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HomeMy WebLinkAbout04-26-2021 EDAAPPROVED PROCEEDINGS OF THE MOUNDS VIEW EDA CITY OF MOUNDS VIEW RAMSEY COUNTY, MINNESOTA Regular Meeting April 26, 2021 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 6:30 p.m. Due to the COVID-19 pandemic this meeting was held virtually. 2. ROLL CALL: President Mueller, Vice President Cermak, Commissioner Bergeron, Commissioner Hull, Commissioner Meehlhause, and Executive Director Zikmund. NOT PRESENT: None. 3. APPROVAL OF AGENDA Vice President Cermak reported the date of the next EDA meeting was printed incorrectly on the agenda. City Attorney Riggs noted he would have a report under Item 7. MOTION/SECOND: Bergeron/Meehlhause. To Approve the April 26, 2021, Agenda as amended adding a report from the City Attorney under Item 7 and correcting the date of the next EDA meeting to May 10, 2021. A roll call vote was taken. Ayes – 5 Nays – 0 Motion carried. 4. CONSENT AGENDA A. April 12, 2021, EDA Minutes. MOTION/SECOND: Hull/Meehlhause. To Approve the Consent Agenda as presented. A roll call vote was taken. Mounds View EDA April 26, 2021 Regular Meeting Page 2 Ayes – 5 Nays – 0 Motion carried. 5. PUBLIC COMMENT None. 6. EDA BUSINESS A. PUBLIC HEARING: Consideration of Resolution 21-EDA-342, A Resolution Approving Purchase and Development Agreement and Conveyance of Property located in Mounds View, Minnesota. Assistant City Administrator Beeman requested the EDA approve a Purchase and Development Agreement and conveyance of property in Mounds View to BioClean. He noted BioClean was seeking 45 feet of property to do an expansion of their property at 5151 Mustang Drive. He reported staff met with the owner and came to terms on the purchase price and fees. He explained the sale of this property required a public hearing. He recommended the EDA hold a public hearing and approve the Purchase and Development Agreement for the conveyance of the property. City Attorney Riggs reported a public hearing was required pursuant to Minnesota State Statute in order for the EDA to sell property. He commented further Article 3 within the Purchase and Development agreement and recommended approval. President Mueller opened the public hearing at 6:41 p.m. There being no public comment, President Mueller closed the public hearing at 6:42 p.m. Commissioner Meehlhause requested further comment on “reasonable assistance” that would be provided by the EDA. City Attorney Riggs explained this was to ensure the EDA works with the purchaser to plat the property. Greg Kelley, BioClean, thanked the EDA for their consideration. He stated he looked forward to cleaning up the property in the coming weeks and months. MOTION/SECOND: Hull/Bergeron. To Waive the Reading and Adopt Resolution 21-EDA- 342, A Resolution Approving Purchase and Development Agreement and Conveyance of Property located in Mounds View, Minnesota. Commissioner Meehlhause thanked City staff and BioClean for working together and to come to an agreement on this property. Mounds View EDA April 26, 2021 Regular Meeting Page 3 A roll call vote was taken. Ayes – 5 Nays – 0 Motion carried. 7. REPORTS Assistant City Administrator Beeman reported he has been negotiating on the EDA lot next to Simon’s. He explained the letter of intent has being going back and forth and was nearing completion. He reported both parties were in agreement on the selling price. He indicated the main sticking point at this time was the escrow. City Attorney Riggs stated most of the issues have been resolved reasonably well per the direction of the EDA. He explained typically, the EDA has had some type of escrow or deposit in place that was non-refundable given the amount of time that is required. He reported staff was recommending an escrow in the amount of $5,000 and the other party has stated this will kill the deal. It was his understanding that the Simon’s property owner has agreed to not have an escrow as a down payment. He indicated staff could support this, but wanted to make sure the EDA also supported this recommendation. President Mueller asked what does a non-refundable escrow mean. City Attorney Riggs reported this was viewed as a deposit for tying up the land. He noted the deposit could then be applied to the purchase price or the EDA gets to keep a portion of it. He commented it was staff’s recommendation that a deposit or escrow be established given the amount of time the property would be held. He indicated the Simon’s property owner has backed off from this request because the purchaser has balked at the request. He stated this was a negotiable matter. President Mueller inquired what a significant amount of time would be. City Attorney Riggs reported the property could be tied up for three-fourths of the year or 240 days. President Mueller questioned if the building on the site would be torn down. Assistant City Administrator Beeman stated this was the case, noting the purchaser has proposed to tear down the building. He explained at this time all parties were in agreement in all aspects of the purchase, except for the non-refundable escrow. President Mueller asked if staff was seeing any red flags regarding the easements and other rules that must be followed for the new development. Community Development Director Sevald stated the Donnelly Stucco property has several easements that must be worked out between the two property owners. He noted there was also still a question about whether or not the city would require additional right of way at the intersection. President Mueller inquired if a dangerous precedent would be set if the EDA were to move forward without requiring an escrow on this purchase. City Attorney Riggs stated this does Mounds View EDA April 26, 2021 Regular Meeting Page 4 bother him a little bit, but did not believe a precedent would be set. He explained this purchase was a unique because it was tied to another property that has already agreed to waive the escrow. Commissioner Meehlhause asked if any developer has been interested in developing just the Groveland parcel. Assistant City Administrator Beeman stated wholesalers and investors have sent letters of interest to the City several years ago, but at the time Tires N More wasn’t for sale. MOTION/SECOND: Meehlhause/Hull. To direct staff to move forward with the EDA land sale without an escrow. A roll call vote was taken. Ayes – 5 Nays – 0 Motion carried. 8. NEXT EDA MEETING: Monday, May 10, 2021 at 6:30 p.m. 9. ADJOURNMENT President Mueller adjourned the meeting at 6:57 p.m. Respectfully submitted, Recorded and transcribed by: Heidi Guenther Minute Maker Secretarial