Loading...
HomeMy WebLinkAboutEDA MIN 09-15-04 SpecialECONOMIC DEVELOPMENT AUTHORITY (EDA) SPECIAL MEETING MINUTES SEPTEMBER 1~, 2004 CALL TO ORDER/ROLL CALL President, Murzyn called the meeting to order at 7:15 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 COLUMBIA HEIGHTS INDUSTRIAL PARK REDEVELOPMENT Murzyn asked the board to hold their questions until the entire presentation was complete. Schumacher introduced Sue Mason, Project Manager from $.E.H. that did the Infrastructure study, Mark Ruff, Financial Consultant from Ehlers & Associates, Steve Bubul, the City's consultant from Kennedy and Graven, Brad $chafer, President of Schafer Richardson and Evan Rice, Legal Counsel for Schafer Richardson. $chumacher stated this meeting was called to bring the board up to speed on the Industrial Park Redevelopment project proposed by Schafer Richardson and that there will be no action items. The City received $1.2 million in grants for clean up in Phase L For Phase II, the DEED grant application is due by November 1st, 2004. Sue Mason stated S.E.H. looked at the infrastructure of the development, which is traffic, parkways, sewer, water, walkways, and lighting issues. Mason stated the Feasibility Report identified 1) would not add any traffic problems; 2) the sanitary sewer is okay; 3) there is a cast iron water main that needs to be replaced; 4) recommended adding a new storm sewer; and 5) they recommended added trails and sidewalks along the parkway with lighting. The report also shows a round-a-bout in the area of 39th & Jefferson to provide a barrier between the businesses and housing. Nawrocki stated he didn't feel it was necessary to have a round-a-bout as shown in Concept A and the ~teed for curved roads on Concept B. Mason stated anytime you develop a parkway design you use curved streets to allow for slower traffic would compliment the four ball fields design in the park study that the City is also working on. $chumacher stated there are approximately 15 businesses in the Industrial Area that have no intention of moving and with the round about it would create a nice barrier for the housing area. W'yckoff agreed with $chumacher. Mason went over the breakdown of project costs, explained the $500,000 deduction for phased roadway in the north/south portion of the park as this area will be developed after the park is finished, and that the roadway costs are divided up on a front split cost or by lateral footage. Economic Development Authority Meeting Minutes September 15, 2004 Special Meeting Page 2 of 3 $chumacher stated of the $1.4 million coming from the City, $1.2 million would be eligible for MS`d funding. Kevin Hansen stated we get $1.2 million per year, but can borrow in advance if this years funding has already been allocated, which was done when they did the Central `dvenue project. Mark Ruff stated the project is expected to generate 558 units of owner-occupied housing and 11,600 sq.ft, of commercial to be built in three phases over a period of five years, the developer is responsible for purchasing all of the property, the City agrees to use eminent domain, if necessary, to help the developer purchase any of the remaining properties with the developer paying for the relocation costs for all owners and tenants, the developer agrees to pay for all City fees including park dedication, SAC and WAC fees, the City will reconstruct the road adjacent to the project and assess the developer for its portion of the Costs and payingfor the City's side of the improvements to sewer and water and M$`d dollars.~ Financing proposed for the project is a JIF Pay-As-You-Go program where the developer pays all of the costs upfront, which is $8,450, O00 for parkway, demo of buildings, site prep, environmental issues, etc. The JIF could be for 13 years provided the City receives the state grant for $3 million for clean up, otherwise, it can be moved out farther to 18 or 20years. The difference between the Kmart and Industrial Park project TIF Districts is that when the state evaluates the costs, percentage of blighted or contaminated area to determine the need for the funding which the Industrial Park does qualify much higher for. Steve Bubul went through some of the issue on the redevelopment contract. On page 2, II Timing and Proposed Phases, Phase 1 will be approximately 170 owner occupied townhomes and condominiums or cooperative units and approximately 11,650 square feet of commercial space, with improvements commencing within 1 year and requires 75% of the housing units done within 3 years. In Phase II there will be approximately 120 owner-occupied townhomes, commencing within 3years, must complete ali site improvements and 75% of the housing units within 4.5 years, plus aH land for Phase II must be acquired within 2 years. Phase III will have approximately 256 owner-occupied condominium or cooperative units, commencing within 4 years, must be complete all internal Phase III site improvements and 30% of the housing units within 5 years with ali land being acquired within 2 years. If the developer fails to meet the requirements, the ED`d may suspend payment of TIF from defaulting parcels until the required minimum improvements are made. To meet the DEED pollution grant price requirements, at least 20% of the units in Phase 1 must be soM at a purchase price not to exceed 110°/6 of the maximum' affordable price under Metropolitan Council guidelines..dH construction plans mUSt ' be approved by the ED.d and meet the redevelopment plan and design standards prior to construction. Fehst stated that Phase III,, will generate the most tax base. $chumacher stated, they will be doing consl~tction in Phase I and II at the same time. Nawrocki asked if staff knows what amount orS.dC credits are available to the City. Streeta r stated there are a lot. Williams stated under 1; number 5, isn't the property or business owner responsible for the clean up of contaminatio'nl Bubul stated they are only if they created it. Economic Development Authority Meeting Minutes September 15, 2004 Special Meeting Page 3 of 3 Nawroclci quoted from an old document submitted by Ehlers stating that the duration of a TIF district will be 26years. Ruff stated what the document is saying is that it couM go up to 26 years. Nawrocki stated he felt staff.is moving too fast to adopt the development agreement and requested a better spreadsheet showing money flow for the district. Schumacher stated the following: 0 this is one of the more difficult projects being developed in the Twin Cities; 2) he thanked the developers and consultants for all of their time with weekly meeting being held for months on this project; 3) the end project is to get the grants for clean up; and 4) the board should remember the developer is paying for aH the property which is a savings to the City. Murzyn asked how soon could the deve~fment agreement be ready. Streetar stated it could be ready as soon as Monday, September 27~ and suggested the board have a special meeting prior to the City Council that night, so that the item could also go on the City Council agenda that night. Nawrocki recommended Tuesday the 28th instead. After some discussion by the board, the consensus was to have a special EDA meeting at 7pm on Monday, September 27th and the City Council meeting to follow immediately afterwards. Schumacher stated staff wouM make the arrangements. ADJOURNMENT President, Murzyn, Jr., adjourned the meeting at 9:14 p.m. Respectfully submitted, Cheryl Bakken Commtmity Development Secretary HAEDAminutes2004~9-15-2004 Spec.