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HomeMy WebLinkAbout1993/06/07 - ADMIN - Agenda Packets - Economic Development Authority - RegularA G E N D A EC O N OM IC DEV E L O P M EN T A U TH O R I T Y ST . LO U IS PAR K , M I NN ES O T A June 7, 1993 7:00 p.m, 1. Call to order 2. Roll call 3. Approval of minutes of 4. Approval of agenda for 5. Reports May s, 1ss3 asees, [) F/LJ aune 7 , 1 9 3 ()/!- 7-O 7-0 a. Application to City of St. Louis Park for approval of Park Nicollet Hazardous Substance Tax Increment Financing Subdistrict 6. Unfinished business Action: Motion to adopt resolution ) 7. New business 8. Communications and bills a. Resolution condemning parcel of land for Suburban Plumbin~J;!'! __ j/'J JAA ,/ project COUQ1 =/##, ., id.a j% c- a. Monthly financial statement pH/A 7- 0 s. aaass "[J g) 9 . Adjournmen t f ;_ Q . 7 35 7- 0 REQUEST FOR EDA ACTION DATE June 7, 1993 AGENDA SECTION: Reports NO. 5 ORIGINATING DEPARTMENT: Community Development ITEM±Appl1cation to City ror Approval APPROVED: of Park Nicollet Hazardous Substance NO. ax Increment Financing Subdistrict David Hagen, Director sad I BAC KG R OU N D According to the agreement entered into with PNMC Holdings (Park Nicollet) the Economic Development Authority is to use its best efforts to create a Hazardous Substance Tax Increment Financing Subdistrict to fund remediation and indemnification relating to the Belt Line Dump. Pursuant to state statute, copies of the proposed subdistrict plan have been provided to the County Board and School Board and both have been invited to discuss the proposed subdistrict with the City Council/EDA at the study session on June 14. State statute requires that the Economic Development Authority make application to the City and obtain approval of its plan by the City before the subdistrict is created. ) Recommendation By motion apply for approval of the Hazardous Substance Subdistrict from the City of St. Louis Park. 4 029:GEN41 PU 8 L IC WORKS FINANCE COMMUN I I ' UtVtLUH. Executive Director APPROVAL APPROVAL APPROVAL APPROVAL APPROVAL &t,,, .OTAINED OBTAINED OBTAINED OBTAINED OBTAINED .J - ACTION: MOTION BY 2ND BY TO REQUEST FOR EDA ACTION DATE June 7, 1993 AGENDA SECTION: Unfinished Business NO. 6 ORIGINATING DEPARTMENT: Community Development ITEM: Resolution Condemning Parcels of ,APPROVED: Land for Suburban Plumbing Projec f/ avid Hagen, Director NO. 6a BACKGROUND ) Synopsis: This memorandum deals with a request from Suburban Plumbing· Supply (SPS) that the EDA authorize condemnation of a parcel of land to be included in their proposed redevelopment site. It suggests that a second parcel not included in the redevelopment site be acquired at the same time because title is in the name of the same entity. Background In April of 1992 the Economic Development Authority authorized execution of an agreement with Suburban Plumbing for a redevelopment project consisting of parcels of land occupied by Suburban Plumbing, owned by the Economic Development Authority and City, dedicated as right-of-way for local streets and turned-back excess Highway 7 right-of-way. Condemnation Request With the exception of a long narrow sliver of land located between Highway 7 and the parcel occupied by SPS, fee title to all right-of- ways to be vacated for the development will revert to the City, EDA or owner of SPS property. The attached map highlights the parcel involved. Fee interest in the sliver of land will revert to Pacific Investment Company upon vacation according to a commitment for title insurance that has been issued for the development site. Attempts to locate Pacific Investment Company have been unsuccessful and it appears likely that the company has been dissolved. At the suggestion of EDA staff, Suburban Plumbing checked with their attorney to determine whether they could secure