HomeMy WebLinkAbout1989/04/03 - ADMIN - Minutes - Economic Development Authority - RegularMICROFILMED
1 MINUTES
ECONOMIC DEVELOPMENT AUTHORITY
ST. LOUIS PARK, MINNESOTA
April 3, 1989
l. Call to order
Acting President David Strand called the meeting to order at 6:00 p.m.
2. Roll call
The following commissioners were present at roll call:
Allen Friedman, David Strand, Lyle Hanks. Commissioner
at 6:1l p.m.
3. Approval of minutes of March 6, 1989
Bruce Battaglia,
Mitchell arrived
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It was moved by Commissioner Hanks, seconded by Commissioner Battaglia,
to approve the minutes of the March 6, 1989 meeting. The motion passed
5-0.
4. Approval of agenda for April 3, 1989
It was moved by Commissioner Friedman, seconded by Commiss+ckR&/@9}73prove
the agenda for April 3. The motion passed 5-0.
5. Reports
a. Suburban Plumbing plans - The Executive Director gave a brief update
on the Authority's request that staff get an indication of Suburban Plumbing's
plans for its property in the Hwy. 7 corridor. Staff was informed SPS does
have a purchase agreement which expires at the end of May 1989 to sell the
property to a firm that has submitted a proposal to the City for development
in that area. It was suggested to SPS that they might want to defer entering
into another purchase agreement until it is determined which developer,
if any, the EDA elects to develop the site.
No action was required on this matter.
b. Status - Louisiana Partners The Executive Director said there is
a large area of contamination of the site and that the consultant retained
feels the PCA will not likely allow a structure to be built over the contamina-
tion. The consultant also indicated it may not be financially feasible
to remove the contaminated materials. Staff has met with representatives
of Louisiana Partners and have jointly agreed to approach the PCA to get
clarification on whether or not construction can be located on this property.
He said this item will come up on the City Council agenda later this evening;
thus, no action is required at this point.
In answer to a question from Commissioner Battaglia as to whether the developer
would consider reducing the size of their project, the Executive Director
said the developer wanted to do further evaluation of the site and not
to preclude any options, amongst which would be a scaling down of the proposed
development.
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April 3, 1989
Commissioner Friedman asked if an overlay could be provided fo r the next
meeting to get a better perspective on the site.
Commissioner Strand asked if the contam inants on the site were the same
as the contam inants on the Reilly Tar site. The Executive Director said
it was his understanding the contaminants on this site were rem nants of
petroleum products.
Commissioner Strand noted the costs incurred to date by the developer.
They had told him the project was not viable if they were not permitted
to put gasoline pumps on the site, a plan opposed by several members of
Council. If the item comes back for discussion and the pumps are not allowed,
he wondered if the developer were not being strung along.
Commissioner Friedman felt it appropriate for the applicant to send a letter
indicating whether or not they would go ahead with the development if the
gas pumps were not allowed. Commissioner Hanks seconded.
Commissioner Hanks asked when staff expected to speak with the PCA which
would affect the developer's letter.
The Executive Director said he expected to have a report to the EDA at
its next meeting. From correspondence received previously by the developer,
it was the Di rector's impression the developer is operating on the premise
that they can have gas pumps.
Commissioner Hanks said he had seen some recent drawings of the project
and apparently the gas pumps had been moved back further away from Lake
St. which allayed his initial concerns about having pumps as part of the
wost. all
[he mob ion passed '5- 0-
c. Analysis of Oakmont settlement offer - The Acting President suggested
moving this item to the end of the agenda as the Authority would be discussing
it in executive session. (There was insufficient time in the executive session to discuss
this item.
d. Status report: On the Avenue - The Executive Di rector noted the letters
from Attorney Steil en and Attorney Robert A 11 yn, the developer's counsel.
He said discussion of this matter was slated for executive session as well.
He did want to mention the appearance of the property and since building
is not to start this summer, it was his intention to work with staff to
put together a pl an for the green-up of the site. He felt there was a need
to get grass established on the site as it will be a real eyesore if something
is not done.
It was moved by Commissioner Hanks to move forward on a green-up project
and keep the EDA informed. The motion was seconded by Commissioner Battaglia.
The motion passed 5-0.
Acting President Strand, referring to the letter from the FDIC, asked when
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the Authority can expect to receive a letter from the FDIC and whether
the developer was satisfied as to the steps that have been taken to get
the assurances.
Fred Katter, Pineapple Management, said he had been advised the FDIC will
take the matter up on April 4. He did not know if this meeting would result
in a decision nor when they would be hearing from them following that meeting.
President Strand asked that Mr. Katter so advise Attorney Steilen when
they hear from the FDIC.
6. Unfinished business
None.
7. New business
a. Proposal from Robert Larsen Partners - The Executive Director said the
Authority needs to be advised that Mr. Steilen had informed him he has
done work occasionally for Robert Larsen Partners, and if and when the
Authority needs legal assistance in regard to this project, he would recommend
that special counsel be retained to avoid any possible conflict of interest.
He said the Robert Larsen Partners proposed to develop on what is referred
to as the Taracorp property. The project would be a convenience/retail
center. He said there were three questions the Authority needs to address
with respect to this unsolicited proposal:
l. ls retail the best use for the property in view of what the Authority
is attempting to accomplish in the Hwy. 7 TIF district?;
2. Will this project compete with other projects the EDA is undertaking
at this time including the Louisiana Ave. Partners project and the On the
Avenue project?;
3. What, if any, risk to the EDA would exist in undertaking a project on
a parcel that has a history of contamination? He referenced a letter received
from the MPCA.
