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HomeMy WebLinkAbout1995/02/06 - ADMIN - Minutes - Economic Development Authority - Regular5 I MIN UTES ECONOMIC DEVELOPMENT AUTHORITY ST. LOUIS PARK, MIN NESOTA February 6, 1995 1. Call to order President Hanks called the meeting to order at 6:30 p.m. 2. Roll call l ) 3 The following Commissioners were present at roll call: Jeff Jacobs, George Haun, Allen Friedman, Ron Latz, Robert Young, Gail Dorfman and Lyle Hanks. Also present were the Executive Director (Mr . Meyer); EDA attorney (Mr . Steilen); Director of Community Development (Mr . Hagen); and Asst. to the City Manager (Mr . Larson). 3. Approval of minutes It was moved by Commissioner Jacobs, seconded by Commissioner Haun, to approve the minutes of the January 3, 1995 meeting. The motion passed 6-0-1 (Commissioner Dorfman abstained). 4. Approval of agenda It was moved by Commissioner Jacobs, seconded by Commissioner Dorfinan, to approve the agenda for February 6, 1995. The motion passed 7-0. 5. Reports a. Victoria Village tax increment finance plan Mr . Meyer gave a brief background on this proposed project. He said this evening the Authority was not acting on the proposal itself but rather on the financing of it. The proposal made to the EDA is to provide assistance to the developer for the Victoria Village housing project from TIF funds. In order to do that, the EDA would have to recommend, and the City Council ultimately approve, a tax increment financing district for the area. There are a number of different districts that can be created. In this particular proposal it has to do with a qualified housing district which puts restrictions on income levels and limits the type of development The staff recommendation is that in adopting a TIF district that the EDA consider creating a district to incorporate a somewhat larger area than the specific 11 or so acres of the Victoria Village site. Commissioner Friedman found it difficult to take a position when he didn't have any idea of what area was being looked at. He needed some delineation of the area under consideration or site specific. 1 Commi ssioner Dorfm an said by creating an enlarged District was the Authority commi tting itself to something beyond the project. President Hank s said he was not here to approve a TIF District; the motion was to direct staff to come up with ideas for an expanded District or only for a site specific plan. Fredrick Porter, 9255 W. 23rd St. and A. Conrad Posz, 9307 W. 23rd St. addressed the issue. Both were opposed to the use of tax increment financing for the Victoria Village project. Mary Roche, Administrator of Texas Terrace Convalescent Center, said the facility was adjacent to the Victoria Village project. She was present to express concerns that the Center has never received any formal notification of the proposal. She was concerned how the project might impact the Center's residents. Wendy Eisenberg, 2814 Pennsylvania, said she was concerned that the City Council also served as the Economic Development Authority and questioned if this might be a conflict of interest. Another concern was why was there concern about a TIF district when no specific plan for a project is in place. President Hank s talk ed briefly about the three existing TIF districts in the City and their positive impact. He said if a TIF plan were developed, no action would be taken until a project is approved. Mr. Hagen concurred, stating there was a schedule of approvals that must be secured before a bond sale can be held. Robert Swanson, 7700 W. 24th St., was opposed to tax increment financing. He thought money being directed to educational purposes was more worthwhile. John Walker, 2809 Oregon Ave., was opposed to the concept of more rental housing. He felt there was plenty of affordable housing available. Commi ssioner Latz asked if staff could address the issue of notice as raised by Ms. Roche. Mr . Hagen said meetings had been held in May, November and December. For the May and November meetings, notice to own ers of record within 200 ft. were notified; for the December meeting, the param eters were 600 ft. Commi ssioner Young referenced projected figures of senior households who would protentially move to this sort of project and asked about their origins. Mr. Hagen said he had the study from whence the figures cam e, but could not explain the methodology. He offered to prepare this for a later date. Commi ssioner Young asked if anyone had heard of other interest being expressed for the property. Mr. Hagen said Ms. Roche who spoke earlier had expressed some interest in acquirin g the property for an assisted living facility. Councilmember Latz said such interest was merely cursory at this juncture. 2 S C AN N E D ) I Commissioner Dorfinan had a comment: To direct staff to form a TIF district, if indeed that is the Authority's motion this evening, in no way abrogates the Authority's responsibility to critically look at all the other issues that come along with a project such as this. It was moved by Commissioner Latz, seconded by Commissioner Dorfinan, to direct staff to prepare a plan for a qualified housing tax increment financing district which would include the proposed site of Victoria Village at 28th and Virginia. Further, that staff do two things: to prepare a plan which would involve only the site at 28th and Virginia and prepare a proposed alternative as well involving an expanded TIF district. In support of Commissioner Friedman's comments, he felt it was necessary to have the facts in front of the Authority as exactly what an expanded TIF would look like. Commissioner Latz described where the project stood at this point in an effort to clarify some confusion that has arisen about it. To assuage concerns that the project could conceivably turn into a low income, less than desirable housing situation, he was prepared to recommend a term be put in the agreement that if the senior low income market does not fill the proposed development, that the TIF financing cease meaning the only way the project could proceed would be at market rate. He would also seek means to ensure that the construction was quality construction so that the development will be attractive to seniors who can afford market rates and protect the quality of the project from becoming a neighborhood blight rather than a neighborhood enhancement. He would also ask for a covenant that would restrict it to senior housing. Commissioner Young was not opposed to all TIF projects, but he was to this one. He reiterated it would become a drain on City services while not paying any money into the City. Nor will the County or School District accrue any benefits. Commissioner Friedman recalled that a development proposed for this land was hotely contested by the neigborhood who got the zoning changed. Now they are back again in opposition. And it can't be both ways. He asked that the two elements of Commission Latz' motion be separated. On the motion to direct staff to create a TIF district only for Virginia and 28th, the motion passed 6-1 (Commissioner Young opposed). On the motion to direct staff to create an expanded qualified housing TIF district, the motion passed 5-2 (Commissioners Friedman and Young opposed). b. Change order No. 4: Tower Place parking ramp Resolution EDA 95-1 Commissioners had a number of questions which Don Hackert of Kraus-Anderson was present to answer. 3 It was moved by Commissioner Dorfinan, seconded by Commissioner Jacobs, to adopt Resolution EDA 95-1 entitled "Resolution pertaining to change order No. 4 with Adolfson & Peterson, Inc. for EDA contract No. 8-93."° It was noted that the Authority has fulfilled its obligation of paying for the first $4.1 million for construction and that Park Nicollet will pay the remainder as well as change order costs. The motion passed 6-1 (Commissioner Friedman opposed). c. Parkshore Assisted Living business plan Mike Gould was present to answer questions. Mr. Meyer gave a brief update on what had transpired to date relative to this project. It was moved by Commissioner Haun, seconded by Commissioner Friedman, to direct the EDA attorney to prepare a proposed development agreement for the project with the financial terms as outlined in staff's report. Councilmember Young said it seemed the applicant would not be paying off the $800,000+ loan and asked for clarification. Mr. Hagen explained the market discount rate to be used and that increments would make up the difference, that the City would be repaid in full. The motion passed 6-1 (Commissioner Young opposed). 6. Other business None 7. a. Communications and bills Monthly financial statement for December 1994 and January 1995 It was moved by Commissioner Jacobs, seconded by Commissioner Dorfinan, to receive for filing. The motion passed 7-0. b. Vendor claims It was moved by Commissioner Haun, seconded by Commissioner Jacobs, to approve and authorize payment. The motion passed 7-0. 8. Adjournment The meeting adjourned at 8:00 p.m. 4 p I ht= Praline ±CANNED 1rector 5