Loading...
1999-08-03NIINUTES -HOUSING AND REDEVELOPMENT AUTHORITY AUGUST 3, 1999 • The Housing and Redevelopment Authority of the City of Mound, Hennepin County, Minnesota, met in a regular session on Tuesday, August 3, 1999, at 7:30 PM, in the Council Chambers at 5341 Maywood Road, in said City. Those present: Mayor Pat Meisel; Councilmembers Bob Brown (arrived at 7:59 p.m.), Mark Hanus, and Leah Weycker; Acting City Manager Fran Clark; , Financial Director Gino Businaro; Assistant City Planner Bruce Chamberlain, City Attorney John Dean; Tenant Representative Sharon Cook; and Secretaries Carla Wirth and Sue McCulloch. Those absent: councihnember Andrea Ahrens. Mayor Meisel called the meeting to order at 7:40 p. m. PRESENTATION OF PRELIMINARY DEVELOPMENT AGREEMENT WITH COAST TO COAST. The Assistant City Planner presented the preliminary layout plan for the proposed Coast to Coast building in Mound. It was noted the building would be moved as close to the railroad tracks as possible in order to maximize a development site to the north. The 35 feet of City- owned property north of the building could be combined with the Mueller parcel for future development. The actual placement of the building could shift somewhat if any easements or unforeseen circumstances arise through the survey process currently underway or through negotiations with the County. ~ xe~ •~- Aloe It was further noted that the preliminary alignment of County Road 15 and the addition of a parking bay on County Road 110 will encroach on the west and north sides of the property. The City noted it would like to retain a generous sidewalk corridor along County Road 110 (between 10 and 14 feet) so any building would follow the approximate westerly alignment of Coast to Coast. An issue stated that soon will be addressed with Hennepin County is whether they will be pushing for additional County Road 110 right-of--way width as part of downtown redevelopment. This impact could obviously impact the property somewhat further. The Assistant City Planner noted by mid-August the realignment of County Road 15 and the survey work should be accomplished. He stated a preliminary development agreement would be available for review at the August 10 HRA meeting. Discussion. Councilmember Hanus stated he is happy to see the area of the development larger than what he originally thought it to be. • The Assistant City Plann~noted the preliminary development agreement and noted that all property owners and the Housing and Redevelopment Authority were agreed with the plans being proposed. He basically needs approval of the preliminary agreement from the HRA. MOUND HRA MINUTES -AUGUST 3, 1999 Councilmember Hanus wanted to be assured there would be zero setbacks to lot lines and the buildings would be attached. The Assistant City Planner stated this is correct. The Assistant City Planner stated there was a Resolution passed by Council recently which states who would be responsible for the acquisition part of this project. He stated the County would be actually responsible for the acquisition but the City does share in this responsibility. The Assistant City Planner advised there is joint concern regarding the railroad tracks. The location of the building is now 40 feet from the tracks and the new building will sit only 15 feet from the tracks, which may cause rumbling to be heard within the building. The Assistant City Planner stated even though there may be rumbling this project, as a whole, would still have a positive impact to the City. There is always that chance that the tracks may change with future plans. The Assistant City Planner stated that both areas of land are very workable for redevelopment. The Housing and Redevelopment Authority indicated they would entertain the preliminary development agreement at the next meeting on August 10, 1999. RECOMMENDATION FOR THE PREPARATION OF A FORMAL PURCHASE AGREEMENT FOR VACANT PROPERTY ON SHORELINE DRIVE (NEXT TO SUPER AMERICA. PID #113-117-24 34 0063 & 007 FROM CK DEVELOPMENT CO./ BALBOA LIMITED PARTNERSHIP. The City Attorney reviewed the letter dated July 23, 1999 from Evergreen Land Services Company to CK Development Company/Balboa Center Limited Partnership regarding the negotiation and acquisition of properties in the downtown area of Mound. He noted the recommendation to the Authority that a purchase agreement contain a purchase price of $500,000, all of which would be payable at closing, and that the purchase would be contingent on marketable title., satisfactory environmental and soils review. It is anticipated a closing would be held this fall. Discussion. The City Attorney stated that no action is required tonight. He explained he needs to report back to the developer whether a preliminary draft of the purchase agreement can begin. The City Attorney then presented a draft Purchase Agreement. He brought to their attention the modest contingencies, the source of financing involved, and the Notice to Balboa Center Limited Partnership specifically for review. Mayor Meisel was assured that the closing would take 45 days from the date of the Purchase • Agreement. Funds for this project will be made available. _, Brown arrived at 7:59 p. m. 2 . ' MOUND HRA MINUTES -AUGUST 3, 1999 The City Attorney was directed to prepare the final Purchase Agreement with consideration at the August 10, 1999, meeting. QUALIFYING SCIi00L DISTRICT SITE FOR TAR INCREMENT