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Agenda Item 3. HRA Meeting Minutes – Tuesday, August 18, 2015 Page 11 1 2 At the request of Member Majerus, Ms. Kelsey confirmed that Fund 724 could be used for 3 parcel assemblage as well. Member Majerus asked the HRA Finance Subcommittee how they 4 determined the amount allotted for economic development efforts. 5 6 Chair Maschka responded that if the HRA intended to get into economic development, 7 specifically in Twin Lakes as clearly directed by the City Council, Mr. Bilotta thought this 8 offered a great opportunity to leverage dollars for rehabilitation of existing warehouse facilities 9 similar to those already revitalized. Chair Maschka identified $300,000, with Ms. Kelsey 10 noting the $26,000 was allotted for managing the program. 11 12 Member Majerus asked the anticipated return on investment (RIO); with Chair Maschka 13 responding that projection would be forthcoming in the near future. Member Majerus noted 14 that if the private sector wasn’t going to get involved, this appeared to be the best way with the 15 HRA taking the charge in prompting that redevelopment. 16 17 In the joint meeting of the HRA and City Council, Member Etten noted several 18 Councilmembers expressing interest in the HRA getting more involved with sector 19 opportunities and beyond housing; noting that, as a member of the HRA Finance 20 Subcommittee, this was a reaction to that directive. If this budget is approved, Member Etten 21 noted the plan would provide the HRA the ability to step up with a program with the intent to 22 move quickly in creating parameters as to that might be achieved. 23 24 Member Majerus applauded Chair Maschka and gave him credit, noting this had been his 25 brainchild for a long time, and expressed appreciation that it was now finally coming forward. 26 27 Member Wall expressed discomfort in this preliminary budget information coming to the 28 Board at the eleventh hour; with Ms. Kelsey apologizing and explaining that it had been in 29 process for some time. 30 31 Member Wall stated his need to look at and absorb these figures; and as much as he favored 32 economic development having served in the past as president of both the Roseville and 33 Suburban Chambers of Commerce, he felt the $300,000 was a little fuzzy without a clear 34 picture of how much ROI the HRA could expect from those efforts. Member Wall asked how 35 much if any carryover there was from the previous budget. 36 37 Ms. Kelsey responded that, at this point projected from the 2015 budget for 2016 was 38 approximately $70,000 by yearend. 39 40 Member Wall noted another concern he had was with administrative costs coming on the tails 41 of discussing the contract, with the cost coming down substantially. Member Wall sought 42 clarified that if the preliminary levy was adopted tonight, that number could be further reduced 43 but not increased; and asked when the next opportunity would be available to look at this for 44 further reduction. 45 46 Ms. Kelsey responded that if adopted by the HRA Board tonight, it would move to the City 47 Council for their review and approval on August 24, 2015– as noted in an earlier e-mail to the 48 Board today – providing for their approval by the statutorily required preliminary levy 49 adoption date for the HRA. Ms. Kelsey noted her request that the HRA be in attendance and 50 available for discussion at that meeting. Ms. Kelsey advised, that if the City Council passes 51 the preliminary HRA levy, they will most likely also provide instruction to the HRA – as they 52 had done consistently over the years – that they provide all due diligence to reduce the 2016 53 levy request between now final City Council approval and 2016 levy adoption. Ms. Kelsey 54 noted that this provided the HRA with an opportunity at their September, October and 55 November meetings to gain a better idea of the actual cash carryover and budget elements for