HomeMy WebLinkAbout2A, Economic Development Authority i
,ARPEN HILLS
Request for Council Action 2A
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Prepared By: Patrick Klaers, City Administrator ! Work Session Date: February 21,2012
Economic Development Authority (EDA)
Budgeted Amount: Actual Amount: Funding Source:
N/A N/A N/A
Discussion Topic:
Discussion on whether the City needs an Economic Development Authority (EDA) and if so, review a
work plan for the next year or two.
Supporting Documents:
1. Memorandum dated February 21,2012, from Patrick Klaers, City Administrator.
2. Memorandum dated February 21, 2012, from Sue Iverson, Director of Finance and
Administrative Services
3. Two memorandums from Steve Bubul, Kennedy and Graven, dated February 17, 2012.
4. City Resolution 96-08 establishing an EDA.
5. EDA Resolution 97-01 adopting EDA By-Laws.
6. April 14, 1997 EDA By-Laws.
7. City Resolution 97-18 transferring TIF Districts and programs to the EDA
8. Adopted 2012 EDA budgets
9. Draft 12/15/11 EDA Meeting Minutes
EN HILLS
MEMORANDUM
DATE: February 21,2012
TO: Honorable Mayor and City Council be s
FROM: Patrick Klaers, City Administrato
SUBJECT: Economic Development Authority (EDA)
Backeround
The Arden Hills Economic Development Authority (EDA)was established in 1996. The
EDA is governed by five commissioners who are the members of the City Council. The EDA
has adopted By-Laws. The City Council transferred TIF Districts and all economic
development programs to the EDA. The EDA stopped holding meetings in 2004.
Discussion
Prior to the December 5, 2011 EDA meeting, Councilmembers/Commissioners Holmes,
Werner and Tamble had never participated in an Arden Hills EDA meeting. At this February
work session, the City Council needs to: (1)have a brief review of the history of the Arden
Hills EDA, (2) discuss the responsibilities of the Arden Hills EDA, and (3) consider the issues
that the EDA needs to address. Council and staff should discuss if the City needs an EDA;
and if the answer is "yes", then going forward the EDA will need to review its work plan for
the next year or two.
Steve Bubul, from Kennedy and Graven, has worked for the City on TIF Districts, as a legal
consultant for the TCAAP development agreement, and as our Bond Counsel. Sue Iverson,
Director of Finance and Administrative Services, has worked with Steve on these City
projects/activities. Steve and Sue will be presenting most of the EDA information at this
work session.
Attachments
Memo from Sue Iverson
Two Memos from Steve Bubul
City Resolution 96-08 establishing an EDA
EDA Resolution 97-01 adopting EDA By-Laws
EDA By-Laws
City Resolution 97-18 transferring TIF Districts and programs to the EDA
Adopted 2012 EDA budgets
Draft 12/15/11 EDA Meeting Minutes
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It
,-ARQEN�HILLS
MEMORANDUM
DATE: February 21, 2012
TO: Honorable Mayor and City Councilmembers
Patrick Klaers, City Administrator
FROM: Sue Iverson, Director of Finance and Administrative Services v3�
SUBJECT: Economic Development Authority(EDA)
Background
The EDA was created on January 29, 1996, by Resolution No. 96-08 by the City Council (a
public hearing was held on this date and the resolution adopted — the purpose stated in the
City Council minutes was to assist the City with its economic development efforts at the
Gateway Business District and potential TCAAP projects.) The City Council had reviewed
this item at its December 1995 worksession and Bob Deike was the Attorney who helped
establish the authority. The By-laws of the Authority were revised on April 14, 1997.
On April 14, 1997, Resolution 97-18 was passed by the City Council which transferred the
control, authority, and operation of any project as defined in Section 469.174, Subd. 8, or
any other program or project authorized by Sections 469.001 to 469.124 to Section 469.134
located within the City, from the government agency that established the project to the
Economic Development Authority. At that time the City had Development Dist. No. 1 and
TIF Dist. Nos. 1, 2, and 3. This Resolution transferred to the EDA all activities, programs,
operations, and control of budgeting, financing,property ownership, and personnel related to
the economic development activities taking place within these districts. The EDA currently
has five active funds, The EDA General Fund, Revolving Loan Fund, and TIF Dist 2, 3, and
4. The EDA met as needed, with the last meeting in 2004 prior to the recent December 2011
meeting.
The Economic Development Commission (EDC) was established on March 8, 2004 and the
first EDC meeting was help on September 29, 2004. It was stated at that time that the broad
charge of the EDC would center on business connections, marketing and assisting in
developing redevelopment strategies. These areas were outlined in the City Council's
original EDC ordinance.
City Council Meeting
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EDA General Fund
This fund accounts for general administration activities that are not specific to any
individual TIF District, as well as activities associated with the Economic Development
Commission. The estimated balance on December 31, 2011 is $88,262.
EDA Revolving Loan Fund
In 1996, a grant was applied for thru the Minnesota Department of Trade and Economic
Development for CPI/Guidant. In both 1997 and 1998, the EDA secured $300,000 in
forgivable loans for CPI/Guidant totaling $600,000. If CPI/Guidant achieved certain
employment goals, up to $500,000 of these loans were to be forgiven. $100,000 of the
$300,000 1998 grant was not forgivable and was repaid to the EDA. The loan was expected
at that time to become seed money for revolving loans to community businesses meeting
loan criteria. The estimated balance on December 21, 2011 is approximately $150,000 and
it currently only received interest income. No other disbursements have ever been made.
(Please note that research may be required to determine loan guidelines and State law
restrictions or requirements.)
TIF District No. I
Round Lake Housing was certified as an Economic Development District on June 29, 1989.
