2009-06-091
PLEASE TURN OFF CELL PHONES & PAGERS IN COUNCIL CHAMBERS.
AGENDA
1. Open meeting
~~
Page
2. Action approving agenda, with any amendments
3. Action approving minutes for May 26, 2009 regular meeting 1-2
• 4. Action approving claims 3-5
5. David Newman of Mound Harbor Renaissance Development (MHRD) 6
with redevelopment update
6. Sarah Smith, Community Development Director
A. Tax Increment Financing (TIF) State legislation update 7-9
B. Federal lobbyist (LGN) funding request update 10-12
7. Any dialogue with those present
8. Miscellaneous/correspondence
A. Letter from Dr Robert Lauer 13
B. Staff response to Dr Robert Lauer 14
C. Article: May Twin Cities Business on Mahogany Bay 15-17
D. Article: StarTrib on redevelopment projects 18-19
• 9. Adjourn
MOUND HOUSING AND REDEVELOPMENT AUTHORITY
• MAY 26, 2009
The Mound Housing and Redevelopment Authority in and for the City of Mound,
Minnesota, met in regular session on Tuesday, May 26, 2009 at 6:30 p.m. in the council
chambers of city hall.
Members present: Chair Mark Hanus, Commissioners David Osmek, and Ray Salazar
Members absent: Commissioners Greg Skinner and Heidi Gesch
Others present: City Attorney John Dean, Executive Director Kandis Hanson, City Clerk
Bonnie Ritter, Community Development Director Sarah Smith, Finance Director
Catherine Pausche, Ken Perbix, Cheri Pugh-Sullivan, Vince Forstyk.
1. Open meeting
Chair Hanus called the meeting to order at 6:32 p.m.
2. Approve agenda
MOTION by Osmek, seconded by Salazar to approve the agenda. All voted in favor.
Motion carried.
3. Approve minutes
MOTION by Osmek, seconded by Salazar to approve the minutes for the May 12, 2009
regular meeting. All voted in favor. Motion carried.
. 4. Approve claims
MOTION by Osmek, seconded by Salazar to approve claims in the amount of
$12,144.15. All voted in favor. Motion carried.
5. Review/discussion -Indian Knoll Manor public housing facility
manaaementloeprations
Kandis Hanson reviewed the history of the facility followed by a report by Sarah Smith
on the research completed. Staff's review raised three basic options for Indian Knoll
which are identified as: (1) Discontinue public housing ownership and self the land to a
private party for some other use which would be subject to all required HUD regulations
and approvals; (2) Disposition of the facility to a public entity or to a private organization
to continue the public housing activity; and (3) Continue operation by Mound HRA with
or without any occupancy change.
Hanus asked what percentage of occupants are Mound residents and Pausche did not
know, but said she would found out for him. Hanus stated that his question of why the
city is running the facility rather than someone else did not get answered. He asked
what benefit it is to the city to be operating this facility. He is concerned with the
responsibility for huge costs that could come up with this aging building. He asked if the
HRA levy has ever been used to finance that facility and Pausche told him that
taxpayers won't be asked to subsidize Indian Knoll Manor. Hanus stated that he is very
skeptical, and not comfortable that in the future citizens won't be taxed for something
related to Indian Knoll.
-1-
Osmek stated that he feels that it is wise to keep local control of this local asset. From
the research done it seems that getting out will be more painful that continuing the
operations. He suggested trying the new system for a while, with a current city
employee at Indian Knoll for two hours a day, five days a week, serving as Housing
Coordinator, and maintenance being performed by current City departments.
Commissioner Gesch arrived at this point in the meeting.
John Dean stated that Pausche is looking for direction if she is to continue down the
lines that she has been. Hanus stated he is not prepared to say that his long term
objective is to continue with the City managing this facility. Osmek is willing to continue
for the time being and maybe re-visiting the issue in a year or two. Salazar concurred
with Osmek with the understanding that all expenses are carried by HUD, and we're not
taxing the citizens.
