Loading...
2002-11-12,~ ~ , • AGENDA F,~~ c~~ MOUND HOUSING AND REDEVELOPMENT AUTHORITY NOVEMBER 12,.2002 6:30 P.M. 1. OPEN MEETING 2. ACTION APPROVING AGENDA, WITH ANY AMENDMENTS 3. ACTION APPROVING MINUTES: OCT 22, 2002 REGULAR MTG 1 4. PUBLIC HEARINGS: 1. ACTION ON ADOPTION OF AN AMENDEMENT TO THE 3-6 BUSINESS SUBSIDY CRITERIA • 5. ACTION ON MEMORANDUM OF UNDERSTANDING BETWEEN 7-13 MOUND HRA AND MUELLER-LANSING PROPERTIES 6. ADJOURN i• CITY OF MOUND • HOUSING AND REDEVELOPMENT AUTHORITY OCTOBER 22, 2002 The Housing and Redevelopment Authority of and for the City of Mound, Minnesota, met in regular session on Tuesday, October 22, 2002, at 7:15 p.m. in the council chambers of City Hall. Members Present: Chairperson Pat Meisel; Commissioners Bob Brown, Mark Hanus, David Osmek and Peter Meyer. Others Present: Executive Director Kandis Hanson, City Clerk Bonnie Ritter, Finance Director Gino Businaro, City Engineer John Cameron 1. OPEN MEETING Chairperson Meisel opened the meeting at 7:15 p.m. 2. APPROVE AGENDA MOTION by Brown, seconded by Hanus to approve the agenda. All voted in favor. Motion carried. 3. APPROVE MINUTES MOTION by Osmek, seconded by Hanus to approve the minutes of the regular meeting of • September 24, 2002, and the special meeting of September 26, 2002. All voted in favor. Motion carried. 4. SET PUBLIC HEARING FOR BUSINESS SUBSIDY CRITERIA AMENDMENT MOTION by Hanus, seconded by Brown to set a public hearing for consideration of adoption of an amendment to the business subsidy criteria for Tuesday, November 12, 2002, at 6:30 p.m. All voted in favor. Motion carried. 5. VIP REPORT ON INDIAN KNOLL MANOR Gino Businaro gave a brief report on Indian Knoll in VIP's absence. MOTION by Brown, seconded by Osmek to pay the bills for October as presented. All voted in favor. Motion carried. MOTION by Hanus, seconded by Osmek to adopt the following resolution. All voted in favor. Motion carried. RESOLUTION NO. 02-12H: RESOLUTION APPROVING THE OPERATING BUDGET SUBMITTTED ON 9/11/02. 6. ADJOURN MOTION by Brown, seconded by Osmek to adjourn at 7:23 p.m. All voted in favor. Motion • carried. Chairperson Pat Meisel Attest: Executive Director Kandis Hanson -1- CITY OF MOUND e PUBLIC HEARING NOTICE The Housing and Redevelopment Authority of and for the City of Mound, Minnesota, has adopted business subsidy criteria according to Minnesota Statutes, Sections 116J.993-116J.995 (the "Act"). A public hearing on the adoption of an amendment to such criteria will be held as follows: WHEN: Tuesday, November 12, 2002 6:30 p.m. -Housing and. Redevelopment Authority meeting. WHERE: Mound City Hall Council Chambers 5341 Maywood Road Mound, MN 55364 HOW TO COMMENT: Attend the hearing and you will be heard, or submit written comments. Copies of the proposed business subsidy criteria amendment will be available for public inspection on and after the date of this notice at Mound City Hall during normal business hours. Bonnie Ritter City Clerk Published in The Laker November 2, 2002. • -2- • MOUND HOUSING AND REDEVELOPMENT AUTHORITY RESOLUTION N0.02-13H RESOLUTION ADOPTING AMENDED BUSINESS SUBSIDY CRITERIA WHEREAS, pursuant to notice as is required by Minnesota Statutes Sections 116J.993 through 116J.994, the Housing and Redevelopment Authority in and for the City of Mound has held its hearing on the adoption of an amendment to such criteria which are attached hereto as Exhibit A. NOW THEREFORE, BE IT RESOLVED by the Housing and Redevelopment Authority in and for the City of Mound that the amended business subsidy criteria contained in the attached Exhibit A are hereby adopted. Adopted this 12~' day of November, 2002. Chair Pat Meisel • Attest: Kandis M. Hanson, Executive Director • JBD-180676v1 MU195-2 -3- EXHIBIT A • (Resolution No. 02-13H) HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF MOUND BUSINESS SUBSIDY CRITERIA I. Purpose 1.01 This document includes the criteria to be considered by the Housing and Redevelopment Authority in and for the City of Mound, Minnesota ("HRA") to evaluate requests for business subsidies. It is the intent of the HRA in adopting these criteria is to comply with Minnesota Statutes, Sections 116J.993-116J.995 (the "Act"). The HRA hereby adopts the definitions contained in the Act, for application in the criteria. 