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Home My WebLink About05-10-2021 EDACITY OF MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY MEETING AGENDA MOUNDS VIEW CITY HALL Monday, May 10, 2021 6:30 p.m. Virtual Meeting Please click the link below to join the webinar: https://us02web.zoom.us/j/82896257611?pwd=WTFuMkZ3Q0twZVl6YVVpTDlRclRwUT09 Passcode: 238914 Or iPhone one-tap : US: +16465588656,,82896257611# or +13017158592,,82896257611# Or Telephone: Dial(for higher quality, dial a number based on your current location): US: +1 646 558 8656 or +1 301 715 8592 or +1 312 626 6799 or +1 669 900 9128 or +1 253 215 8782 or +1 346 248 7799 or 833 548 0282 (Toll Free) or 877 853 5247 (Toll Free) or 888 788 0099 (Toll Free) or 833 548 0276 (Toll Free) Webinar ID: 828 9625 7611 1. CALL TO ORDER 2. ROLL CALL: President Mueller, Vice President Cermak, Commissioner Hull, Commissioner Meehlhause, Commissioner Bergeron 3. APPROVAL OF AGENDA 4. CONSENT AGENDA A. Approval of Minutes: April 26, 2021 5. PUBLIC COMMENT 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. 6. EDA BUSINESS A. 21-EDA-343 A Resolution Approving NorthstarMLS Listing Change Form and Contract Agreement for Property Located in Mounds View, Minnesota 7. REPORTS None 8. NEXT EDA MEETING: May 24, 2021 at 6:30 p.m. 9. ADJOURNMENT PROCEEDINGS OF THE MOUNDS VIEW EDA 1 CITY OF MOUNDS VIEW 2 RAMSEY COUNTY, MINNESOTA 3 4 Regular Meeting 5 April 26, 2021 6 Mounds View City Hall 7 2401 Mounds View Boulevard, Mounds View, MN 55112 8 9 10 1. CALL MEETING TO ORDER 11 12 President Mueller called the meeting to order at 6:30 p.m. Due to the COVID-19 pandemic this 13 meeting was held virtually. 14 15 2. ROLL CALL: President Mueller, Vice President Cermak, Commissioner Bergeron, 16 Commissioner Hull, Commissioner Meehlhause, and Executive Director Zikmund. 17 18 NOT PRESENT: None. 19 20 3. APPROVAL OF AGENDA 21 22 Vice President Cermak reported the date of the next EDA meeting was printed incorrectly on the 23 agenda. 24 25 City Attorney Riggs noted he would have a report under Item 7. 26 27 MOTION/SECOND: Bergeron/Meehlhause. To Approve the April 26, 2021, Agenda as 28 amended adding a report from the City Attorney under Item 7 and correcting the date of the next 29 EDA meeting to May 10, 2021. 30 31 A roll call vote was taken. 32 33 Ayes – 5 Nays – 0 Motion carried. 34 35 4. CONSENT AGENDA 36 37 A. April 12, 2021, EDA Minutes. 38 39 MOTION/SECOND: Hull/Meehlhause. To Approve the Consent Agenda as presented. 40 41 A roll call vote was taken. 42 43 Ayes – 5 Nays – 0 Motion carried. 44 45 Mounds View EDA April 26, 2021 Regular Meeting Page 2 5. PUBLIC COMMENT 1 2 None. 3 4 6. EDA BUSINESS 5 6 A. PUBLIC HEARING: Consideration of Resolution 21-EDA-342, A Resolution 7 Approving Purchase and Development Agreement and Conveyance of 8 Property located in Mounds View, Minnesota. 9 10 Assistant City Administrator Beeman requested the EDA approve a Purchase and Development 11 Agreement and conveyance of property in Mounds View to BioClean. He noted BioClean was 12 seeking 45 feet of property to do an expansion of their property at 5151 Mustang Drive. He 13 reported staff met with the owner and came to terms on the purchase price and fees. He explained 14 the sale of this property required a public hearing. He recommended the EDA hold a public 15 hearing and approve the Purchase and Development Agreement for the conveyance of the 16 property. 17 18 City Attorney Riggs reported a public hearing was required pursuant to Minnesota State Statute 19 in order for the EDA to sell property. He commented further Article 3 within the Purchase and 20 Development agreement and recommended approval. 21 22 President Mueller opened the public hearing at 6:41 p.m. 23 24 There being no public comment, President Mueller closed the public hearing at 6:42 p.m. 25 26 Commissioner Meehlhause requested further comment on “reasonable assistance” that would be 27 provided by the EDA. City Attorney Riggs explained this was to ensure the EDA works with the 28 purchaser to plat the property. 29 30 Greg Kelley, BioClean, thanked the EDA for their consideration. He stated he looked forward to 31 cleaning up the property in the coming weeks and months. 32 33 MOTION/SECOND: Hull/Bergeron. To Waive the Reading and Adopt Resolution 21-EDA-34 342, A Resolution Approving Purchase and Development Agreement and Conveyance of 35 Property located in Mounds View, Minnesota. 