Minutes
of the
Regular Meeting of the
Detroit Lakes Development Authority
Tuesday, July 7th, 2009
4:30 PM
City Administration Building
Conference Room
MEMBERS PRESENT: Mark Hagen, Dennis Winskowski, Bruce Imholte, Mary Beth Gilsdorf, Tom Klyve
MEMBERS ABSENT: Greg Hildenbrand, Jim Anderson
OTHERS PRESENT: Robert Louiseau, Larry Remmen, Nancy Wichmann,
Mitch Wimmer, Matt Wimmer, Drew Olson, Barb Halbakken, Diane Reff, Pippi Mayfield, Jake Judd, Carol McCarthy
I. CALL TO ORDER:
In the absence of Chairman Jim Anderson, Vice Chairman Mark Hagen called the meeting of the Detroit Lakes Development Authority to order at 4:30 PM in the Conference Room of the City Administration Building, 1025 Roosevelt Avenue on Tuesday, July 7, 2009. All members of the Authority have been duly notified of the meeting and the business to be transacted.
II. MINUTES:
A motion was made by Commissioner Dennis Winskowski seconded by Commissioner Tom Klyve and carried unanimously to approve the minutes of the regular meeting held June 2, 2009.
III. FINANCIALS:
A
motion was made by Commissioner Mary Beth Gilsdorf, seconded by Commissioner
Bruce Imholte and carried unanimously to approve the financial report and
payment of
claims through May 31,
2009.
IV. OLD BUSINESS:
A. None
V. NEW BUSINESS:
A. Consideration to the request for Tax Increment Financing for the Waterfront Development at Washington Avenue and West Lake Drive (Modev, Inc.)
Larry Remmen reported
that Drew Olson was present to answer any questions and review the plan changes
for the Detroit Lakes Waterfront LLC. Condominiums have
been added to the main floor with the commercial space shrinking. The
tax increment financing will support up to $1,181,300 on a pay as you go basis
over a 25 year period.
The
Authority reviewed the Development Agreement drafted between the Detroit Lakes
Development Authority and Detroit Lakes Waterfront LLC. After discussion, he
following items were
agreed upon for the Development Agreement.
ITEMS TO CONSIDER FOR A DEVELOPMENT AGREEMENT
BETWEEN THE DETROIT LAKES DEVELOPMENT AUTHORITY AND
DETROIT LAKES WATERFRONT LLC, THE DEVELOPER
The
Detroit Lakes Development Authority is willing to provide up to the maximum
available tax increment financing for the Detroit Lakes Waterfront Development,
subject to the Developer agreeing to the following:
1) The Developer will obtain approval for a planned unit development on this site;
2) The Developer will grant the City the road right of way which the City desires on the north end of this property;
3) The Developer agrees to construct and maintain at least 10,000 square feet of retail space in the facility;
4) The Developer agrees to construct up to 27 condominium units as approved by the City Council (estimated 5,100 square feet of residential development);
5) The Developer agrees to utilize high quality materials for the construction and agrees to allow the Development Authority to have final design approval;
6) Development cost not including land acquisition must exceed $8 million dollars;
7) The Developer will obtain a Pelican River Watershed District Permit dealing with all of the storm water run-off from their site;
8) The Developer will find ways to provide additional parking if more than 2500 square feet of the retail space is used for restaurant or food service;
9) If
the project is not completed, the Developer will reimburse the City for any
legal and professional fees associated with establishing the TIF District in an
amount not
to exceed $8,000;
10) The Developer provides the bank commitment for financing of the project;
11) TIF pay as you go to cover eligible TIF expenses, including interest as certified by the Developer (documented);
12) The Developer pre-lease or sell at least 50% of the commercial space prior to the start of construction;
Drew
Olson was present to answer questions, and reported that he estimated the
construction cost to be approximately 8 million dollars and would like to start
on the
project this fall.
Larry Remmen outlined the steps and actions that need to be taken to move the project forward.
1) Briggs and Morgan’s attorneys will draft a plan and agreement for tax increment financing;
2) The Development Authority will act on the Development Agreement and tax increment financing at their September 1st meeting;
3) The City Council will meet on September 8th
4) The Planning Commission will meet on the conversion of a resort and
other commercial property into a commercial/residential planned unit
development
at their July 23rd meeting;
5) The Planning Commission will consider the PUD at their August 27th meeting or at their September 24th meeting if the application is not complete for the August deadline.
A
motion was made by Commissioner Dennis Winskowski, seconded by Commissioner
Marty Beth Gilsdorf and carried unanimously to authorize staff to proceed with
the tax
increment financing application and approve and accept changes to the
Development Agreement between the DLDA and the Detroit Lakes Waterfront, LLC
with changes to number 4, 6 and 12 as listed above. Commissioner Bruce Imholte
abstained from the vote.
B. Consideration to the request of the Becker County EDA to dissolve the cooperative agreement on the Ray J. Anderson property
As discussed at the
previous meeting, the Becker County EDA would like to dissolve their agreement
for their participation in Ray J. Anderson property. The cost to
terminate the agreement is $54,471. A motion was made by Commissioner
Bruce Imholte, seconded by Commissioner Mary Beth Gilsdorf and carried
unanimously to approve
the dissolution of
agreement with the Becker County EDA relative to the Ray J. Anderson property
for $54,471.
C. Consideration to the request of the Pelican River Watershed District for easements relative to the Rice Lake Project
Larry Remmen reported that the Pelican River Watershed District is looking for a
couple of easements from the DLDA (North Industrial Park) for flowage and access
easements relative to the Rice Lake Project. A motion was made
by Commissioner Bruce Imholte, seconded by Commissioner Tom Klyve and carried
unanimously to approve
the easements as requested by
the Pelican River Watershed District.
D. Discuss the Land Sale Agreement relative to the Public Utilities warehouse
Larry Remmen reported
that the City Council and Public Utilities would like the Development Authority
to market the sale of the Public Utilities warehouse. The intent is to
use funds generated from
the property sale for cold storage for the Police Department with remaining
funds to be used for the development of a Public Works facility. The
Authority discussed the many
options of how to sell the building. A motion was made by Commissioner Mary
Beth Gilsdorf, seconded by Commissioner Bruce Imholte, and
carried unanimously to accept
the responsibility of marketing and selling the Public Utilities warehouse
with further discussion at a later date to determine how to market the
property and building.
VI. Adjournment
There being no further business to bring before the Board, the meeting was adjourned.
Signed
Larry
Remmen
Community Development Director