07-28-14 EDA Mtg AgendaCITY OF SHOREWOOD 5755 COUNTRY CLUB ROAD
ECONOMIC DEVELOPMENT AUTHORITY MEETING COUNCIL CHAMBERS
MONDAY, JULY 28, 2014 Immediately following Regular City
Council Meeting
AGENDA
1. CONVENE ECONOMIC DEVELOPMENT AUTHORITY MEETING
A. Roll Call
President Zerby
Hotvet
Siakel
Sundberg
Woodruff
B. Review Agenda
2. APPROVAL OF MINUTES
A. EDA Minutes of August 12, 2013 (Att.- Minutes)
3. CONSENT
A. Treasurer's Report (Att.- Treasurer's report)
4. NEW BUSINESS
A. Selection of Officers (Att.- Executive Director's memorandum)
B. Option to Purchase Agreement with MGM Liquors (Executive Director's memorandum)
5. ADJOURN
CITY OF SHOREWOOD 5755 COUNTRY CLUB ROAD
ECONOMIC DEVELOPMENT AUTHORITY MEETING COUNCIL CHAMBERS
MONDAY, AUGUST 12, 2013 Immediately following Regular City
Council Meeting
MINUTES
1. CONVENE ECONOMIC DEVELOPMENT AUTHORITY MEETING
President Zerby called the meeting to order at 8:42 P.M.
A. Roll Call
Present. President Zerby; Boardmembers Siakel, Sundberg and Woodruff, Executive
Director /Secretary Jovnes, Assistant Treasurer DeJong; and, Assistant Executive Director
Nielsen
Absent: Boardmember Hotvet
B. Review Agenda
Woodruff moved, Sundberg seconded, approving the agenda as presf
2. APPROVAL OF MINUTES
A. EDA Minutes of August 13, 2012
Motion passed 4/0.
Woodruff moved, Zerby seconded, approving the EDA Meeting Minutes of August 13, 2012, as
presented. Motion passed 4/0:
3. CONSENT
President Zerbv reviewed the item . on the consent agenda.
Woodruff moved, Siakel seconded, Approving the Motion Contained on the Consent Agenda.
A. Treasurer's Reuort
Motion passed 4/0.
4. NEW BUSINESS
A. Selection of Officers
Executive Director Joynes explained the Shorewood Economic Development Authority (EDA) BNTlaws
stipulate the Board must select officers during its annual meeting (this meeting). The position of President
must be the Mayor of Shorewood, the Executive Director /Secretary shall be the City Administrator, the
Assistant Treasurer shall be the Director of Finance, and the Assistant Executive Director shall be the
CITY OF SHOREWOOD ECONOMIC DEVELOPMENT AUTHORITY MEETING
August 12, 2013
Page 2 of 2
Director of Planning. The positions of Vice President and Treasurer need to be appointed. There is an
option to appoint a President Pro -Tem also, but the Board has chosen not to appoint anyone to that position
in the past.
Boardmember Woodruff volunteered to be Vice President provided Boardmember Siakel Neill continue to be
Treasurer. Siakel stated she is Nu lling to do that.
Woodruff moved, Siakel seconded, approving the Economic Development Authority Officer
Authority
MEETING TYPE
AnnualMeeting
City of Shorewood Economic Development Authority
Title / Subject: Treasurer's Report
Meeting Date: July 28, 2014
Prepared by: Bruce DeJong
Reviewed by: Bill Joynes
The Economic Development Authority bylaws require a Treasurer's report at the annual meeting. This
report is presented to fulfill that requirement.
The EDA is listed as a component unit of the City of Shorewood in the annual financial report. The
activities of the EDA were limited to receipt of lease revenues and payment of bond debt service.
The Economic Development Authority (EDA) of the City was created in 2001 to carry out economic and
industrial development and redevelopment consistent with policies established by the Council. Its board
is comprised of members of the City Council. The EDA activities are blended with the city's annual
financial report and separate financial statements are not issued for this component unit.
