2000-05-23HRA MINUTES - REGULAR MEETING - MAY 23, 2000
The Housing and Redevelopment Authority of the City of Mound, Hennepin County,
Minnesota, met in a regular session on Tuesday, May 23, 2000, at 7:00 p.m., in the Council
Chambers at 5341 Maywood Road, in said City.
Those present: Chairperson Pat Meisel; HRA Board Members: Bob Brown, Mark Hanus
and Leah Weycker. Absent and excused: HRA Board Member Andrea Ahrens and City
Clerk Fran Clark. Also in attendance were HRA Director Pinky Charon, City Manager
Kandis Hanson, City Attorney John Dean, James D. Prosser of Ehlers & Associates, Inc.,
and Secretaries Sue McCulloch and Diana Mestad. Others present: Susan & Terance
Almquist, Cathy Bailey, Janice Beise, John & Kristen Beise, Marilyn Byrnes, Sue & Tom
Cathers, Steve Coddon, Sally Custer, Cathi & Tom Desszighy, Dave Deters, Bruce & Patti
Dodds, Henry Ebert, Mike Empson, June Estelle, John & Shirley Evans, Marty & Gene
Garvais, Mike, Paul & Tom Gaudette, Patrick Griffen, Patty Guttormson, Brian & Theresa
Gulrud, Bryan Haimes, Lorrie Ham, Gina Harty, Jeff & Marlene Harty, Dean Lattin, Muriel
Lattin, Sharon Lock, Jo Longpre, Steven Maddock, Michael Mueller, Peter Meyer, Bill &
Dorothy Netka, Dotty O'Brien, Leona Peterson, Marion Poteete, Roger Reed, Jim Regan,
John Roxel, Kathy Rue, Cathy Scanlon, Loren Schmidt, Mary Steen, Betty Strong, John
Taffe, Margaret Thorne, Tom Turner, Greg Ward, Frank Weiland, Jack Weist, Roger
Westman.
*Consent Agenda: All items listed under this Consent Agenda are considered to be routine by
the Housing and Redevelopment Authority. There Mll be no separate discussion of these
items unless a Councilmember or citizen so request, in which event the item will be removed
from the Consent Agenda and considered in normal sequence.
Chairperson Meisel called the meeting to order at 7:05 p.m.
APPROVAL OF AGENDA AND CONSENT AGENDA.
*1.0 INDIAN KNOLL MANOR CONSENT AGENDA.
Monthly Bills.
Minutes - March 25, 2000.
MOTION.
Hanus, Weycker, unanimously.
1.1 ACCOUNTING ITEMS.
Accountant Reports.
Bank Reports.
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MOUND I-IRA MINUTES - MAY 23, 2000
I-IRA Director reported two months of re rts. She stated on March 31, 2000, the Cit /xuas
six months into budget and doing well. She noted the contract services were high and the
capital improvement money is going for most of these services. HRA Director stated the
City is progressing fine.
HRA Director stated the MBIA money has not been implemented and has an account at
Norwest, which is where the levy money is going in at this time. She explained the money
is not restricted if the need arises to take the money out.
HRA Director stated the balance at the Marquette Bank is a large balance and she would like
to get a better reporting system for the future.
1.2 H.R.A. ACTION ITEMS.
HRA Director stated there were no action items. She mentioned she would be working out a
budget for the year 2001 next month. She stated the five-year plan would now be due in
September because of an extension.
1.3 INFORMATION ITEMS.
A. CBDG GRANT.
HRA Director reported the CBDG Grant was missed this year. The administrators thought
the $100,000 for handicapped accessible units was logical but not the best way to spend the
money at this time. She stated she would continue to apply for the grant during the
upcoming years.
B. PHAS (advisory score).
PHAS report card was favored and an award was to be presented. She stated the financial
category is the lowest because there is no reserve at this time and there is no capital money
to have put back into the building at this time.
C. OIL TANK.
HRA Director reported the oil tank in the front of the building is being worked on by the
City Engineer in hopes to have it removed shortly. The City Manager stated she ordered
estimates on the removal of the tank and she is waiting to receive the estimates.
1.4 TENANT REPRESENTATIVE REPORT.
The tenant representative was absent.
1.5 MISCELLANEOUS.
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MOUND HRA MINUTES - MAY 23, 2000
The next Indian Knoll Manor meeting is scheduled for lune 27, 2000.
TA,~ INCREMENT FINANCING.
1.6 APPROVE MINUTES OF MAY 9, 2000.
MOTION by Hanus, seconded by Weycker, to approve the minutes of May 9,
2000. The vote was unanimously in favor. Motion carried. 4-0.
PUBLIC HEARINGS:
1.7 PUBLIC HEARING TO CONSIDER THE ESTABLISHMENT OF BUSINESS
SUBSIDIES CRITERIA, PURSUANT TO MINN. STAT. SEC. l16J.993-
116J.995.
