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HomeMy WebLinkAbout2010.07.12 EDA Packet AGENDA CITY OF HUGO ECONOMIC DEVELOPMENT AUTHORITY MONDAY, JULY 12, 2010 8:30 AM 8:30 am 1. Call to Order 8:31 am 2. Roll Call 8:32 am 3. Approval of Minutes EDA Meeting of June 14,2010 8:35 am 4. Discussion on Lease Revenue Bonds 9:00 am 5. Discussion on Commercial Design Guidelines 10:00 am 6. Update on BR&E implementation Project Teams 10:l3 am 7. Update on Downtown Redevelopment 10:20 am 8. Update on Glamos Wire Products Ribbon Cutting 10:30 am 9. Adjournment BACKGROUND MEMO FOR THE EDA MEETING OF MONDAY, July 12, 2010 3. APPROVAL OF MINUTES Staff recommends approval of the minutes from the June l4, 2010 EDA Meeting as presented. 4. DISCUSSION ON LEASE REVENUE BONDS The City financed the City Hall and Fire Hall through the lease revenue bonding authority of the EDA. The EDA purchased and owns both of the buildings. The City has approved the refinancing the bonds. The new bonds will need to be transferred by a sale from the EDA to the City in order for the refinancing to occur. The new bonds called General Obligation Capital Improvement Bonds are scheduled to be sold by the City on July 19, 2010. 5. DISCUSSION ON COMMERCIAL DESIGN GUIDELINES The comprehensive plan discourages "big box"commercial buildings. The implementation portion of the plan states that the City should adopt an ordinance to limit building size in order to be consistent with the comp plan. The ordinance review committee (ORC) thought that large commercial buildings may be alright as long as they're designed correctly and instead of having an ordinance to limit building size, the same intent can be achieved with design guidelines. The EDA agreed with the ORC and stated that they would like staff to start working on design guidelines for the EDA's review. Staff will make a presentation on design guidelines to get input from the EDA on the City having design guidelines. 6. UPDATE ON BR&E IMPLEMENTATION PROJECT TEAMS Staff will update the EDA on the BR&E Implementation Project Teams. 7. UPDATE ON DOWNTOWN REDEVELOPMENT Staff will update the EDA on the progress of downtown redevelopment. 8. UPDATE ON GLAMOS WIRE PRODUCTS RIBBON CUTTING Glamos Wire will be starting construction of their building addition this summer. They are scheduled to have a ribbon cutting and grand opening on October 15, 2010. The EDA is encouraged to attend this event. MINUTES FOR THE EDA MEETING OF JUNE 1-t, 2010 EDA President Fran Miron called the meeting to order at 8:30 am. PRESENT: Jan Arcand, Tom Denaway, Phil Klein, and Fran Miron ABSENT: Jim Bever, Mike Granger, and Brian Thistle CITY STAFF PRESENT: City Administrator, Mike Ericson, Community Development Director, Bryan Bear, and Planner, Rachel Simone. APPROVAL OF MINUTES FOR THE EDA MEETING OF VIAY 10, 2010 Klein made motion, Denaway seconded, to approve the minutes for the EDA meeting of May 10, 2010. All ayes. Motion carried. DISCUSSION ON PURCHASE AGREEMENT FOR THE CITY OWNED PROPERTIES IN DOWNTOWN Over the past couple month's staff has been working with Mark Finnemann, Richard Fischer, and Mike Brass on a purchase agreement for the City Owned property in the downtown. Staff made a presentation on the purchase agreement details. The purchase agreement is for 12 months contingent on a development agreement with the City and the developer. The purchase price is $770,200.00 and can be reduced for exceptional site plan, quality architecture, and use of the property at the discretion of the City Council. Alternatively the developer can ask for approval of Tax Increment Financing for the project. Miron asked if the development team could ask for extensions on the agreement and if the development team was alright with the agreement. The CD Director stated that they could ask for extensions from the City Council and that the development team generally likes the agreement and are ready to sign. Denaway and Arcand stated that they liked the purchase agreement and we still have a chance to maintain control as the City reviews the plans and enters into a development agreement. Miron talked about the holding costs for the property. Staff recommended that the EDA make a recommendation to the City Council to approve the purchase agreement with the development team. Denaway made a motion, seconded by Arcand, to make a recommendation to the City Council to approve the purchase agreement. All aye. Motion Carried. UPDATE ON BR&E PROGRAM DOWNTOWN PROJECT 'CEANI The Downtown Project'ream is one of the subcommittees that came out of the BR&E program. They have completed their action plan which was included in the packet for the EDA to review. Miron and Arcand stated that they like the plan and goals. The subcommittee has done a great job completing the action plan. UPDATE ON DOWNTOWN REDEVELOPMENT Staff updated the EDA on the progress of downtown redevelopment. The Antique Store was ordered for demolition at the City Council meeting of June 7, 2010. The owners agreed that the building was substandard. They will either have to demolish the building within 30 days or the City will have to do it and assess the