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Home My WebLink About12-10-2001M:\MasterFiles\1999 thru 2010\2001\EDA\EDA Packets\12-10-2001\Agenda - EDA Meeting, December 10, 2001.doc CITY OF MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY MONDAY, DECEMBER 10, 2001 AGENDA 1. CALL MEETING TO ORDER 2. ROLL CALL: President Sonterre, Vice President Stigney, Commissioner Marty, Commissioner Quick, Commissioner Thomas 3. APPROVAL OF AGENDA 4. APPROVAL OF MINUTES A. October 8, 2001 5. SPECIAL ORDER OF BUSINESS: 6. REPORTS 7. CONSENT AGENDA 8. EDA BUSINESS A. Consider Acceptance of a Proposal to Purchase and Renovate the EDA- owned Property Located at 2091 Hillview Road - Ericson 9. ADJOURNMENT PROCEEDINGS OF THE MOUNDS VIEW EDA CITY OF MOUNDS VIEW RAMSEY COUNTY, MINNESOTA Regular Meeting October 8, 2001 Mounds View City Hall 2401 Highway 10, Mounds View, MN 55112 9:14 P.M. 1. CALL MEETING TO ORDER 2. ROLL CALL: Sonterre, Stigney, Marty, Thomas and Quick. NOT PRESENT: None. 3. APPROVAL OF AGENDA MOTION/SECOND: Stigney/Marty. To Approve the Agenda for October 8, 2001 as presented. Ayes – 5 Nays – 0 Motion carried. 4. APPROVAL OF EDA MINUTES A. Approve Minutes of September 24, 2001. MOTION/SECOND: Marty/Thomas. To Approve the Minutes of the EDA for September 24, 2001 as presented. Ayes – 5 Nays – 0 Motion carried. 5. SPECIAL ORDER OF BUSINESS None. 6. REPORTS None. 7. CONSENT AGENDA None. Mounds View EDA October 8, 2001 Regular Meeting Page 2 8. EDA BUSINESS A. Discussion and Consideration of EDA Resolution 01-EDA-153, a Resolution Providing for the Issuance and Sale of the EDA’s Taxable Tax Increment Bonds, Series 2001, and Approving Execution of Various Agreements. Community Development Director Ericson indicated Resolution 01-EDA-153 would provide for the issuance and sale of Tax Increment Bonds and approve the execution of various agreements. He then indicated that the sale authorizes bonds for the Mermaid project in an amount not to exceed $850,000 and an interest rate not to exceed 7.75%. He further indicated that this agreement is the culmination of two or three years of Staff time to bring this matter to conclusion. Community Development Director Ericson indicated that the Halls have begun work on the banquet center and the hotel component and noted that the hotel would be an AmericInn with 70 rooms. MOTION/SECOND: Quick/Thomas. To Waive the Reading and Approve Resolution 01-EDA- 153, a Resolution Providing for the Issuance and Sale of the EDA’s Taxable Tax Increment Bonds, Series 2001, and Approving Execution of Various Agreements. Vice President Stigney asked Mr. O’Meara if, in light of the current economic conditions, the interest rate on the bonds would be lower than 7.75%. Mr. O’Meara indicated that as of Friday the bonds were projected to be 7.5% and noted that these are revenue bonds not general obligation bonds and, therefore, the interest rate is slightly higher. Vice President Stigney asked if Mr. O’Meara receives a commission on the bonds. Mr. O’Meara indicated he is an attorney and works for a fee not a commission. He then indicated that the placement agent’s fee may be a percentage of the bond but said it is more or less fixed. Ayes – 5 Nays – 0 Motion carried. 9. ADJOURNMENT President Sonterre adjourned the meeting at 9:23 p.m. Respectfully submitted, Recorded and transcribed by: Joan Lenzmeier Mounds View EDA October 8, 2001 Regular Meeting Page 3 TimeSaver Off Site Secretarial, Inc. Item No: 8A Meeting Date: December 10, 2001 Type of Business: EDA-B WK: Work Session; PH: Public Hearing; CA: Consent Agenda; CB: Council Business City of Mounds View Staff Report To: Honorable Mayor and City Council From: James Ericson, Community Development Director Item Title/Subject: Consideration of EDA Resolution 01-EDA-154: Acceptance of a Proposal for the Purchase and Renovation of the EDA-owned Property Located at 2091 Hillview Road. Date of Report: December 6, 2001 Background: The EDA acquired the property located at 2091 Hillview Road from the Department of Housing and Urban Development (HUD) on September 4, 2001. At the worksession, staff presented a few options regarding the property and was directed to prepare and distribute an RFP for the purchase and redevelopment of the four-plex. The targeted audience of the RFP was experienced residential renovation specialists. The deadline to return the proposals was December 5, 2001. Staff received 10 proposals. Discussion: Of the ten responses staff received, five were deemed less than satisfactory for a number of reasons such as depth of the response, breadth of renovation experience, and in one case, the purchase amount was less than the minimum requested. The remaining proposals were judged on a number of RFP identified criteria and while three offers stood out, it was a difficult process identifying the top proposal. The offers