HomeMy WebLinkAbout2017/04/03 - ADMIN - Minutes - Economic Development Authority - RegularIffSt. Louis Park OFFICIAL MINUTES
MINNESOTA ECONOMIC DEVELOPMENT AUTHORITY
ST. LOUIS PARK, MINNESOTA
APRIL 3, 2017
1. Call to Order
President Mavity called the meeting to order at 7:23 p.m.
Commissioners present: President Anne Mavity, Tim Brausen, Steve klallfin, Gregg Lindberg,
Thom Miller, Susan Sanger, and Jake Spano.
Commissioners absent: None.
Staff present: Executive Director (Mr. Harmening), Chief Financial Officer (Mr. Simon), City
Attorney (Mr. Knutson), Economic Development Coordinator (Mr. Hunt), Planner (Ms.
Monson), Director of Engineering (Ms. Heiser), Planning and Zoning Supervisor (Mr. Walther),
and Recording Secretary (Ms. Pappas).
2. Roll Call
3. Approval of Minutes - None
4. Approval of Agenda
It was moved by Commissioner Sanger, seconded by Commissioner Lindberg, to approve
the EDA agenda as presented.
The motion passed 7-0.
5. Reports
5a. Approval of EDA Disbursements
Commissioner Brausen stated the primary expenditures for the EDA, this time around,
are for art, and he happily moves approval.
It m,as moved by Commissioner Brausen, seconded by Commissioner Hallfin, to approve
the EDA Disbursements.
The motion passed 7-0.
6. Old Business - None
7. New Business
7a. Call for Public Hearing to Consider Establishment of Elmwood Apartments
TIF District. Resolution No. 1705
Mr. Hunt presented the staff report. He noted there is a financial gap in the Elmwood
Apartments project proforma which precludes the project from proceeding, and as a
result the developer has requested TIF assistance. Calling for a public hearing is the first
Economic Development Authority -2- April 3, 2017
step in creating a TIF district. The EDA will have the opportunity to consider the
business terms of the financial assistance in the near future, and those terms will be
incorporated into a redevelopment contract with 36"' Street LLC, expected to be brought
to the EDA for formal consideration on May 15th, the same evening as the proposed TIF
district public hearing. Staff recommends approval.
It was moved by Commissioner Brausen, seconded by Commissioner Spano, to waive the
reading and adopt EDA Resolution No. 17-05, requesting the City Council call a public
hearing relative to the establishment of the Elmwood Apartments Tax Increment
Financing (TIF) District within Redevelopment Project No. I (a redevelopment district).
The motion passed 7-0.
7b. Purchase Agreement with Hennepin County HRA — Wooddale Station
Properties. Resolution No. 1706
Mr. Hunt presented the staff report. He noted this topic has been discussed at multiple
study sessions. The non-profit developer PLACE proposes to purchase and redevelop
several remnant parcels, which total approximately 4.9 acres on the north side and 2 acres
on the south side of the future SWLRT Wooddale Station with a mixed-use, mixed -
income, transit -oriented, and sustainable development. Regardless of whether the
proposed PLACE project proceeds, the EDA has provided direction to acquire the subject
parcels so as to assemble sites large enough to spur redevelopment on either side of the
future SWLRT Wooddale Station. He added that terms of the proposed purchase
agreement were provided in a written report for the March 27 study session, and the
proposed agreement has been reviewed by the FDA's legal counsel, who recommends its
approval.
Commissioner Sanger stated she agrees that purchasing and assembling these properties
would be very beneficial for firture development in the area; however, she will not
support the purchase of these parcels from Hennepin County at this time, as she knows
this is to benefit the PLACE project, which she does not support.
Commissioner Spano asked if the EDA purchased these properties and the PLACE
project did not move forward, if the EDA would still own them. Mr. Hunt stated yes, and
then the EDA would seek a new developer.
It was moved by Commissioner Lindberg, seconded by Commissioner Brausen, to waive
the reading and adopt EDA Resolution No. 17-06, approving the Purchase Agreement
between EDA and the Hennepin County Housing and Redevelopment Authority (HCHRA)
relative to four remnant parcels adjacent to the future SWLRT Wooddale Station.
The motion passed 6-1 (Commissioner Sanger opposed).
7c. Collateral Assignment of E2 TIF Note — Bader Development to Crown Bank.
Resolution No. 17-07
Mr. Hunt presented the staff report. He stated this resolution concerns the approval of the
collateral assignment of the E2 TIF Note between Bader Development, Mandalay
Investment, and their lender, Crown BanIc. Mr. Hunt added that if Bader Development
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were to default, the future TIF payments would be made directly to the lender.
Additionally, this assignment is similar to other collateral assignments of TIF notes that
the EDA has seen with other development projects supported through tax increments.
Commissioner Lindberg stated he will abstain from this vote as his wife's father works
for Crown Bank.
It was moved by Commissioner Brausen, seconded by Commissioner Miller, to waive the
reading and adopt EDA Resolution No. 17-07, approving the Collateral Assignment of
the E2 TIF Note between Bader Development, Mandalay Investment and their lender,
Crown Bank.
The motion passed 6-0 (Commissioner Lindberg abstained).
S. Communications - None
9. Adjournment
The meeting adjourned at 7:30 p.m.
Mel is a Kennedy, Secretary Anne Mavity, President