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Home My WebLink About04-08-08 Chair Scott Bronson 1245 W. Highway 96 Committee Members �RnEI HILLS Arden Hills, MN 55112 Maurice Gieske _ 651.792.7800 Al Hilgers Jeff JohnsonArden Hills www.ci.arden-hills.mn.us James Ostlund Council Liason Financial Planning and Stan Harpstead Analysis Committee April 8, 2008 City Vision A strong community that values our unique environment, our fiscal soundness, and our tradition as a desirable city in which to live, work, and play. Agenda Regular Committee Meeting Convenes 6:00 PM Call to Order 1. APPROVAL OF THE AGENDA 2. MINUTES A. February 12, 2008 Regular Meeting 3. UNFINISHED AND NEW BUSINESS A. Update on TCAAP—Stacie Kvilvang B. Business Subsidy Policy • 4. REPORTS A. Report from the City Council B. Financial Planning and Analysis Committee Comments and Requests 5. ADJOURNMENT A quorum of the City Council may be present at this meeting. • MINUTES DR EEN HILLS • FINANCIAL PLANNING&ANALYSIS COMMITTEE Tuesday, February 12, 2008 6:00 P.M. Upstairs Conference Room, Arden Hills.City Hall CAL L L MEETI NG TO ORDER AN D ROLL O CALL:::»>::.: The meeting wa s called to order by Jim Ostl und and MEMBERS PRESENT: Maurice Gieske; Stan Ha ' 4 ad,.•council Liaison:...•A1 t:l. ers• Jeff Johnson; Jim Ostlund MEMBERS NO T PRES ENT: Scott Brons on OTHERS PRESENT: Sue Iverson, Finance Director; Joe Rue cc unting Analyst; Kristine Gig a, Civil Engineer 1. APPROVAL R O OF AG ENDA G NDA Motioned: Jeff John son son Secon ded:ded: Al Hilgers ers • 2.A APPROVAL OF January,; 2008 MINUTES One correction noted and":. er,pari 4.A. "...manufactured honitkl r, ted along H `101 " Motioned: Jeff Johnson. Seconded: ll' lgers 3.A. Assessment Polcy;. scssion- Continued Kris::G1 t mmarized the'a s ent policy discussion from the Januarymeeting. P Y g T t eAssessment: Johnson as f the City anYP has hadproblems dtoin assessments up`f ;;U w t as decided to kee thtime of the assessment u front ats theg Cit can refund any ovrnts. The 2040ssessments came in very close to the actual bids. Reconstructioniii is may; t semore su rise ex enses as it may uncover other replacement Mill & overlay projectr `assessed over five years. Complete reconstruction projects are assessed over ten years. Assessments cannot last longer than the life of the asset. In 2006 approximately 2/3 of'assessments are paid up-front. We will always recover our money. Residents have the ability to pay off the assessment right away or they can make installments with interest. S MINUTES EN HILLS 111 Outstanding Discussion: Still need to address the percentage of assessments. There is a need to clarify how we determine number of units or the per unit equivalence for assessments. It was recommended to let the planning commission give feedback as to what to how to approach commercial properties, as well as multiple frontage lots. It was recommended to have a clause stating that some properties may be assess on a case by case situation. Corner lots are assessed only on the actual address. Should the City get assessed? Discussion touched on the possibilities of the City`boessment exempt and/or being assess the same as other properties. There' s nothing p the policy stating whether or not city properties are exempt. Are the current assessment rates for commercial proprtt and residential properties>s t appropriately? How are double frontage lots asses§ e? Giga provided a background of how Roseville funds their street:pr j;e;cts. Roseville created a two prong funding approach using bonds and assessrr is<.';':,: :„...996 they created an infrastructure fund; tax payers pay a lttt each year towards`ti i fund, resulting in a lower assessment. How much does i ecollect ever <year i r3`,y nto that fund from taxes? Has the City looked at the long term if assessments are the best option? We are going to get into the long range financial plan;looking towards the fut are and how we want to pay for things. • We do not have a project for 2008 s we are not in a:t t` e'crunch to get this policy completed; our next reconstutio : roject will be summer 2009. 3.B. Capital<;T 1 .ent .::............... Finance Director I erso i l: iga gaveexplanation of the formatting of the CIP book. Hlgers recommend that.the City lks at the possibility of sharing equipment with; oscville to decrease t ;e;; i st of equipment. It was also recommended to combine so.m :: jrations. We may w'aittoave Greg Hoag, Public Works Director,join us to d sc :t ese options. Mayor H r Lead would like this group to focus more on the s iiifeediiii&i9f the CIP. Look ir t xds streets and new fire departments. Parks and Trails h ::newer:been economically balanced with the rest of the needs of the City. Roads arer ateE�:�r�`a` vezia'et condition Index PCI . ( ) evaluate the roads; roads are rate : t 4:to 100. A rating of 0-30 i We have a consultant s "poor" and needs to be reconstructed. 