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HomeMy WebLinkAbout01-10-2011 CITY OF MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY MEETING AGENDA MOUNDS VIEW CITY HALL Monday, January 10, 2011 6:30 PM 1. CALL TO ORDER 2. ROLL CALL: President Flaherty, Vice President Stigney, Commissioner Hull, Commissioner Mueller, Commissioner Gunn 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. November 8, 2010, EDA Minutes 6. CONSENT AGENDA 7. EDA BUSINESS A. Resolution 11-EDA-265 Appointing Members to the Economic Development Commission (EDC) B. Resolution 11-EDA-266 Electing and Appointing Officers for 2011 to the Mounds View Economic Development Authority (EDA) C. Administration and Servicing Fees for Home Improvement Loans 8. REPORTS 9. NEXT EDA MEETING: Monday, January 24, 2010, at 6:30pm 10. ADJOURNMENT Corrections made by City Administrator Ericson and Assistant City Administrator Crane PROCEEDINGS OF THE MOUNDS VIEW EDA 1 CITY OF MOUNDS VIEW 2 RAMSEY COUNTY, MINNESOTA 3 4 Regular Meeting 5 November 8, 2010 6 Mounds View City Hall 7 2401 Highway 10, Mounds View, MN 55112 8 6:30 P.M. 9 10 11 1. CALL MEETING TO ORDER 12 13 2. ROLL CALL: President Flaherty, Vice President Stigney, Commissioner Hull, 14 Commissioner Mueller, and Executive Director Ericson. 15 16 NOT PRESENT: Commissioner Gunn. 17 18 3. APPROVAL OF AGENDA 19 20 MOTION/SECOND: Mueller/Stigney. To Approve the November 8, 2010, Agenda as 21 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 A. October 25, 2010, EDA Minutes. 32 33 MOTION/SECOND: Mueller/Hull. To Approve the October 25, 2010, Minutes as presented. 34 35 Ayes – 4 Nays – 0 Motion carried. 36 37 6. CONSENT AGENDA 38 39 None. 40 41 7. EDA BUSINESS 42 43 A. Resolution 10-EDA-261, Approving Mounds View Home Improvement Loan 44 Mounds View EDA November 8, 2010 Regular Meeting Page 2 Program Criteria 45 46 Economic Development Specialist Steinmetz reviewed with the EDA the proposed changes to 47 the Loan Program Criteria. She indicated the EDA has been discussing this item for several 48 months and the most recent draft has a summary of changes highlighted in yellow. An asset limit 49 was written in to Loan Option 4, which was recommended by the GMHC staff. Staff 50 recommends approval of the draft home improvement loan program criteria. If approved staff 51 would discuss administrative under writing fees with GMHC in further detail and would bring 52 forward an agreement to the EDA. 53 54 Commissioner Mueller asked if the demolition loan was for 10 years, or if it was due upon sale 55 of the property. She recommended these statements within the criteria be conjoined so as not to 56 appear there is an option. 57 58 Vice President Stigney questioned if the EDA should have greater knowledge of the GMHC fees 59 prior to advertising this loan program. Economic Development Specialist Steinmetz indicated 60 she would not begin marketing the program if the EDA advised. 61 62 Vice President Stigney asked how loans would be handled if defaulted on by a resident. 63 Economic Development Specialist Steinmetz indicated the City could potentially be out the 64 money. 65 66 Vice President Stigney questioned what action the City could take and if the City had no options, 67 he had a problem with the criteria in this program. Economic Development Specialist Steinmetz 68 indicated the City would be second in line to be paid if a home were to be foreclosed. 69 70 President Flaherty asked if the City had the right to put a lien on the property. Community 71 Development Director Roberts stated the loan was a lien. He indicated if the property were to 72 sell, the lien would be paid, but if foreclosed it potentially would be negated. 73 74 Commissioner Hull questioned how this type of program worked in other cities. Economic 75 Development Specialist Steinmetz stated all were written in the same manner and these loans 76 were never paid back first, prior to a home mortgage. She explained the City would be at a slight 77 risk with these loans. 78 79 Vice President Stigney wondered if a City loan could be tacked on to property taxes if defaulted. 80 Economic Development Specialist Steinmetz was uncertain if this was an option. 81 82 Vice President Stigney requested that GMHC fees be waived if a loan within the City were 83 defaulted. Economic Development Specialist Steinmetz indicated she would investigate this 84 further with GMHC. 85 86 Mounds View EDA November 8, 2010 Regular Meeting Page 3 Vice President Stigney stated the general home loan should be rewritten to ensure that this loan 87 assisted blighted homes. He did not want the City competing with local banks. He suggested the 88 loans. Interior repairs should not be the focus of this program should support efficiency 89 improvements. 90 91 Commissioner Mueller stated the applicant’s income was limited within the general home loans, 92 which should limit applications for interior home repairs. 93 94 Vice President Stigney requested code enforcement loans have an interest rate. He noted again 95 that the eligible repairs on windows should be energy efficient. 96 97 President Flaherty read through a portion of the loan program stating interior repairs are only 98 allowed if they are related to life safety issues of the residents and are required by the code 99 enforcement officers. Economic Development Specialist Steinmetz indicated she could speak 100 with Jeremiah further on this issue. He could attend a meeting to explain these lists with the 101 EDA., the code enforcement official if desired. 102 103 Vice President Stigney questioned how long it took to process the emergency loans. Economic 104 Development Specialist Steinmetz noted a loan was completed this past winter, for a Mounds 105 View resident and it was administered very quickly. 106 107 President Flaherty was satisfied with the criteria. He requested additional information from 108 GMHC and the services they would provide. He suggested holding off on the marketing of the 109 program hold off until January as he did not want the City to get the cart before the horse. Once 110 the City had better knowledge of the fees and services provided by GMHC, the program could be 111 advertised. 