07/02/2012 - City Council Finance Committeef
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City of E and �. .
TO: FINANCE COMMITTEE
FROM: CITY ADMINISTRATOR HEDGES
DATE: JUNE 29, 2012
SUBJECT: FINANCE COMMITTEE MEETING / MONDAY, JULY 2,11:30-12:30
PM, EAGAN ROOM
A Finance Committee meeting is scheduled for Monday, July 2 from 11:30 -12:30 p.m. in the
Eagan Room. As a reminder, in keeping with past practice, no plans are being made to provide
lunch on the 2" so if you could, please plan to bring a "brown bag" lunch or eat after the
meeting.
Enclosed on pages c, through c� are the meeting notes from the May 22, 2012 Finance
Committee meeting. Also enclosed is the agenda and background memo on the Cedar Grove
redevelopment update to be discussed at the July 2nd meeting. Please feel free to contact me if
you have any questions in advance of the committee meeting.
/s /Thomas L. Hedges
City Administrator
FINANCE COMMITTEE MEETING NOTES
May 22, 2012
12 -2 PM
CONFERENCE ROOM 2A &B
Committee members present: Mayor Maguire and Councilmember Bakken
City staff present: City Administrator Hedges, Assistant City Administrator VanOverbeke,
Assistant City Administrator Miller, Chief Financial Officer Pepper, City Planner Ridley and Community
Development Director Hohenstein. Also present was Assistant City Attorney Bauer and Mark Ruff
(Ehlers and Associates)
The agenda was adopted as presented.
Nadar Nooryshokry— Request for Interest Waiver on Assessment Deferral Agreement
Assistant City Administrator VanOverbeke summarized the terms of the Assessment Deferral and
Settlement Agreement entered into with Mr. Nooryshokry in 1999. Per the agreement, the assessments
were placed on Mr. Nooryshokry's properties for collection beginning with taxes payable in 2012.
Mr. Nooryshokry appealed in person to the Finance Committee, and asked the committee to consider a
recommendation to the City Council to forgive the interest on the assessment deferral.
The committee communicated they would not recommend the forgiveness of the interest. Rather, they
suggested that Mr. Nooryshokry consider entering into an agreement in which the pay -back period on the
deferred assessments (including interest and any penalty payments) would be lengthened by up to 10
years. The conmmittee told Mr. Nooryshokry that he should contact Assistant City Administrator
VanOverbeke within seven days if he is interested in pursuing the aforementioned agreement.
Fire Administration Lease
Community Development Director Hohenstein provided an update on the current lease of the former Fire
Administration Building held by JBL Companies. It was noted that JBL Companies may be able to secure
alternative space and is therefore interested in vacating the building, but retain the garage bays for
warehouse space.
It was the consensus of the committee to recommend amending the lease agreement, with the
understanding that JBL Companies would vacate the office space by July 31, 2012, rent the garage space
on a month -to -month basis at a cost of $600 /month, and be current with all payment obligations to the
City by December 31, 2012.
Hohenstein noted that the amended agreement would be included on a future City Council consent
agenda.
O
FINANCE COMMITTEE MEETING
JULY 2, 2012
11:30 -12:30 PM
EAGAN ROOM
AGENDA
I. AGENDA ADOPTION
II. CEDAR GROVE REDEVELOPMENT UPDATE
III. OTHER BUSINESS
IV. ADJOURNMENT
Agenda Information Memo
Finance Committee Meeting
July 2, 2012
II. CEDAR GROVE REDEVELOPMENT OPTIONS
ACTION TO BE CONSIDERED:
To provide direction to staff regarding financial aspects of potential redevelopment
options and to make a recommendation to the EDA Board regarding the proposed
purchase agreement between Paragon Outlets Eagan and the EDA.
FACTS:
The Finance Committee has been designated by the City Council to review and
provide recommendations to the Council regarding matters pertaining to the
Cedar Grove Redevelopment District. Since the Committee last met, progress has
been made with respect to the EDA approval of the Paragon Outlets preliminary
concept plan and preliminary redevelopment agreement. The latter contemplates
the negotiation of a purchase agreement for the development parcel.
Since the Committee last met on May 22, 2012, staff and the City Attorney have
engaged in those negotiations and we wish to provide an update on those
discussions and the financial and policy issues covered in the tentative agreement.
In addition, the EDA's development partners, Len Pratt and Jim McCaffrey, have
been working with the prospects who may wish to acquire and develop other
parcels within the district. It would be timely to provide an update on those
discussions at this time and to provide an update on those discussions and how the
Paragon acquisition and site planning activities would relate to that.
ATTACHMENTS: Information will be distributed and reviewed at the Committee
meeting.