HomeMy WebLinkAbout10-28-13 Address:
Chair: 1245 W Highway 96
David Grant Arden Hills MN 55112
Commissioners: -AVENHILLSPhone:
Brenda Holden 651-792-7800
Fran Holmes Economic Development
Dave McClung Authorit Website;
Ed Werner y en www.cit ofardhills.or
October 28, 2013 y g
6:00 p.m.
City Hall
City vision
Arden Hills is a strong community that values its unique environmental setting,
strong residential neighborhoods, vital business community, well-maintained
infrastructure, fiscal soundness, and our long-standing tradition as a desirable
City in which to live, work, and play.
Agenda
CALL TO ORDER
1. APPROVAL OF AGENDA
2. APPROVAL OF MINUTES
2.A. Approval Of Minutes
July 29, 2013, Regular EDA
August 26, 2013, Special EDA
Documents: 07-29-13.PDF, 08-26-13.PDF
3. CONSENT CALENDAR
4. NEW BUSINESS
4.A. Approve Preliminary 2014 EDA Budgets
Sue Iverson, Treasurer
Documents: MEMO.PDF. 2014 PROPOSED EDA BUDGET.PDF
4.13. Update On Carroll's Property
Jill Hutmacher, Executive Director
Documents: MEMO.PDF, ATTACHMENT A.PDF
4.C. TIF 3 (Cottage Villas) Update
Patrick Klaers, Secretary
Documents: MEMO.PDF, ATTACHMENT A.PDF
5. UNFINISHED BUSINESS
6. EDA MEMBER COMMENTS
7. STAFF COMMENTS
ADJOURN
DRAFT
--.-ARpEN HILLS
Approved:
CITY OF ARDEN HILLS,MINNESOTA
ECONOMIC DEVELOPMENT AUTHORITY MEETING
JULY 291)2013
6:00 PM—ARDEN HILLS CITY HALL
CALL TO ORDER/ROLL CALL
Pursuant to due call and notice thereof, President Grant called to order the Economic
Development Authority(EDA)meeting at 6:00 p.m.
Present: EDA President David Grant; EDA Commissioners Brenda Holden, Fran
Holmes, Dave McClung, and Ed Werner
Absent: None
Also present: Secretary Patrick Klaers; Treasurer Sue Iverson; City Planner Ryan Streff;
Public Works Director Terry Maurer; Community Development Intern Matthew Bachler;
and Deputy Clerk Amy Dietl
1. APPROVAL OF AGENDA
MOTION: EDA Commissioner Holmes moved and EDA Commissioner Werner
seconded a motion to approve the meeting agenda as presented. The motion
carried unanimously (5-0).
2. APPROVAL OF MINUTES
A. April 2 9, 2013
MOTION: EDA Commissioner Holmes moved and President Grant seconded a motion
to approve the April 29, 2013, Economic Development Authority meeting
minutes as presented. The motion carried unanimously (5-0).
3. CONSENT CALENDAR
Noire.
ARDEN HILLS EDA MEETING—JULY 29, 2013 2
4. NEW BUSINESS
A. Round Lake Road and TIF District 2 Funds
Secretary Klaers stated that at the June 17, 2013, City Council work session, the Council
considered the issues related to a Round Lake Road (RLR) improvement project. Staff estimated
the expense for this project to be $2.6 million with half of the expense intended for utilities and
the other half for street and land acquisition. Council had directed staff to put this project in the
2014 CIP and to use TIF District 2 funds for the project. The project would be assessed to
benefitting property owners for some of the costs associated with road improvements. Further
information on the assessments would be known after the feasibility study was complete.
Secretary Klaers commented that the TIF District 2 has over $1 million in funds that can be
used for any City approved project or activity without restrictions. Another $159,481 In ftmding
is available to be spent consistent with the TIF 2 budget, which is what would be used for the
RLR project. Staff recommended that the additional funds be transferred out of the TIF district
to the PIR Fund when the EDA meets in October. He requested that the EDA approve the use of
TIF District 2 funds ui the amount of$159,481 to be used for the RLR project.
Treasurer Iverson discussed the finances in fiu-ther detail with the EDA.
President Grant questioned if the City would be able to complete the RLR project in 2014.
Public Works Director Maurer stated that his only concern is the land acquisition portion of
the project. He indicated that the feasibility study will clarify this issue in detail for the City.
EDA Commissioner Holden asked what street width will be used for Round Lake Road.
Public Works Director Maurer suggested that the road follow Municipal State Aid (MSA)
standards and remain a four-lane road.
EDA Commissioner Holmes inquired how the City will fiend the difference between the TIF
fiends available and the estimated project cost.
Public Works Director Maurer indicated that half of the project costs are for buried utilities,
acid these expenses can be funded through the Sanitary Sewer and Water Funds.
EDA Commissioner Holmes questioned why MSA fiends are not proposed for this project.
President Grant stated that some MSA fields can be used to assist in ftulding this project and
that more would be known after the feasibility report is complete.
EDA Commissioner Holden asked where the TIF District 2 fiends will be placed in the budget.
ARDEN HILLS EDA MEETING—JULY 29, 2013 3
Secretary Klaers recommended that the fiinds not be placed in the General Fund, but rather the
PIR Fund.
MOTION: EDA Commissioner Holden moved and President Grant seconded a motion
to approve a budget amendment and the transfer of non-tax increment funds
from the TIF District 2 in the amount of$1,027,984 to be placed in the PIR
Fund. The motion carried unanimously (5-0).
MOTION: EDA Commissioner Holden moved and EDA Commissioner Holmes
seconded a motion to approve the remaining TIF District 2 funds be slated
for the Round Lake Road improvement project. The motion carried
unanimously _- .
