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HomeMy WebLinkAbout1989/06/05 - ADMIN - Minutes - Economic Development Authority - Regularn J MINUTES ECONOMIC DEVELOPMENT AUTHORITY ST. LOUIS PARK, MINNESOTA June 5, 1989 l. Call to Order Vice-president Meland called the meeting to order at 6:05 p.m. 2. Roll Call ' ) J I ? The following commissioners were present at roll call: Allen Friedman, Lyle Hanks, Keith Meland, Jane Tschida. Also present were the Executive Director, City Attorney and Director of Community Development. 3. Approval of May l and May 22, 1989 minutes It was moved by Commissioner Hanks, seconded by Commissioner Tschida, to approve the minutes of the May l and May 22, 1989 meetings. The motion passed 4-0. 4. Approval of Agenda It was moved by Commissioner Friedman, seconded by Commissioner Hanks, to approve the June 5, 1989 agenda. The motion passed 4-0. 5. Reports a. Highway 7 Tax Increment Finance District The Executive Director stated that the EDA had directed staff to prepare a report that framed a pl an for the area between Wooddale and Monitor along Hwy. 7. The recommendation in staff's report was that some combination of uses consisting of office/showroom/warehouse, or office/warehouse or even light industrial appear to be the most desirable and feasible for the sites. Even though staff suggests other than a retail use for the two parcels, the reality is that an unsolicited proposal for retail use on the Soo Line tracks to Monitor has been received. It was moved by Commissioner Hanks, seconded by Commissioner Friedman, to defer action on item 5a until item 5b, Robert Larsen Partners, is discussed. 5b. Proposal from Robert Larsen Partners Kelly Dorn, Robert Larsen Partners, gave a brief description of what they are proposing for the parcel currently occupied by Golden Auto Parts/Taracorp site. -]- ED A m i n u t e s J u n e 5 , 1 9 8 9 R e l a t i v e t o t h e c o n t a m i n a t i o n o f s o i l o n t h e s it e , M r . D o r n s a i d it w o u l d r e m a i n , b e i n g c a p p e d b y t h e r e t a i l c e n t e r a n d p a r k i n g lo t . B o b B o n n e t , o n e o f t h e o w n e r s o f K e n n e l -A i r e , a d d r e s s e d t h e A u t h o r i t y . H e e x p r e s s e d h i s o p p o s it i o n t o a n y d e v e l o p m e n t o n t h i s s it e w h i c h w o u l d r e q u i r e t h e t a k i n g o f h i s p r o p e r t y . H e s a i ct over the years they have built up a small but steadily growing business and have invested a goodly amount of money in bringing the facility up to code. Along with all those improvements, they purchased land from NSP to provide for adequate parking for their customers. He was in sympathy with the Authority's problems with land that is an environ- mental hazard, but he wanted the Authority aware of his position as well. Commissioner Tschida asked if a study had been done on how this proposal would impact Knollwood. The Executive Director said the Authority had received information from the developer relative to the impact of their proposal on three shopping centers: Knollwood, Miracle Mile and Knollwood Village. He paraphrased from the developer's letter, noting that the information had not been verified. Basically, any vacancies in any of the three centers could not accommodate the tenants which have expressed interest in the proposed center. The Director of Community Development said that staff had asked Robert Larsen for funds to conduct a more comprehensive study of the impact on the market, i.e. have the McComb Group do a study. The letter from which the Executive Director read was Larsen's response to the request for funding. Commissioner Friedman reiterated his concerns of what happens to established business and apartments when there is new construction -- there is a tendency to move to the new construction. He preferred a more guarded, conservation approach to new development and greater attention to planning. Commissioner Hanks reminded the Authority that he had made the original motion that in no way would the City accept any liaibility for costs put into the project by Robert Larsen Partners because of the contamination. He has concerns that office/warehouse was also being overbuilt and that that concept was about the only viable development on the tracks east to Wooddale property. He 'd] ike to see the Authority seek proposals for development on the east parcel and, at the same time, start a study on what would be best for both sites and defer the item for a month, not rejecting the Larsen proposal. Commissioner Friedman wondered why proposals would be sought only for the eastern property. He thought there might be developers who would put together a bigger package even though the sites are separated by the tracks. He said Larsen Partners were asking for significant involvement on the part of the City in re condemnation. He felt,if a developer was asking for something, then they had to go along with/Ci'ty and he was not in favor of having total cooperation from the City but not from the developer. Vice-president Meland said that the City Council had consistently - in his experience - turned down proposals from retailers for assistance in the form of industrial revenue bonds and tax increment assistance. He was not aware of support asked by Knollwood or Knollwood Village and suspected that Mi rac le Mile did not request it either. He would not be able to support a proposal from a developer planning a retail development who requested assistance from the City in acquiring land. -2- ED A m i n u t e s J u n e 5 , 1989 < CR0FILMED ) I Mr. Dorn said Larsen Partners would not require any indemnification from the City with regard to the property. Further, in an effort to appease the concern about competing projects, they would agree not to lease to any tenant that currently has a store in St. Louis Park unless it were a second store. Commissioner Tschida expressed her concerns that what