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ST. LOUIS
PARK
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OFFICIAL MINUTES
ECONOMIC DEVELOPMENT AUTHORITY
ST. LOUIS PARK, MINNESOTA
July_19, 1999
1. Call to Order
President Young called the meeting to order at 6:35 p.m.
2. Roll Call
T he fo llo w ing C omm issio ners w ere present at roll call: Jeff Jacobs, Susan Sanger, Ron Latz, Sue
S anta, Jim B rim eyer and P resident R obert Y oung .
C o mm issio ner N elson arr ived at 6:4 5 p.m.
Al so present w ere the E x ecutive D irector (M r. M eyer); D irector of C om m unity D evelopm ent (Mr .
H arm ening); E conom ic D evelopm ent C o ordinator (Mr . An derson); and R ecording Secretary (M s.
Ol son).
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3. Approval of minutes of July 6, 1999 meeting
T h e m inutes w ere appro ved as presented.
4. Approval of agenda
4a. Approval of agenda of July 19, 1999 meeting
It w as m ov ed by C o mm issioner Ja cobs, seconded by C o mm issioner L atz, to appro v e the agenda. T he
m otio n passed 6-0 .
5. Reports
Sa. Vendor Claim Report
It w as m ov ed by C o m mi ssion er Ja cobs, seconded by C omm issioner L atz, to accept the report fo r
fil ing . T h e m otion passed 6-0.
6. Old Business - None
7. New Business
7a. Review of Draft Redevelopment Contract for the Medical Office Development
Proposal the Southwest Corner of Highway 7 and Louisiana Avenue
EDA Minutes -2- July 19, 1999
Mr. An derson, Economi c Development Coordinator presented a staff report highlighting primary deal
points and noted that the developer would be required to finance signalization at Lake Street and
Louisiana A venue. He confi rmed that this draft did not include any different information from the draft
the Commissioners reviewed in March and that Staff was asking the EDA and City Council to
consider and adopt the agreement prior to August 1, 1999 in order to satisfy the requirement under
the current Section 116J.991 of State Statute. Aft er August 1, 1999, local governm ents will be
required to develop, monitor and report business subsidies in a manner that is more bur densome to
local governments and business. He stated that the Preliminary PUD application is scheduled for
review by the Planning Commission on July 21, 1999.
Staff did not request any action by the board at the meeting and intends to bring the final development
agreement back to the Economic Development Authority and City Council for final review and
approval at a special Council and EDA meeting on July 26, 1999.
7b. Amendment to Lease between the St. Louis Park Economic Development
Authority and Stephen I Gold and Classic Cafe and Bar
Mr. An derson, Economic Development Coordinator presented staff report and indicated that staff had
discussed this proposal with the tenant and he was agreeable to the terms.
Commissioner Brimeyer stated that if the tenant was not agreeable to the extension he would of
argued against this because of the inconvenience.
Commissioner Latz asked if the tenant's business was suffering from the uncertainty.
Mr. An derson stated that the tenant had indicated that he recognized some decrease in traffi c, but had
no actual numbers.
Commissioner Jacobs was in favor of the amendment and commended staff for their successful
negotiations.
Commi ssioner Nelson asked if the tenant had any plans to relocate the business.
Mr. An derson stated that the tenant had only indicated his desire to relocate his business in St. Louis
Park, but did not provide any additional details.
Commissioner Nelson didn't believe that the tenant had a long term interest in St. Louis Park because
he was not exploring relocation and believed the tenant would run the business until he has to close it
because the City was going to tear it down. He hoped the tenant would relocate, and noted that
Bunn y's was in this exact same predicament and choose to relocate because it wanted to be in St.
Louis Park long term and was financially benefiting from that decision. He believed that the Classic
seemed to be very busy and wasn't suffering to any great extent and had been paid well for his pain
and suffering and noted that it was not just a below market rate on the lease, but the tenant was also
receiving free storage space, the basement space, the fixtures and equipment that the City owned.
Commissioner Nelson believed this did not go far enough and that the tenant had a good deal, was
making a good deal of money and the City was subsidizing him. He desired to see the base lease rate
closer to market rate.
E D A Mi nutes -3-
4 A4 "Dp July 19, 1999
President Y oung noted that in addition to the m onthly lease ra te, he w as paying signi ficant m onthly
costs incl uding pro pert y taxes, utilities, m aintenance, repair and insura nce.
It w as m oved by C om m issioner Sanger, seconded by C omm issioner Jacobs, to extend the lease dated
Febru ary 2, 19 99 betw een the St. L ouis Park E conom ic D evelopm ent Author ity and Stephen I. G old
individually and dba C lassic C afe and B ar to M arch 3 1, 2000 and increase the base lease ra te to
$8,000 per m onth effective Septem ber 1, 1999. The m otion passed 6-1. C omm issioner N elson
oppo sed.
8. Communications and Bills - None
9. Adjournment
It w as m oved by C om mi ssioner N elson, seconded by C om mi ssioner Sanger, to adjourn the m eeting at
7:00 p.m . The m otion passed 7-0.
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