2002-11-12,~ ~ ,
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AGENDA
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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
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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
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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.
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• 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
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Attest:
Kandis M. Hanson, Executive Director
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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 •
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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:
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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;
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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.
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• 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:
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• 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. •
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• 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
.,
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[ACKNOWLEDGMENTS]
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90 Stalls
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1 inch equals 50 feet
~ True Value District Dev
,ington Koegler Group, Inc.
. Mound, Minnesota -July 5,
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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.
• ',
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LEADERS IN PUBLIC FINANCE
3060 Centre Pointe Drive
Roseville, MN 55113-1105 - ~ 3-
651.697.8503 fax 651.697.8555
jim@ehlers-inc.com