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HomeMy WebLinkAbout09-25-2000M:\MasterFiles\1999 thru 2010\2000\EDA\EDA Packets\09-25-00\Agenda -- EDA.doc CITY OF MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY MONDAY, SEPTEMBER 25, 2000 AGENDA ROLL CALL: President Coughlin, Vice President Stigney, Commissioner Marty, Commissioner Quick, Commissioner Thomason 1. AGENDA ADDITIONS: 2. APPROVAL OF MINUTES A. September 11, 2000 EDA Minutes 3. SPECIAL ORDER OF BUSINESS: 4. CONSENT AGENDA 5. EDA BUSINESS A. Consider Approval of Resolution 00-EDA-134 a resolution approving and authorizing the expenditure of tax increment funds for the acquisition of 7861 Groveland Road for the purpose of future redevelopment B. EDA Direction to EDC I. Use of Pre-1997 interest earnings II. Economic Development Plan update including review of business loan program 6. REPORTS 7. ADJOURMENT PROCEEDINGS OF THE MOUNDS VIEW EDA CITY OF MOUNDS VIEW RAMSEY COUNTY, MINNESOTA Regular Meeting September 11, 2000 Mounds View City Hall 2401 Highway 10, Mounds View, MN 55112 8:40 P.M. CALL MEETING TO ORDER ROLL CALL: Coughlin, Stigney, Marty, and Thomason. NOT PRESENT: Quick. 1. APPROVAL OF EDA MINUTES A. Approve Minutes of August 14, 2000. MOTION/SECOND: Thomason/Marty. To approve the minutes of the EDA for August 14, 2000, as presented. Ayes – 4 Nays – 0 Motion carried. Commission Member Quick was not present for the vote. 2. SPECIAL ORDER OF BUSINESS None. 3. CONSENT AGENDA A. Adopt Resolution 00-EDA-133 Requesting the City Council of the City of Mounds View Call for a Public Hearing by the City Council on the Proposed Modifications to the Tax Increment Financing Plans for Tax Increment Financing Districts Nos. 1, 2, 3 within the Mounds View Economic Development Project Area. MOTION/SECOND: Thomason/Marty. To approve the Consent Agenda for Item A as presented. Ayes – 4 Nays – 0 Motion carried. Mounds View EDA September 11, 2000 Regular Meeting Page 2 Commission Member Quick was not present for the vote. 5. EDA BUSINESS None. 6. REPORTS No reports were considered. 7. ADJOURNMENT President Coughlin adjourned the meeting at 8:45 p.m. Respectfully submitted, Recorded and transcribed by: Joan Lenzmeier TimeSaver Off Site Secretarial, Inc. Item No. 5A Meeting Date: September 25th, 2000 Type of Business: EDA WK: Work Session; PH: Public Hearing; CA: Consent Agenda; EDA: EDA Business City of Mounds View Staff Report To: Mounds View Mayor and City Council From: Aaron Parrish, Economic Development Coordinator Item Title/Subject: Consider Approval of Resolution 00-EDA-134 a resolution approving and authorizing the expenditure of tax increment funds for the acquisition of 7861 Groveland Road for the purpose of future redevelopment Date of Report: September 20, 2000 Background: At the September 5th Work Session, Council directed staff to investigate the possibility of acquiring residential property currently for sale located at 7861 Groveland Road. This property is located adjacent to Simon’s Sport Shop, ABC Liquors, and the Pak building. The map below is illustrative: September 25, 2000 EDA Meeting EDA Item #5A Page 2 The possibility exists that the subject property could become part of a larger redevelopment of the area. Mounds View’s Comprehensive Plan, submitted to the Metropolitan Council for review, envisions a mixed-use planned unit development for the area. The property, and a majority of the adjacent parcels, are located within TIF District #2. Currently, the house has three bedrooms and 1453 finished square feet. All appliances would be included in the sale. The lot is approximately .4 acres. The exterior of the home is featured below: Housing Inspector Jeremiah Anderson noted several improvements that could be made including the removal of a fuel oil tank in the basement, the addition of smoke detectors, and several other miscellaneous maintenance issues. Should the EDA purchase the property, it could be rented out until adjacent parcels become available. After an initial inquiry, the broker for the property indicated that they had received an offer, and were considering a purchase agreement with another party. However, the buyer and seller could not come to mutually beneficial terms, and the sale fell through. As a result, the seller offered the City the opportunity to purchase the home. After examining the home, an offer of $125,000, contingent upon EDA approval, was made on September 18, 2000. Subsequently, the seller has accepted the offer and a purchase agreement was entered into. Of course, the purchase agreement is contingent upon approval of the Economic Development Authority. Fiscal