HomeMy WebLinkAbout05-30-1996 ECONOMIC DEVELOPMENT COMMISSION DRAFT AGENDA
111/ MAY 30, 1996
6:00 P.M.
MOUNDS VIEW CITY HALL
COUNCIL CHAMBERS
1. CALL TO ORDER `(3 � P.M.
2. ROLL CALL (Present = P, Absent = A)
Carlson Schmidt
V Goff Welsch
Nelson i/ Terhark
/ Sjoberg Hankner (EDA Liaison)
Bennett (Staff)
3. APPROVE EDC MINUTES
• April 25, 1996
Action: Motion e.,
Second G
Vote —v
4. SPECIAL BUSINESS
No Special Business
5. EDC BUSINESS
A. Consideration of Draft Tax Increment Policy
Action: Motion
Second
Vote
Comments:
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B. Update on Housing Program and Discuss Ways to Market the
Program Under the Guidelines of the Program
Action: Motion 5G�1'°`�'�
Second
Vote
Comments:
C. Review EDA's Priorities for Highway 10 and Identify Strategies for
Redevelopment in these Priority Areas.
Action: Motion
Second
Vote
Comments:
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6. Report of Commissioners, Staff and EDA Liaison
7. ADJOURN 1 P.M.
Next Meeting TBA
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ECONOMIC DEVELOPMENT COMMISSION DRAFT AGENDA
MAY 30, 1996
6:00 P.M.
MOUNDS VIEW CITY HALL
COUNCIL CHAMBERS
1. CALL TO ORDER P.M.
2. ROLL CALL (Present = P, Absent = A)
Carlson Schmidt
Goff Welsch
Nelson Terhark
Sjoberg Hankner (EDA Liaison)
Bennett (Staff)
3. APPROVE EDC MINUTES
April 25, 1996
Action: Motion
Second
• Vote
4. SPECIAL BUSINESS
No Special Business
5. EDC BUSINESS
A. Consideration of Draft Tax Increment Policy
Action: Motion
Second
Vote
Comments:
B. Update on Housing Program and Discuss Ways to Market the
Program Under the Guidelines of the Program
Action: Motion
Second
Vote
Comments:
C. Review EDA's Priorities for Highway 10 and Identify Strategies for
Redevelopment in these Priority Areas.
Action: Motion
Second
Vote
Comments:
6. Report of Commissioners, Staff and EDA Liaison
7. ADJOURN P.M.
Next Meeting TBA
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Minutes of the Economic Development Commission
City of Mounds View
Ramsey County, Minnesota
1111
Regular Meeting
April 25, 1996 U MAID p
City of Mounds View, Council Chambers
2401 Highway 10, Mounds View, MN 55112
1. Call to Order:
The meeting was called to order at 6:10 p.m. by Vice Chairperson, Cindy Carlson.
2. Roll Call:
Members present were as follows: Cindy Carlson, Rosemary Goff, Brian Sjoberg, Ron Schmidt and Bev
Terhark. In addition, Economic Development Coordinator Cathy Bennett, EDA Liaison Sue Hankner
and EDA Alternate Liaison Gary Quick were present. Members Dan Nelson and Delane Welsch was
absent.
3. Approval Of Minutes:
Motion/Second: Goff/Carlson moved approval of Minutes of March 28, 1996 Meeting.
Motion Carried 5 ayes 0 nays
4. Special Business
There was no special business.
5. A. Remove tax increment policies for new/expanded development in Mounds
View from the table of the February 22, 1996 meeting
Motion/Second: Schmidt/Sjoberg moved to remove tax increment policies for new/expanded
development in Mounds View from the table of the February 22, 1996 meeting
Motion Carried 5 ayes 0 nays
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jA PPR() —
B. Consideration of Tax Increment Policies for new/expanded
development in Mounds View
• The Commission members reviewed Mounds View's Tax Increment Policy from 1984 and
discussed Elk River, Robinsdale and Burnsville's current tax increment policies. Revisions were
made to Burnsville's plan to meet the needs of Mounds View. In addition, the commission
reviewed the fundability guidelines which is a ranking system for projects requesting tax
increment financing. The guideline provides an equitable point system in relation to jobs
created, increase in tax base, up front or pay-as-you-go assistance and type of development.
Also and application for tax increment financing was reviewed. Staff was directed to draft a
policy for Mounds View to be presented at the EDC meeting in May.
Reports From Chair, Commissioners and Staff:
There were no reports
7. Adjournment
There being no further business before the Commission, this meeting of the Economic Development
Commission adjourned at 8:00 p.m.
Respectfully Submitted,
• Economic Development Coordinator
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Staff Memo
To: Economic Development Commission Members
From: Cathy Bennett, Economic Development Coordinator
Date: May 24, 1996
Agenda Item: Consideration of Draft Tax Increment Policy
(5.A.)
Per the discussion at the April 25, 1996 meeting I have attached a draft tax increment
policy for consideration of providing tax increment assistance.
The information includes:
Public Policy for use of Tax Increment
Application for Tax Increment Financing (completed by the Applicant)
Form for Analysis of Application (completed by staff and reviewed by EDC)
Deposit Agreement •
I have also included the Mounds View Economic Development Project Plan that was
prepared to identify qualifying uses for tax increment financing within the City of
Mounds View.
Please review prior to the meeting.
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Tax Increment Policy
Mounds View Economic Development Authority
Mounds View, Minnesota
GENERAL POLICY:
The Mounds View Economic Development Authority has the powers under the Minnesota Statute Sections
469.124 through 469.137 and Sections 469.001 through 469.047 to govern and monitor the use of tax
increment financing for three tax increment districts and the Mounds View development district which
encompasses the entire boundaries of the City of Mounds View. It is the responsibility of the Mounds View
Economic Development Authority to use tax increment financing as a tool to accomplish the City's
economic development and redevelopment goals and objectives. The Mounds View Economic Development
Authority understands and abides by the fundamental principal which makes tax increment financing viable
to encourage development and redevelopment which would not otherwise occur.
The Mounds View Economic Development Authority shall consider tax increment financing in cases that
serve to accomplish the City's development goals and activities a hereby defined in projects eligible for tax
increment financing. The Mounds View Economic Development Authority desires development that would
result in the retention and expansion of business, creation of jobs and the tax base and the elimination of
blight.
