HomeMy WebLinkAbout09-12-2022 EDACITY OF MOUNDS VIEW
ECONOMIC DEVELOPMENT AUTHORITY MEETING AGENDA
MOUNDS VIEW CITY HALL
Monday, September 12, 2022
6:30 p.m.
1.CALL TO ORDER
2.ROLL CALL: President Mueller, Vice President Cermak, Commissioner Hull,
Commissioner Meehlhause, Commissioner Bergeron
3.APPROVAL OF AGENDA
4.CONSENT AGENDA
A.Approval of Minutes:August 22, 2022
5.PUBLIC COMMENT
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.
6.EDA BUSINESS
A.Resolution 22-EDA-359 Approving the Preliminary EDA Property Tax Levy Request
and Budget for Fiscal Year 2023
7.REPORTS
A.None
8.NEXT EDA MEETING: September 26, 2022 at 6:30 p.m., Mounds View City Hall
9. ADJOURNMENT
PROCEEDINGS OF THE MOUNDS VIEW EDA 1
CITY OF MOUNDS VIEW 2
RAMSEY COUNTY, MINNESOTA 3
4
Regular Meeting 5
August 22, 2022 6
Mounds View City Hall 7
2401 Mounds View Boulevard, Mounds View, MN 55112 8
9
10
1. CALL MEETING TO ORDER 11
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President Mueller called the meeting to order at 6:42 p.m. 13
14
2. ROLL CALL: President Mueller, Vice President Cermak, Commissioner Bergeron 15
(attending remotely), Commissioner Hull, Commissioner Meehlhause, and Executive 16
Director Zikmund. 17
18
NOT PRESENT: None. 19
20
3. APPROVAL OF AGENDA 21
22
MOTION/SECOND: Meehlhause/Hull. To Approve the August 22, 2022, Agenda as presented. 23
24
A roll call vote was taken. 25
26
Ayes – 5 Nays – 0 Motion carried. 27
28
4. CONSENT AGENDA 29
30
A. May 23, 2022, EDA Minutes. 31
32
MOTION/SECOND: Hull/Cermak. To Approve the Consent Agenda as presented. 33
34
A roll call vote was taken. 35
36
Ayes – 5 Nays – 0 Motion carried. 37
38
5. PUBLIC COMMENT 39
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None. 41
42
6. EDA BUSINESS 43
44
A. Reuter Walton Developer Presentation. 45
46
Mounds View EDA August 22, 2022
Regular Meeting Page 2
Assistant City Administrator Beeman stated Jared Ackmann with Reuter Walton Development had 1
a presentation for the EDA. 2
3
Jared Ackmann, Reuter Walton Development, explained he was proposing to construct 130 units 4
workforce housing and 130 units of market rate housing southeast of the Bel Rae building on a 5.5 5
acre parcel. Further discussion ensued regarding the fact he now had land under contract for this 6
project. The two phases of the project were described and it was noted both buildings would be 7
four stories high. He explained he would be pursuing low income housing tax credits and TIF to 8
assist with the financing of these projects. In addition, he would also be pursuing conduit bonds 9
for this project. He commented on other projects he had completed in the metro area noting his 10
company has been around for the past 17 years. The amenities that would be included within the 11
buildings was further discussed along with the proposed unit mix. He reported there was a housing 12
shortage for both market rate and workforce housing in the metro area. 13
14
Paul Keenan, Vice President of Development for Reuter Walton Development, stated many 15
developers have been pursuing this land. He commented on how he would continue to work to 16
assemble all of the lots for the market rate project. 17
18
Commissioner Hull asked who would manage the properties. Mr. Keenan reported Michaels 19
would manage both buildings. 20
21
Commissioner Meehlhause questioned who would be the architect for this project. Mr. Keenan 22
stated Caswell would be the architect for this project, which was the same architect used for the 23
Bel Rae building. 24
25
Commissioner Meehlhause requested further information on the proposed rents. Mr. Ackmann 26
discussed the proposed rental rates for the workforce and market rate apartments. 27
28
Further discussion ensued regarding the conduit bond financing. 29
30
President Mueller requested further information as to how the affordable units would be broken 31
down within the workforce housing building. Mr. Ackmann explained 10% of the units (13 units) 32