Implications: As previously stated, acquiring the house would cost approximately $125,000. A contingency of $5,000 has been incorporated to address any issues that may arise prior to closing should the EDA decide to purchase the property. Additionally, it might be suggested that pre-1997 TIF interest earnings be allocated for this particular project. By doing so, any rental income associated with the property would not be considered tax increment, and not subject to TIF specific requirements and reporting. Alternatively, funds could be taken from the 2000 EDA Special Revenue Fund budget allocation. More specifically, Account 7050: Capital, Real Estate. A resolution authorizing the purchase agreement and allocating TIF funds has been included for September 25, 2000 EDA Meeting EDA Item #5A Page 3 your reference as Attachment 1. Necessary Actions: Consider approval of Resolution 00-EDA-134 a resolution approving and authorizing the expenditure of tax increment funds for the acquisition of 7861 Groveland Road for the purpose of future redevelopment. ______________________________________ Aaron Parrish, Economic Development Coordinator (763) 717-4029 Attachment #1: Resolution No. 00-EDA-134 approving and authorizing the expenditure of tax increment funds for the acquisition of 7861 Groveland Road for the purpose of future redevelopment. (Purchase Agreement included as Appendix A) RESOLUTION NO. 00-EDA-134 MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY COUNTY OF RAMSEY STATE OF MINNESOTA RESOLUTION APPROVING AND AUTHORIZING THE EXPENDITURE OF TAX INCREMENT FUNDS FOR THE ACQUISITION OF 7861 GROVELAND ROAD FOR THE PURPOSE OF FUTURE REDEVELOPMENT It is hereby resolved by the Board of Commissioners (the ‘Board’) of the Mounds View Economic Development Authority (the ‘Authority’) as follows: Section 1. Recitals. 1.10 The Authority has the powers provided in Minnesota Statutes, Sections 469.124 to 469.134 and 469.090 to 469.108 (collectively, the “Act”). 1.02 Pursuant to and in furtherance of the objectives of the Act, the Authority has undertaken a program to promote development and redevelopment of certain land within the City of Mounds View and in this connection is engaged in carrying out the Mounds View Economic Development Project (the “Project”) within the City. 1.03 There has been approved pursuant to the Act a Project Plan for the Project. 1.04 The redevelopment of property within the Project is a stated objective of the Project Plan. 1.05 In order to achieve the objectives of the Project Plan, the Authority has determined to provide substantial aid and assistance through the financing of certain public costs of development. 1.06 It has been proposed that the Authority acquire the property located in the City at 7861 Groveland Road (the “Property”) and that the Authority approve the purchase agreement and/or similar agreement(s) (collectively, the “Agreement”) attached as “Appendix A” for the acquisition of the Property for the purposes of redevelopment. Section 2. Resolved. 2.01 The Board hereby determines that the Authority’s execution of the Agreement and the subsequent acquisition and redevelopment of the Property would be in furtherance of the Project Plan and hereby approves and authorizes said actions, including the execution of the Agreement by the officers of the Authority in their discretion and at such time, if any, as they may deem appropriate. 2.02 Upon execution and delivery of the Agreement, the officers and employees of the Authority (including members of the City Staff, acting in their capacity as staff to the Authority as well) are hereby authorized and directed to take or cause to be taken such actions as may be appropriate or necessary on behalf of the Authority to implement the Agreement, including the acquisition of the Property, which is being accomplished for redevelopment purposes. 2.03 That the Board of the Authority hereby determines that the execution and performance of the Agreement and acquisition of the Property will help realize the public purposes of the Act and are in furtherance of the Project Plan and authorizes the President and Executive Director to appropriate a maximum of $130,000 in tax increment funds to purchase and rehabilitate the property located at 7861 Groveland Road for redevelopment purposes. Adopted by the Board of Commissioners of the Mounds View Economic Development Authority this 25th day of September 2000. ___________________________ Dan Coughlin, President ATTEST: ____________________________ Kathleen Miller, Executive Director Appendix A: Purchase Agreement Page 1 PURCHASE AGREEMENT 1. PARTIES. This Purchase Agreement is made this 18th day of September, 1999, by and between Richard and Cynthia Chamberlain, a married couple, owner (the "Seller") and the MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY, a public body corporate and politic, 2401 Highway 10, Mounds View, MN 55112-1499 ("Buyer"). 