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HomeMy WebLinkAbout1992/07/06 - ADMIN - Minutes - Economic Development Authority - Regularv ICROFILMED MINUTES ECONOMIC DEVELOPMENT AUTHORITY ST. LOUIS PARK, MINNESOTA July 6, 1992 1. Cal 1 to order President Meland called the meeting to order at 6:00 p.m. 2. Roll call l ) a The fo 11 owing Commi ssione rs were present. at ro 11 ca 11: Jeff Jacobs, George Haun, Allen Friedman, Lyle Hanks, Larry Mitchell, Gail Dorfman, Keith Meland. Also present were the Executive Director, City Attorney, Director of Community Deve 1 opment and Di rector of Pub lic Works (Mr. Dixon, Mr. Steil en, Mr. Hagen and Mr. Grube, respectively.) 3. Approval of minutes of June 8, 1992 meeting It was moved by Commissioner Jacobs, seconded by Commissioner Hanks, to approve the minutes of the June 8, 1992 meeting. The motion passed 5-0-2 (CommissionersMitchell and Friedman abstained). 4. Approval of agenda for July 6, 1992 It was moved by Commissioner Mitchell, seconded by Commissioner Haun, to approve the agenda for July 6. The motion passed 7-0. 5. Discussion of proforma re G & P proposal for assisted living Mike Gould, representing G & P Properties, was available for questions. Commissioner Dorfman said she understood Rosewood Estates project was developed with no subsidy from the City of Roseville. said Rosewood A 11 an B 1 ack / was a project ut i li zing a HUD-sponsored market rate program ca 11 ed HUD 22104 which has subsequent ly been terminated. No 1 onger is there access to any guaranteed loans under HUD. A discussion ensued as to the definition of "take out" loan. The City Attorney suggested that, since at lease-out the only equity in the project will be the EDA money, the Authority might wish to discuss with Mr. Gould about how necessary is the Authority contribution, should it be treated as a loan rather than a subsidy, should the EDA have an equity/ quasi-equity interest in the development. Commissioner Jacobs wondered how the Authority would recoup its $800,000 and how will that affect a so-called loan repayment. Mr. Gould responded that prior to lease-up and securing of a permanent lender, many risks exist and in today's poor lending market, it takes every bit of resource one can manage to bring a project like this together. ED A m i n u t e s J u l y 6 , 19 9 2 2. President Meland noted that if the $800,000 were considered a subsidy, it would come back to the Authority in the form of tax payments over the 8-9 year period after the first payment was received. He reminded the reason this was before the Authority was because of a request about a year ago for tax abatement by G & P at Park shore. The Authority was not able to accommodate G & P because it lacks legislative authority. The proposal this evening was conceived as a means of coming up with tax increment monies which would facilitate their remaining competitive. Councilmember Friedman had no problem with the structure of this project; his questions were merely to assure that everyone present knew what the process was. With the lack of funding coming from the Federal and State governments, he felt it important that the City was able to support such a project as proposed by a developer who was viable and had made previously a positive addition to the City. President Meland felt the EDA in a study session may wish to have additional discussion about what the Authority's position should be with respect to participation as a limited partnership or board of directors. Commissioner Hanks said he had discussed the project with Mr. Gould and asked what wou 1 d be G & P's reaction if the Authority agreed to fund ha 1 f of its request. Mr. Gould responded that, tied into this project is G & P's ability to purchase the corner. This is virtually mandated so that the developer can have control to provide restructure of the parking and all things that need to be done to redesign the corner to fully integrate it into a development. Therefore, the Authority's full financial support to the extent it sees fit is necessary to tie the entire project together. Mr. Gould briefly touched on the market analysis for the project. It was moved by Commissioner Hanks, seconded by Commissioner Jacobs, that staff continue discussions with G & P including discussion at the next study session exploration of the comments brought up earlier by Mr. Steilen and President Meland. The motion passed 7-0. b. Evaluation of environmental conditions at 6007 Highway 7 It was moved by Commissioner Hanks, seconded by Commissioner Jacobs, to authorize execution of a contract with Braun Intertec Environmental in the amount of $16,567 for the investigation of environmental conditions at 6007 Highway 7. The motion passed 7-0. 6. Unfinished business a. Follow-up information per EDA request re preparation of plans and specifications Tor Tandscaping: Louisiana Ave.7Hwy. 7 It was moved by Commissioner Hanks, seconded by Commissioner Haun, to MICROFILMED 3. l ) 3 EDA minutes July 6, 1992 direct staff to proceed with preliminary design plans for the landscaping of T.H. 7/Louisiana Ave. The motion passed 7-0. 