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Home My WebLink About1994/06/20 - ADMIN - Minutes - Economic Development Authority - Regular5 I MINU TES ECONOMIC DEVELOPMENT AUTHORITY ST. LOUIS PARK, MINN ESOTA June 20, 1994 MICROFILMED 1. Call to order President Hanks called the meeting to order at 7:00 p.m. 2. Roll call I .J The following commissioners were present at roll call: George Haun, Ron Latz, Robert Young, Gail Dorfman and Lyle Hanks. Allen Friedman arrived shortly thereafter. Also present were the Executive Director (Mr. Meyer); EDA Attorney (Mr. Steilen); and Director of Community Development (Mr. Hagen) . 3. Approval of minutes It was moved by Commissioner Haun, seconded by Commissioner Latz, to approve the minutes of the June 6, 1994 meeting with one correction: Commissioner Young abstained as well as Commissioner Dorfman on the approval of the June 2, 1994 minutes. The motion passed 5-0. 4. Approval of agenda It was moved by Commissioner Dorfman, seconded by Commissioner Haun, to approve the agenda for June 20. The motion passed 5-0. 5. Reports a. Ramp management agreement The Authority had asked that the agreement come back with any changes that were in the agreement. At this point, the final agreement is not signed and when it is, it will be distributed. A memorandum before the Authority briefly outlined the changes which were minor in nature. It was moved by Commissioner Haun, seconded by Commissioner Dorfman to receive the report for filing. The motion passed 5-0. Councilmember Friedman arrived. b. Amendment to Frauenshuh redevelopment agreement for fast food facility Mr. Meyer said this item was before the Authority on June 6 at which time concern was expressed relative to the requirement to rebuild McDonald's should it be damaged in a fire. There had been discussion about a requirement to rebuild in case of fire. The 1 r e q u e s t f r o m F r a u e n s h u h to e l i m i n a t e th e r e q u i r e m e n t t o r e b u i l d w a s w i t h d r a w n b y th e m . T h e r e m a i n i n g is s u e r e g a r d e d p r o c e e d s o f a n y in s u r a n c e o r c o n d e m n a t i o n aw a r d g o i n g b a c k t o M c D o n a l d 's . H e d i d n 't b e l i e v e th e A u t h o r i t y h a d a n y o b je c t i o n t o th a t i s s u e . M r . S t e i l e n r e f e r e n c e d S e c t i o n 1 2 .4 (b ) w h i c h s t a t e s a c o n d e m n a t i o n a w a r d m u c h in th e s a m e se n s e a s in s u r a n c e p r o c e e d s w i l l b e p a i d t o M c D o n a l d 's , b u t a l s o s t a t e s n e i t h e r t h e r e d e v e l o p e r , g r o u n d le s s e e n o r a n y a n y o t h e r te n a n t o r s u b -t e n a n t s h a l l b e r e q u i r e d t o r e c o n s t r u c t o r r e s t o r e a n y p r o j e c t e l e m e n t . H e s a i d th i s w o u l d b e a ch a n g e to th e D e v e l o p m e n t A g r e e m e n t . A q u e s t i o n a r o s e a s to t h e co n d e m n a t i o n is s u e i .e ., c o n d e m n a t i o n b y w h o m . R e f e r e n c e w a s m a d e to a C o u n c i l a g e n d a i t e m w h e r e i n d e m o l i t i o n o f a b u r n e d b u i l d i n g is b e i n g r e c o m m e n d e d . M r . S t e i l e n f e l t t h e i s s u e r e f e r r e d t o c o n d e m n a t i o n f o r a n y p u b l i c u s e o r p u r p o s e w h i c h la n g u a g e d i s t i n g u i s h e s i t f r o m a s i t u a t i o n w h e r e i n a b u i l d i n g i s n o t i n co m p l i a n c e w i t h C o d e . M i c h a e l B r o b a c k , F r a u e n s h u h a t t o r n e y , s t a t e d M c D o n a l d 's c o n c e r n w a s r o a d c o n d e m n a t i o n , i .e ., u s e o f t h e w o r d s p u b l i c u s e o r p u r p o s e . C o m m i s s i o n e r L a t z f e l t a n y p u b l i c p u r p o s e w o u l d i n c l u d e s a f e t y p u r p o s e s i n c o n d e m n i n g a n u n s a f e b u i l d i n g . I f r o a d c o n s t r u c t i o n w a s t h e