2004-02-10AGENDA
MOUND HOUSING AND REDEVELOPMENT AUTHORITY
February 10, 2004
7:20 P.M.
Open Meeting
Approval of minutes from January 27 and January 29 meetings
Consideration/Action on HRA Reimbursement Resolution for
Custer property - Resolution No. 04-01H
Realignment of CSAH 15
A. Approval of Consent to Enter and Waiver of Trespass
Agreement
B. Approval of Purchase of Right-of-Way for Parcel 28
Page
1-4
5-6
7-8
9-11
12-14
5. Adjourn
MOUND HOUSING AND REDEVELOPMENT AUTHORITY MINUTES
TUESDAY, JANUARY 27, 2004
The Mound Housing and Redevelopment Authority of and for the City of Mound,
Minnesota, met in regular session on Tuesday, January 27, 2004, at 7:10 p.m. in
the council chambers of city hall.
Members Present: Chairperson'Pat Meisel, Commissioners Bob Brown, Mark
Hanus, David Osmek (arrived at 7:15 p.m.) and Peter Meyer.
Others Present: Executive Director Kandis Hanson, Finance Director Gino
Businaro, Public Community Development Director Sarah Smith and City
Attorney John Dean, Cindy Reiter
1. OPEN MEETING
Chair Meisel called the meeting to order at 7:10 p.m.
2. APPROVE AGENDA
MOTION by Hanus, seconded by Brown to approve the agenda. All voted in
favor. Motion carried.
3. APPROVE MINUTES
MOTION by Brown, seconded by Hanus to approve the minutes of the January
27, 2004 meeting. All voted in favor. Motion carried.
Councilmember Osmek arrived at 7:15 p.m.
4. REPORT ON INDIAN KNOLL MANOR BY WESPORT PROPERTIES
Cindy Reiter of Westport Properties presented the Manager's Monthly Report as
follows:
a. December Bank Statement
b. December Income Statement
c. 'Review of Bills - MOTION by Brown, seconded by Hanus to approve
payment of the bills presented for a total of $39,518.46.
d. Manager's Report - Hanus asked about the five current vacancies and
Reiter indicated that two units are now rented and several appoints have
been set up for the others. She stated that previously Indian Knoll's
marketing has been local and they are now expanding their search area.
e. Resident Council Report- Brown asked about the vacancy of a resident
representative to sit on the HRA. Reiter commented that the organization
is struggling a bit are working on finding someone to sit on the Board.
Hanus indicated that the law doesn't require that someone sit on the
Board, but states they can opt to if the Board desires.
HRA Minutes - January 27, 2004
5. ACTION ON 2003ANNUAL FINANCIAL REPORT
Gino Businaro pre~ented ~the.Annual Report and the Management Report to the
HRA. He nd cated that Staff was pleased with the "Qualified Opinion" as shown.
He also indicated'.[hat'tH'~i..fir.'~t column "General Fund" is the HRA Levy Amount
that shows how much money is in the bank for redevelopment. The
Management Report includes several recommendations and the one that HRA
cannot change is the "Separation of Duties" due to the size of staff.
MOTION by Osmek, seconded by Brown to approve the 2003 Annual HRA
Financial Report. All voted in favor. Motion carried.
6. ADJOURN
MOTION by Osmek, seconded by Brown to adjourn at 7:25 p.m. All voted in
favor. Motion carried.
Attest: Bonnie Ritter, City Clerk
Chair Pat Meisel
2
MOUND HOUSING AND REDEVELOPMENT AUTHORITY
JANUARY 29, 2004
The Mound Housing and Redevelopment Authority of and for the City of Mound,
Minnesota, met in special session on ThUrsday, January 29, 2004, at 7:00 p.m. in
the council chambers of city hall.
Members Present: Chairperson Pat Meisel, Commissioners Mark Hanus, David
Osmek and Peter Meyer.
Members Absent: Bob Brown
Others Present: City Attorney'John Dean, Executive Director Kandis Hanson,
Community Development Director Sarah Smith, Public Works Director Carlton
Moore, Financial Advisor Sid Inman, Paul Robinson (MHRD), Dave Newman
(MHRD), Chuck Alcon (MHRD), Tom Stokes (MHRD), Rick Bloomquist and John
Seibert and two other representatives of MHRD.
