|
EDC Minutes
<br />April 19, 2002
<br />Page 2
<br />
<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 />
<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 />
<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 />
<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 />
<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 22nd. 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 for 2002.
<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).
|