1.02 The HRA shall have the option to amend or waive sections of these criteria when doing so is determined necessary or appropriate. Amendments to these criteria are subject to public hearing requirements of the Act. 1.03 These criteria are intended to set specific minimum requirements which grantees must meet to be eligible to receive business subsidies. The HRA will • not adopt business subsidy criteria on a case-by-case basis. II. Statutory Limitations. 2.01 In accordance with the Act, all business subsidy requests must comply with the Act and other applicable Minnesota statutes. The HRA's ability to grant business subsidies is governed by the limitations established in the Act. II1. Goals and Objectives 3.01 It is the HRA's intent to advance the following goals and objectives in granting business subsidies: a) All projects, by not later than the benefit date, must be consistent with Mound's comprehensive plan and any other plan or guide for development of the community or asub-area of the community.. b) Business subsidies must be justified by evidence that the project cannot proceed without the benefit of the subsidy. Potential grantees shall be required to provide such studies, reports, appraisals, information or other data as may be requested by the HRA prior to consideration of a request for business subsidy. If tax increment financing is used to grant a subsidy, the grantee must demonstrate compliance with all statutory requirements • JBD-221047v1 MU195-1 -4- i• of the TIF Act, including the "but for" test. The potential grantee will be required to provide all documentation necessary to make the requisite findings under the TIF Act and the Act. c) Grantees will be required to enter into an agreement with the HRA that is consistent with statutory requirements, and which contains measurable, specific and tangible goals. The Agreement shall include a commitment to continue in operations within the HRA for a minimum of five years after the benefit date, unless waived by the HRA, and shall comply with the specific job and wage goals established for the project, if any. IV. Business Subsidy Criteria 4.01 The HRA recognizes that every proposal is unique. Nothing in these criteria shall be deemed to be an entitlement or shall these criteria establish a contractual right to a subsidy. The HRA reserves the right to modify these criteria from time to time and to evaluate each project as a whole. 4.02 A business subsidy must meet a public purpose. The following criteria shall be utilized in evaluating a request for a business subsidy: • a. Increase in tax base. While an increase in the tax. base cannot be the sole grounds for granting a subsidy, the HRA believes it is a preferred condition for any subsidy. b. Jobs. It is HRA's intent that the grantee maximize the number of jobs at the site. This may include jobs to be retained but only if job loss is specific and demonstrable. c. Wage Floor. The jobs created as a result of any business subsidy approved by the HRA shall pay wages at an hourly rate not lower that 110 percent of the Federal minimum wage for full-time and part-time employees. Any deviation from the established wage floor must be documented in conformity with the requirements set forth in the Act. The provisions regarding wage floor do not apply in an instance in which the HRA, following a hearing, determines that job creation or retention is not part of the public purpose of the subsidy. 4.03 Economic Development. In addition to the criteria in Section 4.02, projects should promote one or more of the following: a. Encourage economic and commercial diversity within the community; b. Contribute to the establishment of a critical mass of commercial development within an area; c. Provide basic goods and services, increase the range of goods and services available or encourage fast-growing or high technology business location or expansion; d. Promote redevelopment objectives and removal of blight, including pollution cleanup; JBD-221047v1 MU195-1 2 -5- e. Promote the retention or adaptive reuse of buildings of historical or • architectural significance; f. Promote additional or spin-off development within the community; or g. Encourage full utilization of existing or planned infrastructure improvements. V. Compliance and Reporting Requirements. 