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HomeMy WebLinkAbout1997/09/02 - ADMIN - Minutes - Economic Development Authority - RegularAUh CITYOF ST. LOUIS PARK GCANNEr MINUTES ECONOM IC DEVE LOPMENT AUTHORI TY ST. LOUIS PARK , MINN ESOTA September 2, 1997 1. Call to order President Jacobs called the meeting to order at 7:20 p.m. 2. Roll call The following Commissioners were present: Jeff Jacobs, Beverly Flanagan, Sue Sanger, Ron Latz, Robert Young, Gail Dorfman, Jim Brimeyer. Also present were the Executive Director (Mr . Meyer); Deputy City Manager (Ms. Kutzler); Director of Community Development (Mr. Harmening); Economic Development Coordinator (Mr. Anderson); City Clerk (Ms. Larsen) 3. Approval of minutes of August 18, 1997 meeting There being no additions/corrections, the minutes were approved as received. 4. Approval ofagenda for September 2, ]997 ' It was moved by Commissioner Latz, seconded by Commissioner Brimeyer, to approve the agenda. The motion passed 7-0. J 5. Reports-None 6. Old Business - None 7. New Business a. Elmwood Neighborhood soil remediation/alley improvements Resolution EDA 97-10 Commissioner Sanger did not believe this item was ever approved by the EDA; secondly, she felt it inappropriate to use any EDA funds or TIF funds to pay for any of the improvements. To her knowledge, no economic analysis has been done to show how improving some residents' private property could possibly be an improvement for the economic development of the community. With regards to TIF funding, she felt this was the type of proposal which gives rise to criticism in other communities. Commissioner Dorfman recalled that when the Council approved this project, there was discussion about the possibility of using development funds as a source. She asked for a rundown of the number of parcels involved and the range of costs for remediation. Staff provided background information. Comm issioner Fl an agan presented the April 7, 1997 Council minutes an d staff report to substan tiate her position that when approving the 50% City fun ding towards alley constru ction an d 100% towar ds soil remediation, that the Coun cil had been advised the remediation costs could be $250,000 - $300,000 an d that possible fun ding sources were the Development Fund or TIF . Comm issioner Latz said he would welcome an y suggestions fo r other fun ding sour ces. Comm issioner Dorfm an felt it might be helpful for staff to see how M inn eapolis has solved these sam e situations in their lead-contam inated neighborhoods. President Jacobs was not in favor of using Tax Increment Finan cing dollar s fo r thi s project an d agr eed wi th Comm issioner Latz that this was not the tim e to break faith with the neighborhood. He would support use of the Econom ic Development Fund dollar s for this project. It was moved by Comm issioner Flanagan , seconded by Comm issioner Brimeyer, to adopt th e resolution authorizing the assignm ent of City Developm ent Fund proceeds for the rem ediation of soils upon designated lots wi thin the Elmwood neighborhood an d authorizing the use of TIF fun ds for th e paving of alleys withi n said area. Comm issioner Youn g agreed wi th Comm issioner San ger an d that setting this kind of precedent was of concern to him . It did not seem reasonable to him that property own ers would not be required to pick up some portion of the proposed costs. Should this project go forw ard, he would like to see a cap of $8,000 for the City to pay, an d an ything above that would be for the property own er to pay. Comm issioner Dorfm an had tw o questions: define initially how the Developm ent Fun d was to be used an d secondly, what was th e ran ge of costs per par cel. Mr. Anderson said when the Development Fund was created the Authority's attorney reviewed the types of expenditures anticipated and a broader application of uses was proposed. Use of Development Fund moneys for this particular project at that time seemed appropriate. Commissioner Sanger suggested that the Authority develop a policy to establish criteria as to when the use of the Fund would or would not be appropriate. President Jacobs did not disagree but it was his recollection that the Fund was set up to be fairly flexible and to leave it fairly general. Mr. Meyer, addressing Commissioner Dorfman's question about the range of costs per parcel, said the lowest cost lot on the list of about 12 of the 15 lots was about $4,600. The highest was between $16,000 and $17,000. The motion passed 5-2 (Commissioners Sanger and Young opposed). 2 5 C A N N F ) l b. Modification of plans for redevelopment Project No. 1 and the Excelsior Blvd., Oak Park Village and Highway 7 Tax Increment Financing Districts Resolution EDA 97-11 In answer to a question from Commissioner Dorfman, Mr . Anderson believed the County Board was in support of the modifications as proposed, not just the remediation to the Brown fields as particularly noted in Mr. Spartz' letter It was moved by Commissioner Brimeyer, seconded by Commissioner Dorfman, to adopt the resolution approving modifications to the Redevelopment Plan for Redevelopment Project No. 1 and the modifications of Tax Increment Financing Plans for the Excelsior Blvd., Oak Park Village and Highway 7 Tax Increment Financing Districts. The motion passed 6-1. Commissioner Flanagan opposed stating that it was her opinion that the $2. 5 million improvement plan for Wolfe park did not appear in the public's best interest and hoped the park could be improved for less money. c. EDA attorney selection and contract authorization Resolution EDA 97-12 It was moved by Commissioner Young, seconded by Commissioner Flanagan, to adopt the resolution appointing the firm of Kennedy and Graven as the St. Louis Park Economic Development Authority attorney and authorize the President and Executive Director to execute an agreement with said firm. ) ) The motion passed 7-0. J 8. Communications and Bills a. Vendor claims It was moved by Commissioner Sanger, seconded by Commissioner Flanagan, to approve and authorize payment. The motion passed 7-0. 9. Adjournment The meeting adjourned at 7:50 on a motion by Commissioner Latz, seconded by Commissioner Young which passed 7-0. l ? 3