Revenue bonds outstanding at December 31, 2013 are as follows:
Outstanding
Issue Maturitv Balance
Public Safety Fire Facility, 2007A 02/01/23 $ 3,225,000
Public Safety Police Facility, 2007B 02/01/23 3,350,000
Public Safety Fire Facility, 2007C 02101122 1,175,000
Public Project Bonds, 2008A 12/01/28 1,090,000
Total Lease Revenue Bonds $ 8,840,000
The Year to Date Balance Sheet for each of these funds is attached.
The EDA has no separate assets at this time and all moneys in the bond funds are reserved for future
debt service. There is one parcel of property at 24620 Smithtown Road, purchased by the City of
Shorewood, which is held for resale in the name of the Shorewood EDA for future redevelopment
purposes in conjunction with Smithtown Crossing plans. This property can be found in the financial
records for Fund 450 — Community Infrastructure Fund.
Mission Statement: The City of Shorewood is committed to providing residents quality public services, a
healthy environment, a variety of attractive amenities, a sustainable tax base, and sound financial
management through effective, efficient, and visionary leadership.
General Ledger
Balance Sheet
User:
bdejong
Printed:
07/24/2014 - 1:51PM
Fund:
307
Period:
6
Fiscal Year:
2014
Fund ALFRE
Account Type
307 - 2007A EDA Debt - W Fire
Assets
Cash
Notes Receivable
Liabilities
Accounts Payable
Deferred Revenues
Bonds Payable - Current
Fund Balance
Unrestricted Fund Balance
Restricted
Amount
(817.82)
0.00
Total Assets: (817.82
Totals for Fund 307 - 2007A EDA Debt - W Fire: 0.00
GL - Balance Sheet (7/24/2014 - 1:51 PM) Page 1
0.00
0.00
0.00
Total Liabilities:
0.00
0.00
0.00
Total Fund Balance:
0.00
Total Liabilities and Fund Balance:
0.00
Total Retained Earnings:
(817.82)
Total Fund Balance and Retained Earnings:
(817.82)
Total Liabilities, Fund Balance, and Retained Earnings:
(817.82)
Totals for Fund 307 - 2007A EDA Debt - W Fire: 0.00
GL - Balance Sheet (7/24/2014 - 1:51 PM) Page 1
General Ledger
Balance Sheet
User:
bdejong
Printed:
07/24/2014 - 1:52PM
Fund:
308
Period:
6
Fiscal Year:
2014
Fund ALFRE
Account Type
308 - 2007B EDA Debt - Police
Assets
Cash
Notes Receivable
Liabilities
Accounts Payable
Deferred Revenues
Bonds Payable - Current
Fund Balance
Unrestricted Fund Balance
Restricted
Amount
(817.59)
0.00
Total Assets: (817.59
Totals for Fund 308 - 2007B EDA Debt - Police: 0.00
GL - Balance Sheet (7/24/2014 - 1:52 PM) Page 1
0.00
0.00
0.00
Total Liabilities:
0.00
0.00
0.00
Total Fund Balance:
0.00
Total Liabilities and Fund Balance:
0.00
Total Retained Earnings:
(817.59)
Total Fund Balance and Retained Earnings:
(817.59)
Total Liabilities, Fund Balance, and Retained Earnings:
(817.59)
Totals for Fund 308 - 2007B EDA Debt - Police: 0.00
GL - Balance Sheet (7/24/2014 - 1:52 PM) Page 1
General Ledger
Balance Sheet
User: bdejong
Total Assets:
(720.59)
Printed: 07/24/2014 - 1:52PM
City of
Fund: 309
EMShorewood
0.00
Deferred Revenues
0.00
Period: 6
0.00
Fiscal Year: 2014
Total Liabilities:
0.00
Fetid ALFRE
Account Type
Amount
309 - 2007C EDA Debt - E Fire
0.00
Assets
Total Fund Balance:
0.00
Cash
Total Liabilities and Fund Balance:
(720.59)
Notes Receivable
Total Retained Earnings:
0.00
GL - Balance Sheet (7/24/2014 - 1:52 PM) Page 1
Total Assets:
(720.59)
Liabilities
Accounts Payable
0.00
Deferred Revenues
0.00
Bonds Payable - Current
0.00
Total Liabilities:
0.00
Fund Balance
Unrestricted Fund Balance
0.00
Restricted
0.00
Total Fund Balance:
0.00
Total Liabilities and Fund Balance:
0.00
Total Retained Earnings:
(720.59)
Total Fund Balance and Retained Earnings:
(720.59)
Total Liabilities, Fund Balance, and Retained Earnings:
(720.59)
Totals for Fund 309 - 2007C FDA Debt - E Fire:
0.00
GL - Balance Sheet (7/24/2014 - 1:52 PM) Page 1
General Ledger
Balance Sheet
User:
bdejong
Printed:
07/24/2014 - 2:40PM
Fund:
310
Period:
6
Fiscal Year:
2014
Fund ALFRE
Account Type
310 - 2008 FDA Debt - City Hall
Assets
Cash
Notes Receivable
Liabilities
Accounts Payable
Deferred Revenues
Bonds Payable - Current
Fund Balance
Unrestricted Fund Balance
Restricted
Amount
(24,722.50)
0.00
Total Assets: (24,722.50)
0.00
0.00
0.00
Total Liabilities: 0.00
0.00
0.00
Total Fund Balance: 0.00
Total Liabilities and Fund Balance: 0.00
Total Retained Earnings: (24,722.50)
Total Fund Balance and Retained Earnings: (24,722.50)
Total Liabilities, Fund Balance, and Retained Earnings: (24,722.50)
Totals for Fund 310 - 2008 EDA Debt - City Hall:
0.00
GL - Balance Sheet (7/24/2014 - 2:40 PM) Page 1
SHOREWOOD ECONOMIC DEVELOPMENT AUTHORITY
5755 Country Club Road
Shorewood, MN 55331 -8926
952 - 960 -7900 FAX: 952 - 474 -0128
MEMORANDUM
MEETING DATE: July 28, 2014
TO: EDA Board of Commissioners
FROM: William S. Joynes, Executive Director
Brad Nielsen, Assistant Executive director
RE: Selection of Officers
The Selection of Officers was made at the EDA's last meeting on August 12, 2013. The EDA By-
Laws state the positions of Vice President and Treasurer shall be members of the Board and shall be
elected at the annual meeting. The By -Laws further state that no commissioner may serve as
President and Vice President at the same time.
The Officers appointed at the August 12, 2013, meeting included:
Vice - President — Richard Woodruff (Presides in the absence of the President). The Board may
determine who shall serve as Vice - President.
President Pro -Tem — Appointed to serve in the absence of both the President and Vice - President. The
Board decided to leave this position vacant. If the Board wishes to fill this position, it will
need to select someone for it.
Treasurer — Deb Siakel (The Treasurer shall receive and be responsible for Authority money, etc.
(The Board may determine who shall serve as Treasurer).
The Bylaws state the following shall serve as Officers:
President — Scott Zerby (The President shall be the Mayor of the City of Shorewood).
Assistant Treasurer — Bruce DeJong (The Assistant Treasurer shall be the Director of Finance).
Secretary — William Joynes (The Secretary shall be the City Administrator).
Executive Director — William Joynes (The Executive Director shall be the City Administrator).
Assistant Executive Director — Brad Nielsen (The Assistant Executive Director shall be the Director
of Planning).
Action Needed:
The Board will need to determine who shall be appointed to serve as Vice - President, President Pro -
Tem (if the Board determines to fill this position), and Treasurer.
SHOREWOOD ECONOMIC DEVELOPMENT AUTHORITY
5755 Country Club Road
Shorewood, MN 55331 -8926
952 - 960 -7900 FAX: 952 - 474 -0128
MEMORANDUM
MEETING DATE: July 28, 2014
TO: EDA Board of Commissioners
FROM: Bill Joynes, Executive Director
CC: Timothy J. Keane, City Attorney
RE: Draft Letter of Intent
Please find attached a Draft Letter of Intent to proposed Option Agreement that City Attorney
Keane and I have negotiated with Mr. Steve Sloan, the holder of the MGM Franchise in Tonka
Bay. Mr. Sloan is planning on moving his business into the vacant Heartbreakers property at
5660 County Road 19 in Shorewood. The Shorewood City Council, earlier this evening,
approved an off -sale liquor license for this applicant contingent on the passage of this Letter of
Intent to Option Agreement by the EDA.
