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HomeMy WebLinkAbout12-12-2016 CITY OF MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY MEETING AGENDA MOUNDS VIEW CITY HALL Monday, December 12, 2016 6:30 p.m. 1. CALL TO ORDER 2. ROLL CALL: President Flaherty, Vice President Gunn, Commissioner Hull, Commissioner Meehlhause, Commissioner Mueller 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. September 12, 2016, EDA Minutes B. September 26, 2016 EDA Minutes 6. CONSENT AGENDA 7. EDA BUSINESS A. Resolution 16-EDA-295 Approving the Special Benefit Tax Levy for the Purpose of Defraying the Costs Incurred by the Mounds View Economic Development Authority for Fiscal Year 2017 8. REPORTS A. Start Time for the 2017 EDA Meetings (verbal report) 9. NEXT EDA MEETING: Monday, January 9, 2017 10. ADJOURNMENT PROCEEDINGS OF THE MOUNDS VIEW EDA 1 CITY OF MOUNDS VIEW 2 RAMSEY COUNTY, MINNESOTA 3 4 Regular Meeting 5 September 12, 2016 6 Mounds View City Hall 7 2401 Mounds View Boulevard, Mounds View, MN 55112 8 6:31 P.M. 9 10 11 1. CALL MEETING TO ORDER 12 13 2. ROLL CALL: President Flaherty, Vice President Gunn, Commissioner Hull, 14 Commissioner Meehlhause, Commissioner Mueller, and Executive Director Ericson. 15 16 NOT PRESENT: None. 17 18 3. APPROVAL OF AGENDA 19 20 MOTION/SECOND: Mueller/Meehlhause. To Approve the September 12, 2016, Agenda as 21 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. November 23, 2015, EDA Minutes. 32 33 MOTION/SECOND: Meehlhause/Gunn. To Approve the November 23, 2015, Minutes as 34 presented. 35 36 Ayes – 5 Nays – 0 Motion carried. 37 38 B. January 11, 2016, EDA Minutes. 39 40 Commissioner Meehlhause requested a change to the minutes on Page 2, Line 16 stating his 41 comment should read he was willing to continue to serve as the Secretary. 42 43 MOTION/SECOND: Mueller/Hull. To Approve the January 11, 2016, Minutes as amended. 44 45 Mounds View EDA September 12, 2016 Regular Meeting Page 2 Ayes – 5 Nays – 0 Motion carried. 1 2 C. February 8, 2016, EDA Minutes. 3 4 MOTION/SECOND: Mueller/Meehlhause. To Approve the February 8, 2016, Minutes as 5 presented. 6 7 Ayes – 5 Nays – 0 Motion carried. 8 9 6. CONSENT AGENDA 10 11 None. 12 13 7. EDA BUSINESS 14 15 A. Resolution 16-EDA-293, Approving the Special Benefit Tax Levy for the 16 Purpose of Defraying the Costs Incurred by the Mounds View Economic 17 Development Authority for Fiscal Year 2017. 18 19 Finance Director Beer requested the EDA consider approving a special benefit tax levy for the 20 purpose of defraying costs incurred by the EDA for 2017. He explained the EDA’s expenses 21 have funded by TIF districts in the past, however with the decertification of three districts a new 22 funding source was necessary. He stated $100,000 was being proposed to be levied for the EDA 23 via the HRA. 24 25 Brian Amundson, 3048 Wood\ale Drive, discussed the City of Mounds View’s ability to levy. 26 He understood the City was having a difficult time finding funds for economic development 27 activities. He also understood a way to get around this was to authorize a separate levy through 28 the HRA. He then reviewed the State Statute requirements regarding HRA levies and noted the 29 purpose of HRA levies. He did not believe an HRA levy could be proposed without a specific 30 housing project in place. He believed the residents had spoken to this issue eight years ago, and 31 asked the EDA to reconsider their actions and follow the proper procedures. He recommended 32 the Council approve a maximum levy and that funds be shifted over to the EDA rather than the 33 EDA approving a separate levy. He understood the City was trying to do economic development, 34 but wanted the City to complete this task in a proper manner. Mr. Amundson asked if the EDA 35 was considering to approve a separate levy on a yearly basis or if this was a one-time request. 36 37 President Flaherty reported the EDA was considering a year to year levy to assist the EDA with 38 economic development. 39 40 Further discussion ensued regarding the State Statute requirements for HRA levies. 41 42 Mounds View EDA September 12, 2016 Regular Meeting Page 3 Commissioner Hull questioned if the EDA could approve an HRA levy without going before the 1 voters. Executive Director Ericson stated this would be allowed without a vote. He indicated 2 that after much discussed between staff and the City Attorney staff was comfortable moving 3 forward with the proposed tax levy. He explained that the City would move forward with this 4 item following all State Statutes. 5 6 Commissioner Hull asked if the City could move monies from the General Fund to the EDA. 7 Executive Director Ericson commented this would be allowed and noted a $50,000 transfer was 8 already occurring. He reported that the City would have to operate within the confines of the 9 levy cap if the EDA were to proceed in this manner. 