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HomeMy WebLinkAbout1989/03/06 - ADMIN - Minutes - Economic Development Authority - Regular7 MICROFILMED 1 MINUTES ECONOMIC DEVELOPMENT AUTHORITY ST. LOUIS PARK, MINNESOTA March 6, 1989 l. Call to order The meeting was called to order by Commissioner Lyle Hanks at 5:30 p.m. It was moved by Commissioner Friedman, seconded by Commissioner Battaglia to designate Commissioner Lyle Hanks as Acting President. The motion passed unanimously. 2. Roll Call ] J The following Comrrissioners were present at roll call: Bruce Battaglia, Allen Friedman, Keith Meland, Larry Mitchell, Lyle Hanks. 3. Approval of agenda It was moved by Commissioner Friedman, seconded by Commissioner Meland, to approve the agenda for March 6, 1989. The motion passed unanimously. 4. Approval of minutes It was moved by Commissioner Meland, seconded by Commissioner Friedman, to approve the February 6, 1989 minutes. The motion passed unanimously 5. Hearings None. 5. Reports a. Update re Park Blvd. Towers project The Executive Di rector said this item updates the EDA on an item that came to its attention at last month's meeting. No action was required. b. Highway 7 status report The Executive Director said staff would appreciate any direction the Authority could give for uses in the Hwy. 7/Wooddale area above and beyond those designated as alternate uses in the Community Development Director's memo of Feb. 28. Commissioner Battaglia asked if the EDA would be seeking developers. The Executive Director recalled that in Nov. 1988, the Authority directed that some four proposals which had been received go back to staff and for the Authority to arrive at a consensus about what they would really like to see on this property. In that way, they would better be able to evaluate the development proposals. He felt additional proposals to those already received could be forthcoming. -]- Eco n om ic De v e lo pm en t Au th o r it y min u te s March 6 , 19 8 9 m ee t in g Com m is s i on er Me l an d fe lt th a t Su b u rb an Plu m b in g w as so r t of a m ag n e t to any dev e lo pm en t th a t w o u ld oc c u r on eit h e r sid e of it. He w o n d ere d if Suburban Plumbing planned to remain at that location. The Directer of Community Development said one of the developers has indicated they have an agreement to buy that property with remodeling of the structure. SPS would not be the occupant. Commissioner Friedman felt staff should be contacting the people at SBS to get some definitive answers as to what their intentions are, especially in light of the fact the EDA has money out there. c. Change in name of Housing and Redevelopment Authority The Executive Director referenced a memo from the City Attorney re the question of the name of this body. It was moved by Commissioner Meland, seconded by Commissioner Battaglia, that the City Attorney be directed- to draft the appropriate legislation and that the Executive Director of the EDA contact the City's legislative delegation to file it for hearing. Commissioner Friedman wondered if just changing the name rather than legislative action would not suffice. The City Attorney said that in and a part from strong feelings about the name, those deeds dealing with abstract property rather than torrens property were accepted for recording in the name of the Housing Authority. Thus, there are instruments which do use the name St. Louis Park Housing Authority. In answer to a question from Commissioner Friedman, the City Attorney said the name could be changed back to the Housing and Redevelopment Authority, do a deed from the HRA to the EDA, and then change it back. However, any future dealings involving real estate would face the same problem. Commissioner Friedman wondered why a court order could not be obtained stating the HRA has the authority to transfer property under the new name. The City Attorney said that was one of the alternatives in his memo; however, his conclusion was that a better alternative would simply be to get the legisla- tion passed. It was based on the fact that the Registrar of Titles is the one raising the objections and he was concerned about the time involved as well as the Examiner of Title's office unnecessarily deferring action. In answer to a question from Commissioner Battaglia, the City Attorney felt a court order would be more expensive than legislative action. Dudley Moylan, of the Housing Authority, thought all the properties had been turned over on the last day of September. The City Attorney said that the deeds were prepared, signed and delivered. The problem was when the deeds were to be recorded, some were accepted for recording, but those involving registered property were not because the Examiner of Titles took the position that the HRA di ct not have the power to change its name to the Housing Authority. -2- Economic Development Authority minutes March 6, 1989 MICROFILMED l ] J The