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CITY OF MOUNDS VIEW
ECONOMIC DEVELOPMENT AUTHORITY
MONDAY, DECEMBER 11, 2000
REVISED AGENDA
ROLL CALL: President Coughlin, Vice President Stigney, Commissioner Marty,
Commissioner Quick, Commissioner Thomas
1. AGENDA ADDITIONS:
2. APPROVAL OF MINUTES
A. November 13, 2000
3. SPECIAL ORDER OF BUSINESS:
4. CONSENT AGENDA
5. EDA BUSINESS
A. Resolution # 00-EDA-138, a Resolution Requesting the Economic
Development Authority Withdraw all Pre-July 1st, 1997 Interest Revenue
from Tax Increment Financing Districts Nos. 1, 2, and 3 (All
Redevelopment Districts), and Place the Revenue in a Newly Created
Economic Development Fund.
B. Resolution #00-EDA-139
Resolution Authorizing the Expenditure of TIF Funds to Purchase the
Sheriff’s Certificate for 2345 County Road H2.
6. REPORTS
7. ADJOURNMENT
PROCEEDINGS OF THE MOUNDS VIEW EDA
CITY OF MOUNDS VIEW
RAMSEY COUNTY, MINNESOTA
Regular Meeting
November 13, 2000
Mounds View City Hall
2401 Highway 10, Mounds View, MN 55112
8:02 P.M.
CALL MEETING TO ORDER
ROLL CALL: Coughlin, Stigney, Marty, and Quick.
NOT PRESENT: None.
1. AGENDA ADDITIONS
There were no additions or corrections to the agenda.
MOTION/SECOND: Marty/Stigney. To approve the agenda as presented.
Ayes – 4 Nays – 0 Motion carried.
2. APPROVAL OF EDA MINUTES
A. Approve Minutes of October 10, 2000.
Vice President Stigney requested the minutes be changed to refer to “Planner Ericson” rather
than “Planning Associate Ericson”.
MOTION/SECOND: Stigney/Marty. To approve the minutes of the EDA for October 10, 2000,
with the noted correction.
Ayes – 4 Nays – 0 Motion carried.
3. SPECIAL ORDER OF BUSINESS
None.
Mounds View EDA November 13, 2000
Regular Meeting Page 2
4. CONSENT AGENDA
None.
5. EDA BUSINESS
A. Consider Approval of Resolution 00-EDA-137, a Resolution Approving
Modifications/Clarifications to the Tax Increment Financing Plans for
District Nos. 1, 2, 3 within the Mounds View Economic Development Project.
Economic Development Director Parish inquired as to whether the Economic Development
Authority had any questions concerning the Resolution.
MOTION/SECOND: Quick/Stigney. To approve Resolution 00-EDA-137, a Resolution
Approving Modifications/Clarifications to the Tax Increment Financing Plans for District Nos.
1,2, 3 within the Mounds View Economic Development Project.
Vice President Stigney indicated there was a spelling error in the Resolution and requested it be
changed.
Ayes – 4 Nays – 0 Motion carried.
6. REPORTS
No reports were considered.
7. ADJOURNMENT
President Coughlin adjourned the meeting at 8:05 p.m.
Respectfully submitted,
Recorded and transcribed by:
Joan Lenzmeier
TimeSaver Off Site Secretarial, Inc.
Item No. 5A
Meeting Date: December 11, 2000
Type of Business: EDA
WK: Work Session; PH: Public Hearing;
CA: Consent Agenda; EDA: EDA Business
City of Mounds View Staff Report
To: President and Economic Development Authority
From: Aaron Parrish, Economic Development Coordinator
Item Title/Subject: Pre-1997 TIF Interest Earnings
Date of Report: December 5, 2000
Background:
As Council is aware, The Office of the State Auditor has determined that interest earnings on TIF
funds prior to July 1, 1997, herein referred to as pre-1997 interest earnings, are not subject to TIF
restrictions. Mr. Jim O’ Meara, the EDA’s TIF attorney, has reaffirmed this position. There are
approximately $2,276,116 in such earnings. Subsequently, the EDA directed the EDC to evaluate
potential options for the use of these funds.