4.A. Report from the City Council Sue created a new chart of accounts. Staff is currently working on the Capital Improvement Plan(CIP). The old city hall property is going out for a RFP; it could potentially be residential land. S MINUTES -- IDEN HILLS Traverse Business Center is still waiting on a committed tenant. Mayor Harpstead anticipates that the developer may request ramp support and road improvements. This is a running TIF district; we have needs for this funding. This district is a pre-1990 district which means the funds can be used outside the district. TCAAP—the GSA negotiations moved forward in January the purchase document there is an escape clause for the developer and the City statiglut can rescind our purchase agreement and get our earnest money back#NYphAili.,0000ving the rescinding date back to give us more protection. ioburied: € ta "' ment is a credit category mechanism. The GSA has indicated that the:land h n dis s;lbee tit te:d;from$:80 million but has not provided anyre proof when we uestedit.We purchased it for***OF million and the $35 million discount was a function:'''»`''<' ` olition and the re Lotion c�i'tk�ed�xu e pxepa for development. A confidentiality agreement has beOkagiWboyveen GSA and'' developer; the City is being left out of this agreement`to keep kedWaffiiikrmation confidential. If the City is involved all information must be pubnation. There are 12 categories within this agreement. One categ dry includes the move ent of the water purification system. Another category s'th cl :.cost of the and, which contains high levels of metal. This clean u ill'gett <l ;d€hp to standards for residential homes. They agreed on all 11 st gories<t 1 o`i Y ;xo:negotiating dollar amounts for each category. The agreement states tat the development cannot start until all the negotiations are done. Density oftlleproje Thereplenty of space for the residential demand and the comru ial..density shoul0,he,n r>the original estimates. We • still have property access issues;:ithijMue can jeopardized'the whole deal. The City is still searching fora ity Administration. . . ...........:. ...................................................... ...................................................... ........................... .......................... .......................... .......................... ...................................................... ........................... .......................... .................................................... .......................... ........................... PTRC is working n t o trails alongalthiggowtyl,Road E and Old Snelling. This has not gone through r a�:<t��i'uxc�lx ox�tk�e d::tpa.tkpot adequate funding for this project. They a:041001g fiirai*ilghoojpg refere d t Lastl'< t `e B2 district which is width:of the railroad tracks and north of County Road E fromt nelling to Lexington, a moratorium on all building jeopardized the sale of the old Hol da` :We don't want an empt buildingthat does not paytaxes. The small group y:.:::::::.:::: pY g p plan is gig through a RFP thatwll`probably come back with recommendations as to what to do itk this whole area<to t pgrade it from a commercial status. The next potential areaikthokakwyrioy Fox area. It would be to the Cities advantage to have a plan of what we` tto's0edeveloped in that area as we do not want something developed that we ca not 64filtrol. • MINUTES -- R EN HILLS B. Financial Planning and Analysis Committee Comments and Requests NEXT MEETING AGENDA—March 11 th, 2008 5. ADJOURNMENT Motioned: Jeff Johnson Seconded: Al Hilgers Scott Bronson, Chair Susan K``Ivcnsnance Director • • -AS. EN HILLS MEMORANDUM DATE: April 3, 2008 TO: Financial Planning and Analysis Committee FROM: Sue Iverson, Finance Director SUBJECT: TCAAP & Business Subsidy Policy BACKGROUND • Stacie Kvilvang will be present to update the committee on TCAAP. When the project gets further along, the committee will be asked to comment on various financial aspects. This will be a good opportunity to let the committee know the status of the project is and an estimated timeline. The Economic Development Commission (EDC) has been working on a Business Subsidy Policy. Attached is a draft of the policy in its current form. DISCUSSION The EDC is expected to finalize the document in April and recommend it to the Council for adoption. The Financial Planning and Analysis Committee (FPAC)has been asked to review the policy and provide comments to the City Council. ACTION Discussion and comments for the City Council on the Business Subsidy Policy. • \\Metro-inet\ArdenHills\Admin\Committees\FPAC\2-12-08-CIP Plan.doc SIN HILLS • _City of Arden Hills Business Subsidy Criteria Adopted , 2008 1. PURPOSE AND AUTHORITY 1.1 The purpose of this document is to establish the criteria for the City of Arden Hills/Arden Hills EDA (the Grantor) for granting of business subsidies for private development within the City,with the exception of the Twin Cities Army Ammunition Plant(TCAAP) property, which has a separate public financing policy. These criteria shall be used as a guide in the processing and reviewing applications requesting business subsidies. 