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HomeMy WebLinkAbout2011.06.13 EDA MinutesMINUTES FOR THE EDA MEETING OF JUNE 13, 2011 Miron called the meeting to order at 8:30 am. PRESENT: Arcand, Bever, Graff, Puleo, and Miron ABSENT: Denaway and Klein STAFF: Mike Ericson, City Administrator Bryan Bear, Community Development Director Rachel Juba, Planner APPROVAL OF MINUTES FOR THE EDA MEETING OF MAY 9, 2011 Arcand made motion, Bever seconded, to approve minutes for the EDA meeting of May 9, 2011. All aye. Motion carried. DISCUSSION ON PEARSON MECHANICAL BUILDING - 13497 FENWAY BOULEVARD NORTH The Pearson Mechanical building and property located at 13497 Fenway Boulevard North is now available for sale or lease. North Star Bank holds the mortgage on the property and has been working with the current owner to sell or lease the property. Jack Ritt, Chairman/CEO of North Star Bank, had a discussion with the EDA on the availability of the building. He wanted to make a connection with the EDA and the City as he markets the property. Commissioner Graff stated that the bank should note that there is rail access in the BEIP. DISCUSSION ON FLEXIBLE OFFICE SPACE At the April EDA meeting there was discussion on flexible office space and possible opportunities in Hugo. Commissioner Graff started the discussion and stated that he would like to meet with property owners that have vacant space and talk to them about this concept. The EDA directed staff to work with Commissioner Graff and set up meetings with property owners. Staff and Commissioner Graff met with Matt Alexander and Jack Appert from Kraus - Anderson, who owns the Healtheast Building and has vacant space. They have heard of flexible office space, but Kraus -Anderson has not used the concept before. They mentioned a company called Regus that purchases space and converts it into flexible office space. In regards to the Healtheast vacant space, Kraus -Anderson has not finished the space. The space would need to be finished and furnished. This is not an expense they would be willing to incur to accommodate for flexible office space. They also stated that the space would need to be managed and they do not see Kraus -Anderson managing the short-term lease involved with flexible office space, but would be open to a company leasing the vacant space to operate and manage flexible office space. Commissioner Graff discussed the outcome of the meeting and other information he has gathered for flexible office space. He has been in contact with Mike Brass at Welsh Companies and there are ways that flexible office space can work. One, owner occupied buildings with excess space to lease and two, a company that specializes in flexible office space manages the building. There are other ways it can work at a smaller location. He has been talking to several local businesses and business owners in the area. Commissioner Graff stated that he would like to invite Gretchen Boyd, president of Business Networking International (BNI), to a meeting to update the EDA on the BNI group. DISCUSSION ON TAX ABATEMENT At the April EDA meeting, staff was asked to put together information for the basics of tax abatement and how it can be used. Staff has included a document from Springsted on the concepts and mechanics of tax abatement. Minnesota law allows cities to grant property tax abatement for economic development. Tax abatement is a temporary deferral of payments for property tax. Bonds can be paid back with abatements. Some qualifications include: • Increase tax base • Provides employment • Redevelopment • Provide residents access to public services • Construct public facilities Community Development Director, Bryan Bear, mentioned projects in Hugo where the City used tax abatement to pay for bonds. He discussed that the regulations are less with tax abatement than with Tax Increment Financing (TIF). UPDATE ON DOWNTOWN REDEVELOPMENT Staff updated the EDA on the progress of downtown redevelopment. The purchase agreement extension was approved by the City Council with FBF, LLC, for the City owned property in downtown. The City owned print shop building will be rented out on a short term lease. Staff continues to help Pete Sampair in completing the Met Councils Livable Communities Grant application for a mixed-use development. NRI continues to move forward with its approved plans for the property. ADJOURNMENT Puleo made a motion, seconded by Arcand, to adjourn at 10:25 am. All aye. Motion carried.