HomeMy WebLinkAbout1995/12/18 - ADMIN - Minutes - Economic Development Authority - RegularS C A N N E D
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M IN U T E S
E C O N O M IC D E V E L O P M E N T A U T H O RI TY
ST . L O U IS P A RK , M IN N E SO T A
D ecem ber 18, 1995
1. Call to order
The meeting was called to order by President Hanks at 7:00 p.m.
2. Roll call
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The following Commissioners were present at roll call: Jeff Jacobs, Sue Sanger, Ron Latz, Robert
Young and Gail Dorfman.
Also present were the Executive Director (Mr. Meyer); EDA attorney (Mr. Steilen); Director of
Community Development (Mr. Harmening); Economic Development Coordinator (Mr. Anderson)
and Director of Finance (Ms. McBride).
3. Approval of minutes ofDecember 4, 1995
It was moved by Commissioner Jacobs, seconded by Commissioner Dorfman, to approve the
minutes. The motion passed 6-0.
4. Approval of agenda for December 18, 1995
It was moved by Councilmember Jacobs, seconded by Councilmember Dorfman, to approve the
agenda for December 18, 1995. The motion passed 6-0.
5. Unfinished business
a. Adoption of 1996 Economic Development Authority budget
It was moved by Commissioner Jacobs, seconded by Commissioner Young, to approve the
revised 1995 budget and the 1996 EDA budget.
The motion passed 6-0.
b. Resolution creating Development Fund
Resolution EDA 95- 7
It was moved by Councilmember Jacobs, seconded by Councilmember Dorfman to adcot
Resolution EDA 95-7 entitled "A resolution of the Economic Development Authority of the City
of St. Louis Park, MN authorizing the establishment of a Development Fund."
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T h e m o tio n passed 6-0 .
c. B u sin ess p o in ts - A ssisted L iv in g p ro je ct
R eso lu tio n E D A 9 5 -8
C o m m issio n er Y o u n g w as su p p o rt iv e o f th e id ea o f an assisted liv in g p roje ct at th is lo catio n ;
ho w ev er, his in cl in atio n w o u ld b e to su p p o rt th e p ro p o sal b u t to u tili z e th e 3/8 o p tio n to b rin g in
ad d itio n al rev en u e ov er th e 3 0 y ears to h elp co m p en sate fo r th e p o ten tial lo ss o f rev en u e an d
co ntrib u te m o re to th e D istrict o v er all .
C o m m issio n er D o rfm an ask ed if th e reso lu tio n d id n o t g iv e th e A u th o rity th e o p p o rt u n ity to
ren eg o tiate th e actu al term s o f th at in cen tiv e later.
M r. M ey er resp o n d ed th e w ay th e reso lu tio n w as w o rd ed g av e th e A u th o rity so m e latitu d e . An y
ch ang e fr o m th e 1/8 of 1 % w o u ld n ece ssitate staff m eetin g w ith th e d ev elo p er ag a in an d
att em ptin g to neg o tiate. H e co u ld n o t at th is p o in t say th at th e A u th o rity h a s an ag ree m en t fr o m
th e dev elo p er th at th ey w o u ld p ay an yt h in g u p to 3/8 o f a p ercen t
C o u n cilm em b er S ang er ask ed if, in o th er TI F -b a ck ed p roje cts, h a s th e C ity u sed th is ap p ro a ch at
th e 1/8th % lev el, at w h at lev el o r h as it b een d o n e at all . Al so w h y w a s it b e in g reco m m en d ed to
release th e p erso n al defi cien cy g u a ra n tees w h en th ere is an y o u tstan d in g T IF b a la n ce .