Kelly Doran, Robert Larsen Partners, gave a brief overview of the proposal. He
said they hoped to start the project by September and tonight was seeking
the Authority's input and comments re the proposed use of the property.
He noted that because of the contamination on the property, it is probably
one of the few uses that can be financed today. Also, they wanted to talk
about the condemnation of one or more of the adjoining projects as well
as the tax increment assistance they seek.
Commissioner Hanks felt the Authority should take time at a study session
to discuss this proposed project before it goes too far.
Mr. Doran said they were not seeking the City's indemnification or City
subsidy for acquisition of the site.
It was moved by Commissioner Hanks, seconded by Commissioner Battaglia,
to hold a special meeting on April 17 at 5:30 p.m. to discuss the proposed
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p r o j e c t .
T h e m o t i o n p a s s e d 5 -0 .
b . E x t e n s i o n o f le a s e w it h W i l k i n s P o n t i a c - T h e E x e c u t i v e D i r e c t o r s a i d
t h e r e w e r e n o o u t s t a n d i n g v i o l a t i o n s o n t h e la s t in s p e c t i o n d o n e o n th e
p r o p e r t y .
C o m m i s s i o n e r F r i e d m a n f e l t a n in s p e c t i o n o f t h e p r o p e r t y s h o u l d b e c a r r i e d o u t .
A t t o r n e y S t e i l e n p r e s e n t e d b r i e f b a c k g r o u n d in f o r m a t i o n o n t h e m a t t e r .
H e s a i d o n e o f t h e p r o b l e m s w a s fo r W i l k i n s f i n d i n g a p l a c e t o m o v e to
b e c a u s e it is e s s e n t i a l l y i n t h e h a n d s o f G e n e r a l M o t o r s . T h e y p o t e n t i a l l y
h a v e a s i t e in M i n n e t o n k a . T h e y w e r e s e e k i n g t h e e x t e n s i o n t o f i n a l i z e
p l a n s f o r s i t e lo c a t i o n a n d p e r h a p s e x t e n d e d t i m e t o c o m p l e t e c o n s t r u c t i o n . H e
n o t e d s e v e r a l o p t i o n s : (l ) k e e p t h e r e n t t h e s a m e ; (2 ) r a i s e it b y t h e
in f l a t i o n f a c t o r ; (3 ) lo o k a t a r e t u rn o n t h e C it y 's in v e s t m e n t. H e p o in t e d
o u t t h e d e v e l o p e r w a s n o t in n e e d o f t h i s s it e w it h i n t h e n e x t s i x m o n t h s
a n d t h e r e f o r e it w o u l d n o t in t e r f e r e w i t h t h e d e v e l o p m e n t .
A c t i n g P r e s i d e n t S t r a n d s a i d t h i s it e m h a d c o m e u p a t le a s t t w o t i m e s w h e n
t h e H R A w a s in e x i s t e n c e . T h e q u e s t i o n w a s w h a t w o u l d b e a n a p p r o p r i a t e
r e n t t o c h a r g e . H e s a i d it w a s t h e w i s h o f t h a t b o d y n o t t o in c r e a s e th e
a m o u n t b e y o n d t h a t w h i c h w a s b e i n g c h a r g e d u n d e r t h e o r i g i n a l le a s e , no r
t o r e q u e s t a d d i t i o n a l C P I a d j u s t m e n t s f o r e x t e n s i o n o f t h e t e r m o f th e
le a s e . T h e A u t h o r i t y , o f c o u r s e , w a s n o t b o u n d b y t h o s e a c t i o n s .
It w a s m o v e d
S t r a n d
a n in s p e c t i o n o f
b e r e n e w e d f o r s i x
b y C o m m i s s i o n e r H a n k s , s e c o n d e d b y C o m m i s s i o n e r
t h a t t h e r e n t r e m a i n t h e s a m e a n d t h a t st a f f c o n d u c t
t h e b u i l d i n g a n d if all passes inspection that the lease
months.
Commissioner Mitchell said he really needed more information on the financial
aspect.
Acting President Strand said the HRA felt Wilkins was in this situation
not by their doing but by the HRA's desire to redevelop the property. It
was the HRA's decision not to pursue additional rent.
The motion passed 4-0-1 (Commissioner Mitchell abstained).
8. Communications and bills
It was moved by Commissioner Hanks, seconded by Commissioner Battaglia,
to receive the February and March 1989 financial statements and authorize
payment of the vendor claims.
The motion passed 5-0.
The Authority met in executive session.
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1 Upon its return to chambers, the Authority discussed item 5d.
5d. Status report: On the Avenue project
The Acting President said it was the consensus of the Authority that significant
issues have been raised in the past two weeks and in order to facilitate the
necessary discussion with the developer, the Authority was asking the developer
if they would be willing to enter into another amendment to the agreement
to extend it for 60 days and see if the issues can be resolved.
The attorney for the developer said a 60-day extension would be acceptable.
He did request a meeting with the subcmnrittee of the Authority in crder
to clairify the issues of ccncern to the Authority.
It was moved by Commissioner Hanks, seconded by Commissioner Ilitchell, tc
enter into an amendment to the cgreemert extending it for 60 days.
The motion passed 5-0.
8. Adjournment
The meeting as adjourned at 7:20 p.m,
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Executive Director
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