John Dean asked if there was a consensus to continue with operations as we now are,
and Osmek stated that it looks like a 2-1 in favor of continuing, with Gesch taking a
neutral position because of her late arrival to this meeting. Hanus stated that he wants
more details on the options provided earlier.
MOTION by Osmek, seconded by Salazar to adjourn at 7:30 p.m. All voted in favor.
Motion carried.
Chair Mark Hanus
Attest: Bonnie Ritter, City Clerk
-2-
• MAY_26, 2009 H.R.A. CLAIMS REPORT
~ 052509HRA $6,172.85 MAY ~
TOTAL 6172.85
-3-
City of Mound 06/03/09 11:20 AM
Page 1
Payments
Current Period: June 2009
Batch Name 060909HRA UserpollarAmt $6,172.85
Payments Computer Dol lar Amt $6,172.85
$0.00 In Balance
Refer 60909 CENTERPOINT ENERGY (M/NNEG _
Cash Payment E 680-49800-383 Gas Utilities 04-15-09 THRU 05-14-09 #5746120-4 $1,480.00
Invoice 060909 6!9/2009
Cash Payment E 680-49800-383 Gas Utilities 04-15-09 THRU 05-14-09 #5732031-9 $342.00
Invoice 060909 6/9/2009
Transaction Date 5/27/2009
. Wells Fargo HRA 10120 Total $1,822.00
.........
„T~,..~,,, ~. .,~~ ,A~,ee..a ,~. r.~._~,.....N.._...~. .....~ .
Refer 60909 COMMERCIAL AIR PRODUCTS, IN _ ....~
Cash Payment E 680-49800-402 Building Maintenance PROPELLER EXHAUST FAN $258.21
Invoice 10351 6/9/2009
Transaction Date 6/3/2009 Wells Fargo HRA 10120 Total $258.21
Refer 60909 COVERALL CLEANING CONCEPTS _
Cash Payment E 680-49800-460 Janitorial Services 06-09 CLEANING SERVICE $784.56
Invoice 7070143174 6/9/2009
Transaction Date 6/1/2009 Wells Fargo HRA 10120 Total $784.56
Refer 60909 HD SUPPLY FACILITIES MA/NTEN _
Cash Payment E 680-49800-220 Repair/Maint Supply BULBS, GLOBES, BREAKERS, ETC $407.34
Invoice 49127057 6/9/2009
Transaction Date 6/1/2009
_
~.~,~~, ~ .
.~
>~
~.> <~.
N~,~~~, Wells Fargo HRA 10120 Total $407.34
~ _
..
v
....
._
Refer 60909 HOME VALU INTERIORS _
Cash Payment E 680-49800-402 Building Maintenance #100 CARPET LIVING ROOM, TILE BATH $436.78
Invoice 11047122 6/9/2009
Transaction Date 6/1/2009 Wells Fargo HRA 10120 Total $436.78
Refer 60909 LAWSON PRODUCTS, INC _
Cash Payment E 680-49800-220 Repair/Maint Supply ASSORTED FASTENERS, ETC $222.91
Invoice 8123636 6/9/2009
Cash Payment E 680-49800-220 Repair/Maint Supply NUTS, BOLTS, WASHERS, ETC $45.87
Invoice 8113048 6/9/2009
Transaction Date 6/1/2009 Wells Fargo HRA 10120 Total $268.78
,~ . ~~ ..,:.~.. st..~~
Refer 60909 NABER, C. AND ASSOCIATES ~.....a._ »xa.~, . ..
Cash Payment E 680-49800-301 Auditing and Acct'g Servi 05-31-09 ACCOUNTING SERVICES $103.00
Invoice 46607 6/9/2009
Transaction Date 6/1/2009 Wells Fargo HRA 10120 Total $103.00
,..
Refer 60909 ROBERTS, COLLETTE _ ,,e~ a„,r:., ... ~. ~ ....,: _._ .n_~~,_, ..~_..
