HomeMy WebLinkAbout1989/07/17 - ADMIN - Minutes - Economic Development Authority - RegularMINUTES
ECONOMIC DEVELOPMENT AUTHORITY
ST. LOUIS PARK, MINNESOTA
July 17, 1989
l. Call to order
The meeting was called to order at 5:30 p.m. by President Tom Duffy.
2. Ro 11 call
The following commissioners were present at roll call: Keith Meland,
Jane Tschida, Lyle Hanks and Tom Duffy.
Commissioners Allen Friedman and Larry Mitchell arrived shortly thereafter.
Also present were the Executive Director and City Attorney
3. Approval of July 17, 1989 agenda
It was moved by Commissioner Hanks, seconded by Commissioner Meland,
to approve the agenda. The motion passed unanimously.
4. Unfinished business
a. Continuation of public hearing re sale of land at 5665 Hwy. 7 and
5705 W. 35th St. for Cityscape project.
The Executive Director said a verbal status report was expected this
evening coming on the heels of Aetna's concerns as expressed at the July
10 meeting.
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The City Attorney briefly went through the contract to point out a number
of items, not necessarily those items being negotiated. Upon completion
of that review, he discussed the issues under negotiation.
He directed the Authority's attention to Para 3.6, pg. ll. He said an environmental audit has been
done on the site showing the site to be clean except for groundwater contamination emanating fram
the Republic Creosote site. In Para. 3.6 it is stated the redeveloper agrees to indermify, defend
and hold harmless the Authority and City from any claims or actions arising out of the presence
of any hazardous waste, substances, etc. except for the groundwater contamination
resulting from the former operations of the Republic Creosote Company.
Bryan Weber, Can America Realty, said 12 borings had been done all up and down
the site with no evidence of soil contamination.
In answer to a question from Commission Tschida re problems with contamination
in the future, the City Attorney said, of course, there is always a risk. Elements
not considered dangerous today may very well be classified as contanimants
in the future. It was his opinion that for any Authority, if it is going
to be subsidizing projects, some risk is going to be encountered and no lawyer
can assure you any contract totally eliminates such potential risk. He felt
the present risk was manageable, and it was reasonable for the Authority
to take such risk under the circumstances.
ED A minutes
July 17, 19 89
The Cit y Attorn ey referenced the memo befo re the Authorit y relative to the
status of negotiations wit h Aetna. He said a provisio n has been put in the
contract re environmental indemnific atio n which will bind the assigns of
the deve l aper and will survive term ination of the agreement. The l endor has
objected to this . The lendor wants the indemnif ic atio n and waiver to disappear
in the event the l endor fo reclo ses on the mortgage. In other words, if the
lendor takes over the project, they don't want to be in a position of indemnify-
ing the ED A and agreeing to waive any cl aim s against the ED A . The Authorit y
has taken the posit ion that the only way this project is going to be done
is if the lendor does indeed take that position.
He briefly discussed other areas of disagreement in the document.
He noted the areas of current disagreement are typic al of what they often
find in negotiating sim ilar agreements.
The Executive Director asked about a tim eframe in which to conclude this
matter.
Bryan Weber said he was moving towards a July 3l clo sing and the Aetna lo an
officer would not extend that date.
It was moved by Commissio ner Hanks, seconded by Commissio ner Tschid a to continue
the hearing to July 24, 1989 at 8:00 p.m .
The motio n passed 5-0-1 (Commissio ner Mitchell abstained).
6. Adjournment
It was moved by Commissioner Meland, seconded by Commissioner Hanks, that
the meeting be adjourned at 6:00 p.m.
The motion passed 6-0.
Executive Director
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