz asked if the EDA would like to review all three 94
proposals and the documentation involved in the process. 95
96
Vice President Stigney indicated he would like to see the pricing of all 10 and would also like a 97
cost benefit analysis as to why the money should be spent. 98
99
Ayes – 3 Nays – 1(Stigney) Motion carried. 100
101
8. REPORTS 102
103
9. NEXT EDA MEETING: Monday, July 28, 2008 at 6:00 p.m. 104
105
10. ADJOURNMENT 106
107
Vice President Stigney adjourned the meeting at 6:50 p.m. 108
109
Respectfully submitted, 110
111
112
Recorded and transcribed by: 113
Joan Lenzmeier, Recording Clerk 114
TimeSaver Off Site Secretarial, Inc. 115
Corrections made by Clerk-Administrator Jim Ericson
PROCEEDINGS OF THE MOUNDS VIEW EDA 1
CITY OF MOUNDS VIEW 2
RAMSEY COUNTY, MINNESOTA 3
4
Regular Meeting 5
September 22, 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 Mueller, and Executive Director Ericson. 15
16
NOT PRESENT: Commissioner Flaherty. 17
18
3. APPROVAL OF AGENDA 19
20
MOTION/SECOND: Mueller/Hull. To Approve the Monday, September 22, 2008 Agenda as 21
Presented. 22
23
Ayes - 4 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 08-EDA-247, a Resolution Authorizing the Exercise of Certain 40
Duties of Treasurer 41
42
Executive Director Ericson explained that State statute requires the appointing of a Treasurer. 43
He then explained that this Resolution allows the EDA to authorize or delegate treasurer duties. 44
Mounds View EDA September 22, 2008
Regular Meeting Page 2
The EDA does not have checks and does not have its own bank account because the City, 45
through its Finance Director, has always controlled and monitored the EDA funds. 46
47
Vice President Stigney said that the Resolution states subject to the Treasurer’s approval and he 48
is wondering if it should state subject to Board approval. 49
50
Attorney Riggs suggested the Resolution be amended to state Treasurer and the Board. 51
52
The Motion and second agreed that the motion includes the previous amendment as discussed. 53
54
MOTION/SECOND: Mueller/Hull. To Approve Resolution Authorizing the Exercise of Certain 55
Duties of Treasurer. 56
57
Ayes – 4 Nays – 0 Motion carried. 58
59
B. Resolution 08-EDA-243, a Resolution Appointing Officers of the Authority 60
61
Executive Director Ericson explained that this Resolution would appoint officers to the 62
Authority. He then said that the EDA could appoint the Officers or, with approval of the 63
Attorney, wait until the new year to do so. 64
65
Attorney Riggs indicated it would be best to make the appointments at this time and redo it for 66
the new year. 67
68
The Authority set President Marty, Vice President Stigney, Treasurer Mueller, and Secretary 69
Hull. 70
71
MOTION/SECOND: Hull/Mueller. To Approve Resolution 08-EDA-243, a Resolution 72
Appointing Officers of the Authority. 73
74
Ayes – 4 Nays – 0 Motion carried. 75
76
8. REPORTS 77
78
There were no reports. 79
80
9. NEXT EDA MEETING: Monday, October 13, 2008 at 6:30 p.m. 81
82
10. ADJOURNMENT 83
84
President Marty adjourned the meeting at 6:52 p.m. 85
86
Mounds View EDA September 22, 2008
Regular Meeting Page 3
87
Respectfully submitted, 88
Recorded and transcribed by: 89
Joan Lenzmeier, Recording Clerk 90
TimeSaver Off Site Secretarial, Inc. 91
Corrections made by President Marty and Executive Director Ercison
PROCEEDINGS OF THE MOUNDS VIEW EDA 1
CITY OF MOUNDS VIEW 2
RAMSEY COUNTY, MINNESOTA 3
4
Regular Meeting 5
October 27, 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 Mueller, Commissioner Flaherty, and Executive Director Ericson. 15
16
NOT PRESENT: None. 17
18
3. APPROVAL OF AGENDA 19
20
MOTION/SECOND: Mueller/Flaherty. To Approve the Monday, October 27, 2008 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. Potential Modification of TIF District #1 for the Removal of the Mermaid 40
Subdivision and Select Senior Housing Parcels. 41
42
Economic Development Specialist Steinmetz provided an over view of the pros and cons of 43
removing the Mermaid subdivision from the District. The Staff recommendation is to leave the 44
Mounds View EDA October 27, 2008
Regular Meeting Page 2
parcels in the District. 45
46
Commissioner Mueller said that the additional funds can be used for the Streets and Utilities 47
