HomeMy WebLinkAbout1991/01/07 - ADMIN - Minutes - Economic Development Authority - RegularM I N U T E S
E C O N O M I C D E V E L O P M E N T A U T H O R I T Y
S T . L O U I S P A R K , M I N N E S O T A
J a n u a r y 7 , 19 9 1
1 . C a l l t o o r d e r
T h e m e e t i n g w a s c a l l e d t o o r d e r a t 6 :1 5 p .m . b y P r e s i d e n t K e i t h M e l a n d .
2. Ro 11 ca 11
The following commissioners were present at roll call: Allen Friedman,
Larry Mitchell, Jane Tschida, Lyle Hanks and Keith Meland. Commissioners
Bruce Battaglia and George Haun arrived shortly thereafter.
Also present were the Executive Director, City Attorney and Director of
Community Development (Bill Dixon, Jim Steilen and Dave Hagen, respectively).
Director of Public Works (Jim Grube) joined the meeting as well.
3. Approvalof December 3 and December 19, 1990 minutes
It was moved by Commissioner Haun, seconded by Commissioner Mitchell,
to approve the minutes. The motion passed 5-0.
) 4. Approval of agenda for January 7, 1991
J
MICROFILMED
It was moved by Commissioner Tschida, seconded by Commissioner Haun, to
approve the agenda for January 7, 1991. The motion passed 5-0.
5. Reports
a. Status report: Suburban Plumbing proposal - Mr. Dixon gave a brief
update on the status of this proposal. Staff's recommendation at this
point is to authorize staff to: (l) continue to work with Suburban Plumbing
on the refinement of the cost estimates for which assistance may be requested;
(2) to provide a recommendation as to the reasonableness of the request
for assistance; and (3) to commence survey and title work on a 50-50 cost-
sharing basis as needed on the parcels that are presently in road right-of-way.
Councilrnember Friedman asked how the City would benefit financially by partici-
pating in this proposal.
Mr. Dixon said staff has not agreed to any arrangement at this point;
however, it is thought there could be some justification for some assistance.
Councilmember Friedman did not recall that anything definitive was planned
for this location and questioned why, at this point, the EDA would go
to any expense until some kind of plan could be viewed that would be beneficial
to the City.
M r. Hagen alluded to a 1986 site plan that had been shared with the EDA
in November of 1990. At that meeting, staff was directed to continue to
work with Suburban. Suburban has indicated a willingness to modify the
plans in light of some concerns expressed by staff.
M I C R O F IL M E D
President Meland asked if the Director had any idea what the 50-50 cost
sharing might mean to the EDA.
Mr. Grube indicated the survey and title work would probably involve approxi-
mate ly $6,000 outlay for the EDA matched by Suburban.
Commissioner Hanks wondered if it were possible to moved on recommendations
l and 2 but not 3 at this point.
Mr. Hagen responded that it was necessary to look at the title work on
the road right-of-ways because in order to know to what extent condemnation
is necessary, staff would have to ascertain with whom fee title rests.
Commissioner Hanks asked if the City's urban planner was involved.
Mr. Dixon reminded the Authority staff had been directed to contact the
urban planner to apprise them of the SPS proposal. Outside of some concerns
re traffic and stacking of trucks, the urban planner was generally in
favor of the proposal.
Commissioner Hanks asked if this involved the south frontage road whether
or not SPS is involved.
Mr. Hagen said the consultant reviewed the proposed frontage road alignment
on the north si de of the SPS site and concurred it would make sense to
put it in that location. 3
Commissioner Mitchell asked if the work relative to the frontage road
would have to be done, with or without the cost-sharing of SPS. Mr. Hagen
said that was true if he was referring to the study and title search.
Mr. Hagen wanted to clarify that title search and investigation were not
necessary to realign the frontage road. The survey and title work needed
to be done for the development project wherein the land is to be cl eared
and establish where the south right-of-way line would be for the frontage
road.