10 11 President Flaherty appreciated the questions and comments brought forward by Mr. Amundson 12 and assured the residents that the EDA would move forward in accordance with all State 13 Statutes. He indicated the EDA had until September 15th to certify a Special Levy with the 14 County. He supported the proposed levy moving forward with the knowledge that the matter 15 would be further discussed. 16 17 Commissioner Mueller asked if the Crossroad Pointe development would qualify for the HRA 18 tax levy funding. Executive Director Ericson stated this may be the case but the final details 19 would have to be worked out with the developer. 20 21 Commissioner Mueller questioned how much funding could be set aside for the EDA if a 3.4% 22 tax levy were approved. Finance Director Beer reported just under $40,000 could be earmarked 23 for the EDA if the City were to proceed in this manner. 24 25 MOTION/SECOND: Gunn/Meehlhause. To Waive the Reading and Adopt Resolution 16-26 EDA-293, Approving the Special Benefit Tax Levy for the Purpose of Defraying the Costs 27 Incurred by the Mounds View Economic Development Authority for Fiscal Year 2017. 28 29 Commissioner Meehlhause suggested City Attorney Riggs attend the Truth in Taxation meeting 30 to address some of the questions raised by Mr. Amundson. 31 32 Commissioner Mueller asked if it would make sense to have this levy be for only one year. 33 Executive Director Ericson stated this was the request. 34 35 Ayes – 5 Nays – 0 Motion carried. 36 37 8. REPORTS 38 39 Executive Director Ericson reported The Beard Group was looking for additional funding 40 opportunities for Crossroad Pointe. He anticipated The Beard Group would be coming back to 41 the City Council before the end of the year with more specifics on their development. 42 Mounds View EDA September 12, 2016 Regular Meeting Page 4 1 9. NEXT EDA MEETING: Monday, September 26, 2016, at 6:30 p.m. 2 3 10. ADJOURNMENT 4 5 President Flaherty adjourned the meeting at 7:04 p.m. 6 7 Respectfully submitted, 8 9 10 Recorded and transcribed by: 11 Heidi Guenther 12 TimeSaver Off Site Secretarial, Inc. 13 PROCEEDINGS OF THE MOUNDS VIEW EDA 1 CITY OF MOUNDS VIEW 2 RAMSEY COUNTY, MINNESOTA 3 4 Regular Meeting 5 September 26, 2016 6 Mounds View City Hall 7 2401 Mounds View Boulevard, Mounds View, MN 55112 8 6:32 P.M. 9 10 11 1. CALL MEETING TO ORDER 12 13 2. ROLL CALL: President Flaherty, Vice President Gunn, Commissioner Hull, 14 Commissioner Meehlhause, Commissioner Mueller, and Executive Director Ericson. 15 16 NOT PRESENT: None. 17 18 3. APPROVAL OF AGENDA 19 20 MOTION/SECOND: Mueller/Hull. To Approve the September 26, 2016, Agenda as presented. 21 22 Ayes – 5 Nays – 0 Motion carried. 23 24 4. PUBLIC INPUT 25 26 None. 27 28 5. APPROVAL OF MINUTES 29 30 None. 31 32 6. CONSENT AGENDA 33 34 None. 35 36 7. EDA BUSINESS 37 38 A. Resolution 16-EDA-294, Approving the Preliminary EDA Property Tax Levy 39 Request for Fiscal Year 2017. 40 41 Finance Director Beer requested the EDA approve the preliminary property tax levy for 2017. 42 He explained the City used to have three TIF districts. These districts have been decertified and 43 the EDA no longer had these funds to assist with economic development. For this reason, an 44 EDA property tax levy was being proposed to assist with housing incentive programs, 45 Mounds View EDA September 26, 2016 Regular Meeting Page 2 redevelopment and economic development efforts. He explained staff provided the EDA with a 1 preliminary budget. Staff noted the Council authorized an HRA levy two weeks ago and the 2 EDA was now being asked to approve the $100,000 property tax levy. 3 4 Commissioner Mueller thanked staff for the budget summary. She asked if any 2017 funds were 5 being set aside for housing programs. Finance Director Beer reported the housing funds have 6 balances and there was not an immediate need to fund these programs. 7 8 Commissioner Mueller questioned if the $50,000 in EDA funds set aside for business 9 development would be assisting with the Crossroad Pointe redevelopment. Executive Director 10 believed this would be possible and noted a policy decision would have to be made by the City 11 Council and EDA on the financing of this project. 12 13 Commissioner Hull inquired if $50,000 was transferred from the City’s General Fund to the EDA 14 each year. Finance Director Beer reported this was the case. 15 16 President Flaherty believed the City has been very fortunate to have TIF Districts available to 17 assist with economic development while also off setting expenses. He then discussed the City’s 18 Charter and asked if the proposed EDA tax levy was in alignment with this document. City 19 Attorney Riggs reported the City was operating correctly. 