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Home My WebLink About04-26-2004 CITY OF MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY MEETING AGENDA Monday, April 26, 2004 6:30 PM 1. CALL TO ORDER 2. ROLL CALL: President Linke, Vice President Stigney, Commissioner Quick, Commissioner Marty, Commissioner Gunn 3. APPROVAL OF AGENDA 4. APPROVAL OF MINUTES A. April 12, 2004 EDA Minutes 5. CONSENT AGENDA 6. EDA BUSINESS A. Resolution 04-EDA-184 Authorizing Staff to Arrange for an Appraisal of Commercial Property at 2525 County Highway 10 in Mounds View, known as Gas & Wash. 7. REPORTS A. Update on Hidden Hollow Residential Project. (verbal report) 8. NEXT EDA MEETING: May 10, 2004 9. ADJOURNMENT PROCEEDINGS OF THE MOUNDS VIEW EDA 1 CITY OF MOUNDS VIEW 2 RAMSEY COUNTY, MINNESOTA 3 4 Regular Meeting 5 April 12, 2004 6 Mounds View City Hall 7 2401 Highway 10, Mounds View, MN 55112 8 6:33 P.M. 9 10 11 1. CALL MEETING TO ORDER 12 13 2. ROLL CALL: Stigney, Gunn, Quick, Marty and Linke 14 15 NOT PRESENT: None. 16 17 3. APPROVAL OF AGENDA 18 19 MOTION/SECOND: Gunn/Stigney. To Approve the April 12, 2004 Agenda as Presented. 20 21 Ayes – 5 Nays – 0 Motion carried. 22 23 4. APPROVAL OF EDA MINUTES 24 25 A. March 22, 2004 Minutes 26 27 MOTION/SECOND: Stigney/Gunn. To Approve the Minutes of March 22, 2004 as Presented. 28 29 Ayes – 5 Nays – 0 Motion carried. 30 31 5. CONSENT AGENDA 32 33 None. 34 35 6. EDA BUSINESS 36 37 A. Consideration of EDA Resolution 04-EDA-183 Approving the Acquisition of 38 Tax Forfeited Property on County Road H2 in Mounds View (Lot 36, 39 Knollwood Park) from Ramsey County. 40 41 Economic Development Coordinator Backman reviewed the matter with the Authority. 42 43 City Attorney Riggs indicated that some of the language was changed to reflect the request of the 44 Assistant County Attorney. 45 Mounds View EDA April 12, 2004 Regular Meeting Page 2 46 Commissioner Gunn pointed out that the name of the development should be changed to Hidden 47 Hollow in the Resolution. 48 49 MOTION/SECOND: Marty/Stigney. To Waive the Reading and Approve Resolution 04-EDA-50 183, a Resolution Approving the Acquisition of Tax Forfeited Property on County Road H2 in 51 Mounds View (Lot 36, Knollwood Park) from Ramsey County. 52 53 Ayes – 5 Nays – 0 Motion carried. 54 55 7. REPORTS 56 57 Economic Development Coordinator Backman provided copies of the new plans and reviewed 58 them with Council. 59 60 Economic Development Coordinator Backman indicated that Procraft is interested in making 61 payments on the land spread out over 15 months with payments being $59,800. He then asked 62 for comments from the EDA on the proposal. 63 64 Council Member Marty indicated he would like to ask how Procraft is paying for the other 65 property being acquired as part of this project. 66 67 Gary Nordness from Procraft Homes indicated that Mr. Fyksen is requiring that he be paid cash 68 and this proposal to the City is an attempt to allow them to not have to extend themselves out for 69 the purchase price. He then indicated that they are willing to pay the City interest at the going 70 rate. 71 72 Vice President Stigney indicated that he would want the City to enter into an agreement 73 concerning the payments that specified payment dates and did not make the payments contingent 74 upon lots being sold by the developer. 75 76 Mr. Nordness indicated that would be fine. 77 78 Economic Development Coordinator Backman indicated that payments would be set up on a 79 quarterly basis over the 15 months. 80 81 President Linke asked where Rice Creek is with this matter. 82 83 Mr. Nordness indicated the plans were submitted on April 6, 2004. 84 85 There was consent of the Authority on the payment plan suggested. 86 87 Mounds View EDA April 12, 2004 Regular Meeting Page 3 Council Member Gunn asked whether there is any information on new businesses. 88 89 Economic Development Coordinator Backman indicated that there are two signed leases one 90 from a construction firm and one a medical related business. He then said that Subway is 91 relocating north of the theatre to enlarge their facility and there is interest in a dollar store and 92 Figaro’s Pizza. 93 94 8. NEXT EDA MEETING: April 26, 2004 95 96 9. ADJOURNMENT 97 98 President Linke adjourned the meeting at 6:53 p.m. 99 100 Respectfully submitted, 101 102 Recorded and transcribed by: 103 104 Joan Lenzmeier 105 TimeSaver Off Site Secretarial, Inc. 106 Item No. 6A Meeting Date: April 26, 2004 Type of Business: EDA WK: Work Session; PH: Public Hearing; CA: Consent Agenda; EDA: EDA Business City of Mounds View Staff Report To: Mounds View Economic Development Authority From: Aaron Backman, Economic Development Director Item Title/Subject: Resolution No. 04-EDA-184, Authorizing Staff to Arrange for an Appraisal of the Commercial Property, known as Gas & Wash, at 2525 County Highway 10 in Mounds View Date of Report: April 26, 2004 Background: On June 18, 2002 Olson Harvey