HomeMy WebLinkAboutHRA MINUTES 121019911
CITY OF ST. ANTHONY
HOUSING AND REDEVELOPMENT AUTHORITY
DECEMBER 10, 1991
CALL TO ORDER
The meeting was called to order by Chairperson Ranallo at 8:40
p. M.
2. ROLL CALL
KM
4.
Present: Chairperson Ranallo, Vice Chair Enrooth,
Secretary/ Treasurer Marks, and Commissioners
Fleming and Wagner.
Staff Present: Executive Director Burt and Management
Assistant Urbia
APPROVAL OF DECEMBER 10, 1991 H.R.A. AGENDA
Motion by Fleming, second by Marks to approve the agenda for
the December 10, 1991 H.R.A. meeting as presented and there
were no corrections nor additions.
Motion carried unanimously
APPROVAL OF NOVEMBER 26, 1991 H.R.A. MEETING MINUTES
Motion by Wagner, second by Marks to approve the minutes of
the November 26, 1991 H.R.A. meeting as presented and there
were no corrections.
Motion carried unanimously
5. LANEL TAX INCREMENT REQUEST
LaNel is requesting from the City the infusion of $50,000 per
year of the, excess generated tax increment into the operating
expenses of the Autumn Woods development. This infusion is
necessary to ensure the continuity of operations as well as
protecting the taxpayers from possible default.
A handout, prepared by Springsted Financial Advisors, was
distributed to the Council which addressed the projected
numbers regarding the tax increment district surplus and which
Justified the use of the surplus.
91 H.R.A. MEETING
DECEMBER 10, 1991
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4
5
6 It was noted that the surplus can only be used in the Tax
7 Increment District and the only parcel available for
8 development is the Meta property.
9
10 The initial property tax per unit in the Autumn Woods
11 development was projected to be 61,100 in 1991. The per unit
12 property tax projections were made with 1968 State Legislature
13 property tax class rate classifications. It was noted that
14 since 1988 the Legislature has changed and manipulated this
15 system. The result has been an increase per unit property tax
16 expenses. The extra expense of property tax per unit has
17 placed excessive burdens on the project's operating expenses.
18 It is the concern of LaNel that any additional increases in
19 rent would increase the vacancy rate and bring about a revenue
20 loss.
21
22 The Mayor noted that since the Legislature has made changes in
23 the past it is quite feasible that changes may be made in the
24 future.
25
LaNel has petitioned the Hennepin County Assessor to lower the
valuation of the development. The City Manager noted that this
28 petition is pending but it allows the H.R.A. and staff time to
29 confer with Hennepin County regarding the petition.
30
31 Frank Lange, representing LaNel, advised that the petition is
32 no longer "pending" but has been settled. Hennepin County has
33 responded that the valuation will not be lowered. No
34 litigation will be considered.
35
36 The City Manager recalled that at a previous Council work
37 session it had been decided that the present Council chooses
38 not to commit future Councils to a long term position on this
39 matter. It is the intention of the Council to evaluate this
40 matter on a yearly basis and on need.
41
42 Mr. Lange stated he would prefer this matter be "procedural"
43 and not have to return each year for this entire process. He
44 felt only the review process would be necessary on an annual
45 basis.
46
47 Motion by Marks, second by Enrooth to authorize the City
48 Manager and the City Attorney to draft this proposal as
49 previously defined for the next H.R.A. meeting on January
50 14th.
5
The City Manager noted in his agenda letter that the infusion
5:3 of $50,000 per year for 1991 and 1992 is justified and that
54 there should be an annual review until the bonds and the tax
H. R. A. MEETING
DECEMBER 10, 1991
PAGE 3
increment district are retired.
Mayor Ranallo supported the annual review noting that if the
project goes under the whole future of the bonds could be
dreadful.
It was stated that the guarantee of the infusion of 950,000
per year of excess generated tax increment is not supported by
the City Council.
Motion carried unanimously
6. ADJOURNMENT
Motion by Marks, second by Enrooth to adjourn the H.R.A.
meeting at 9:02 p.m.
Motion carried unanimously
Respectfully submitted,
Jo -Anne Student, H.R.A. Recording Secretary