1.2 The City's/EDA's ability to grant business subsidies is governed by the limitations established in Minnesota Statutes 1167.993 through 1167.994 (Statutes). The City/EDA may choose to apply its Business Subsidy Policy to other development activities not covered under this statute. 1.3 Unless specifically excluded by the Statutes,business subsidies include grants by state or local government agencies, contributions of personal property, real property, infrastructure, the principal amount of a loan at rates below those commercially available to the recipient of the subsidy, any reduction or deferral of any tax or any fee, tax increment financing, abatement of property taxes, any guarantee of any payment under any loan, lease, or other obligation,or any preferential use of government facilities given to a business. • 1.4 These criteria are to be used in conjunction with other relevant policies of the Grantor. 1.5 The City/EDA may deviate from these criteria by documenting in writing the reason(s) for the deviation. The documentation shall be submitted to the Department of Trade and Economic Development with the next annual report. 1.6 The Grantor may amend this document at any time. Amendments to these criteria are subject to public hearing requirements contained in the Statutes. 2 PUBLIC PURPOSE REQUIREMENT 2.1 All business subsidies must meet a public purpose with measurable benefit to the City as a whole. Public purpose may include, but not be limited to, the creation of needed services or facilities not currently available, provide a variety of housing ownership Deleted:N:\Minnsota\Arden alternatives and housing choices, redevelop and remove blight and encourage Hills\TCAAP\TIF1Business Subsidy redevelopment in the commercial and industrial areas of the City in order to encourage Policy\Business Subsidy Public Financing Policy-Draft 2-26-08.doc Page 1 of 7 C:\Documents and Settings\joe.rueb\Local Settings\Temporary Internet Files\OLK9B\Business Subsidy Public Financing Policy-Draft 2-26-081.doc • high levels of property maintenance and private reinvestment in those areas, retain local jobs, increase the job base, and provide diversity in that job base, enhance existing jobs through increased wages, encourage additional unsubsidized private development in the • area, either directly,or through secondary"spin off' development, offset increased costs of redevelopment over and above those costs that a developer would incur in normal urban and suburban development,and meet other uses of public policy, as adopted by the Council/EDA from time to time including the promotion of quality urban design, quality architectural design, energy conservation, decreasing the capital and operating costs of local government,etc. 2.2 The creation or retention of jobs may be, but is not required to be, a public purpose for granting a subsidy. The determination that jobs are not a public purpose for the subsidy and that the related wage and job goals are zero shall be made following a public hearing. If job goals are set at zero, the recipient will be required to meet other measurable, specific and tangible goals, to accomplish one or more of the public purposes described in Section 2.1. 2.3 Job retention may only be used as a public purpose in cases where job loss is specific and demonstrable. The City shall document the information used to determine the nature of the job loss. 2.4 The creation of tax base shall not be the sole public purpose of a subsidy. 2.5 The creation of jobs is a public purpose for granting a subsidy.Creation of at least 1 FTE job is a minimum requirement for consideration of assistance. 2.6 The wage floor for wages to be paid for the jobs created shall be not less than 150% of the State minimum wage in effect at the time the subsidy is granted. The City will seek to create jobs with higher wages as appropriate for the overall public purpose of the subsidy. Wage goals may also be set to enhance existing jobs through increased wages, which increase must result in wages higher than the minimum under this Section. • 3. CITY'S OBJECTIVE FOR THE USE OF PUBLIC FINANCING 3.1 As a matter of adopted policy,the City of Arden Hills may consider using Tax Increment Financing(TIF)and other forms of public financing,such as tax abatement, Bonds,,and other forms as appropriate, to assist private development projects when such assistance complies with all applicable statutory requirements to achieve one or more of the following purposes: A. Remove blight and/or encourage redevelopment in designated redevelopment/development area(s) per the goals and visions established by the City Council 3.2 To achieve the following housing-related goals: A. Toprovide a balanced and sustainable housingstock to meet diverse needs both Deletes: P\MinBusmensota raSn Hills\TCAAP\TIF\Business Subsidy today and in the future Policy\Business Subsidy Public Financing Policy-Draft 2-26-08.doc Page 2 of 7 C:\Documents and Settings\joe.rueb\Local Settings\Temporary Internet Files\OLK9B\Business Subsidy Public Financing Policy-Draft 2-26-081.doc B. To ensure all housing is safe and well-maintained C. To promote neighborhood stabilization and revitalization by the removal of blight 411 and the upgrading of existing housing stock. 