2002-01-22r
3
AGENDA
MOUND HOUSING AND REDEVELOPMENT AUTHORITY
JANUARY 22, 2002
6:30 P.M.
6:3 0 1. OPEN MEETING
2. ACTION APPROVING AGENDA, WITH ANY AMENDMENTS
3. ACTION APPROVING MINUTES: JANUARY 8, 2002 1-3
4. ANNOUNCEMENT OF GRAMERCY CORPORATION 4_g
WITHDRAWAL AS DOWNTOWN REDEVELOPER, WITH
DISCUSSION; RECONIlVlENDATION TO SET JOINT CITY
COUNCIL/HRA SPECIAL MEETING WORKSHOP: FEB 13,
7:00 PM
5. ADJOURN
CITY OF MOUND
HOUSING AN:D REDEVELOPMENT AUTHORITY
JANUARY 8, 2002
The Housing and Redev®lopment Authority of Mound, Hennepin County, met in regular
session on Tuesday, January 8, 2002, at 6:30 p:m. in the council chambers at 5341
Maywood Road in said City.
Members Pr-went: Chairperson Pat Meisel, Commissioners Bob Brown, Mark Hanus,
David Osmek and Peter Meyer.
Others Present: City Manager, Kandis Hanson; City Attorney, John Dean; City Clerk,
Bonnie Ritter; Community Development Director, Sarah Smith; Executive Director,
Pinky Charon; Larry Olson, Lou Stocco, Sid Inman-
1. OPEN MEETING
Chairperson Pat Meisel opened the meeting a# 6:33 p m.
2. SWEAR IN DAVID OS:MEK AS H.RA MEMBER
City Manager, Kandis Hanson, swore in David Osmek as HRA Member.
3. APPROVE -AGENDA
MOTION by Hanus, seconded by Brown to approve .the agenda. All voted in favor.
Motion carried.
4. APPROVE M#NUTES
MOTION by Hanus, seconded by Brown to approve the minutes of the November 27,
2001, regular meeting. All voted in#avor. Motion carried..
5. EXECUTIVE DIRECTOR'S REPORT
A. Monthly Bills for December. 2001 and.. January. 2002.
MOTION by Meyer, seconded by Osmek to approve the bills for December, 2001 in
the amount of $101,002.33, and the bills for January,. 2002, in the amount of
$13,787.3:'1. All voted in favor. Motion carded.
B. Information Items
1) Budget Progress Report for October ad November, 2001.
2) Marquette Bank Statement
3) Wells Fargo Bank Sta#ernent
4) MBIA Summery
5) Levy Money Received
6) NAHRO Informs#ion flyer
7) Memo about Executive director Review
NRA Minutes -January 8, 3003
6. I~1lETROPLAINS D.EV~If).PM~NT AGREEMENT
City Attorney, John Dean, i~xplained the r®v>sions in this agreement compared to the
initial agreement dated December ~, 2000. He stated that the overwhelming reason for
the amendment and restated contract is to modify the manner in which financial
assistance payable to the developer will be made available to the developer. The
difference is the nature of the instruments that will determine how the assistance is
provided. This amended and restated contract called for two bond issues (one tax
exempt and one taxable), and two notes (one to the commercial and one to the
residential) to cover the tax increment, up to the agreeable amount.
Sid Inman of Ehlers & Associates, also addressed the Council, summarizing that the
amended and restated contract does not increase the City's liability.
City Attomey Dean presented a letter to the City Manager, stating; his opinion that
Chairperson Meisel has no conflict of interest in voting on this matter.
MOTION by Brown, seconded by Osmek to approve the Amended and Restated
Contract for Private Development between the Mound HRA and MetroPlains
Development, as presented. The following voted in favor: Brown, Hanus, Meisel and
Osmek. The following voted against: Meyer. Motion carved.
Chairperson Meisel stepped down 'as Chair because of a perceived conflict of interest
on the next item. Chairperson Hanus took over the meeting at this point.
7. GRAMERCY GORPORATI4N DEVELfJPMENT AGREEMENT
City Attomey Dean gave some history, sta#ing that last Fall the HRA considered and
gave preliminary approval of a draft of a development agreement with Gramercy
Corporation. Since that time, there have been a series of discussions with the
developer concerning preparation for the final form of the agreemen#, which is before
the HRA now. He stated that the proposed agreements splits the project into three
components; housing: on Lake Langdon, housing on Auditor's Road, and the
commercial portion on both sides of Commerce Blvd.
Hanus voiced: concern over the phasing issue stated in the agreement. The agreement
gives priority to the Lake Langdon residential firs#; then the Auditor's road residential,
followed by the commercial. He has concern that after the two residential portions are
completed, the. developer has no legal obligation to complete the commercial portion of
the project, leaving the downtown with only residential development. He expressed that
he thinks it's more difficult to find a developer to come into take on only the commercial
aspect, which is the riskiest portion of the project. fn order to support this agreement,
he stated he needs some form of guarantee that the commercial wi l also be done, or
linked with the residential and done concurrently. Brown has these same concerns.
