HomeMy WebLinkAbout1993/07/19 - ADMIN - Agenda Packets - Economic Development Authority - Regular9
A G EN DA
E C O N O M I C DEV EL O PM EN T A U T H O R IT Y
S T . L O U I S PAR K , M INN E S O T A
Ju ly 19, 1993
7 :0 0 P .M .
1. Call to order
2. Roll call
3. Approval of minutes of July 6, 1993 meeting 4 a o
4. Approval of agenda for July 19, 1993 3GH to O
)
5. Public Hearings
a. Approval of contract for private development: SPS Companies HJ -o 6. Reports
a. Request of Frauenshuh Companies for permission to construct
two temporary signs at Tower Place site )J/GI} (-
b. Update: Wilkins Pontiac - Site preparation activities
(closed meeting - pending litigation)
7. Unfinished Business
8. New Business
9. Communications and Bills
10. Adjournment
7:07
REQUEST FOR EDA ACTION
July 19, 1993
DATE
AGENDA SECTION:
NO. Public Hearings
ORIGINATING DEPARTMENT:
Community Development
ITEM:?
Approval of Contract for Private
No. Development with SPS Companies, Incl
APPROVED:
ul David Hagen, Director
B A C K G R O U N D
At the July 6 EDA meeting a public hearing to consider the approval a
contract for private development with SPS Companies, Inc., was
established for July 19. At that meeting it was pointed out that SPS
can acquire fee interest to the Pacific Investment parcel through a
qu iet title or regis·tration procedure and that therefore EDA
condemnation will not be requ ired. Attached is a contract for private
development drafted by the EDA's attorney which reflects this change
in the deal. Attached also is a resolution that may be used by the
EDA to approve the contract for private development and a schedule for
implementation of the project.
)cost and Cost Recovery
Under the agreement the EDA will provide $600,000 of assistance to
stimulate this redevelopment project to occur. The $125,000 of
guaranteed annual tax increment from the project will more than pay
off the EDA's cost. Under the agreement the EDA is required to
provide up to $300,000 of additional assistance if the developer is
unable to secure a perm anent loan for comm ercially prudent term s. The
developer has agreed to increase the guaranteed level of tax increment
to insure that those increased project costs are paid off.
Project Benefits
This project will result in the demolition of a numb er 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 electric lines
away from Highway 7. Final landscaping plans for the project have not
yet been worked out but the landscaping provided will be a significant
aesthetic enhancement to the corridor. As part of this project an
PU B L IC WO RKS [FINANCE COMMUNITY UEVELUH. Executive Director
APPROVAL [APPROVAL [APPROVAL [APPROVAL [APPROVAL // -
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ACTION: MOTION BY 2ND BY TO
A p p r o v a l o f C o n t r a c t f o r
P r i v a t e D e v e l o p m e n t w i t h S P S , I n c .
J u l y 1 9 , 1 9 9 3
P a g e 2
a r e a o f s o i l t h a t w a s c o n t a m i n a t e d b y f u e l o i l l e a k h a s b e e n e x c a v a t e d
o u t a n d d i s p o s e d o f a n d t h e g r o u n d w a t e r t h a t w a s c o n t a m i n a t e d f r o m t h e
l e a k i s b e i n g c l e a n e d u p . T h i s 8 0 ,5 0 0 s qu a r e f o o t b u i l d i n g a d d i t i o n
w i l l a d d a b o u t $2 .5 m i l l i o n t o t h e t a x b a s e a n d a b o u t 2 5 a d d i t i o n a l
w a r e h o u s e j o b s a n d 5 a d d i t i o n a l o f f i c e j o b s .
RECOMMENDATION
Hold the public hearing to consider the conveyance of property by the
EDA for the project; by motion approve the resolution approving the
contract and authorizing its execution and signatures.
4 238:GEN41
) RESOLUTION NO.
RESOLUTION APPROVING CONTRACT FOR
PRIVATE DEVELOPMENT WITH
SPS COMPANIES, INC.
AUTHORIZING ITS EXECUTION;
AUTHORIZING SIGNATORS ON THE
DEED OF CONVEYANCE AND GROUND LEASE ASSIGNMENT
)
WHEREAS, the St. Louis Park Economic Development Authority (EDA) is
responsible for the development program for the Highway 7 Corridor that was established
pursuant to Tax Increment Financing District 85-1 (District 85-1); and
WHEREAS, the development program includes site acquisition; and
WHEREAS, the EDA is the owner of a number of parcels of land in District 85-1; and
WHEREAS, a proposed Contract for Private Development by and between the
Economic Development Authority of the City of St. Louis Park and SPS Companies, Inc.
(Redeveloper), wherein the EDA would acquire fee interest in part of the site contemplated
for redevelopment, receive assignment of a ground lease for the entire site contemplated for
redevelopment and convey and assign, respectively, those interests to the redeveloper, has
been reviewed by the EDA; and
WHEREAS, a public hearing on the proposed sale of land was held at 7:00 p.m., July
19, 1993 pursuant to published notice of the hearing in the St. Louis Park Sailor, a
newspaper of general circulation in Hennepin County and the City of St. Louis Park, at least
10 but not more than 20 days before the hearing, pursuant to Minnesota Statute Chapter
469.105 Subd. 2; and
WHEREAS, proposed Preliminary Plans for the Minimum Improvements under the
Contract for Private Redevelopment have been reviewed by the EDA;
NOW THEREFORE be it resolved by the Board of Commissioners of the Economic
Development Authority of the City of St. Louis Park as follows:
1. That the Contract for Private Redevelopment referred to above is hereby
approved.
2. That the execution of the Contract for Private Redevelopment by the
President and Executive Director of the EDA is hereby authorized in
substantially the form presented.
3. That the President and the Executive Director of the EDA are hereby
authorized to executive a deed of conveyance and ground lease assignment
and other documents related to the conveyance of the property under the
terms and conditions contained in the referred to Contract for Private
Redevelopment.
4 . That the Preliminary Plans for the Minimum improvements under the
Contract for Private Redevelopment are hereby approved.
Adopted by the Economic Development Authority on July 19, 1993.
Keith Meland
President
Attest:
Charles W. Meyer, Executive Director
4235:GEN30
7 -1 5 -9 3
) SUBURB AN PLUMBING SUPPLY (SPS) COMP ANIE S
REDEVELOPME NT PROJECT SCHEDULE
July 6
July 19
July 21
August 2
August 9
August 10
August 16
)
O
August 25
September 1
September 7
September 10
September 13
September 17
September 20
December 1
December 20
Jan. 19, 1994
Feb. 7, 1994
Feb. 10, 1994
Feb.21, 1994
Mar. 17, 1994
Mar. 18, 1994
Mar. 20, 1994
EDA sets public hearing for July 19 on agreement
EDA holds public hearing on agreement and authorizes execution
Planning Commission (PC) considers and recommends vacations and
conveyance (of land from City to EDA); Final legal descriptions for
vacation submitted
CC holds public hearing on vacations and conveyance and approves
first reading of vacations (subject to easement on W 36 1/2 Street, the
west one-half of Brunswick Avenue and Pacific Investment Parcel and
land west of P .I. Parcel) and conveyance ordinances
SPS secures financial commitment and satisfies other conditions
precedent to vacation and conveyance
SPS commences registration or quiet title action on Pacific
Investments (PI) parcel
CC approves second reading of vacations (except Pacific Investment
Parcel) and conveyance ordinances
Conveyance ordinance published in Sailor
Vacation ordinance published in Sailor
SPS commences demolition
Conveyance ordinance effective
City conveys land to EDA; EDA conveys land to SPS
Vacation ordinance effective; Building permit issued
SPS commences construction
PC approves preliminary plat
CC approves preliminary plat
PC approves final plat
CC approves final plat
SPS's registration or quiet title action complete
CC approves second reading of vacation ordinance for P.I. parcel
Vacation Ordinance for PI parcel effective
Plat filed
Construction complete 4171:GEN40
RE Q U E S T FO R E D A A C TIO N
DATE July 19, 1993
AGENDA SECTION: Reports ORIGINATING DEPARTMENT:
[, Community Development
NO. 5 \V
ITEM: Request for Permission to Construe ~PP~V.ED:
Two Temporary Signs at Tower Place David Hagen, Director
No. Site,from Frauenshuh Companies
®\do
BACKGROUND
Attached is a request that has been received from Frauenshuh Companies
for construction of two temporary signs measuring 8 feet by 10 feet
and 8 feet by 8 feet in size. Attached to the letter are a drawing of
the sign and a diagram showing the. approximate location of the sign on
the site. As indicated in the letter, the signs and locations will
comply with the City of st. Louis Park sign and ordinance code.
RECOMMENDATION
By motion grant permission to Frauenshuh Companies to construct the
two signs as proposed.
4 234:GEN41
)
PUBLIC WORKS [FINANCE COMMUNL1 UtvtLUH. ,Executive Director
APPROVAL [APPROVAL [APPROVAL [APPROVAL [APPROVAL //_ (]
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ACTION: MOTION BY 2NDBY TO
F RA UE N S HUH C O M PANIE S
A DIVERSIFIED PROPERTIES GROUP
July 13, 1993
Mr. Dave Hagen
5005 Minnetonka Boulevard
St. Louis Park, Minnesota 55416
Dear Mr. Hagen:
This letter will serve as a request for permission from the
Economic Development Authority to construct two temporary signs for
the Tower Place Retail Development.
One 8'x 10' sign will be placed facing Park Center Boulevard and
one 8'x 8' sign will be placed facing Excelsior Boulevard (see
enclosed plan for approximate locations). The signs and locations
comply with the codes set by the City of St. Louis Park and will
indicate "Retail space for lease."
Please do not hesitate to call should you have any questions. Your
help in this matter will be much appreciated.
sincerely, /
2i s4
Trynk&aben «
TS/ml
Enclosure
cc: John Decoster
Randy McKay
Richard Wicka
Ernie Peterson
180 EAST FIFTH STREET ST. PAUL. MINNESOTA 55101 (612)228-9456
Equal Opportunity Employer
g 7]/4 PHONE NO. 02
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•
CONFID ENTI AL
ATTORNEY -CLIENT
PRIVILEGE
TO:
TH ROUGH:
FROM:
DATE:
SUBJECT:
James Steilen, EDA Attorney
Charles W. Meyer, Executive Director
James N. Grube, Director of Public Works
July 19, 1993
Environmental Issues - Wilkins Pontiac Site
Synopsis: This report provides an update on the demolition and environmental
remediation activities at the Wilkins Pontiac (Wilkins) site.
Background: On April 26, 1993 staff provided the Economic Development
Authority (EDA) an update of activities which had been completed and/or
ordered to render the Wilkins site available for redevelopment by July 1. As
of July 21, all site demolition activities have been completed; however, a
significant number of environmental remediation tasks remain. The remediation
tasks are related to the following on-site elements:
1. Fuel oil tank spill.
2. Disposal of engine parts and used oil.
3. Leakage of floor pits and hydraulic fluid tanks.
) Fuel Oil Tank Spi]]
As reported in previous memoranda, a heating oil tank was removed from the
west central side of the Wilkins building in 1992. In conjunction with the
tank removal, 100 cubic yards of fuel oil impacted soils were removed and
delivered to a local contractor for thermal treatment and disposal. In
conjunction with the Wilkins building demolition, approximately 10 cubic yards
of additional fuel oil impacted soils were excavated and hauled to the
contractor's facility. July 13 conversations with Minnesota Pollution Control
Agency (MPCA) staff indicates that the MPCA will issue a "closure" letter to
the EDA upon completion of documentation and final submittal.
Disposal of Engine Parts and Used Qi]
On March 15, 1993 staff reported that on-site washing and disposal of small
engine parts and the discard of used oil had impacted soils along the north
side of the Wilkins building. To date, approximately 14 cubic yards of
hazardous soils have been excavated and shipped to federally approved waste
disposal facilities in Oregon, Ohio. In addition, approximately 64 cubic
yards of lead impacted soils have been shipped to approved facilities in
Rosemount, Minnesota. Follow-up analyses of soil conditions have identified
an additional 60 cubic yards of lead impacted soils which have been stockpiled
on site and a potential 25 additional cubic yards which must be excavated and
prepared for shipment to the Rosemount facilities.
It appears that the soils were impacted by the engine part washing and used
oil disposal practices over the years.
(continued)
Memo to Steilen
July 19, 1993
Page 2
Leakage of Floor Pits and Hydraulic Tanks
One aspect of the site demolition/environmental remediation activities which
was not anticipated was the discovery of leaking floor pits and drains and
hydraulic tanks and vaults. To date approximately 550 cubic yards of used oil
impacted soils have been encountered, below the pits, and vaults. The
material has been stockpiled and analyzed in preparation for thermal
treatment. July 13, 1993 discussions with MPCA staff indicate it is likely
that thermal treatment and disposal of the soils will be accepted as an
adequate remediation action.
Although a significant quantity of used oil impacted soils has been generated,
soil borings have located approximately 100 cubic yards of similarly impacted
soils to a depth of approximately 20 feet. July 13, 1993 discussions with
MPCA staff indicate the MPCA will likely accept an EDA proposal that the
material be excavated and thermally treated similar to the 550 cubic yards of
stockpiled material.
Proposed Action
Based on July 13, 1993 conversations with MPCA staff, EDA staff has directed
the EDA's environmental consultant to submit a material handling and disposal
plan for review/approval by the MPCA. As noted above, the disposal of the 85
cubic yards of lead impacted soils will occur at Rosemount, Minnesota
facilities under an amendment to a previously approved plan which addressed
the initial 64 cubic yards encountered in March/April.
The EDA's consultant will submit a material handling/disposal plan for the 650
cubic yards of used oil impacted soils to the MPCA the week of July 19, 1993.
MPCA response is expected on or about August 1. During the waiting period EDA
staff will solicit proposals for the soil excavation, soil transport, and soil
disposal. Soil excavation can (and will) occur before MPCA plan approval is
given; however, the material cannot be moved until approval is received.
Staff anticipates the MPCA will release a "no action" letter to the EDA when
the lead impacted soils have been shipped to the Rosemount, Minnesota
facilities and the used oil impacted soils have been thermally treated.
Financial Considerations: On April 26, 1993 staff reported to the EDA that
the total Wilkins site preparation budget had approached $148,000, nearly
$90,000 less than the funded budget. Based on recent staff estimates, the
budget will increase significantly (over the expended budget of $148,000).
Following is a summary of the estimated budget increase:
1. Engineering - it is likely the EDA's consultant will seek an additional
$20,000 (existing contract is $55,320).
2. Fuel oil impacted soils - an additional $330 will be expended to
thermally treat 10 cubic yards of impacted soils.
(continued)
Memo to Steilen
July 19, 1993
Page 3
)
3. Lead impacted soils - an additional $10,000 will likely be expended to
excavate the final 25 cubic yards of in-place soils and
dispose 85 cubic yards of soils in Rosemount, Minnesota
facil it ies.
4. Used oil impacted soils - an additional $42,000 will be expended to
excavate the final 100 cubic yards of soil and thermally
treat the 650 cubic yards of material.
5. Building demolition - an additional $7,000 may be request by the
building demolition contractor for impacted material
excavation and handling.
TOTAL ANTICIPATED COST INCREASE= $79,330
The total anticipated cost increase yields an approximate budget expenditure
of $227,305. This figure remains within the funded budget amount of $258,000.
Although staff will likely have a more complete budget scenario for EDA
consideration at its August 2, 1993, meeting, staff is of the opinion the EDA
should be advised now of budget projections, and discussion should be held
relative to the development of a claim against Wilkins, et al. for
reimbursement of environmental remediation costs.
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