Program and removal of the parcels would impact the funding for that project. 48
49
Commissioner Flaherty agreed with Commissioner Mueller and said that there are three TIF 50
Districts and the funds are captured for City-wide improvement. He then said that he would like 51
to leave the parcels in the District. 52
53
Vice President Stigney said that he feels that TIF should be used for its intended purpose to move 54
development forward that would not go without assistance. He then said that he feels the District 55
should end at this time. 56
57
President Marty said that normally he is in agreement with Councilmember Stigney on this but, 58
he would like the District to continue at this point and said that leaving these parcels in the TIF 59
Districts is a difference of $1,694,770 that the City would have access to for improvements for 60
our streets and infrastructure. 61
62
Direction from the Council was to NOT proceed with any parcel de-certifications at this time. 63
64
B. Resolution 08-EDA-248, Authorizing a Modification to the October 2001 65
Development Assistance Agreement with MoundsVista, Inc. 66
67
Economic Development Specialist Steinmetz reviewed Resolution 08-EDA-248 modifying the 68
Development Assistance Agreement with MoundsVista, Inc. She then said that the bonds were 69
$850,000 plus interest at 7.75% and the amount of TIF was $1.2 Million. 70
71
Vice President Stigney asked what happens if MoundsVista cannot establish the TIF amount 72
listed. 73
74
Economic Development Specialist Steinmetz indicated that MoundsVista would need to pay off 75
the bonds to the bond holders and the second option would be that MoundsVista would guarantee 76
any shortfall. The City would have no financial responsibility for this. 77
78
MOTION/SECOND: Stigney/Mueller. To Approve Resolution 08-EDA-248, Authorizing a 79
Modification to the October 2001 Development Assistance Agreement with MoundsVista, Inc. as 80
amended to clarify financial obligations. 81
82
Commissioner Mueller asked whether the assessor would be doing another assessment to ensure 83
the valuations. She then said that the original Resolution from 2001 did not list all five and she 84
would like that corrected. The Authority agreed. 85
86
Mounds View EDA October 27, 2008
Regular Meeting Page 3
President Marty agreed with this, but noted that there are conditions to be met outside of the City 87
with the lending institutions and Ramsey County. 88
89
Ayes – 5 Nays – 0 Motion carried. 90
91
8. REPORTS 92
93
Economic Development Coordinator Steinmetz indicated that Liberty will be closing its doors by 94
the end of the year taking 125 jobs with it. Staff will be working to fill the space. 95
96
Economic Development Coordinator Steinmetz indicated that Staff toured CG Hill & Sons last 97
week. 98
99
9. NEXT EDA MEETING: Monday, November 12, 2008 at 6:30 p.m. 100
101
10. ADJOURNMENT 102
103
President Marty adjourned the meeting at 6:56 p.m. 104
105
Respectfully submitted, 106
Recorded and transcribed by: 107
Joan Lenzmeier, Recording Clerk 108
TimeSaver Off Site Secretarial, Inc. 109
Item Number: 7A
Meeting Date: December 8, 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: Resolution 08-EDA-249 Authorizing a Modification of the Project
Plan for the Mounds View Economic Development Project (Tax
Increment Financing Plan)
Background
Item 7B on tonight’s EDA agenda provides details on a recent application for the Housing
Replacement Program. The program requires that the applicant’s property be included
on a list of parcels eligible for acquisition as part of the EDA’s “Project Plan for the
Mounds View Economic Development Project”.
The EDA’s “Project Plan for the Mounds View Economic Development Project” is
attached for your review. It is a legal document that outlines the EDA’s development and
redevelopment plans as authorized per State Statute. The Project Plan was last modified
by the EDA on June 28, 2004.
The list of parcels in the Project Plan was compiled by City staff based on a windshield
survey. A windshield survey is a visual assessment of property exteriors based on set
criteria.
It is important to note that because the parcels listed in the Project Plan could be acquired
by the EDA, this does not mean that the EDA would buy them or even consider
acquisition.
