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EDC Minutes � r
<br /> • April 19, 2002 App rove
<br /> Page 2
<br /> • chambers are happening both regionally and nationally. At the March 28th Board meeting, four
<br /> options were considered: Status quo(no change); cease operations or disband; reorganization
<br /> (reduce overhead); and merge with another chamber. A survey of chamber members revealed
<br /> that none selected options one and two, 14 selected option three (reorganization), and 28
<br /> selected option four(merge).
<br /> In looking at merger candidates, the Chamber Board is considering three: Southern Anoka
<br /> (Spring Lake Park, Fridley, and Columbia Heights), Metro North (Coon Rapids and Blaine),and
<br /> St. Paul Area (inc. St. Paul, Roseville, Maplewood,White Bear Lake, Little Canada, Shoreview,
<br /> Vadnais Heights, North Oaks, etc.). Joint meetings with Board members were held on 4/11 (St.
<br /> Paul),4/12 (So. Anoka), and 4/15(Metro No.). Backman attended the latter two. All three have
<br /> strengths and are interested in the merger. Jim Witkowski,NB-MV President,prepared a merger
<br /> matrix that compared the three chambers in terms of members,financial, programmatic activity,
<br /> committee activity, member activity, fundraising, public policy, board, staff, and gaming
<br /> experience. St. Paul Area has 2,200, Southern Anoka has 341, and Metro North has 774
<br /> members. The NB-MV Chamber Board will consider the merger options at its April 25th meeting
<br /> at the Pratt Ordway Building.
<br /> Mayor Sonterre spoke positively about the North Metro Chamber and has attended several of
<br /> their events. North Metro is politically well-connected and reaches out to all levels of
<br /> government. It has organized luncheons with major speakers,including Gov.Ventura,that are of
<br /> interest to the membership.
<br /> Field mentioned that the 4th Annual Chamber Golf Tournament will be held at Brightwood Hills
<br /> Golf Course on May 16th. The public and Chambers members are encouraged to participate.
<br /> •
<br /> D. Report of Staff:
<br /> 1. TIF Cash Flow Analysis: Backman reviewed a memo recently prepared by Shelly Eldridge,
<br /> Ehlers & Assoc., that will be presented to the City Council on Monday, April 22"d. The
<br /> purpose of the cash flow analysis is to provide the City of Mounds View a picture of the
<br /> financial health of the Tax Increment Financing (TIF)districts, as well as opportunities and
<br /> options to consider. Backman noted that there are three active TIF districts in the City. All
<br /> three were created before 1990 when the state placed more restrictions on new TIF districts.
<br /> In 2001 legislative changes regarding property taxes had a major impact on revenues. It is
<br /> projected that there will be a 35% reduction in increment available for Pay 2002. The
<br /> increment for District 1,for example, is projected to fall from$1.5 million to$1.0 million. The
<br /> increment is used to pay a$1.1 million bond payment. Hence,a cash flow problem for2002.
<br /> Fortunately that bond is paid off in 2003 and the cash flow situation improves. Backman
<br /> discussed the three primary obligations for the districts: 1) paying off the 1994, 1996A& B
<br /> bonds, 2) the annual EDA operational budget, and 3) various developer payments for TIF
<br /> projects. In the files e-mailed to the Commissioners were cash flows for each district and an
<br /> overall summary of all three districts by year, as well as the cumulative effect of the
<br /> obligations and revenue projections. Due to the class rate compression that decreased the
<br /> increment revenues, it is projected that there will be a $222,000 deficit in 2002. This will
<br /> require interfund borrowing,that is a loan from an EDA or other City fund. Shelly will make a
<br /> presentation at the City Council meeting on Monday night. Backman also pointed out that
<br /> increment may have to go back to Ramsey County as early as 2005/6 unless another
<br /> significant development project occurs that requires increment. Johnson inquired about the
<br /> developer payments situation. Backman indicated that discussions continue. Everest met
<br /> with John Evans, Co. Appraiser, seeking to reallocate the building valuation. Ramsey
<br /> County agreed to place 39% on the north parcel and 61% on the south parcel. The total
<br /> valuation remains the same and only applies to the future (Pay 2003).
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