HomeMy WebLinkAbout06-14-2004
CITY OF MOUNDS VIEW
ECONOMIC DEVELOPMENT AUTHORITY MEETING AGENDA
Monday, June 14, 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. EDA Minutes May 24, 2004
5. CONSENT AGENDA
6. EDA BUSINESS
A. Consideration of Resolution 04-EDA-187 Approving Phase I Environmental Assessment
and Other Assessment Activities for the Commercial Property known as Gas for Less at
2525 County Highway 10 in Mounds View.
B. Consideration of Resolution 04-EDA-182 Approving a Purchase and Redevelopment
Agreement with Pro Craft Development for the Hidden Hollow residential development
project.
7. REPORTS
8. NEXT EDA MEETING: Monday, June 28, 2004
9. ADJOURNMENT
PROCEEDINGS OF THE MOUNDS VIEW EDA 1
CITY OF MOUNDS VIEW 2
RAMSEY COUNTY, MINNESOTA 3
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Regular Meeting 5
May 24, 2004 6
Mounds View City Hall 7
2401 Highway 10, Mounds View, MN 55112 8
6:30 P.M. 9
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1. CALL MEETING TO ORDER 12
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2. ROLL CALL: Stigney, Gunn, Quick, Marty and Linke 14
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NOT PRESENT: None. 16
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3. APPROVAL OF AGENDA 18
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MOTION/SECOND: Marty/Stigney. To Approve the May 24, 2004 Agenda as Presented. 20
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Ayes – 5 Nays – 0 Motion carried. 22
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4. APPROVAL OF EDA MINUTES 24
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A. May 10, 2004 Minutes 26
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Commissioner Marty requested the following change: On Page 2, Line 64 change Commissioner 28
to Vice President. 29
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MOTION/SECOND: Marty/Stigney. To Approve the Minutes of May 10, 2004 as Amended. 31
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Ayes – 5 Nays – 0 Motion carried. 33
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5. CONSENT AGENDA 35
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None. 37
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6. EDA BUSINESS 39
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A. Consider Michael Investment Request (May 14 & 18, 2004 Correspondence) 41
and Review May 19, 2004 Briggs & Morgan Memo. 42
43
Economic Development Coordinator Backman reviewed the request from Michael Investment 44
with the Authority. He then reviewed three options with the Authority. 45
Mounds View EDA May 24, 2004
Regular Meeting Page 2
46
President Linke questioned whether the Church would be paying the second half taxes. 47
48
Economic Development Coordinator Backman indicated that Michaels Investments has paid the 49
first half taxes and, provided the property is sold, the Church would make the second half tax 50
payment. 51
52
President Linke indicated that the payment due in August is based upon the April tax payment 53
that was made by Michaels so it seems appropriate that the City make the payment to them in 54
August. He then said that once the Church owns the property the reimbursements by the City 55
stop. 56
57
Community Development Director Ericson indicated that it is Michaels Investments’ position 58
that they did not consent to the action that was taken with regard to the Resolution adopted and 59
they need to consent to the termination and, without that consent, there is an active and in force 60
development agreement and the City is liable to make the payments to the developer. If it is not 61
assigned to the Church the City has to make payments and, if transferred to the Church then the 62
City would make payments as long as tax payments are being made. He then said that, once an 63
exemption is filed, then there are no further tax payments made and no payments required by the 64
City. 65
66
Vice President Stigney asked for a staff recommendation. 67
68
Economic Development Coordinator Backman indicated that part of his position has been that he 69
has not wanted to increase the liability of the City and, for that reason, he has not wanted to see 70
giving up the indemnification and feels it should remain. 71
72
Commissioner Gunn asked when the property tax payments would cease. 73
74
Economic Development Coordinator Backman indicated the payments would cease after the 75
Church makes the final payment. 76
77
Economic Development Coordinator Backman indicated the Church has expressed an interest in 78
having its tax-exempt status and would want to do that as quickly as possible. 79
80
John Grano indicated that the Church has entered into an amended purchase agreement with 81
Michaels where they waived contingencies and the Church agreed to reassign the TIF agreement 82
back to them. He then said that the Church would work with the City and the closing is set for 83
June 15, 2004. 84
85
Commissioner Marty commented that it appears that anything that would come in would be 86
forwarded to Michael Investments. 87
Mounds View EDA May 24, 2004
Regular Meeting Page 3
88
Mr. Grano indicated the TIF note payment goes to Michaels and the indemnification stays with 89
Michael Investments with the building. 90
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MOTION/SECOND: Quick/Gunn. To Approve Option Two. 92
93
Vice President Stigney asked for Staff recommendation. 94
95
Economic Development Coordinator Backman indicated that if he was encouraged to make a 96
decision he would go with option two and the reasons for that would be retaining indemnification 97
and he would like to see the development agreement closed out as soon as possible. 98
99
Ayes – 5 Nays – 0 Motion carried. 100
101
B. Correct EDA Resolution 04-EDA-186 by Changing the Date of Requested 102
Public Hearing from June 21, 2004 to June 28, 2004. 103
104
MOTION/SECOND: Marty/Stigney. To Approve the Correction of Resolution 04-EDA-186 by 105
Changing the Date of Requested Public Hearing from June 21, 2004 to June 28, 2004. 106
107
Ayes – 5 Nays – 0 Motion carried. 108
109
C. Discussion of Map Identifying Parcels to be Identified as Potential 110
Commercial and Residential Redevelopment Areas as Part of the Proposed 111
TIF Plan Modifications. 112
113
Economic Development Coordinator Backman briefly discussed the proposed map with the 114
Authority and asked Members to provide input on any additional parcels they would like to see 115
added to the map. 116
117
7. REPORTS 118
119
A. Review Appraisal for Acquiring Gas & Wash 2525 County Highway 10. 120
121
The Authority discussed the appraisal received on the Gas & Wash property. Staff indicated that 122
the appraised value was found to be $819,000. 123
124
8. NEXT EDA MEETING: June 14, 2004 125
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Mounds View EDA May 24, 2004
Regular Meeting Page 4
9. ADJOURNMENT 128
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President Linke adjourned the meeting at 7:10 p.m. 130
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Respectfully submitted, 134
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Recorded and transcribed by: 136
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Joan Lenzmeier 138
TimeSaver Off Site Secretarial, Inc. 139
Item No. 6A
Meeting Date: June 14, 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 Coordinator
Item Title/Subject: Resolution No. 04-EDA-187, Authorizing Staff to
Arrange for Environmental Assessment Activities
of the Commercial Property known as Gas for
Less at 2525 County Highway 10 in Mounds View
Date of Report: June 14, 2004
Background:
On April 26, 2004 the Mounds View Economic Development Authority authorized
staff to proceed with an appraisal of the commercial property at 2525 County
Highway 10, known as Gas for Less. The EDA approved that an appraisal be
undertaken for an amount not to exceed $4,000 to be paid from the City’s EDA
funds. Written quotes were obtained from five Twin Cities commercial appraisal
companies. Tisdell Appraisal Services, Inc. from Burnsville was selected at a
cost of $3,000. The complete appraisal was submitted to the City on May 27,
2004. Mr. Tisdell places the market value of the facility as $819,000.
On May 19, 2004 the Mounds View Planning Commission considered and
approved a resolution recommending approval of the acquisition of the parcel at
2525 Hwy 10. The Commissioners determined that the City’s acquisition of the
lot would be consistent with the Comprehensive Plan future land use map. On
May 24, 2004 the Mounds View City Council authorized staff to negotiate a
purchase agreement to acquire the commercial property at 2525 Co. Highway 10
and present the agreement to the City Council for final action.
Staff has contacted Twin Cities companies that conduct environmental
assessment activities. During the first week of June three engineering
companies (Peer Engineering, DPRA and Applied Engineering) provided
proposals to the City to undertake Phase I and other assessment activities. Staff
advises that these environmental activities be completed prior to the proposed
closing on the property on June 30, 2004.
Recommendation:
Staff recommends that the Mounds View City Council adopt Resolution 6282 that
authorizes staff to enter into a purchase agreement for $820,000 with Calhoun
Companies to acquire the commercial property known as Gas for Less located at
2525 County Hwy 10 (This item will be considered during the City Council
meeting). Staff further recommends that the Mounds View Economic
Development Authority authorize staff to undertake a Phase I Environmental
Assessment, obtain a tank removal cost estimate and conduct a minimum of four
site borings of the site for an amount not to exceed $7,500, and that the results
are submitted to the City prior to June 30, 2004. These environmental
assessment activities will be paid from Tax Increment Financing (TIF) funds.
Respectfully submitted,
____________________________
Aaron Backman
Economic Development Coordinator
\\Trout\MasterFiles\2004\EDA\EDA Packets\06-14-04\Item 06A Reso 04-EDA-187 Approv Phase I Environmental Assessment and Other Assessment for Commercial Property known as Gas for Less 2525 County Highway 10.doc
EDA RESOLUTION NO. 04-EDA-187
CITY OF MOUNDS VIEW
MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY
COUNTY OF RAMSEY
STATE OF MINNESOTA
RESOLUTION AUTHORIZING STAFF TO ARRANGE FOR ENVIRONMENTAL
ASSESSMENT ACTIVITIES OF THE COMMERCIAL PROPERTY KNOWN AS
GAS FOR LESS AT 2525 COUNTY HIGHWAY 10 IN MOUNDS VIEW
WHEREAS, the parcel located at 2525 County Highway 10, improved with
the Gas for Less fuel station and convenience store, has recently become
available on the market; and,
WHEREAS, the one acre parcel is located at the intersection of County
Road 10 and Long Lake Road and is zoned B-3, Highway Business Commercial;
and,
WHEREAS, the proposed use of the subject property would be to facilitate
the commercial redevelopment of this visible corner lot along the City’s main
business corridor; and,
WHEREAS, on April 26, 2004 the Mounds View EDA authorized
preparation of an appraisal of the site and on May 27, 2004, Tisdell Appraisal
Services submitted the completed appraisal placing the market value of the
facility as $819,000; and,
WHEREAS, on May 24, 2004, the Mounds View City Council authorized
staff to negotiate a purchase agreement to acquire the commercial property at
2525 County Highway 10; and,
WHEREAS, environmental assessments are necessary to ascertain the
potential for soil and/or groundwater contamination from onsite or adjacent
property activities and render an opinion regarding the presence of a recognized
environmental condition; and
WHEREAS, the staff has obtained quotes from three licensed engineering
companies that specialize in environmental assessment activities; and
NOW, THEREFORE BE IT RESOLVED THAT, the Mounds View
Economic Development Authority hereby directs and authorizes staff to arrange
for a Phase I Environmental Assessment, obtain a tank removal cost estimate
and conduct a minimum of four site borings of the property known as Gas for
Less at 2525 County Highway 10 in Mounds View for an amount not to exceed
$7,500 to be paid from the City’s TIF funds.
Adopted this 14th day of June, 2004 by
the Mounds View Economic
Development Authority
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Jerry Linke, President
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Kurt Ulrich, Executive Director