HomeMy WebLinkAbout2015/02/02 - ADMIN - Minutes - Economic Development Authority - RegularAVSt. Louis Park OFFICIAL MINUTES
M I N N E S 0 T A ECONOMIC DEVELOPMENT AUTHORITY
ST. LOUIS PARK, MINNESOTA
FEBRUARY 2, 2015
1. Call to Order
President Mavity called the meeting to order at 7:21 p.m.
Commissioners present: President Anne Mavity, Tim Brausen, Steve Hallfin, Jeff Jacobs, Gregg
Lindberg, and Jake Spano.
Commissioners absent: Susan Sanger.
Staff present: Executive Director (Mr. Harmening), Economic Development Coordinator (Mr.
Hunt), and Recording Secretary (Ms. Hughes),
2. Roll Call
3. Approval of Minutes
3a. Economic Development Authority Meeting Minutes January 5, 2015
The minutes were approved as presented.
4. Approval of Agenda
The agenda was approved as presented.
5. Reports
5a. Approval of EDA Disbursements
It was moved by Commissioner Lindberg, seconded by Commissioner Jacobs, to accept
for filing EDA disbursements fbr the period December 27, 2014, through January 23,
2015.
The motion passed 6-0 (Commissioner Sanger absent).
b. Old Business - None
7. New Business
7a. Proposed Purchase Agreement— 5725 Highway 7 (former McGarvey Coffee
property). EDA Resolution No. 15-01 and EDA Resolution No. 15-02.
Mr. Hunt presented the staff report and explained that the EDA recently reaffirmed its
commitment to work with PLACE on a concept plan for redevelopment of the McGarvey
site and that an agreement had been reached with the current property owner to acquire
the property for $2.75 million with $550,000 paid at closing and monthly payments of
$15,000 plus 4% interest for a period of 24 months at which point the remaining balance
would be due. He stated one advantage to acquiring the property under a Contract for
Economic Development Authority -2- February 2, 2015
Deed is that it allows time for the EDA to secure funding commitments from other
agencies and for PLACE to complete its due diligence and secure financing, He stated
that PLACE intends to purchase the property from the EDA prior to the end of the
contract term, thereby making the EDA financially whole, In order to preserve the
EDA's ability to reimburse the Development Fund for expenses incurred related to the
property acquisition and property management, he recommended that the EDA approve
an Interfund Loan resolution of up to $4 million. He stated that completing this action
provides the EDA with the most flexibility to reimburse the Development Fund if and
when a TIF district is created to facilitate redevelopment of the property.
It was moved by Commissioner Brausen, seconded by Commissioner Jacobs, to adopt
EDA Resolution No. 15-01 Approving Purchase Agreement between the St, Louis Park
Economic Development Authority and DMD Properties, LLC.
The motion passed 6-0 (Commissioner Sanger absent).
It was moved by Commissioner Lindberg, seconded by Commissioner Hal fin, to adopt
EDA Resolution No. 15-02 Authorizing an Internal Loan for Advance of Funds in
Connection with Acquisition of Certain Property within Redevelopment Project No, 1.
The motion passed 6--0 (Commissioner Sanger absent).
7b. Assignment & Assumption of Redevelopment Contract — Louisiana Oaks
Apartments. EDA Resolution No. 15-03.
Mr. Hunt presented the staff report and stated the redevelopment contract between the
EDA, the City, and MSP SLP Apartments, LLC, provides that whenever the Redeveloper
wishes to convey the property at 7201 Walker Street and assign its obligations as well as
the associated TIF Note to a third party, the EDA must review and approve the
assignment. He stated the EDA issued a $3.5 million TIF Note to reimburse it for costs
associated with the development of the Louisiana Oaks apartments and MSP SLP
Apartments, LLC, recently entered into a contract to sell the complex to Sidal Crossroads
Co., LLC, and approval of the assignment means the EDA consents to Sidal Crossroads
Co.'s assumption of the obligations under the redevelopment contract and TIF Note,
It was moved by Commissioner Lindberg, seconded by Commissioner Haluln, to adopt
EDA Resolution No. 15-03 Approving an Assignment and Assumption of Redevelopment
Contract between MSP SLP Apartments, LLC, and Sidal Crossroads Co„ LLC.
The motion passed 6-0 (Commissioner Sanger absent).
8. Communications - None
9. Adjournment
President Mavity adjourned the meeting at 7:30 p.m.
Secretary President