Prior to EDC evaluation, Ehlers and Associates, the EDA’s Financial Advisor, was consulted and
advised that the pre-1997 interest earnings be transferred into a new or different fund. This will
enable the pre-1997 interest earnings to be distinguished from existing TIF funds. Additionally, it
was suggested that a majority of the money not be obligated and/or spent immediately. This is due
to some issues currently outstanding with the Office of State Auditor. More specifically, the OSA has
been evaluating Mounds View’s use of TIF for the acquisition and renovation of the Community
Center. If the EDA is found to be in non-compliance, one of the potential penalties is repayment of
all or part of funds associated with the non-compliant activity.
Additionally, the pre-1997 earnings have been accounted for with TIF funds for several years.
Depending upon OSA interpretation, they may consider these funds tax increment. If that is the
determination, then these funds would have the same restrictions associated with TIF. Accordingly,
it would be fiscally prudent to wait for the OSA to evaluate TIF reports reflecting changes relative to
the use of pre-1997 interest earnings prior to spending a significant amount of funds on non-TIF
activities.
Taking the above consultation into consideration, the EDC evaluated the following potential options
including the following:
1. Establishing a fund to provide for any future safety improvements, infrastructure, and/or
redevelopment associated with County Highway 10.
2. Establishing a fund for variety of future economic development and housing projects /
improvements throughout the City. This could include a revolving loan fund, funding for
economic development once the current TIF districts expire, housing programs and
replacement, mobile home park revitalization, or a range of other activities.
3. Transfer revenue to existing funds.
4. Keep pre-1997 interest earnings in existing TIF funds to be spent on TIF eligible
activities.
5. A combination of the aforementioned options.
6. Other suggestions.
City of Mounds View Staff Report
December 5, 2000
Page 2
While a range of financial and programmatic issues were discussed, the EDC determined that
additional time would be needed to determine a specific use for the funds. The Commission felt that
a better allocation could be made after the forthcoming Economic Development Plan was completed
and funding priorities associated with County Highway 10 planning process were ascertained.
Given the aforementioned considerations and the recommendations provided by the EDA’s
Financial Advisor, the EDC voted unanimously to recommend withdrawing the pre-1997 interest
earnings from the TIF districts to be placed in an a newly created Economic Development Fund.
Additionally, they recommended adhering to the Financial Advisors recommendations of not
obligating the funds for a specified period of time. Finally, it was also recommended that funds not
be utilized until priorities could be determined.
Financial Considerations:
In the event that our TIF districts do not have a cash balance to cover a withdrawal of $2,276,116, it
may be necessary to borrow from an existing City fund to be repaid with future increments. This is
commonly referred to as an interfund loan.
Necessary Actions:
Consider resolution 00-EDA-138 taking pre-1997 July 1st, 1997 interest revenue and placing it in a
newly created Economic Development Fund..
______________________________________
Aaron Parrish, Economic Development Coordinator
(763) 717-4029
Attachment #1: Resolution 00-EDA-138
MOUNDS VIEW ECONOMIC AND DEVELOPMENT AUTHORITY
CITY OF MOUNDS VIEW
RESOLUTION # 00-EDA-138
RESOLUTION WITHDRAWING PRE-JULY 1ST, 1997 INTEREST REVENUE FOR TAX
INCREMENT FINANCING DISTRICTS NOS. 1, 2 AND 3 (ALL REDEVELOPMENT
DISTRICTS), AND PLACE THE REVENUE IN A NEWLY CREATED ECONOMIC
DEVELOPMENT FUND.
WHEREAS, the City Council established the EDA in 1994 to advance economic
development and redevelopment objectives in Mounds View;
WHEREAS, the City Council (the "Council") of the City of Mounds View, Minnesota (the
"City") established the Mounds View Economic Development Project Area and Tax Increment
Financing Districts Nos. 1, 2 and 3 pursuant to Minnesota Statutes, Minnesota Statutes,
Sections 469.174 through 469.179, inclusive, as amended, in an effort to encourage the
development and redevelopment of certain designated areas within the City; and
WHEREAS, the EDA has earned approximately $2,276,116 on TIF funds invested prior to
July 1st, 1997;
WHEREAS, the Economic Development Commission discussed this issue at their December 1,
2000 meeting;
NOW, THEREFORE BE IT RESOLVED by the Board as follows:
1. The EDA directs the Executive Director to withdraw $2,276,116 in Pre-July 1st, 1997 Interest
Earnings from the TIF District Debt Service Funds;
2. The EDA directs the Executive Director to place the aforementioned $2,276,116 in a newly
created Economic Development Fund with the following conditions:
A. Funds not be immediately obligated until outstanding issues with the OSA are resolved;
B. Funds not be utilized until funding priorities are more clearly defined;
C. Any deficits in the TIF District Debt Service Fund that may arise in current our future
years resulting from the transaction shall be financed through an interfund loan from
existing city funds.
