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2000-09-13J II I1 I I il, III , I ,~, MINUTES - REGULAR MEETING - SEPTEMBER 13, 2000 The Housing and Redevelopment Authority of the City of Mound, Hennepin County, Minnesota, met on Tuesday, September 13, 2000, at 6:30 p.m., in the Council Chambers at 5341 Maywood Road, in said City. Those present: Chairperson Pat Meisel; HRA Board Members: Andrea Ahrens (6:45 p.m. arrival), Bob Brown, Mark Hanus, and Leah Weycker. Also in attendance were City Manager Kandis Hanson, Acting City Attorney Mack LeFever, City Clerk Fran Clark, Jim Presser of Ehlers & Associates, Finance Director Gino Businaro, HRA Executive Director Pinky Charon, and Recording Secretary Diana Mestad. Absent and excused: Tenant Representative Pauline Payne. Others present: Ken and Sally Custer, Gary Hart, Peter Meyer, Mike Huspek, Gerald Babb, Chester Yanik of Yanik Companies, Lowell Olson of Yanik Companies, Tom Rasmussen, Cai Korth, Betty Carlson, Tabatha Hanly, Nancy Hardy, Jennie Carlson Baltutis, and John Evans. Consent Agenda: All items listed under this Consent Agenda are considered to be routine by the Housing and Redevelopment Authority. There will be no separate discussion of these items unless a Council member or citizen so request, in which event the item will be removed from the Consent Agenda and considered in normal sequence. Chairperson Meisel called the meeting to order at 6:35 p.m. 1.1 PHA PLAN PRKSENTATION BY ltRA EXECUTIVE DIRECTOR PINKY CHARON, Chairperson Meisel opened the Public Hearing at 6:36 p.m. Chairperson Meisel closed the Public Hearing at 6:37 p.m. HRA Board Member Brown asked whether code for the American Disabilities Act had been followed. The HRA Director confirmed that it had. HRA Board Member Weycker questioned why the Tenant Representative was not present. The HRA Executive Director stated that she was unable to attend. MOTION by Hanus, seconded by Weycker to approve the PHA Plan as presented. The vote was unanimously in favor. Motion carried. 4-0. TAX INCREMENT FINANCING. 1.2 MOUND HRA MINUTES - SEPTEMBER 15, 2000 APPROV]g MINUTES OF Au_m~st 22. 2000. MOTION by Brown, seconded by Weycker, to approve the Minutes of August 22, 2000. The vote was unanimously in favor. Motion carried. 4-0. STAFF REIK)RTS 1.3 gEDEVELOPMENT PROCEEDINGS. Jim Prosser of Elders & Associates gave a summary update and forecast for the redevelopment proceedings. He stated that it has been approximately one month since the Beard Group dropped out the process and in that time, five developers have been identified for the next step of soliciting a Preliminary Development Program. The five developers currently identified are: 1. CSM Corp 2. Ryan Companies 3. Gramercy Corp 4. Mego Plains 5. Beard Group CI~is developer continues to be interested. The initial plan submitted was an interpretation of the Mound Visions Plan and now a different interpretation will be submitted.) HRA Board Member Hanus asked Mr. Prosser to elaborate on a letter received from Beard Group. Mr. Prosser stated that the letter referred to materials the City had sent out to prospect developers and which the Beard Group had interpreted to mean that the City was not requiring as much public investment or would itself pay more of the redevelopment cost. Mr. Prosser stated that this interpretation was incorrect and that this letter simply conferred basic information on current assessments. The cost for Beard Group was less than the original because the first plan submitted by them had certain requirements and parcels of land that had to be obtained. Mr. Prosser further stated that all of the developers believe that the Mound Visions Concept is a good plan, but that each of them will interpret the plan differently. HRA Board Member Ahrens arrived at 6:45 p.m. Mr. Prosser stated that he was recommending that a market research person be hired to give their opinion on the plan and the marketplace. He wanted the HRA Board to also give some input as to what issues this person should look at. 2 MOUND tlRA MINUTES - SEPTEMBER 13, 2000 The City Manager stated that she felt it was important to discuss this and suggested that the October 10 lIRA meeting allow one hour for this discussion to take place. She further suggested that the meeting start at 6:00 p.m. to allow for this discussion. Chairperson Meisel asked what the cost for the market research person would be. Mr. Prosser stated that he did not have an estimate of this cost yet, but guessed it would be under $2,000. He stated that the developers would be doing a full-blown market study. He stated that based on his experience, this is an expensive redevelopment project. Chairperson Meisel asked the Board for their opinions on this. HRA Board Member Brown stated that he was okay with doing the study, but felt that money was being spent here and there on the project. MOTION by Brown, seconded by Weycker to approve up to $2,000 to do a market research study. The vote was unanimously in favor. Motion carried. 