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HomeMy WebLinkAbout01-14-2013 EDA PacketAGENDA ECONOMIC DEVELOPMENT AUTHORITY ANNUAL MEETING MONDAY, JANUARY 14, 2013 City Council Chambers Following the regular City Council Meeting 1. Call to Order and Roll Call 2. Consideration of Minutes of December 10, 2012 3. Consideration of Annual Appointments 1 EDA MINUTES December 10, 2012 DRAFT DATE : January 9, 2012 TIME STARTED : 6:15 p.m. TIME ENDED : 6:25 p.m. MEMBERS PRESENT Commissioners O'Donnell, Roeser, Reinert, Rafferty (part), Stoesz MEMBERS ABSENT : None OTHERS PRESENT: : Mary Divine, Mike Grochala The meeting was called to order at 6:15 p.m. by Acting President Roeser. CONSIDERATION OF THE MINUTES OF JANUARY 9, 2011 EDA Member Reinert moved to approve the January 9, 2012 minutes. EDA Member O'Donnell seconded the motion. Motion carried. CONSIDERATION OF RESOLUTION NO. 12-01 APPROVING AND AMENDMENT TO THE TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. 1-5 Mary Divine, Economic Development Coordinator, presented a staff report regarding an administrative amendment to Housing TIF District 1-5 to capture the full budgeted increment from the district for use in assisting affordable housing within the city. EDA Member O'Donnell moved to approve Resolution No. 12-01. EDA Member Stoesz seconded the motion. Motion carried unanimously. ADJOURNMENT There being no further business, EDA Member Reinert moved to adjourn. EDA Member O'Donnell seconded the motion. Motion carried unanimously. Meeting adjoumed at 6:25 p.m. 1 AGENDA ITEM 3 STAFF MEMBER Mary Alice Divine DATE January 14, 2013 SUBJECT Annual Appointments VOTE REQUIRED Simple Majority BACKGROUND Each year the Economic Development Authority is required by its by-laws to hold an annual meeting and to make a number of appointments. The following is a list of appointments for your consideration: 2012 2013 Recommended 1. President Rob Rafferty (Council Prerogative) 2. Vice President Dav Roeser (Council Prerogative) P 3. Treasurer ff 'Donnell ,, ,(., (Council Prerogative) 4. Seceta ry- Economic Development Coordinator Economic Development Coordinator 5. Assistant Treasurer Finance Director Finance Director 6. Executive Director City Administrator City Administrator 7. Official Newspaper Quad Community Press Quad Community Press 8. Legal Depositories Patriot Bank LMC 4M Fund Wells Fargo Securities Wells Fargo Advisors US Bank Merrill Lynch RBC Capital Markets Morgan Stanley Sterne, Agee & Leach Bank of the West Others as needed LMC 4M Fund Wells Fargo Securities Wells Fargo Advisors US Bank Merrill Lynch RBC Capital Markets Morgan Stanley Sterne, Agee & Leach F&M Bank First Resource Bank Others as needed 2012 2013 Recommended 9. Legal Services Kennedy & Graven Barna, Guzy & Steffan, Ltd. Kennedy & Graven Barna, Guzy & Steffan, Ltd. Ratwick, Roszak & Maloney Ratwi Roszak & Ma eee Br S ney e JP1k('. 0 0 Staff suggests that if changes are to be made to the appointments of President, Vice President and Treasurer, they be made in separate motions. The remaining appointments can be made in one motion. RECOMMENDATION: Staff is recommending Council prerogative or as recommended. LINO LAKES ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. 13-01 APPROVING EFFORTS TO SEEK SPECIAL LEGISLATION AUTHORIZING CONVEYANCE OF CERTAIN TAX -FORFEITED LAND TO THE LINO LAKES ECONOMIC DEVELOPMENT AUTHORITY BE IT RESOLVED By the board of commissioners of the Lino Lakes Economic Development Authority (the "EDA") as follows: Section 1. Background. 1.01. In 2004, the City of Lino Lakes (the "City"), EDA and Hartford Development Inc. entered into a Contract for Private Development for the development of the Legacy at Woods Edge development, which was proposed to include commercial development, rental housing, and owner - occupied housing (the "Legacy at Woods Edge Development"). 1.02. In support of the Legacy at Woods Edge Development, the City issued its Taxable General Obligation Improvement Bonds, Series 2005A (the "Series 2005A Bonds") in the amount of $5,550,000, to finance the costs of various public improvements necessary for the development. Assessments against certain properties within the Legacy at Woods Edge Development were proposed to pay all of the principal of and interest on the Series 2005A Bonds. 1.03. In 2006, in furtherance of a cooperative program entered into under the Minnesota Statutes, Sections 471.15 to 471.191 (the "Recreation Act"), the City and the YMCA of Greater St. Paul ("YMCA") entered into an Amended and Restated Development Agreement (the "Development Agreement") relating to the construction and operation of an approximately 45,000 square foot recreational facility in the City (the "Facility") to be located on property within the Legacy at Woods Edge Development. Under the Development Agreement, the City agreed to contribute $2,350,000 toward construction of the Facility. The City subsequently issued its General Obligation Tax Abatement Bonds, Series 2006C (the "Series 2006C Bonds"), in the principal amount of $2,460,000, to finance the City's contribution for the costs of constructing the Facility. Abatements of certain properties within and adjacent to the Legacy at Woods Edge Development were proposed to pay the principal amount of and a portion of the interest on the Series 2006C Bonds. 1.04. In 2009, sixteen parcels of property within the Legacy at Woods Edge Development (not including the YMCA property) were foreclosed on by the Developer's lenders. Of the foreclosed property, five of the parcels are located within the City's Tax Increment Financing District No. 1-11 (the "TIF District") and ten of the parcels are subject to the abatement described in Section 1.03 above. Tax increments from the TIF District are pledged to the payment of the City's General Obligation Tax Increment Bonds, Series 2007A (the "Series 2007A Bonds") issued in the amount of $4,215,000, to finance improvements to the I-35W/Lake Drive Interchange. 