3.3 To retain local jobs and/or increase the number and diversity of quality jobs 3.4 To encourage additional unsubsidized private development in the area, either directly or through secondary"spin-off'development. 3.5 To offset increased costs for redevelopment over and above the costs that a developer would incur in normal urban and suburban development (determined as part of the But- For analysis). 3.6 To facilitate the development process and to achieve development on sites which could not be developed without this assistance. 3.7 To meet other uses of public policy, as adopted by the City Council from time to time, including but not limited to promotion of quality urban design, quality architectural design, energy conservation, sustainable building practices, decreasing the capital and operating costs of local government. 4. COSTS WHICH MAY QUALIFY FOR PUBLIC FINANCING ASSISTANCE 4.] Although it is understood that State Statute limits the types of assistance, providing assistance to underwrite some or all of the following costs are consistent with the City of Arden Hills goals To the extent that development could not occur without such assistance: A. Project design fees including utilities,landscape,architectural,and engineering design B. Site-related work, including earthwork/excavation, soil correction, landscaping, utilities, streets and roads, street/parking lot paving, street/parking lot lighting, curb and gutter,and sidewalks C. Land acquisition D. Special assessments E. Soil tests F. Environmental studies G. Relocation assistance H. Replacement or cleanup of contaminated soils which would otherwise preclude redevelopment I. Rehabilitation Deleted:N:\Minnsota\Arden J. Any other costs allowable by state statute and approved by the City Council Hills\TCAAP\TIF\Business Subsidy Policy\Business Subsidy Public Financing Policy-Draft 2-26-08.doc Page 3 of 7 C:\Documents and Settings\joe.rueb\Local Settings\Temporary Internet Files\OLK9B\Business Subsidy Public Financing Policy-Draft 2-26-081.doc • 5. PROJECTS WHICH MAY QUALIFY FOR PUBLIC FINANCING ASSISTANCE All new applications for assistance considered by the City of Arden Hills must meet each of the following minimum qualifications and will also be evaluated based on their ability • to meet the desired qualifications for assistance. However, it should not be presumed that a project meeting any of the qualifications will automatically be approved for assistance. Meeting the qualifications does not imply or create contractual rights on the part of any potential developer to have its project approved for assistance. 5.1 Minimum Qualifications: A. In addition to meeting the applicable requirements of State law,the project should meet one or more of the Public Financing Objectives outlined in Section 3; but at a minimum shall either: 1. Remove blight and/or encourage redevelopment in the City in order to encourage high quality development or redevelopment and private reinvestment in those areas;OR 2. Facilitate the development process and to achieve development on sites which would not be developed without this assistance. B. The developer must demonstrate to the satisfaction of the City that the project is not financially feasible "but for" the use of tax increment or other public financing. C. The project must be consistent with the City's Comprehensive Plan and Zoning Ordinances,Design Guidelines or any other applicable land use document. D. Prior to approval of a financing plan, the developer shall provide any requested market and financial feasibility studies, appraisals, soil boring, private lender commitment, and/or other information the City or its financial consultants may • require in order to proceed with an independent evaluation of the proposal. E. The developer must provide adequate financial guarantees to ensure the repayment of any public financing and completion of the project. These may include, but are not limited to, assessment agreements, letters of credit, personal deficiency guarantees,guaranteed maximum cost contract,etc. F. Any developer requesting assistance should be able to demonstrate past successful general development capability as well as specific capability in the type and size of development proposed. Public Financing will not be used when the developer's credentials, in the sole judgment of the City, are inadequate due to past history relating to completion of projects, general reputation, and/or bankruptcy,or other problems or issues considered relevant to the City. G. The developer, or its contractual assigns, should retain ownership of any portion of the project long enough to complete it, to stabilize its occupancy, to establish project management and/or needed mechanisms to ensure successful operation. Deleted:N:\Minnsota\Arden Hills\TCAAP\TIF\Business Subsidy Policy\Business Subsidy Public Financing Policy-Draft 2-26-08.doc Page 4 of 7 C:\Documents and Settings\joe.rueb\Local Settings\Temporary Internet Files\OLK9B\Business Subsidy Public Financing Policy-Draft 2-26-081.doc • H. Enter into a Development Agreement crafted to meet the conditions of the actual project. 