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HomeMy WebLinkAboutHRA MINUTES 11091999CITY OF ST. ANTHONY 0 HOUSING AND REDEVELOPMENT AUTHORITY MEETING MINUTES 3 NOVEMBER 9, 1999 4 1. CALL TO ORDER 5 The meeting was called to order at 8:20 p.m. 6 II. ROLL CALL. 7 Commissioners present: Ranallo; Cavanaugh, Marks, Faust, and Thuesen. 8 Commissioners absent: None. 9 Also present: Executive Director Michael Morrison. io III. APPROVAL OF NOVEMBER 9, 1999 H.R.A. AGENDA. I I Motion by Marks, second by Thuesen, to approve the November 9, 1999 H.R.A. Meeting 12 Agenda as presented. 13 Motion carried unanimously. 14 IV. APPROVAL OF OCTOBER 12, 1999 H.R.A. MINUTES. 15 Motion by Thuesen, second by Marks, to approve the October 12, 1999 H.R.A. Minutes as pre - 16 sented. QMotion carried unanimously. 18 V. CLAIMS. 19 Motion by Marks, second by Faust, to approve Claims A -B below: 20 A. TIF Administrative Costs: 21 1. Hennepin County in the amount of $1,888.83 for County TIF Administrative 22 Costs Billable in 1999. 23 B. Legal Services: 24 1. 'Dorsey & Whitney in the amount of $537.75 for legal services rendered through 25 September 30, 1999 regarding The Hitching Post. 26 Motion carried unanimously. 27 VI. H.R.A. RESOLUTION 99-003, RE; AMEND BUDGET FOR TAX INCREMENT 28 FINANCING. 29 Ranallo stated that Resolution 99-003 is a resolution that the Commissioners have substantially 30 studied and reviewed. 31 Executive Director Michael Morrison stated that the main focus of Resolution 99-003 is to put funding in the fourth activity depicted on the Resolution, which is to redevelop the St. Anthony 41 Shopping Center area along New Brighton Boulevard and Kenzie Terrace. Housing and Redevelopment Authority Meeting Minutes November 9, 1999 • Page 2 I He wished to take the opportunity to address the Commissioners and provide an update on the 2 latest discussions with regarding to the Shopping Center redevelopment. 4 He drew the Commissioner's attention to a draft of a Letter of Understanding between the St. 5 Anthony Housing and Redevelopment Authority, and the Republic Investment Company dated 6 November 8, 1999. Said Letter of Understanding is designed to outline the understandings 7 reached between the parties and to set forth these understandings in the 13 items presented in the 8 Letter. 9 Morrison specifically mentioned item no. 4, which stated, in short, that the Developer (Republic 10 Investment Company) would pay the cost of the village green, transit stop, and pathway im- I I provements portion of the Master Plan. 12 Furthermore, Morrison stated, the payment for improvement costs would be equal to the amount 13 paid to the Developer for the land easements. Any additional pre -approved improvement costs 14 would be paid for the H.R.A. Any cost savings realized by the Developer below the agreed-upon 15 price would be returned to the H.R.A. Momson reminded the Commissioners that there are many agreements that need to be acted upon is in order to continue with the public space concept for the Shopping Center. 18 For the past year, Morrison, Kim Moore -Sykes, and Dick Krier have met with the Shopping 19 Center owners to develop a public space concept. Morrison pointed out the letter from Witcher 20 Construction Co. dated November 8, 1999 which presented a preliminary estimate for the land - 21 scaping and green area of the.Shopping Center. Witcher Construction provided an estimate for 22 the improvements with ponds, which was approximately $2.1 million, and an estimate without 23 ponds, which was approximately $1.2 million. Due to the fact that including two ponds would 24 approach a cost of approximately $800,000, it was proposed to have two fountains instead, at an 25 estimated cost of $50,000 each. Morrison stated that the City would own and maintain the public 26 space. 27 Ranallo clarified that the ponds in question were not holding ponds. Morrison agreed and stated 28 that the ponds were for decorative purposes only. 29 Morrison presented the second plan. He stated that a difference with the second plan is the deco - 30 rative street lighting and the fountains with water. Decorative street lighting is proposed to be 31 placed at each entrance of the Shopping Center. 32 Morrison stated the intent is to have two separate letters of understanding. One would be with tRepublican Investment, and the other would be with The Hitching Post. Housing and Redevelopment Authority Meeting Minutes November 9, 1999 • Page 3 I Ranallo asked Momson to clarify for the viewing public the specific business of The Hitching 2 Post. Momson replied that The Hitching Post is a retail business and will sell recreational vehi- 3 cles. 4 Morrison also mentioned that the gazebo area of the Shopping Center would serve as a multi-pur- 5 pose area designed for bands, orchestras, the high school band, and many other functions. 6 Marks expressed disappointment that the cost of the ponds was so high. He also was concerned 7 about the noise from Highway 88 affecting functions in the gazebo area. Marks suggested 8 switching the village green area and the gazebo area on the plans. 