The district was generally located on the southeast corner of Round Lake and encompassed
the Brueberry Townhomes project. This housing development occurred after the City had
removed a rendering plant business (Kem Milling) on the southwest corner of Round Lake
within TIF Dist No. 2. The tax increment was used to reimburse the PIR Fund for
expenditures incurred in 1989 and 1990 to remove the Kem Milling business. This district
has since been decertified (June, 1999) and the loan was repaid to the PIR Fund.
TIF District No. 2
Round Lake Office was established as a 25-year Redevelopment Development District on
June 29, 1989. This district will expire on December 31, 2015. Since the creation of the
district,the following significant events have occurred:
• 1989 - 1990
In conjunction with the creation of the district, the City removed a rendering plant
business (Kem Milling) within the district that was funded from a loan from the PIR
Fund.
• 1997 - 1998
In conjunction with the execution of a Development Agreement with Welsh
Companies, the EDA undertook significant public improvements to facilitate
development of approximately 450,000 square feet of office/warehouse construction.
Public improvements included the relocation of a sanitary sewer trunk line,
relocation of a water main line, relocation of Fourteenth Street, and the creation of
storm retention ponds. These improvements, and Round Lake Road, Phase I, were
funded by the issuance of a$3,100,000 G.O. Tax Increment Bond on March 1, 1998.
(The bond was refinanced in 2004 at a lower interest rate and the approximate
balance remaining to be paid as of December 31, 2011 is $1,065,000. The last
payment is scheduled in 2015.)
City Council Meeting
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1999 - 2000
The EDA completed Round Lake Road, Phase I, in 1999. This project included the
relocation of the Round Lake Road/Highway 96 intersection, signalizing the
intersection, property acquisition, and the creation of a storm retention pond. An
inter-fund loan from the PIR Fund was needed for the acquisition of the Indykiewicz
property and was repaid in 2004.
The estimated balance in this account as of December 31, 2011 is $1,209,533. The
estimated future increment to be collected is $1,386,743, if added to the current estimated
balance, less the outstanding bond payments, this would amount to approximately
$1,531,276 that could be used for other improvements. Since this is an older district, the
City is able to use these funds for a number of different uses, but not for recreational
purposes. It may be used for sidewalks, infrastructure, and other improvements, but a plan
would have to be in place before the district decertifies in 2015. The additional tax base that
this district has added to the City is $346,686, which is the increment currently received.
TIF District No. 3
Cottage Villas Housing was originally certified as a Housing District on May 10, 1993. The
district is generally located on the east side of Cleveland Avenue, just south of the County
Road E-2/Cleveland Avenue intersection, and encompasses the sixty-four (64) unit Cottage
Villas Apartments complex. These apartments are available for low-to-moderate income
seniors.
The City entered into a "pay-as-you-go" Development Agreement with Cottage Villas of
Arden Hills Limited Partnership on February 28, 1994. The Development Agreement calls
for the developer to be reimbursed for certain public development activities including: land
acquisition, site preparation, site utilities, and financing costs. Repayment to the developer
would only be from, and to, the extent tax increment was actually received from the district.
The developer was entitled to no more than $57,557 per payment year for 14.5 years. The
City was not obligated to make any payments subsequent to February 1, 2010. As a result of
the class rate reduction for property taxes, increment received was less than expected, but
payments ceased to the developer on February 1, 2010. The district was originally set to
decertify on December 31, 2009, but the City Council extended the district in December
2009 to its statutory limit and will now expire in 2019.
The estimated balance in this account as of December 31, 2011 is approximately $166,844.
The estimated future increment to be collected is $312,500, if added to the current estimated
balance this would amount to $479,344 that could be used for "low-to-moderate income
housing."
TIF District No. 4
This is the new Presbyterian Homes district and we have not yet begun to receive increment
on this district or incurred any costs, thus there is no balance in this fund. This is a
renovation and renewal district. On December 13, 2010, the City Council modified the
development program for Development District No. 1 and establish Tax Increment
Financing District No. 4 within Development District No.l and adopt the Tax Increment
City Council Meeting
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Financing Plan. As part of the process, the City Council approved the Development Contract
between the City and Presbyterian Homes and approved an interfund loan to advance money
from the PIR Fund to finance qualified costs and be reimbursed from the tax increments
derived from the Tax Increment District.
City Council Meeting
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E 470 US Bank Plaza
_ 200 South Sixth Street
Minneapolis MN 55402
(612)337-9300 telephone
(612)337-9310 fax
http://www.kennedy-graven.com
CHARTERED
MEMORANDUM
TO: Patrick Klaers
Sue Iverson
FROM: Stephen Bubul
DATE: February 17, 2012
RE: EDA v City Powers
You asked me to provide some background information on the function of an EDA, and
how its powers differ from those of the City. Cities have certain economic development
powers, most significantly under the municipal development district act, Minnesota
Statutes, Section 469.124 to 469.134. Other scattered statutes give Cities powers needed
for a wide variety of activities, including tax increment financing and abatement.
An EDA, by contrast, has its own broad powers related to economic development, along
with most other powers given to other entities (including the city powers under Section
469.124 to 469.134). Further, the City has the ability, in the EDA enabling resolution, to
determine how these various powers will be used.
In the case of the Arden Hills EDA,the original enabling resolution gives the EDA all the
powers it can have under law, and does not require City Council approval of any EDA
action. Presumably, this is because the enabling resolution designates the City Council
itself as the board of commissioners, so requiring separate approval by the Council was
thought to be redundant.
If the City Council is also the board of commissioners of the EDA, the practical
significance of the EDA is that it provides maximum flexibility in use of various
development and redevelopment powers (see separate memo on EDA and HRA powers).
