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HomeMy WebLinkAboutEDA MIN 02-15-05 ECONOMIC DEVELOPMENT AUTHORITY (EDA) REGULAR MEETING MINUTES FEBRUARY 15, 2005 CALL TO ORDERlROLL CALL President, Murzyn, Jr., called the meeting to order at 7:00 p.m. Present: Don Murzyn Jr., Gary L. Peterson, Bobby Williams and Bruce Nawrocki, Tammera Ericson, and Bruce Kelzenberg Absent- Patricia Jindra PLEDGE OF ALLEGIANCE CONSENT AGENDA Approval of Minutes Financial Report and Payment of Bills Nawrocki asked what the $3,235.99 under minor equipment, account number 201-42400 and asked what employees time is charged under this item. Streetar stated he wasn't sure why the description wasn't listed in the report, but that it was to purchase new lateral file cabinets, as we combined the property files from upstairs when Cher took over the Homesteading last year, to expand our Planning and Zoning case files and the extra space needed for the new housing property files. Bakken stated we purchased a total of five cabinets, as the old cabinets were full, with no room for the additional housing folders from Kmart and the Industrial Park redevelopments. Streetar stated under Protective Inspection time is charged for Shelley, Pat and Larry. Nawrocki asked what the bills from Unicorp were for. Streetar stated it was for painting on the 9th floor modernization project. Nawrocki stated he thought that was included in the contract. MOTION by Ericson, second by Peterson, to adopt the consent agenda items as listed. All ayes. Motion Carried. PUBLIC HEARING Resolution 2005-03. Condemnation of Certain Property for Redevelopment Schumacher stated the contract for private redevelopment requires a public hearing for the condemnation of properties in the Industrial Park Redevelopment area and felt Schafer Richardson has satisfied the requirements of trying to obtain the necessary properties for the development. This resolution is just incase the developer cannot acquire all of the properties. Unfortunately, they were unable to acquire several properties necessary for the redevelopment project, and are requesting the EDA and City proceed to acquire all parcels by means of negotiations or through eminent domain. The properties listed in Resolution 2005-03 are the Greifproperties located at 3755 University, 3700 5th Street and 317 3ih Avenue; the Buckles property located at 620 39th Avenue; and the Smith property located at 450 38th Avenue in the Industrial Park. Stafffeels the developer has satisfied the intent and conditions of the development agreement and recommends adoption of Resolution 2005-03 and introduced Brad Schafer, Schafer Richardson and attorney, Bob Lindall for comments or questions. Murzyn, Jr., asked if there were any residents or business owners present that would like to Economic Development Authority Meeting Minutes February 15, 2005 Page 2 of 4 speak at this time, otherwise he would accept a motion to close the public hearing. There was no public input. Motion by Williams, second by Peterson, to close the public hearing. All ayes. Motion Carried. Nawrocki asked why we need to adopt the resolution if some of the property owners have already agreed to sell and stated once you start condemnation proceedings, there are costs associated with this. Brad Schafer stated they have verbal agreements with all but one of the property owners. Bob Lindall stated there are many verbal agreements, but nothing signed yet. The resolutions need to be adopted to insure the sale of the properties go through and that all the properties that sign purchase agreements, will later be dropped from the list. There would only be costs if you need to force condemnation on any of the properties. Nawrocki asked why are there two resolutions for all of the properties. Lindall stated part of the properties, are needed for housing development and the others are needed for the parkway. Nawrocki asked where is 3700 5th Street. Schumacher stated throughout the City there are a number of address discrepancies and for closings we have to go by what the county has. Under Appendix A of the resolutions, it identifies the property addresses and owners. Motion by Williams, second by Peterson, to Adopt Resolution 2005-03, a Resolution Authorizing and Directing the Condemnation of Certain Property located at 3755 University Avenue, 3700 5th Street, 317 3ih Avenue, 620 39th Avenue and 450 38th Avenue for Redevelopment Purposes. Upon Vote: Nawrocki- Nay; Ericson- aye; Williams- aye; Kelzenberg- aye; Peterson- aye; Murzyn, Jr.- aye. Motion Carried. Resolution 2005-04. Condemnation of Certain Property for Redevelopment Schumacher stated the properties listed in Resolution 2005-04 are the 3800 5th Street LLC property located at 3800 5th Street and 3901 5th Street and JR. Properties property located at 515 and 519 38th Avenue in the Industrial Park. Staff recommends adoption of Resolution 2005-04. Motion by Williams, second by Peterson to close public hearing. All ayes. Motion Carried. Motion by Ericson, second by Peterson, to Adopt Resolution 2005-04, a Resolution Authorizing and Directing the Condemnation of Certain Property located at 3800 5th Street, 3901 5th Street, 515 38th Avenue and 519 38th Avenue for Redevelopment Purposes. Upon vote: Nawrocki- nay; Ericson- aye; Williams- aye; Kelzenberg- aye; Peterson- aye; Murzyn, Jr.