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HomeMy WebLinkAbout1991/04/01 - ADMIN - Minutes - Economic Development Authority - RegularMINUTES ECONOMIC DEVELOPMENT AUTHORITY MEETING ST. LOUIS PARK, MINNESOTA April 1, 1991 1. Call to order President Keith Meland called the meeting to order at 6:00 p.m. 2. Roll call Present at roll call were: Jeff Jacobs, George Haun, Lyle Hanks, Keith Meland. Larry Mitchell arrived at 6:05 and Allen Friedman at 6:20 p.m. The City Attorney was also present. 3. Approval of minutes It was moved by Commissioner Hanks, seconded by Commissioner Haun, to defer cons i de ration of the minutes unt i 1 1 ater in the meeting. The motion passed 4-0. l ) J M ICRO FILM ED: Upon later consideration, it was moved by Commissioner Hanks, seconded by Commissioner Haun, to approve the March 4, 1991 ED A minutes. The motion passed 5-0-1 (Jeff Jacobs abstained). It was moved by Commissioner Hanks, seconded by Commissioner Jacobs to approve the March 20, 1991 EDA minutes. The motion passed 4-0-2 (Commissioners Meland and Haun abstained). 4. Approval of agenda It was moved by Commissioner Hanks, seconded by Commissioner Haun, to approve the agenda for April l, 1991. The motion passed 4-0. 5. Reports a. Status report: Suburban Plumbing r Mr. Dixon reported concern had been raised regarding the cost to have the two billboards on the redevelopment site removed. The City Attorney was asked to research what 1 i ab i 1 i ty the Authority might be 1 i ab 1 e for re 1 at i ve to removal. The staff was recommending the Authority authorize it to secure estimates of the costs to effect billboard remova 1 through three options: condemnation now; negotiated purchase now; or condemnation when the lease expires in 1998. Staff felt it prudent to get cost estimates for those three possibilities. Commissioner Hanks asked if the billboards were in place in 1971, did any subsequent updating of the board enter in. He recalled they went from a wooden structure to a single pole at some point. The City Attorney said there was not enough experience with the State Statute to know the answer to that question, i.e. whether updating a billboard (going from wooden structure to single post or going from one-face to two-face) constitutes making it a "new" billboard. 2. MICROFILMED He said there were two other alternatives: leave the billboards there; or acquire the bi 11 boards, but 1 eave them there unt i 1 the 1 eases expire and then not renew the leases. It was moved by Commissioner Hanks, seconded by staff to secure estimates of the costs to (1) through condemnation now; (2) through (3) through condemnation when the lease expires The motion passed 5-0. b. Status report: Wilkins Pontiac site c. Status report: Oakmont litigation None. 7. New business Commissioner Haun, to authorize effect the bi 11board removal: negotiated purchase now; and in 1998. Items Sb and Sc were discussed in closed meeting. 6. Unfinished business a. Nash-Finch space needs Mr. Dixon gave a brief report on this item. It was moved by Commissioner Mitchell, seconded by Commissioner Jacobs, to authorize staff to have additional discussions· with Nash-Finch about the possible development of Block 5 of Oak Park Village. Commissioner Hanks asked why Block 5 was not developed before. Commissioner Haun recalled the Decree coming out of the Reilly settlement was not definitive enough to determine whether or not that site could be developed and the lending institutions were hesitant about financing. The City Attorney felt, based on the Authority's experience with Oakmont, it might be wise to provide to Nash-Finch a very defined package of materials with regard to what the Authority knows about the site. The motion passed 5-0. b. Parking arrangement with Park Tavern Commissioner Mitchell said he brought this to staff's attention because when he saw that the Park Tavern was paying only $25/mo. for all those parking slots, he found it hard to believe. He was curious as to where the price came about. He was curious as to what\nate the marketplace would set for this. He sought a reference point as to how the va 1 ue of the property was determined. He noted the property was being extensively used, not like Block 7 which, albeit undevelopable without enormous expense, was not being used. 3. MICROFILMED ) I l ) J I =+ Mr. Dixon noted that the time the lease was entered into, the thought was that the Louisiana Partners development was imminent and that this was going to be a short-term use and thus the $25/mo. set. It was moved by Commissioner Mitchell, seconded by Commissioner Haun, to direct staff to give notice of termination of the existing lease and to negotiate a new lease requiring rent of $2,400 per year, hard surfacing, landscaping and other improvements. Commissioner Haun asked if negotiations had been undertaken with Park Tavern to purchase the land rather than leasing. Mr. Hagen said in May 1990 the Park Tavern submitted a letter to staff indicating their interest in purchasing/long-term leasing of the property. Staff stated that pending settlement of the Louisiana Partners matter, it was thought unlikely the EDA would be interested in entering into any discussions in that regard. He said that in talking to Park Tavern last week, they remain interested in discussing purchase/long-term leasing. Councilmember Mitchell was amenable to adding that to the motion. The only concern he had was if a long-term lease were contemplated or even a purchase, the Authority be much more market-reflective of what its value is. Commissioner Friedman arrived. Commissioner Jacobs asked if the Park Tavern needed that extra parking to meet code requirements. Mr. Hagen said they did not. Commissioner Friedman felt it prudent to put off setting a yearly fee until the market value of the piece is ascertained. Commissioner Hanks would not support the motion because it stated a certain figure for rent. He felt it should be negotiable. He felt staff should visit with Park Tavern on its feelings about purchasing and in the meantime come up with a market value of the property. It was the consensus of the Authority that staff come back with a report on market value by the first meeting in May. along with the lease value. This was moved by Commissioner Mi tchell, seconded by Commissioner Jacobs and passed 6-0. 8. Communications and bills a. March 1991 financial statement It was moved by Commissioner Hanks, seconded by Commissioner Mitchell, to receive for filing. The motion passed 6-0. b. Claims It was moved by Commissioner Haun, seconded by Commissioner Mitchell, to approve and authorize payment. The motion passed 6-0. 9. Adjournment - The meeting adjourned at 6:30 p.m. \,4±cc Pres+d ent Executive Director