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PROJECT ELIGIBLE FOR TAX INCREMENT FINANCING:
Projects eligible for consideration of Tax Increment Financing assistance per the Mounds View Economic
Development Project Plan dated May 9, 1994 include, but are not limited to (1) the attraction, retention,
rehabilitation and preservation of commercial, industrial, retail, residential, recreational and public service
facilities; (2) new and rehabilitated public infrastructure; (3) community and other public service centers; (4)
senior/mature adult and/or other housing development partnerships or other multi-use housing projects and
facilities; (5) other public utilities (including telecommunications); (6) business incubator loan and other
business programs; and (7) transportation systems. More emphasis will be place on those items which
increase the tax base and eliminate blight.
COSTS ELIGIBLE FOR TAX INCREMENT FINANCING:
Project cost qualifying for Tax Increment Financing assistance, as defined under the TIF Act, include utilities
design, landscape design, architectural and engineering fees directly attributable to site work, site related
permits, earthwork/excavation, soils correction, landscaping, utilities (sanitary sewer, storm sewer, and
water), streets and roads, street/parking lot paving, street/parking lot lights, curb and gutter, sidewalks, land
acquisition, special assessment, legal (acquisition, financing, and closing fees), soils tests and environmental
studies, surveys, park dedication fee, SAC, WAC charges, titles insurance and TIF application deposit.
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DETERMINATION OF AMOUNT OF ASSISTANCE TO APPLICANT:
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Within TIF Districts No. 1. 2, and 3
The amount of Tax Increment Financing provided to an applicant will be based on the analysis of
information provided on the application for Tax Increment Financing assistance (Attachment"A") and
amount of increment generated by the project as evaluated by the City's Financial and Bond Counsel.
The standard guideline for assistance is % of the project's annual increment for a term determined by
the Economic Development Authority Board based on the analysis of information provided in Attachment
"A". No project will be considered if the term exceeds the life of the Tax Increment District.
The level of assistance provided will be evaluated on a case by case basis and may reflect an increase or
decrease in assistance dependant upon the level of increase in the tax base or amount of elimination of blight.
Evaluation of subjective information provided may result in adjusting the amount of assistance provided at
the discretion of the Board of the Economic Development Authority.
Within the Development District but outside of TIF Districts
The amount of Tax Increment Financing assistance provided to an applicant will be based on (A) the analysis
of information provided on the application for Tax Increment Financing assistance (Attachment "A"), (B)
square footage cost of the project and (C) balance available in the Economic Development Authority excess Ilk
tax increment fund.
TYPES OF ASSISTANCE
Within TIF Districts No. 1, 2, and 3
Tax Increment Financing can be provided in either"pay as you go" or"up front"payments. "Pay as you go
" is wherein the Mounds View Economic Development Authority compensates the applicant for a
predetermined amount for a predetermined number of years. The applicant pays for (re)development up
front and then annual payments are issued to the applicant based on increment generated from the project.
"Up front' payments is wherein the Mounds View Economic Development Authority must issue revenue or
general obligation bonds to pay for the (re)development prior to completion of the project. The increment
generated from the project is then used for repayment of the bonds. The Mounds View Economic
Development Authority desires the use of"pay as you go" assistance to finance private development.
Within the Development District but outside of TIF Districts
Financing in the form of excess tax increment funds will be provided in annual installments to the applicant
based on the positive cash flow balance in the Economic Development Authority's excess tax increment
fund.
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•'APPLICATION FOR TAX INCREMENT FINANCING ASSISTANCE:
The Mounds View Economic Development Authority shall require a deposit in the amount of$1,000 from
the applicant for the EDA's consultants to investigate the feasibility of providing Tax Increment Financing
assistance to the applicant and per the terms of the deposit agreement (Attachment"B").
SUBMITTAL OF APPLICATION FORMS:
Applicants requesting Tax Increment Financing assistance within an existing district or in the creation of a
new district, shall be required to complete and submit the following:
1. Application for Tax Increment Financing Assistance
2. Deposit for Review of Tax Increment Financing Assistance
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ATTACHMENT"A"
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APPLICATION FOR TAX INCREMENT FINANCING
PROJECT:
1. Business Name:
Address:
Telephone #:
Contact:
2. Brief Description of the Business. (Please provide # of years in business under current ownership and
# of years in Mounds View)
3. Present Ownership of the Site:
4. Present Project: Building square footage, location of project, size of property, description of
buildings - materials, etc. Attach site plan, if available
5. If Property is to be Subdivided, Show Division Planned.
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*Attachment "A" Cont.)
6. Estimated Project Costs: (please enclose construction performa, if available.)
a. Land Acquisition $
b. Site Development $
c. Building Cost $
d. Equipment $
e. Architectural & Engineering Fees $
f. Legal Fees $
g. Financing Costs $
h. Broker Costs $
I. Contingencies $
j. Other (please specify) $
Total $
7. Total Estimate Market Value at Completion $
8. Submit an Itemized List of Eligible Costs Qualifying for Assistance (see page 1 of Tax Increment
• Policy).
9. Sources of Financing
a. Equity $
b. Bank Loan $
c. Tax Increment Assistance $
d. Industrial Revenue Bonds $
e. Other (please specify source) $
10. Form of Tax Increment Financing Assistance Requested.
Pay As You Go
Bond Issuance
Excess Increment
11. Name & Address of Architect, Engineer, and General Contractor.
(Attachment "A" Cont.)
12. Estimated Real Estate Taxes on Project Site upon Completion of Project. (please show calculations.)
13. Project Construction Schedule:
a. Construction start date
b. Construction completion date
c. If phased project:
Year % Complete
Year % Complete
14. Estimated Number of Jobs:
Created (within 2 yrs)
Retained
15. Average Annual Wage Level of Jobs
Created (within 2 yrs) •
Retained
16. Is Job Training Assistance Needed?
TAX INCREMENT FINANCING REQUEST:
1. Describe amount and purpose for which tax increment financing is required.
2. Statement of necessity for use of tax increment financing for project.
�3. Describe the Potential for Growth.
