2005-02-08PLEASE TURN OFF AT CEI,L PHONES & PAGERS IN COUNCIL CHAMBERS.
AGENDA
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Open meeting
Action approving agenda, with any amendments
Action approving minutes: January 25, 2005
Action extending contract for redevelopment with Mound Harbor
Renaissance
Actions on any downtown redevelopment matters, if needed
Adjourn
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MOUND HOUSING AND REDEVELOPMENT AUTHORITY
JANUARY 25, 2005
The Housing and Redevelopment Authority in and for the City of Mound, Minnesota,
met in regular session on Tuesday, January 25, 2005, at 6:30 p.m. in the council
chambers of city hall.
Members Present: Chair Pat Meisel; Commissioners Bob Brown, Mike Specht, John
Beise and Dave Osmek.
Others Present: City Attorney John Dean, Executive Director Kandis Hanson, City
Clerk Bonnie Ritter, Community Development Director Sarah Smith, Finance Director
Gino Businaro, Chuck Alcon, Kim Britz
1. Open Meetinq
Chair Meisel opened the meeting at 6:30 p.m.
2. Swearinq-in of Commission Members
Kandis Hanson swore in members Meisel, Beise and Specht.
3. Approve Aqenda
Meisel requested the addition of 3A, Approval of Acting Chair for the HRA
MOTION by Osmek, seconded by Brown to approve the agenda as amended. All voted
in favor. Motion carried.
3A. Appoint Actin.q Chair of the HRA
MOTION by Meisel, seconded by Brown to appoint David Osmek as Acting Chair for the
HRA. All voted in favor. Motion carried.
4. Approve Minutes
Motion by Brown, seconded by Osmek to approve the minutes of November 23, 2004.
All voted in favor. Motion carried.
Chair Meisel stepped down at this time because of a possible perceived conflict of
interest, and Acting Chair Osmek presided.
5. Action on Resolution Reqardin.q Tax Increment Financinq
MOTION by Brown, seconded by Beise to adopt the following resolution. The following
voted in favor: Brown, Specht, Beise and Osmek. The following voted against: None.
Meisel abstained from voting.
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HRA Minutes - January 25, 2005
RESOLUTION NO. 05-01H: RESOLUTION REQUESTING THE CITY COUNCIL OF
THE CITY OF MOUND CALL FOR A PUBLIC HEARING ON THE MODIFICATION OF
DEVELOPMENT DISTRICT NO. 1; THE PROPOSED ELIMINATION OF PARCELS
FROM TAX INCREMENT FINANCING DISTRICT NO. 1-2; AND THE PROPOSED
ESTABLISHMENT OF THE MOUND HARBOR TAX INCREMENT FINANCING
DISTRICT THEREIN AND THE ADOPTION OF THE TAX INCREMENT FINANCING
PLAN THEREFOR.
6. Action on Extension of Preliminary Development Agreement with Mound
Harbor Renaissance Development, LLC, until February 23, 2005.
John Dean explained it was anticipated that the final development agreement would be
finished for consideration this evening, but it isn't, and thus another extension is being
requested, until February 23, 2005. Dean cautioned the HRA not to assume that there
are any problems because of the continued extensions. The developer is moving
forward and regularly meeting with city staff. The Council will be asked later this evening
to consider authorization to submit applications to the LMCD, the MCWD and DNR for
permits needed for the Lost Lake Project. These will have to be obtained for the project
to proceed, along with remediation of the dump site contamination.
MOTION by Beise, seconded by Specht to extend the preliminary development
agreement with Mound Harbor Renaissance Development, LLC, until February 23,
2005. The following voted in favor: Brown, Specht, Beise and Osmek. The following
voted against: None. Meisel abstained from voting.
Meisel returned to preside over the rest of the meeting
7. Report in Indian Knoll
Klm Britz of Westport Properties presented the monthly report on Indian Knoll as
follows:
a. December bank statement
b. November income statement
c. Review of bills paid: MOTION by Osmek, seconded by Beise to approve
payment of the December bills in the amount of $28,815.32. All voted in
favor. Motion carried.
d. Manager's Report:
1) Hallway carpeting and painting are complete which fulfills the 2004
capital fund money for interior upgrades.
2) Audit complete: Gino Businaro presented the Annual Financial Report
for year ended September 30, 2004, along with the Management
Letter. MOTION by Osmek, seconded by Brown to acknowledge
receipt of the Annual Financial Report for the HRA for the year ended
September 30, 2004, along with the Management Letter by Abdo, Eick
& Meyers, LLP, dated November 2, 2004. All voted in favor. Motion
carried.
