HomeMy WebLinkAbout07-12-2004
CITY OF MOUNDS VIEW
ECONOMIC DEVELOPMENT AUTHORITY MEETING AGENDA
Monday, July 12, 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 June 28, 2004
5. CONSENT AGENDA
6. EDA BUSINESS
Resolution 04-EDA-190, Approving a Contract Award for Sealing Uncapped Well,
Asbestos Abatement, and Undertaking Demolition of the Residential Property located at
3016 Co. Hwy 10 as part of the Hidden Hollow development.
7. REPORTS
8. NEXT EDA MEETING: Monday, July 26, 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
June 28, 2004 6
Mounds View City Hall 7
2401 Highway 10, Mounds View, MN 55112 8
10:06 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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Mayor Linke stated he would like to amend the agenda to add an EDA Business Item C, which 20
would be to rescind 04-EDA-187 that was passed at the last EDA meeting. 21
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MOTION/SECOND: Gunn/Stigney. To Approve the June 28, 2004 Agenda as amended. 23
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Ayes – 5 Nays – 0 Motion carried. 25
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4. APPROVAL OF EDA MINUTES 27
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A. June 14, 2004 Minutes 29
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MOTION/SECOND: Gunn/Marty. To Approve the Minutes of May 24, 2004 as presented. 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. Resolution 04-EDA-188 Requesting that the Mounds View EDA Adopt the 41
Modification to the Project Plan for the Mounds View Economic 42
Development Project (A copy of the Modification is part of the City Council 43
packet, Item 10A). 44
45
Mounds View EDA June 28, 2004
Regular Meeting Page 2
MOTION/SECOND. Gunn/Stigney. To waive the reading and approve Resolution 46
04-EDA-188 Requesting that the Mounds View EDA Adopt the Modification to the 47
Project Plan for the Mounds View Economic Development Project. 48
49
Ayes-5 Nays-0 Motion carried. 50
51
B. Resolution 04-EDA-189 Authorizing Staff to Draft a Development 52
Agreement to Provide $75,000 in TIF Assistance to Velmeir Companies to 53
facilitate the Redevelopment of the Amoco Property located at 2800 Co. 54
Highway 10. 55
56
Economic Development Coordinator Backman stated the commercial site at 2800 Co. Highway 57
10 was formerly an Amoco gasoline station and has been vacant for over three years. Three 58
underground storage tanks, the associated piping and contaminated soils were removed from the 59
site in June of 2001. For over a year the Velmeir Companies, a Michigan development group, 60
has been working to redevelop the site for a 13,000 square foot CVS Pharmacy facility. Velmeir 61
has negotiated purchase agreements with Amoco and all adjoining property owners, prepared and 62
submitted site plans to the City, obtained preliminary plat approval from both the Planning 63
Commission and City Council, and is now before the City Council for final plat approval. 64
65
Economic Development Coordinator Backman stated the current total project cost is over $3.65 66
million, which exceeds the project budget as set by the end user. Expected additional costs 67
during the past two months have been added to the site development costs. In particular, Rice 68
Creek Watershed District has added over $106,000 in stormwater management costs. These 69
added costs put the project in jeopardy. In a June 22, 2004 letter John Kauppila, Director of 70
Construction for Velmeir, indicates that construction of the new store in Mounds View is at risk 71
unless the developer can obtain some financial assistance from the City. Mr. Kauppila highlights 72
three potential areas of assistance – Demolition & Site Clearing, Stormwater Requirements with 73
RCWD, and Park Dedication Fees. The company requests a TIF grant for $75,000 that could be 74
applied to one or more of the eligible items. Velmeir indicates that if the amount is provided 75
they are still over budget and absorbing costs, but they will commit to moving forward with the 76
development. 77
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Economic Development Coordinator Backman stated that staff has been in discussions with the 79
TIF advisors regarding this request. The items brought up by Velmeir are allowable TIF 80
expenses. From a procedural standpoint, the Velmeire should pay the full amount of the fees or 81
costs, then the City could reimburse the developer up to an agreed upon amount. Anything above 82
the cap would be borne by the developer. As with the TIF grant to Rob Carlson Builders for the 83
Highway Business Center, the purpose of the assistance is to encourage the redevelopment of a 84
property with a vacant building near the entrance to the City, and to facilitate the advent of a new 85
business in the community. 86
87
Mounds View EDA June 28, 2004
Regular Meeting Page 3
Economic Development Director Backman stated that staff recommends the Mounds View EDA 88
approve Resolution 04-EDA-189 that authorizes staff to draft a development agreement with 89
Velmeir to provide a grant for $75,000 to facilitate the redevelopment of the vacant commercial 90
property located at 2800 County Highway 10. The funding source would be Tax Increment 91
Financing (TIF) funds from District No. 2. It would be paid to Velmeir on a reimbursement basis 92
any anything above $75,000 would be borne by the developer. 93
94
Jim Belvert of Belvert Companies stated the costs of the pond are a huge factor right now, as 95
well as they had to purchase additional land to accommodate the pond. 96
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Mayor Linke stated it is getting ridiculous how they face these same problems on every project. 98