4. What is your Desired Return on Equity Invested.
5. If Rental Space, What is the Range of Targeted Rental Rates:
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CITY OF MOUNDS VIEW
ECONOMIC DEVELOPMENT AUTHORITY
ANALYSIS OF APPLICATION
FOR
TAX INCREMENT FINANCING ASSISTANCE
FOR •
NAME OF APPLICANT
Date Reviewed
Total Score
Result of Analysis
.1. PUBLIC VERSUS PRIVATE INVESTMENT
Private Investment
TIF/Public Investment
Total Investment
Ratio of public vs. private investment
Point Private Public
Value
+ 1 Less than $3 to $1
+ 2 Over$3 to $1
+ 3 Over $4 to $1
+4 Over $6 to $1
+ 5 Over $8 to $1
2. NUMBER OF EMPLOYEES
lor (Computed as full time equivalent positions)
Point Number
Value
+ 1 > 1 - 15
+ 2 > 16 - 30
+ 3 > 31 - 45
+ 4 > 46 - 75
+ 5 > 75 - plus
Current Number of Employees
Estimated Number of New Employees (within the next 2 years)
Total Number of Current and Estimated New Employees
3. PUBLIC INVESTMENT PER CURRENT EMPLOYEE
11,
Point
Value INVESTMENT
0 $12,500 +
+ 1 $10,000 - $12,500
+ 2 $7,500 - $10,000
+ 3 $5,000 - $7,500
+ 4 $2,500 - $5,000
+ 5 $ 0 - $2,500
TIF/Public Investment $
Current Number of Employees
Investment per Employee = $
4. PAY LEVEL OF POSITIONS
Point Dollar Total # of Weighted
• Value . Weighting Employees Dollar Amt.
0 $ 0 - 14,999 $10,000
+ 1 $15,000 - 24,999 $20,000
+ 2 $25,000 - 29,999 $27,500
+ 3 $30,000 - 44,999 $37,500
+4 $45,000- 59,999 $52,000
+ 5 $60,000 and Over $60,000
Total Full Time Equivalent
Weighted Average
S
.5. REAL ESTATE/PROPERTY TAXES GENERATED
(projected tax revenues should be bases on the existing property tax system and rates plus legislative
future changes if subject to estimation.)
•
Point
Value Projected Taxes
+ 1 Below$25,000
+ 2 $25,000 - $49,000
+ 3 $50,000 - $99,999
+4 $100,000 - $249,999
+ 5 $250,000 and Over
6. SIGNIFICANT IMPACT MULTIPLIER
Point
Value Type of Development
+ 0 Retail
. + 2 Office
+ 3 Office/ Service (50/50)
+ 3 Value Added (retail with significant
service component)
+ 4 Industrial
+1 Company/Corporate Head uarters -
q
location of upper management where
decisions are made (add 1 pt to above)
II Total Point Value
7. SERVICE IMPACT
Point
Value Type of Development •
- 4.0 Retail
- 3.5 Office/Warehouse Service
- 3.0 Hi Tech
- 2.0 I Office
8. FORM OF ASSISTANCE REQUESTED
(within TIF District 1, 2, and 3)
Point
Value
- 2 Up-Front
+ 5 Pay-As-You-Go
9. FORM OF ASSISTANCE REQUESTED
(within development district but outside of TIF Districts)
Point
Value
- 2 One-Time Payment
+ 1 3 Annual Payments
+2 4 Annual Payments
+ 3 5 Annual Payments
+ 5 BIPP Loan Program
.10. WORKSHEET SUMMARY
POINT VALUE
Public versus Private
Number of Employees
Public Investment per Employee
Pay Level of Positions
Real Estate/Property Taxes Generated
Significant Impact Multiplier
Service Impact
Form of TIF Assistance Required
Total Points
11. RATING FOR PROJECTS LOCATED WITHIN TIF DISTRICTS 1, 2, AND 3
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Point Value Term of Assistance
0 - 10' O Years
11 - 13 3 Years - or- Remaining life of TIF
District, whichever is less
14 - 16 5 Years - or - Remaining life of TIF
District, whichever is less
17 - 20 7 Years - or - Remaining life of TIF
District, whichever is less
21 and Over 10 Years - or - Remaining life of TIF
District, whichever is less
12. RATING FOR PROJECTS IN DEVELOPMENT DISTRICT (OUTSIDE OF TIF DISTRICT)
(1)
Building Size:
Square Foot Cost of Project:
(Land & Building)
Project (2 ) Per S.F.
Cost Per S.F. Allowance
$20.00 - $30.00 $3.00
$30.01 - $40.00 $4.00
$40.01 - $50.00 $5.00
OVER$50.01 $6.00
Points (3) Percent of
Accumulated Assistance
11 - 13 30% •
14 - 16 50%
17 - 20 70%
21 & OVER 100%
S.F. of Bldg: (1) $
X
S.F. Allowance (2) $
X
% of Assistance: (3)
Equals
Amount of Assistance: $
Deposit Agreement for Evaluation of Tax Increment Assistance
By and Between the Mounds View Economic Development Authority and (The
Applicant)
This agreement made as of the day of May, 1996 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 469.124 to
469.134 and 469.090 to 469.108 (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 and
in connection is engaged in carrying out the Mounds View Economic Development Project(the "Project")
within the City; and
WHEREAS, the redevelopment and development of property within the Project by private
developers are stated objectives of the Project Plan.
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 Increment 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 Increment 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)' deposit to the extent permissible under the TIF Act. If(The Applicant) does
not proceed with the redevelopment of the Property due to the decision of either the EDA of(The
Applicant), the EDA shall reimburse the applicant for the unused portion of the deposit to the extent
possible.
Section 3. Nothing contained in this agreement shall in any way obligate the EDA to proceed with
the redevelopment of the Property or otherwise enter into a Development Agreement with (The
Applicant).
IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first
above written.
MOUNDS VIEW ECONOMIC
•
DEVELOPMENT AUTHORITY
BY:
JERRY LINKE
ITS PRESIDENT
BY:
CATHY BENNETT
ITS EXECUTIVE DIRECTOR
STATE OF MINNESOTA )
) SS
COUNTY OF )
The foregoing instrument was acknowledged before me on this day of
, 1996, by Jerry Linke and Cathy Bennett, the President and Executive Director respectively
of the Mounds View Economic Development Authority named in the foregoing instrument.
S
Notary Public
(The Applicant)
BY:
ITS:
STATE OF MINNESOTA )
) SS
COUNTY OF )
The foregoing instrument was acknowledged before me on this day of
, 1996, by ,the of
(The Applicant) named in the foregoing instrument.
Notary Public
S
11111
411
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Mounds View Economic Development Project
of he
Mounds View Economic Development Authority
Including Expansion and Consolidation of
'1
Develooment District Nos . 1 ,a 2 and
Amendment and Ccnso l i dat;cn of The;r
Development Programs and
. 411
Amendment of the ,Tr L ..