costs to the property taxes. A draft assessment agreement was also approved for the End Zone restaurant building. The owners are in agreement. Staff continues to wait for the demolition costs from the contractors to finalize the assessment agreement. Staff continues to work with the bank that owns the Ricci's building to enter into an assessment agreement to demolish the building. The EDA will be update on the progress of all properties at their next meeting. UPDATE ON NATIONAL RECYCLING INC. (NRI) The City has received several complaints on NR[ regarding the amount of metal stored on the property and the traffic problems the business has caused. The business is located on Highway 61 south of 165`" Street. Staff has investigated the complaints and has informed the property owner that it is an illegal nonconforming use, which means the use is not allowed in the zoning district. Staff has since met with the property owner on how to resolve the issues with the complaints and the illegal use. Staff updated the EDA on the outcome of the meeting. The owner is in agreement to submit a transition plan to be in conformance with the zoning district regulations. A recycling center, with no scrap, scale, or semi trucks, is allowed in the C-2 zoning district with a CUP. UPDATE ON BUSINESS NETWORKING BREAKFAST The Hugo EDA, Hugo Business Association (HBA), and Business Networking International of Hugo hosted a business networking breakfast on June 15, 2010 from 7:30 —9:00 am. The EDA was invited to attend this event. ADJOURNMENT Klein made a motion, seconded by Denaway, to adjourn at 10:10 ani. All Aye. Motion Carried. EXTRACT OF MINUTES OF A MEETING OF THE BOARD OF COMMISSIONERS OF THE ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF HUGO, MINNESOTA FIELD: July 12, 2010 Pursuant to due call, a regular meeting of the Board of Commissioners of the Economic Development Authority of the City of Hugo, Minnesota, was duly held at the City Hall on July 12, 2010, at P.M.. The following members were present: and the following were absent: Member introduced the following resolution and moved its adoption: RESOLUTION AUTHORIZING TERM[NAT[ON OF LEASES AND GROUND LEASES AND CALLING PRIOR BONDS WHEREAS, the City of Hugo, Minnesota(the"City") proposes to issue its $1,375,000 General Obligation Capital Improvement Plan Bonds, Series 2010A (the "Bonds") to finance the construction and equipping of a new city hall and construct a fire station(collectively, the "Projects") from the Economic Development Authority of the City of Hugo, Minnesota(the "Authority"); and WHEREAS, the proposed purchase price for the Projects is an amount equal to the outstanding principal and interest on the Authority's (i) Public Project Revenue Bonds, Series 1998 (City of Hugo Lease With Option to Purchase Project), Series 1998, dated September 1, 1998 (the "Series 1998 Prior Bonds") and (ii) Public Facility Lease Revenue Bonds, Series 2001 (City of Hugo, Minnesota Lease Obligation) (the "Series 2001 Prior Bonds"), dated September 1, 2001; and NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of the Economic Development Authority of the City of Hugo, Minnesota, as follows: 1. The Series 1998 Prior Bonds which mature on and after February 1, 2011, shall be redeemed and prepaid on October 1, 2010 (the "Call Date"), in accordance with the terms and conditions set forth in the Notice of Call for Redemption attached as Exhibit A hereto, which terms and conditions are hereby approved and incorporated herein by reference. 2. As provided in Section 10.4 of the Lease With Option to Purchase Agreement between the City and the Authority, dated as of September 1, 1998 (the "Series 1998 Lease"), the Authority hereby determines and declares that upon the issuance of the Bonds and the funding of the Payment Account as provided in the City's Bond Resolution to be adopted on July 19, 2010, the Series 1998 Lease shall be terminated and the Authority shall have no further right, title and/or interest in and to said Series 1998 Lease. The President and Secretary of the Authority 25799650 are hereby authorized to execute the'rermination of Lease Agreement forms to convey the property covered by the Series 1998 Lease and the Series 1998 Ground Lease Agreement between the City and the Authority, dated September 1, 1998 back to the City. 3. The Series 2001 Prior Bonds which mature on and alter February 1, 2011, shall be redeemed and prepaid on February 1, 2011 (the "Call Date"), in accordance with the terms and conditions set forth in the Notice of Call for Redemption attached as Exhibit B hereto, which terms and conditions are hereby approved and incorporated herein by reference. 