HomeMy WebLinkAbout1989-05-15 CA Ltr to OPH Mayor & Council RE
CEIVE® MAY Ij
LAW OFFICES OF
ECKBERG, LAMMERS, BRIGGS, WOLFF & VIERLING
1835 NORTHWESTERN AVENUE
STILLWATER, MINNESOTA 55082
LYLE J. ECKBERG (612) 439 -2878
JAMES F. LAMMERS FAX (612) 439 -2923
ROBERT G. BRIGGS
PAUL A. WOLFF
MARK J. VIERLING May 15, 1989
VICKI L. GIFFORD
GREGORY G. GALLER COF)Y
Mr. Frank Sommerfeldt, Mayor
City of Oak Park Heights
14168 IT. 57th Street
Stillwater, Minnesota 55082
Mr. ,lack Doerr, Councilman
14520 N. tipper 56th Street
Oak Park Heights, Minnesota 55082
Ms. Barbara O'Neal, Councilwoman
6201 St. Croix Trail N., Apt. 113
Stillwater, Minnesota 55082
Mr. Richard Seggelke, Councilman
14256 N. 57th Street
Oak Park Heights, Minnesota 55082
Mr. Dean Kern, Councilman
5885 Oldfield Avenue North
Stillwater, Minnesota 55082
Re: Application for Tax increment Financing
St. Croix Mall Property
Dear '- layor and Councilmembers:
Since the above Application has been submitted to the
City of Oak Park Heights' city staff (consisting of myself, the
City Auditor, Mr. Robert Voto, and consultants from the City
Planner's Office, specifically Mr. Daniel Wilson), we have
reviewed the Application and have requested additional data from
the applicant as it affects that Application.
Of the documents that the applicant has produced, the
Contracts for Deed between the applicant and the current fee
owner of the property demonstrate that the $1.2 million of tax
increment financing money being requested of the City of Oak Park
Heights is not devoted to new construction or improvement of the
mall premises but rather is scheduled within the parties'
agreements to be returned to the seller of the property so as to
Mayor and Councilmembers
City of Oak Park Heights
Page 2
May 15, 1989
offset the purchase price and in effect finance the transaction
in part. When the City established its policy for tax increment
financing setting forth its intent and within the context of all
the discussions that were held with the City Council, it became
eminently clear that the City wished to adopt a conservative and
responsible application of tax increment financing within this
community. The City indicated within its Statement of Intent as
contained within the policy that it was willing to publicly
assist private developers in overcoming the development
limitations in exchange for the construction of high quality
residential commercial and industrial development. As a matter
of public policy within the City, as well as implementing a
conservative application of tax increment financing within the
community, the City has always envisioned the use of its tax
increment dollars by any developer as a direct part of the
construction of the high quality of commercial, industrial and
residential developments that it desired. The City did not
envision or desire the use of its tax increment dollars to be
used by a developer and purchaser as a financing tool to buy off
the seller's interest.
Even though we are still awaiting additional information
from the applicant to deal with the other policy aspects of their
Application, this particular issue is so fundamental to the
City's policy that it is the recommendation of staff at this time
that the applicant be advised by the City that their Application
for Tax Increment Financing is rejected and the City will not
consider Tax Increment Financing Applications which do not
involve the utilization of all monies generated by the tax
increment into the actual construction and redevelopment costs of
the property as opposed to the financing of the sale between the
seller and buyer.
Yours very truly,
dark J. Vierling
MJV:kp
cc: Mr. Bob Voto
Mr. Dan Wilson