HomeMy WebLinkAboutEDC 12-01-2004
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CITY OF ARDEN HILLS, MINNESOTA
ECONOMIC DEVELOPMENT COMMISSION
DECEMBER 1, 2004, 7:00 A.M.
CITY HALL 2ND FLOOR CONFERENCE ROOM, 1245 WEST HIGHWAY 96
Vice-Chairman Kunkel called the meeting to order at 7:15 a.m.
Those in attendance: Chair Aplikowski (arrived at 7:20 a.m. ), Vice Chair Bruce Kunkel,
Commission members Kevin Kelly, Ray McGraw, Dale Beane, Chris Ashbach, Jim Paulet and
Ed Werner. Staff: Scott Clark, Michele Wolfe, Peter Hellegers: Guest: Sid Inman, Ehlers and
Associates: Council member Lois Rem.
Mr. Clark gave a status report on the City/Army meeting of December 1,2004, Future TCAAP
related meetings were noted including December 8, 2004 (Nuclear Regulatory Meeting) and
January 13,2004 (Master Planning Advisory), Mr. Clark also discussed that the financial
modeling process has begun with Ehlers and that the process will be completed by early January.
Mr. Sid Inman, Ehlers and Associates made a presentation on how a third party financial
consultant reviews the need for financial assistance on redevelopment projects, The highlights of
his presentation (including observations by staff and questions by Commissioners) follows:
- The dynamic conflict between a City and developer is that both operate with separate
e models ( profit vs. policy implementation)
- All analysis needs to meet a "but for" test which means that but for assistance the
project would not be built.
- The Office of the State Auditors will be issuing guides regarding "but for" tests
The need to know the deal by the policy makers is key in helping answer questions
and educating the general public on why assistance is being given and the
ramifications
Discussed the issue of look back and protecting the City from not providing
assistance that is not needed
- Policy considerations for the City include minimum time for assistance, minimum
amount, risk tolerance, fiscal disparities election, etc, Restrictions can be place on the
increment or assistance but needs to be measured back to the ability to do the deal.
Caution against guaranteeing an income stream
- Discussed the difference in general obligation bonds, revenue bonds and pay-as-you
notes
Need to relook at business subsidy policy of the City
Develop a communication plan/public relations on financial decisions being made
Discussed the overall concepts of internal rates ofretum vs. cash flow. Also
illustrated different types of businesses and needs (e,g. townhouse devcloper needs an
8 to 10% return and a restaurant will need 25%
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ECONOMIC DEVELOPMENT COMMISSION MINUTES
DECEMBER 1, 2004
e Commission member Ashbach motioned and Commission member Kelly seconded to approve
the minutes of the November 17, 2004 EDC meeting, The motion carried unanimously.
Chairman Aplikowski stated the next meeting will be in January with a date to be announced.
Meeting adjourned at 8:40 a.m.
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