EDA

Blaine City Hall City of Blaine 10801 Town Sq Dr NE Blaine, MN 55449 Anoka County, Minnesota Minutes 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, May 4, 2017 7:20 PM Council Chambers 1 Call to Order The meeting was called to order at 7:24 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, Executive Director Arneson, President Ryan, Commissioner Swanson, Commissioner Jeppson, and Commissioner Garvais Absent: 1 - Commissioner King 3 Minutes 3-1 APRIL 20, 2017 EDA MINUTES Attachments: 04/20 EDA Minutes Moved by Commissioner Clark, seconded by Commissioner Garvais, that the Minutes of April 20, 2017, be approved. Motion adopted unanimously. Aye 6 - Commissioner Clark Commissioner Hovland Executive Director Arneson President Ryan Commissioner Swanson Commissioner Jeppson Commissioner Garvais 4 New Business City of Blaine Page 1 EDA Minutes May 4, 2017 4-1 APPROVAL OF A LEASE WITH ARKAD CORP. FOR 2111 105TH AVENUE AND 10525 NASSAU STREET Attachments: Site Location Map Lease Economic Development Coordinator Thorvig stated on April 20th, 2017 the Blaine EDA approved the purchase of 2111 105th Ave. and 10525 Nassau Street. Arkad Corporation currently operates their business from these buildings. Arkad is an assembly and fabricating business. As part of the purchase negotiation, Arkad expressed the desire to continue to operate their business for a period of two years as they prepare to relocate. Staff was amendable to this request as it generally matched the development timeline for Kwik Trip who is planning to construct a new convenience store adjacent to these properties at 10500 Radisson Rd. The following are the general terms of the lease agreement: 1. Arkad would vacate 10525 Nassau St. by 12/31/17. Arkad would lease 2111 105th through 5/31/19. 2. Arkad to pay $475 per month from 6/1/17-5/31/19. ($11,400 value). 3. The City would pay the property taxes for 2111 105th Ave in 2018 and 2019 (approximately $32,000). The property becomes tax exempt in 2020. 10525 Nassau St. becomes exempt in 2018 since it is not leased. 4. Arkad maintains the property including snow removal, building improvements, etc. during the two-year period of occupancy. 5. Arkad pays the utilities during the two-year period of occupancy. 6. Arkad will carry necessary insurance on the property. 7. Arkad is not permitted to sublet the property. Economic Development Coordinator Thorvig reported at the April 20th meeting there was discussion regarding the monthly lease rate and real estate taxes. As indicated at the meeting, the lease back and rate were important in getting the seller to agree to the purchase price. Initially, both parties were about $418,000 off on the purchase price. The seller wanted $1,525,000. In order to get the purchase price down to a number each party felt agreeable to ($1,267,000), each party agreed upon a leaseback of the property and the terms as proposed. President Ryan questioned if these properties would be needed to provide City of Blaine Page 2 EDA Minutes May 4, 2017 access to the Kwik Trip. Economic Development Coordinator Thorvig stated a driveway may be placed across these properties given the fact they were granted a left turn off of 105th Avenue. He anticipated further conversations would be held with Kwik Trip regarding this matter. Moved by Commissioner Clark, seconded by Commissioner Jeppson, that Resolution No. 17-06, “Approving a Lease with Arkad Corp. for 2111 105th Avenue and 10525 Nassau Street,” be approved. Motion adopted unanimously. Aye 6 - Commissioner Clark Commissioner Hovland Executive Director Arneson President Ryan Commissioner Swanson Commissioner Jeppson Commissioner Garvais 5 Other Business Economic Development Coordinator Thorvig provided the EDA with an update on the Invictus Brewery and reported the property would be closed on in May. He noted the gas station at 105th and University Avenue would be demolished by June 30th. 6 Adjournment Moved by Commissioner Jeppson, seconded by Commissioner Garvais, to adjourn the meeting at 7:29 p.m. Motion adopted unanimously. Aye 6 - Commissioner Clark Commissioner Hovland Executive Director Arneson President Ryan Commissioner Swanson Commissioner Jeppson Commissioner Garvais City of Blaine Page 3