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HomeMy WebLinkAboutHRA MINUTES 061320000 1 CITY OF ST. ANTHONY 2 HOUSING AND REDEVELOPMENT AUTHORITY MEETING MINUTES 3 JUNE 13.2000 4 I. CALL TO ORDER. 5 Chairman Cavanaugh called the meeting to order at 8:27 p.m. 6 II. ROLL CALL. 7 Commissioners present: Chairman Cavanaugh, Vice Chair Thuesen, Commissioners Sparks 8 Horst, and Hodson. 9 Commissioners absent: None. 10 Also present: Executive Director Michael Momson; City Attorney William Soth. 11 III. APPROVAL OF JUNE 13, 2000 H.R.A. AGENDA. 12 Motion by Hodson to approve the June 13, 2000 H.R.A. agenda as presented. 13 Motion carried unanimously. 14 IV. CONSENT AGENDA. 15 Motion by Sparks to approve the Consent Agenda as presented, which included: 16 1. Housing and Redevelopment Authority Meeting Minutes of May 23, 2000; 40 2. Claims for the H.R.A. IR Motion carried unanimously. 19 V. GENERAL POLICY BUSINESS OF THE H.R.A. 20 A. Review Business Terms with Hillcrest Development. 21 Executive Director Michael Monson stated that there has been a request from Hillcrest 22 Development for tax increment funds to assist with the redevelopment of the Apache Plaza 23 project. 24 At this meeting today, Monson stated there would be an introduction of basic concepts 25 regarding the tax increment district and to provide an opportunity for familiarity of terms and 26 concepts. 27 Executive Director Morrison invited Paul Steinman from Springsted, Public Finance Advisors, to 28 address the Commission. Mr. Steinman directed the Commission's attention to his memorandum 29 of June 7, 2000. 30 Mr. Steinman stated that he wished to outline the major Apache Plaza redevelopment points in 31 response to the proposal from Hillcrest and Krass Monroe, P.A. His research and presentation 32 were based on the results of several meetings and discussions which have occurred over the past 33 several months regarding the project. 0 In essence, the project is conceptually structured as follows: Housing and Redevelopment Authority Meeting Minutes •June 13, 2000 Page 2 Drop four parcels from the existing TIF District, subsequently creating a new district containing the four dropped parcels and one additional parcel (Taco Bell). 3 2. Complete rehabilitation of Apache Plaza with a potential new market value of 4 approximately $70 per square foot. 5 3. Provide increment to the developer in the amount of approximately $4 million 6 (present value) or $10 million gross. 7 4. Provide increment to the City to complete storm water improvements in the 8 amount of approximately $1 million (present value) or $2.3 million gross. 9 5. Decertify TIF district in Year 2018. 10 6. Developer agrees to enter into a minimum assessment agreement. 11 Furthermore, Mr. Steinman raised certain points for the Commission to consider, which 12 included: �13 1. Amount of developer subsidy - $4 million requested (present value). T4 2. City participation in storm water improvements - $1 million: 15 a. Scenario A: $1 million taxable GO Tax Increment Bond; 16 b. Scenario B: $750,000 taxable GO Tax Increment Bond plus $250,000 tax 17 exempt Storm Water Utility Bond. 18 3. LGA/HACA penalty vs. local contribution. 19 4. Fiscal disparities from inside TIF District vs. outside TIF District. 20 21 Various discussion ensued with specific questions and issues for Mr. Steinman regarding the 22 options presented (above) and possible alternatives to the options on the list. 23 Jim Casserly, who was in the audience and stated that he had been conferring and working with 24 Mr. Steinman on this issue, stated that the company he works for has extensive experience in tax 25 increment projects. Mr. Casserly was invited to approach the Commission. He offered some 26 reinforcement advice for the Commission and some clarifications on some of the details. 27 Executive Director Morrison invited Mr. Scott Tankenoffof Hillcrest Development to address 28 the Commission regarding the stormwater issues. Mr. Tankenoff stated that the current issue at 29 hand is determining what the percentage of the stormwater problem, for the water quality issue 0 of Silver Lake is an Apache issue. Housing and Redevelopment Authority Meeting Minutes •June 13, 2000 Page 3 1 Hillcrest Development believes the percentage to be less than 50%, but Hillcrest continues to 2 work with engineers and the City's consultant to resolve that question. Mr. Tankenoff said 3 Hillcrest is aware of the issues surrounding the runoff to Silver Lake and the issue is being 4 researched and reviewed. 