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HomeMy WebLinkAbout2003/09/15 - ADMIN - Minutes - Economic Development Authority - RegularffhCITY OF ST. LOUIS 'ARK OFFICIAL MINUTES ECONOMIC DEVELOPMENT AUTHORITY ST. LOUIS PARK, MINNESOTA September 15, 2003 1. Call to Order President Brimeyer called the meeting to order 7:00 p.m. 2. Roll Call. The following Comm issioners were present at roll call: John Basill, Jeff Jacobs, Paul Omodt, Susan Sanger, Sue Santa, Sally Velick, and President Jim Brimeyer. Also present were the City Manager (Mr. Meyer); Director of Comm unity Development (Mr. Harm ening); Economic Development Director (Mr. Hunt); and Recording Secretary (Ms. Samson). 3. Approval of Minutes 3a. Economic Development Authority Minutes of September 2, 2003 Th e 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 Santa, seconded by Commissioner Jacobs, to approve vendor claims. The motion passed 7-0. 6. Old Business: None 7. New Business 7a. Public Hearing to consider a resolution approving conveyance of land by the St. Louis Park Economic Development Authority to Excelsior & Grand LLC EDA Resolution No. 03-11 Economic Development Coordinator Gr eg Hun t reported on the consideration of a resolution authorizing the tran sfer of certain EDA-owned property in the "Park Comm ons East 2" Addition" plat to Excelsior & Gr and LLC. Mr. Hun t said the redeveloper is proposing to construct a single, four-story building consisting of 120 owner-occupied housing units with underground parking, and about 4,500 square feet of retail space. E D A M in u te s -2- September 15, 2003 President Brimeyer opened the public hearing. It was m oved by Com m issioner Jacobs, seconded by Com m issioner Sanger, to close the public hearing. The m otion passed 7-0. It was m oved by Com m issioner Basill, seconded by Com m issioner Sanger, to adopt EDA R esolution No. 03-11 approving conveyance of land by the St. Louis Park Economic D evelopm ent Authority to Excelsior & Grand LLC. The m otion passed 7-0. 7b. Consideration of a Second Amendment to Redevelopment Contract with Meridian Properties (TOLD Development Company) Mr. Hunt summarized some business points in regard to the Second Amendment. Mr. Hunt said Phase NE was changed from 65 rental units and 45 owner-occupied units to 120 owner-occupied units. Retail space was reduced from approximately 6,000 square feet to 4,500 square feet. The EDA and the City grant the redeveloper a temporary right- of-access to the ED A's property reserved for Phase NW, and that property may be used for the excavation of soils to be used as fill in Phase NE in the installation of temporary parking. TOLD must provide the EDA with a letter of credit related to the cost of repairing Phase NW, should it become necessary. The EDA and the City grant the redeveloper early start rights in order to access the property reserved for Phase NE prior to conveyance of the property. The start date for Phase NE has been changed from July 1, 2003 to October 1, 2003, and the required completion date has been changed from September 1, 2004 to April 30, 2005. The completion date for the entire project remains unchanged at June 1, 2007. It was m oved by Com m issioner Om odt, seconded by Com m issioner Jacobs, to approve the Second Am endment to the Am ended and Restated Contract for Private Redevelopm ent By and Betw een St. Louis Park Econom ic D evelopment Authority and City of St. Louis Park and Meridian Properties Real Estate D evelopment LLC dated July 23, 2001. The m otion passed 7-0. 7c. Consideration of an Early Start Agreement with Excelsior & Grand LLC (TOLD Development Company) for Phase NE of the Excelsior & Grand redevelopment project It was moved by Com m issioner Sanger, seconded by Com m issioner Jacobs, to approve the attached E arly Start Agreem ent with Excelsior & Grand LLC (TOLD Development Company) for Phase NE of the Excelsior & Grand redevelopment project. Th e m otion passed 7-0. E D A M inu te s -3- Septem ber 15 , 2003 7d. Contract and Declaration of Covenants for Maintenance and Operation of Excelsior & Grand Public Improvements Community Development Director Tom Harmening reported on the special services contract and declaration of covenants. Mr. Harmening said the contract is being recorded against all of the properties in the project prior to property sales. Mr. Harmening said the contract refers to the owner of Lot 1, Block 1, the Park Commons Addition, which at this time is TOLD Development Company, and the contract runs with the land. It was moved by Commissioner Santa, seconded by Commissioner Jacobs, to authorize the President and Executive Director to execute the "Contract and Declaration of Covenants for the Maintenance and Operation of Excelsior & Grand Public Improvements." The motion passed 7-0. 7e. Edgewood Tax Increment Finance District. EDA Resolution No. 03-12 Mr. Hunt reported on the consideration of a resolution to establish the Edgewood Tax Increment Financing District (a soils condition district) within Redevelopment Project No. 1. Mr. Hunt said the three key findings to be made for this particular district are: 1) the district consists of one parcel of 251,748 square feet; 2) current taxable market value be $1,000,000 and the cost of demolition and clean up are in excess of $2,400,000; and 3) no delinquent taxes are owed on the property. President Brimeyer referenced a memo the City received from Hennepin County, Clerk File No. 12, and the memo states: "It appears that this TIF District satisfies the preference of the Hennepin County Board of Commissioners for use of tax increment financing, as identified in Resolution 92-10-017Rl, adopted 10/27/92." Bond counsel, Stephen Bubul, Kennedy & Graven, was available for questions. For City Council action on this item, see the City Council Minutes of September 15, 2003, item 6c. It was moved by Commissioner Velick, seconded by Commissioner Jacobs, to adopt EDA R esolution No. 03-12 modifying Redevelopment Project No. 1 and establishing the Edgewood Tax Increment Financing District and adopting a Tax Increment Financing Plan therefor. The motion passed 7-0. 7f. Contract for Private Redevelopment with Edgewood Investors LLC EDA Resolution No. 03-13 Mr. Hunt said the total issue of the pay-as-you-go note is $600,000; up to 17 years or $600,000, whichever comes first; the interest rate is 7.25%, however, if the Hennepin County loan comes in for the full $600,000, there would be a blended rate between the private redeveloper, their bank, and Hennepin County, and their interest rate would drop to three-quarters of one percent. EDA Minutes -4- September 15, 2003 It was moved by Commissioner Jacobs, seconded by Commissioner Omodt, to adopt EDA Resolution No. 03-13 approving a Contract for Private Redevelopment by and between the St. Louis Park Economic Development Authority and Edgewood Investors LLC. The motion passed 7-0. 7g. Commercial Rehabilitation Loan (CRLP) to Brookside Holdings LLC Mr. Hunt reported on the Comm ercial Rehabilitation Loan to Brookside Holdings, LLC. for construction of a building addition, parking lot, and utility improvements at 4046, 4050, and 4054 Brookside A venue. It was moved by Commissioner Basill, seconded by Commissioner Velick, to approve a Commercial Rehabilitation Loan in the amount of $75,000 to Brookside Holdings LLC and to authorize the President and Executive Director to enter into Participation and Intercreditor & Servicing Agreements with Voyager Bank of Eden Prairie according to the terms specified. The motion passed 7-0. 8. Communications: None 9. Adjournment President Brimeyer adjourned the meeting at 7:28 p.m. resident