HomeMy WebLinkAbout12-27-20181
549165v1 DTA MU205-49
CITY OF MOUNDS VIEW
ECONOMIC DEVELOPMENT AUTHORITY OF
MOUNDS VIEW, MINNESOTA AGENDA AND NOTICE
MOUNDS VIEW CITY HALL
NOTICE OF SPECIAL EDA MEETING
(CLOSED AND OPEN)
Thursday, December 27, 2018
2:00 p.m.
NOTICE IS HEREBY GIVEN that the Board of Commissioners of the Mounds View
Economic Development Authority (the “EDA”) will hold a special meeting on December 27,
2018 at 2:00 p.m. (if necessary, such meeting may be continued to such other date and time as
determined by the EDA) in the council chambers at Mounds View City Hall, 2401 Mounds View
Boulevard, Mounds View, Minnesota, for the following purposes:
A. CLOSED SESSION -- SKYLINE PROJECT: Pursuant to Minnesota Statutes, 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 consider strategies and to
develop or consider offers or counteroffers for the purchase 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, 17.30.23.14.0002, 17.30.23.14.0003
B. OPEN SESSION: (to follow immediately after the closed session, if necessary).
1. CALL TO ORDER
2. ROLL CALL: President Mueller, Vice President Gunn, Commissioner
Hull, Commissioner Meehlhause, Commissioner Bergeron
3. APPROVAL OF AGENDA
4. PUBLIC INPUT:
Citizens may speak to issues not on tonight’s agenda. Before speaking,
please give your full name and address for the minutes. Also, please limit
your comments to three minutes.
5. CONSENT AGENDA
A. Approval of Minutes: December 10, 2018 Executive Session
B. Approval of Minutes: December 10, 2018 Open Session
2
549165v1 DTA MU205-49
6. EDA BUSINESS
A. Skyline Project
1. General Discussion/Issues
2. Resolution No. 18-EDA-318 – A Resolution Authorizing the
Purchase of Real Property
B. Crossroad Pointe
1. General Discussion/Issues
7. REPORTS
8. NEXT EDA MEETING: January 7, 2019 Special Meeting
9. ADJOURNMENT
/s/ Nyle Zikmund
Nyle Zikmund, Executive Director
Dated: December 19, 2018.
PROCEEDINGS OF THE MOUNDS VIEW EDA 1
CITY OF MOUNDS VIEW 2
RAMSEY COUNTY, MINNESOTA 3
4
Executive Session Meeting 5
December 10, 2018 6
Mounds View City Hall 7
2401 County Road 10, Mounds View, MN 55112 8
9
10
1. CALL MEETING TO ORDER 11
12
President Mueller called the meeting to order at 4:31 p.m. 13
14
2. ROLL CALL: President Mueller, Vice President Gunn, Commissioner Bergeron 15
Commissioner Hull, Commissioner Meehlhause, Finance Director Beer, Community 16
Development Director Sevald, Business Development Coordinator Beeman, City 17
Attorney Riggs, and Executive Director Zikmund. 18
19
NOT PRESENT: None. 20
21
OTHERS PRESENT: Becky Landon, Jim Illies and Corey Gerads. 22
23
3. EDA BUSINESS 24
25
A. CLOSED SESSION – SKYLINE PROJECT: Pursuant to Minnesota Statues 26
Sections 13D.05, subdivision 3(c) and 13.44, subdivision 3, to conduct a closed 27
EDA meeting concerning real property located at addressed noted below to 28
determine the asking price, to consider strategies and to develop or consider 29
offers or counteroffers for the sale of such real property and to review 30
confidential appraisal information for such real property. 31
32
4889 Old Highway 8 33
Mounds View, Minnesota 34
PINs: 17.30.23.14.0001, 117.30.23.14.0002, 17.30.23.14.0003 35
36
The EDA met in Closed Session to discuss the Skyline Parcels Purchase Agreement. The 37
purchase price, size of the parcel and relocation costs were considered by the Authority. 38
39
MOTION/SECOND: Gunn/Meehlhause. To Close the Executive Session portion of the EDA 40
and Open the EDA Meeting at 4:48 p.m. 41
42
Ayes – 5 Nays – 0 Motion carried. 43
44
Becky Landon discussed the Skyline Parcels Purchase with EDA and noted the site had 16 units 45
Mounds View EDA December 10, 2018
Executive Session Meeting Page 2
and a house on the property. She commented on the deadlines for the project. Further discussion 1