Cash Payment E 680-49800-331 Use of personal auto 03-30-09 THRU 05-30-09 MILEAGE $37.44
Invoice 060909 6/9/2009
Transaction Date 6/1/2009
,
.
~,P.<> Wells Fargo HRA 10120 Total $37.44
.~~ ,..,
.
~._ ~_~,
Refer 60909 .
TRUE VALUE, MOUND _
Gash Payment E 680-49800-220 Repair/Maint Supply TANK REPAIR KIT, ETC $21.91
Invoice 59189 6/9/2009
Cash Payment E 680-49800-220 Repair/Maint Supply HUB DONUT $10.11
Invoice 59191 6/9/2009
-4-
City of Mound
Payments
Current Period: June 2009
., ,
Cash Payment E 680-49800-220 Repair/Maint Supply BULBS, BITS, GLOBES, RINGS
Invoice 59214 6/9/2009
Cash Payment E 680-49800-220 Repair/Maint Supply FLAG POLE CORD
Invoice 59566 6/9/2009
Cash Payment E 680-49800-220 Repair/Maint Supply BUTTON PHOTO CONTROL
Invoice 59816 6/9/2009
Transaction Date 6/3/2009 Wells Fargo HRA 10120 Total
,~_~ ~,,..Mr.~ m~ .KK~~ , _ ~~.~ ._ .~ ~_
Refer 60909 WASTE TECHNOLOGY, INCORPO
Cash. Payment E 680-49800-384 Refuse/Garbage Dsposa 06-09 WASTE AND RECYCLING. SERVICE
Invoice 139527 6/9/2009
Transaction Date 6/3/2009 Wells Fargo HRA 10120 Total $284.05
Refer 60909 XCEL ENERGY _
Cash Payment E 680-49800-381 Electric Utilities 05-09 #51-6383341-5 $1,608.36
Invoice 274296678 6/9/2009
Transaction Date 6/2/2009 Wells Fargo HRA 10120 Total
Fund Summary
10120 Wells Fargo HRA
680 HRA PUBLIC HOUSING $6,172.85
• $6,172.85
•
06/03/09 11:20 AM
Page 2
$85.08
$32.46
$12.77
$162.33
$284.05
$1,608.36
Pre-Wrdten Check $0.00
Checks to be Generated by the Compute $6,172.85
Total $6,172.85
-5-
COpy
MEMO
DATE: June 2, 2009
TO: Property Owners in the Lost Lake, Auditor's Road and Lake
Langdon Districts and the John's Variety Block
FROM: City Manager Kandis Hanson
RE: Mound Harbor Renaissance Development (MHRD) Update
& Central Business District (CBD) Parking Program
As property owners in the Lost Lake District, the Auditor's Road District, the
Lake Langdon District and on the John's Variety Block, I wish to notify you of
two upcoming meetings containing topics of possible interest to you.
At the Tuesday, June 9, Mound Housing and Redevelopment (HRA) meeting,
developers will present an update of activity in the Lost Lake, Auditor's Road
and Lake Langdon Districts. City staff will also report on efforts being made by
the City to continue development in those and other districts. The meeting will
begin at 6:30 p.m. in the City of Mound Council Chambers.
The same evening, the Mound City Council will hear a staff presentation and
discuss the Central Business District Parking Program, which will include a
staff recommendation for updating the program. The Council Meeting begins
at 7:30 p.m.
You are invited to attend the portions of the meetings that pertain to you and
hear, first hand, the plans for redevelopment and the determination on the
CBD Parking Program. Should you be a landlord in those areas, you are
encouraged to forward a copy of this letter to your tenants so they may
consider attendance atone or both of the meetings.
Please feel free to contact me with any questions by telephone at
952.472.0609 or email at kandishanson~cityofmound.com.