4. As provided in Section 10.4 of the Lease Agreement between the City and the Authority, dated as of September 1, 2001 (the "the Series 2001 Lease"), the Authority hereby determines and declares that upon the issuance of the Bonds and the funding of the Escrow Account as provided in the City's Bond Resolution to be adopted on July 19, 2010, the Series 2001 Lease shall be terminated and the Authority shall have no further right, title and/or interest in and to said Series 2001 Lease. The President and Secretary of the Authority are hereby authorized to execute the Termination of Lease Agreement forms to convey the property covered by the Series 2001 Lease, the Series 2001 Short Form Lease Agreement, and the Series 2001 Ground Lease Agreement between the City and the Authority, dated September 1, 2001 back to the City. The motion for the adoption of the foregoing resolution was duly seconded by member and, alter a full discussion thereof and upon a vote being taken thereon, the following voted in favor thereof: and the following voted against the same: whereupon the resolution was declared duly passed and adopted. 2 2579965vl STATE OF MINNESOTA ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF HUGO I, the undersigned, being the duly qualified and acting Planning and Development Director of the Economic Development Authority of the City of Hugo, Minnesota, do hereby certify that I have compared the attached and foregoing extract of minutes with the original thereof on Cite in my office, and that the same is a full, true and complete transcript of the minutes of a meeting of the Board of Commissioners, duly called and held on the date therein indicated insofar as such minutes relate to the Resolution Authorizing Termination of Lease, and Ground Lease and Calling Prior Bonds. WITNESS my hand on July 2010. Secretary 25799G5v1 EXHIBIT A NOTICE OF CALL FOR REDEMPTION $1,165,000 PUBLIC PROJECT REVENUE BONDS, SERIES 1998 (CITY OF HUGO LEASE WITH OPTION TO PURCHASE PROJECT) ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF HUGO, WASHINGTON COUNTY, MINNESOTA NOTICE IS HEREBY GIVEN that by order of the Board of Commissioners of the Economic Development Authority of the City of Hugo, Washington County, (Minnesota(the "EDA"), there have been called for redemption and prepayment on October 1, 2010 those outstanding bonds of the EDA designated $1,165,000 Public Project Revenue Bonds. Series 1998 (City of Hugo Lease With Option to Purchase Project), dated as of September 1, 1998, having stated maturity dates in the years 2011 through 2014, inclusive, and totaling $390,000 in principal amount and having CUSP numbers listed below: Year CUSIP Number* 2011 2012 2013 2014 The bonds are being called at a price of par plus accrued interest to October 1, 2010, on which date all interest on said bonds will cease to accrue. Holders of the bonds hereby called for redemption are requested to present their bonds for payment at U.S. Bank National Association, successor to Firstar Bank of Minnesota, N.A., Attention: Paying Agent Services, 60 Livingston Avenue, St. Paul, Minnesota 55107. Dated: , 2010 BY ORDER OF THE BOARD OF COMMISSIONERS, ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF HUGO, MINNESOTA *The EDA shall not be responsible for the selection of or use of the CUSIP numbers, nor is any representation made as to their correctness indicated in the notice. They are included solely for the convenience of the holders. 25799650 EXHIBIT B NOTICE OF CALL FOR REDEMPTION $1,870,000 PUBLIC FACILITY LEASE REVENUE BONDS, SERIES 2001 (CITY OF HUGO, MINNESOTA LEASE OBLIGATION) ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF HUGO, WASHINGTON COUNTY, MINNESOTA NOTICE IS HEREBY GIVEN that by order of the Board of Commissioners of the Economic Development Authority of the City of Hugo, Washington County, Minnesota(the "EDA"), there have been called for redemption and prepayment on February 1, 2011 those outstanding bonds of the EDA designated $1,870,000 Public Facility Lease Revenue Bonds. Series 2001 (City of Hugo, Minnesota Lease Obligation), dated as of September 1, 2001, having stated maturity dates in the years 2011 through 2018, inclusive, and totaling$1,130,000 in principal amount and having CUSP numbers listed below: Year CUSIP Number* 2011 2012 2013 2014 2015 2016 2017 2018 The bonds are being called at a price of par plus accrued interest to February 1, 2011, on which date all interest on said bonds will cease to accrue. Holders of the bonds hereby called for redemption are requested to present their bonds for payment at U.S. Bank National Association, Attention: Paying Agent Services, 60 Livingston Avenue, St. Paul, Minnesota 55107. Dated: 12010 BY ORDER OF THE BOARD OF COMMISSIONERS, ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF HUGO, MINNESOTA *The EDA shall not be responsible for the selection of or use of the CUSIP numbers, nor is any representation made as to their correctness indicated in the notice. They are included solely for the convenience of the holders. 25799650 Rachel To: Bryan Bear Subject: RE: Glamos building project -----Original Message----- From: Paul Glamos [mailto:Paul@donnerindustries.com] Sent: Friday, July 02, 2010 7:38 AM To: Mike Ericson Cc: Annette Glamos Subject: Glamos building project Hello Mike, It was good to speak with you earlier in the week. We discussed different dates for a 'ribbon cutting' or grand opening for the new office. We came up with Oct. 15- 2010. Everyone is Welcome-We hope this will work with everyone and look forward to a great 'new' kick-start for the upcoming year! Have a great 41n, Paul 1