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Home My WebLink About3.b. Minutes of December 21, 1993 Work Session Meeting S ROSEMOUNT PORT AUTHORITY PROCEEDINGS WORK SESSION DECF.MBER 21, 1993 Pursuant to due call and notice thereof a work session of the Rosemount Port Authority was duly heid on Tuesday, December 21, 1993 at 5:15 p.m. in the Council Chambers at City Hall, 2875 - 145th Street West. Chair Dunn called the meeting to order with Commissioners Anderson, Carroll, McMenomy, Sinnwell, and Wippermann present. Commissioner Edwards was absent. Staff present included Interim City Administrator Wasmund, Economic Development Coordinator Miller, and Assistant Planner Pearson. There were no additions or corrections to the agenda. M01'ION by Sinnwell to accept the agenda as printed. SECOND by Carroll. Ayes: 6. Nays: 0. Economic Development Coordinator Miller was directed by the board to check with Lindquist and Vennum to see who is responsible for the penalty charges on the property taxes due for the annory properties. MOTION by Sinnwell to pay $4,231.58 in property tax for the azmory properties. SECOND by Wipperrnann. Ayes: 6. Nays: 0. M4TION by Sinnwell to approve the transfer of$96,593.14 to the annory/comrnunity center relocation fund. SECOND by McMenomy. Ayes: 6. Nays: 0. Chair Dunn introduced Tracie Chamberlin and Diane Nordquist of the HRA. Chamberlin and Nordquist reviewed revisions made to the development and cooperation agreements and also presented and reviewed a prepared summary of acquisition and relocation procedures and costs. Discussion followed and Chair Dunn suggested that the commissioners take time to review the documents and place them back on the next agenda. for action. Interim City Administrator Wasmund explained the process for planning commission and city council review and assured the board that bringing this item back to the January 4 agenda would allow enough time for the necessary steps. Economic Development Coordinator lYtiller introduced Ron Johnson, proposer of the Shamrock Square project. _Miller explained that the Johnsons aze making efforts to reduce the project's overall cost so that reduced rents can be offered to attract tenants, which in turn should help in securing , . bank fmancing. 'Miller also advised that, according to the Johnsons,'their bank is asking for more equity in the project and therefore the Johnsons are requesting TIF money up-fronf as opposed to pay-as-you-go financing. Mr. Johnson was allowed to speak and advised that they are fincling that you can't lease something that's not built and because of the project's cost, the lease payments are too high, He further explained that after discussing their project with many experts, they learned that there was room to cut costs and reduce the overall project cost. Some commissioners felt that Shamrack Square project was a quality project and the best option of the others listed in staff correspondence and suggested that staff research the possibilities of assisting the Johnsons with revised fmancing. Other commissioners, however, felt that the project was not viable and the port authority should move on to those other options. . � ROSEMOUNT PORT AUTHORITY PROCEEDINGS WORK SESSION DECElVIBER 21, 1993 MOTION by Carroll to direct city staff to prepare a report, to be distributed at the next meeting, that addresses the feasibility of and procedures involved in implementing either or both of the suggestions that appear in subparagraphs 1 and 2 on page 2 of Mr. Ronald Johnson's letter to the port authority dated December 13, 1993, and in particular option 1 being the possibility of the city of Rosemount keeping the tax increment funds and selling bonds in order to provide financing for the project or number 2, alternatively, allowing the developer to receive the tax increment funds in advance in the form of a loan from the city of Rosemount possibly with an interest requirement with the understanding that the city would then be entitled to keep the TIF money when it be�ame available. SECOND by Sinnwell. Ayes: Carroll, Wippermann, Sinnwell. IrTays: Anderson, Dunn, McMenomy. Motion failed Economic Development Coordinator Miller advised the boartl that a representative of Dakota Central Realty had contacted him regarding their complaint that persons performing snow removal for the post office parking lot are piling the snow on Dakota Central property. Commissioner Anderson questioned whether the snow removal ardinance covers this issue and, if it does,_,staff should enforce it. Anderson also suggested that the port authority should advertise for sealed bids on the property and sell it. Commissioner McMenomy, however, felt that in light of the elimination of pa,rking on Highway 3, the port authority should spend the funds to construct a parking lot and designate it as public parking. Staff was directed to research the parking lot option further and bring back updated — information at a future meeting. MOTION by Carroll to table item 4.C. SECOND by Sinnwell. Ayes: Anderson, Wippermann, Dunn, Sinnwell, Canoll. Nays: McMenomy. Interim City Administrator Wasmund introduced Dave 5imons of SEH and advised that Mr. Simons was present to discuss dollar costs of phase la of the business park and how they can be recovered through assessments. Wasmund prefaced Mr. Simons presentation by commenting that the figures that will be presented are based on presumptions made to date and that costs may vary according to the extent of the project. 1�;r.�Sunons then reviewed his correspondence. Discussion followed and commissioners agreed to defer this item to another work session or retreat. Economic Development Coordinator Miller advised the board that he and Wasmund had met with Arlo and Renee Rhoads regarding the purchase of an industrial lot in the business park. Miller summarized the meeting by stating that the Rhoads wish to construct an industrial building with " about 1500 square feet of office space and $0� to 1OQ00 square feet of warehouse space. They would occupy the building for a year or two and then sell it. They would then build a second and third building following the same pattern. Mi11er advised that the Rhoads are not necessarily interested in a highly visible lot and would like to move on this rather quickly. Miller requested direction from the board and asked if their was interest in entertaining the proposal. Commissioners requested that the Business Park Promotion sub-committee research land prices and make a recommendation to the full board. Economic Development Coordinator Miller provided an update of the Muller Family Theater project. He advised that the zoning ordinance amendment to create the business park was ta.bled by the city council. As a result of this a suggestion had been made to set a . " � ROSEMOUNT PORT AUTHORITY PROCEEDINGS WORK SESSION � DECEMBER 21, 1993 ', joint meeting with the city council, planning commission, and port authority. January 10, 1994, at 6:30 p.m. was set as the preferred date and time. Commissioner Carroll requested that staff (Wasmund and Miller) meet with the Mullers later this week to address zoning issues Commissioner Sinnwell read his letter of resignation effeetive December 21, 1993. Sinnwell advised that he had accepted an employment offer in Douglas County, Minnesota. MOTTON by McMenomy to accept Commissioner Sinnwell's resignation effective December 21, 1993. SECOND by Dunn. Ayes: 6. Nays: 0. Agenda items 4.D.(4) through 4.G. were not discussed because of lack of time. MOTION by Sinnwell to adjourn. SECOND by McMenomy. Ayes: 6. Nays: 0. Respectfully submitted, Deborah Widstrorn Recording Secretary :