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HomeMy WebLinkAbout1981 04-22 Toyota gets financing THE REVIEW Minnesota °- Single Copy 30` WED.,APRIL 22, 1981 Toyota gets financing Whenever Ron McDaniels comes before McDaniels,who resides in Bloomington. Don Christianson,111 E.County Road a governmental body regarding his By approving the financing request,the C,president of the association,told the proposed Maplewood Toyota dealership, city has extended its tax-exempt status to city council, "I think giving him he seems to lock horns with his neighbors. BKM Management Company.This should (McDaniels)this type of financing will set His appearance at the Maplewood City make it easier for the business to borrow a bad precedent. Council on March 16 was no exception. up to$900,000 from a bank. "I think it's a little late for him to be That evening his business, BKM BKM Management Company will have coming in here and asking for a tax- Management Company, requested and to pay interest on the money it borrows exempt revenue note. He has already received preliminary approval from the along with city property taxes and utility started construction. Pretty soon council members for mortgage revenue and building permit fees for the auto businesses will be all done with their note financing totaling$900,000. dealership. construction and then they will come in He got the tax-exempt financing okay However,the bank will not pay any here for free goodies." despite the objections of members of the state and federal taxes on the money.This Ground breaking ceremonies for the Kohlman-Gervais-Keller Lakes allows the bank to sell bonds to cover the project were Feb. 18. Preliminary Improvement Association,who live near amount borrowed by BKM at an interest grading for the project had been com- the proposed foreign car dealership.The rate that is lower than the current com- pleted before the hearing was conducted. city council voted 3-2 to grant the mercial market rate. City Manager Barry Evans explained to preliminary approval. Members of the lakes improvement the audience that a business is eligible for For the past three and a half years, association contended that the purpose of this type of financing for new construction McDaniels has been wanting to build the this type of financing is to attract new if no more than 10 percent of the building dealership on his nearly four acres of land businesses to the city and to help small is completed. at the intersection of Beam Avenue and businesses get started. They stated Councilman Gary Bastian said,"There Highway 6l in northern Maplewood.The McDaniels and his proposed Toyota are several bills in the Legislature now property is just east of Kohlman Lake and dealership did not meet this criteria. regarding revenue note financing.Many adjacent to a residential neighborhood Marilyn Vars, 1140 Beam Ave., senators and representatives believe the along Beam. secretary of the association, said, issuing of revenue notes by cities is being The project was delayed primarily "Toyota for almost three years has had a misused,like for the Viking facility and a because of three lawsuits filed regarding commitment to that land and develop- road near a shopping center in Burnsville. the wetland status of the property. ment.If one of the criteria of this type of If passed,these bills may have an impact McDaniels won all three cases. financing is to bring new development to on whether or not the notes are issued in McDaniels told the city council Maplewood, then this request does not the future. members that he needed the revenue note hold water. "However," Bastian continued, "we financing because he was unable to "There are vacant car dealerships on have a criteria established on approving secure any other type of loan."Three and Highway 61 that McDaniels could use as revenue notes. Our decision has to be a half years ago we had our own finan- alternate sites. They are already con- based on that criteria." cing.Because of the delays in getting this structed.l urge you to deny this financing Councilman Norm Anderson respon- thing going,we absolutely lost it,"stated application,"Vars said. Continued on page 2 Page 2A Wed., April 22, 1981 THE REVIEW Toyota Continued from page 1 he was with past legislative abuses that have taken place regarding this project. ded, "What bothers me is that they ap- Voting against the financing were plied for this financing after they started. Anderson and Councilwoman Fran Juker. If they had applied prior to beginning the McDaniels will now be proceeding with construction work, that would be dif- the construction of a 17,000 square foot ferent." building containing offices, showroom, Mayor John Greavu told Anderson, parts and service department, and a 250 "Toyota had its financing three years ago vehicle parking lot. and lost it. Now without this type of Vars urged the city council to pursue financing they can't go any further." the establishment of a wetlands and "I agree,"Anderson said,"But we need shoreland ordinance in Maplewood."This to establish better guidelines to control would protect these areas," she stated. these things." The city manager said the city staff is "He has met our criteria. I don't know drafting such an ordinance. what else we can do but approve his In other action, the city council: request,"stated Councilman Earl Nelson, —approved the vacation of a portion of who made a motion to grant the financing Cypress Street right-of-way and tabled a application. preliminary plat for Carsgrove's Bastian concluded the 'discussion by Meadows. saying,Beam Avenue west of Highway 61 —passed the second reading of the has been a"source of irritation since I've maximum garage area code amendment. been on the council. I don't know if this —granted a special exception permit (the proposed automobile dealership) is renewal for a paperback book exchange the best use of the land. business at 1997 White Bear Ave. "I'm concerned about the water quality --accepted a contract with Union Local of Kohlman Lake,but he(McDaniels) has No.320,which represents the Maplewood put forth some convincing arguments on police patrolmen.The contract is for 1981- paper that the water won't be harmed." 82 and-includes a 10 percent wage in- Bastian said he was not quite as crease the first year and a nine percent bothered that construction had started as raise the next year.