Loading...
HomeMy WebLinkAbout2000 01-24 EDAP ** REVISED ** EDA MEETING City of Brooklyn Center January 24, 2000 AGENDA 1. Call to Order 2. Roll Call 3. Approval of Agenda and Consent Agenda -The following items are considered to be routine by the Economic Development Authority 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 - Commissioners not present at meetings will be recorded as abstaining from the vote on the minutes. 1. January 10, 2000 - Regular Session 4. Commission Consideration Items a. Resolution Recommending the Creation of a TIF District #4 Fund, Dividing the E.D.A. Fund into an E.D.A. 91 Fund and an E.D.A. #2 Fund, and Amending the 2000 E.D.A. Budget -Requested Commission Action: - Motion to adopt resolution. b. 1. Resolution Adopting Business Subsidy Policy - Requested Commission Action: - Motion to adopt resolution. 2. Resolution Approving Redevelopment Agreement with Talisman LLC - Requested Commission Action: - Motion to adopt resolution. 5. Adjournment EDA Agenda Item No. 3a MINUTES OF THE PROCEEDINGS OF THE ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF l-IENNEPIN AND THE STATE OF MINNESOTA REGULAR SESSION J.ANL.T AR Y 10, 2000 CITY HALL 1. CALL TO ORDER The Brooklyn Center Economic Development ,authority (EDA) met in regular session and was called to order by President Myrna Kragness at ' :40 p.m. 2. ROLL CALL President Myrna Kragness, Commission Members Debra Hilstrom, Kay Lasman, Ed Nelson, and Robert Peppe. Also present: Executive Director NTichael J. McCauley, Assistant City Manager Jane Chambers, City Attorney Charlie LeFevere, and Recording Secretary Maria Rosenbaum. i 3. APPROVAL OF AGENDA AND CONSENT AGENDA ® A motion by Commissioner Hilstrom, seconded by Commissioner Nelson to approve the agenda and consent agenda. Motion passed unanimously. 3a. APPROVAL OF MINUTES A motion by Commissioner Hilstrom, seconded 1 -y Commissioner Nelson to approve the minutes from the regular session on December 13, 1999. '\- lotion passed unanimously. 4. COMMISSION CONSIDERATION ITEMS 4a. RESOLUTION ELECTING OFFICERS FOR THE ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF BROOKLYN CENTER President Kragness requested electing the follo ing: is 01/10/00 -1- DRAFT President/Treasurer: Myrna Kra ness Y g Vice - President: Debra Hilstrom Assistant Treasurer: Charlie Hansen Secretary: G. Brad Hoffman RESOLUTION NO. 00 -01 Commissioner Peppe introduced the following resolution and moved its adoption: RESOLUTION ELECTING OFFICERS FOR THE ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF BROOKLYN CENTER The motion for the adoption of the foregoing resolution was duly seconded by Commissioner Nelson. Motion passed unanimously. Y 4b. RESOLUTION DESIGNATING DEPOSITORIES OF EDA FUNDS Executive Director Michael McCauley discussed this resolution would authorize the Marquette Bank Brookdale to be designated as the depository of funds for the Economic Development Authority. RESOLUTION NO. 00 -02 Commissioner Lasman introduced the following resolution and moved its adoption: RESOLUTION DESIGNATING DEPOSITORIES OF EDA FUNDS The motion for the adoption of the foregoing resolution was duly seconded by Commissioner Nelson. Motion passed unanimously. 5. ADJOURNMENT A motion by Commissioner Lasman, seconded by Commissioner Nelson to adjourn the meeting at 7:43 p.m. Motion passed unanimously. President 01/10/00 -2- DRAFT EDA Agenda Item No. 4a MEMORANDUM TO: Michael J. McCauley. City Manager FROM: Charlie Hansen Finance Director DATE: January 18, 2000 SUBJECT: Resolution Creating a TIF District #4 Fund and Dividing the E.D.A. Fund into an E.D.A. #1 Fund and an E.D.A. #2 Fund The attached resolution creates a special revenue fund to handle TIF revenues received from the TIF District #4 created to handle soils conditions at the Joslyn Site. Resolution 99 -34 approved the creation of the TIF District and adopted the required tax increment financing plan, but was silent regarding the creation of a fund to account for the activity. The resolution also divides the E.D.A. fund into two funds. The E.D.A. Fund was created in the mid 1980s and was almost immediately infused with TIF funds in the form of proceeds of the 1985 TIF bonds. TIF bond proceeds were again deposited in the E.D.A. Fund in 1991 and 1995. Non TIF revenues have been included in the E.D.A. Fund every year since its creation. State guidelines call for TIF revenues to be segregated in a fund separate from any fund containing non TIF revenues. The only way to cure this inter - mingling of revenues is to spend the existing E.D.A. fund down to zero while segregating all new TIF and non TIF revenues into separate funds. The Earle Brown TIF Fund and the TIF District #3 Fund have existed for several years and are receiving all current TIF revenues which in past years were put in the E.D.A. Fund. The E.D.A. #1 Fund will account for closing out the activities of the