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HomeMy WebLinkAbout05-13-2019 EDAPROCEEDINGS OF THE MOUNDS VIEW EDA CITY OF MOUNDS VIEW RAMSEY COUNTY, MINNESOTA Special EDA Meeting May 13, 2019 Mounds View City Hall 2401 Mounds View Boulevard, Mounds View, MN 55112 1.CALL MEETING TO ORDER President Mueller called the meeting to order at 4:32 p.m. 2.ROLL CALL: President Mueller, Vice President Gunn, Commissioner Bergeron Commissioner Hull, Commissioner Meehlhause, Executive Director Zikmund, Finance Director Beer and City Attorney Riggs (arrived at 4:43 p.m.) NOT PRESENT: None. 3.APPROVAL OF AGENDA MOTION/SECOND: Meehlhause/Bergeron. To Approve the May 13, 2019, Agenda as presented. Ayes – 5 Nays – 0 Motion carried. 4. CONSENT AGENDA A.March 11, 2019, EDA Minutes. MOTION/SECOND: Gunn/Bergeron. To Approve the Consent Agenda as presented. Ayes – 5 Nays – 0 Motion carried. 5.PUBLIC COMMENT None. 6.EDA BUSINESS A.Developer Presentation for Skyline Motel Site. Assistant City Director Beeman reported the City requested RFP’s for the Skyline Motel redevelopment project. He reported staff had a developer in attendance, Commercial Investors Mounds View EDA May 13, 2019 Regular Meeting Page 2 Group, which would be providing the EDA with an updated presentation on this project. Mike Sowers, Commercial Investors Group, introduced himself to the EDA. James Smith, Commercial Investors Group, thanked the EDA for their time. He introduced his development company and commented on the Station 4 Project CIG was completing in Lowertown, St. Paul. He reviewed the needs and wants for this project. Mr. Sowers reported CIG had done their due diligence and had met with representatives from Choice Hotels. He discussed the updated proposal for the Skyline Motel site noting the market study shows a need for transient guests versus extended stay guests. He explained the highest and best use for this site would be to construct a 90-room hotel with limited food service and a pool. He reviewed five comps noting there was a strong need for an additional hotel in this market. He stated he was proposing a four-story building to assist with buffering freeway noise, while also creating greater visibility. Mr. Sowers explained he would consider pre-signing a medical office on the adjacent lot but noted a spec industrial product could also be considered for this space. He commented on the discussions he has held with Bio Clean and Bauer Welding regarding their business expansions. He indicated he was approaching this project as an overall benefit to the entire community and not just a hotel. Mr. Sowers discussed the architecture and design of the proposed Holiday Inn Express Hotel by IHG Hotels. He indicated the loyalty program within IHG was very strong. He noted the amenities that would be provided within the hotel would make this site an upper-mid scale hotel. He reviewed the number of suites and other guestrooms noting the building would be 54,000 square feet in size. He projected the value of the medical/office building to be $3-5 million and noted the hotel would be valued in the $12-14 million range. Mr. Sowers commented on the benefits of the project to the City of Mounds View. He estimated the hotel and medical/office building would generate an additional $575,000 in taxes per year. He noted he had to work through watershed and environmental issues, along with a feasibility study. He reported he had to complete a franchise agreement, in addition to selecting a contractor and management company. He reported this project would take 12 to 16 months to complete. He stated he was hoping to break ground on this project yet this fall. Community Development Director Sevald addressed the EDA and discussed how this project could move forward as a PUD considering the site was now larger than five acres. He reported the PUD process would allow the developer additional flexibility with the project. President Mueller opened the floor to the EDA for questions or comments. There were no questions or comments from the EDA. Mounds View EDA May 13, 2019 Regular Meeting Page 3 Mr. Smith reported he met with Steve Markuson from Twin Cities Gateway and explained Mr. Markuson fully supported the direction this project was headed. President Mueller thanked the representatives from CIG for the thorough presentation. B.Resolution 19-EDA-322 Approving LHB to Conduct a Redevelopment TIF Analysis on the Skyline Motel Site and Surrounding Area. Mike Fischer, LHB, provided the EDA with a presentation on the Redevelopment and Renewal TIF Districts. He explained these types of TIF Districts could be used to redevelop substandard or obsolete buildings. He reported a Redevelopment TIF District could run for 26 years and noted more than 50% of the buildings must be substandard. He discussed the Coverage Test and reported 70% of the district must be occupied by buildings, streets, utilities or paved parking lots. He reported the toughest test would be for the Building Code Qualification and Condition of Buildings Test. He explained a building cannot be considered structurally substandard if its code deficiencies were not at least 15% of the replacement cost of the building. He stated based on his drive-by of the proposed Skyline Motel TIF District this site would not have a coverage issue. Stacie Kvilvang, Ehlers & Associates, discussed how her company assists the City with public financing for bonds along with reviewing the finances for potential TIF projects. She commended the City for purchasing the Skyline Motel property as she understood it was the Council’s goal to redevelop this site. She explained the developer was not requesting any assistance but noted the EDA could still create a TIF district to use the dollars generated to pay the City back for the acquisition of this land. She reported this would be done through an interfund loan. President Mueller questioned if the “but for” test would be completed for this project. Ms. Kvilvang reported this would be conducted and commented further on the “but for” test requirements. President Mueller asked for comments or questions from the EDA. There were no comments or questions from the EDA. Assistant City Administrator Beeman requested the EDA consider approving a Resolution that would allow LHB to conduct a Redevelopment TIF Analysis on the Skyline Motel site and surrounding area. President Mueller discussed the costs that would be associated with the proposed LHB contract. Commissioner Meehlhause asked how Ehlers & LHB would be working together on this project. Assistant City Administrator Beeman explained the City could not create a TIF District unless Mounds View EDA May 13, 2019 Regular Meeting Page 4 the project met State Statutes. He reported, in order to reach this step, a blight/substandard study had to be completed. If a substandard determination was made, the City could then begin discussions with Ehlers. MOTION/SECOND: Meehlhause/Gunn. To Waive the Reading and Adopt Resolution 19- EDA-322 Approving LHB to Conduct a Redevelopment TIF Analysis on the Skyline Motel Site and Surrounding Area. Ayes – 5 Nays – 0 Motion carried. Greg Kelley, BioClean, stated his company has been in the community for the past 40 years. He commented on the building expansion he was proposing to complete noting this would assist him with staying in Mounds View. He explained he has liked working with Mr. Sowers and anticipated he would be able to complete a project that was beneficial to BioClean and the community. Todd Rachel, Bauer Welding, explained Bauer Welding has been in the community for over 40 years. He noted Bauer Welding has been in discussions with Mr. Sowers and CIG. He stated he looked forward to this project moving forward as it would be good to have this area of the City redeveloped. 7. REPORTS None. 8.NEXT EDA MEETING: Tuesday, May 28, 2019 at 5:30 p.m. 9.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 addressed noted below, to determine the asking price, to consider strategies and to develop or consider offers to counteroffers for the sale of such real property 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 President Mueller recessed the EDA meeting to discuss the Skyline Project at 5:26 p.m. President Mueller reconvened the EDA meeting at 6:30 p.m. Mounds View EDA May 13, 2019 Regular Meeting Page 5 10. ADJOURNMENT President Mueller adjourned the meeting at 6:30 p.m. Respectfully submitted, Recorded and transcribed by: Heidi Guenther TimeSaver Off Site Secretarial, Inc.