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HomeMy WebLinkAbout10 28 2019 EDA minutes 1 4646 Dakota Street SE Prior Lake, MN 55372 CITY OF PRIOR LAKE, MINNESOTA ECONOMIC DEVELOPMENT AUTHORITY MEETING MINUTES – October 28, 2019 1. Call to Order The meeting was called to order at 2:58 p.m. in the Little Prior Conference Room at Prior Lake City Hall. Members present: Dave Chromy, Zach Braid, Kirt Briggs, Annie Sheehan-Kerber, and Marie Boucher-Hoese. Staff present: Executive Director Jason Wedel, Community Development Director Casey McCabe and Planner Amanda Schwabe. Special Guests: Ben Beard and Bill Beard of The Beard Group, Inc. 2. APPROVAL OF AGENDA a. None. 3. APPROVAL OF MEETING MINUTES a. None. 4. CONSENT AGENDA a. None. 5. REMOVED CONSENT AGENDA ITEMS a. None. 6. PRESENTATIONS a. None. 7. PUBLIC HEARINGS a. None. 8. OLD BUSINESS a. None. 9. NEW BUSINESS a. Downtown Redevelopment MCCABE provided an update on a proposed mixed use commercial and residential downtown redevelopment opportunity including participating parcels, anticipated project components, timelines, possible assignment and assumption of a purchase agreement, and potential establishment of a redevelopment TIF district. Discussion followed. Bill Beard stated that they would building a multi-story building with underground parking. He stated their architect is looking at how a 4th level and an additional level of underground parking could be added. A 4th level would allow the removal of at grade garage stalls currently being considered. He stated that their preference is for one covered parking stall per residential bedroom. BRIGGS expressed support of the addition of a 4th story and two levels of underground parking to eliminate the at grade garage stalls. CHROMY agreed. MCCABE shared that this type of redevelopment would likely require a PUD approval from the City Council to reconfigure the property lines as appropriate. BILL BEARD discussed the anticipated Phase I and Phase II environmental testing for the subject properties. He stated that there have been many reports filed with the MPCA associated with these properties indicating tanks have been removed. MCCABE shared that he has provided information to the City Attorney related to the potential assumption of the Beard Group’s purchase agreement and anticipates comments upon her return to the office next week. MCCABE shared the options for consideration by the EDA related to property acquisition. Discussion followed. BILL BEARD shared that owning land without site control or preliminary development approval can be a concern for their lender(s). Perhaps a date can be identified to have a preliminary concept/development approval. BRIGGS questioned when the site borings would occur. BILL BEARD stated that sites can be remediated to either a residential or commercial standard. The existing site could remain as it currently is without remediation if the development were not to move forward. Example: borings by December and if results are not favorable, developer would look to obtain grants to assist with remediation. BRAID questioned if the Beard Group has seen the lease. BILL BEARD stated that the property owner owns many properties and confirmed it is a month-to-month lease. He shared that they are not opposed to working with the tenant to find another location in the community while the VFW portion of the project moves forward. CHROMY shared that the EDA had been working with the tenant previously and offered assistance to find another location. BILL BEARD suggested a pre-preliminary concept approval including a requirement that the City would purchase the parcel if the development does not move forward within 12 months of the purchase date. He anticipates that type of language would be acceptable to their lender. MCCABE shared that the EDA has funds and has the authorization from the City Council to purchase property. He clarified that the EDA will meet again on 11/12/19 and the City Council will meet on 11/4/19 and 11/18/19. BRIGGS stated that in his understanding under the proposed approach that no funds are exchanging hands; however, contractually, the EDA and the Beard Group would be bound. Historically, the EDA has not owned properties, rather the City Council does. With that said, the EDA could commit to purchasing a property. MCCABE concurred. Discussion followed. SHEEHAN-KERBER clarified that the EDA is guaranteeing to the property owner that the property will be sold on a specific date and guaranteeing to the Beard Group, Inc. that the City will purchase the property within a specific period of time if the project does not move forward. BRAID suggested extending the purchase date from the City to be in the late fall 2020 or January 2021. BILL BEARD shared that it will take at least a year for the VFW project, therefore it is possible the 12-month purchase requirement may go into the early months of 2021. BOUCHER-HOESE asked clarifying questions regarding the purchase of a residential parcel. Discussion ensued. BILL BEARD shared that The Beard Group will provide information regarding the environmental plans and due diligence to the city. MOTION BY BOUCHER-HOESE SECONDED BY BRAID TO DIRECT STAFF TO COORDINATE THE NECESSARY AGREEMENT WITH THE BEARD GROUP, INC. TO ALLOW THE BEARD GROUP, INC. TO SECURE THE FUNDS NECESSARY TO CLOSE ON THE PURCHASE AGREEMENT TO ACQUIRE THE ICO PROPERTY WITH THE STIPULATION IF THE DEVELOPMENT DOES NOT MOVE FORWARD THE EDA WOULD THEN ASSUME THE PURCHASE OF THE ICO PROPERTY UNDER THE SAME TERMS AND CONDITIONS AS PURCHASED BY THE BEARD GROUP, Inc.. Ayes by Chromy, Briggs, Braid, Sheehan- Kerber, and Boucher-Hoese. The motion carried 5-0. 10. ADJOURNMENT. MOTION BY CHROMY and SECOND BY SHEEHAN-KERBER to adjourn the meeting. Motion adopted unanimously. The meeting adjourned at 3:51 p.m. Submitted by: Amanda Schwabe