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HomeMy WebLinkAbout01-24-2005 CITY OF MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY MEETING AGENDA Monday, January 24, 2005 6:30 PM 1. CALL TO ORDER 2. ROLL CALL: President Marty, Vice President Stigney, Commissioner Flaherty, Commissioner Gunn 3. APPROVAL OF AGENDA 4. APPROVAL OF MINUTES A. January 10, 2005 EDA Meeting Minutes B. January 14, 2005 Special EDA Meeting Minutes 5. CONSENT AGENDA A. Consideration of EDA Resolution 05-EDA-200, a Resolution Establishing the 2005 EDA Meeting Calendar (Backman) B. Consideration of EDA Resolution 05-EDA-201, Appointing Two Members of the Economic Development Commission (Backman) 6. EDA BUSINESS A. Resolution 05-EDA-202 Authorizing Payment of Pay-As-You-Go Developer Payments to Red Cent Management, L.L.C; Heartland-Mounds View Common Bond; Bridges Leasing Company; and Kenmark Partnership, L.L.C. 7. REPORTS A. Discussion regarding the Hardee’s Restaurant Redevelopment and Caribou Coffee (Backman)-verbal report 8. NEXT EDA MEETING: Monday, February 14, 2005 9. ADJOURNMENT PROCEEDINGS OF THE MOUNDS VIEW EDA 1 CITY OF MOUNDS VIEW 2 RAMSEY COUNTY, MINNESOTA 3 4 Regular Meeting 5 January 10, 2005 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: Stigney, Gunn, Flaherty and Marty 14 15 NOT PRESENT: None. 16 17 3. APPROVAL OF AGENDA 18 19 Economic Development Coordinator Backman stated under Item 7, Reports, there would be two 20 representatives from Medtronics who would give a short presentation. 21 22 MOTION/SECOND: Stigney/Gunn. To Approve the January 10, 2005 Agenda as amended. 23 24 Ayes – 4 Nays – 0 Motion carried. 25 26 4. APPROVAL OF EDA MINUTES 27 28 None. 29 30 5. CONSENT AGENDA 31 32 None. 33 34 6. EDA BUSINESS 35 36 A. Resolution 04-EDA-198 Authorizing Expenditure to RLK-Kuusisto, Ltd., for 37 Additional Services as Outlined on Request for Design Change No. 2 38 Associated with the Bridges Redevelopment Site Areawide Urban Alternative 39 Review (AUAR). 40 41 Economic Development Coordinator Backman stated that on September 13th the Mounds View 42 Economic Development Authority authorized the selection of RLK Kuusisto to undertake the 43 AUAR for the Bridges Redevelopment project, and that this was intended to look at parameters 44 that are related to redevelopment such as transportation, public services, environmental, et cetera. 45 Mounds View EDA January 10, 2005 Regular Meeting Page 2 He stated that it had been published on November 17th, and there is a 30-day comment period for 46 various agencies to comment regarding the draft AUAR. He stated that staff is requesting an 47 amendment to the RLK Kuusisto contract that would facilitate the amendment application that 48 needs to be submitted to the Met Council. He stated that staff recommends that the EDA adopt 49 this Resolution, which authorizes the expenditure to RLK for additional services as shown in 50 Change No. 2 associated with the Bridges development at a cost not to exceed $19,855. He 51 stated that after the discussion at the Work Session on January 3, he had gone back to RLK to see 52 if the cost could be reduced, and he was able to get a lower dollar amount for the meetings. He 53 stated that if there are fewer meetings, then that would generate a lower cost to the City. He 54 stated that this cost would be paid through the City’s EDA fund. 55 56 Commissioner Flaherty asked what the fee was per hour. 57 58 City Administrator Ulrich stated that it’s at a rate of $150 per hour. 59 60 Economic Development Director Backman stated that if they do not go to all of these meetings, 61 then it would be less. 62 63 MOTION/SECOND. Stigney/Marty. To waive the reading and approve Resolution 64 04-EDA-198 Authorizing Expenditure to RLK Kuusisto, Ltd., for Additional Services as 65 Outlined on Request for Design Change No. 2 Associated with the Bridges Redevelopment Site 66 Areawide Urban Alternative Review (AUAR). 67 68 Ayes-4 Nays-0 Motion carried. 69 70 7. REPORTS 71 72 Economic Development Coordinator Backman introduced Rodger McCombs and Donn 73 Hagmann from Medtronics. 