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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.