B. 2014 EDA Budgets
Secretary Klaers reviewed the preliminary 2014 budget in detail with the EDA. The five EDA
Rmds were discussed, along with estimated staffing expenses for the corning year. He indicated
that in 2015, the EDA could run out of money to finance expenses; therefore, the EDA needs to
find a reliable, reoccurring source of revenue to finance staff time and operating expenses. A
transfer from the General Fund can be made, or a separate EDA levy could be considered.
Treasurer Iverson explained that the TIF 2 Round Lake District has been ftmding the EDA
expenses for a number of years, but this district will decertify in 2015. She fiu-ther discussed the
staff expenses for the EDA.
EDA Commissioner Holden asked who provided personnel services to the EDA.
Secretary Klaers stated that these services were provided by Treasurer Iverson, Executive
Director Hutmacher, and himself.
Further discussion ensued regarding the EDA's goals and objectives, along with the history of
the EDA.
EDA Commissioner Holmes was in favor of considering an EDA levy in the future.
President Grant stated that this could be considered; but would need a great deal of discussion.
Secretary Klaers indicated that the EDA levy could be discussed fuuther at a future meeting. He
noted that there is a levy limit of 3% on the City General Fund for 2014. An EDA tax levy is
based on a percentage of the market value. The maxununi EDA levy in 2014 would be
approximately$187,700.
EDA Commissioner Holden cautioned the EDA from further raising fees and taxes on the
Arden Hills residents.
ARDEN HILLS EDA MEETING—JULY 29, 2013 4
EDA Commissioner McClung explained that a separate EDA levy would provide the public
with greater clarification of the fluids being used specifically for economic development. In
addition, a corresponding decrease in the general field levy could also be defined.
Treasurer Iverson requested that the EDA adopt the prelimm" a y budget for 2014.
MOTION: EDA Commissioner Werner moved and EDA Commissioner Holden
seconded a motion to approve the preliminary EDA budgets for 2014. The
motion carried unanimously (5-0).
5. UNFINISHED BUSINESS
A. EDA Revolving Loan Program
Community Development Intern Bachler discussed the EDA Revolving Loan Fund Program
with the EDA. He explained that after the passage of the Minnesota Business Subsidy Law, the
City's loan fund was now regulated by this I anv and must f of I ow certain gui del i nes and
requirements.
Secretary Klaers conunented that the EDA would need to update its existing guidelines, which
were established in 1997, to more closely match the new standards. In addition, the EDA should
establish goals for the loan program.
EDA Commissioner Holden asked if revolving loans could be made for less than $75,000.
Secretary Klaers stated that this could be done through the current program and internal
parameters could be established as such.
Further discussion ensued regarding the use of EDA revolving loans in the City.
President Grant reconunended this item be placed on a future agenda for further discussion on
the policy issues.
6. EDA COMMISSIONER COMMENTS
Norse.
7. STAFF COMMENTS
None.
ARDEN HILLS EDA MEETING—JULY 29, 2013 5
S. ADJOURN
MOTION: President Grant moved and EDA Commissioner Holmes seconded a motion
to adjourn the Economic Development Authority meeting. The motion
carried unanimously (5-0).
EDA President Grant adjourned the special Economic Development Authority meeting at 7:00
p.m.
Patrick Klaers David Grant
S ecretaiy EDA President
DRAFT
�S EN HILLS
Approved:
CITY OF ARDEN HILLS,MINNESOTA
SPECIAL ECONOMIC DEVELOPMENT AUTHORITY MEETING
AUGUST 269 2013
CITY COUNCIL CHAMBERS
CALL TO ORDER/ROLL CALL
Pursuant to due call and notice thereof, President Grant called to order the special
Economic Development Authority(EDA) meeting at 7:3 8 p.m.
Present: EDA President David Grant; EDA Commissioners Brenda Holden, Fran
Holmes, Dave McClung, and Ed Werner
Absent: None
Also present: Secretary Patrick Klaers; Executive Dit�ector Jill Hutinacher; Community
Development Intern Matthew Bachler; and Deputy Clerk Amy Died
1. APPROVAL OF AGENDA
MOTION: President Grant moved and EDA Commissioner Holmes seconded a motion
to approve the meeting agenda as presented. The motion carried
unanimously (5-0).
2. UNFINISHED BUSINESS
A. EDA Revolving Loan Program
Community Development Intern Bachler stated that the EDA Revolving Loan Fund (RLF)
was discussed at two previous EDA meetings. At these meetings, general background
information on the RLF was provided. Topics covered included the establislunent of the RLF,
the use of funds for business expansion projects, the current financial status of the RLF, and flow
the Minnesota Business Subsidy Law will impact the use of the RLF going forward. The RLF
currently has a cash balance of approximately$155,000.
ARDEN HILLS SPECIAL EDA MEETING—AUGUST 261, 2013 2
Community Development Intern Bachler indicated that the guidelines for the use of the RLF
were first adopted in 1997, and since then, have not been updated. At the end of July 29, 2013,
meeting, the EDA began to di scuss how the f unds i n the RL F cowl d be used to achi eve the City's
economic development goals and whether the RLF guidelines should be updated to reflect
changes in priorities.
Community Development Intern Bachler noted that loans issued through the RLF will be
regulated by the Minnesota Business Subsidy Law. Loans less than $75,000 are not considered
business subsidies and are exempt from the provisions of this law. Any revised guidelines will
need to be reviewed by the State Department of Employment and Economic Development prior
to EDA and City Council approval. Staff reviewed several questions and requested guidance
fi om the EDA on the Ci ty's goals and policies for the RLF.
Executive Director Hutmacher commented that the Ci ty's current RLF policy is stricter than
the State's pol i cy. She stated that the two key components within the policy at this time are for
the City to avoid loalns over $75,000 and grants over $25,000. With these parameters in hind,
she questioned how the Commission wanted to proceed with the program.
Discussion ensued regarding the State Business Subsidy Law, the City Business Subsidy Policy,
and the size and scale of potential loans within the RLF program.