9 Momson offered that all of those items would be discussed and the current plan is a rough 10 sketch. He further stated that the City would have input in the process. 1 I Momson drew the Commissioner's attention to item no. 13 on the Letter of Understanding. This 12 item specifically states that the City and Republic Investment Company would begin 13 negotiations on the sale of the liquor store/fire hall land provided acceptable alternative locations 14 for these uses can be found. is Thuesen questioned whether the City would lose control regarding approval of prospective 16 businesses due to the language incorporated into item no. 13. Momson said that the Developer 17 is interested in that property and it is his understanding that the Developer was considering a 18 family restaurant in that comer. Momson further clarified that the City would own the property 19 and would have control. 20 Faust stated he would be in favor of proceeding. Also, he asked if there would be a way to incor- 21 porate a minimum assessment agreement into this project. Faust requested that Momson investi- 22 gate the possibility of such an agreement in order to preserve the City's future. 23 Cavanaugh suggested that the City find a way to protect such an investment in case the property 24 is sold. He stated that the City is enhancing the value of the Shopping Center and in the unlikely 25 event the Center is sold, the City should have a way to recoup some of the investment. 26 Additionally, he stated that when he reviewed the Master Plan, it appeared that the parking was 27 inadequate under the current ordinance. Furthermore, he inquired if the merchants in the Center 28 had approved the Plan, specifically the trees and shrubs that are intended to the planted. 29 Ranallo invited Planning Commissioner Dick Horst, who is a merchant in the Shopping Center, 30 to approach the Commissioners. 0 Housing and Redevelopment Authority Meeting Minutes November 9, 1999 • Page 4 I Mr. Horst stated that the merchants have been involved in the discussions about landscaping, and 2 was under the impression that mostly bushes would be planted as opposed to tall trees that would 3 obscure the view of the businesses. 4 Faust restated his suggestion about incorporating a minimum assessment agreement so that the 5 City would be protected in the future and would be able to retain the tax rate if the property sold. 6 Furthermore, he suggested that the agreement incorporate language that would require the Center 7 owners to agree to an amount that the property was worth in order to receive TIF financing. 8 Ranallo expressed concern about item nos. 12 and 13 of the Letter of Understanding and inquired 9 if those items could be eliminated. He supported the Plan, and agreed with Marks about the 10 possibility of moving the gazebo to a quieter spot, but he was reluctant to tie a future City I I Council with the situations posed in items 12 and 13. 12 Morrison clarified that the items specify "negotiations" and that the City would not be committed 13 to following through with any sale that is not desired. 14 Ranallo requested that City Attorney Bill Soth review the Letter of Understanding. Morrison replied that Mr. Soth has reviewed the Letter, and clarified that this is more of a policy issue up to the City. 17 Thuesen stated that he respected Ranallo's hesitation about item nos. 12 and 13, but he believed 18 that the City would benefit from keeping those items in place and exploring those issues. He 19 would be reluctant to limit the City's options by excluding the issues presented in item nos. 12 20 and 13. 21 Marks agreed with Thuesen and believed that the way item nos. 12 and 13 were written, that a 22 future Council would not be tied into any course of action. He felt that those issues provided an 23 opportunity to negotiate. Marks stressed that he believed the project as a whole should move 24 ahead with all due speed. 25 Cavanaugh disagreed because, he stated, there is a sum of money available until the end of the 26 year that is driving the agenda for the redevelopment. He believed there are unresolved issues, 27 Morrison acknowledged that the pace is fast; however, if the funds available are not allocated by 28 the end of this year, it could be more difficult to put the plan together and arrange for alternative 29 funding. 30 Ranallo suggested that he felt the public would want to be aware of potential changes, such as moving the fire station or closing the liquor store, and advised the Commissioners to obtain public input. Housing and Redevelopment Authority Meeting Minutes • November 9, 1999 Page 5 I Momson rephrased the point in the discussion. He clarified that the intent was to explore the 2 City's wishes about utilizing funds on public space in order to develop the Shopping Center and 3 public green space. He stressed that the City would not be agreeing to closing the liquor store or 4 buying Custom Liquidators. Those are long-term vision issues that the new Council would 5 consider. In essence, the discussion centers around the opportunity to use the funds in the Kenzie 6 District that are available until December 31, 1999 to secure the public space issue. 