20 21 President Flaherty supported the proposed EDA tax levy and believed it was a prudent move on 22 behalf of the City in order to keep economic development moving in the right direction. 23 24 Commissioner Meehlhause requested clarification on the differences between the HRA and EDA 25 levy. City Attorney Riggs advised the EDA on the powers of the HRA compared to the EDA 26 along with the differences between how the EDA and HRA could utilize the levy funding. 27 28 President Flaherty discussed the proposed EDA budget in greater detail and asked for 29 clarification from staff on why the numbers were not adding up. Finance Director Beer advised 30 the EDA further on the budget and explained the budget gap provided funding for staffing. 31 32 MOTION/SECOND: Mueller/Meehlhause. To Waive the Reading and Adopt Resolution 16-33 EDA-294, Approving the Preliminary EDA Property Tax Levy Request for Fiscal Year 2017. 34 35 Ayes – 4 Nays – 1 (Hulls) Motion carried. 36 37 8. REPORTS 38 39 None. 40 41 9. NEXT EDA MEETING: Monday, October 10, 2016, at 6:30 p.m. 42 Mounds View EDA September 26, 2016 Regular Meeting Page 3 1 10. ADJOURNMENT 2 3 President Flaherty adjourned the meeting at 6:49 p.m. 4 5 Respectfully submitted, 6 7 8 Recorded and transcribed by: 9 Heidi Guenther 10 TimeSaver Off Site Secretarial, Inc. 11 485711v2 AMB MU205-13 Item No: 7.A. Meeting Date: December 12, 2016 Type of Business: EDA Business City Administrator Review: ______ City of Mounds View Staff Report To: Economic Development Authority From: Mark Beer, Finance Director Item Title/Subject: Resolution 16-EDA-295 Approving the Special Benefit Tax Levy for the Purpose of Defraying the Costs Incurred by the Mounds View Economic Development Authority for Fiscal Year 2017 The City’s 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. The City Council adopted a preliminary HRA property tax levy to continue to promote economic development and housing activities within the City. Previously the City’s economic development and housing activities were funded with tax increment revenues. These tax increment revenues were discontinued as required by state statute. 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. Because of the different limitations on how an HRA levy and an EDA levy can be used, the City Council and EDA adopted an HRA levy of $100,000 and an EDA levy of $60,000 to provide flexibility during the development of the 2017 EDA budget. The intent was to have no more than $100,000 in total between the two levies. Based on the current EDA budget, the HRA levy should be approved at $40,000 and the EDA levy at $60,000. Respectfully submitted, ___________________________ Mark Beer, Finance Director 485711v2 AMB MU205-13 RESOLUTION NO. 16-EDA-295 MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY COUNTY OF RAMSEY STATE OF MINNESOTA APPROVING THE FINAL SPECIAL BENEFIT TAX LEVY FOR THE PURPOSE OF DEFRAYING THE COSTS INCURRED BY THE MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY FOR THE YEAR 2017 WHEREAS, the Mounds View Economic Development Authority (the "EDA") was created by the City Council of the City of Mounds View (the "City Council") by its adoption of an "Enabling Resolution" No. 4532, dated March 28, 1994 pursuant to Minnesota Statutes, Sections 469.090 to 469.1081 (the "EDA Act"); and WHEREAS, the Enabling Resolution was amended by Resolution No. 8467 dated November 23, 2015, whereby the EDA was granted all of the powers, rights, duties, and obligations set forth in Minnesota Statutes Sections 469.001 to 469.047 (the "HRA Act"); and WHEREAS, pursuant to Section 469.033, Subd. 6 of the HRA Act, with the consent of the City, the EDA is authorized to levy a special benefit tax within its area of operation, not to exceed 0.0185 percent of the City's taxable estimated market value, for the purpose of defraying its operational costs (the "HRA Levy"); and WHEREAS, the EDA adopted resolution 16-EDA-293 approving a preliminary HRA levy of $100,000 which has been reduced after refining the EDA budget. NOW, THEREFORE, BE IT RESOLVED by the Mounds View Economic Development Authority Board of Commissioners as follows: 1. That an HRA Levy for the year 2017 in the amount of $40,000, is hereby approved pursuant to Section 469.033, Subd. 6 of the HRA Act, as amended, for the purpose of defraying the EDA's operational costs. 2. That the City Administrator is hereby authorized and directed to forward this action to the City Council and to take such other actions as are necessary to effectuate the HRA Levy approved herein in accordance with Section 469.033, Subd. 6 of the HRA Act. Adopted this 12th Day of December 2016. ______________________________ Joe Flaherty, Mayor (ATTEST) ______________________________ Jim Ericson, Administrator (SEAL)