•
ax Increment Financing
Plans for the Tax Increment Financing
•
Districts within Said Development Districts
•
May 9, / 994
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This document was drafted
:200 -_-sz flat=Una- sank E ' dC
23, Minnesc -
t3
Saint Paul M --
1
Tel: (i12) 6000 `` J� 0-
Fax: ( -12) 2:2-6450
Establishment the of Mounds ourds View
Economic Development Project, adoption of its Project
Increment� r
Plan and Amendment of Tax - ls
_ ancin q Plans
Section ?. i. 2. ,:; ,�,t
�u=loses hereof, s:Za21 havethe following terms defined below, _or
r _ _ollowi
un .CSB the context specifically requires
�'1C reS�eC�i*re meanie S
Y r-q.__es other ise. term
�' `
"development" includes redevelopment, andthe �� " ve
includes redeveloping. �--="m develotin brz
/Boa,-3" means the Board of Commissioners,ssioners, the governing
body, of the EDA."Citmm_
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r means the Cit, of Mounds View,1_,r, ?`'!innesoto .
T
body. Ir- ,t means the Cit.; Council cf the City, its governing
"County" means Ramsey' Count'T, Minnesota.
"Development anme.^.t Dst�- c-s,t
Gov=looevel � means Development District ,
_nces y t Nc. 2 and Deveicame. DistrictNo. Nc . _,
theo "Develccment Districts" 2 , and
C^.nCeXt Clear? :r_ cCT shall, unless the
Pr odes it, also refer
they may }- to said iDistricts as
heretofore have been amended
be amended. or may herein or hereafter
the "2.111.72222
Deveionme 2 2 ms means the Development programs
I, Devemenz Di szr c`�, being spec_=i caiiy Development p rot �-
No . ocv�
-ocr...m No . 2 and Develc T- Pro
pmol.� Program No . 3
ci Develcliment Programs" un
context earl V precludes _ T refer s shall, unless the
=:,Cr• .:,5 as t, also _ ____ to said Levelment
they may heretofore
a_ cp `
or hereafter have been amended
r
hereafter be amended. or may herein
71A It
_ _ racnan„s C t~,=, Mounds
GL ^Ls J-eN Economic
ncmi_ Develo
ez Authority,
esay: ish d -s-anz to the Enabling Act and pursuant ac='.t= : _escut ^n” adopted � ' ne Counc.l an Marc: 23 ,
t:.`Cl1C.iT`CC T.QoAr.t" means Minnesota c�az.ae -
s, Sec ion n
all .. s c� . 09 0
the-=_n. a d _ owe s incor� _atad
r_�,-C�t„ means Mounds
iv ;
ew Economic Development Project
ectesza:_ s.ed .cl. c without limitation the areas of
the
•
_5;,oa
•
Cit:' encompassed therein, and initially ;t„const_��t411
DevelcDment Dist_i =ng all of the
czs, •as the same may be amended.
"P'ro 1 ect Area" means the `ot al area within w n the City included
within the Project.
"Pro-iect Dian" means the plan adce a
development of the �tad hereby .ger the
e P_oject, constituting initially theDevelopment - c.�e
Programs, as amended hereby and as the same may be
further amended.
"State" means the State of Minnesota.
"Tax Increment Districts" means the Tax Increment Financing
Dist�i +� which
have heretofore been established within : any o f
the Development Districts, or which
hereaftermay
be established
within the Project, as the same may heretofore have been, arhar,b. cr may hereafter
be amended.
"Tax Inc- *gent AC-" means the MinnesotaIncrement
469 . 174
ti an A nrlg� Dr a52nt v c^d i ..: ori as Minnesota St t•�-� ,
4b . _74 .hrough 4669 . 179 thes, Secdors
as same may be amended.
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Ilmev -
7nc-eme^,t Plans"ans" means the respective tax increment
financing plans adopted for the Tax T e
_ncr_ment Districts ,
respectively, as the same may be amended.
"De=,e?ocment. District
No . , « means that certain Development
• District :Nc . 1, originally approved and l ;- es-�bs:-Ied by theCity
and the Council
(pursuant to its Resolution No . 1951) as of
December 12 , 5, as the same may have been amended prior to the
data hereof.
?r .C=aC=v=l oD2en 1 ?,-Comm Nc . 1 " means that certain Development
eocmen- Distric- Nc . 1 , cr ger ilt
a Dr:JVe^, by the ; - � •G -ycCCDta� ana
the
City and the Council as cf-December , n
17 2,
same may have been amended or - , as
_ �C�. to the data hereCf..
:"^--avof
come^- District No 2�" means that
certain DevelcTmentDis-_ - Nc. 2 , cr_g_nay
es-.ar _saed and
and the Council (pursuant to its-, approve= bV theC_y'_i
and .�er 9^ as n �..s Reso ut_on Nc . 2091) as of
Se 22 ,o_ 6 6, the same may have been amendedi o~
dat. :err . =r _ to
=roc=== - - Nc . means that certain Dev ' ct n-
-or Development District e_ :and
a^p-cVed ' v `�c .. and - - NC . 2 , C� -g-na-�V aCC�te�
C^ 36,
^e sa'^ic C�_7e Council as Cr, September 2 __
may have been amended p cr - hereof.
e- -. �30 , as
r the data h e_=_o .
"De �etcottte.^.t District Na . 3 " ��
means that certain Development
District No . 2 , originally established
and approved by the City
and the Council (pursuant to its Resolution No. 2294)
February 22 , 1988 , as the as of
h same may have been amended prior to
data hereof.
the
"DeYo T ooment Pr•oc=-am Nc . 3"
means that certain Oevelopmen
Procy- m for Development Dist_ict No.
3 , originally adopted and
approved by the City and the Council as of February 22 , ' 930^
the same may have been amended prior to the data hereof. - , as
.
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Section 1.2 . Backcround and Purtoses .
established the T The he City
Development Districts and adopted their
respective Development Programs pursuant to the Minnesota
Municipal Development District
Statutes �, Ac=, previously found in Minnesota
, C Chapter 472A, and now codified in ;
Sections 469 . 124M nr.esct3 Statutes,
Increment through 469 . 104 , and the City established Tax
ent Financing District Nos . 2 and 3 within the
^.
Develcpmet Districts -,
pursuant to the Tax Increment Act.
Pursuant to the - �-n ab l i ng Ac-
adccte^ , on March 23 , 1994 , the Council
an enabling r eso?
uticn and ere
Pursuant to Section 469 . 094 , Subdivision
thereby established to EDA.
