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I AUhCITYOF
S T. LOUIS
PARK
OFFICIAL MINUTES
ECONOMIC DEVELOPMENT AUTHORITY
ST. LOUIS PARK, MINNESOTA
December 20, 1999
1. Call to Order
President Young called the meeting to order at 7:23 p.m.
2. Roll Call
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The following Commissioners were present at roll call: Jeff Jacobs, Ron Latz, Sue Santa, and
President Robert Young.
Also present were the Executive Director (Mr . Meyer); Community Development Director (Mr .
Harmening); Economic Development Coordinator (Mr. Kleve); Planning Manager (Ms.
Jeremiah); and Recording Secretary (Ms. Olson).
3. Approval of Minutes
a. Approval of Economic Development Authority minutes of December 3, 1999
meeting
The minutes were approved as presented with the following change to 7a. Change "The motion
passed 4-3-0° to "The motion passed 4-0-3".
4. Approval of Agenda
4a. Approval of agenda of December 20, 1999 meeting
It was moved by Commissioner Latz, seconded by Commissioner Jacobs, to approve the agenda.
The motion passed 4-0.
5. Reports
5a. Vendor Claim Report
It was moved by Commissioner Santa, seconded by Commissioner Jacobs, to accept the report
for filing. The motion passed 4-0.
6. Old Business - None
7. New Business
7a. Zarthan Ave/16th Street Tax Increment Financing District
EDA Resolution # 99-18
EDA Meeting Minutes -2- December 20, 1999
Mr. Kleve, Economic Development Coordinator presented a staff report and recommended
approval. He summarized a memo from Sandra L. Vargas, County Administrator of Hennepin
County of 12/15/99 be entered into the public record at the public hearing. The memo stated that
the County sees this as a desirable and attractive development which is convenient and good for
the region, but they do not believe the TIF District is in conformance with the resolution that
they passed relating to TIF District. The resolution that they passed requires that the TIF District
either target public assistance toward lower income housing or to a redevelopment project that is
of great need.
Commissioner Latz asked what resolution was passed by the County.
Mr. Kleve indicated that the resolution was a general resolution that was supposed to be all
encompassing and it would include their policy on all TIF Districts and be used to review TIF
Districts. The City is required to notify the School District and County as part of the process and
open it up for their comment.
Commissioner Jacobs noted that the County was under the impression that this was going to be a
25 year TIF District and subject to the action of the EDA and Council tonight it would probably
be a 20 year TIF District.
President Young opened the public hearing
Joshua Aaron, 7600 West 14th Street, stated that the location of this property places us in the
heart of popular west suburban office district and within close proximity to numerous hotels,
restaurants, banks, health club and shopping centers that serve this area. It is assessable to
regional transportation, employment centers and four miles away from downtown. I have no
problem with the creation of the TIF District, but I am opposed to the proposed development. I
beg to differ with the EDA in its opinion that the proposed development would not reasonably be
expected to occur solely through private investment. We are talking about a property that is in
one of the best locations in the City. The property was purchased by CSM and Rottlund to the
north for a market price. We are now coming to the City and asking them to support a project
that requires help to buy down the price that land. Personally, I think they are underutilizing the
site and for that they are coming to the City to ask for help. We are not talking 4 million dollars,
rather 13 million dollars over the period of this TIF financing. I don't understand this enough,
but I do know that it doesn't make sense. We have an assessed value of the Honeywell site of
11.2 acres of $3,637,000, but yet this project cannot go forward because the land price is too
high, that may be true, but only because of the kind of use that they are trying to put into the
space. So again, I beg to differ that this cannot be developed without any assistance from the
City. I think there is some required, but of this amount.
Mr. Kleve indicated that the TIF District that is being considered is just the establishment of the
TIF District. The exact terms of the development agreement and the amount of TIF assistance
will be negotiated in a separate development agreement that will be brought before the EDA at a
different time.
President Young closed the public hearing.
EDA M eeting M inutes -3- December 20, 1999,
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It was moved by Commissioner Latz, seconded by Commissioner Jacobs, to adopt the resolution
establishing the Zarthan Ave/16th Street Tax Increment Financing District within
Redevelopment Project No. 1 and adopting the related Tax Increment Financing Plan therefor.
The motion passed 4-0.
8. Communications and Bills - None
9. Adjournment
It was moved by Commissioner Jacobs, seconded by Commissioner Santa, to adjourn the
meeting at 7:34 p.m. The motion passed 4-0.
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