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HomeMy WebLinkAbout02-14-2005 CITY OF MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY EXECUTIVE SESSION MEETING AGENDA Monday, February 14, 2005 6:30 PM (Revised as of 4:00 pm February 11, 2005) 1. CALL TO ORDER 2. ROLL CALL: President Marty, Vice President Stigney, Commissioner Flaherty, Commissioner Gunn, Commissioner Thomas 3. APPROVAL OF AGENDA 4. CLOSED SESSION A. Discuss, develop and consider an offer for the sale of The Bridges Golf Course property. B. Discuss, develop and consider an offer for the purchase of the Donut Connection proper 5. ADJOURNMENT CITY OF MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY MEETING AGENDA Monday, February 14, 2005 6:30 PM (Revised as of 4:00 pm, Feb 11, 2005) 1. CALL TO ORDER 2. ROLL CALL: President Marty, Vice President Stigney, Commissioner Flaherty, Commissioner Gunn, Commissioner Thomas 3. APPROVAL OF AGENDA 4. APPROVAL OF MINUTES: A. September 27, 2004 Regular EDA Meeting Minutes B. January 24, 2005, EDA Meeting Minutes. 5. CONSENT AGENDA A. Schedule an Executive Session immediately after this Consent Agenda to discuss, develop and consider an offer for the sale of real property commonly known as The Bridges Golf Course. (Verbal Report) B. Schedule an Executive Session immediately after this Consent Agenda to discuss, develop and consider an offer for the purchase of real property commonly known as the Donut Connection. (Verbal Report) 6. EDA BUSINESS-NONE 7. REPORTS-NONE 8. NEXT EDA MEETING: Monday, February 28, 2005 9. ADJOURNMENT PROCEEDINGS OF THE MOUNDS VIEW EDA 1 CITY OF MOUNDS VIEW 2 RAMSEY COUNTY, MINNESOTA 3 4 Regular Meeting 5 January 24, 2005 6 Mounds View City Hall 7 2401 Highway 10, Mounds View, MN 55112 8 6:45 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 MOTION/SECOND: Gunn/Stigney. To Approve the January 24, 2005 Agenda as presented. 20 21 Ayes – 4 Nays – 0 Motion carried. 22 23 4. APPROVAL OF MINUTES 24 25 A. January 10, 2005, Regular EDA Meeting Minutes. 26 27 President Marty made a correction to page 2, line 87, where it should read “President Marty”. 28 He stated it should be added to that paragraph: “President Marty questioned the 820,000 square 29 feet because he had previously heard 500,000 square feet, and Mr. McCombs stated that they had 30 determined for what they needed that they had increased it to 820,000 square feet. 31 32 MOTION/SECOND. Stigney/Flaherty. To approve the Minutes of January 10, 2005 as 33 amended. 34 35 Ayes-4 Nays-0 Motion carried. 36 37 B. January 14, 2005, Special EDA Meeting Minutes. 38 39 President Marty stated that beginning at page 2, line 67, Commissioner Stigney should be 40 referred to as Vice President Stigney throughout. 41 42 President Marty stated that at page 9, line 205, it should state that, “President Marty stated he 43 would like it communicated to Medtronic that they had amended the resolution and expended 44 more city funds in order to speed up the timeframe.” 45 Mounds View EDA January 24, 2005 Regular Meeting Page 2 46 MOTION/SECOND. Gunn/Flaherty. To approve the January 14, 2005 Special EDA Minutes as 47 amended. 48 49 Ayes-4 Nays-0 Motion carried. 50 51 5. CONSENT AGENDA 52 53 A. Consideration of EDA Resolution 05-EDA-200, a Resolution Establishing the 54 2005 EDA Meeting Calendar (Backman) 55 56 Economic Development Coordinator Backman stated that the calendar is paralleling the City 57 Council meetings that occur during the course of the year. 58 59 MOTION/SECOND. Stigney/Flaherty. To approve EDA Resolution 05-EDA-200, Establishing 60 the 2005 EDA Meeting Calendar. 61 62 Ayes-4 Nays-0 Motion carried. 63 64 B. Consideration of EDA Resolution 05-EDA-201, Appointing Two Members of 65 the Economic Development Commission (Backman) 66 67 Economic Development Coordinator Backman stated that there are seven members that are 68 traditionally on the Economic Development Commission, and that is composed of four resident 69 representatives and three business representatives. He stated one of the business representatives, 70 David Fox, has decided that he will not renew. He stated that an application had been received 71 from Jerry Jaker, the Executive Director of the Minnesota Institute of Public Health, which is 72 located on County Highway 10. He stated that another member, Tom Field, whose term had 73 finished on December 31st would like to renew. He is a past Chair of the EDC and served two 74 years in that capacity. 75 76 MOTION/SECOND. Marty/Flaherty. To appoint Jerry Jaker and Tom Field to the Economic 77 Development Commission. Vice President Stigney asked if MIPH was a nonprofit organization. 