HomeMy WebLinkAboutCCMIN_03.10.21CITY OF FALCON HEIGHTS
Regular Meeting of the City Council
City Hall
2077 West Larpenteur Avenue
MINUTES
March 10, 2021 at 7:00 P.M.
NOTE: THIS MEETING WAS HELD BY WEB CONFERENCE
A. CALL TO ORDER: 7:01 PM
B. ROLL CALL: ANDREWS X. GUSTAFSON X LEEHY X
MIAZGA _X__ WEHYEE_X_
STAFF PRESENT: THONGVANH X
C. PRESENTATION
D. APPROVAL OF MINUTES:
1. February 24, 2021 City Council Regular Minutes
2. March 3, 2021 City Council Workshop Minutes
Motion by Leehy to approve the minutes;
Approved 5-0.
E. PUBLIC HEARINGS:
1. Conduit Bonding - New Harmony Care Center
Administrator Thon vanh
The City received a request from the New Harmony Care Center to issue a conduit bond to help finance
their project. The City has done conduit bonding for a number of years, and we receive 0.25% of 1% of the
total bond amount. Staff recommend approval of the resolution.
Catherine Courhigy, Taft
We are the City's bond counsel. New Harmony Care Center facility is aging and will be relocated to
Maplewood, and will involve construction of a new nursing home as well as senior housing. Each City
can issue up to 10 million of its own bonds and conduit 501c3 bonds in a calendar year. The City of
Maplewood does not have the capacity to issue bonds for this project.
Mayor Gustafson
At this point we will open the public hearing.
Sue Majerus
Is there a standard for where the money goes? When is the last time we used the bonding money for the
City?
Administrator Thongyanh
The money goes in the capital fund. The last time we used conduit bonding for the street project in the
University Grove.
Steven Sunderland,1906 Prior Ave N
What are the risks for conduit bonding for the City?
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Catherine Courtney
There really are no risks, the obligation is on the borrower. New Harmony is responsible for paying the
bonds. There is no liability to the City even if there is a default per MN Statute.
Steven Sunderland
Are we leaving enough bond authority for our own needs?
Administrator Thongvanh
We have about 2 million in capacity left. Our street project will require $650K, and the park building cost
will be under a million and a half and some of this could be financed through existing funds.
Steven Sunderland
How are the conduit bond fees determined?
Administrator Thongvanh
Limited negotiation, typically they will ask other jurisdictions about their fees and try to match them with
the other entities involved in the bonding. Most communities charge a quarter of one percent.
Mayor Gustafson
Hearing no further comment, the public hearing is now closed.
Council Member Wehyee
Does this impact taxes?
Administrator Thongyanh
No.
Mayor Gustafson
The budget impact is the revenue we earn, about $18,700.
Motion by Council Member Miazga to approve Resolution 21-13;
Approved, 5-0.
2. Tax Increment Financing - Amber Union
Todd Ha en Ehlers and Associates
We're considering the modification of the development program for the development district 1. We also
have an adoption of an interfund loan agreement. Procedurally we have completed all the necessary steps
that are required by statute. The TIF district has a maximum life of 26 years and the project appears to be
consistent with the long-term economic development objectives of the City.
Pete Deanovic, Buhl Investors
Since the beginning my commitment has been to pursue all avenues for funding, and we have obtained
funding for a variety of government sources outside the City.
Administrator Thongvanh
We're hoping that in 15 years this project will be done with TIF.
Council Member Wehyee
Could you speak a little bit to the timeline? When will the project be completed?
Pete Deanovic, Buhl Investors
Subject to establishing the TIF district, we are prepared to close financing that's required. The intent is to
move forward before school is let out. We would like to begin prior to May 1, and we would like to have
units available for rental in 2022 and we believe that by the end of 2022, it will be fully occupied.
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Mayor Gustafson
We'll open the public hearing at this time.
Sue Majerus, 1381 Iowa Ave
I want to make sure that the taxes will still be received on the land value. I'd like to have more
understanding on how much money you have gotten from other entities.
Todd Hagen, Ehlers
Right now, the county assessor has assigned a base value that will be distributed to all three tax
jurisdictions.
Administrator Thongvanh
There will be improvements to the land and building, so the value will be frozen on both and the
increment captured and distributed to Buhl Investors for the duration of the agreement.
Pete Deanovic, Buhl Investors
We obtained grant funding from TBA, Environmental Relief, a Community Development Block Grant,
and DEED. One thing that can drive up expenses is material selection when working with the historical
restoration requirements.
Sue Majerus _1381 Iowa Ave
Has the building been registered as a historical building?
Pete Deanovic, Buhl Investors
It has been registered, the National Park Service issued a historical registration for the property in 2020.
All of our plans have been reviewed by NPS for historical reference and to ensure that our work is
consistent with preservation requirements.
Mayor Gustafson
Seeing no other attendees looking to speak, we will close the hearing and open discussion to the Council.
Council Member Miazga
This has been a long road, I'm excited to support this project.
Council Member Andrews
I think this is a great thing, I am glad we can participate.
Council Merin ber Wehyee
I am excited as well. It's awesome that they will begin accepting residents as early as next year.
Council Member Leehy
I'm really appreciative of Pete and his team and their tenacity in finding grants.
Mayor Gustafson
I'd like to thank Buhl Investors for their work on this. Thank you for your vision.
Motion by Council Member Leehy to approve the Resolution and to authorize the City Administrator to
execute any necessary documents;
Approved, 5-0.
F. CONSENT AGENDA:
1. General Disbursements through: 3/04/21 $37,459.56
Payroll through: 2/28/21 $19,394.24
2. Post -Issuance Compliance Policy and Procedures
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3. 6-Month Performance Evaluation for Administrative and Communication Coordinator
Ashleigh Walter
Motion by Council Member Andrews to approve the Consent Agenda;
Approved, 5-0.
G: POLICY ITEMS:
H. INFORMATION/ ANNOUNCEMENTS:
I. COMMUNITY FORUM:
J. ADJOURNMENT: 8:13 PM
Randall C. G fson, Mayor
Dated this 10th day of March, 2021
Sack Thongvanh, Lty Arministrator
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