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HomeMy WebLinkAbout10-27-92 - ~ 9 14 ECONOMIC DEVELOPMENT COMMISSION MEETING MINUTES OCTOBER 27, 1992 The meeting was called to order at 7:05 p.m. in the City Hall conference room by Chairman Edmond. Members present were Emond, Detjen, Brantly, Matasosky, Erickson, Hanlon. Absent and Excused: Tushie, Berg Others present: Robert Erickson, City Administrator; Michael Sobota, Community and Economic Development Director; Carol Graff, Graduate Assistant; Gary Fuchs, Assistant City Attorney; Ladonna Riste, Dakota County Economic Development Partnership. 9a • /3 Motion was made by Erickson, seconded by Detjen to approve the minutes of the August 25, 1992 EDC meeting as mailed. Motion passed unanimously. AIR LAKE/RTC ISSUES Michael Sobota introduced Gary Fuchs, the Assistant City Attorney. Mr. Fuchs has researched the Air Lake/RTC legal proceedings. He had recent discussions with attorneys representing the Resolution Trust Corporation and attorneys representing various partners in the Air Lake Group. Mr. Fuchs • indicated that Dallas Development Corporation was a partner within the Air Lake Group. Dallas had done a number of developments throughout the Twin Cities in the middle to late 80's. Other individual investors were involved in the Air Lake Group. A mortgage was obtained from Occidental Savings Bank of Nebraska. The mortgage was defaulted upon by the Air Lake Group. The Occidental Savings Bank began foreclosure proceedings by action rather than by advertisement. Foreclosure by action would allow Occidental to obtain payment even if the mortgage was greater than the value of the property. The RTC inherited the proceedings when the Occidental Savings Bank failed. The procedure was moved to Federal Court. Judge McClaughlin in December 1991 ruled that the foreclosure could proceed. Mr. Fuchs indicated he had discussed the property specifically related to the Grist Mill parcel, that Grist Mill is attempting to obtain. RTC feels that they had an agreement between Air Lake, RTC and Grist Mill; however, the agreement has not been consummated because of a disagreement about use of the proceeds from the sale. Mr. Fuchs indicated that Dallas Development is now in bankruptcy and, under current law, no longer a partnership. Mr. Fuchs explored with the Economic Development Commission members possible roles that the City could play in moving the process forward. Mr. Fuchs indicated that the City cannot condemn any of the property without the consent of the RTC. At this time, the RTC will not consent to the condemnation because there is no agreement on the placement of the . roceeds. At this time, a sheriff's sale is scheduled for December 1992. There is some question as to whether or not the legal description for the sheriff's sale legal notice is accurate. Mr. Fuchs indicated a further complication is that the RTC Eagan office is closing October 31 with all files being moved to Kansas City. ECONOMIC DEVELOPMENT COMMISSION MEETING MINUTES OCTOBER 27, 1992 Page 2 There was general discussion that the City should stay out of the litigation that is current] going on; however, there was a possible third party role that the City could play. It was agreed that Mr. Fuchs should follow up with the attorneys involved to see if there was a way to setup an escrow mechanism for the proceeds of sales that could occur on individual parcels in Air Lake Industrial Park. It was also agreed that the City should have Mr. Fuchs at the sheriffs sale in order to keep current on the foreclosure action. Mr. Fuchs indicated that conversations recently indicated a possible settlement between the partners and RTC. EDC members thanked him for his enlightened presentation. DAKOTA COUNTY ECONOMIC DEVELOPMENT PARTNERSHIP Sobota next introduced Ladonna Riste, currently Economic Development Director for Dakota Electric Association. Ladonna is a member of the Dakota County Private Industry Council and also is working on establishing the Dakota County Economic Development Partnership. She indicated the need for the partnership was recognized back in the late 80's. An initial partnership meeting was held in May 1990 between representatives from the county, county-wide groups and individual communities. She outlined the goals of the partnership as: serving as a catalyst for the coordination of resources for economic development, taking a leadership role in assisting the upgrade of business retention efforts, addressing the needs of capital formation and incentive financing, launching an entrepreneurial development program, actively promoting and marketing Dakota County and local communities and increasing the utilization and effectiveness of county-wide organizations for economic development. Discussion focused on the commitment by Dakota County which has budgeted $30,000 for 1993. It was generally concluded that participation from a majority of the cities and the county would be essential to partnership effectiveness. There was also discussion of the role of Metro East Development Partnership. The City is currently a member of Metro East. Staff indicated that by structuring participation in Metro East through the Dakota County Partnership it would ensure coordination of all efforts. There was strong interest in continuing to work with Metro East through the Dakota County Economic Development Partnership. EDC members indicated The Partnership was an excellent idea. The City would be served well by participating in the Dakota County Economic Development Partnership following the outline developed by the Dakota County Manager's Group. This includes a $1,000 fee per year plus ten cents per capita. Lakeville's cost of membership would be approximately $3,500 per year with a three year commitment being asked for by the partnership. Bob Erickson indicated that the City Managers would be discussing formation of the partnership at their meeting on tomorrow. • Erickson noted that the partnership could be very effective in area wide initiatives. ECONOMIC DEVELOPMENT COMMISSION MEETING MINUTES OCTOBER 27,1992 Page 3 9 ~ - / y Motion by Matasosky, seconded by Hanlon to table the recommendation until a consensus is reached with other communities in Dakota County. All Ayes. UPDATE ON CURRENT DEVELOPMENT PROJECTS Sobota and Graff updated the members on recent economic development activities. The Fairfield Marketing program included two mailings with additional follow up. EDC members thought it would be a good idea to place a sign at the Fairfield site for those businesses that maybe interested in viewing the site prior to contacting City staff. Graff indicated the visits with 24 businesses in Air Lake have been very successful. Members discussed the potential of a future workshop focusing on employee recruitment and related activities. Ms. Graff also indicated that the number of vacant buildings in Airlake is down from nine to four with the additional marketing efforts to attract tenants. Sobota indicated the next meeting of the EDC would be scheduled for December 1. A number of planning related issues would be on the agenda. . There being no further business, the meeting was adjourned at 9:16 p.m. Respectfully submitted: / ichael Sobota, Rec rding Secretary Jerry Erickson, Secretary •