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Home My WebLink About2000 EDC � cr®v®¢ Minutes of the Economic Development Commission City of Mounds View, Council Chambers • City of Mounds View Ramsey County, Minnesota Regular Meeting January 20th, 2000 2401 Highway 10, Mounds View, MN 55112 1. Call to Order: The meeting was called to order at 6:12 p.m. by Chairperson Cindy Carlson. p� 2. Roll Call: Members Present: Cindy Carlson, Tom Field, Rosemary Goff(Arrived Late), Wendy Marty, Julie Olsen, Sean Walther, and EDA Liaison Dan Coughlin. Members Absent: Dr. Gregory Belting Staff Present: Community Development Director Rick Jopke and Economic Development Coordinator Aaron Parrish. 3. Approval Of Minutes: Motion/Second: Walther/Marty moved to approve the minutes from August 26th, 1999. • Motion Carried: 5 Ayes 0 Nays Commissioner Goff was not present at this time. 4. Special Business Chairperson Cindy Carlson welcomed EDA Liaison Dan Coughlin and Economic Development Coordinator Aaron Parrish. 5. EDC BUSINESS A. Election of 2000 Chairperson and Vice Chairperson The Mounds View Municipal Code Chapter 408.07, Subdivision 1 entitled Economic Development Commission, Organization states that"at the first regular meeting of the year, the Commission shall appoint a chairperson from among its voting members and that this appointment shall be subject to Authority approval and shall consist of a one year term". Motion/Second: Carlson/Walther moved to approve the appointment of Tom Field as Chairperson for 2000. Motion Carried 5 ayes 0 nays Commissioner Goff not present at this time. • Motion/Second: Walther/Marty moved to approve the appointment of Julie Olsen as Vice Chairperson for 2000. N:\DATA\GROUPS\ECONDEV\EDC\Minutes\Min00\January.doc Motion Carried 5 ayes 0 nays Commissioner Goff not present at this time. it® ®� B. Consideration of Resolution No. 00-EDC-28 Accepting the 1998 Calendar of EDC Meetings After a discussion regarding various options for the December meeting it was determined that the December meeting would tentatively be scheduled for the 21 S, or the third Thursday in December. It was agreed that a final date would be set at the October meeting. Motion/Second: Carlson/Field moved to approve Resolution No. 00-EDC 28 Establishing a Calendar of Meetings for 2000 as amended. Motion Carried 5 ayes 0 nays Commissioner Goff not present at this time. C. Project Updates Community Development Director Rick Jopke updated the Commission on a land swap with TOLD Development Company. He pointed out that TOLD is interested in developing a Walgreens at the intersection of Edgewood and Highway 10. Director Jopke updated the Commission on the status of the Mermaid Hotel and Banquet facility. Economic Development Coordinator discussed two letters that had been received by the • City. First, he pointed out that Liberty Check Printers is currently in the process of consolidating their Twin Cities offices into one campus. Second, Coordinator Parrish indicated that Vicom would be leaving the Mounds View Business Park and relocating to Chaska. 6. Reports From Chair, Commissioners and Staff: Coordinator Parrish announced that a Commission Appreciation Dinner will take place at approximately 6:00 p.m., March 2nd at the Mounds View Community Center. More details will follow. 7. Adjournment There being no further business before the Commission, this meeting of the Economic 1111) Development Commission adjourned at 6:44 p.m. Respectfully Submitted, Aaron Parrish Economic Development Coordinator N:\DATA\GROUPS\ECON DEV\EDC\Minutes\Min00\January.doc ECONOMIC DEVELOPMENT COMMISSION 2001 WORK PLAN • Mission Statement: The Economic Development Commission shall serve as an advisory body to the Economic Development Authority to promote a positive economic climate and revitalize the community by developing programs to retain and expand existing businesses, attract desirable new businesses, and redevelop target areas in the City. Action Steps: 1. Review and make recommendations to the EDA on programs and opportunities to enhance business development and retention. 2. Recognize Highway 10 redevelopment as an important element in the positive economic vitality of Mounds View;Assist in communicating with businesses regarding the forthcoming County Highway 10 Plan. 3. Evaluate the effectiveness of the Business Improvement Partnership Loan Program and make recommendations for revisions to the Program to meet the needs of the business community. 4. Evaluate staff research on innovative programs of other metro area cities as it relates to development, redevelopment and housing rehabilitation. 5. The Economic Development Commission will work cooperatively to coordinate the goals of the respective commissions. 6. Annually monitor and provide input on the Mounds View Housing Replacement Program and other housing initiatives. Evaluate the effectiveness of housing program as a tool in providing the community with affordable 4110 and life cycle housing and generating positive long-term economic growth. Ensure that any housing program using TIF meets the requirements under the Mounds View's Tax Increment Plan. 7. Advocate continued staff involvement in the New Brighton/Mounds View Area Chamber of Commerce to provide a framework for the evaluation of business concern and to help support a positive business climate. Encourage the participation of the business community in Chamber activities. 8. Participate with staff in at least one business retention visit per quarter. 9. Because the work of the I-35W Corridor Coalition could have a positive economic impact on the development and redevelopment of the City of Mounds View, the EDC would advocate for staff to provide an annual report on the status of the Coalition and provide input on the Coalition strategies as needed. 10. Communicate on a regular basis with the public on the Economic Development Commission activities, encouraging written or verbal comment,through the City Newsletter, cable and other interactive avenues. 11. In conjunction with the County Highway 10 planning process, update the City's"Economic Development Plan." 12. Assess the use of the franchise fee in Mounds View particularly as it relates to businesses. 13. Be aware of intergovernmental affairs, particularly at the state level, regarding issues effecting local economic development. 4111 N:\DATA\GROUPS\ECONDEV\EDC\Commission Information\Workplan 2001.doc �1:1=) o^®d®� Minutes of the Economic Development Commission • City of Mounds View Ramsey County, Minnesota Regular Meeting February 24th, 2000 City of Mounds View, Council Chambers 2401 Highway 10, Mounds View, MN 55112 1. Call to Order: The meeting was called to order at 7:35 A.M. by Chairperson Tom Field. 2. Roll Call: Members Present: Dr. Greg Belting, Cindy Carlson (Arrived Late), Tom Field, Rosemary Goff, Julie Olsen, Sean Walther, and EDA Liaison Dan Coughlin. Members Absent: Wendy Marty Staff Present: Economic Development Coordinator Aaron Parrish. 3. Approval Of Minutes: Motion/Second: Walther/Goff moved to approve the minutes from January 20th, 2000. • Motion Carried: 5 Ayes 0 Nays Commissioner Carlson was not present at this time. 4. Special Business Dr. Greg Belting was welcomed to the Commission and subsequently took the Oath of Office 5. EDC BUSINESS A. Adopt 2000 Bylaws Motion/Second: Goff/Walther moved to approve the bylaws as presented Motion Carried 5 ayes 0 nays Commissioner Carlson was not present at this time. B. Develop and adopt a "2000 Work Plan" In the past, work plans have been developed to guide the work of the economic development commission After reviewing and modifying components of past work plans and a preliminary 2000 Work Plan, a plan was developed to reflect the present direction of the Commission. After modifying the prelimnary"2000 Work Plan,"the following motion was advanced: • N:\DATA\GROUPS\ECON DEV\EDC\Minutes\Min00\February.doc Motion/Second: Carlson/Goff moved to adopt the 2000 Work Plan as amended. • Motion Carried 6 ayes 0 nays C. Business Subsidy Policy The"1999 Business Subsidies Law"(Minnesota Statutes § 116J.993 through §116J.995) requires communities to develop and adopt a business subsidy policy for all subsidies/incentives granted after August 1st, 1999. In accordance with this legislation, communities granting incentives are required to pass a"Business Subsidy Policy"to assist in the development of "Business Subsidy Agreements."After discussion of the issue,Commissioner Olsen moved to table discussion of the"Business Subsidy Policy"to a future meeting. There being no second, the motion was not acted upon. The following motion was presented and seconded: Motion/Second: Carlson/Walther moved to adopt the"Business Subsidy Policy" as presented. Motion Carried 5 ayes 1 nay Commissioner Olsen's dissent was based on a variety of factors including: policy's lack of conformity with enabling legislation, inadequate information on which to make a decision, and the broad nature of the policy as constructed. 6. Reports From Chair, Commissioners and Staff: A. Coordinator Parrish announced that a Commission Appreciation Dinner will take place at approximately 6:00 p.m., March 2nd at the Mounds View Community Center. More details will follow. B. Coordinator Parrish announced that the City has received several inquiries from the Minnesota Office of the State Auditor regarding the use of tax increment finance. Additional information will be disseminated as it becomes available. 7. Adjournment There being no further business before the Commission, this meeting of the Economic Development Commission adjourned at 8:43 a.m. Respectfully Submitted, 7 / ;?� Aaron Parrish Economic Development Coordinator • N:\DATA\GROUPS\ECONDEV\EDC\MINUTES\MIN00\FEBRUARY.DOC 2 cr® ®cc=t1 Minutes of the Economic Development Commission • City of Mounds View Ramsey County, Minnesota Regular Meeting April 27th, 2000 City of Mounds View, Council Chambers 2401 Highway 10, Mounds View, MN 55112 1. CALL TO ORDER: The meeting was called to order at 7:37 a.m. by Chairperson Tom Field. 2. ROLL CALL: Members Present: Dr. Greg Belting, Cindy Carlson, Tom Field, Rosemary Goff, and EDA Liaison Dan Coughlin. Members Absent:Wendy Marty and Sean Walther Staff Present: Economic Development Coordinator Aaron Parrish and Community Development Director Rick Jopke. 3. APPROVAL OF MINUTES: Motion/Second: Goff/Carlson moved to approve the minutes from February 24th, 2000. 411 Motion Carried: 4 Ayes 0 Nays 4. SPECIAL BUSINESS A. Election of Vice President Motion/Second: Carlson/Belting nominated Commissioner Rosemary Goff for the position of Vice President Motion Carried 4 ayes 0 nays 5. REPORT OF COMMISSIONERS, STAFF AND EDA LIAISON A. Commissioner and EDA Liaison Reports EDA Liaison Dan Coughlin indicated that the EDA anticipated appointing a new commission member at the May 8th meeting. B. NB-MV Chamber of Commerce Update Carol Frey, President of the NB-MV Area Chamber of Commerce provided the Commission with information on the Chamber's recent activities. President Frey indicated that the Chamber is currently planning a golf tournament, preparing for the annual "Business of the Year"awards, and arranging the Chamber's Gala event. • C. NB-MV Chamber of Commerce Charitable Giving Request N:ADATA\GROUPS\ECONDEV\EDC\Minutes\Min00\04-27-00.doc Coordinator Parrish discussed a grant request submitted to the NB—MV Area Chamber of Commerce. The request was for$3500 and includes funding for an intern and economic 411 development marketing materials. D. Highway 10 Issues Director Jopke informed the Commission of an upcoming study regarding Highway 10. The study will be conducted by Springsted Public Finance Advisors and will incorporate previous studies, address potential financing options, and highlight action steps. Director Jopke indicated that a subcommittee comprised of city commissions, local business representatives, and other members of the community will meet on May 10th or 11tH E. Project Updates Coordinator Parrish updated the Commission on the Mermaid Hotel and Banquet Center and Walgreens developments. He indicated that the Mermaid had recently acquired an adjacent parcel of property, and has an option on an additional parcel of property. With regards to Walgreens, Coordinator Parrish indicated that preliminary plans have been received that incorporates a restaurant. F. May 15th Business Lunch EDA Liaison Coughlin announced that he will be holding a business luncheon in conjunction with the NB—MV Chamber of Commerce on May 15th, at 12:00 p.m. in Council Chambers. 6. EDC BUSINESS • A. Options for 2901 Highway 10 Based on a request at a previous EDC meeting and direction from the EDA, Coordinator Parrish highlighted three potential options to address the current condition of 2901 Highway 10. Options presented included purchasing the property, active code enforcement, and demolition assistance. After discussing the aforementioned options, a motion was made to recommend the provision of demolition assistance for 2901 Highway 10 to the EDA: Motion/Second: Goff/Carlson Motion Carried 4 ayes 0 nays B. Tax Increment Finance Policy Revisions After reviewing the Tax Increment Finance policy as presented, the following modifications were suggested: 1. Commissioner Goff and Carlson suggested that the EDC and EDA be incorporated into item 3 of"Pooled Funds' section to further define who decides on future development needs. 2. Commissioner Carlson suggested adding an item number 4 to the"Pooled Funds" section. It was suggested that this additional item further define the EDC's role in relation to the return of pooled increment to the respective taxing jurisdictions. More specifically, the EDC would review any proposed return of pooled increment. 3. Regarding "Parcel Decertification," EDA Liaison Dan Coughlin suggested that an item 3 be added to further define the EDC's role in relation to the decertification of particular parcels within existing tax increment finance districts. More specifically, the EDC would review any proposed parcel decertification. 4. Chairperson Tom Field addressed the need for a section discussing the establishment of new tax increment finance districts. 5. Director Jopke proposed additions to"Attachment A: Application for TIF Assistance"to N:\DATA\GROUPS\ECONDE V\EDC\M inutes\Mi n00\04-27-00.doc L�0�ip)ire=dGED cc0 reflect the use TIF as it relates to housing. 6. Commissioner Carlson commented that an "other"category would be useful in Sources • and Uses section of"Attachment A: Application for TIF Assistance." 