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HomeMy WebLinkAbout1990/01/02 - ADMIN - Minutes - Economic Development Authority - RegularMICROFILMED MINUTES ECONOMIC DEVELOPMENT AUTHORITY ST. LOUIS PARK, MINNESOTA January 2, 1990 1. Call to Order l ) j President Keith Meland called the meeting to order at 6:30 p.m. 2. Ro 11 Ca 11 The following Commissioners were present at roll call: Bruce Battaglia, George Haun, Allen Friedman, Jane Tschida and Keith Meland. 3. Approval of minutes of December 4, 1989 meeting It was moved by Commissioner Friedman, seconded by Commissioner Haun, to approve the minutes. The motion passed 4-0-1 (Commissioner Battaglia abstained). 4. Approval of agenda for January 2, 1990 It was moved by Commissioner Tschida, seconded by Commissioner Friedman, to approve the agenda with the following addition: Minnesota Industrial Development Association membership. The motion passed 5-0. 5. Reports a. Status report: Robert Larsen Partners The Executive Director gave the Authority a brief update on a meeting held between staff and the developer that day. He said the recommendation in staff's report to modify the proposed contract to increase the purchase price being paid by the deve 1 aper for the 1 and being conveyed by the ED A to $495,000, if favorably acted upon by the Authority, would be acceptable to the redeveloper. Councilmember Friedman asked what was the current status of this project. The Executive Director responded that on Jan. 8 the Authority has a specially called public hearing to consider conveyance of land to the redeveloper. The Di rector of Communit y Deve 1 opment said that based on the outcome of the hearing he would expect the Authority to enter into an agreement with the developer who would then seek a financing commitment - one of the more significant factors before the Authority proceeds with condemnation of the three properties. After financing is secured and other preconditions met, the Authority would proceed with condemnation. The properties referred to were Kennel-Aire, Lacosse Hector property and Tennenbaum Worth property. Commissioner Friedman wanted it made clear that the Authority was going to consider the possibility of condemnation of those properties. Nothing is being conveyed, nothing is being condemned until such ti me as an agreement is forthcoming along wit h financing guaranteed. He said he did not want EDA minutes Jan. 2, 1990 2. to come to another meeting and hear another set of figures tossed around. Commissioner Battaglia asked if financing of the project was not a key issue - does the Authority have to borrow, bond, or whatever. The Community Development Director said a cash flow analysis has been done for the District, and unless some projects are initiated elsewhere in the Hwy. 7 TIO, there will be no need to borrow as sufficient funds within the Hwy. 7 TIO exist relative to the structure of the agreement at the present time. Commissioner Battaglia asked if the agreement was with Kennel-Aire or not. The Director said the agreement includes Kennel-Aire. Commissioner Haun wanted the record to show that at this point there is not agreement on conveyance of any of the three parcels under consideration. Kelly Doran, Robert Larsen Partners, addressed the Authority. In answer to Commissioner Friedman's comments, he said the numbers before the Authority were good numbers, that they were the numbers the Authority would. work with. With regard to Kennel-Aire, he said theypreferred the building were not there, but could probably live with the building remaining if it were architecturally incorporated into the project. It was moved by Commissioner Haun, seconded by Commissioner Friedman, to direct staff to return to the Authority with two alternatives: (1) an agreement using all three pieces of property; and (2) an agreement excluding Kennel-Aire, the document to show the difference between tax increment financing with and without condemnation. President Me 1 and asked Commissioner Haun if he wanted staff's recommendation included, i.e. direct staff to modify the contract to increase the purchase price being paid by the developer for the land being conveyed to the EDA by $495,000. That was agreeable to Commissioner Haun. Len Thiel, representing Kennel-Aire, addressed the Authority. He wanted the record to show that Kennel-Aire desires to remain at its present site. He said his client was willing to dress up the building, but was not clear on what the developer had in mind nor what the Authority expects. The motion passed 4-] (Commissioner Battaglia opposed). b. Lease extension: Wilkins Pontiac The Executive Director said staff was seeking the Authority's direction on the six points outlined in staff's report: Duration of lease (suggested 3 years); Escape clause notice provisions for Wilkins and EDA (suggested 120 days); Rent (suggested 4.7% over the former base rent); the EDA to receive environmental indemnification from Wilkins; Automatic lease termination if and when the lien placed on the property by settlement with St. Louis Centre Partners becomes due and payable; and direct the Authority to include a waiver of going concern claim. It was moved by Commissioner Battaglia, seconded by Commissioner Haun to accept the six points as presented with the exception of using a starting point of $12,000/mo for the lease. ) MICROFILMED r5 I 1 ) The motion passed 5-0. 6. Unfinished business None 7. New business a. Highway 7 design guidelines Commissioner Tschida asked if the proposed design guidelines encompassed all of the Highway 7 corridor or just that area fronting the proposed Robert Larsen project. The Director said they would apply to any parcel of land in the Highway 7 development district upon which the Authority is requested to provide assistance, i.e. of a financial nature. Commissioner Tschida agreed with the proposed guidelines but asked for a more in depth plan including a plan to address the present properties such as the junior high, the Dayton Rogers and McGarvey properties. It was moved by Cammi ss i oner Friedman, seconded by Cammi ssioner Battaglia, to defer the item to Feb. 5, 1990 and discussed at the Jan. 8 Long-range Planning session. The motion passed 5-0. b. Minnesota Industrial Development Assoc. Commissioner Friedman said he attended a meeting of this association which was formed in 1967 to provide a forum for exchange of information relating to development professions. He suggested the Authority take out a membership in the association. It was moved by Commissioner Friedman, seconded by Commissioner Tschida, to authorize the expenditure of $250 to join the Minnesota Industrial Development Assoc. The motion passed 5-0. 8. Communications and bills a. Dec. 31, 1989 financial statement It was moved by Commissioner Battaglia, seconded by Commissioner Tschida, to receive the statement for filing. The motion passed 5-0. b. Claims It was moved by Commissioner Battaglia, seconded by Commissioner Haun, to approve the claims and authorize payment. The motion passed 5-0. 9. Adjournment It was moved by Cammi ss i oner Friedman, seconded by Commissioner Battag lia, ct, tecutive bi+ectsr 5}galas@