5.2 Desired Qualifications: A. Proposals creating a higher ratio of property taxes paid before and after redevelopment will receive priority consideration. B. Proposals should not be used to support speculative industrial,commercial, office or housing projects. In general the developer should be able to provide market data,tenant letters of commitment or finance statements which support the market potential/demand for the proposed project. C. Public Financing will not be used in a project that involves an excessive land and/or property price. This will normally be where the acquisition price is more than 20%in excess of market value as determined by an independent appraisal of the property (exclusive of relocation benefits). The City shall commission an appraisal and the cost will be paid from Developer's escrow. D. Public Financing will not be used in projects that would give a significant competitive financial advantage over similar projects in the area due to the use of public subsidies. Developers should provide information to support that assistance will not create such a competitive advantage. Priority consideration will be given to projects that fill an unmet market need. E. TIF and abatement will be provided on a pay-as-you-go-basis. Any request for upfront assistance will be evaluated on its own merits. F. Public Financing will not be used for projects that would generate significant environmental problems in the opinion of the local, state, or federal governments. Priority will be given to projects that aim to clean-up existing contaminated sites and would facilitate the location of an industry or business that has an 4111 environmentally-sound track record,or that meets a housing need in the City. G. Preference will be given to projects that meet good public policy criteria as determined by the City Council,including: 1. High project quality (e.g. sound architectural design, quality construction and materials,sustainable building practices) 2. Projects that provide significant improvement to surrounding land uses, the neighborhood,and/or the City 3. Projects that provide a significant increase in tax base 4. Projects that provide significant new,or retained employment 5. Projects that meet financial feasibility criteria established by the City 6. Projects that provide the highest and best desired use for the property Deleted:N:\Minnsota\Arden Hills\TCAAP\TIF\Business Subsidy Policy\Business Subsidy Public Financing Policy-Draft 2-26-08.doc Page 5 of 7 l C:\Documents and Settings\joe.rueb\Local Settings\Temporary Internet Files\OLK9B\Business Subsidy Public Financing Policy-Draft 2-26-081.doc 6. PUBLIC FINANCING PRINCIPLES 6.1 General assumptions of redevelopment shall serve as a guide for the public financial assistance policies. These assumptions are as follows: 6.2 All requests for assistance shall be reviewed by a third party financial advisor who will inform the City of its findings and recommendations. 6.3 The City shall establish mechanisms within the development agreement to ensure that adequate checks and balances are incorporated in the distribution of financial assistance where feasible and appropriate,including but not limited to: A. Third party review of the"but for"analysis B. Establishment of"look back provisions" C. Establishment of minimum assessment agreements 6.4 The City will elect the fiscal disparities to come from inside applicable TIF district(s)to eliminate any impact to the existing tax payers of the community. 6.5 The City will target up to the maximum allowed by State Statute of tax increment for administrative purposes. 6.6 The developer shall proactively attempt to minimize the amount of public assistance needed through the pursuit of grants, innovative solutions in structuring the deal, and other funding mechanisms. 7. PUBLIC FINANCING PROJECT EVALUATION PROCESS 7.1 The following four methods of analysis for all Public Financing proposals will be used: • A. Consideration of project meeting minimum qualifications B. Consideration of project meeting desired qualifications C. Project meets"but-for"analysis and/or statutory qualifications D. Project is deemed consistent with City's Goals and Objectives Please note that the evaluation methodology is intended to provide a balanced review. Each area will be evaluated individually and collectively and in no case should one area outweigh another in terms of importance to determining the level of assistance. 