HomeMy WebLinkAbout1999/04/19 - ADMIN - Minutes - Economic Development Authority - Regularl
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AUJ;,CITY OF
ST. LOUIS
PARK
OFFICIAL MINUTES
ECONOMIC DEVELOPMENT
ST. LOUIS PARK, MINNE SOTA
April 19, 1999
1. Call to Order
President Jacobs called the meeting to order at 7:00 p.m.
2. Roll Call
The followin g Commi ssioners were present at roll call: Chri s Nelson, Susan San ger, Jim
B ri m eyer, R on L atz, R obert Y oung and President Jeff Jacob s.
Also present were the Executive Director (Mr. Meyer); Economi c Development Coordinator (Mr.
An derson); D ir ect o r of C o mm uni ty D evelopment (Mr. Harm enin g); and Recording Secretary
(M s. O lson).
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3. Approval of minutes of April 5, 1999 meeting
T he mi nutes w ere appro v ed as presented .
4. Approval of agenda
4a. Approval of agenda of March 15, 1999 meeting
It w as m ov ed by C o mmi ssion er N elson, seconded by C o mmi ssioner S an ger, to appro ve the
agenda. T h e m otio n passed 6-0 .
5. Reports
Sa. Vendor Claim Report
It w as m ov ed by C o mmi ssioner L atz, seconded by C o mmi ssioner N elson, to accept the repo rt fo r
filing . T he m otion passed 6-0.
6. Old Business - None
7. New Business
7a. Annual Election of Economic Development Authority Officers
C ommi ssion er S an g er nomi nated R ob ert Y ou ng fo r President of the Economi c Development
Authori ty .
It was moved by Commi ssioner San ger, seconded by Commi ssioner Nelson, to elect Robert
Young as President of the Economi c Development Authority. The motion passed 5-0-1 with
Councilmember Young abstainin g.
Commi ssioner Young nomin ated Susan San ger for Vice President of the Economi c Development
Authority.
It was moved by Commi ssioner Young, seconded by Commi ssioner Latz, to elect Susan San ger
as Vice President of the Economi c Development Authority. The motion passed 5-0-1 with
Councilmember Sanger abstaining.
Commi ssioner Latz nomi nated Chri s Nelson for Treasurer of the Economi c Development
Authority.
It was moved by Commi ssioner Latz, seconded by Commi ssioner Brim eyer, to elect Chri s Nelson
as Treasurer of the Economi c Development Authority. The motion passed 5-0-1 with
Councilmember Nelson abstaining.
7b. Purchase of Single Family Home at 3744 Natchez Avenue South (Anderson
Property)
Mr . An derson noted that the seller's request for advan ce of relocation benefits was no longer
necessary .
It was moved by Commi ssioner Nelson, seconded by Commi ssioner San ger, to authoriz e the
President and Executive Director to enter into a purchase agreement for the property at 3744
Natchez Avenue South and to execute all necessary documents to complete the acquisition. The
motion passed 6-0.
7c. Amendment to a Lease between the St. Louis Park Economic Development
Authority and Stephen Gold and Classic Cafe and Bar
Commi ssioner Sanger asked staff to clarify whether the Commi ssion was being asked to extend
the date just to July 31st or extend it beyond that date.
Mr . An derson stated that it was a request to extend the date to July 31, 1999.
Commi ssioner Brimeyer didn't think that this was reasonable an d the City would certainly not be
prepared to demolish and start construction on July 31st.
Commi ssioner Young asked if staff knew when we would have a plan developed, approved and
ready to go to construction.
Mr . An derson stated that more details on scheduling w ould be presented to the Council on May
10t h.
Commi ssioner N elson stated he w ould like to see this com e back to Council at a market rate of
rent.
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It w as moved by Commi ssioner N elson, seconded by Commi ssioner Brim eyer, to approve an
am endm ent to the Lease dated February 2, 1999 betw een the St. Louis Park Economi c
D evelopm ent Authority an d Stephen I. G old individually an d dba Classic Cafe an d Bar. The
motion passed 6-0.
7d. Amendment to the Contract for Private Development entered into by SPS
Companies, Apex Realty, Inc. and the St. Louis Park Economic Development
Authority
It w as moved by Commi ssioner Brimeyer, seconded by Commi ssioner N elson, to appro ve the fir st
am endm ent to the Contra ct fo r Private D evelopm ent and D eclaration relating to the billboards
located upon the subject site The motion passed 5-1. Commi ssioner Latz opposed.
7e. Request for the EDA to sponsor a grant application to the DTED
Contamination Investigation and RAP Development Grant for the Mill City
Plywood Site
Resolution #99-2
C ommi ssioner San ger asked if the applican t had made any attempts to recoup from any prior
own ers of the pro perty the costs of envi ro nm ental investigation or remediation.
