HomeMy WebLinkAbout06.05.18 Minutes
Page 1 of 2
CITY OF LAKE ELMO ECONOMIC DEVELOPMENT AUTHORITY MINUTES June 5, 2018
Call to Order/Roll Call President Nelson called the meeting to order at 6:00 P.M.
PRESENT: John Thompson, Linda Larson, Mark Gaertner, Steve Nelson, John Schiltz
ABSENT: Jill Lundgren, Mike Pearson, Anne Cohen and Dan Raleigh
Staff Present: City Administrator Handt, Finance Director Iverson, Tammy Omdahl from Northland Securities.
Approval of September 21, 2017 Minutes
Motion by Schiltz, seconded by Thompson to approve the September 21, 2017 minutes. Motion passed.
Purchase/Lease and Bonding of 3880 Laverne Ave N
Administrator Handt provided the background with respect to the process the City went through to
purchase a new building and land for a city hall and fire station. Council did not want to draw down
fund balance by paying cash for the $875,000 purchase so they looked to borrow funds. Since tenants
were to remain in the building for a period of time, general obligation bonds are not allows under
statute. Instead the city was looking to use the EDA’s statutory powers to issue taxable bonds. The EDA
would own the building but would lease it back to the city with annual rent payments being equal to the
annual bond payments. The city would be responsible for all other costs and could sublease to the
other tenants. Northland recommended the bonds be sold to Lake Elmo Bank at a 4.5% interest with a
15 year term that was callable at any time.
EDA members asked a number of questions about the project, financing, liability and future plans.
General agreement that the financing of the purchase was a good deal even if there were still concerns
with future project costs.
Motion by John Thompson, seconded by Gaertner to Approve resolution No. 2018-001, Relating to
$926,000 Taxable Public Property Project Lease Revenue and Limited Tax Bonds, Series 2018A,
Authorizing Issuance, Awarding Sale, Providing Security and Authorizing Execution of Documents.
Motion passed 4-0-1 with Schiltz abstaining due to being on the board of Lake Elmo Bank.
Motion by Larson, seconded by Gaertner to approve the lease purchase agreement between the EDA
and City of Lake Elmo. Motion passed.
Staggered Terms
The City Council approved Resolution No 2013-05 in February of 2013. This resolution established the
Economic Development Authority of the City of Lake Elmo. Under section 2 it states: “Terms shall be
staggered as follows: (1) member serves a one-year term; (2) members serve a two-year term; (2)
members serve a three-year term.” When appointments were first made later in 2013, there was no
indication of how the terms would be staggered. After feedback from members, staff proposed the
terms be staggered as follows:
Commissioner: Term Ending:
John Schiltz 12/31/18
John Thompson 12/31/19
Page 2 of 2
Steve Nelson 12/31/19
Dan Raleigh 12/31/2020
Anne Cohen 12/31/2020
After this, members would be appointed for six year terms. Larson and Gaertner were appointed as
alternates in 2014 for six year terms.
Motion by Thompson, seconded by Schiltz to recommend the approval of the staggered terms as
presented. Motion passed.
Commissioner Reports
None
Director Report
Handt mentioned a number of developments that would be seeking approval soon in the I-94 corridor
and that the Comp Plan draft had been sent out for adjacent jurisdictional review.
Next Meeting Date and Agenda Fall TBD
Adjourn Meeting adjourned at 6:555 P.M. Respectfully Submitted, Kristina Handt