Convenience Stores, the present owner of Gas & Wash, bought the gas station at 2525 County Highway 10 from Classic Touch (Gas & Splash). The purchase price for the one-acre site at the corner of Long Lake and Hwy 10 was $1,080,000. While inside sales and car wash revenues have been increased, the fuel sales have not met expectations. In the fall of 2003 the owners, Dave Olson, Ron Olson, and Jeff Harvey, contracted with Calhoun Companies to sell the property. They operate three other gas stations in the Twin Cities area. Jeff Krieg, the broker from Calhoun, indicates the sale price of the property is $850,000. The gas station at 2525 Co. Hwy 10 is the only privately owned property on the triangularly shaped block bounded by Bronson Drive, Edgewood Dr., Co. Highway 10 and Long Lake Road (See attached map with the highlighted property). The City of Mounds View has a high concentration of its public facilities located within this block—City Hall, the Water Tower, Well #2, Main Treatment Plant & Well #3, Water Reservoir, Booster Station, Public Works Facility/Shop, Cold Storage Building, and a City Park. Discussion: There are three reasons that the City of Mounds View could consider for acquiring this property. First, acquisition could facilitate implementation of the County Road 10 Redevelopment and Revitalization Plan that the City Council adopted on August 20, 2002. To improve highway safety, the plan calls for realigning various intersections (See pages 23 and 35). A voluntary transaction now would likely be less costly to the City than a condemnation proceeding in the future. Second, acquisition could help facilitate the commercial redevelopment of this visible corner lot. The Hwy. 10 Corridor is our main commercial arterial. By purchasing this site, and perhaps combining it with other adjacent property, the City could attract a wider range of developers to promote investment in the community. Third, acquisition of this property could enable the City to expand the Public Works Shop for equipment storage, parking, etc. It might facilitate trails and other open space for pedestrians. Staff recommends that an appraisal be undertaken to ascertain market values. Quotes have been obtained from five certified commercial appraisers—R. A. Field & Associates; Tisdell Appraisal Services; Orion Appraisals; Mark Oehrlein Appraisals; and Appraisal Concepts. Recommendation: Staff recommends that the Mounds View Economic Development Authority adopt the Resolution 04-EDA-184 that authorizes staff to arrange for an appraisal of commercial property, known as Gas & Wash, at 2525 County Highway 10 in Mounds View. It is recommended that the appraisal be paid out of the City’s existing EDA funds and would be for an amount not to exceed $4,000. Respectfully submitted, ____________________________ Aaron Backman Economic Development Coordinator EDA RESOLUTION NO. 04-EDA-184 CITY OF MOUNDS VIEW MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY COUNTY OF RAMSEY STATE OF MINNESOTA RESOLUTION AUTHORIZING STAFF TO ARRANGE FOR AN APPRAISAL OF COMMERCIAL PROPERTY, KNOWN AS GAS & WASH, AT 2525 COUNTY HIGHWAY 10 IN MOUNDS VIEW WHEREAS, Olson Harvey Convenience Stores, the current property owner of Gas & Wash, a gas station at 2525 County Highway 10, has hired a broker to sell the commercial property; and WHEREAS, the City of Mounds View currently owns Lot 1, City Hall Addition covering approximately 15.5 acres and most of the same block bounded by Bronson Drive, Edgewood Dr., Co. Highway 10 and Long Lake Road; and WHEREAS, on August 20, 2002, the Mounds View City Council adopted the County Road 10 Redevelopment and Revitalization Plan that recommends realigning various intersections, including Long Lake Road and Hwy. 10; and WHEREAS, the City of Mounds View has a significant concentration of public facilities, including City Hall, the Water Tower, Well #2, Main Treatment Plant & Well #3, Water Reservoir, Booster Station, Public Works Facility/Shop, Cold Storage Building, and a City Park located in the same block as Gas & Wash; and WHEREAS, the County Highway 10 Corridor is the City’s main commercial arterial and that redevelopment along the Corridor is a significant priority of the EDA; and WHEREAS, commercial appraisals are necessary to ascertain market values for properties to be acquired; and WHEREAS, the staff has obtained quotes from five certified appraisers from the Twin Cities to appraise the property; and NOW, THEREFORE BE IT RESOLVED THAT, the Mounds View Economic Development Authority hereby directs and authorizes staff to arrange for an appraisal of the commercial property known as Gas & Wash at 2525 County Highway 10 in Mounds View for an amount not to exceed $4,000 to be paid from the City’s EDA funds. Adopted this 26th day of April, 2004 by the Mounds View Economic Development Authority ________________________________ Jerry Linke, President ________________________________ Kurt Ulrich, Executive Director