EDA

Blaine City Hall City of Blaine 10801 Town Sq Dr NE Blaine, MN 55449 Anoka County, Minnesota Minutes - Final EDA The purpose of the Blaine Economic Development Authority is to increase the City’s commercial/industrial tax base, provide employment opportunities, undertake redevelopment to enhance and maintain neighborhood economic stability, and address special needs, such as senior housing. As authorized under Minnesota State statutes, the Blaine City Council also serves as the Blaine Economic Development Authority. Thursday, February 16, 2017 7:15 PM Council Chambers 1 Call to Order The meeting was called to order at 7:18 p.m. by President Ryan followed by the Roll Call. 2 Roll Call Quorum Present. ALSO PRESENT: City Manager Clark Arneson; Planning and Community Development Director Bryan Schafer; Finance Director Joe Huss; Police Chief/Safety Services Manager Chris Olson; Economic Development Coordinator Erik Thorvig; Public Services Manager Bob Therres; City Engineer Jean Keely; Communications Technician Roark Haver; Senior Engineering Technician Jason Sundeen; and City Clerk Catherine Sorensen. Present: 7 - Commissioner Clark, Commissioner Hovland, Commissioner King, President Ryan, Commissioner Swanson, Commissioner Jeppson, and Commissioner Garvais 3 Minutes 3-1 MIN 17-05 DECEMBER 15, 2016 EDA MINUTES Moved by Commissioner Swanson, seconded by Commissioner Clark, that the Minutes of December 15, 2016, be approved. Motion adopted 4-0-3 (Commissioners Garvais, Hovland and Jeppson abstained.) Aye 4 - Commissioner Clark Commissioner King President Ryan Commissioner Swanson Abstain 3 - Commissioner Hovland Commissioner Jeppson Commissioner Garvais 4 New Business 4-1 EDA RES 17-01 TILLER CORPORATION SITE EXPANSION City of Blaine Page 1 EDA Minutes - Final February 16, 2017 Planning and Community Development Director Schafer stated Tiller Corporation began operations of their hot mix asphalt (HMA) plant at 10280 Naples Street in 2000. Their aggregate storage needs have grown over the past 15 years based not only on the general growth of the business (asphalt sales) but also the need to store and recycle more reclaimed asphalt and concrete which now comprises more than 15% of the aggregate used in their business. In short, they are running out of room and have identified (and purchased) the 11.2 acre Determan parcel just to the west of their site. The 11.2-acre site is undeveloped and contains scattered wetland areas throughout the parcel. Planning and Community Development Director Schafer explained their proposal consists of adding approximately 4.5 acres of aggregate storage on the eastern edge of the former Determan site and adjacent to their existing aggregate storage areas. This expansion is deemed to be critical by Tiller in order to remain efficient and competitive in serving the development and road maintenance needs of Blaine as well as the surrounding north metro area. Currently this site generates almost 400 million tons of HMA serving Blaine and good portion of the north metro. Typically, 15 employees are on site and necessary for the operations of the facility. The current site has a 2016 tax value at just over $1.2 million with just over $47,000 paid in property taxes for 2015. Staff discussed the request in further detail and recommended the EDA approve the sale of up to 5.1 acres of EDA wetland credits at the price of $1.85 per square foot. President Ryan stated he appreciated the amount of asphalt and concrete that was being recycled in the State of Minnesota. Commissioner Swanson asked how many of the wetland credits the City had sold to date. Planning and Community Development Director Schafer stated the City began with 55 acres in wetland credits and after this sale the City would have roughly 40 acres remaining. Moved by Commissioner Swanson, seconded by Commissioner Clark, that Resolution No. 17-001, “Approving the sale of up to 5.1 acres of EDA wetland credits at the price of $1.85 per square foot,” be approved. Motion adopted unanimously. Aye 7 - Commissioner Clark Commissioner Hovland Commissioner King President Ryan Commissioner Swanson Commissioner Jeppson Commissioner Garvais 4-2 EDA RES 17-02 PURCHASE OF 10501 UNVIVERSITY AVENUE Economic Development Coordinator Thorvig stated the property at 10501 University Avenue is for sale. The .63-acre property includes a 1,800 sf. vacant gas station built in 1961. The business hasn’t been in operation since June, 2014. The property has several non-conformities including parking/structure setbacks and multiple accesses. The property has received several code violations for illegal dumping, signs, and tall grass since the City of Blaine Page 2 EDA Minutes - Final February 16, 2017 business closed. Economic Development Coordinator Thorvig explained the property was originally listed in 2015 for $250,000 and recently relisted with a different broker for $350,000. The 2017 Anoka County assessor’s value is $239,800. At the January 2, 2017 workshop the City Council directed staff to pursue purchase of the property. The proposed purchase price is $260,000. Funds for the purchase would come from pooled redevelopment TIF. As a contingency in the purchase agreement, the owner will be required to remove the existing fuel tanks and provide a letter from the MPCA that any leak reports have been closed prior to the EDA taking ownership. Staff recommended the EDA approve the purchase. President Ryan anticipated the site would require clean up and he was pleased that this site would finally be redeveloped. Moved by Commissioner Clark, seconded by Commissioner Jeppson, that Resolution No. 17-02, “Approving the purchase of the property at 10501 University Avenue for the price of $260,000,” be approved. Motion adopted unanimously. Aye 7 - Commissioner Clark Commissioner Hovland Commissioner King President Ryan Commissioner Swanson Commissioner Jeppson Commissioner Garvais 5 Other Business None. None. 6 Adjournment Moved by Commissioner Hovland, seconded by President Ryan, to adjourn the meeting at 7:26 p.m. Motion adopted unanimously. Aye 7 - Commissioner Clark Commissioner Hovland Commissioner King President Ryan Commissioner Swanson Commissioner Jeppson Commissioner Garvais City of Blaine Page 3