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Home My WebLink About2/10/2020 EDA PacketLINO LAKES ECONOMIC DEVELOPMENT AUTHORITY MEETING Monday, February 10, 2020 Immediately Following Regular City Council Meeting City Council Chambers 1. Call to Order and Roll Call 2. Consideration of Minutes of July 22, 2019 3. Action Items A) Consideration of 2020 Annual Appointments B) 2019 Annual Report 4. Adjourn EDA MINUTES July 22, 2019 DRAFT 1 DATE : July 22, 2019 TIME STARTED : 6:55 p.m. TIME ENDED : 7:08 p.m. MEMBERS PRESENT : EDA Members Stoesz, Reinert, Rafferty, Maher, Manthey MEMBERS ABSENT : None OTHERS PRESENT: : Community Development Director Michael Grochala; City Administrator Jeff Karlson; City Clerk Julie Bartell The meeting was called to order at 6:55 p.m. by EDA President Maher. CONSIDERATION OF THE MINUTES OF FEBRUARY, 2019 February 11, 2019 Economic Development Authority (EDA) Member Stoesz moved to approve the minutes as presented. EDA Member Maher seconded the motion. Motion carried on a voice vote. ACTION ITEMS A. Lyngblomsten Senior Community: i. Consider Resolution No. 19-01, Approving Tax Increment Financing Plan for District 1-13 – Community Development Director Grochala reviewed the written report that includes information on elements of the proposed project, how the project has come forward to the council, developer’s request for financial assistance for the project in the form of tax increment financing, and elements of the City’s proposal to provide tax increment financing for the project. Mr. Grochala reviewed the total amount available for increment and the proposal for providing tax increment ($3.2 million). The City Council held a public hearing on this and no public comment was received. The Plan was approved at that time. He noted that the council is currently being asked to consider a contract for private developmenet which lays out the details for the assistance provided. He reviewed how increment will be provided. He noted that staff has continued to have discussions about the valuation figures and a change is noted in the report. Julie Eddington, Kennedy and Graven, public finance counsel, addressed the council. She offered a reminder that the independent and skilled living will include 20% affordable units. She noted provisions in the contract that could reduce the tax increment note: lower construction costs and/or costs are lower for the later developed skilled nursing element, and/or if the developer sells their land around the facility at a profit. In the minimum assessment agreement, the number will be increased after the meeting and prior to execution of the contract. EDA Member Reinert noted the council’s request that construction costs be followed. Community Development Director Grochala said they have WSB reviewing the numbers and will also have BakerTilly providing auditing services; there will be review prior to submittals. ii. Consider Resolution No. 19-02, Approving Contract for Private Development EDA MINUTES July 22, 2019 DRAFT 2 EDA Member Manthey moved to approve Resolution No. 19-01 as presented. EDA Member Stoesz seconded the motion. Motion carried on a voice vote. EDA Member Reinert moved to approve Resolution No. 19-02, to include the newly introduced valuation presented by staff. EDA Member Manthey seconded the motion. Motion carried on a voice vote. ADJOURNMENT There being no further business for consideration, the meeting was adjourned at 7:08 p.m. LINO LAKES ECONOMIC DEVELOPMENT AUTHORITY AGENDA ITEM 3A STAFF ORIGINATOR: Michael Grochala MEETING DATE: February 10, 2020 TOPIC: Consideration of 2020 Annual Appointments VOTE REQUIRED: Simple Majority BACKGROUND The Economic Development Authority (EDA) was established in 1990 pursuant to Minnesota Statutes, Chapter 469. The EDA is governed by a board of commissioners consisting of the City Council. 