c o n c e r n , h e w o u l d l i k e to s e e th a t sp e l l e d o u t i n t h e A g r e e m e n t . H e w a n t e d t o m a k e c l e a r i f t h e r e w e r e a f i r e o r c a s u a l t y -r e l a t e d s i t u a t i o n t h a t t h e r e s t o f t h e A g r e e m e n t r e g a r d i n g r e b u i l d i n g t a k e p r e c e d e n c e . M r . S t e i l e n s a i d t h e r e is a c l a u s e th a t i f t h e r e i s l e s s t h a n 5 0 % d a m a g e t h e y h a v e t h e o b l i g a t i o n t o r e b u i l d ; i f i t i s m o r e th a n 5 0 % th e y d o n 't h a v e th e o b l i g a t i o n to r e b u i l d , b u t d o h a v e t o c l e a r th e p r o p e r t y . I f t h e y w e r e to v i o l a t e th e A g r e e m e n t , t h e E D A w o u l d h a v e th e a l t e r n a t i v e o f s u i n g u n d e r t h e R e d e v e l o p m e n t A g r e e m e n t ; f o r t h e C i t y , a r e m e d y w o u l d b e t o c o n d e m n t h e p r o p e r t y a n d i n th e ev e n t o f c o n d e m n a t i o n , t h e y w o u l d n 't o w n t h e p r o p e r t y a n y lo n g e r . H e fe l t b o t h th e E D A a n d C i t y w e r e c o v e r e d . C o m m i s s i o n e r F r i e d m a n a s k e d w h o w o r k e d th i s o u t w i t h F r a u e n s h u h . M r . S t e i l e n r e s p o n d e d t h a t c h a n g e s t o t h e o b l i g a t i o n t o r e b u i l d w a s w o r k e d o u t b y h i m s e l f a n d F r a u e n s h u h 's a t t o r n e y . T h e r e w a s c o m m e n t a b o u t s t a f f a n d t h e a t t o r n e y n o t r e c e i v i n g c h a n g e s o f t h i s n a t u r e i n t i m e to r e v i e w a n d t h e la t e n e s s i n g e t t i n g i n t o t h e A u t h o r i t y 's h a n d s . I t w a s m o v e d b y C o m m i s s i o n e r D o r f m a n , s e c o n d e d b y C o m m i s s i o n e r Y o u n g , to a p p r o v e t h e a m e n d m e n t to th e F r a u e n s h u h R e d e v e l o p m e n t A g r e e m e n t a n d a u t h o r i z e e x e c u t i o n . T h e m o t i o n p a s s e d 5 -1 (C o m m i s s i o n e r F r i e d m a n o p p o s e d ). c . A m e n d m e n t s to F r a u e n s h u h r e d e v e l o p m e n t co n t r a c t 2 r 5 I l ) ) / Mr. Steilen said Frauenshuh Companies is assigning their interest to a limited liability company which is owned 49%/49%/2% by David Frauenshuh, Randy McKay and Richard Wicka. The minor change here is that Wicka is included. He felt this change was not substantive but wanted the Authority aware. Secondly, Frauneshuh is ready to construct McDonald's and Minnesota Steak. The redevelopment agreement states that if there is firm financing on two project elements, they can acquire title to all the properties subject to the Redevelopment Agreement. And that title is what they have. The only concern the EDA might have is that when they transfer the real estate to Frauenshuh that they haven't waived their right of approval of plans and specs of the other two buildings as the EDA. The City will always have that right, but since the EDA operates on a different standard a sentence will be added that the EDA will continue to have the right to approve plans and specs for the other two buildings even though the real estate has been conveyed. It was moved by Commissioner Dorfman, seconded by Commissioner Latz, to approve the amendment language with the condition that the final wording be approved by the EDA's attorney. Commissioner Haun said he would vote for but remained concerned that in both 5b and 5c there was nothing for the Authority to read and decisions were based on verbal presentations. The motion passed 5-1 (Councilmember Friedman opposed) Commissioner Friedman said he was opposing because he was not comnfortable without a contract in front of him to read. 6. Unfinished business - None 7. New business - None 8. Adjournment It was moved by Commissioner Latz, seconded by Commissioner Haun, to adjourn at 7:35 p.m. Motion passed 6-0. 4 3