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HomeMy WebLinkAbout1990/08/06 - ADMIN - Minutes - Economic Development Authority - RegularM I=,Op ®" av ·FLMED MINUTES ECONOMIC DEVELOPMENT AUTHORITY ST. LOUIS PARK, MINNESOTA August 6, 1990 1. Call to order l ) I President Meland called the meeting to order at 6:15 p.m. 2. Rol 1 call The following commissioners were present at roll call: Bruce Battaglia, George Haun, Allen Friedman, Larry Mitchell, Lyle Hanks, Jane Tschida and Keith Meland. Also present were the Executive Director, City Attorney and Director of Community Development. 3. Approval of minutes of July 16, 1990 meeting It was moved by Commissioner Mitchell, seconded by Commissioner Tschida, to approve the minutes. The motion passed 7-0. 4. Approval of agenda for August 6, 1990 It was moved by Commissioner Battaglia, seconded by Commissioner Haun, to approve the agenda. The motion passed 7-0. 5. Reports A. Status report: Louisiana Partners The Executive Di rector reviewed the recommendation before the Authority re reimbursement to Louisiana Partners. It was moved by Commissioner Hanks, seconded by Commissioner Tschida, to approve the recommendation in staff's report. Commissioner Mitchell asked why staff was proposing this action. The Executive Director said it was a practical move. He did not believe that stonewalling the matter would make it go away. It was thought that the work Louisiana Partners did was with sound motivation and wi 11 be of some va 1 ue to the Authority in the future and the proposed sett 1 ement seeks to resolve the matter amicably and reasonably. Commissioner Battaglia asked if the information received from Louisiana Partners could be sold to a future developer. The Executive Director responded it could or, as an inducement to development, be offered. Commissioner Friedman felt if there· was a problem with the soil, as had been proven, why was the Authority at risk in this matter. The President said the Authority was buying something from the developer in exchange for a release of interest on the land. The Executive Director concurred, noting that during the process of this development getting llWWWW!WI!WI!INN\I A All )Ne JJJ JllJlAA A)JJJJAs, 2. going, there was significant change in the members of the EDA/City -- the HRA was dissolved, the EDA was created, the administration of the Authority changed. Under these circumstances, there is some dispute as to assurances given with regard to the site by the then City representatives. In sum, it is just not that clear cut. He would request the Authority to act on this matter and move on. In an attempt to answer Commissioner Friedman's question, the developer said he received a packet from the City referring to the property as developable and marketable. Based on that, the developer went ahead with plans and the expenditure of a good deal of money. Even. though as deve l aper they are always at some risk, the significant changes in staff and administration as alluded to by the Executive Director were certainly not under the developer's control. The motion passed 7-0. b. Status report: Wilkins Pontiac The Executive Director provided a brief update. Councilmember Friedman felt it was time for the City policy makers to get involved in this situation as GM/Wilkins don't seem to be able to get anything going. He suggested the EDA President, and whomever he feels important to be with him, contact the president of GM to inquire as to why they are prejudicial to the interests of a business in this area and to the City for retaining this business in the area and express the Authority/City's very strong interest in moving this situation along. President Meland felt it would be appropriate fo r the Executive Director, City Attorney and himself to get together to devise some way to do this. Commissioner Friedman alluded to the report's recommendation asking who pays fo r the retention of a commercial/industrial real estate broker to aid staff. The Director of Community Development said the Authority is obligated to do this by virtue of the Uniform Relocation and Acquisition Act. Commissioner Friedman suggested that the President and others proceed to cont act GM and th at a ho l d be put on the re tent i on of a re a l e st ate broker. He noted a site had been approved by GM. Commissioner Mitchell asked if the current lease were a lifetime lease. The Executive Di rector said that GM will approve the Westinghouse site for a Wilkins relocation for the lifetime of Harvey Wilkins; however, the Wilkins are not willing to do that. The Director said it was his understanding Mr. Wilkins could continue to operate at the present location indefinit ely. The City Attorney said there was no verification of the