0. Mr. Prosser stated that the next step in the redevelopment process is to meet with the developers and provide an orientation for the Mound Visions Plan concept and clarify the requirements. He stated that the City Manager has suggested there also be a meeting between the developers and a panel of business owners to talk about the expectations of the businesses. HRA Board Member Brown asked whether it was possible to put a clause in the contract that would allow a monetary penalty if the developer were to pull out of the process. HRA Board Member Hanus felt this type of a clause would chase the developers away and further suggested setting up shorter expandable periods of time. He pointed out that the developers are spending their own money at this point and that should help to ensure their continued interest. Chairperson Meisel pointed out that the redevelopment process was not starting over at this point as much of the information obtained previously could be used again. HRA Board Member Weycker referred to the prior suggestion of asking a panel of business owners to meet with the potential developers and wondered how that panel would be chosen. Mr. Prosser stated that the Board could select two or three owners and that this would be a one time dialogue with the developers. He stated that it is impossible to accommodate every business in this type of redevelopment, but that keeping 1/4 to 1/3 of the businesses would be good. The City Manager stated that in order to facilitate choosing the business asked to participate, she would like the Board Members to submit candidates to her. 3 MOUND HRA MINUTES - SEPTEMBER 15, 2000 Mayor Meisel asked what the time frame for this would be. The City Manager stated that she saw this as a two-hour meeting and Mr. Prosser stated it should be held in the next couple of weeks. HRA Board Member Ahrens confirmed that there had originally been nine interested developers and that had been pared to the present list of five. Mr. Prosser confirmed this and stated that two of the developers (CSM and Ryan) are considered premier developers and that the other three have excellent reputations. HRA Board Member Brown stated that the two developers considered premier are commercial developers first and residential second. HRA Board Member Weycker stated that she did not want to limit who was on the panel of business owners and wondered if a broad selection of business types would be best. Mr. Prosser stated that this would not be the only opportunity for business/owner input. 1.4 MEDIATION PROCEEDINGS. The City Manager stated that there have been meetings with the business owners individually and as a group and some possible solutions have been identified. The group has defined the need for 67 parking spaces. There is a suggestion to capitalize on the undeveloped land in the area to provide additional spaces. Staff has meet with the two abutting property owners and one is willing to sell. The costs for this are currently being assembled by staff. A meeting is set for next week to present the findings to the property owners. HRA Board Member Hanus stated that the count of 67 spaces is the business owners' opinion and not what is required by code. 1.5 POST OFFICE A. PROGRF_~$ REPORT AND TIME-LINF~. Mr. Prosser outlined the current schedule as follows: Site and architectural plan completion September 30, 2000; Bidding October with late month bid opening; Begin construction November 15, 2000; Move-in April 1, 2001. 4 1.6 MOUND HRA MINUTES - SEPTEMBER 13, 2000 I-IRA Board Member Hanus stated that the greenway development in 2002 is not acceptable and wondered if there was anything Mound was doing to hold this project up. Mr. Prosser stated that he did not feel that Mound was impeding progress on this project, but that because this is not the standard Post Office design, it has taken longer. HRA Board Member Ahrens asked whether pushing the time-line up would allow completion in 2001. HRA Board Member Hanus stated that the greenway could not start before mid to later summer. HRA Board Member Ahrens inquired whether winter dredging was an option. HRA Board Member Brown stated he was in favor of doing a winter dredge. I-IRA Board Member Hanus pointed out that this would mean the winter of 2001/2002. HRA Board Member Brown stated that he felt the project could be completed in 2001 with the only possible delay being the placement of sod. HRA Board Member Ahrens stated that answers on the greenway would be available from Bruce Chamberlain and wondered if it would be possible to do the dredge in the spring before the spawning season. B. APPROVAL OF SETTLEMENT AGREEMENT WITH UNITED Acting City Attorney LeFever stated that the proposed amount is close to the appraised amount. This involves payment of $171,000. Chairperson Meisel confirmed that the City would pay this amount and then be reimbursed by the Post Office. Mr. Prosser confirmed that this was the arrangement and stated that the HRA Board could expect a draft resolution for this at the next meeting. Chairperson Meisel asked what the time span was between the payment and the reimbursement. Mr. Prosser stated this would probably be 30 days. Gino Businaro, Finance Director, eonfn'med that cash flow would allow for this payment, but there would also be an urgency to get the reimbursement. MOTION, by Brown, seconded by Hanus to approve the settlement agreement with United Properties in the amount of $171,000. The vote was unanimously in favor. Motion carried..