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HomeMy WebLinkAbout07-24-2000M:\MasterFiles\1999 thru 2010\2000\EDA\EDA Packets\07-24-00\Agenda -- July 24, 2000 EDA Meeting.doc CITY OF MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY MONDAY, JULY 24, 2000 AGENDA ROLL CALL: President Coughlin, Vice President Stigney, Commissioner Marty, Commissioner Quick, Commissioner Thomason 1. AGENDA ADDITIONS: 2. APPROVAL OF MINUTES A. June 12, 2000 3. SPECIAL ORDER OF BUSINESS: None 4. CONSENT AGENDA 5. EDA BUSINESS 6. REPORTS 7. ADJOURNMENT PROCEEDINGS OF THE MOUNDS VIEW EDA CITY OF MOUNDS VIEW RAMSEY COUNTY, MINNESOTA Regular Meeting June 12, 2000 Mounds View City Hall 2401 Highway 10, Mounds View, MN 55112 8:20 P.M. CALL MEETING TO ORDER ROLL CALL: Coughlin, Marty, Quick, and Stigney. NOT PRESENT: Thomason. President Coughlin stated Commissioner Thomason has been granted a medical leave of absence for the entire month of June. 1. AGENDA ADDITIONS A. Approve agenda of June 12, 2000 President Coughlin asked the Commission if anyone would like to add items to the agenda. MOTION/SECOND: Marty/Stigney. To approve the agenda of EDA for June 12, 2000, as presented. Ayes – 4 Nays – 0 Motion carried. 2. APPROVAL OF EDA MINUTES A. Approve minutes of May 8, 2000. MOTION/SECOND: Marty/Quick. To approve the minutes of EDA for May 8, 2000, as presented. Commissioner Marty commended the recording secretary on the meeting minutes. Ayes – 4 Nays – 0 Motion carried. 3. SPECIAL ORDER OF BUSINESS None. Mounds View EDA June 12, 2000 Regular Meeting Page 2 4. CONSENT AGENDA None. 5. EDA BUSINESS A. Consideration of Bid Proposals for 2901 Highway 10 Demolition. Economic Development Coordinator Parrish stated various options were discussed by the Economic Development Authority and Commission to address the current condition of the former gas station located at 2901 Highway 10. He indicated that based upon those discussions, it was determined that providing demolition assistance would be the most effective and economical method of improving the condition of the property. After discussing this option with the property owner, and obtaining their consent, requests for proposals were mailed out to local demolition contractors, with the low bid of $5,024, coming back from Dirt and Demolition of Coon Rapids. Economic Development Coordinator Parrish stated the resolution before the Authority would authorize this expenditure, not to exceed $6,028 in Tax Increment Funds, which figure reflects a 20 percent contingency that has been incorporated to account for the State mandated Environmental and Asbestos Survey. MOTION/SECOND: Quick/Stigney. To Waive the Reading and Approve Resolution No. 00- EDA-130, a Resolution Approving and Authorizing the Expenditure of Tax Increment Funds for the Demolition of 2901 Highway 10. Vice President Stigney suggested a friendly amendment to waive the reading. The Motioner accepted. Ayes – 3 Nays – 0 Motion carried. Mayor Coughlin noted Commissioner Marty was not present for this vote. B. Consider Adoption of Updated Tax Increment Finance Policy. Economic Development Coordinator Parrish stated over the past few months, the Economic Development Authority and the Economic Development Commission have evaluated and made several revisions to Mounds View’s Tax Increment Finance Policy. He indicated the primary change is an addition to the Policy related to the establishment of Tax Increment Financing Districts, the use of pooled funds, which are commonly referred to as excess increment, and procedures related to parcel decertification. He stated the Policy also includes a revised tool for evaluating the desirability of particular projects, and a sample for analysis. Mounds View EDA June 12, 2000 Regular Meeting Page 3 Economic Development Coordinator Parrish advised that two modifications have been incorporated since the Policy was presented at the June 5th Council Work Session. He explained that the evaluation tool has been adjusted to account for any losses in square-footage or jobs that may result in a redevelopment project, and secondly, language directing the Economic Development Commission to examine potential parcels for early decertification has been incorporated into Section 7. He indicated that with these exceptions, the Policy remains relatively unchanged. MOTION/SECOND: Quick/Marty. To Waive the Reading and Adopt the Updated Tax Increment Finance Policy. Vice President Stigney stated this Policy was originally to be pattered after the St. Louis Park Tax Increment Finance Policy, and it has been somewhat spun off by electronic means from the city of Elk River. He indicated he had requested a current copy because he was uncertain what he had done with his copy of the St Louis Park policy, and in reviewing the two policies that were before the Authority, he noted many items that differ from the method utilized by St. Louis Park. He advised that the Policy should be examined further, to determine if the Authority desires to make some of these amendments to the policy. He indicated a side-by-side comparison of both policies would clarify these differences. Economic Development Coordinator Parrish indicated the entire Policy had not been patterned after that of St. Louis Park, but rather, specifically, the evaluation tool. He explained that the actual text of the Policy was basically the City’s own, with some additions developed at the staff level, and it was not modeled after any particular policy. He stated Attachment C, the evaluation tool, is consistent with the cities of St. Louis Park and Elk River. President Coughlin added that as Liaison to the Economic Development Commission, he was aware that the original Policy was modified and discussed at great length by the members of the Commission, which forwarded this item by unanimous vote to the Authority. Vice President Stigney pointed out a typographical error under General Policy, second paragraph, and suggested this sentence indicate “The Mounds View Economic Development Authority shall consider Tax Increment Financing…” President Coughlin stated with the consent of the Authority, the word “consider” would be added to this sentence. Vice President Stigney inquired why there was a reference to telecommunications in Item 5, Projects Eligible for Tax Increment Financing. Economic Development Coordinator Parrish stated this project was listed within the existing policy, and is in accordance with State Statutes, which specify public