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HomeMy WebLinkAboutResolution 05-EDA209RESOLUTION NO. 05-EDA-209 MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY COUNTY OF RAMSEY STATE OF MINNESOTA RESOLUTION AUTHORIZING PAYMENT OF PAY-AS-YOU-GO DEVELOPER PAYMENT TO RED CENT MANAGEMENT, LLC FOR THE BUILDING N PROJECT IN MOUNDS VIEW. 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 has entered into pay-as-you-go development agreements on four properties with the developers of those properties; and, WHEREAS, first half payment for Pay 2005 regarding one of these agreements (Building N) was due on August 1st; and, WHEREAS, Bethlehem Baptist Church (BBC) acquired the building in June of 2004 from Everest Development (which assigned its TIF Note to Red Cent Management); and WHEREAS, BBC made a property tax payment of $26,667 to Ramsey County in May of 2005; and WHEREAS, payment of $3,066.17 to Red Cent Management, LLC for the Building N Project in Mounds View is now appropriate. NOW THEREFORE BE IT RESOLVED, that the Mounds View Economic Development Authority does hereby approve a payment of $3,066.17 to Red Cent Management, LLC under apay- as-you-go development agreement. Adopted by the Board of Commissioners of the Mounds View Economic Development Authority this 22nd day of August, 2005. ____ - __ ', ~ /~- ,I Rob Marty, President ATTEST: <- -. _~ --- ` ~ Kurt Ulrich, Executive Director (seal) RESOLUTION NO. 05-EDA-209 MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY COUNTY OF RAMSEY STATE OF MINNESOTA RESOLUTION AUTHORIZING PAYMENT OF PAY-AS-YOU-GO DEVELOPER PAYMENT TO RED CENT MANAGEMENT, LLC FOR THE BUILDING N PROJECT IN MOUNDS VIEW. 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 has entered into pay-as-you-go development agreements on four properties with the developers of those properties; and, WHEREAS, first half payment for Pay 2005 regarding one of these agreements (Building N) was due on August 1st; and, WHEREAS, Bethlehem Baptist Church (BBC) acquired the building in June of 2004 from Everest Development (which assigned its TIF Note to Red Cent Management); and WHEREAS, BBC made a property tax payment of $26,667 to Ramsey County in May of 2005; and WHEREAS, payment of $3,066.17 to Red Cent Management, LLC for the Building N Project in Mounds View is now appropriate. NOW THEREFORE BE IT RESOLVED, that the Mounds View Economic Development Authority does hereby approve a payment of $3,066.17 to Red Cent Management, LLC under apay- as-you-go development agreement. Adopted by the Board of Commissioners of the Mounds View Economic Development Authority this 22nd day of August, 2005. Rob Marty, President ATTEST: Kurt Ulrich, Executive Director (seal) Mounds View EDA August 22, 2005 Regular Meeting Page 19 Mr. McCarty stated the proposed draft contract does not go into those details, which is part of the dissatisfaction of many residents in Mounds View. He suggested the contract lays the entire indemnification requirements entirely on the City. Mr. McCarty read a portion of the indemnification language and stated to him, that is a very strong commitment. He stated that it is fine to say "only to the extent of $200,000," but he would like to see evidence where this body can predispose a court order of over $200,000. He stated that it is a commonsense point of view that until the project is finished for the two years or whatever it is, he doubts that a strong case on behalf of an injured party would allow a limit of $200,000 unless Medtronic will pick up the amount over $200,000. SECOND AMENDMENT MOTION: President Marty/. To amend the third WHEREAS to indicate: "...The EDA has also requested the City Planning Commission to review the plans and did not approve a resolution accordingly, and that the Council schedule a public hearing on the plans upon published notice as required bylaw. Amendment motion died due to lack of a second. Vote on motion as amended: Ayes -4 Nay - 1 (Marty) Motion carried. B. Consideration of EDA Resolution OS-EDA-209, a Resolution Authorizing Payment of Pay-As-You-Go Developer Payment to Red Cent Management, LLC for the Building N Project in Mounds View. Economic Development Coordinator Bachman referenced the packet provided to the Commission and stated he does this report every six months for the Finance Director. He noted two payments were approved for the first part of August to the Silver Lake Point and Midwest Ivy projects. He stated that basically there were additional property taxes paid by Bethlehem Baptist Church. He stated there was acquisition of Building N by the EDC at the end of June 2004. They made a payment at the end of the year and applied for property tax exemption that would be effective for 2005. Ramsey County looked at the transactions and determined there was additional lease revenue paid to the new property owner, Bethlehem Baptist Church, by Medtronic Systems and that went on for a number of months. As a result, Ramsey County determined a portion of the building was taxable so payment of $26,667 was made to Ramsey County in May of 2005. Economic Development Coordinator Bachman advised that there was a larger payment last time but that was for the full building. The way the TIF agreement is structured, there is an excluded base so they get $3,066.16. He explained that there will be a follow up payment in the fall of this year for a similar amount. Mounds View EDA August 22, 2005 Regular Meeting Page 20 President Marty asked if that will pay it off at that point. Economic Development Coordinator Bachman stated he hopes so. MOTION/SECOND: Thomas/Stigney. To Adopt EDA Resolution OS-EDA-209, a Resolution Authorizing Payment of Pay-As-You-Go Developer Payment to Red Cent Management, LLC for the Building N Project in Mounds View. Carol Mueller, 8343 Groveland Road, stated she raised several questions at the last meeting and asked Staff to respond at the meeting tonight so all the residents of Mounds View can hear the answers. Commissioner Thomas suggested it be discussed during the Council meeting so all can hear the answers who are watching the Council meeting. Ayes -5 Nays - 0 Motion carried. 8. REPORTS Ms. Mueller asked Staff to explain what the existing TIF' Districts are, what property the Districts entail, and what percentage of the City's property is in TIF Districts. In addition, she asked how the new action and establishment of a new TIF District will increase the percentage of the City that is TIF'. Director Ericson stated there were three TIF Districts prior to the action taken tonight. Currently there are 225 acres in TIF Districts and Mounds View is about 2,600 acres. Of the total City of Mounds View, 8.55% is captured in TIF District Nos. 1, 2, and 3. The creation of TIF District No. 5 adds 2% that is captured within TIF Districts. However, Outlot A is no longer part of TIF District No. 5. It remained within TIF District No. 3 so that will change, but 10.56% remains the same. Ms. Mueller thanked Mr. Ericson for the response. Vice-President Stigney reported that he attended the YMCA community meeting last week dealing with relocation of employees during reconstruction of City Hall. Vice-President Stigney stated the fireworks last night were fantastic. Economic Development Coordinator Bachman announced a Caribou sighting at Mounds View Square, and that the grand opening will be held this Saturday, August 27 at 5:00 a.m. 9. NEXT EDA MEETING: Monday, September 12, 2005 at 6:30 p.m. Mounds View EDA August 22, 2005 Regular Meeting Page 21 10. ADJOURNMENT President Marty adjourned the meeting at 7:37 p.m. Respectfully submitted, Recorded and transcribed by: Carla Wirth Timesaver Off Site Secretarial, Inc.