3.1 05-13-2013 ED MIN - Laserfiche WebLink

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Economic Development Authority Minutes Page 2 May 13,2013 5. Pat Briggs Land Request Mr.Wilfahrt resented his staff report. • P P Commissioner Motin questioned if there is an option to create a parking lot and rent it back to the building owner and if the lease goes away,the EDA could market the property elsewhere.Mr.Wilfahrt stated that staff can look in to that. Commissioner Dwyer questioned if the EDA could lease the land on a 10-year lease and the leesee could do lease holder improvements. Commissioner Tveite stated that if the EDA makes an investment in the property there should be a reasonable expectation of recouping that money back. He also expressed concerns with setting a precedent for the future and the message sent to people who have already invested in the area. Pat Briggs,Briggs Companies—stated he is the owner of the building and represents tenant Professional Service Bureau,Inc. (PSB) and building owner BP Sunset LLC.He explained his offer indicating that PSB instructed him to look in nearby communities if the EDA cannot make this work.He indicated that if PSB relocates,he will probably lose his building and lender will more than likely receive building back. Commissioner Dwyer stated that if PSB is interested in purchasing and expanding the building,tax abatement may be a good fit.Mr.Briggs stated that PSB will more than likely absorb the entire building within six to nine months if the parking lot is expanded. Commissioner Westgaard explained that he is not in favor of accepting the offer. He • explained that if PSB is interested in purchasing the property,staff could work with them to pursue funding options. Commissioner Motin questioned who is the owner of BP Sunset and who is the lender on the property. Mr.Briggs stated that he is 100%owner of BP Sunset LLC and the building is financed through The Bank of Elk River. Commissioner Motin stated that he has some concern that there may be a conflict of interest with two of the EDA commissioners having an interest in The Bank of Elk River. He added that he would like for PSB to remain in Elk River and to find something that better suits their building needs. Mr.Briggs questioned if there would be an objection to installing a parking lot on the property if he is able to obtain funding for purchase of the property. Commissioner Tveite indicated that a parking lot is not allowed as a primary use in a commercial area. Commissioner Motin stated he would like to make this work but the EDA cannot give away the property.He would consider selling the three acres as long as the lot that remains is marketable. Consensus of the EDA was that they are not interested in selling the property for$1 and for staff to work with the current tenants,PSB, to find a solution or to potentially acquire the building.Mr.Briggs indicated that he represents PSB on any further communication regarding the building. 6. Bylaw Amendment Mr.Wilfahrt presented the staff report. 411