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HomeMy WebLinkAbout12-10-2018 EDA CLOSED SESSION1 552863v2 SJR MU205-13 PROCEEDINGS OF THE CITY OF MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY OF MOUNDS VIEW, MINNESOTA Monday, December 10, 2018 at 4:30 p.m. Mounds View City Hall 2401 County Road 10, Mounds View, MN 55112 The Board of Commissioners of the Economic Development Authority of Mounds Views, Minnesota (the “EDA”) held a special meeting on December 10, 2018 at 4:30 p.m. at Mounds View City Hall, 2401 Mounds View Boulevard, Mounds View, Minnesota for the following purposes: A. CLOSED SESSION – SKYLINE PROJECT: Pursuant to Minnesota Statues Sections 13D.05, subdivision 3(c) and 13.44, subdivision 3, to conduct a closed EDA meeting concerning real property located at addressed noted below to determine the asking price, to consider strategies and to develop or consider offers or counteroffers for the sale of such real property and to review confidential appraisal information for such real property. 4889 Old Highway 8 Mounds View, Minnesota PINs: 17.30.23.14.0001, 117.30.23.14.0002, 17.30.23.14.0003 The EDA met in Closed Session to discuss the Skyline Parcels Purchase Agreement. The purchase price, size of the parcel and relocation costs were considered by the Authority. MOTION/SECOND: Gunn/Meehlhause. To Close the Executive Session portion of the EDA and Open the EDA Meeting at 4:48 p.m. Ayes – 5 Nays – 0 Motion carried. Becky Landon discussed the Skyline Parcels Purchase with EDA and noted the site had 16 units and a house on the property. She commented on the deadlines for the project. Further discussion ensured regarding the crime and calls for police services that occur at the Skyline Motel. EDA consensus was to direct staff to investigate potential relocation costs and to move forward with this purchase. B. CLOSED SESSION -- CROSSROAD POINTE: Pursuant to Minnesota Statutes 2 552863v2 SJR MU205-13 Sections 13D.05, subdivision 3(c) and 13.44, subdivision 3, to conduct a closed EDA meeting concerning real property located at addresses noted below, to determine the asking price, to consider strategies and to develop or consider offers or counteroffers for the sale of such real property and to review confidential appraisal information for such real property. 2400 County Road H2 Mounds View, Minnesota PIN: 08.30.23.31.0005 2394 Mounds View Boulevard Mounds View, Minnesota PIN: 08.30.23.31.0071 2390 Mounds View Boulevard Mounds View, Minnesota PIN: 08.30.23.31.0072 The EDA continued to meet in open session regarding this agenda item as follows: President Mueller commented on the 12 points the EDA has been negotiating with INH and noted the two parties had worked down to only two points of contention. Business Development Coordinator Beeman commented further on the two points of contention and explained INH would like to have the cost for the environmental study removed from the purchase price. In addition, INH would like the cost for the trail to be taken out of the purchase price. Jim Illies, INH, stated INH was in agreement on the purchase price. However, the costs for Items A through C should allow for a maximum deduction of $250,000. He discussed the proposed development noting the project would have 127 units. He explained the units would be studios up to 3 bedrooms. He reported an architect has been hired to assist with the building and parking plans. Corey Gerads, Alliance Building Corporation, commented on the current projects he has underway with INH. It was noted the Crossroad Pointe site would be completed in one phase. President Mueller asked if the developer supported the underground parking. Mr. Illies stated he did support underground parking and noted he had completed this in other developments. He explained this would be a great amenity for residents within the apartment complex. MOTION/SECOND: Meehlhause/Bergeron. To Close the EDA Meeting at 5:20 p.m. regarding this agenda item. 3 552863v2 SJR MU205-13 Ayes – 5 Nays – 0 Motion carried. The EDA met in Closed Session to discuss the Crossroad Pointe Purchase Agreement. The purchase price was reviewed along with the terms of the agreement. The EDA adjourned the closed meeting at 5:54 p.m., and recessed to the EDA’s open agenda. C. OPEN SESSION: (to follow immediately after the closed session, if necessary). 1. CALL TO ORDER President Mueller called the meeting to order at 6:03 p.m. 2. ROLL CALL: President Mueller, Vice President Gunn, Commissioner Hull, Commissioner Meehlhause, Commissioner Bergeron NOT PRESENT: None. 3. APPROVAL OF AGENDA MOTION/SECOND: Gunn/Meehlhause. To Approve the December 10, 2018, Agenda as amended removing Item 6A. Ayes – 5 Nays – 0 Motion carried. 