HomeMy WebLinkAbout2016/02/01 - ADMIN - Minutes - Economic Development Authority - Regular11ISt. Louis Park OFFICIAL MINUTES
M I N N E S 0 T A ECONOMIC DEVELOPMENT AUTHORITY
ST. LOUIS PARK, MINNESOTA
FEBRUARY 1, 2016
1. Call to Order
President Mavity called the meeting to order at 7:21 pan.
Commissioners present: President Anne Mavity, Tim Brausen, Steve Hallfin, Gregg Lindberg,
Susan Sanger, Thom Miller, and Jake Spano.
Commissioners absent: None.
Staff present: Executive Director (Mr. Harmening), City Attorney (Mr. Mattick), Economic
Development Coordinator (Mr. Hunt), Senior Engineering Project Manager (Mr. Shamla), and
Recording Secretary (Ms. Batra).
2. Roll Call
3. Approval of Minutes
3a. Economic Development Authority Meeting Minutes January 19, 2016
It was moved by Commissioner Lindberg, seconded by Commissioner Spano, to approve
the EDA minutes as presented.
The motion passed 7-0.
4. Approval of Agenda
The EDA agenda was approved as presented.
5. Reports
5a. Approval of EDA Disbursements
It was moved by Commissioner Spano, seconded by Commissioner Hallfin, to approve
EDA Disbursements.
The motion passed 7-0.
6. Old Business - None
7. New Business
7a. Approve Sale of View Easement - 7015 Walker Street to Clear Channel
Outdoors Inc. Resolution No. 1602,
Mr. Shamla presented the staff report regarding the proposed sale of a view easement on
the parcel located at 7015 Walker Street to Clear Channel Outdoors. Clear Channel
Outdoors would like to purchase a perpetual view easement from the EDA for its
Economic Development Authority -2- February 1, 2016
relocated billboard at the NE quadrant of the Hwy 7 and Louisiana interchange. The total
view easement on the EDA property would be 806 square feet, The remaining easement,
not under setback, is 300 square feet. Mr. Shamla showed a slide to define the adjacent
Clear Channel parcel, which is also on the agenda for discussion with the City Council
this evening. Mr. Shamla explained that staff has been working with Clear Channel on
terms related to the acquisition of remnant parcels at Hwy 7 and Louisiana. The view
easement is part of those negotiations and Clear Channel has agreed to purchase it for
$3,000.
It was moved by Commissioner Spano, seconded by Commissioner Lindberg, to adopt
EDA Resolution No. 16-02, approving the Sale of a View Easement at 7015 Walker
Street to Clear Channel Outdoors Inc.
Commissioner Sanger stated she does not support this proposal for several reasons, The
first is because she is a staunch supporter of eliminating billboards entirely because she
feels they are visual blight on the community. She explained she understands that a
majority of the Council previously supported relocating this billboard rather than buying
it out. She stated if this item this is approved the City will be paying approximately
$500,000 to Clear Channel for their property without receiving much in return. She
added that the easement would protect the view of the billboard in perpetuity, even if
Clear Channel no longer owned the billboard. She stated the proposal did not make
economic sense and would interfere with future uses of the parcel. She explained that
land uses change over time and the City is ceding some control over future uses to Clear
Channel and will receive nothing in return.
Commissioner Lindberg asked what the plan was for the property moving forward. Mr.
Shamla responded that the intent is to build a pond, but the plan is still in the works and
could change,
Commissioner Brausen stated he is uncomfortable with provision 2c of the agreement
which appears to provide Clear Channel with the right to consequential damages in the
event that the easement is not preserved in the future. He explained normally the
entitlement would be for direct damages and this agreement seems to allow Clear
Channel to capture lost income that can be projected in the future. He stated he was also
uncomfortable with provision 2d, which gives Clear Channel the right to assign and
transfer the interest to anybody else in the future. He noted this would create a perpetual
right that Clear Channel could sell for economic benefit in the future. He explained
although he was uncomfortable with those provisions he will support this proposal
because it does enable the City to get the land that is desired for storm water and other
future purposes.
In response to President Mavity's request for clarification of the provisions of the
agreement, Mr. Mattick explained the details of provisions 2c and 2d. He stated that he
considers both provisions to be somewhat standard.
Commissioner Spano stated the proposal is for approximately 800 square feet and would
not limit the City's ability to use the land. He stated that the deal is reasonable and
explained he is in support of this proposal.
Economic Development Authority -3- February 1, 2016
Commissioner Hallfin explained that changing ownership of the billboard doesn't change
the use of the land. He stated that he will support this proposal,
Commissioner Lindberg explained that the view easement would not limit the City's
future use of the property. He stated that the proposal makes sense, and if the plan for the
use of the land is a storm water pond, then the proposal is important and reasonable.
The motion passed 6-1 (Commissioner Sanger opposed).
8. Communications - None
9. Adjournment
The meeting adjourned
at 7:38 p.m.
Meli4sa Kennedy, Secretary Anne Mavity, President