ensured regarding the crime and calls for police services that occur at the Skyline Motel. 2
3
EDA consensus was to direct staff to investigate potential relocation costs and to move forward 4
with this purchase. 5
6
B. CLOSED SESSION – SKYLINE PROJECT: Pursuant to Minnesota Statues 7
Sections 13D.05, subdivision 3(c) and 13.44, subdivision 3, to conduct a closed 8
EDA meeting concerning real property located at addressed noted below to 9
determine the asking price, to consider strategies and to develop or consider 10
offers or counteroffers for the sale of such real property and to review 11
confidential appraisal information for such real property. 12
13
2400 County Road H2 14
Mounds View, Minnesota 15
PIN: 08.30.23.31.0005 16
17
2394 Mounds View Boulevard 18
Mounds View, Minnesota 19
PIN: 08.30.23.31.0071 20
21
2390 Mounds View Boulevard 22
Mounds View, Minnesota 23
PIN: 08.30.3.31.0072 24
25
President Mueller commented on the 12 points the EDA has been negotiating with INH and 26
noted the two parties had worked down to only two points of contention. 27
28
Business Development Coordinator Beeman commented further on the two points of contention 29
and explained INH would like to have the cost for the environmental study removed from the 30
purchase price. In addition, INH would like the cost for the trail to be taken out of the purchase 31
price. 32
33
Jim Illies, INH, stated INH was in agreement on the purchase price. However, the costs for Items 34
A through C should allow for a maximum deduction of $250,000. He discussed the proposed 35
development noting the project would have 127 units. He explained the units would be studios 36
up to 3 bedrooms. He reported an architect has been hired to assist with the building and parking 37
plans. 38
39
Corey Gerads, Alliance Building Corporation, commented on the current projects he has 40
underway with INH. It was noted the Crossroad Pointe site would be completed in one phase. 41
42
Mounds View EDA December 10, 2018
Executive Session Meeting Page 3
President Mueller asked if the developer supported the underground parking. Mr. Illies stated he 1
did support underground parking and noted he had completed this in other developments. He 2
explained this would be a great amenity for residents within the apartment complex. 3
4
MOTION/SECOND: Meehlhause/Bergeron. To Close the EDA Meeting to an Executive 5
Session at 5:20 p.m. 6
7
Ayes – 5 Nays – 0 Motion carried. 8
9
The EDA met in Closed Session to discuss the Crossroad Pointe Purchase Agreement. The 10
purchase price was reviewed along with the terms of the agreement. 11
12
4. REPORTS 13
14
None. 15
16
5. NEXT SPECIAL EDA MEETING: Thursday, December 27, 2018 at 6:00 p.m. 17
NEXT EDA MEETING: Monday, January 7, 2019 at 6:00 p.m. 18
19
6. ADJOURNMENT 20
21
President Mueller adjourned the Executive Session meeting at 5:54 p.m. 22
23
Respectfully submitted, 24
25
26
Recorded and transcribed by: 27
Heidi Guenther 28
TimeSaver Off Site Secretarial, Inc. 29
PROCEEDINGS OF THE MOUNDS VIEW EDA 1
CITY OF MOUNDS VIEW 2
RAMSEY COUNTY, MINNESOTA 3
4
Regular Meeting 5
December 10, 2018 6
Mounds View City Hall 7
2401 County Road 10, Mounds View, MN 55112 8
9
10
1. CALL MEETING TO ORDER 11
12
President Mueller called the meeting to order at 6:03 p.m. 13
14
2. ROLL CALL: President Mueller, Vice President Gunn, Commissioner Bergeron 15
Commissioner Hull, Commissioner Meehlhause, and Executive Director Zikmund. 16
17
NOT PRESENT: None. 18
19
3. APPROVAL OF AGENDA 20
21
MOTION/SECOND: Gunn/Meehlhause. To Approve the December 10, 2018, Agenda as 22
amended removing Item 6A. 23
24
Ayes – 5 Nays – 0 Motion carried. 25
26
4. PUBLIC INPUT 27
28
Brian Amundsen, 3048 Woodale Drive, spoke to the EDA regarding the Authority’s budget. He 29
expressed concern that the EDA’s budget was not included in the recent meeting packet. He 30