HRA Minutes -January 8; 2~2
Lou Stocco of Gramercy Corporation, stated that when it cornea to the commercial
portion of the project, they will build what they can lease. He feels that before the
commercia{ portion can be started, the downtown has to have the residential to provide
the clientele for the commercial businesses.
Meyer stated support for this development agreement, that the City needs activity
downtown and that the Council should move forward and iron out the details.
Dean explained than the tax increment financing is connected to the commercial portion
of the project, and tha# the developer cannot take advantage of this financing unless
they complete the comr~ner-vial portion of thee. project. Osrnek asked-what the amount of
this financing -whether it is a big enough carrot to atfi act another developer if
Gramercy would end up doing only the residential portion of the project.
MOTION by Osmek seconded by Brown to table this item until the January 22nd
meeting, in order to get the figures on the tax increment financing for this project. The
following voted in favor: Brown, Hanus and Osmek. The following voted against: Meyer.
Meisel did not vote as she had previously stepped down for this portion of the meeting.
Motion carried.
Chairperson Meisel returned to preside over the balance of the meeting.
8. ADJOURN
MOTION by Brown, seconded by Meyer to adjourn at 7:53 p.m. All voted in favor.
Motion carried.
Chairperson Pat Meisel
A#test: Executive Qirector
MEMORANDUM
1/17/02
To: City Council and HRA
From: Kandis Hanson
Subject: Review of Downtown Redevelopment Strategies.
I am including in the agenda materials copies of the following:
a letter I received from Gramercy last Friday withdrawing from further consideration as
developer of the Lake Langdon and Auditor Road areas of Downtown Mound.
transcript of a phone voice message from Lou Stocco to John Dean.
Gramercy's withdrawal from consideration provides us with an important opportunity, and I
believe, a necessary one to review our plans for the downtown area. I believe that review should
include not only consideration of how we should approach redevelopment of the Lake Langdon and
Auditor's Road areas from both a design and timing standpoint, but also should include a further
look at the timing, the extent and the financing of the public infrastructure planned for downtown.
I hope that our discussion on these matters will provide the necessary information to allow
us to determine how to proceed with development of the downtown area and implementation of
Mound Visions.
I anticipate that this topic may take some time; and consequently I would suggest that
special meetings of both the HRA and the Council be called for February 13, 2002 beginning at
7:00 at City Hall. I plan to ask Jim Prosser and Bruce Chamberlain to take the lead role in
presenting this topic to you.
Please check your availability so that we can schedule the meeting on Tuesday.
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•
G R A M E R C~
C O R P O R A T I O N
Creating Cooperative Communities
January 9, 2002
Kandis M. Hanson.
City Manager
City of Mound
5341 Maywood Road
Mound, M1V 55364
RE: Downtown Redevelopment
Dear 1VIs. Hanson:
Please accept this letter as our formal withdrawal from the above -
referencedproject.
Unfortunately, based on the HRA meeting last night, it is clear that over a
year of work has not resulted in a consensus to proceed. We can no longer
continue to make fnancial investments in this project without complete city
support. Accordingly, our project management team. and consultants are
today being reassigned to another deuelopment.
We wish to thank you and your outstanding legal and technical support team
for their assistance and extend to all our best wishes for success in the
coming year.
Sincerely,
Mic 1 W. Conlan
President
Cc: John Dean
Rolfe Warden
Q
6601 LyndaleAvenue Souch Suite 110 • Richfield, MN 55423 • www.gramerrycorp.com TEL: 612-243-0467 800-852-0098 FAX: 612-866-2889
Page 1 of 1
Kandis M. Hanson
From: "Dean, John B." <jdean@Kennedy-Graven.com>
To: "Kandis M. Hanson (E-mail)" <kandishanson@cityofmound.com>
Cc: "Bonnie Ritter (E-mail)" <bonnieritter@cityofmound.com>
Sent: Monday, January 14, 2002 2:36 PM
Subject: Voice Message from L Stocco.
Kandis: This is the voice message that Lou Stocco left with me last Friday:
VOICE MAIL MESSAGE TO JOHN DEAN FROM LOU STOCCO
MESSAGE RECEIVED JANUARY 11, 2002, about 8:20 A.M.
OUR FILE NO. MU195-11
Hi John, Lou Stocco. It's about 20 after 8 Friday morning. I apologize for not getting back to you
yesterday, but .... I'm afraid our involvement with Mound is not going to happen. Mike and I had a
couple of long discussions about it and we just don't think the political climate is right out there even if
those guys were to kindof change their tune and go along with the project. We see them being an
obstacle down the line in terms of planning and design and so forth. We've got some other things as you
probably know on the boards and we're going to push ahead with those things. We did want to let you
know and Kandis and Jim, we appreciate your hard work trying to get this thing going out there. But it
had to be absolutely right for us to do it and I don't think that's the case.
01/14/2002