M r. M ey er said th is w as th e fi rst tim e; o n ev ery o th er TI F p roje ct, it h as stric tly b e en th e TI F th at
rep ay s th e ad v ance m ad e b y th e E D A In lig h t o f th e ev er-in creasin g co n stric tiv e leg isla tio n
co m in g fr o m th e L eg islatu re, staff fe lt it n eed ed to g o ab o v e an d b ey o n d w h at h a s b een d o n e in
th e past. A s to th e seco n d q u estio n , M r. Steil en resp o n d ed th e TI F b alan ce is p aid o u t o f th e rea l
estate tax es an d so it beco m e s a q u e stio n o f w h en is th e C ity co n v in ced th a t real esta te tax es are
g o in g to be p aid , n o m att er w h at. In th is in stan ce it is fe lt real estate tax es are g o in g to b e p a id o n
a $10 m illio n project -- w h o 's g o in g to w alk aw ay fr o m a $10 m illi o n p roje ct o n th e b asis o f
$16 0 ,0 0 0 -$17 0 ,0 0 0 w o rt h o f rea l estate tax es.
M ik e G o u ld , dev elo p er, ad d ressed co n cern s o v er p roje cted ra te s o f retu rn .
C o u n cilm em ber Jaco b s ask ed if th e reso lu tio n w ere p a ssed in its p resen t fo rm , co u ld sta ff d iscu ss
w ith th e dev elo p er th e in cen tiv e in th e fu tu re.
M r. M ey er refe ren ced th e fu rt h er reso lv ed sectio n o f th e reso lu tio n an d n o ted 3 p o in ts w ere m a d e
th erein : (1) th e ap p ro v al is p relim in ary an d n o n -b in d in g ; (2 ) th e E D A reserv es th e rig h t to m o d ify
th e bu sin ess p o in ts; and (3 ) it is reco g n iz ed th ere are a lo t o f la n d u se an d p la n n in g issu e s as y et
u nr eso lv ed . A p p ro v al of th e b u sin ess p lan d o es n o t m ean th e la n d u se w o u ld in so m e w ay b e
preju d iced .
It w as m o v ed by C o m m issio n er Ja co b s, seco n d ed b y C o m m issio n er S a n g er, to ad o p t R eso lu tio n
E D A 9 5 -8 en titl ed "R eso lu tio n p ro v id in g p relim in a ry ap p ro v al o f b u sin e ss p o in ts asso c iated w ith
P ark sh o re A ssisted L iv in g p roje ct as p ro p o sed b y G & P P ro p ert ie s, In c ."
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C A N N E D
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The m otion passed 5-0-1 (Com missioner Young opposed).
5d. Purchase of 4820 Excelsior Blvd.
Resolution ED A 95-9
M r. M eyer report ed the price of the parcel has been reduced in excess of $20,000 due to
negotiations of the Com m unity D evelopment department staff.
Com missioner Sanger noted that the staff recommendation includes the hiring of a pro perty
m anagement serv ice to m anage it after the Authority acquires it. She w ondered how much that
w ould cost.
President H anks noted in the financial statement that cost w as listed at $2100.
Attorn ey Steilen said the appro val of the resolution should be contingent upon making sur e the
title is all right w ith regard· to the easement.
It w as m oved by C om missioner Ja cobs, seconded by Com missioner D orfman to adopt Resolution
ED A 95-9 entitled "R esolution authorizing pur chase of property" contingent upon title being
clear.
) The m otion passed 6-0.
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Se. Purchase of 4540 Excelsior Blvd.
It w as m oved by Com missioner Ja cobs, seconded by Commissioner Dorfman, to appro ve the
purchase agreement.
The m otion passed 6-0.
6. N ew B usiness N one
7. U nfinished B usiness N one
8. C om munications and Bills
a. V endor claim s
It w as m oved by C om missioner Ja cobs, seconded by Commissioner Latz, to approve and
authorize paym ent.
The m otion passed 6-0.
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9 Adjournment
It was moved by Commissioner Jacobs, seconded by Commissioner Dorfman, to adjourn the
meeting at 7:24 p.m. The motion passed 6-0.
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