2008-01-08~ ~ r
PLEASE TURN OFF CELL PHONES & PAGERS IN COUNCIL CHAMBERS. n
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AGENDA ~- ~'},y
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~MOUNB FiOUSIN~,.~_R~DEVEL-O EN'S'- AUTII~RITY
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ANNUAL MEE'T`ING
'TUESDAX, J~ANUAR-'Y 8 200$ - 6:30 PM
MOTJND CITE CO~TNCIL CIlA11~BERS
Page
1. Open meeting
2. Action approving agenda, with any amendments
3. Action approving minutes: December 1 1, 2007 -Regular Meeting 1-2
4. Action on resolution appointing David Osmek as Acting Chairperson 3
of the HRA for 2008
5. Action on resolution appointing Gino Businaro as Acting Executive 4
Director of the HRA for 2008
rr^~,6. Action on resolution approving letter of credit reduction and 5-8
'' authorizing release of original document (No. 232 (1)) for
Villas of Lost Lake
7. Consideration of authorizing staff to respond to offers from
owners of properties:
1. Curtis Johnson estate 5545 Shoreline Drive
2. Roger Beckel 5567 Shoreline Drive
3. Kenneth Perbix 5575 Shoreline Drive
(The HRA will be asked to close this portion of the meeting
pursuant to the Minnesota Open Meeting Law.)
8. Adjourn
325445v2 JBD MU220-2
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MOUND HOUSING AND REDEVELOPMENT AUTHORITY
DECEMBER 11, 2007
The Mound Housing and Redevelopment Authority in and for the City of Mound,
Minnesota, met in regular session on Tuesday, December 11, 2007, at 6:00 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, Executive Director Kandis Hanson, Bill &
Dorothy Netka, Ken Perbix, Terry Foster, Chuck Alcon, David Newman, Zach Stensland,
Chris Kenelly.
1. Open meeting
Chair Hanus called the meeting to order at 6:00 p.m.
2. Approve agenda
MOTION by Specht, seconded by Osmek to approve the agenda. All voted in favor.
Motion carried.
3. Approve minutes
MOTION by Osmek, seconded by Specht to approve the minutes of the November 27,
2007 meeting. All voted in favor. Motion carried'
(~ 4. Approve cancellation of December 25, 2007 regular meeting
MOTION by Specht, seconded by Osmek to cancel the regular meeting scheduled for
December 25, 2007. All voted in favor. Motion carried.
5. Status resort from Mound Harbor Renaissance Development, LLC_wth any
necessary action
Zach Stensland of Welsh Properties updated the HRA, stating that they have four
interested parties for the restaurant site and Parking Deck 2 is a critical piece to getting a
restaurant tenant.
David Newman of MHRD stated they have Letters of Intent out and will report back in
February as to the status of these. He told the HRA that they have interest from small
sandwich shops for a possible tenant for the space beside Caribou.
6. Redevelopment Financing and Projects
A. Consideration of authorizina staff to respond to offers from owners_of properties
John Dean indicated that the HRA would be going in to closed session to discuss
responses to offers for sale of properties. State statutes authorize to hold this portion of
the meeting in private. The HRA went into closed session at 6:13 p.m.
The HRA reconvened at 6:52 p.m. and John Dean stated that the HRA had discussion
with legal counsel to discuss responses to the proposed property sale offers and was
given direction how to proceed. He will get in touch with property owners to let
them know results of those discussions.
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HRA Minutes -December 11, 2007
6B. Transit District -Deck 1
Sarah Smith stated that staff is evaluating possible funding sources to alleviate the
estimated $150,000 deficit in the transit district which is associated with contaminated
soil found during construction of the transit district ramp. Staff will continue to update
members of the HRA regarding this matter.
6C. Auditor's Road -Deck 2
Sarah Smith is working with the Met Council on extending the $1.15 million grant that
expires on June 30, 2008. She will report back to the HRA on progress.
6D. Next steps -none
7. Consideration of Resolution Authorizing Execution of Amended and Restated
T_ax Increment Pledge Agreement for Series 2008A Bonds (Dump clean-up)
John Dean explained that the original pledge was passed in connection with the
temporary bond issue and now the City Council is looking at approving the sale of
another temporary bond issue to take its place. The HRA needs to pledge the tax
increment to the City so that payment can be made on the bonds.
MOTION by Osmek, seconded by Specht to adopt the following resolution. All voted in
favor. Motion carried. ~ _
RESOLUTION NO. 07-08H: RESOLUTION AUTHORIZING EXECUTION OF AN
AMENDED AND RESTATED TAX INCREMENT PLEDGE AGREEMENT WITH THE
CITY OF MOUND RELATING TO TAXABLE GENERAL OBLIGATION TAX
INCREMENT TEMPORARY REFUNDING BONDS, SERIES 2008A, TO BE ISSUED IN
AN AMOUNT NOT TO EXCEED $4,105,000
8. Adjourn
MOTION by Osmek, seconded by Specht to adjourn at 7:00 p.m. All voted in favor.
Motion carried.
Chair Mark Hanus
Attest: Bonnie Ritter, City Clerk
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CITY OF MOUND
RESOLUTION NO. 08-01 H
RESOLUTION APPOINTING DAVID OSMEK
AS ACTING CHAIRPERSON OF THE HRA FOR 2008.
WHEREAS,-the-By-Laws governing the Housing and Redevelopment Authority of and-
for the City of Mound state that at its first meeting each year an Acting Chairperson shall
be appointed; and
WHEREAS, The Acting Chairperson shall perform the duties of Chairperson during the
disability or absence of the Chairperson from the City or, in the case of vacancy in the
office of Chairperson, until a successor has been appointed and qualifies;
NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Mound,
Minnesota, to appoint David Osmek as Acting Chairperson of the Housing and
Redevelopment Authority for 2008.
