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HomeMy WebLinkAbout3. Minutes of March 2, 1993 Regular MeetingROSEMOUNT PORT AUTHORITY PROCEEDINGS REGULAR MEETING MARCH 2, 1993 Pursuant to due call and notice thereof a regular meeting of the Rosemount Port Authority was duly held on Tuesday, March 2, 1993 at 5:30 p.m. in the Council Chambers at City Hall, 2875- 145th Street West, Rosemount, MN 55068. Chairperson Dunn called the meeting to order with Commissioners Anderson, Carroll, Edwards, McMenomy, and Sinnwell present. Commissioner Wippermann was absent. Also present were Executive Director Jilk, Economic Development Coordinator Miller, City Attorney Mike Miles, Attorney David Allgeyer from Lindquist and Vennum, and Planning Director Freese. Economic Development Coordinator Miller added a Closed Executive Session to the agenda to discuss the mediation agreement with A and G Autobody. Miller also added, under old business, Offer to Arlyn Cope for Purchase of Repairs, Inc. MOTION by McMenomy to approve the February 16, 1993 regular meeting minutes as printed. SECOND by Carroll. Ayes: 6. Nays: 0. MOTIONby Edwards to approve invoices and membership as presented. SECOND by Sinnwell. Ayes: 6. Nays: 0. The regular meeting was adjourned to a closed executive session at 5:36 p.m. The regular meeting reconvened at 5:55 p.m. Attorney David Allgeyer from Lindquist and Vennum asked to re -visit options for the repurchase of the Repairs, Inc. site. Allgeyer advised the board that he had discussed the repurchase of the site with Repairs, Inc. attorney, Jerry Brill, and listed Arlyn Cope's requirements to negotiate a successful repurchase agreement. Cope is asking for the $12,000 in escrow from lease payments, $20,000 relocation benefits for his company, $20,000 relocation benefits for his tenant, and nuisance fees to cover his attorneys fees, etc. Commissioner McMenomy stated that these costs, along with the $130,000 purchase price of the site totals nearly $180,000, and he felt that this figure was too high and that the Board should not spend anymore tax dollars on the project. Other Commissioners disagreed and felt that there was a need to move forward quickly so that the redevelopment project for the site could move ahead. MOTION by Sinnwell to authorize Lindquist and Vennum to enter into negotiations with Repairs, Inc. for the repurchase of that site, as described in option #2, and bring back a proposed settlement by the next Port Authority meeting on March 16, 1993. SECOND by Edwards. Ayes: Carroll, Anderson, Dunn, Edwards, Sinnwell. Nays: McMenomy. At 6:20 p.m. consensus was reached to adjourn to a closed executive session to discuss a settlement price for the Repairs, Inc. site. The regular meeting reconvened at 6:45 P.M. MOTION by Edwards to approve Old Business items 5. A) through S. E). SECOND by Sinnwell. ROSEMOUNT PORT AUTHORITY PROCEEDINGS REGULAR MEETING MARCH 2, 1993 Clarification was requested regarding the two relocation payments to Earl and Karen Tourdot, owners of Reno's Pizza. Miller advised that one payment was for the relocation of the pizza business and the other payment was for costs incurred searching for another site to relocate their rental realty business. Ayes: Anderson, Dunn, McMenomy, Edwards, Sinnwell, Carroll. Nays: 0. Miller advised that he had contacted Tom Novak, Dakota County Treasurer, regarding auditing the city's tax increment finance figures. Miller stated that this information should be available shortly. Commissioner Sinnwell requested that Port Authority meeting nights be changed to Monday. He felt that time constraints were too great on Tuesday nights and that most items were not being adequately discussed. Executive Director Jilk suggested that the second and fourth Monday nights were available and that there were no conflicts with other committees. Commissioner Edwards stated that he was not comfortable changing the meeting time and/or day and advised that he had taken the liberty of drafting a set of standing rules to aid in structuring the Port Authority meetings which would hopefully expedite them. Discussion was held regarding the need to incorporate parts of the standing rules into the Port Authority bylaws. Chairperson Dunn suggested that the Board take the rules under advisement and requested that staff review the standing rules and be prepared to advise the Board at the next work session meeting. Economic Development Coordinator Miller advised that he had met with the Chase Brackett people on February 18, 1993 regarding the motel feasibility study. Also in attendance were representatives from Americinn, Holiday Express, and Rick Berens who is interested in developing the McDonough site. Motel representatives requested an addendum to the original Scope of Services agreement which would include adding the McDonough site to the study and adding optional tasks which would include Chase Bracket reviewing proposals from the motel developers regarding financial feasibility. MOTION by Sinnwell to approve the Chase Bracket Scope of Services Agreement dated February 23, 1993 as described under option "n2. SECOND by Carroll. Commissioner Anderson questioned the possibility of a conflict with the ongoing McDonough litigation and City Attorney Miles advised that he did not see any trouble with what is being proposed. Ayes: Dunn, Edwards, Sinnwell, Carroll, Anderson. Nays: 0. Abstain: McMenomy. Economic Development Coordinator Miller updated the Board on the proposed business park and the projections Springsted ran showing principal and interest payments the Port Authority would have for land purchases and phase 1 infrastructure. Miller explained that the Port Authority would have an annual payment of $200,000, after a short start-up period. He also explained that, assuming the land sells for 50 cents per square foot with improvements, the Port Authority would have to sell about nine acres annually. Executive Director Jilk asked the Board if it would be helpful to present more information on the business park proposal and asked if this 2 ROSEMOUNT PORT AUTHORITY PROCEEDINGS REGULAR MEETING MARCH 2, 1993 information would be sufficient enough to draw a consensus on the project. Chairperson Dunn felt that the project was not as clear cut as he would like it to be and would indeed like more information. Discussion ensued regarding the feasibility study and whether it should be ordered for the project. MOTION by Sinnwell to request that SEH complete the feasibility study for the business park project. SECOND by Anderson. Ayes: Edwards, Sinnwell, Anderson, Dunn. Nays: McMenomy, Carroll. Economic Development Coordinator advised the Board that West Suburban Mediation Services recommended that the Port Authority pay Jeff and Debra Halbert of A and G Auto Body $37,388 based on a hand written offer from Lee Smith, a Dakota County HRA employee, for a relocation payment. MOTION by Sinnwell to approve a $20,000 payment for relocation expenses to A and'G Auto Body. SECOND by Edwards. Ayes: Edwards, Sinnwell, Carroll, Anderson, Dunn, McMenomy. Nays: 0. MOTION by Dunn to adjourn. SECOND by McMenomy. Ayes: 6. Nays: 0. Meeting adjourned at 7:30 p.m. Respectfully submitted, Deborah Widstrom Recording Secretary 3