The URL can be used to link to this page

Home My WebLink AboutEDA MIN 08-22-06 ECONOMIC DEVELOPMENT AUTHORITY (EDA) REGULAR MEETING MINUTES August 22, 2006 CALL TO ORDERIROLL CALL President, Murzyn, Jr. called the meeting to order at 7:00 p.m. Present: Don Murzyn Jr., Patricia Jindra, Bobby Williams and Bruce Nawrocki, Tammera Diehm, Gary L. Peterson and Bruce Kelzenberg PLEDGE OF ALLEGIANCE CONSENT AGENDA Approve Minutes of July, 2006 regular meeting and the Financial Report and Payment of Bills for the month of July on Resolution 2006-06. Motion by Peterson, second by Williams, to approve the consent agenda Items #3 and #4 as listed. All ayes. Motion Carried. BUSINESS ITEMS Redevelopment of 2101 3ih Avenue. AKA The Apache Theatre Streetar stated in March the EDA entered into a Preliminary Development Agreement with Pratt Ordway Properties for the redevelopment of the Apache Theatre parcel. The initial plans for the site was for two, two to three story senior buildings. The first included between 45 and 65 assisted living units, with 15 serving memory care residents and the second building included between 45 and 65 independent senior units, where residents could purchase assisted living services as necessary. The City requested the plans be modified to sell approximately one acre of the land for a City Liquor Store adjacent to 3ih A venue and Hart Boulevard for approximately $506,000. At the August City Council work session, staff was directed to modify the proposal eliminating one senior building with the remaining building to include 64 units with 15 units serving memory care residents. The developer is requesting up to $115,000 of financial assistance to pay for the demolition of the Apache Theatre. Staff has secured $75,000 of CDBG funds from Anoka County and recommends reallocating $35,000 of the $200,000 CDBG funds the City received for the demolition of the Mady's and Columbia Heights Rental buildings, leaving $165,000 for the demolition. This funding would become available by September 30h. In summary staff is recommending three things: 1) approve the redevelopment concept; 2) authorize the reallocation of $35,000 of CDBG funds and 3) authorize staff to prepare a redevelopment agreement between the EDA and Pratt Ordway Properties, Inc. to be approved at the September 26th EDA meeting. Murzyn Jr. asked Bill Elrite, Finance Director how much square footage does the Liquor Store currently have. Elrite stated there was about 10,500 square feet. Murzyn Jr. stated it would be about the same size. Economic Development Authority Meeting Minutes August 22, 2006 Page 2 of4 Williams stated he would like to see the City do something with the Hart Lake and Boulevard area, we have talked about this before but, nothing got done, maybe we could move the road back a little. Murzyn Jr. stated he had seen a proposal that did do that but was probably pretty costly and asked Pratt if this is something that could be built into the agreement. Len Pratt, Pratt Ordway Properties stated they saw the opportunity to reroute Hart Boulevard, which is under state funding, agreed that if their entrance to the senior building and the liquor store wouldn't change, this would work and would actually be a plus, but it would take time. Jindra stated, there are a lot of people in the apartments there, and asked how would they get out. Peterson stated they would have to straighten out the road. Nawrocki stated: 1) Hart Boulevard can't be a dead end as it is a state aid road and has to have an outlet; 2) in the memo it talks about the City Council work session August ih, staff was directed to prepare a purchase agreement for approval at a subsequent council meeting. At work sessions you don't make motions or decisions. Streetar stated that was correct, but you can give staff direction. Nawrocki stated 3) we were talking about purchasing the property from the dentist and gas station owners on University Avenue, which the dentist was willing to sell, why are we looking at this area. Peterson stated his understanding was that we were going to move ahead with this one, as it's a prime opportunity, certainly we are getting a fair deal out of the land and still want to move ahead with the one on Central also. Fehst stated he had advised council that right now it doesn't look to good, as far as the price of that property, we