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HomeMy WebLinkAbout1991/11/04 - ADMIN - Minutes - Economic Development Authority - RegularMICROFILMED MINUTES ECONOMIC DEVELOPMENT AUTHORITY ST. LOUIS PARK, MINNESOTA November 4, 1991 1. Cal 1 to order President Meland called the meeting to order at 6:30 p.m. 2. Roll call The following commissioners were present at roll call: Jeff Jacobs, George Haun, Allen Friedman, Lyle Hanks and Keith Meland. Also present were the Executive Director, City Attorney and Director of Community Development, and the Director of Public Works. 3. Approval of minutes It was moved by Commissioner Hanks, seconded by Commissioner Haun, to approve the minutes of the Oct. 7, 1991 meeting. The motion passed 4-0-l (President Meland abstained). It was moved by Commissioner Hanks, seconded by Commissioner Haun, to approve the minutes of the Oct. 14, 1991 meeting. The motion passed 5-0. \ } 4. Approval of agenda It was moved by Commissioner Hanks, seconded by Commissioner Jacobs, to approve the agenda for Nov. 4, 1991. The motion passed 5-0. 5. Reports a. Status report: Suburban Plumbing redevelopment It was moved by Commissioner Hanks, seconded by Commissioner Jacobs, to establish a public hearing for the disposition of the real estate interests to be acquired by the EDA to the redeveloper on Dec. 4, 1991 and direct staff to prepare a public hearing notice and publish same. The motion passed 5-0. 6. Unfinished business a. Tower Place - Working conference with Nick Trkla The Executive Director introduced Nick Trkla who brought the Authority up to date on the redevelopment effort. Among the points he made: Two separate agreements are under study: (a) One between the City/EDA and Park Nicollet Foundation with respect to environmental remediation; (b) the redevelopment agreement. Work amongst all parties up to this point has been focused on arriving at a dollar figure with respect to remediation, a determination of the level of participa- tion on the part of the two parties as a percentage of that figure and EDA minutes Nov. 4, 1991 ICROFnL.ME,, the method by which the City's reimbursement would be made to environmental remediation. One aspect yet to be resolved with the Foundation is that the insurance company for the Foundation and Medical Center, which he believed to be the same company, be a party to the eventual agreement. He reviewed the basic elements of the development agreement that the parties had come up with to date. He said the basic elements had been addressed. The principal outstanding issue is one of cost-sharing on the redevelopment and potential impact on the tax increment fund as well as prospective tax increments generated by the project. Commissioner Friedman asked if a developer had been selected. Mr. Trkla said there was only one developer being talked about for the site based on an understanding arising out of Phase I. Mr. Friedman had no knowledge of that and felt if the Medical Clinic wanted to have a developer, that was their business. Mr. Friedman felt a lot. was going on of which the EDA was unaware especially relative to an agreement. Mr. Trkla said there was no agreement at this point. He continued to believe that the ultimate goal, and the best payoff for the development of the site is predicated on the expansion of Park Nicollet's facilities in St. Louis Park. Mr. Friedman believed that there would be an agreement by this time and felt the Authority really had no evidence of anything at this point. Mr. Haun was concerned about the City Attorney's memo re litigation and the large amount of money involved, to be paid by someone. He thought this potential could be detrimental to everything else. He felt there just was never enough time to fully understand these complex issues, much less in the next 30 days. Randy Mckay, Frauenshuh Development, spoke. He said financial statements would be prepared for the Authority as well as apprise the Authority of work Fr auenshuh has done for Park Nicol let as well as other projects they have been involved with. He felt a development agreement could be attained in 30 days. Commissioner Friedman felt there had been communication problems and that the Authority should be more directly involved. It was moved by Commissioner Friedman, seconded by Commissioner Jacobs, that the EDA appoint a committee to work directly on this project consisting of Commissioners Haun, Jacobs and President Meland. Commissioner Hanks asked if Commissioner Friedman shared his concern that meetings had been held involving Mr. Trkla and the City Attorney with no EDA in attendance. Mr. Friedman said that was correct. _J Commissioner Hanks felt that since he had to answer to residents of the community, he should al so sit on the commit tee or he could not support the motion. -2- MICROFILMED EDA minutes Nov. 4, 1991 Commissioner Friedman said he would stay with his motion. The motion passed 4-l (Commissioner Hanks opposed). Commissioner Hanks felt it important that every avenue be explored in order to retain Park Nicollet as a member of the community. 6b. 1991 budget No action required as this will be considered by the Authority at its meeting on Dec. 4, 1991. It is not subject to the Truth in Taxation procedure as is the City's budget. 7. New business a. STS Consultants, Ltd Proposal for services re Wilkins site remediation Mr. Dixon said the Director of Public Works had been working closely with STS and believed that given the circumstances on that site, it is in the Authority's best interest to move ahead with the proposal. ) Commissioner Friedman asked who paid for this. reimbursement would most likely be by the EDA. for tank removal would be reimburseable. Mr. Grube said initial 95% of the expenditure Commissioner Friedman asked who paid the difference if all the agencies listed don't pay full price. The City Attorney said the EDA does. The City Attorney said a question was can the EDA bring a legal action against the former owner of the property, Anderson-Cherne, who owned the property when the tanks were installed. Councilmember Friedman, in response to Mr. Grube's comments that nothing was leaking into the soil, asked why they had to be removed now. Mr. Grube said it was expedient to do so now to ensure that any reimburseable funds from the PETROl fund would be reimbursed now. The City Attorney said Anderson-Cherne could be sent a demand letter, which they would certainly reject, but it was probably a good idea to go through the process. It was moved by Commissioner Friedman, seconded by Commissioner Jacobs, to send a demand letter and to give the Executive Director and City Attorney the authority to proceed in the direction started here if the demand letter is rejected. The motion passed 5-0. b. Trkla Pettegrew Allen & Payne Amendment to contract President Meland asked the City Attorney if this item could be discussed in executive session. The City Attorney said there was a provision under the executive session Statute which would permit such review. -3- E D A m i n u t e s N o v . 4 , 19 9 1 M IC RO FILM ED $ It was moved by Commissioner Friedman, seconded by Commissioner Jacobs, that this item be referred to the committee which was just established and their recommendation be brought back to the Nov. 12 agenda. The motion passed 5-0. 8. Communications and bills a. October financial statement It was moved by Commissioner Friedman, seconded by Commissioner Jacobs, to approve the October financial statement. The motion passed 5-0. b. Cl aims list ) It was moved by Commissioner Haun, seconded by Commissioner Friedman, to approve the claims list and authorize payment. The motion passed 5-0. c. Change of Dec. 2 meeting to Dec. 4 It was moved by Commissioner Jacobs, seconded by Commissioner Hanks, to change the meeting date. The motion passed 5-0. Relating to item 7b, it was moved by Commissioner Hanks, seconded by Commiss- ioner Jacobs, to set a special EDA meeting on Tues., Nov. 12 at 6:45 p.m. The motion passed 5-0. 9. Adjournment It was moved by Commissioner adjourn the meeting at 7:35 p.m. Jacobs, seconded by Commissioner Haun, to i .-<= Fas1d L. sass -4-