74 75 Rodger McCombs, Vice President of Workplace Solutions for Medtronics, stated that he felt this 76 was an exciting project, and it was certainly an option that they were seriously considering. He 77 stated that they have 7,000 employees in the Twin Cities area, and grow 250-300 employees each 78 year. He stated they have 33,000 employees worldwide. He stated that they do about $9.1 79 billion in annual sales. He stated that this project would support in the first phase about 820,000 80 square feet, and there would be about 3,000 employees at this site, so it would be home to one of 81 their largest business units. He stated that Medtronics is very strong in community relations, and 82 they recently celebrated the 25th year anniversary of the Medtronic Foundation, which has 83 provided millions of dollars back into the communities where it has its businesses to support 84 such things as science and education. 85 86 Mayor Marty announced that there is an opening on the EDC, and applications are available at 87 Mounds View EDA January 10, 2005 Regular Meeting Page 3 City Hall. 88 89 8. NEXT EDA MEETING: Monday, January 24, 2005, 6:30 p.m. 90 91 9. ADJOURNMENT 92 93 President Marty adjourned the meeting at 6:43 p.m. 94 95 Respectfully submitted, 96 97 Recorded and transcribed by: 98 99 Sheree Theobald 100 TimeSaver Off Site Secretarial, Inc. 101 102 103 104 PROCEEDINGS OF THE MOUNDS VIEW EDA 1 CITY OF MOUNDS VIEW 2 RAMSEY COUNTY, MINNESOTA 3 4 Special Meeting 5 January 14, 2005 6 Mounds View City Hall 7 2401 Highway 10, Mounds View, MN 55112 8 4:30 P.M. 9 10 11 1. CALL MEETING TO ORDER 12 13 2. ROLL CALL: Stigney, Flaherty, and Marty 14 ABSENT: Gunn 15 16 3. APPROVAL OF AGENDA 17 18 MOTION/SECOND: Flaherty/Stigney. To Approve the January 14, 2005 Agenda as Presented. 19 20 Ayes – 3 Nays – 0 Motion carried. 21 22 4. APPROVAL OF EDA MINUTES 23 24 None. 25 26 5. CONSENT AGENDA 27 28 None. 29 30 6. EDA BUSINESS 31 32 A. Resolution 05-EDA-199 Authorizing Staff to Arrange for an Appraisal of the 33 Outdoor Signs as part of the Bridges Redevelopment Project. 34 35 Economic Development Coordinator Backman stated the City Administrator and himself had 36 met with Scott Riggs and Bob Lindall of Kennedy and Graven regarding the Medtronic project 37 and the removal of some or all of the outdoor signs at the Bridges Golf Course and the appraisal 38 of the signs. He stated that the proposals are $13,000 and $18,000, with Patchen, Mesner & 39 Dodd submitting the lowest bid. He stated that the estimated completion date is March 15, 2005. 40 He stated that he has had discussions with Jason Mesner to see if they could complete the 41 appraisals in a quicker fashion, and they were able to rearrange their schedule to be able to 42 complete it two weeks earlier, but it would cost $14,500 instead. 43 44 Commissioner Flaherty asked what the appraisals would entail besides appraising the physical 45 Mounds View EDA January 14, 2005 Special Meeting Page 2 aspect of the signs. 46 . 47 Economic Development Director Backman stated that they would also be evaluating the leases. 48 49 Commissioner Flaherty asked whether they would also value what Clear Channel would require 50 of the City to get out of the lease. 51 52 Economic Development Director Backman stated that they would be looking at a variety of 53 aspects, and that is why they were interacting with Kennedy and Graven as well. 54 55 President Marty asked whether the signs were being looked at individually since there was 56 speculation that possibly all the signs would not have to go. 57 58 Economic Development Director Backman stated that he had asked for proposals on one, two, 59 and all six billboards. 60 61 President Marty asked if the appraisal would look at each sign’s purported value and the cost of 62 the signs themselves. 63 64 Economic Development Director Backman stated that it would be both. 65 66 Commissioner Stigney asked whether Clear Channel had come out with any figures or whether 67 they were going to. 68 69 Economic Development Director Backman stated that he would have to defer to City Attorney 70 Riggs on that issue. 71 72 City Attorney Riggs stated that the discussions hadn’t gone that far. He stated that they had 73 information from Clear Channel showing what they had spent on the signs, what they believe the 74 income will be, and what they believe the City will received from the signs, so they had a pretty 75 good baseline. He stated that he assumed that they would do something like that. 76 77 Commissioner Stigney asked what the next step would be. 78 79 City Attorney Riggs stated it would be to figure out what signs could remain or be relocated so 80 that Clear Channel is still happy, and so the City and the EDA can move forward with the 81 project. 