Discussion
As mentioned above, staff recently received a Housing Replacement Program
application. The house in question is not on the list of parcels mentioned above but it
qualifies as blighted per an inspection recently completed by the City’s Housing Inspector
Jeremiah Anderson. This prompted staff to question whether the EDA should update the
list of eligible properties. As mentioned above, only windshield surveys were used by the
City to place properties on the list as part of the June 28, 2004 Project Plan.
Staff is suggesting that the EDA consider amending the Project Plan to update this list of
eligible properties. This is based on Mr. Anderson’s inspection knowledge and the code
enforcement issues that have occurred at many of the properties.
EDA Item 7A – Modify Project Plan
December 8, 2008
Page 2 of 2
No matter the number of properties, it would take the City’s public financial advisors
(Ehlers & Associates) about the same amount of time to amend the Project Plan in order
to add properties. Therefore, staff asked Mr. Anderson to brainstorm potential properties
that may qualify as blighted. Below are the properties that Mr. Anderson noted, including
the recent Housing Replacement Program application property (in bold).
1. 5066 Irondale Rd
2. 8482 County Rd J
3. 8434 Red Oak Dr
4. 8283 Long Lake Rd
5. 7977 Long Lake Rd
6. 2508 Hillview Rd
7. 7850 Groveland Rd
8. 2287 Terrace Dr
9. 2133 Terrace Dr
10. 2090 Oakwood Dr
11. 5454 Jackson Dr
12. 5433 Adams St
13. 2220 Lambert Ave
14. 2738 County Rd H2
15. 5145 Red Oak Dr
16. 6939 Pleasant View Dr
17. 5054 Silver Lake Rd
18. 5091 Long Lake Rd
This Project Plan modification would need to be completed through the public hearing
process. That would take about eight weeks. Ehlers & Associates estimated that it would
take about ten to fourteen hours of their time (up to $3,000) to assist the City with this
process.
Recommendation
Staff recommends that the EDA adopt the attached Resolution 08-EDA-249. The
Resolution authorizes a modification to the June 28, 2004 Project Plan for the Mounds
View Economic Development Project. The modification would add 5066 Irondale Rd to
the Project Plan and other properties as determined by staff to be blighted. Staff would
use the above listed properties as the basis for determining the properties the EDA
should add to the Project Plan list.
Respectfully submitted,
____________________________
Heidi Steinmetz
Economic Development Specialist
Attachments:
• Resolution 08-EDA-249
• Modification to the Project Plan for the Mounds View Economic Development
Project
Item Number: 7B
Meeting Date: December 8, 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: Resolution 08-EDA-250 Authorizing the Expenditure of Tax
Increment Financing Funds for the Appraisal of 5066 Irondale Road
(For Consideration of Purchase under the EDA’s Housing
Replacement Program)
Background
The EDA created the Housing Replacement Program in 1996. Since that time, the EDA has
been involved with the acquisition and/or demolition of about five homes in Mounds View.
Staff will provide the EDA with a comprehensive program history at the EDA meeting.
The objectives of the program are as follows:
• Replace deteriorating substandard housing on scattered sites throughout Mounds
View with larger, higher value housing designed for owner-occupied families
• Eliminate the blighting influence of substandard housing
• Increase the availability for quality housing for families
The program offers two options to applicants.
1. Demolition assistance provided as a ten year/forgivable deferred loan
2. Acquisition (the EDA will purchase the home and market it to potential buyers)
In July 2007, the EDA amended the program criteria to emphasize demolition as the
preferred option rather than acquisition. The most recent program criteria is attached for
your reference.
EDA Item 7B - HRP
December 8, 2008
Page 2 of 5
Discussion
On November 25, 2008, staff received the attached letter from Steven & Wendy Scharber,
owners of a single-family home located at 5066 Irondale Road in Mounds View. In the
letter, the Scharbers explained the condition of their home and asked the EDA to purchase it
through Option 2 (Acquisition) of the Housing Replacement Program. On December 2,
2008, the Scharbers submitted an additional list of problems with the home, utility payment
records for the past year and a 1958 photo of the home (pictured below).
