1999-10-12i, ,
~~ -MOUND HRA -0CTOBIER 12, 1999
• The Housing and Redevelopment Authority of the City of Mound, Hennepin County,
Minnesota, met in a regular session on Tuesday, October 12, 1999, at 7:W p.m., in the
Council Chambers at 5341 Maywood Road, in said City.
Those present: Mayor Pat Meisel; Councilmembers Andrea Ahrens, Bob Brown, Mark
Lanus, and Leah Weycker; Acting City Manager Fran Clark; City Attorney John Dean;
Assistant City Planner Bruce Chamberlain; and Secretary Sue McCulloch.
Mayor Meisel called the meeting to order. Mayor Meisel stated the Housing and
Redevelopment Authority was meeting tonight without an Agenda for discussion.
1.0 R~iTAL FORBEARANCE aGREEMENTT
The Assistant City Planner stated he would appreciate at this time the City Attorney
instructing the Housing and Redevelopment Authority about the Agreement.
The City Attorney stated Mr. Chamberlain received a call from a landowner whose tenant's
lease has expired causing a vacant space. This landowner is located in the downtown area.
The landlord approached Mr. Bud Storm, the acquisition agent, wanting to know if there is
any basis the Housing and Redevelopment Authority would be interested in subsidizing a
normal rental stream so he would not have to have another tenant to occupy the space before
they buy of the property. The City Attorney stated the Housing and Redevelopment
Authority might wanYto do this to prevent it from having to pay relocation benefits after
• obtaining the property, The City Attorney also stated there aze relocation consultants that
will need to be hired when the relocations of tenants occur. The City Attorney stated the
downside of this scenario might be lawsuits that will result.
Councilmember Weycker asked if the Housing and Redevelopment Authority knows who the
business is.
Mayor Meisel stated it is a tenant that possibly rents from a current landowner in town, but
the offset is if he holds off for a few months, then we would not have to buy out a brand
new lease and we would not have to pay relocation fees. Mayor Meisel questioned if it
would be advantageous to the Housing and Redevelopment Authority to pay this landowner
rent for two or three months to offset what he may lose if he could rent it out today.
Councilmember Weycker stated there is a concern of knowing whom the tenant is if there is
large equipment involved.
The City Attorney discussed the Rental Forbearance Agreement proposal. He stated the
Agrcement states the Housing and Redevelopment Authority agrees to pay the landlord rest,
plus interest, until the time the Housing and Redevelopment Authority acquires the property.
The City Attorney stated this Agreement is merely an information item for tonight. He
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T~OUND HRA MINUTES - OCTOBER 12 1999
stated in two weeks at the next Housing and Redevelopment Authority meeting this item will
• be up for discussion. The City Attorney encouraged each Councilmember to review the
Agreement and call him if they have any questions. The City Attorney stated this Agreement
would be an economic benefit for the Housing and Redevelopment Authority.
Councilmember Hams was concerned about relocation costs down the road. Mayor Meisel
stated this would be a brand new tenant and this would benefit the Housing and
Redevelopment Authority.
The Assistant City Planner stated in addition to the economic benefit there would be a public
relations benefit. The Agreement would help keep the landowners satisfied in a difficult
situation while the redevelopment is going on. He stated that landowners would not be
losing any rent.
Mayor Meisel instructed the Acting City Manager to put the Rental Forbearance Agreement
an the Agenda at thc next Housing and Redevelopment Authority meeting in two weeks,
October 26, 1999.
1.1 CONTRACT FOR EVELOPMENT OF SCIi00L DLSTRICT SITE
The City Attorney stated the contract for redevelopment had been submitted to the Westonka
School District for consideration in August and to date the document has not been executed.
The City Attorney stated the Housing and Redevelopment authorized the agreement to
. include the School District property in the Tax Increment Financing District to assist the
School District's potential buyer in developing the site.
The City Attorney stated he now has been have informed the district, as an entirety, will be
able to qualify for tax increment even though the buildings have been demolished. The City
Attorney stated the Housing and Redevelopment Authority would not have to enter -into an
agreement with the school district in order to preserve the site for a generator of tax
increment within the district. The City Attorney recommends the Housing and
Redevelopment Authority rescind the contract for private redevelopment with the school
district. He stated there are reasons for this being appropriate:
1. Under the contract for private redevelopment the school district would be entitled the
$20,000 for the demolition of the site. If the agreement is terminated, the school
district would not receive thaw monies and it would be available for the Housing and
Redevelopment Authority as it sees fit.
2. If the agreement is terminated, the base value of the school district property will be
reduced. Whatever the redevelopment that will occur on site, there will be additional
tax increment generated.
MOTION by Hanes, seconded by Brown, to rescind the contract for private
redevelopment dated August 12, 1999. The vote was unanimously in favor.
Motion carried. S-0.
• 2
MOUND NRA MINU'IF~S -OCTOBER ~2 1999
p~ ADTOiTI[tNMF~.NT
MOTION by Brown, seconded by Ahrens, to adjourn the meetin= At 7:24 p.m.
The vote was unanimously in favor. Motion carried. S-0.
_ Francene C. Clark, Acting ~ X29- ~I~
~ Manager
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MOUND HOUSING AND REDEVELOPMENT AUTHORITY
Indian Knoll Manor
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~ Check No. Vendor/Merchant Amount Comments
1 Housing Authority Ins ;3,089.00
2 Marquette -IRS 650.00
3 Coast to Coast 97.34
4 Four MFund -Levy loan 500.00
5 Paul Kronholm 14.20
g D 8 S Maintenance 100.00 Boiler repair
7 Com Tech 127.88 security phone repair
8 Reliant Energy 1,231.00
9 City of Mound 1,085.61
10 M E I 138.00
11 AT 8< T Universal 354.48 Internet, conference
12 N S P 1,403.73
13 Kopsa, Sylvester 81.00
14 Glenwood Inglewood 15.87
15 BFI 268.69
16 Metro Group Inc 286.20 boiler chemicals
17 AI's Master Plumbing 317.50
18 Betty Kronholm 197.56
19 Karol Charon 921.84
20 Paul Kronholm 1,152.22
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
TOTAL: S1 Z,032.12
TOTAL ACC. PAYABLE
Begining Bank Bal.
Deposits MTD
ENDING BANK BALANCE
Signature: ,- ~
j: ~, ~~
512,032.12
533,750.45
X9,000.00
;30,718.33
AccPay
10/11/1999
MOUND HOUSING AND REDEVELOPMENT AUTHORITY MEETING
~TOVEMBER 9, 1999, 7:00 P.M.
COUNCII. CHAMBERS, MOUND CITY HALL
TAX INCREMENT FINANCING AGENDA:
1. APPROVE MINUTES OF OCTOBER 26, 1999, REGULAR MEETING. 3705-3708
2. Establish date for joint HRA /City Council public hearing on business
subsidy policy. (See attached HRA letter) 3709-3710
3. Confirm expenditures for Phase II environmental investigation for
Balboa Center properties. (See attached HRA letter) 3711-3713
4. ADJOURNMENT:
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