-6-
b« . , .., i. )I
5341 Maywood Road
• Mound, MN 55364
(952)472-3190
MEMORANDUM
To: Mound HRA
From: Sarah Smith, Comm. Dev. Director
Date: March 9, 2009
Re: June 9, 2009 CDD Summary Report
TIF Legislation. A copy of the legislation that signed into law and extended the 5-Year TIF
Rule is attached. Members are advised that, in addition to the 5-Year Rule, the 4Year
Knockdown Rule was also mod~ed. Additionally, a copy of the email received on Monday,
May 18, 2009 from Senator Gen Olson has also been included. As the HRA is aware, both
Representative Steve Smith and Senator Gen Olson were instrumental with the TIF
legislation and are to be commended for their efforts on our behalf.
LGN Federal Update. An update from Emily Lehrman of LGN regarding Mound's federal
funding request(s) has been provided
-7-
Bill Summary
House Research Department
File Number: H.F. 1298
Version: As amended by the Senate (SH1298A50)
Date: May 12, 2009
Article 5: Local Development
Overview
This article extends the five-year rule to ten years for redevelopment and renewal and renovation tax
increment financing (TIF) districts certified between June 30, 2003, and Apri130, 2009, and extends the
four-year knockdown rule for districts certified between January 1, 2005, and Apri120, 2009. This
expanded authority is intended to give cities more flexibility to respond to the recession and the
slowdown in real estate development.
The authority to finance tourism projects with economic development districts is extended to region 7E
counties. TIF plan requirements and financial reporting is focused on and limited to tax increments,
deleting the requirement to budget and report on the TIF forms use of other sources of funding, such as
grants or payments from other authority money.
7
Four-year knock-down rule. Extends the four-year knockdown rule to six years for TIF districts that
were certified between January 1, 2005, and Apri120, 2009. The knockdown rule requires development
activity to take place on a parcel (qualifying activities include the installation of public infrastructure
improvements adjacent to the parcel) within four years after certification. Failing this, the parcel is
dropped from the TIF district and is only recertified (with its then tax value) as part of the district when
the requisite activity takes place.
8
Five-year rule. Extends the five-year rule to ten years for districts certified on or after July 1, 2003, and
before Apri120, 2009. The five-year rule requires the development authority to complete the district's in-
district activities within five years after certification of the district.
-8-
-----Original Message-----
From: Sen.Gen Olson [mailto:Sen.Gen.Olson®senate.mn]
Sent: Monday, May 18, 2009 4:34 PM
To :_ _SarahSmithc~cityofmound. com
Subject: Mound TIF
Sarah,
The program recently signed into law that extends your 5 year TIF rule can be found in
Chapter 88 under HF 1298, Article 5, Sections 7 and 8.
Please let me know if you have further questions or concerns.
Best wishes!
Gen Olson
State Senator
• District 33
1
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RINDI~.L
1~1AUEN
P.L.i;:'P.
A.ttorneye at Law
www. lock#a{u'Kc+om`
MINNEAPOLIS
Suite 2200
100 Washington Avenue South
Minneapolis, MN 55401-2179
T 612.339.6900
F 612-339-0981
WASHINGTON, D.C.
Suite 210
415 Second Street, N.E.
Washington, D.C.20002-4900
T 202.544.9840
F 202-544-9850
MEMORANDUM
TO: City of Mound
FRDM LOCT~RTDGE GRINDAL NAiJEN P.L.L:F: Federal relations Group
DATE: June, 2009
RE: City ofMound-Federal Update
The Lockridge Grindal Nauen Federal Relations Group would like to take this opportunity to
update you on the City of Mound federal strategy, along with suggestions for next steps. We will
also provide an overview Congressional initiatives and likely timelines.
Mound Update
As you are aware, both Congressman Paulsen and Senator Klobuchar have requested funding for
the Mound Visions project in 2009. In the Fiscal Year 2010 Appropriations process, both
Members have requested $420,000 for the project as a whole. Neither the House nor Senate
appropriations bills have been introduced at this time. We will keep you updated on
developments as they occur.