7. With regard to the Additional Documentation section of"Attachment A: Application for TIF Assistance," Chairperson Tom Field indicated that financial statements for three years, as opposed to two years would provide additional trend data useful for the evaluation of TIF assistance. 8. With regard to the Additional Documentation section of"Attachment A: Application for TIF Assistance," Commissioner Carlson suggested adding a line"J"giving the applicant an opportunity to provide additional information. 8. Adjournment There being no further business before the Commission, this meeting of the Economic Development Commission adjourned at 8:50 a.m. Respectfully Submitted, Aaron Parrish Economic Development Coordinator • • N:\DATA\GROUPS\ECONDE V\EDC\Minutes\Min00\04-27-00.doc Minutes of the Economic Development Commission li/ City of Mounds View Ramsey County, Minnesota Regular Meeting May 25th, 2000 City of Mounds View, Council Chambers 2401 Highway 10, Mounds View, MN 55112 1. CALL TO ORDER: The meeting was called to order at 7:35 a.m. by Chairperson Tom Field. 2. ROLL CALL: Members Present: Dr. Greg Belting, Cindy Carlson, Tom Field, Torri Johnson, Rosemary Goff, Sean Walther, and EDA Liaison Dan Coughlin. Members Absent: Wendy Marty Staff Present: Economic Development Coordinator Aaron Parrish 3. APPROVAL OF MINUTES: Motion/Second: Carlson/Goff moved to approve the minutes from April 27th, 2000. iMotion Carried: 6 Ayes 0 Nays 4. SPECIAL BUSINESS A. Welcome New Commission Member Toni Johnson/Oath of Office Torri Johnson was welcomed to the Economic Development Commission as its newest Business Representative. Subsequently, Commissioner Johnson was given the Oath of Office by Chairperson Tom Field. 5. REPORT OF COMMISSIONERS, STAFF AND EDA LIAISON A. Commissioner and EDA Liaison Reports Commissioner Tom Field updated the Commission on a recent Highway 10 Steering Committee meeting. He indicated that previous Highway 10 studies were discussed, along with various obstacles the community has faced. Additionally, he pointed out that the focus for the current planning process was to move toward implementation. B. NB-MV Chamber of Commerce Update Commissioner Greg Belting, Chair of the Board of Directors for the NB-MV Area Chamber of Commerce provided the Commission with information on the Chamber's recent activities. Commissioner Belting indicated that the Chamber's recent golf event was a success with over 80 golfers, and that the 2000 Business of the Year awards will be held next week. 6. EDC BUSINESS N:\DATA\GROUP S\ECONDE V\EDC\Minutes\Min00\06-22-00.doc A. Tax Increment Finance Policy Revisions 4 After discussing revisions to the TIF policy from the previous meeting, a motion recommending the Economic Development Authority adopt the revisions to the tax increment finance policy was presented. Motion/Second: Carlson/Walther Motion Carried 6 ayes 0 nays B. Mermaid Hotel and Banquet Center TIF Application Economic Development Coordinator Parrish outlined the proposed project and the nature of the nature of the TIF request. After discussing the proposed request, a motion recommending the Economic Development Authority give preliminary approval of the Mermaid's application for tax increment finance assistance was introduced: Motion/Second: Field/Carlson Motion Carried 6 ayes 0 nays C. Business Retention Visits After discussing the various facets of conducting business retention visits, the Commission III decided to conduct visits after regularly scheduled meetings. To the extent possible, it was determined that the visits should be prioritized based current city issues and concerns expressed by businesses. 8. Adjournment There being no further business before the Commission, this meeting of the Economic Development Commission adjourned at 8:30 a.m. Respectfully Submitted, _,,,in Aaron Parrish Economic Development Coordinator N:\D ATA\GROUPS\EC OND E V\EDC\M inutes\M i n00\06-22-00.do c Ap p rr cp ,a Minutes of the Economic Development Commission • City of Mounds View Ramsey County, Minnesota Regular Meeting June 22nd, 2000 City of Mounds View, Council Chambers 2401 Highway 10, Mounds View, MN 55112 1. CALL TO ORDER: The meeting was called to order at 7:35 a.m. by Chairperson Tom Field. 2. ROLL CALL: Members Present: Dr. Greg Belting, Cindy Carlson, Tom Field, Torri Johnson, Rosemary Goff, Wendy Marty, and Sean Walther. Members Absent: EDA Liaison Dan Coughlin Staff Present: Economic Development Coordinator Aaron Parrish and Community Development Director Rick Jopke 3. APPROVAL OF MINUTES: Motion/Second: Goff/Walther moved to approve the minutes from June 22nd, 2000. Motion Carried: 7 Ayes 0 Nays 4. SPECIAL BUSINESS There was no Special Business 5. REPORT OF COMMISSIONERS, STAFF AND EDA LIAISON A. Commissioner and EDA Liaison Reports Chairperson Field discussed the recent meetings of the Highway 10 Steering Committee. He indicated that priorities identified at the committee level included reducing the Highway's speed limit, renaming the road, incorporating additional landscaping, adding a pedestrian bridge, and adding trails and pathways along the corridor. Commissioner Carlson suggested the need for a pedestrian bridge be evaluated further in light of some of the other pedestrian friendly changes being made to the Highway. B. NB-MV Chamber of Commerce Update Commissioner Greg Belting, Chair of the Board of Directors for the NB-MV Area Chamber of Commerce provided the Commission with information on the Chamber's recent activities. Commissioner Belting indicated that a Mounds View business was awarded the"Business of the Year"award. Commissioner Carlson also indicated that Commissioner Belting was the recipient of the"Volunteer Service" award for his participation in chamber, rotary, and • city activities. Commissioner Belting also indicated that the Chamber will be hosting its annual 'Gala"event on July 27th, 2000. N:\DATA\GROUPS\ECONDE V\EDC\Min utes\M i n 00\06-22-00.doe Apprnc d C. 2901 Highway 10 • Coordinator Parrish updated the Commission regarding the status of 2901 Highway 10, or the former gas station property. He announced that the Economic Development Authority authorized the provision of demolition assistance and that it is anticipated that the property will be demolished sometime next week. D. Tax Increment Finance Policy Update Coordinator Parrish indicated that the Economic Development Authority passed the tax increment finance policy recommended by the Commission with a couple of slight modifications. E. Walgreens Director Rick Jopke updated the Commission on the upcoming Walgreens' development. He indicated that the proposal was going to be considered at the July 51h, 2000 meeting of the Planning Commission. He reaffirmed that a Walgreens and Culvers restaurant are still planned for the property. He also reiterated the terms of the land exchange between the city and the developer. F. Mermaid Hotel and Banquet Center Coordinator Parrish apprised the Commission on the status of the Mermaid's request for tax increment finance assistance. He indicated that the Economic Development Authority has given preliminary approval to the request, and that the city's consultants are currently in the • process of drafting development agreement and the necessary amendments to the tax increment finance plan. Once the appropriate agreements and amendments have been drafted, the Economic Development Authority will give final consideration to the proposal. G. Council Manager Form of Government Director Jopke gave a brief overview of the City Council's consideration of a council- manager form of government. Director Jopke stated that the primary difference the proposed form of government and the existing form of government is the role of the city council. He indicated that under a city manager form of government, the Council would take more of a policy making role in city affairs with administrative matters being left to a city manager. Commissioner Belting inquired about the form of government other communities used, particularly in the metropolitan area. Director Jopke indicated that the City has gotten this information and it could be provided at a later date. H. Charter Commission Resolution 2000-09 Coordinator Parrish indicated that Charter Commission Resolution 2000-09 has been provided to the Commission since it relates to the use of tax increment finance in Mounds View. 6. EDC BUSINESS A. Tax Abatement Finance Policy Coordinator Parrish provided an overview of tax abatement and its potential use in Mounds • View. He discussed the public interest requirements prerequisite to granting an abatement, the potential uses of abatement, abatement compared to tax increment financing, and abatement's capacity to generate revenue. N:\DATA\GROUPSTCONDEVTDC\Minutes\Min00\06-22-00.doc ECONOMIC DEVELOPMENT COMMISSION AGENDA June 22nd 2000 7:30 A.M. MOUNDS VIEW CITY HALL - CITY COUNCIL CHAMBERS 1. CALL TO ORDER A.M. 2. ROLL CALL (Present = P, Absent = A) Belting Marty Carlson L/ Walther Field Coughlin (EDA Liaison) .- Goff c./ Jopke (Staff)_ Johnson Parrish (Staff) 3. APPROVE EDC MINUTES May 25th, 2000 Action: Motion Second may Vote - — G 4. SPECIAL BUSINESS ohAide- 1}t5. REPORT OF COMMISSIONERS, STAFF AND EDA LIAISON A. Report of Commissioners — No Materials Attached - l'h '") / / ✓�� B. Chamber of Commerce Update — No Materials Attached C. 2901 Highway 10 — No Materials Attached D. Tax Increment Finance Policy Update —No Materials Attached E. Walgreens — No Materials Attached F. Mermaid Hotel and Banquet Center— No Materials Attached G. Council Manager Form of Government - No Materials Attached H. Charter Commission Resolution 2000-09 6. EDC BUSINESS A. Tax Abatement Finance Policy 7. ADJOURN 4 G A.M. Next Regularly Scheduled Meeting: July 27th, 2000 at 7:30 A.M N:\DATA\GROUPSTCONDEVTDC\Agendas\Agenda00\June.doc Minutes of the Economic Development CommissionNottApproved City of Mounds View Ramsey County, Minnesota Regular Meeting May 25th, 2000 City of Mounds View, Council Chambers 2401 Highway 10, Mounds View, MN 55112 1. CALL TO ORDER: The meeting was called to order at 7:35 a.m. by Chairperson Tom Field. 2. ROLL CALL: Members Present: Dr. Greg Belting, Cindy Carlson, Tom Field, Torri Johnson, Rosemary Goff, Sean Walther, and EDA Liaison Dan Coughlin. Members Absent: Wendy Marty Staff Present: Economic Development Coordinator Aaron Parrish 3. APPROVAL OF MINUTES: Motion/Second: Carlson/Goff moved to approve the minutes from April 27th, 2000. • Motion Carried: 6 Ayes 0 Nays 4. SPECIAL BUSINESS A. Welcome New Commission Member Torri Johnson /Oath of Office Torri Johnson was welcomed to the Economic Development Commission as its newest Business Representative. Subsequently, Commissioner Johnson was given the Oath of Office by Chairperson Tom Field. 5. REPORT OF COMMISSIONERS, STAFF AND EDA LIAISON A. Commissioner and EDA Liaison Reports Commissioner Tom Field updated the Commission on a recent Highway 10 Steering Committee meeting. He indicated that previous Highway 10 studies were discussed, along with various obstacles the community has faced. Additionally, he pointed out that the focus for the current planning process was to move toward implementation. B. NB-MV Chamber of Commerce Update Commissioner Greg Belting, Chair of the Board of Directors for the NB-MV Area Chamber of Commerce provided the Commission with information on the Chamber's recent activities. Commissioner Belting indicated that the Chamber's recent golf event was a success with • over 80 golfers, and that the 2000 Business of the Year awards will be held next week. 6. EDC BUSINESS N:\DATA\GROUPSECONDEVEDMinutes\Min00\05-25-00.doc Not Approved A. Tax Increment Finance Policy Revisions i After discussing revisions to the TIF policy from the previous meeting, a motion recommending the Economic Development Authority adopt the revisions to the tax increment finance policy was presented. Motion/Second: Carlson/Walther Motion Carried 6 ayes 0 nays B. Mermaid Hotel and Banquet Center TIF Application Economic Development Coordinator Parrish outlined the proposed project and the nature of the nature of the TIF request. After discussing the proposed request, a motion recommending the Economic Development Authority give preliminary approval of the Mermaid's application for tax increment finance assistance was introduced: Motion/Second: Field/Carlson Motion Carried 6 ayes 0 nays C. Business Retention Visits After discussing the various facets of conducting business retention visits, the Commission decided to conduct visits after regularly scheduled meetings. To the extent possible, it was determined that the visits should be prioritized based current city issues and concerns • expressed by businesses. 