78 Economic Development Coordinator Backman stated that it is a nonprofit organization that does 79 pay property taxes to the community. He stated that Mr. Jaker has a strong interest in 80 participating in economic development discussions, and in essence he runs the business because 81 he has various people that answer to him. 82 83 Vice President Stigney stated that his concern is that he is working with government dollars, and 84 he asked whether in Coordinator Backman’s view he would be the best person to represent the 85 City as far as business development. 86 87 Mounds View EDA January 24, 2005 Regular Meeting Page 3 Economic Development Coordinator Backman stated that a good chunk of his dollars are from 88 the insurance side of things, and that he deals with a variety of worlds in terms of that. He stated 89 that this is a bit different than the Planning Commission in that those members need to be a 90 Mounds View resident. He stated that a lot of people that run businesses in Mounds View don’t 91 live in Mounds View. 92 93 Vice President Stigney stated that most businesses in Mounds View are trying to make a profit, 94 so they would be more interested in business development. He stated that Mr. Jaker’s 95 willingness to serve is wonderful. He stated that if Coordinator Backman felt that Mr. Jaker 96 would be a good fit for this position, then he didn’t have a problem with it. 97 98 Economic Development Coordinator Backman stated that he had full confidence in Mr. Jaker. 99 100 President Marty stated that he was impressed by Mr. Jaker’s application, resume, and 101 background. 102 103 Ayes-4 Nays-0 Motion carried. 104 105 6. EDA BUSINESS 106 107 A. Resolution 05-EDA-202 Authorizing Payment of Pay-As-You-Go Developer 108 Payments to Red Cent Management, L.L.C; Heartland-Mounds View 109 Common Bond; Bridges Leasing Company; and Kenmark Partnership, 110 L.L.C. 111 112 Economic Development Coordinator Backman stated that twice per year there are payments that 113 go to various projects, and these are developer payments for TIF projects. He stated that they are 114 typically paid the 1st of February and the 1st of August annually. He stated that two of these 115 payments are the final payments, so they will be down to two projects after this payment. 116 117 Vice President Stigney noted that for Sep Manufacturing, it’s listed as $8,123.39, yet in the Just 118 and Correct Claims on page 21 he sees Kenmark at $3,886.24, and he asked why there was that 119 discrepancy. 120 121 Finance Director Hanson stated that that was part principle and part interest, and that the interest 122 is on the next page. 123 124 Commissioner Flaherty asked how much longer it would be on Heartland-Mounds View and the 125 Century Bank. 126 127 Economic Development Coordinator Backman stated that in terms of Silver Lake Point, that goes 128 until the year 2012. He stated that in terms of Bridges Leasing, that would go until February of 129 Mounds View EDA January 24, 2005 Regular Meeting Page 4 2006. He stated that the good news is that certainly frees up TIF dollars for other projects that 130 they can use, so from a TIF financial standpoint, they were pretty strong on that. 131 132 MOTION/SECOND. Gunn/Stigney. To approve Resolution 05-EDA-202 Authorizing Payment 133 of Pay-As-You-Go Developer Payments to Red Cent Management, L.L.C; Heartland-Mounds 134 View Common Bond; Bridges Leasing Company; and Kenmark Partnership, L.L.C. 135 136 Ayes-4 Nays-0 Motion carried. 137 138 7. REPORTS 139 140 A. Discussion regarding the Hardee’s Restaurant Redevelopment and Caribou 141 Coffee (Backman) – verbal report. 142 143 Economic Development Coordinator Backman stated that the volunteer representatives on the 144 Economic Development Commission had ranked various projects in order of importance, and 145 that they had ranked the Medtronic Corporate Campus as number one. Number two is the 146 Skyline Motel Acquisition and Redevelopment. Number three is the Pack Building 147 Redevelopment. Number four is the Hardee’s Restaurant Redevelopment and Caribou Coffee. 148 He provided the Commission with a full list of the other projects. 149 150 Economic Development Coordinator Backman stated that Hardee's is no longer having an 151 interest in their location, and there has been a buy-out that was accomplished during the last 152 week of December. He stated that there has a settlement regarding termination of Hardee’s lease. 153 He stated that the western half of the building will be leased by Caribou Coffee. He stated that it 154 would take a total of $376,000 to bring the building up to the standard they would want to have. 155 He stated if you subtract out the Hardee’s buyout amount of $226,000 and you look at the pay 156 back period, they are calculating that to be about six years. He stated that Caribou Coffee would 157 like to have a payback period of three years. He stated that the cost difference or gap is 158 $109,000. He stated he had brought this topic up to the EDC last Friday, and they had adopted a 159 motion unanimously to move ahead and pursue all options, including potentially TIF and other 160 types of assistance, but there was no dollar amount. 