HomeMy WebLinkAbout2015/08/17 - ADMIN - Minutes - Economic Development Authority - RegularAllSt. Louis Park OFFICIAL MINUTES
M I N N E S O T A ECONOMIC DEVELOPMENT AUTHORITY
ST. LOUIS PARK, MINNESOTA
AUGUST 17, 2015
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,
Susan Sanger, and Jake Spano.
Commissioners absent: Jeff Jacobs.
Staff present: Executive Director (Mr. Harmening), Director of Community Development (Mr.
Locke), Economic Development Coordinator (Mr. Hunt) and Recording Secretary (Ms. Hughes).
2. Roll Call
3. Approval of Minutes
3a. Economic Development Authority Meeting Minutes August 3, 2015
The minutes were approved as presented.
4. Approval of Agenda
The agenda was approved as presented.
5. Reports - None
6. Old Business - None
7. New Business
7a. Establishment of The Shoreham Tax Increment Financing District. EDA
Resolution No. 15-15 and Resolution. No. 15-16.
Mr. Hunt presented the staff report and explained that Bader Development plans has
applied for tax increment assistance to offset the extraordinary costs to redevelop the site
and in order to reimburse the redeveloper for a portion of its extraordinary costs, a new
TIF district will need to be established and a formal analysis of the site concluded that it
meets the statutory requirements of a TIF District consisting of five parcels with a
maximum term of 25 years, however, it is estimated that the proposed project would
generate tax increment in four years and once the obligations have been satisfied, the TIF
district may be terminated. I -Ie pointed out that authorizing the TIF district in itself does
not obligate the EDA to any specific level of financial assistance and simply creates a
funding vehicle to reimburse the developer for a portion of its qualified costs.
It was moved by Commissioner Sanger, seconded by Commissioner Spano, to adopt EDA
Resolution No. 15-15 Adopting a Modification to the Redevelopment Plan for
Economic Development Authority -2- August 17, 2015
Redevelopment Project No 1, Establishing The Shoreham Tax Increment Financing
District Therein and Adopting a Tax Increment Financing Plan Therefor.
The motion passed 6-0 (Commissioner Jacobs absent).
It was moved by Commissioner Sanger, seconded by Commissioner Spano, to adopt EDA
Resolution No. 15-16 Authorizing an Interfund Loan for Advance of Certain Costs in
Connection with The Shoreham Tax Increment Financing District.
The motion passed 6-0 (Commissioner Jacobs absent).
7b. Redevelopment Contract with Shoreham Apartments, LLC. EDA
Resolution No. 15-17.
Mr. Hunt presented the staff report and stated that the soils on this site are impacted with
petroleum, lead, pesticides and PAHs, as well as various fill material and debris in
thicknesses ranging from 3' to 15' and there is also evidence of an underground storage
tank and timber piles coated in creosote and the impacted fill soil will need to be
excavated 10-20' below grade and will require special handling and disposal. He stated
the project also requires improvements to France Avenue, storm sewer improvements,
and construction of underground parking. All together these expenses and improvements
cost approximately $7.8 million which prevent the project from reaching financial
viability. He advised that Bader Development has applied for TIF assistance and while
much of the extraordinary costs will be covered by grants obtained by the developer, it
was determined that a financial gap remained and but for the TIF district, the project
would not proceed and it is proposed the EDA would reimburse up to $1.2 million in
qualified site preparation costs on a pay-as-you-go note. He stated that Bader
Development's request is reasonable given the complexity and overall value of this
project and the TIF assistance is consistent with other projects. He stated that the
business terms were previously reviewed with Council and serve as the basis for the
Redevelopment Contract with Shoreham. Apartments, LLC.
It was moved by Commissioner Sanger, seconded by Commissioner Brausen, to adopt
EDA Resolution No. 15-17 Approving a Contract for Private Redevelopment and
Awarding the Sale of, and Providing the Form, Terms, Covenants and Directions for the
Issuance of'its Tax Increment Revenue Note, Series 20 , to Shoreham Apartments LLC.
The motion passed 6-0 (Commissioner Jacobs absent).
8. Communications - None
9. Adjournment
President Mavity adjourned the meeting at 7:32 p.m.
Se re ary C7 President