Mr. James Prosser of Ehlers & Associates, Inc. presented the case. He sated the statute
requires the HRA and City Council establish criteria for use of a business subsidy,
specifically mentioning TIF but this would apply to any type of assistance. He sated the
criteria provided has been available for review and it would take a look at the but-for test to
be consistent with the goals of community and the Comprehensive Plan and the need to show
the need for the assistance. The general criteria, including improvement, essentially would
double the tax base, but depending on situation, there is flexibility as well. Mr. Prosser
sated 50 percent of the building would be preleased. He sated there would be indication of
adequate equity from the developer and any displacement of low or moderate income would
be addressed, such as housing. Mr. Prosser explained subsequent to the criteria, the
legislation adopted new guidelines causing the criteria to be reviewed again at a later date in
time when the new law has been fully absorbed.
Chairperson Meisel opened the public hearing opened at 7:11 p.m.
Tom Gaudette, 3006 Bluffs Drive. Mr. Gaudette was concerned about the type of city funds
this criteria would involve. The City attorney sated these are not specific funds being
mentioned in the criteria. He stated this is the HRA criteria which would involve funds that
came into possession of the HRA, such as other grants and other sources of funding.
Chairperson Meisel closed the public hearing at 7:13 p.m.
MOTION by Hanus, seconded by Weycker, to accept the resolution as submitted.
HRA RESOLUTION//00-09
RESOLUTION ADOPTING BUSINESS
SUBSIDY CRITERIA.
The vote was unanimously in favor. Motion carried. 4-0.
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MOUND HRA MINUTES - MAY 23, 2000
1.8 PUBLIC HEARING TO CONSIDER A PROPOSED BUSINESS SUBSIDY TO
BE GRANTED BY THE HRA TO RAY MAR PROPERTIES, INC. A/K/A
MOUND FAMILY HARDWARE STORE ("THE RECIPIENT"), UNDER
MINN. STAT. SEC. l16J.993-116J.994. THE PROPOSED SUBSIDY
INVOLVES TAX INCREMENT FINANCING ASSISTANCE TO FACILITATE
DEVELOPMENT BY THE RECIPIENT OF A RETAIL CENTER INCLUDING
A HARDWARE STORE IN THE CITY OF MOUND.
The City Attorney stated the HRA has now adopted a business subsidy criteria. He stated to
that end there is now a business subsidy agreement between the HRA and Ray Mar
properties, which is the developer of the Coast to Coast and Dodds property, that would need
to be approved by public hearing as well. The City Attorney stated the Article 10 of the
agreement mentions the business subsidy criteria which states an amount of $250,000 and
interest, will be provided to assist Ray Mar in the development of the hardware store and
related facilities on the redevelopment property. He mentioned an exchange would also take
place but the exchange would be a zero net exchange. The City Attorney stated the
developers' obligations are first, to repay the $250,000 pursuant to a note attached to
contract, and, secondly, to continue to utilize the site for at least five years for purposes set
forth in the agreement. There is a mention of a modest wage and job goal obligations of .5
employees and 100 percent of wage. The City Attorney stated the provisions in the contract
concerning the wage and job goal have changed by legislation and will not be included in
other agreements as of August 1, 2000. The remedies of the agreement are if they fail to
meet the wage and job goals, they need to pay back a portion of the tax increment received
during the period of time of the agreement.
HRA Board Member Weycker questioned the .5 employee consideration. The City Attorney
stated this was a modest number that was put in the agreement because of law that will be
changing as of August 1, 2000.
HRA Board Member Weycker asked if this section is included in the City Council packet as
well. The City Attorney agreed and stated by law the City Council is required to approve
the agreement as well.
Chairperson Meisel opened the public hearing at 7:20 p.m.
Chairperson Meisel closed the public hearing at 7:21 p.m.
MOTION by Weycker, seconded by Brown, to accept the resolution as submitted.
HRA RESOLUTION g00-10 RESOLUTION ADOPTING BUSINESS
SUBSIDY AGREEMENT WITH RAY MAR
PROPERTIES, INC. A.K.A. MOUND
FAMILY HARWARE
The vote was unanimously in favor. Motion carried. 4-0.
MOUND HRA MINUTES - MAY 23, 2000
The City Attorney stated one provision of the criteria agreement, as well as the
redevelopment contract, is that a but-for analysis be performed to decide if the assistance is
favorable.
1.9 EVALUATION OF MAXWELL PROPERTY.
Chairperson Meisel mentioned a letter from Staff giving cost estimates for environmental and
soil testing has not been acquired in time for this meeting.
ADJOURNMENT.
MOTION by Brown, seconded by Weycker, to adjourn the meeting at 7:25 p.m.
The vote was unanimously in favor. Motion carried. 4-0.
Francene C. Clark, City Clerk