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EDA 1999 10 21ECONOMIC DEVELOPMENT AUTHORITY MEETING MINUTES OCTOBER 21, 1999 Chairman Gary Boyle called the meeting to order at 6:30 p.m. MEMBERS PRESENT: Linda Jansen, Gary Boyle, Mark Engel and Jim Bohn. MEMBERS ABSENT: Steve Labatt, Nancy Mancino and Mark Senn. STAFF PRESENT: Don Ashworth, Executive Director and Bruce Dejong, Finance Director. APPROVAL OF MINUTES: No members had questions in regards to the minutes. Engel moved, Jansen seconded, to approve the minutes of July 29, 1999 as presented. All voted in favor. Motion carried. VISITOR PRESENTATIONS: No presentations were made. PUBLIC HEARING Business Subsidy Criteria: Mr. Dan Greensweig, from Kennedy Graven was present to discuss the "Business Subsidy Criteria" included in the EDA packets. Mr. Greensweig noted that all of the mandatory criteria were required under Minnesota Statute. He also noted that the criteria represented minimum criteria and did not restrict the EDA or City Council from establishing stricter criteria if such became desirable as a part of a future application. Chairman Boyle officially opened the public hearing. Since no citizens were present, Chairman Boyle asked for EDA member questions. Jansen: ! have compared the proposed criteria to our existing tax increment policies and ! believe the existing policies are more comprehensive than those shown in this document. If we approve this, can we place a section in each of the two documents which would reference the other? Additionally, by adopting the new business subsidy criteria, are we abandoning or weakening our existing tax increment financing policies? Greensweig: There is no reason that both documents cannot be modified to reference the other document. As to the second question, by adopting the business subsidy criteria does not modify or weaken your existing tax increment policies. You may want to consider it as supplemental to it. Boyle: Those were excellent questions and from my perspective seeing each of the documents referencing the other is a great idea. Did you have any additional questions? Jansen: Do these criteria in any way affect housing and our ability to pursue a low income project, elderly, etc.? ECONOMIC DEVELOMENT AUTHORITY MINUTES MAY 20, 1999 PAGE 2 Greensweig: No. The legislature was clear in specifically excluding anything related to housing in the statute that required the establishment of business subsidy criteria for all entities who were subsidizing businesses. Dejong: Would the business subsidy criteria apply to developments where the city decided to use tax abatement versus tax increment as a means to encourage a business to develop in the community? Greensweig: Absolutely. Boyle: Do any other members have questions? Each member expressed that they were comfortable with the presentation by Mr. Greensweig and with the questions and answers. Accordingly, Chairman Boyle closed the public hearing. Boyle: I would just as soon see the City Council take final action on this item before we do. What type of problems would be created if we did table this to our next meeting? Ashworth: We do have three developments which are currently being delayed by the fact that they must agree to the city's Business Subsidy Criteria as outlined in Minnesota statute. If the criteria are not in place, the projects cannot go forward. Following discussion, staff recommended the EDA move forward as the item will appear on the City Council agenda this next week and if modifications are made, those can be addressed at our next meeting. Bohn moved, seconded by Engel a motion to approve the proposed Business Subsidy Criteria as presented with the exception that the EDA would recommend to the City Council that both the proposed Business Subsidy Criteria as well as the existing Tax Increment Policies be modified to include a section which references the other in each of those two documents. Motion was approved unanimously. Boyle: Don, you had requested that an additional item be considered by the EDA. Would you like to make that presentation now? Ashworth: Yes. Thank you Mr. Chair. Earlier I passed out a letter from John Rice representing Bloomberg Companies notifying the city that Bloomberg Companies was officially giving notice to the EDA that the city had 30 days in which to exercise an option agreement regarding four parcels currently owned by Bloomberg Companies. I have additionally distributed a map showing the location of the four parcels. It should be noted that each of the four are relatively small but would be needed either for access or to obtain clear title associated with the proposed movie theater project. As that project is currently on hold, Mr. Copeland has contacted Bloomberg notifying them that they would not be purchasing the four parcels. As the EDA was a part of the negotiations in attempting to carry out redevelopment of the bowling center, we also became a ECONOMIC DEVELOMENT AUTHORITY MINUTES MAY 20, 1999 PAGE 3 part of that purchase agreement, i.e. the agreement specifically gave the EDA the right to purchase the four parcels should the movie theater project not occur. It is difficult for me to guess exactly why that option was put into the original agreement, but ! believe it was simply a means by which to ensure that the title problems could be cleared up assuming a new developer came to the forefront prior to the time that negotiations were finalized with Copeland. However, at this point we do not have an additional developer, with a project. Accordingly, staff would recommend that the EDA approve a motion to notify Bloomberg Companies that the EDA will not be exercising the option agreement. Various members had questions as to why the Copeland project was currently bogged down as well as questions regarding Mr. Dahlin and his operations at the bowling center. Following the discussion, Bohn moved, seconded by Engel, a motion to notify the Bloomberg Companies that the EDA would not be pursuing the option agreement for the four parcels described in that document. Motion was approved unanimously. YEAR 2000 BUDGET: Ashworth noted that staff had hoped that a draft document would be available for this evening. In light of the fact the draft document was not available and that such can be placed on to the next agenda without significant problems. This item is recommended to be tabled. The EDA acted to table this item. ADJOURNMENT: Vice-Chair Bohn adjourned the Economic Development Authority meeting at 7:00 p.m. Don Ashworth Economic Development Director