fee interest in that parcel more easily than the EDA can through condemnation. The attorney for SPS indicated that title could be established but that it would be simpler and more final for the EDA to acquire fee interest through condemnation. They have therefore requested that the EDA proceed to condemn the property. A resolution that may be used by the EDA to authorize acquisition of the property through condemnation will be available at the meeting. PUBL IC WORKS APPROVAL "AINED J FINANCE APPROVAL OBTAINED COMMUNL I1 UEVtELUH. APPROVAL OBTAINED APPROVAL OBTAINED Executive Director APPROVAL /•Q, OBTAINED UL/PT ACTION: MOTION BY 2ND BY TO Suburban Plumbing Project June 7, 1993 Page Two The agreement approved by the EDA in April of 1992 was never signed by Suburban Plumbing and the EDA and staff is working with the developer at this time on modifications to it. Construction costs for the project need to be determined before final agreement can be reached. Suburban Plumbing, however, is willing to post a letter of credit with the EDA out of which the EDA would recover its costs in the event that the deal is not consummated. It is Suburban Plumbing's goal to begin construction of the project by early September and in order to meet that schedule condemnation would need to be initiated at this time. In providing the letter of credit Suburban Plumbing is showing confidence that agreement will be reached with the EDA. Including Second Parcel in Condemnation Pacific Investment Company also owns a small triangular parcel of land just outside the development site and it is likely that fee interest in that parcel will also need to be acquired at some point. This parcel is also highlighted on the attached map. In view of the fact that Pacific Investment Company cannot be located and the fact that the parcels are subject to Highway 7 right-of-way easements, the court award for the fee interest should be minimal. Significant condemnation cost savings can be achieved if the second parcel is acquired in the same process as the first, even though it is outside of the development site. Recommendation Approve the condemnation resolution. 4027 : G E N 41 So ) > th a (' r I ' PARK'."; CO · ... •·. ····::O -------·· C z2 Co = o x g /\ y 6 1 u C: ,., 2NO z < a4 0 gee 36 A A All a • s s' Addendum EDA - 6A ME MORAN DUM To: Economic Development Authority THROUGH: Charles W. Meyer, Executive Director (U,77, FROM: David Hagen, Community Development Director'R/J DATE: June 7, 1993 SUBJECT: Cost Benefit Analysis for Suburban Plumbing (SPS) Project ) ? This memo identifies the costs and benefits to the EDA of the Suburban Plumbing project and provides additional information relating to the request of Suburban Plumbing to initiate condemnation. Costs According to the agreement that was negotiated with Suburban Plumbing but not signed, the EDA would provide assistance to Suburban Plumbing in the amount of at least $600,000. The EDA would provide additional assistance in the amount of up to $300,000 if SPS is unable to secure a loan for commercially prudent terms. Under the agreement, tax increments of at least $125,000 per year would be collected from 1994 through 2010 to pay off the Authority's costs. The guaranteed tax increment would increase by 11.3% of the amount of assistance provided over $600,000. The tax increments collected by the Authority will pay off the assistance being provided for the project. BENEFITS This project will result in the demolition of a number of structures in the redevelopment site that exhibit a blighting influence on the Highway 7 corridor. The project will also result in the elimination of two billboards in 1998 and the rerouting of overhead electrical lines away from Highway 7. The landscaping provided for the project is yet to be worked out but will be a significant aesthetic enhancement to the corridor. The proposed distribution warehouse facility will have relatively low peak traffic. As part of this project an area of soil that was contaminated by fuel oil leak has been excavated out and disposed of and the groundwater that was contaminated from the leak is being cleaned up. This 80,000 squ are foot building addition will add about $2.5 million to the tax base and about 25 additional warehouse jobs and 5 additional office jobs. 4034 :GEN41 RESOLUT ION of the ST. LOUIS PARK ECONOMIC DEVELOPMENT AUTHORITY AUTHORIZING EMINENT DOMAIN PROCEEDINGS PURSUANT TO MINN. STAT. CHAP. 117 ) BE IT RESOLVED THAT: WHEREAS, the City Council of the City of St. Louis Park (the "City Council"), being the governing body of the City of st. Louis Park (the "City"), on the 15th day of April, 1985, duly adopted Resolution Number 8547, the purpose and effect of which was to establish and designate the Highway 7 Development District (the "District"); and WHEREAS, the Development Program for the Highway 7 Development District (the "Development Program") sets forth functions and description of the Highway 7 Development District; and WHEREAS, the City Council has duly adopted Resolution Number 88-134, the purpose and effect of which was to establish and create the St. Louis Park Economic Development Authority; and WHEREAS, pursuant to said Resolution Number 88-134, the City assigned to the EDA all of its rights, title and interest with respect to all completed and ongoing development or redevelopment projects within the Tax Increment Financing District 85-1 located within the District, and the EDA assumed the liabilities, duties and obligations of the City so assigned; and WHEREAS, the EDA, pursuant to and as provided in Minnesota Statutes, Section 469.126, et seq., has all the powers necessary and convenient to carry out the purposes of said District; and WHEREAS, the purposes of said District are: to provide impetus for commercial development; to increase employment; to protect pedestrians from vehicle traffic and inclement weather; to provide the necessary linkage between peripheral parking facilities and places of employment and shopping; to provide off-street parking to serve the shoppers and employees of the district; to provide open space relief within the district; and to provide other facilities as are outlined in the development program adopted by the governing body, among other purposes; and WHEREAS, for said purposes, pursuant to and as provided in Minnesota Statutes, Section 469.126, et Seq. the EDA is authorized to acquire land or easements through negotiation or through powers of eminent domain. NOW THEREFORE, BE IT RESOLVED AND DETERMINED: 1. It is necessary to acquire the real property described in Exhibit "A" attached hereto (the "Property") in order for the EDA to carry out the purposes of the District to assure full utilization of property which is vacant, unused, underused and inappropriately used. 2. The acquisition of the Property by exercise of the power of eminent domain in the manner provided by Minnesota Statutes, 1945, Chapter 117, and any amendments or supplements thereto, is deemed to be necessary and is hereby authorized. 3. The EDA deems it necessary for the reasons set forth in the Development Program and supporting documents thereto, to proceed without delay under Minn. Stat. Sec. 117.042 to pay to the owner or into Court, a sum of money to secure compensation to the owners of the properties described in this resolution, which amount shall be equal to petitioner's approved appraisal of value as determined by staff. 