161 162 Vice President Stigney stated it sounded to him like Caribou wanted to come in, but they want 163 some assistance. He asked why they couldn’t work with their own money. 164 165 Economic Development Coordinator Backman stated that without assistance, he thinks they 166 would end up with very little enhancement to the building and the site. 167 168 Vice President Stigney asked who was to say whether they wouldn’t do more things without 169 assistance. 170 171 Mounds View EDA January 24, 2005 Regular Meeting Page 5 Economic Development Coordinator Backman stated that he had seen another location in 172 Vadnais Heights that was a converted Hardee’s restaurant, and it still looks like a Hardee’s 173 restaurant. 174 175 Vice President Stigney stated he had some reservations, and he asked how it was going to be paid 176 back; whether it was going to be a pay-as-you -go or a tax abatement or a grant. 177 178 Economic Development Coordinator Backman stated they hadn’t gotten down to specifics, but 179 they have discussed a low interest loan as one option, and there could possibly be a combination 180 of abatement or a small grant in there. He stated they hadn’t settled on what the development 181 agreement would look like, but they have been having discussions, and they are interested in 182 some assistance. 183 184 Commissioner Gunn asked whether TIF dollars were supposed to be used for helping new 185 businesses. 186 187 Economic Development Coordinator Backman indicated that they were. 188 189 Commissioner Flaherty stated he had a problem with going back to the people and asking them 190 for $109,000 when they just had a tax levy that was double digits. He stated that this is an empty 191 building sitting in a prime location, and they need to do something with it. He stated he thought 192 they needed to take all avenues they can to see what they can do as far as alleviating any tax 193 burden on the taxpayers. 194 195 Economic Development Coordinator Backman stated that they are not talking about General 196 Fund dollars, but TIF dollars, and that TIF monies are separate and accounted for in a different 197 way. He stated that in terms of TIF funds, there is a good fund balance. 198 199 Vice President Stigney stated that he would be more inclined if they were going to borrow it from 200 the City and pay it back. 201 202 President Marty stated that a three-year pay back period had been brought up, and he thought this 203 should be brought back to the EDA after they had talked to Caribou Coffee more, and possibly 204 look at using TIF funds with a three-year payback period. He stated that by giving some 205 assistance with pay-as-you-go with a three-year payback period, they would open the door to get 206 some redevelopment and upgrade and similar upgrade in Mounds View Square. 207 208 Commissioner Gunn stated that she agreed. 209 210 Bill Werner, 2765 Sherwood Road, stated that he was there when Pasture Enterprises opened that 211 operation, and one of the things that they had promised was that the north end of the property 212 was going to be attractive to the residents on the north side, and they never did a thing with it, 213 Mounds View EDA January 24, 2005 Regular Meeting Page 6 and had put garbage cans out there and so on, so he didn’t have much faith in him doing anything 214 more than he had done in the past. 215 216 Economic Development Coordinator Backman stated that No. 5 was the Mounds View Square 217 Redevelopment Market Feasibility Study, and he thought there would be other things that happen 218 this year that may encourage them to look at redevelopment. He stated that it had been bantered 219 about at the EDC level of what the highest and best use would be or market feasibility study. He 220 stated it would be nice to have a niche grocery store or other services that they do not have in the 221 community. He stated that he agreed that there has not been a lot of attention in terms of the 222 exterior of the facility. He stated that perhaps this is one way to get the foot in the door and get 223 them motivated to do some other things. 224 225 President Marty stated perhaps Coordinator Backman could convey some of this discussion at the 226 EDA meetings. 227 228 Economic Development Coordinator Backman stated that he would. 