In a sense, the EDA simply expands the City's "tool box" of development powers.
In many cases,the EDA may use these powers on its own without City Council action(so
no duplication is needed). There are exceptions, where statutes require actions by both
bodies. A good example is tax increment financing ("TIF"). Under Minnesota Statutes,
Sections 469.174 to 469.179 (the "TIF Act'), the EDA may establish TIF districts, but
only if the City Council holds a public hearing, makes the required findings, and
approves the TIF Plan.
But once the City Council has approved the TIF district, the City Council has no further
right to control what happens to the tax increment revenues or the development activities.
The EDA can enter into development contracts, buy and sell land, give pay-as-you-go
TIF Notes, and even issue tax increment revenue bonds, all without Council approval (so
long as everything the EDA does is within the scope of the Council-approved TIF Plan).
Technically, this is already the case for the City's three existing TIF Districts,which were
initially created by the City but transferred to the EDA in 1997.
Abatement under Sections 469.1812 to 469.1815, by contrast, is a power given only to
the City Council. The EDA may make recommendations, but it has no powers to actually
approve an abatement.
But where the Council members sit as the EDA board, the only question is which body
should be convened to access the relevant statutory authority. For the most part, the EDA
does not mandate significant new procedures and meetings. For example, EDA meetings
can be scheduled on the same night as a Council meeting—before, after, or even in the
middle of a regular meeting. Or, some cities prefer to schedule EDA meetings on a
different night, simply to emphasize the different role when council members are acting
as EDA commissioners.
If the enabling resolution were revised to include non-council members on the EDA
board, the situation is somewhat different. The bodies do function more separately, and
the common practice is to add some limitations on the EDA's activities in the enabling
resolution. The most typical limitation is to require City Council approval for issuance of
any bonds by the EDA. But this is entirely a matter for the City Council to decide. I am
aware of at least one City where the EDA board has a majority of non-council members,
and virtually all EDA actions (including all land acquisitions and contracts) require prior
Council approval. That type of enabling resolution means the EDA functions more like
an advisory body.
I will be available at the Council study session on February 21, 2011 to discuss these
points in more detail.
2
470 US Bank Plaza
' 200 South Sixth Street
F Minneapolis MN 55402
' (612)337-9300 telephone
(612)337-9310 fax
http://www.kennedy-graven.coin
CHARTERED
SUMMARY OF MINNESOTA HRA AND EDA POWERS
Stephen J. Bubul
Kennedy&Graven, Chartered
February 17, 2012
Following is a generalized summary of the powers of a housing and redevelopment authority
("HRA") under Minnesota Statutes, Sections 469.001 to 469.047 ("HRA Act") and an economic
development authority ("EDA") under Minnesota Statutes, Sections 469.090 to 469.108 ("EDA
Act")
A. HRAs
1. Housing
Housing powers are generally grouped under the definition of a "housing project" and a "housing
development project."
Housing projects are any work or undertaking to provide decent, safe and sanitary dwellings for
persons of low income and their families. Section 469.002, Subd. 13. Such persons are those who
lack a sufficient income to enable them, without financial assistance, to live in decent, safe and
sanitary dwellings without overcrowding.
Housing development projects are any work or undertaking to provide housing for persons of
moderate income. Section 469.002, subd. 15. Such persons are those whose income is not
adequate to cause private enterprise to provide, without governmental assistance, a substantial
supply of decent, safe and sanitary housing and rents or prices within their financial means.
The statute includes a more specific schedule of powers that fleshes out this general authority,most
of which are discussed below. Generally, HRAs may do all things necessary and convenient to
acquire, construct and operate housing projects and housing development projects.
Key specific powers that supplement the general language above include:
a. Interest reduction programs, allowing financial assistance to reduce the cost of interest on
privately financed housing intended primarily for occupancy by low and moderate income
individuals. Sections 469.0012, Subds. 7 to 9.
b. Housing rehabilitation loan and grant program, for property owned by person of low and
moderate income. Section 469.012, Subd. 6.
c. Down payment assistance loans and grants, where the HRA finds that the program is
necessary to promote economic integration or encourage owner occupancy of single family
residences. Section 469.012, Subd. 13
HRAs may finance housing projects and housing development projects through issuance of bonds
secured by a mortgage on HRA property, a pledge of HRA revenues, or a pledge of grants or
contributions from the federal government or any other source. Section 469.012, Subd. lq, Section
469.034. If certain criteria are met, and subject to certain limits, the HRA may sell bonds for
housing development projects secured by the City's general obligation pledge, with the City
Council's approval after public hearing. Section 469.034, Subd. 2.
2. Redevelopment
HRA powers regarding redevelopment are described under the powers to create and operate
"redevelopment projects." That term means, generally, any work or undertaking to acquire property
in order to remove, prevent or reduce blight or blighting factors; construct utilities and site
improvements essential to the preparation of sites for uses in accordance with the redevelopment
plan; sell or lease land for uses in accordance with the redevelopment plan; prepare a
redevelopment plan; or conduct an "urban renewal project," which itself is broadly defined to
include any undertaking for the elimination or prevention of blighted or deteriorating areas. Section
469.002, Subd. 14.
The specific schedule of powers regarding redevelopment includes the power:
a. To establish a redevelopment project. The HRA (and City Council) must approve a
redevelopment plan, which is a general plan for the development or redevelopment of the
project area. After a public hearing,with at least 10 days published notice,the City Council
must find that:
(i) the land in the project area would not be made available for redevelopment
without the financial aid to be sought;
(ii) the redevelopment plans for the redevelopment areas in the locality will afford
maximum opportunity, consistent with the needs of the locality as a whole, for the
redevelopment of the areas by private enterprise; and
(iii) the redevelopment plan conforms to a general plan for the development of the
locality as a whole.