2. SUBJECT PROPERTY. Seller is the owner of that certain real estate (the "Property") located at 7861 Groveland Road, Mounds View, and legally described as follows: LOT 57 BLOCK 0, Auditor’s Subdivision, Mounds View, Minnesota according to the plat filed for record with the Ramsey County Recorder 3. OFFER/ACCEPTANCE. In consideration of the mutual agreements herein contained, Buyer offers and agrees to purchase and Seller agrees to sell and hereby grants to Buyer the exclusive right to purchase the Property and all improvements thereon, together with all appurtenances, including, but not limited to, garden bulbs, plants, shrubs, trees, and grass. 4. CONTINGENCY/ACCEPTANCE DEADLINE. This Purchase Agreement shall be presented to the Board of the Buyer within 10 days of the date it is submitted to Buyer, fully executed by Seller herein. If the Buyer does not approve this Purchase Agreement, all Earnest Money shall be refunded to the Buyer. 5. PERSONAL PROPERTY INCLUDED IN SALE. The following items of personal property and fixtures owned by Seller and currently located on the Property are included in this sale: storm windows and inserts, storm doors, screens, awnings, window shades, blinds, curtain-traverse-drapery rods, attached lighting fixtures with bulbs, plumbing fixtures, sump pumps, water heaters, heating systems, built-in appliances, water softeners, garbage disposals, installed carpeting, work benches, television antennas, refrigerator, washer, dryer, diswasher, range/oven, and hood-fans. 6. PURCHASE PRICE AND TERMS. A. Purchase Price. The total Purchase Price for the real and personal property and fixtures included in this sale is one hundred twenty-five thousand and No/100ths Dollars ($125,000.00). B. Terms. (1) PAYMENT OF PURCHASE PRICE TO SELLER. Buyer agrees to pay by check the amount of One Thousand Two Hundred Fifty and No/100ths Dollars ($1250.00) as earnest money (the "Earnest Money") to be deposited by Remax Results within ten (10) days after the date of this Agreement and held and disbursed under the terms of Page 2 this Agreement on the Date of Closing. Buyer agrees to pay the Balance Due of One Hundred Twenty-three Thousand Seven Hundred Fifty and No/100ths Dollars ($123,750) in cash or by check on the Date of Closing according to the terms of this Purchase Agreement. (2) DEED/MARKETABLE TITLE. Subject to performance by Buyer, Seller agrees to execute and deliver a Warranty Deed conveying marketable title to the Property to Buyer, subject only to the following exceptions: a. Building and zoning laws, ordinances, state and federal regulations. b. Reservation of minerals or mineral rights to the State of Minnesota. c. Utility and drainage easements. (3) DOCUMENTS TO BE DELIVERED AT CLOSING. In addition to the Warranty Deed required in paragraph 6.B.(3) above, Seller shall deliver to Buyer: a. Affidavit of Seller. b. Such other documents as may be required by Buyer's title examiner or title insurance company. c. Waiver of relocation benefits. 7. REAL ESTATE TAXES AND SPECIAL ASSESSMENTS; COSTS AND PRORATIONS. Seller and Buyer agree to the following prorations and allocations of costs regarding this Purchase Agreement: A. Deed Tax. Seller shall pay all state deed tax regarding a Warranty Deed and any other documents necessary to place record title in the condition warranted and to be delivered by Seller under this Agreement. B. Taxes and Assessments. The real estate taxes due and payable in the year of closing will be homestead classification. Seller shall pay at or prior to closing all real estate taxes due and payable in 1999 and prior years. The Seller and Buyer agree to prorate as of the date of actual closing all real estate taxes due and payable in the year of closing. Seller agrees to pay at closing any and all real estate taxes prorated to Seller. Buyer shall pay the real estate taxes due and payable in the year following the year of closing and thereafter. The Seller makes no warranties as to the real estate homestead Page 3 tax classification status of property in the year following the year of closing. Seller shall pay at or prior to closing the balance of all special assessments due and payable and levied as of the date of closing. Seller shall also pay all special assessments pending as of the date of this Purchase