HomeMy WebLinkAbout1989/04/17 - ADMIN - Minutes - Economic Development Authority - Regular,
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MINUTES
ECONOMIC DEVELOPMENT AUTHORITY
ST. LOUIS PARK, MINNESOTA
April 17, 1989
l. Call to order
The meeting was called to order by Acting President, David Strand at 6: 45
p.m.
2. Roll call
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The following Commissioners were present at roll call: Tom Duffy, Allen
Friedman, Lyle Hanks, Keith Meland and David Strand.
Commissioner Larry Mitchell arrived at 6:05 p.m.
Also present were the Executive Director, City Attorney and Director of
Community Development.
3. Approval of minutes
It was moved by Commissioner Hanks, seconded by Commissioner Meland, to
approve the minutes of the April 3, 1989 meeting.
The motion passed unanimously.
4. Approval of agenda
It was moved by Commissioner Hanks, seconded by Commissioner Duffy, to
approve the agenda for April 17, 1989 with the addition of item 5f. Report
regarding Theros property.
The motion passed unanimously.
5. Reports
a. Report re proposal from Robert Larsen Partners - Kelly Doran of Robert
Larsen Partners addressed the Authority with its proposal for development
of the former Golden Auto Parts/Taracorp property. They would be seeking
to acquire three smaller parcels by eminent domain if they were not able
to acquire them privately.
It was moved by Commissioner Hanks, seconded by Commissioner Meland, that
the Authority consider this proposal only under the condition that the
City is held completely harmless of any costs now or in the future should
the project be involved in any environmental situation after the Authority has
participated in financing.
Mr. Doran said that was acceptable to the developer.
The motion passed 4-0.
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Economic Development Authority
April 17, 1989
Strand
Acting President /asked that a brochure showing the developments of Robert
Larsen Partners be prepared and distributed to the Authority.
The Acting President asked what properties were being considered that re qui red
assistance on eminent domain. Mr. Moran responded the Kennel Aire building
and the older office warehouse behind it and an abandoned building next to
the railroad spur.
Various other aspects of the proposed development were discussed including
landscaping, traffic generation and egress/ingress.
The Executive Director briefly reviewed the financial aspects of the project
and referenced a memo from the Director of Community Development. The total
assistance being sought is $2.3 million.
The Acting Director asked if the developer had a written commitment from
the lendor on financing. Mr. Doran said they had an expression of interest.
He said a commitment would be subject to leasing agreements and City approvals
being in pl ace.
The Acting Di rector asked if a letter had been received from the prospective
lendor indicating that they will not ask the City to indemnify or hold harmless
any party with respect to this development. The Executive Director said he
was not aware of the existence of such a letter in the City's possession.
In answer to a question from the Acting Director if such a letter could be
provided, the representative from the prospective lendor said he was not
in a position to say whether or not Prudential would provide such a letter.
The Acting Director felt, from his perspective, this needed to be ascertained.
He would not be willing to proceed unless he knew upfront that the prospective
lendors on this project were willing to enter into such an agreement.
Commissioner Mitchell summarized the recommendation in staff's report, i.e.
that the proposal be deferred and that the site be included in the Hwy. 7
corridor study. He asked Mr. Doran his feelings about that recommendation.
He felt that their proposal was ideal for the site as housing, office space
and industrial were inappropriate for the property. If there were deferral
for completion of the Hwy. 7 corridor study, he felt the proposed development
would be down-sized and restricted at this point to the Taracorp site.
Commissioner Mitchell asked staff for the reason for its recommendation.
The Director said the plans and studies of the Hwy. 7 corridor were numerous
and in his opinion lacked specificity to some degree. He felt the relationship
of this proposed project to the whole City was important. He did not get
the sense that within the Hwy. 7 corridor plan there was a perspective which
would allow for the integration of the overall picture of redevelopment in
St. Louis Park.
The Executive Director reminded the Authority that staff was asked late in
1988 to review the Hwy. 7 TIF and return to the Authority with goals, objectives
and means by which they could be fulfilled. While in the midst of the report
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Economic Development Authority
April 17, 1989
the Authority had asked for, the proposal before them came in unsolicited.
He felt there were two alternatives: (1) to direct staff to negotiate some
type of arrangement with Robert Larsen Partners on this proposal; and (2)
to defer it and work it into the overall Hwy. 7 review. He felt that review
would be completed within two months.
Mr. Moran said they were very much interested in the property sitting to
the east of the railroad tracks. He felt it did not lend itself to retail
but would be most appropriate for some other use.
