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HomeMy WebLinkAbout04/06/2023 EDAC Minutes APPROVED MINUTES CITY OF LINO LAKES ECONOMIC DEVELOPMENT ADVISORY COMMITTEE MINUTES DATE: April 6, 2023 TIME STARTED: 8:01 a.m. TIME ENDED: 9:03 a.m. MEMBERS PRESENT: Andrew Cravero, Blakely LaCroix, Chad Wagner, Patrick Kohler, Steve Marchek, Nathan Vojtech, Jim Schueller, Keith Hembre MEMBERS ABSENT: Julie Jeffrey-Schwartz, Don Johnson STAFF PRESENT: Michael Grochala, Julie Whitney 1. CALL TO ORDER Mr. Schueller called the Economic Development Advisory Committee meeting to order at 8:01 a.m. on April 6, 2023. 2. APPROVAL OF MINUTES Mr. Schueller asked for one correction to be made to the minutes. Mr. Cravero made a motion to approve the March 2, 2023 meeting minutes with the correction. Motion was supported by Mr. Vojtech. Motion carried 8-0. 3. DISCUSSION ITEMS A. Anoka County HRA/EDA Participation Mr. Grochala opened the meeting by discussing how to identify potential redevelopment areas and being able to acquire them when they become available. He introduced Ms. Karen Skepper, Director of Community & Government Relations in Anoka County who would be discussing the county’s HRA & EDA programs. Anoka County Commissioner Jeff Reinert was also in attendance. Ms. Skepper reviewed the history of the HRA and how it evolved to what it is today and how it has helped 14 cities in Anoka County. She said the level of County involvement is different for each City and based upon their need. Ms. Skepper said funding for this program could be in the form of a levy to be collected through the County to fund HRA and EDA activity. Key points of discussion were: • The expected property levy amount is 0.0185 of the taxable market value. • 15% administrative fee is charged to offset the cost of the Economic Development staff. Economic Development Advisory Committee April 6, 2023 Page 2 APPROVED MINUTES • Easy access to monies when a property becomes available for purchase. The only requirement to access the money is a resolution from City Council. Ms. Skepper said she would also need to know what the project is to ensure it is eligible according to state law. • Funding can be cross-allocated between cities via a loan agreement. • The Board questioned if the funds could be used for open space initiatives. Ms. Skepper will look into it and circle back with Mr. Grochala. • Annual money received from the levy would generate around $380,000. • The County is currently undertaking a comprehensive housing analysis that will be completed for each City in Anoka County. This is funded by the administrative fee that is assessed for this program. The information collected can be used by developers who are looking at areas to establish their business and is an added benefit to the City. • Money from the HRA and EDA program can be used for housing or economic development. • The Board questioned if we could remove ourselves from the program once development balance has been achieved. Mr. Grochala said he would need to look further into it. • The Board voiced concern that the money needs to be used efficiently and should not sit in an account for an extended period. • The Board wanted to know the percentage we would receive if we loaned money to other cities. Ms. Skepper said she would need to investigate it. Mr. Grochala said the next step would be to look at what the funds would be used for, compile a pro and con list for the best ways to fund it, and determine what the return looks like on the investment. The Board agreed to move forward with further discussion and research. When asked about implementation, Mr. Grochala advised it would be the better part of this year to get the program set up and the levy collectible by 2025. Ms. Skepper stated if we bought into the program, and a project became available, we could get some assistance from the County or other Cities. Ms. Skepper stated that she would work with the Finance Director to put some numbers together on what the levy would look like for our City and what a rate of return would look like. 4. ADJOURNMENT Mr. Cravero made a motion to adjourn the meeting at 9:03 a.m. Motion was supported by Mr. Vojtech. Motion was carried 8-0. Respectfully submitted, Julie Whitney, Community Development Administrative Assistant