Economic Development Authority

BAXTER ECONOMIC DEVELOPMENT AUTHORITY MINUTES Tuesday, October 04, 2022 at 5:45 PM “A Growing Community” Baxter City Hall, 13190 Memorywood Drive, Baxter, MN CALL TO ORDER President Cross called the meeting to order at 5:45 p.m. ROLL CALL President Mark Cross, Vice President Zach Tabatt, Treasurer Connie Lyscio and members Darrel Olson and John Ward were present. Executive Director Brad Chapulis, Assistant Treasurer Jeremy Vacinek, Secretary Kelly Steele, and Josh Doty. MINUTES 1. Approve EDA Minutes from June 7, 2022 MOTION by Vice President Tabatt, seconded by Treasurer Lyscio to approve the EDA minutes from June 7, 2022. Motion carried unanimously. OLD BUSINESS NEW BUSINESS 2. City / EDA Residential Property Discussion Executive Director Chapulis explained after review of the Ludenia appraisal, the EDA worked with city staff and BLAEDC to begin publicly marketing the city/EDA owned commercial and industrial properties this summer. Time has been set aside to discuss formulating a plan for the residential properties that were included in the appraisal. The properties are located along Lynndale Drive, Clearwater Road, Cedar Scenic Road, and the former water treatment plant site on Mountain Ash. The EDA board was supportive of starting to market all the properties as soon as possible, with the assistance of a realtor. The proposed trail along Cedar Scenic should be resolved prior to marketing the Cedar Scenic properties. The property along Clearwater Road was purchased by the city in 2006 during the street improvement project. Each parcel has two water and sewer services which allows the seven lots to be plated into thirteen lots. The EDA would have the expense of replating and would have to pay park dedication fees on the additional lots. The estimated total cost is $20,000. The outstanding assessments on the properties is approximately $13,000 per lot for each of the thirteen lots. The EDA discussed when is the best time is to sell the properties with minimal impact to other property owners holding residential lots. 10/4/2022 Economic Development Authority Minutes Page 2 The city has $238,000 or $26,000 per lot invested in the nine lots located along Cedar Scenic. If the city is going to acquire additional right-of-way for a grade separated trail, the lots may need to be deeper. The city would have replating costs of $8,000-10,000. At the time the city acquired the Cedar Scenic lots in 2002 the city did not own the 80 acres behind the lots. The city could delay replating the lots to determine if they should be incorporated in the park system. The four-acre site of the former water treatment plant, at the corner of Mountain Ash and Highland Scenic, is located in an R-1 zoned district. A single-family home may not be the best use for the property. There is a lift station located near the center of the property. A townhome development might be the best use for the parcel. The EDA could consider conducting an RFP process for development and allow someone to propose a developed. The city should not have any issues with selling the parcel even though it is located on a lake. The EDA could utilize tax increment financing funds for development. However, the funds would need to be used by the end of 2025. The EDA discussed the cost of continuing to hold the lots. MOTION by Vice President Tabatt, seconded by Treasurer Lyscio to direct staff to request proposals for appraisal services and to keep moving forward on the sale of the properties. Motion unanimously carried. EDA BOARD MEMBER COMMENTS AND DISCUSSION Comments received may be placed on a future meeting agenda for consideration. None. ADJOURN Motion by Member Ward, seconded by Treasurer Lyscio to adjourn at 6:15 p.m. Approved by: Respectfully submitted, _____________________________ Mark Cross Kelly Steele President Assistant City Administrator