Loading...
HomeMy WebLinkAbout1997/03/03 - ADMIN - Minutes - Economic Development Authority - Regular3C A N N E D A(fhCITYOF ST. LOUIS PARK MINUTES ECONOMIC DEVELOPMENT AUTHORITY ST. LOUIS PARK, MINNESOTA March 3, 1997 1. Call to order President Jacobs called the meeting to order at 7:20 p.m. 2. Roll call The following Commissioners were present at roll call: Jeff Jacobs, Sue Sanger, Robert Young, Jim Brimeyer, Jeff Jacobs. Beverly Flanagan and Mayor Gail Dorfman. Also present were the Executive Director (Mr. Meyer); Deputy City Manager (Ms. Kutzler); City Attorney (Mr. Steilen); Director of Community Development (Mr. Harmening); Economic Development Coordinator (Mr. Anderson); Finance Director (Ms. McBride); and City Clerk (Ms. Larsen). 3. Approval of minutes of February 18_ 1997 meeting 1 ) There being no corrections or amendments, the minutes were approved as presented. J 4. Approval of agenda for February 18, 1997 meeting It was moved by Commissioner Dorfman, seconded by Commissioner Sanger, to approve the agenda. The motion passed unanimously. 5. Reports - None 6. Old Business a. General Obligation Tax Increment Bond Issue. A resolution supporting the City Council's sale of combination taxable and tax-exempt general obligation tax increment bonds was considered by the EDA. Dave Anderson, Economic Development Coordinator, gave a brief presentation explaining that the Legislature is expected to discuss amendments to Tax Increment Statutes which will affect the City's use of these funds in the future. After further study of the financing structure of the bond issue authorized by Council on February 3rd, staff is recommending a new structure. To establish continuity in light of personnel changes in legal counsel, the resolution includes language naming Briggs and Morgan as bond counsel for this particular bond issue. This bond SC A N N ED ) I issue falls within parameters of amendments made in 1996 to project plans for which the issuance of $45 million in bonds were authorized. He stated that the bond market is favorable at this time and outlined the process used for calculating the size of the bond issue which is a number substantial enough to meet needs for current project financing. He also outlined ramifications of potential LGA HACA penalties associated over the long term which could range from $1.8 to $3 million. Commissioner Dorfman asked how a Legislative approval date prior to issuance of the bonds would affect us. Mr. Anderson replied that it would depend on the effective date named in the legislation. If that date is retroactive it could impair our ability to receive the benefits of a bond issue. Mr. Steilen stated that if the legislation states that tax increment which has not been pledged to support a bond has to be returned and it has a date preceding the sale, we may not be able to proceed. A wide variety of language has been discussed and some would not prevent the sale. Commission Flanagan asked if Council needed to amend a contract with Popham Haik to appoint Briggs and Morgan as bond counsel. Mr. Meyer stated that there was no contract with Popham Haik and that a resolution dated 1990 appoints Popham Haik as bond counsel for all City bonding. This resolution appoints Briggs and Morgan for this particular issue only. Commissioner Flanagan asked how the potential LGA HACA penalty would be financed and if a tax increase would be required. Mr. Anderson stated that the penalty would be imposed each ) year and that other potential sources to offset the penalties exist. J Commissioner Flanagan asked if there was a prospectus and if it included an individual listing of what was intended to be accomplished with the funds and how staff could project what long term costs would be for projects which are not yet finalized. Mr. Anderson stated that Staff has prepared a TIF plan and budget to qualify projects which are being presented at this time. Commissioner Dorfman moved to adopt a resolution supporting the City Council's resolution rescinding Resolution No. 97-9 adopted on February 3, 1997 and providing for the sale ofup to $25,000,000 combination taxable and tax-exempt general obligation tax increment bonds, series 1997. Motion was seconded by Commissioner Sanger. Motion passed 5-1, Commissioner Flanagan opposed. Mr. Brimeyer asked if six votes were required to carry the motion. Mr. Meyer replied that it required a majority. 7. New business - None 8. Communications and bills It was moved by Commissioner Dorfman, seconded by Commissioner Young, to approve the claims and authorize payment. 2 The motion passed unanimously. 9. Adjournment Motion to adjourn was made by Commissioner Dorfman, seconded by Commissioner Sanger. The meeting adjourned at 7:28 p.m. ' ) J 3