8. Adjournment There being no further business before the Commission, this meeting of the Economic Development Commission adjourned at 8:30 a.m. Respectfully Submitted, Aaron Parrish Economic Development Coordinator S N:\DATA\GROUP S\ECONDEV\EDC\Minutes\Min00\05-25-00.doc • Item No. 5H Meeting Date: June 22nd, 2000 Type of Business: IN • EB: EDC Business IN: Informational Item City of Mounds View Staff Report To: Economic Development Commission From: Aaron Parrish, Economic Development Coordinator Item Title/Subject: Charter Commission Resolution 2000-09 Date of Report: June 15, 2000 Background: The City of Mounds View is governed under a charter form of government. Accordingly, the Charter has provisions relating to form of government, council procedure, elections; initiative, referendum,and recall; city administration; taxation and finance; public improvements and special assessments; and a variety of other provisions. On May 31st, 2000 the Charter Commission passed Resolution No. 2000-09 which adds section 7.13 to Chapter 7: Taxation and Finances of the Mounds View Charter. The resolution has been included for your information. Charter Commission Resolution No. 2000-09 essentially places limits the city's ability to utilize tax increment financing, and attempts to limit other business incentives. However, the emphasis is on tax • increment finance. In essence, the city would not be able use TIF if the captured tax capacity for Mounds View's TIF districts (the amount of TIF dollars generated)was more than 10% of the city's total tax capacity. For taxes payable in 1998, 1999, and 2000, the percentage is 22 percent. The following table is illustrative: PAY YEAR TOTAL TAX CAPACITY TIF TAX CAPACITY PERCENTAGE OF 11F TO TOTAL TAX CAPACITY 1998 $7,065,449 $1,533,128 22% 1999 $6,933,389 $1,502,950 22% 2000 $7,403,151 $1,645,539 22% From a procedural perspective,the Council will review and then subsequently consider the amendment. If the Council votes unanimously to approve the amendment, it will be adopted and incorporated into the Charter. If it is not approved unanimously, it will then be placed before the residents of Mounds View for consideration during a general or special election. Necessary Actions: None. This has been provided for informational purposes. Aaron Parrish, Economic Development Coordinator • (763) 717-4029 RESOLUTION NO. 2000-09 MOUNDS VIEW CHARTER COMMISSION • • RESOLUTION RECOMMENDING CITY COUNCIL APPROVAL BY ORDINANCE; AN ORDINANCE AMENDING Chapter 7 OF THE MOUNDS VIEW CITY CHARTER. The Mounds View Charter Commission acting under Minnesota Statutes 410.12 Subdivision 7, hereby recommends amending the Charter of the City of Mounds View under Chapter 7 Section 7.13 Subdivisions 1,2, & 3 and is amended by the addition of the bold and underlined language to read as follows; Section 7.13 Tax Increment Financing, Economic Subsidies&Tax Abatement Subdivision 1. The City Council of the City of Mounds View, its Economic Development Authority, or any housing or redevelopment authority, or any other agency or instrumentality of the city, may not approve the creation of a new Tax Increment Financing District, if such approval would cause the aggregate amount of captured net tax capacity for all Tax Increment Financing Districts located in the City of Mounds View to exceed 15 percent of the total tax capacity of the city. Subdivision 2. The City Council of the City of Mounds View, its Economic Development Authority,or any housing or redevelopment authority, or any other agency or instrumentality of the city, may not approve the geographic expansion of an existing Tax Increment Financing District,the addition of any new projects to an existing Tax Increment Financing District,or the granting of any economic subsidy or the granting of • any new tax abatements,if such approval would cause the aggregate amount of captured net tax capacity for all Tax Increment Financing Districts located in the City of Mounds View to exceed 10 percent of the total tax capacity of the city. Subdivision 3. Economic Subsidy as used in Subdivision 2 "Economic Subsidy"means any grant,contribution of property, infrastructure, or services,any loan at rates below those commercially available to the recipient,any reduction or deferral of any tax or any fee,any guarantee of any payment under any loan, lease, or other obligation, or any preferential use of government facilities given to a business, or the granting of any new tax abatements. BE IT RESOLVED that the Charter Commission directs the commission's chairperson to forward this resolution to the Clerk-Administrator for presentation to the City Council under Minnesota Statutes 410.12 Subdivision 7. If the City Council does not adopt this resolution by an unanimous vote of all its members the Charter Commission hereby requests that the above amendment be placed on the ballot at the next general election in November 2000, under Minnesota Statues 410.12 Subdivision 1. Adopted this 31st day of May, 2000 419/ • ission Chair 2 sZ‘Z .-- • •mmission Officer Attest: Item No. 6B Meeting Date: June 22"d, 2000 Type of Business: EB • EB: EDC Business • IN: Informational Item City of Mounds View Staff Report To: Economic Development Commission From: Aaron Parrish, Economic Development Coordinator Item Title/Subject: Tax Abatement Finance Policy Date of Report: June 14, 2000 Background: At the March 13th meeting of the Economic Development Authority, the Authority gave direction to the EDC to examine the potential use of tax abatement in Mounds View, and to develop a tax abatement policy. The proceeding paragraphs provide a detailed overview of what is commonly referred to as tax abatement. Realizing the need fora viable alternative to tax increment finance, the 1997 Minnesota Legislature and Governor adopted tax abatement legislation into law. "The laws goal was to give each taxing jurisdiction a voice in economic and redevelopment efforts, limit the state's financial liability through the school finance system, and enable new business retention efforts" (Bubul et al 3). While tax abatements have not been widely adopted at this point, it is anticipated the use of this development finance tool will increase in the future as TIF becomes more restrictive. • Operational Considerations • It must be noted that"Abatement, in the context of Minnesota's abatement law, is not an abatement in the literal sense of the word. In reality, what Minnesota law contemplates is a tax rebate rather than an exemption from paying taxes. When a jurisdiction enters into an abatement agreement, the taxpayer pays taxes on the abated property to the county in the same manner it would if the taxes were not being abated. The county then pays the abatement to the general fund of the political subdivision" (Bubul et al 3). Accordingly, the term tax abatement is somewhat misleading. Tax increment finance allows municipalities and local economic development authorities to capture the tax base from the three primary taxing jurisdictions. As previously indicated, tax abatements are granted by particular political subdivisions. A political subdivision may grant an abatement if: " (a) it expects the benefits to the political subdivision of the proposed abatement agreement to at least equal the costs to the political subdivision of the proposed agreement; and (b) it finds that doing so is in the public interest because it will: (1) increase or preserve tax base; (2) provide employment opportunities in the political subdivision; (3) provide or help acquire or construct public facilities; • (4) help redevelop or renew blighted areas; (5) help provide access to services for residents of the political subdivision; or City of Mounds View Staff Report June 14, 2000 Page 2 • (6)finance or provide public infrastructure" (Minnesota Statutes §469.1813). The public purposes highlighted above are primarily oriented toward economic development objectives such redeveloping blighted areas, preserving the tax base, and providing employment opportunities. However, abatement can also be used for public infrastructure and facilities. Therefore, abatement may be one of the finance options for the anticipated improvements to Highway 10, or other public infrastructure projects. While the term of the TIF assistance varies with the type of district, abatements have a duration limit of 10 years if combined with another taxing jurisdiction, or 15 years if just one jurisdiction is involved " (Minnesota Statutes §469.1813 subd. 6). Finally, "In any year, the total amount of property taxes abated by a political subdivision under this section may not exceed (1) five percent of the current levy, or (2) $100,000, whichever is greater" " (Minnesota Statutes §469.1813 subd. 9) Tax Abatement and Tax Increment Finance:A Comparison There are both and advantages and disadvantages associated with the use of tax abatement and tax increment finance. There are several reasons a development authority would consider granting a tax abatement as opposed to TIF assistance. First, granting an abatement is less time and resource intensive. Second, there are less restrictions on how and when a development authority can use abatement proceeds. Third, there are no specific reporting requirements associated with abatement. Conversely, a considerable amount of time is spent responding to information requests from the Office of the State Auditor and completing "TIF Authority" and "TIF Municipality" reports for each TIF district. • Fourth, abatements are less costly to establish compared to tax increment (Bubul et al 13). Finally, tax abatements are not geographically restricted to districts like its TIF counterpart. In most instances, an abatement can be granted anywhere within the political subdivision's jurisdiction. In sum, abatement's flexibility allows taxing jurisdictions to better address smaller development and particularly redevelopment concerns that TIF may not be considered for. When contrasted with abatement, there are also some obvious advantages to the use of tax increment finance. While abatement is left to the respective taxing jurisdictions, TIF allows a development authority to capture the tax base of each political subdivision. As a result, in most instances TIF will result in greater funding potential than abatement. However, it is possible to obtain greater funding with abatement if all taxing jurisdictions participate. Unfortunately, there are some structural disincentives for a school district to not grant tax abatements. Financial Considerations There are several financial issues that must be considered when using tax abatement. Like TIF, abatement revenue can be paid to a developer or business owner in either a pay-as-you-go arrangement or with up-front financing. Pay-as-you-go financing is paid to the recipient on a semi- annual basis usually three months after taxes have been collected. In most arrangements, the political subdivision will pay the recipient a percentage of the captured abatement minus an agreed upon percentage for administration. For example, a typical agreement would be structured in the following manner: 95% of property taxes paid would be disbursed to the recipient while 5% would be retained by the taxing jurisdiction for administrative purposes. The above represents the maximum abatement that a developer/business might hope to receive. In reality, the development authority or other taxing • N:\DATA\GROUPS\ECONDEV\EDC\Staff Reports\Staff00\06-6A.doc City of Mounds View Staff Report June 14, 2000 Page 3 • jurisdiction has the option of specifying the percentage of taxes that could be pledged for a particular project. The political subdivision also has discretion in the number of years that a project could be funded (Bubul et al 11). Pay-as-you-go financing is the preferred method of finance due to the limited liability incurred by the grantor. However, there are some projects that will not be viable without an up front injection of equity. In this instance, it may be necessary to issue bonds on behalf of the project. (Bubul et al 11) Economic development is a function that is commonly associated with local government. However, the property taxes collected at the municipal level are typically the smallest of the three primary taxing jurisdictions. Thus, the ability to generate revenue based simply on a municipal abatement is rather limited. For example, the overall tax rate for property located in the City of Mounds View is 124.556 percent. Of that 124.556%, 25.551% can be attributed to the city, or approximately 20.5% of the total property tax liability for a Mounds View taxpayer. Comparatively speaking, Ramsey County and the Mounds View Public School District account for approximately 79.5% of the total. Needless to say, this places a significant constraint on a city's ability to generate abatement revenue individually. The following calculations are illustrative: 2000 Abatement Calculation: City of Mounds View Only Total Tax Capacity ($1,000,000 Commercial Project): $40,481 City Tax Rate: 25.551% Percent Abated: 95% 2000 Abatement Payment: $9,826.14 5 Year Revenue Projection: $49,130.70 2000 Abatement Calculation: City of Mounds View & Ramsey County Total Tax Capacity ($1,000,000 Commercial Project): $40,481 City Tax Rate: 25.551% County Tax Rate 44.839% Percent Abated: 95% 2000 Abatement Payment: $27,069.85 5 Year Revenue Projection: $135,349.25 • N:\DATA\GROUPS\ECONDEV\EDC\Staff Reports\StaffOO\06-6A.doc • City of Mounds View Staff Report June 14, 2000 Page 4 • 2000 Abatement Calculation: City of Mounds View/Ramsey County/ISD #621 Total Tax Capacity ($1,000,000 Commercial Project): $40,481 City Tax Rate: 25.551% County Tax Rate 44.839% ISD #621 Tax Rate 46.421% Percent Abated: 95% 2000 Abatement Payment: $44,921.95 5 Year Revenue Projection: $224,609.75 As one can see, intergovernmental cooperation will be a necessary component for the effective use of tax abatement. At this point, a preliminary letter has been sent to the school district and county requesting their perspective on the use of abatement. However, we have not received a response at this point. Beyond the general parameters outlined in the legislation, the attached "Tax Abatement Finance Policy &Application"further refines the potential use of abatement in Mounds View. 1. Bubul, Steve, Mike LaFave, Mark Ruff, and Joel Sutter. " 'How to Succeed at Business Without Really Trying' aka Abatement." TIF on Stage: Comedy, Tragedy, Mystery: Tax Increment Financing • 2000. Ehlers and Associates, 2000. Necessary Actions: Evaluate and make recommendations regarding the attached Tax Abatement Finance Policy Aaron Parrish, Economic Development Coordinator (763) 717-4029 • N:\DATA\GROUPS\ECONDEV\EDC\Staff Reports\Staff00\06-6A.doc • City of Mounds View, Minnesota Tax Abatement Finance Policy & Application Adopted: ,2000 Draft . 1 1 Table of Contents I. Policy Purpose 3 II. Difference Between Tax Abatement & TIF 3 III. Objectives of Tax Abatement Financing 3 IV. Policies for the Use of Tax Abatement 4 V. Project Qualifications 5 VI. Subsidy Agreement & Reporting Requirements 6 VII. Application Process for Tax Abatement Financing 7 VIII. Attachment A: Application 8 IX. Attachment B: Deposit Agreement 12 X. Attachment C: Application Review Worksheet 15 . XI. Attachment D: Sample But-For Analysis 17 • 2 • I. POLICY PURPOSE � �� 42:4 �..