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HomeMy WebLinkAbout02-11-2002 CITY OF MOUNDS VIEW EDA MEETING AGENDA MONDAY, FEBRUARY 11, 2002 7:00 p.m 1. CALL TO ORDER 2. ROLL CALL: Sonterre, Quick, Marty, Stigney, Thomas 3. APPROVAL OF AGENDA 4. APPROVAL OF MINUTES A. January 28, 2002 5. SPECIAL ORDER OF BUSINESS 6. REPORTS 7. CONSENT AGENDA A. Resolution 02-EDA-158 Approving the Purchase and Redevelopment Agreement for 2091 Hillview Road and Amending Previously Accepted Terms of Purchase (Ericson) B. Resolution 02-EDA-159 Approving Appointments to the Economic Development Authority (Ericson) 8. EDA BUSINESS A. Resolution 02-EDA-160, Approving Developer Payments for Building N and Silver Lake Pointe Projects (Ericson, Hansen & Backman) 9. SPECIAL ORDER OF BUSINESS 10. ADJOURNMENT 11. Next Council Work Session: February 19, 2002 Next EDA Meeting: February 25, 2002 PROCEEDINGS OF THE MOUNDS VIEW EDA CITY OF MOUNDS VIEW RAMSEY COUNTY, MINNESOTA Regular Meeting January 28, 2002 Mounds View City Hall 2401 Highway 10, Mounds View, MN 55112 11:00 P.M. 1. CALL MEETING TO ORDER 2. ROLL CALL: Sonterre, Stigney, Marty, Thomas. NOT PRESENT: Quick. 3. APPROVAL OF AGENDA President Sonterre requested that the appointment of Jason Helgemoe and David Fox to the Economic Development Commission be added under Special Orders of Business. City Administrator Miller asked that the Minutes from February 9, 1999 be removed from the agenda. MOTION/SECOND: Marty/Thomas. To Approve the Agenda for January 28, 2002 as amended. Ayes – 4 Nays – 0 Motion carried. 4. APPROVAL OF EDA MINUTES A. Approve Minutes of January 7, 2002. MOTION/SECOND: Marty/Stigney. To Approve the Minutes of the EDA for January 7, 2002 as presented. Ayes – 4 Nays – 0 Motion carried. 5. SPECIAL ORDER OF BUSINESS President Sonterre noted Jason Helgemoe is employed by Western Bank and is fairly in tune with the workings of the EDC. He then explained that Cindy Carlson, a long time member of the Commission, had recommended Jason’s appointment. MOTION/SECOND: Sonterre/Marty. To Appoint Jason Helgemoe to the Economic Mounds View EDA January 28, 2002 Regular Meeting Page 2 Development Commission. Ayes – 4 Nays – 0 Motion carried. President Sonterre indicated that David Fox is doing business in the City and had expressed a strong desire to be civically involved with the workings of the community. MOTION/SECOND: Sonterre/Marty. To Appoint David Fox to the Economic Development Commission. Vice President Stigney asked what business Mr. Fox was in. President Sonterre indicated the name of his company is Water Jet Technologies. Ayes – 4 Nays – 0 Motion carried. President Sonterre noted for the record that Tori Johnson had been incorrectly listed as a business member of the EDC and that has been corrected to reflect that she is a resident of Mounds View. 6. REPORTS A. Update Regarding Developer Payments for C.G. Hill & Building N Projects. Finance Director Hansen explained that one of the main functions is to promote development within the City and, back in the earlier days, this was done by the City selling bonds and paying for infrastructure and improvements to facilitate the re-development of properties. He then noted that the City has five pay as you go agreements in place and the payments are due February 1, 2002. Economic Development Coordinator Backman indicated that Staff had been reviewing the projects to ensure that the payments have been properly calculated and has found that two of the five are correct. The other projects have errors in calculation going all the way back to 1996. Commissioner Marty asked if these errors were for the good or bad for the City. Economic Development Coordinator Backman indicated that he and Ellers had been evaluating the numbers and he believes the City has been overpaying the developers. President Sonterre asked for a timeline on an update on the errors. Economic Development Coordinator Backman indicated that Staff is working on putting together Mounds View EDA January 28, 2002 Regular Meeting Page 3 spreadsheets and should be able to provide information within a week or so. Vice President Stigney thanked Staff for identifying the error. Economic Development Coordinator Backman commented that the amounts could total more than $30,000. City Administrator Miller noted that Mr. Backman has not been on Staff for very long and said she appreciates his efforts. MOTION/SECOND: Thomas/Stigney. To Waive the Reading and Approve Resolution 02- EDA-157 as Presented. Ayes – 4 Nays – 0 Motion carried. 