Adopted by the HRA this 8th day of January, 2008. _ _
Chair Mark Hanus
Attest: Bonnie Ritter, City Clerk
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CITY OF MOUND
RESOLUTION NO. 08-02H
RESOLUTION APPOINTING GINO BUSINARO
AS ACTING EXECUTIVE DIRECTOR OF THE HRA FOR 2008.
WHEREAS, it is determined that the Acting Executive Director of the HRA shall perform
the duties of Executive Director during the disability or absence of the Executive
Director from the City or, in the case of vacancy in the office of Executive Director, until
a successor has been appointed and qualifies;
NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Mound,
Minnesota, to appoint Gino Businaro as Acting Executive Director of the Housing and
Redevelopment Authority for 2008.
Adopted by the HRA this 8th day of January, 2008.
Chair Mark Hanus
Attest: Bonnie Ritter, City Clerk
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L t 1
5341 Maywood Road
Mound, MN 55364
(952) 472-3190
MEMORANDUM
To: Mound Housing and Redevelopment Authority
From: Sarah Smith, Community Development Director
Date: January 3, 2008
Re: Lake Community Bank Irrevocable Letter of Credit No. 232 (1)
Reduction and Release -Villas on Lost Lake
Summary. Chuck Alcon, on behalf of Mound Harbor Renaissance (MHR), has
submitted a request (see attached) as allowed by the Contract for Private
Redevelopment with MHR to reduce the amount of the letter of credit for the Villas
of Lost Lake project to $0.00 and to authorize return of the original document to the
Lake Community Bank in Long Lake.
Recommendation. Based on its review, Staff recorr~mencts approval of the
attached resolution authorizing reduction of the amount of Letter of Credit No. 232
(1) and release of the original document to the Lake Community Bank.
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MOUND HOUSING AND REDEVELOPMENT AUTHORITY
RESOLUTION N0.08- H
APPROVING LETTER OF CREDIT REDUCTION AND AUTHORIZING RELEASE OF
ORIGINAL DOCUMENT FOR VILLAS OF LOST LAKE
WHEREAS, Chuck Alcon of Alcon & Associates, Project Manager for the
Developer of the Villas of Lost Lake project, has requested that the Mound Housing and
Redevelopment Authority reduce Lake Community Bank Irrevocable Letter of Credit No.
232 (1) for the Villas on Lost Lake project to $4:A0 and authorize its release to the Lake
Community Bank.
WHEREAS, Mound Staff has reviewed the submitted request and recommends approval.
NOW THEREFORE, BE IT RESOLVED by the Housing and Redevelopment Authority in
and for the City of Mound, Minnesota to reduce Lake Community Bank Irrevocable Letter
of Credit No. 232 (1) to $0.00 and authorize release of the original document to the Lake
Community Bank as recommended by Mound Staff.
Adopted by the HRA this 8th day of January
Chairperson Mark Hanus
Attest: Kandis Hanson, Executive Director
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~s~ ~ ~ °`~Q~-
December 5, 2007
City of Mound
5341 Maywood Road
Mound, MN. 55364
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Attn: Honorable Mayor and City Council Members
Subj: Request for Letter of Credi# Reduction
Ref: a) First Amendment to the Contract for Private Re-Development
b) Lake Community Bank trrevocabie Letter of Credit No. 232(1)
Encl: 1) Summary of 2007 Lost Lake Market Values (Payable 2008)
1. Section 12 of reference a) amends the original re-development contract
relative to the tax deficiency guarantee. Specifically the required
$500,000 Letter of Credit shall remain in place until the Assessor's Market
Value reaches $6,000,000 and reduced thereafter so that when the
Assessor's Market Value first reaches $9,000,000 the Letter of Credit shall
be released. Referring to enclosure 1), the Assessor's 2007 Market Value
for taxes payable in 2008 is $9,567,000. In accordance with section 12 of
reference a), it is requested that reference b) be reducec~to $000 based
on the Assessor's 2007 Market Value of $9,567,000 as noted in enclosure
1). It is also requested that this item be placed on the first City Council
meeting in January 2008
2. Please advise Lake Community Bank of your approval action so that the
LOC can be reduced to $0.00 on their records and return the original LOC
to Lake Community Bank Attn: Brian Peters. Thanks for your assistance.
uck Alcon, Project Manager, Villas on Lost Lake
F/ c /~-
Cc: MHRD Dave Newman
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SUMMARY OF LOST LAKE 2007 MARKET VALUES (PAYABLE 2008)
REF: HENNEPIN COUNTY PROPERTY TAX BASE
AS OF NOVEMBER 19, 2007
Site/Unit Address 2007 Est. Market Value
Pa able 2008
5495 Lost lake Lane $168,000
5493 $160,000
5491 $160, 000
5489 $175,000
5487 $175,000
5485 $160, 000
5483 $160, 000
5481 $168,000
5479 $168,000
5475 $160, 000
5473 $153, 000
5471 $160, 000
5469 $175,000
5467 $175,000
5465 $162,000
5463 $160, 000
5461 ~ - $160, 000
5459 $145,000
5457 $145, 000
5453 $145,000
5451 $145, 000
5449 $145, 000
5447 $145, 000
5445 $145, 000
5443 $145, 000
5441 $145,000
2311 Lost Lake Court $145,000
5401 Shoreline Drive $307,000
Sub-Total Vacant Land $4,556,000
5490 Lost Lake Lane $573, 000
5492 $533,000
5494 $537,000
5496 $529,000
2301 Lost Lake Court $549,000
2303 $536,000
2305 $493,000
2307 $538,000
2309 $578, 000
2315 $145,QQQ
Sub-Total Occu ied Residences $5,011,000
Total $9, 567,000
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