2002-06-11 CITY OF MOUND
HOUSING AND REDEVELOPMENT AUTHORITY
JUNE 11, :2002
The Housing and Redevelopment Authority of and for the City of Mound, Minnesota,
met in regular session on Tuesday, June 11,2002, at 6:30 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: City Attorney, John Dean; Executive Director, Kandis Hanson; City
Clerk, Bonnie Ritter; Community Development Director, Sarah Smith; Finance Director,
Gino Businaro; Rod Dietrich, Tom Stokes, Rick & Susan Bloomquist, Jim Prosser, Joe
Bisanz, Chuck Alcon, Doug Ahrens, Jim Schultz.
1. OPEN MEETING
Chairperson Meisel opened the meeting at 6:30 p.m.
2. APPROVE AGENDA
Chair Meisel requested a change to the title of item #4, which should be VIP Properties
Report.
MOTION by Brown, seconded by Osmek to approve the agenda as amended. All voted
in favor. Motion carried.
3. APPROVAL OF MINUTES
MOTION by Hanus, seconded by Brown to approve the minutes of the May 21st ,
special meeting, the May 28th regular meeting, the June 4th special meeting and the
June 6th special meeting. All voted in favor. Motion carried.
4. VIP PROPERTIES REPORT
Joe Bisanz of VIP Properties reported to the Authority, reviewing the May bills, giving a
general update on operations, reporting that bids will be retained for roof repair, and
presenting the bank statements.
Bisanz introduced Doug Ahrens who will be in charge of maintenance at Indian Knoll
Manor, and Jim Schultz, Property Manager.
MOTION by Brown, seconded by Hanus to approve payment of the May bills. All voted
in favor. Motion carried.
5. DEVELOPER'S PROPOSAL REGARDING POST OFFICE LAND
John Dean explained that Rod Dietrich, developer of the new post office, has proposed
a revision in the land sale transaction. Basically, the revision is that Mr. Dietrich would
forego the tax increment available to him (approximately 192,000 plus interest) and in
Mound HRA- June 11, 2002
return the HRA would reduce the purchase price from $272,000 to $150,000 (a
$122,000 reduction). This would result in a net benefit to the HRA of about $70,000.
Dean also recommends that three things be done that would reduce the risk that the
stream of payments would be less than expected. Those are: (1) Have an assessment
agreement with Dietrich - this is to stipulate a minimum market value for the life of the
district; (2) have Dietrich enter into a deficiency agreement with the HRA- if the TIF
generated from the development is ever less than what is needed to amortize the
$122,000 then Dietrich would have to make it up as a personal obligation; and (3) the
HRA should confirm that the building plans do include the enhancements that prompted
the City and the HRA to consider assistance in the first place.
MOTION by Brown, seconded by Osmek to accept Mr. Dietrich's proposal that reduces
the purchase price to $150,000, and to incorporate the three stipulations as outlined
above by John Dean. All voted in favor. Motion carried.
Mr. Dietrich noted that the ground breaking will be on June 13, at 3:00 p.m.
6. RESOLUTIONS APPOINTING DEVELOPERS FOR DOWNTOWN MOUND
REDEVELOPMENT
MOTION by Osmek, seconded by Brown to adopt the following resolution. The
following voted in favor: Brown, Hanus, Meisel and Osmek. The following voted
against: Meyer. Motion carried.
RESOLUTION NO. 02-05H: RESOLUTION NAMING PRINCIPAL DEVELOPER FOR
THE LOST LAKE AND AUDITORS ROAD DISTRICTS.
Meyer stated he voted against this resolution because he has a bad feeling about giving
all three development areas to one main contractor. He's afraid that gives the
developer too much power. Other Commissioners felt very comfortable with Landform
undertaking redevelopment in all three areas and found their concepts to be very
favorable.
Chairperson Meisel turned the meeting over to Acting Chair Hanus at this point in the
meeting because of a possible perceived conflict of interest regarding the Lake Langdon
District.
MOTION by Brown, seconded by Osmek to adopt the following resolution. The
following voted in the affirmative: Brown, Hanus and Osmek. The following voted
against: Meyer. Meisel abstained from voting. Motion carried.
RESOLUTION NO. 02-06H: RESOLUTION NAMING PRINCIPAL DEVELOPER FOR
THE LAKE LANGDON DISTRICT.
Chairperson Meisel returned to convene over the balance of the meeting.
HRA Meeting - June 11, 2002
Chair Meisel asked Tom Stokes, representing Landform, to introduce the members of
his development team, being Rick and Susan Bloomquist for the hotel portion and
Chuck Alcon, Project Developer.
Stokes thanked the HRA for their confidence and stated that the development team
looks forward to not only working with the City, but to bring forth all businesses of
Mound and fine tune their concept.
7. ADJOURN
MOTION by Osmek, seconded by Brown to adjourn the meeting at 7:20 p.m. All voted
in favor. Motion carried.
A{'test: Execut(ve Director, Kandis Hanson