do have Welsh negotiating on our behalf with three property owners, but if for some reason that one got too expensive we could walk away from that one and continue to lease at our present site, and that the store on University isn't doing so well and if that is the case we would consider closing that one. Peterson stated the forecast is to make money on this project, if we go out of the liquor business down the road, we would still have a nice piece of property and could have a building to sell. Fehst stated we could use some technology to keep the maintenance costs down and Mark Ruff from Ehlers and associates has given us an indication that all of the studies they have done or seen have all resulted in increased sales. Murzyn Jr. asked if he has it correct, as far as the liquor store project, it is a concern of the City Council to vote on this. Diehm stated that was correct. Nawrocki asked why is the EDA talking about this tonight when this is a City Council decision. Streetar stated it is because the EDA has a Preliminary Development Agreement with Pratt Ordway for the redevelopment of the site. Williams asked who owns the little triangle parcel on the comer. Fehst stated it was the railroad. Peterson stated he has always thought we should have something like a train or something to celebrate the railroad, like other cities have. Motion by Peterson, second by Kelzenberg, to authorize the reallocation of $35,000 of CDBG funds, approve the redevelopment concept, and authorize staff to prepare a redevelopment agreement between the Economic Development Authority (EDA) and Pratt Ordway Properties, Inc. to be approved at the September 26, 2006 meeting. Economic Development Authority Meeting Minutes August 22, 2006 Page 3 of4 Diehm asked Peterson and Kelzenberg if they would consider changing the motion to read "considered for approval on September 26th EDA meeting", instead of approved. The commissioners agreed to amend the motion. Amended motion by Peterson, second by Kelzenberg, to authorize the reallocation of $35,000 of CDBG funds, approve the redevelopment concept, and authorize staff to prepare a redevelopment agreement between the Economic Development Authority (EDA) and Pratt Ordway Properties, Inc. to be considered for approval at the September 26, 2006 meeting. Upon Vote: Jindra-aye, Nawrocki-nay, Kelzenberg-aye, Williams-aye, Peterson-aye, Diehm-aye, Murzyn Jr. -aye. Motion Carried. Murzyn Jr. stated he would like to close the meeting at this time to discuss the next agenda item and would re-open the meeting after discussion. Nawrocki asked what is the purpose of closing this meeting. Streetar stated he had talked to Steve Bubul, the City attorney, who stated the EDA could close a meeting without a vote. The meeting was then closed at 7:23 pm. The meeting was re-opened at 8:07 pm. Authorization to Neaotiate ACQuisition of Madv's Retail Property bv the EDA Murzyn Jr. stated the board has discussed this item and asked if there were any comments or questions. Nawrocki asked where the money would be coming from. Streetar stated it would come from the Capital Equipment funds, inter fund loan from the City to the EDA. Motion by Williams, second by Peterson, to authorize staff to negotiate with the Mady- Foss Partnership. Upon Vote: Jindra-aye, Nawrocki-nay, Kelzenberg-aye, Williams-aye, Peterson-aye, Diehm-aye, Murzyn Jr. -aye. Motion Carried. ADMINISTRATIVE REPORTS Streetar stated that staff was contacted by Howe Leathers with the Lions Club who wanted to get the local Hispanic community involved with their organization. Staff gave them some ideas of community meetings and proposed meeting places to get them started. Williams stated he met the Mayor of Lino Lakes recently, who spoke highly of Randy Schumacher and that we should be proud to have him working in our City. Park View Schumacher stated the cleanup of Phase" is now complete and the first five building Economic Development Authority Meeting Minutes August 22, 2006 Page 4 of 4 pads have been constructed. Sewer and water will be completed in the next six to eight weeks. Ryland has sold 67 units in Phase I and 3 units in Phase" to date. ADJOURNMENT Motion by Diehm, second by Williams, to adjourn the meeting at 8: 15 p.m. Respectfully submitted, (~/~ ~t/- Cheryl Bakken Community Development Secretary H :\EDAmi nutes2006\8-22-2006