- _ , ubdivisi ..
the City transferred to •the EDA, cn 2 , of the Enabling Act,
City transfer er of, L ,� �, and the EDA acceptedfrom the'
the control, authority, and operation of the
Development Districts, •
Districts therein, `S, including the existing Tax Increment
the
cts he_ eii, thereby empowering the EDA to exerciseall
of
Dhe Po^ s�thats the City couldexercise with respect to
ode-.t Districtssubject the
tothe covenant and pledge by
EDAthe
to perform the terms, conditions, and covenants of all bond
indentures and other agreements
executed for or the security cf
any
bendsissued and any other activities undertaken with respect tot:e Development Districts . _
The EDA r ecccnizes and •
finds
f
-nds that, while ay _-„, _
ar_ L
S2Sand emphases may vary between variousortiCPS of the City,a-_JFtS to develop the City will
be enhanced
=Jon a v.�, r_anc and their success
will depend
unifi consistent, and broad-based
wh h is unrelated to the respective '_'Droac:�
currently exist - L spe :ve boundary lines which
=orDevelopment
the Districts . 7n pa_�= -.., --
t,e Scar.: belie that - -
res _ is imperta ,
t.^, use tax increment and- .. nt to. have the ex' ' 1 � tV
the Development cm � other resources generated within t Cf
Districts ani
the and all efor the preservation and enhancement
ortions of the ey of
cermi _ta' epentire Project e= allz
by a.,pl_ceb l = la --, star be
N
Acc
state,' cording C� it
ti the EDA ' s purpose, Consistent with the
II/ Council , to -on=o" , -= ampli =y the
Z57 od
City' s dev411
and activities to
goals, objectives, development
the fullest extent permitted e-opment costs,
t.i_s to 11
Act nt pe_..._�..ad by the Enabiin
the Tax Increment Act and other applicable
Board hereby finds � �. ab-_ law, and the
b that t,rough such consolidation th
development of the Citycane necessar-y
be accomplished more consistently,
efficiently, and economically.
Pursuant to Section Sec ion 469 . 094 , Subdivision
Act, the EDA is authorized sort 2 , of the Ena.bling
au thoriz_d to exercise the powers •of a city with
respect to a development este469 . 124 L. district under Minnesota Statutes,
Sons 4rough 469 . 134 , and the powers of a housing and
redevelopment authority uhunder Minnesota Statutes, Sections
469 . 001 through 469 . 047, amongpowers,rsy a
Sz—
it is
intention of the Council and the Board that thed
dEDA shallehave
and be empowered to exercise any and alli
necessaryor appropriate for theoL said powers as may be
accordance with the Project development of the Project in
Tax rThe Development Districts, the DevelopmentPrograms,
ax ncrement Districts and Plans are herebyand
to the same � if __rte, re the
extent as set forth i n full l he-
1�. herein.
Section 1 . 3 . Enlarcement
and Consolidation of t1eDevelcp, entDistricts !
Desicnati� a
• P, c 1 �n _s Mounds View Economic
D- r__opment F~-o�ec� Each of the � 1
Develoed toDere_opmen` Districts is hereby
include the area of each of
Districts, and said consolidated a `'-e other Development
r:
hereby dethe Mounds as M d e=�la=;,ed composite area is
(the „Prof ") ndS View Economic D��re O .^IIePrC]zC
t.
The Board
fi nds that
teach of
the Development
evelopment Districts'
as P
sso enlarged pursuant to this Section 1. 2 , and the resulting together with the goals and objectives which the
EDA to accompl=sh Cr encourage with respect to such areas ,cons :::_s w_thout limitation a 'development district" within
the of renes fa Statutes, Sect . cn 469 . 125,
Subdivision° , and a dere_ cpment project" within the meaning of Minnesota es Section 469 . 002 , Subdivision 14 .
Section 1 . 4 .
rm,=ndment and Consolidation
P'_'CCrar,S ]Psir-.�,ic= G'n-mss �'-•-��ar-- Plan.
of the 1Jc_trP_.."'1c'�n-
=ocr=ms is siona - - - - -an Each of the Development
1 y amended to -
objectives , all-- o= the Coals
acz_v_..- =s, and
leve-' com_n-
= ?
costs
i:enc: c: �•; n each oT= the other Development Programsand
in each CaC . the Tax Increment miens; it being the intent and effect ofthe %rCe:=:C `:u _ `aC:aC� Daere-?CDle: t =r" c `Ys eax_^Craae^t Planssha. be and hereby is amended to include the.ecther Devlop^ -^t _ocrms and `Tx -^c==-..^t
Plans . Said
_s;, 3
-4-
consolidation and amendment of the Development
4111 known as the Project Planfar Programs shall be
Board' s, 7 the Project. It is also t-`•
card s intention and determination fiat ie
Development Programs, the Project any amendment to any of
Project Plan or the Tax Increment Plans
made herein or hereafter star_ constitute and b
amendment of all of the Developmentut_ e deemed to be an
Programs. The Council
here
b
yfinds that each Development Program, as amended pursuanther_to'tc ether with the composition thereof into the Project P, anconstitutes and shall be deemed to
be a "development
within the meaning of Minnesota Section
409 . 125,program"
^t Statutes, Sec,.�an
Subdivision 3 , and a "redevelopmenti
plan" within the meaning of
Minnesota Statutes, Section 469 . 002 ,
Subdivision 16.
The City has heretofore identified significant develomment
activities and costs wiy-.thin the for the benefit of the
Development Districts and has financed �-
such act�vitles throughsubstanti
substantial bonding and investments of tax increments and other
revenues; and the Project Plan is hereby amended to
ddevelopment 1 activitiesinclude, as
hev ``a goals, and costs or the Project Ar e3.
attraction, retention, rehab; T i �-; (I.}
commercial, industrial, retail, - residential,tat_cn. and preservation -of.
., a recreational and
public ic service facilities including
and recreational s , nclud_ng necessary or desirable_ r,
facili ties both active andi park
rehabilitated � passive; (2) new-and .
ruhabi tat;d'public infrastructures; (3 ) community- other
service centers; senior/mature
• (4} senior/mature adult and/o='o then .
111
housing deVelooment partnerships or other multi-use- housing-7'7
projects and facilities; mu-t- use housing'
lities; (5) other public
utilities (including"a' A�^mmun_cations (5) business
incubator loan and otter-
business programs; (7) transportation systems;
(e) and el?
related :ac`ivities or undertakings• that may be desirable or
nec�ssar
y n connec ion with the completion-
such community development. and integration of
The City
and the ZJA herebyrestates, - - hasIheretaLCre identified,
-
long-_a farandncc�--ccrates herein,
nge plans the preservation -
C__y.
