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Home My WebLink About2020-08-24 EDA Special Meeting PacketAGENDA MAPLEWOOD ECONOMIC DEVELOPMENT AUTHORITY SPECIAL MEETING 6:15 P.M. Monday, August 24, 2020 Held Remotely Via Conference Call Dial 1-888-788-0099 When Prompted Enter Meeting ID: 932 3811 6887 # No Participant ID, Enter # When Prompted A. CALL TO ORDER B. ROLL CALL C. APPROVAL OF AGENDA D. APPROVAL OF MINUTES 1. August 10, 2020 Economic Development Authority Meeting Minutes E. PUBLIC HEARING None F. UNFINISHED BUSINESS None G. NEW BUSINESS 1. Term Sheet with Roers Investments, LLC for Sale of Property at 1946 English Street N H. ADJOURNMENT RULES OF CIVILITY FOR THE CITY COUNCIL, BOARDS, COMMISSIONS AND OUR COMMUNITY Following are rules of civility the City of Maplewood expects of everyone appearing at the Meetings - elected officials, staff and citizens. It is hoped that by following these simple rules, everyone's opinions can be heard and understood in a reasonable manner. We appreciate the fact that when appearing at Council meetings, it is understood that everyone will follow these principles: Speak only for yourself, not for other council members or citizens - unless specifically tasked by your colleagues to speak for the group or for citizens in the form of a petition. Show respect during comments and/or discussions, listen actively and do not interrupt or talk amongst each other. Be respectful of the process, keeping order and decorum. Do not be critical of council members, staff or others in public. Be respectful of each other's time keeping remarks brief, to the point and non -repetitive. THIS PAGE IS INTENTIONALLY LEFT BLANK A. D1 MINUTES MAPLEWOOD ECONOMIC DEVELOPMENT AUTHORITY 6:00 P.M. Monday, August 10, 2020 Held Remotely Via Conference Call CALL TO ORDER A meeting of the Maplewood Economic Development Authority (EDA), was held remotely via conference call and was called to order at 6:04 p.m. by President Knutson. B. ROLL CALL C 7 William Knutson, President Present Bryan Smith, Vice President Present Marylee Abrams Present Kathleen Juenemann Present Sylvia Neblett, Treasurer Present APPROVAL OF AGENDA Commissioner Juenemann moved to approve the agenda as submitted. Seconded by Commissioner Abrams Ayes — All, via roll call The motion passed. APPROVAL OF MINUTES 1. January 13, 2020 Economic Development Authority Meeting Minutes Change Nominated to Nominate through the motions. Commissioner Smith moved to approve the January 13, 2020 Economic Development Authority Meeting Minutes as amended. Seconded by Commissioner Juenemann The motion passed. E. PUBLIC HEARING None F G UNFINISHED BUSINESS None NEW BUSINESS Ayes — All, via roll call 1. Resolution Adopting a Tax Increment Financing Plan for Tax Increment Financing District No. 1-14 August 10, 2020 Maplewood Economic Development Authority 1 EDA Packet Page Number 1 of 11 D1 Assistant Executive Director Thomson gave the staff report. Jason Aarsvold with Ehlers gave the presentation of the TIF Plan. Brittney Finch with Slate answered a question of the EDA. Commissioner Abrams moved to approve the resolution adopting a Tax Increment Financing Plan for Tax Increment Financing District No. 1-14. Resolution 20-08-0001 A RESOLUTION ADOPTING A TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. 1-14 BE IT RESOLVED by the Maplewood Economic Development Authority as follows: Section 1. Recitals. 1.01. The Maplewood Economic Development Authority ("MEDA") has been established by the city of Maplewood (the "City") to promote development and redevelopment within Maplewood. 1.02. Under the terms of the modified enabling resolution adopted by the City on July 22, 2019, MEDA has all the powers and authority of an economic development authority under Minnesota Statutes, sections 469.090 through 469.1081 (the "EDA Act"), a housing and redevelopment authority under Minnesota Statutes, sections 469.001 through 469.047 (the "HRA Act") and of a city under Minnesota Statutes, sections 469.124 through 469.134 (the "City Development Districts Act"). 1.03. MEDA's goals include recognizing the practical impediments to development and redevelopment in areas of the community which are fully developed and offering public assistance for projects which advance its goals. 