President Grant was in favor of proceeding with smaller loans as thus would allow the program
to reach more businesses within the community.
EDA Commissioner McClung was not sure where he stood on this issue because the City had
little experience with the RLF program.
In response to the questions in the staff memo, EDA Commissioner Holden stated that she
supports loans for commercial fagade improvements, that projects should have a grade of B or
better, and that she was open to discussing forgiving a percentage of some loans.
EDA Commissioner Holden stated that one goal of the program may be to encourage home
occupations to expand into commercial areas within the City. She questioned if the EDC had
discussed this issue.
Executive Director Hutmacher explained that the EDC was waiting for EDA policy direction.
She questioned if the EDA wanted to consider partial forgiveness on the loans or the parameters
that should be set on the loans.
EDA Commissioner McClung envisioned that this program would assist small businesses with
expansion or to bring new businesses into the City. He noted that section 6.2.D of the City
Business Subsidy Policy identifies priorities for giving subsidies.
President Grant saw greater benefit in moving businesses to the commuunity.
ARDEN HILLS SPECIAL EDA MEETING—AUGUST 261, 2413 3
Discussion ensued regarding the PACE building and business.
EDA Commissioner Holmes asked i f i t was worth the A uthori tyI s ti me to revi ew and revi se thi s
progi am.
President Grant was in favor of giving the program a try and making the loans attractive enough
to small business owners to be pursued.
EDA Commissioner McClung recommended that the Authority allocate the funds available
with half set aside for facade improvements and the other half for business retention or
expansion.
President Grant asked if the Authority supported this recommendation.
EDA Commissioner Holmes recommended that the funds not be split in half because the City
cannot anticipate who will snake requests for the fiuids.
President Grant and EDA Commissioner Werner agreed.
President Grant inquired if the Authority wanted to push the program to the community or wait
for requests to come to the EDA.
EDA Commissioner Holmes wanted the loans to be selective with no high risk candidates. She
was not supportive of loans for equipment acquisition, working capital, or professional fees.
President Grant agreed with these suggestions, but recommended that the loans be low interest
and that they be repaid in five years. He was not supportive of grants or equipment loans.
EDA Commissioner Holden suggested that the loans have few restrictions so as to remain
attractive to business owners.
EDA Commissioner McClung wanted to see 1%-2% interest rates to assure the City is keeping
a balance in the revolving loan fund.
Executive Director Hutmacher thanked the EDA for their input this evening.
3. EDA COMMISSIONER COMMENTS
None.
4. STAFF COMMENTS
None.
5. ADJOURN
ARDEN HILLS SPECIAL EDA MEETING—AUGUST 261, 2013 4
MOTION: President Grant moved and EDA Commissioner McClung seconded a motion
to adjourn the special Economic Development Authority meeting. The
motion carried unanimously (5-0).
EDA President Grant adjourned the special Economic Development Authority meeting at 8:38
p.m.
Patrick Klaers David Grant
Secretary EDA President
NEW BUSINESS
EN HILLS
MEMORANDUM
DATE: October 281 2013
TO: Honorable Chair and EDA Commissioners
Patrick Klaers, Secretary
FROM: Sue Iverson, Treasurer
SUBJECT: EDA Budgets for 2014
Backeround/Discussion
Attached for your review are the preliminary 2014 EDA budgets. These budgets are: the
summary page showing of all the EDA budgets, the EDA General Fund, the Revolving
Loan Fund, TIF 21, TIF 31 and TIF 4.
At the last EDA meeting, a transfer was approved and a budget amendment to remove
non-tax increment revenues from TIF 2 and place them into the PIR Fund. This change
has been made and as a result the interest income in that fund has been revised. There
have not been any other major changes to these budgets since the last meeting.
Requested Action
The EDA is requested to approve the preliininaiy EDA budgets for 2014. (These budgets
are not dependent on a tax levy for revenues. These budgets may be revised prior to final
approval in November/December.)
Attachments
Preliminary 2014 EDA Budget
2014 PROPOSED BUDGET
City of Arden Hills
Economic Development Authority
October 28, 2013
EDA Funds Summary
Special Revenue Funds
Actual Actual Budget Amended Year To Date Proposed %Change
FY 2011 FY 2012 FY 2013 FY2013 10124/2013 FY 2014 13 vs 14
Operating Revenue
EDA General Fund 31,994 57,125 35,250 35,250 35,748 50,000 41.84%
EDA Revolving Fund 4,290 1,275 2,500 2,500 - 1,300 -48.00%
EDA TIF Dist#2 Round Lake 317,703 342,172 290.000 290,000 188,314 250,200 -13.72%
EDA TIF Dist#3 Cottage Villas 43,348 44,603 43,000 43,000 25,932 44.600 3.72%
EDA TIF Dist#4 Pres Homes - - - - 2,500 95.200 0.00%
Operating Revenues 397,334 445,175 370,750 370,750 252,495 441,300 19.03%
Other Financing Sources
EDA General Fund 12,600 189,955 - 30,000 30,000 50,000 66.67%
EDA Revolving Fund - - - - - - 0.00%
EDA TIF Dist#2 Round Lake - - - - - - 0.00%
EDA TIF Dist#3 Cottage Villas - - - - - - 0.00%
EDA TIF Dist#4 Pres Homes - - - - - - 0.00%
Other Financing Sources 12,600 189,955 - 30,000 30,000 50,000 66.67%