Congressman Paulsen has also requested $1.16 million for the City of Mound in the 2009
transportation authorization bill High Priority Project (HPP) request process. The request was for
the "Lakeside trailhead construction at Gillespie Center in City of Mound." The Congressman's
staff worked very diligently to insure that their request on behalf of Mound was appropriate for
the process. Please note that the House Transportation Committee has not yet released a draft of
their bill. The corresponding Senate authorizing Committees have yet to release their directives
for HPP requests. Again, we will update you on developments.
The support of our Congressional delegation for the Mound Visions project is a testament to the
quality of the project and the long standing dedication the City and its elected officials to
reaching the goals of Mound redevelopment.
As the federal process moves forward (see information on timelines below) we would suggest
that a positive next step for the project would be an invitation to Congressman Paulsen,
Congressman Oberstar and Senator HIobuchar (as well as their staff) to join the City at The
Spirit of the Lakes this July. The Lockridge Grindal Nauen Federal Relations Group will work
-10-
June 4, 2009 Lockridge Grindal Nauen
• Page 2 Federal Relations Group
with Mound Staff to draft and deliver the invitations to the appropriate offices and as we move
forward in the 111' Congress, we will keep you updated on all pertinent federal initiatives.
Below we have provided, for your consideration and review, a timeline of the traditional
appropriations process. We will provide you with this and other pertinent appropriations
information as soon as it is available.
Timeline: The Budget and Appropriations Process
As you may know, the appropriations process usually begins following the release of the
President's annual budget request which lays out the Administration's spending priorities and
__
traditionally occurs during the~month ofFebruary. At that time the Senate and House Budget
Committees begin their examination of this budget by holding hearings on the merits of what is
being requested. This process allows the Committees to receive input prior to putting together
their own budget blueprint.
The Congressional Budget is traditionally put together in both Houses and if passed, a
Conference report (combined version) is then negotiated and brought to each Chamber for final
passage. Although the final version does not carry the weight of law and does not appropriate
money to Federal programs or Departments, it sets spending parameters and does act as a
blueprint for the House and Senate Appropriations Committees. It is expected that the budget
• process this year will be finished towards the start of May.
The Federal Government must pass all 13 appropriations measures, pass some of the measures
with a Continuing Resolution for the rest, or pass a Continuing Resolution for each bill prior to
the end of the fiscal year on September 31. If this is not accomplished a government shutdown
would ensue as the Treasury Department would not have the statutory authority to release funds.
Under regular order around February, the Appropriations Committees in the House and Senate
(or Subcommittees in the Senate) will contact Members and indicate whether or not they will be
accepting and including Congressionally-Directed spending items in the upcoming fiscal year
appropriations measures. At that point, Members who will be accepting requests from
Constituents will set an internal deadline by which requests must be received (usually the middle
to end of March). House Members must decide which requests they will submit -rarely will
they submit every request they receive -and turn those into the Appropriations Committee by
their deadline which is usually in April.
The Senate Members must submit to the appropriate Subcommittee by their deadlines which are
staggered and usually run from early April to the middle of May. Behind the scenes, the bills are
being prepared and Congressionally-Directed spending items are scrutinized and either included
or excluded based on a number of factors including the availability of dollars for projects and the
individual merits of a particular project.
•
_~~_
June 4, 2009 Lockridge Grindal Nauen
Page 3 Federal Relations Group
The House Appropriations Subcommittees will usually begin hearings on each measure under
their jurisdiction in May and begin voting on amendments to the bills prior to voting on whether
to move the bill to the full committee. If Congressionally-Directed spending items are included
in the appropriations measure they traditionally become available to the general public at the
beginning of or upon completion of the Subcommittee process. The full committee will then
take up the measure prior to voting on whether to move the bill to the House floor for debate and
votes. The Senate follows a similar procedure on their side but begin the process after the House.