Mik e L ewi s, M SP R eal Estate In c., stated they had asked the seller, Mil l City Plyw ood, to share
in som e of the costs of investigation, but the seller w as not agreeable.
Commi ssioner San ger stated that a policy regar ding criteria used to consider gran t applications in
the fu tu re needed to be developed. She recomm ended that one of the criteria be a serious pursuit
of the seller fo r costs to cover envi ro nm ental rem ediation. She did not feel any previous own er
w ould part icipate in a finan cial agreem ent to clean up sites voluntari ly and felt legal action may
need to be tak en in these situations.
Commi ssioner Latz comm ented on the diffi culty of convincing a current own er who may or may
not have had an y direct involvem ent in contami nating the site to pay, an d felt it raised a host of
complex questions. H e w as concerned that there w as potential for being faced with
undevelopable lan d.
C ommi ssioner N elson suggested retaini ng an attorn ey on a contingent basis to look into these
claim s on behalf of the City or other part ies that may be faced wi th this situation.
Commi ssioner Brimeyer asked staff to clari fy the cost increase. Mr. An derson stated the increase
was reflected to ensure that the City is not left short in term s of funds that could be available to
investigate the site.
A representative from Payer Environm ental of Edina clarifi ed the exploration and evaluation of
the contamin ation on site.
Commi ssioner Brim eyer wanted the own er to understan d that there may be some contamin ation,
but poor soil may be a larger problem. He didn't think the EDA needed to commi t to any more
than the am ount the own er was agreeing to pay back to the EDA for our local share of the costs.
Commi ssioner Nelson asked if Commi ssioner Brim eyer was rulin g out public part icipation for bad
soils.
Commi ssioner Brimeyer indicated that this was his intent.
It was moved by Commi ssioner Latz, seconded by Commi ssioner Brimeyer, to approve a
resolution authorizing the Executive Director and President to submi t a grant application to the
Depart ment of Trade and Economi c Development Contami nation Investigation and RAP
Development Gr ant Program on behalf ofM SP Real Estate, Inc. The motion passed 6-0.
7f. Request for EDA Grant Sponsorship--DTED Contamination Clean-up Grant
Program and Met Council Tax Base Revitalization Grant; Park Land
Company -- Former Waldorf-Nevens Cleaners site
Resolutions #99-3 & #99-4
Mr . An derson, Economi c Development Coordinator presented a staff report.
Commi ssioner Sanger asked if the developer had agreed to do the 25% reim bursement.
Mr. An derson stated that the developer had agreed to this. Before an y grant proceeds are
disbursed there would be a form al agreement that the match would be paid back.
Commi ssioner San ger asked what efforts this property own er had made to seek contribution from
any prior own er responsible for contami nation.
Joshua Aar on, Park Land Company deferred question to Helen Brooks, seller of property.
Helen Brooks, 1044 Cedar View Drive, owner of property, explained background of
contami nation and diffi culty with pursuing form er tenant to take responsibility. She has been
investigating the contami nation.
Commi ssioner San ger stated that she believed the EDA is being asked to subsidize someone else's
responsibility and recomm ended that a policy regarding criteria to be used to consider future
grant applications needed to be developed.
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Ms. Brookes noted that there was a Dry Cleanin g Fund, but only the dry clean er could access that
fund. She pursued this dry cleaner to co-apply, but they were disqualifi ed because of an
additional spill.
Commi ssioner Nelson suggested that the Executive Director investigate some potential legislative
change that mi ght allow the Authority to tap into the Dry Cleani ng Fund.
Mr . Meyer, Executive Director said that the State had been setting these typ e of gran t funds for
the specific purpose of pursuading buyers and potential developers to clean up sites by allowin g
them access to some funding. He stated that EDA access to the Dry Cleani ng Fund could be
investigated, but felt pursuing litigation would not produce a reasonable settlement.
Rick Van Ellen of Summi tt Environm ental Solutions was present and comm ented on the nature of
the contami nation on site. He indicated that since Mi nnesota does not have a licensed hazar dous
waste lan dfill it would have to be shipped to Illinois and this was reflected in the increased cost.
It was moved by Commi ssioner Nelson, seconded by Commi ssioner Brimeyer, to approve a
resolution authorizi ng the Executive Director and President to submi t a gran t application to the
Depart ment of Trade and Economi c Development Contami nation Clean -up Gr ant Program on
behalf of Joshua Aar on and Park Lan d Company. The motion passed 6-0.
It was moved by Commi ssioner Nelson, seconded by Commi ssioner Young, to approve a
resolution authorizin g the Executive Director and President to submi t a gran t application to the
Metropolitan Council Tax Base Revitalization Gr ant Program on behalf of Joshua Aar on and Park
Lan d Company. The motion passed 6-0.
8. Communications and Bills - None
9, Adjournment
It was moved by Commi ssioner Nelson, seconded by Commi ssioner San ger, to adjourn the
meeting at 7:41 p.m. The motion passed 6-0.
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