112 113 Commissioner Mueller requested the loan term on Page 3 be reduced from 15 years to 10 years. 114 She questioned if it was necessary for a homeowner to apply for two different types of loans at 115 the same time. Economic Development Specialist Steinmetz indicated this language could be 116 removed from the criteria. Commissioner Mueller asked that it be omitted. 117 118 Commissioner Mueller suggested each loan state that a property owner only be eligible for one 119 loan noting she would like to see as many residents benefit from this program as possible. 120 Executive Director Ericson felt this was a reasonable request, especially given this was a one 121 year pilot program and adjustments could be made if necessary. 122 123 President Flaherty indicated this program was designed to meet the needs of the community as 124 residents have approached GMHC for funds. The criteria were specific based on the Mounds 125 View residents to assist with those that could benefit from a home improvement loan. 126 127 Vice President Stigney requested each loan be voted on separately as he opposed several. 128 Mounds View EDA November 8, 2010 Regular Meeting Page 4 Economic Development Specialist Steinmetz explained that the resolution before the EDA this 129 evening had all four loans included. 130 131 Vice President Stigney requested that four resolutions be brought back to the EDA for approval 132 with revisions made as suggested this evening. 133 134 Commissioner Mueller agreed with this recommendation. Executive Director Ericson felt this 135 was excessive but could be completed by Staff. 136 137 President Flaherty indicated he had no problem with four resolutions coming back before the 138 EDA as this would allow several of the loans to proceed while the other details could then be 139 reviewed further. Economic Development Specialist Steinmetz explained she would bring these 140 resolutions back to the EDA in November. 141 142 Economic Development Specialist Steinmetz indicated the EDA could do away with the loan 143 program criteria and keep the existing programs in place. 144 145 President Flaherty felt the EDA was in favor of a home improvement loan program, but several 146 issues still needed to be discussed further before proceeding. 147 148 President Flaherty requested Staff revise the loan criteria based on the comments provided this 149 evening and allow the EDA to make a decision at the next meeting. 150 151 8. REPORTS 152 153 None. 154 155 9. NEXT EDA MEETING: Monday, November 29, 2010, at 6:30 p.m. 156 157 10. ADJOURNMENT 158 159 President Flaherty adjourned the meeting at 7:15 p.m. 160 161 Respectfully submitted, 162 163 164 Recorded and transcribed by: 165 Carla Wirth 166 TimeSaver Off Site Secretarial, Inc. 167 Item No: 07A Meeting Date: January 10, 2011 Type of Business: EDA Administrator Review : ____ City of Mounds View Staff Report To: Honorable Mayor and City Council From: Desaree Crane, Assistant City Administrator Heidi Steinmetz, Economic Development Specialist Item Title/Subject: Resolution 11-EDA-265, Appointing Members to the Economic Development Commission (EDC) Background: Jennifer Wagner-Harkonen and Daniel Larson have term seats, which expired on December 31, 2010. According to the Mounds View City Code Section 408.03: The Commission shall be composed of seven (7) equal voting members, including three (3) business representatives and four (4) residents, appointed by the Authority Board of Commissioners based on the recommendation of the Economic Development Commission, from the applications submitted. Members shall have diverse qualifications with practical experience consisting of, not limited to, but including one (1) of the following areas: economics, finance, accounting, real estate, social services and marketing. In addition to Ms. Wagner-Harkonen and Mr. Larson, Jackie Entsminger has resigned from her position as the Economic Development Commissioner (resident seat), effective November 19, 2010. Discussion: Staff received three (3) applications. The EDC reviewed two of the applications, Jennifer Wagner-Harkonen (resident seat) and Daniel Larson (resident seat) at the November 19, 2010, EDC Meeting. At the November 19th EDC Meeting, the EDC recommended both Ms. Wagner- Harkonen and Mr. Larson for reappointment to the EDC. Both seats are for a three year term to expire on December 31, 2013. During the November 19, 2010, EDC Meeting, Jackie Entsminger resigned from her seat. Staff did receive an additional application from a 37 year resident, James Paron, who is interested in being a member on the EDC. Staff recommends appointing Mr. Paron to finish Ms. Entsminger’s term, which is set to expire on December 31, 2011. Recommendation It is recommended that the EDA consider these applications, and approve Resolution 11- EDA-265, appointing these members to the EDC. Respectfully submitted, __________________ Desaree Crane RESOLUTION NO. 11-EDA-265 MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY CITY OF MOUNDS VIEW COUNTY OF RAMSEY STATE OF MINNESOTA APPOINTING MEMBERS TO THE ECONOMIC DEVELOPMENT COMMISSION (EDC) WHEREAS, the Economic Development Commission (EDC) consist of members appointed by the Economic Development Authority (EDA); and WHEREAS, Jennifer Wagner-Harkonen (resident seat) and Daniel Larson (resident seat) have term seats, which expired on December 31, 2010; and WHEREAS, Jackie Entsminger has resigned from her position as Economic Development Commissioner (resident seat), effective November 19, 2010; and WHEREAS, there are three (3) vacant seats on the EDC effective January 1, 2011; and WHEREAS, Staff received three (3) applications. NOW, THEREFORE, BE IT RESOLVED that the EDA does hereby appoint the following below to the EDC: Name Term Expiration James Paron December 31, 2011 Jennifer Wagner-Harkonen December 31, 2013 Daniel Larson December 31, 2013 Adopted this 10th day of January, 2011 by the Mounds View Economic Development Authority _____________________________________ Joe Flaherty, President Attest: ______________________________________ James Ericson, Executive Director (SEAL)