�r se r _cn and develcpte.^,y - the
The ZJA acknowledges
significant edges the potentia_ and desire or
new development pro
j ects within the Project Area. Ast ese expected developments the SDA and/or t:e Ci-ayalso be =aced w_t7 additional expendituresnvolved in acquiring
property, relocating_:g businesses and other uses
of such
apropert=es` clearing sitesfor development,
and Pa== c_nating in the installation of necessary publicind=`st=uctur_s, as well as suchother undertakings and farms cfassistznca as may be
necessary or appropr__-e far any particular
Project. trV-�•hi 1 Q �_i i ...
- s not possible to pr=-“ ,--
_ = _n
-; '-- - p1e cis
_cn the magnitude of such costs o; speactivities , or in al
lczsas t e feasi i' - r :arciC `nem _: whole Cr _n pa- _, over term of the ,..0jest and �- Tax
Increment Districts , tne
total add=`_oval ;_ �,
(t(tc be eligible for financing hereby added to the Project Pla
including - through tax increment and other
ve_.u�s
than ue bond proceeds) is estimated to be not
, 000, 000, but the budget for the Prof Plan s ms's
amended tc include all of the tax. ; ec` i he� ay
amend 'ed increment and ot:7er rever,u
heretofore or hereafter by the Project, based on
determination L the by the Board that the deve?oomentneedst the
exceed the resources available through of he r�
and utilization `hocontinued inp l =mentation
za`ion of the Project and the Tax Increment Districts.•
legal authority
projectsarealso expected require the
aut. c ity c " or the �e use of the
,- to issue bends or other
debt, including general obligaticn bonds (of the City) and
revenue only obligations, to cover all cr a
casts.related developdevelopmentPortion of the
andrel hereby does amend . The Board finds that it is necessary
the Project Plan to include such additional
anter is =IgS i= and related casts as may be involved in such
, as and when the copertunities arise and are
approved by the Beard. In addition toweuld expect to incur certain � cn Such other Costs, the BDA
id e xoec interest,
financing casts, such as
cap inter. st, bonding disco
administrative expenses . T; LI7 ., costs of issuance, and,
the interest -o be paid These additional costs, tccether with
th aims-st' d on any debt issued by thED
n -o or theCity
financing such projects, would also be part o f the
"development costs" of the pr
included within the Project Plan .' and would tZerefor=_ be
y_Accordingly, the BDA anticipates ut• � all
increment� ^eC`;pts from T '- ' � nc afuture tax �I
outstanding debt andotherohe ax Increment Districts to retire
he.- obligations heretofore and to be
incurred for the betterment and development of the Project Area.
ThelIEDA
2 hereby amends the Project Plan to protide `Or the
of bonded indebtedness ine_ _ al
ecual to indebtedness_ an aggregate r; �
and necessary to _: ., _ P__:lcipa amount
a __na ace the activities
- _j e=m P- =' , as edge-ad anda described in the
accuire and herein. The D
D.-_ui_ d axle-ms to ac u__e those '- withinA stall also
e - e.. whichmay be needed 7;u-oases s ' Cr e the
l •=Ment - she Project 71 aT �1_- O- e-per .l in
•
7n addition ta the
casts
edescribed
cr_be_ above, the _E
-ZA intends
to from available tax increment such. qualifying administrative as mav be permitted S b: c` tathap � Ca^_emtatcns n „'`x - Act.
•
�ac of -nendme�-;- cf x=sting T=x
e Tax he-=men P' - =*�Ar.t
-a „- -ens _or t ne ex
_ �...r e=:e LJ_mac—,..J ._S` :lv �...._ e= T�
ts _s hereby amended -o i r_
ia ii__... ^..e `^-. � �' _..'-..vr-..�.._ � a_.� moi_ the
�
�re_^i men.,. casts , ,.ir ram goals, d activities
..
410
Z5.776,3
-5-
:7:r: :To;V.thr:nnptil=o these Seco
inclusive, incl udin without limitation • I v loch
g allof the development
L h zloof th
costes identified in the Development Programs
other Tax Increment grans and in each of the
Plans. Accordingly, the ZDA intends to E
tax increments from these three Tax Inc__ t use
D-s�_icts to
finance activities cn an as-needed basis throughout t+i loro ect
Area.
•
•
•
S
•
111
•
6a
•
Staff Memo
To: Economic Development Commission Members
From: Cathy Bennett, Economic Development Coordinator
Date: May 24, 1996
Agenda Item: Update on Housing Program and Discuss Way to Market
(5.B.) the Program Under the Guidelines of the Program
The housing inspector has researched several housing programs over the past several
months. With the information from several metro Cities and reviewing the needs in
Mounds View a housing replacement program was developed to allow the use of TIF
funds to upgrade a portion of Mounds View's housing stock. The homes targeted for
these programs are beyond repair or homes where the cost of repair would exceed
the houses total value. The program would allow the EDA to purchase a substandard
home, clear the site, and sell the raw land to a buyer/developer team. The EDA could •
only purchase the home on a voluntary basis. This allows for the construction of a
new,,larger valued home thereby increasing the amount of taxes generated and
eliminating the blighting influence of substandard housing.
The program was approved by the EDA on May 13, 1996. Please review and begin to
think of ways the City can market this program and generate positive attitudes in the
community for the benefits of this program.
I
S CITY OF MOUNDS VIEW' S PROPOSED
HOUSING REPLACEMENT PROGRAM
Statement of Purpose
To reduce the social costs of blight, making better use of existing public infrastructure and
redistributing tax base to communities with higher levels of fiscal needs.
Program Objectives
• Replace small lower value housing on scattered sites throughout the City with
larger, new, higher value housing designed for families.
• Eliminate the blighting influence of substandard housing, thus improving residential
neighborhoods.
• Increase the availability for quality housing for families.
• Definitions
Data Privacy
All files and information which identifies property and persons is private and connot be released.
All information secured through the program is subject to the Data Privacy Act.
Acquisition Procedures (Sale to EDA)
Seller Solicitation Procedures
1. EDA staff, or their appointee(s), will solicit for sellers by direct mail,
advertisement, or other method. The number of properties purchased will be
determined by the availability of resources and properties.
2. Sale to the EDA must be on a voluntary basis. Interested sellers are required to
respond to the EDA solicitation in writing, with an offer indicating:
a. An interest in selling their property to the EDA.
b. A willingness to waive relocation benefits.
• c. Statement of tenant interest in the property at the time of offer.