If a bill makes it to the floor in the House and is passed, the House then must await final action
on a similar appropriations measure in the Senate (or vice versa depending on who passes the
measure first). If a different appropriations bill is passed in both chambers (which is traditionally
the case), a Conference Committee must be appointed to take the two different versions and
negotiate one bill. The negotiated bill, or conference report, then goes back to the respective
chambers for another vote. If the report is passed by both Chambers, it is sent to the President
for his signature or veto. Under regular order, this process will be completed for each of the 13
appropriations measures; however, if they are not all completed and signed into law, Continuing
Resolutions must be considered to avoid the stoppage of government programs.
Fiscal Year 2010 Appropriations
Members of the House of Representatives and Senate solicited cities, counties, non-profits and
other entities for any Congressionally Directed spending items that they wished to submit for the
consideration and possible inclusion in one of the Fiscal Year 2010 appropriations measures.
This is the process that Congressman Paulsen and Senator HIobuchar have requested
$420,000 for Mound Redevelopment. Again, we will keep you updated as those
developments occur.
Transportation Reauthorization
The Transportation Authorization bill must, bylaw, be reauthorized every six years. The current
bill expires on September 30, 2009. The House Committee, Chaired by Congressman James
Oberstar (MN-8'~ CD) has solicited Members of Congress to submit High Priority Projects
(HPP) on behalf of their district. As mentioned, the Committee's draft bill has not been released;
however this is the process in which Congressman Paulsen requested $1.16 million on behalf of
the City of Mound. We will update you on developments with the House process and any
directives on the Senate timeline.
If you have any questions or need any additional information, please do not hesitate to contact
Dennis McGrann dmmcg aan(cr~,locklaw.com (202) 544-9840 or Emily Gehrman
ej ehrman ,locklaw.com (202) 544-9896. The Lockridge Grindal Nauen Federal Relations
Group will continue to monitor these and any other pertinent federal initiatives.
-12-
ROBERT A. LAUER, D.D.S., P.A.
5585 SHORELINE BOULEVARD
MOUND, MINNESOTA 55364
~~
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-13-
.~-
5341 MAYWOOD ROAD
~ OF MOUND MOUND, MN 55364-1687
PH: (952) 472-0600
FAX: (952)472-0620
WEB: www.cityofmound.com
May 28, 2009
Dr. Robert and Geraldine Lauer
5585 Shoreline Drive
Mound, MN 55364
Dear Dr. Lauer,
Thank you for your letter, which was received the week of May 4, 2009 regarding
the property you own at 5585 Shoreline Drive and your pending retirement.
As you mentioned, the Mound Ci Council has been working with a lobbying firm
on a proposed request for fade ing dollars to assist and continue with our
redevelopment efforts. Howe r, at i 'me, no funding decisions have been
made and there are no guars 'a! o ich projects may be selected.
Further, no local monies are current avai b ~r acquisition activities unless a
funding source(s) is ident~ed. We ~~a er ntinue to keep you posted,
on the status of the City's federal funding a rts related to the Auditor's
Road District.
In the event you would like to discuss the possible preparation of an option
agreement similar to documents executed for two nearby properties, Staff would
be willing to visit with you to begin this process. Be advised however that formal
acceptance of any agreement and terms i$ subjec# to formal consideration and
approval by the City of Mound and/or its HRA.
Thank you in advance for keeping Staff informed of issues associated wi#h your
properly. Additionally, 1 would like to personally extend my best wishes to you
regarding your upcoming retirement. If you have any questions or need any
additional information, please feel free to contact me at 952.472.0609.
Sincerely,
Kandis Hanson
City Manager
KH:ss
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-14-'
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F~
Actress Rita Hayworth and her husband Aly Kahn once owned this 26=foot Riva Tritone,
now valued at about $650,000. For a time, it was one of just two Rivas west of the Mis-
sissippi, Warner says. (The other belonged to entertainer Victor Borge.J Mahogany Bay
restored and maintains the boat for a local owner.
F. Todd Warner, founder and CEO of Mahogany Bay in Mound, buys
and sells vintage wooden powerboats. But after 35 years in the busi-
ness, he's decided that's not all he sells. Contained in their sleek hulls, Warner
believes, are the makings of a restaurant business, real estate developments, and
an investment fund.
