1988-02-12 CC SpecialCITY OF ALBERTVILLE
P. O. BOX 131
ALBERTVILLE, MINNESOTA 55301
PHONE: (612) 497-3384
SPECIAL COUNCIL MEETING
FEBRUARY 12, 1988
A special work meeting of the Council was held on February 12, 1988. Persons
present included: Mayor Loretta Roden, Council members Gary Schwenzfeier,
Donatus Vetsch and Bob Braun; staff people Maureen Andrews, Thore Meyer,
Brad Farnham, Bob Miller; Jim Williquette, representing the developer; and
Jim LuShine, of the Department of Trade and Economic Development. The purpose
of the meeting was to discuss the possibility of the City of Albertville
being involved with the development of a 1,500 to 2,500 acre industrial
park.
Mr. LuShine explained that the State had been contacted by a firm, LONGEVITY
CITY USA, INC., located in Illinois, who was interested in developing an
air industrial park in the state of Minnesota. The Department of Trade
and Economic Development's invlovement is looking for options which create
new Minnesota based jobs.
Mr. LuShine went on to explain that they had been given a set of criteria
from the firm that needed to be met. These criteria included:
* There would need to be enough land to develop a park with between
1,500 to 2,500 acres.
* The land needed to be located close to a metropolitan area.
* The land needed to have easy access to major highway systems.
* The land would need to be readily accessable to municipal services.
The State then went back to the developer with the following major areas:
Minneapolis/ St. Paul, St. Cloud, Mankato and Rochester. It was the developers
wish the search for the land focus on the Minneapolis/St. Paul area.
The Department of Trade and Economic Development then began to look at land
that met the criteria listed above. Mr. LuShine explained why certain areas
were ruled out from consideration and why Albertville had been determined
to be a good canidate.
SOUTHERN SUBURBS - (LAKEVILLE, FARMINGTON, ETC.) -- This area was
determined not to be feasible because of the competition with the
Airlake Industrial Park in Lakeville.
SOUTHWESTERN SUBURBS - (SHAKOPEE, CHASKA, ETC.) -- This area was
determined not appropriate for development because of present traffic
constraints and limited land access due to the current development
.� presently occuring in the areas.
Make our City ........ Your City
We invite Home, Industry. Business
SPECIAL COUNCIL MEETING
PAGE 2
EAST SIDE SUBURBS - (WHITE BEAR LAKE, EAST ST. PAUL, MAPLEWOOD,
ETC.) -- This area did not meet the criteria set forth by the developer
so it was not considered.
NORTHWEST CORRIDOR - (ELK RIVER, MONTICELLO, ALBERTVILE, ETC.)
This area was determined to be the most feasible to be looked at
for the development because the area best matched the criterias
set forth earlier in the discussion.
Once the area had been determined, the State picked two possible sites,
one which included the area around Albertville, St. Michael and Monticello.
The second one was located near Elk River. It was later determined that
Albertville best suited the needs of the developers.
Mr. LuShine stated that the Department of Trade and Economic Development
had not contacted any other communities and wouldn't provided the City of
Albertville is interested in participating in attacking the firm to the
area.
Issues discussed included:
- Financing of a project of this magnitude.
- The need for establishing improvement districts, and getting the
necessary options on required land.
- Mr. LuShine pointed out that it is important that the land being
discussed be under the City's jurisdiction.
It was asked if the State would be invloved with the development
of the air strip. The answer to this question was that the air
strip would be developed using private money. There was some discussion
about the fact that sometime in the future the Metropolitan Air
Commission (MAC) may get involved with the air strip but that would
not likely be for another ten years (at a minimum).
- The issue was raised regarding the fact that some type of agreement
would need to be developed in order that annexation could occur.
- Mr. LuShine was asked if the City of Albertville was competing with
the other cities mentioned through an open bidding process. Again
the Council was assured that Albertville was the only city submitted
to the developer.
- It was pointed out that any delays will force the State to look
at other areas so that the project is not lost.
- A member of the Council asked Jim Williquette if the availability
of rail lines was important to the location of the project. Mr.
Williquette stated the project could be done without rail access.
The group then discussed what type of land was currently available within
the City limits for this project and what was the likelyhood of Otsego
Township participating in the venture. It was estimated that the City has
approximately 300 acres within its corporate boundaries that would likely
be the site of the industrial park, and that the remaining portion would
have to come from Otsego Township. (This is assuming that the developers
will need the total 2,500 + acres in some type of contiguous layout).
Mr. Williquette and Mr. LuShine were asked if the developers have done any
work in the State of Minnesota prior to this proposal and whether or not
they were familiar with Minnesota law regarding tax increment financing
and the provisions for condemnation and quick -take provisions. The city
SPECIAL COUNCIL MEETING
PAGE 3
was informed that the developers have not worked in Minnesota prior to this
proposal, but are currently involved with a project in California whose
tax increment laws are similiar to Minnesota's.
There was discussion regarding the State's assistance in the area of financing
a project of this magnitude. Mr. LuShine stated that at this time the City
should not assume that there would not be any State money involved for any
of the up front costs that the City would occur. Furthermore, he went on
to explain that the only likely sources for future money would come in the
form of Community Development Block Grants (CDBG) or 504 money.
