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HomeMy WebLinkAbout08-28-2017 CITY OF MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY MEETING AGENDA MOUNDS VIEW CITY HALL Monday, August 28, 2017 Immediately Following City Council Meeting 1. CALL TO ORDER 2. ROLL CALL: President Mueller, Vice President Gunn, Commissioner Hull, Commissioner Meehlhause, Commissioner Bergeron 3. APPROVAL OF AGENDA 4. PUBLIC INPUT: Citizens may speak to issues not on tonight’s agenda. Before speaking, please give your full name and address for the minutes. Also, please limit your comments to three minutes. 5. APPROVAL OF MINUTES A. May 8, 2017, EDA Minutes B. May 22, 2017, EDA Minutes 6. CONSENT AGENDA 7. EDA BUSINESS A. Resolution 17-EDA-301 Approving the Preliminary EDA Property Tax Levy Request and Budget for Fiscal Year 2018 8. REPORTS 9. NEXT SCHEDULED EDA MEETING: September 11, 2017 10. ADJOURNMENT PROCEEDINGS OF THE MOUNDS VIEW EDA 1 CITY OF MOUNDS VIEW 2 RAMSEY COUNTY, MINNESOTA 3 4 Regular Meeting 5 May 8, 2017 6 Mounds View City Hall 7 2401 County Road 10, Mounds View, MN 55112 8 9 10 1. CALL MEETING TO ORDER 11 12 President Mueller called the meeting to order at 9:32 p.m. 13 14 2. ROLL CALL: President Mueller, Vice President Gunn, Commissioner Bergeron 15 Commissioner Hull, Commissioner Meehlhause, and Executive Director Ericson. 16 17 NOT PRESENT: None. 18 19 3. APPROVAL OF AGENDA 20 21 MOTION/SECOND: Gunn/Meehlhause. To Approve the May 8, 2017, Agenda as presented. 22 23 Ayes – 5 Nays – 0 Motion carried. 24 25 4. PUBLIC INPUT 26 27 None. 28 29 5. APPROVAL OF MINUTES 30 31 A. February 13, 2017, EDA Minutes. 32 33 MOTION/SECOND: Meehlhause/Hull. To Approve the February 13, 2017, Minutes as 34 presented. 35 36 Ayes – 5 Nays – 0 Motion carried. 37 38 6. CONSENT AGENDA 39 40 None. 41 42 7. EDA BUSINESS 43 44 45 Mounds View EDA May 8, 2017 Regular Meeting Page 2 A. 17-EDA-299, Resolution Consenting to the Process for the Creation of a 1 Housing Tax Increment Financing District in Support of the Proposed MWF 2 Properties Multiple Housing Project 3 4 Business Development Coordinator Beeman requested the EDA adopt a Resolution consenting to 5 the process for the creation of a Housing Tax Increment Financing District in support of the 6 proposed MWF Properties Multiple Housing Project. He explained the developer was seeking 7 tax credits for their development and was requesting support from the City. Staff reviewed the 8 updates made to the document by the City Attorney and recommended approval. 9 10 Commissioner Bergeron explained this was a preliminary step the City needed to take in order 11 for the development to continue to move forward. Business Development Coordinator Beeman 12 reported this was the case and noted a formal TIF application would come to the City at a future 13 date. He reiterated that the proposed Resolution was offering preliminary support and was non-14 binding. 15 16 President Mueller questioned how many years the TIF note would be. Business Development 17 Coordinator Beeman stated the developer was requesting a 15-year term and the preliminary TIF 18 amount would be no more than $546,401 in funding. 19 20 President Mueller requested the term “places of worship” be added to the last paragraph of the 21 letter of support. 22 23 Vice President Gunn believed this was not relevant and cautioned the EDA from making this 24 change. 25 26 Commissioner Meehlhause stated he had the same thought and did not believe the Commission 27 should mix church and state. 28 29 Commissioner Bergeron was of the opinion “places of worship” was a generic term. 30 31 Commissioner Hull stated he had no opinion on this matter. 32 33 The consensus of the Commission was to add the language “places of worship” to the final 34 paragraph of the letter of support. 35 36 MOTION/SECOND: Hull/Gunn. To Waive the Reading and Adopt Resolution 17-EDA-299, 37 Resolution Consenting to the Process for the Creation of a Housing Tax Increment Financing 38 District in Support of the Proposed MWF Properties Multiple Housing Project and approving a 39 letter of support for the project. 40 41 Commissioner Meehlhause asked if a TIF district were approved if the City would be keeping an 42 Mounds View EDA May 8, 2017 Regular Meeting Page 3 administrative fee. Executive Director Ericson reported the City would be keeping a 10% 1 administrative fee. 2 3 President Mueller questioned what the proposed value of the project would be after it was built. 