HomeMy WebLinkAbout1989/08/07 - ADMIN - Minutes - Economic Development Authority - Regular~
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MINUTES
ECONOMIC DEVELOPMENT AUTHORITY
ST. LOUIS PARK, MINNESOTA
August 7, 1989
l. Call to order
President Duffy called the meeting Lo order at 6:00 p.m.
2. Roll call
MICROFILMED
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The following commissioners were present at roll call: Bruce Battaglia,
Tom Duffy, Allen Friedman, Keith Meland and Lyle Hanks.
Commissioners Larry Mitchell and Jane Tschida arrived within ten minutes.
Also present were the Executive Director and City Attorney.
3. Approval of minutes
July 10, 1989 - It was moved by Commissioner Meland, seconded by Commissioner
Battaglia to approve the minutes with the following correction: Page l,
fourth line from the bottom, insert "not" in front of the word taking. The
motion passed unanimously.
July 17, 1989 - It was moved by Commissioner Hanks, seconded by Commissioner
Mel and,,to approve the minutes. The motion passed unanimously.Camissioner Battaglia abstained..
July 24, 1989 - It was moved by Commissioner Battaglia, seconded by Commissioner
Meland, to approve the minutes. The motion passed unanimously. (Commissioners
Friedman and Meland abstained).
July 31, 1989 - It was moved by Commissioner Meland, seconded by Commissioner
Battaglia to approve the minutes. The motion passed unanimously.(Commissioners
Friedman, Mitchell and Tschida abstained).
4. Approval of agenda for August 7, 1989
It was moved by Commissioner Meland, seconded by Commissioner Battaglia,
to approve the agenda for August 7, 1989 with the removal to item 5b to
8c. The motion passed unanimously.
5. Reports
a. Status report from Robert Larsen Partners re land acquisition efforts.
Kelly Doran, Robert Larsen Partners, presented an update of their efforts
to purchase the properties located on their proposed redevelopment site. He
stated the developer was prepared to pay the EDA $20,000 for costs involved
for a zoning text amendment which would reduce the amount of off-street
parking in lieu of rezoning the <ite to PUD.
He said two of the properties were prepared to sell at the offered price;
however, agreement with Kennel Aire has not yet been reached. He suggested
an independent third party appraiser be hired to establish the value of
that property.
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ED A m in u te s
Aug u s t 7, 19 8 9
His co n ce r n w a s th a t at th is po in t a de f in it iv e nu m b e r ha s no t be e n re a c h e d
w it h Ke n n e l A ir e , an d w it h o u t th e C it y ex e r c is in g it s p o w e r o f em in e n t d o m a in ,
th e ne g o tia t in g pr o ce s s w ill ju s t go on an d on wh ic h w il l je o p a r d iz e th e
pro je c t. He sa id th a t it w a s his o p in io n th e pr ic e o n all th r e e p r o p e r t ie s
was hig h an d if purchased at those figures, there potentially would
be less tax increment monies that could be used for other development projects.
In response to a question from President Duffy re enactment of eminent domain
and sale to the developer relative to indemnification, the City Attorney
said he would have to research federal and state statutes as well as nuisance
law.
Commissioner Hanks questioned using all the tax increment financing for
this project with the otherside of the railroad tracks yet to be developed.
On the other hand, he would not want to short change any of the businesses
on the proposed development site.
Mr. Doran was looking for the EDA to at least express its willingness to
condemn the properties subject It review of the appraisals and legal review.
Commissioner Battaglia said he would oppose condemnation of businesses doing
$1.6 million in order to redevelop property with a use he found highly question-
able.
Trygve Pederson, Kennel Aire, addressed the Authority. He questioned the
efforts of the developer to reach an agreement with them. He said he had
received nothing concrete from the developer re an offer. He said the developer was
pressuring the EDA for condemnation because Kennel Aire was uncooperative,
and that was untrue. He said the asking price of $685,000 as noted in Larsen's
letter was not a figure they got from Kennel Aire as there has been no talk
about price. He said that in March, totally unsolicited and as a surprise
to him, he received in the mail a purchase agreement with no cover letter
or explanation and he threw it away. He recalled the purchase agreement
had come from Sherman Malkerson, the developer's realtor.
Commissioner Friedman asked if there had been any discussion about Kennel
Aire occupying space in the developer's proposed building. Mr. Pederson
said that was brought up in an informal conversation about possibilities
for Kennel Aire but that he had not given it any further thought. He said
his partner had expressed an interest.
Commissioner Friedman said it appeared Kennel Aire had had contact from
the developer re purchase, had discussed the potential of relocation into
the developer's proposed building.
Mr. Doran noted Kennel Aire was not willing to discuss the purchase price
for their property until they were provided with more information relative
to the values of the other two parcels. He said Mr. Malkerson did supply
that information to them. He said he had promised Kennel Aire it could remain
in place until completion of the shopping center at which time they were
welcome to relocate there.
