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HomeMy WebLinkAboutMarch 1, 2004 0 0 ~ Ct/)... ~ :~) ò-"-:I<o-D--t '----"" 1685 CROSSTOWN BOULEVARD N.W. . ANDOVER, MINNESOTA 55304 . (763) 755~5100 . FAX (763) 755-8923 . WWW.CI.ANDOVER.MN.US CITY OF ANDOVER ECONOMIC DEVELOPMENT AUTHORITY MEETING March 1,2004 - 6:30 p.m. CONFERENCE ROOM A AGENDA 1. Call to Order 2. Approve Minutes - February 3, 2004 3. Authorize Termination of Lease & Ground Lease, Execution of An Escrow Agreement & Calling Prior Bonds (Public Works Building) - Finance 0 4. Other Business 5. Adjourn /' 'ì "-./ fì () /'j Si\NÓÒVË~- \ 1 1685 CROSSTOWN BOULEVARD N.W. . ANDOVER, MINNESOTA 55304 . (763) 755-5100 -.-/ FAX (763) 755-8923 . WWW.CI.ANDOVER.MN.US ANDOVER ECONOMIC DEVELOPMENT AUTHORITY MEETING MARCH 1, 2004 - MINUTES A Meeting of the Andover Economic Development Authority was called to order by President Mike Gamache, March 1,2004,6:30 p.m., at the Andover City Hall, 1685 Crosstown Boulevard NW, Andover, Minnesota. Present: Commissioners Don Jacobson, Ken Orttel, Julie Trude and Voting resident member Robert Nowak. Absent: Commissioner Mike Knight, Voting resident member Fred Larson and Non-voting resident member Edward Schultz. Also present: Executive Director, John Erar City Finance Director Jim Dickinson City Attorney, Barry Sullivan Others APPRO V AL OF MINUTES 0 February 3, 2004: Correct as written. MOTION by Trude, Seconded by Orttel, approval of the Minutes as written. Motion carried unanimously. AUTHORIZE TERMINATION OF LEASE & GROUND LEASE, EXECUTION OF AN ESCROW AGREEMENT & CALLING PRIOR BONDS (PUBLIC WORKS BUILDING) EDA Treasurer Dickinson explained at the February 17, 2004 Andover City Council meeting, Mark Ruff, the City's Financial Advisor from Ehlers & Associates presented the results of the . City's sale of a $3,890,000 G.O. Capital Improvement Bond, Series 2004A. Commissioner Jacobson stated he is not against this. He noted that they need to terminate the lease and ground lease when paying off the bond. He wondered if they will make a new lease with the new bond. Mr. Dickinson stated they will not; it will be transferred directly to the City. Mr. Nowak asked how they will be saving money. Mr. Dickinson stated they will be financing the bond at a lower rate. Commissioner Trude asked why they used March 16th for the date. Mr. Dickinson stated March 16th is the date they will close all the bonds. CJ Commissioner Orttel asked if they over levy for lease revenue. Mr. Dickinson stated they only levy for what they need. Motion by Jacobson, Seconded by Trude, authorizing the City Council to approve the attached 0 0 CJ Andover Economic Development Authority Meeting Minutes - March 1, 2004 Page 2 resolution "A Resolution Authorizing Termination of Lease and Ground Lease, Execution of an Escrow Agreement and Calling for Prior Bonds". Motion carried unanimously. (Res. R001-04) ~,rJ CONSIDER WINDFALL-LEAN-INDEMNIFICATION REQUEST FOR TARGET GREATLAND. ftvneluiLd..-- 3 -I to - () t Executive Director Erar explained staff discussion late last week with Target and Ryan Company representatives has resulted in a developer request for indemnification from the Andover EDA. This indemnification is specific to federal environmental legislation covering EP A efforts to obtain a windfall lien on past brownfield site remediation costs. Mr. Erar stated as this federal legislation has been interpreted to potentially allow the EP A to pursue environmental clean-up recovery costs from the original purchaser of a piece of contaminated property that is remediated and then sold at a profit. This issue is complicated by the belief of Target Corporation attorneys that the EP A could pursue litigation in the form of a lien on th,e property purchased by Target in an attempt to recover past environmental remediation costs. Staff and the City Attorney's office believe that the federal legislation on windfall liens (j does not affect the ultimate end user, but only the original buyer of the contaminated property before and after the environmental cleanup took effect. Mr. Erar explained Target will not realize any type of "windfall" profit on the site as they are paying what amounts to market value on the land from United Properties, the broker on the land deal. The EDA is already legally indemnified from any type of litigation, as the EP A has previously agreed not to sue the EDA once the site was remediated and prepared for redevelopment. Mr. Erar stated the terms of the general indemnification will remain the same. This item is related to some legal perspectives that are a little bit too conservative in regard to what the windfall lien implies. City Attorney Sullivan stated the statute is fairly new from 2001. He explained what the Statute means. Commissioner Jacobson asked if this is a Federal Statute and not a State Statute. City Attorney Sullivan stated it is. City Attorney Sullivan stated they do not feel this is a great risk to the City. They feel it is a low risk to provide an indemnity to Target. ~) Commissioner Jacobson stated they could only sue for unreimbursed costs. City Attorney Sullivan stated that was correct. City Attorney Sullivan stated the statute is meant to protect the Federal Government. 0 0 r-\ Andover Economic Development Authority Meeting I \ j Minutes - March 1, 2004 '- , Page 3 Commissioner Trude asked if the EP A will submit a letter of approval for this site. Mr. Erar stated it is the Department of Justice pushing this item. The EPA has already given their final reading of the monitoring well and delisted it. Commissioner Trude asked who has read the covenants to see who this covers. Mr. Erar thought City Attorney Hawkins read it. Commissioner Trude wanted to make sure the EDA is covered also. Commissioner Jacobson understood that the worst that could happen is they would only be liable for $500,000. Mr. Erar stated they have a written indemnification, a covenant not to sue. Target is pursuing delisting of the site and the EP A has indicated they are willing to delist this site. Commissioner Trude stated she would like a written letter of opinion in the file from the City Attorney regarding this. Mr. Erar stated the City has not granted any indemnification; the indemnifications have been done by the EDA. , \ ) Motion by Orttel, seconded by Jacobson, to authorize the EDA Executive Director and legal " counsel to prepare language that meets the concerns of Target and Ryan Company to the extent possible with particularity to this specific environmental issue associated with a windfall lien and the terms of general indemnification would remain the same. Commissioner Jacobson asked if they should have President Gamache look at the City Attorney letter. Mr. Erar stated he will mail it out to all of the EDA members. Motion carried unanimously. OTHER BUSINESS There was no other business. Motion by Nowak, Seconded by Orttel, to adjourn. Motion carried unanimously. The meeting adjourned at 6:57 p.m. Respectfully submitted, /- \ Susan Osbeck, Recording Secretary ! \ "