2007-03-27BMOUND CITY COUNCIL
MARCH 27, 2007
The City Council of the City of Mound, Hennepin County, Minnesota, met in
special session on Tuesday, March 27, 2007 at 6:30 p.m. in the council
chambers of city hall.
Members present: Mayor Mark Hanus; Councilmembers David Osmek, Mike
Specht, John Beise and Greg Skinner
Others present: City Attorney John Dean, City Clerk Bonnie Ritter, Community
Development Director Sarah Smith, Finance Director Gino Businaro, Sid Inman,
Dave Newman, Tom Stokes, Chuck Alcon, Catherine Pausche, Amanda
Schwarze, Ken Perbix, Paula Larson, Steve Stecker, Chris Kennelly, Janie
Skinner, Greg Christlieb, Theresa Wallum.
1. Open meeting
Mayor Hanus called the meeting to order at 6:35 p.m.
2. Discussion/Action on downtown Mound redevelopment project,
includinu update from Mound Harbor Renaissance Development, LLC
Tom Stokes of MHRD presented an update on Lost Lake and Auditor's Road
Districts.
Steve Stecker of Welsh Construction presented concept plans for Auditor's
Road, showing a proposed parking plan and summary schedule. He stated that
the prospective restaurant tenant needs a promise that they will be operational
by April 1, 2008 in order to sign a lease.
Chris Kennelly of Welsh Development stated that they have been receiving
inquiries on retail and commercial possibilities for Auditor's Road. Once the
finance gap is resolved they can move forward.
John Dean stated they are trying to find a way to deal with the gap. The rate of
return needs to make sense to attract investors and tenants.
Sid Inman of Ehlers & Associates, Inc., informed the HRA that at the current time
a "look back provision" will be re-evaluated.
John Dean commented that under the current development agreement, MHRD is
to reimburse the city for the acquisition of the Glass Plus property ($450,000)
plus the MTC parcel ($100,000). If they have to pay the city for these costs, the
project wouldn't be financially feasible. It is understood that to proceed these
costs would be absorbed by the city, plus acquisition of an additional parcel.
Mound City Council -March 27, 2007 special meeting
The gap of $1 million is made up of approximately $780,000 for the additional
property, the parking ramp costs not covered by the LC Grant, and $200,000 for
standard improvements, being road and streetscape improvements.
Inman indicated that the state regulates how the city can finance for the gap. If
MHRA receives all of the Tax Increment, the City can issue Tax Increment
bonds. MHRD would pay back 20% of these bonds, or $200,000. The City
would pay the balance.
Osmek asked about the possibility of a local option sales tax. Inman informed
him that they could proceed with the TI bonds, and replace the payment later
with local option sales tax if that's the decision made.
Hanus wanted to make clear that the parking ramp would be a public
improvement, not private development.
MOTION by Osmek, seconded by Beise to accept the preliminary financing
proposal, issuing Tax Increment Bonds, with MHRD paying 20%, and will accept
this financing plan when formally presented. All voted in favor. Motion carried.
6. Adjourn
MOTION by Osmek, seconded by Specht to adjourn at 7:27 m. All voted in
favor. Motion carried.
` Mayor Mark Hanus
Attest: Bonnie Ritter, City Clerk
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