7 Marks said the redevelopment of the Shopping Center was a vision over 19 years ago. He had 8 supported redevelopment when he first ran for City Council. In short, Marks stated that he be- g lieved developing the public space would boost confidence in the community and provide many 10 benefits for the residents and the merchants. I I Cavanaugh expressed support for the project, but felt that the City would be obligating itself to 12 completing the project. He was concerned about the sources of revenue to implement and 13 complete the plan. 14 Faust summarized by stating that the City has an opportunity to obtain the public space, and he 15 felt that space would benefit the community. Therefore, he felt that the City should proceed. is Thuesen suggested the Commissioners recall all of the positive events that have taken place in 17 the last year regarding the Shopping Center. He understood that there is some risk involved in 18 proceeding with the project; however, he felt it would be a mistake on the City's part not to move 19 forward with re -energizing the Center. 20 Ranallo stated that he could not agree to the Letter of Understanding, in particular item no. 13, 21 without obtaining public input first. 22 Marks felt that item no. 13 did not bind the City in any manner and felt that the City would be 23 taking a risk if the project did not proceed. The redevelopment of the Shopping Center would 24 benefit the community by making the Center into a viable commercial district. Marks felt that 25 the project at hand was an important element in making that happen. 26 Momson stated that if the Letter of Understanding is approved, the City would try to secure the 27 two areas of public space by the December 16, 1999 Council meeting. A Developer's 28 Agreement would be drafted and City Attorney Bill Soth would review that agreement. He 29 further clarified that the following activities are intended to be completed by the end of the year: 30 (1) buy the 22,000 square feet from The Hitching Post for $110,000; and (2) Momson would 31 meet with Richard Krier and arrive at a figure for the 28,000 square feet of the Shopping Center, 32 which would also include the improvements to the public space. 0 In short, Momson stated that an easement agreement would be signed, funds exchanged, and a 34 Developers Agreement drafted to identify the responsibilities via the Letter of Understanding. Housing and Redevelopment Authority Meeting Minutes November 9, 1999 • Page 6 I Ranallo expressed his support for the project, with the exception of item no. 13 of the_ Letter of 2 Understanding. 3 Motion by Marks, second by Faust, to approve the Letter of Understanding regarding the St. 4 Anthony Shopping Center. 5 Voting on the Motion: Cavanaugh, Marks, Faust, Thuesen voted aye. Ranallo voted nay. 6 7 8 9 10 1 12 41 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 The motion carried. Motion by Marks, second by Thuesen, to approve Resolution 99-003, which states that the Housing and Redevelopment Authority of the City of St. Anthony hereby approves an amendment to the Tax Increment Financing Fund, with the exception that the dollar amount of $600,000 for the fourth item be stricken, and replaced with $1.2 million, as follows: PROJECT ACTIVITY Redevelop vacant property be- tween Industrial Custom Prod- ucts and the Amoco Station on 37' Avenue NE Bridge work along Silver Lake Road between 37' Avenue NE and Silver Lane Redevelop bowling alley property on Kenzie Terrace Redevelop St. Anthony Shopping Center area along New Brighton Boulevard and Kenzie Terrace Redevelop vacant lots by Twin City Federal Redevelop 10 residential lots by Kenzie plus add Kentucky Fried Chicken, pizza, video properties and Firstar lot 31 Redevelop Apache Plaza area 4 Streetscape within the City 33 TOTAL: FUNDS THAT COULD BE AUTHORIZED - NOT YET SPENT STATUS $233,000 No Change No activity Project scheduled for $270,000 1999/2000 $100,000 No activity $1,200,000 No activity $75,000 No Change No activity Have purchased 4 homes, $400,000 spent $250,000 and will This will be decreased significantly purchase 1 more Spent $300,000 on Cub $400,000 Foods project $250,000 No change No activity $2,928,000 Housing and Redevelopment Authority Meeting Minutes November 9, 1999 is Page 7 Motion carried unanimously 2 Morrison stated that his intention is to present a Letter of Understanding with The Hitching Post 3 at the November 30, 1999 Council meeting, and the Developers Agreement -at the December 16, 4 1999 Council meeting, as well as the Easement Agreement. Morrison agreed to confer with Jerry 5 Gilligan, the City's tax increment financing consultant, regarding the implementation of a mini - 6 mum assessment agreement. 7 Ranallo reiterated his previous suggestion that public input be taken before any decisions were 8 made regarding the fire station. 9 VII. OTHER BUSINESS. 10 None. 11 VIII. ADJOURNMENT. 12 Motion by Marks, second by Faust, to adjourn the meeting at 9:20 p.m. 0 14 Respectfully submitted, 15 Sue Selseth 16 TimeSaver Off Site Secretarial, Inc. 0 Motion carried unanimously.