7. New business a. Award of bid: Triangle landscaping project ResoTution EDA- 92-2 Mr. Dixon said the Authority, in addition to awarding the bid, would want to discuss Alternate #l related to lighting. It was moved by Commissioner Han ks,seconded by Commissioner Haun, to accept the bid of Central Landscaping in the base bid amount of $144,100.50. The motion passed 7-0. Barry Warner reviewed the lighting proposals. Commissioner Friedman believed the cost to be excessive to light the trees in the area. Commissioner Dorfman asked if the islands would be dark during foliage seasons because the tivoli lights will not be used. Mr. Warner responded that without uplighting, the trees would not be illuminated. However, there would be roadway lighting. Commissioner Dorfman wondered why tivoli lighting could be used year round. Mr. Warner felt the effectiveness of tivoli lighting was reduced in the summer when there was heavy foliage. It was moved by Commissioner Hanks, seconded by Commissioner Friedman, to delete Alternate #l. The motion failed 3-4 (Commissioners Friedman, Dorfman, Hanks in favor; Commissioners Jacobs, Haun, Meland, Mitchell opposed). It was moved by Commissioner Mitchell, seconded by Commissioner Jacobs, to approve Alternate #l. The motion passed 4-3. (Commissioners Friedman, Dorfman, Hanks opposed). Commissioner Haun suggested trying the tivoli lighting year round. b. Elimination of wood poles and overhead electrical wires in Triangle area It was moved by Commissioner Mitchell, seconded by Commissioner Haun, to authorize execution of an agreement with NSP to underground the primary line crossing Cty. Rd. 25/Mtka. at Glenhurst at a cost not to exceed EDA minutes July 6, 1992 4. $20,000 and an agreement to install street lights on the poles also used for the temporary traffic signals at a cost not to exceed $5,000. The motion passed 7-0. 8. Public hearing to consider conveying 13.72 acres at northeast corner ot Hwy. TOO7ExceTsior BTvd. Mr. Dixon gave a brief update on where the proposed project is to date. The following members of the audience' addressed the Authority: Karen LeMay Coggins, Excel Neighborhood Assoc.; Mr. McKay, Frauenshuh Companies; Mr. Decoster, Park Nicollet Medical Center; Dennis Blennis, AAA; and Sue Ruff, 5009 40th St. W. and Bob Rheinhart. Mr. Decoster displayed a rendering of the proposed development. Concerns were expressed about the proposed closure of W. 39th St. and that the only access to AAA would be via Park Center Blvd. In answer to a question, Mr. Dixon said the intersection of Hwy. 100/Ex- celsior Blvd. is being explored in its entirety with respect to alternatives, the consequences and funding. At this moment, he was not able to say there was an answer or tentative decision on the Authority's part relative to anything being done to the intersection. Commissioner Friedman didn't want anyone to leave the chambers feeling there was a "done deal." There is not; the Authority had merely viewed a concept plan. He invited all attendees and interested parties to feel free to share their feelings and input with the Authority as the project evolves. Commissioner Haun commented on the intersection of Wooddale and Park Center Blvd. Although not exactly a part of the Tower Place project, it does tie in and signal upgrade is planned. Commissioner Hanks said he has had a tough time looking at the closure of W. 39th St. as noted in the rendering. He wanted to go on record now so that in the future planners would not be able to say they wished they had known a Commissioner was concerned about closure of the street. Mr. Steilen, in response to a question, said everyone involved in the project has been working non-stop and has run into some fairly significant problems with the MPCA and that is the reason the redevelopment agreement had to be put aside in order to deal with the MPCA on some environmental issues. Execution of the agreement may be delayed 60-90 days because the Clinic, at this point, feels it must know what the total costs are going to be and how they are going to be funded. It was moved by Commissioner Hanks, seconded by Commissioner Jacobs, to continue the hearing to Sept. 8, 1992. The motion passed 7-0. M IC R O F IL M ED EDA minutes July 6, 1992 5. r- J 9. Closed meeting - Threatened litigation This item was considered at the end of the formal meeting. 10. Communications and bills a. June 1992 financial statement It was moved by Commissioner Jacobs, seconded by Commissioner Haun, to receive for filing. The motion passed 7-0. b. Claims It was moved by Commissioner Jacobs, seconded by Commissioner Haun, to approve and authorize payment. 11. Adjournment The meeting adjourned into closed session at 7:08 p.m. Le--=4 l ) J Executive Director