Loading...
HomeMy WebLinkAbout2008 03-24 EDAP EDA MEETING City of Brooklyn Center March 24, 2008 AGENDA 1. Call to Order —The EDA requests that attendees turn off cell phones and pagers during the meeting. A copy of the full City Council packet, including EDA (Economic Development Authority), is available to the public. The packet ring binder is located at the front of the Council Chambers by the Secretary. 2. Roll Call 3. Approval of Agenda and Consent Agenda —The following items are considered to be routine by the Economic Development Authority (EDA) and will be enacted by one motion. There will be no separate discussion of these items unless a Commissioner so requests, in which event the item will be removed from the consent agenda and considered at the end of Commission Consideration Items. a. Approval of Minutes 1. March 10, 2008 Regular Session 4. Commission Consideration Items a. Resolution Approving the Modification of the Tax Increment Financing Plan for Tax Increment Financing District No. 3 -Requested Commission Action: Motion to adopt resolution. 5. Adjournment EDA Agenda Item No. 3a r MINUTES OF THE PROCEEDINGS OF THE ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND THE STATE OF MINNESOTA REGULAR SESSION MARCH 10, 2008 CITY HALL COUNCIL CHAMBERS 1. CALL TO ORDER The Brooklyn Center Economic Development Authority (EDA) met in Regular Session called to order by President Tim Willson at 7:43 p.m. 2. ROLL CALL President Tim Willson and Commissioners Dan Ryan, and Mark Yelich. Absent conducting official City business: Commissioners Kay Lasman and Mary O'Connor. Also present were Executive Director /City Manager Curt Boganey, Public Works Director /City Engineer Todd Blomstrom, Community Development Director Gary Eitel, City Attorney Charlie LeFevere, and Carol Hamer, TimeSaver Secretarial, Inc. 3. APPROVAL OF AGENDA AND CONSENT AGENDA Commissioner Yelich moved and Commissioner Ryan seconded approval of the Agenda and Consent Agenda, and the following item was approved: 3a. APPROVAL OF MINUTES 1. February 25, 2008 Regular Session Motion passed unanimously. 4. COMMISSION CONSIDERATION ITEMS 4a. RESOLUTION NO. 2008 -03 OPTING NOT TO WAIVE LIMITED TORT LIABILITY FOR 2008 Mr. Boganey introduced the item and noted it was just approved at the City Council meeting. Commissioner Yelich moved and Commissioner Ryan seconded adoption of RESOLUTION NO. 2008 -03 Opting Not to Waive Limited Tort Liability for 2008. Motion passed unanimously. 03/10/08 -1- DRAFT 4b. RESOLUTION NO. 2008 -04 APPROVING CHANGE ORDER NO. 1, ACCEPTING WORK PERFORMED AND AUTHORIZING FINAL PAYMENT, PROJECT NO. 2007 -15, TIF DISTRICT 3 REGIONAL STORM WATER TREATMENT IMPROVEMENTS Mr. Boganey introduced the item discussed the history, and stated the purpose of the proposed resolution. Commissioner Ryan moved and Commissioner Yelich seconded adoption of RESOLUTION NO. 2008 -04 Approving Change Order No. 1, Accepting Work Performed and Authorizing Final Payment, Project No. 2007 -15, TIF District 3 Regional Storm Water Treatment Improvements. Motion passed unanimously. 5. ADJOURNMENT Commissioner Yelich moved and Commissioner Ryan seconded adjournment of the Economic Development Authority meeting at 7:50 p.m. Motion passed unanimously. 03/10/08 -2- DRAFT EDA Agenda Item No. 4a COUNCIL ITEM MEMORANDUM TO: Curt Boganey, City Manager FROM: Tom Bublitz, Community Development Specialist• DATE: March 20, 2008 SUBJECT: Resolution Approving the Modification of the Tax Increment Financing Plan for Tax Increment Financing District No. 3 Recommendation: It is recommended that the Economic Development Authority (EDA), following consideration of this matter, approve Resolution Approving the Modification of the Tax Increment Financing Plan for Tax Increment Financing District No. 3. Background: In the mid 1990's, the City of Brooklyn Center was the beneficiary of Special State Legislation that exempted the City's Tax Increment Financing (TIF) District No. 3 from Local Government Aid (LGA) and Homestead Agricultural Credit Aid (HACA) reductions which, without the Special Legislation, would have been imposed on the City. The LGA and HACA penalties were a result of a State Law that required LGA and HACA be reduced for Municipalities creating TIF Districts after April 30, 1990. The trade off for the LGA and HACA reduction exemption was that the City was required to create a Housing Development Account in which 15 percent of annual TIF revenues had to be deposited. The Housing Development Account is intended to fund housing activities that meet the requirements of a "qualified housing district pursuant to certain State Statutes. Essentially, the Housing Development Account must be spent for housing activities that fund income restricted or affordable housing. The Housing Development Account, by Law, is a special account and funds in the account must be, as stated in the Special Legislation, "expended according to the TIF Plan The current TIF Plan No. 3 lists the following Housing Development Account activities: Property Acquisition of Multi Family Units Rehabilitation of Multi- Family Units i Acquisition of Blighted Single- Family Housing Rehabilitation of Blighted Senior Housing The resolution before the EDA would amend the TIF Plan No. 3 by adding" acquisition of single family housing, rehabilitation of single family housing and environmental remediation of single and multi family housing properties to the list