improvements or facilities, Mounds View EDA June 12, 2000 Regular Meeting Page 4 and telecommunications could be construed as such. He stated telecommunications would be an eligible project cost, and this would go to technological infrastructure as well as general telecommunication items. Ayes – 3 Nays – 1 (Stigney) Motion carried. C. Authorize Economic Development Commission to Examine Business Improvement Partnership Loan Request. Economic Development Coordinator Parrish stated staff was recently contacted by Ms. Nicole Vole, who is planning to open a Coffee Shop at 2888 County Road I, who inquired regarding the potential to utilize the City’s Business Improvement Partnership Loan Program, in order to finance the necessary interior and exterior improvements to start the business. Economic Development Coordinator Parrish indicated this program is done in partnership with a local bank, and provides one half of the loan at 2 percent interest, with a maximum level of City participation at $25,000 on a $50,000 loan, and the minimum level of participation being $10,000. He advised that in addition to the minimum and maximum loan requirements, one of the requirements is that the applicant has been in Mounds View for at least two years. Economic Development Coordinator Parrish stated as a new business looking to locate in Mounds View, the prospective applicant would not meet this criteria, therefore, at this point, staff is requesting conceptual approval to deviate from the existing requirement, and if the Authority is comfortable with adapting the existing program, it would then be appropriate to direct the Economic Development Commission to evaluate the prospective application on a more detailed basis. Vice President Stigney inquired if staff was requesting to have this evaluated as an exception to the policy or a change to the policy. Economic Development Coordinator Parrish stated at this point, the evaluation would be in terms of an exception to the existing policy. He indicated the Community Development Department has included further evaluation of the Business Improvement Partnership Loan Program in its future work plan. He pointed out that based upon the priority rankings, this does not appear to be a high priority, however, there is something to be said for evaluating the program to meet current needs. He advised that the program has not been utilized as of late. Vice President Stigney inquired if the Authority was simply to evaluate this Program in terms of making an exception for this applicant. Economic Development Coordinator Parrish stated this was correct. President Coughlin clarified that the recommendation was to direct the Economic Development Mounds View EDA June 12, 2000 Regular Meeting Page 5 Commission to evaluate the program, and obtain to Authority’s consent to proceed with the evaluation, to determine if this was a viable application. Economic Development Coordinator Parrish explained that the first issue was to determine if the Authority was comfortable with deviating from the existing policy, and if so, the applicant would be advised to submit an application to be reviewed by the Economic Development Commission. Commissioner Marty stated it was his understanding that the Business Partnership Improvement Program has not been utilized in quite some time. Economic Development Coordinator Parrish stated it has been years since the Program was utilized. President Coughlin stated this was an indication that an evaluation was in order. He inquired if staff would like a motion in this regard. MOTION/SECOND: Marty/Quick. To Authorize the Economic Development Commission to Examine Business Improvement Partnership Loan Program, and to Allow Staff to Forward for Consideration, the Concerns Raised by Vice President Stigney. Vice President Stigney indicated the policy states that the applicant have a business in Mounds View for at least two years, and the reason for this is that many businesses fail within their first two years of operation. He advised that by changing the policy they might open it up to businesses that have not shown any track worthiness, and could possibly fail and put the City at risk for the amount it has invested. He stated that if the City desired to attract a business, for example, a business that has not been operating in Mounds View but a nearby city, it would be preferable to offer them assistance to bring them into the City. Vice President Stigney stated he was somewhat uncomfortable with the concept of opening this program up to anyone who desires to open a new business. He pointed out that this would bring forward other considerations, for example, a Tattoo Parlor might wish to come into the City, and request subsidy to start their business. He stated he would be uncomfortable with this. President Coughlin stated ironically, the subject site was the site that was to be considered for a Tattoo Parlor. He suggested the Motioner and Seconder include for consideration, the concerns raised by Vice President Stigney. Commissioner Marty agreed. He indicated the motion was not to change the policy, but rather, to forward this matter to the Economic Development Commission for consideration. President Coughlin clarified that he would request the Motioner and Seconder allow staff to forward the stated concerns to the Economic Development Commission. The Motioner and Seconder agreed. Mounds View EDA June 12, 2000 Regular Meeting Page 6 Ayes – 4 Nays – 0 Motion carried. 6. REPORTS None. Vice President Stigney stated with regard to the comment that the Business Improvement Partnership Loan Program has not been utilized, he was aware that the Mounds View Steak House would have liked to have had the opportunity to utilize this Program, however, they were not aware of it, and therefore, purchased all of their own upgrading and improvements. He indicated they had attempted to apply retroactively, however, the City rejected this request. He advised that the City should provide the businesses in the community information regarding the programs that are available, adding that they might be more apt to apply for these programs if they are aware of them. President Coughlin stated Economic Development Coordinator was doing a great job in terms of reaching out to the business community in this regard. 7. ADJOURNMENT President Coughlin adjourned the meeting at 8:36 p.m. Respectfully submitted, Recorded and transcribed by: Trish Pearson TimeSaver Off Site Secretarial, Inc.