82 83 Commissioner Stigney asked whether all the bases were being covered by this appraisal or 84 whether something else would need to be done in the future. 85 86 City Attorney Riggs stated that conceivably something could come up, but that this would 87 Mounds View EDA January 14, 2005 Special Meeting Page 3 provide a good baseline. 88 89 President Marty asked whether all the signs were up yet. 90 91 Economic Development Director Backman stated that there are structures on all six sites, but 92 they are not fully done. 93 94 Commissioner Flaherty stated his concern over spending $14,500 on appraisals when they 95 haven’t received a proposal yet from Medtronic. He stated his concern over the increase there 96 has been in the taxes for the residents of Mounds View. 97 98 Economic Development Director Backman stated that Medtronic had attended and spoke at the 99 last City Council meeting, so that had been a good sign. He stated that both sides were spending 100 money on this project, and that the AUAR was a process that needed to be done whether it’s for 101 this project or another project. He stated that Medtronic had hired SRF to do a traffic analysis. 102 103 President Marty asked whether this cost could be put into the purchase price for the land. 104 105 Economic Development Director Backman stated that a variety of things could be placed into a 106 development agreement such as this. He stated that the expenditure was TIF eligible, and that 107 the TIF funds are in good shape. He stated they were just beginning the process to discuss what 108 elements could be placed in a development agreement with Medtronic. 109 110 President Marty asked if it was necessary to complete the appraisal two weeks early with a higher 111 price tag. 112 113 Economic Development Director Backman stated that it was necessary, and that there are a lot of 114 aspects to this $65 million project. He stated that Medtronic would like to begin construction in 115 September. He stated that he was working on a chart to determine when various issues need to 116 be accomplished. He stated that there had been discussions regarding accomplishing the 117 development agreement by the latter part of March, so these appraisals were needed by the end of 118 February. 119 120 Commissioner Stigney asked if the appraisals would be time specific. 121 122 Economic Development Director Backman stated that the appraisals would be like a snapshot in 123 time. 124 125 City Attorney Riggs stated that it would be relevant for the time period they were talking about 126 here, but in two years they would have a basis to work off of from it. 127 128 Commissioner Stigney stated that the size and scope of this project is a once in a lifetime 129 Mounds View EDA January 14, 2005 Special Meeting Page 4 opportunity, and that the Council should fully pursue it to whatever means they can. He stated 130 that the whole purpose of TIF money is for economic development, and what larger project could 131 there be in Minnesota right now than this particular project. 132 133 President Marty stated that that was true, but they had had that experience with NCR where the 134 City had spent a lot of money when they didn’t have a purchase agreement, and NCR had gone 135 elsewhere. He stated his concern that Medtronic would go elsewhere if the State decided they 136 couldn’t expand the bridge from two to four lanes going across 35W. 137 138 Commissioner Stigney stated that it was important to get this appraisal for any potential 139 development on this site, whether it was Medtronic or another company. 140 141 Commissioner Flaherty stated that this was being done for Medtronic. 142 143 Commissioner Stigney stated that the AUAR would be good for 20 years. 144 145 Commissioner Flaherty stated that he had no problem with the AUAR because they needed to see 146 what the potential of that area was. He stated he was looking for something concrete. 147 148 Commissioner Stigney stated that what is concrete is how much this project would increase the 149 tax base for Mounds View. He stated that right now they are getting absolutely nothing. 