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HomeMy WebLinkAbout1993/06/07 - ADMIN - Minutes - Economic Development Authority - RegularMICROFILMED MINUTES ECONOMIC DEVELOPMENT AUTHORITY ST. LOUIS PARK, MINNESOTA June 7, 1993 I c? l. Call to order The meeting was called to order at 7:00 by President Keith Meland. 2. Roll call The following Commissioners were present at roll call: Jeff Jacobs, George Haun, Allen Friedman, Lyle Hanks, Larry Mitchell, Gail Dorfman and Keith Meland. Also present were the Executive Director (Mr. Meyer), Director of Public Works (Mr. Grube) and Director of Community Development (Mr. Hagen). 3. Approval of minutes ofMay 3, 1993 meeting It was moved by Comissioner Friedman, seconded by Commissioner Jacobs, to approve the minutes of the May 3, 1993 meeting. The motion passed 7-0. 4. Approval of agenda for June 7, 1993 It was moved by Commissioner Friedman, seconded by Commissioner Jacobs, to approve the agenda for June 7, 1993. The motion passed 7-0. 5. Reports a. Application to City of St. Louis Park for approval of Park Nicollet Hazar- dous Substance Tax Increment Financing Subdistrict It was moved by Commissioner Hanks, seconded by Commissioner Mitchell, to approve the application. The motion passed 7-0. 6. Unfinished business a. Resolution condemning parcel of land for Suburban Plumbing project. Mr. Hagen said Suburban Plumbing would like to get this project underway by September. Condemnation is being sought for a sma 11 sliver of land not controlled by the City, EDA or Apex, the landowner. It is owned by Pacific Investments, a company no one can locate. He said, in essence, the Authority is being asked to provide them an assistance package of minimumm $600,000, maximum of $900,000 with either the $600,000 or $900,000 to be paid back to the EDA from tax increment. Councilmember Friedman asked what would the interest rate be if the EDA were to give them $300,000. Mr. Hagen said it would be 8% which is the approxi ate cost of money at the time that the terms of the agreement were worked out. MICROFILMED Jim Voss, consultant to SPS, said a commercial loan would cost points over prime which would be 7±-8%. 1±-2% Councilmember Friedman didn't think the EDA should do business any differently from the rest of the world. He was concerned that all the financial nuances were not spelled out for the Authority. He was concerned about the Authority being tied in - thus liable - in a condemnation process. He was also concerned that no plan was before the Authority. He didn't feel there was adequate information. The City Attorney addressed the issues of condemnation vis-a-vis contamination. He said there was a State Statute which says a condemning authority wi 11 not be liable if its sole relationship to the contamination is that it acquired the property through condemnation. There is no comparable Federal statue. So, there might be some risk, but he felt it relatively small. He said the property owner has been in negotiation with the MPCA relative to remedial action. If an agreement is arrived at, chances are the Federal government will not get involved. Mr. Voss said SPS is undertaking renewal of the No Action letter from the MPCA and hoped to have it in hand by the end of the month. It was moved by Commissioner Hanks to condemn the parcel. The motion died for lack of a second. It was moved by Commissioner Friedman, seconded by Commissioner Haun to defer the matter and in the interim questions as posed by the Authority can be researched and the matter to come back to the Authority. Cammi ssi oner Haun asked that staff specifically address the questions raised rather than submitting a voluminous report to the Authority. President Meland felt the Authority should have in hand a No Action letter from the MPCA before making a decision. It was the consensus the matter return to the July 6 EDA meeting, provided all questions have been answered and the No Action letter has been received. Councilmember Friedman asked that a cost analysis also be provided prior to the July 6 meeting. The motion passed 6-1 (Commissioner Hanks opposed). 7. New business - None 8. Communications and bills a. Monthly financial statement It was moved by Commissioner Hanks, seconded by Commissioner Friedman, to receive for filing. The motion passed 7-0. b. Vendor claims It was moved by Commissioner Hanks, seconded by Commissioner Friedman to MICROFILMED for filing. The motion passed 7-0. 9. Adjourenment It was moved by Commissioner Jacobs, seconded by Commissioner Hanks to adjourn the meeting at 7:35 p.m. The motion passed 7-0. » ) J I O