229 230 President Marty stated that No. 8, Exploration of Hidden Hollow Development Phase Two, was 231 new to him. 232 233 Economic Development Coordinator Backman stated that a number of the things on the list may 234 be new to everyone, and they were trying to think out of the box a little bit about different ideas 235 of what might happen both in terms of commercial, industrial, as well as residential. He stated 236 he wouldn’t be surprised if the majority of the 17 homes planned were either under construction 237 or built by the end of this year. He stated that Procast Homes has been a good developer to work 238 with. He stated that there is some other land in that area, and he thought Velmier would love to 239 do a phase two, whether it’s adjacent there or elsewhere along the corridor. He stated they had 240 received a letter from them stating that they had enjoyed working with the City and would like to 241 do further work here. 242 243 President Marty asked if it wasn’t Don Norquist who was the developer there. 244 245 Economic Development Coordinator Backman stated that there were several people that were 246 part of the team that was working with Procraft Homes, including Gary Nordness being one 247 element of the team. 248 249 Commissioner Gunn said not to lose this one. 250 251 8. NEXT EDA MEETING: Monday, February 14, 2005 252 253 Mounds View EDA January 24, 2005 Regular Meeting Page 7 9. ADJOURNMENT 254 255 President Marty adjourned the meeting at 7:15 p.m. 256 257 Respectfully submitted, 258 259 Recorded and transcribed by: 260 261 Sheree Theobald 262 TimeSaver Off Site Secretarial, Inc. 263 264 PROCEEDINGS OF THE MOUNDS VIEW EDA 1 CITY OF MOUNDS VIEW 2 RAMSEY COUNTY, MINNESOTA 3 4 Regular Meeting 5 September 27, 2004 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, Quick, and Linke 14 15 NOT PRESENT: (Marty arrived late). 16 17 3. APPROVAL OF AGENDA 18 19 MOTION/SECOND: Gunn/Quick. To Approve the September 27, 2004 Agenda as Presented. 20 21 Ayes – 4 Nays – 0 Motion carried. 22 23 4. APPROVAL OF EDA MINUTES 24 25 A. September 13, 2004 Minutes 26 27 MOTION/SECOND: Stigney/Gunn. To Approve the Minutes of September 13, 2004 as 28 Presented. 29 30 Ayes – 4 Nays – 0 Motion carried. 31 32 5. CONSENT AGENDA 33 34 None. 35 36 6. EDA BUSINESS 37 38 A. Resolution 04-EDA-196 Authorizing the Selection of a Land Surveyor to 39 Conduct a Boundary Survey and Elevations for the Bridges Golf Course 40 Redevelopment Project. 41 42 Economic Development Coordinator Backman stated that the City has taken several steps that 43 are important to gather information critical for any potential redevelopment to occur, including 44 the title commitment research, the wetland delineation study, the AUAR, and the appraisal. He 45 Mounds View EDA September 27, 2004 Regular Meeting Page 2 stated that an accurate location of the parcel boundaries and topography is necessary to assure the 46 end user that there are no gaps in ownership or encroachments. He stated the City Attorney in his 47 September 7, 2004, Memo strongly recommended the City conduct a survey of all the property. 48 49 50 Economic Development Coordinator Backman stated that five proposals have been received 51 from qualified firms, ranging from $7,900 to $29,000, with E. G. Rud and Sons of Circle Pines 52 submitting the lowest bid. He stated that Staff recommends authorizing them to conduct the 53 boundary survey and elevations at a cost not to exceed $8,300. 54 55 Commissioner Quick asked whether this wasn’t done when the golf course was developed. 56 57 President Linke stated that he believed that it was, but that it was quite old, if it was. 58 59 Director Ericson stated that an exhaustive search had been conducted, and they had been unable 60 to find any survey of the golf course. 61 62 Commissioner Quick asked why they didn’t have it. He stated that nobody has cared to put any 63 money into a filing program so that everything could be kept track of. 64 65 Commissioner Stigney asked why they were recommending that it not exceed $8,300 instead of 66 the$7,900 that had been quoted. 67 68 Economic Development Coordinator Backman stated that an additional amount is typically 69 added in case there are additional costs that weren’t anticipated. He stated that he expects they 70 will come in on budget, but if there is an unanticipated cost, it will be covered, and they generally 71 add a couple of percent more to the figure. 72 73 Commissioner Quick asked whether they could sell that land, and that he was referring to the 74 MnDOT property. 75 76 City Attorney Riggs stated that the City Staff is working on dealing with the right of reverter 77 deed restriction. He stated that you can always quit claim deed something away, but whether 78 somebody can develop it is another issue, and that to have clean title, there are obviously some 79 steps that need to occur. 80 81 Commissioner Quick asked if there weren’t some strings attached to that piece from MnDOT. 82 83 City Attorney Riggs stated that that deed restriction was what he was referring to. 84 85 Commissioner Quick asked whether MnDOT has some say in whether they can sell that property 86 or not. 87 Mounds View EDA September 27, 2004 Regular Meeting Page 3 88 (Commissioner Marty arrived at the meeting.) 