motion passed 5-0. Commissioner Friedman wanted the minutes to reflect that he was not happy with the extra work involved, but that he di ctn' t wish to ho l ct the process up. ct. Status report: Letter of Credit, St. Louis Partners The Executive Director stated that he had received a status report from Pineapple Management re On the Avenue project. The City Attorney said he had become concerned as to whether or not Midwest Federal wou l ct be in a position to fund a draw on the letter of erect it. Given the insolvency of Midwest Federal, his office has been informed by officials at Midwest, that if a draw were to be made, they would fund it. However, there is concern that such a statement over the phone is legally binding. Also, the FDIC has the right to deny certain obligations whether money is available or not. He said that presently the agreement with the developer is at a standstill position, and the presumption is that we are moving to financing and construction of the project. He was reccmmending that the developer contact Midwest Federal and see if something of more legal consequence could not be obtained. Fred Katter, representing St. Louis Centre Partners, said he met with Midwest Federal and requested formally from them a written position with respect to the letter of credit. They have received assurances from the FDIC relative to another letter of credit they have outstanding and if the Authority so directs, he will obtain a similar letter from the FDIC relative to the On the Avenue project. It was moved by Commissioner Battaglia, seconded by Commissioner Friedman to ask Pineapple Corp. to obtain a letter from the FDIC guaranteeing the letter of credit. The motion passed 5-0. Mr. Katter displayed an enlarged drawing of a proposed revised site plan. He said that later in the process there would be a change to the redevelopment agreement for two reasons: (l) there is a different plan; and (2) this revised plan calls for some municipal parking places. Previously the developer had planned to build all of the parking places, so there would have to be an adjustment to the City for the construction of those municipal parking places. The Executive Director felt it important for the record to note that because the EDA had reviewed the revi sect site pl an does not mean that the Authority has agreed to municipal parking. Nor does it mean agreement won't be reached. Mr. Katter agreed with that statement. e. Oakmont status report The Executive Director said that the EDA had received a proposed settlement offer from Oakmont Partners for the litigation filed in regard to their attempts to develop the Oak Park Village site. Also, the EDA had requested at its February meeting that the City Attorney prepare a resolution cancelling the -3- Economic Development Authority minutes March 6, 1989 purchase agreement. The Cit y Attorney felt if the proposed settlement were to be discussed at all, it should be discussed in executive session as that is the manner in which the document had been submitted by the developer's attorney. It was moved by Commissioner Friedman, seconded by Commissioner Meland, to waive reading and adopt Resolution No. 89-1 EDA entitled "Resolution authorizing the cancellation of that amended and restated agreement for purchase and sale of real estate dated Sept. 2, 1987 by and between the Housing and Redevelop- ment Authority of St. Louis Park, Minnesota, seller, and Oakmont Development Limited Partnership, purchaser." The motion passed 5-0. f. Upgrade of Oak Park Village parkland It was moved by Commissioner Meland, seconded by Commissioner Battaglia, to authorize the expenditure of $4,000 for turf restoration of the remaining undeveloped parcels in Oak Park Village. Commissioner Battaglia asked if there wasn't a goose problem there. The Executive Director said steps have been taken with the DNR to address the geese problem in a number of sites throughout the City. He did note that it would take some three years to solve the geese problem. He also noted this problem would be addressed prior to turf restoration. The Acting President felt a friendly amendment could be made to the motion that the Authority would approve it subject to a plan for solution being brought back from the Parks and Recreation department re the geese. The motion passed unanimously. VI. Unfinished business a. Amendments to EDA by-laws It was moved by Commissioner Friedman, seconded by Commissioner Meland, to accept the changes in the by-laws. The motion passed unanimously. VII. New business None. VIII. Communications and bills It was moved by Commissioner Meland, seconded by Commissioner Friedman, to approve the claims list and authorize payment The motion passed unanimous1y. IX. The Authority convened in executive session and the meeting was adjourned unanimously on a• motion by Commissioner Friedman, seconded by Commissioner • {lr,,±:gs cting President Executive Director "l-