old E.D.A. Fund. It may take until the end of 2001 or 2002 to spend down the assets. The E.D.A. #2 Fund will receive new property tax revenues and H.R.A. transfers which are free of TIF entanglements. This will be the fund to survive as the E.D.A. Commissioner introduced the following resolution and ® moved its adoption: EDA RESOLUTION NO. RESOLUTION RECOMMENDING THE CREATION OF A TIF DISTRICT #4 FUND, DIVIDING THE E.T. A. FUND INTO AN E.D.A. #1 FUND AND AN E.D.A. #2 FUND. AND A MENDI NG THE 2000 E. D.A. BUDGET WHEREAS, Section 7.11 of the City Charter provides the City Council with the authority to order the creation of such fiends as may be needed to properly account for the financial activities of the City; and WHEREAS, Resolution #99 -34 approved the establishment of Tax Increment Financing District #4 and thereby created the need for a special revenue fund to account for the district; and WHEREAS, the E.D.A. Fund was created in the 1980s and included tax increment financing revenues from that time onward; and WHEREAS, State of Minnesota guidelines call for TIF revenues to be segregated in separate funds from funds containing non -TIF revenues. NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority in and for the City of Brooklvn Center, Minnesota, as follows: 1. It is recommended to the City Council that the classification of funds be expanded to include a Tax Increment Financing District #4 special revenue fund to account for the receipt and disbursement of tax increments. 2. It is recommended to the Cite- Council that the existing E.D.A. Fund be renamed as the E.D.A. #1 Fund and that the classification of funds be expanded to include the E.D.A. #2 Fund. 3. The appropriations for the E.D.A. in the 2000 Budget shall be divided with the property tax revenues and transfers from the H.R.A. Fund going to the E.D.A. #2 Fund. The carry forward of 1999 assets and liabilities and all 2000 revenues and appropriations not earmarked for the E.D.A. #2 Fund shall belong to the E.D.A. #1 Fund. is EDA RESOLUTION NO. 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. i EDA Agenda Item No. 4b s • NOTICE OF PUBLIC HEARINGS ON A POLICY AND CRITERIA FOR GRANTING BUSINESS SUBSIDIES AND O'i\ THE GRANT OF A BUSINESS SUBSIDY FOR THE BROOKDALE MALL PROJECT NOTICE IS HEREBY GIVEN that the City Council of the City of Brooklyn Center, Minnesota, will hold public hearing on Monday, January 24, 2000, at a meeting of the City Council beginning at 7 p.m., Central Time, or as soon thereafter as the matter may be heard, in the City Council Chambers, on the proposed adoption of the City's Business Subsidy Policy under Minnesota Statutes, Sections 116J -993 through 116J.995 (the "Business Subsidy Policy "). [Following the public hearing on the Business Subsidy Policy, the City will hold a public hearing on a business subsidy to be granted pursuant to a Development Agreement with Talisman Brookdale, LLC, (the "Brookdale Business Subsidy Agreement ") in connection with the renoN ation of the Brookdale Mall.] All persons may appear at the public hearing and present their views orally or in writing. A copy of the proposed Business Subsidy Policy and the Brookdale Business Subsidy Agreement are on file and may be obtained at the office of the City Clerk. • Commissioner introduced the following resolution and moved its adoption: EDA RESOLUTION NO. RESOLUTION ADOPTING BIT SINESS SUBSIDY POLICY WHEREAS, the City of Brooklyn Center and the EDA are required by Minnesota Statutes, Sections 116J -993 through 116J.995, to adopt a business subsidy policy; and WHEREAS, attached hereto and incorporated herein by reference is Exhibit A is a proposed Business Subsidy Policy with criteria: and WHEREAS, the City Council conducted a public hearing on January 24, 2000, regarding the proposed Business Subsidy Poliev and criteria; and WHEREAS, it has been found and determined by the City Council of the City of Brooklyn Center and the EDA that the proposed Business Subsidy Policy and criteria as set forth in Exhibit A are reasonable and proper, NOW, THEREFORE, BE IT RESOLVED by the EDA that the Business Subsidy Policy and criteria as set forth in Exhibit A be and hereby are adopted by the EDA. 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. RESOLUTION NO. Exhibit A CITY OF BROOKLYN CENTER BUSINESS SUBSIDY POLICY The following business subsidy policy is intended to satisfy the requirements of Minnesota Statutes, Sections I I6J.993 and I I6J.994 (the "Act"'), in particular, Section 116J.994, subdivision 2, thereof. Terms used but not defined herein have the meaning given them in the Act. The term "City" shall mean the City of Brooklyn Center. The term "Protect" means the property with respect to which the Business Subsidy is provided. A. MANDATORY CRITERIA All Projects must comply with the following criteria: 1. But For Test. There is a substantial likelihood that the Project would not go forward without the Business Subsidy. This criterion may be niet based solely on representations of the recipient of the Business Subsidy. 