TREATMENT. The City Attorney reviewed his letter dated July 27, 1999 indicating the tax increment law requires that "the substandard building was demolished or removed by the authority or the demolition or removal was financed by the authority or was done by a developer under a development agreement with the authority." He explained this provision would enable the HRA and School District to enter into an agreement that would recite that the district was undertaking the redevelopment of the site through the demolition of existing structures and the sale of the cleared site to a third party for construction of new improvements. The agreement would then provide that the HRA would agree to use a portion of the tax increment generated from the development of the site to reimburse the district for those costs of demolition which were not reimbursable from any other third-party source available to the district. The City Attorney stated although the use of tax increment to cover such demolition expenses may not, by itself, provide the district with significant funds, the qualification of the site for tax increment treatment through the process described above will create the opportunity to provide additional finding to the district to cover other legitimate items in addition to the demolition expenses. Discussion. The City Attorney suggested he be directed by the HRA to prepare a short form agreement between the school district and the HRA giving authority for the redevelopment of the site and including in the agreement the use of the tax increment. It was noted the demolition is scheduled for August 16, 1999. The City Attorney stated that even if the City covers the entire cost of demolition, after three years the expense would be more than paid back to the City. Mayor Meisel stated that the letter reiterates everything that took place at the meeting she attended with the City Attorney and School District. The City Attorney stated this project is a bit complex for a first TIF project and encouraged the HRA to ask questions if they have any. This matter will be further discussed on August 10, 1999. • TAX INCREMENT POLICY. MOUND HRA MINUTES -AUGUST 3, 1999 The City Attorney addressed the Tax Increment Policy. He explained the purpose of this • Policy is to establish the Housing and Redevelopment Authority's position as it relates to Tax Increment Financing for private development. He generally felt this was an appropriate policy, but not mandatory. He stated the Housing and Redevelopment Authority should realize that whatever policy they do come up with, if they decide to have a policy, the Housing and Redevelopment Authority should always have the authority to spend the monies as they see fit. The City Attorney touched briefly on a few issues of the Policy. He pointed out specifically: 1. The purpose of the Policy, 2. The eligible uses for the tax increments, 3. The tax project approval criteria with noted restrictions, 4. TIF proposals should normally be used to support projects with letters of intent or pre-leasing for less than 50 percent of the available leasable project, 5. Notice of Equity, and 6. Notice of Application fee. The Notice of Application fee is monies required up-front by the developers, which is nonrefundable, and collected as the developers enter the door stating that the City will not be out of pocket and also shows that the developers are serious with their intentions. Councilmember Brown asked if the City owned property, can that property and given to the • developers. This is possible according to the City Attorney only by a land write-down method. However, the project must generate enough tax increment to reimburse the City for the cost of the land write-down. The City Attorney noted the mention of equity participation which would need to be discussed on aproject-by-project basis. He stated if it is not known the exact level of assistance, then the City can incorporate a "ratchet" so if the development is stabilized, the need is actually less than given, they would need to pay the City back for that amount. The City Attorney recommended the HRA review this policy information for future discussion. He also recommended the non-refundable application fee be established and charged when the application is submitted to assure the City's substantial costs for review of the developer's plans and proposals are covered. Councilmember Hanus asked if TIF is granted, will the monies be reimbursed through TIF. The City Attorney stated some of the fees are reimbursable with a cap of 1090. Or the fees can be viewed as an important component of the City's budget. Councilmember Hanus stated when applications are made it is strictly on a development-by- development case, not for the whole area. This is correct according to the City Attorney, although sometimes the City will have to determine whether the developer can perform. • Councilmember Brown stated the City could use money outside of the district but it would only allow for 25 percent. r 4 e~rP 1 ~:.~.:C! MOUND HRA MINUTES -AUGUST 3, 1999 Councilmember Weycker stated concerns regarding ~ wo k~ o by staff aan nee Plannirigat new ~ be changed. Brown advised this issue S • Commission. ADTOURNI~NT• MOTION made by Hanus, seconded by Brown, to adjourn meeting at 8:29 P.M. The vote was unanimous- Motion carried. Francene C. Clark, Acting City Manager .c/~~-- nc P~.~- m ~,`s e1 ~ Gig rep-~~ s - z_