1, OPEN MEETING
Chair Meisel opened the meeting at 7:00 p.m. and turned the meeting over to
Acting Chair Hanus to avoid possible perceived conflict of interest' as she and her
husband own property in the Langdon District.
2. DISCUSSION/ACTION ON TERM SHEET FOR MOUND HARBOR
RENAISSANCE DEVELOPMENT
Financial Advisor Sid Inman of Ehlers and Associates and City Attorney John
Dean went over the Term Sheet for the proposed MHR Development. Project
will include three phases including: Phase 1 - Lost Lake; Phase II- Auditors
Road; and Phase III - Langdon Lake. Financial incentives to undertake Phase II
include $550,000 in development fees, additional profits estimated to be in
excess of $770,000, and Phase I tax increment which is estimated to be over
$2,300,000. Construction is expected to begin in 2005.
Significant change in the MHRD proposal includes the removal of the CSAH 110
District as it is not financially feasible at this time. CSAH 110 will still be included
in the TIF District and the Term Sheet includes a provision that MHRD shall have
a right of first refusal from the date of City approval of the TIF District for the
CSAH 110 District
Staff noted that discussions are continuing with MHRD and the City / HRA
regarding the hotel project proposed by Rick Bloomquist. Financing details for
the proposed hotel were discussed and are included in the Term Sheet and
Exhibit E which was distributed at the meeting.
A number of minor language changes to the Term Sheet were suggested by Rick
Bloomquist and John Seibert.
1
Mound HRA Minutes - .January 29, 2004
MOTION by Osmek, seconded by Hanus to approve the Term Sheet for Mound
Harbor Renaissance Development with a condition that the Final Development
Agreement be delivered at the April 13, 2004 meeting. The following voted in
favor: Hanus, Osmek and Meyer. The following voted against: None. Mayor
Meisel abstained from voting. Motion carried.
Chair Meisel presided over the balance of the meeting.
3. DISCUSSION/ACTION ON CUSTER PURCHASE AND LICENSE
AGREEMENTS
Chair Meisel provided an overview of the negotiations with Ken and Sally Custer
which have taken place over the past few weeks for acquisition of the Glass Plus
property located on Shoreline Drive so as to accommodate a proposed advanced
start for the hotel project as the Auditors Road project is not expected to begin
until 2006. In general, the purchase agreement includes a $437,500 sale price
which includes relocation benefits. The HRA is scheduled to close on the
property within the month or so. Additionally, a License Agreement has been
prepared which would allow the Custers to remain in the building until October 1,
2004 subject to conditions.
Hanus requested the addition of the word "be" as follows on page 2 of the
Purchase Agreement, under item 2 on the last line of the first paragraph: The
License Agreement will b_ge executed by the parties at closing.
Osmek moved, Hanus seconded, to approve the Purchase Agreement with
Kenneth and Sally Custer, with the above requested revision, subject to approval
of the internal loan resolution by the City Council. All voted in favor. Motion
carried.
Osmek moved, Hanus seconded, to approve the License Agreement for the
Custer property, subject to approval of the internal loan resolution by the City
Council. All voted in favor. Motion carried.
City Attorney Dean informed the HRA that the internal loan resolution will come
before the Council at their February 10, 2004 meeting, and that the estimated
closing date for this property is in April of 2004.
4. ADJOURN
MOTION by Osmek, seconded by Hanus to adjourn the meeting at 8:4 0 p.m.
voted in favor. Motion carried.
All
Attest: Bonnie Ritter, City Clerk
Chairperson Pat Meisel
2
HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF MOUND
RESOLUTION NO. 04'01H
DECLARING THE OFFICIAL INTENT OF THE
HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF MOUND
TO REIMBURSE CERTAIN EXPENDITURES FROM
THE PROCEEDS OF BONDS TO BE ISSUED BY THE AUTHORITY
WHEREAS, the Internal Revenue Service has issued Treas. Reg. § 1.150-2 (the
"Reimbursement Regulations") providing that proceeds of tax-exempt bonds used to
reimburse prior expenditures will not be deemed spent unless certain requirements are
met; and
WHEREAS, the Housing and Redevelopment Authority in and for the City of Mound (the
"Authority"), or Mound Harbor Renaissance Development, LLC under a contract with the
Authority, expects to incur certain expenditures that may be financed temporarily from
sources other than bonds, and reimbursed from the proceeds of a tax-exempt bond;
WHEREAS, the Authority has determined to make this declaration of official intent
("Declaration") to reimburse certain costs from proceeds of bonds in accordance with the
Reimbursement Regulations.