In very general terms this Agreement allows the EDA to have a right to exercise an option to
purchase the property anytime in the next ten years. The terms of a future purchase are
specifically defined in the document and we have agreed to a valuation formula that we believe
is fair to both parties.
Action:
Approval of the Letter of Intent to Option Agreement with Real Estate Holdings by JD, LLC.
Attachments: Letter of Intent
1•l:v_1aI
Letter of Intent
July _, 2014
Mr. Steve Sloan
Wine & Spirits by JD, Inc.
c/o Real Estate Holdings JD, LLC
1885 Carriage Drive
Victoria, MN 55386
RE: Letter of Intent
Option Agreement:
5660 County Road 19
Shorewood, MN 55331
Dear Mr. Sloan:
In the event that you, or a related entity, purchase the below described property for the proposed use
described herein, and in consideration for the City of Shorewood issuing to you or your related designee a
liquor license, you hereby grant an option in favor of the City of Shorewood, to purchase the property
located at 5660 County Road 19, Shorewood, Minnesota pursuant to the terms and conditions described
as follows:
OPTIONOR: Real Estate Holdings JD, LLC, and /or assigns
OPTIONEE : City of Shorewood by Economic Development Authority
PROPERTY: The Property consisting of approximately 32,662 square feet
located at 5660 Manitou Road, Shorewood, MN, described as
Lot 25, Auditor's Subd. No. 133. PID 31- 117 -23 -13 -0007.
Property is outlined on the attached Exhibit A.
INTENDED USE: Upon the purchase of the Property by Optionor, and the
relocation of Optionor's current location to the Property,
Optionor's use of Property shall be limited to operating an off -
sale liquor store providing parking or other uses as may be
agreed to by both parties. Optionor shall be solely
responsible for the cost of all improvements to Property which
shall be approved in advance by Optionee.
OPTION TERMS: Optionee and Optionor will enter into an Option Agreement
incorporating the following terms and conditions, and such
other terms as the parties mutually agree:
• Optionee shall have the right to exercise its option, in its
sole discretion, if Optionee elects to incorporate the
Property into a larger mixed use redevelopment;
• The term of this Option shall be 10 years;
• Optionee shall provide Optionor a minimum of 12 months
notice;
• Optionee shall exercise its Option with payment of
earnest money in the amount of $50,000;
• The Base Price shall be $491,000. The Base Price shall
be adjusted as of the exercise date to establish the
Purchase Price as follows: The Base Price shall be
adjusted by a multiplier determined by the assessed
4845- 4597- 1739.4
5660 County Road 19
July _, 2014
Page 2 of 2
1•l:v_1aI
market value in the year of exercise as the numerator
and the assessed market value on January 2, 2015, for
taxes payable in 2016 as the denominator. The adjusted
Purchase Price shall be paid at closing, with the earnest
money applied against the Purchase Price.
• The closing shall occur within 90 days of Optionee's
exercise of its option.
• Optionee and Optionor will enter into a purchase
agreement containing such other standard terms and
conditions.
• Optionee shall be entitled to business relocation benefits
as provided in 42 U.S. Code Ch. 61.
SELLER/BUYER REPRESENTATIONS: Seller /Buyer agrees to buy the Property in "as -is" condition.
This Letter of Intent is intended to outline the general business terms to be used in a definitive Option
Agreement, to be prepared by Optionee. This document will only bind the parties during the term of this
letter. Beyond that term, parties will be bound only by a fully executed Option Agreement. If this
agreement is acceptable, please sign below to indicate your acceptance of the noted terms. Time is of
the essence we appreciate your earnest attention to this matter and look forward to working through the
remaining details.
REAL ESTATE HOLDINGS BY JD, LLC
OPTIONOR:
By:
Date:
Agreed and Accepted:
CITY OF SHOREWOOD
OPTIONEE:
By:
Its:
Date:
4845- 4597- 1739.4