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Section 469.028, Subd. 2.
b. To undertake, prepare, carry out and operate projects' and to provide for the construction,
reconstruction, improvement, extension, alteration, or repair of any project or any part
thereof. Section 469.012, Subd. 1d.
C. To give, sell, transfer, convey or otherwise dispose of real or personal property or any
interest therein, and to execute leases, deeds, conveyances, negotiable instruments,purchase
agreement and other contracts or instruments and take action that is necessary or convenient
to carryout the purposes of the HRA Act. Section 469.012, Subd. le..
d. To acquire real or personal property or any interest therein by gifts, grants, purchase,
exchange, lease, transfer, bequest, or otherwise, and by exercise of the power of eminent
domain. Section 469.012, Subd. lg..
e. To borrow money or other property and accept contributions, grants, gifts, services or other
assistance from the federal government, state public bodies, or from any other public or
private sources. Section 469.012, Subd. lo.
f. To cooperate with or act as the agent for the federal government, the state or any state
public body, or any agency or instrumentality of the forgoing, in carrying out the HRA Act.
Section 469.012, Subd. 11.
g. To issue bonds for any corporate purposes and to secure the bonds by mortgages upon
property held or to be held by the HRA or by pledge of its revenues, including grants or
contributions. Section 469.012, Subd. lq; Section 469.034.
h. To levy a special benefits tax on all property in the HRA's area of operation(in this case,the
City as a whole). The City Council must approve the tax levy either annually or without a
time limitation; in any event, the HRA must file a budget with the City in accordance with
the procedures for executive departments of the City. The special benefits tax may not
exceed .0185% of the taxable market value in the City. Section 469.033, Subd. 6.
i. To carry out studies of the housing and redevelopment needs within its area of operation.
and of the meeting those needs. Section 469.012, Subd. It..
j. To lease or rent any dwellings, accommodations, land, buildings, structures or facilities
included in any project. Section 469.012, Subd. 1v.
k. To own, hold and improve real or personal property and to sell, lease, exchange, transfer,
assign, pledge or dispose of any real or personal property or any interest therein. Section
469.012, Subd. 1w. Sale or lease of land in a redevelopment project generally requires a
' The term "project," unless otherwise indicated, includes a housing project, a housing
development project, a redevelopment project, and an interest reduction program. Section 469.002,
Subd. 12.
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public hearing with 10 days published notice and restrictions on use or resale of the property
to accomplish the public purpose of the redevelopment plan. Section 469.029.
1. To exercise the powers of a City in carrying out a commercial rehabilitation loan program
under Section 469.184, if the City by ordinance so authorizes. Section 469.184, Subd. 7.
M. To make loans to a business, a for-profit or nonprofit organization, or an individual for any
purpose that an HRA is otherwise authorized to carry out under the HRA Act. Section
469.192.
In addition to the powers described above, HRAs are one of the "authorities" with the power to
establish tax increment financing districts (with City Council approval) under Sections 469.174 to
469.179. The tax increment must be used to finance or otherwise pay the "public redevelopment
costs pursuant to the HRA Act, which term is defined to mean the entire cost of a "project" (See
Footnote 1), including administrative expense of the HRA allocable to the project and debt charges
an all other costs authorized to be incurred by the HRA in the HRA Act.
B. EDAs
The powers of an EDA are more ambiguous and complex than those of an HRA. Most of the
powers specified in the EDA Act itself must be exercised within an "economic development
district" (not to be confused with a tax increment financing district with the same name). Until
2010, an EDA economic development district was required to meet all the requirements of a
redevelopment tax increment financing district, including the finding that more than 50% of the
buildings are structurally substandard. The odd result is that, despite the name,the core of the EDA
Act provided powers only in an area that meets stringent redevelopment criteria.
Legislation in 2010 finally corrected this problem by removing the redevelopment tax increment
reference. Now, EDAs may create economic development districts in any contiguous area that the
EDA deems appropriate.
In addition, EDA Act offers significant flexibility because of its cross-referencing provisions. An
EDA has all the powers of an HRA (described above) and all the powers of a city under Minnesota
Statutes, Sections 469.124 to 469.134 (the "Municipal Development District Act"). The Municipal
Development District Act provides broad authority to carry out economic development. Further, an
EDA may use powers under Sections 469.152 to 469.165 (the "Municipal Industrial Development
Act") for a purpose under the HRA Act or EDA Act, and may use the powers under the HRA Act
and EDA Act for a purpose under the Municipal Industrial Development District Act.
In addition to these cross-referenced powers, the EDA Act includes some specific unique powers,
including the power to become a limited partner in a partnership "whose purpose is consistent with
the authority's purpose" (Section 469.101, subd. 6); to carry out public relations activities in
furtherance of economic development (Section 469.101, subd. 16); and to invest in certain venture
capital businesses(Section 469.101, subd. 23).
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The net result is that EDAs generally have similar powers to HRAs, except that the purposes extend
beyond housing and redevelopment to include the broader goals of economic development.
A final point involves tax levies. EDAs have access to two types of tax levies. First, an EDA may
use its HRA powers and levy the HRA tax described above (subject to Council approval). In cities
that have both an EDA and an HRA,the maximum levy(.0185%of market value)probably applies
collectively to the two bodies. That is, if both an EDA and HRA wish to levy a special benefit tax,
they probably need to allocate the statutory limit between them.