ranged from a low of $43,000 to a high of $130,000. Most proposals contemplated construction costs in the $100,000 range, but a few were lower one significantly higher. The total investments ranged from $130,000 to a high of $235,000. Staff has drafted a resolution for the EDA’s consideration that at this point leaves blank the firm name and the offer amount. While we have ranked the top three proposals in Exhibit A, staff will further investigate these firms and will make a final recommendation at the meeting. Barring any last minute revelations, we would anticipate recommending that offer from the firm ranked #1 on Exhibit A be accepted. Recommendation: Consider EDA Resolution 01-EDA-154, revised to show the approved renovation specialist and bid amount. The resolution also indicates (on Page 2) that a public hearing will be held to formally authorize the sale of the property in accordance with Minnesota statutory requirements. The Purchase and Redevelopment Contract will be drafted during this time and if the contract is not executed within the allowed timeframe, the next best offer will be considered. Please call me prior to the meeting if you should have any questions about this. _____________________________________ James Ericson Community Development Director 763-717-4021 Attachment: 1. EDA Resolution 01-EDA-154 N:\DATA\GROUPS\COMDEV\Special Projects\SP-094-01\EDA Report - Dec 10, 2001.doc Resolution 01-EDA-154 Page 3 RESOLUTION NO. 01-EDA-154 MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY COUNTY OF RAMSEY STATE OF MINNESOTA RESOLUTION ACCEPTING THE OFFER FROM___________________ IN THE AMOUNT OF _________ TO PURCHASE AND RENOVATE THE PROPERTY LOCATED AT 2091 HILLVIEW ROAD IN ACCORDANCE WITH THE PURCHASE AND RENOVATION REQUEST FOR PROPOSALS ISSUED NOVEMBER 14, 2001. 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 acquired real property located at 2091 Hillview Road (the “Property”) from the Department of Housing and Urban Development on September 4, 2001; and, WHEREAS, staff presented the EDA with options regarding the property, recommending that the property be sold to an experienced residential renovation specialist by soliciting proposals through a detailed Request for Proposals (RFP); and, WHEREAS, on November 14, 2001, the RFP was delivered to a list of interested parties and firms with distressed-property renovation experience with a return deadline of 4:00 pm, December 5, 2001; and, WHEREAS, by 4:00 pm, December 5, 2001, ten proposals were received for consideration from renovation specialists of varying degrees of experience; and, WHEREAS, the offers to purchase the Property ranged from a low of $43,290 to a conditioned high of $130,000; and, WHEREAS, after careful review and taking all RFP criteria into consideration, staff has identified the top three proposals and has attached for the Board’s consideration Exhibit A, a ranked list of the three top proposals with the best of the three proposals listed first; and, WHEREAS, staff recommends that the Board direct staff to negotiate a Purchase and Redevelopment Contract (the “Contract”) with _______________ for action at the next meeting of the Economic Development Authority. NOW THEREFORE BE IT RESOLVED, that the Mounds View Economic Development Authority, finding that the proposal submitted by _______________ satisfied all requirements of the RFP and was judged best among the ten proposals received, hereby directs staff to negotiate a Purchase and Redevelopment Contract with ________________ for the purchase of and renovation of 2091 Hillview Road for the sum of $_____________, less submitted earnest money. NOW THEREFORE BE IT FURTHER RESOLVED, if, after receiving the Contract, ___________________ fails to execute said Contract within 14 days, the Board shall rescind its approval and offer the Contract to the renovation specialist identified in Exhibit A as being next on the list. NOW THEREFORE BE IT FINALLY RESOLVED, that the Mounds View Economic Development Authority hereby authorizes a Public Hearing to be held at its next meeting to authorize the sale of the Property in accordance with the requirements of Minnesota Statutes 469.105. Adopted by the Board of Commissioners of the Mounds View Economic Development Authority this 10th day of December, 2001. Resolution 01-EDA-154 Page 4 ___________________________ Rich Sonterre, President ATTEST: ____________________________ Kathleen Miller, Executive Director Motion: _______ Second: _______ Sonterre: Stigney: Quick: Marty: Thomas: N:\DATA\GROUPS\ECONDEV\EDA\Resolutions\Res 01\01-EDA-154.doc Resolution 01-EDA-154 Page 5 EXHIBIT A. Three Highest Ranked Responses Rank Firm/Business Offer Construction Costs Total Investment 1. G.R. Danielson & Son $100,100 $134,900 $235,000 2. Renovation, Inc. $90,000 $107,000 $197,000 3. Wade Klick – T/C Builders $130,000 $100,000 $230,000