HomeMy WebLinkAbout2017/12/18 - ADMIN - Minutes - Economic Development Authority - RegularIOfSt. Louis Park OFFICIAL MINUTES
M I N N E S 0 T A ECONOMIC DEVELOPMENT AUTHORITY
ST. LOUIS PARK, MINNESOTA
DECEMBER 18, 2017
1. Call to Order
President Mavity called the meeting to order at 7:20 p.m.
Commissioners present: President Anne Mavity, Tim Brausen, Steve Hallfin, Gregg Lindberg,
Thom Miller, Susan Sanger, and Jake Spano.
Commissioners absent: None.
Staff present: Executive Director (Mr. Harmening), Inspections Director (Mr, Hoffman),
Economic Development Coordinator (Mr. Hunt), Community Development Director (Ms.
Barton), Operations and Recreation (Ms. Walsh), City Attorney (Mr. Mattick), Engineering
Director (Ms. Heiser), CFO (Mr. Simon), and Recording Secretary (Ms. Pappas).
2. Roll Call
3. Approval of Minutes
3a. Economic Development Authority Meeting Minutes December 4, 2017
It was moved by Commissioner Lindberg, seconded by Commissioner Spano, to approve
the EDA minutes as presented.
The motion passed 7-0.
4. Approval of Agenda
It was moved by Commissioner HalUiin, seconded by Commissioner Miller, to approve
the EDA agenda as presented.
...................
The motion passed 7-0.
5. Reports — None
6. Old Business — None
7. New Business
7a. 2018 Final HRA Levy Certification and Budget Adoption. EDA Resolution
No. 17-24
Mr. Simon presented the staff report. He explained that the HRA levy was originally
implemented in St. Louis Park due to legislative changes in 2001, which reduced future
tax increment revenues. The council elected at that time to use the levy proceeds for
future infrastructure improvements in redevelopment areas. By law, these funds could
also be used for other housing and redevelopment purposes. Currently the funds are being
used to repay an interfund loan.
Economic Development Authority -2- December 18, 2017
Mr. Simon stated that the levy cannot exceed 0.0185% of the estimated market value of
the city. He added that the EDA is allowed to authorize the HRA levy and then forward it
to the council for action.
President Mavity asked if the uses of this levy differ from the 2018 budget levy. Mr.
Simon answered that the HRA levy is specifically for housing and redevelopment
Purposes.
It was moved by Commissioner Sanger, seconded by Commissioner Lindberg, to waive
the reading and adopt EDA Resolution No. 17-24, to adopt EDA resolution authorizing
the proposed levy of a special benefit levy pursuant to Minnesota Statutes Section
469.033, Subdivision 6, and approval of the 2018 Proposed HRA Levy and Budget for
fiscal year 2018.
The motion passed 7-0.
7b. Second Amendment to Purchase and Redevelopment Contract with PLACE
E -Generation One, LLC. EDA Resolution No. 1725
Mr. Hunt presented the staff report. He noted that the need for a second amendment to the
PLACE Purchase and Redevelopment Contract was discussed at the December 11 study
session. The proposed Second Amendment allows PLACE to utilize an alternative plan
for financing the project's 200 affordable units in the event it becomes necessary. That
alternative financing plan retains the same number of affordable units as originally set
forth in the Contract but adjusts the affordability of those units from all at 60% of Area
Median Income (AMI) to 10% of the affordable units at 50% AMI and the remaining
90% of the affordable units at 80% AMI.
He further stated that the proposed amendment establishes a new closing date for
PLACE's purchase of the North Parcels from the EDA which is now scheduled to occur
on or before April 30, 2018 --- which is also the same closing date for the South Parcels.
President Mavity stated that it is her understanding this proposed amendment is closely
related to the current federal tax reform legislation and would impact pricing. She stated
that she is hopeful the impact will be minimal, and they would not have to lose all the
housing affordability proposed.
Commissioner Brausen stated that he supports this alternate plan and appreciates that the
developer has looked for additional funding in case the tax law does change. He added
that this still preserves the 200 affordable units; however some may become more
expensive. He added that the project has stayed on course, and he thanked the developer
for being proactive and forward thinking during this rapidly developing situation in
Washington, DC.
Commissioner Miller agreed with his fellow commissioners and noted that in answer to
several emails he received from residents, it is not the case that PLACE initiated the
alternate plan in order to get out of the project. This is a reaction to the fact that the bonds
and tax credits may not be available. He is happy that the developer will be able to keep
the same number of affordable units, and he appreciates the effort put forth.
Economic Development Authority -3- December 18, 2017
Commissioner Sanger noted that she is still critical of this project; however, she does not
fault. PLACE for the current problems which are the direct result of the current
administration in Washington. She added that she fears these possibilities will add to the
shakiness of the project, and therefore she will not support it.
It was moved by Commissioner Brausen, seconded by Commissioner Lindberg, to waive
the reading and adopt EDA Resolution No. 17-25, the Second Amendment to the
Purchase and Redevelopment Contract between the EDA and PLACE E -Generation One,
LLC.
The motion passed 6-1. (Councilmember Sanger opposed).
8. Communications -- None
9. Adjournment
The meeting adjourned at 7:30 p.m.
Melissa enned ,Secretary 0
Anne Mavity, President