Secondly EDA Act authorizes a tax levy for EDAs as described in Section 469.107. If the EDA
requests, a City may (but is not required to) levy a tax "for the benefit of the authority." The
maximum amount is.01813% of the City's taxable market value. Unlike the HRA levy described
above,this is not a separate levy made by the EDA; it is made by the City and is included within the
City's levy limits. As a result this so-called `EDA levy" is not a significant benefit except in
unusual circumstances.
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CITY OF ARDEN HILLS
RA.MSEY COUNTY
RESOLUTION NO. 96-08
RESOLUTION ENABLING THE ESTABLISHMENT OF AN ECONOMIC
DEVELOPMENT AUTHORITY
WHEREAS, Minnesota Statutes, Chapter 469 authorizes cities to establish economic
development authorities ("EDA")with specified powers and obligations to
promote and to provide incentives for economic development and redevelopment;
and
WHEREAS, the City Council of the City of Arden Hills,Minnesota(the"City")has
determined that it is in the best interest to establish an EDA in order to preserve
and create jobs, enhance its tax base,and to promote the general welfare of the
people of the City; and
WHEREAS, the City has provided public notice and conducted a public hearing on the
proposed adoption of this enabling resolution on January 29, 1995 and has
fulfilled all other legal requirements for the establishment of the Authority.
NOW,THEREFORE,BE IT RESOLVED,by the City Council of the City of Arden Hills:
1. An economic development authority to be known as the"Economic
Development Authority of the City of Arden Hills"with all of the powers,
rights, duties, and obligations as set forth in Minnesota Statutes 469.090 to
469.108 and any other law is hereby established in and for the City.
2. The Authority shall be governed by a board of five (5) commissioners who
shall be members of the City Council.The Commissioners shall be elected
and qualified in the same manner as the members of the City Council.
3. Nothing shall prevent the City from modifying this enabling resolution to
improve upon the powers of the EDA or provide for other matters as
authorized by Minnesota Statutes, Sections 469.09 to 469.iM or other
law.
PASSED AND ADOPTED BY THE CITY COUNCIL OF TY O E HILLS
THIS 29th DAY OF JANUARY, 1996.
ENNIS PR BST,MAYOR
c
ATTEST:
(O*N BRIA FRITSING R, C ADMINISTRATOR
CITY OF ARDEN HILLS ECONOMIC DEVELOPMENT AUTHORITY
RAMSEY COUNTY
STATE OF MINNESOTA
RESOLUTION NO. EDA-97-01
RESOLUTION ADOPTING BY-LAWS
OF THE ARDEN HILLS ECONOMIC DEVELOPMENT AUTHORITY
WHEREAS,the Arden Hills City Council did on the 29th day of January, 1996, create an
Economic Development Authority (EDA)in and for the City of Arden Hills,Ramsey County,
Minnesota,pursuant to law; and
WHEREAS,the EDA is authorized by Minnesota Statutes, Chapter 469, and specifically under
Section 469.096 to elect officers, adopt by-laws, assign duties, and address other organizational
matters.
NOW THEREFORE,BE IT RESOLVED BY THE BOARD OF COMMISSIONERS OF
THE ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF ARDEN HILLS,
NHNNESOTA that the Board hereby adopts the attached by-laws,dated April 14, 1997,of the
Economic Development Authority.
PASSED AND ADOPTED BY THE ECONOMIC LOP NT AUTHORITY OF
THE CITY OF ARDEN HILLS THIS 14TH D AP ,1997.
DENNIS 'BST,PRESIDENT
ATTEST:
BRIAN FRIT�WER, CRETARY/TREASURER
M:\USERS\SHEILA\ADMIN\PLANNING\EDA\97-O I EDA.RES
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BY-LAWS OF THE ARDEN HILLS ECONOMIC DEVELOPMENT AUTHORITY
DATED: APRIL 14, 1997
1. THE AUTHORITY
Section 1.1. Name of the Authority.
The name of the Authority shall be the Arden Hills Economic
Development Authority (hereinafter,the"Authority"), and its governing
body shall be called the Board of Commissioners (hereinafter,the
"Board").
Section 1.2. Office.
The principal office of the Authority shall be the Arden Hills City Offices.
Section 1.3. Seal.
The official seal of the City of Arden Hills shall be the Authority's official
seal.
2. ORGANIZATION -
Section 2.1. Officers.
The officers of the Authority shall consist of a President,a Vice President,
a Secretary-Treasurer, Controller, and an Executive Director. The
President,the Vice President shall be members of the Board and shall be
elected annually at the annual meeting. No Commissioner may serve as
President and Vice President at the same time. The offices of Secretary-
Treasurer, Controller, and Executive Director shall be appointed as set
forth herein.
Section 2.2. President.
The President shall preside at all meetings of the Board. The President
shall be the Mayor.
Section 2.3. Vice President.
The Vice President shall preside at any meeting of the Board in the
absence of the President and may exercise all powers and perform all
responsibilities of the President if the President cannot exercise or perform
the same due to absence or other inability. The Vice President shall be the
Acting Mayor.
-2 -
Section 2.4. Secretary-Treasurer.
The Secretary-Treasurer shall be the City Administrator. The Secretary-
Treasurer shall receive and be responsible for Authority money, shall
disburse authority money by check-or telephonic transfer,keep an account
of all Authority receipts and disbursements and the nature and purpose
relating thereto, shall file all financial reports and disclosures required of
the Authority,make investments consistent with the City's Investment
Policy, and be responsible for the acts of the Controller.
The Secretary-Treasurer shall also keep minutes of all meetings of the
Board and shall maintain all records of the Authority. The Secretary-
Treasurer shall have such additional duties and responsibilities as the
Board may from time to time and by resolution prescribe.
Section 2.5. Controller.