-P-7 The purpose of this policy is to establish the Mounds View Economic Development Authority's, hereafter referred to as the EDA, position relating to the use of tax abatement financing for private development above and beyond the requirements and limitations set forth by State Law. This policy shall be used as a guide in the processing and review of applications requesting tax abatement. The fundamental purpose of tax abatement in Mounds View is to encourage desirable development or redevelopment that would not otherwise occur but for the assistance provided. The Mounds View EDA is granted the power to utilize tax abatement financing by the Minnesota Tax Abatement Act, as amended. It is the intent of the EDA to provide the minimum tax abatement, as well as other incentives, at the shortest term required for the project to proceed. The EDA reserves the right to approve or reject projects on a case by case basis, taking into consideration established policies, project criteria, and demand on city services in relation to the potential benefits from the project. Meeting policy criteria does not guarantee the award of tax abatement to the project. Approval or denial of one project is not intended to set precedent for approval or denial of another project. II. DIFFERENCE BETWEEN TAX ABATEMENT & TIF The primary difference between Tax Abatement Financing and Tax Increment Financing (TIF) is the way in which the dollars are awarded to the project. When TIF is awarded to a project by the EDA, the other political subdivisions (the school district and the county) are required to contribute their portion of the increased taxes to the project. Conversely, when tax abatement financing is requested, each political subdivision has the option of granting its portion of the increased taxes to the project. Depending on the position of the respective taxing jurisdictions, the dollars generated by tax abatement have the potential to be less than the dollars generated with TIF. III. OBJECTIVES OF TAX ABATEMENT FINANCING As a matter of adopted policy, the EDA will consider using tax abatement financing to assist private development projects to achieve one or more of the following objectives: • To enhance and diversify the City of Mounds View's economic base. • 3 • To encourage the revitalization and redevelopment of the Highway 10 • Corridor. • To encourage additional unsubsidized private development in the area, either directly or indirectly through "spin off' development. To facilitate the development process and to achieve development on sites which would not be developed without assistance. \,,•\ .1) .? Y• • To remove blight and/or encourage redevelopment of commercial and �� industrial areas in the city that result in high quality redevelopment and kNid \c\ private reinvestment. • To encourage the removal of blight or the rehabilitation of a high profile or priority site. • To offset increased costs of redevelopment (i.e. contaminated site clean up, demolition expenses etc. . .) over and above the costs normally incurred in development. \r • To increase the tax base. • It • To create housing opportunities. V • To retain local jobs and/or increase the number and diversity of jobs that 11° offer stable employment and/or attractive wages and benefits. • To contribute to the implementation of other public policies, as adopted by the EDA from time to time, such as the promotion of quality architectural design, enhanced recreational opportunities, and decreasing capital and/or operating costs of local government. IV. POLICIES FOR THE USE OF TAX ABATEMENT a. Tax abatement assistance will be provided to the developer upon receipt of taxes by the EDA, otherwise referred to as the pay-as-you-go method. Requests for up front financing will be considered on a case by case basis. b. Any developer receiving a tax abatement shall provide a minimum of twenty percent (20%) wok equity investment in the project. 4111 4 • c. Tax abatement will not be used in circumstances where land and/or property price is in excess of fair market value. L "4.}�yhy�� d. A market demand shall be demonstrated for the proposed project. /, e. Tax abatement will not be utilized in cases where it would create an unfair and significant competitive financial advantage over other projects in the area. f. Tax abatement shall not be used for projects that would place extraordinary demands on city services or for projects that would generate significant environmental impacts. -g. The developer must provide adequate financial guarantees to ensure '_.f/ completion of the project, including, but not limited to: assessment agreements, letters of credit, personal guaranties, and additional (API°r documentation as necessary. 12/ 4 - h. The developer shall adequately demonstrate, to the EDA's sole satisfaction, an ability to complete the proposed project based on past l•, 'f development experience, general reputation, and credit history, among dA•Ji 41 other factors, including the size and scope of the proposed project. G)'' 1,e/ i. For the purposes of underwriting the proposal, the developer shall r�G provide any requested market, financial, environmental, or other data ✓'f �) requested by the EDA or its consultants. (11 V. PROJECT QUALIFICATIONS All tax abatement projects considered by the Mounds View EDA must meet each of the following requirements: a. The project shall meet at least one of the objectives set forth in section III of this document. b. The use of tax abatement will be limited to: • Industrial development, expansion, redevelopment, or rehabilitation; or • Commercial redevelopment or rehabilitation; or • Office or research facilities; • • Housing and infrastructure. c. The developer shall demonstrate that the project is not financially . feasible but-for the tax abatement financing provided. d. The project shall comply with all provisions set forth in Minnesota's Tax Abatement Law, statues 469.1812 to 469.1815, as amended. e. The project must be consistent with the City's Comprehensive Plan and Zoning Ordinances. VI. SUBSIDY AGREEMENT & REPORTING REQUIRMENTS 1«� All developers/businesses receiving a tax abatement, or other assistance in excess of$100,0000 from the Mounds View EDA shall be subject to the provisions and requirements set forth by state statute 116J.993 and summarized below. rti‘r ,77 All developers/businesses receiving tax abatement assistance shall enter into a subsidy agreement with the Mounds View EDA that identifies: the reason for the subsidy, the public purpose served by the subsidy, and the goals for \91h` the subsidy, as well as other criteria set forth by statute 116J.993. C The developer/business shall file a report annually for two years after the • } date the benefit is received or until all goals set forth in the application and business subsidy agreement have been meet, whichever is later. Reports \oA shall be completed using the format drafted by the State of Minnesota and shall be filed with the Mounds View EDA no later than March 1 of each year for the previous calendar year. Businesses fulfilling job creation requirements must file a report to that effect with the city within 30 days of meeting the requirements. The developer/business owner shall maintain and operate its facility at the site where the tax abatement and/or other assistance is used for a period of five years after the benefit is received. In addition to attaining or exceeding the jobs and wages goals set forth in the Subsidy Agreement, the borrower shall achieve at least one of the objectives set forth in Section III of this document. Developers / Businesses failing to comply with the above provisions will be subject to fines, repayment requirements, and be deemed ineligible by the State to receive any loans or grants from public entities for a period of five years. See the City's Business Subsidy Policy for additional information. • 6 • VII. APPLICATION PROCESS FOR TAX ABATEMENT FINANCING A. MOUNDS VIEW EDA 1. Applicant submits the completed application along with all application fees. 2. City staff reviews the application and completes the Application Review Worksheet. 3. Results of the Worksheet are submitted to the appropriate governing authorities for preliminary approval of the proposal. 4. If preliminary approval is granted, all necessary notices, resolutions and certificates are prepared by City staff and/or consultants. 5. If necessary, public hearing(s) on the proposed project are held. 6. The EDA grants final approval or denial of the proposal. IP B. APPLICATIONS TO OTHER POLITICAL SUBDIVISIONS It is recommended that applicants intending to seek tax abatement financing from Ramsey County and/or School District 621 make their applications to those bodies concurrent with their application to the Mounds View EDA. For more information on applying for a tax abatement financing from Ramsey County and/or School District 621, contact: Judy Karon Director, Community and Economic Development Ramsey County 651-266-8006 Dr. Jan Witthuhn , � Superintendent c\1 Mounds View School District#621 651-639-6001 7 VIII. ATTACHMENT A: APPLICATION FOR TAX ABATEMENT FINANCING A. APPLICANT INFORMATION Name of Corporation/Partnership Address Primary Contact Address Phone Fax Email On a separate sheet, please provide the following: • Brief description of the corporation/partnership's business, including history, principal product or service, etc... Attach as Exhibit A . • Brief description of the proposed project. Attach as Exhibit B. • List names of officers and shareholders/partners with more than five percent (5%) interest in the corporation/partnership. Attach as Exhibit C. • • A but-for analysis and narrative. Attach as Exhibit D. Attorney Name Address Phone Fax Email Accountant Name Address 'Phone Fax Email Contractor Name Address Phone Fax Email Engineer Name Address Phone Fax Email Architect Name Address Phone Fax Email • 8 B. PROJECT INFORMATION 1. The project will be: Vacant Land Development New Construction Expansion Commercial Redevelopment: New Construction Expansion Industrial Redevelopment: New Construction Rehabilitation Housing : New Construction Rehabilitation Other 2. In addition to the Mounds View EDA, applicant is requesting abatement funds from: Ramsey County School District 621 3. The project will be: Owner Occupied Leased Space • If leased space, please attach a list names and addresses of future lessees and indicate the status of commitments or lease agreements.Attach as Exhibit E. 4. Project Address • Include Legal Description and PID Number. Attach as Exhibit F 5. Site Plan Attached: Yes No • 6. Total Abatement Requested: $ over years. City Abatement : Annual $ Total $ County Abatement: Annual $ Total $ ISD 621 Abatement: Annual $ Total $ 7. Current Real Estate Taxes on Project Site: $ Estimated Real Estate Taxes upon Completion: $ 8. Construction Start Date: Construction Completion Date: If Phased Project: Year % Completed Year % Completed C. PUBLIC PURPOSE It is the policy of the Mounds View EDA that the use of tax abatement financing should result in a benefit to the public. Please indicate how this project will serve a public purpose. Industrial development resulting in additional private investment _Enhancement and/or diversification of the city's economic base. • _Removal of blight. 9 _Provide housing opportunities • _Expand the tax base _Rehabilitation of a high profile or priority site. _Job Creation/Retention: Number of existing jobs Number of jobs created by project Average hourly wage of jobs created Other: D. SOURCES & USES SOURCES NAME AMOUNT Bank Loan Other Private Funds $ Equity $ Fed Grant/Loan $ State Grant/Loan $ Tax Abatement $ ID Bonds $ Other $ TOTAL $ USES AMOUNT • Land Acquisition $ Site Development $ Construction $ Machinery & Equipment $ Architectural & Engineering Fees $ Legal Fees $ Interest During Construction $ ,Debt Service Reserve $ Contingencies $ Other $ TOTAL $ 1110 10 E. ADDITIONAL DOCUMENTATION AND CHECKLIST Applicants will also be required to provide the following documentation. A) Written business plan, including a description of the business, ownership/management, date established, products and services, and future plans B) Financial Statements for Past Three Years Profit & Loss Statement Balance Sheet C) Current Financial Statements Profit & Loss Statement to Date Balance Sheet to Date D) Two Year Projections E) Personal Financial Statements of all Major Shareholders if"Up Front" Financing is Requested Profit & Loss Current Tax Return • F) Letter of Commitment from Applicant Pledging to Complete During the Proposed Project Duration G) App it cation fee of$1000 (T. :- _. ■ -• •• • • •' • •• • - .•: ) H) Additional information that will be helpful in evaluating your application Note: All Major shareholders will be required to sign personal guarantees if up front financing of the project is required. The undersigned certifies that all information provided in this application is true and correct to the best of the undersigned's knowledge. The undersigned authorizes the Mounds View Economic Development Authority to check credit references and verify financial and other information. The undersigned also agrees to provide any additional information as may be requested by the Authority after the filing of this application. Applicant Name Date By Its • 11 IX. Attachment B: Deposit Agreement I Deposit Agreement for Evaluation of Tax Abatement Finance Assistance By and Between the Mounds View Economic Development Authority and (The Applicant) This agreement made as of the day of , 2000 by and between the MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY, a body corporate and politic, organized and existing under the laws of the State of Minnesota (the "EDA") and (The Applicant). WITNESSETH: WHEREAS, the EDA has the powers provided in Minnesota Statutes, Sections 469.1812 to 469.1815, as amended (collectively, the "Act"); and WHEREAS, pursuant to and in furtherance of the objectives of the Act, the EDA has undertaken a program to promote development and redevelopment of certain land within the City of Mounds View • NOW THEREFORE, in consideration of a mutual covenants made herein and for other good and valuable consideration set forth in the Agreement, the parties agree as follows: Section 1. (The Applicant ) agrees to provide the EDA with a deposit of $1,000 for the EDA's consultants to investigate the feasibility of providing Tax Abatement Financing assistance to (The Applicant) for the redevelopment of the (the "Property"). If the EDA incurs additional expenses directly related to the feasibility of providing Tax Abatement Assistance to (The Applicant) beyond the $1,000, prior to the execution of the Developer's Agreement, the EDA shall notify (The Applicant) in writing and (The Applicant) will be required to deposit additional funds as a condition of the EDA entering into any such Development Agreement. Section 2. If the project is approved and (The Applicant) proceeds with the project, the EDA shall reimburse (The Applicant's) deposit to the extent permissible under applicable statute including statues 469.1812 to 469.1815, as amended. If (The Applicant) does not proceed with the redevelopment of the Property due to the decision of either the EDA or (The Applicant), the EDA shall reimburse the applicant for the unused portion of the deposit. • 12 Section 3. Nothing contained in this agreement shall in any way obligate either party to proceed with the redevelopment of the Property or otherwise enter into a Development Agreement. IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first above written. MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY BY: Dan Coughlin ITS PRESIDENT BY: S Michael Ulrich ITS EXECUTIVE DIRECTOR STATE OF MINNESOTA) SS COUNTY OF ) The foregoing instrument was acknowledged before me on this day of , 2000, by Dan Coughlin and Michael Ulrich, the President and Executive Director respectively of the Mounds View Economic Development Authority named in the foregoing instrument. Notary Public 13 (The Applicant) BY: • ITS: STATE OF MINNESOTA) ) SS COUNTY OF ) The foregoing instrument was acknowledged before me on this day of , 2000, by , the of (The Applicant) named in the foregoing instrument. Notary Public • 14 X. ATTACHMENT C: APPLICATION REVIEW WORKSHEET TO BE COMPLETED BY CITY STAFF 1. The project meets the criteria set forth in Section V of the Tax Abatement Financing policy. a) Meets at least one of the objectives in Section III. b) Demonstrates need for TAF with the but-for analysis. c) Consistent with all city plans and ordinances. d) Conforms with the criteria defined in Section V. 2. Ratio of Private to Public Investment in Project: Points: $ Private investment 5:1 5 $ Public Investment 4:1 4 Ratio Private : Public Financing 3:1 3 2:1 2 Less than 2:1 1 3. Job Creation in the City of Mounds View: Points: Number of net new jobs as a result of the project. 