1
d. Consent to the release of relevant information to potential developers and
end buyers. •
3. Owners who have expressed an interest in selling must be contacted to inform
them of the estimated project time line and solicit the required written response.
Property Selection Criteria
EDA staff, or their appointee(s), will prepare property fact sheets for properties which
owners have expressed an interest in selling, and make a drive by inspection. Properties
will be evaluated based on the following criteria. To be eligible for acquisition, properties
must meet criteria#la, b, c or d; and#2 through#5.
1. The property is:
a. Substandard as to condition, size or usage.
b. Obsolete and of a faulty design for block and area in which it is located.
c. A deteriorating factor which has caused blight to other adjoining
properties.
d. Detrimental to the safety or health of abutting properties in the block.
2. An effort will be made to provide a geographic mix of properties.
3. The site can be developed with a single family home within city code requirements,
including zoning and conformance with the Comprehensive Plan.
4. The property must be owner-occupied or vacant before the owner should consider
offering it to the EDA. Tenant occupied properties will not be considered for
purchase.
5. Prior to acquisition by the EDA, properties over 50 years old must be evaluated
for historical significance. This will be accomplished by forwarding general
property information and a property photo to the Minnesota Historical Society for
review. This should be confirmed prior to signing a purchase agreement. The
EDA will not purchase property which qualifies for the National Registry of
Historical Structures.
Property Evaluation Procedures
1. Based on the above information, EDA staff, or their appointee(s), will identify the
best candidates for acquisition. The following will be considered in that
evaluation:
2
• a. Properties must be available to meet the EDA development time frame.
b. Properties with one or more of the following characteristics should be
considered first:
• lowest values
• poorest visible conditions
• located in average to better neighborhoods
c. Properties purchased should be equally distributed by location and value
through the districts when possible, and provide a viable financial mix of
properties to support program financial requirements.
Given the above considerations, each site will be evaluated on a case by case basis.
2. Once an offering letter is received, EDA staff, or their appointee(s), will contact
the owners of the properties and arrange an inspection of the interior for blight
qualification.
The following information will also be obtained during the inspection:
a. Demolition information for estimating demolition credit to builder.
• b. A determination as to the existence of any hazardous materials on the
property. This includes:
• a visual inspection
• a statement from the seller regarding any knowledge of the
properties use for production, storage, deposit, or disposal of any
toxic or hazardous wastes or substances or asbestos products
whatsoever, during the time seller owned the property and prior to
the date of seller purchased property. Properties with
environmental problems or hazards may be considered if the
purchase price is reduced sufficiently to cover increased site
clearance and preparation costs.
3. If a property meets the blight test, acquisition procedures can continue. If the
blight test cannot be met, the property cannot be considered for acquisition.
4. If a variance is required to redevelop the property, the EDA may, at its sole
dic�reti�n� Choose not to acqu're the property. A.sfl.7 deterrru':ation,v;11 be made
based on the project time lines, available resources, and availability of more
desirable properties which do not require a variance.
•
3
5. If the EDA chooses to continue with the acquisition, a fee appraisal will be ordered
to determine the purchase price of the property (to present to the seller), the reuse
value as a vacant lot, and a finished price range for new single family construction
(to present to the developer).
The independent fee appraiser will be carefully instructed to document in specific
terms the conditions of the property; details regarding structural condition and
floor plan. The acceptance of these conditions in the market place should be
discussed in the report. The appraisers value judgement should reflect these
conditions.
6. If the seller agrees to the purchase price and signs a purchase agreement, the
property will be included in the EDA marketing program. The purchase agreement
will be contingent on the completion of an environmental evaluation suggesting no
evidence of hazardous waste on the property.
7. Sellers will be asked to provide the Abstract or RPA(as applicable) to the EDA, to
facilitate the rendering of a title opinion. The cost of updating the Abstract or
RPA will be the seller's if a sale occurs.
8. Legal Counsel will be responsible for having the Abstract or RPA updated and will
contact staff as quickly as possible with an oral opinion of title. A written opinion
or title insurance policy will follow shortly thereafter. •
9. If the title opinion indicates the property has marketable title, purchase procedures
•
will continue. If the title opinion does not indicate a marketable title, the EDA, at
its sole discretion, may choose not to acquire the property. The EDA may
determine remedies and evaluate their resolution, including the additional time and
expense to provide marketable title. The EDA may proceed to correct title
deficiencies once a Purchase Agreement is executed by the seller.
10. Simultaneously with the title opinion, an environmental Phase I audit may be
obtained from an independent environmental engineering firm or other firm
performing such service. If environmental hazards are found on the site, the EDA
may choose not to acquire the property.
Acquisition Process
When a purchase price has been determined, the seller will be informed of:
a. The purchase price
b. How the purchase price was determined.
c. If negotiations fail, and the offer is not accepted, the EDA will not acquire
i
4
• the property.
2. Once a negotiated price has been reached, a contract for purchase, with the
attached form of purchase agreement and"waiver of relocation payment" form
must be executed by the seller for the acquisition process to continue. The
relocation benefits which the seller agreed to waive, must be clearly explained at
this time, if not explained previously.
3. The acquisition and disposition of the property is in conformance with the Mounds
View Comprehensive Plan.
4. Following EDA authorization of these agreements seller will be requested to
assemble or supply all required documentation prior to closing.
5. The seller must be prepared to vacate the property on the day of closing.
Special considerations during the acquisition process:
a. Non-homestead vacant property will be considered for acquisition.
b. Tenant occupied property cannot be acquired.
• c. Property expenses related to maintenance, taxes, and insurance should be
minimized since the EDA does not intend to retail title to the property.
° d. Review appraisal services may be part of the negotiating process to determine
purchase price.
e. Negotiated prices considerably below the assessor's market value, may be
accepted without appraisal on a case by case basis if the seller concurs.
f. Number of acquisitions is determined by available resources (funding and staff).
•
5
Staff Memo !
To: Economic Development Commission Members
From: Cathy Bennett, Economic Development Coordinator
Date: May 24, 1996
Agenda Item: Review EDA's Priorities for Highway 10 and Identify
(5.C.) Strategies for Redevelopment in these Areas.
The EDA had a Prioritization work session on April 29, 1996. This session allowed the
EDA to purely focus on the redevelopment of Highway 10.
Each development area, as proposed in the draft Highway 10 Redevelopment Plan,
was reviewed and the EDA chose three areas to focus on in 1996 through a silent
vote.