The Controller shall have all the powers and duties of the Secretary-
Treasurer if the Secretary-Treasurer is absent or disabled. The Controller
shall be the City Accountant.
Section 2.6. Executive Director.
The City's Community Development Director shall be the Executive
Director of the Authority, and shall have such additional responsibilities
and authority as the Board may from time to time by resolution prescribe.
Section 2.7. Advisory Committees.
The Authority may by resolution establish one or more advisory
committees to the Authority.
3. PROCEDURES OF BOARD OF COMMISSIONERS
Section 3.1. Annual Meeting.
The annual meeting of the Board shall be held at 7:00 p.m. on the second
Monday of the month of January in each year.
Section 3.2. Regular Meetings.
The Board shall hold regular meetings on the last Monday of each month,
commencing at 7:00 p.m. or at such other time as the Board may
determine.
-3 -
Section 3.3. Special Meetings.
Special meetings of the Board may be called by the President, any two
Commissioners, or by the Executive Director. The Executive Director
shall post notice of any special meeting in the principal office of the
Authority no less than three days prior to such special meeting.
Section 3.4. Quorum.
A quorum of the five member Board shall consist of three Commissioner.
In the absence of a quorum,no official action may be taken by, on behalf
of,or in the name of the Board or the Authority.
Section 3.5. Adoption of Resolutions.
Resolutions of the Board shall be deemed adopted if approved by not less
than a simple majority of all Commissioners present. Resolutions may,
but need not be read aloud,prior to vote taken thereon. All resolutions
shall be executed after passage.
Section 3.6. Rules of Order.
The meetings of the Board shall be governed by the most recent edition of
Robert's Rules of Order.
4. MISCELLANEOUS
Section 4.1. Fiscal Year.
The fiscal year of the Authority shall be the calendar year. The Authority
shall establish a separate enterprise fund for the purpose of maintaining all
financial and accounting records of the Authority, including the nature of
all receipts and disbursements,money on hand,and the purposes to which
it may be applied, and records of Authority's debits and credits. The
Authority shall establish such debt service funds as may be properly
authorized and necessary for conduct of the Authority's funds.
Section 4.2. Bond.
The City shall ensure that all persons responsible for management of the
Authority's financial records and resources are properly bonded.
Section 4.3. Checks.
The President, Secretary-Treasurer, and Controller shall execute all
checks authorized by the Authority. Vouchers authorizing such
expenditures shall be submitted and approved in conjunction and
accordance with procedures for payments of other claims against the City.
-4 -
Section 4.4. Financial Statements.
The Authority's detailed financial statement must show all receipts and
disbursements,their nature,the money on hand,the purposes to which the
money on hand is to be applied,the Authority's credits and assets, and its'
outstanding liabilities in a form required for the City's financial
statements. The Authority shall examine the statement together with the
Treasurer's vouchers. If the Authority finds that the statement and
vouchers are correct, it shall approve them by resolution and enter the
resolution in its records.
Section 4.5. Report to City.
The Authority shall annually make a report to the City Council giving a
detailed account of its activities and of its receipts and expenditures for the
preceding calendar year.
Section 4.6. Budget to City.
The Authority shall annually send its budget to the City Council which
budget includes a written estimate of the amount of money needed by the
authority from the City in order for the Authority to conduct business
during the upcoming fiscal year.
Section 4.7. Employees.
The Authority may employ an executive director,a chief engineer,
technical experts and agents and other employees as it may require and
determine their duties,qualifications and compensations.
Section 4.8. Services. public
The Authority may contract for the services of consultants, agents,p
accountants and others as needed to perform it's duties and to exercise its
powers. The Authority may also use the services of the City Attorney or
hire a general counsel,as determined by the Authority.
Section 4.9. Supplies,Purchasing,Facilities, and Services.
The Authority shall purchase such supplies and materials as it needs. The
City may furnish offices, structures and space, stenographic,clerical,
engineering and other assistance to the Authority.
Section 4.10. Execution of Contracts.
All contracts,notes, and other written agreements or instruments to which
the Authority is a part or signatory or by which the Authority may be
bound shall be executed by the President, Secretary-Treasurer, and/or the
Executive Director or by such other Commissioners or Officers of the
Authority as the Board may by resolution prescribe.
- 5 -
Section 4.11. Amendment of By-Laws.
These By-laws may be amended by the Board by majority vote of all the
Commissioners,provided that any such proposed amendment shall first
have been delivered to each Commissioner at least five (5)days prior to
the meeting at which such amendment is considered.
CITY OF ARDEN HILLS
RAMSEY COUNTY
STATE OF MINNESOTA
RESOLUTION NO. 97-18
A RESOLUTION TRANSFERRING
VARIOUS BUDGETARY,FINANCIAL,PROPERTY,AND PERSONNEL
TO THE ARDEN HILLS ECONOMIC DEVELOPMENT AUTHORITY
WHEREAS,the City Council of the City of Arden Hi.Ils,Minnesota adopted Resolution No. 96-
08,Enabling the Establishment of an Economic Development Authority; and
WHEREAS,Minnesota Statutes, Section 469.094, Subd. 2, allows the City to transfer the
control,authority,and operation of any project as defined in Section 469.174,Subd. 8,or any
other program or project authorized by Sections 469.001 to 469.047 or 469.124 to 469.134
located within the City,from the government agency that established the project to the Economic
Development Authority;and
WHEREAS,the City is operating Development District No. 1 and Tax Increment Financing
Districts Nos. 1,2 and 3 within the Development Program;and
WHEREAS,the City Council has expressed a desire to transfer to the Economic Development
Authority all activities,programs,operations, and control of budgeting,financing,property
ownership, and personnel related to the economic development activities taking place within
these districts.
