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HomeMy WebLinkAbout4. Minutes of February 8, 1993 Regular MeetingROSEMOUNT PORT AUTHORITY PROCEEDINGS REGULAR MEETING FEBRUARY 8, 1993 MOTION by Edwards to close nominations. SECOND by McMenomy. Ayes: 5. Nays: 0. MOTION by Edwards to elect Jeff May as Assistant Treasurer. SECOND by McMenomy. Ayes: 5. Nays: 0. MOTION by Wippermann to elect Susan Walsh as Executive Secretary. SECOND by Edwards. Ayes: 5. Nays: 0. MOTION by Edwards to approve the November 24, 1992 closed executive session minutes, January 5, 1993 regular meeting minutes, January 19, 1993 work session minutes, and the January 19, 1993 closed executive session minutes as printed. SECOND by Sinnwell. Ayes: 5. Nays: 0. Commissioner Sinnwell requested that he be provided with the hydraulics work from the Business Park Concept Plan done by SEH, Inc. MOTION by Sinnwell to approve the payment of invoices as submitted. SECOND by Edwards. Ayes: 5. Nays: 0. Commissioners expressed their concerns regarding the expense of the goal -setting retreat and the need for a facilitator. Commissioner Edwards stated that if the argument was not regarding the facilitator's qualifications, then in his opinion, the costs were not unrealistic. Economic Development Coordinator Miller concurred that costs for hotels were comparable and that the cost for the facilitator was also in line with other facilitators. MOTION by Edwards to approve the proposal submitted by Don Salverda and Associates for the February 20 Port Authority goal -setting session at the Courtyard Marriott using the above mentioned facilitator. SECOND by Wippermann. Ayes: Wippermann, Dunn, Edwards. Nays: McMenomy, Sinnwell. MOTION by McMenomy to adjourn to a closed executive session to discuss pending litigation. SECOND by Sinnwell. Ayes: 5. Nays: 0. Meeting adjourned to the closed session at 5:55 p.m. The regular meeting reconvened at 7:10 p.m. MOTION by Edwards to rescind Resolution 1992-3 which authorized eminent domain proceedings for land known locally as the Strese Oil site by approving Resolution 1993-3, A RESOLUTION RESCINDING RESOLUTION 1992-3, WHICH AUTHORIZED THE USE OF EMINENT DOMAIN. SECOND by McMenomy. Ayes: Dunn, McMenomy, Edwards, Sinnwell, Wippermann. Nays: 0. Chairperson Dunn stated that he was open to suggestions regarding the meeting date of Port Authority meetings. Discussion was held regarding changing the day of the meetings to Monday night so that the meetings would not have to conclude early because of City Council meetings or held at the fire station, which was also not preferred because City Council members on the Board would have to leave for City Council meetings. It was explained that changing the meeting day to Monday night would also conflict with other City commissions and committees. It was then suggested that this item be deferred to the goal -setting retreat and Commissioners were asked to research options for dates. ROSEMOUNT PORT AUTHORITY PROCEEDINGS REGULAR MEETING FEBRUARY 8, 1993 Pursuant to due call and notice thereof the regular meeting of the Rosemount Port Authority was duly held on February 8, 1993 at 5:30 p.m. in the Council Chambers at City Hall, 2875 - 145th Street West. Chairperson Dunn called the meeting to order with Commissioners Wippermann, Dunn, McMenomy, Edwards, and Sinnwell present. Commissioner Anderson was absent. Economic Development Coordinator Miller and City Attorney Mike Miles were also present. Newly appointed member, Kevin Carroll, was unable to attend the meeting so will be sworn in at the next Port Authority meeting. Chairperson Dunn added Appeals Officer Resignation to the agenda under Executive Directors Report. The annual election of officers ensued. MOTION by Wippermann to nominate Ed Dunn as Chairperson. SECOND by McMenomy. MOTION by Wippermann to close nominations. SECOND by Edwards. MOTION by Edwards for unanimous ballot to elect Ed Dunn as Chairperson. SECOND by Sinnwell. Ayes: 5. Nays: 0. MOTION by Wippermann to nominate John Edwards as Vice -Chairperson. SECOND by McMenomy. MOTION by Wippermann to close nominations and elect John Edwards as Vice -Chairperson. SECOND by McMenomy. Ayes: 5. Nays: 0. MOTION by Edwards to nominate Joan Anderson as Treasurer. SECOND by Wippermann. MOTION by McMenomy to close nominations. SECOND by Wippermann. Chairperson Dunn called for those in favor of the nomination. Ayes: 5. Nays 0. City Attorney Miles advised that the preceding motion was to close nominations for Treasurer and that another motion was needed to elect Commissioner Anderson as Treasurer. Miles also stated that under state statue, motions were needed to elect the Assistant Treasurer and Executive Secretary. Commissioner Edwards stated that a motion to elect him as Vice - Chairperson was also not made. MOTION by Sinnwell to elect by unanimous ballot John Edwards as Vice - Chairperson and Joan Anderson as Treasurer. SECOND by Wippermann. Ayes. 5. Nays: 0. MOTION by Edwards to elect Jeff May as Assistant Treasurer. SECOND by McMenomy. ROSEMOUNT PORT AUTHORITY PROCEEDINGS REGULAR MEETING FEBRUARY 8, 1993 Economic Development Coordinator Miller informed the Board that Arlyn Cope, owner of Repairs, Inc. had exercised his option to repurchase land at 14390 and 14410 South Robert Trail. He further explained that the closing of the sale will be 60 days from February 2, 1993 and at that time the Port Authority will receive approximately $118,000 in cash from Repairs, Inc. MOTION by McMenomy to direct the Chairperson and Executive Director to sign the Real Estate Repurchase Agreement dated February 2, 1993 as submitted by Repairs, Inc. SECOND by Edwards. Ayes: McMenomy, Edwards, Sinnwell, Wippermann, Dunn. Nays: 0. Economic Development Coordinator Miller explained that since Arlyn Cope had submitted a repurchase agreement for the Repairs, Inc. site, it was now premature for the Port Authority to award the Repairs, Inc. Redevelopment Project to either of the interested developers. He further stated that if the closing is not completed, the redevelopment proposals can be considered again. MOTION by McMenomy to table consideration of the proposals for the redevelopment of the Repairs, Inc. site. SECOND by Wippermann. Ayes: Edwards, Sinnwell, Wippermann, Dunn, McMenomy. Nays: 0 Economic Development Coordinator Miller advised the Board that Conworth, Inc. had sent a 90-day notice for vacation of the Strese property at 14810 South Robert Trail to David Strese in error. Conworth based this action on the continuing quick-take condemnation resolution approved by the Port Authority. As the condemnation proceedings were not proceeding, Conworth mailed a rescission of the 90-day vacate notice to the Streses' with apologies. Economic Development coordinator Miller briefly reviewed the proposed Carlson Center project and then introduced the Carl.sons and Tom Heiberg, the Carlsons' financial advisor, for additional input and comments. Mr. Heiberg stated that it was necessary to gain Port Authority support for their project to give them leverage when negotiating with a grocery wholesaler to secure a store operator. He explained that because of the concentration of retail five miles away and the sparsely populated area to the east, it is difficult to find a grocery anchor willing to locate in the Rosemount area. However, they have met with major retailers and there is interest and a willingness to continue discussions if there is support from the city. In response to questions from the Board, Mr. Heiberg stated that rent subsidies may be needed for some of the retailers and that half of the remainder of the space in the center has a waiting list. Also discussed was the entrance and exit off of and on to County Road 42 and whether county approval had been gained. Mr. Heiberg stated that the entrance into the center had tentative approval from the county and the exit had not been discussed with them. Mr. Heiberg stated that the exit onto County Road 42 was a necessary condition for the center to be viable. Discussion ensued regarding concerns that reaffirmation of support for the project should not specifically bind the city to any course of action. ROSEMOUNT PORT AUTHORITY PROCEEDINGS REGULAR MEETING FEBRUARY 8, 1993 MOTION by Edwards to declare publicly the Port Authority's support for the development of the Carlson Center and to direct Port Authority staff to work with the Carlsons in its development without specifically binding the Port Authority and city to any particular project support at this time. SECOND by McMenomy. Ayes: Sinnwell, Wippermann, Dunn, McMenomy, Edwards. Nays: 0. Economic Development Coordinator Miller introduced Mr. Richard Berens, who asked to visit with the Port Authority to discuss a redevelopment proposal for the McDonough property located east of the Armory. Also in attendance with Mr. Berens was Mr. Steve Roxberg. Mr. Berens informed the Board that they were seeking comments and suggestions on their proposed auto mall project. Mr. Berens reviewed the preliminary plat showing a three lot subdivision and also reviewed construction details of the building. He described their desire to construct a controlled intersection with the Armory entrance, which would also serve as an access to a park area. This entrance road would be donated to the city for the park entrance if the city decided to buy the park land. Mr. Berens also explained that the property would need to be rezoned from C-2 to C-3 and that a fence around the rear parking and outside storage areas would provide a screen to the surrounding areas. Mr. Berens also explained that if all the necessary approvals from the planning commission and city council were acquired, they had a target date of June 1st for completion of the project. Some commissioners expressed concerns regarding the location and felt that the auto mall should be located further south, while others felt that the proposal was the highest and best use for the property and was a good opportunity for the city to assist other businesses in relocation opportunities. MOTION by Sinnwell for the Port Authority to go on record and support this plan in its entirety and help assist in gaining the necessary approval through the other commissions and committees. Motion failed for lack of a second. Economic Development Coordinator Miller explained to the Board that negotiations with the brokers of the Abbott property have been continuing and at a recent meeting a purchase agreement with certain terms were discussed. Discussion ensued regarding the risk associated with the project and whether the Board was sufficiently informed to continue with a purchase agreement. MOTION by Dunn to table this item pending further discussion at the upcoming goal -setting retreat on February 20, 1993 and then bring it back to an upcoming Port Authority meeting. SECOND by McMenomy. Ayes: Wippermann, Dunn, McMenomy. Nays: Sinnwell. MOTION by Edwards to lay over items 12. C) Consideration of Feasibility Report for Phase l of Business Park, and 12. D) Consideration of Quotes for Business Park Property Approval to the next Port Authority meeting. SECOND by McMenomy. Ayes: Dunn, McMenomy, Edwards, Wippermann. Nays: 0. Present: Sinnwell. ROSEMOUNT PORT AUTHORITY PROCEEDINGS REGULAR MEETING FEBRUARY 8, 1993 Economic Development Coordinator Miller explained to the Board that they could establish criteria for relocation payments in excess of the $20,000 maximum permitted by law. He further explained that they would be implementing public policy in response to several businesses that may ask for larger payments in their relocation claims. Commissioners concurred to take no action because criteria is already established and agreed to stick with the guidelines already in place. MOTION by Sinnwell to approve a partial advance payment of $3,450 to John Anderson dba Dakota Small Engine Repair as recommended by Conworth, Inc. SECOND by Wippermann. Ayes: McMenomy, Edwards, Sinnwell, Wippermann, Dunn. Nays: 0. Concerns were raised regarding the lack of documentation to support a relocation payment of $59,000 to Richard Battaglia dba Rick's Auto Repair. It was explained that the $59,000 included business and residential relocation expenses and an immovable fixture payment. Miller advised that if Commissioners were uncomfortable with approving the undocumented claim, they could request that Conworth, Inc. provide them with documentation to justify the claim. Commissioners questioned the residential relocation expense because of the zoning violation and Miller explained that there was documented proof that Mr. Battaglia had indeed resided in the building for at least 180 days prior to the initiation of negotiations, which is within statutory limits. Discussion ensued regarding Mr. Battaglia's intent to purchase property in the Rosemount area for relocation, and the need to secure the relocation payment in a timely manner in order to complete the purchase agreement. Commissioners discussed the idea of requiring the payment to be contingent upon Mr. Battaglia successfully completing a purchase agreement for property in the Rosemount area. MOTION by Sinnwell to approve a relocation payment of $59,000 on the recommendation of Conworth, Inc. to Richard Battaglia dba Rick's Auto Repair contingent upon Mr. Battaglia signing a Waiver of Relocation Benefits. SECOND by Edwards. Ayes: Edwards, Sinnwell, Wippermann, Nays: Dunn. Present: McMenomy. MOTION by Edwards to approve Resolution 1993-4, A COMMITMENT TO THE DAKOTA COUNTY ECONOMIC DEVELOPMENT PARTNERSHIP. SECOND by Sinnwell. Ayes: Sinnwell, Wippermann, Dunn, McMenomy, Edwards. Nays: 0. MOTION by Edwards to dismiss any actions regarding the issue of unauthorized representation by Port Authority and City Council members. SECOND by Sinnwell. Ayes: Dunn, Edwards, Sinnwell, Nays: 0. Present: Wippermann, McMenomy. Commissioner McMenomy requested that the meeting return to item 11. D) Consideration of Redevelopment Proposals for Repairs, Inc. Site. Because of a conflict of interest, he felt that he should not have made the motion to table action on the redevelopment proposals and asked that another Board member make the motion. City Attorney Miles felt that Commissioner McMenomy had not been out of order in making the motion, but felt the Board should respect his sensitivity to the issue and asked that they respect his decision in the matter so that he could go on record as abstaining from the vote. Commissioner Edwards suggested that Chairperson Dunn assume the responsibility for the action. ROSEMOUNT PORT AUTHORITY PROCEEDINGS REGULAR MEETING FEBRUARY 8, 1993 MOTION by Dunn to table consideration of the proposals for the redevelopment of the Repairs, Inc. site. SECOND by Sinnwell. Ayes: Dunn, Edwards, Sinnwell, Wippermann. Nays: 0. Abstain: McMenomy. Items 14. A) Ice Arena Update and 14. B) Tax Increment Financing Audit were deferred to the next Port Authority meeting on Tuesday, February 16, 1993. Commissioner Sinnwell requested that staff provide a map of the tax increment district identifying each property owner, and PID numbers associated with those properties by the next Port Authority meeting. Economic Development Coordinator Miller informed the Board that Ron Wasmund had resigned as Appeals Officer for the Port Authority's relocation claim appeals. Miller recommended that the Port Authority seek an outside firm to act as an arbitrator in hearing appeals. MOTION by Wippermann to authorize John Miller to proceed with finding an arbitrator to settle appeals to relocation claims. SECOND by Sinnwell. Ayes: Edwards, Sinnwell, Wippermann, Dunn. Nays: McMenomy. MOTION by Dunn to adjourn. SECOND by Edwards. Ayes: 5. Nays: 0. Meeting adjourned at 10:00 p.m. Respectfully submitted, Deborah Widstrom Recording Secretary