Agreement, if any. If the amount of the special assessments is not finally determined by the Closing Date, Seller agrees to escrow an amount equal to one and one-half times the estimated amount, which shall be used to pay the special assessments when levied. Buyer shall assume special assessments that become pending after the date of this Purchase Agreement, except that Seller shall at all times be responsible to pay special assessments, if any, for delinquent sewer or water bills, removal of diseased trees, snow removal, or other current services provided to the Property by the assessing authority while the Seller is in possession of the Property. C. Recording Costs. Seller shall pay the costs of recording all documents necessary to place record title in the condition warranted, and the Buyer shall pay the cost of recording all other documents. 8. MARKETABILITY OF TITLE; COSTS TO CLEAR TITLE. Seller shall, within a reasonable time after signing this Agreement and at the expense of Seller, furnish an abstract of title or registered property abstract certified to date to include proper searches covering bankruptcies, all judgments, taxes, special assessments and liens. Buyer shall be allowed fourteen (14) days after receipt thereof for examination of said title and the making of any objections thereto, said objections to be made in writing or deemed to be waived. If any objections are so made, Seller shall be allowed sixty (60) days to make such title marketable. Seller shall permit no additional encumbrances to be made upon the Property between the date of this Purchase Agreement and the Closing Date. If said title is not marketable and is not made so within sixty (60) days from the date of written objections thereto as above provided, this Agreement shall be null and void, at option of Buyer, and neither party shall be liable for damages hereunder to the other party. All money theretofore paid by Buyer shall be refunded. Alternatively, if Buyer elects to proceed with this transaction, Seller shall bear any and all costs to clear title to the Property, including the cost of satisfying any mortgages or liens of record, if any. In the event Seller fails to clear title to the extent herein required, Buyer may clear title to the extent required and charge the cost of clearing title to the Seller, including attorney's fees, court costs, condemnation awards, amounts paid for releases, waivers or quit claims and all other costs actually incurred by Buyer, unless waived by Buyer. In the event that title to the Property cannot be made marketable by the Seller by the Closing Date, then, at the option of the Buyer, this Purchase Agreement shall be null and void and all money theretofore paid by Buyer shall be refunded to the Buyer. 9. DEFAULT. If the title to the Premises be found marketable or be so made within said time, and Buyer shall default in any of the covenants contained in this Agreement and continue into default for a period of ten (10) days, then and in that case, Seller may terminate Page 4 this Agreement and on such termination all the payments made under this Agreement shall be retained by Seller as liquidated damages, time being of the essence hereof. This provision shall not deprive either party of the right of enforcing the specific performance of this Agreement provided this Agreement shall not be terminated as aforesaid, and provided action to enforce such specific performance shall be commenced within six months after such right of action shall arise. 10. CLOSING DATE. The closing of the sale of the Property shall take place on or before, October 31, 2000, or at such earlier or later date as may be mutually agreed upon by the Seller and Buyer. 11. POSSESSION. The Seller shall deliver possession of the Property to Buyer at 11:59 a.m. on the date of closing, in substantially the same condition as the Property exists on the date of this Purchase Agreement, reasonable wear and tear excepted. 12. DAMAGES TO REAL PROPERTY. As Seller is presently in possession of the Property, if there is any loss or damage to the Property between the date hereof and the date of closing, for any reason including fire, vandalism, flood, earthquake or act of God, the risk of loss shall be on Seller. Seller warrants that Seller presently has the Property properly insured against any risk of loss. If the Property is destroyed or substantially damaged prior to closing, or if the Property is damaged materially but less than substantially prior to closing, Buyer may rescind this Purchase Agreement by notice to Seller within twenty-one (21) days after Seller notifies Buyer of such damage, during which 21-day period Buyer may inspect the real property, and in the event of such rescission, the Earnest Money shall be refunded to Buyer. If such an event occurs, Buyer and Seller agree to sign a Cancellation of Purchase Agreement within a reasonable time after such event takes place. 