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HomeMy WebLinkAbout06-28-2004 CITY OF MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY MEETING AGENDA Monday, June 28, 2004 (Immediately following the City Council Meeting) 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 June 14, 2004 5. CONSENT AGENDA 6. EDA BUSINESS A. Resolution 04-EDA-188 Requesting that the Mounds View EDA Adopt the Modification to the Project Plan for the Mounds View Economic Development Project (A copy of the Modification is part of the City Council packet, Item 10A). B. Resolution 04-EDA-189 Authorizing Staff to Draft a Development Agreement to Provide $75,000 in TIF Assistance to Velmeir Companies to facilitate the Redevelopment of the Amoco Property located at 2800 Co. Highway 10. 7. REPORTS 8. NEXT EDA MEETING: Monday, July 12, 2004 9. ADJOURNMENT PROCEEDINGS OF THE MOUNDS VIEW EDA 1 CITY OF MOUNDS VIEW 2 RAMSEY COUNTY, MINNESOTA 3 4 Regular Meeting 5 June 14, 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, Marty and Linke 14 15 NOT PRESENT: None. 16 17 3. APPROVAL OF AGENDA 18 19 MOTION/SECOND: Gunn/Stigney. To Approve the June 14, 2004 Agenda as Presented. 20 21 Ayes – 5 Nays – 0 Motion carried. 22 23 4. APPROVAL OF EDA MINUTES 24 25 A. May 24, 2004 Minutes 26 27 MOTION/SECOND: Stigney/Marty. To Approve the Minutes of May 24, 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. Resolution 04-EDA-187 Approving Phase I Environmental Assessment and 38 other Assessment Activities for the Commercial Property known as Gas for 39 Less at 2525 County Highway 10 in Mounds View. 40 41 Economic Development Coordinator Backman reviewed the Resolution with the Authority and 42 indicated that staff advises the environmental activities be completed prior to any proposed 43 closing on the property, which could occur on June 30th. He indicated there was a Phase I 44 Environmental Assessment that was completed on May 7, 2004 that was undertaken by Western 45 Mounds View EDA June 14, 2004 Regular Meeting Page 2 Bank that was doing a refinancing for the owners. 46 47 President Linke asked if the person who did the Phase I Environmental Assessment was one of 48 the ones the City was looking at to do this process. 49 50 Economic Development Coordinator Backman stated it was not, and that it was Protec 51 Environmental Consultants out of Mendota Heights who had done it. He indicated the City 52 should obtain a tank removal cost estimate and conduct site borings for an amount not to exceed 53 $5,200. 54 55 President Linke asked if that would include tank removal. 56 57 Economic Development Coordinator Backman stated that would be for the tank removal 58 estimate, and that it would probably be in excess of $10,000 to remove the tanks. 59 60 Commissioner Stigney asked whether that was over and above the cost of the Purchase 61 Agreement. 62 63 Economic Development Coordinator Backman stated it would be over and above the cost of the 64 Purchase Agreement. 65 66 Commissioner Stigney stated he thought this should all be worked into the Purchase Agreement. 67 He stated he would be reluctant to pass this unless it’s contingent upon something else. 68 69 Economic Development Coordinator Backman stated the acquisition funds would be from the 70 Special Project Fund, and the cost for the environmental assessment activities would be from TIF 71 funds. 72 73 Commissioner Marty asked if the City could pass these costs onto the next buyer. 74 75 Economic Development Coordinator Backman stated that could be part of the negotiation 76 process with the developer. 77 78 President Linke stated he would like the costs to go through the Purchase Agreement. 79 80 Community Development Director Ericson stated that the sellers would not agree to that as they 81 are selling the land in an as-is condition, and that they do have another seller on hand that will 82 purchase the property. He stated that the City Attorney may prefer to have another Phase I 83 Environmental Assessment done, and they may end up with the same information. He stated 84 they would ask if they could utilize the one that was provided today. 85 86 MOTION/SECOND. Stigney/Gunn, for discussion. To postpone action on the matter until the 87 Mounds View EDA June 14, 2004 Regular Meeting Page 3 City Attorney reviews it. 88 89 Commissioner Marty asked if there was a time line they were working against. 90 91 Environmental Development Coordinator Backman stated if there were no action taken, the other 92 interested party would be able to close this week. He stated the Environmental Assessment could 93 be completed within two weeks. 94 95 Commissioner Gunn asked how soon the City Attorney would be able to go through this. 96 97 Environmental Development Coordinator Backman stated they can get a turn around pretty 98 quickly. 99 100 Ayes-1 (Stigney) Nays-4 Motion failed. 101 102 MOTION/SECOND. Marty/Gunn. To approve Resolution 04-EDA-187, Approving 103 Environmental Assessment, obtain a tank removal cost estimate and conduct a minimum of four 104 site borings of the property known as Gas for Less at 2525 County Highway 10 in Mounds View 105 for an amount not to exceed $7,500 to be paid from the City’s TIF funds. 