8. APPLICATION FOR PUBLIC FINANCING ASSISTANCE 8.I The application process is a two-step process and must be completed in accordance with required application procedures. The purpose of this approach is to give an applicant the Deleted:N:\Minnsota\Arden opportunity to present a development proposal without expending a great deal of money Hills\TCAAP\TIF\Business Subsidy Policy\Business Subsidy Public . . _ Financing Policy-Draft 2-26-08.doc Page 6 of 7 C:\Documents and Settings\joe.rueb\Local Settings\Temporary Internet Files\OLK9B\Business Subsidy Public Financing Policy-Draft 2-26-081.doc • and time in pursuing a development that may conflict with the City's goals and objectives. • 8.2 The City's public financing program will be administered by the City of Arden Hills. The City will require a non-refundable application fee in the amount of $2,000 for its processing of the application. The application fee shall be paid to the City at the time a final Public Financing Application is submitted. 8.3 At the time a final Public Financing Application is submitted, the applicant shall also deposit $10,000 with the City to cover attorney and consultant costs incurred as part of amending or establishing a TIF district or abatement, drafting and negotiating a development agreement,and conducting any fiscal analysis that may be required to meet the requirements of utilizing any public financing. ;If additional expenses are incurred beyond the $10,000, prior to the execution of a development agreement, the City shall notify the applicant in writing and the applicant will be required to deposit additional funds upon notice. 8.4 If the project is approved and the applicant proceeds with the project,the City shall reimburse the applicant any unused portion of the deposit as of the date of execution of the development agreement. If the applicant does not proceed with the project, the City shall reimburse the applicant for the unused portion of the deposit, less expenses incurred but not yet billed, as of the date that the City is notified in writing that the applicant desires to withdraw its application. 9. SUBSIDY AGREEMENT 9.1 In granting a business subsidy, the Grantor shall enter into a subsidy agreement with the recipient that provides the information, wage and job goals(if applicable), commitments to provide necessary reporting data and recourse for fail to meet goals required by the Statutes. • 9.2 The subsidy agreement may be incorporated into a broader development agreement for a project. 9.3 The subsidy agreement will describe the requirements for the recipient to provide the reporting information required by the Statutes. Adopted by City of Arden Hills Economic Development Authority Adopted by Arden Hills City Council Deleted:N:\Minnsota`.Arden Hills\TCAAP\TIF\Business Subsidy Policy\Business Subsidy Public Financing Policy-Draft 2-26-08.doc Page 7 of 7 IC:\Documents and Settings\ioe.rueb\Local Settings\Temporary Internet Files\OLK9B\Business Subsidy Public Financing Policy-Draft 2-26-08 1.doc • MINUTES -A HILLS • FINANCIAL PLANNING & ANALYSIS COMMITTEE Tuesday, February 12, 2008 6:00 P.M. Upstairs Conference Room, Arden Hills City Hall CALL MEETING TO ORDER AND ROLL CALL The meeting was called to order by Jim Ostlund at 6:01pm. MEMBERS PRESENT: Maurice Gieske; Stan Harpstead, Council Liaison; Al Hilgers; Jeff Johnson; Jim Ostlund MEMBERS NOT PRESENT: Scott Bronson OTHERS PRESENT: Sue Iverson, Finance Directo ", oe Rueb, Accounting Analyst; Kristine Giga, Civil Engineer 1. APPROVAL OF AGENDA Motioned: Jeff Johnson Seconded: Al Hilgers • 2.A APPROVAL OF January 8th, 200. . S One correction noted under .A. "...manufactured homes ate wy 10/96." s Motioned: Jeff John 414 x,. Seconded: Al 3.A. Assessment Policy Disc's n - Continued Kris Giga summarized the assessment policy discussion from the January meeting. Time of assessment: Johnson asked if the City has had any problems doing assessments up front. It was decided to keep the time of the assessment upfront as the City can refund any over assessments. The 2007 assessments came in very close to the actual bids. Reconstruction projects may cause more surprise expenses as it may uncover other replacement needs. Mill & overlay projects are assessed over five years. Complete reconstruction projects are assessed over ten years. Assessments cannot last longer than the life of the asset. In 2006 approximately 2/3 of assessments are paid up-front. We will always recover our money. Residents have the ability to pay off the assessment right away or they can make installments with interest. • MINUTES EN HILLS • Outstanding Discussion: Still need to address the percentage of assessments. There is a --. a larify how we determine number of units or the per unit equivalence for assessme ts. It was recommended to let the planning commission give feedback as to „what-to h•w to approach commercial properties, as well as multiple fro a