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HomeMy WebLinkAbout1990/06/18 - ADMIN - Minutes - Economic Development Authority - RegularMINUTES ECONOMIC DEVELOPMENT AUTHORITY ST. LOUIS PARK, MINNESOTA June 18, 1990 MICROFILMED 1. Call to order The meeting was called to order at 5:30 p.m. by president Keith Meland. 2. Ro 11 ca 11 The following Commissioners were present at roll call: Bruce Battaglia, George Haun, Allen Friedman, Larry Mitchell, Jane Tschida and Keith Meland. Also present was the Director of Community Development (sitting in for the Executive Director). The City Attorney arrived at 6:00 p.m. 3. Approval of minutes It was moved by Council member Haun, seconded by Council member Battaglia, to approve the minutes of the June 4, 1990 meeting. The motion passed unanimously. 4. Approval of agenda It was moved by Commissioner Battaglia, seconded by Commissioner Tschida, to approve the agenda for June 18, 1990. The motion passed unanimously. 5. Reports a. Discussion re Tax Increment Financing - Commissioner Mitchell recalled the Authority previously had asked fo r a menu of options fo r Public Works and Planning, schedule of limitations for the City, TIF district bonding possibilities, costs and tradeout with the School District. It seemed the thrust of the Community Planning Director's memo was to direct this to the urban planner. The Director said it was felt the urban planner could be used to look into some of these things. Commissioner Mitchell felt that the timeframe between selecting an urban planner and the parking of the bonds in September was insufficient time to address this. A lengthy discussion followed re the ability of the ED A to commit to bonding sources of revenue that are tied to a referendum that has the potent i a 1 of being recalled. The City Attorney arrived. The City Attorney said a municipality faces a number of risks anytime a bond is issued. He did not recall any coversation between bond counsel, attorneys or staff re risk of referendum levy recall. He suspected it was a relatively rare kind of risk. h, JAJJANJA]J»AJA»JAJI JJ»III EDA minutes June 18, 1990 2. Commissioner Mitchell asked what would happen if the City forgot the bond issue, paid them off-there would be $10 million available. What could the Authority do with $10 million? What is it the Authority would not be doing? The Director said the redevelopment plan identified 5 areas in need of redevelopment. The total cost of acquisition and write-down of the 5 sites would be $26 million. In addition $8 million in public improvement costs have been identified which can legally fall under tax increment financing. Commissioner Battaglia felt confused as to what the tax base of the City would be relative to the amount of money being invested. The Director said staff had not yet completed that task. Alternatives were for a financial consultant to to it or to ask the urban planning firm to do it with financial consultant assistance. A question was raised as to the specifics of long-range projects. Commissioner Tschida believed this was not possible because the Authority was still in the process of deciding what it is they do want. Once some specifics are in hand, projections can be made what the increment is going to be. Commissioner Haun acknowledged that projections were based on assumptions at this point, but he sought more information, i.e., what if?, suppose we did . . . ? Commissioner Mitchell felt it might be helpful, and important, to prioritize the 5 redevelopment districts and do projects on that prioritization. He felt the Authority needed to know what it has generated and what is coming out of these development districts. Commissioner Tschida felt we couldn't prioritize until a plan was in place. She felt that was why an urban planner was being hired. Commissioner Mitchell wondered if the Authority wasn't looking for more from the urban planner than what we may end with. He noted that one of the firms being proposed had already done a study of the Hwy. 7 corridor as well as traffic studies of Excelsior Blvd. Commissioner Battaglia asked if the detail in a master plan was so crucial, i.e. height of buildings, direction they face, where the roads are going. He did not feel those kinds of details were necessary when it was numbers that were needed now. That sort of detail information could certainly wait a bit. Commissioner Haun wondered why one district could not be targeted in order to get the job underway. Maybe the planner needed to know which was the Authority's top priority. It was moved by Commissioner Battaglia, seconded by Commissioner Haun, to prioritize the redevelopment districts starting with Excelsior Blvd., then Highway 7 corridor and see what is needed to generate, providing a 11 the numbers and then proceed with the other 3 redeve 1 opment districts. See how much revenue is needed to generate those projects; - I l ) J ED A minutes June 18, 1990 3. when the projects are completed, how much revenue will be generated and what will be the enhancement to the tax base; and will that generate enough revenue to proceed with the other redevelopment projects. He did not see it necessary to wait for an urban planner to undertake those tasks. Commissioner Haun made it clear that by seconding the motion he was opposed to the districts being made any larger. President Meland suggested adding to the motion to identify within each of the districts a public works type of project that could commence the use of the bonds. In answer to a question from Commissioner Mitchell as to which district could most quickly be developed, the Director of Planning felt Tower Place was first, with Woodale to Soo Line and Soo Line to Monitor as next. Commissioner Tschida was opposed to prioritizing, that this was best left to the urban planner. She suggested the urban planner be given dates by which the projections must be completed in conjunction with discussions on the sale of the bonds. The motion passed 4-1-1 ( Cammi ss i oner Tschida opposed; Cammi s s i oner Friedman abstained). Commissioner Mitchell felt the Authority ought to have some sort of statement in support of the City's using tax increment financing in the event it is ever questioned. Executive Director Dixon joined the Authority. Commissioner Mitchell felt documentation was important, that if the Authority is going to make a commitment to T IF, they are going to have to argue for it and the arguments for need to be developed. It was moved by Commissioner Mitchell, seconded by Commissioner Battaglia, that a preliminary report in support of the City's using tax increment financing be brought to the Authority on July 16, 1990. The motion passed 6-0. b. Report and recommendation re proposals submitted for Urban Design/Redevelop- ment P Tanning Services The Executive Director reviewed the evaluation criteria. Commissioner Friedman wondered why the Howard Dahlgren firm had not been included who was the original planning firm for the City. It was later determined that Mr. Dahlgren was retired. Commissioner Haun felt one firm responding, located in the City, was owed a courtesy interview. It was moved by Commissioner Tschida to interview all 7 firms responding. The motion died for lack of a second. lllllOlANNONA8NIIMI!WWWW»J AN®JONA»ANANIA Jg ED A minutes June 18, 1990 4. It was moved by Commissioner Friedman, seconded by Commissioner Tschida, to interview the 3 suggested by staff to make presentations. The motion passed 5-1 (Commissioner Haun opposed). It was moved by Commissioner Battaglia, seconded by Commissioner Friedman, that the Authority conduct the interviews. The motion passed 6-0. It was moved by Councilmember Haun, seconded by Councilmember Friedman, to hold interviews on Wednesday, June 27 at 6:30 and July 16 at 6:30. The motion passed 6-0. 6. Other business None. 7. Adjournment The meeting adjourned at 7:15 p.m. Executive Direc or