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: Position 2019 2020 Recommended 1. President Melissa Maher TBD 2.Vice President Dale Stoesz TBD 3. Treasurer Rob Rafferty TBD 4. Secretary Community Development Director Community Development Director 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 LMC 4M Fund Wells Fargo Securities Wells Fargo Advisors US Bank RBC Capital Markets Morgan Stanley F&M Bank First Resource Bank Others as needed First Resource Bank LMC 4M Fund Wells Fargo Securities Wells Fargo Advisors US Bank RBC Capital Markets Moreton Capital Markets F&M Bank Others as needed Position 2019 2020 Recommended 9. Legal Services Kennedy & Graven Rupp, Anderson, Squires & Waldspurger Kennedy & Graven Rupp, Anderson, Squires & Waldspurger Staff suggests that the appointments of President, Vice President and Treasurer be made in separate motions. The remaining appointments can be made in one motion. RECOMMENDATION Staff is recommending Board prerogative or as recommended. ATTACHMENTS 1. Past appointments 2013 - 2019 EDA Advisory Board (2013-2019) 2013 • President – Dave Roeser • Vice President – Jeff O'Donnell • Treasurer – Dale Stoesz • Secretary – Economic Development Coordinator • Assistant Treasurer – Finance Director • Executive Director – City Administrator • Official Newspaper – Quad Community Press • Legal Depositories – 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 • Legal Services – Kennedy & Graven, Barna, Guzy & Steffan, Ltd., Ratwik, Roszak & Maloney, Deck, Duea & Olson 2014 • President – Dave Roeser • Vice President – Dale Stoesz • Treasurer – William Kusterman • Secretary – Community Development Director • Assistant Treasurer – Finance Director • Executive Director – City Administrator • Official Newspaper – Quad Community Press • Legal Depositories – 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 • Legal Services – Kennedy & Graven, Barna, Guzy & Steffan, Ltd., Ratwik, Roszak & Maloney, Deck, Duea & Olson 2015 • President – Dave Roeser • Vice President – Dale Stoez • Treasurer – William Kusterman • Secretary – Community Development Director • Assistant Treasurer – Finance Director • Executive Director – City Administrator • Official Newspaper – Quad Community Press • Legal Depositories – 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 • Legal Services – Kennedy & Graven, Ratwik, Roszak & Maloney 2016 • President – William Kusterman • Vice President – Rob Rafferty • Treasurer – Michael Manthey • Secretary – Community Development Director • Assistant Treasurer – Finance Director • Executive Director – City Administrator • Official Newspaper – Quad Community Press • Legal Depositories – 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 • Legal Services – Kennedy & Graven, Ratwik, Roszak & Maloney 2017 • President – Rob Rafferty • Vice President – Michael Manthey • Treasurer – Melissa Maher • Secretary – Community Development Director • Assistant Treasurer – Finance Director • Executive Director – City Administrator • Official Newspaper – Quad Community Press • Legal Depositories – LMC 4M Fund, Wells Fargo Securities, Wells Fargo Advisors, US Bank, RBC Capital Markets, Morgan Stanley, F&M Bank, First Resource Bank, Others as needed • Legal Services – Kennedy & Graven, Ratwik, Roszak & Maloney 2018 • President – Michael Manthey • Vice President – Melissa Maher • Treasurer – Dale Stoesz • Secretary – Community Development Director • Assistant Treasurer – Finance Director • Executive Director – City Administrator • Official Newspaper – Quad Community Press • Legal Depositories – LMC 4M Fund, Wells Fargo Securities, Wells Fargo Advisors, US Bank, RBC Capital Markets, Morgan Stanley, F&M Bank, First Resource Bank, Others as needed • Legal Services – Kennedy & Graven, Ratwik, Roszak & Maloney 2019 • President – Melissa Maher • Vice President – Dale Stoesz • Treasurer – Rob Rafferty • Secretary – Community Development Director • Assistant Treasurer – Finance Director • Executive Director – City Administrator • Official Newspaper – Quad Community Press • Legal Depositories – LMC 4M Fund, Wells Fargo Securities, Wells Fargo Advisors, US Bank, RBC Capital Markets, Morgan Stanley, F&M Bank, First Resource Bank, Others as needed • Legal Services – Kennedy & Graven, Rupp, Anderson, Squires & Waldspurger LINO LAKES ECONOMIC DEVELOPMENT AUTHORITY AGENDA ITEM 3B STAFF ORIGINATOR: Michael Grochala MEETING DATE: February 10. 2020 TOPIC: 2019 Annual Report VOTE REQUIRED: 3/5 BACKGROUND Each year staff is required to provide a recap of the prior year activities undertaken by the board. In 2019, the EDA undertook the following activities: 1. Approved the establishment of Tax Increment Financing Plan for District 1-13 (Lyngblomsten Senior Housing). 2. Approved the Contract for Private Development with Lyngblomsten. Overall, the City continued to see substantial development activity in 2019. 114 new residential permits were issued in 2019. Total building permit valuation was approximately $42 million. Staff is also reporting that no modifications to the EDA enabling resolution are needed or proposed. RECOMMENDATION Staff is recommending that the EDA accept the report. ATTACHMENTS 1. Enabling Resolution