1.04. In order to promote development and redevelopment of the community, the City previously established Development District No. 1 (the "Development District") and adopted a Development District Program (the "Development Program") for same. 1.05. In response to a redevelopment proposal, MEDA authorized the preparation of a tax increment financing plan (the "TIF Plan") for Tax Increment Financing District No. 1-14 (the "TIF District"), which is contained in a document entitled "Modification to the Development Program for Development District No. 1 and Tax Increment Financing Plan for Tax Increment Financing District No. 1-14", dated August 10, 2020 and on file with MEDA. Section 2. Authority Approval. 2.01. Copies of the modified Development Program and the TIF Plan were transmitted to the board of Independent School District No. 622 and the board of commissioners of Ramsey County for review and comment and said public bodies were notified of the public hearing to be held on the modified Development Program and TIF Plan by the City on August 10, 2020. 2.02. MEDA finds that its objectives of encouraging development and August 10, 2020 2 Maplewood Economic Development Authority EDA Packet Page Number 2 of 11 D1 redevelopment within the designated area of Maplewood will be advanced by adoption of the modified Development Program and the TIF Plan. 2.03. MEDA also finds that the modified Development Program and the TIF Plan are consistent with the City's comprehensive plan. 2.04. The TIF Plan is hereby adopted. Section 3. Further Proceedings. 3.01. MEDA requests that the City hold a public hearing on the modified Development Program and the TIF Plan pursuant to Minnesota Statutes, section 469.175 and recommends that the modified Development Program and TIF Plan be approved by the City. 3.02. Upon approval of the modified Development Program and the TIF Plan by the City, MEDA's executive director is authorized and directed to request that the original tax capacity of the parcels within TIF District No. 1-14 be certified to MEDA by Ramsey County. Seconded by Commissioner Juenemann Ayes — All, via roll call The motion passed. 2. Sale of Property at 1946 English St N a. Intent to Close Meeting (Minn. Stat. §13D.05 Subd. 3(c)) b. Term Sheet with Roers Investments, LLC Commissioner Abrams moved to close the meeting and go into closed session to consider purchase offers or counter offers for property located at 1946 English Street North. Dursuant to Minnesota Statutes Section 13D.05.subd. 3(c). Seconded by Commissioner Juenemann Ayes — All, via roll call The motion passed. President Knutson closed the regular meeting to go into closed session at 6:25 p.m. The following were present during the closed session: President Knutson, Commissioner Abrams, Commissioner Juenemann, Commissioner Neblett, Commissioner Smith, Executive Director Coleman, Assistant City Manager Sable, Assistant Treasurer Paulseth, Assistant Executive Director Thomson, EDA Attorney Batty and IT Director Fowlds. President Knutson open the EDA regular meeting at 6:47 p.m. 3. Call for EDA Meeting on August 24, 2020 Commissioner Abrams moved to call an EDA meeting on August 24, 2020 at 6:00 p.m. Seconded by Commissioner Juenemann Ayes — All, via roll call August 10, 2020 3 Maplewood Economic Development Authority EDA Packet Page Number 3 of 11 D1 The motion passed H. ADJOURMENT President Knutson adjourned the meeting at 6:48 p.m. August 10, 2020 4 Maplewood Economic Development Authority EDA Packet Page Number 4 of 11 G1 MAPLEWOOD ECONOMIC DEVELOPMENT AUTHORITY STAFF REPORT Meeting Date August 24, 2020 REPORT TO: Melinda Coleman, Executive Director REPORT FROM: Jeff Thomson, Assistant Executive Director PRESENTER: Jeff Thomson, Assistant Executive Director AGENDA ITEM: Term Sheet with Roers Investments, LLC for Sale of Property at 1946 English Street N Action Requested: ✓ Motion ❑ Discussion ❑ Public Hearing Form of Action: ❑ Resolution ❑ Ordinance ✓ Contract/Agreement ❑ Proclamation Policy Issue: The City of Maplewood has received a purchase offer for property at 1946 English Street North to facilitate redevelopment of the property. Recommended Action: Motion to approve the term sheet with Roers Investments, LLC for the sale of property at 1946 English Street N. Fiscal Impact: Is There a Fiscal Impact? ✓ No ❑ Yes, the true or estimated cost is N/A Financing source(s): ❑ Adopted Budget ❑ Budget Modification ❑ New Revenue Source ❑ Use of Reserves ✓ Other: The term sheet would not be a binding purchase agreement. The term sheet allows the developer to proceed with its due diligence prior to entering into a purchase agreement with the EDA and submitting development and TIF applications to the city. The term sheet outlines that the developer would pay the EDA $900,000 to purchase the property, which is the same price the city paid for the property in 2019. Strategic Plan Relevance: ✓ Financial Sustainability ❑ Integrated Communication ✓ Targeted Redevelopment ❑ Operational Effectiveness ❑ Community Inclusiveness ✓ Infrastructure & Asset Mgmt. The property was previously the location of the Maplewood Moose Lodge. The city acquired the property in 2019 as part of its land acquisition and assembly strategy to facilitate redevelopment that is consistent with the Gladstone Neighborhood Redevelopment Plan. Since the city purchased the property, the building and site have remained vacant. If the project moves forward with the EDA, the property would be transferred from the city to the EDA to facilitate the sale of the property. EDA Packet Page Number 5 of 11 G1 Background: The developer, Roers Investments, has submitted a term sheet which includes purchasing the former Moose Lodge property at 1946 English Street N. Roers has an agreement with the owner of 1315 Frost Ave to purchase that property which is directly adjacent to the Moose Lodge property. Roers is proposing to construct 161 units of market -rate apartments on the two properties — 1315 Frost and the city -owned property. The proposed building would be five stories in height, with the fifth story over a portion of the building. The remaining part of the building would be four stories. The building would include structured and surface parking. Term Sheet The developer has requested that the city enter into a term sheet which outlines the redevelopment and public financing terms for the former Moose Lodge property. Given the interest in TIF assistance, city staff thinks that the term sheet should be between the EDA and the developer. If the project moves forward, the city would transfer ownership to the EDA to facilitate the sale and redevelopment. A term sheet would allow the developer to continue with their due diligence with a general understanding that the EDA is supportive of the project, sale of the property to the developer, and the use of TIF to support the project. The term sheet is not binding in that it outlines preliminary terms but does not constitute acceptance on either party's part. The EDA would still retain the ability to negotiate the terms of a purchase agreement and determine the tax increment financing needs based on the developer's pro -forma. The city council would also need to review and approve the development application. Attachments: 1. Term Sheet EDA Packet Page Number 6 of 11 G1, Attachment 1 TERM SHEET 1946 Enalish Street Proiect This Term Sheet outlines the redevelopment and public finance terms of a Redevelopment Agreement between the Maplewood Economic Development Authority and Roers Investments LLC. Redeveloper: Roers Investments LLC, a Minnesota limited liability company and its permitted successors and assigns (the "Redeveloper"). Economic Development Authority: Maplewood Economic Development Authority (the "MEDA") City: City of Maplewood, Minnesota. Redevelopment Property: Properties generally located at 1946 English St and 1315 Frost Ave, totaling approximately 2.68 acres. Ramsey County Property ID numbers: 152922230051, 152922230052, 152922230100,152922230106 Purchase: Redeveloper shall purchase the property located at 1946 English St. (PID #'s 152922230051, 152922230052, 152922230100) from the MEDA for the amount of $900,000, with terms to be outlined in a future development/purchase agreement. MEDA will acquire the property at 1946 English St N from the City of Maplewood. Redeveloper shall purchase the property located at 1315 Frost Ave (PID # 152922230106) from a private party. TIF Application Redeveloper shall submit normal and customary Tax Increment Financing application and fees to the MEDA. Creation of TIF District: The MEDA shall create a redevelopment tax increment financing district (the "Redevelopment TIF District") for the Redevelopment Property. The Redevelopment TIF District would include all of the Redevelopment Property. Eligible Costs: Eligible costs will be further set forth in the TIF District documents. It is anticipated that Eligible Costs would include costs eligible for payment with tax increment under the Tax Increment Act, such as the Site Improvements and the Public Improvements EDA Packet Page Number 7 of 11 G1, Attachment 1 Minimum Improvements: The Redeveloper will construct or cause to be constructed the following Minimum Improvements to the Redevelopment Property. The number of units shown below are estimates and subject to change as necessary to comply with City Council and Planning Commission requirements. The Minimum Improvements are further described as follows: • Market Rate