2. Wane Policy. If the Project results in an obligation to create new jobs pursuant to a subsidy agreement, the wage for each part -time and full -time job required to be created pursuant to the S subsidy agreement shall, within two years of the benefit date, pay at least $7.00 per hour. 3. Feasibilitv. The recipient must demonstrate to the satisfaction of the City that the Project has been adequately financed and either has been or w i I I be completed in a timely fashion. 4. Comnliance with Act. The Business Subsidy must satisfy all requirements of the Act. B. EVALUATIVE CRITERIA The following criteria recognize that the award of a Business Subsidy may serve a variety of public purposes of varying importance depending upon the specific Project facilitated by the Business Subsidy. The degree of importance to be attached to various public purposes which may be served by a particular Project must therefore involve the exercise of sound judgment after weighing all relevant criteria. Not all evaluative criteria will be applicable to all projects. In any event, the City may disregard any evaluative criterion it determines to be either irrelevant or unimportant in the case of the particular project, ors permitted by the Act. The evaluative criteria are as follows: I. Jobs The number of full -time equivalent jobs to be created or retained by the proposed Project for a period of at least two years from the estimated benefit date. RESOLUTION NO. Exhibit A 2. Tax Base. The net increase in property tales estimated to be generated by the Project in the first full year of operation. 3. Services to the Community. Whether the Project will provide services or facilities needed in the community. For example, the Project maN provide needed health care services, commercial facilities, or other services or facilities needed in the community. 4. Blighted Property. Whether the Proiec•,1 is located on property which is, or is likely to become blighted, and is not likely to be developed or redeveloped because of the blight or other adverse conditions. 5. Design and /or Other Amenitv Concessions, Whether, as a result of the Business Subsidy, the Project will include design and /or amenity features not otherwise required by law. 6. Comllatlbility. Whether the Project is compatible with the comprehensive plan. 7. Utilization of Existing Infrastructure Investment. Whether and to what extent the Project will utilize existing public infrastructure capacity or will require additional publicly funded infrastructure. 8. Leveraged Public Funds. The ratio of private funds which will be applied towards the capital cost of the project compared to the Business Subsidy. 9. Other Factors. Depending on the nature of the Project, such other factors as the City may deem relevant in evaluating the Project and the Business Subsidy proposed for it. Commissioner introduced the following resolution and moved its adoption: EDA RESOLUTION NO. RESOLUTION APPROVING REDEVELOPMENT AGREEMENT WITH TALISMAN LLC WHEREAS, pursuant to the Minnesota Business Subsidy Act, the City Council conducted a public hearing on the 24th day of January, 2000, on a proposed grant of a business subsidy to Talisman LLC for the redevelopment cat the Brookdale Mall and reviewed the proposed redevelopment agreement on the basis of the Cits -'ti Business Subsidy Policy and determined that the proposed business subsidy met the mandatorN criteria of that policy and was evaluated under the evaluative criteria of that policy; and WHEREAS, attached hereto and incorporated herein by reference as Exhibit A is a proposed redevelopment agreement between the Economic Development Authority in and for the City of Brooklyn Center and Talisman LLC: and WHEREAS, the terms and conditions set forth in the proposed redevelopment agreement in Exhibit A appear to be reasonable and proper. NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority in and for the City of Brooklyn Center. Minnesota, that the President and Executive Director be and hereby are authorized to execute the redevelopment agreement as set forth in Exhibit A, subject to such corrections or additions to the exhibits or agreement as may be necessary to finalize the document as are deemed appropriate and suitable by the City Manager and the law firm of Briggs and Morgan acting as bond counsel to the Economic Development Authority, provided such terms and conditions do not impact or affect the general terms and conditions but are merely corrections or additions to more clearly state the obligations and descriptions as set forth in the exhibits to the redevelopment agreement or minor, technical, or clerical changes to the redevelopment agreement itself. 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.