25+ 5 Number of existing/retained jobs divided by 10. 20+ 4 Total 15+ 3 10+ 2 • Less than 10 1 4. Ratio of TAF to new jobs created: Points: $ TAF request $8,000 or less 5 Number of new jobs created $10,000 or less 4 $ of TAF per new job created $12,000 or less 3 $15,000 or less 2 Over $15,000 1 ,5. Wage Level of jobs created: Points: Average hourly wage Over $21/ hour 5 of jobs created: $18-21 / hour 4 $14-17 / hour 3 $10-13 / hour 2 Under $10 / hour 1 6. Project size: Points: The project will result in the construction 30,000+ 5 of net square feet 20,000+ • 4 10,000+ 3 5,000+ 2 5,000 or less 1 • 15 7. Type of Project: Points: 100% Owner Occupied 5 Mix Owner Occupied & Investment 4 Investment Property 3 8. Use: Points: Industrial 5 Office 5 Warehouse/Distribution 4 Commercial 3 Housing 3 9. The project will pay annual Points: property taxes in the first fully 25,000+ 5 assessed year of$ 15,000+ 4 10,000+ 3 5,000+ 2 Under $5,000 1 10. Likelihood that the project will result in Points: unsubsidized, spin-off development. High 5 Moderate 3 Low 1 Sub - Total Points: of a possible 45 points. c 9. Bonus Points Bonus Points: A.10 The project will be 100%pay-as-you-go TAF. 3 points The project contributes to Highway 10 Redevelopment 3 points Total Points: Overall project analysis: High 45-38 points Moderate 37-29 points Low 28-20 points Not Eligible 19-0 points • 16 ECONOMIC DEVELOPMENT COMMISSION AGENDA • July 27th 2000 7:30 A.M. MOUNDS VIEW CITY HALL - CITY COUNCIL CHAMBERS 1. CALL TO ORDER `—; ' "3 A.M. 2. ROLL CALL (Present = P, Absent = A) Belting Marty Carlson Walther ✓ Field ri Coughlin (EDA Liaison) Goff Jopke (Stan Johnson Parrish (Staff) 3. APPROVE EDC MINUTES June 22nd, 2000 Action: Motion - (5 -- Second %;,f Vote c. G 4. SPECIAL BUSINESS No Special Business • 5. REPORT OF COMMISSIONERS, STAFF AND EDA LIAISON A. Report of Commissioners — No Materials Attached B. Chamber of Commerce Update — No Materials Attached C. Hi hway 10 Steering Committee Update — No Materials Attached D. I-3-5W Corridor Coalition Update — No Materials Attached E. Mermaid Hotel and Banquet Center Site Plan— No Materials Attached 6. EDC BUSINESS A. Tax Abatement Finance Policy Revisions 67 �� /-✓ 7. ADJOURN 6 , A.M. 8. BUSINESS RETENTION VISIT A. Jonco Die, 5201 Program Avenue Next Regularly Scheduled Meeting: August 24th, 2000 at 7:30 A.M • N:\DATA\GROUPS\ECONDE V\EDC\Agendas\Agenda00\July.doc Not Approved • Minutes of the Economic Development Commission City of Mounds View Ramsey County, Minnesota Regular Meeting June 22nd, 2000 City of Mounds View, Council Chambers 2401 Highway 10, Mounds View, MN 55112 1. CALL TO ORDER: The meeting was called to order at 7:35 a.m. by Chairperson Tom Field. 2. ROLL CALL: Members Present: Dr. Greg Belting, Cindy Carlson, Tom Field, Torri Johnson, Rosemary Goff, Wendy Marty, and Sean Walther. Members Absent: EDA Liaison Dan Coughlin Staff Present: Economic Development Coordinator Aaron Parrish and Community Development Director Rick Jopke 3. APPROVAL OF MINUTES: • Motion/Second: Goff/Walther moved to approve the minutes from May 25th, 2000. Motion Carried: 7 Ayes 0 Nays 4. SPECIAL BUSINESS There was no Special Business 5. REPORT OF COMMISSIONERS, STAFF AND EDA LIAISON A. Commissioner and EDA Liaison Reports Chairperson Field discussed the recent meetings of the Highway 10 Steering Committee. He indicated that priorities identified at the committee level included reducing the Highway's speed limit, renaming the road, incorporating additional landscaping, adding a pedestrian bridge, and adding trails and pathways along the corridor. Commissioner Carlson suggested the need for a pedestrian bridge be evaluated further in light of some of the other pedestrian friendly changes being made to the Highway. B. NB-MV Chamber of Commerce Update Commissioner Greg Belting, Chair of the Board of Directors for the NB-MV Area Chamber of Commerce provided the Commission with information on the Chamber's recent activities. Commissioner Belting indicated that a Mounds View business was awarded the"Business of the Year"award. Commissioner Carlson also indicated that Commissioner Belting was the recipient of the"Volunteer Service"award for his participation in chamber, rotary, and • city activities. Commissioner Belting also indicated that the Chamber will be hosting its annual 'Gala"event on July 27th, 2000. N:\DATA\GROUP SECOND E V\ED C\Minutes\Min 00\06-22-00.doc Not Approved C. 2901 Highway 10 • Coordinator Parrish updated the Commission regarding the status of 2901 Highway 10, or the former gas station property. He announced that the Economic Development Authority authorized the provision of demolition assistance and that it is anticipated that the property will be demolished sometime next week. D. Tax Increment Finance Policy Update Coordinator Parrish indicated that the Economic Development Authority passed the tax increment finance policy recommended by the Commission with a couple of slight modifications. E. Walgreens Director Rick Jopke updated the Commission on the upcoming Walgreens' development. He indicated that the proposal was going to be considered at the July 5th, 2000 meeting of the Planning Commission. He reaffirmed that a Walgreens and Culvers restaurant are still planned for the property. He also reiterated the terms of the land exchange between the city and the developer. F. Mermaid Hotel and Banquet Center Coordinator Parrish apprised the Commission on the status of the Mermaid's request for tax increment finance assistance. He indicated that the Economic Development Authority has given preliminary approval to the request, and that the city's consultants are currently in the process of drafting development agreement and the necessary amendments to the tax • increment finance plan. Once the appropriate agreements and amendments have been drafted, the Economic Development Authority will give final consideration to the proposal. G. Council Manager Form of Government Director Jopke gave a brief overview of the City Council's consideration of a council- manager form of government. Director Jopke stated that the primary difference the proposed form of government and the existing form of government is the role of the city council. He indicated that under a city manager form of government, the Council would take more of a policy making role in city affairs with administrative matters being left to a city manager. Commissioner Belting inquired about the form of government other communities used, particularly in the metropolitan area. Director Jopke indicated that the City has gotten this information and it could be provided at a later date. H. Charter Commission Resolution 2000-09 Coordinator Parrish indicated that Charter Commission Resolution 2000-09 has been provided to the Commission since it relates to the use of tax increment finance in Mounds View. 6. EDC BUSINESS A. Tax Abatement Finance Policy Coordinator Parrish provided an overview of tax abatement and its potential use in Mounds View. He discussed the public interest requirements prerequisite to granting an abatement, • the potential uses of abatement, abatement compared to tax increment financing, and abatement's capacity to generate revenue. N:\DATA\GROUPS\ECONDEV\EDC\Minutes\Min00\06-22-00.doc Not Approved rov d After an overview, a preliminary tax abatement finance policy and application was submitted • to the Commission for their review. Coordinator Parrish provided a summation of the policy's components. With regard to Section IV, Policies for the Use of Tax Abatement, Commissioner Carlson suggested that a 20% equity investment might be more appropriate than a 20 percent"cash" equity investment under letter b. Also with regard to Section IV, Policies for the Use of Tax Abatement, Commissioner Field suggested adding "as established by a licensed appraiser"to letter c. Coordinator Parrish suggested two additional changes. First, under Section V. Project Qualifications, he suggested public infrastructure be incorporated. This was agreeable to the Commission. Second, under Section VIII, letter"E"he suggested that"To be returned upon project completion"be omitted from the application fee component. With regard to the evaluation tool contained within Section X, Commissioner Carlson suggested that some additional criteria be incorporated to account things such as exterior improvements and other intangible criteria. It was agreed that additional items would be incorporated into the bonus points component of the evaluation tool. After additional discussion, it was agreed that Coordinator Parrish would make the aforementioned changes and present the policy for final consideration at the next Commission meeting. 8. Adjournment There being no further business before the Commission, this meeting of the Economic Development Commission adjourned at 8:50 a.m. Respectfully Submitted, • Aaron Parrish Economic Development Coordinator • N:\DATA\GROUP S\ECONDE V\EDC\Minutes\Min00\06-22-00.doc Item No. 6A Meeting Date: July 27th, 2000 Type of Business: EB • EB: EDC Business IN: Informational Item City of Mounds View Staff Report To: Economic Development Commission From: Aaron Parrish, Economic Development Coordinator Item Title/Subject: Tax Abatement Finance Policy Revisions Date of Report: July 17, 2000 Background: At the June meeting of the Economic Development Commission,the Commission discussed the use of tax abatement in Mounds View, and suggested several changes to a proposed tax abatement policy. Changes based on the preliminary review of the policy are highlighted in bold italics and are contained on pages 4, 5, 8, and 17. The two primary changes include adding a section highlighting the use of abatement with regard to public infrastructure(page 8)and the incorporation of two additional bonus point categories in the evaluation tool (page 17). Necessary Actions: Evaluate the revisions contained within the proposed Tax Abatement Finance Policy and subsequently recommend a policy to the Economic Development Authority. • Aaron Parrish, Economic Development Coordinator (763) 717-4029 • • N:\DATA\GROUPS\ECONDEV\EDC\Staff Reports\Staff00\07-6A.doc • Tax Abatement Finance Policy & Application City of Mounds View, Minnesota Adopted: ,2000 • Draft • 1 Table of Contents I. Policy Purpose 3 II. Difference Between Tax Abatement & TIF 3 III. Objectives of Tax Abatement Financing 3 IV. Policies for the Use of Tax Abatement 4 V. Project Qualifications 5 VI. Subsidy Agreement & Reporting Requirements 6 VII. Application Process for Tax Abatement Financing 7 VIII. Attachment A: Application 9 IX. Attachment B: Deposit Agreement 13 X. Attachment C: Application Review Worksheet 16 • XI. Attachment D: Sample But-For Analysis 18 2 • I. POLICY PURPOSE The purpose of this policy is to establish the Mounds View Economic Development Authority's, hereafter referred to as the EDA, position relating to the use of tax abatement financing for private development above and beyond the requirements and limitations set forth by State Law. This policy shall be used as a guide in the processing and review of applications requesting tax abatement. The fundamental purpose of tax abatement in Mounds View is to encourage desirable development or redevelopment that would not otherwise occur but for the assistance provided. The Mounds View EDA is granted the power to utilize tax abatement financing by the Minnesota Tax Abatement Act, as amended. It is the intent of the EDA to provide the minimum tax abatement, as well as other incentives, at the shortest term required for the project to proceed. The EDA reserves the right to approve or reject projects on a case by case basis, taking into consideration established policies, project criteria, and demand on city services in relation to the potential benefits from the project. Meeting policy criteria does not guarantee the award of tax abatement to the project. Approval or denial of one project is not intended to set precedent for approval or denial of another project. • II. DIFFERENCE BETWEEN TAX ABATEMENT & TIF The primary difference between Tax Abatement Financing and Tax Increment Financing (TIF) is the way in which the dollars are awarded to the project. When TIF is awarded to a project by the EDA, the other political subdivisions (the school district and the county) are required to contribute their portion of the increased taxes to the project. Conversely, when tax abatement financing is requested, each political subdivision has the option of granting its portion of the increased taxes to the prgject. Depending on the position of the respective taxing jurisdictions, the dollars generated by tax abatement have the potential to be less than the dollars generated with TIF. III. OBJECTIVES OF TAX ABATEMENT FINANCING As a matter of adopted policy, the EDA will consider using tax abatement financing to assist