Total Revenues $ 409,934 $ 635,130 $ 370,750 $ 400,750 $ 282,495 $ 491,300 22.60%
Operating Expenses
EDA General Fund 3,506 53,916 86,048 86,048 41,221 97,882 13.75%
EDA Revolving Fund - - - - - - 0.00%
EDA TIF Dist#2 Round Lake 1,716 1,393 2,300 2,300 685 2,300 0.00%
EDA TIF Dist#3 Cottage Villas 2,245 1,484 4,400 4,400 685 4,700 6.82%
EDA TIF Dist#4 Pres Homes - 973 300 300 21,680 7,500 2400.00%
Operating Expenses 7,467 57,765 93,048 93,048 64,271 112,382 20.78%
Capital Outlay
EDA General Fund - 5,330 30,000 30,000 5,744 40,000 33.33%
EDA Revolving Fund - - - - - - 0.00%
EDA TIF Dist#2 Round Lake - - - - - 159,481 0.00%
EDA TIF Dist#3 Cottage Villas - - - - - - 0.00%
EDA TIF Dist#4 Pres Homes - - - - 5,367 - 0.00%
Total Capital Outlay - 5,330 30,000 30,000 11,111 199,481 564.94%
Other Finance Uses
EDA General Fund - - - - - - 0.00%
EDA Rewlv+ng Fund - - - - - - 0.00%
EDA TIF Dist#2 Round Lake 284,325 286,698 283,520 1.311,504 1,311,504 284,772 -78.29%
EDA TIF Dist#3 Cottage Villas - - - - - - 0.00%
EDA TIF Dist#4 Pres Homes - - - - - - 0.00%
Other Financing Uses 284,325 286,698 283,520 1,311,504 1,311,504 284,772 -78.29%
Total Expenditures $ 291,792 S 349,793 $ 406,568 $ 1,434,552 $ 1,386,886 $ 596,635 -58.41%
Fund Balances-January 1 1,548,617 1,666,759 1,952,096 1.952,096 1,952,096 918,294
Excess Revenue Over Expenditure 118,142 285,337 (35,818) (1,033,802) (1,104,391) (105,335)
Fund Balances-December 31 $ 1,666,759 $ 1.952,096 $ 1,916,278 $ 918,294 $ 847,705 $ 812,959
- 1 -
EDA GENERAL
Function: Economic Development
Supervisor: Community Development Director
Fund#: 250
Activity#: 47300
Activity Scope
This Special Revenue Fund accounts for general administration activities that are not
specific to any individual Tax Increment Financing(TIF)District, as well as activities
associated with the Economic Development Commission and Economic Development
Authority.
Objectives
1. Research the City revolving loan program,restrictions, guidelines, and possible
future uses.
2. Consider the use of TIF District 2 funds for Round Lake Road and sanitary sewer
improvements.
3. Consider the use of TIF District 3 funds for low to moderate housing needs.
4. Review operating budget and identify a sustainable funding source.
5. Consider establishing a business retention program.
Is-
1. Consistent administration of the City's policies,plan, ordinances, guidelines,
statutes, etc.
2. Promotion of industrial property available.
Measurable workload Data
None developed at this time.
Budget Commentary
The revenue to this fluid has been primarily excess increment and interest income
in the past years with transfers from the General Fund from 2008 -2011. A
transfer was made in 2012 and 2013 for the Conduit Debt revenue received in
2011 and 2012 from the Presbyterian Homes project. The tax increment excess
has risen substantially over the past three years, but a tax petition has caused this
to decrease recently and the total effect is not known. This funding source will go
away after 2015.
In 2008,the salary and benefit costs for this activity were transferred to the
General Fund in the Planning Department. At that time, there was a negative fund
balance and a transfer from the General Fund was set up to correct the negative
balance and fluid Gateway signs, 2012 and 2014 have budgeted transfers from the
-2-
PIR fund. As previously stated, transfers had been routine from 2008 through
2012.
With the 2012 budget, the salary and benefit costs had been transferred back to
the fiend as before. An administrative charge has also been added as this Was
established i i 2008 and all fields are charged back for overhead costs associated
with Administration, Finance and Administrative Services, and Government
Btllldillg departments iIl the General Fund. Other costs stich as auditing, financial
sof vare, IT, and ulster ance have been allocated to this felled also. The expenditure
budget shows are increase of 18.81% over 2013 primarily due to the fund covering
its fair share of the Audltiner, Software and Technology costs.
Bud et Summary
Function: Economic Development Department: EDA General Fund
Appropriation Detail
Actual Actual budget Amended Year to Date Proposed %Change
Activity FY 2011 FY 2012 FY 2013 FY2013 10/2412013 FY 2U14 13 vs 14
Revenues
Taxes 29.281 48,058 35,250 35,250 31,561 48,000 36.17%
Intergovernmental - - - - - - 0.00%
Miscellaneous 2,713 9,067 - - 4,187 2,000 0.00%
Other Financing Sources 12,600 189,955 - 30.000 30,000 50,000 66.67%
Total Revenues $ 44.594 $ 247.080 $ 35.250 $ 65,250 $ 65,748 $ 100,000 53.26%
Expenditures
Total Personal SeNces - 41,/29 43,3l9 43,3/9 36.214 45,245 4.30%
Total Materials and Supplies 306 - 1,200 1,200 - 650 -45.83%
Other Service Charges 3.200 12,187 41,469 41,469 4.947 51,987 25.36%
Capital Outlay - 5,330 30,000 30,000 5.744 40,000 33.33%
Total Expenditures $ 3.506 $ 59,246 5 116,048 $ 116,048 S 46.965 $ 137.882 18.81%
Fund Balance-January 1 68.554 109,642 297,476 297,476 " 297,476 246.678
Excess Revenue Over Expenditure 41,088 181.834 (80,198) (50,198) 18,183 (3(,882)
Fund Balance-December 31 $ 109.642 $ 291,416 5 216,618 $ 246,6(8 5 316,259 $ 208,t96
-3 -
EDA REVOLVING LOAN FUND
Function: Economic Development
Supervisor: Community Development Director
Fund#: 251
Activity#: 47306
Activity Scope
This Special Revenue Fund was established to administer economic development loans.
The primary revenue source is from investment income.