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COMMISSIONERS OF
THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF
MOUND, AS FOLLOWS:
1. The Authority, in cooperation with .the City, proposes to undertake the
following projects (the "Project").
Mound Harbor Renaissance Downtown Redevelopment Project
2. The Authority reasonably expects to reimburse the expenditures made for
certain costs of the Project from the proceeds of bonds in an estimated maximum principal
amount of $450,000. All reimbursed expenditures will be capital expenditures, costs of
issuance of the bonds, or other expenditures eligible for reimbursement under Section
1.150-2(d)(3) of the Reimbursement Regulations.
3. This Declaration has been made not later than 60 days after payment of
any original expenditure to be subject to a reimbursement allocation with respect to the
proceeds of bonds, except for the following expenditures: (a) costs of issuance of bonds;
(b) costs in an amount not in excess of $100,000 or 5 percent of the proceeds of an issue;
or (c) "preliminary expenditures" up to an amount not in excess of 20 percent of the
aggregate issue price of the issue or issues that finance or are reasonably expected by the
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Authority to finance the project for which the preliminary expenditures were incurred. The
term "preliminary expenditures!' includes.~.iarchitectural, engineering, surveying, bond
issuance, and similar costs that are incurred prior to commencement of acquisition,
construction or rehabilitation of a prOj?ct, other than land acquisition, site preparation, and
similar costs incident to commencement of construction.
4. This Declaration is an expression of the reasonable expectations of the
Authority based on the facts and circumstances known to the Authority as of the date
hereof. The anticipated original expenditures for the Project and the principal amount of
the bonds described in paragraph 2 are consistent with the Authority's and the
budgetary and financial circumstanCes. No sources other than proceeds of bonds to be
issued by the Authority are, or are reasonably expected to be, reserved, allocated on a
long-term basis, or otherwise set aside pursuant to the Authority's or the City's budget
or financial policies to pay such Project expenditures.
5. This Declaration is intended to constitute a declaration of official intent for
purposes of the Reimbursement Regulations.
Adopted by the Board of Commissioners of the Housing and Redevelopment Authority in
and for the City of Mound this 10th day of February, 2004.
HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR THE
CITY OF MOUND
Chairperson
Attest: Executive Director
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~ H
ARTERED
470 Pillsbury Center
200 South Sixth Street
Minneapolis MN 55402
(612) 337-9300 telephone
(612) 337-9310 fax
http://www, ken nedy-graven.com
ROBERT J. LLNDAIJ.
Attorney at Law
I)ir~et Dial (612) 337-9219
Real Property Law Specialist,
Certified by Minnesota State Bar Assn.
February 6, 2004
(DICTA TED B UT NOT READ)
VIA EMAIL AND U.S. MAll,
SarahSmith~cityofmound. com
Sarah Smith
City of Mound
5341 Maywood Road
Mound, MN 55364-1627
Re:
Realignment of County Road 15 - Parcel 28
Outlot A, Mounds Vision Addition
PIN No. 13 117 24 33 0087
Dear Sarah:
Enclosed is the Consent to Enter and Waiver of Trespass Agreement which Hennepin County has
requested with respect to the above property as I have revised it for approval by the HRA Board.
As submitted, the County assumed the owner was the City. The HRA had been buying the property
on a contract for deed. There are some title issues to be resolved.
I am satisfied with the form of Consent to Enter and Waiver of Trespass Agreement which is
enclosed and I recommend the HRA Board approve it.
The County also submitted an offer to purchase the property which was received by Carlton Moore.
I recommend changes to that which I am enclosing for you. I believe he has the actual document so
that the changes should be typed on to that form so that it is signed in the name of the HRA rather
than the City. The interests being acquired by the County are a permanent easement totaling 4,059
square feet and a temporary easement totaling 4,440 square feet each of which are described in the
attachment to the Consent to Enter and Waiver of Trespass Agreement. The County has offered
$26,200 as compensation for the easements which I recommend that the I-IRA Board approve. If
the two documents are approved, the HRA Board should authorize execution on behalf of the HRA
and delivery to the County. Please be sure that Carlton and I each receive copies of the executed
documents.
