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HomeMy WebLinkAboutEDA MIN 05-10-04 SpecialECONOMIC DEVELOPMENT AUTHORITY (EDA) SPECIAL MEETING MINUTES MONDAY, MAY 10, 2004 CALL TO ORDER/ROLL CALL President, Murzyn called the meeting to order at 7:00 p.m. Present: Don Murzyn Jr., Patricia Jindra, Julienne Wyckoff, Bobby Williams and Bruce Nawrocki, Tammera Ericson, and Bruce Kelzenberg PLEDGE OF ALLEGIANCE ITEMS FOR CONSIDERATION APPROVE PREDEVELOPMENT AGREEMENT WITH SCHAFER-RICHARDSON Schumacher stated the purpose of this meeting is to discuss entering into a Preliminary Agreement with Schafer-Richardson, a developer that owns 90percent of the property in the Industrial Park Redevelopment site. The agreement will assure the developer the City and EDA will not negotiate with other parties for the redevelopment site for a period of 180 days, as listed in the Preliminary Agreement. In addition, it also outlines the general terms, major issues, and obligations of the parties while negotiations for a final contract are taking place. In the last year and a half the City has received over $1.5 million dollars in grants for the project site to investigate and clean up hazardous waste. Steve Bubul, Kennedy and Graven will go through a summary of the Preliminary Development Agreement and answer any questions the board may have. Steve Bubul stated the agreement has four major purposes: 1) describes the general terms that will be used in the negotiation of a definitive contract; 2) describes the obligations of the parties, while negotiations are underway; 3) provides security for the City and EDA, by stating the developer will pay for costs incurred by the authority; and 4)provides security for the developer, by stating the City and EDA will not negotiate with any other party regarding development of this property for the term of the Preliminary Development Agreement. The City and EDA will be responsible for initiating Comprehensive Plan amendments, rezoning, accepting the preliminary site plan as framework for the redevelopment site after the execution of a contract, will use eminent domain to acquire property if necessary, but only after exhausting all reasonable efforts, provide TIF assistance on a pay-as-you-go basis, start the process to create a redevelopment TIF district, investigate other financial options to help finance public infrastructure and hold any public meetings or hearings deemed necessary. The Developer will be responsible to accept the preliminary site plan as conceptual framework, exhaust all efforts to acquire all property, submit a detailed project schedule with updated site plan and financial proforma, cooperate with the City and EDA in all activities related to land use, TIF and public meetings. The costs are identified as the developer paying for all out-of-pocket costs incurred by the City or EDA since December 1, 2003. The developer will provide a $25,000 deposit and will remain Economic Development Authority Special Meeting Minutes May 20, 2004 Page 2 of 4 obligated to pay costs in excess of that up to $100,000. The City and EDA will provide a budget of expected costs by June 1, 2004. The term of the agreement will be effective for a period of 180 days, can be extended by the City Manager for up to 90 days, any extension after that would require the EDA and City Council approval, and all parties will use their best efforts to enter into a final contract by August 31*t, 2004. Nawrocki stated on previous maps of the Industrial area there were industrial sites shown along University Avenue and the maps in this packet are different. Schumacher stated back in June of 2003 the EDA and City Council approved the concept as shown. Nawrocki stated: 1) we need Industrial buildings to providejobs; 2) is concerned with the ability of the area to absorb that amount of housing; 3) didn't feel the City Manager should be the only one that would be responsible to extend the agreement, it should be the EDA and City Council; 4) the City won't see the TIF funds for many years, just like the development on the Kmart site; 5) asked what the total cost is the City has already spent on the project; 6) was concerned that no meetings have been held with the public; 7) the agreement states the EDA will do the .financing and asked where the funds would come from; and 8) is opposed to reals'rig a commitment before we have rezoned the property. Bubul stated the City has spent under $10,000 to date, due to grant funding and that the EDA will use grants, TIF and developer reimbursement funding to finance the project. Nawrocki asked if the board decided not to go forth, would the agreement end. Bubul stated it would. Murzyn, Jr. asked Streetar what would be the best guess on how long before TIF funding would come into the City. Streetar stated 1 to 5 years. Williams stated the State and Met Council is behind us on this project. This is a slow start to the long process for the development. It is important to work with developers, and stated he was anxious to take the first step in the process. Ericson agreed with Williams and stated it has been a priority of the City to clean up this area long before she ever was on the board. The Preliminary Development Agreement meets all of our expectations, as it is the first step. The goal is to work together quickly to come up with the best possible product. Motion by Ericson, second by Kelzenberg, to Approve the Preliminary Development Agreement between the Columbia Heights Economic Development Authority and Schafer-Richardson, the developer of the Industrial Park Redevelopment Project; and furthermore, to authorize the President and Executive Director to enter into an agreement for the same. Economic Development Authority Special Meeting Minutes May 20, 2004 Page 3 of 4 Wyckoff stated this is a very preliminary agreement, is very excited about moving forward and taking the first step, we will be having public hearings as stated on page 5 of the agreement, reminded the board that after 180 days they would have the option to accept, reject or accept the plans with changes. Fehst stated one of the reasons we are having this special meeting publicized is to convey to the general public this Community Development project, which will generate somewhere in the neighborhood of $90 to $100 million dollars in market values in the City. All of the members of the community need to be aware of this project and will have the opportunity to express their concerns. Joanne Student, 1615 49th Avenue, stated her father always said, "the biggest spacer for development is between your ears ", and thinks that is still very true. She was very grateful for the time and energy the board has spent to develop an area that she has looked at for over 40 years and was ashamed of. It takes a lot of courage and leadership to do this. With this effort you are really making a statement to do what is right for the community. She had the opportunity to listen to a number of presentations from developers regarding the use any of the property for industrial, with all of them suggesting it was a bad idea as we don't have the space, connections, transportation opportunities and the railroad. Student stated she personally felt this is a wonderful opportunity for the City, has heard the track record of the developer is impressive, as well as the one on Central Avenue and can see people standing in line to live in this community. She has been here long enough to listen to a number of proposals for that property, all of which were legitimate, all of which got sandbagged because people took criticism personally rather than seriously. She hoped that the developer that has spent time, money and energy in good faith, doesn't get discouraged. This project really has merit. Gary Peterson, 3712 Lincoln Street, stated he has been around Columbia Heights for many years and felt this is one of the most exciting projects to come to the City. He was apart of the committee that developed the City Council's Goals a few years ago. Back in 1998 there was an opportunity to redevelop this site, but because of the uproar in the community the board backed down from the development. We need to move ahead with this agreement. Mickey Rooney, 4304 Reservoir Blvd., stated he has been in the area for 40years, and was excited about this development. People who live in Andover, Forest Lake, or St. Michael would really appreciate living a little closer to Minneapolis. He is very excited about the project. Amended Motion by Nawrocki, to amend Section 7, Term of Agreement to read: with approval by the EDA and City Council not with just the City Manager. Motion failed for a lack of a second. Schumacher stated there would be Public Hearings and public informational meetings with the developer. Upon Vote of the original motion: Jindra-Aye, Nawrocki- Nay, Kelzenberg- Aye, Williams- Aye, Wyckoff- Aye, Ericson- Aye, Murzyn, Jr.- Aye. Motion Carried. Economic Development Authority Special Meeting Minutes May 20, 2004 Page 4 of 4 ADJOURNMENT Motion by Williams, second by Nawrocki, to adjoum the meeting at 7:46 p.m. Respectfully submitted, Community Development Secretary H:~EDAminutes2004\5-10-2004 Spec.