Agenda - Economic Development Authority - 01/14/2001 - Memo

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MEMO DATE: 1/14/02 TO: Economic Development Authority (EDA) FROM: James E. Norman, City Administrator RE: Staff Updates St. Paul Terminal/IRT: Negotiations with St. Paul Terminal/IRT in regards to the plans for construction of a new facility have stalled. Staff had previously requested drawings of the proposed project which are needed to move forward to the next step of negotiations which is to determine whether the City is able to provide some financial assistance to the project. The drawings requested have not been presented to the City to date. The condition of the ownership of the property is also limiting the ability to move forward in the negotiation process. Staff will continue to pursue negotiations that will facilitate quality development on this site and will keep the EDA informed as to the progress of the proposed project that has been proposed by IRT. Morrell Trucking/Chies Property: Staff has learned of grant monies available through the Municipal CDBG Program provided by Anoka County to be used for acquisition of blighted properties. As earlier indicated by the EDA, Staff was given direction to negotiate the acquisition of the Chies and Morrell properties to promote quality economic growth in this area of the City. City Council has directed staff to apply for the grant monies available. The grant is a competitive grant and has certain job creation requirements that require one job to be created for every $35,000 of grant money awarded. These guidelines are similar to the guidelines set forth previously by the City Council. Negotiations with both the Chies and Morrell properties have progressed and Staff is close to agreeing on a fair market value price for the properties. Aberrations from the fair market value can be compensated by the grant money which gives the City more room to maneuver when it comes to getting closer to closing the negotiates with the two aforementioned properties. Darkenwald: As stated in a previous case, the Darkenwald project is proceeding without any TIF assistance from the City. The project area will only include property owned by Mr. Darkenwald and his associate. On January 3, 2001, the Planning Commission reviewed and approved the proposed sketch plan to subdivide two parcels and two outlots. Lot 1 will be utilized for the development of a new Ramsey business MinnDak. The Planning Commission will be reviewing the