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City of Centerville <br />Council Meeting Minutes <br />August 28, 2019 <br /> <br />1. Res. #19-0XX – Transfer of Property to EDA <br /> <br />Administrator Statz stated that the City has several small remaining marketable parcels: northwest <br />corner of Main Street and Centerville Road (23-31-22-22-0005, 23-31-22-22-0004, 23-31-22-22- <br />0011, 23-31-22-22-0010 and 23-31-22-22-0009) approximately a half acre and the northeast <br />corner of Main Street and Progress Road (23-31-22-21-0051 and 23-31-22-21-0058) also <br />approximately a half acre which has been discussed by Council in the past. He stated that they are <br />fairly difficult to market and have been in the past. He suggested that Council could transfer the <br />parcels to EDA and let them determine the best method for marketing. He stated that the proceeds <br />would go to the EDA to fund their mission of encouraging new businesses, relocation of existing <br />businesses and assisting current businesses with their needs. <br /> <br />Mr. Steve King, 1724 Sorel Street, had concerns about when the EDA was originally formed as to <br />their duties, authority and Council control. Administrator Statz stated that they would have the <br />power to market the property, accept those proceeds for a capital fund and utilize those funds and <br />have a budget. He also stated that they do not have the authority to spend more than they have or <br />to levy independent taxes. He explained that some EDAs have taxing authority. It was thought <br />that the proceeds would create a working capital for them without increasing the city’s budget. <br /> <br />Administrator Statz explained the differences between an Economic Development Commission <br />who only has the ability to make recommendations to Council or an Economic Development <br />Authority which has many more abilities such as selling, marketing, developing and buying of <br />property, etc. <br /> <br />Attorney Glaser stated that if Council were to transfer the property to them, then the EDA could <br />exercise their power that they always have had. <br /> <br />Council Member Koski stated that he believes that when the Council previously formed the EDA <br />he was under the impression that he was voting for an EDC with recommendation ability only. <br /> <br />Council Member Love stated that he believes when the EDA was originally formed it was <br />discussed at length regarding their authority. <br /> <br />Lengthy discussion ensued regarding the proceeds from land sales going to pay down bonds/debt, <br />Finance Director DeJong reviewed previous land sales and property taxes and anticipated payoff <br />by February 1, 2020, what they have completed with the $20,000 budget to date, uniqueness of <br />properties, who markets the property, whose time is utilized to take care of this issue (staff, EDA <br />or Council), two (2) Council Members seated on the EDA, cable casting of EDA meetings and <br />funding to do so. <br /> <br />Tom Wilharber, 6849 Centerville Road, stated that when he was reelected to Council in 2009 these <br />parcels were to be marketed, now they are not and he agrees that Council should not give the <br />property to an EDA. <br /> <br />Administrator Statz stated that the EDA hired a consultant for a TIF district in the downtown <br />($11,000), has had Anoka County Economic Development staf and staff from Open to Business at <br />EDA meetings. Council Member Koski had many concerns regarding funding, the budget, <br />Page 5 of 8 <br /> <br /> <br />