asked if the EDA has identified how the $100,000 requested levy would be used. 31
32
President Mueller explained the City previously had tax increment financing districts in place 33
that helped the City to support economic development. She reported these districts have since 34
retired and therefore the EDA has set a $100,000 levy in order to assist with economic 35
development as well as providing financial assistance for loan programs to residents and 36
businesses in Mounds View. 37
38
5. CONSENT AGENDA 39
40
A. November 26, 2018, EDA Minutes. 41
42
MOTION/SECOND: Meehlhause/Gunn. To Approve the Consent Agenda as presented. 43
44
Ayes – 5 Nays – 0 Motion carried. 45
Mounds View EDA December 10, 2018
Regular Meeting Page 2
1
6. EDA BUSINESS 2
3
A. Skyline Project. 4
5
This item was removed from the agenda. 6
7
B. Crossroad Pointe. 8
9
President Mueller explained the EDA has been in negotiations with INH Properties. She was 10
pleased to report that a tentative agreement has been reached between both parties and staff has 11
been directed to draft documents. She noted a public hearing would be held regarding this 12
project in January 2019. 13
14
Jim Illies, INH Properties, provided the EDA with a presentation on the Crossroad Pointe 15
Redevelopment project. He described the changes that had been made to the market rate 16
apartments after discussing the project with an architect. He reported the project would be 4-17
stories with the 1st floor being used for underground parking. It was noted each unit would have 18
one underground parking space and one surface parking space. He commented further on the 19
common area and outdoor amenities that would be included in the project. He described the 20
combination of units that would be included in the apartment complex, which would range from 21
studios to three-bedroom units. Further discussion ensued regarding the building materials that 22
would be used on the exterior of the apartment building. 23
24
Corey Gerads, President of Alliance Building Corporation, introduced himself to the EDA and 25
described the type of multi-tenant projects that have been completed by Alliance Building 26
Corporation. He commented further on the design and bidding process for the Crossroad Pointe 27
development. He explained there was a huge advantage to this building having underground 28
parking. He reported an architect would assist him in selecting building exterior colors. 29
30
Mr. Illies reviewed several photographs of other apartment complexes he has constructed with 31
Alliance Building Corporation with the EDA. He commented further on the potential rental rates 32
that would be charged for the apartment units. 33
34
Commissioner Gunn asked if the apartment units would have washers and dryers. Mr. Illies 35
stated each unit would have a washer and dryer. 36
37
Commissioner Meehlhause requested further information on the size of the apartment units. Mr. 38
Illies indicated the studio units would range from 570 square feet to 650 square feet. The one-39
bedroom units would be around 800 square feet and two-bedroom units would be 1,000 square 40
feet. He reported the three-bedroom units would be around 1,300 square feet. 41
42
Mounds View EDA December 10, 2018
Regular Meeting Page 3
President Mueller questioned who would manage the building. Mr. Illies stated INH would 1
manage the property. 2
3
President Mueller thanked INH for their presentation. She indicated she was looking forward to 4
this project moving forward in 2019. 5
6
C. The Boulevard. 7
8
City Attorney Riggs discussed the Boulevard project with the EDA. He described the documents 9
that had to be completed for the bonds and TIF financing for this project. He was pleased to 10
report these documents were ready to move forward. 11
12