5.01 Any subsidy granted by the HRA will be subject to the requirement of a public hearing, if necessary, and must be approved by the Mound city council. 5.02 It will be necessary for both the grantee and the HRA to comply with the reporting and monitoring requirements of the Act. • JBD-221047v1 MU195-1 3 -6- • DRAFT 10/31/02 MEMORANDUM OF UNDERSTANDING THIS MEMORANDUM OF UNDERSTANDING, is entered into as of the _day of , 2001, by and between the CITY OF MOUND, MINNESOTA, (the "City"), the HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF MOUND, MINNESOTA, (the "HR.A") and MUELLER-LANSING PROPERTIES, a Minnesota partnership, ("Mueller- Lansing") BACKGROUND 1. The City and Hennepin County are contemplating the upgrade, reconstruction and realignment of portions on CSAH 15 and Commerce Boulevard in downtown Mound. (The "Project") 2. Mueller-Lansing is the owner of land described in the attached Exhibit A. (The "Property") • 3. Portions of the Property will be needed asright-of--way for the Project. Additionally, the acquisition will necessitate the removal of structures located on the Property; and the portion of the Properly not needed for right-of--way will have limited development potential. 4. In the Spring of 2001, Mueller-Lansing made a series of requests to the City and the HRA concerning the future use of the Property, and opportunities for Mueller-Lansing to remain in downtown Mound . 5. Following review and consideration of the request, and further discussions with Mueller- Lansing, the staff presented to the HRA at its July 10, 2001 seven options for the future use of the Property, the relocation of Mueller-Lansing and related issues. 6. Following discussion and input from the public and Mueller-Lansing, the HRA approved Option 7 as the preferred option and directed staff to proceed on that basis. Option 7 is more fully shown on the attached Exhibit B ("Option 7") This Agreement is intended to memorialize the understandings of the parties, and to reflect any modifications due to changes in the process by which the Properly will be acquired. RECITALS In consideration of the mutual covenants and promises hereinafter contained, which • consideration is deemed full and adequate by the parties, the parties stipulate and agree as follows: 1. Precondition to Undertaking. The City and the HRA's undertakings hereunder assume: JBD-205588v4 MiJ195-13 -7- • The City enters into a cooperative agreement with Hennepin County providing for the • acquisition of the Property by Hennepin County, and for the conveyance of any residue of the Property not needed for roadway purposes at a price that is acceptable to the City and the HRA. i • Hennepin County actually acquires the Property, and conveys the residue portion to either the City or the HRA. • The HRA is satisfied that the residue portion of the Property can be remediated from any pollution, contamination or unstable soils in a timely and economically practical manner so that the residue portion can be made available for development in a manner consistent with the approved Option 7. • Mueller-Lansing notifies the HRA by not later than July 1, 2002 that it is satisfied that the Option Land can be remediated from any pollution, contamination or unstable soils in a timely and economically practical manner so that the residue portion can be made available for development. If no agreement with Hennepin County is made by May 1, 2002, if the Property is not acquired by Hennepin County by May 1, 2003, or if either the City or the HRA is, for whatever reason, unable to make the determinations described above by those dates, then this Agreement shall terminate and no party shall have any further obligation hereunder. 