106 107 Ayes-4 Nays-1 (Stigney) Motion carried. 108 109 B. Resolution 04-EDA-182 Approving a Purchase and Redevelopment 110 Agreement with Pro Craft Development for the Hidden Hollow residential 111 development project. 112 113 Economic Development Coordinator Backman reviewed the Resolution with the Authority and 114 indicated that staff and Procraft Development representatives and their respective legal 115 representatives have negotiated a final version of the Purchase and Redevelopment Agreement 116 for the Hidden Hollow residential development to be constructed south of County Road H2. 117 118 Economic Development Coordinator Backman stated that the Hidden Hollow residential 119 development project will create 17 new home lots on a new Hidden Hollow Court cul-de-sac 120 taking access from County Road H2. The value of the lots themselves will vary; however, it is 121 expected that they will be sold for in excess of $100,000 each and upon which be improved with 122 homes valued at more than $400,000. The developer has already executed the petition and 123 waiver to initiate the street project and the closing will be scheduled as soon as the title work is 124 prepared. Kennedy and Graven produced the document and will coordinate the property closing. 125 126 Economic Development Coordinator Backman stated he received a letter from Cherokee Bank, 127 stating they approved a loan request on behalf of Procraft Development. 128 129 Mounds View EDA June 14, 2004 Regular Meeting Page 4 Commissioner Stigney asked if the City Attorney had reviewed the resolution and supporting 130 documents. 131 132 Economic Development Coordinator Backman stated that he has and approved of them. 133 134 Commissioner Marty asked if all of the staff and city costs are built into the $299,000 listed in 135 1.06. 136 137 Economic Development Coordinator Backman stated that they were. 138 139 Commissioner Marty asked if the developer pays for all the attorneys’ fees to create and/or 140 manage the agreement listed in 13.0, closing costs. 141 142 Economic Development Coordinator Backman answered yes. 143 144 Commissioner Marty asked what 17.3, Item D meant. 145 146 Economic Development Coordinator Backman stated it meant they couldn’t sell until after 147 closing. 148 149 Commissioner Marty stated he thought items 17.4(a) and 19.14 were excellent. 150 151 MOTION/SECOND: Marty/Stigney. To Approve Resolution 04-EDA-182 Approving and 152 Authorizing a Purchase and Redevelopment Agreement by and Between the Mounds View 153 Economic Development Authority and Pro Craft Development. 154 155 Ayes – 5 Nays – 0 Motion carried. 156 157 7. REPORTS 158 159 None. 160 161 8. NEXT EDA MEETING: June 28, 2004 (Following Council Meeting) 162 163 9. ADJOURNMENT 164 165 President Linke adjourned the meeting at 6:57 p.m. 166 167 Respectfully submitted, 168 169 Recorded and transcribed by: 170 171 Mounds View EDA June 14, 2004 Regular Meeting Page 5 Sheree Theobald 172 TimeSaver Off Site Secretarial, Inc. 173 174 175 176 Item No. 6A Meeting Date: June 28, 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-188, Requesting that the Mounds View Economic Development Authority Adopt the Modification to the Project Plan for the Mounds View Economic Development Project. Date of Report: June 28, 2004 Background: The City’s Tax Increment Financing (TIF) Plans are a collection several documents in a three-ring binder separated by district and the development plan. Mounds View has three active TIF districts. District 1 encompasses the Mounds View Business Park and a few parcels along Co. Hwy. 10 to the northwest. It includes businesses, such as the Mermaid, Liberty Enterprises, Multi-Tech, Colonial Craft, United Natural Foods, and Medtronic. District 2 largely covers the area north of Co. Road I, east of Groveland Road and south of Co. Hwy. 10. Entities located in the district include the Minnesota Institute of Public Health, Realife Housing Cooperative, the Holiday Station, and the proposed location for CVS Pharmacy. District 3 covers the area north of new Hwy. 10, south of Co. Road J, and west of Coral Sea St. This district includes SYSCO Minnesota, Zep Manufacturing, and the Bridges Technology Park. In 1994 the EDA consolidated the three development programs and plans into one master plan. The consolidation resulted in one development district (the whole city) with one development project known as the Project Plan. In 2000 budgets for TIF Districts 1, 2 & 3 were modified. Discussion: The City and EDA need to process an amendment of the City’s Project Plan to incorporate revised development budgets and the possibility of development/redevelopment, especially for development likely to occur along the County Hwy. 10 Corridor. In addition, the Office of the State Auditor (OSA) has ruled that the EDA may not purchase any land utilizing tax increment funds without first having amended the Plan to explicitly identify those properties it intends to acquire. Staff has created a map that identifies 211 parcels in the City of Mounds View that could be acquired by the EDA. The largest number of parcels (93) is