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HomeMy WebLinkAbout2009.11.09 EDA MinutesMINUTES FOR THE EDA MEETING OF NOVEMBER 9, 2009 EDA Vice President Phil Klein called the meeting to order at 8:30 am. PRESENT: Jan Arcand, Jim Bever, Tom Denaway, Mike Granger Phil Klein, and Fran Miron ABSENT: Brian Thistle CITY STAFF PRESENT: City Administrator Mike Ericson, Community Development Director Bryan Bear, Associate Planner Rachel Simone, and Shayla Syverson, Economic Development / Parks Intern APPROVAL OF MINUTES FOR THE EDA MEETING OF OCTOBER 12, 2009 Arcand made motion, Granger seconded, to approve the minutes for the EDA meeting of October 12, 2009. All ayes. Motion carried. DISCUSSION ON CITY OWNED PROPERTIES IN DOWNTOWN Mark Finnemann, Richard Fischer and their realtor Mike Brass were present at the meeting to showcase their plans for the City owned property in downtown. The team of developers has been to the EDA before to present their ideas for the City owned property. The plans included a mix of office, retail and residential uses. Included in the packet is the plan that they submitted for the EDA to review at the previous meetings. The team of developers also presented a letter of intent to purchase the City owned properties. They discussed the plans and the letter of intent with the EDA. Staff recommended that the EDA discuss with the developers the plans and the letter of intent to purchase the properties. The CD Director gave an overview of the previous meeting and the plans that were presented. The development team presented a new concept for the City owned property. They stated that they did not like the way the entrance is planned into the Carpenters Restaurant Property, but showed it on the plans. It showed a large park in the center and retail corner to the north close to 147th Street. It also showed two office buildings. They were presenting their plans for a one arce piece of the City owned property and would like to market the office buildings and property before construction. They talked about a public and private partnership with the City. The development team presented a letter of intent to purchase the properties and gave the EDA marketing information. It is planned to be a 1 — 1 1/2 year project to market the properties and buildings. They want to have a ready to move in building. They would like the building to the south of the City owned property demolished. Mike Brass talked to the EDA about the commercial real estate market. He stated that office condo's are over built and are now selling for $100 per square foot, where they were previously selling for $200 per square foot. He stated that space planning for businesses is real and that he feels this is what businesses are now looking for. Granger asked if the development team was going to own the building or lease it out. The developers stated that their plan is to sell the buildings to an end user. Klein asked about the two accesses that the development team showed into the site. The CD Director stated that MNDOT has stated that they will allow one full access to the area and possibly one right in right out access. Mark Finnemann stated that they can probably live with a right in right out access. Miron stated that TIF money is shown in the financial plan for the project and asked what it would be used for. Mark Finnemann stated that they need to figure that out more, but will most likely be used for public improvements like ponds, parking, and utilities. Miron stated that the City has had these properties for a while now and things are not happening on their own. This area needs a push and this may be the answer. Granger asked what the City has into the properties. The CD Director stated approximately $8 per square foot. Mark Finnemann walked the EDA through the letter of intent. The big item is the demolition of the building to the south of the City owned property. He stated that they really want the plan to move forward. Bever asked if the development team was interested in purchasing the properties to the south of the City owned properties. Mark Finnemann stated that they have contacted the property owners to start a conversation, but it did not work out. They would like to work with the property owners to the south. Denaway asked the development team what they think the next steps are. Mark Finnemann stated that it would be working out a developers agreement and demolition of the building to the south. Granger asked staff what was going on with the Carpenters redevelopment project. The CD Director stated that staff has met with them and they are interested in talking about alternatives. He stated that everything is on the table for them. He stated that the development team is proposing to purchase an acre. Staff will need to evaluate what we will have left and look at the whole area. Mark Finnemann stated that the development team would like to think of the park as a shared investment between the developers and the City. Granger asked about the value of the City owned property again and asked what the City assessor thinks the City could sell it for. The CD Director stated that the City Assessor believes that the City could sell the property for $8 to $9 per square foot. Granger stated that the park is not very important to him because we have more parks in the City now then when the downtown plan was developed and there is Lions Park directly to the west. A park on the Egg Lake will not attract a large amount of people, but will give businesses a good place to eat lunch and a view of the lake. The trail connections are important to the area. Miron stated that staff needs to look at the plan and analyze it. We need to think big picture for the City. Granger stated lets keep this moving and give the development team a direction to go. Miron made a motion, seconded by Klein, to set up a meeting with the owners of Carpenters Restaurant and include Miron, Denaway and Council Member Weidt. He stated we should get the valuations from the County and Frank Langer and get estimates for the demolition of the building to the south of the City owned property. All ayes. Motion Carried. Miron made a motion, seconded by Granger, to do an analysis of the development proposal and bring back to the EDA. Also meet with the development team and include Miron, Granger and Denaway. All ayes. Motion Carried. DISCUSSION ON JOINT WORKSHOP At its October meeting the EDA made a recommendation to the City Council to have a joint meeting with the City Council, Planning Commission and EDA to discuss the mixed use area and northern gateway. The City Council at its November 2, 2009 meeting scheduled the joint meeting for January 14, 2010; during the regular Planning Commission meeting time at 7 pm. Staff recommended that the EDA discuss ideas for the joint meeting. Denaway made a motion, seconded by Klein, to schedule January 14, 2009 as a joint meeting with the City Council, Planning Commission and EDA to discuss the mixed use area and northern gateway. All ayes. Motion Carried. UPDATE ON DOWNTOWN REDEVELOPMENT Staff updated the EDA on the progress of downtown redevelopment. The CD Director stated that the house to the east of the Ricci's property has been sold. The Ricci's property is now available for about $398,000. The End Zone site is still on the market. Superior Market is going into foreclosure and the redemption period will end in December 2009. Staff has talked to people that may want to redevelop the property. UPDATE ON BR&E PROGRAM The Economic Development / Parks Intern gave an update on the BR&E program. There are 25 surveys back so far and staff is looking to get more in the near future. The survey process in coming to an end so the U of M can analyze the data. The Economic Development / Parks Intern also talked about the Parks Open House on November 11, 2009 from 6 pm to 8 pm. Klein made a motion, seconded by Bever, to recess the EDA meeting until the evening of November 10, 2009 so the members can attend the Parks Open House. All ayes. Motion carried.