13. CONDITION OF PROPERTY. Seller warrants that all appliances, fixtures, heating and air conditioning equipment, wiring, and plumbing used and located on the property are in working order on the date of closing. Seller HAS had a wet basement or water in the basement. Seller discloses that the roof HAS leaked. Seller shall remove all debris and all personal property not included in this sale from the Property before possession date. Seller has not received any notice from any governmental authority as to the existence of any dutch elm disease, oak wilt, or other disease of any trees on the Property. Seller's warranties and representations contained in this paragraph 13 shall survive the closing of this transaction. Buyer shall have the right to have inspections of the Property conducted prior to Closing. Unless required by local ordinance or lending regulations, Seller does not plan to have the Property inspected. Other than the representations made in this Purchase Agreement, the property is being sold "AS IS" with no express or implied representations or warranties by Seller as to physical conditions, quality of construction, workmanship, or fitness for any particular purpose. (This paragraph is not intended to waive or modify any provisions of Minn. Stat., Chapter 327A.) Page 5 14. DISCLOSURE; INDIVIDUAL SEWAGE TREATMENT SYSTEM. Seller discloses that there IS NOT an individual sewage treatment system on or serving the Property. If the Property has a septic system, Seller agrees to provide water quality test results and/or septic system certification as required state law or local ordinance. 15. CONDITION OF SUBSOIL AND GROUND WATER; ENVIRONMENTAL WARRANTY. To the best of the Seller's knowledge there are no hazardous substances or underground storage tanks, except herein noted: ________________________________ _________________________________________________________________________ _________________________________________________________________________. Seller hereby warrants to Buyer that during the time the Seller has owned the Property there have been no acts or occurrences upon the Property that have caused or could cause impurities in the subsoil or ground water of the Property or other adjacent properties. This warranty shall survive the closing of this transaction. Seller agrees to indemnify and hold harmless Buyer from any and all claims, causes of action, damages, losses, or costs (including reasonable attorney's fees) relating to impurities in the subsoil or groundwater of the Property or other adjacent properties which arise from or are caused by acts or occurrences upon the Property prior to Buyer taking possession of the same. This indemnity shall survive the closing of this transaction. Seller warrants that to the best of the Seller's knowledge no toxic or hazardous substances, including, without limitation, asbestos, urea formaldehyde, the group of organic compounds known as polychlorinated biphenyl, and any substance as defined or listed as "hazardous materials" or "toxic substances" or similarly identified in or pursuant to the Comprehensive Environmental Response, Compensation and Liability Act of 1980 ("CERCLA"), 42 U.S.C. Section 9601-9657, as now or later amended, "hazardous materials" identified in or pursuant to the Hazardous Materials Transportation Act, 49 U.S.C. Section 1802, et seq., as now or later amended, "Hazardous Wastes" identified in or pursuant to The Resource Conservation and Recovery Act of 1976 ("RCRA"), 42 U.S.C. Section 6901 et seq., as now or later amended, any chemical substances or mixture regulated under the Toxic Substances Control Act of 1976, 15 U.S.C. Section 2601, et seq., as now or later amended, any "toxic pollutant" under the Clear Water Act, 33 U.S.C. Section 1251 et seq., as now or later amended, any hazardous air pollutant under the Clean Air Act, 42 U.S.C. Section 7901 et seq., as now or later amended, and any hazardous or toxic substance or pollutant now or later regulated under any other applicable federal, state or local Environmental Laws, have been generated, treated, stored, released or disposed of, or otherwise deposited in or located on the Property, including without limitation, the surface and sub-surface waters of the Property, nor has any activity been undertaken on the Property which would cause