%0. ACTION ON HRA RESOL~ON REOUESTING 2001 HRA LEVY. MOUND HRA MIN(JTE$ - SEPTEMBER 15, 2000 The Finance Director stated that a Council workshop had been held to look at the levies for the City. The Resolution was prepared by Staff as a follow up for this. Ahrens and Brown seconded the following resolution: RESOLUTION #00-20 RESOLUTION REQUESTING THE CITY COUNCIL APPROVE THE BRA TAX LEVY OF $53,000 FOR THE YEAR 2001 The vote was unanimously in favor. Motion carried. 1.7 JOSEPHINE LONGPRE REOUEST TO PURCHASE PROPERTY. Mr. Prosser stated that he has conducted preliminary discussions and made an inspection of the property. He stated that it makes sense to proceed with discussions at this time. He asked the HRA for a general idea of the direction to take and whether they would consider acquiring the property if it was reasonable. Chairperson Meisel asked whether the building would be slated to be demolished in the redevelopment. Mr. Prosser stated that it would. HRA Board Member Hanus stated that as long as the dollars made sense, he felt it would be good to go ahead on this. The Acting City Attorney stated that a motion was not necessary, but rather heating what the general consensus of the Board is concerning this. Chairperson Meisel stated that the Board wanted to move forward. 1.8 KF.N CUSTER REQUEST REGARDING REDEVELOPMENT. Mr. Prosser stated that Mr. Custer has submitted a preliminary concept that provides a number of opportunities including relocation space for displaced businesses. Mr. Custer's concern is that he does not want to start spending money on redevelopment and then have the City take the property. He would like a grace period. Mr. Prosser stated that the project team is recommending the following response: Authorize a 30-day "exclusive" during which time neither the HRA nor the City would exercise eminent domain powers to acquire the Ken Custer property. During this time the project team and Mr. Custer would develop a timeline for development and review of a plan for the redevelopment of this site. Authorize the City Manager to execute an agreement with Mr. Custer to continue the exclusive for a period of not to exceed one year, subject to meeting the fimelines for 6 MOUND I'IRA MINU'I~$ - SEPTEMBER 13, 2000 the development of the proposed site and not causing a significant hardship in the redevelopment of Auditors Road District. HRA Board Member Ahrens suggested negotiating an exclusive contract that could be renewable the same as for the developers. HRA Board Member Hanus stated that in this case the development is difficult because of the lot lines. A one-year deadline would fie up everyone. He further stated that he wanted to give Mr. Custer adequate time to explore this option, but did not want to hold it up. Mr. Custer stated that he is very motivated to get this done. He has already done the soil and stability tests and also feels that the lot line issue can be addressed with an alley easement. Mr. Custer stated that he felt 30 days would allow him to find the answers to many outstanding questions. Mr. Prosser suggested setting deadlines at 30, 90, and 180 days. The City could then terminate the contract if the timelines were not met. HRA Board Member I-Ianus stated that the success or failure of this proposal would be much more evident after 30 days. The City Manager suggested that the agreement could set benchmarks tied to the timelines. Mr. Prosser added that this could be structured so that noncompliance would allow the HRA to terminate the agreement. HRA Board Member Weycker suggested moving forward with only the 30-day exclusion at this point. MOTION by Ahrens, seconded by Brown, to allow a 30-day exclusive for the Ken Custer property with benchmarks to be reviewed by the HRA. The vote was unanimously in favor. Motion carried. 5-0. 1.9 REOUF~T AUTHORIZATION TO PROCEED WITH TRAFFIC STUDY FOR CSAH I$/CSAH 110 AND DOWNTOWN MOUND. MOTION by Brown, seconded by Weycker to approve the authorization. The vote was unanimously in favor. Motion carried. 5-0. ADJOURNMENT; MOTION by Brown, seconded by Weyeker to adjourn the meeting at 7:45 p.m. The vote was unanimously in favor. Motion carried. 5-0. 7 MOUND ~ MINUTES - SEPTEMBER 13, 2000 Kandis Hanson, City Manager Attest: City Clerk