7. CONSENT AGENDA None. 8. EDA BUSINESS A. Mounds View Animal Hospital Subordination Agreement Community Development Director Ericson explained that the City Attorney had recommended approval of the Subordination Agreement to assist Mounds View Animal Hospital in receiving financing for the project. City Attorney Riggs explained that the folks at Mounds View Animal Hospital had run into an issue with the financing because the City has a right of reverter in place on the property and the Subordination Agreement would satisfy the financial institution. MOTION/SECOND: Thomas/Stigney. To Approve the Subordination Agreement as Presented and Recommended by the City Attorney. Commissioner Marty indicated that everything sounds like it is in order and noted the only reason he did not make the motion is because he did not have time to read the document. Ayes – 4 Nays – 0 Motion carried. Mounds View EDA January 28, 2002 Regular Meeting Page 4 9. ADJOURNMENT President Sonterre adjourned the meeting at 11:16 p.m. Respectfully submitted, Recorded and transcribed by: Joan Lenzmeier TimeSaver Off Site Secretarial, Inc. Item No: EDA 7a Meeting Date: Feb 11, 2002 Type of Business: EDA Consent City of Mounds View Staff Report To: Mounds View Economic Development Authority From: James Ericson, Community Development Director Item Title/Subject: Consideration of Resolution 02-EDA-158 Approving Amendments to the Purchase and Redevelopment Agreement for 2091 Hillview Road and Amending Previously Accepted Terms of Purchase Date of Report: February 7, 2002 Background: On December 10, 2001, the EDA accepted the offer submitted by G.R. Danielson and Son Company to purchase EDA-owned property located at 2091 Hillview Road (the “Property”) for $100,100. On January 7, 2002, the EDA held a public hearing regarding the proposed conveyance of the property to the purchaser. Subsequent to the public hearing, the City began negotiating a mutually agreeable Purchase and Redevelopment Agreement (the “Agreement”) with the purchaser. Discussion: It was brought to the Council’s attention on February 4, 2002 that the purchaser objected to a provision in the Agreement pertaining to payment of all city legal fees relating to the transfer of the Property. It was pointed out that the Purchaser, had they known of the requirement to reimburse the City for legal fees associated with the transfer, would have originally offered a lesser amount to compensate for the additional expense. The Council suggested as a compromise that the accepted purchase price of the Property could be reduced to $99,000 in exchange for keeping the provision in the Agreement. The Purchaser has agreed with this change. Recommendation: Staff recommends approval of attached Resolution 02-EDA-158. _____________________________________ James Ericson Community Development Director 763-717-4021 RESOLUTION NO. 02-EDA-158 MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY COUNTY OF RAMSEY STATE OF MINNESOTA RESOLUTION AMENDING PREVIOUSLY ADOPTED RESOLUTION NO. 02-EDA-155 REGARDING THE TERMS AND CONDITIONS OF THE SALE OF EDA-OWNED LAND LOCATED AT 2091 HILLVIEW ROAD TO G.R. DANIELSON & SON COMPANY It is hereby resolved by the Board of Commissioners (the “Board”) of the Mounds View Economic Development Authority (the “Authority”) as follows: WHEREAS, the Authority acquired the real property located at 2091 Hillview Road (the “Property”) from the Department of Housing and Urban Development on September 4, 2001; and, WHEREAS, on December 10, 2001, the Authority accepted the offer submitted by G.R. Danielson and Son Company (the “Purchaser”) in the amount $100,100 with an additional $135,000 to be invested toward the repair and improvement of the Property; and, WHEREAS, the Authority held a public haring on January 7, 2002 regarding the conveyance of the Property to the Purchaser at which time all interested persons were given an opportunity to be heard; and, WHEREAS, through negotiations with the purchaser, an amendment to the proposed Purchase and Redevelopment Agreement (the “Agreement”) and to approved Resolution 02-EDA-155 (the “Resolution”) have been put forward to the Authority for its consideration; and, WHEREAS, the amendments to the Agreement and Resolution are as follows: 1. The purchase price of the Property accepted by the Authority shall be $99,000. 