HomeMy WebLinkAboutEDA MIN 12-06-04ECONOMIC DEVELOPMENT AUTHORITY (EDA)
SPECIAL MEETING MINUTES
DECEMBER 6, 2004
CALL TO ORDER/ROLL CALL
President, Murzyn called the meeting to order at 6:39 p.m.
Present:
Don Murzyn Jr., Patricia Jindra, Julienne Wyckoff, Bobby Williams and Bruce
Nawrocki, Tammera Ericson, and Bruce Kelzenberg
PLEDGE OF ALLEGIANCE ~
Nawrocki wanted it in the minutes that he objected to the call for the meeting, as he calle~ back
with alternative dates that worked for him, which were not considered and stated all public
meetings should be held whenever all members can be present.
ITEMS FOR CONSIDERATION
RESOLUTION 2004-18~ CONSIDERATION OF A PLEDGE AGREEMENT FOR THE
G.O. TAX INCREMENT FUNDING BONDS
Streetar stated Mark Ruff, Ehlers & Associates was present to explain this document. Ruff
stated the City Council approved the issuance of $1,985,000 in General Obligation Tax
Increment Refunding Bonds, which will result in a substantial savings in the EDA's Tax
Increment Funds, savings of approximately $244,000 in today's money, because they are Tax
Increment Bonds and because the EDA controls the use of Tax Increment the Tax Increment
Pledge Agreement must be signed. The EDA would formally pledge the Tax Increment to those
bonds. The reason for the special meeting is that the closing is to be held next Thursday,
December 16th.
Nawrocki asked if the EDA issued the original bonds and what is the project for. Ruff stated the
original document states the HRA, with the EDA as the successor, and the project is to authorize
the use of tax increment as the primary source to pay the bonds.
Ruff stated the total amount of debt service was $3.185 million from 2006-2009, but with the
proceeds of $765,000 left over to help pay down it takes the $920,000 down to $640,000 due to
1) cash to pay down and 2) lower interest rates for a total of a million dollar savings to the City.
Nawrocki stated on page 3, #6 it says Hennepin County. Ruff stated it was a typographical error
and would have it changed.
Wyckoff asked when would they see the money and where will it go. Ruff stated in 2006 they
would see the money and it would be up to the EDA to decide what they wanted to do with it.
MOTION by Williams, second by Ericson to waive the reading of Resolution 2004-18, there
being an ample amount of copies available to the public. All ayes. Motion Carried.
MOTION by Williams, second by Jindra, to Adopt Resolution 2004-18, a Resolution
Authorizing Execution of a Tax Increment Pledge Agreement with the City of Columbia Heights,
Minnesota relating to the General Obligation Tax Increment Refunding Bonds, Series 2004A of
Economic Development Authority Meeting Minutes
December 6, 2004
Page 2 of 2
the City of Columbia Heights, Minnesota. All ayes. Motion Carried.
Williams commended Streetar, Ruff and Fehst for putting this together for the board.
ADJOURNMENT
President, Murzyn, Jr., adjourned the meeting at 6:55 p.m.
Respectfully submitted,
Cheryl Bakken
Community Development Secretary
H:~EDAminutes2004\