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07-26-05 SPEC MTGA special meeting of the Hopkins City Council was held on July 26, 2005, in the • Council Chambers of the Hopkins City Hall. Present were Mayor Maxwell and Council Members Brausen, Thompson, Johnson, and Rowan. Also, present were staff members Getschow, Kerrigan, and City Attorney Jerry Steiner. CALL TO ORDER Mayor Maxwell called the meeting to order at 5:06 p.m. VII. OLD BUSINESS 1. TIF District 1-3 (CR 2005-095) City staff has been working with GPS Development, LLC and The Cornerstone Group to facilitate mixed-use residential/retail projects on the property between 5th and Stn Aves, north of Mainstreet and south of 1St St N. To facilitate these projects, staff is proposing that this property be placed in a tax increment district. Public hearings were held on this action on June 21St and July 19th. The public hearing on July 19th was closed and this item was continued to this meeting. The proposed district would be a redevelopment TIF district. A property inspection report was prepared by LHB. The inspection found that the subject area meets statutory qualifications for this type of district. The establishment of the district does not obligate the City or HRA to provide tax increment assistance. The Zoning and Planning Commission adopted a resolution on May 31, 2005 that finds that the proposed district is in conformance with the Comprehensive Plan. The City Council will also need to meet as the HRA and take action on this item. A special HRA meeting is scheduled for July 26, 2005, at 6:15 p.m. Michael Fischer, LHB, reviewed the report from LHB and explained how the determinations were arrived at in the report. Mr. Fischer responded to the letter from Brad Gunn and explained how code and ADA costs were determined. Sid Inman, Ehlers and Associates, reviewed the letter from Brad Gunn addressed to Bob Lindahl in regards to the development and financial information and answered questions that were brought up in the letter. Bob Lindahl, Kennedy and Gravin, responded to the letters that were submitted by Brad Gunn and reviewed the public gain that would result from the project. Mr. July 26, 2005 Special City Council Meeting Page 1 Lindahl also explained the statutory requirements of code and ADA cost analysis and reviewed the elements of the resolution. Council Member Johnson asked for clarification on page A-5, paragraph (i), lines three and four of the resolution. The resolution states that there are 24 parcels and the reports state that there are 23 parcels. Mr. Lindahl stated that there are 23 parcels and that the motion should reflect that change. Brad Gunn, attorney for Hopkins Park Plaza, voiced objections to the creation of a TIF district and the use of TIF funds for the project. Mr. Gunn once again stated that they are prepared to do a comparable project without the use of TIF funds. David Kirkman, attorney for GPS, came forward and stated that in a meeting with Spyder Development, Mr. Susse of Spyder development stated that they would operate the current business for three to four years and that it is possible that they would also need TIF funds to complete their project of constructing assisted living units. Mr. Kerrigan stated that Appendix A had been placed on the Council's table and should be included in the resolution, and that the motion should reflect that. Members of the Council thanked the consultants for an excellent job of presenting the reports and thanked Mr. Gunn for taking his time to give his input. Council Member Johnson moved and Council Member Brausen seconded a motion to adopt Resolution 2005-055, modifying the redevelopment plan for Redevelopment Project 1 and establishing Tax Increment District 1-3 therein and adopting a tax increment financing plan therefore, subject to HRA approval of HRA Resolution 430 with the changes made to paragraph (i) on page A-5 of the resolution and with the inclusion of Appendix A. A poll of the vote was as follows: Council Member Brausen, aye; Council Member Thompson, aye; Council Member Rowan, aye; Council Member Johnson, aye; Mayor Maxwell, aye. The motion carried unanimously. 2. Approve Development Agreement, Block 64 Project (CR2005-101) GPS Development is planning to undertake amixed-use redevelopment project on the block bounded by Stn and 6"' Aves N, north of Mainstreet and south of 1St St N (Block 64). The project would involve the construction of approximately 220 Condominium units and 6,800 square feet of retail space. GPS is requesting tax increment assistance to make the project financially feasible. Action taken would approve execution of a development agreement with GPS Development, LLC and the execution of a tax increment revenue note. The Development agreement details the responsibilities of both the City/HRA and the developer.. The agreement was prepared by Bob Deike of Bradley and Deike and addresses the following: scope of work, parameters of TIF assistance, timing for July 26, 2005 Special City Council Meeting Page 2 completion of actions to facilitate the project, default provisions, and specific requirements to be satisfied by GPS Development before the City would utilize its eminent domain authority to acquire property not secured through a negotiated purchase. Bob Deike reviewed the changes that have taken place in the agreement since the Council last reviewed it. The changes address relocation and displacement costs. Council Member Thompson moved and Council Member Rowan seconded a motion to approve the contract for private redevelopment between GPS Development, LLC and the Housing and Redevelopment Authority In and For the City of Hopkins. A poll of the vote was as follows: Council Member Brausen, aye; Council Member Thompson, aye; Council Member Rowan, aye; Council Member Johnson, aye; Mayor Maxwell, aye. The motion carried unanimously. VIII. ADJOURNMENT There being no further businESS, Council Member Johnson moved and Council Member Brausen seconded a motion to adjourn the meeting. The meeting was adjourned by unanimous consent at 7:15 p.m. Respectfully Submitted, erry O rmaier, City Clerk ATTEST: Eugene wel , Mayor • July 26, 2005 Special City Council Meeting Page 3