HomeMy WebLinkAbout1989/05/01 - ADMIN - Minutes - Economic Development Authority - Regular5
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MINUTES
ECONOMIC DEVELOPMENT AUTHORITY
ST. LOUIS PARK, MINNESOTA
May 1, 1989
l. Call to order
The meeting was called to order by President Tom Duffy at 6:00 p.m.
2. Roll call
The following Commissioners were present at roll call: Bruce Battaglia, Allen
Friedman, Lyle Hanks and Tom Duffy.
3. Approval of minutes of April 17, 1989 meeting
It was moved by Commissioner Hanks, seconded by Commissioner Friedman, to approve
the minutes of the April 17, 1989 minutes. The motion passed 4-0.
4. Approval of agenda for May l, 1989 meeting
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It was moved by Commissioner Battaglia, seconded by Commissioner Hanks, to approve
the agenda for May l, 1989. The motion passed 4-0.
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5. Reports
a. Update: Management of turf improvements at EDA sites
The President referenced staff's report in front of the Authority. There being
no questions or comments, no action was deemed necessary.
b. Update: Can America project
President Duffy said Brian Weber was present representing Can America. He presented
a brief update on the progress of the development. He reported that in March
one of their financing sources came back with available money which will make
the project work. He al so had renegotiated a land option with the landowners.
He said they were hoping for a July l, 1989 close at which time they expected
to demolish the grain elevators. He was asking for the Authority's reaffirmation
of the terms of the previous development agreement with two caveats: cost of
demolition has increased slightly as well as the cost of financing which has
increased significantly since October.
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Commissioner Friedman asked what was the status of these sorts of proposals
coming to the EDA, then seem to fade and then are resurrected. He wondered what
the legal implications were.
The City Attorney responded that in the present instance there is no contract
between Can America and the EDA. A resolution was passed at one point which
he rec al led generally supported what Mr. Weber had just outlined. He said the
resolution did not bind the Authority. The only thing that would bind the Authority
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Economic Development Authority
M a y l , 1989
w o u l d be a contract it entered into wit h Can America. He said the Authorit y
w a s f r e e t o m a k e w h a t e v e r e l e c t i o n it p l e a s e d w i t h r e s p e c t t o t h i s p r o j e ct.
H e f e lt M r . W e b e r w a s lo o k i n g t o f i n d o u t w h e t h e r o r n o t t h e A u t h o r it y w i s h e s
t o g o fo r w a r d w i t h t h e p r o j e c t a s a n a p p l ic a t i o n f e e o n t h i s p r o j e c t is p r o b a b ly
fo rf e i t a b l e .
C o m m i s s i o n e r F r i e d m a n a s k e d if t h e A u t h o r i t y d i d n o t h i n g t h i s e v e n i n g , w h a t
w a s t h e s t a t u s .
T h e C it y A t t o r n e y r e s p o n d e d t h a t if n o t h i n g i s d o n e t h i s e v e n i n g , t h e s t a t u s
i s t h a t a r e s o l u t i o n w a s p a s s e d s e v e r a l m o n t h s a g o s u p p o r t i n g t h e p r o j e c t , b u t
s i n c e n o c o n t r a c t h a s b e e n e n t e r e d in t o , t h e A u t h o r i t y h a s n o le g a l o b l i g a -
t i o n t o p r o c e e d w i t h t h e p r o j e c t .
C o m m i s s i o n e r F r i e d m a n a s k e d t h e s t a t u s o f t h e t a x i n c r e m e n t d i s t r i c t , d i d it
s t a y in e x i s t e n c e f o r e v e r .
T h e C it y A t t o rn e y s a i d it w a s p r e s e n t l y in e x i s t e n c e , b u t t h a t t h e r e i s a l i m it e d
lif e t o it. T h e D i s t r i c t w a s n o t a ff e c t e d b y w h e t h e r t h e A u t h o r it y w e n t fo r w a r d
w i t h t h i s t r a n s a c t i o n .
C o u n c i l m e m b e r F r i e d m a n s a i d
a s t o w h e t h e r o r n o t S t .
w it h o u t s e r i o u s l y im p a i r i n g
le s s t h a n s t a n d a r d .
o v e r t h e in t e r i m h e h a s r e d i r e c t e d h i s t h i n k i n g
L o u i s P a r k c a n s u s t a i n a d d i t i o n a l n e w r e n t a l u n i t s
t h e e x i s t i n g u n it s a n d t h e r e fo r e m a k i n g t h e l a t t e r
C o m m i s s i o n e r s B a t t a g l i a a n d D u f f y s t a t e d t h e y r e m a i n e d i n s u p p o r t o f t h e C a n
A m e r i c a p r o j e c t .
C o m m i s s i o n e r H a n k s a s k e d if t h e r e b a t e o n t h e t a x in c r e m e n t w o u l d b e 5 0 %
a n d if i t w e r e f o r e i g h t y e a r s . M r . W e b e r s a i d it w a s a s e v e n -y e a r c o m m i t m e n t
s t a r t i n g w it h t h e f i r s t y e a r t h e p r o j e c t p a i d it s f i r s t f u l l y e a r o f t a x e s .
C o m m i s s i o n e r H a n k s a s k e d a b o u t t h e in c r e a s e in r e m o v i n g t h e g r a i n e l e v a t o r s . M r .