2. The Purchaser of the Property shall be identified by their individual personal names: Gary Danielson, Debbie Danielson, David Scott and Peggy Scott. All other provisions and requirements identified in the Agreement and Resolution shall remain unchanged and in force. NOW THEREFORE BE IT RESOLVED, the Mounds View Economic Development Authority approves the sale of the Property to the Purchaser in the amount of $99,000 less submitted earnest money. RESOLUTION NO. 02-EDA-158 February 11, 2002 Page 2 NOW THEREFORE BE IT FURTHER RESOLVED, the Mounds View Economic Development Authority hereby authorizes its President and Executive Director to execute the amended Agreement which articulates the conditions and requirements of this sale. Adopted by the Board of Commissioners of the Mounds View Economic Development Authority this 11th day of February, 2002. ___________________________ Richard Sonterre, President ATTEST: ____________________________ Kathleen Miller, Executive Director Motion: Second: Sonterre: Stigney: Quick: Marty: Thomas: N:\DATA\GROUPS\COMDEV\Special Projects\SP-090-01 (2091 Hillview)\EDA Report - Feb 11, 2002.doc M:\MasterFiles\1999 thru 2010\2002\EDA\EDA Packets\02-11-02\Item 7B-Reso 02-EDA-159 Approving Appointments to the EDA.doc RESOLUTION NO. 02-EDA-159 MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY COUNTY OF RAMSEY STATE OF MINNESOTA RESOLUTION FORMALLY APPROVING PERSONS APPOINTED BY THE MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY TO FILL VACANCIES ON THE ECONOMIC DEVELOPMENT COMMISSION WHEREAS, the Mounds View Economic Development Commission (EDC) consist of seven members appointed by the Authority President with the approval of the majority of the Authority; and, WHEREAS, the membership of the EDC is made up of four resident representatives and three business representatives; and, WHEREAS, on January 28, 2002, the Authority approved the appointment of two business representatives to the EDC: 1. Jason Helgemoe, Western Bank (term to expire December 31, 2004) 2. David Fox, FedTech (term to expire December 31, 2004) NOW, THEREFORE, BE IT RESOLVED that the Mounds View Economic Development Authority does hereby approve the appointments as so identified. Adopted this 11th day of February, 2002. _____________________________ Richard Sonterre, President Attest: _____________________________ Kathleen Miller, Executive Director SEAL Motion: ________ Second: ________ Sonterre: Stigney: Quick: Thomas: Marty: EDA Consent Item 7b Item No: 8A Meeting Date: Feb 11, 2002 Type of Business: EDA Business City of Mounds View Staff Report To: Mounds View Economic Development Authority From: James Ericson, Community Development Director Item Title/Subject: Consideration of Resolution 02-EDA-160 Approving First Half Developer Payments for the Building N and Silver Lake Pointe Developments Date of Report: February 7, 2002 Background: Aaron Backman and Charlie Hansen have been working many hours together with the assistance of our TIF advisors to come up with the appropriate pay-as-you-go development assistance payments. Discussion: After long and careful review, staff is confident with the accuracy of the payments for the two projects outlined in Resolution 02-EDA-160. Payments for the remaining pay-as-you- go project will not be made at this time as it appears that the developer has been overpaid in excess of what the first half 2002 payment would have been. Staff will be on hand at the meeting to discuss this in as much detail as the Authority would desire. Recommendation: Approve Resolution 02-EDA-160 approving first half 2002 developer payments for the Building N and Silver Lake Pointe Developments. _____________________________________ James Ericson Community Development Director 763-717-4021 RESOLUTION NO. 02-EDA-160 MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY COUNTY OF RAMSEY STATE OF MINNESOTA RESOLUTION AUTHORIZING PAYMENT OF PAY-AS -YOU-GO DEVELOPMENT PAYMENTS TO THE EVEREST GROUP AND HEARTLAND MOUNDS VIEW COMMON BOND It is hereby resolved by the Board of Commissioners (the “Board”) of the Mounds View Economic Development Authority (the “Authority”) as follows: WHEREAS, the EDA has entered into pay-as-you-go development agreements on five properties with the developers of those properties; and, WHEREAS, first half payments for these agreements are due on February 1st; and, WHEREAS, questions regarding calculations on past payments have been found for three of the agreements; and, WHEREAS, recalculations of the past payments are complete; and, WHEREAS, payment of $24,311.35 to The Everest Group for the Building N Project is now appropriate; and, WHEREAS, payment of $19,980.12 to Heartland-Mounds View Common Bond for the Silver Lake Pointe Project is now appropriate. NOW THEREFORE BE IT RESOLVED, that the Mounds View Economic Development Authority, that payments of $24,311.35 to The Everest Group and $19,980.12 to Heartland-Mounds View Common Bond under pay-as-you-go development agreements may now be made and subsequently included on the February 25, 2002 Just and Correct Claims List. Adopted by the Board of Commissioners of the Mounds View Economic Development Authority this 11th day of February 2002. ___________________________ Rich Sonterre, President ATTEST: ____________________________ Kathleen Miller, Executive Director Motion: Second: Sonterre: Stigney: Quick: Marty: Thomas: