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HomeMy WebLinkAbout3.a. Minutes of July 6, 1993 Regular Meeting � {� �R AFT ROSEMOUNT PORT AUTHORITY PROCEEDINGS REGULAR MEETING JULY 6, 1993 Pursuant to due call and notice thereof a regular meeting of the Rosemount Port Authority was duly held on Tuesday, July 6, 1993 at 5:30 p.m. in the Cauncil Chambers at Rosemount City Hall, 2875 - 145th Street VVest. Chair Dunn called the meeting to order with Commissioners Carroll, Edwards, McMenomy, Sinnwell, and Wippermann present. Commissioner Anderson was absent. Staff present included Executive Director Jilk, Economic Development Coordinator Miller, and Port Authority Attorney Miles. Chair Dunn presented former Commissioner Bill Mawe with an appreciation plaque and thanked him for his service to the Port Authority, Commissioners agreed to discuss items 3. A. Review of Business Park Land Purchase and 5. A. Update on Theater Development Proposals together as one item under old business. Commissioner Sinnwell also requested that 7. E. Carlson Properties Update be added to the agenda. MOTION by Edwards fio accept the agenda as amended. SECOND by McMenomy. Ayes: 6. Nays: 0. MOTION by Edwards to approve the consent agenda with an amendment to the June 22, 1993 minutes to show Attorney Mike Miles present at that meeting. SECOND by McMenomy. Ayes: 6. Nays: 0. Econornic Development Coordinator Miller advised the Board that Attorney Miles and financial consultants from Springsted, Inc., David Drown and Dan 0'Neil, were prepared to review with them the business park land purchase counter offer submitted by Roy Abbott and the theater proposal submitted by the Mullers. Commissioners decided to discuss the theater proposals first as this directly affected any decision they would make regarding the Abbott land purchase. Discussion centered around a proposal letter received from Guetschoff Theatres, Inc. regarding building a theater in Rosemount and whether to delay a decision on the Muller Theater to allow for the Guetschoffs' to submit a proposal by July 22, 1993. Executive Director 7ilk commented that the Mullers are a credible developer that had come to the Port Authority in good faith and had done everything that had been asked of them. Jilk felt that the Board should continue to work with the Mullers to fine tune their project and not accept anymore proposals unless the Board could not come to an acceptable agreement with the Mullers. David Drown presented and reviewed the finaneial figures that had been generated from numbers given to them by the Mullers. Dan O'Neil commented on the Mullers financial background and stated that the Mullers have and can meet their financial obligations and appear to operate a very sound and profitable business. Discussion continued regarding issues in the , . , ROSEMOUNT PORT AUTHORITY PROCEEDINGS .f� `� ���� REGULAR MEETING JiTI,Y 6, 1993 development agreement, alternative ways to restructure the debt, and personal guarantees if something should go wrong. MOTION by Edwards to continue negotiations with the Mullers and to not consider another proposal until it has been determined whether an agreement can be reached with the Mullers. SECOND by Carroll. Commissioners expressed concerns and specifically indicated that a vote of this nature did not constitute a commitment to the Mullers. Mike and Bob Mu11er were in attendance. Ayes: Carroll, Wippermann, Dunn, McMenomy, Edwards, Sinnwell. Nays: 0. MOTION by Edwards to initiate the process to inform the city council of the concept of the Muller Theater project. SECOND by Dunn. Ayes: Wippermann, Dunn, McMenomy, Edwards, Sinnwell, Carroll. Nays: 0. Discussion continued regarding the counter offer received from Roy Abbott for the purchase of the business park land. Attorney Miles commented�on a few items of concern in the agreement including the fact that it was a "purchase agreement not a purchase option" with a requested response by July 23, the agreement was not contingent upon the Port Authonty finding one or two tenants, the purchase price was $550,000 not the $454,000 offered by the Port Authority, and the buyer was required ta pay for surveys and testing. Executive Director Jilk questioned Mr. Drown regarding land acquisition costs and whether they could be included in the debt issuance of the theater project. Mr. Drown stated that as long as they were both executed at that same time, land acquisition casts could be included in the debt issuance. Jilk then suggested that the Port Authority may want to consider doing this and affer the seller $450,000 cash for the land, which would be more attractive to the seller than the previously discussed terms. Commissioners discussed a 90 day contingency and closing. MOTION by Sinnwell to authorize staff and city attorney to submit a counter affer for the Abbott property in the amount of $450,000 cash with $5,000 earnest money contingent upon surveys and soil tests being completed by the seller and the theater being built there. SECOND by Edwards. Ayes: Dunn, McMenomy, Edwards, Sinnwell, Carroll, Wippermann. Nays: 0. Economic Development Coordinator Miller reviewed his recommendation regarding the motel development proposals. Miller advised that Ed Dunn, Steve Jilk and he had been working with Springsted, Inc. in reviewing the motel proposals and had eome to an agreement that as many projects as possible should be moved to the business park site to facilitate development of that 80 acre parcel. Since the RFP stated that the port authority retained the right to reject proposals for any reasons, Miller recomrnended rejecting the motel proposals and authorize a�s�ecRoFnP RFP that specifically states a business park site. Commissioners drsagreed that the seco should be site specific and requested that the RFP be non-site specific. 2 � , , _ _ ROSEMOUNT PORT AUTHORITY PROCEEDINGS ����T REGULAR MEETING JULY 6, 1993 MOTION by Edwards to reject the motel development and motel/restaurant development proposals submitted by Ray Anderson Associates and New Ulm Enterprises based upon information submitted in the proposals and given verbally to the commissioners, internal working documents and analysis of the authority, and the long range needs of the city of Rosemount. SECQND by McMenomy. Ayes: McMenomy, Edwards, Sinnwell, Carroll, Wippermann, Dunn. Nays: 0. Commissioner Sinnwell requested that the theater development proposal be re-visited. MOTIQN by Sinnwell that the Port Authority accept the Muller theater proposal contingent upon coming to an agreeable financial arrangement with them. SECOND by McMenomy. Discussion continued and Commissioners agreed that the motion was unnecessary because of previous actions taken by the Board. Commissioner McMenomy withdrew his second and the motion died for lack af a second. MO'TI4N by McMenomy to direct staff to work with the Mullers and reach an agreement by the July 20, 1993 Port Authority meeting and come back with a recommended motion for the business park land purchase and theater project. Motion died for lack of a second. MOTION by Edwards to change the July 20, 1993, committee of the whole meeting, to a regular meeting to allow the Port Authority to consider action items. SECOND by Sinnweil. Ayes: Edwards, Sinnwell, Carroll, Wippermann, McMenomy. Nays: Dunn. Because of time constraints, Chair Dunn amended the agenda to discuss the remaining action items on the agenda. He explained that if time permitted the other non-action items would be discussed. MOTION by Edwards to appoint Jack Clinton, 8750 - 90th Street South, Gottage Grove, MN 55016 as the appeals hearing officer for the Rosemount Port Authority. SECOND by Carroll. Executive Director Jilk explained that because of Clinton's extensive city government experience and his experience with the City of Rosemount, other persons were not interviewed. Ayes: Sinnwell, Carroll, Wippermann, Dunn, McMenomy, Edwards. Nays: 0. 3 f � { ROSEMOUNT PORT AUTHORITY PROCEEDINGS ����T REGULAR MEETING JULY 6, 1993 Economic Development Coordinator Miller reviewed his correspandence regarding the tax increment finance district receipts whieh show payrnent of delinquent taxes. He advised that the receipts were from the Strese property and for the commercial part of the Rosemount Plaza subdivisions. No payment from the Rosemount Plaza condos'has been received yet. Economic Development Coordinator Miller apprised the Board of the upcoming Utility Commission meeting regarding the Eastern Rosemount Comprehensive Water and Sanitary Sewer Studies. Planning Commissioners and Port Authority Commissioners are invited to attend the meeting on July 19, 1993, at 6:30 p.m. Commissianers agreed that since none of the remaining items could be discussed sufficiently in the rernaining five minutes, the meeting should adjourn. MOTION by Dunn to adjourn. SECOND by McMenomy. Ayes: 6. Nays: 0. Meeting adjourned at 7:26 p.m. Respectfully submitted, I Deborah Widstram Recording Secretary 4