2008-03-25MOUND HOUSING AND REDEVELOPMENT AUTHORITY MINUTES
MARCH 25, 2008
The Mound Housing and Redevelopment Authority in and for the City of Mound,
Minnesota, met in regular session on Tuesday, March 25, 2008, at 6:45 p.m. in the
council chambers of city hall.
Members present: Chair Mark Hanus; Commissioners David Osmek, John Beise and
Greg Skinner
Members absent: Commissioner Mike Specht
Others present: City Attorney John Dean, Executive Director Kandis Hanson,
Community Development Director Sarah Smith, Paul & Pat Meisel, Peter Johnson, Ken
Perbix, Amy Lyon, Paula Larson, Bill and Dorothy Netka, Chuck Alcon, Cindy Reiter
1. Open meeting
Chair Hanus opened the meeting at 6:45 p.m.
2. Action approving agenda
Hanson requested the removal of Item 4, asking that this item be put on a future agenda
with supporting material.
MOTION by Osmek, seconded by Beise to approve the agenda as amended. All voted
in favor. Motion carried.
3. Approve minutes
MOTION by Beise, seconded by Skinner to approve the minutes of the March 11, 2008.
Osmek noted that he was not present at this meeting and requested that the minutes be
amended to reflect that. Beise amended his motion to approve the minutes of March 11,
2008, as amended. Skinner seconded. The following voted in favor: Hanus, Beise and
Skinner. The following voted against: None. Osmek abstained from voting. Motion
carried.
4. (removed)
5. Monthly Manager's Report for Indian Knoll Manor
Cindy Reiter presented the monthly report as follows:
A. February bank statement
B. February income statement
C. Review of bills paid: MOTION by Osmek, seconded by Beise to approve the
bills for Febraury, 2008. All voted in favor. Motion carried.
D. Manager's report -Hanus stated that he was contacted with a request to
expand the manager's in-house hours at Indian Knoll, and Reiter stated that
the budget just doesn't allow for expanded hours at this time, but they are
trying to make themselves as flexible as they can.
6. Redevelopment Update by Mound Harbor Renaissance, Including Discussion
of Possible Redevelopment Contract Amendment
Chuck Alcon gave a brief update, stating that the new Caribou is open in the Auditor's
Road District and Welsh Properties is continuing to seek a tenant for the other half of
that building. They are still seeking a restaurant for the anchor for Auditor's Road, and
Alton stated that the City recently getting atwo-year extension for the grant for the
parking deck was critical for this project from a leasing prospective. The Auditor's Road
completion will also be important. He stated that Mound Harbor is in agreement with the
contract modifications as presented by John Dean.
John Dean outlined the proposed modifications to the Redevelopment Contract with
MHRD that was entered into on March 22, 2005. The Lost Lake portion of the original
contract is the only piece that has met the targeted date for commencement of
construction. The three segments that were analyzed were the South 110 portion, which
is not in the TI District, but MHRD was given the first right of first refusal for this area for
redevelopment. MHRD has stated that there is no likelihood that they will exercise this
right, so it is recommended that this right of first refusal be removed from the contract.
MHRD also does not foresee pursuing the redevelopment of the Lake Langdon District.
The HRA could release the Lake Langdon area from the agreement, but if this is done
the ability to develop that area with Tax Increment may be severely restricted. Thus, it is
recommended that the agreement with MHRD be amended to contain a consent by
MHRD to the assignment of the Lake Langdon phase to any third party designated by
the HRA as a suitable assignee. The timeframe for this district has not been addressed.
Peter Johnson, 3140 Priest Lane, stated that he is a property owner of 2305 Commerce
Blvd. Publishing maps for twenty years that show his building gone has made it very
difficult to attract good tenants and keep good tenants. They just can't deal with the
uncertainty. He is a supporter of redevelopment downtown and wants to stick with the
process, but it has to be a situation where we move forward or shut it down at some
time. He will not be in favor, or sit still for having it sit on the shelf for no good reason,
and leaving him to deal with the consequences. It would be a shame to let go of the tax
increment for this area. Hanus stated that no one wants to stop the process, but it won't
go anywhere terribly soon. The hope is to open up some new markets that weren't there
before, some smaller developments perhaps, or even a property owner developing his
own property is a possibility. More discussion will take place on this in the future.
John Dean stated that the current contract requires that the start of the Auditor's Road
phase start on September 1, 2006 and completed by December 31, 2009. It is
recommended that if the east end is commenced within the time limit, then the simplest
approach would be to give MHRD a single additional time period to commence all of the
rest of Auditor's Road as two years after completion of the east end. MHRD has
suggested that the timetable require the second phase of Auditor's Road be started
within two years after the start of the east end, and the third phase start within 2 years
after the commencement of the second phase. MHRD bases its recommendation on
build-out times and the time to lease up buildings after completion. If these amendments
were to be made to the contract, the worse case scenario would be that the parking
ramp would be completed June 30, 2010, construction on the first phase of Auditor's
Road would start June 30, 2010, the second phase would start June 30, 2012, and the
third phase June 30, 2014.
John Dean stated that no purpose would be served to terminate MHRD's involvement in
the Lost Lake Area, because they own all the land and all of the tax increment that's
generated from the project will first be pledged to make debt service payments on the
dump bonds that have been issued by the City. MHRD is a valuable partner of the HRA
in this area.
Hanus commended Sarah Smith for her part in receiving the two-year extension on the
Met Council grant for the parking deck in Auditor's Road.
Upon HRA's consensus with the above recommendations, John Dean stated that an
amended contract would be drafted and presented to the HRA for consideration at their
last meeting in April. Hanus would also like to have some sort of game plan and timeline
for moving forward.
7. Adiourn
MOTION by Osmek, seconded by Beise to adjourn. All voted in favor. Motion carried.
, Chair Mark Hanus
Attest: Bonnie Ritter, City Clerk