HomeMy WebLinkAbout1989/07/24 - ADMIN - Minutes - Economic Development Authority - Regularl
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MINUTES
ECONOMIC DEVELOPMENT AUTHORITY
ST. LOUIS PARK, MINNESOTA
July 24, 1989
l. Call to order
President Duffy called the meeting to order at 8:00 p.m.
2. Roll call
The following members were present at roll call: Bruce Battaglia, Thomas
Duffy, Larry Mitchell, Jane Tschida and Lyle Hanks.
Also present were the Executive Director, City Attorney and Director of.
Community Development.
4. Unfinished business
a. Continuation of public hearing re sale of land at 5665 Hwy. 7 and 5705
W. 35th St. for Cityscape project
Commissioner Mitchell left the chambers at the beginning of this discussion.
) The City Attorney brought the Authority up to date on the past week's
) negotiations with Aetna, lendor for the Cityscape project .
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Aetna will not indemnify the Authority so that if Aetna forecloses and
takes over the property, but doesn't go forward with the project, they
have a duty to protect/indemnify the Authority should it be sued. The
City Attorney said this was a reasonable position and the likelihood of
such a situation arising was remote.
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Aetna had agreed to waive claims they may have against the Authority.
The developer (Can-America) agreed to amend the agreement so that he would
indemnify the City equal to the tax assistance to be received from the
City.
The City Attorney indicated that Aetna's willingness to execute the loan
agreement means, to them, they have no concern re the condition of the
site.
Commissioner Battaglia asked what was the basis for Aetna's reluctance
to indemnify.
The City Attorney responded that this represents more of a general policy
of the company, not reaction to a soil problem. Traditionally, lendors
won't make loans on any properties with problems. Their willingness to
make the loan indicates they perceive no problem on this particular property.
There being no one further wishing to speak, the President closed the
hearing.
It was moved by Commissioner Tschida, seconded by Commissioner Battaglia,
to put off a decision for another week and direct the City Attorney to
continue negotiations with Aetna re indemnification.
The motion failed 2-2 (Commissioners Tschida, Battaglia in favor; Hanks
and Duffy opposed).
It was moved by Commissioner Hanks, seconded by Commissioner Battaglia,
to proceed with the proposal from the developer to indemnify the EDA in
an amount equal to the amount of the annual increment.
Commissioner Hanks thereafter withdrew his motion.
b. Resolution revising budget cost of Hwy. 7 tax increment financing district
- Resolution No. EDA-9
It was moved by Commissioner Battaglia, seconded by Commissioner Hanks
to adopt Resolution EDA-9 entitled "A resolution relating to the modification,-
by revising budgeted costs of the tax increment financing plan for tax
increment financing District No. 85-1, located within the Highway 7 development
district."
The motion passed 4-0.
c. Resolution approving contract for private development and authorizing
its execution - Cityscape project
It was moved by Commissioner Hanks, seconded by Commissioner Battaglia,
to adopt the resolution with the modification in the indemnification clause
stating that the developer would indemnify the EDA in an amount equal
to the annual increment.
Commissioner Tschida said she would oppose the motion. It is her belief
redevelopment of the Hwy. 7 tax increment financing district should be
a total project, not done on a piecemeal basis.
The motion failed 3-1 (Commissioner Tschida opposed).
It was moved by Commissioner Hanks, seconded by Commissioner Battaglia,
that the Authority meet on July 31, 1989 at 7:00 a.m. Should the project
be approved at that time, the developer will have the rest of the day
to finalize documents as July 31 is the deadline for the land purchase
agreement.
The motion passed 4-0.
5. Adjournment
The meeting adjourned at 9:00 p.m. e
Executive Director