is being talked about seems a bit premature from an overall comprehensive planning aspect. It appeared to her that the City was being led rather than leading. It was moved by Commissioner Hanks, seconded by Commissioner Friedman, to defer any discussion on this project to the July meeting of the EDA and commence a study on the feasibility of the different ideas staff has for both pieces of property as to their effect on the City. Commissioner Friedman clarified that the study referred to in the motion was the McComb study. I t C · · Hank 'ts. t l . . t l f b th t n response .o ommissioner / iiio ion .0 so ici prop0sa s or o proper ies, Commissioner Friedman was reluctant to support that, feeling the study might show something the Authority might not want to do that might come in as a proposal and he didn't want to mislead anyone. was Commissioner Hanks /concerned about putting Larsen Partners off any longer than necessary, because they were now here with a concrete proposal. y Commissioner Friedman suggested amending the motion to reflect that staff ) moved ahead with the first part of the study and include the second part of the study but that the second part should not delay the study on retail J in any way. The motion passed 4-0. There was discussion about the July 3 meeting date and who would be in attendance. It was moved by Commissioner Hanks, seconded by Commissioner Tschida, to hold the EDA meeting on July 10, 1989. The motion passed 4-0. 5c. Can America l eh Referencing the memo before the Authority in which Can America was requesting a meeting on June 19 at 7: 00 to review the purchase agreement, Cammi ss i oner Friedman asked what all of this meant. The Di rector of Community Development said the reason for the meeting was that title to the property will pass through the EDA which is necessary in order for the Authority to demonstrate that it is causing the redevelopment to occur. This needs to be accomplished in order to collect tax increments from the site. Commissioner Friedman did not recall the project being approved. The Director said the Authority has not approved an agreement that requires it to convey the property to the developer. The Director said that the meeting was being called to discuss the terms -3- ED A m i n u t e s J u n e 5 , 1 9 8 9 u n d e r w h i c h t h e A u t h o r i t y w o u l d a c q u i r e a n d c o n v e y t h e p r o p e r t y t o t h e d e v e l o p e r . C o m m i s s i o n e r F r i e d m a n w a s c o n c e r n e d t h a t n o a g r e e m e n t w a s b e f o r e t h e A u t h o r i t y a n d h e w a s b a s i c a l l y u n c o m fo r t a b l e w it h t h e w h o l e p r o j e c t w h i c h h e d i d n o t f e e l w a s i n t h e b e s t i n t e r e s t s o f t h e C i t y . B r i a n W e b e r , r e p r e s e n t i n g C a n A m e r i c a , s a i d h e h a d r e c e i v e d t h e p u r c h a s e a g r e e m e n t t h a t d a y a n d t h e p a p e r s o n t h e f i n a n c i a 1 c o m m i t m e n t o f A e t n a w i l l b e i n h i s o f f i c e o n W e d n e s d a y . C o u n c i l m e m b e r F r i e d m a n a s k e d w h a t t h e C i t y 's c o m m i t m e n t w a s . T h e D i r e c t o r r e s p o n d e d t h a t t h e c o m m i t m e n t e s s e n t i a l l y i s t o m a k e p a y m e n t s t o t h e d e v e l o p e r i n a m o u n t e q u a l t o l /2 of the taxes not to exceed $800 per unit per year for a seven year period. The City Attorney further clarified that there was no financial risk to the EDA. If the project is built and generates tax revenue, a certain portion is essentially pledged to the lendor for purposes of amortizing the loan. If the project does not get built, the EDA would have no obligation and would have no money in it. The only investment the EDA has is attorney's fees and staff time, and it was his understanding Mr. Weber was picking up the attorney's fees. It was moved by Commissioner Hanks to set a meeting for 7:00 p.m. on June 19 and that staff· be directed to advertise a public hearing for the July 1989 EDA meeting. The motion failed for lack of a second. Councilmember Friedman remained unclear as to whether or not this was a vi ab 1 e project for the City and questioned why no study had been done such as has been directed for the proposed retail development. He pointed out that people are a 1 ready moving out of Newport on Seven and into newer apartments being bu i 1 t. Commissioner Hanks repeated his previous motion, which was seconded by Commis- sioner Friedman and passed 4-0. Commissioner Friedman noted he remained opposed to the project but wanted the entire Authority to vote on it, not just four members. ct. On the Avenue filling, grading and seeding program Vice-president Meland said constituents had asked if any flowers would be planted. The Executive Director said that for the present only grass was planned. Commissioner Friedman asked what were the costs to date to the EDA. The Executive Director responded approximately $3,700. It was the consensus that item 5e be considered after the City Council meeting. 6. May 31, 1989 financial statement It was moved by Commissioner Hanks, seconded by Commissioner Friedman, to receive the financial statement for filing. The motion passed 4-0. -4- [ ED A minutes June 5, 1989 7. Claims Commissioner Friedman asked and consultant services. for a breakdown on legal services, salaries It was moved by Commissioner Hanks, seconded by Commissioner Tschida, to approve and authorize payment. The motion passed 4-0. 8. Other business - None. The Authorize recessed for the regularly scheduled City Council meeting. At 10:05 the Authority returned to Chambers. It was moved by Commissioner Hanks, seconded by Commissioner Friedman, to extend the standstill agreement with the developer of the On the Avenue project to July 12, 1989. The motion passed 4-0. 9. Adjournment The EDA meeting adjourned at 10:06 p.m. 1 w . OD } Executive Director > I \/ -5-