would be set aside for 30% AMI and the remainder would be at 60% AMI. 33
34
President Mueller questioned how many underground parking spaces there would be. Mr. 35
Ackmann stated the plans currently show 125 underground parking spaces. He noted he would not 36
be charging for the underground parking spaces. 37
38
Mr. Keenan commented on how he would be working to gain control of the three remaining parcels 39
for the market rate development. 40
41
President Mueller questioned what the length of the TIF term would be for a project like this. 42
Assistant City Administrator Beeman stated the TIF term could be up to 26 years for this type of 43
project. 44
Mounds View EDA August 22, 2022
Regular Meeting Page 3
1
President Mueller questioned what the value of Phase 1 would be upon completion. Mr. Keenan 2
estimated this to be $26 million for the 130 units of workforce housing. 3
4
President Mueller stated she was pleased to see the developer would be working with a local 5
management company (Michaels) for the two apartment buildings. Mr. Keenan clarified that 6
Michaels was based out of New Jersey but had employees working locally to manage his buildings. 7
8
President Mueller asked what the EDA’s next steps should be. Assistant City Administrator 9
Beeman requested the EDA make a motion to offer support of the overall project, support for the 10
conduit bonds and support for the housing TIF. 11
12
President Mueller inquired if the proposed project was the highest and best use for this 5.5 acres 13
in Mounds View. Assistant City Administrator Beeman reported this location does not make sense 14
for an industrial or retail use. He explained there was a demand for market rate and workforce 15
housing. For this reason, he believed the highest and best use for this property was the proposed 16
project. 17
18
Commissioner Meehlhause requested further information regarding the average median income 19
(AMI) in Mounds View. Mr. Keenan reported AMI’s were calculated every year in April by 20
Ramsey County. He stated he did not have the Mounds View statistics in front of him. 21
22
President Mueller questioned if Ramsey County would work with the City to provide this property 23
access to Mounds View Boulevard. Assistant City Administrator Beeman explained this project 24
would not access Mounds View Boulevard, but rather would have access from Woodale Drive. He 25
reported if Phase 2 of this project were to not move forward he stated a daycare could be considered 26
for the corner lot, which the developers stated they would sell to the City for $ 1.00. 27
28
MOTION/SECOND: Meehlhause/Cermak. To Support the Reuter Walton Development Project 29
Moving Forward with Housing TIF and Conduit Bond Financing. 30
31
A roll call vote was taken. 32
33
Ayes – 3 Nay – 2 (Hull & Mueller) Motion carried. 34
35
7. REPORTS 36
37
None. 38
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8. NEXT EDA MEETING: Monday, September 12, 2022 at 6:30 p.m. 40
41
42
Mounds View EDA August 22, 2022
Regular Meeting Page 4
9. ADJOURNMENT 1
2
President Mueller adjourned the meeting at 7:33 p.m. 3
4
Respectfully submitted, 5
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Recorded and transcribed by: 8
Heidi Guenther 9
Minute Maker Secretarial 10
486853v2 AMB MU205-13
Item No: 6.A.
Meeting Date: September 12, 2022
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 22-EDA-359 Approving the Preliminary EDA Property
Tax Levy Request and Budget for Fiscal Year 2023
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 tax
increment 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 EDA proposes to continue a levy of
$100,000 for 2023. The City’s EDA is requesting that the City Council levy on behalf of the EDA
$100,000 to support the above activities within the City of Mounds View. 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 $254,567 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 5, 2022 at 6pm at City Hall. The final levy will be adopted on or
about December 12, 2022.
