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HomeMy WebLinkAbout2015/11/16 - ADMIN - Minutes - Economic Development Authority - RegularfffSt. Louis Park OFFICIAL MINUTES MINNESOTA ECONOMIC DEVELOPMENT AUTHORITY ST. LOUIS PARK, MINNESOTA NOVEMBER 16, 2015 1. Call to Order President Mavity called the meeting to order at 7:20 p.m. Commissioners present: President Anne Mavity, Tim Brausen, Gregg Lindberg, Susan Sanger, and Jake Spano. Commissioners absent: Steve Hallfin and Jeff Jacobs. Staff present: Executive Director (Mr. Harmening), Economic Development Coordinator (MT. Hunt), Community Development Director (Mr. Locke), Senior Planner (Mr. Walther), Communications Specialist (Ms. Pribbenow), and Recording Secretary (Ms. Staple). 2. Roll Call 3. Approval of Minutes 3a. Economic Development Authority Meeting Minutes November 2, 2015 The EDA minutes were approved as presented. The motion passed 5-0 (Commissioners Hallfrn and Jacobs absent). 4. Approval of Agenda It was moved by Commissioner Lindberg, seconded by Commissioner Spano, to approve the EDA agenda as presented. The motion passed 5-0 (Commissioners I.Iallfin and Jacobs absent). 5. Reports — None 6. Old Business — None 7. New Business 7a. Establishment of 4900 Excelsior Tax Increment Financing District. Resolution No. 15-26, Resolution No. 15-27 and Resolution No. 15-28. Mr. Hunt presented the staff report and provided information on the 1,68 -acre redevelopment site, which will create 4900 Excelsior{. He provided details on the proposed development that would include both residential and retail space. He stated that there are extraordinary costs to redevelop this site and therefore the applicant has applied to the EDA to offset a portion of the redevelopment costs, which would enable the project to proceed. He advised that the Council provided previous consensus support through previous study sessions. He stated that the EDA and City Council is being asked to remove the subject properties fi-om the existing Park Commons TIF District and create Economic Development Authority -2- November 16, 2015 the new 4900 Excelsior TIF District. He provided additional details on the proposed TIF District and noted that authorization of establishing the TIF District would not commit the EDA to any specific level of funding for the developer. He stated that staff recommends adoption of the Resolutions as proposed. President Mavity clarified that this action would remove the subject parcels from the existing TIF District and place them into the new District so that the project would be eligible to receive funds. Commissioner Sanger stated that she would be opposing this vote because she believes that this project is too big and out of scale for the site. She also did not believe there would be sufficient parking available. President Mavity confirmed that the EDA and City Council would both be taping action on this item tonight. She stated that she would support this item as the site is currently generating a very little amount of tax for the City and is blight. She stated that the amount of investment the City would be making, $2,800,000 would be for a project valued at $32,000,000. She explained that the City would be paid back after seven years and the project will pay itself back in taxes multiple times over the years. She noted that this will also bring more people and energy into the neighborhood. It was moved by Commissioner Lindberg, seconded by Commissioner Braicsen, to waive the reading and adopt EDA Resolution No. 15-26, approving the elimination of parcels from the Park Commons Redevelopment Tax Increment Financing District (Hennepin County TIF District No. 1308), within Redevelopment Project No. I, in the City of St. Louis Park). The motion passed 4-1 (Commissioner Sanger opposed) (Commissioners Hcdlfrn and .Jacobs absent). It was moved by Commissioner Brausen, seconded by Commissioner Spano, to waive the reading and adopt EDA Resolution No. 15-27, approving the establishment of 4900 Excelsior Tax Increment Financing District within Redevelopment Project No. 1 (a redevelopment district).?. The motion passed 4-1 (Commissioner Sanger opposed) (Commissioners Hallfin and Jacobs absent). It was moved by Commissioner Spano, seconded by Commissioner Lindberg, to adopt EDA Resolution No. 15-28, authorizing an Inteifund Loan for advance of certain costs in connection with the administration of 4900 Excelsior TIF District. The motion passed 4-1 (Commissioner Sanger opposed) (Commissioners Hallfin and Jacobs absent). 