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HomeMy WebLinkAbout2003/12/01 - ADMIN - Minutes - Economic Development Authority - RegularArth. CITY OF ST. LOUIS PARK OFFICIAL MINUTES ECONOMIC DEVELOPMENT AUTHORITY ST. LOUIS PARK, MINNESOTA December 1, 2003 1. Call to Order President Brimeyer called the meeting to order at 7:22 p.m. 2. Roll Call. The following Commissioners were present at roll call: John Basill, Jeff Jacobs, Susan Sanger, Sue Santa, and President Jim Brimeyer. Commissioners Paul Omodt and Sally V elick were absent. Also present were the City Manager (Mr. Meyer); Director of Community Development (Mr. Harmening); Economic Development Coordinator (Mr. Hunt); and Recording Secretary (Ms. Samson). 3. Approval of Minutes 3a. Economic Development Authority Minutes of November 17, 2003 The minutes were approved as presented. 4. Approval of Agenda The agenda was approved as presented. 5. Reports Sa. Motion to accept and file vendor claim report It was moved by Commissioner Jacobs, seconded by Commissioner Santa, to approve vendor claims. The motion passed 5-0. 6. Old Business: None 7. New Business 7a. Annual Election of Economic Development Authority Officers It was moved by Commissioner Sanger, seconded by Commissioner Basill, to nominate Sue Santa for President. EDA Meeting Minutes -2- December 1, 2003 The motion passed 5-0. It was moved by Commissioner Santa, seconded by Commissioner Jacobs, to nominate Sally Velickfor Vice President. The motion passed 5-0. It was moved by Commissioner Basill, seconded by Commissioner Jacobs, to nominate Paul Omodt for Treasurer. The motion passed 5-0. 7b. Purchase and Redevelopment Contract with Oak Hill 3501 LLC (Anderson Builders) Economic Development Coordinator Greg Hunt reported on the consideration to approve the conveyan ce of EDA property located at 3501 Louisiana Avenue to Oak Hill 3501 LLC. Comm issioner Sanger said she opposes the agreement due to the totally open-ended potential liability the City would be taking on, and her preference is for Staff to negotiate a revised Indemnification Agreement. Director of Comm un ity Development Tom Harm ening said Staff an d the City's bond coun sel have tried to craft an agreement that puts the City in a similar situation after the deal as the City is before the deal. Mr. Harm ening said the Consent Decree, of which the City is a part y, requires that if the site is developed, a constru ction plan must be prepared and approved by the MP CA. Mr. Harm ening continued: The MP CA has approved the An derson Builders construction plan, and if An derson Builders deviates from that approved construction plan, then the City is indemn ified by An derson Builders from any claims associated with any deviations. Comm issioner Sanger does not want to put the City in the position of potential bankru ptcy by a catastrophic expense. Comm issioner Jacobs said the issue for him is: Is the City exposed to an y greater liability by going forw ard with the development than it otherw ise would have without it? Robert Lindall, the City's bond counsel from Kenn edy & Graven, said that on page 5 of the Kenn edy & Graven letter, it is ackn owledged that there is some minimal, incremental increase in risk to the City, i.e., the City would be indemn ifying the part ies, namely, the redeveloper and its successors, owners, lenders and so on; and the EDA would be obligated as an indemn itor whereas under the Consent Decree the EDA is not obligated- the City is. Mr. Lindall said the City would be increasing the duration beyond the finite life of the Consent Decree, and he expects it would be well beyond 30 years. Mr. Lindall stated that substan ces are being added for which there is a right of indemn ity. Kenn edy & Graven think s there is minimal risk because the building that is to be built has been approved by the PCA and the EPA. Mr. Lindall said response costs are subject to a CERCLA cap or caps. EDA Meeting Minutes -3- December 1, 2003 It was moved by Commissioner Basill, seconded by Commissioner Sanger, to defer this item to a Study Session and move forward at the next EDA meeting. C omm issioner Jacobs said he w ould like to discuss indemn ity in gr eater detail. C omm issioner Sanger w ould like to discuss possible alternatives and to have an in-depth discussion w ith K enn edy & G ra ven bond coun sel at the Study Session. C omm issioner Basill said m ore discussion is needed in regar d to the In demn ity A greem ent, and som e things may need to be tweaked. Like Commissioners Jacobs and Sanger, Commissioner Basill is satisfied with the purchase price. He would like to know what additional liability, if any, the City is taking on and how much of that additional liability the Council would be willing to assume, if any; and he would like to discuss how the agreement is drafted. Commissioner Basill said he would accept as a friendly amendment that this item return to a Study Session on December 8, 2003 and make a decision on December 15, 2003. President Brimeyer said the motion is to defer to a Study Session until December 8" with the expectation to come up with options or alternatives to the indemnity issue. The motion passed 3-2. (President Brimeyer and Commissioner Santa opposed). It was moved by Commissioner Sanger, seconded by Commissioner Basill, to continue the public hearing until December 15, 2003. The motion passed 5-0. 7c. Indemnification Agreement pertaining to Anderson Builders Purchase and Redevelopment Contract It was moved by Commissioner Sanger, seconded by Commissioner Jacobs, to continue to December 15, 2003. The motion passed 5-0. 8. Communications: None 9. Adjournment President Brimeyer adjourned the meeting at 7:55 p.m. ~~, Secretary gF©«4w o resident