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Home My WebLink About08-09-2004CITY OF MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY MEETING AGENDA Monday, August 9, 2004 Will Commence 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. July 26, 2004, EDA Minutes. 5. CONSENT AGENDA 6. EDA BUSINESS A. Resolution 04-EDA-192 Authorizing Payment of Pay-As-You-Go Development Payments to Red Cent Management, L.L.C.; Heartland-Mounds View Common Bond; Bridges Leasing Company; and Kenmark Partnership, L.L.P. 7. REPORTS 8. NEXT EDA MEETING: Monday, August 23, 2004 9. ADJOURNMENT PROCEEDINGS OF THE MOUNDS VIEW EDA 1 CITY OF MOUNDS VIEW 2 RAMSEY COUNTY, MINNESOTA 3 4 Regular Meeting 5 July 26, 2004 6 Mounds View City Hall 7 2401 Highway 10, Mounds View, MN 55112 8 6:30 P.M. 9 10 1. CALL MEETING TO ORDER 11 12 2. ROLL CALL: Stigney, Gunn, Marty and Linke 13 14 NOT PRESENT: Quick. 15 16 3. APPROVAL OF AGENDA 17 18 MOTION/SECOND: Gunn/Marty. To Approve the July 26, 2004 Agenda as Presented. 19 20 Ayes – 4 Nays – 0 Motion carried. 21 22 4. APPROVAL OF EDA MINUTES 23 24 A. July 12, 2004 Minutes 25 26 MOTION/SECOND: Marty/Stigney. To Approve the Minutes of July 12, 2004 as Presented. 27 28 Ayes – 4 Nays – 0 Motion carried. 29 30 5. CONSENT AGENDA 31 32 None. 33 34 6. EDA BUSINESS 35 36 A. Resolution 04-EDA-191, Approving the Development Agreement to Provide 37 $75,000 in Tax Increment Financing (TIF) Assistance to Velmeir Co., LLC to 38 facilitate the Redevelopment of the Amoco Property located at 2800 County 39 Highway 10 in Mounds View. 40 41 Economic Development Coordinator Backman stated that on June 28, 2004 the Mounds View 42 EDA authorized staff to draft a development agreement to provide $75,000 in Tax Increment 43 Financing assistance to Velmeir to facilitate the redevelopment of the Amoco site at County 44 Highway 10. The Mounds View EDA recommended that the reimbursement be limited to costs 45 Mounds View EDA July 26, 2004 Regular Meeting Page 2 associated with demolition and clearing, Rice Creek Watershed District stormwater management 46 requirements, and/or park dedication feeds. The source of funds for the $75,000 grant would be 47 Tax Increment Financing funds. 48 49 Economic Development Coordinator Backman stated Briggs & Morgan, the City’s TIF legal 50 advisor, provided City Staff with a draft of the Development Agreement on July 12, 2004. 51 Velmeir’s legal advisor reviewed the agreement last week and suggested four changes in the 52 document. These were deemed reasonable and were incorporated into Development Agreement. 53 54 Economic Development Coordinator Backman stated that Staff recommends that the Mounds 55 View EDA approve Resolution 04-EDA-191 that approves the development agreement with 56 Velmeir to provide a grant for $75,000 to facilitate the redevelopment of the vacant commercial 57 property located at 2800 County Highway 10. The funding source would be Tax Increment 58 Financing funds from District No. 2. It would be paid to Velmeir on a reimbursement basis and 59 anything above $75,000 would be borne by the developer. 60 61 Commissioner Marty asked when the $75,000 would be re-paid, and Economic Development 62 Coordinator Backman stated that this was in the form of a grant. 63 64 Commissioner Marty asked when the TIF District would make up the money in order to decertify 65 this property, and Economic Development Coordinator Backman stated that the property would 66 be developed over the next six to eight months, and it would be on the tax rolls for 2006. He 67 stated the taxes would be approximately $100,000 per year. 68 69 Commissioner Marty asked if they could decertify the property in a year, and Economic 70 Development Backman stated probably in two years. 71 72 Commissioner Marty asked about park dedication fees, and President Linke stated that they 73 would be receiving park dedication fees. 74 75 Commissioner Marty stated he would feel more comfortable taking the wording regarding park 76 dedication fees out of the resolution. Commissioner Gunn agreed, saying it appeared that the city 77 is paying the city. 78 79 MOTION/SECOND. Marty/Gunn. To approve Resolution No. 04-EDA-191 as amended, 80 removing all language regarding park dedication fees. 81 82 Commissioner Stigney stated he would not support this drug store by voting to help them with 83 TIF funds. 84 85 Ayes – 3 Nays – 1 (Stigney) Motion carried. 86 87 Mounds View EDA July 26, 2004 Regular Meeting Page 3 7. REPORTS 88 89 Economic Development Coordinator Backman stated the closing was held on July 13th with 90 Procraft Homes, and that the well at 3016 County Raod H2 had been capped, the siding removed, 91 and that on July 27th they would demolish the building. 92 93 Economic Development Coordinator Backman stated there had been an inquiry by Cressa 94 Partners of Minneapolis regarding the golf course property for corporate office buildings that 95 would employ over 1,000 people. He stated they initially would build a 600,000 square foot 96 building, and eventually up to 1.5 million square feet. He stated the $100 million investment 97 would generate approximately $1.6 million per year in property taxes and would pay the city’s 98 debt on the golf course. He stated they would like to acquire the property in eight to nine months 99 and that construction would start in approximately mid 2005. 100 101 Economic Development Coordinator Backman asked the Authority if they wished him to pursue 102 this or drop it, and Commissioner Stigney replied to pursue it. President Linke stated he believed 103 this would be a matter for the Council, not the EDA. 104 105 Economic Development Coordinator Backman stated that this development would like require 106 title research information, and Commissioner Stigney stated he felt EDA funds would be an 107 appropriate funding source rather than General Funds. President Linke stated he would rather 108 have everything presented in one package at the next EDA meeting. 109 110 MOTION/SECOND. Marty/Stigney. To research title to the golf course property using EDA 111 funds. 112 113 President Linke stated he would be voting against this because he would like to have all the 114 information presented at the same time. 115 116 Commissioner Stigney stated he felt they would be remiss if they didn’t look into the title at this 117 time because this particular development has a potential of bringing in $1.6 million in taxes. 118 Commissioner Gunn agreed. 119 120 Ayes-3 Nays-1 (Linke) Motion carried. 121 122 8. NEXT EDA MEETING: Monday, August 9, 2004 (Following Council Meeting) 123 124 9. ADJOURNMENT 125 126 President Linke adjourned the meeting at 6:52 p.m. 127 128 Respectfully submitted, 129 Mounds View EDA July 26, 2004 Regular Meeting Page 4 130 Recorded and transcribed by: 131 132 Sheree Theobald 133 TimeSaver Off Site Secretarial, Inc. 134 135 136 137