36 37 Commissioner Meehlhause thanked City staff and BioClean for working together and to come to 38 an agreement on this property. 39 40 A roll call vote was taken. 41 42 Mounds View EDA April 26, 2021 Regular Meeting Page 3 Ayes – 5 Nays – 0 Motion carried. 1 2 7. REPORTS 3 4 Assistant City Administrator Beeman reported he has been negotiating on the EDA lot next to 5 Simon’s. He explained the letter of intent has being going back and forth and was nearing 6 completion. He reported both parties were in agreement on the selling price. He indicated the 7 main sticking point at this time was the escrow. 8 9 City Attorney Riggs stated most of the issues have been resolved reasonably well per the 10 direction of the EDA. He explained typically, the EDA has had some type of escrow or deposit 11 in place that was non-refundable given the amount of time that is required. He reported staff was 12 recommending an escrow in the amount of $5,000 and the other party has stated this will kill the 13 deal. It was his understanding that the Simon’s property owner has agreed to not have an escrow 14 as a down payment. He indicated staff could support this, but wanted to make sure the EDA also 15 supported this recommendation. 16 17 President Mueller asked what does a non-refundable escrow mean. City Attorney Riggs reported 18 this was viewed as a deposit for tying up the land. He noted the deposit could then be applied to 19 the purchase price or the EDA gets to keep a portion of it. He commented it was staff’s 20 recommendation that a deposit or escrow be established given the amount of time the property 21 would be held. He indicated the Simon’s property owner has backed off from this request 22 because the purchaser has balked at the request. He stated this was a negotiable matter. 23 24 President Mueller inquired what a significant amount of time would be. City Attorney Riggs 25 reported the property could be tied up for three-fourths of the year or 240 days. 26 27 President Mueller questioned if the building on the site would be torn down. Assistant City 28 Administrator Beeman stated this was the case, noting the purchaser has proposed to tear down 29 the building. He explained at this time all parties were in agreement in all aspects of the 30 purchase, except for the non-refundable escrow. 31 32 President Mueller asked if staff was seeing any red flags regarding the easements and other rules 33 that must be followed for the new development. Community Development Director Sevald stated 34 the Donnelly Stucco property has several easements that must be worked out between the two 35 property owners. He noted there was also still a question about whether or not the city would 36 require additional right of way at the intersection. 37 38 President Mueller inquired if a dangerous precedent would be set if the EDA were to move 39 forward without requiring an escrow on this purchase. City Attorney Riggs stated this does 40 bother him a little bit, but did not believe a precedent would be set. He explained this purchase 41 was a unique because it was tied to another property that has already agreed to waive the escrow. 42 Mounds View EDA April 26, 2021 Regular Meeting Page 4 1 Commissioner Meehlhause asked if any developer has been interested in developing just the 2 Groveland parcel. Assistant City Administrator Beeman stated wholesalers and investors have 3 sent letters of interest to the City several years ago, but at the time Tires N More wasn’t for sale. 4 5 MOTION/SECOND: Meehlhause/Hull. To direct staff to move forward with the EDA land sale 6 without an escrow. 7 8 A roll call vote was taken. 9 10 Ayes – 5 Nays – 0 Motion carried. 11 12 8. NEXT EDA MEETING: Monday, May 10, 2021 at 6:30 p.m. 13 14 9. ADJOURNMENT 15 16 President Mueller adjourned the meeting at 6:57 p.m. 17 18 Respectfully submitted, 19 20 21 Recorded and transcribed by: 22 Heidi Guenther 23 Minute Maker Secretarial 24 Item No 6A Meeting Date: May 10, 2021 Type of Business: EDA Administrator Review : ____ City of Mounds View Staff Report To: EDA President and Commissioners From: Brian Beeman, Assistant City Administrator Item Title/Subject: 21-EDA-343 a resolution approving NorthstarMLS listing change form and contract agreement for property located in Mounds View, Minnesota Introduction: Doug Harris of Remax has successfully listed the Tires N More and Simon’s properties as well as Vino & Stogies. Mr. Harris has been working diligently to sell both the EDA owned lot and the Simon’s