89 90 City Attorney Riggs stated that it has been 15 years since the deed was originally executed, and 91 the question at this point is who is the appropriate entity to deal with, but that it was likely 92 MnDOT. He stated that it had been a situation where they had not needed the land. He stated 93 there was typically a procedure that they follow for private entities, and it’s a bidding process, but 94 for municipalities like the City, there is an ability to get that land for certain purposes, and that 95 the City had acquired it via special legislation. 96 97 President Linke stated that an opinion had been requested from the Attorney General’s Office. 98 99 Commissioner Quick asked if that had been received yet. 100 101 President Linke stated that he doubted it because it’s only been there about a week. 102 103 City Attorney Riggs stated he and the City Administrator had discussed it today, and they are 104 working on it. 105 106 President Linke asked whether it had gone in yet. 107 108 City Attorney Riggs stated that it hadn’t, and that they may not get an opinion on a question such 109 as that because he had opined what it is, and they typically will say that the City has a City 110 Attorney who can opine on that, and that there is a case pretty directly on point, and that had been 111 in his original Memorandum to the City Council. He stated that it would likely be MnDOT that 112 they would be dealing with ultimately on that parcel. 113 114 Commissioner Quick asked if they have a buyer. 115 116 Economic Development Coordinator Backman stated that they have been working with CRESA 117 Partners, but that they don’t have a purchase agreement. He stated there was strong interest on 118 the part of the end user. He stated that on Friday they had received a site plan showing where the 119 buildings would go, so they are making progress. 120 121 President Linke stated that the EDA has not decided to sell that property yet either. 122 123 MOTION/SECOND. Marty/Gunn. To adopt Resolution 04-EDA-196, Authorizing the 124 Selection of a Land Surveyor to Conduct a Boundary Survey and Elevations for the Bridges Golf 125 Course Redevelopment Project, at a cost not to exceed $8,300. 126 127 Commissioner Quick stated that they didn’t know whether they could sell it, and they didn’t 128 know if the constituency wants them to sell it. He stated that there had been a 90 percent 129 Mounds View EDA September 27, 2004 Regular Meeting Page 4 approval when they had bought it, and he would like to know what the residents want done with 130 the property. He stated he had done some sampling and received some frowns when he talked 131 about selling the golf course. He stated he couldn’t see spending this money without knowing 132 whether it was being spent wisely. 133 134 Commissioner Stigney stated he thought it was money well spent, and that it would offer a big 135 advantage to the tax base rather than draining it at a loss, and that that was one of the things that 136 they are there to look at, and he is all for proceeding with this. 137 138 Commissioner Marty stated that unless they move forward with this, they will not know what the 139 possibilities or ramifications are, and that he felt it was their responsibility to at least explore the 140 options available. 141 142 Commissioner Gunn stated she agreed with Commissioners Stigney and Marty. 143 144 President Linke stated that he was of the same mind as Commissioner Quick; however, he was 145 looking at the cost, and since they didn’t have a survey of that property, it would be a good idea 146 to get it anyway. He stated he had let everybody know how he felt about the other expenditures, 147 but he would be voting for this one. 148 149 Ayes-4 Nays-1 (Quick) Motion carried. 150 151 7. REPORTS 152 153 A. Update of the Status of the AUAR being undertaken by RLK (verbal report.) 154 155 Economic Development Coordinator Backman stated that the RLK team has been moving 156 forward with different aspects of the review or assessment process. He stated a traffic count is 157 ongoing for the different areas along County Road J., etc. He stated a meeting is being setting up 158 for all parties that would be interested in the potential improvements pertaining to the areas 159 including Coral Sea, County Road J, and the interchange of County Road J and 35W. 160 161 Economic Development Coordinator Backman stated he had just received the commercial 162 appraisal, and that it would be copied for the Commissioners. He stated that the appraisal for the 163 developed area of the golf course was just shy of $11 million. 164 165 8. NEXT EDA MEETING: Monday, October 11, 2004, 6:30 p.m. 166 167 9. ADJOURNMENT. 168 169 President Linke adjourned the meeting at 6:47 p.m. 170 171 Mounds View EDA September 27, 2004 Regular Meeting Page 5 Respectfully submitted, 172 173 Recorded and transcribed by: 174 175 Sheree Theobald 176 TimeSaver Off Site Secretarial, Inc. 177 178