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Home My WebLink AboutEDA MIN 08-20-02COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) REGULAR MEETING MINUTES OF AUGUST 20, 2002 CALL TO ORDER - The Regular Meeting of the Columbia Heights Economic Development Authority (EDA) was called to order by President Ruettimann at 7:06 p.m., Tuesday, August 20, 2002, in the City Hall, Police/Fire Training Room, 590 40th Avenue NE, Columbia Heights, Minnesota. ROLL CALL Commission Members Present: Commission Members Absent: Staff Present: Robert Ruettimann, Patricia Jindra, Marlaine Szurek, Gary Peterson, Julienne Wyckoff, Bobby Williams and Bruce Nawrocki Walt Fehst, Executive Director Bob Streetar, Deputy Executive Director Randy Schumacher, Community Dev. Assistant Cheryl Bakken, Secretary Mark Nagel, Housing Assistant CONSENT AGENDA Approval of Minutes Move to adopt the minutes of the July 16, 2002, regular meeting as presented in writing. Financial Report and Payment of Bills Move to approve Resolution 2002-11, Resolution of the Columbia Heights Economic Development Authority (EDA) approving the financial statements for July, 2002 and approving payment of bills for July, 2002. MOTION by Peterson, second by Jindra, to adopt the consent agenda items as listed. All ayes. Motion Carried. ITEMS FOR CONSIDERATION Resolution 2002-12, Recommending Setting the EDA 2003 Levy Streetar stated that on an annual basis the EDA is required to adopt a Resolution recommending setting the EDA Levy for the coming year. Staff recommended $140,569, which is $3,554 higher than last year and is the maximum amount that we can levy this year under the State Statute. Streetar stated the Budget and Levy, will be reviewed in more detail at the EDA 's, September 17th meeting. MOTION by Peterson, second by Williams, to Adopt EDA Resolution 2002-12, being a Resolution of the Columbia Heights EDA recommending the preliminary EDA Levy. All ayes. Motion Carried. Tax Increment Financing Status Report Streetar stated the Board requested staff provide an updated status report of the Tax Increment Financing Districts. Revenues collected from districts A3 , C7, C8 and K2 are pooled into one Economic Development Authority Meeting Minutes August 20, 2002 Page 2 of 3 fund and are pledged to pay off obligations that include bonds issued in 1990 and 1991 and a City Interfund Loan. In the year 2002, there is a deficit of approximately $400,000. Deficits are anticipated from 2003 through 2008, assuming no change in current property tax laws. They are expected to range from $123,000 to $199,000 annually and beginning in 2009 the pool will generate a surplus. In 2000, the City received a $300,000 grant from the State to cover a TIF deficit that occurred in 1999. Revenues collected from districts N7, M8, P3/P4, and R8 meet current obligations and are expected to meet future obligations. Ruettimann indicated he previously asked staff to provide a large map showing all TIF districts. Streetar stated the GIS department is working on the maps and they will be provided to the Board next month. Nawrocki requested Ehlers provide documentation from the late 80's or early 90's were a tax break was given to the properties in the Central Business District, to determine which years the agreement applied to. Ruettimann requested Ehlers provide a breakdown of each TIF district: 0 why they were developed; 2) how it impacted the City; 3) current status; and 4) their future projection. Eldridge, Ehler & Associates agreed to provide the information. Shelly Ruettimann requested the Board meet with the City Council on the funds the City owes the EDA from the Crest View rewrite and some other administrative funds that are due to the EDA for funding the project. Williams, asked what steps need to be taken to remove the deficit. Eldridge stated they are trying to find the combination of options to minimize or eliminate the deficit. Some options would be: 1) obtain bonds; 2) a forgiveness of loan agreement; or 3) tax the residents. Municipal State Aid for Redevelopment Streetar stated at the July EDA meeting the Board requested a map showing the relationship between potential City redevelopment opportunities and the roads for which the City receives Municipal State Aid (MSA). Streetar explained that the maps show three redevelopment opportunities: 1) the industrial site; 2) 39th and Central (Mady 's); and 3) 3 7th and Central. Kevin Hansen stated construction funds for 2003 and 2004 have been encumbered for the Central Avenue project. Therefore, the MSA funds won't be available for redevelopment until 2005. State Aid does not fund items identified as local responsibilities such as sewer, water, streetscaping or non-roadway related items. ADMINISTRATIVE REPORTS Industrial Area Redevelopment Plan Streetar stated that in the meetings between staff and United Properties it was discovered they would be hiring an architectural firm to work on the plan. Staff contacted Mark Koegler from the Hoisington Koegler Group Inc. to work with United as they have developed the Medtronics Economic Development Authority Meeting Minutes August 20, 2002 Page 3 of 3 study and helped the City write the grant for the $50,000 to do the Industrial Park Study, which will save the City money. Staff has started working on Phase I of the plan. The final plan should be ready for the City Council meeting of September 9ta. Ruettimann expressed his concern that none of the developers indicated they don't have the staff to develop the plan for the City. Streetar stated United is the best company to do the development and to bring in companies to fill the units. ADJOURNMENT President, Ruettimarm, adjourned the meeting at 8:15 p.m. Respectfully submitted, Cheryl Bakken Recording Secretary H:~EDAminutes2002\8-20-2002