4 Business Development Coordinator Beeman stated he was uncertain given the fact land values 5 and construction costs were yet to be determined. 6 7 Ayes – 5 Nays – 0 Motion carried. 8 9 8. REPORTS 10 11 None. 12 13 9. NEXT EDA MEETING: Monday, May 22, 2017 14 15 10. ADJOURNMENT 16 17 President Mueller adjourned the meeting at 9:49 p.m. 18 19 Respectfully submitted, 20 21 22 Recorded and transcribed by: 23 Heidi Guenther 24 TimeSaver Off Site Secretarial, Inc. 25 PROCEEDINGS OF THE MOUNDS VIEW EDA 1 CITY OF MOUNDS VIEW 2 RAMSEY COUNTY, MINNESOTA 3 4 Regular Meeting 5 May 22, 2017 6 Mounds View City Hall 7 2401 County Road 10, Mounds View, MN 55112 8 9 10 1. CALL MEETING TO ORDER 11 12 President Mueller called the meeting to order at 6:52 p.m. 13 14 2. ROLL CALL: President Mueller, Vice President Gunn, Commissioner Bergeron 15 Commissioner Meehlhause, and Executive Director Ericson. 16 17 NOT PRESENT: Commissioner Hull. 18 19 3. APPROVAL OF AGENDA 20 21 MOTION/SECOND: Gunn/Meehlhause. To Approve the May 22, 2017, Agenda as presented. 22 23 Ayes – 4 Nays – 0 Motion carried. 24 25 4. PUBLIC INPUT 26 27 None. 28 29 5. APPROVAL OF MINUTES 30 31 None. 32 33 6. CONSENT AGENDA 34 35 None. 36 37 7. EDA BUSINESS 38 39 A. Resolution 17-EDA-300, MWF Properties Purchase Option Agreement of 40 Tax Forfeited Parcels 41 42 Executive Director Ericson requested the EDA consider MWF Properties Purchase Option 43 Agreement for the purchase of tax forfeited parcels. He explained MWF Properties was 44 proposing to construct a 60-unit workforce housing apartment complex and was seeking tax 45 Mounds View EDA May 22, 2017 Regular Meeting Page 2 credits through the Minnesota Housing Agency. He noted two of the parcels were tax forfeited. 1 He explained the City Attorney had reviewed the Purchase Option Agreement. Staff provided 2 the EDA with the most recent document. 3 4 City Attorney Riggs reviewed the Purchase Option Agreement in further detail with the EDA and 5 explained the agreement would allow the City to have site control. He summarized the changes 6 that were made to the agreement and recommended approval. 7 8 Council Member Mueller questioned what would happen if the purchaser did not agree to the 9 new dates. City Attorney Riggs described how the Purchase Option Agreement would work 10 between the City, County and developer in order to allow for the project to move forward. 11 12 Council Member Mueller asked if the developer could buy the property and not move forward 13 with the project. City Attorney Riggs stated this was a possibility, which was the reason the 14 Purchase Option Agreement was being put in place with a specific project timeline. 15 16 Further discussion ensued regarding the terms within the Purchase Option Agreement. 17 18 MOTION/SECOND: Gunn/Meehlhause. To Waive the Reading and Adopt Resolution 17-19 EDA-300, MWF Properties Purchase Option Agreement of Tax Forfeited Parcels as revised. 20 21 President Mueller understood this agreement was one step in many steps that will have to occur 22 in order for this development to be completed. 23 24 Chris Stokka, MWF Properties, asked if the July dates could be amended. City Attorney Riggs 25 commented this date did have latitude. 26 27 President Mueller questioned when MWF Properties would learn if they had received housing 28 credits from the State. Mr. Stokka reported he would learn more about this in October or 29 November. 30 31 President Mueller inquired when the traffic study would be completed. Mr. Stokka indicated the 32 traffic study would be completed the first week of June. 33 34 Ayes – 4 Nays – 0 Motion carried. 35 36 8. REPORTS 37 38 None. 39 40 9. NEXT EDA MEETING: Monday, June 12, 2017 41 42 Mounds View EDA May 22, 2017 Regular Meeting Page 3 10. ADJOURNMENT 1 2 President Mueller adjourned the meeting at 7:16 p.m. 3 4 Respectfully submitted, 5 6 7 Recorded and transcribed by: 8 Heidi Guenther 9 TimeSaver Off Site Secretarial, Inc. 10 08/22/2017 9:48 AM Y-T-D 2014 2015 2016 2017 09/30/17 2018 Change from 2017 Actual Actual Actual Budget Actual Request Dollar Percent EDA (Fund 230): Revenues 3101 Tax collections - - - 100,000 - 100,000 - 0.00% 3610 Investment income 4 - - - - - - 0.00% 3615 Interest received on notes 546 515 439 - - - - 0.00% 3680 Other revenue 5,547 - - - - - - 0.00% 3972 Transfers 85,428 97,140 125,331 129,498 - 129,498 - 0.00% Total revenue 91,525 97,655 125,770 229,498 - 229,498 - 0.00% Operating expenses