7b. Public Hearing Purchase and Redevelopment Contract with KTJ 247, LLC — 4900 Excelsior Boulevard. Resolution No. 1529. Mr. Hunt presented the staff report and stated that the extraordinary site preparation costs for the 4900 Excelsior site exceed $7,100,000 and would prevent the project from being Economic Development Authority -3- November 16, 2015 financially feasible. He stated that the applicant applied to the EDA for a portion of the costs, and the EDA's financial advisor identified a gap and but for the proposed tax increment, the project could not move forward.. He stated that it was determined that if $2,800,000 were provided in tax increment towards the site preparations, the project would be feasible and could move forward. He explained that the funds would be paid over approximately seven years and the proposed amount of assistance is consistent with financing requested by other similar sized developments in the City. He noted that the Council had previously reviewed this item and consensus was given through an October study session. He provided additional details on the terms of the contract between the EDA and developer, noting that this would allow the developer to remove a highly visible blighted building from the City and create an attractive mixed use site. He stated that the investment would create over $38 million in new taxable value; increase the market value of the site by 1,600 percent; and also bring in a new retail business, which would create 85 new employment positions and new housing units. He stated that staff recommends holding the public hearing and then approving the contract as presented. Martha Ingrim, Kennedy and Graven, clarified that the public hearing tonight is on the EDA sale of property. President Mavity opened the public hearing. No speakers were present. President Mavity closed the public hearing. It was moved by Commissioner Brausen, seconded by Commissioner Spano, to tivaive the reading and adopt EDA Resolution No. I5-29, approving the Purchase and Redevelopment Contract between the EDA and KTJ 247, LLC (Oppidan Investment Company) related to the proposed 4900 Excelsior project at 4760 and 4900 Excelsior Boulevard. Cindy Bovota, 4820 Park Conunons Drive, asked how tall the building would be. She stated that they live at Wolf Lake and are interested in installing solar collectors. She was worried that the building would block the sun that could be collected on their site. President Mavity explained the design of the building is not under consideration at this time and would be included in the discussion for the PUD. Mr. Hunt stated that the maximum height of the building is 75 feet. Mr. Walthers presented the shadow study that was completed and provided additional information. He noted that there is a daily limit on the length of time shadowing can occur on neighboring buildings, noting that the City allows 60 days of exception throughout the year. Commissioner Brausen stated that the Council spent a lot of time in study sessions, as did staff, reviewing proposals for this site. He noted that the decision has not been made lightly and several proposals have been rejected. He noted that the project will provide many benefits including a grocery store, affordable housing units, employment positions, and an improvement to a blighted site. The motion passed 4-1 (Commissioner Sanger opposed) (Commissioners Hallfin and Jacobs absent). Economic Development Authority -4- November 16, 2015 7c. First Amendment to Redevelopment Contract with Cedar Lake Road Apartments, LLC. Resolution No. 15-30 and Resolution No. 15-31. Mr. Hunt presented the staff report and stated that the EDA and City entered into a redevelopment contract the previous July and the developer agreed to construct two apartment buildings and two single family homes by December 1St. He noted that the apartment buildings will be complete but the single family homes will not and the developer has requested an amendment to the contract to extend the contract date to December 31, 2016 to allow for construction of the homes. He stated that the proposed partial assignment would transfer the remaining liability to Lakewest, the purchaser of the single family lots that will be building the homes. He provided additional details on the agreement. He stated that the EDA legal counsel drafted the documents and recommends their approval. It was moved by Commissioner Brausen, seconded by Commissioner Spano, to waive the reading and adopt EDA Resolution No. 15-30, approving the First Amendment to the Contract for Private Redevelopment with Cedar Lake Road Apartments, LLC. The motion passed 5-0 (Commissioners Hallfin and Jacobs absent). It was moved by Commissioner Brausen, seconded by Commissioner Spano, to waive the reading and adopt EDA Resolution No. 15-31, Partial Assignment and Assumption of Redevelopment Contract between the Redeveloper and Lake West Development. The motion passed 5-0 (Commissioners Hallfin and Jacobs absent). 8. Communications — None 9. Adjournment The meeting adjourned at :43 p.m. Secreta � - - - -' '� 1'2' 0 President