I have attached the an overview of the top three priority areas and the strategy notes
from this session for your review. The EDA would like the EDC to provide additional
strategies for the redevelopment of the three priority areas especially with regards to •
Section 9 which includes the Blue House and the Jones/Winn Property.
110
• Highway 10 Redevelopment Priorities
Section 4 - Regional Business Center
Approximate Acres - 94
Current Character- Mounds View Business Park consisting of various limited manufacturing
\warehouse and distribution facilities.
Proposed Vision -Preserve the current quality of the business park with completed parcel
development to maximize the acreage.
Benefits
• Increase the commercial tax base
• Increase job opportunities
■ A completed business park
■ Excellent Access to freeways
■ Very marketable to quality companies
Challenges:
•
• Request for pay-as-you-go TIF package to complete the last remaining building in the
business park.
Section 8a. - City Center: City Hall and Community Center
Approximate Acres - 31
Current Character - Location for City Hall with ball fields, soccer fields, volleyball and
playground. In addition this area includes 9 acres of underutilized wetland and the Bel-Rae
Ballroom.
Proposed Vision - Cluster all the uses for a large recreational/activity/community meeting place
-- a place for residents to come and share the spirit of community.
Benefits
■ Increase the spirit of community
• Possible location to increase tax base and jobs
• Improve aesthetics of wetland area
Challenges:
■ Package redevelopment of the Bel-Rae with private sports venture.
• ■ Identifying City Community needs to incorporate into redevelopment opportunity
•
Section 9 - Mixed-Use Development
Approximate Acres - 33
Current Character- Mix of scattered commercial development, multi-family housing and
underutilized and underdeveloped parcels.
Proposed Vision - Coordinated mixed-use development with commercial complex to the south
and a mixed multi-family\commercial use to the north.
Benefits
• Remove\improve dilapidated structures and improve aesthetics.
• Increase tax base and jobs.
■ Reduce public safety issues
• Provide services for the general community and multi-family community living close to
the area.
Challenges:
■ Property owners not working together to market as a whole.
• Some property owners have unrealistic price expectations for property
■ Properties to the North directly abut single family neighborhood.
■ Limited access off of Highway 10 •
■ Wetland Considerations.
•
STRA TEGIESFOR PRIORITY REDEVELOPMENT
Formulated by EDA on April 29, 1996
SECTION 8.a.
(City Center: City Hall & Community Center)
♦ Determine likely tenants
♦ Consider positives\negatives of purchase verses lease
arrangements
♦ Implement procedures in architects report
♦ Minimize risk verses capitalizing on opportunities in
terms of financing cost and community programs.
♦ Move forward on acquisition of Midland-Videen Property
and direct staff to formulate additional funding options.
SECTION 4
(Regional Business Center)
note: this section was expanded to include the area to expand
the business park in section 5
♦ Staff to begin negotiation on Building N in Mounds View
Business Park
•
• Complete all projects before TIP District end date
+ Assess potential of developing "Building K"
SECTION 9
(Mixed-Use Development)
♦ Investigate acquisition of Pleasant Wood Apts and lots
7800, 7851
• Proceed with demolition of "Blue House" •
• Investigate opportunities for acquiring/developing
Win/Jones Properties
Minutes of the Economic Development Commission
City of Mounds View
Ramsey County, Minnesota
Regular Meeting
May 30, 1996
City of Mounds View, Council Chambers
2401 Highway 10, Mounds View, MN 55112
1. Call to Order:
The meeting was called to order at 6:10 p.m. by Chairperson, Dan Nelson.
2. Roll Call:
Members present were as follows: Cindy Carlson, Rosemary Goff, Dan Nelson, Brian Sjoberg, Ron
Schmidt, Delane Welsch and Bev Terhark. In addition, Economic Development Coordinator Cathy
Bennett was present. EDA Liaison Sue Hankner and Alternate Liaison Gary Quick were absent.
3. Approval Of Minutes:
Motion/Second: Carlson/Goff moved approval of Minutes of April 25, 1996 Meeting.
Motion Carried 7 ayes 0 nays
4. Special Business
Chairman Dan Nelson brought forward the discussion of the purchase of the Bel-Rae and the
EDC's request to have the EDA come to a meeting to discuss procedure with the purchase and
the future roles and responsibilities of the EDC. Chairman Nelson expressed disappointment
that EDC's advice regarding the purchase and use of the Bel-Rae site was not taken into
consideration or recorded in any minutes of the EDA in discussions regarding the Bel-Rae.
Commissioner Carlson felt the decision to purchase the Bel-Rae was based on emotion rather
than financial circumstances and that the EDC's expertise could have provided a balance.
Chairman Nelson suggested that he address the EDA at the next regular meeting.
5. A. Discussion of Tax Increment Policies for new/expanded development in
Mounds View
Coordinator Bennett presented a draft TIF policy per the discussions at the March
meeting. The information for review included a Policy,Application for Tax Increment
Financing,Analysis Form and Deposit Agreement.
•
1
Several revisions were made to ensure that all commissioners ideas were incorporated
into the policy. Additions to the Analysis Form were made to clarify some of the
subjective nature of development such as Elimination of Blight, Target Industries and
411 generation of tax base verses public improvements.
Staff was directed to contact the City of Burnsville regarding the intent of the point
value under service impact.
B. Update on Housing Program and Discuss Ways to Market the Program Under the
Guidelines of the Program.
Motion/Second: Schmidt/Sjoberg moved to table Update on Housing Program until there has
been direction from the EDA regarding EDC roles and responsibilities.
Motion Carried 7 ayes 0 nays
C. Review EDA's Priorities for Highway 10 and Identify Strategies for Redevelopment in
these Priority Areas
Motion/Second: Schmidt/Sjoberg moved to table Review of EDA Priorities for Highway 10 until
there has been direction from the EDA regarding EDC roles and responsibilities.
Motion Carried 7 ayes 0 nays
Reports From Chair, Commissioners and Staff:
• Commissioner Ron Schmidt requested a leave of absence or resignation from the EDC due to
personal views as a resident and business owner regarding some City policies and decisions over
the past few years. Mr. Schmidt felt that he would not be doing the EDC justice until he is able
to work through some of the differing views regarding the City of Mounds View. Chairman
Nelson suggested a leave of absence rather than resignation. Commissioner Schmidt agreed to a
leave of absence until he can take a more positive view of the City of Mounds View.
7. Adjournment
There being no further business before the Commission,this meeting of the Economic Development
Commission adjourned at 7:40 p.m.
Respectfully Submitted
44°V1IL4j .
Economic De elopment Coordinator
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