HomeMy WebLinkAbout02-25-2002Item No: EDA 8A
Meeting Date: February 25, 2002
Type of Business: EDA Business
WK: Work Session; PH: Public Hearing;
CA: Consent Agenda; CB: Council Business
City of Mounds View Staff Report
To: Mounds View Economic Development Authority
From: James Ericson, Community Development Director
Item Title/Subject: Consideration of EDA Resolution 02-EDA-161
Authorizing Expenditure of Tax Increment Funds for
Trailway Lighting Improvements within the County
Highway 10 Corridor
Date of Report: February 20, 2002
Background:
This item was before the City Council for discussion purposes at the February 19, 2002
Council Worksession. As the Authority may recall, the EDA approved expenditure of
$82,500 in 2000 for streetlight and trailway improvements associated with the Mermaid
and Walgreens developments. Because of setbacks with the Mermaid and delays with
Xcel Outdoor Lighting, the dollars appropriated for the Mermaid lights and trail extension
went unexpended.
Discussion:
Staff has presented the Council and Authority with different the trailway lighting options,
and it was determined that the shoebox styled fixture, while not overly decorative, was a
more cost effective fixture to install within the corridor to light the corridor trailways. The
shoebox lights are almost half the cost of the more decorative “Domus” lights that were
installed in front of City Hall and in front of the Walgreens development. The cost to
install shoebox lights from County Road H to Woodale Drive will be $47,600, according to
the quote provided by John Olson of Xcel Outdoor lighting. The prorated cost of the
lighting that would be in front of the Mermaid would be $19,038. That would leave
approximately $28,562 for which the City would be responsible.
On a side note, the $82,500 also included appropriation to extend the Mermaid trailway
from the north Perkins property line the remaining distance to the intersection of County
Highway 10 and Woodale Drive. This expenditure is not a part of the attached resolution,
however the Authority may want to briefly discuss this issue. Staff will be prepared to
address potential funding sources for the extension, which could cost $10,000 if it were
installed by the City. The trail extension could cost much less if it were done by the
Mermaid’s contractor at the same time the Mermaid trail was installed. Staff has
requested a “bid” from the Mermaid contractor to do the extension and we will inform the
Council and Authority of any potential savings.
Mermaid Lighting Report
Feb 25, 2002
Page 2
Recommendation:
Staff recommends adoption of EDA Resolution 02-EDA-161, a resolution authorizing the
expenditure of $30,000 of tax increment funds for trailway lighting improvements within
the Highway 10 Corridor. Staff would further request authorization to refund to the
Mermaid $4,046, which represents the amount they overpaid for streetlights.
_____________________________________
James Ericson
Community Development Director
763-717-4021
Attachment:
1. EDA Resolution 02-EDA-161
N:\DATA\GROUPS\COMDEV\Special Projects\SP-106-00 (Corridor Lighting)\Lighting Report - Feb 25, 2002.doc
RESOLUTION NO. 02-EDA-161
MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY
COUNTY OF RAMSEY
STATE OF MINNESOTA
RESOLUTION APPROVING AND AUTHORIZING THE EXPENDITURE OF TAX
INCREMENT FUNDS FOR THE INSTALLATION OF TRAILWAY LIGHTING
IMPROVEMENTS WITHIN THE HIGHWAY 10 CORRIDOR
IT IS HEREBY RESOLVED by the Board of Commissioners (the ‘Board’) of the
Mounds View Economic Development Authority (the ‘Authority’) as follows:
Section 1. Recitals.
1.01 The Authority has the powers provided in Minnesota Statutes,
Sections 469.124 to 469.134 and 469.090 to 469.108 (collectively, the “Act”).
1.02 Pursuant to and in furtherance of the objectives of the Act, the
Authority has undertaken a program to promote development and
redevelopment of certain land within the City of Mounds View and in this
connection is engaged in carrying out the Mounds View Economic Development
Project (the “Project”) within the City.
1.03 There has been approved pursuant to the Act a Project Plan for the
Project.
1.04 The redevelopment of property within the Project is a stated
objective of the Project Plan.
1.05 In order to achieve the objectives of the Project Plan, the
Authority has determined to provide substantial aid and assistance through the
financing of certain public costs of development.
1.06 It has been proposed that the Authority approve and authorize the
expenditure of funds to install trailway and streetlight improvements within the
Highway 10 corridor to enhance and improve appearances and promote
improved pedestrian safety.
Section 2. Resolved.
2.01 The Board hereby determines that the Authority’s expenditure of
tax increment funds would be in furtherance of the Project Plan and hereby
approves and authorizes said action.
Resolution 02-EDA-161
Page 2
2.02 That the Board of the Authority hereby determines that the
expenditure of funds will help realize the public purposes of the Act and are in
furtherance of the Project Plan and authorizes the President and Executive
Director to appropriate a maximum of $30,000 in tax increment funds to install
trailway lighting improvements within the Highway 10 corridor for safety,
aesthetic and redevelopment purposes.
