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HomeMy WebLinkAbout2017/03/20 - ADMIN - Minutes - Economic Development Authority - RegularIOlSt. Louis Park OFFICIAL MINUTES MINNESOTA ECONOMIC DEVELOPMENT AUTHORITY ST. LOUIS PARK, MINNESOTA MARCH 20, 2017 1. Call to Order President Mavity called the meeting to order at 7:20 p.m. Commissioners present: President Anne Mavity, Tim Brausen, Steve Hallfin, Gregg Lindberg, Thom Miller, Susan Sanger, and Jake Spano. Commissioners absent: None. Staff present: Executive Director (Mr. Harmening), Economic Development Coordinator (Mr. Hunt), Community Development Director (Mr. Locke), City Attorney (Mr. Mattick), Chief Financial Officer (Mr. Simon), Deputy City Manager/Human Resources Director (Ms. Deno), Fire Chief (Mr. Koering), Senior Planner (Mr. Walther), and Recording Secretary (Ms. Pappas). Guests: Tom Tracy, Senior VP, Excelsior Group. 2. Roll Call 3. Approval of Minutes 3a. Economic Development Authority Meeting Minutes March 6, 2017 It was moved by Commissioner Sanger, seconded by Commissioner Hallfin, to approve the EDA minutes as presented. The motion passed 7-0. 4. Approval of Agenda It was moved by Commissioner Brausen, seconded by Commissioner Spano, to approve the EDA agenda as presented. The motion passed 7-0. 5. Reports — None 6. Old Business — None 7. New Business 7a. Fourth Amendment to Central Park West Redevelopment Contract. Resolution No. 17-03. Mr. Hunt presented the staff report. He explained that the developer of Central Park West has requested a one-year extension under the Contract for Private Redevelopment with Central Park West, LLC, to allow their development team sufficient time to reach their pre -leasing threshold for the required buildings. Under the proposed Fourth Amendment Economic Development Authority -2- March 20, 2017 to the redevelopment contract, the required commencement and completion dates for Phases 4 and 5 would be modified to dates noted in the report. Commissioner Brausen stated he is supportive of this, adding he would encourage the developer, as they look for an anchor tenant, to seek out companies that offer more space to their employees' work stations and not just provide 10 x 10 cubicles. Commissioner Sanger stated she understands why Phase 4 was postponed because of the lack of an anchor tenant but asked why Phase 5 is being stalled. Mr. Tracy, Senior VP, Excelsior Group, stated they would like to break ground on both Phase 4 and 5; however, it is taking some time to Pill the space. He noted they are now working with Ryan Companies; have hired Transwestein for marketing the space; and are moving along in the process and getting prospects. He stated they are working very hard to lease the space but need more time. Commissioner Sanger stated this explains the delay with Phase 4, but not Phase 5. She stated she is tired of approving extensions and would like to have the whole development up and running. Commissioner Spano asked if the duration of the project will be changed, if the TIF amount will then be different, as well. Mr. Hunt stated the construction delay will delay the generation of tax increment but the term of the TIF district, 26 years, remains the same. It was moved by Commissioner Brausen, seconded by Commissioner Lindberg, to adopt EDA Resolution No. 17-03, approving the Fourth Amendment to the Contract for Private Redevelopment with Central Park West, LLC. The motion passed 7-0. 7b. Call for Public Hearing to Consider Establishment of the Wooddale Station TIF District. Resolution No. 17-04. Mr. Hunt presented the staff report. He noted the project's final pro forma exhibits a financial gap which precludes the project from proceeding. Accordingly, the developer submitted an application for TIF assistance. PLACE's revised project plans and initial TIF request were reviewed at the February 13, 2017, Study Session, where they received favorable support. The EDA also received a more in-depth staff report on the application at the March 13, 2017, Study Session. Mr. Hunt stated the TIF program is administered by the EDA; however, in order to create a TIF district, city councils are statutorily required to hold a public hearing to establish them. To start the TIF district process, the EDA must formally request the city council to set a date and hold a public hearing. Calling for the public hearing is the first step in the formal creation of the Wooddale Station Tax Increment Financing District. The public hearing is scheduled for May 1st. Commissioner Brausen asked if there will be a separate TIF district for the PLACE development later on. Mr. Hunt stated the Wooddale Station TIF District would be Economic Development Authority -3- March 20, 2017 created to accommodate the PLACE project. Commissioner Brausen asked if this will be separate from the proposed Elmwood TIF district also being discussed. Mr. Hunt stated they will be two entirely separate TIF districts. Commission Sanger stated she is voting no, and is not in favor of the PLACE project. It was moved by Commissioner Brausen, seconded by Commissioner Lindberg, to adopt EDA Resolution No. 17-04, requesting the city council to call for a public hearing relative to the establishment of the Wooddale Station Tax Increment Financing District within Redevelopment Project No 1. The motion passed 6-1. (Commissioner Sanger opposed). 8. Communications — None 9. Adjournment The meeting adjourned at 7:33 p.m. Melissa ennedy, Secretary Anne Mavity, President