private development projects to achieve one or more of the following objectives: • To enhance and diversify the City of Mounds View's economic base. • 3 • To encourage the revitalization and redevelopment of the Highway 10 • Corridor. • To encourage additional unsubsidized private development in the area, either directly or indirectly through "spin off' development. • To facilitate the development process and to achieve development on sites which would not be developed without assistance. • To remove blight and/or encourage redevelopment of commercial and industrial areas in the city that result in high quality redevelopment and private reinvestment. • To encourage the removal of blight or the rehabilitation of a high profile or priority site. • To offset increased costs of redevelopment (i.e. contaminated site clean up, demolition expenses etc. . .) over and above the costs normally incurred in development. • To increase the tax base. • To create housing opportunities. • To retain local jobs and/or increase the number and diversity of jobs that offer stable employment and/or attractive wages and benefits. • To finance the costs associated with public infrastructure and public facilities • To contribute to'the implementation of other public policies, as adopted by the EDA from time to time, such as the promotion of quality architectural design, enhanced recreational opportunities, and decreasing capital and/or operating costs of local government. IV. POLICIES FOR THE USE OF TAX ABATEMENT a. Tax abatement assistance will be provided to the developer upon receipt of taxes by the EDA, otherwise referred to as the pay-as-you-go method. Requests for up front financing will be considered on a case by case basis. • 4 b. Any developer receiving a tax abatement shall provide a minimum of twenty percent (20%) equity investment in the project. c. Tax abatement will not be used in circumstances where land and/or property price is in excess of fair market value as established by a licensed appraiser. d. A market demand shall be demonstrated for the proposed project. e. Tax abatement will not be utilized in cases where it would create an unfair and significant competitive financial advantage over other projects in the area. f. Tax abatement shall not be used for projects that would place extraordinary demands on city services or for projects that would generate significant environmental impacts. g. The developer must provide adequate financial guarantees to ensure completion of the project, including, but not limited to: assessment • agreements, letters of credit, personal guaranties, and additional documentation as necessary. h. The developer shall adequately demonstrate, to the EDA's sole satisfaction, an ability to complete the proposed project based on past development experience, general reputation, and credit history, among other factors, including the size and scope of the proposed project. i. For the purposes of underwriting the proposal, the developer shall provide any requested market, financial, environmental, or other data requested by the EDA or its consultants. V. PROJECT QUALIFICATIONS All tax abatement projects considered by the Mounds View EDA must meet each of the following requirements: a. The project shall meet at least one of the objectives set forth in section III of this document. b. The use of tax abatement will be limited to: • • Industrial development, expansion, redevelopment, or rehabilitation; or 5 • Commercial redevelopment or rehabilitation; or S • Office or research facilities; • Housing and infrastructure. • Public Infrastructure c. The developer shall demonstrate that the project is not financially feasible but-for the tax abatement financing provided. d. The project shall comply with all provisions set forth in Minnesota's Tax Abatement Law, statues 469.1812 to 469.1815, as amended. e. The project must be consistent with the City's Comprehensive Plan and Zoning Ordinances. VI. SUBSIDY AGREEMENT & REPORTING REQUIRMENTS All developers/businesses receiving a tax abatement, or other assistance in excess of$100,0000 from the Mounds View EDA shall be subject to the provisions and requirements set forth by state statute 116J.993 and summarized below. All developers/businesses receiving tax abatement assistance shall enter into • a subsidy agreement with the Mounds View EDA that identifies: the reason for the subsidy, the public purpose served by the subsidy, and the goals for the subsidy, as well as other criteria set forth by statute 116J.993. The developer/business shall file a report annually for two years after the date the benefit is received or until all goals set forth in the application and business subsidy agreement have been meet, whichever is later. Reports shall be completed using the format drafted by the State of Minnesota and shall be filed with the Mounds View EDA no later than March 1 of each year for the previous calendar year. Businesses fulfilling job creation requirements must file a report to that effect with the city within 30 days of meeting the requirements. The developer/business owner shall maintain and operate its facility at the site where the tax abatement and/or other assistance is used for a period of five years after the benefit is received. In addition to attaining or exceeding the jobs and wages goals set forth in the Subsidy Agreement, the borrower shall achieve at least one of the objectives set forth in Section III of this document. • 6 Developers / Businesses failing to comply with the above provisions will be subject to fines, repayment requirements, and be deemed ineligible by the State to receive any loans or grants from public entities for a period of five years. See the City's Business Subsidy Policy for additional information. VII. APPLICATION PROCESS FOR TAX ABATEMENT FINANCING A. PRIVATE (RE) DEVELOPMENT PROJECTS 1. Applicant submits the completed application along with all application fees. 2. City staff reviews the application and completes the Application Review Worksheet. 3. Results of the Worksheet are submitted to the appropriate governing authorities for preliminary approval of the proposal. 4. If preliminary approval is granted, all necessary notices, resolutions and certificates are prepared by City staff and/or consultants. • 5. If necessary, public hearing(s) on the proposed project are held. 6. The EDA grants final approval or denial of the proposal. B. OTHER POLITICAL SUBDIVISIONS It is recommended that applicants intending to seek tax abatement financing from Ramsey County and/or School District 621 make their applications to those bodies concurrent with their application to the Mounds View EDA. For more information on applying for a tax abatement financing from Ramsey County and/or School District 621, contact: Judy Karon Director, Community and Economic Development Ramsey County 651-266-8006 Dr. Jan Witthuhn Superintendent Mounds View School District#621 651-639-6001 • 7 C. PUBLIC FACILITY AND INFRASTRUCTURE PROJECTS • When abatement is being utilized to finance public facility and infrastructure projects, as opposed to those oriented toward private business and development objectives, the following process will be adhered to: 1. The EDA will recommend the preliminary use of tax abatement financing for a particular facility/infrastructure project. A formal application, deposit agreement, and application worksheet will not be required. 2. If preliminary approval is granted, all necessary notices, resolutions and certificates are prepared by city staff and/or consultants. 3. If necessary, public hearing(s) on the proposed project are held. 4. The EDA grants final approval or denial of the proposal. • • 8 VIII. ATTACHMENT A: APPLICATION FOR TAX ABATEMENT FINANCING A. APPLICANT INFORMATION Name of Corporation/Partnership Address Primary Contact Address Phone Fax Email On a separate sheet, please provide the following: • Brief description of the corporation/partnership's business, including history, principal product or service, etc... Attach as Exhibit A . • Brief description of the proposed project. Attach as Exhibit B. • List names of officers and shareholders/partners with more than five• o- percent (5%) interest in the corporation/partnership. Attach as Exhibit C. • A but-for analysis and narrative. Attach as Exhibit D. Attorney Name Address Phone Fax Email Accountant Name Address Phone Fax Email • Contractor Name Address Phone Fax Email Engineer Name Address Phone Fax Email Architect Name Address Phone Fax Email • 9 • B. PROJECT INFORMATION 1. The project will be: Vacant Land Development New Construction Expansion Commercial Redevelopment: New Construction Expansion Industrial Redevelopment: New Construction Rehabilitation Housing : New Construction Rehabilitation Other 2. In addition to the Mounds View EDA, applicant is requesting abatement funds from: Ramsey County School District 621 3. The project will be: _Owner Occupied Leased Space • If leased space, please attach a list names and addresses of future lessees and indicate the status of commitments or lease agreements.Attach as Exhibit E. 4. Project Address • Include Legal Description and PID Number. Attach as Exhibit F 5. Site Plan Attached: Yes No 6. Total Abatement Requested: $ over years. • City Abatement : Annual $ Total $ County Abatement: Annual $ Total $ ISD 621 Abatement: Annual $ Total $ 7. Current Real Estate Taxes on Project Site: $ Estimated Real Estate Taxes upon Completion: $ 8. Construction Start Date: Construction Completion Date: If Phased Project: Year % Completed Year % Completed C. PUBLIC PURPOSE It is the policy of the Mounds View EDA that the use of tax abatement financing should result in a benefit to the public. Please indicate how this project will serve a public purpose. Industrial development resulting in additional private investment _Enhancement and/or diversification of the city's economic base. Removal of blight. • 10 Provide housing opportunities Expand the tax base Rehabilitation of a high profile or priority site. _Job Creation/Retention: Number of existing jobs Number of jobs created by project Average hourly wage of jobs created Other: D. SOURCES & USES SOURCES NAME AMOUNT Bank Loan $ Other Private Funds $ Equity $ Fed Grant/Loan $ State Grant/Loan $ Tax Abatement $ ID Bonds $ Other $ TOTAL $ • USES AMOUNT Land Acquisition $ Site Development $ Construction $ Machinery & Equipment $ Architectural & Engineering Fees $ Legal Fees $ Interest During Construction $ Debt Service Reserve $ Contingencies $ Other $ • TOTAL $ 11 E. ADDITIONAL DOCUMENTATION AND CHECKLIST • Applicants will also be required to provide the following documentation. A) Written business plan, including a description of the business, ownership/management, date established, products and services, and future plans B) Financial Statements for Past Three Years Profit & Loss Statement Balance Sheet C) Current Financial Statements Profit & Loss Statement to Date Balance Sheet to Date D) Two Year Projections E) Personal Financial Statements of all Major Shareholders if"Up Front" Financing is Requested Profit & Loss Current Tax Return F) Letter of Commitment from Applicant Pledging to Complete During the Proposed Project Duration • G) Application fee of$1000 H) Additional information that will be helpful in evaluating your application Note: All Major shareholders will be required to sign personal guarantees if up front financing of the project is required. The undersigned certifies that'all information provided in this application is true and correct to the best of the undersigned's knowledge. The undersigned authorizes the Mounds View Economic Development Authority to check credit references and verify financial and other information. The undersigned also agrees to provide any additional information as may be requested by the Authority after the filing of this application. Applicant Name Date By Its • 12 Ix. Attachment B: Deposit Agreement Deposit Agreement for Evaluation of Tax Abatement Finance Assistance By and Between the Mounds View Economic Development Authority and (The Applicant) This agreement made as of the day of , 2000 by and between the MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY, a body corporate and politic, organized and existing under the laws of the State of Minnesota (the "EDA") and (The Applicant). WITNESSETH: WHEREAS, the EDA has the powers provided in Minnesota Statutes, Sections 469.1812 to 469.1815, as amended (collectively, the "Act"); and WHEREAS, pursuant to and in furtherance of the objectives of the Act, the EDA has undertaken a program to promote development and redevelopment of • certain land within the City of Mounds View NOW THEREFORE, in consideration of a mutual covenants made herein and for other good and valuable consideration set forth in the Agreement, the parties agree as follows: Section 1. (The Applicant ) agrees to provide the EDA with a deposit of $1,000 for the EDA's consultants to investigate the feasibility of providing Tax Abatement Financing assistance to (The Applicant) for the redevelopment of the (the "Property"). If the EDA.incurs additional expenses directly related to the feasibility of providing Tax Abatement Assistance to (The Applicant) beyond the $1,000, prior to the execution of the Developer's Agreement, the EDA shall notify (The Applicant) in writing and (The Applicant) will be required to deposit additional funds as a condition of the EDA entering into any such Development Agreement. Section 2. If the project is approved and (The Applicant) proceeds with the project, the EDA shall reimburse (The Applicant's) deposit to the extent permissible under applicable statute including statues 469.1812 to 469.1815, as amended. If (The Applicant) does not proceed with the redevelopment of the Property due to the decision of either the EDA or (The Applicant), the EDA shall reimburse the applicant for the unused portion of the deposit. • 13 Section 3. Nothing contained in this agreement shall in any way obligate • either party to proceed with the redevelopment of the Property or otherwise enter into a Development Agreement. IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first above written. MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY BY: Dan Coughlin ITS PRESIDENT BY: Michael Ulrich ITS EXECUTIVE DIRECTOR • STATE OF MINNESOTA) SS COUNTY OF ) The foregoing instrument was acknowledged before me on this day of , 2000, by Dan Coughlin and Michael Ulrich, the President and Executive Director respectively of the Mounds View Economic Development Authority named in the foregoing instrument. Notary Public • 14 (The Applicant) BY: • ITS: STATE OF MINNESOTA) ) SS COUNTY OF ) The foregoing instrument was acknowledged before me on this day of , 2000, by , the of (The Applicant) named in the foregoing instrument. Notary Public • • 15 X. ATTACHMENT C: APPLICATION REVIEW WORKSHEET TO BE COMPLETED BY CITY STAFF . 