Mr. Dixon felt it important the Authority keep in mind this proposal is
attractive in the sense it is compatible with what has been discussed
for Hwy. 7 redevelopment. Also, the consultant believes it to be compatible
with what the City is looking for. e
It was moved by Commissioner Mitchell, seconded by Commissioner Tschida,
to accept the recommendations in staff's report.
Commissioner Battaglia cautioned the developer
in the tax increment only to the extent that the
He felt it important the developer be aware
is willing and able to participate in terms of tax
The motion passed 7-0.
Sb. Direction re accounting structure
in that the City shares
project could not happen.
to what extent the City
increment financing.
Commissioner Friedman asked if it were more or less cumbersome to have the :w
three tax increment districts merged such as was done in 1990.
M IC R O F IL M E D
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The City attorney, to clarify, explained some TIF funds are corning from
a development district and some funds from a redevelopment district
- two separate districts with two separate purposes. The monies cannot
be pooled and spent for whatever the EDA may determine it wants to spend
it for. Redevelopment funds must be spent on redevelopment projects and
development district money on development projects, and many of the purposes
overlap. The other problem concerned the use of funds from tax increment.
The hope had been to create a fund which would not be subject to Statute
restrictions. Unfortunately the statute also specified funds derived
from tax increment, but the definition of this is not clear. However,
the proposal before the Authority would serve to keep it in line with
legislative mandate.
It was moved by Commissioner Mitchell, seconded by Commissioner Battaglia,
to accept the recommendation in staff's report.
The motion passed 7-0.
c. ENSR report re Tower Place site
Commissioner Haun questioned going to financial lending institutions
at this time. The Authority may be sending the wrong message and end
up with negative results.
President Meland said he expected the consultant to comment on this matter
on Jan. 16. Perhaps the Authority could accept the report for filing
this evening and defer discussion to the next EDA meeting after the consult-
ants have made their comments.
It was moved by Commissioner Friedman, seconded by Commissioner Battaglia,
to defer discussion to the next EDA meeting.
The motion passed 7-0.
Exec. Vice-
The President recognized Jim Toscano,/ president. of Park Nicollet Medical
Foundation, who briefly addressed the Authority.
The City Attorney had a bit of concern about the report. His concern
was not Tower Place, which is virtually clean, but the area over the
dump. It was his understanding this was what had deterred the previous
lendors. He did not see this very much addressed in the report. If that
area is indeed the major concern of lendors, he was not sure whether
the report was going to be of much he 1 p. He wondered if the Authority
would get the full attention of a potential lendor with no project to
show them.
Commissioner Mitchell did not feel the item was totally out in the open
or ready to be put out in the open. He cautioned too quickly approaching
lendors.
Commissioner Battaglia noted that ENSR's report viewed Tower Place as
a stand-alone site. He felt that was not the case as there was a lot
of impact from the neighboring areas. He felt ENSR should address the
question of why the study was of such limited scope -- perhaps this
was a failing of direction from the Authority. Commissioner Haun concurred
and expressed concern over the possibility of leeching from this site and
had that been addressed.
6 a . U n f i n i s h e d b u s i n e s s MICROFILMED
a. Closed meeting: Possible land acquisition
It was the consensus to hold the closed meeting at the end of the EDA agenda
7. New business
a. Election of officers for 1991
It was moved by Councilmember Mitchell, seconded by Commissioner Battaglia
to retain the current officers with one change: Assistant Secretary
would be Janice Loftus. The officers for 1991 shall be: President, Keith
Meland; Vice-president, Allen Friedman; Secretary, Pat Smith; Treasurer,
Lyle Hanks; Assistant Secretary, Janice Loftus; Assistant Treasurer,
Harlan Syverson.
The motion passed 7-0.
8. Communications and bills
a. December 31, 1990 financial statement
It was moved by Commissioner Battaglia, seconded by Commissioner Haun,
to accept for filing. The motion passed 7-0.
b. Claims
It was moved by Commissioner Haun, seconded by Commissioner Mitchell,
to approve and authorize payment. The motion passed 7-0.
9. Adjournment
It was moved by adjourn the meeting at 7:25 p.m. The motion passed 7-0.
Executive Director