HomeMy WebLinkAbout2015/06/01 - ADMIN - Minutes - Economic Development Authority - RegularfIfSt. Louis Park OFFICIAL MINUTES
M I N N E S 0 T A ECONOMIC DEVELOPMENT AUTHORITY
ST. LOUIS PARK, MINNESOTA
JUNE 1, 2015
1. Call to Order
President Mavity called the meeting to order at 7:28 p.m.
Commissioners present: President Anne Mavity, Tim Brausen, Steve Hallfin, Jeff Jacobs, Gregg
Lindberg, Susan Sanger, and Jake Spano.
Commissioners absent: None.
Staff present: Executive Director (Mr. Harmening), Economic Development Coordinator (Mr.
Hunt), and Recording Secretary (Ms. Hughes).
2. Roll Call
3. Approval of Minutes
3a. Economic Development Authority Meeting Minutes May 18, 2015
The minutes were approved as presented.
4. Approval of Agenda
The agenda was approved as presented.
S. Reports - None
6. Old Business - None
7. New Business
7a. Issuance of TIF Revenue Note to Ellipse II LLC -- e2 Project. Resolution No.
15-11.
Mr. Hunt presented the staff report and explained that the Purchase and Redevelopment
Contract between the EDA and Ellipse II LLC required that a TIF Note be issued when
the Redeveloper had certified the public redevelopment costs incurred in connection with
the e2 project. He advised that staff reviewed those costs and verified that the
Redeveloper had incurred more than sufficient redevelopment costs to warrant the
issuance of a $700,000 TIF Note. He stated the Redevelopment Contract also included a
look -back provision upon reaching 95% occupancy, which was achieved last year. He
stated that staff reviewed cash flow information and determined that the Internal Rate of
Return exceeded the percentage projected in the Contract by .95%, therefore, the
principal amount of the proposed TIF Note was reduced by $13,805 to $686,195. He
advised that due to higher than anticipated property valuations for the project, the TIF
Note should be paid off in 7.5 years rather than the projected term of 19 years. He stated
that the TIF Note would be pay-as-you-go and would bear interest at a rate of 5.60/0 with
a term of approximately eight years. The Redeveloper previously signed a Minimum
Economic Development Authority -2-
June 1, 2015
Assessment Agreement to secure the TIF Note indicating that the minimum market value
of the project was $6.4 million on January 2, 2014, and the property's current assessed
value is approximately $10.5 million. He concluded that the Redeveloper had met the
required conditions under the Contract for the issuance of the Note, and the Note had
been properly sized, therefore staff recommended adoption of the proposed resolution
authorizing the issuance of the TIF Note to Ellipse I1 LLC as presented.
It was moved by Commissioner Brausen, seconded by Commissioner Hall fln, to adopt
Resolution No. 15-11 Awarding the Sale of, and Providing the Form, Terms, Covenants
and Directions for the Issuance of its Tax Increment Revenue Note to Ellipse II LLC.
The motion passed 7-0.
Communications - None
8. Adjournment
President Mavity adjourned the eeting at 7:33 p.m.
Secre ary �' ;President