It was pointed out at this time that if this industrial/office complex park
would become a reality, it would be the largest park of its kind on the
State of Minnesota. Mr. LuShine stated that he needed to hear from the
Council whether or not they were interested in the porposal, and if so, they
wanted to proceed with the project.
It also became apparent that the City would be looking at a fast track time
frame, since the developer appears to be interested in some type of ground
breaking by early Fall. Issues that would need to be resolved prior to
this action would include the City assuring the availability of land, the
ability of setting up the needed tax increment districts and necessary financing
required for a project of this size, and the assurance of being able to
provide the public improvements for the area.
The City asked whether or not the developer will be present during the early
stages of this project. It appears that Mr. Williquette would serve as
the real estate broker for the developer on this end of the project.
Mr. Williquette stated that he was planning on going out to California to
meet with the representatives of Longevity City, USA, Inc. sometime after
February 22nd and would be willing to hand carry the City's response to
the proposal.
The project was again briefly resummarized, and Mr. LuShine stressed the
urgency of the City deciding whether or not they want to be involved in
the project. The Council agreed to notify Mr. LuShine and Mr. Williquette
of their decision as soon as it was made.
At this time Mr. LuShine and Mr. Williquette left, but the remaining group
stayed on to discuss the project, what options were available to the City
and what would need to be done provided the Council decided to move forward
on the project.
It was agreed that the City had nothing to loose to take the step to interest
in the project and pursue the project. The group then went on to discuss
what would need to be done prior to the City contacting the developer.
The list included, but was not limited to, the following issues:
* Prepare a cover letter from the City acknowledging our interest
in the proposal.
* Develop a working team to surround the Council to make the project
move as smoothly and quickly as possible.
* Define a potential area for development on a map.
* Meet with a representative of Otsego Township and their attorney
as soon as possible to get their reaction to the project.
SPECIAL COUNCIL MEETING
PAGE 4
The issue of a development team was discussed at some length. It was stressed
that the Council would need to surround themselves with a group of experts
that would be available to put this project together. Listed below is the
team that was agreed upon by the Council:
City Administrator - Maureen Andrews
Council Liaison - Gary Schwenzfeier
City Attorney - Bob Miller
City Engineer - Meyer-Rohlin, Inc.
Bond Attorney - Briggs and Morgan, Profession Association
Tax Increment Specialist - Wilson Management Association
Financial Advisor - Juran and Moody, Inc.
City Planning Staff - To be selected
Prior to this group being confirmed, there were the following discussions:
1. BOND COUNSEL -- The Council was asked how their association with
Holmes and Graven came about and how commited they were to stay
with the firm. Brad Farnham pointed out that typically he works
with the firm of Briggs and Morgan, but that if the Council wanted
to stay with Holmes and Graven that it would not present a problem.
From the discussion presented it appeared that the association with
Holmes and Graven came through the former City Attorney, Gary Meyer.
It was pointed out that the City does not have a real close tie
with any particular attorney at the firm and have worked with any
number of attorneys over the past few years.
Brad pointed out that one of the reasons he would recommend Briggs
and Morgan is that they are willing to go all out and assist in
creating unique financing for projects. He cited an example in
Cannon Falls that Briggs had assited in.
The Council indicated that they did not have a problem with making
a change in bond counsel if they felt that would put together a
stronger working team.
2. TAX INCREMENT SPECIALIST -- It was suggested that the Council might
want to consider the hiring of a tax increment specialist to assist
in developing the needed tax increment districts and help with any
relocation issues that are likely to arise from a project of this
magnitude.
The firm of Wilson Management Services was recommended by Brad Farnham
on the basis that Dan Wilson has a great deal of experience in the
areas of tax imcrement finance and relocation issues. Brad gave
a brief background on Dan and said that he would like to introduce
him to the Council provided they agreed to go ahead and hire a tax
increment specialist.
The Council again stated that if it was the feeling of staff that
this was a needed team member that then the City should take steps
to secure a firm. And based on Brad's recommendation that Wilson
Management Services should be contacted. The minutes should note
that Thore has worked with Dan Wilson in the past, as well.
3. CITY PLANNING STAFF -- This discusison was two fold, and included
the issue of completing the land use zoning and comprehensive plan
and the need to have someone available to do plan reviews for projects
that would occur in the park. There was some discussion about likely
canidates who would be able to undertake these jobs. After some
limited discussion, no action was taken.
SPECIAL COUNCIL MEETING
PAGE 5
Another issue discussed was the City's exposure in a project of this size.
It was agreed that there was a great deal of exposure, but that there was
a consensus that it could be limited by the use of a developers agreement,
that involvement of the consultants would be limited until such time the
City has a feel from the developer how serious they are in the project.
Additionally, it was agreed that a public information hearing with the
development team, City and Township, be held to stop any rumors regarding
the proposal.
There appeared to be no other business that could be dealt with the group
at the time, so the meeting was adjourned. Prior to adjournment it was
agreed that some type of draft would be prepared for the Council's review
before the February 16th Council meeting.
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