NOW THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
ARDEN HILLS,MINNESOTA.-
The City transfers all activities,programs,operations,and control of budgeting,
financing,property ownership,and personnel related to the economic development
activities taking place within Development District No. 1 and Tax Increment Financing
Districts Nos. 1,2 and 3. In addition,the City hereby transfers to the Economic
Development Authority,the budgetary components of the Municipal
Development/Redevelopment Fund(No. 522),which includes activities related to
Development District No. 1 and Tax Increment Financ' Districts N . 1,2 and 3.
PASSED AND ADOPTED BY THE CITY COUNCIL O HE CI OF RDEN HILLS
THIS 14TH DAY OF APRIL, 1997.
S PR BST,MAYOR
ATTEST:
BRIAN FRfTSINGER, CITY ADMINISTRATOR
City of Arden Hills
Economic Development Authority Fund Summary
Special Revenue Funds
Actual Actual Budget Amended Actual Proposed Adopted %Change
FY 2009 FY 2010 FY 2011 FY 2011 9/30/2011 FY 2012 FY 2012 11 vs 12
Operating Revenue
EDA General Fund $ 18,512 $ 36,201 $ 9,100 $ 9,100 $ 22,993 $ 35,250 $ 226.56%
EDA TIF Dist#3 Cottage Villas 36,540 40,672 32,000 32,000 23,345 40,500 .56%
EDA Revolving Fund 3,998 3,392 2,500 2,500 2.356 2,500 10.00%
EDA TIF Dist#2 Round Lake 510,799 511.739 460,000 460000 241,093 508,500
Operating Revenues 571,849 592,004 503,600 503,600 289,787 586,750 16.51%
Other Financing Sources 65,000 415.87%
EDA General Fund 15,000 12,600 12,600 12,600 -
Other Financing Sources 15,000 12,600 12,600 12,600 - 65,000 415.87%
Total Revenues $ 586,849 $ 604,604 $ 616,200 $ 616,200 $ 289,787 $ 661,750 $ 26.26%
Operating Expenses 436.64%
EDA General Fund $ 2,184 $ 545 $ 12,000 $ 12,000 $ 2.862 $ 64,397 %
EDATIF Dist#3 Cottage Villas 45,5 0.00
47 1.673 4,000 4,000 1,310 4,000 0.00%
EDA Revolving Fund 0.00%
EDA TIF Dist#2 Round Lake 591 1 094 1,300 1,300 1,310 1,300
Operating Expenses 48,321 3,312 17,300 17,300 5,483 69,697 302.87%
Capital Outlay 65,000 333.33%
EDA General Fund 15,000 15,000
Total Capital Outlay - - 15,000 15,000 65,000 333.33%
Other Finance Uses 286 698 0.82%
EDA TIF Dist#2 Round Lake 280,100 281,525 284,375 284,375
Other Financing Uses 280,100 281,525 284,375 284,375 286,698 0.82%
Total Expenditures $ 328,421 $ 284,837 $ 316,675 $ 316,675 $ 5,483 $ 421,396 $ 33.07%
Fund Balances-January 1 1,009,965 1.268,393 1,588,160 1,588,160 1,588,160 1,787,685
Excess Revenue Over Expenditure 256,428 319,768 199,525 199,525 284,304 230,355
Fund Balances-December 31 $ 1,26B,393 $ 1,588,1.0 $ 1,T :685 $ 1,787,685 $ 1,872,465 $ 2,018,040 $
City of Arden Hills
2012 Budget
Function:Economic Development Department: EDA General Fund
Appropriation Detail
Actual Actual Budget Amended Projected Proposed Adopted h Change
Activity FY 2009 FY 2010 FY 2011 FY 2011 9/30/2011 FY 2012 FY 2012 11 vs 12
Revenues
Taxes 18,218 35,250 9,100 9,100 21,814 35,250 287.36%
Intergovernmental - - - - - 0.00%
Miscellaneous 294 951 - - 1,179 - 0.00%
Other Financing Sources 15,000 12,600 12,600 12,600 - 65,000 415.87%
Total Revenues $ 33,512 $ 48,801 $ 21,700 $ 21,700 $ 22,993 $ 100,250 $ 361.98%
Expenditures
Total Personal Services 41,638 0.00%
Total Materials and Supplies 977 3,000 3,000 210 3,000 0.00%
Other Service Charges 1,207 545 9,000 9,000 2,652 19,759 119.55%
Capital Outlay 15,000 15,000 - 65,000 333.33%
Total Expenditures $ 2,184 $ 545 $ 27,000 $ 27,000 $ 2,862 $ 129,397 $ 379.25%
Fund Balance-January 1 16,012 47,340 95,597 95,597 95,597 90,297
Excess Revenue Over Expenditure 31,328 48,257 (5,300) (5,300) 20,131 (29,147)
Fund Balance-December 31 $ 47,340 $ 95,697 $ 90.297 $ 90,297 $ 115,727 $ 61,149 $
City of Arden Hills
2012 Budget
Function Economic Development Department: EDA TIF District#3 Cottage Villas
/ Appropriation Detail
Actual Actual Budget Amended Projected Proposed Adopted %Change
ActivityFY 2009 FY 2010 FY 2011 FY 2011 9/30/2011 FY 2012 FY 2012 11 vs 12
Revenues
Taxes 35,627 38.363 30,000 30,000 21,246 38,500 28.33%
Intergovernmental 65 64 - - - 0,00%
Miscellaneous 2,849 2,245 2,000 2,000 2,099 2,000 0.00%
Total Revenues $ 38,540 $ 40,672 $ 32,000 $ 32,000 $ 23,345 $ 40,500 $ 26.56%
Expenditures
Other Services and Charges 45,547 1,673 4.000 4,000 1,310 4,000 0.00%
Total Expenditures $ 45,547 $ 1,673 $ 4,000 $ 4,000 $ 1,310 $ 4,000 $ 0.00%
Fund Balance-January 1 80,220 73,214 112,213 112,213 112,213 140,213
Excess Revenue Over Expenditure (7,006) 38,999 28,000 28,000 22,035 36,500