Obi ectives
1. To assist local businesses that meet the loan criteria established by the EDA.
Issues
1. Current economy does not lend itself to expansion or improvements.
2. Promoting the program to the community businesses.
Measurable Workload Data
None developed at this time.
Budget Coinimentary
There are currently no planned expenditures at this time. Activity in this fiend would
occur if the Economic Development Authority authorized a loan after an application is
made.
Budget Summary
Function:Economic Development Department: EDA Revolving Fund
Appropriation Detail
Actual Actual Budget Amended Year To Date Proposed %Change
Activity FY 2011 FY 2012 FY 2013 FY2013 10124/2013 FY 2014 13 vs 14
Revenues
Total Miscellaneous 4,290 1,215 2,500 2,500 - 1,300 -48.00%
Total Revenues $ 4,290 $ 1,215 $ 2,500 $ 2,500 $ - $ 1,300 -48.00%
Fund Balance-January 1 150,084 154,374 155,649 155,649' 155,649 158,149
Excess Revenue Over Expenditure 4,290 1,275 2,500 2,500 - 1,300
Fund Balance-December 31 $ 154.374 $ 155,649 $ 158.149 $ 158,149 $ 155.649 $ 159.449
-4-
ARPEN HILLS
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-5 -
EDA TIF DISTRICT #2 - ROUND LAKE
Function: Economic Development
Supervisor: Director of Finance and Administrative Services
Fund#: 252
Activity#: 47307
Activity Scope
TIF District No. 2, Round Lake Office,was established as a twenty-five year
Redevelopment District on June 29, 1989. This district is located on the northeast
quadrant of the I-35W/I694 intersection. This district will decertify on December 31,
2015.
Improvements for this district were funded with the issuance of$3,100,000 General
Obligation Tax Increment Bonds on March 1, 1998. Debt Service Fund No. 325 was
created, per statute,to track repayment of the bond principal and interest. An inter-fluid
loan from the Permanent Revolving Fund No. 411 was needed for the acquisition of the
Indykiewicz property. This loan was repaid in full in 2004. All non-tax increment
revenue was transferred out of this fund in 2013 to the PIR Fund.
Objectives
1. Utilize available TIF funds for part of the Round Lake Road iinprovement
project.
Is-
1. Ensure compliance with TIF laws for use of available funds.
Measurable Workload Data
None developed at this time.
Budget Commentary
There are no significant changes in this fiind in 2014 other than a reduction in interest
income as a result of the transfer out of non-increment fluids to the PIR Fund. Annual
transfers are made to Debt Service Fund No. 325 for principal and interest payments on
the G.O. Tax Increment Refiinding Bonds, 2004A.
-6-
Budpzet SLItylinary
.
Function: Economic Development Department: EDA T1F District#2 Round Lake Office Park
Appropriation Detail
Actual Actual budget Amended Year to Date Proposed %Change
Activity FY 2U11 FY 2012 FY 2013 FY2U13 1U12412013 FY 2014 13 vs 14
Revenue
Taxes 273,765 340,032 275,000 275,000 188.314 250,000 -9.09%
Miscellaneous 43,938 2,140 15,000 15,000 - 200 -98.67%
Total Revenue $ 317.703 $ 342.172 $ 290,000 $ 290.000 $ 188.314 $ 250.200 -13.72%
Expenditures
Other Services and Charges 1,t16 1,393 2,300 2,300 685 2,300 0.00%
Capital Outlay - - - - - 159,481 0.00%
Operating Trans 284,325 286,698 283,520 1,311,b04 1,311,504 284,112 -18.29%
Total Expenditures $ 286,041 $ 288,091 S 285,820 $ 1,313,804 S 1,312,189 $ 446,553 -66.01%
Fund Balance-January 1 1,201,847 1.233,508 1,287,590 1,287,590 " 1,287,590 263,786
Excess Revenue Over Expenditure 31.661 54,082 4,180 (1,023,804) (1,123,875) (196.353)
Fund Balance-December 31 $ 1,233.508 $ 1,287,590 $ 1.291.770 $ 263,786 $ 163,716 $ 67,433
-7-
EDA TIF DISTRICT #3 - COTTAGE VILLAS
Function: Economic Development
Supervisor: Director of Finance and Administrative Services
Fund#: 253
Activity#: 47305
Activity Scope
TIF District No. 3, Cottage Villas Housing, was originally certified as a Housing District
on May 10, 1993. This district is located on the east side of Cleveland Avenue,just south
of County Road E-2/Cleveland Avenue intersection. This 64 unit Cottage Villas
Apartment complex is available for low-moderate income seniors. Originally, this
district was set to decertify on December 31, 2009. In December, 2009, the City Council
extended this district until December 31, 2019, to allow the City the possibility of using
these ftmds for other affordable housing projects within the City.
The City entered into a"pay-as-you-go"agreement with Cottage Villas of Arden Hills
Limited Partnership on February 28, 1994. The Development Agreement called for the
developer to be reimbursed for certain public development activities initially estimated at
$834,286. Repayment to the developer would only be from tax increment actually
received from the district. Payments were to be 90% of the tax increment received not-
to-exceed a total annual payment of$5 7,5 5 7. The City is no longer obligated to make
payments after February 1, 2010.
Objectives
1. Utilize available fluids for low to moderate income housing projects.
Is-
1. Ensure use of funds is consistent with TIF laws.
Measurable Workload Data.
None developed at this time.
Budget Commentary
The City no longer has any obligations to pay the development as of Februaiy 1, 2010.
Only administrative costs have been planned for 2014.