4. PUBLIC INPUT: Brian Amundsen, 3048 Woodale Drive, spoke to the EDA regarding the Authority’s budget. He expressed concern that the EDA’s budget was not included in the recent meeting packet. He asked if the EDA has identified how the $100,000 requested levy would be used. President Mueller explained the City previously had tax increment financing districts in place that helped the City to support economic development. She reported these districts have since retired and therefore the EDA has set a $100,000 levy in order to assist with economic development as well as providing financial assistance for loan programs to residents and businesses in Mounds View. 5. CONSENT AGENDA A. November 26, 2018, EDA Minutes. MOTION/SECOND: Meehlhause/Gunn. To Approve the Consent Agenda as presented. 4 552863v2 SJR MU205-13 Ayes – 5 Nays – 0 Motion carried. 6. EDA BUSINESS A. Skyline Project 1. General Discussion/Issues 2. Other matters This item was previously discussed in the EDA’s agenda. B. Crossroad Pointe 1. General Discussion/Issues 2. Other matters President Mueller explained the EDA has been in negotiations with INH Properties. She was pleased to report that a tentative agreement has been reached between both parties and staff has been directed to draft documents. She noted a public hearing would be held regarding this project in January 2019. Jim Illies, INH Properties, provided the EDA with a presentation on the Crossroad Pointe Redevelopment project. He described the changes that had been made to the market rate apartments after discussing the project with an architect. He reported the project would be 4-stories with the 1st floor being used for underground parking. It was noted each unit would have one underground parking space and one surface parking space. He commented further on the common area and outdoor amenities that would be included in the project. He described the combination of units that would be included in the apartment complex, which would range from studios to three-bedroom units. Further discussion ensued regarding the building materials that would be used on the exterior of the apartment building. Corey Gerads, President of Alliance Building Corporation, introduced himself to the EDA and described the type of multi-tenant projects that have been completed by Alliance Building Corporation. He commented further on the design and bidding process for the Crossroad Pointe development. He explained there was a huge advantage to this building having underground parking. He reported an architect would assist him in selecting building exterior colors. Mr. Illies reviewed several photographs of other apartment complexes he has constructed with Alliance Building Corporation with the EDA. He commented further on the potential rental rates that would be charged for the apartment units. Commissioner Gunn asked if the apartment units would have washers and dryers. Mr. Illies stated each unit would have a washer and dryer. Commissioner Meehlhause requested further information on the size of the 5 552863v2 SJR MU205-13 apartment units. Mr. Illies indicated the studio units would range from 570 square feet to 650 square feet. The one-bedroom units would be around 800 square feet and two-bedroom units would be 1,000 square feet. He reported the three- bedroom units would be around 1,300 square feet. President Mueller questioned who would manage the building. Mr. Illies stated INH would manage the property. President Mueller thanked INH for their presentation. She indicated she was looking forward to this project moving forward in 2019. C. Boulevard 1. Project Approvals: Resolution 18-EDA-317 2. Other Matters City Attorney Riggs discussed the Boulevard project with the EDA. He described the documents that had to be completed for the bonds and TIF financing for this project. He was pleased to report these documents were ready to move forward. MOTION/SECOND: Gunn/Meehlhause. To Waive the Reading and Adopt EDA Resolution 18-EDA-317, Approving Subordination Agreement and Assignment of Contract for Private Development and Tax Increment Financing. Ayes – 5 Nays – 0 Motion carried. 7. REPORTS Commissioner Meehlhause reported the Mounds View Business Council would be meeting on Wednesday, December 12th at 7:30 a.m. at The Mermaid. 8. NEXT SPECIAL EDA MEETING: Thursday, December 27, 2018 at 6:00 p.m. NEXT EDA MEETING: Monday, January 9, 2019 at 6:00 p.m. 9. ADJOURNMENT President Mueller adjourned the EDA meeting at 6:35 p.m. Respectfully submitted, Recorded and transcribed by: Heidi Guenther TimeSaver Off Site Secretarial, Inc.