4. The property to be acquired is legally described in Exhibit "A" attached to this Resolution. ) 5. Upon being furnished a bond, letter of credit or other cash security in the amount of $ to reimburse the EDA its cost of acquisition pursuant to an acceptable agreement to be executed by the EDA and the redeveloper, the EDA's attorney is authorized to prepare the condemnation petition and papers and to commence the condemnation proceeding. Adopted by the Economic Development Authority the __ day of __ , 1993. Attest: 2.360:S AK -2- E x h i bi t A Parcel J: Lot 1, Block 39, Rearrangement of St. Louis Park, together with that part of Dakota A venue, to be vacated, accruing thereto. (Abstract) Parcel L: That part of Lots 13, 14 and 15, Block 32, Rearrangement of St. Louis Park, East-West alley to be vacated and Brunswick A venue to be vacated, accruing thereto, lying Southerly of the following described line: ) Commencing at the Southeast corner of Section 17, Township 117 North, Range 21 West of the Fifth Principal Meridian; thence North 01 degrees 00 minutes 13 seconds East, assumed bearing, along the East line of said Section 17 a distance of 1401.57 feet; thence South 88 degrees 59 minutes 4 7 seconds East a distance of 1089. 98 feet to the point of beginning of the line to be described; thence South 64 degrees 28 minutes 14 seconds West a distance of 366.58 feet; thence Southwesterly along a tangential curve, concave to the Northwest, radius 3951. 70 feet, central angle of 07 degrees 00 minutes 02 seconds, a distance of 482.82 feet; thence South 71 degrees 28 minutes 16 seconds West, tangent to said curve, a distance of 128.39 feet; thence Westerly along a tangential curve, concave to the North, radius 973. 77 feet, central angle 19 degrees 47 minutes 50 seconds, a distance of 336.46 feet; thence North 88 degrees 43 minutes 54 seconds West, tangent to last said curve a distance of 426.23 feet and there terminating. (Abstract) June 7, 1993 EDA ) TO: Economic Development Authority THROUGH: Charlie Meyer, Executive Director (27 FROM: Don Rambow SUBJECT: May, 1993 EDA Monthly Statement The Combining Statement of Revenue and Expenditures, the Individual Statement of Revenue and Expenditures and Schedule of Investments provides, in summary form, the financial position of the EDA. Revenue collect i ans reflect interest received on investments which matured during May. Significant expenditures reflect payment to Hennepin County for first half property taxes. St. Louis Park Economic Development Authority Combining Statement of Revenue and Expenditures Budget and Actual For Period Ending May 31, 1993 YTD Balance Percent Collected/ Uncollec./ Collected/ Budget Expended Unexpend. Expended Revenue -------- --------- --------- --------- ------- Tax increment $2,331,371 $ $2,331,371 Rent 4,680 1,950 2,730 42 Interest 555,000 447,655 107,345 81 Land sale Transfers 4,057,652 504,000 3,553,652 12 Refunds & Reimburse 175,000 225,000 (50,000) --------- --------- --------- Total Revenue 7,123,703 1,178,605 5,945,098 17 --------- --------- --------- Expenditures ------------ Administrative Salaries 84,000 26,500 57,500 32 Employee benefits 17,170 5,345 11,825 31 Supplies & other chgs. 5,420 1,876 3,544 35 Legal 7,200 1,055 6,145 15 Contractual 1,700 480 1,220 28 Planning 10,000 5,051 4,949 51 ) --------- --------- --------- Total Administrative 125,490 40,307 85,183 32 --------- --------- --------- Project Cost Appraisal/survey Legal 75,000 23,337 51,663 31 Environ. analysis 43,300 22,222 21,078 51 Public improvement 6,743,500 359,763 6,383,737 5 Relocation/demolition 95,000 18,045 76,955 19 Property taxes 74,362 40,074 34,288 54 Acquisition 1,824,800 62,230 1,762,570 3 Envirn. Remediation 62,500 62,500 Referendum payment 340,000 340,000 Property Maintenance 16,500 705 15,795 4 Other services 30,500 1,879 28,621 6 Transfers 3,553,652 3,553,652 --------- --------- --------- Total Project Costs 12,859,114 528,255 12,330,859 4 --------- --------- --------- Debt Service Bond interest 504,000 252,000 252,000 50 Transfer 504,000 504,000 100 Inter-govt., City 620,000 620,000 100 Bond agent fees --------- --------- --------- Total Debt Service 1,628,000 1,376,000 252,000 85 --------- --------- --------- Total Expenditures 14,612,604 1,944,562 12,668,042 13 --------- --------- --------- Revenue over (under) Expenditures (7,488,901) (765,957)(6,722,944) 10 --------- --------- --------- --- St. Louis Park Economic Development Authority Individual Statement Of Revenue And Expenditures For Period Ending May 31, 1993 Excelsior Oak Park Trunk Capital Debt Revenue Blvd Village Hwy 7 Projects Service Total ------- --------- -------- ------- -------- ------- ------- Tax increment $ $ $ $ $ $ Rent 1,950 1,950 Interest 278,149 29,046 36,142 91,349 12,969 447,655 Transfers 504,000 504,000 Refund/reimburse 225,000 225,000 --------- ------- ------- ------- ------- --------- Total Revenue 503,149 30,996 36,142 91,349 516,969 1,178,605 --------- ------- ------- ------- ------- --------- Expenditures ------------ Administrative Salaries 11,695 5,825 8,980 26,500 Employee benefits 1,811 1,126 2,408 5,345 Supplies & other chgs. 1,031 395 450 1,876 Legal 352 352 351 1,055 Contractual 160 160 160 480 Planning 5,051 5,051 --------- ------- ------- ------- ------- --------- Total Administrative 20,100 7,858 12,349 40,307 --------- ------- ------- ------- ------- --------- Project Cost ) Appraisal/survey 23,337 23,337 Legal Environ. analysis 19,522 2,700 22,222 Public improvement 3,268 356,495 359,763 Relocation/demolition 18,045 18,045 Acquisition 62,230 62,230 Property tax 40,074 40,074 Referendum payment Property maintenance 705 705 Other services 94 1,785 1,879 --------- ------- ------- ------- ------- --------- Total Project Costs 105,045 423,210 528,255 --------- ------- ------- ------- ------- --------- Debt Service Bond interest 252,000 252,000 Transfer 504,000 504,000 Inter-govt., City 620,000 620,000 Bond agent fees --------- ------- ------- ------- ------- --------- Total Debt Service 1,124,000 252,000 1,376,000 --------- ------- ------- ------- ------- --------- Total Expenditures 1,249,145 7,858 435,559 252,000 1,944,562 --------- ------- ¢ ------- ------- ------- --------- Revenue over (under) Expenditures (745,996) 23,138 (399,417) 91,349 264,969 (765,957) --------- ------- ------- ======= ======= --------- ------- ------- 2 ST. LOUIS PARK ECONOM IC DEVELOPMENT AUTHORITY SCHEDULE OF INVESTMENTS MAY 31, 1993 Date Investments ®el llll l Ao Institution/Type Yield Purchase Maturity Balance ---------------- -------- -------- Park Investment- FNMA 5.15 12-03-91 06-10-93 $910,000 1st Banks - FC 5.21 12-03-91 08-02-93 950,000 Park National - C.D. 4.55 05-05-92 09-13-93 1,000,000 Park Investme nt - Treas. 4.67 06-02-92 09-30-93 975,000 1st Banks - FHL 6.09 10-25-91 10-25-93 2,250,000 Dain Bosworth-Treas. 3.59 10-26-92 11-15-935 2,513,944 1st Banks - FC 3.77 12-10-92 12-01-93 750,947 Dain Bosworth - FC 4.03 07-08-92 12-02-93 1,001,063 Park Investment - FNMA 4.08 07-10-92 01-10-94 966,699 Paine Webber - FHL 3.53 09-10-92 01-25-94 820,100 Dain Bosworth-Treas. 3.42 09-10-92 01-31-94 390,229 Park National - C.D. 3.75 02-02-93 01-31-94 500,000 1st Banks - FHL 3.92 08-10-92 02-25-94 465,443 1st Banks - FHL 4 .30 12-01-92 02-25-94 1,060,759 1st Banks - F HL 5.35 02-28-91 02-28-94 500,000 1st Banks - FC 5.80 04-01-92 04-04-94 1,000,000 Dain Bosworth-Treas. 3.75 10-13-92 04-15-94 1,013,055 ) 1st Banks - Treas. 4.18 11-02-92 04-30-94 1,050,000 Dain Bosworth - Treas. 4 .09 12-28-92 04-30-94 650,000 Dain Bosworth - FNMA 4.25 12-28-92 05-22-94 518,551 Park National - C.D. 3.50 03-01-93 05-22-94 1,000,000 Dain Bosworth - Treas. 