the Property to become a hazardous waste treatment, storage or disposal facility within the meaning of, or otherwise, bring the Property within the ambit of, any of the aforementioned acts or any similar state law or local ordinance or any other Environmental Law. Seller also warrants that to the best of Seller's knowledge there are no substances or conditions in or on the Property which may Page 6 support a claim or cause of action under any of the aforementioned acts or any other federal, state or local environmental regulatory requirement and that no underground deposits which cause hazardous wastes or underground storage tanks of any type are located on the Property. This warranty shall survive the closing of this transaction. 16. WELL DISCLOSURE. The Seller has certified in a “Well Disclosure Statement” that a well is present on the described real Property. The cost of sealing any wells contained within the “Well Disclosure Statement” required to be capped or sealed under Minnesota law will be borne by the BUYER. 17. SELLER'S WARRANTIES. Seller warrants that buildings, if any, are entirely within the boundary lines of the property. Seller warrants that there is a right of access to the real property from a public right-of-way. Seller warrants that there has been no labor or material furnished to the property for which payment has not been made. Seller warrants that there are no present violations of any restrictions relating to the use or improvement of the Property. The attached “Seller’s Property Disclosure Statement” is true to the best of the Seller’s knowledge. These warranties shall survive the closing of this transaction. 18. BROKERS A. The Buyer represents and warrants that there is no broker involved in this transaction with whom they have negotiated with or to whom they have agreed to pay a broker commission. Buyer agrees to indemnify Seller for any and all claims for brokerage commissions or finders' fees in connection with negotiations for purchase of the Property arising out of any alleged agreement or commitment or negotiation by Buyer, and Seller agrees to indemnify Buyer for any and all claims for brokerage commissions or finders' fees in connection with negotiations for purchase of the Property arising out of any alleged agreement or commitment or negotiation by Seller. B. The Seller represents and warrants that Steve Ennen of Remax Results is the Seller’s Agent. 19. RELOCATION BENEFITS. Seller expressly agrees to waive any and all relocation benefits, assistance and services, related to the Seller’s ownership and activities on the Property to which Seller may be entitled by law, as a result of the transaction contemplated by this Purchase Agreement. Seller agrees to provide to Buyer at Closing an executed waiver of relocation benefits as to these activities. 20. MERGER OF REPRESENTATIONS, WARRANTIES. All representations, warranties and agreements contained in this Purchase Agreement shall not be merged into any instruments or conveyance delivered at closing, and the parties shall be bound accordingly. 21. ENTIRE AGREEMENT; AMENDMENTS. This Purchase Agreement constitutes the entire agreement between the parties, and no other agreement prior to this Purchase Page 7 Agreement or contemporaneous herewith shall be effective except as expressly set forth or incorporated herein. Any purported amendment shall not be effective unless it shall be set forth in writing and executed by both parties or their respective successors or assigns. 22. BINDING EFFECT; ASSIGNMENT. This Purchase Agreement shall be binding upon and inure to the benefit of the parties and their respective heirs, executors, administrators, successors and assigns. Buyer shall not assign its rights and interest hereunder without notice to Seller, and Seller shall give notice to Buyer of assignment of its interests in the manner prescribed in paragraph 23. 23. NOTICE. Any notice, demand, request or other communication which may or shall be given or served by the parties shall be deemed to have been given or served on the date the same is deposited in the United States Mail, registered or certified, postage prepaid and addressed as follows: a. If to Seller: Steve Ennen Remax Results 2605 Campus Drive Plymouth, MN 55441 b. If to Buyer: Mounds View Economic Development Authority Attn: EDA Executive Director 2401 Highway 10 Mounds View, MN 55112 With copy to: Scott J. Riggs Kennedy & Graven, Chartered 470 Pillsbury Center 200 South Sixth Street Minneapolis, MN 55402 24. SPECIFIC PERFORMANCE. This Purchase Agreement may be specifically enforced by the parties. 