W e b e r s a i d t h a t in s t e a d o f le a v i n g s o m e o f t h e fo o t i n g s , a l l w e r e n o w t o b e
r e m o v e d , t h u s a d d i n g t o t h e c o s t. H o w e v e r , h e s a i d t h e p r o j e c t c o u l d b e a r t h e
in c r e m e n t a l c o s t in c r e a s e s . F i n a l l y , C o m m i s s i o n e r H a n k s a l l u d e d t o c o n s t r u c t i o n
o f a r o a d o n t h e c u r r e n t s e r v i c e r o a d . H e a s k e d M r . W e b e r if it w a s t h e d e v e l o p e r 's
in t e n t t o c o n s t r u c t t h a t r o a d . M r . W e b e r s a i d it w a s i n t h e i r c o n s t r u c t i o n
p l a n s .
c . U p d a t e : R o b e r t L a r s e n P a r t n e r s p r o j e c t
P r e s i d e n t D u f f y n o t e d a l l C o m m i s s i o n e r s h a d r e c e i v e d a b r o c h u r e o n t h a t f i r m 's
p r o j e c t s .
C o m m i s s i o n e r B a t t a g l i a a s k e d w h a t w a s t h e A u t h o r i t y 's o b l i g a t i o n if t h e y p r o c e e d e d
w i t h t h e d e v e l o p m e n t .
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 y w e r e o n l y o b l i g a t e d t o c o n s i d e r w h a t s t a f f
a n d R o b e r t L a r s e n P a r t n e r s m i g h t b r i n g b a c k t o t h e A u t h o r it y . It w a s h i s o p i n i o n
t h a t a f t e r t h e la s t ED A m e e t i n g , R o b e r t L a r s e n P a r t n e r s f e lt m o r e p o s it i v e l y
t h a n n e g a t i v e l y t h a t t h e r e w a s h o p e t h e p r o j e c t w o u l d m o v e f o r w a r d .
C o m m i s s i o n e r B a t t a g l i a , w h o w a s n o t p r e s e n t a t t h e la s t E D A m e e t i n g , w a n t e d
t h e m i n u t e s t o r e f l e c t t h a t h e h a d s i g n i f i c a n t r e s e r v a t i o n s a b o u t t h e d e v e l o p m e n t .
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E c o n o m ic D e v e lo p m en t A u t h o r it y
M a y 1, 19 8 9
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Commissioner Hanks recalled at the last EDA meeting a decision was reached
that Robert Larsen Partners proceed with their plans while simultaneously the
City would continue it s Hwy. 7 corridor study and the impact of the project
on it. He did not think the point had arrived where the developer would be
seeking zoning approval and thus referred to the Planning Commission. He did
not think that was the intent of the EDA's action.
The Execut ive D i rec tor f e lt t he deve l ope r was go i n g to t he P l an n i n g Comm issi on
by their own initiative. He said if they have an interest in the property,
they can file for a hearing before the Planning Commission, with or without
approval of the EDA.
It was President Duffy's recollection that at the last EDA meeting, the concept
of a shopping center was approved. Details such as ingress/egress, landscaping,
fencing, and other site details were not discussed to any lengthy degree.
Commissioner Friedman said he would not like to lead the developer on and then
down the road deny their project. He alluded to the portion of the memo which
addressed drawing up of a development contract drafted by the City's attorney
but paid for by the developer.
It was moved by Commissioner Hanks, seconded by Commissioner Friedman, that
EDA has not given Robert Larsen Partners carte blanche to proceed with its
development.
Te motion passed 4-0.
' d. Robert Larsen Partners: Memo from attorney
It was moved by Commissioner Hanks, seconded by Commissioner Battaglia, that
the EDA attorney be authorized to continue to represent the EDA.
It was the consensus of the Authority that should events change relative to
Mr. Steilen's representation that the Authority would be so notified.
The motion passed 4-0.
Se. Status report: St. Louis Centre Partners/On the Avenue project
6. Unfinished business
a. Closed meeting: Cherne condemnation settlement
It was moved by Commissioner Friedman, seconded by Commissioner Battaglia to
recess for an executive session to discuss i terns Se and 6a and to reconvene
thereafter to conclude the Authority's business.
The motion passed 4-0.
7. New business
,, Resolutions designating depositories for_EDA funds - Resolutions EDA-? thru EDA-8
It was moved by Commissioner Hanis, s&curded by Comet.+ssioner Battaglia, to
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Economic Development Authority
May 1, 1989
approve Resolutions EDA 2-EDA 8 specifying the following depositories for Authority
f u n d s : Marquette Bank of Minneapolis; Park National Bank of St. Louis Park;
C it i z e n s S t a t e B a n k o f S t. L o u i s P a r k ; S h e l a r d N a t i o n a l B a n k o f S t. L o u i s P a r k ;
D a i n B o s w o r t h I n c . o f M i n n e a p o l i s ; P a i n e W e b b e r I n c . o f M i n n e a p o l i s ; a n d F e d e r a t e d
S e c u r i t i e s T r u s t f o r S h o r t T e r m U .S . G o v e r n m e n t S e c u r i t i e s o f B o s t o n , M a s s .
T h e m o t i o n p a s s e d 4 -0 .
8 . C o m m u n i c a t i o n s a n d b i l l s
a . A p r i l 2 7 , 1 9 8 9 f i n a n c i a l r e p o r t
I t w a s m o v e d 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 B a t t a g l i a , t o
a p p r o v e t h e f i n a n c i a l r e p o r t a n d c l a i m s .
T h e m o t i o n p a s s e d 4 -0 .
9 . A d j o u rn m e n t
I t w a s m o v e d 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 B a t t a g l i a , t o
a d j o u r n a t 7 :0 0 p .m .
T h e m o t i o n p a s s e d 4 -0 .
E x e c u t i v e D i r e c t o r
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