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MINUTES
ECONOMIC DEVELOPMENT AUTHORITY
ST. LOUIS PARK, MINNESOTA
October 2, 1989
l. Call to order
The meeting was called to order by Vice-president Keith Meland at 5:45 p.m.
2. Ro 11 call
The following commissioners were present at
Keith Meland, Larry Mitchell, Jane Tschida
Friedman arrived at 6:00 p.m.
3. Approval of minutes
roll call: Bruce Battaglia,
and Lyle Hanks. Commissioner
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It was moved by Commissioner Hanks, seconded by Commissioner Tschida, to
approve the minutes of the September 18, 1989 meeting with the following
correction: page 3, para. 5, insert "Meland" after the word "Commissioner."
The motion passed 5-0.
4. Approval of agenda
It was moved by Commissioner Mi tchell, seconded by Commissioner Hanks, to
approve the agenda for October 2, 1989. The motion passed 5-0.
5. Reports
a. Status report: Proposal from Robert Larsen Partners - The Executive Director,
referencing new figures received from the developer, said it appeared the
proposal will have the ability to support City-related costs from the standpoint
of the Hwy. 7 tax increment financing district. He s·aid the Authority is
asked to authorize preparation of a resolution condemning the three properties
and direct staff to continue to negotiate for the purchase of the properties
and secure relocation estimates from a relocation consultant.
Commissioner Tschida asked Kelly Dorn, the developer, about their progress
on developing the surrounding property.
Mr. Dorn said they had talked about his project being the cornerstone for
the redevelopment of the Hwy. 7 corridor and said he was willing to contribute
in any way towards that process. He offered to take the lead in the development
of the Wooddale to Soo Line properties.
A discussion followed re funding for development on Wooddale to the Soo
Line and the impact on fiscal disparities contribution.
Commissioner Battaglia questioned the accuracy of the figures re condemnation
and what guarantees are there the properties won't cost more.
E D A m e e t i n g m i n u t e s
O c t o b e r 2 , 1 9 8 9
P a g e 2
A s t o t h e a c c u r a n c y o f t h e a c q u i s it i o n f i g u r e s , t h e C o m m u n it y D e v e l o p m e n t
D i r e c t o r s a i d t h e f i g u r e s b e f o r e C o u n c i l r e p r e s e n t e d a r a n g e d e r i v e d b y
t h e E D A 's a p p r a i s e r a n d M r . D o r n 's f i g u r e s f a l l in t h e h i g h e n d o f t h a t
r a n g e . I t w a s h i s e x p e r i e n c e o n e c a n e x p e c t t o p a y m o r e w h e n g o i n g t o c o u r t
t o c o n d e m n ; c o n v e r s e l y , t h e o w n e r s u s u a l l y d o e s n 't d o t h a t m u c h b e t t e r w h e n
c o u r t c o s t s a r e c o n s i d e r e d .
C o m m i s s i o n e r M i t c h e l l a s k e d e x a c t l y w h a t w a s it t h e d e v e l o p e r w a s s e e k i n g
t h i s e v e n i n g .
M r . D o r n s a i d t h e t w o is s u e s fo r c o n s i d e r a t i o n w e r e t a x in c r e m e n t f i n a n c i n g
( a t t h e p r o p o s e d l e v e 1 o r a t a r e d u c e d le v e l if the extra increment is not
to be used for other developments cutting the size of the proposed project,
making it site specific) and secondly the authorization of condemnation
hopefully to motivate the sellers to come to a reasonable market value.
Hanks
Commissioner/asked that someone walk the Authority through the steps that
would follow should the condemnation process be approved.
Commissioner Mitchell asked what would happen should it not be approved.
The Director of Community Development said in that event it would not make
any sense for staff to proceed to put a project together. If the request
were approved, the Authority would be acquiring the property assuming agreement
can be reached through negotiation with the developer. Staff would pursue
settlement of other outstanding issues relating to the agreement, for example,
the contamination. Staff would then begin negotiations with the developer.
An amendment to the tax increment district would come back to the Authority
to include the three parcels not now included.
The City Attorney said another way to approach this would be for the Authority
to direct the negotiation of a development agreement which would set forth
the conditions under which the EDA would proceed with condemnation.
Commissioner Mitchell sensed some apprehension in moving ahead on condemnation
at this point and felt the City Attorney's point a good one.
Commissioner Battaglia wondered if the Authority wanted to spend tax increment
dollars to condemn some good, strong and viable businesses in the community.
He was not ready to do that. He felt proceeding with an agreement gave
the message that the Authority was potentially willing to go ahead with
condemnation.
Commissioner Friedman said this area had always been discussed for redevelop-
ment to the best of his recollection. It was his position that nothing
has come about for this property for years and now there is a viable project.
He was concerned about delaying on the proposed project and losing it.
He had concerns about condemnation and/or relocation; however, looking
at a development agreement at this time may open the door.
Vice-president Meland stated he could support the retail development as
proposed but he cannot support condemnation of a going concern(s), nor
would he support the acquisition of property that was contaminated.
Economic Development Authority minutes
October 2, 1989
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MICROFILMED
Mr. Dorn said that none of the properties the developer has asked the City
to get involved with have any hazardous conditions associated with them.
Commissioner Hanks felt the City Attorney's suggestion for a development
agreement was a good one and in such an agreement he would like to see
a limit put on the amount of money the Authority would put into acquisition.
It was moved by Commissioner Hanks, seconded by Commissioner Mitchell to
direct the City Attorney to come up with an agreement and look at the possibil-
ity with Robert Larsen Partners of a limitation on how much the Authority
would put into condemnation costs.
Commissioner Tschida said she would support the motion if a sentence could
be added in the agreement ensuring that some of the tax increment dollars
are used to pl an what is going to be and how the whole area is going to
be integrated.
Commissioner Hanks felt this was a separate issue and did not want to
see it included in the motion.
Commissioner Friedman asked what the parameters of the agreement would
be. He did not see the need fo r the attorney to prepare this when it could
probably be done by staff.
The Cit y Manager said that in the development agreement the parties would
set fo rth what they expect of each other. Al so in such an agreement would
be discussion of conditions under which the Authorit y would get involved
in condemnation.
Commissioner Friedman did not want the City to incur tremendous costs
as happened in a previous development proposal.
The motion passed 4-2 (Commissioners Meland and Battaglia opposed).
6. Unfinished business
a. Hennepin County Regional Railroad Authority - Resolution EDA-l3 - Resolut-
ion requesting the HCRRA to sell property to the EDA
It was moved by Commissioner Hanks, seconded by
to adopt Resolution EDA-13 entitled "Resolution
of a parcel of land for redevelopment purposes."
The motion passed 6-0.
7. New business
Commissioner Tschida,
requesting conveyance
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None
8. Communications and bills
a. Financial report - It was moved by Commissioner Hanks, seconded by
Commissioner Mitchell, to receive for filing. The motion passed 6-0.
Economic Development Authority minutes
October 2, 1989
Page 4
b. Cla im s - It was moved by Commissio ner Hanks, seconded by Comm is sio ner
Mitchell, to approve and authoriz e payment.
The motion passed 6-0 .
The Authority moved into a clo sed meeting to discuss matters of lit ig atio n .
9. Adjournment
Upon return ing to chambers, it was moved by Commissioner Hanks, seconded
by Commissioner Mitchell, to adjourn at 7:27 p.m.
Executive