150 151 Commissioner Flaherty stated he was not against this project; he just wanted to see more 152 information on it. 153 154 Economic Development Director Backman stated that they are trying to get that information as 155 quickly as possible. He stated that other developers have approached the City, and he has 156 interacted with them and provided them with information. He stated if the project with 157 Medtronic didn’t go through, he would be negotiating with others. He stated that the State is 158 seriously looking at the interchange of 35W and County Road J, and they have awarded a 159 $100,000 contract for doing additional evaluations encompassing that intersection. 160 161 President Marty stated that the increase in City taxes was due in large part to the government 162 assistance cuts and the referendum for the police officers. He stated that there are hard decisions 163 that the Council has to make, and they are trying to figure out ways to ease the tax burden in 164 Mounds View. He stated that if this particular deal doesn’t work, probably just an update on this 165 appraisal would need to be done in the future at a nominal cost. 166 167 City Administrator Ulrich stated that this is an action that is more specific to Medtronic because 168 it’s at their request. He stated that the meeting on January 3rd was really the first time the 169 Council had had an opportunity to hear about this proposal in more detail. He stated that this 170 may or may not be valuable for a future project. He stated that they want to know what their risk 171 Mounds View EDA January 14, 2005 Special Meeting Page 5 is going into this negotiation regarding the billboard costs. He stated that this will be a good 172 investment for going into negotiations, and it will help to protect the City. 173 174 President Marty stated that they had been told how much they would get for the land from 175 Medtronic, but they don’t know the cost of getting out of the billboard lease or removing the 176 billboards, so until they have that piece of information, they don’t really know what it’s going to 177 cost the City. 178 179 Commissioner Stigney stated that it’s geared toward trying to respond to Medtronic, but he could 180 see further benefit to it if there were negotiations with others in the future. 181 182 President Marty asked if Commissioner Gunn had commented on this. 183 184 Economic Development Director Backman stated that she was aware of the meeting, but he 185 hadn’t received any comment from her. 186 187 Commissioner Flaherty stated that this project is a big opportunity for the City of Mounds View, 188 and he understands the need for expenditures, but he wanted to get across that the Commission 189 and Council are going to be asking these questions. 190 191 Economic Development Director Backman stated that during his discussions with three other 192 developers the signs had been mentioned, so they would need to revisit this issue if this project 193 didn’t go through, so he viewed this appraisal as an investment. 194 195 President Marty stated that the reason they brought the billboards in is because the golf course 196 wouldn’t bring anything in until 2017. He stated he was not a fan of billboards, but they had to 197 figure out a way to pay off the golf course without saddling the citizens. He asked if it would be 198 appropriate to amend the Resolution to reflect a cost not to exceed $15,000 in case there were 199 any extra last minute costs. 200 201 Economic Development Coordinator Backman stated that that would be fair. 202 203 President Marty stated he would like it to be communicated to Medtronic that they had amended 204 the Resolution in order to speed up the timeframe. 205 206 Economic Development Coordinator Backman stated he would communicate that both verbally 207 and in writing. 208 209 MOTION/SECOND. Stigney/Flaherty. To adopt Resolution 05-EDA-199, Authorizing Staff to 210 Arrange for an Appraisal of the Outdoor Signs as part of the Bridges Redevelopment Project, at a 211 cost not to exceed $15,000. 212 213 Comment [JE1]: hey—he’s back to being a coordinator! Mounds View EDA January 14, 2005 Special Meeting Page 6 Ayes-3 Nays-0 Motion carried. 214 215 7. REPORTS 216 217 8. NEXT EDA MEETING: Monday, January 24, 2005, 6:30 p.m. 218 219 9. ADJOURNMENT. 