Fund Balance-December 31 $ 73.214 $ 112,213 $ 140,213 $ 140,213 $ 134.248 $ 176,713 $
City of Arden Hills
2012 Budget
Function Economic Development Department: EDA Revolving Fund
ro nation Detail
Actual Actual Budget Amended Projected Proposed Adopted °k Change
Activity FY 2009 FY 2010 FY 2011 FY 2011 9/30/2011 FY 2012 FY 2012 11 vs 12
Revenues 0,00%
Total Miscellaneous 3,998 3,392 2,500 2.500 2,356 2,500
Total Revenues $ 3,998 $ 3,392 $ 2,500 $ 2,500 $ 2,356 $ 2,500 $ 0.00°k
Fund Balance-January 1 140,596 144,594 147,986 147,986 147,986 150,486
Excess Revenue Over Expenditure 3,998 3,392 2,500 2,500 2,356 2,500
Fund Balance-December 31 $ 144,594 $ 147,986 $ 150,486 $ 150,466 $ 150,342 $ 152,986 $
City of Arden Hills
2012 Budget
Function: Economic Development Department: EDA TIF District#2 Round Lake Office Park
Appropriation Detail
Actual Actual Budget Amended Projected Proposed Adopted %Change
Activity FY 2009 FY 2010 FY 2011 FY 2011 9/30/2011 FY 2012 FY 2012 11 vs 12
Revenue 9.67%
Taxes 486,563 493,112 450,000 450,000 221,129 493,500 %
Miscellaneous 24,237 18,627 10,000 10,000 19,964 15,000 10 50.00 00%
Total Revenue $ 510,799 $ 511,739 $ 460,000 $ 460,000 $ 241,093 $ 508,500 $
Expenditures 0.00%
Other Services and Charges 591 1,094 1,300 1,300 1,310 1,300 082°k
Operating Trans To Debt Services 280,100 281,525 284,375 284,375 - 286,69E
619 $ 285,675 $ 285,675 $ 1,310 $ 287,998 $ 0.81%
Total Expenditures $ 280,691 $ 282,
Fund Balance-January 1 773,137 1,003,246 1,232,365 1.232.365 1,232,365 1,406,690
Excess Revenue Over Expenditure 230.109 229,119 174,325 174,325 239,783 220,502
Fund Balance-December 31 $ 1.003.246 $ 1,232,365 $ 1,406,690 $ 1,406,690 $ 1,472.148 $ 1.627,192 $
EDA TIF#2
,-AIQENHILLS
CITY OF ARDEN HILLS,MINNESOTA
ECONOMIC DEVELOPMENT AUTHORITY(EDA) MEETING
DECEMBER 5,2011
7:30 P.M. -ARDEN HILLS CITY COUNCIL CHAMBERS
CALL TO ORDER/ROLL CALL
Pursuant to due call and notice thereof, President David Grant called to order the EDA
Meeting at 8:26 p.m.
Present: President David Grant and Commissioners Brenda Holden, Fran Holmes,
Nick Tamble, and Ed Werner.
Absent: None
Also present were City Administrator Patrick Klaers; Director of Finance and
Administrative Services Sue Iverson; Community Development Director Jill Hutmacher;
and Deputy Clerk Rebecca Brazys.
1. APPROVAL OF AGENDA
MOTION: Commissioner Tamble moved and Commissioner Holden seconded the
motion to approve the agenda as presented. Motion carried unanimously (5-
2. NEW BUSINESS
A. Approval of EDA Budget
Director of Finance and Administrative Services Iverson reviewed the proposed 2012 budget
for the EDA with total revenues of $651,750, total expenditures of$421,395 and an estimated
fund balance at the end of December 31, 2011, of$2,018,040. The EDA totals include the EDA
General Fund, the EDA TIF District 3 Cottage Villas Fund, the EDA Revolving Fund, and the
EDA TIF District 2 Round Lake Fund. The EDA General Fund will need to use reserves to
balance planned expenditures with available revenues. This fund includes staff time for
operating activities and expenses for the Gateway signs.
City Administrator Klaers commented that the EDA has not met since 2004 and there are
issues that need to be discussed. He suggested that the EDA bylaws be reviewed to make sure
they are consistent with current state law. There should be an EDA meeting held in January, a
regular meeting schedule should be established, and a work plan created. He added that tonight's
ARDEN HILLS EDA MEETING—DECEMBER 5, 2011 2
special meeting being held is appropriate to approve the budget and then lay the groundwork for
upcoming meetings.
MOTION: Commissioner Holden moved and Commissioner Werner seconded a motion
to approve the EDA budget as presented. Motion carried unanimously(5-0).
3. UNFINISHED BUSINESS
None
4. EDA MEMBERS COMMENTS
Commissioner Holmes questioned the need for Arden Hills to have an EDA.
City Administrator Klaers indicated that the comment from Commissioner Holmes raises a
valid issue and would be discussed by the Council at a future work session.
5. STAFF COMMENTS
None
6. ADJOURN
MOTION: Commissioner Tamble moved and President Grant seconded the motion to
adjourn. Motion carried unanimously (5-0).
President Grant adjourned the Economic Development Authority meeting at 8:45 p.m.
Patrick Klaers David Grant
City Administrator President