Adopted by the Board of Commissioners of the Mounds View Economic
Development Authority this 25th day of February, 2002.
___________________________
Richard Sonterre, President
ATTEST:
____________________________
Kathleen Miller, Executive Director
Motion: _______
Second: _______
Sonterre:
Stigney:
Quick:
Marty:
Thomas:
T:\2002\EDA\Resolutions\02-EDA-161.doc
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.
PROCEEDINGS OF THE MOUNDS VIEW EDA
CITY OF MOUNDS VIEW
RAMSEY COUNTY, MINNESOTA
EDA Regular Meeting
February 11, 2002
Mounds View City Hall
2401 Highway 10, Mounds View, MN 55112
8:41 P.M.
1. CALL MEETING TO ORDER
2. ROLL CALL: President Sonterre, Vice President Stigney, Commissioner Quick,
Commissioner Marty, Commissioner Thomas
NOT PRESENT: Marty.
3. APPROVAL OF AGENDA
Community Development Director Ericson requested that discussion regarding proposed
authorization to initiate condemnation proceedings to acquire a parcel necessary for the Mermaid
redevelopment project be added as Item 8B under EDA Business.
MOTION/SECOND: Thomas/Quick. To Approve the Agenda for February 11, 2002 as
amended.
Ayes – 4 Nays – 0 Motion carried.
4. APPROVAL OF EDA MINUTES
A. Approve Minutes of January 28, 2002.
President Sonterre indicated he had just received a packet and noted Vice President Stigney had
not received a packet.
MOTION/SECOND: Sonterre/Quick. To Table Approval of the Minutes of the EDA for
January 28, 2002.
Ayes – 4 Nays – 0 Motion carried.
5. SPECIAL ORDER OF BUSINESS
None.
Mounds View EDA February 11, 2002
Regular Meeting Page 2
6. REPORTS
None.
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.
B. Resolution 02-EDA-159 Approving Appointments to the Economic Development
Commission.
MOTION/SECOND: Quick/Thomas. To Approve Consent Agenda Items A and B as Presented.
Vice President Stigney asked that the appointments be read.
Community Development Director Ericson indicated that the appointments had been made
previously and this puts it into resolution form to aid in tracking it.
Ayes – 4 Nays – 0 Motion carried.
8. EDA BUSINESS
A. Resolution 02-EDA-160, Approving Developer Payments for Building N and
Silver Lake Pointe Projects
Economic Development Coordinator Backman read Resolution 02-EDA-160.
Vice President Stigney asked whether the recalculation amount turned out that the City was
paying more or less.
Economic Development Coordinator Backman indicated that in two cases there were
overpayments and in one case a modest underpayment. He then explained the calculation and
differences in payments for Council.
Vice President Stigney thanked Mr. Backman for his work to resolve the matter.
MOTION/SECOND: Quick/Stigney. To Waive the Reading and Approve Resolution 02-EDA-
160, a Resolution Approving Developer Payments for Building N and Silver Lake Pointe
Projects.
Ayes – 4 Nays – 0 Motion carried.
Mounds View EDA February 11, 2002
Regular Meeting Page 3
B. Discussion Regarding Proposed Authorization to Initiate Condemnation
Proceedings to Acquire a Parcel Necessary for the Mermaid Redevelopment
Project.
Community Development Director Ericson indicated he had received information from Mr. Hall
from the Mermaid concerning issues surrounding acquiring the last parcel for the Mermaid
redevelopment. He then explained that requests have been made of Mr. Hall and his attorney and
those requests have been complied with but the other party is still not satisfied.
Director Ericson explained that he had spoken to the property owner in Boston and, after dealing
with the property owner, understands the frustration of Mr. Hall in this matter. He then asked
permission from the Authority for Staff to indicate that condemnation proceedings will be
commenced if the property is not transferred by February 25, 2002.
City Attorney Riggs clarified that Director Ericson was seeking approval from the Authority to
send a letter to the company in Boston indicating that the City will be commencing
condemnation proceedings if the property does not change hands by February 25, 2002.
Director Ericson indicated that Mr. Hall would pay for all the legal costs for the procedure.
MOTION/SECOND: Sonterre/Thomas. To Direct Staff to Draft a Letter to the Property Owner
Indicating that the City Would Begin Condemnation Proceedings if the Property Does not
Change Hands by February 25, 2002 as Recommended by Staff.
President Sonterre requested that all necessary and appropriate real estate and financial
stakeholders be notified of the potential condemnation.
Ayes – 4 Nays – 0 Motion carried.
Mr. Hall thanked the Authority for its assistance in this matter.
9. ADJOURNMENT
President Sonterre adjourned the meeting at 8:57 p.m.
Respectfully submitted,
Recorded and transcribed by:
Joan Lenzmeier
TimeSaver Off Site Secretarial, Inc.