lots. It was eco •• -nded to have a clause stating that some properties may be ass s o case by case situation. Corner lots are assessed only on the actual address. S s •r- 'ty get assessed? Discus '.5 ouched on the possibilities of the City bein ,aSses� empt and/or being asse s t same as other properties. There is nothing . the I. '• • stating whether or not city properties are exempt. Are the current assessment rates for commercial properties and residential properties set appropriately? How are double frontage lots assessed? Giga provided a background of how Roseville funds th-ir street projects. Roseville created a two prong funding approach using bonds a assessments. In 1996 they created an infrastructure fund; tax payers pay a Litt - ear towards this fund, resulting in a lower assessment. How much doe -'osevi a Ilect every year into that fund from taxes? Has the City looked at the long term if assessmen _ e the best option? We are going to get into the long range financial plan loo , the future and how we want to pay III for things. We do not have a project for 200 o w. in a time crunch to get this policy completed; our next reconstructionf ect-wi 1 be summer 2009. 3.B. Capital Improveme Ian ew Finance Director Iverson a `= Riga e an explanation of the formatting of the CIP book. Hilgers recommended th City looks at the possibility of sharing equipment with Roseville to decrease the cos of equipment. It was also recommended to combine some operations. We may want to have Greg Hoag, Public Works Director,join us to discuss these options. Mayor Harpstead would like this group to focus more on the strategic side of the CIP. Look towards streets and new fire departments. Parks and Trails have never been economically balanced with the rest of the needs of the City. Roads are rated on a Pavement Condition Index (PCI). We have a consultant evaluate the roads; roads are rated from 0 to 100. A rating of 0-30 is "poor" and needs to be reconstructed. 4.A. Report from the City Council Sue created a new chart of accounts. Staff is currently working on the Capital Improvement Plan (CIP). The old city hall property is going out for a RFP; it could potentially be residential land. • MINUTES -AN HILLS • Traverse Business Center is still waiting on a committed tenant. Mayor Harpstead anticipates that the developer may request mow support and road improvements. This is a running TIF district; we have needs for this funding. This district is a pre-1990 district which means the funds can be used outside the district. TCAAP-the GSA negotiations moved forward in January. In the purchase document there is an escape clause for the developer and the City stating that we can rescind our purchase agreement and get our earnest money back. We have been moving the rescinding date back to give us more protection. (Also,bttrrec in the agreement is a credit category mechanisms)The GSA has indicated that the land has been endiscountedsfrom $80 million but has not provided any proot when we regt*cs4cd it. -We purchasedt4-for$15 million and the $35 million discount was a function of the demolition and the preparation for development. A confidentiality agreement has been signed between GSA and .4 developer; • • • I ' n isesofteleft/ial. ' n. There cfr are72 cate ones within thi3 agrccmcrit. One cate Ludes the movement of the tfri water purification system. Another category is t - clean ost of the land.wrizh . This clean up w ��•get ;i e landi p to standards for greed '*an now negotiating / � residential homes. on all 12 cat c�`'� k�a�acto ne otiatin dollar amounts for each category. The agreement states ra; t the development cannot start until all t ons are . Density of - here is plenty of space for the elpiaA esidential demand and the commercial dery hould be near the original estimates. We still have property access issues; th'a e cF eopardized the whole deal. The City is still searching for a ne°,, Administration. a VP' ` PTRC is working on two t �s alori_ ounty Road E and Old Snelling. This has not gone fl through as the funding for „larks,,t, d trails is not adequate funding for this project. They are looking towards ab " w,,efcicuduiii. 4,( -N 1% �- opt-'°'"-S Lastly, the B2 district which is south of the railroad tracks and north of County Road E from Snelling to Lexington, ld -Holiday-Inn. We don't an-Holiday-Inn. � . The small group plan is going through a RFP that will probably come back with recommendations as to what to do with this whole area to upgrade it from a commercial status. The next potential area is the Red Fox/Gray Fox area. It would be to the City, advantage to have a plan of what we want to see developed in that area as we do not want something developed that we cannot control. • MINUTES -ilJDEN HILLS • B. Financial Planning and Analysis Committee Comments and Requests NEXT MEETING AGENDA—March l 1 th, 2008 5. ADJOURNMENT Motioned: Jeff Johnson Seconded: Al Hilgers Scott Bronson,Chair S n K.Iverson,Finance Director • •