Approved by the Board on December 11, 2000.
_______________________________
Dan Coughlin, President
ATTEST:
______________________________
Kathleen Miller, Executive Director
Item No. 5B
Meeting Date: December 11, 2000
Type of Business: EDA
WK: Work Session; PH: Public Hearing;
CA: Consent Agenda; EDA: EDA Business
City of Mounds View Staff Report
To: President and Economic Development Authority
From: Aaron Parrish, Economic Development Coordinator
Item Title/Subject: Network Liquors Sheriff’s Certificate
Date of Report: December 8, 2000
Background:
The property located at 2345 County Road H2, commonly referred to as Network Liquors, is
currently in default on a loan from Associated Bank. Accordingly, the property is in foreclosure and
in the redemption period. As such, we have inquired about the possibility of acquiring the “Sheriff’s
Certificate” for the property. By purchasing the “Sheriff’s Certificate,” the EDA would have title to the
property if the borrower, Mr. Robert Waste, failed to pay the outstanding loan amount with interest
by the end of the redemption period. Associated Bank has indicated that the price to acquire the
certificate would be approximately $68,000.
The property consists of a retail operation and single-family residence. The retail space is leased to
the operator of Network Liquors. Mr. Robert Waste currently occupies the single-family residence.
Additional considerations include the current status of the Network Liquors lease, potential
relocation issues associated with the residence, demolition costs (expected to be approximately
$10,000 or less), and costs associated with obtaining clear title to the property (fees from Kennedy
and Graven). Without reviewing the foreclosure documents, Assistant City Attorney Scott Riggs
gave a preliminary indication that the lease would void with the termination in ownership, and that
relocation benefits would likely not be an issue. The following may also be useful:
Land Area: 17,444 s.f.; .4 acres
Building Footprint: 4340 s.f.
2000 Net Tax Capacity: Commercial = $1541
Homestead = $ 760
TOTAL = $2301
Given the above opportunity, staff is requesting the EDA’s authorization to purchase the Sheriff’s
Certificate. For bookkeeping purposes, Associated Bank would ideally like to finalize the transaction
by the end of the year. TIF funds are the proposed source of financing to purchase the certificate.
Necessary Actions:
Consider Resolution 00-EDA-139 Authorizing the Expenditure of TIF Funds to Purchase the
Sheriff’s Certificate for 2345 County Road H2.
______________________________________
Aaron Parrish, Economic Development Coordinator
(763) 717-4029
Attachment #1: Resolution 00-EDA-139
RESOLUTION # 00-EDA-139
MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY
COUNTY OF RAMSEY
STATE OF MINNESOTA
RESOLUTION AUTHORIZING THE EXPENDITURE OF TIF FUNDS TO
PURCHASE THE SHERIFF’S CERTIFICATE FOR 2345 COUNTY ROAD H2.
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 approve and authorize the
expenditure of funds to acquire the Sheriff’s Certificate for 2345 County Road H2
for purposes of future redevelopment.
Section 2. Resolved.
2.01 The Board hereby determines that the Authority’s expenditure of
tax increment funds would be in furtherance of the Project Plan and hereby
approves and authorizes said action.
2.02 That the Board of the Authority hereby determines that the
expenditure of funds 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 utilize a maximum of $71,400 in tax increment funds to purchase the
Sheriff’s Certificate allowing for the possible redevelopment of the property.
EDA Resolution 00-EDA-139
December 11, 2000
Page 2
Adopted by the Board of Commissioners of the Mounds View Economic
Development Authority this 11th day of December, 2000.
___________________________
Dan Coughlin, President
ATTEST:
____________________________
Kathleen Miller, Executive Director