1. The project meets the criteria set forth in Section V of the Tax Abatement Financing policy. a) Meets at least one of the objectives in Section III. b) Demonstrates need for TAF with the but-for analysis. c) Consistent with all city plans and ordinances. d) Conforms with the criteria defined in Section V. 2. Ratio of Private to Public Investment in Project: Points: $ Private investment 5:1 5 $ Public Investment 4:1 4 Ratio Private : Public Financing 3:1 3 2:1 2 Less than 2:1 1 3. Job Creation in the City of Mounds View: Points: Number of net new jobs as a result of the project. 25+ 5 Number of existing/retained jobs divided by 10. 20+ 4 Total 15+ 3 10+ 2 Less than 10 1 4. Ratio of TAF to new jobs created: Points: . $ TAF request $8,000 or less 5 Number of new jobs created $10,000 or less 4 $ of TAF per new job created $12,000 or less 3 $15,000 or less 2 Over $15,000 1 5. Wage Level of jobs created: Points: Average hourly wage Over $21/ hour 5 of jobs created: $18-21 / hour 4 $14-17 / hour 3 $10-13 / hour 2 Under $10 / hour 1 6. Project size: Points: The project will result in the construction 30,000+ 5 of net square feet 20,000+ 4 10,000+ 3 5,000+ 2 5,000 or less 1 • 16 7. Type of Project: Points: 100% Owner Occupied 5 • Mix Owner Occupied & Investment 4 Investment Property 3 8. Use: Points: Industrial 5 Office 5 Warehouse/Distribution 4 Commercial 3 Housing 3 9. The project will pay annual Points: property taxes in the first fully 25,000+ 5 assessed year of$ 15,000+ 4 10,000+ 3 5,000+ 2 Under $5,000 1 10. Likelihood that the project will result in Points: unsubsidized, spin-off development. High 5 Moderate 3 Low 1 S Sub - Total Points: of a possible 45 points. 9. Bonus Points Bonus Points: The project will be 100%pay-as-you-go TAF. 3 points The project contributes to Highway 10 Redevelopment 3 points The project results in substantial interior or exterior renovation 3 points The project will enhance the aesthetics of the surrounding area through high quality architectural and/or urban design 3 points Total Points: Overall project analysis: High 45-38 points Moderate 37-29 points Low 28-20 points Not Eligible 19-0 points • 17 XI. SAMPLE BUT-FOR ANALYSIS 4111 WITH NO WITH TAX ABATEMENT FINANCING TAX ABATEMENT FINANCING SOURCES AND USES SOURCES AND USES SOURCES SOURCES Mortgage 9,600,000 8,667,000 Equity 2,400,000 2,400,00 Tax Abatement Financing 0 933,000 TOTAL SOURCES 12,000,000 12,000,000 USES USES Land 1,500,000 1,500,000 Site Work 300,000 300,000 Soil Correction 468,000 468,000 Demolition 100,000 100,000 Relocation 65,000 65,000 Subtotal Land Costs 2,433,000 2,433,000 Construction 6,750,000 6,750,000 Finish Manufacturing 250,000 250,000 Subtotal Construction Costs 7,000,000 7,000,000 Soft Costs 350,000 350,000 Taxes 35,000 35,000 • Finance Fees 850,000 850,000 Project Manager 542,000 542,000 Developer Fee 540,000 540,000 Contingency 250,000 250,000 Subtotal Soft Costs 2,567,000 2,567,000 TOTAL USES 12,000,000 12,000,000 Income Statement Income Statement Sq. Ft. Per Sq. Ft. Sq. Ft. Per Sq. Ft. Rent-Space 1 100,000 $8.00 800,000 100,000 $8.00 800,000 Rent-Space 2 25,000 $8.50 212,500 25,000 $8.50 212,500 Rent-Space 3 25;000 $9.00 225,000 25,000 $9.00 225,000 Other 0 $0.00 0 0 $0.00 0 1,237,500 1,237,500 Mortgage 20 Term 1,051,646 20 Term 949,439 9.00% Interest 9.00% Interest 9,600,000 Principal 8,667,000 Principal Net Income 185,854 288,061 Total Return on Equity 7.74% 12.00% S N:\DATA\GROUPS\ECONDEV\Tax Abatement\Abatement Policy.DOC 18 • Minutes of the Economic Development Commission City of Mounds View Ramsey County, Minnesota Regular Meeting July 27th, 2000 City of Mounds View, Council Chambers 2401 Highway 10, Mounds View, MN 55112 1. CALL TO ORDER: The meeting was called to order at 7:35 a.m. by Chairperson Tom Field. 2. ROLL CALL: Members Present: Dr. Greg Belting, Cindy Carlson, Tom Field, Torri Johnson, Rosemary Goff, Sean Walther, and EDA Liaison Dan Coughlin. Members Absent: Wendy Marty Staff Present: Economic Development Coordinator Aaron Parrish and Community Development Director Rick Jopke 3. APPROVAL OF MINUTES: 41111 Motion/Second: Carlson/Goff moved to approve the minutes for July 27th 2000. Motion Carried: 6 Ayes 0 Nays 4. SPECIAL BUSINESS There was no Special Business before the Commission 5. REPORT OF COMMISSIONERS, STAFF AND EDA LIAISON A. Commissioner and EDA Liaison Reports Chair Field indicated that the Highway 10 Steering Committee had conducted a public forum on July 11th. Commissioner Walther said that there was a fair turnout and the primary concerns expressed focused on pedestrian safety. He indicated that items suggested to improve safety included increased signal walk times and enhanced lighting. Commissioner Walther also pointed out that two businesses were in attendance that have noticed a decline in traffic, but were generally supportive of efforts to redesign the roadway. Also regarding Highway 10, Commissioner Belting highlighted the opportunity to redesign the roadway once it was turned back to the County. Chair Field also discussed a follow up meeting to the public forum where the concerns of attendees and Committee members were synthesized. He also noted that Committee is implementation focused. Community Development Director Jopke noted that this was the first phase of a two phase study. The second phase will articulate an action plan. Economic Development Coordinator Parrish told the Commission that the Pak building is S currently being marketed by ReMax Commercial. He also indicated that the EDA authorized staff to retain Ehlers and Associates address some administrative matters related to Mounds View's TIF districts. It was also noted that Ehlers was designated as financial N:\DATA\GROUPS\ECONDEV\EDC\Minutes\Min00\07-27-00.doc Approdc[ advisor to the EDA. Finally, Coordinator Parrish indicated that the Commission will be • conducting its first business retention visit at the conclusion of the meeting. B. NB—MV Chamber of Commerce Update Commissioner Belting indicated that the Chamber will be hosting its annual 'Gala" event later on in the evening. The event will be held at the Minnesota History Center. C. Highway 10 Steering Committee Update Chair Field indicted that the work of the Highway 10 Steering Committee was under Commissioner Reports. D. I-35W Corridor Coalition Update Community Development Director Rick Jopke gave the Commission an update with regard to the North Metro I-35W Corridor Coalition. Director Jopke indicated that a large portion of the Coalition's current efforts are directed toward the completion of a"Build-Out and Transportation Study." The study will articulate long-range build-out and transportation alternatives for the subregion. E. Mermaid Hotel and Banquet Center Site Plan Coordinator Parrish provided an overview of the site plan submitted for the Mermaid Hotel and Banquet Center expansion. Based on the initial submission of plans, Coordinator Parrish indicated that a 96 room Amerclnn Hotel and 15,000 square foot banquet center are • still planned. 6. EDC BUSINESS A. Tax Abatement Finance Policy Revisions Coordinator Parrish provided and overview of changes made to the tax abatement finance policy from the last Commission meeting. After reviewing the changes, the following motion was made: Motion/Second: Carlson/Walther moved to recommend approval of the Tax Abatement Finance Policy by the Economic Development Authority. Motion Carried: 6 Ayes 0 Nays 7. Adjournment There being no further business before the Commission, this meeting of the Economic Development Commission adjourned at 8:07 a.m. 8. Business Retention Visit Respectfully Submitted, • Aaron Parrish Economic Development Coordinator N:ADATA\GROUPS\ECONDEV\EDC\Minutes\Min00\07-27-00.doc ECONOMIC DEVELOPMENT COMMISSION AGENDA • September 28th 2000 7:30 A.M. 1 MOUNDS VIEW CITY HALL - CITY COUNCIL CHAMBERS 1 x- 1. I 1. CALL TO ORDER 7 - 2 e A.M. 1 2. ROLL CALL (Present = P, Absent = A) � Belting Marty I Carlson Walther Field .. Coughlin (EDA Liaison) Goff Jopke (Staff) ✓ Johnson Parrish (Staff) 3. APPROVE EDC MINUTES July 27th, 2000 Acfion: Motion Second Vote 4. SPECIAL BUSINESS 5. REPORT OF COMMISSIONERS, STAFF AND EDA LIAISON 41, A. Report of Commissioners -No Materials Attached <°e Ary V6'' Ly.,` 14' B. Chamber of Commerce Update -No Materials Attached C. Walgreens Approval — No Materials Attached i D. Mermaid TIF Assistance and Development Review— No Materials Attached 6. EDC BUSINESS A. Annual Parcel Decertification B. Pooled Funds Budgetary Recommendations 7. ADJOURN A.M. 8. BUSINESS RETENTION VISIT: None Scheduled 1 Next Regularly Scheduled Meeting: October 26th, 2000 at 7:30 A.M 1 1111 N:\DATA\GROUPS\ECONDEV\EDC\Agcndas\Agenda00\09-28-00.doc Item No. 6B Meeting Date: August 241h, 2000 Type of Business: EB • EB:EDC Business IN: Informational Item City of Mounds View Staff Report To: Economic Development Commission From: Aaron Parrish, Economic Development Coordinator Item Title/Subject: Pooled Funds / EDA Special Revenue Fund Budgetary Recommendations Date of Report: August 16, 2000 Background: The recently adopted TIF Policy requires the following: "To more effectively utilize pooled increment, the Economic Development Commission will recommend funding priorities to the Economic Development Authority. This will be done in conjunction with the annual budgetary process." Accordingly, it is necessary for the EDC to review and/or recommend budgetary priorities to the EDA. A 2001 Budget Summary and Detail for the EDA Special Revenue Fund has been included for your review. Aside from bond payments, pay-as-you-go obligations, and staffing expenditures all of which are relatively fixed,there are some allocations that are discretionary in nature. These expenditures are primarily related to capital outlays. For discussion purposes,the following discretionary expenditures have been proposed • for 2001: Account Description Program Proposed Expenditure 7050 Capital / Real Estate Highway 10 Construction Improvements $50,000 7050 Capital / Real Estate Housing Rehab Program $160,000 7060 Business Loans Business Improvement Partnership Loans $25,000 TOTAL $235,000 As existing bond and pay-as-you-go obligations are paid off, it is anticipated that the level of discretionary expenditures will increase. To make effective use of scarce resources, it is anticipated that a long-term TIF financial plan and Economic Development Plan will be developed in the near future. Necessary Actions: Evaluate and Recommend Budgetary Priorities for Pooled TIF Funds Aaron Parrish, Economic Development Coordinator (763) 717-4029 • N:\DATA\GROUPS\GCONDEV\EDC\Staff Rcports\StafIDO\08-613.doc • 2001 Budget Summary 8/16/00, 4:05 PM 1994 1995 1996 1997 1998 1999 2000 2001 Change from 2000 Actual Actual Actual Actual Actual Actual Budget Budget Dollar Percent EDA(Fund 230): • Revenues 3370 Other local government rev 0 0 0 0 0 0 0 0 0 0.00% Grants 0 0 0 4,000 0 0 0 0 0 0.00% 3410 Marketing revenue 0 0 850 0 0 0 750 750 0 0.00% 3610 Investment income 0 0 (2,403) 0 0 0 (1,500) (1,500) 0 0.00% 3680 Other revenue 0 0 0 282 2,988 486 0 0 0 0.00% 3911 Sale of assets 0 0 0 0 0 47,450 0 0 0 0.00% 3972 Transfers 88,700 93,695 98,078 113,532 176,000 188,196 468,650 468,650 0 0.00% Loan repayments 0 0 2,193 0 0 0 0 0 0 0.00% Total revenue 88,700 93,695 98,718 117,814 178,988 236,132 467,900 467,900 0 0.00% Operating expenses Economic Development(4650): Personnel services 0100 Salaries,regular 59,873 67,787 65,916 84,773 28,716 62,535 66,601 72,085 5,484 8.23% 0110 Salaries,overtime 0 0 191 67 2 149 0 0 0 0.00% 0150 Salaries,part-time 0 327 0 0 0 0 0 0 0 0.00% 0300 Pensions 6,093 7,430 7,988 9,759 3,076 6,608 8,545 9,610 1,065 12.46% 0400 Group insurance 6,209 7,174 5,071 5,112 398 0 4,380 4,545 165 3.77% 0500 Workers compensation 251 167 171 420 588 418 544 590 46 8.46% 0990 Severence pay 0 0 0 0 369 0 0 0 0 0.00% Total personnel services 72,426 82,885 79,337 100,131 33,149 69,710 80,070 86,830 6,760 8.44% Materials&supplies 1600 Supplies,operating 0 0 0 145 182 326 500 500 0 0.00% 2100 Book&periodicals 81 216 220 211 138 75 430 430 0 0.00% Total materials&supplies 81 216 220 356 320 401 930 930 0 0.00% Contractual services 3030 Other professional services 12,780 799 2,028 5,002 62,052 27,365 140,000 135,600 (4,400) -3.14% 3420 Advertisements 0 2,730 4,028 409 21 769 2,000 2,000 0 0.00% • 3430 Printing 1,829 1,620 1,283 6,781 159 59 2,700 2,700 0 0.00% 3610 Memberships 125 1,315 7,264 3,236 3,733 7,269 4,650 4,650 0 0.00% 3630 Training&conferences 1,389 3,389 2,305 2,292 1,231 2,162 2,400 2,950 550 22.92% 3800 Mileage 70 161 110 175 533 886 150 150 0 0.00% Total contractual services 16,193 10,014 17,018 17,895 67,729 38,510 151,900 148,050 (3,850) -2.53% Capital outlays 7030 Equipment 0 580 1,575 0 6,532 20,000 0 0 0 0.00% 7050 Construction 0 0 0 0 71,258 107,511 210,000 210,000 0 0.00% 9300 Business loans 0 0 0 0 0 0 25,000 25,000 0 0.00% Total capital outlays 0 580 1,575 0 77,790 127,511 235,000 235,000 0 0.00% Miscellaneous: 9900 Transfer out 0 0 0 0 0 0 0 0 0 0.00% Total miscellaneous 0 0 0 0 0 0 0 0 0 0.00% Total expenditures 88,700 93,695 98,150 118,382 178,988 236,132 467,900 470,810 2,910 0.62% Net income 0 0 568 (568) 0 0 0 (2,910) (2,910) 0.00% Equity,beginning year 0 0 0 568 0 0 0 0 0 0.00% Equity,end of year 0 0 568 0 0 0 0 (2,910) (2,910) 0.00% • SR 12 2001 Budget 8/17/00, 2:51 PM Fund: 230 Department: 4650 Special Revenue-EDA Fund Proposed ccount Description Budget Detail Description 3901 Investment income (1,500) (1,500) Interest on negative cash balance (1,500) 3932 Marketing revenue 750 750 Advertising revenue 750 3961 Transfers 468,650 468,650 Transfers from the 3 existing TIF districts 468,650 3991 Loan repayments 0 0 Repayment on business loans. 0 Expenditures 1600 Supplies,operating 500 500 Misc office supplies 500 2100 Books&periodicals 430 70 City business journal 82 Real estate journal 35 LMC directory 88 Misc.reports&periodicals 155 Mics.marketing books 430 3030 Other professional services 135,600 20,000 Legal fees for development reviews 20,000 Financial consultant fees 90,000 Special project consultant fees 3,500 Appraisal and environmental fees 600 IRIS fees II1,500 Marketing fees 135,600 3420 Advertising 2,000 2,000 Targeted advertisements. 