220 221 President Marty adjourned the meeting at 5:20 p.m. 222 223 Respectfully submitted, 224 225 Recorded and transcribed by: 226 227 Sheree Theobald 228 TimeSaver Off Site Secretarial, Inc. 229 230 231 232 RESOLUTION NO. 05-EDA-200 CITY OF MOUNDS VIEW COUNTY OF RAMSEY STATE OF MINNESOTA RESOLUTION SETTING 2005 MEETING DATES FOR EDA MEETINGS WHEREAS, the EDA may meets twice monthly prior to each regularly scheduled City Council meeting, and; WHEREAS, EDA meetings have been proposed for 2005 as shown on the attached Exhibit A. NOW, THEREFORE, BE IT RESOLVED that the EDA does hereby set the 2005 meeting calendar as shown in Exhibit A. Adopted this 24th day of January, 2005 __________________________________ Rob Marty, EDA President ATTEST: ___________________________________ Kurt Ulrich, Executive Director (SEAL) EXHIBIT A 2005 EDA Regular Meeting Schedule REGULAR MEETINGS January 10 January 14 (Special Meeting) January 24 February 14 February 28 March 14 March 28 April 11 April 25 May 09 May 23 June 13 June 27 July 11 July 25 August 08 August 22 September 12 September 26 October 10 October 24 November 14 November 28 December 12 December 27 (Tuesday) RESOLUTION NO. 05-EDA-201 CITY OF MOUNDS VIEW COUNTY OF RAMSEY STATE OF MINNESOTA RESOLUTION APPOINTING TWO MEMBERS OF THE MOUNDS VIEW ECONOMIC DEVELOPMENT COMMISSION WHEREAS, the Economic Development Commission acts as an advisory commission to the Economic Development Authority on matters that relate to fostering a positive economic climate, encouraging economic development, and enhancing the tax base of the City; and, WHEREAS, the Economic Development Commission is composed of three business representatives and four residents; and, WHEREAS, Chapter 408.03, subdivision 1 of the Mounds View Code, entitled Economic Development Commission, Composition, provides that Commission members shall be appointed by the Authority President with the approval of the Economic Development Authority Board of Commissioners; and, WHEREAS, the term for Commissioner Tom Field (resident representative), expired on December 31, 2004, and Mr. Field has expressed a strong interest in continuing to serve on the Economic Development Commission; and, WHEREAS, the term for Commissioner David Fox (business representative), expired on December 31, 2004, and Mr. Fox does not wish to continue on the Commission; and WHEREAS, Gerald (Jerry) Jaker has expressed a strong interest in serving as a business representative on the Economic Development Commission. NOW, THEREFORE, BE IT RESOLVED that the Economic Development Authority of the City of Mounds View hereby appoints Mr. Tom Field, and Mr. Gerald Jaker to the Economic Development Commission for three-year terms expiring December 31, 2007. Adopted this 24th day of January 2005 ______________________________________ Rob Marty, EDA President ATTEST: ___________________________________ Kurt Ulrich, Executive Director (SEAL) RESOLUTION NO. 05-EDA-202 MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY COUNTY OF RAMSEY STATE OF MINNESOTA RESOLUTION AUTHORIZING PAYMENT OF PAY-AS -YOU-GO DEVELOPER PAYMENTS TO RED CENT MANAGEMENT, LLC; HEARTLAND-MOUNDS VIEW COMMON BOND; BRIDGES LEAS ING COMPANY; AND KENMARK PARTNERSHIP,LLP. It is hereby resolved by the Board of Commissioners (the “Board”) of the Mounds View Economic Development Authority (the “Authority”) as follows: WHEREAS, the EDA has entered into pay-as-you -go development agreements on six properties with the developers of those properties; and, WHEREAS, second half payments for Pay 2004 regarding four of these agreements are due on February 1st; and, WHEREAS, payment of $24,232.96 to Red Cent Management, LLC (The Everest Group), for the Building N project is now appropriate; and, WHEREAS, payment of $30,680.74 to Heartland-Mounds View Common Bond for the Silver Lake Pointe project is now appropriate; and, WHEREAS, payment of $27,423.00 to 21st Century Bank on behalf of Bridges Leasing Company for the Midwest I.V. project is now appropriate; and, WHEREAS, payment of $8,123.39 to Kenmark Partnership, LLP for the Zep Manufacturing project is now appropriate. NOW THEREFORE BE IT RESOLVED, that the Mounds View Economic Development Authority does hereby approve payments of $24,232.96 to Red Cent Management, LLC, $30,680.74 to Heartland-Mounds View Common Bond, $27,423.00 to 21st Century Bank on behalf of Bridges Leasing, and $8,123.39 to Kenmark Partnership under pay-as-you-go development agreements. Adopted by the Board of Commissioners of the Mounds View Economic Development Authority this 24th day of January, 2005. _______________________________ Rob Marty, President ATTEST: ________________________________ Kurt Ulrich, Executive Director (seal)