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HRA Minutes - January 25, 2005
8. Adjourn
MOTION by Brown, seconded by Beise to adjourn at 7:10 p.m. All voted in favor.
Motion carried.
Attest: Bonnie Ritter, City Clerk
Chair Pat Meisel
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3
CHARTERED
470 Pillsbury Center
200 South Sixth Street
Minneapolis MN 55402
(612) 33%9300 telephone
(612) 337-9310 fax
http://www.kennedy-graven.com
To:
From:
Subject:
MEMORANDUM
2/4/05
Mound Housing and Redevelopment Authority
City Attorney John Dean
Extension of Preliminary Agreement with MHR
As the HRA is aware, additional testing and analysis work by MHR involving clean-up of the Lost
Lake site is required. With regard to the testing project, a proposed contract with Barr Engineering
and work order have been prepared and are included on the Feb. 8th City Council agenda for review
and consideration. Due to the $70,000 cost associated with the proposed Barr contract, MHR is
concerned about agreeing to pay for the project unless it has some assurance that the I-IRA is not
going to terminate the deal if the development agreement is not ready by the February 22 meeting.
Therefore, MHR is formally requesting that the HRA agree to an additional 60-day extension so as
to allow Barr Engineering to undertake and complete the additional testing in Lost Lake and to
finalize details associated with the development contract. Subsequently, the City Council could
then approve the Barr contract and work order at its meeting with the assurance that MHR would
cover the cost.
As a result, it is my recommendation that the HRA act to extend the term of the preliminary
agreement until April 27, 2005.
Under the preliminary agreement, the passage of a motion to extend the agreement is all that is
required.
Assuming that the HRA approves the extension, staffwill notify MHR of the extension.
JBD-258308vl
MU195-15
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Page 1 of 2
Bonnie Ritter
From:
To:
Sent:
Subject:
"Dean, John B." <jdean(~Kennedy-Graven.com>
<bonnieritter@cityofmound.com>; <sarahsmith@cityofmound.com>
Friday, February 04, 2005 12:36 PM
FW: Mound Harbor Extension
This email from David Newman should also go in the HRA packet.
..... Original Message
From: David Newman [mailto:Dave~bancorgroup.com]
Sent: Thursday, February 03, 2005 4:40 PM
To: Dean, John B.
Cc: Paul Robinson; Jerry Paquin; Chuck A. Alcon; Tom A. Stokes; Peter
Pflaum
Subject: Mound Harbor Extension
John:
On behalf of Mound Harbor Renaissance Development we are requesting
that at the February 8th HRA meeting our agreement with the HRA be
extend an additional 60 days. The agreement currently expires
February 23.
As you know, we have been pushing to have this agreement finalized.
Due to no one's fault new issues keep arising which keep delaying the
finalization of the Agreement. At the same time we have been trying
to address all of the terms in this draft rather than deferring some
issue to be resolved at a later date.
It is my understanding that the current schedule is for the city's
consultants to do some further analysis and that if the results are
favorable to have a final draft by the end of this month. Because of
the complexity of this agreement it will then take approximately two
weeks for all parties to review and agree upon the final draft. This
means the earliest the Agreement could come before the HRA will be
March 22nd. However with winter vacations and if there are any
glitches, this process could easily be extended another 30 days.
At the Feb 8th meeting the City will be asked to authorize a contract
with Barr Engineering for $70,000 which we will be required to pay
for. At the same time we need for Earthtec to do their next stage of
testing which is an additional $40,000. That is $110,000 this week
alone. Consequently before we incur these obligations we need to know
that we won't have an problems getting our preliminary agreement
extended for a reasonable length of time.
Recognizing how the HRA prefers to extend this agreement in small
increments I would like to address the reason for 60 days. I do not
think anyone can doubt our commitment to this project. We have
invested to date, $1,000,000 in this project. We have done this in
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Page 2 of 2
good faith. However since at least one council member has indicated
they are not comfortable with any more extensions, a 30 day extension
is not acceptable. We are requesting a reasonable period that we are
confident we can have an agreement executed within, not a time period
that only works if there are no hiccups in finalizing the agreement.
I would also like to point out that while I understand why the delays
have occurred, we are not the cause of the delays and we are as
frustrated as anyone by the fact that the final agreement has not been
signed. Regardless this is a very complex and difficult project which
means that the agreement is equally complex and difficult and it
simply takes more time than any of us would like.
Thank you.
David P. Newman
The Bancor Group, Inc.
1521 94th Lane NE
Blaine, MN 55449
direct (763) 792-8975
fax (763) 792-8976
mobile (612) 599-7270
dave(~,bancorgroup.com
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