-8-
Budeet Stininiar
Function:Economic Development Department: EDA T1F District#3 Cottage Villas
Appropriation Detail
Actual Actual Budget Amended Year To Date Proposed %Change
Activity FY 2011 FY 2012 FY 2013 FY2013 10/24/2013 FY 2014 13 vs 14
Revenues
Taxes 39,063 42,9/0 40,000 40,000 25,932 43,000 1.50%
Intergovernmental 77 - - - - - 0.00%
Miscellaneous 4,208 1,633 3,000 3,000 - 1,600 -46.67%
Total Revenues $ 43,348 $ 44,603 S 43,000 $ 43,000 S 25.932 $ 44,600 3.72%
Expenditures
Other Services and Charges 2.245 1,484 4.400 4,400 685 4,700 6.82%
Total Expenditures $ 2.245 $ 1,484 $ 4,400 $ 4,400 $ 685 $ 4,700 6.82%
Fund balance-January 1 128,133 169,235 212,354 212,354 ' 212,354 250,954
Excess Revenue Over Expenditure 41,102 43,119 38,600 38,600 25,24/ 39,900
Fund Balance-December 31 $ 169,235 $ 212,354 S 250,954 $ 250,954 5 237,602 $ 290,854
EDA TIF DISTRICT #4 - PRESBYTERIAN HOMES
Function: Economic Development
Supervisor: Director of Finance and Administrative Services
Fund#: 254
Activity#: 47308
Activity Scope
TIF district No. 4, Presbyterian Homes, was established as a 15 year renewal and
renovation district to facilitate the redevelopment of existing senor housing units and
replacement of existing nursing home units. The first increment is scheduled to be
received in 2014 with the districted expiring on December 31, 2029.
Objectives
1. Utilize Rinds for Presbyterian Homes project per the development agreement.
Is-
1. Ensure compliance with TIF laws for uses of available fluids.
Measurable Workload Data
None developed at this time.
Budget Commentary
No increment has been received as this district has not generated any income yet, but is
expected to in 2014. The current budget at this tune consists of administrative charges.
Budget SLin�iiiaiy
Function:Economic Development Department: EDA TIF District#4 Pres Homes
Appropriation Detail
Actual Actual Budget Amended Year To Date Proposed %Change
Activity FY 2011 FY 2012 FY 2013 FY2013 10/2412013 FY 2014 13 vs 14
Revenues
Taxes - - - - - 95,200 0.00%
Intergovernmental - - - - - - 0.00%
Miscellaneous - - - - 2,500 - 0.00%
Total Revenues $ - $ - $ - $ - $ 2,500 $ 95,200 0.00%
Expenditures
Total Materials and Supplies - - - - 3.522 - 0.00%
Other Services and Charges - 973 300 300 18,158 7,500 0.00%
Capital Outlay - - - - 5,36/ - U.UO%
Total Operating Expenses - 973 300 300 27,047 7,500 0.00%
Total Expenditures $ - $ 973 $ 300 $ 300 $ 27,047 $ 7,500
Fund Balance-January 1 - - (973) (973)' (973) (1,273)
Excess Revenue Over Expenditure - (973) (300) (300) (24.547) 87,700
Fund Balance-December 31 $ - $ (973) $ (1,273) $ (1,273) $ (25,520) $ 86,427
- 10-
Capital Improvement Plan 2014 thru 2018 Department Economic Development
City of Arden Hills, Minnesota Contact Community-Devl Dir
Pr of ect# 16-E DA-001 Type huprovement
Useful Life
Project Name Gateway Signs Category Economic Devl Improvement
Priority n:'a
Description Total Project Cost: $91.074
Install gateway sigiis at the major entrance points to the CitN,. Potential locations for the signs include: (1)Highway 96 at Round Lake Boulevard
and(2)at Lexington Avenue;(3)County Road E2 at I-35`,1(4)Coiinty Road E at Highway 51 and(5)at Lexington Avenue: (6)County Road D
at Cleveland Avenue(7)Lake Johanna Boulevard at the Roseville border;and(8)Lexington Avenue at the Roseville border. Potential sign
locations are listed from north to south and are not in priority order
A cost of$25.000 per sign,including installation.lighting,and landscaping is estimated. Actual costs may be more or less depending on the
amount of site unprovements and,,-'or landscaping that are necessary in a specific location.
In 2013.estimated costs include S20,000 for the corner of Lexington`Countv Road E(of which S5,050 will be paid throtigh a gi-ant.'donation)and
S33,000 for Lake Johanna Boulevard`Cowitv Road D(of which approximately S5,500 will be paid throiigh grants:'donatiolis). The City paid
S5..050 in 2012 towards the cost of the sign at Lake Johanna Boulevard:`County Road D.
Two additional signs are included for each of years 2014 and 2015_ The City Council will be asked to identify sign locations for 2014 and 2015.
Six total suns are included in the CIP.
Justification
Advance the economic development goals in the 2030 Comprehensive Plan Implement the Guiding Plan for the B2 District. work to better
identify the entrance points to the Cite--for btisinesses and`-isitors. Foster civic pride and community identity.
Prior Expenditures 2014 2015 2016 2017 2018 Total
7771� Construction/Maintenance 111L11 1111711 I1I17I1
Total Total 1111.11- rTTz>T MOT.
Prior Funding Sources 2014 2015 2016 2017 2018 Total
EDA Revenues
Total Total
Budget Impact/Other
Annual maintenance costs for sign cleaning and care of landscaped beds surrounding the signs is estimated by the Ptiblic works Department at
S500 per sign annually_
Budget Items 2014 2015 2016 2017 2018 Total
Annual Maintenance Charge TLTi fTTFTT
Total I M- 1111-11-
Produced Using the Plan-It Capital Planning Software Friday,October 25,2013
- 11 -
Capital Improvement Plan 2014 thru 2018 Department Street Department
City of Arden Hills, Minnesota Contact Public Nk"orks Director
Pr of ect# 14-St r-042 Type huprovement
Useful Life 20-21
Project Name West Round Lake Road PM P
Category Streets Reconstniction
Priority n."a
Description Total Project Cost: $2,627,650
Froini 1029'south ofCSAH 96 to 13th St NE
Tlus segment of Round Lake Rd is in poor condition.TIF proceeds can be spent on the reconstruction of the road and utilities.Also,PW believes
it nnay be possible to eliminate Lift Station#11 by laying gravity sanitary-'sewer along this alignment to the interceptor near the south end
Justification
History of wateimain breaks and needs upsizinfg from 8"to 12"
By extending sanitary sewer tioni LS#11..along H%vV 96 and south on Round Lake Rd innav be able to eliminate LS 11(needs to cost effective)
Storm sewer project must meet Rice Creek Watershed requirements.