3.61 03-31-93 07-31-94 1,015,208 Park National - C.D. 3.55 04-30-93 09-07-94 1,250,000 4M Fund Various Open 806,605 l A Ag a 4, Total Investments $23,357,603 ---------- Legend: C.D. = Certificate of Deposit C.P. = Conm ercial Paper F.C. = Farm Credit F.N.M.A. = Fed eral National Mortgage Assn. F.H.L.B. = Fed eral Home Loan Bank Treas. = U.S. Treasury Bonds Gov't Agencies = Term U.S. Government Securities 3 V E ND O R CL A IM S Ec on om i c D e v e l o p m en t A u th o r i ty -S t . L o u i s P a r k Ju n e 7, 19 9 3 V e n d o r D a v i d H a g e n H a z a r d o u s M a t e r i a l s A b a t e m e n t L a d e n 's B u s i n e s s M a c h i n e s M i n n P o l l u t i o n Co n tr o l A g e n cy C a r l t o n M o o r e N o r t h e r n S t a t e s P o w e r C o m p a n y O r r -S c h e l e n -M a y e r o n & Assoc. Popham, Haik, Schnobrich Strgar-Roscoe-Fausch, Inc. STS Consultants, Ltd. Westinghouse Remediation Svcs. Description Conference reimbursement Services Services Services Expense reimbursement Utilities/services Services Legal services-March Services Services Services TOTAL Amount $ 275.00 780.00 143.78 752.57 7 .96 1,956.82 1,035.00 29,993.47 4,598.66 1,683.57 11,727.00 $ 52,953.83 ) Accounting Dept. /n /4- Executive Director &...a k#,= y aesa 6/2 /33 Dated / P O P H A M , H A IK , S C H N O B R IC H , & KA U F M A N , L T D . REMIT TO MINNEAPOLIS OFFICE 3300 PIPER JAFFRAY TOWER 222 SOUTH 9TH STREET MINNEAPOLIS. MINNESOTA 55402 TELEPHONE 612-333-4800 DENVER OFFICE 1200 SEVENTEENTH STREET SUITE 2400 DENVER. COLORADO 80202 TELEPHONE 303-893- 1200 WASHINGTON OFFICE 1300 I STREET N.W. SUITE 500 EAST WASHINGTON, D.C. 20005 TELEPHONE 202-962--8700 MIAMI OFFICE 4000 INTERNATIONAL PLACE 100 S.E. SECOND STREET MIAMI. FL 33131 TELEPHONE 305-530-0050 C lient No: 11955 ?age: 22 St Lo u is Park Econom ic Cevelopm ent Authority April 26% 1953 ]\) a cc h l ian t/Matt±r Ii2e 11959 2 \ p, 5 f 4 O 14 15 16 13 St Lou is ?rrk Econom ic Jevelopm et Authority Laval II General Matters Meetings On the Avenue Project Subur an Plum bing 9roject Park Nicollet Project Touuer Site Environm ental Matters Water Touer Property Title Registration Park Nicollet ?edevelopm ent - Reim bursed Fees T O T A L S : • 7 s34.52 $s13.30 1.5 s262.50 5%0 0 40.3 s7,195%00 s113.35 2.0 s420.00 s.00 0 < s2,007.50 35%40 j t a 74 .5 s10,893%00 s253%35 3.0 :305.00 s7.3 0 33.0 $5%930%00 s1,391%55 f » e » s23,102.52 s1,390435 1 0 2 % 7 Popham, Haik, Schnobrich, & Kaufman, LTD. 3300 Piper Jaffray Tower • 222 So. 9th St. • Minneapolis, MN 55402 FEDERAL ID NUMBE? 41-0947885 A d d e n d u m J u n e 7 , 1 9 9 3 To: Economic Development Authority Through: Charlie Meyer, Executive Director~ From: Don Rambow Date: June 7, 1993 Subject: Additional claim The EDA entered into a contract with Herbst and Sons on April 19, 1992 for demolition of the Wilkens Pontiac site at 5100 Excelsior Boulevard. Herbst and Sons have completed 80% of the work and submitted a claim for $29,400.00. The EDA received and approved payment of the claim after the regular EDA claims list was prepared. Because the EDA will not consider paying claims again until July 6th, staff believes Herbst and Sons payment should not be deferred an additional thirty days. Recommendation It is recommended that the EDA approve the attached Herbst and Sons claim totaling $29,400.00 for demolition work. ) H E R B S T & SONS CONS TR. CO. INC. 2299 CO. RD H NEW BRIGHTON, MN 55112 ,ms, elephone 612/784-8510 BILL TO: CITY OF ST. LOUIS PARK 5005 MINNETONKA BLVD. ST. LOUIS PARK, MN 55416 CUSTO MER NO. 1252 CSLPl SHIP TO: CITY OF ST. LOUIS PARK 5005 MINNETONKA BLVD. ST. LOUIS PARK, MN 55416 DATE SHIP VIA TERMS 06/02/93 NET 30 PURCHASE ORDER NUMBER O UR ORDER NUMBER Verbal QUANTITY REQUIRED SHIPPED B.O. DESCRIPTION MIS MIS EXCE SIOR LVD. CONTRA T NO. 3-93 J0B 80% COMPLETE ( 34,500.00) V- ~ Pa g 1 DEMOLITION OF WILKINS PONTIA CHANGE ORDER NO. 1 ' ,«I • ,, UNIT PRt AMOUNT 27600.00 1800 .10 0 NonTaxable ubtotal Taxable Sub otal Tax Tot a 1 27600.0 1800.0 29400.0 . 0 • 0 29400.0 fak