HomeMy WebLinkAbout1990/03/05 - ADMIN - Minutes - Economic Development Authority - RegularMINUTES
ECONOMIC DEVELOPMENT AUTHORITY
ST. LOUIS PARK, MN
March 5, 1990
l. Cal 1 to order
' )
J
MICROFILMED
The meeting was called to order at 6:30 p.m. by President Keith Meland
2. Roll call
The following Commissioners were present at roll call: Bruce Battaglia, George
Haun, Allen Friedman, Lyle Hanks, Jane Tschida and Keith Meland.
Also present were the Executive Director, City Attorney and Director of Community
Development.
3. Approval of minutes
It was moved by Commissioner Battaglia, seconded by Commissioner Hanks, to approve
the minutes of the Feb. 20, 1990 meeting. The motion passed 5-0-1 (Commissioner
Haun abstained).
4. Approval of agenda
It was moved by Commissioner Tschida, seconded by Commissioner Haun, to approve
the agenda for March 5, 1990. The motion passed 6-0.
5. Reports
a. Status report: Lot l, Block 7, Oak Park Village
The Executive Director referenced the memo before the Authority. Staff was recommend-
ing three actions: Release of consultants' environmental study to the MPCA;
severance of the City's relationship with Louisiana Partners and removal of
property from the market; authorize staff to determine appropriate course of
action relative to the disposition cf the property.
Jim Waters, representing Louisiana Parners, addressed the Authority. He requested
that the Authority defer any decision until they have had an opportunity to
review all information to see whether it is cost effective for them to proceed.
In answer to a question fr om Commissioner Tschida, President Meland said clean
up of the site would be a cooperative effort between the Authority and developer.
It was moved by Commissioner Hanks, seconded by Commissioner Battaglia, to implement
recommendations 1 and 3 and defer 2 until the first meeting in April.
The motion passed 6-0.
b. Presentation by Wirth Company
Jeff Wirth and Phil Tannenbaum, owners of the property addressed the Authority.
The property in question is at the rear of the proposed Robert Larsen Partners
development. They have been unable to lease the property and were asking the
Authority to consider either purchasing their property or terminating the Larsen
proposal so they could proceed with leasing.
Economic Development Authority minutes MICROFILMED
March 5, 1990
7
I
1
)
J
In answer to a question fr om President Meland, the Executive Director said the
most recent word staff has received fr om Larsen Partners is that the proposed
development is on hold.
Commissioner Hanks asked if the sit e had been tested. Mr. Tannenbaum said that
when the MPCA tested the Golden and National Lead sites, they also tested their
sit e. He said he had a 1 et ter fr om the MPCA showing there is no danger of 1 ead
pollution and that the soil is within normal limits.
Regarding potential condemnation proceedings, the Executive Di rector wanted
Lo remind the Authority that tht resolution was conditional, conditional in
the sense that Robert Larsen Partners had to do certain things before the Authority
would act on condemnation. He wanted Messrs. Wirth and Tannenbaum to understand
that there was no promise, per se, that the Authority would condemn.
The President suggested they might want to bring the letter fr om the MPCA in
and discuss it with staff. The City Attorney said that under the circumstances
with the Larsen proposal on hold, there was nothing wrong with discussing different
alternatives.
Commissioner Tschida suggested delay of this item until an urban design plan
for Hwy. 7 is in place.
It was the consensus of the Authority Messrs Wirth and Tannenbaum should meet
with the Executive Director and the item will be placed on the April 2 EDA agenda.
6. Unfinished Business
a. Prelim inary bond sale resolution re Tax Increment Finance Districts
Resolution EDA 90-3
There was a lengthy discussion relative to the size of the bond issue.
President Meland said tonight was the last chance for the resolution to be passed
and the amount of the issue was something that could be established at a later
date.
Dan Hartman, Miller & Schroeder, said they were working on being as accurate
as possible on the revenue projections which will indicate the size of the issue
that would be recommended to the Authority.
Commissioner Hanks asked if certain problem areas within the enlarged TIF could
be e 1 im i nated. The Communit y Deve lopment Di rector said it had been determined
funds could be used to acquire such properties. Implied therein would be the
possible exposure of a loss of going concern claim by the property owner. The City
Attorney said his office is still accumulating facts re alternative sites --
not that the Authority would have to provide it, but that there is one(s) available.
Commissioner Friedman was concerned that we are not taking a look at what the
other TIF areas can do to generate funds because there could be a shortfall
in the existing areas.
Commissioner Hanks was concerned about the School District's participation.
He said he would need to know how that would aff ect the bonds and payoff befo re
he could vote.
Economic Development Authority minutes
March 5, 1990 MICROFILMED
r) r, answer to a question from Commissioner Hanks, the Director of Community Develop-
J ment said the Authorit y wi 11 be able to use the bond proceeds fo r purposes that
are laid out in the Hwy. 7 district as we know it now that are specif icall y
addressed in the proposed modif ication in addition to the Excelsior Blvd. and
Oak Park districts. ·
It was moved by Commissioner Hanks, seconded by Commissioner Tschida, to adopt
Resolution EDA 90-3 entitled "Resolution giving preliminary approval to the
issuance of tax increment revenue bonds, Series 1990, in the approximate principal
amount of $10,000,000 to finance project costs of the Excelsior Blvd. redevelopment
project, Oak Park Village redevelopment project and Hwy. 7 development district."
The motion passed 5-1 (Commissioner Friedman opposed).
7. New business
a. Request from Park Shore Place for modification to assessment agreement.
The Executive Directo ?llditional information requested of E. J. Plesko & Assoc.
has not been provided and it was being suggested the matter be deferred to Apr i l
2 ED A meeting.
It was so moved by Commissioner Hanks, seconded by Commissioner Friedman. The
motion passed 6-0.
l
) 8. Communications and bills
J a. February 1990 financial statement
It was moved by Commissioner Batt aglia, seconded by Commissioner Haun, to receive
the report for filing. The motion passed 6-0.
b. C 1 aim s
It was moved by Commissioner Hanks, seconded by Commissioner Tschida, to approve
and authorize payment.
Councilmember Friedman expressed his concern over the mounting legal fees wit h
all the Authorit y is doing and hoped at some point in time a handle could be
gotten on these costs.
The motion passed 6-0.
9. Adjournment
It was moved Commissioner Hanks,
at 7:20 p.m . The motion passed 6-0.
I
O
Commissioner Battaglia, to adjourn
Executive Director