06-25-01 - Laserfiche WebLink

Home Browse Search

-ARZEN HILLS MEMORANDUM DATE: June 20, 2001 TO: EDA Commissioners FROM: Joseph Lynch, EDA Executive Director Terrance Post, EDA Secretary/Treasurer P SUBJECT: EDA June 25, 2001, General Discussion Meeting City of Arden Hills Economic Development Authority(EDA) staff has invited a representative of the City's independent financial advisor, Ehlers &Associates, Inc., to address the Commission on two matters. Business Subsidy Criteria The City of Arden Hills currently has two active Development Agreements in place. One is for the Cottage Villas low to moderate income senior apartment housing(TIF District No. 3). The other is for the Welsh Office/Warehouse buildout(TIF District No. 2). Both of these agreements were entered into prior to the adoption of the 1999 legislative business subsidy regulations. Ehlers has provided three sets of information to assist the Commission in discussion of this subject. Exhibit A provides an overview of statutory business subsidy criteria. Exhibit B ("City of Anywhere"),provides a rather simple set of criteria. Exhibit C ("City of?"),provides a more detailed set of criteria. With preliminary overview discussions having taken place with two potential developers (Chesapeake and Mills), staff cannot proceed forward with these, or any other developers, until the EDA has adopted a set of business subsidy criteria. 2001 Legislative Session Although the session has not been concluded as of the date of this writing, some of the business property tax changes being contemplated may have a significant impact on City of Arden Hills finances. Of particular concern is the continued ability to service G.O. Bond debt in the future exclusively from tax increment. Ehlers has been counseling their municipal clients on how to assess the impact of the various property tax scenarios presently before the legislature.