Respectfully submitted,
___________________________
Mark Beer, Finance Director
486853v2 AMB MU205-13
RESOLUTION NO. 22-EDA-359
MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY
COUNTY OF RAMSEY
STATE OF MINNESOTA
APPROVING THE PRELIMINARY EDA PROPERTY TAX LEVY REQUEST AND BUDGET
FOR FISCAL YEAR 2023
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 2023 a special benefit tax not to
exceed $100,000, which amount will be included in the City’s proposed levy and the proposed
EDA budget of $254,567 is adopted.
Adopted this 12th Day of September 2022.
______________________________
Carol A. Mueller, EDA President
(ATTEST)
______________________________
Nyle Zikmund, Executive Director
(SEAL)
8/15/2022 3:41 PM
Y-T-D
2019 2020 2021 2022 09/30/2022 2023 Change from 2022
Actual Actual Actual Budget Actual Request Dollar Percent
EDA (Fund 230):
Revenues
3101 Tax collections 93,170 100,774 99,973 100,000 - 100,000 - 0.00%
3464 Development fee - nonrefundable - - 1,500 - - - - 0.00%
3610 Investment income - - - - - - - 0.00%
3615 Interest received on notes 309 45 239 - - - - 0.00%
3680 Other revenue 1,654 - - - - - - 0.00%
3972 Transfers 135,563 839,036 146,679 149,633 - 149,633 - 0.00%
Total revenue 230,696 939,855 248,391 249,633 - 249,633 - 0.00%
Operating expenses
Housing and Economic Development (4650):
Personnel services
0100 Salaries, regular 91,694 114,465 117,010 119,753 - 123,765 4,012 3.35%
0150 Salaries, part-time 12,719 - - - - - - 0.00%
0300 Social security 6,884 7,694 8,173 9,161 - 9,468 307 3.35%
0321 PERA 7,676 8,560 8,535 8,981 - 9,283 302 3.36%
0400 Group insurance 14,249 14,616 14,866 17,426 - 17,808 382 2.19%
0500 Workers compensation 569 666 611 847 - 1,124 277 32.70%
Total personnel services 133,791 146,001 149,195 156,168 - 161,448 5,280 3.38%
Materials & supplies
1600 Supplies, operating - 751 - 200 - 200 - 0.00%
2100 Book & periodicals - - - 150 - 150 - 0.00%
Total materials & supplies - 751 - 350 - 350 - 0.00%
Contractual services
3030 Other professional services 33,461 30,563 22,709 32,472 - 32,508 36 0.11%
3100 Telephone 550 600 600 600 - 600 - 0.00%
3420 Advertisements 780 - - 1,500 - 1,500 - 0.00%
3430 Printing - - - 500 - 500 - 0.00%
3610 Memberships 940 110 295 950 - 950 - 0.00%
3630 Training & conferences 2,647 351 525 3,490 - 3,490 - 0.00%
3800 Mileage 1,790 247 970 350 - 350 - 0.00%
4750 Real estate taxes 19,993 - - - - - - 0.00%
4800 Insurance 475 754 519 649 - 649 - 0.00%
5210 Housing improvement 2,570 1,524 2,455 22,222 - 22,222 - 0.00%
Total contractual services 63,206 34,149 28,073 62,733 - 62,769 36 0.06%
Capital outlays
9300 Business subsidies - - 5,000 30,000 - 30,000 - 0.00%
Total expenditures 196,997 180,901 182,268 249,251 - 254,567 5,316 2.13%
Net change in fund balance 33,699 758,954 66,123 382 - (4,934) (5,316) -1391.62%
Fund balance, beginning year 444,835 478,534 1,237,488 1,303,611 1,303,611 1,303,993 382 0.03%
Adj for land held for resale
Fund balance, end of year 478,534 1,237,488 1,303,611 1,303,993 1,303,611 1,299,059 (4,934) -0.38%
2023 Budget Summary