His family has lived on Lake Minnetonka since 1890, and Warner inherited
his love of classic powerboats from his father and grandfather. In the 1970s, as
fiberglass gained popularity, people were selling their wooden boats for next to
nothing. Warner and his father started collecting. Warner says awell-crafted and
-maintained boat,.like a good classic car, will appreciate in value, given the right
combination of rarity, provenance, and other factors. A 1926 33-foot Garwood
Baby Gar in Mahogany Bay's collection would have sold for $100,000 in 1980,
Warner says, but is valued at more than $1 million today.
Collecting boats led to restoring and maintaining diem and founding Ma-
hogany Bay in 1974. Today, the company owns along-term collection of around
85 boats, and has roughly the same number up of boats up for sale at any given
time. Warner and his 14 employees also care for more than 100 customers' boats
Mahogany Bay had about $6 million in annual revenues last year, an 18 percent
increase over 2007. But Warner sees much bigger prospects for his company.
With joint venture partner Steven Schussler, chairman of Golden Valley-
based Schussler Creative and best known for developing the Rainforest Cafe and
other themed restaurants, Warner has developed a restaurant prototype and says
The flagship of Mahogany Bay is POSH, designed in 1937 by John Ludwig Hacker, a
renowned naval.architect. It's one of only three like iYthat were built. POSH was custom
made for Joseph Cooper of the same Cooper family and fortune that later built awide-
screen "Cinerama" theater in St. Louis Park.
they're negotiating now with a Florida theme park
F ~~,;-,,,.. ~ ~;- (that he can't name) where they'd operate it.
Mahogany Bay is also planning an exhibition
of boats-beginning in May and up for as long
'~~ as 18 months-in temporarily vacant space at
In 1938 on Lake Minnetonko, the Wayzata Bay Center in downtown Wayzata.
the Moonahonas (left}, owned The center is in line for redevelopment as part of
by Harold Warner, Todd War- a larger project by Presbyterian Homes. Warner
ner's grandfather, raced believes the display will draw traffic. If it does, he
the Roweda (right}, owned hopes that his boats will convince local real estate
by Dan Bull, chairman of the developers that "classic boats mean business," and
Cream of Wheat Company. that Mahogany Bay's boats could enhance a mu-
Both boats were made at the Ra- nicipal redevelopment project like the one being
matey Boat Works in Wayzata, discussed now for downtown Mound.
which-dosed..more.thon 50 _ The_'OOs areanother_golden_age_for.buying np
years ago, Warner says. wooden boats, Warner says, just like the '70s were.
The generation of 40- and 50-somethings who
invested in boats then are 70- and 80-somethings.looking to sell their boats now
and bringing premium watercraft to market. At the same time, he explains, hard
assets are looking more attractive now than some other investment categories.
So "we're putting together an investment fund;' Warner says. It will buy and
hold boats for long-term appreciation and get shorter-term income by forming
an exhibition company that brings classic powerboats on tour to well-known
museums and events around the country. The fund, being structured now,
should be ready for presentation to investors by June, he adds.
Warner promises that investors will enjoy buying in: There's going to be a
"fund boat" from the collection available for them to use. As he sees it, that
makes the fund a way to own boats for all the right reasons: long-term invest-
ment gains, near-term income, "and fun:' Matt Holland
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Recession delays, derails area redevelopment projects
Stai'IYlbune.com
Page 1 of 2
Recession delays, derails area
redevelopment projects
The biggest, Arden Hills' dream of
replacing the closed Army
ammunition plant with homes,
business and parks, fell apart over
disagreement on a price discount for
cleanup.
By MARIA ELENA BACA, Star Tribune
Last update: May 17, 2009 - 11:43 PM
Cities' grand redevelopment plans, fraught with
risk even in the best of limes, are falling victim to
harsh economic realities.