MOTION/SECOND: Gunn/Meehlhause. To Waive the Reading and Adopt EDA Resolution 13
18-EDA-317, Approving Subordination Agreement and Assignment of Contract for Private 14
Development and Tax Increment Financing. 15
16
Ayes – 5 Nays – 0 Motion carried. 17
18
7. REPORTS 19
20
Commissioner Meehlhause reported the Mounds View Business Council would be meeting on 21
Wednesday, December 12th at 7:30 a.m. at The Mermaid. 22
23
8. NEXT SPECIAL EDA MEETING: Thursday, December 27, 2018 at 6:00 p.m. 24
NEXT EDA MEETING: Monday, January 9, 2019 at 6:00 p.m. 25
26
9. ADJOURNMENT 27
28
President Mueller adjourned the EDA meeting at 6:35 p.m. 29
30
Respectfully submitted, 31
32
33
Recorded and transcribed by: 34
Heidi Guenther 35
TimeSaver Off Site Secretarial, Inc. 36
Item No 6A
Meeting Date: December 27, 2018
Type of Business: EDA
Administrator Review : ____
City of Mounds View Staff Report
To: EDA President and Commissioners
From: Brian Beeman, Business Development Coordinator
Item Title/Subject: Resolution 18-EDA-318, A Resolution Approving the
Assignment Agreement for the Skyline Motel Property
Introduction:
The EDA has been in continued discussions with the Landon Group in consideration of
the purchase of the Skyline Motel property.
Discussion:
Staff has continued discussions with various individuals and entities associated with the
Skyline Motel property, and has obtained information regarding relocation costs and
reimbursement costs in the event that the EDA wishes to purchase the property. The Board
can consider this information and decide whether it wishes to enter into an assignment
agreement, which will be available during the meeting, through which it would agree to
purchase the property and incur said additional expenses. Steve Carlson from Evergreen
Land Services is a relocation specialist and will be present to answer any questions
regarding relocation. Steve’s report will be made available before the meeting. Becky
Landon is the CEO of Newport Midwest, LLC, the entity that was originally going to
purchase and develop the property, and she will also be present to answer any questions
and discuss the potential assignment. Scott Riggs will be present from Kennedy & Graven
to discuss and answer questions related to this transaction.
Recommendation:
Consider Adopting 18-EDA-318 A Resolution Approving the Assignment Agreement for
the Purchase of the Skyline Motel Property.
Respectfully submitted,
________________________
Brian Beeman
Business Development Coordinator
Attachments:
1) None (Resolution 18-EDA-318 and the Assignment Agreement will be available
at the meeting)
Item No 6B
Meeting Date: December 27, 2018
Type of Business: EDA
Administrator Review : ____
City of Mounds View Staff Report
To: EDA President and Commissioners
From: Brian Beeman, Business Development Coordinator
Item Title/Subject: General Discussion on Crossroad Pointe
Introduction:
The EDA has agreed to pursue the sale of Crossroad Pointe to INH Properties and has
been in continued discussions with INH Properties on their proposed 127 market rate
apartment project.
Discussion:
The next step in the land sale process is to hold a Public Hearing January 7, 2019 at the
EDA meeting to hear comments on the sale of real property on the site the EDA has been
calling Crossroad Point. After the Public Hearing the EDA will be considering a resolution
approving the sale of the property to INH Properties. City staff will continue to cooperate
with Kennedy & Graven and INH Properties to finalize any and all remaining documents
associated with the project by the May 1, 2019 deadline.
Recommendation:
None.
Respectfully submitted,
________________________
Brian Beeman
Business Development Coordinator
Attachments:
1) None (A Resolution will be prepared for the Sale of Crossroad Pointe at the
January 7, 2019 EDA meeting)