found in the northwest quadrant of the City (Section 6). The northeast quadrant has 43 parcels (Section 5), the southwest quadrant has 22 parcels (Section 7), the southeast quadrant has 45 parcels (Section 8), and the far southeast quadrant has 8 parcels (Section 17). From the current land use perspective, approximately 36 are commercial parcels and 175 are residential parcels. Blighted residential properties and underutilized residential properties are included on the map. Staff has been working with Ehlers & Associates, the City’s TIF financial advisor, to prepare the Project Plan modification. The Mounds View Planning Commission considered the Plan modification on June 16, 2004. The Commission adopted Resolution 762-04 recommending to the City Council approval and verifying that the modification is in compliance with the City’s Comprehensive Plan. Recommendation: Staff recommends that the Mounds View Economic Development Authority approving Resolution 04-EDA-188 adopting the proposed modification of the Project Plan for the Mounds View Economic Development Project. Respectfully submitted, ____________________________ Aaron Backman Economic Development Coordinator \\Trout\MasterFiles\2004\EDA\EDA Packets\06-28-04\Item 06A Reso 04-EDA-188 Requesting that the Mounds View Economic Development Authority Adopt the Modification to the Project Plan for the MV Economic Development Project.doc EDA RESOLUTION NO. 04-EDA-188 CITY OF MOUNDS VIEW MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY COUNTY OF RAMSEY STATE OF MINNESOTA RESOLUTION ADOPTING THE MODIFICATION TO THE PROJECT PLAN FOR THE MOUNDS VIEW ECONOMIC DEVELOPMENT PROJECT WHEREAS, it has been proposed by the Mounds View Economic Development Authority (the “EDA” and the City of Mounds View (the "City") that the EDA adopt the Modification to the Project Plan for the Mounds View Economic Development Project, referred to herein as the “Project Plan Modification”, pursuant to Minnesota Statutes, Sections 469.090 to 469.1082 and Sections 469.174 to 469.1799, inclusive, as amended (the “Act”), in an effort to encourage the development and redevelopment of certain designated areas within the City; and WHEREAS, the EDA has investigated the facts relating to the Project Plan Modification and has caused the Project Plan Modification to be prepared; and WHEREAS, the EDA has performed all actions required by law to be performed prior to the adoption of the Project Plan Modification. The Mounds View Planning Commission was asked to provide for review of and written comment on the Project Plan Modification and the City Council was asked to schedule a public hearing on the Project Plan Modification upon published notice as required by law. NOW, THEREFORE BE IT RESOLVED by the Mounds View Economic Development Authority as follows: 1. The Mounds View Economic Development Project consists of the entire City. The Project Plan Modification is in response to a settlement with the Office of the State Auditor and Attorney General, which includes the listing of specific properties authorized for acquisition. 2. The Project Plan Modification includes a budget amendment. The budget amendment includes the additional estimated public improvement and development costs that are authorized to be expended in addition to all other authorized costs in the Mounds View Economic Development Project. 3. The EDA further finds that the Project Plan Modification conforms in all respects to the requirements of the Act and will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the development or redevelopment of the project area by private enterprise in that the intent is to provide only that public assistance necessary to make the private developments financially feasible. 4. Conditioned upon the approval thereof by the City Council following its public hearing thereon, the Project Plan Modification, as presented to the EDA on this date, is hereby approved, established and adopted and shall be placed on file at the City’s Community Development Department. 5. Upon approval of the Project Plan Modification by the City Council, the staff, the EDA's advisors and legal counsel are authorized and directed to proceed with the implementation of the Project Plan Modification and for this purpose to negotiate, draft, prepare and present to this Board for its consideration all further modifications, resolutions, documents and contracts necessary for this purpose. Approval of the Project Plan Modification does not constitute approval of any project or a Development Agreement with any developer. 6. Upon approval of the Project Plan Modification by the City Council, staff of the City is authorized and directed to forward a copy of the Project Plan Modification to the Minnesota Department of Revenue pursuant to Minnesota Statutes 469.175, Subd. 4a. 7. The staff of the City is authorized and directed to forward a copy of the Project Plan Modification to the Ramsey County Auditor. Adopted this 28th day of June, 2004 by the Mounds View Economic Development Authority ________________________________ Jerry Linke, President ________________________________ Kurt Ulrich, Executive Director