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Council Member Gunn stated that this is what TIF money is for. 100
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MOTION/SECOND: Gunn/Quick. To waive the reading and approve Resolution 04-EDA-189 102
Authorizing Staff to Draft a Development Agreement to Provide $75,000 in TIF Assistance to 103
Velmeir Companies to facilitate the Redevelopment of the Amoco Property located at 2800 Co. 104
Highway 10. 105
106
Council Member Stigney stated this is an expensive project, and the developer should have 107
anticipated some additional expenditures. He stated he was not in favor of granting the $75,000, 108
and he felt they should stand on their own two feet. 109
110
Economic Development Director Backman stated Velmeir has spent in excess of $200,000 to 111
date. He stated the developer can eat only so much. 112
113
Council Member Stigney stated he felt the developer could afford it more than the City could. 114
115
Council Member Marty stated he had come into the meeting agreeing with Council Member 116
Stigney, but after hearing of the dealings with the Rice Creek Watershed, he was more on the 117
fence. He stated he would like to have the park dedication fees portion removed from this, but 118
otherwise he can go along with it. 119
120
Mayor Linke stated they are not saying no to the park dedication fees. 121
122
Ayes – 4 Nays – 1 (Stigney) Motion carried. 123
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C. Rescind 04-EDA-187, the Environmental Study for the 2525 Highway 10 Gas 125
Station. 126
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MOTION/SECOND. Linke/Marty. To rescind approval of Resolution 04-EDA-187, the 128
environmental study for the 2525 Highway 10 gas station. 129
Mounds View EDA June 28, 2004
Regular Meeting Page 4
130
Ayes-5 Nays-0 Motion carried. 131
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7. REPORTS 133
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Council Member Quick stated he felt enough was enough with the Rice Creek Watershed 135
District. 136
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MOTION/SECOND. Quick/Marty. To direct staff to meet with state representatives and state 138
senator and anybody else that they can at the legislature to discuss the issue with the Rice Creek 139
Watershed District, and to also involve Ramsey County Commissioners. 140
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Ayes-5 Nays-0 Motion carries. 142
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8. NEXT EDA MEETING: Monday, July 12, 2004 144
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9. ADJOURNMENT 146
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President Linke adjourned the meeting at 10:30 p.m. 148
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Respectfully submitted, 150
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Recorded and transcribed by: 152
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Sheree Theobald 154
TimeSaver Off Site Secretarial, Inc. 155
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Item No. 6A
Meeting Date: July 12, 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-190, Approving a Contract
Award for Sealing Uncapped Well, Asbestos
Abatement, and Undertaking Demolition of the
Residential Property located at 3016 Co. Hwy 10
as part of the Hidden Hollow development
Date of Report: July 12, 2004
Background:
Over the past year Pro Craft Homes has been working on Hidden Hollow, a
residential subdivision in the southwest corner of Mounds View. On February 4,
2004 a purchase agreement was signed by the Fyksens, adjacent landowners,
and Pro Craft. The developer acquired the Fyksen property on June 30, 2004.
Pro Craft Homes signed the Purchase & Redevelopment Agreement with the City
of Mounds View on June 28, 2004. The final plat for the residential project was
also approved the same day. The City expects to sell its four lots to the
developer in mid-July. Seventeen homes will be built on the land acquired from
the Fyksens and the City of Mounds View.
As part of the process to develop the property, a house and garage will need to
be demolished on the City’s property located at 3016 County Rd. H2. Over the
past year the developer and the city staff have proceeded on the basis that the
house would be demolished by the City. In January 2003 the City authorized
Anoka-Hennepin Technical College to conduct an Asbestos Bulk Analysis of the
house. Asbestos was found in two areas—siding (transite siding w/ 20%
asbestos) and roofing (asphalt shingles w/ 5% asbestos). The siding needs to be
removed by a licensed contractor. The shingles may remain in place during
demolition. Quotes for asbestos abatement and demolition were obtained by the
City in the summer of 2003. Because the development process for Hidden
Hollow took longer than expected new quotes have been obtained. They are as
follows:
Demolition Cost—House/Garage
Company/Location Regular Controlled Burn Asbestos Removal
Triple N Construction $10,940.00 N/A N/A
Lino Lakes, MN
Herbst & Sons $ 9,800.00 N/A N/A
Mounds View, MN
Ceres Environmental $ 9,470.00 N/A N/A
Brooklyn Park, MN
Carl Bolander & Sons $ 8,995.00 $ 8,005.00 N/A
St. Paul, MN
Ray Anderson & Sons $ 8,100.00 $ 4,000.00 N/A
St. Paul, MN
Kevitt Excavating $ 7,227.00 N/A $ 2,350.00
Crystal, MN
Erickson Enterprises N/A N/A $ 1,800.00
Apple Valley, MN
In addition, City Staff has determined that an uncapped well exists in the
basement of the house. The Minnesota Department of Health was contacted to
confirm its existence. On July 7, 2004 Patrick Sarafolean, a MDH Hydrologist
toured the house and an uncapped sandpoint well existed in the southwest
portion of the basement. It is 1 ¼ inches in diameter and is 13 feet in depth.