of approved Housing Development Account activities. The environmental remediation would allow the expenditure of Housing Development Account funds to address potential environmental remediation in homes in the 57th and Logan neighborhood soil vapor intrusion investigation area, should it be necessary. It would also add single family rehabilitation and single family acquisition to the list of eligible Housing Development Account activities in the TIF 3 Plan. In addition to establishing the Housing Development Account and authorizing certain housing activities, the Special Legislation also requires that Housing Development Account funds must be expended on properties owned or rented by households of certain incomes. The income restrictions on the Housing Development Account funds are as follows: For owner occupied housing, expenditure of funds are limited to households at 100 percent of area or statewide median gross income (for a family of two or less) and 115 percent of area or statewide median gross income (for a family of three or more). In each case, area median or statewide median gross incomes are used, whichever is greater. For rental properties, the household income limits for Housing Development Account funds are 20 percent of households must be at 50 percent of median or less, or 40 percent of households must be at 60 percent of median income or less. For Brooklyn Center, the Minneapolis /St. Paul Metro area median income exceeds the statewide median income. The 2008 Minneapolis /St. Paul Metro area median income, as determined by the Department of Housing and Urban Development (HUD), is $80,900. A breakdown of the various median income percentages is as follows: 115% $93,055 100% $80,900 60% $48,540 50% $40,450 Budget Issues: There are no General Fund Budget issues. Commissioner introduced the following resolution and moved its adoption: EDA RESOLUTION NO. RESOLUTION APPROVING THE MODIFICATION OF THE TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. 3 BE IT RESOLVED by the Board of Commissioners of the Brooklyn Center Economic Development Authority, Minnesota as follows: Section 1. Recitals. 1.01. The Brooklyn Center Economic Development Authority, Minnesota (the "Authority has heretofore established the Housing Development and Redevelopment Project No. 1 (the "Project Area pursuant to Minnesota Statutes, Sections 469.001 to 469.047 and adopted a Redevelopment Plan therefore, as modified (the "Redevelopment Plan The Authority also established the Tax Increment Financing District No. 3 (the "TIF District within the Project Area and adopted a Tax Increment Financing Plan therefore (the "TIF Plan all pursuant to and in accordance with Minnesota Statutes, Sections 469.174 to 469.1799. 1.02 The Authority has caused to be prepared a modification to the TIF Plan. The modification to the TIF Plan modifies the categories of expenditures of tax increments within the amount set forth in the existing budget, without increasing the total authorized expenditures or authorized bonded indebtedness. Specifically, it authorizes tax increments to be spent on environmental remediation and rehabilitation of certain affordable single family and multifamily housing properties anywhere within the City, as permitted by Laws of Minnesota 1994, Chapter 587, Article 9, Section 14. 1.03 The modification to the TIF Plan will not increase the total estimated tax increment expenditures, the amount of bonded indebtedness, capitalized interest, or make any other changes described in Minnesota Statutes, Section 469 .175 subd. 4 that would require q uire a new public hearing. Section 2. Tax Increment Financine Plan Modifications,. 2.01. The Estimate of Public Costs set forth in Section G of the TIF Plan is hereby modified as follows: Qualified Costs Land Acquisition a. Commercial $6,000,000 b. Industrial 7,000,000 Public Improvements a. Streetscape 4,500,000 b. Public Works /Stormwater 3,500,000 Demolition and Relocation 1,000,000 EDA RESOLUTION NO. Site Preparation 1,000,000 Administrative, Legal, Engineering and Consulting Fees 2,900,000 Housing Development Account (Affordable Housing) 5,000,000 Acquisition of Single and Multi Family Housing Rehabilitation of Single and Multi Family Housing Environmental Remediation of Single and Multifamily Housing Properties Contingency 1,000,000 Total Estimated Project Costs $31.900.000 Any funds to be expended for off -site improvements outside the boundaries of District No. 03 but within the boundaries of Housing Development and Redevelopment Project No: 1 would be less than 25 percent of total tax increment generated by District No. 03, including administrative costs, provided that tax increments deposited in the housing development account may be spent on eligible housing activities located anywhere in the City, as provided in the Special Act. Section 3. Authoritv Annroval. 3.01. The Authority finds that its objectives in encouraging development and redevelopment within the Project Area and the TIF District would be advanced by adoption of the above modification to the TIF Plan set forth in Section 2 above, and the modification is hereby approved. March 24, 2008 Date President The motion for the adoption of the foregoing resolution was duly seconded by commissioner and upon vote being taken thereon, the following voted in favor thereof: and the following voted against the same: whereupon said resolution was declared duly passed and adopted.