Loading...
2007-03-27MOUND HOUSING AND REDEVELOPMENT AUTHORITY MARCH 27, 2007 The Housing and Redevelopment Authority in and for the City of Mound, Minnesota, met in regular session on Tuesday, March 27, 2007, at 6:30 p.m. in the council chambers of city hall. Members present: Chair Mark Hanus; Commissioners David Osmek, Mike Specht, John Beise and Greg Skinner Others present: City Attorney John Dean, City Clerk Bonnie Ritter, Community Development Director Sarah Smith, Finance Director Gino Businaro, Sid Inman, Dave Newman, Tom Stokes, Chuck Alcon, Catherine Pausche, Amanda Schwarze, Ken Perbix, Paula Larson, Steve Stecker, Chris Kennelly, Janie Skinner, Greg Christlieb, Theresa Wallum 1. Open meeting Chair Hanus called the meeting to order at 6:30 p.m. 2. Approve agenda MOTION by Beise, seconded by Osmek to approve the agenda. All voted in favor. Motion carried. 3. Approve minutes MOTION by Osmek, seconded by Beise to approve the minutes of February 27, 2007. All voted in favor. Motion carried. 4. Indian Knoll Manor Manager's Monthly Report Theresa Wallum presented the manager's monthly report as follows: A. February bank statement B. January income statement C. Review of bills paid: MOTION by Osmek, seconded by Specht to approve the bills for February. All voted in favor. Motion carried. D. Manager's report -The patio roof is leaking and quotes will be obtained for the repair. 5. Discussion/Action on downtown Mound redevelopment project, including update from Mound Harbor Renaissance Development, LLC Tom Stokes of MHRD presented an update on Lost Lake and Auditor's Road Districts. Steve Stecker of Welsh Construction presented concept plans for Auditor's Road, showing a proposed parking plan and summary schedule. He stated that the prospective restaurant tenant needs a promise that they will be operational by April 1, 2008 in order to sign a lease. Mound HRA Minutes -March 27, 2007 Chris Kennelly of Welsh Development stated that they have been receiving inquiries on retail and commercial possibilities for Auditor's Road. Once the finance gap is resolved they can move forward. John Dean stated they are trying to find a way to deal with the gap. The rate of return needs to make sense to attract investors and tenants. Sid Inman of Ehlers & Associates, Inc., informed the HRA that at the current time a "look back provision" will be re-evaluated. John Dean commented that under the current development agreement, MHRD is to reimburse the city for the acquisition of the Glass Plus property ($450,000) plus the MTC parcel ($100,000). If they have to pay the city for these costs, the project wouldn't be financially feasible. It is understood that to proceed these costs would be absorbed by the city, plus acquisition of an additional parcel. The gap of $1 million is made up of approximately $780,000 for the additional property, the parking ramp costs not covered by the LC Grant, and $200,000 for standard improvements, being road and streetscape improvements. Inman indicated that the state regulates how the city can finance for the gap. If MHRA receives all of the Tax Increment, the City can issue Tax Increment bonds. MHRD would pay back 20% of these bonds, or $200,000. The City would pay the balance. Osmek asked about the possibility of a local option sales tax. Inman informed him that they could proceed with the TI bonds, and replace the payment later with local option sales tax if that's the decision made. Hanus wanted to make clear that the parking ramp would be a public improvement, not private development. MOTION by Osmek, seconded by Beise to accept the preliminary financing proposal, issuing Tax Increment Bonds, with MHRD paying 20%, and will accept this financing plan when formally presented. All voted in favor. Motion carried. 6. Adjourn MOTION by Osmek, seconded favor. Motion carried. Attest: Bonnie Ritter, City Clerk by Specht to adjourn at 7:27 p.m. All voted in Chair Mark Hanus 2