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. Sarah Smith Ltr
February 6, 2004
Page 2
Please let me know if you have any questions.
Very truly yours,
Robert J. Lindall
RJL:peb
Enclosures
cc: Carlton Moore (w/encs.)
Bonnie Ritter (w/encs.)
John Dean (w/encs.)
RJL-243589vl
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C
CONSENT TO ENTER
AND
WAIVER OF TRESPASS AGREEMENT
The Housing and Redevelopment Authority in and for the City of Mound, a public body
corporate and politic under Minnesota law, being the equitable owner of that certain real
estate located in Hennepin County, Minnesota, hereby consents to allowing the County of
Hennepin, by and through its Transportation Department, a governmental subdivision
corporate and politic under the laws of Minnesota, and its duly authorized agents or
assigns, to enter upon said property for the purpose of Road Construction. Said
construction to be along and upon that part of:
Outlot A, Mound Visions Addition
(Property Identification Number: 13 117 24 33 0087) which is legally described on Exhibit
A attached hereto.
It is specifically understood and agreed that the above named equitable owner has
not received consideration for the above described right to enter and that consideration for
the granting of this Consent to Enter and Waiver of Trespass is to be determined pending
completion of an appraisal by a private sector appraisal firm.
The purpose of this Agreement is to allow construction at the earliest time. The above
named equitable owner expressly waives any claims of trespass, which they may
otherwise have over and across the property above described.
IN WITNESS WHEREOF, the undersigned have caused this instrument to be
executed this day of ,2004.
THE HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR THE CITY OF MOUND
By:
Title:
By:
Title:
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MU200-92
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EXHIBIT A
Parcel No. 28 (CSAH No. 15, Proiect No. 9417
Abstract Property
PID No. 13-117-24-33-0087
A permanent easement for highway purposes over all that part of the following
described tract:
Outlot A, MOUND VISIONS ADDITION, according to the duly recorded
plat thereof,
which lies northerly of the following described line:
Commencing at the southwest corner of Section 13, Township 117, Range
24; thence run northerly along the west line thereof on an assumed bearing of
North 3 degrees 09 minutes 49 seconds East for a distance of 1003.52 feet;
thence North 89 degrees 39 minutes 04 seconds East for 157.91 feet to a point on a
tangential curve, concave to the north having a radius of 1037.25 feet and a
central angle of 4 degrees 10 minutes 40 seconds with said point being the
actual point of beginning of the line being described; thence easterly along the arc
of said curve a distance of 75.63 feet, said arc subtended by a chord bearing North
87 degrees 33 minutes 44 seconds East; thence North 85 degrees 28 minutes 25
seconds East tangent to said curve for 173.49 feet to a point on a tangential
curve, concave to the southwest having a radius of 352.00 feet; thence
southeasterly along the arc of said curve a distance of 200.00 feet and said line
there terminating.
Also a temporary easement for construction purposes over all that part of
the above described tract described as follows:
Beginning at the northwest corner of said Outlot A; thence run southerly
along the west line thereof for a distance of 9.46 feet; thence easterly,
deflecting to the left 95 degrees 13 minutes 30 seconds for 117.31 feet;
thence northerly, deflecting to the left 90 degrees O0 minutes 00 seconds
for 9.58 feet more or less to the north line of said Outlot A; thence westerly
along said north line a distance of 116.45 feet more or less to the point of
beginning.
Also a temporary easement for construction purposes over all that part of
the above described tract which lies northerly of the following described
line:
Commencing at the northeast corner of said Outlot A; thence run
southerly along the east line thereof for a distance of 63.54 feet to the
actual point of beginning of the line being described; thence
northwesterly, deflecting to the right 107 degrees 54 minutes 45
seconds for 52.44 feet; thence westerly, deflecting to the left 9
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degrees 43 minutes 19 seconds for 60.00 feet and said line there
terminating.
Also a temporary easement for construction purposes over all that part of
the above described tract described as follows:
Commencing at the southwest corner of said Outlot A; thence
easterly along the south line thereof for 12.24 feet to the actual
point of beginning; thence northerly deflecting left 90 degrees O0
minutes 00 seconds for 8,60 feet; thence easterly for 264.84 feet
more or less to a point on the east line of said Outlot A distant
1 0.17 feet northerly from the southeast corner of said Outlot A;
thence southerly along said east line for 10.17 feet more or less to
said southeast corner; thence westerly along said south line of
said Outlot A for 263.90 feet more or less to the point of
beginning.