Rental: Approximately 161 Market Rate Rental units with structured and surface parking. Construction Schedule: It is anticipated that construction will commence by May 1, 2021, and that construction of the Minimum Improvements, Site Improvements and the Public Improvements will be completed by December 31, 2022. Tax Increment: Tax Increment shall mean the Tax Increment generated by Redevelopment Property remitted by the County to the City/Authority in accordance with the Tax Increment Act. Available Tax Increment: Available Tax Increment shall mean 90% of the Tax Increment. Tax Increment Note: The Tax Increment Note (the "Note") issued to the Redeveloper upon completion of the Minimum Improvements shall have the following terms: • Principal amount shall be the amount of the Eligible Costs. • Interest rate shall be four and a half percent (4.5%). Interest shall commence on the date the Note is issued. • The Authority will not issue Tax Increment Revenue Bonds to prepay the Note. • The Authority shall pledge the Available Tax Increment for payment of the Note. Public Improvements: The Redeveloper will construct and pay for the following Public Improvements in accordance with City specifications and subject to approval by the City engineer. Upon completion of the Public Improvements in compliance with City specifications and acceptance by the City, the Public Improvements will become public property. 2 EDA Packet Page Number 8 of 11 G1, Attachment 1 • Utility relocation • Burial of electricity, cable, telephone, natural gas • Sanitary sewer • Water mains and stubs • City streets, curbs and gutters • Public trails, sidewalks and other public pedestrian improvements pursuant to City approved site plans • Storm sewers and storm water system elements (ponds, pipes, infiltration system, and/or similar improvements) Site Improvements: Redeveloper will construct and pay for all expenses associated with the completion of the Site Improvements, including: • Costs of Acquisition of the Redevelopment Property (to be further defined in the Redevelopment Contract) • Environmental remediation • Site clearance • Landscaping and screening according to City -approved landscape plans • Trails and other pedestrian improvements pursuant to City -approved site plans (if such improvements are privately owned; if public, they will be treated as Public Improvements) • Grading and import/export of soil in accordance with City - approved grading plans • Retaining walls and fences • Private streets, including curb and gutter • Park improvements, according to any City requirements • Storm sewers and storm water system elements (ponds, pipes, infiltration system) Government Approvals: The Redeveloper will use its best efforts to obtain all necessary government approvals. Zoning and Land Use Approvals/Easements: Normal and customary site and building plan review requirements will be followed. The Redeveloper will pay for rezoning, subdivision, platting, plat amendment, PUD and preparation of restrictive covenants, easements, reciprocal easements, and any other documentation necessary for the construction of the Minimum Improvements. The Redeveloper will be responsible for obtaining all land use and zoning approvals. 3 EDA Packet Page Number 9 of 11 G1, Attachment 1 Business Subsidy Act: Except for reporting requirements, the Project is exempt from the application of the Business Subsidy Act. Prohibition on Tax Exemption: Once acquired by the Redeveloper, the Redevelopment Property and Minimum Improvements will not become exempt from ad valorem property taxes until termination of the TIF District. This covenant will be contained in a declaration of restrictive covenants to be signed by the Developer and the Authority and recorded against the Redevelopment Property. Duration: This Term Sheet shall expire the earlier of (i) the Redeveloper and the Authority executing a Redevelopment Agreement, or (ii) December 31, 2020. Effect of Term Sheet: This Term Sheet outlines the terms under which the parties are willing to enter into a Redevelopment Agreement, but does not constitute an offer or acceptance on either party's part. All rights and obligations with respect to the Redevelopment Property will only be as provided for in a Redevelopment Agreement approved by the MEDA and the Redeveloper. 0 EDA Packet Page Number 10 of 11 G1, Attachment 1 Dated: 20 MAPLEWOOD ECONOMIC DEVELOPMENT AUTHORITY By Its President By Its Executive Director Dated: , 20 ROERS INVESTMENTS LLC A Minnesota limited liability company LIM 4824-0309-6752, v. 3 Its EDA Packet Page Number 11 of 11