City Council Minutes
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CITY OF VICTORIA
ECONOMIC DEVELOPMENT AUTHORITY
JUNE 14, 2007
COUNCIL CHAMBERS
7951 ROSE
VICTORIA, MINNESOTA
MINUTES
(1) CALL TO ORDER:
Pursuant to due call and posted notice
thereof, the Economic Development Authority of the Victoria City Council
was called to order at 6:00 p.m. by Mayor Hershberger Thun in the Council
Chambers at 7951 Rose.
Roll Call:
Members Present: Mayor: Mary
Hershberger Thun; Councilmembers: Tim Amundsen, Jim Paulsen, Rick Tieden,
and Kim Roden.
Absent: None.
Staff Present: David Urbia,
Interim City Administrator; Jylan Johnson, Finance Director; Holly Kreft,
City Planner; and Mike Norton, City Attorney.
Others Present: Shannon Sweeney, David Drown
Associates; Paul Donna, Northland Securities; Unsie Zuege, Chanhassen
Villager; Sue Orsen, The Victoria Gazette; and others.
(2) MEUWISSEN CREAMERY PROJECT
Ms. Kreft provided an overview of the history of the
project timeline.
Mr. Norton led an overview of the drafted contract for
private development between the EDA and Victoria Creamery, LLC.
Discussion was held regarding the eligible TIF amount.
Councilmember Amundsen arrived at 6:20
p.m.
Mr. Norton continued reviewing the
provisions of the proposed contract.
Discussion was held regarding the
construction of the public parking.
The Council decided to continue on
with the EDA meeting and delay the start of the Council meeting.
Mr. Norton continued with his
presentation of the various provisions of the proposed contract.
Discussion was held regarding whether
the developer would choose to sell the property in the future.
Mr. Norton indicated the project
cannot be arbitrarily sold before it is completed. If the project is
completed, the transferee would have to meet any remaining requirements of
the contract.
In response to a question by
Councilmember Paulsen, Mr. Norton indicated that but for this project,
there would not be any tax revenue generated.
Paul Donna, Northland Securities,
indicated it is practically a riskless venture for the City because of its
pay-as-you-go nature.
Jay Lindgren, Dorsey & Whitney,
explained the changes of the projected timeline as well as the request for
an increased TIF amount.
Councilmember Roden noted she has
received two anonymous letters indicating the subcontractors have not been
paid by the applicants.
Mr. Lindgren stated Krause Anderson
will be the general contractor on the project.
Mayor Hershberger Thun stated this is,
in the long-run, a private parking lot. Additionally, there are some
missing numbers in the contract.
Mr. Lindgren stated the easement will
give the City real property rights and will indicate public parking will
need to be provided for the length of this easement.
A motion was made by Councilmember
Roden that the EDA review and comment on the development agreement and
recommend staff provide a final draft at an EDA meeting to be held on June
28th, and that staff also consult with Springsted to engage in
an independent financial review.
The motion died for lack of second.
A motion was made by Councilmember
Paulsen, seconded by Councilmember Tieden, to approve the development
agreement for execution subject to modification of the TIF budget and no
substantial changes to the agreement as presented.
Councilmember Roden indicated she will
not vote for the motion because further review of the financial aspects of
the project is necessary.
With 3 members voting favor, the
motion carried. Vote: 3 Ayes (Amundsen, Paulsen, Tieden), 2 Nays
(Hershberger Thun, Roden).
The EDA meeting adjourned at 7:14 p.m.
Respectfully submitted,
Allison Burr
TimeSaver Off Site Secretarial, Inc.
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