- aye. Motion Carried. ITEMS FOR CONSIDERATION Mr. Steak Property at 4545 Central Avenue Mr. Williams abstained from the discussion as he has bid on the property in the past. Streetar stated this is a follow-up from the last meeting. The owner of Mr. Steak is interested in selling us his property. Staff agreed to contact other business owners in regards to their interest in the site. Mr. Steak's owner, Mr. Wolf as stated in his letter dated Febntary 1, 2005 that he is Economic Development Authority Meeting Minutes February 15, 2005 Page 3 of4 willing to sell the property to the City for $575,000, which is $25,000 lower than the offer made to the City on January 25th. Since the January meeting staff has contacted Ron Clark, the owner of the mall at 4110 Central; Bob Grootwassink, owner of 4001 Central; Udupi Restaurant; Capital Investment representing Taco Bell; Welsh Companies; Haugland Companies; Frauenshuh Companies; and Griffin Companies for their interest in the site. Frauenshuh was the only one that was interested and will be showing their client the site early next week. Streetar passed out a copy of the appraisal, which states the value of the property is $535,000. Staff recommended doing one of the following: 1) direct staff to continue to work with these companies to help Mr. Wolffind a user for this property; 2) do nothing and let Mr. Wolf try to sell it on his own; 3) we can encourage Frauenshuh to work with Advance Auto Parts to develop the site; or 4) we could acquire the property, demolish the building and then have control over what goes on the site. Murzyn, Jr. asked Mr. Wolf if there is anyone he has talked to that is interested. Wolf stated there is only the auto sales owner that is very interested in the site. Nawrocki stated the appraisal of the property is $530,000 and therefore he; 1) is not infavor of buying the property particularly ifwe have to pay anything more than $300,000; and 2) disagrees with the idea of not having a car lot on the site, we need to get meaningful requirements for auto sales placed in our zoning ordinance and suggested putting this item on the next City Council agenda. Streetar stated the City Planner is looking into how the City of Hopkins has set up their moratorium for this same issue. F ehst stated he appreciated Nawrocki's concern to get this changed before we receive an application, but questioned ifwe do this that quick. Nawrocki stated the auto sales issue along University Avenue has not been addressed. Streetar stated the owner has been issued a citation, he still hasn't complied and that the judge gave him 90 days to comply. Peterson stated he didn't think a used car lot was a very good choice for the city, was concerned about buying property and not knowing what we are going to develop on the site. We have Welle Auto that has been there for years and would not be very happy with another auto parts sales along Central. With Burger King we purchased it for $600,000 and found the property was built on a landfill and therefore, we need more money for the clean up. Streetar stated we received a grantfor our part of the clean up and Nath will be paying also. Ericson agreed we need to be careful in what we buy, but we need to set a pace for our citizens and clean up properties to make them marketable. Private companies do not have access to obtain grants for clean up like we do. By removing these barriers we are opening the doors for new opportunities for development in the City. Murzyn, Jr. stated our options at this time are: 1) do we want to purchase the property, or 2) not get involved. We have some significant fund balances now and wouldn't mind using some of them as Central Avenue has a lot of blighted properties and he would like to see the City purchase the properties, demolish the buildings and go forward with development options. Economic Development Authority Meeting Minutes February 15, 2005 Page 4 of 4 Fehst stated he has never worked in a City were they have moved so quickly to purchasing property. Nawrocki stated maybe we should give the list of properties to the Rooney's to market. Mary Rooney stated they have been working with staff, thanked Streetar for all of his help working on Mr. Wolf's property sale. She stated the problem is that people can't see that Columbia Heights is on the way up the hill and this is the time to get their business in the City. Streetar stated he has talked to a lot of people and gets the response that Columbia Heights isn't someplace that looks promising for them to relocate to. Schumacher stated developers don't see this is the time to get the property at a low price. Mary Rooney stated by offering $300,000 for the property you are devaluing the property, she hasn't lived her for 20 years, was proud to live here years ago, but, after coming back has noticed the City has changed, would like to help redevelop the City, has rode with the Police Department and seen the crime on the west side of Central Avenue, and stated that maybe needs to volunteer to be on the EDA. Murzyn, Jr. directed staff to continue working with the Rooney's and Mr. Wolf to find a buyer for the property. ADMINISTRATIVE REPORTS Kmart Streetar stated if any of the commissioners are interested in looking at the Kmart homes with the building official next week, let us know. About a month ago the developer stated 16 of the 67 units are sold, with sales between 192,000 and 335,000, the footing and foundations have been poured on the first four townhomes. The developer is working to acquire the necessary road right-of-way for access onto 49th as well as the right turn lane on 49th and if he is unsuccessful, he will be asking the EDA in the next 30 to 90 days to use eminent domain to acquire them. Williams asked if it was true that someone bought a couple units on the top floor. Mary Rooney stated she had heard that someone bought some units in the loft area, but they would not identify the individuals. Central Business District Streetar stated in January the EDA approved the planning process for the area along Central from 3th to 4dh Avenue. Staffis currentZv performing an inventory of the area including parking supply, other traffic concerns, stormwater, other public infrastructure, property inventory, building quality and maintenance. The next step would be to meet with property owners and discuss their issues and concerns sometime in March. ADJOURNMENT President, Murzyn, Jr., adjourned the meeting at 8:34 p.m. Respectfully submitted, Cheryl Bakken Community Development Secretary H:\EDAminutes2005\2-15~2005