Said temporary easement(s) to expire
RJL-243281vl
MU200-92
Hennepin County Transportation Department
1600 Prairie Drive
Medina, MN 55340-5421
763-745-7500, Phone
763-478-4000, Fax
763-478-4030, TDD
www.co.hennepin.mn.us
OFFER TO PURCHASE - STATEMENT OF COMPENSATION
Housing and Redeve.:l, ppment Author, i<tY for the
TO: City of Mound
C/O Bonnie Ritter, City Clerk
5341 Maywood Road
Mound, MN 55364
RE: County Highway 15, Project 9417,.Parcel #28 .
The County of Hennepin hereby offers ail. parties who have an interest in the real estate to be acquired and
described beloW, the sum of $ 26.200.00., which has been estimated to be just compensation for such
property and rights based upon the fair market value Of the property. A summary of the amount set out
above as just compensation is as follows:
(a) Identification of the real property to be acquired:
Property Tax ID# 13 117 ]Z4 33 0087, located at Unassigned Address, Mound, MN, as
indicated on the attached sketch.
(b) Type of interest being acquired:
Permanent Highway Easement of: 4,059 Square Feet
Temporary Easement of: 4,440 Square Feet
(c) Identification of improvements including' fixtures which are to be acquired: NONE
(d) Identification of real property improvements not owned by the owner of the land: NONE
(e) Summary of fair market value and offer:
(1) Land & Improvements ......................................... $ 21,900.00
(2) Damages to Remainder (Inc/udes Temporary Easement) .... $ 4,300.00
(3) Less Benefits .............................................................. 90
(4) Total ................................................................ $ 26,200.00
An Equal Opportunity Employer - 12- Recycfed Paper
J~ ~J J~ ~ JJ~JJ
'~'his offer is based
on a review and. analysis of an appraisa[(~,)::oTi'tlfii~ property by a qualified appraiser(s)
You will have a reasonable length of time to consider t-he:::8~Jt~;¢¥:;T~0ii~'~.:in your decision you may wish to
secure your own appraisal. Minnesota law provides f0r~!reimbursement in an amount not to exceed
$1,500.00 for the actUal cost of an appraisal of property:~quired;':by direct purchase. Reimbursement
cannot be made, however, until your property is acquired. · ,--
If you decide to accept the offer, the parcel will be acquired by di~:~c'~ purchase and you will be paid upon
satisfactory evidence of merchantable title. If the offer is unacceptable you may have your property
acquired in an eminent domain proceedings.
Your signature on this OFFER TO PURCHASE is only for the verification that such an offer has been made
to you and does not prejudice your right to have the final amount determined through condemnation
proceedings in the event you do not accept the offer.
Please return this signed OFFER TO PURCHASE in the enclosed self-addressed envelope. Returning the
signed. OFFER TO PURCHASE only indicates that you received an offer and when.
If the OFFER TO PURCHASE is acceptable, please check the box below and sign the acceptance. Upon
Return of this document, I will prepare the necessary documents and contact you for signature(s),
E] The
This offer is accepted: .B~;
Housing and Redevet, opment Authorit~ for the City of Mound
Date: December 5, 2003
Gary Hoecherl,
(763)-745-7542
Right of Way Agent, Hennepin County
I CERTIFY THAT, on this
delivered to me.
day of
, 2003, a copy of this document was
The. Housing and Redevelopment Authority of the City
of Mo, ufid
By!
Signature
Executive Director
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HENNEPIN COUNTY TRANSPORTATION DEPARTMENT
RIGHT OF WAY DIVISION
1600 Prairie Drive, Medina, MN 55340,5421
LAND AND BUILDING ACQUISITION DATA
Owners
....................................... C.O.N.CQ_INC..E'[.AL. RoadNo. .1.~ ........ Proiect 9.~,..1.7.. ................ Parcel ~.8. ..............................
~ AD. DRE~S..U~AS$~GNED ................. PID_.__.~ .1.3.-.'J..1.~'..-2.~.~3.:3.~. ....
Address
Date Printed:
9/4/2003
SKETCH
233 2~ -----'
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