Minnetonka, fmancing difficulties led Glen Lake
developers to scrap a plan. to build 40 high-end
condos. In Wayzata, a $160 million mixed-use
development on the site of the Wayzata Bay
Shopping Center has been postponed until 2010.
In downtown St. Paul, an ambitious
redevelopment project at the riverfront jail. site
has been withdrawn.
"Right now there's nothing going on," said New
Brighton Mayor Steve Larson, whose city is
waiting out the recession by finishing cleanup
work on the Northwest Quadrant, at I-35W and I-
694. "People are sitting on what cash they have. In
the market before, people could speculate on
what was going to happen and banks would take
a chance. Speculation doesn't exist anymore."
Last week, Arden Hills withdrew its offer to
purchase a 774-acre tract. fornierly occupied by
the Twin Cities Army Ammunition Plant (TCAAP).
It broke off its agreement to buy the sprawling
property from the Army after Ryan Companies
ended its agreement to develop the site earlier
this month.
While it's the biggest project to fall apart lately, it's
far from being alone. Late last year, on the other
side of Interstate 35W, developers pulled out of
the 100-acre Northwest Quadrant project in New
Brighton. In Maplewood last year, plans to build
as many as 174 homes on the CoPar site west of
1-494 was shelved after a zoning dispute. In
Redevelopment plans for blighted properties
across the metro area come with a host of
complications that often take years to sort out:
businesses and residents to be moved or bought
out, and land that needs decontamination. In the
case of TCAAP, along I-35 W and Hwy. 10, the 2
1/2 years spent ironing out those complications
were enough to push the timeline from a booming
economy into a bust.
In the end, proximity to downtown and county
park land, frontage on Rice Creek and the
potential for a walkable community weren't
enough to save Arden Hil.l.s' dreams for homes,
businesses and parks on the T'CAAP site. The deal
fell apart when. the city and the Army were unable
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Recession delays, derails area redevelopment projects
S'~a~Tribune.ca-m
Page 2 of 2
to agree on how to discount the site's $45 million
price tag for cleaning the property to allow for
residential construction.
Price vs. market value
Rick Collins, Ryan's vice president for
development, still calls TCAAP an "excellent
opportunity," but noted that the company's
evaluations of the cleanup costs relative to the
purchase price and market value sunk the deal
"When we looked at all the outside factors, we
didn't feel that the development was any longer
economically feasible," he said.
nation; we are a growing region. Over the next 30
years, our cities are going to look very different.
There is going to be significant construction to
accommodate that growth. We just think that
construction is going to be very different."
Around the Twin Cities area, there are examples
of redevelopment projects that are moving
forward.
Ryan Companies continues to work with the city
of Minneapolis on a plan to redevelop the 55-acre
Minneapolis impound lot and the city's concrete-
crushing operations west of downtown into a
mixed-use residential and commercial
redevelopment.
In Minnetonka, City Manager John Gunyou blames
the fall of Glen Lake on a lack of financing
options. "What we're seeing is, even with sound
projects that would not have had a problem
getting financing a year ago, lenders are much
more skittish," he said.
Still, some urban development experts are
convinced that the long-term potential. for large
metro redevelopment projects remains strong, as
a new generation of consumers looks increasingly
to reduce its carbon. footprint, energy costs and
dri~zng time.
"Our economy is going through a structural
change," said Caren Dewar, executive director of
Urban Land Institute Minnesota, a nonprofit
planning research group. "We are a growing
On the west edge of downtown Minneapolis, a
developer is working on plans for the former
Ramada site on Hawthorne Avenue. "We'll
continue to work on it, and when the time is right,
we'll build it," said Alatus Partners principal Bob
Lux.
And hope remains for projects n.ow at a standstill.
"The market will come back; lenders will start
lending again," Dewar said.
Arden Hills Mayor Stan Harpstead said:
"Ultimately, it doesn't do any of us any good to
have land that's not productive ... especially when
the public owns it."
Maria Elena Baca • 612-673-4409
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