5066 Irondale Rd
Photo Taken in 1958
Page five of the program criteria states that once an offering letter is received an interior
inspection of the home must occur to establish blight qualification. Mounds View’s Housing
Inspector Jeremiah Anderson completed an exterior and interior inspection of the property
on December 2, 2008. His findings are attached on Mounds View’s “Property Maintenance
Inspection-Single Family Home” form. According to Mr. Anderson, the home qualifies for the
Housing Replacement Program’s blight test primarily because of the home’s failing
foundation.
Although the home now meets the definition of blighted, the home was not included in
Mounds View’s June 28, 2004 “Project Plan” as a potential acquisition. The Housing
Replacement Program requires properties to be on the list to be eligible for the program. It
is important to keep in mind that properties listed in the Project Plan were included based on
exterior assessments only. Mr. Anderson’s interior inspection of the home indicates that this
property qualifies to be added to the list. Staff suggested that the EDA add this parcel to the
list as part of Item 7A on tonight’s EDA agenda.
EDA Item 7B - HRP
December 8, 2008
Page 3 of 5
Below are photos of the home taken on December 3, 2008.
Front View
Side View
Basement Stairway (Foundation Failing)
Brick Veneer Fell Off
Deteriorated Structural Framing
Brick Veneer Crumbling
History of Home
Since the house located at 5066 Irondale Road was built in 1891, staff asked the
Minnesota State Historical Preservation Office (SHPO) and the Ramsey County Historical
Society for information on the home. Neither had information on the house itself but the
County found the following information about the area immediately surrounding the home:
• The 1898 Ramsey plat map of Ramsey County shows the area as the “Ironwork Plat”
of the Iron Works Land Company and contains the small division ‘Irondale’.
• The home is located in one of the very first residentially platted areas in Mounds
View.
• The house was probably the first (or last remaining) in this original plot. Its situation
on the lot indicates that it was likely built on or in an officially surveyed area.
• There was a school in the platted area. As the home in question is located near a
school, the new school probably stands where the old one used to stand.
• The need for housing in the area was probably due to the jobs created by the railroad
stockyards at Butchers Spur. The stockyards were major employers in the area along
with the ice industry and brought many people into that area.
After reviewing the 1958 photo of the home, SHPO does not view the home as
architecturally significant. SHPO has offered to provide a general review the home (free
of charge) to determine if the home holds other forms of historical significance (such as
events that occurred at the home or how the home plays into the historical context of the
area).
Next Steps
As indicated in Item 7A on tonight’s agenda, the EDA cannot proceed with this process
unless the EDA’s authorizes adding this property to the “Project Plan” list of parcels
(because that is a requirement of the Housing Replacement Program). If the property is
added to the “Project Plan” list, the next step in this process is for the EDA to authorize an
appraisal of the property. If the EDA wishes to proceed upon receipt of an appraisal, the
EDA must then authorize staff to negotiate a purchase agreement with the homeowner.
A purchase agreement would be contingent upon the modification of the Project Plan for
the Mounds View Economic Development Project.
Recommendation
Staff recommends that the EDA adopt Resolution 08-EDA-250 Authorizing the
Expenditures of TIF funds for the Appraisal of 5066 Irondale Road.
EDA Item 7B - HRP
December 8, 2008
Page 5 of 5
Respectfully submitted,
____________________________
Heidi Steinmetz
Economic Development Specialist
Attachments:
• Resolution 08-EDA-250
• Housing Replacement Program criteria, July 2007
• Letter from homeowners Steven & Wendy Sharber, received November 25, 2008
• List of visible blight (provided by homeowners), received December 2, 2008
• Homeowners’ 2008 utility payments, received December 2, 2008
• Property Maintenance Inspection-Single Family Home” form
Item Number: 7C
Meeting Date: December 8, 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: Discuss Redevelopment of County Road 10 & Corner of
Woodale Drive
Background
The redevelopment and revitalization of County Road 10 has been a goal of the City
Council for several years. In April 2008, The City Council approved “County Road 10
Redevelopment & Revitalization” as its number two goal.
Most recently, Mounds View has focused its redevelopment efforts on its December 2006
Premium Stop Redevelopment Area Study (completed by DSU/Bonestroo). Pictured
below is the study area, located along the west side of County Road 10 between County
Road H2 and Woodale Drive. The area is 12.3 acres and 12 parcels.
