HomeMy WebLinkAbout2010/04/05 - ADMIN - Minutes - Economic Development Authority - Regular Jif St. Louis Park OFFICIAL MINUTES
MINNESOTA ECONOMIC DEVELOPMENT AUTHORITY
ST. LOUIS PARK, MINNESOTA
APRIL 5, 2010
1. Call to Order
President Finkelstein called the meeting to order at 7:20 p.m.
Commissioners present: President Finkelstein, Jeff Jacobs, Anne Mavity, Paul Omodt, Julia Ross,
Susan Sanger, and Sue Santa.
Commissioners absent: None.
Staff present: City Manager (Mr. Harmening), Deputy Executive Director (Ms. Gohman),
Economic Development Coordinator (Mr. Hunt), Controller (Mr. Swanson), Communications
Coordinator (Mr. Zwilling), and Recording Secretary (Ms. Hughes).
2. Roll Call
3. Approval of Minutes
3a. Economic Development Authority Minutes of March 1, 2010
The minutes were approved as presented.
4. Approval of Agenda
The agenda was approved as presented.
5. Reports
5a. Economic Development Authority Vendor Claims
It was moved by Commissioner Omodt, seconded by Commissioner Santa, to approve the
EDA Vendor Claims.
The motion passed 7-0.
6. Old Business — None
Economic Development Authority -2- April 5, 2010
7. New Business
7a. Termination of Redevelopment Contract with Oak Hill 7100 LLC (Anderson
Builders) EDA Resolution No. 10-04
Mr. Hunt presented the staff report and stated that Anderson Builders had planned to build
a two story, 15,000 square foot office building at 3340 Republic Avenue and on October 15,
2007, the EDA approved a contract for the redevelopment of the property. He stated that
the developer has informed the City he has been unable to break ground due to a lack of
tenants and financing commitments; as a result, Section 9.1 of the contract states that failure
to commence or substantially complete construction of the project constitutes an Event of
Default. He explained that a remedy for the Event of Default is that the EDA is entitled to
terminate its obligations under the contract. He stated that because the EDA already
extended the contract once and it appears the developer is unable to fulfill its obligations, it
is appropriate for the EDA to terminate the contract and release each other from further
performance. He added that no funds from the EDA were disbursed to the developer and
unless the contract is terminated, the funds stipulated for this project will be indefinitely
encumbered, thus limiting its use elsewhere. He noted that the developer has no practical
remedy to cure the default and has executed a release which terminates the relationship
between the parties and releases each party from all obligations.
Commissioner Santa asked if tonight's action would preclude future action on the part of the
developer should the economy turn around.
Mr. Hunt stated that Mr. Anderson would be entitled to come back to the EDA and request
a similar type of arrangement with the EDA.
It was moved by Commissioner Santa, seconded by Commissioner Jacobs, to adopt EDA
Resolution No. 10-04 approving the Termination of Contract Agreement and Release
between the EDA and Oak Hill 7100 LLC
The motion passed 7-0.
8. Communications — None
9. Adjournment
The meeting adjourned at 7:25 p.m.
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Secretary President