foregoing as the Authority has no power to obtain those papers from GM. In answer to a question from Commissioner Battaglia re just cancelling Wilkins' lease, the City Attorney said Wilkins did have a lease with the City, but the 1 and was acquired by condemnation and the Authority ) 3. MICROFILMED l ) I does have the potential of being sued for loss of going concern. It was moved by Commissioner Friedman, seconded by Commissioner Hanks, to authorize the Executive Director, President and City Attorney to pursue this matter with GM and approve the recommentations in staff's report. The motion passed 7-0. c. Continuing discussion: Redevelopment Resource Scenarios In answer to a question from Councilm ember Mitchell as to the availability of money and which would cost more -- tax exempt or taxable bonds -- Dan Hartman, Miller & Schroeder, said $6 million would be available in eit her case; it would cost more to do the taxable. He said the outstanding $2 million tax exempt bonds could not be converted to taxable. Attorney Stefanie Galey felt the Authorit y might be incurring a risk w it h respect to the conversion fr om tax exempt to taxab 1 e of the bonds which have already been issued. To spend more than 10% of the proceeds for private purposes would cause those bonds to become taxable under an IRS ruling. Councilmember Mit chell recalled that this was an option, that the Authorit y was not locked into anything. Councilmember Battaglia asked what are the total estim ated public improvements being contemplated. The Director of Community Development said staff had identif ied a total of $4.7 mill ion of public improvements that were budgeted in the Capit al Im provement Program that would be l ega 1 to spend tax increment fu nds on. Some addit ional im provements have been identif ied, but it is not yet resolved if TIF can be used for those im provements. In answer to a question fr om Councilmember Battaglia, Mr. Hartm an said the bond issues could be mixed, some tax exampt, some taxable. Councilmember Mitchell asked why staff supported the .:··taxable position as opposed to tax exempt. The Executive Director said among other things the Authority was looking at a bond issue that would serve the communit y fo r a number of years. Sit ting in his chair, the one thing one would want is fl exibilit y fo r the governing body. Land acquisition is something that might well occur. Councilmember Mitchell expressed his frustration over the tax exempt vs. taxable question. A decision could be delayed right up to the deadline a nd what are we to do if another question comes up on deadline day. C ommissioner Tschida concurred and was at a loss to understand how two bond counsels could be in disagreement over this issue. It was Commissioner Battaglia's thought that the Authority needed to go wit h the staff recommendation both on the size of the issue and the maturit y schedule. He would like maximum flexibilit y. He would like· to see $4.7 million in non-taxable bonds used for the identified public improvements and the rest taxable. It was moved by Commissioner Hanks, seconded by Commissioner Mitchell to defer to August 13, 1990. 4 . 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 t h a t C o m m i s s i o n e r B a t t a g l i a 's c o m m e n t s b e i n c o r p o r - a t e d i n t o t h e m o t i o n . T h i s w a s a g r e e a b l e t o t h e m a k e r . T h e m o t i o n p a s s e d 7-0. 6. Unfinished business a. Agreement with Barton-Aschman for urban planning/redevelopment services There was discussion re the increase in the cost of the study. The Executive Director said the increase in cost is directly attributable to more services being requested by the contracting authority. Commissioner Battaglia referred to the hourly billing rate range. He asked what was the purpose of a range. The Executive Director said he would provide that information. It was moved by Commissioner Hanks, seconded by Commissioner Mitchell to approve the agreement. The motion passed 6-1 (Commissioner Friedman opposed). b. Closed meeting, pending litigation (Oakmont) 7. New business a. Expression of interest from E. J. Plesko & Assoc. re possible redevelopment at Hwy. 77Ing Tewood/France It was moved by Commissioner Hanks, seconded by Commissioner Haun, to defer to September 4, 1990 for presentation. The motion passed 7-0. 8. Communications and bills a. July 31 financial statement It was moved by Commissioner Battaglia, seconded by Commissioner Haun, to receive for filing. The motion passed 7-0. b. Claims It was moved by Commissioner Tschida, seconded by Commissioner Battaglia, to approve and authorize payment. The motion passed 7-0. 9. Adjournment The meeting adjourned at 7:22 p.m. : = Executive Director J