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HomeMy WebLinkAbout07-29-13 -- RDEN HILLS Approved: October 28, 2013 CITY OF ARDEN HILLS, MINNESOTA ECONOMIC DEVELOPMENT AUTHORITY MEETING JULY 29, 2013 6:00 PM—ARDEN HILLS CITY HALL II I 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 29, 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 None. 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 2 District 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 2 District has over $1 million in funds that can be used for any City approved project or activity without restrictions. Another $159,481 in funding 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 2 District funds in the amount of$159,481 to be used for the RLR project. Treasurer Iverson discussed the finances in further 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 fund the difference between the TIF funds available and the estimated project cost. Public Works Director Maurer indicated that half of the project costs are for buried utilities, and these expenses can be funded through the Sanitary Sewer and Water Funds. EDA Commissioner Holmes questioned why MSA funds are not proposed for this project. President Grant stated that some MSA funds can be used to assist in funding this project and that more would be known after the feasibility report is complete. EDA Commissioner Holden asked where the TIF 2 District funds will be placed in the budget. ARDEN HILLS EDA MEETING—JULY 29, 2013 3 Secretary Klaers recommended that the funds 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 (5-0). B. 2014 EDA Budgets Secretary Klaers reviewed the preliminary 2014 budget in detail with the EDA. The five EDA funds were discussed, along with estimated staffing expenses for the coming 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 funding the EDA expenses for a number of years, but this district will decertify in 2015. She further 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 further 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 maximum 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 funds being used specifically for economic development. In addition, a corresponding decrease in the general fund levy could also be defined. Treasurer Iverson requested that the EDA adopt the preliminary 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 law and must follow certain guidelines and requirements. Secretary Klaers commented 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 recommended this item be placed on a future agenda for further discussion on the policy issues. 6. EDA COMMISSIONER COMMENTS None. 7. STAFF COMMENTS None. ARDEN HILLS EDA MEETING—JULY 29, 2013 5 8. ADJOURN MOTION: President Grant moved and EDA Commissioner Holmes seconded a motion to adiourn 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 Secretary EDA President