25. ADDITIONAL DOCUMENTS. Buyer and Seller agree to cooperate with the other and their representatives regarding any reasonable requests made subsequent to the execution of this Purchase Agreement to correct any clerical errors in this Purchase Agreement and to provide any and all additional documentation deemed necessary by either party to effectuate the transaction contemplated by this Purchase Agreement. 26. EXECUTION IN COUNTERPARTS. This Purchase Agreement may be executed in counterparts by the parties hereto. Page 8 NOTICE: THIS IS A LEGALLY BINDING CONTRACT BETWEEN BUYER AND SELLER. IF YOU DESIRE LEGAL OR TAX ADVICE, CONSULT AN APPROPRIATE PROFESSIONAL. IN WITNESS WHEREOF, the parties have executed this agreement as of the date written above. SELLER ______________________________ Richard Chamberlain ______________________________ Cynthia Chamberlain BUYER MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY By____________________________ Dan Coughlin, President By____________________________ Kathleen Miller, Executive Director Item No. 5B Meeting Date: September 25th, 2000 Type of Business: EDA WK: Work Session; PH: Public Hearing; CA: Consent Agenda; EDA: EDA Business City of Mounds View Staff Report To: Mounds View Mayor and City Council From: Aaron Parrish, Economic Development Coordinator Item Title/Subject: EDA Direction to the EDC Date of Report: August 7, 2018 Background: For the last two years, the EDC has devoted a considerable amount effort updating the Economic Development Component of the Comprehensive Plan and examining several TIF related items. However, the Commission’s agendas are relatively open in the upcoming months. Accordingly, direction is being requested from the EDA for specific items for the EDC to address. The following two items might be suggested. I. Evaluate Potential Uses of Pre-1997 Interest Earnings The Office of the State Auditor has determined that interest earnings on TIF funds prior to July 1, 1997 are not subject to TIF restrictions. Mr. Jim O’ Meara, the EDA’s TIF attorney, has reaffirmed this position. Currently, there is approximately $1.7 million in interest earnings (This figure is an estimate that needs to be confirmed with the Finance Director). Minimally, the pre-1997 interest earnings should be transferred into a specific fund to distinguish it from existing TIF funds. If the EDA desires, the EDC could evaluate potential options. Some preliminary options include: • Establishing a Highway 10 Special Revenue Fund to provide revenue for any future safety improvements, infrastructure, and/or redevelopment associated with Highway 10 • Establishing an Economic Development Special Revenue Fund to fund a variety of economic development and housing projects / improvements throughout the City • Transferring revenue to existing funds • Other suggestions • A combination of any of the aforementioned options II. Economic Development Plan Update Including Review of Business Loan Program In 1986, Mounds View adopted an “Economic Development Plan” to plan future development. This plan included property inventories, fiscal analysis, the use of economic development incentives, a community inventory, and an economic development program. More recently, an Economic Development element was included in the Comprehensive Plan currently being reviewed by the Metropolitan Council. September 25, 2000 EDA Meeting EDA Item 5B Page 2 M:\MasterFiles\1999 thru 2010\2000\EDA\EDA Packets\09-25-00\Item 05B--EDA Direction to the EDC--Aaron Parrish.doc If the EDA desires, the EDC could develop an Economic Development Plan similar to the one adopted in 1986, but based on the principles contained within the Comprehensive Plan. Through previous staff and community planning initiatives, a substantial portion of the work has already been completed. At this point, it just needs to be integrated into one specific policy document. Additional areas that could be incorporated into an updated plan include site-specific redevelopment opportunities; business retention and expansion; marketing / image and identity; and economic development / redevelopment issues associated with Highway 10. An evaluation of the Business Improvement Partnership Loan Program could also be done based on Mounds View’s overall economic development strategy. Finally, evaluating the use of pre-1997 interest earnings and contemplating an Economic Development Plan are just two areas that the EDC could direct its efforts. A myriad of other possibilities exist. Necessary Actions: Provide Direction to the EDC ______________________________________ Aaron Parrish, Economic Development Coordinator (763) 717-4029