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HomeMy WebLinkAbout1985 10-17 EBFMMINUTES OF THE OCTOBER 17, 1985 • EARLE BROWN FARM COMMITTEE MEETING CALL TO ORDER Dr. Orn called the Earle Brown Farm Committee meeting to order at 7:40 a.m. ROLL CALL Dr. Orn, Ron Christensen, Donald Peterson, Leone Howe, Sylvia Kenney, Gil Engdahl, and Warren Lindquist. Also present were City Manager Gerald Splinter, Director of Public Works Sy Knapp, Administrative Assistant Brad Hoffman and Clerk Patti Page. APPROVAL OF MINUTES - 9-26-85 AND 10-3-85 There was a motion by Gil Engdahl and seconded by Ron Christensen to approve the minutes of the September 26, 1985 meeting as submitted. The motion passed. There was a motion by Ron Christensen and seconded by Don Peterson to approve the minutes of the October 3, 1985 meeting as submitted. The motion passed. Dr. Orn briefly reviewed what was covered in the last meeting. DISCUSSION City Manager Splinter stated that staff has met with Ryan and Springsted. He noted that Ryan would like to build in two phases, the first phase being about 120,000 square feet and the second phase approximately 1509000 square feet. City Manager Splinter added that unless Ryan can build the first phase completely on his own property the City is not ready to make a deal with him. • City Manager Splinter stated that Spingsted had run two scenarios for bonding. After reviewing them, the maximum amount of bonds that Springsted can recommend with only the Target development is $5.25 million which is approximately $1.5 million less than staff had originally been talking about. He noted that it would be possible for the City to bond again to finish the project or use the cash flow from the development. City Manager Splinter added that staff does not want to recommend bonding for an amount more than the revenue we are anticipating. City Manager Splinter stated that Ryan is interested in maximizing his development and using whatever land he can get from us. Dr. Orn asked how high the buildings were that Ryan is proposing. City Manager Splinter stated that they were 6 and 8 storey buildings. Dr. Orn asked why Ryan couldn't build just one tall building. Administrative Assistant Hoffman stated that staff is not prepared to settle on that. Ryan is willing to build a first phase and wait for traffic figures before building a second phase. Administrative Assistant Hoffman stated that our bonding capacity only includes the Target development, if Ryan were to come in we could possible go for more money. Leone Howe asked why Ryan feels the City should give him property. Administrative Assistant Hoffman stated under certain circumstances, it is to both our advantages to provide the land in accordance with the terms previously discussed with the Committee and the Council. • Administrtive Assitant Hoffman then reviewed the letter and tables from Springsted Inc. 10-17-85 -1- The question was asked if the buildings can stand another winter without repair. City Manager Splinter stated that the City will be doing some improvements such as . roofing the houses. Leone Howe asked what the Public Hearing was that was referred to in the October 3, 1985 minutes. Dr. Orn explained that Phil Cohen was asking the Council to hold a public hearing before funds are spent on rehabing the Red Buildings. Ron Warren arrived at 8:10 a.m. Dr. Orn asked what the items were that the extra $1.5 to $2 million would not cover. City Manager Splinter explained that the endowment and some of the City expenses would not be covered with the lesser bond issue. Administrative Assitant Hoffman added that some of the items may be covered but not as fully as the City had wanted. City Manager Splinter also stated that if the costs for some items were less than the City had expected we would have surplus funds for something else. He noted that the $5.2 million will most likely cover 80% to 90% of the costs. Administrative Assitant Hoffman stated that the Structural Analysis should be complete by the end of the month. Administrative Assitant Hoffman stated that the City feels Ryan would have to come in and agree to build only on his property before any IDB's would be issued to him. The question was raised as to whether the City would change its mind regarding the amount of the bond issue if Ryan's position changed. City Manager Splinter stated that there would not be enough time to change our mind now. • Dr. Orn asked if the $5.2 million is better than the $7 million in bonding money. City Manger Splinter stated that $7 million would be the best amount but the City is more comfortable with $5.2 million because of the unknowns. City Manager Splinter added that the City still has two proposals available for next year, those being the Beisner retail and Beisner residential. Administrative Assistant Hoffman stated that since acquisition of the farm $680,000 has been received from CDBG monies. Mary Jane Gustafson asked whether the City expects any CDBG money next year. City Manager Splinter replied affirmatively. Gil Engdahl asked whether Gustafson has been paid yet. City Manager Splinter stated that the land belongs to the City clear of all back taxes and special assessments. Ron Christensen made a motion to recommend to the Council that the City issue bonds in the amount of $5.2 million for the Earle Brown Farm project. The motion was seconded by Don Peterson and passed unanimously. Mary Jane Gustafson asked what the status of Texas Air was. City Manager Splinter stated that the Council would like to purchase the Texas Air property. Administrative Assistant Hoffman noted that the offer from Texas Air of $800,000 is a good offer but that it will most likely good for a lower amount. Dr. Orn asked how large the second parcel was and if the City would ever be interested in picking up the 2nd parcel. Administrative Assitant Hoffman noted that there is approximately 4.5 acres of land in the second parcel and that would be enough land 0 for someone to develop. He added that Texas Air wanted $1,150,000 for both lots. 10-17-85 -2- CORRECTION Leone Howe asked what the City expects from the consultants concerning the use of the Red Buildings. Administrative Assistant Hoffman stated that specifically the City is looking for answers regarding the barn and Hippodrome. The consultants should address what kinds of amenities, what types of services, what the drawing area is (i.e. Brooklyn Park, Osseo, Crystal, N.E.), who is the City's competition and who would be interested in leasing space. Once the City has these answers we can go to an architect and have them help design the space. Administrative Assitant Hoffman noted that the consultants will be interviewed on Monday. He further added that Warren Lindquist, Leone Howe, Sy Knapp, Jim Moffet from Health Central and himself will be on the interview board. Gil Engdahl asked how the committee will know when it nas reached its goal. Don Peterson asked if the leasing of the new building (First Western Bank Bldg.) has any determination on when Ryan will build next building. City Manager Splinter stated that he was sure that would have something to do with it. Administrative Assistant Hoffman noted that if Ryan doesn't work with the City he will most likely build in a couple of years. ADJOURNMENT There was a motion by Don Peterson and seconded by Leone Howe to adjourn the meeting. The motion passed. The meeting adjourned at 8:40 a.m. 0 0 10-17-85 -3-