Housing and Economic Development (4650): Personnel services 0100 Salaries, regular 29,785 7,155 7,459 79,585 81,726 2,141 2.69% 0150 Salaries, part-time 12,614 49,964 53,006 - - - 0.00% 0300 Social security 3,133 4,302 4,511 6,088 6,252 164 2.69% 0321 PERA 3,020 4,272 4,511 5,969 6,130 161 2.70% 0400 Group insurance 4,272 9,705 9,812 13,345 14,106 761 5.70% 0500 Workers compensation 513 626 465 530 451 (79) -14.91% Total personnel services 53,337 76,024 79,764 105,517 - 108,665 3,148 2.98% Materials & supplies 1600 Supplies, operating - - - 500 - 500 - 0.00% 2100 Book & periodicals 278 - 139 200 200 - 0.00% Total materials & supplies 278 - 139 700 - 700 - 0.00% Contractual services 3030 Other professional services 28,844 19,978 9,915 34,240 34,270 30 0.09% 3420 Advertisements 898 - - 1,500 1,500 - 0.00% 3430 Printing - - - 500 500 - 0.00% 3610 Memberships 3,501 510 595 710 710 - 0.00% 3630 Training & conferences 1,055 1,354 1,042 3,410 3,410 - 0.00% 3800 Mileage 25 316 265 350 350 - 0.00% 4800 Insurance 3,037 435 427 649 649 - 0.00% 5210 Housing replacement 144 144 559 - - 0.00% 5220 Highway 10 redevelopment - - - 27,755 27,755 - 0.00% Total contractual services 37,504 22,737 12,803 69,114 - 69,144 30 0.04% Capital outlays 9300 Business subsidies - - - 50,000 - 50,000 - 0.00% Total expenditures 91,119 98,761 92,706 225,331 - 228,509 3,178 1.41% Net change in fund balance 406 (1,106) 33,064 4,167 - 989 (3,178) -76.27% Fund balance, beginning year 48,748 49,154 48,048 208,678 208,678 212,845 4,167 2.00% Adj for land held for resale 127,566 Fund balance, end of year 49,154 48,048 208,678 212,845 208,678 213,834 989 0.46% 2018 Budget Summary 486853v2 AMB MU205-13 Item No: 7.A. Meeting Date: August 28, 2017 Type of Business: EDA Business City Administrator Review: ______ City of Mounds View Staff Report To: Mounds View Economic Development Authority From: Mark Beer, Finance Director Item Title/Subject: Resolution 17-EDA-301 Approving the Preliminary EDA Property Tax Levy Request and Budget for Fiscal Year 2018 Previously the City’s economic development activities were funded with tax increment revenues. These tax increment revenues were discontinued as required by state statute when the districts were decertified. This left the City with limited resources to continue existing business outreach, marketing, advertising, small scale incentives, property acquisitions, professional services, and staff training and development. The City Council established a levy of $100,000 ($60,000 EDA, $40,000 HRA) for these purposes for 2017. There is no proposed increase in this amount for 2018. The City’s EDA is requesting that the City levy on behalf of the EDA $100,000 to support the above activities within the City of Mounds View. The HRA levy will be reduced to 0$ and the EDA levy increased to $100,000 or no net increase between the two levies. The EDA has been authorized with joint powers of an Economic Development Authority (EDA) and a Housing and Redevelopment Authority (HRA). The EDA may choose to establish either an EDA levy or an HRA levy, or both, to fund the above activities. The proposed EDA budget of $228,509 is attached, there will be changes as additional information becomes available. Once this amount is set, the levy cannot be increased but can be lowered. A Truth-In-Taxation meeting will be held December 4, 2017 at 6pm at City Hall. The final levy will be adopted on or about December 11, 2017. Respectfully submitted, ___________________________ Mark Beer, Finance Director 486853v2 AMB MU205-13 RESOLUTION NO. 17-EDA-301 MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY COUNTY OF RAMSEY STATE OF MINNESOTA APPROVING THE PRELIMINARY EDA PROPERTY TAX LEVY REQUEST AND BUDGET FOR FISCAL YEAR 2018 WHEREAS, the Mounds View Economic Development Authority may request the establishment of a special benefit tax pursuant to Minnesota Statutes 469.107, Subdivision 1. NOW, THEREFORE, BE IT RESOLVED, by the Mounds View Economic Development Authority that there be and hereby requested a levy on the taxable property of the City of Mounds View, Ramsey County, Minnesota for fiscal year 2018 a special benefit tax not to exceed $100,000, which amount will be included in the City’s proposed levy and the prosed EDA budget of $228,509 is adopted. Adopted this 28th Day of August 2017. ______________________________ Carol A. Mueller, EDA President (ATTEST) ______________________________ Jim Ericson, Executive Director (SEAL)