HomeMy WebLinkAbout02-11-10 Agenda NotesAGENDA NOTES FOR FEBRUARY 1 1, 2010
BILLS
Ehlers 245.00
MnNAHRO 15 7.5 0
Financial Seminar - Hinzman
Membership
BUSINESS
A. Dennis Mann Property - 23xx Vermillion Street (at 23rd St.)add this
The Dennis Mann property has been for sale for some time; however it
appears he may be eager to sell. The 0.83 acre vacant parcel is located on
the east side of Vermillion Street between Gahnz Furniture and State Farm
Insurance (please see attached location map).
The property is adjacent to the 23rd and Vermillion Street intersection.
Extension of 23rd Street east of Vermillion and creation of backage roads
for business access has been part of the City's long range plan. The
Vermillion Corridor Development Guidelines identified the intersection
for a future traffic light. In 2009 the SEH conducted a study of the
intersection to determine if it met warrants for signalization. The study
found it currently did not; however future commercial development could
trigger warrant for a new light.
Staff will provide more information on the price of the property at the
meeting.
Direction: consider whether to pursue acquisition of the Mann Property or
whether additional information is needed.
B. Bob Melson Loan Agreement
The residential rehab loan for 413 W. Second St. is $4,637.72 in arrears.
The total loan balance was $14,541 at year end. Staff is meeting with the
owner on February 4th. If an agreement on a new schedule of payments,
that the owner is able to make, can be agreed upon, it will be proposed to
the board for discussion and possible approval.
REPORTS
A. Hudson Manufacturing
David Osberg and Paul Hicks met with Hudson representatives on
February 3rd to discuss an outline for the potential purchase of Hudson and
relocation to the vacant Intek building on 10th Street. Further details will
be provided at the meeting.
Ehlers and Associates have developed a preliminary TIF proj ection to
fund the possible acquisition of Hudson based upon redevelopment
potential of the property. Ehlers estimates a net yield of TIF revenue at
$45,000 per year, increasing to $85,000 annually with 2% inflation over
25 years. Ehlers assumes the City would issue a three year (could be
longer) temporary G.O. TIF Bond to fund acquisition. After resale of the
Hudson property, the remaining debt would be retired with a long term
permanent G.O. TIF Bond. Please see the attached Ehlers cash flows for
further information. This approach eases the immediate impact of costs on
the EDRA budget.
The City has contacted Liesch Associates to provide preliminary
environmental due diligence and demolition costs. Liesch estimates the
cost of conducting a phase I and II environmental site assessments, pre-
demolition survey, pre-renovation survey, and demolition at $334,000 -
$507,000. Please see attached letter for more information.
The Dakota County CDA is scheduled to authorize our $250,000 Hudson
grant at their February 9th meeting.
B. Red Rock Station Area Study.
The Red Rock Project Management Team is scheduled to meet on
February 3rd to discuss the recent breakfast event, and the upcoming kick-
offlpressevent scheduled for 8:45 am on February 8th at the State Office
Building Press Room. Analysis of transit oriented development
framework will also be discussed. Staff will provide further information
at the meeting.
C. Marketing Focus Group.
Several small business owners from around town have been contacted and
asked if they would be willing to j oin us to discuss what kind of marketing
efforts they might currently be doing and to try an d determine how the EDRA
can assist them in drawing new customers, particularly with of the bridge
construction expect to start this fall and be in full swing by 2011. These
businesses include,
Barb Hollenbeck (Second Childhood)
Mark Vetvick (Country Inn and Suites)
Christine Schaffer (Hastings Gift, Garden and Floral)
Leslie Nielsen (Meloy Park Florist)
Ron Martino (Mississippi Clayworks)
Karen Jung (Emporium)
Kevin Hoeschen (DBA)
Nicole ... (owner of Nu Wave Hair - Westview mall)
Jackie Eischen's (Eischen's Cabinets)
Michelle Jacobs (chamber of Commerce)
Karen Spicer (Board of Tourism)
If there are others you think we should include, please let me know and I will
invite them as well. We are looking to set up the first meeting the week of
February 15tH
D. Planning and Development Annual Report
Please find a copy of the Planning and Development Annual Report attached.
John Hinzman will provide a brief summary at the meeting.