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_,Housing and Redevelopment Authority Meeting Minutes June 24, 2003 Page 2 1 "tired properties" would generate considerable tax revenue for the City. She added that Autumn 2 Woods was already a part of the community; therefore, the City knew they were an enhancement 3 to the neighborhood. 5 Chair Hodson invited residents to come forward at this time to address the HRA regarding this item. No one came forward 8 Chair Hodson stated that the City was fortunate to have had a previous HRA acquire this 9 property. He added that this needed to be happening continually in the redeveloping of Saint 10 Anthony Village to bring it back to being a competitive city. 11 12 13 14 15 16 17 18 19 LJ 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 Commissioner Faust stated that in 1996 there were five properties that gave the City large amounts of trouble, and the City had been able to obtain those properties. He felt this was quintessential economic development by a local unit of government. He stated that taxes should be affected for only three years; and it epitomized good planning, a bit of luck and willingness to "bite the bullet" when needed. He, too, indicated pride in the previous Council. Chair Hodson closed the public hearing at 8:07 p.m. Motion by Commissioner Faust to adopt H.R.A. Resolution 03-014, approving the sale of properties located on Kenzie Terrace owned by the St. Anthony Village HRA. Motion carried unanimously. IV. GENERAL POLICY BUSINESS OF THE H.R.A. A. H.R.A. Resolution 03-013. re: Decertification of Kenzie Terrace Tax Increment District. It was recommended by Ehlers and Associates that the City of St. Anthony take action to decertify the Kenzie Terrace Tax Increment Finance District for the following reasons: 1. The bonds issued to finance the redevelopment would be callable February 1, 2004, and the City had adequate cash to pay the outstanding debt. Therefore, all debt associated with the City Hall/Community Center Building would be retired. In addition, by calling the bonds, interest expense of $235,315 would be saved. 2. Under the current law, other than for the City Hall/Community Center Bonds, the increment from the District could not be used for other purposes outside of the TIF District boundaries. 3. Decertifying the District would place the property back on the City's tax roles. This would provide a significant increase to the City's tax capacity, and the City's expenses would be spread across a larger tax base. Therefore, the tax burden would decrease, and the impact of future debt would not be as significant. 4. Decertification of Kenzie reduced the tax impact of the costs associated with the building of the new Public Works and Fire Station buildings.