Development of vacant property.
Cui-rent road 2005 PCI=46.2005 PCI=42
2005 AADT: 1400
Estimated increase m traffic from Traverse: 5500 trips per dad-
NOTE: This project has been nnoved back to 2014 due to the need to Use the excess TIF funds and the potential that this uuprovennent will provide
the opportunity to serve the south end of TCAAP_
Expenditures 2014 2015 2016 2017 2018 Total
Land Acquisition L1.11L1=1= [TIT LL
Construction/Maintenance I ILLIALIT I ILI 1 111 1
Total Irl_ntl_r SIT
Funding Sources 2014 2015 2016 2017 2018 Total
Sanitary Sewer Utility Fund TLC rrTrr�
State Aid Funds C1Lff17LC QLLIALI I=
Surface Water Mgmt Utility Fu I I I ITIT H 111-11-
TIF District rF FTFFF TT=
Water Utility Funds FFFIFFF 1 1 1 11.1 1
Total 1-F LILLIALU
Budget Iinpact/Other
The street has deteriorated past the point tivhere other forums of maienance are cost-effective. Long-term.reconstruction will provide a consistent
roadway section that will reduce costs associated with patching potholes and other pavement failures. Monitoring!'maintenance wil be required for
neN�,storniwater features that are not resident-inaintained rain gardens.
Produced Using the Plan-It Capital Planning Software Friday,October 25,2013
- 12-
NEW BUSINESS
EN HILLS
MEMORANDUM
DATE: October 285 2013
TO: Economic Development Authority
FROM: Patrick Klaers, Secretary
SUBJECT: Car r of I's
Back2round/Discussion
The City Council discussed the old Carrol I's Furniture Store building and property at the
October 21" work session. At this ineeting the Council expressed a desire to explore the
possibility of purchasing the property.
Staff has been in contract with the local broker for this property and will have a verbal
update for the EDA on the issues and options available to the City.
Attached i s some mated al on Carol I's taken f rom the Ramsey County GI S and websi te.
Ito,. CARROLL's FURNITURE
-AEN HILLS 1203 COUNTY f?oAD
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- County Road
Map Date: October 21, 2013 Property Boundary
P:1GIS DataTlanningTianning
Cases120131Carroll's Furniture
Tax and Property Look lip Information-Quick Info Page 1 of 1
Nome Site Map Contact Us
Tax & PropertyLook Up Information - uick Info
Home I I Information I I Property Look Utz Record Look Up Contact Us
New PtopgtSearch > Quick Information
c-ii�ck t4 Search Reckilts Go to E Pay(US[lank Browser Rt;g ts)
Quick Info
Prooerty Information Property Identification Number(PIN) 27.30.23.44.0003
Property Address 1203 County Road E W
.Je Municipality Arden Hills
Taxpayer Name and Address Watershed Rice Creek W/S
School District Number 621
Value Information Assessment Date 01-02-2012 01-02-2013
VTIt,}c History Tax Payable Year 2013 2014
Total Estimated Market Value $2,000,000 $2,000,000
Str4g ure Description Total Taxable Market Value $2,000,000 $2,000,000
Total Estimated Land Value $496,600 $397,300
SHIP Information Total Estimated Building Value $1,503,400 $1,602,700
Property Tax $80,282.00
`,oecial Assessments Special Assessments $0.00
Proimly Tax Payrnf-rit Total Property Tax+Special Assessments $80,282.00
Information Property Class Description Comm/Ind Comm/Ind
Prooerty Tax Payment History Year Built 1962
tt of Stories 1.00
2013 Value No i.e Residential Finished SQ Feet/Comm,Ind,Apt 40838
Bldg Area
Foundation Size
z013 Property Tax Statement
The Plat or Section/Township/ Range and Legal Description listed below may be an
2.013 Payment Stubs abbreviated legal description-Do not use to prepare legal documents
2.013 Proposed Tax Notice Section/Township/ Range 27-30-23
Plat 27/30/23
2012 Value Notice Legal Description W 250 rt Of S 243 Ft Of Se 1/4 Of Se 1/4(subj
To determine whether your property is To Rd And Esmts)In Sec 27 Tn 30 Rn 23
2012 PM erty Tax Statement Abstract or Torrens,call(651)266-2000
2011 Value Noti�e
Most Recent Sale
Sale Date 01-15-2002
2011 Prgverty Tax Statement Sale Price $1,725,000
Certificate of Real Estate Value Number 299853
Sale Status Comm Qualified Sale
2010 Value Notice Sale Description
')010 Prooerty Tax Stalernent
Minnesota State l or m r.11 1 ell �)�t : l.I`f 4 C
Database Last Refreshed 10-25-2013 05:28:00
Copyright 2003 Ramsey County
Email:Ask ProofrtyraxandkecordsPco.!a-i)Sey•mil us
2xt only:On i Off i Site 11-1(jex I Policies at)c)Practices i Contact Lis I Horne
http:ir'rrinfo.co.ramsev.mn.uslpuhlicl'characteristic/1'arccl.aspx?scrn=Quick&pin=273023440003&cnt-0 10/25/2013
Proposed 2013 273023440003
Ramsey County 2013 Proposed Property Tax
This Is NOT a bill-- Do Not flay
R'T�=s., .'IN 1'rt�li�l'1�"RCCOI-dS LIJ)d Re\'CftuC
90 West Ptaic Blvd • "airt rat.l f,fl,• Phone:h;1.i;i>?.;':'0 •Web:w-Aw.co.rarnsey.mn.usiprr• Email:M"skPropertyTax and Reccrds&o.rarnsey.mmus
PINlProperty Address/Abbreviated Tax Description
273023440003 2517
1203 COUNTY ROAD E W
SECTION 27 TOWN 30 RANGE 23
ROSENTHAL R E HOLDING LLC W 250 FT OF S 243 FT OF SE 114 OF SE