2. Option Agreement. On the date that Hennepin County acquires title to the Property, assuming that all of the preconditions in Section 1 of this Agreement have been satisfied, the HRA will deliver to Mueller-Lansing an option agreement, granting to Mueller-Lansing an option to acquire the • parcel of land at the east end of the block (the "Option Land") and shown on the Development Scenario for Options 3,4,5 and 6 which is attached hereto as Exhibit C. The option agreement will incorporate the relevant provisions of the memorandum from Jim Prosser to Mike Mueller dated July 3, 2001 and attached to this Agreement as Exhibit D. The option agreement will also contain provisions subjecting the Option Land to special assessments for the Project, assessments for any special services district created to serve the Option Land, and requiring administrative design review to determine conformance with Mound Vision. Special assessments and special service district charges will be uniformly assessed against similarly situated and developed properties in the downtown district. 3. Purchase Price. The purchase price for the Option Land will be its fair market value. If the parties are unable to agree upon a Purchase Price within 180 days from the date the Property has been acquired, each party will select a real estate appraiser to appraise the Option Land and render an opinion as to fair market value. If the appraisals differ by more than 10% (based on the lower value), the purchase price will be determined on the basis of the square foot raw land value paid by Hennepin County in acquiring the Property. Once determined, the purchase price will be modified to reflect value changes (as determined by assessment data) between the valuation date and the date the Option Land is conveyed to Mueller-Lansing. IN TESTIMONY WHEREOF, the parties hereto have set their hands of the day and year first above written. • JBD-205588v4 MU195-13 -$- • City of Mound. By Its By Its Housing and Redevelopment Authority in and for the City of Mound, Minnesota By Its By Its Mueller-Lansing Properties • By Its ., .~ [ACKNOWLEDGMENTS] JBD-205588v4 MU195-13 -9- • This Page Is Left Intentionally Blank -, o- ~Xh; hid ~. ~ /3 • (~~t iorl .. ,~: • ._~.. .:~ -~ .` ~~ ~; - - - {r II . 1~ II Future f Brag. .. ~~ _ _/ ~ . _ . ~, Ti~~vB~ y 3~ ~X ~. _ ~if~. $'t .a .t 1 Q ~T. , . ~ ,. ~ ~-- - . ~: .~----r -. - - --"-'~' ~ .. ~~ ~~~ i 90 Stalls 0' S0' 100' l N O R T H 1 inch equals 50 feet ~ True Value District Dev ,ington Koegler Group, Inc. . Mound, Minnesota -July 5, _i~_ K ~' v -12- G x l~ ~ ~ ~ ~-~ ~ FREERS & ASSOCIATES INC To: Mike Mueller From: Jim Prosser Subject: Proposed Agreement Points for Sale of Property for CSAH15 Date: July 3, 2001 The following is a draft of the proposed agreement points for the purchase of the Mueller/Lansing property for CSAH 15 please review and call me with changes, clarifications or better ideas. After we reach conceptual agreement a document would be drafted for City considerations. Thanks. 1. M!L sell property at value set by appraiser. M/L reserve right to follow condemnation to determine value. 2. Park and Ride would relocated off site. 3. A building pad on the east side of the site would be designated for development. The size (about 10,000 s.f.) and location of the pad would be an attachment to the agreement. 4. M/L would have a two year option (time starts at closing of the sale of their property) to purchase the designated pad. 5. Purchase would be contingent on approval of development plan. 6. Development guidelines would be an attachment to agreement. 7. Purchase price of designated pad would be established by appraisal and included within agreement. Value would be adjusted at time of sale to include interest cost to city to fmance purchase. 8. USPO drop offmail box location would be relocated on site after consulting with M/L. 9. City would build public parking lot adjacent to building. The building would be assigned non specific spaces adequate to meet building parking requirements. 10. M/L agree to special assessment/service area to cover proportional cost of building and maintaining parking. • ', •i • LEADERS IN PUBLIC FINANCE 3060 Centre Pointe Drive Roseville, MN 55113-1105 - ~ 3- 651.697.8503 fax 651.697.8555 jim@ehlers-inc.com