The Acting Director felt there were three alternatives: (1) indicate no expression
of interest; (2) deferral; and (3) proceed with having staff commence negotiations
for a contract for development.
Commissioner Hanks felt the results of the Hwy. 7 corridor study would be
most important to the developer.
It was moved by Commissioner Hanks, seconded by Commissioner Hanks to defer
the matter to the first meeting in June and in the interim complete the study
of the Hwy. 7 corridor. The motion died for lack of a second.
It was moved by Councilmember Meland moved that staff proceed with completion
of the study and at the same time, continue to work with the developer. Council-
member Mitchell seconded.
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The Acting Director was not convinced retail fit on this site; on the other
hand, it is a parcel of land which may never be developed unless the Authority
takes advantage of what might be the right opportunity.
b. Status report: Louisiana Partners project
The Executive Director referenced a letter before the Authority from Louisiana
Ave. Partners indicating they would not be able to obtain a lease with the
anchor tenant for the project without gas pumps.
It was moved by Commissioner Hanks, seconded by Commissioner Meland, to
allow the development to proceed with the gas pumps in that location.
The Acting Director felt pumps should not be allowed at this location with
the Holiday station so close by.
The motion passed 4-1 (Acting Director Strand opposed).
Commissioner Hanks referenced the map in front of the Authority and inquired
about the extent and possible removal of the contamination.
The Executive Director said that had not been addressed at this point.
c. Extension of lease with Wilkins Pontiac
The Executive Di rector reported that there had not been any code vi olat ions
on the Wilkins property. He said an inspection of the property within the
past two weeks revealed some items needing attention. Since the City was
now the property owner, an evaluation from a cost standpoint will have to
Economic Develo pment Authority
April 17 , 1989
be undertaken should any work need to be done.
The Cit y Attorney noted that the le ase is a trip le net le ase whic h means
that to the extent there are necessary repair s/m ain tenance , tho se would
be the financia l obligatio n of the tenant. He felt it im portant to lo ok
at what kinds of repairs make sense giv en the situatio n on that property .
d. Report from Attorney re Oakmont settlement offer
e. Report re On the Avenue project
f. Attorney 's memo re Theros property
Items d, e and f were discussed in executive sessio n.
6. Unfin ished business
a. Turf upgrade at Oak Park Village parkland - The Executiv e Director rem in ded
the Authority that it had approved an undertakin g of turf managem ent at
Oak Park Village subject to reso lu tio n of the geese problem . He be lie ved
the geese problem would be resolved this summer, and this report served
to update the Authority on this matter. No actio n was requir ed .
Item 5f
Commissio ner Meland, in talk ing wit h the City Attorney , felt actio n on the
matter could be taken at this tim e.
It was moved by Commissio ner Meland, seconded by Commis sio ner Hanks, to
approve the settlement on the Theros condemnatio n per the City Attorney 's
recommendatio n.
Commissio ner Hanks wanted the minutes to refle ct that this settlement concerned
a very sma 11 piece of the Th eros property owned by the parents in case there
was some questio n as to why this property was bein g discussed again .
The motion passed 5-0 .
7. New business
a. Turf management projects on ED A property - The Executive Di rector noted
that a green-up project at the Excelsio r Blv d ./Hwy. 10 0 sit e would requir e
a specia l use perm it and a pla n will come to Cit y Council fo r an am endm ent
to the existing special perm it at that sit e . He said staff was suggestin g
the ED A consider placing the management of any major turf im provement project
like the one under discussio n on property under ED A control under a contract
with a qualif ied professio nal. Staff 's recommendatio n revolves around the
drought sit uation in 1988, the fact that fill is availa ble from 1-394 and
the situation with existing staff on projects alr eady committed to .
It was moved by Commissio ner Meland , seconded by Comm is sio ner Duffy , to
authorize the Executive Director to arrange for services to be perform ed
by a qualified contractor and to prepare a contractual arrangem ent with
that contractor for review by the EDA at it s May l meetin g.
The motio n passed 5-0 .
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E c o n o m i c D e v e l o p m e n t A u t h o r i t y m i n u t e s
A p r i l 17 , 19 8 9
8 . C o m m u n i c a t i o n s , B i l l s , V e n d o r c l a i m s
N o n e .
9 . A d j o u r n m e n t
T h e A u t h o r i t y a d j o u r n e d a t 6 :3 0 p .m .
E x e c u t i v e D i r e c t o r
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