HomeMy WebLinkAboutHRA MINUTES 06242003CITY OF ST. ANTHONY
46 HOUSING AND REDEVELOPMENT AUTHORITY MEETING
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5 JUNE 24, 2003
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7 CALL TO ORDER.
8 Chair Hodson called the meeting to order at 8:00 p.m.
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10 ROLL CALL.
11 Commissioners present: Chair Hodson; Commissioners Sparks, Thuesen, Horst, and Faust.
12 Commissioners absent: None.
13 Also present: Executive Director Michael Morrison and City Attorney Jerome
14 Gilligan.
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17 I. APPROVAL OF JUNE 24, 2003, H.R.A. AGENDA.
18 Motion by Commissioner Faust to approve the June 24, 2003, Housing and Redevelopment
19 Authority Agenda as presented.
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21 Motion carried unanimously.
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23 11. CONSENT AGENDA.
16 Motion by Commissioner Sparks to approve the Consent Agenda, which consisted of:
26 A. H.R.A. Meeting Minutes of May 28. 2003: and
27 B. Claims.
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29 Motion carried unanimously.
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31 111. PUBLIC HEARINGS
32 A. H.R.A. Resolution 03-014, re: Approval of the sale of properties located on Kenzie
33 Terrace owned by the St. Anthony Village HRA.
34 Chair Hodson opened the public hearing at 8:01 p.m.
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36 Stacie Kvilvang, Ehlers and Associates, stated that the St. Anthony Housing and Redevelopment
37 Authority desired to sell the H.R.A-owned properties located on Kenzie Terrace for
38 redevelopment purposes. Requests for proposals were sent out and two proposals were received.
39 Following review of the proposals, the H.R.A. approved LaNel Financial's development concept
40 for said 1.06 -acre site to construct 38 rental units. The City's financial advisors recommended
41 the H.R.A. sell said lots as proposed at a purchase price of $285,000, based upon conditions as
42 set forth in the Agreement. This action would allow the closing for the property to commence by
43 August 15, 2003, with construction slated to begin on September 1, 2003.
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45 Ms. Kvilvang displayed a chart of properties purchased by the HRA from 1996 to 1999. She
40 stated that the collective costs for acquisition, demolition, relocation and other soft costs equaled
$444,000. She indicated that the new development, property evaluation and taxes generated
48 would help the City recapture those costs in approximately 7.5 years. She felt that redeveloping
_,Housing and Redevelopment Authority Meeting Minutes
June 24, 2003
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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.
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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.
Housing and Redevelopment Authority Meeting Minutes
June 24, 2003
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1 City Attorney Gilligan noted that the District had been established by the HRA; therefore, the
2 HRA also needed to approve decertification. Mr. Gilligan recommended that the HRA adopt the
3 resolution.
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5 Motion by Commissioner Sparks to adopt H.R.A. Resolution 03-013, approving decertification
6 of Kenzie Terrace Tax Increment District.
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8 Motion carried unanimously.
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10 IV. STAFF REPORTS.
ll None.
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13 V. H.R.A. COMMISSIONER COMMENTS.
14 None.
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16 V1. INFORMATION AND ANNOUNCEMENTS.
17 None.
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19 VII. ADJOURNMENT.
0 Chair Hodson adjourned the meeting at 8:10 p.m.
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23 Respectfully submitted,
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25 Marjorie R. Jenkins
26 TimeSaver Off Site Secretarial, Inc.
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