HomeMy WebLinkAbout1996/04/01 - ADMIN - Minutes - Economic Development Authority - Regular3 C AN N E D
M IN U T ES
E C O N O M IC D EV E L O P M E N T A U T H O RI TY
ST . L O U IS PA RK , M IN N E SO T A
April 1, 1996
1. C all to order
V ice-presid ent Ja cobs called the m eeting to order at 7:00 p.m .
2. R oll call
T he fo llow ing C ommi ssioners w ere present at ro ll call: Sue Sanger, Robert Young, Jim Brim eyer
and G ail D o rfm an. R on L atz arr ived at 7:14 p.m .
Al so present w ere the D eputy C ity M an ager (M s. K utzler); ED A attorn ey (M r. Steilen);
E co nom ic D evelopm ent D irector (Mr . An derson); C omm uni ty D evelopm ent Director (M r.
H arm eni ng) and Fire C hi ef (Mr . G ill).
3. A ppro val of m inutes
T here being no am endm ents or corr ections to the mi nutes, they w ere appro ved as presented.
4. A pp ro val of agenda
It w as m ov ed by C ommi ssioner D orfin an , seconded by C ommi ssioner Sanger, to appro ve the
agenda fo r A pril 1, 1996. The m otion passed 5-0.
5. R eport s
a. V ictoria Ponds Tow nhom e pro posal
R esolution ED A -96-03
Mr . An derson gave a brief presentation on thi s pro posal . H e noted there w as a change to the
resolution w hich w ould be incorporated into the offi cial resolution. M odifications to the site plan
incl uded : reduction in num ber fr om 74 to 73 tow nhom es; the south east/w est street w idth will be
increased fr om 20 ft . to 24 ft .; the curr ent dead-end drive wi dth w ill be increased from 20 ft. to 22
ft .; and sprinklers w ill be installed in eight units w here previously only fo ur w ere to be sprinkl ed.
C o m m issioner Y oung noted the recomm endation in w hich it is pro posed fu nding of the local
contribu tio n out of the C ity's developm ent fu nd ra ther than taki ng a penalty on LG A/HA C A.
M r. An derson said staff is recom m ending m aki ng a contribution to the project w hi ch is 7 1/2% of
the gro ss tax increm ent collected ann ually, in thi s instance $86,000. In this district the
L G A/HA C A penalty w ould be a loss to the C ity.
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E D A m in u t e s
A p r il 1 , 1 9 9 6
C o m m is s io n e r Y o u n g a s k e d if th e L e g is la tu r e w e r e t o d is c o n tin u e L G A/H A C A, a s s e e m s to b e
t h r e a t e n e d e v e ry y e a r , w o u ld th is d e c is io n to m a k e a c o n t r ib u tio n b e w is e .
Mr. Anderson said in this case the option staff has is to analyze the situation from a present value
standpoint.
Commissioner Sanger asked in cutting back from 74 to 73 units and with the apparent reduction
in market value of the remaining units, how does this impact on the developer's ability to repay
the City the obligations he will be undertaking. Is there any chance the City will not get full
repayment.
Mr. Anderson said the TIF cash flows have been recalculated based on lower valued units. In the
15-year span, the amount of time used for calculation, it has been determined the City can capture
enough tax increment revenue to pay the $760,000, leaving additional revenues of approximately
$104,000 to the District for additional public improvements. In answer to the question what if all
the units do not sell, Mr. Anderson responded since this is a pay-as-you-go TIF deal, the
developer is reimbursed only of increments the City receives.
Commissioner Brimeyer recalled the Authority discussing how much would be available for public
improvements in the rest of the District which was in the hundreds of thousands. Now it seemed
there was not much of a return anticipated.
Mr. Anderson said higher values on the homes had been used in the calculations. That has
readjusted significantly for two reasons: amount of incremenet because of reduced values will be
less; secondly, the $100,000 is anticipated over 15 years. If continued beyond 15 years, additional
revenue will be captured.
Mr. Harmening noted that properties are assessed for property taxes purposes at 90-95% of
actual market value which reduce the increment as well.
Commissioner Brimeyer felt this project should be treated as a 15-year project, get it done, do the
local contribution, view it as a worthwhile project but not a real money generator.
It was moved by Commissioner Latz, seconded by Commissioner Young, to adopt Resolution
Eda 96-03, as amended. The motion passed 6-0.
5b. Call for special EDA meeting April 15, 1996
It was moved by Commissioner Latz, seconded by Commissioner Brimeyer, to set said meeting.
The motion passed 6-0.
6. Unfinished business None
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E D A m inutes
A pril 1, 1996
7, N ew bu siness N one
8. C o m m unications and bills
a. 4820 E xcelsior B lvd. - Febru ary 1996 financial statem ent
It w as m oved by C om m issioner D orfin an, seconded by C om m issioner B rim eyer, to appro ve and
receive fo r fil ing. T he m otion passed 6-0.
b. V endor cl aim s
It w as m ov ed by C om m issioner Y oung, seconded by C ommi ssioner Sanger, to appro ve and
authori ze paym ents. The m otion passed 6-0.
9 . A djourn m ent
The m eeting adjo urn ed at 7: 18 p.m . on a m otion by C ommi ssioner Latz, seconded by
C o mmi ssioner Sanger w hi ch passed 6-0.
.,res.l
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