Water is present at 4 feet below the basement floor. MDH indicates that the well
will need to be sealed prior to demolition. B & D Well Sealing of Rockford, MN
has provided a quote of $200.00 to seal the well.
Recommendation:
The EDA could consider a controlled burn of the house. This would provide
additional firefighting training for the Spring Lake Park-Blaine-Mounds View Fire
Department. Several of the contractors expressed concern about the controlled
burn option. Assuming a complete burn, the ash must go to specific landfills that
accept building ash. If the burn is not complete the volume increases and costs
to the City would increase. Both quotes for the controlled burn option are
estimates because of the unknowns. During the burning process ash can land
on adjacent properties that may result in claims. Moreover, there is an additional
application process to the MPCA for a controlled burn permit that could delay the
project for two weeks.
Staff recommends that the Mounds View EDA adopt the Resolution 04-EDA-190
that approves the contract award for the demolition of the house and garage at
3016 County Rd. H2 with Kevitt Excavating for $7,227.00 for demolition and
Erickson Enterprises for $1,800.00 for asbestos abatement. It further
recommends that B & D Well Sealing be awarded a contract to cap the well prior
to demolition. Staff recommends that the funding for these activities come from
the EDA fund.
Respectfully submitted,
____________________________
Aaron Backman
Economic Development Coordinator
\\Trout\CommDev\Economic Development\EDA\Staff Report 7-12-04 EDA Item #6A.doc
EDA RESOLUTION NO. 04-EDA-190
CITY OF MOUNDS VIEW
MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY
COUNTY OF RAMSEY
STATE OF MINNESOTA
APPROVING A CONTRACT AWARD FOR SEALING UNCAPPED WELL,
ASBESTOS ABATEMENT, AND UNDERTAKING DEMOLITION OF THE
RESIDENTIAL PROPERTY LOCATED AT 3016 CO. HWY 10 AS PART OF
THE HIDDEN HOLLOW DEVELOPMENT
WHEREAS, the Economic Development Authority of Mounds View (the
“EDA”) currently owns four lots covering approximately 6.0 acres in the block
bounded by County Road H2, Knollwood Drive, Wooddale Dr., and what would
be Pleasant View Drive in the City; and
WHEREAS, on June 9, 2003, the EDA selected Pro Craft Homes, Inc. of
Vadnais Heights, Minnesota, to be the private developer for the proposed County
Road H2 residential project, “Hidden Hollow”, that would entail the development
and redevelopment of the site through the private construction of approximately
17 single family homes; and
WHEREAS, on July 22, 2003, the City and Pro Craft Homes signed a pre-
development agreement regarding “The Woods of Mounds View”, now referred
to as the “Hidden Hollow” residential project; and
WHEREAS, on February 4, 2004 Pro Craft Homes and the Fyksens
signed a purchase agreement to sell the Fyksen property to Pro Craft Homes for
this residential subdivision project, and whereas on June 30, 2004 Pro Craft
Homes purchased the property from the Fyksens; and
WHEREAS, on June 28, 2004 Pro Craft Homes signed the Purchase &
Redevelopment Agreement with the Mounds View EDA, and the City of Mounds
View approved the final plat for Hidden Hollow; and
WHEREAS, to facilitate the redevelopment of the EDA’s property located
at 3016 County Rd. H2 the house and related outbuildings need to be
demolished to permit the Pro Craft excavator to proceed in a timely fashion; and
WHEREAS, the City has obtained quotes from area contractors to
demolish the structures, conduct asbestos abatement of the siding and to seal an
uncapped well, and the low bidders for the regular demolition and asbestos
abatement are Kevitt Excavating and Erickson Enterprises respectively.
NOW, THEREFORE BE IT FURTHER RESOLVED THAT, the Mounds
View Economic Development Authority does hereby approve a contract to Kevitt
Excavating for $7,227.00 for demolition of the house, garage, and shed at 3016
County Rd. H2, approve a contract to Erickson Enterprises for $1,800.00 for
asbestos abatement of the siding at 3016 Co. Rd. H2, and approve a contract to
B & D Well Sealing for $200.00 for sealing the uncapped well in the basement.
Funding for these three activities is to come from the EDA fund.
Adopted this 12th day of July, 2004 by
the Mounds View Economic
Development Authority
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Jerry Linke, President
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Kurt Ulrich, Executive Director