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HomeMy WebLinkAboutEDA MIN 08-17-04ECONOMIC DEVELOPMENT AUTHORITY (EDA) REGULAR MEETING MINUTES AUGUST 17, 2004 CALL TO ORDER/ROLL CALL President, Murzyn called the meeting to order at 7:16 p.m. Present: Don Murzyn Jr., Patricia $indra, Sulienne Wyckoff, Bobby Williams and Bruce Nawrocki, and Bruce Kelzenberg Absent: Tammera Ericson PLEDGE OF ALLEGIANCE CONSENT AGENDA Approval of Minutes Financial Report and Payment of Bills Murzyn stated the Parkview Villa financial reports weren't ready when the packets were distributed, so that is why they received them tonight. Cher Bakken explained Commissioners have before them the Parkview Villa ,July report and reports from February through ,July 31St for both the North and South buildings, as requested by Commissioner Nawrocki at the last meeting and that Bob Lindig from Walker ElderCare is present to answer any questions the board may have on the reports. There were no questions from the board. President Murzyn thanked Lindigfor coming. Motion by Williams, second by Kelzenberg, to adopt the consent agenda items as listed. All ayes. Motion Carried. ITEMS FOR CONSIDERATION- None ADMINISTRATIVE REPORTS Kmart Streetar stated the final plat wouM be presented to the City Council on August 23rd. The total redevelopment site includes 230for sale units, and a minimum of l O, 000 square feet of commercial development. Nedegaard is in the process of acquiring the county required, right-of-way along 49~h Avenue for a right turn lane. The remaining 140 condominiums, 17 town homes, and the remaining portion of the new road will be presented to City Council for final plat approval later this fall. Nedegaard is working with Walter Scott who is representing the landowner for the property at the corner of 49th and Central were Savers is currently located and may need some assistance from the City if an agreement cannot be reached as he needs 10 to 15 acres of the property for the access onto 49a Avenue. Nawrocki asked what if the access isn't approved, could they keep on moving ahead with the plating of the property and what amount will the City be responsible for. Streetar stated MNDOT and Anoka County have already approved the access, the sewer and water can be installed and the 17 town homes can be platted, but will not be built until the property has been acquired. The City has agreed to pay up to $700, O00'for site clearance, which also includes a minimum of 1 O, 000 square feet of commercial development. Fehst felt the agreement was very reasonable, as Nedegaard has to finish the entire project before receiving any tax increment funding. Williams asked why the TIF eligibility is lower for the Kmart site than the Industrial Park project. Streetar stated the more blighted the property is the more TIF you receive, or the more clean up necessary to the site the more funding you are eligible for. Schumacher stated the City is receiving 75% assistance from the State for the Industrial Park. Streetar stated Lou Welle owner of Welle Auto stated he needs $1 to 1 ~ million for his property, which will be negotiated with Nedegaard as part of his agreement with the City. Wyckoff asked if Savers has found a place to relocate in Columbia Heights. Streetar stated they found a location outside of the City. Economic Development Authority Meeting Minutes August 17, 2004 Page 2 of 3 Aldi's Streetar stated Aldi's is planning to build a 15, 000 square foot grocery store on the Arby's restaurant site, and will be bringing the plan before the Planning & Zoning Commission on September 8~. MNDOT required that 1) the building be placed to the north a little bit; and 2) from Central Avenue the access be changed to a right turn in and right turn out. A focus group of l2O pe°Ple said they wanted to see restaurants, a drug store and a grocery store within walking distance, which the Grand Central Lofts will provide. Wyckoff stated the management at Arby's said they will be closing on August 23~a and asked where is the nearest Aldi's is. Fehst stated there is one in Champlin on Hwy 169. 39t~ & Central Streetar stated at the last EDA meeting staff was directed to offer the Nath Companies, owners of Burger King $450,000 and a counter offer of $550,000 to acquire the property for redevelopment. At negotiations, Nath stated they wanted $1.2 million. The EDA 's appraisal indicated the property was worth $810,000 or $9/square foot for the land and building. Last week Patti from Nath called with a purchase price of $800, 000, with them paying for the demolition and relocation fees and stated they wouM be closing the restaurant on September 9th. Streetar suggested offering $6 to $800,000 if they demolish the building and pay relocation fees and asked for direction from the board. Mur-zyn stated he would suggest buying Burger King, sell the NEI property, and take the money from the NE! building to build a gym somewhere. Williams stated he liked that idea. Fehst stated he wouM like to see the gym built at the High School, but his main concern is who wouM run it, it should be contracted out, if the City builds it, somebody will have to pay to use it, this would also free up the NEI site to be sold for redevelopment with possibly some of the things like the Library and City offices the Mayor would like to see there and we wouldn't be using up valuable property. Streetar stated Frank Dunbar had an idea were half of the property had some kind of public use and on top there was moderate income senior housing and the other half W°uld be sold for private residential housing development for $600,000. The City could put a recreational facility and a library on one part of the NEI site and let the rest of the property be sold for private development and use that money to purchase Burger King. Murzyn asked what is wrong with the west side of Huset Park where there is a run down tennis court, rental property and an unused wave pool. Couldn't that property be used to build a recreational facility and sell NEI. Fehst stated that would be a possibility. After some lengthy discussion staff was directed to offer Nath Companies $600,000, with a maximum of $700, O00 for the property. 37a & Central Streetar stated Starbucks is looking into the redevelopment site on the corner of 37~ & Central. They are negotiating to purchase the remaining property. 37a & Stinson Streetar stated Len Pratt the developer of the Apache redevelopment project has been working with the owner of the Apache Theatre as a potential redevelopment site. Economic Development Authority Meeting Minutes August 17, 2004 Page 3 of 3 40a & University Schumacher asked Williams to step down from his commission for this discussion, as he is a partner of Williams-Peterson. Williams agreed. Schumacher then stated the Development Agreement with Williams- Peterson is moving ahead with the exception of the voluntary sale of 322 40a,(3dGS). The owner, Mr. Sweat has moved his business to 36a and Central, is currently renting out the unit and wants $225,000 for the property, which is $25,000 higher than the value determined by the City. Williams-Peterson has agreed to pay the $25,000 difference as part of their redevelopment proposal If the consensus of the EDA is to support this action, staff will go forward with setting up a Development Agreement that allows the EDA to acquire 322 40a Avenue in the amount of $225,000 and would require the developer to submit a redevelopment proposal acceptable to the EDA and pay the additional $25,000 required by the seller. Wyckoff requested staff notify residents around the area before the access to 40ta is shut off, as she has heard from resident, Joyce Lillitol that stated she is against the road closure. Staff was directed to move forward with the purchase agreement for 322 40th in the amount of $225, 000 and the Redevelopment Agreement with Williams-Peterson with the additional $25,000 stated in the agreement, and bring them back to the EDA for approval. NEI Schumacher stated there was some more asbestos found in the NEI building that was hidden behind do°r panels, mudded pins, vermiculite in floor panels, transit panels, and 3 additional radiators for an additional $26,000 in removal costs, which is available in our CDBG funds. Therefore, at no cost to the City. Staff will come back with updates as things progress. Wyckoff asked if we build a Community Center on the site would we have to pay back the CDBG funds. Streetar stated we wouldn't. However, if it was sold for housing we would. ADJOURNMENT Motion by Williams, second by Jindra to adjourn the meeting at 8:50 p.m. Respectfully s3!~mitted, Community Development Secretary H:~EDAminutes2004~August 17, 2004