2,000 3430 Printing 2,700 500 Property ad printing 200 Stationary/business cards/signs/site info 1,500 Business directory reprints 500 Misc printing 2,700 3610 Memberships 4,650 400 Economic Development Assoc of MN(EDAM) 550 Metro East Development Partnership 300 New Brighton/Mounds View Chamber of Commerce dues 375 American Economic Development C 3,025 North Metro Mayors Assoc(50%of dues,balance in 4,650 General Fund,City Council budget). 3630 Training&conferences 2,950 350 Chamber of Commerce meetings 800 DTED/NDC training 150 EDAM monthly meetings 650 EDAM summer conference 1,000 Other misc conferences 2,950 3800 Mileage 150 150 Misc.mileage 7030 Capital,equipment 0 0 0 • 7050 Capital,real estate 210,000 50,000 Hwy 10 construction improvements 160,000 Housing rehab program 210,000 7060 Business loans 25,000 25,000 Business improvement partnership loans 25,000 SR Not Approved • Minutes of the Economic Development Commission City of Mounds View Ramsey County, Minnesota Regular Meeting July 27th, 2000 City of Mounds View, Council Chambers 2401 Highway 10, Mounds View, MN 55112 1. CALL TO ORDER: The meeting was called to order at 7:35 a.m. by Chairperson Tom Field. 2. ROLL CALL: Members Present: Dr. Greg Belting, Cindy Carlson, Tom Field, Torri Johnson, Rosemary Goff, Sean Walther, and EDA Liaison Dan Coughlin. Members Absent: Wendy Marty Staff Present: Economic Development Coordinator Aaron Parrish and Community Development Director Rick Jopke 3. APPROVAL OF MINUTES: Motion/Second: Carlson/Goff moved to approve the minutes for July 27th 2000. Motion Carried: 6 Ayes 0 Nays 4. SPECIAL BUSINESS There was no Special Business before the Commission 5. REPORT OF COMMISSIONERS, STAFF AND EDA LIAISON A. Commissioner and EDA Liaison Reports Chair Field indicated that the Highway 10 Steering Committee had conducted a public forum on July 11th Commissioner Walther said that there was a fair turnout and the primary concerns expressed focused on pedestrian safety. He indicated that items suggested to improve safety included increased signal walk times and enhanced lighting. Commissioner Walther also pointed out that two businesses were in attendance that have noticed a decline in traffic, but were generally supportive of efforts to redesign the roadway. Also regarding Highway 10, Commissioner Belting highlighted the opportunity to redesign the roadway once it was turned back to the County. Chair Field also discussed a follow up meeting to the public forum where the concerns of attendees and Committee members were synthesized. He also noted that Committee is implementation focused. Community Development Director Jopke noted that this was the first phase of a two phase study. The second phase will articulate an action plan. Economic Development Coordinator Parrish told the Commission that the Pak building is • currently being marketed by ReMax Commercial. He also indicated that the EDA authorized staff to retain Ehlers and Associates address some administrative matters related to Mounds View's TIF districts. It was also noted that Ehlers was designated as financial N:ADATA\GROUPS\ECONDEV\EDC\Minutcs\Min00\07-27-00.doc Not Approved advisor to the EDA. Finally, Coordinator Parrish indicated that the Commission will be conducting its first business retention visit at the conclusion of the meeting. B. NB—MV Chamber of Commerce Update Commissioner Belting indicated that the Chamber will be hosting its annual `Gala"event later on in the evening. The event will be held at the Minnesota History Center. C. Highway 10 Steering Committee Update Chair Field indicted that the work of the Highway 10 Steering Committee was under Commissioner Reports. D. I-35W Corridor Coalition Update Community Development Director Rick Jopke gave the Commission an update with regard to the North Metro I-35W Corridor Coalition. Director Jopke indicated that a large portion of the Coalition's current efforts are directed toward the completion of a"Build-Out and Transportation Study." The study will articulate long-range build-out and transportation alternatives for the subregion. E. Mermaid Hotel and Banquet Center Site Plan Coordinator Parrish provided an overview of the site plan submitted for the Mermaid Hotel and Banquet Center expansion. Based on the initial submission of plans, Coordinator Parrish indicated that a 96 room Amerclnn Hotel and 15,000 square foot banquet center are • still planned. 6. EDC BUSINESS A. Tax Abatement Finance Policy Revisions Coordinator Parrish provided and overview of changes made to the tax abatement finance policy from the last Commission meeting. After reviewing the changes, the following motion was made: Motion/Second: Carison/Walther moved to recommend approval of the Tax Abatement Finance Policy by the Economic Development Authority. Motion Carried: 6 Ayes 0 Nays 7. Adjournment There being no further business before the Commission,this meeting of the Economic Development Commission adjourned at 8:07 a.m. 8. Business Retention Visit • Respectfully Submitted, • Aaron Parrish Economic Development Coordinator N:\DATA\GROUPS\ECONDEV\EDC\Minutcs\Min00\07-27-00.doc Minutes of the Economic Development Commission • City of Mounds View Ramsey County, Minnesota Regular Meeting September 28th, 2000 City of Mounds View, Council Chambers 2401 Highway 10, Mounds View, MN 55112 1. CALL TO ORDER: The meeting was called to order at 7:35 a.m. by Chairperson Tom Field. 2. ROLL CALL: Members Present: Dr. Greg Belting, Cindy Carlson, Tom Field, Torri Johnson, Rosemary Goff, Sean Walther, and Wendy Marty. Members Absent: EDA Liaison Dan Coughlin Staff Present: City Administrator Kathleen Miller, Economic Development Coordinator Aaron Parrish, and Community Development Director Rick Jopke 3. APPROVAL OF MINUTES: • Motion/Second: Goff moved to approve the minutes for July 27th 2000. Motion Carried: 7 Ayes 0 Nays 4. SPECIAL BUSINESS Chair Field welcomed Mounds View's new City Administrator Kathleen Miller. City Administrator Miller and members of the Commission introduced themselves. 5. REPORT OF COMMISSIONERS, STAFF AND EDA LIAISON A. Commissioner and EDA Liaison Reports Chair Field opened for discussion the possibility of changing the meeting date to something other than the 4th Thursday of the month. After evaluating possibilities, the following motion was made: Motion/Second: Carlson / Belting moved have the next EDC meeting on Friday October, 27th at 7:30 am. Motion Carried: 7 Ayes 0 Nays Subsequent to the motion, the possibility of combining the November and December meetings was discussed. The Commission agreed to evaluate this possibility at its next meeting. 411 B. NB-MV Chamber of Commerce Update N:ADATA\GROUPS\ECONDEV\EDC\Minutes\Min00\09-28-00.doc Commissioner Belting indicated that the Chamber will be sponsoring a "Business After • Hours"at Irondale High School on Thursday October 12, 2000. Commissioner Carlson discussed the goals and objectives of the event, and stated that this will kick off a fundraiser for Irondale High School to update equipment related to manufacturing careers. C. Walgreens Approval Coordinator Parrish told the Commission that Walgreens had been granted development stage approval of their PUD application. He indicated that once the PUD application received administrative approval and the final plat was finalized, the development could begin construction. D. Mermaid TIF Assistance and Development Review Coordinator Parrish updated the Commission on the current status of the Mermaid development. He indicated that the project would be reduced in scope due based on financial constraints. Based on plans submitted to the City, the hotel will be reduced from 96 to 70 rooms. Portions of the Banquet Center will be reduced as well. 6. EDC BUSINESS A. Annual Parcel Decertification Coordinator Parrish indicated that Mounds View's TIF policy requires an annual review of parcels that could potentially be decertified from existing TIF districts. The Commission discussed the fact that many potential projects, including Highway 10 redevelopment and safety improvements could be accomplished with TIF dollars. After reviewing parcels in the • existing TIF districts, the following motion was made: Motion/Second: Johnson /Carlson moved not to decertify any parcels from existing TIF districts. Motion Carried: 7 Ayes 0 Nays B. Pooled Funds Budgetary Recommendation Coordinator Parrish indicated that the recently adopted TIF Policy requires the EDC to evaluate the use of"pooled increment"on an annual basis. The following was presented as a preliminary budget: Account Description Program Proposed Expenditure 7050 Ca•ital / Real Estate Hi•hwa 10 Construction Im•rovements $50,000 7050 Ca•ital / Real Estate Housing Rehab Program $160,000 7060 Business Loans Business Im•rovement Partnership Loans $25,000 TOTAL $235,000 After reviewing the budget prepared by staff, the following motion was made: Motion/Second: Carlson/Goff moved to recommend the budget as presented to the EDA Motion Carried: 7 Ayes 0 Nays • C. Additional Agenda Items N:ADATA\GROUPS\ECONDEV\EDC\Minutes\Min00\09-28-00.doc Coordinator Parrish discussed two items that the EDA has referred to the EDC for review. • First, he indicated that the EDA would like the EDC to evaluate potential options for the use of pre-1997 interest earnings. Second, Coordinator Parrish indicated that the EDA has directed the EDC to update the 1986 Economic Development Plan. 7. Adjournment There being no further business before the Commission, this meeting of the Economic Development Commission adjourned at 8:35 a.m. Respectfully Submitted, Aaron Parrish Economic Development Coordinator • • N:\DATA\GROUPS\ECONDEV\EDC\Minutes\Min00\09-28-00.doc Minutes of the Economic Development Commission . City of Mounds View Ramsey County, Minnesota Regular Meeting December 1st, 2000 City of Mounds View, Council Chambers 2401 Highway 10, Mounds View, MN 55112 1. CALL TO ORDER: The meeting was called to order at 7:30 a.m. by Chairperson Tom Field. 2. ROLL CALL: Members Present: Dr. Greg Belting, Cindy Carlson, Tom Field, Torri Johnson, Rosemary Goff, Sean Walther, Wendy Marty, and EDA Liaison Dan Coughlin. Members Absent: None Staff Present: Community Development Director Jim Ericson, Economic Development Coordinator Aaron Parrish, and Finance Director Bruce Kessel 3. APPROVAL OF MINUTES: Motion/Second: Walther/Carlson moved to approve the minutes for September 27th 2000. Motion Carried: 7 Ayes 0 Nays 4. SPECIAL BUSINESS Chair Field welcomed Jim Ericson, the newly appointed Community Development Director. Chair Field also welcomed Mayor-Elect Rich Sonterre. 5. REPORT OF COMMISSIONERS, STAFF AND EDA LIAISON A. Commissioner and EDA Liaison Reports There were no Commissioner or EDA Liaison reports: B. NB—MV Chamber of Commerce Update Commissioner Belting discussed the"Manufacturers Week" event held at Irondale High School. He also indicated that the Chamber is currently collecting books for its 4th Annual Chamber Book Drive. C. Term Expirations/Commission Vacancies Coordinator Parrish indicated that three terms would be expiring on the Commission at the end of the year. EDA Liaison Coughlin and Mayor-Elect Sonterre indicated that letters have been sent out to existing Commission members asking them to re-apply if they are interested. • D. Next Meeting N:\DATA\GROUPS\ECONDEV\EDC\Minutes\Min00\12-01-00.doc Approwo Coordinator Parrish asked the Commission when it would like to meet next. It was the consensus of the Commission that they meet on Friday January 26, 2001. 6. EDC BUSINESS A. Use of Pre-1997 Interest Earnings Coordinator Parrish indicated that the EDA requested the EDC to review potential options for the use of interest earned on pre-1997 TIF funds. He informed the Commission that the OSA has determined that these funds are not encumbered with the same rules and restrictions commonly associated with TIF. The Commission was presented with the following preliminary options: 1. Establishing a fund to provide for any future safety improvements, infrastructure, and/or redevelopment associated with County Highway 10. 2. Establishing a fund for variety of future economic development and housing projects / improvements throughout the City. This could include a revolving loan fund,funding for economic development once the current TIF districts expire, housing programs and replacement, mobile home park revitalization, or a range of other activities. 3. Transfer revenue to existing funds such as the General Fund or Special Revenue Funds including the Cable TV, Community Center, DARE, Park Dedication, Special Projects (Street Reconstruction etc...), Street Light, Surface Water, Vehicle and Equipment, and the Lakeside Park Funds. Additional revenue would then be used to expand the activities of the designated fund. 4. Keep pre-1997 interest earnings in existing TIF funds to be spent on TIF eligible activities. 5. A combination of the aforementioned options. 6. Other suggestions including reduction of the franchise fee. After discussing possible uses for the pre-1997 interest earnings, it was determined by the Commission that the funds should be transferred before the end of the year into a newly created Economic Development Fund, but not spent until Highway 10 priorities and funding needs are more clearly articulated, an Economic Development Plan has been adopted, and the OSA has had the opportunity to review the transfer. After reviewing potential options for the funds and considering the financial implications to the existing TIF funds, the following motion was made: Motion/Second: Carlson /Johnson moved to recommend transferring all interest earned on TIF funds prior to July 1St, 1997 into a newly created Economic Development Fund before the end of the year. Further, it was recommended that the funds not be spent until Highway 10 priorities and funding needs are more clearly articulated, an Economic Development Plan has been adopted, and the OSA has had the opportunity to review the transfer. Motion Carried: 7 Ayes 0 Nays 7. Adjournment There being no further business before the Commission, this meeting of the Economic Development Commission adjourned at 8:44 a.m. Respectfully Submitted, • Aaron Parrish Economic Development Coordinator N:\DATA\GROUPS\ECONDEV\EDC\Minutes\Min00\12-01-00.doc