property as one redevelopment of 2.04 acres. A letter of intent has been signed for a potential redevelopment and both parties are working on a purchase agreement. However, Mr. Harris’s listing agreement with the EDA expires June 9, 2021. Discussion: At its June 8, 2020 regular meeting, the EDA reviewed the initial listing agreement and agreed to move forward in listing the EDA owned property with REMAX. Remax has agreed that it will market both properties as one redevelopment area and that it will not charge the EDA for brokerage fees or any other fees. The EDA to discuss renewing the current listing agreement with Remax for an additional year expiring June 9, 2022. Strategic Plan Strategy/Goal: Create and maintain a positive business climate where businesses want to locate and remain in Mounds View. Maximize utilization of development space and current redevelopment sites. Fill vacant space and support redevelopment & development. Continue and focus on public relations activities. Financial Impact: None. Recommendation: Staff recommends that the EDA consider 21-EDA-343, A resolution approving NorthstarMLS listing change form and contract agreement for property located in Mounds View, Minnesota. Respectfully submitted, ________________________ Brian Beeman Assistant City Administrator Attachments: 1) 21-EDA-343, A resolution approving NorthstarMLS listing change form and contract agreement for property located in Mounds View, Minnesota. 1 DOCSOPEN\MU205\53\717808.v2-5/4/21 EDA RESOLUTION 21-EDA-343 CITY OF MOUNDS VIEW COUNTY OF RAMSEY STATE OF MINNESOTA A RESOLUTION APPROVING NORTHSTARMLS LISTING CHANGE FORM AND CONTRACT AGREEMENT FOR PROPERTY LOCATED IN MOUNDS VIEW, MINNESOTA BE IT RESOLVED by the Board of Commissioners (the “Board”) of the Mounds View Economic Development Authority (the “Authority”) as follows: Section 1. Recitals. 1.01. The Authority is authorized pursuant to Minnesota Statutes, Sections 469.090 to 469.1081 (the “EDA Act”), to acquire and convey real property and to undertake certain activities to facilitate the development of real property by private enterprise. 1.02. The Authority is fee owner of certain real property in the city of Mounds View (the “City”), legally described in the attached Exhibit A (the “Property”). 1.03. To facilitate the marketing, sale and development of the Property, the Authority entered into a Brokerage Listing Agreement (the “Listing Agreement” on June 22, 2020 between the Authority and Re/MAX Results Commercial Group (the “Broker”). 1.04. The Authority finds that utilizing the services of a Broker is in the public interest and will further the objectives of its general plan of economic development, because it will provide an opportunity for increased development opportunities in the City and serve as an impetus for further development. 1.05. The Listing Agreement is expiring and needs to be extended pursuant to the NorthstarMLS Listing Change Form and Contract Agreement (the “Listing Change Form”), as set forth in Exhibit B. 1.06. The Board has reviewed the Listing Change Form and finds that the execution thereof by the Authority and performance of the obligations thereunder are in the best interest of the Authority, the City and its residents. Section 2. Authorization. 2.01. The recitals set forth in this Resolution are incorporated into and made a part of this Resolution. 2.02. The Board hereby approves the Listing Change Form in substantially the form presented to the Board on the date below, and further subject to any m odifications that do not alter 2 DOCSOPEN\MU205\53\717808.v2-5/4/21 the substance of the transaction and that are approved by the Authority’s attorney. 2.03. The proper Authority officials, staff and consultants are authorized to execute the Listing Change Form and take any and all other steps necessary or convenient in order to carry out the obligations under the Listing Agreement and the Listing Change Form, as well as to fulfill the intent of this Resolution. Adopted on the 10th day of May, 2021. _________________________________ Carol A. Mueller, President Attest: ________________________________ Nyle Zikmund, Executive Director (SEAL) A-1 DOCSOPEN\MU205\53\717808.v2-5/4/21 EXHIBIT A LEGAL DESCRIPTION OF THE PROPERTY 7861 Groveland Rd, Mounds View, MN 55112 Parcel ID Number: 06-30-23-34-0061 B-1 DOCSOPEN\MU205\53\717808.v2-5/4/21 EXHIBIT B FORM OF NORTHSTARMLS LISTING CHANGE FORM AND CONTRACT AGREEMENT B-2 DOCSOPEN\MU205\53\717808.v2-5/4/21