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HomeMy WebLinkAbout2021/04/05 - ADMIN - Minutes - Economic Development Authority - Regular Official minutes EDA meeting St. Louis Park, Minnesota April 5, 2021 1. Call to order President Brausen called the meeting to order at 6:20 p.m. 2. Roll call Commissioners present: President Brausen, Lynette Dumalag, Rachel Harris, Larry Kraft, Nadia Mohamed, Margaret Rog, and Jake Spano Commissioners absent: None Staff present: Executive Director (Mr. Harmening), Economic Development Coordinator (Mr. Hunt), Community Development Director (Ms. Barton), City Attorney (Mr. Mattick), Planning and Zoning supervisor (Mr. Walther), Communications Manager (Ms. Smith), Senior Management Analyst (Ms. Solano), and Recording Secretary (Ms. Pappas) 3. Approval of minutes 3a. EDA meeting minutes of March 1, 2021 It was moved by Commissioner Kraft, seconded by Commissioner Spano, to approve the March 1, 2021 EDA meeting minutes as presented. The motion passed 7-0. 3a. EDA meeting minutes of March 15, 2021 It was moved by Commissioner Rog, seconded by Commissioner Mohamed, to approve the May 15, 2021 EDA meeting minutes as presented. The motion passed 7-0. 4. Approval of agenda and items on EDA consent calendar 4a. Accept for filing EDA disbursement claims for the period of Feb. 20 – March 26, 2021. 4b. Adopt EDA Resolution No. 21-05 authorizing bank signatories for the EDA. It was moved by Commissioner Spano, seconded by Commissioner Dumalag, to approve the consent calendar as presented. The motion passed 7-0. DocuSign Envelope ID: 4F397AE4-255D-4F36-A6B0-4C278845F613 Economic Development Authority -2- April 5, 2021 5. Reports - none 6. Old business - none 7. New business 7a. Establishment of Texa Tonka Tax increment financing district. EDA Resolution No. 21-06. EDA Resolution No. 21-07. Mr. Hunt presented the report. Commissioner Harris asked if there is any benefit to the city to have shorter terms on tax increment financing (TIF) districts. Mr. Hunt stated the sooner a project’s TIF Note is paid off, the sooner the full value of the project can be added to the tax rolls but noted a TIF district can be held open longer and a portion of the tax increment can be used for affordable housing projects. Commissioner Harris noted this project has been discussed for quite a long time and she is supportive of the establishment of the TIF district. She continued Paster Properties has been a good partner and she is eager to see how this unfolds, noting they are invested in the community especially at this intersection of Minnetonka and Texas – which is the true West End of the city. President Brausen asked if the TIF note will be paid off after 12 years, and if the council can continue to make that decision each year, while the city is not obligated to keep it open the full 26 years. Ms. Barton stated that is correct. Commissioner Rog stated she likes this project and the development but will oppose the establishment of a TIF district and the development contract because of her ongoing concerns with TIF. She reiterated she is not opposed to the project but has concerns about how much of the city’s tax base is wrapped up in TIF districts. She stated TIF is something everyone is playing a role in and everyone is playing their parts. She added the developers are requesting, staff is making their analysis and the council approves . She stated she has lingering concerns about how much of the city’s tax base is wrapped up in this system for private developers and whether there is a better system to use public funds for maximum public benefit. She noted the $2.6 million buys 20 units at 50% AMI. Commissioner Rog stated there will be studio and 1-bedroom units, as well as 2- bedroom units, but this will not be sufficient for families that need 3-bedroom units. She is not convinced this is the best way to invest tax dollars; therefore, she will oppose this and hopes the council will dive deeper into the TIF issue and how to reach ROI and goals with TIF. DocuSign Envelope ID: 4F397AE4-255D-4F36-A6B0-4C278845F613 Economic Development Authority -3- April 5, 2021 Commissioner Kraft added he appreciated Commissioner Rog’s stance on this , adding he has also been thinking a lot about TIF and has some discomfort with it, although he will support this project. He acknowledged it is good to see a project proposed for this space and it is a thoughtful development, especially with its green features. He stated he appreciates the developers’ ties to St. Louis Park as well. Commissioner Kraft stated he does question the but-for clause, adding he would also like to discuss TIF further with council at a later date. Commissioner Harris stated she was skeptical about TIF when she first joined council, but then saw it was a good value for city resources and a good investment, while TIF funds could be put towards affordable housing. President Brausen agreed and stated the city would not have this money unless the development occurs. Commissioner Spano stated he assumed this would be a unanimous vote, adding TIF is a strategy that has resulted in the redevelopment of St. Louis Park, which would not have happened if not for TIF. He added the city had zero affordable housing units before TIF, and while it is not perfect, it is a tool that works and an investment strategy helping to develop a first-tier suburb. He stated he will support this. Commissioner Dumalag stated she will also support the TIF, but added she appreciates Commissioner Rog’s pause on how the city uses TIF. She stated she will support it to redevelop a part of our city that has been left out, adding Paster Properties will participate via TIF and this is a way to obtain affordable housing. Commissioner Mohamed added she will also support this but did agree with Commissioner Rog’s comments about units and bedrooms, noting more space is needed for families. She added, however, because this is a Texa Tonka project she will support it, as that part of the city needs this development. President Brausen stated he will also support the establishment of the Texa Tonka TIF district. It was moved by Commissioner Harris, seconded by Commissioner Mohamed, to adopt EDA Resolution No. 21-06, approving establishment of the Texa Tonka Tax Increment Financing District; and, to adopt EDA Resolution No. 21-07, authorizing an interfund loan for advance of certain costs in connection with the administration of the Texa Tonka TIF District. The motion passed 6-1 (Commissioner Rog opposed). DocuSign Envelope ID: 4F397AE4-255D-4F36-A6B0-4C278845F613 Economic Development Authority -4- April 5, 2021 7b. Redevelopment contract with Paster Development – Texa Tonka Apartments EDA Resolution No. 21-08 Commissioner Rog stated she will oppose this; however, not because she is opposed to the project. She stated this is a conversation she has been wanting to have for a while, and there needs to be a pause to clarify if the city wants to continue with this. It was moved by Commissioner Harris, seconded by Commissioner Spano, to adopt EDA Resolution No. 21-08, approving the redevelopment contract between the EDA and Paster Development. The motion passed 6-1 (Commissioner Rog opposed). 8. Communications – none 9. Adjournment The meeting adjourned at 6:56 p.m. ______________________________________ ______________________________________ Melissa Kennedy, secretary Tim Brausen, president DocuSign Envelope ID: 4F397AE4-255D-4F36-A6B0-4C278845F613