EDA Item 7C - Redevelopment
December 8, 2008
Page 2 of 6
Discussion
Developer Interest
City staff has been working with a developer who is most interested in redeveloping a
portion of the Premium Stop Redevelopment Area located at the corner of County Road
10 and Woodale Drive. This portion consists of 5.7 acres and five parcels. Pictured
below is an aerial of the site.
EDA Item 7C - Redevelopment
December 8, 2008
Page 3 of 6
Pictured below are photos of the individual parcels located within the site.
2310 County Rd 10 (rental home owned by Everest Development)
2300 County Rd 10 (single-family home)
2288 County Rd 10 (single-family home)
2280 County Rd 10 (single-family home)
Corner of County Rd 10 & Woodale Drive
(owned by Everest Development)
EDA Item 7C - Redevelopment
December 8, 2008
Page 4 of 6
Redevelopment Concepts
In 2006, the EDA accepted two redevelopment concepts for this 5.7-acre area (pictured
& described below) as part of the DSU/Bonestoo study for the area. While these
concepts are a starting point, it is important to keep in mind that the concepts have not
been tested for financial feasibility or marketability.
_
Dec. 2006 DSU/Bonestroo Concept D2
New Infill Corporate Offices
• 60,000 SF
• 2 buildings
• 190 parking stalls
• Stormwater management onsite
• Public trail connections
Dec. 2006 DSU/Bonestroo Concept D1
Townhomes
• 20 (2 story) buildings
• Rear garages
• Sidewalks
• Stormwater management onsite
Condos/Apartment Building
• 60 units (3 stories)
• Underground parking
• 41 surface stalls
• Maintain existing trees
EDA Item 7C - Redevelopment
December 8, 2008
Page 5 of 6
Purchase Offers Made
The developer has presented purchase offers to all four property owners located within
this 5.7-acre area. Negotiations are ongoing.
Marketing
At no cost to the EDA, the developer has been marketing the site to the following
companies:
• Staples
• Tires Plus
• Sit-down restaurants
• Dunn Bros.
• Culvers
• White Castle
• Arby’s
• Wendy’s
• Save-a-Lot
• Dollar Tree
It is too early to know which retailer may (or may not) be interested in the site since a site
plan has not been completely formulated. However, the developer told City staff that Tire
Plus has presented an RFP to them for response.
Financial Reality
The financial reality of this potential project is that the asking prices along with
redevelopment costs have made this potential project’s financial “gap” very large. This
“gap” amount includes the following two items:
1. There will be a difference between the final purchase prices and what end users
are willing to pay for “pad ready” sites. End users may pay between $12 − $16
per square foot for “pad ready” sites in Mounds View. The developer told City
staff that their purchase offers were not based on the sellers’ asking prices but on
a realistic sales price (for end users). The difference between the final purchase
prices and what end users are willing to pay is still unknown because the
developer is still negotiating with the sellers.
2. Redevelopment activities add extra costs to a project when compared to
developing raw land. The developer has estimated the following redevelopment
costs for the project:
• $150,000 Demolition
• $150,000 Grading and prep.
• $80,000 Xcel Energy lines to be buried
• $70,000 Ponding
• $100,000 Contingency
• $100,000 Trail and sidewalks ?
• $650,000
EDA Item 7C - Redevelopment
December 8, 2008
Page 6 of 6
Redevelopment 101
As the EDA & EDC discussed at their April 2008 Redevelopment Roundtable,
redevelopment projects often require public assistance. This is because developers are
not willing to purchase property (at prices that include both land and buildings) only to turn
around and remove the existing buildings. The cost to construct new/high value buildings
is cheaper to do on readily available/undeveloped land in nearby communities. As such,
if the EDA wants to see redevelopment on this site in the near future, it appears the EDA
will need to provide financial assistance to the project.
Request
Staff requests direction from the EDA regarding the following:
1. What level of financial assistance (if any) is the EDA willing to provide towards this
potential project? In other words, is the EDA willing to consider assisting the
developer with acquisition and/or redevelopment costs?
2. Is the EDA willing to explore additional redevelopment concepts for this 5.7-acre
project area? If so, what type of land uses would the EDA prefer to see on the
site?
The developer is willing to share his project pro-forma with the EDA at a future meeting.
Respectfully submitted,
____________________________
Heidi Steinmetz
Economic Development Specialist