1.05. In 2010, following the foreclosure of the sixteen parcels of property within the Legacy at Woods Edge Development, the lenders determined that the outstanding special assessments and delinquent taxes on the sixteen parcels exceeded the market value of the properties, and those properties were tax forfeited. 1.06. The City and EDA continue to market the property within the Legacy at Woods Edge Development to private developers in order to get the properties back into the hands of private owners and to complete the redevelopment process originally commenced in 2004. Returning these properties to private ownership will result in special assessments being paid and property taxes being collected. In turn, the special assessments, abatements, and tax increments derived from the properties can be used by the City to pay debt service on the Series 2005A Bonds, the Series 2006C Bonds, and the Series 2007A Bonds. 1.07. Minnesota Statutes, Section 282.01, Subd. la allows the EDA to purchase tax - forfeited properties for fair market value, and proceeds received by the County are applied first to pay county administrative costs and second to pay special assessments that were outstanding at the time of forfeiture. However, that process is time-consuming and cumbersome, and the amount the of county administrative costs is not determined until the end of each year, creating uncertainty in the amounts developers will be required to pay. 1.08. The City and EDA have therefore determined to seek special legislation in the 2013 legislative session that would direct conveyance of the tax -forfeited properties within the Legacy at Woods Edge Development to the EDA without monetary consideration. 1.09. The proposed special legislation would require that, when the EDA sells a parcel to private party, it must return to the County 10% of the gross proceeds from sale of the parcel. This would occur only if the EDA is able to sell for a price in excess of the special assessments that were in place at forfeiture. 1.10. The EDA is in the process of negotiating a letter of intent with owners of the existing assisted living facility within the Legacy at Woods Edge Development, and with Anoka County, regarding an adjacent tax -forfeited parcel (Outlot A) to be acquired by that entity for expansion of its facility; and that parcel will be excluded from the special legislation. 1.11. The EDA has determined that enactment of the special legislation described above is necessary to complete the ongoing redevelopment of the Legacy at Woods Edge Development. Section 2. Approval of Special Legislation. 2.01. The EDA board hereby approves efforts to obtain special legislation in the 2013 legislative session that would authorize the EDA to acquire all the tax -forfeited properties in the Legacy at Woods Edge Development (except Outlot A) for no consideration, as described above. 2.02. EDA officials, staff and consultants are hereby authorized and directed to take any and all other steps necessary or convenient in order to obtain approval of the special legislation 419362v1 SJB LN140-80 2 described in this resolution. Adopted by the board of commissioners of the Lino Lakes Economic Development Authority this 25h day of February, 2013. ATTEST: / (e'l� ✓��' lam^ Mary Alice DiW(ine Secretary 419362v1 SJB LN140-80 3 Dave Roeser, President A bill for an act relating to the County of Anoka and the City of Lino Lakes Economic Development Authority; authorizing conveyance of certain tax- forfeited land BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: Section 1. [Conveyance of property.] Notwithstanding the provisions of Minnesota Statutes, section 282.01, subdivision la, Anoka County shall convey to the city of Lino Lakes Economic Development Authority all of the following tax -forfeited parcels: 17-31-22-11-0002, 17-31-22-12-0051, 17-31-22-12-0053, 17-31-22-12-0059, 17-31-22-12-0060, 17-31-22-12-0063, 17-31-22-13-0049, 17-31-22-13-0053, 17-31-22- 13-0054, 17-31-22-13-0055, 17-31-22-13-0056, 17-31-22-13-0057, 17-31-22-24-0062, 17-31-22-24-0063, 17-31-22-24-0064. No monetary compensation or consideration is required for, and no conditions attach to, the conveyance except as provided in section 2. The commissioner of revenue must convey the property on behalf of the state by quit claim deed. Sec. 2 [Condition of conveyance.] The deed for the parcels described in section 1 must contain a restrictive covenant providing that upon resale by the City of all or any portion of those parcels to a non -governmental entity, the Lino Lakes Economic Development Authority shall pay to the County ten percent of the gross sale proceeds from such sale. The term "gross sale proceeds" means the purchase price negotiated between the Lino Lakes Economic Development Authority and buyer, excluding the amount of special assessments reinstated by the City of Lino Lakes and payable by buyer upon or after closing, and excluding any other closing costs payable by buyer. The County shall apply such proceeds received from the Lino Lakes Economic Development Authority in accordance with section 282.08. The restrictive covenant for any parcel shall expire 30 years after the date of the deed. Sec. 3 [Timing.] The deed for conveyance of the property described in section 1 shall be delivered by the Minnesota Department of Revenue to the County of Anoka for recording by no later than 90 days after the effective date of this act. Sec. 4. [EFFECTIVE DATE]. This act is effective upon compliance by the respective governing bodies of the county of Anoka and the Lino Lakes Economic Development Authority with the requirements of Minnesota Statutes, 645.021, subdivision 3. 417810v5 SJB LN140-80