In answer to a question from President Duffy, Mr. Doran said if the Kennel
Aire building were left in place, one anchor tenant would not sign a lease
and would reduce the project overall by some 45,000 ft.
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3 R O F L M E D
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EDA minutes
August 7, 1989
Executive Director Dixon asked Lhe Authority if it were at the point to
raise the threat of condemnation. He thought the attorney's suggestion to
get appraisals and not take action on condemnation this evening had merit.
It was moved by Commissioner Hanks, seconded by Commissioner Friedman, that
appraisals be obtained on the three properties and that that information
be brought back to the Authority at its Sept. 5, 1989 meeting along with
a resolution of condemnation for consideration should the dilemma not be
resolved.
Commissioner Friedman was distressed that the developer was not more aggressive
in pursuing negotiations with Kennel Aire. He felt it would be beneficial,
in terms of his vote, that the developer and Kennel Aire sit down and pursue
negotiations. He strongly recommended they get together instead of exchanging
paper via the mails.
Commissioner Hanks included in his motion the payment of $20,000 by the
developer to the Authority in non-refundable funds to pay for the costs
incurred prior to closing. This was agreeable to Commissioner Friedman.
Commissioner Battaglia thought the Authority should think about the issue
of going forward on this project, is additional redevelopment east of the
tracks being jeopardized.
l Commissioner Mitchell agreed saying his major concern was the property to
) the east. However, he felt a decision on that could not be made at this
r point without more information re the appraisals.
Commissioner Meland said he would oppose because of misgivings about the
timing of threatened eminent domain proceedings. As he stated previously,
he was not prepared to back this project fully with tax increment and that
it would have to be looked at as part of an effort of the market. He still
has not seen that.
The motion passed 4-3 (Commissioners Battaglia, Meland, Tschida opposed).
6. Unfinished business
None.
a. Resolution approving 1989 and 1990 EDA budgets - Resolution EDA-11
It was moved by Commissioner Hanks, seconded by Commissioner Meland, to
approve Resolution EDA-11 entitled "Resolution approving the 1989 and 1990
Economic Development Authority budget."
The motion passed 7-0.
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b. Financial arrangements re Cherne land acquisition
It was moved by Commissioner Hanks, seconded by Commissioner Friedman, to
approve the agreement on financial arrangements re the Cherne land acquisition.
The motion passed 7-0.
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ED A minutes
August 7, 1989
c . Joint powers agreement - Declaration of Trust - Resolution EDA-12
C o m m i s s i o n e r F r i e d m a n h a s s o m e q u e s t i o n s : w h o m a n a g e s t h e f u n d ? w h a t are
t h e a v e r a g e y i e l d s ? h o w m a n y y e a r s h a v e t h e s e f u n d s b e e n a v a i l a b l e ? w h a t
s o r t o f t r a c k r e c o r d d o e s t h e f u n d h a v e ?
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 a n s w e r s w o u l d b e p r o v i d e d .
It w a s m o v e d b y C o m m i s s i o n e r T s c h i d a , 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 o p t R e s o l u t i o n E D A -l 2 e n t i t l e d "A r e s o l u t i o n a u t h o r i z i n g e n t r y in t o
a j o i n t p o w e r s a g r e e m e n t i n t h e f o r m o f a d e c l a r a t i o n o f t r u s t e s t a b l i s h i n g
a n e n t it y k n o w n a s "M i n n e s o t a M o n e y M a r k e t F u n d " a n d a u t h o r i z i n g p a r t i c i p a t i o n
in c e r t a i n in v e s t m e n t p r o g r a m s in c o n n e c t i o n t h e r e w it h ."
T h e m o t i o n p a s s e d 6 -l (C o m m i s s i o n e r F r i e d m a n o p p o s e d ).
C o m m i s s i o n e r M e l a n d a s k e d if t h e in v e s t m e n t s w e r e c o l l a t e r a l i z e d t h e s a m e
a s o t h e r C it y in v e s t m e n t s . H e n o t e d t h a t w a s a r e q u i r e m e n t o f t h e C h a r t e r ,
a n d e v e n t h o u g h t h e E D A i s n o t t h e C i t y C o u n c i l , C h a r t e r p r o v i s i o n s m a y
s t i l l a f f e c t in v e s t m e n t s .
T h e E x e c u t i v e D i r e c t o r s a i d h e w o u l d s e e k t h a t a n s w e r f r o m t h e F i n a n c e D i r e c t o r .
T h e m o t i o n p a s s e d 6 -1 (C o m m i s s i o n e r F r i e d m a n o p p o s e d ).
8 . C o m m u n i c a t i o n s a n d b i l l s
a . C l a i m s
It was moved by Commissioner Meland, seconded by Commissioner Tschida, to
approve and authorize payment.
The motion passed 7-0.
b. July 31, 1989 financial statement
It was moved by Commissioner Meland, seconded by Commissioner Mitchell,
to receive the statement for filing.
The motion passed 7-0.
9. Adjournment
The meeting adjourned at 6:58 p.m.
Executive Director
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