5 Various discussions ensued between the Commission, Mr. Tankenoff, Mr. Steinman, and Mr. 6 Casserly about the details of the proposal to provide assistance to Hillcrest Development in 7 resolving the water quality issue of Silver Lake. 8 Mr. Tankenoff stated that the current Code requirements would not solve the current water 9 quality problem, and that Hillcrest is willing to take a larger share than absolutely required to 10 assist in resolving the issue. 11 Discussion followed about the total possible cost that the project of water quality would 12 encompass, and the responsible parties and percentages of responsibility were discussed as well. 13 Thuesen felt that as the City explored the Apache project, a final solution to the ills of the water 14 quality issue needed to be addressed. Other issues needed to be addressed as well, but for now, 15 the City needs to correct what can be with this project. Mr. Tankenoff stated that some of the water quality issues surrounding the Cub Foods site are being addressed by Rice Creek Watershed, and he is awaiting additional information on that 18 issue. 19 Mr. Tankenoff directed the Commission's attention to an article in CityBusiness about Hillcrest's 20 redevelopment of Apache mall. He specifically pointed out mention in the article of Herberger's 21 department store, and noted the lack of communication he has experienced in discussions with 22 Herberger's regarding the store's plans during and after the renovation of the Apache Mall. Mr. 23 Tankenoff reiterated his hope that Herberger's would stay with the Mall and would continue with 24 the lease and begin serious discussions. 25 Mr. Tankenoff mentioned that Executive Director Michael Morrison has been assisting Hillcrest 26 in attempting to establish communications with Herberger's. Morrison announced some 27 alternatives and options that are being considered by the City to assist in remedying the lack of 28 communication experienced by Mr. Tankenoff with Herberger's. 29 Cavanaugh asked City Attorney Bill Seth his opinion about City Manager and Mr. Tankenoff 30 meeting with the owners of Herberger's, Saks. Mr. Soth stated that, although that is not the 31 optimal option, it would be a possibility. A letter or other communication from the City would 32 be the better option, he stated. 33 Mr. Soth noted that the City appeared to be looking for ways to get Herberger's attention, and to let the store know that the City is very interested in seeing that the redevelopment project takes 10 place, and that communication between the parties needs to take place. Housing and Redevelopment Authority Meeting Minutes •June 13, 2000 Page 4 Cavanaugh agreed that the issue needed to be confronted as a City. 2 Mr. Tankenoff stated that he has exhausted nearly every means to line up communication, but he 3 would attempt to contact a key person and would inform the City of the results of that 4 communication. 5 Momson stated that a direct letter from the Mayor would be drafted and sent out and the issue 6 would be addressed from that point on. 7 B. H.R. A. Resolution 00-005 re: Call for Hearing on Business Subsidy Policy. 8 Motion by Sparks to approve Resolution 00-005, a Resolution Relating to Business Subsidies; 9 Calling for a Public Hearing on the Adoption of Criteria for the Granting of Business Subsidies. 10 Motion carried unanimously. 11 C. H.R.A. Resolution 00-006 re: Call for Hearin¢ on Grantinp Business Subsidies for 12 Hillcrest Development. 13 Motion by Sparks to approve Resolution 00-006, re: Call for Hearing on Granting Business 14 Subsidies; Calling for a Public Hearing on the Granting of Business Subsidy. 0 Motion carried unanimously. 16 VI. STAFF REPORTS. 17 None. 18 VII. H.R.A. COMMISSIONER COMMENTS. 19 None. 20 VIII. INFORMATION AND ANNOUNCEMENTS. 21 None. 22 IX. ADJOURNMENT. 23 Motion by Hodson to adjourn the meeting at 10:09 p.m. 24 25 Respectfully submitted, 26 Sue Selseth 27 TimeSaver Off Site Secretarial, Inc. 0 Motion carried unanimously.