CIO CARROLLS FURNITURE INC D AND ESMTS)IN SEC 27 TN 30 RN 23
14841 COPPERFIELD PL
WAYZATA MN 55391-2505
I�l�ll�ll'ii'lll'll'l'�'IIIlllllllll���ll��l�ll�l'll' Illll'�"'
For taxos payable For taxes payable in
in 2012 in 2013
Property Classification Commilnd Comm/Ind
Estimated Market Value S2,124,800 S2,000,000
Green Acres Value 0 0
Plat Deferment 0 0 Your Taxable Market Value foe property tax payanle in
This Old House Exclusion 0 0 2013 was sent to you in the spring of 2012.The period
Disabled Vets Value Exclusion 0 0 to discuss possible changes nas passed and changes
Homestead Market Value Exclusion 0 0 can no longer be made to your property valuation. d is
Taxable Market Value S2.124.800 S2,000,000 included here for your information or..-
Column(1) Column(2)
Mailing Address and Phone Numbers 2012 Tax-Actual 2013 Tax-Proposed Tax and Budget Meetings and Locations
Ramsey County 15.151.42 15.007.95 Rosevi le Area High Schooi Capetena
Regional Rail Authority 1,160.51 1,128.19 1240 Ca Rd 82 li est,Roseville,MN
Public Safety Radio System 109.04 99-84 November 26,2012-6:30 p.m.
County Library 1.171.70 1.145.90
Ramsey County Managers Off"
15 Vd Kd'*gg 131vd,Suite 250
St Paul,MN 55102
1 266-20jT,
ARDEN HILLS 6,845.69 6,946.57 COUNCIL CLAMBERS
1245 WEST HWY 96
CITY OF ARDEN HILLS ARDEN HILLS,MN
1245 HIGHWAY 96 W DECEMBER 10,2012 7:00 PM
ARDEN HILLS MN 55112-5400
(651)792-7800
State General Tax 21,332.21 20,802.50 No Meeting Required
ISD#621 SNAIL LAKE EDUCATION CENTER
ISD 621 350 WEST HIGHWAY 96
350 WESTHIGHWAY 96 SHOREVIEW,MN 55126
SHOREVIEW MN 55126 DECEMBER 11,2012 6.00 PM
(651)621-6017
a.Voter approved levies 6.647.07 6,600.1.5
b.Other local levies 5,650.24 5.305.69
Metropolitan Soec,al Tax.rg Districts 878.17 834.76 Council Chambers
Metropolitan Council 390 Robert St N
390 Robert St.N St Paul.MN
St Paul,MN 55101 December 12,2012 -6:00 PM
16511602-1446
Other special taxing districts 629.36 576.77 t'-4D Meeting Required
Tax increfren, 0.00 0.00 to Meeting Required
Fiscal disparity 21.215.10 21,947.68 No Meel:ng Required
I:
Total Tax excluding special assessments 80,790.51 80,398.00
Percent of Tax Change -0.5%
Your local units of government have proposed the amount of property taxes that they will need for 2013. Column(1)above shows your a.twal
2012 property taxes. Column(2)above shows what your 2013 property taxes will be if your local jurisdictions approve the property tax
amounts they are now considering. Any upcoming referendums,legal judgments,natural disasters;voter approved levy limit increases,or
special assessments could change these amounts.
Your county commissioners,school board,city council,and metropolitan special taxing districts will soon be holding public meetings to discuss
their proposed 2013 budgets and proposed 2013 property taxes.The school board will discuss the 2012 budget. You are invited to attend these
meetings to express your opinion. The meeting places and times are listed above. Also shown are the addresses and telephone numbers
for these local units of government If you have comments or questions concerning the proposed property tax amounts shown on this notice. No
meeting is required if your city has a population of less than 500 people. There is also no public hearing on the state general tax
isNOTa ill- DoNotPa`h sy
For additional information about this notice, visit: www.co.ramsey.mn.us/prr
Please see the back of this notice for more information on available
appeals and programs that may reduce your property tax.
NEW BUSINESS
EN HILLS
MEMORANDUM
DATE: October 285 2013
TO: Economic Development Authority
FROM: Patrick Klaers, Secretary
SUBJECT: TIF District 3 (Cottage Villas)
Back2round/Discussion
Discussing the use of the Cottage Villas TIF District fund balance was included in the
2013 EDA work plan for October 2013 and January 2014.
By way of background information on TIF 3, attached is part of an early 2012 TIF
summary memo (prepared by Sue Iverson) that went to the City Council. This
information is still relevant and the current status of the fund balance is included in the
budget material that is in this agenda packet. The projected fluid balance at die end of
2013 is $250,954. The fund balance has been increasuig by about $40,000 per year.
I would like to defer discussion on the District until 2014. In 2014, staff will be working
with Ehlers to help analyze this District and how the Raids can be spent. There is no
urgency to snake a decision on how these fluids should best be used as the District does
not expire until 2019.
The ma.iil restriction on the use of these fields is that they need to be spent on qualified
low and moderate income housing projects. Also, it should be noted that receiving future
fields depends on the current owners of Cottage Villas continuing to comply with the low
and moderate income housing requirements.