The URL can be used to link to this page

Home My WebLink About2011 01-24 EDAP Regular Session EDA MEETING City of Brooklyn Center January 24, 2011 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. January 11, 2011 — Regular Session • 4. Commission Consideration Items v' Modification of Tax Increment Financing a. Resolution Approving g Plan for Tax Increment Financin g District No. 3 Requested Commission Action: Motion to adopt resolution. 5. Adjournment The Economic Development Authority may elect to adjourn to closed Executive Session I P tY Y J under the attorney- client privilege to discuss sale of real property — Minn. Stat § 13D.05, subd. 3] EDA Agenda Item No. 3a 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 JANUARY 10, 2011 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 8:26 p.m. 2. ROLL CALL President Tim Willson and Commissioners Carol Kleven, Kay Lasman, Tim Roche, and Dan Ryan. Also present were Executive Director Curt Boganey, Director of Fiscal and Support Services Dan Jordet, Public Works Director /City Engineer Steve Lillehaug, Director of Business and Development Gary Eitel, Assistant City Manager/Director of Building and Community Standards Vickie Schleuning, Police Chief Kevin Benner, City Attorney Charlie LeFevere, and Chris Moksnes, Timesaver Off Site Secretarial, Inc. • 3. APPROVAL OF AGENDA AND CONSENT AGENDA Commissioner Lasman moved and Commissioner Roche seconded approval of the Agenda and Consent Agenda, and the following item was approved: 3a. APPROVAL OF MINUTES 1. December 13, 2010 — Regular Session Motion passed unanimously. 4. COMMISSION CONSIDERATION ITEMS 4a. RESOLUTION NO. 2011 -01 ELECTING OFFICERS FOR THE ECONOMIC. DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF BROOKLYN CENTER President Willson presented the resolution. Commissioner Roche moved and Commissioner Ryan seconded adoption of RESOLUTION NO. 2011 -01 Electing Officers for the Economic Development Authority in and for the City of Brooklyn Center. • 01 /10 /11 -1- DRAFT Motion passed unanimously. • 5. ADJOURNMENT Commissioner Lasman moved and Commissioner Roche seconded adjournment of the Economic Development Authority meeting at 8:28 p.m. Motion passed unanimously. • 01/10/11 -2- DRAFT EDA Agenda Item No. 4a EDA ITEM MEMORANDUM • DATE: January 19, 2011 TO: Curt Boganey, City Manager FROM: Gary Eitel, Director of Business and Development SUBJECT: EDA Resolution Approving Modification of Tax Increment Financing Plan for Tax Increment District No. 3 (Removal of Brookdale Parcels) Recommendation: It is recommended that the Economic Development Authority Development Authority (EDA) consider approval /adoption of the Resolution Approving Modification of Tax Increment Financing Plan for Tax Increment District No. 3 (Removal of Brookdale Parcels) Background: On January 24, 2011, the City Council will be holding a public hearing to consider an amendment to the Financing Plan of Tax Increment District No. 3 which would remove the 13 parcels identified as the Brookdale properties from this Tax Increment District. The memorandum included for this public hearing references the financial analysis by the City's consultant, Springsted Financial and the PowerPoint presentation provided at the January 10, • 2011 Council Work Session which identified the following effects of this plan amendment and the 2011 decertification of Tax Increment District No. 2: 1. A savings to all residential, commercial and industrial properties within the city. 2. A stabilizing of the TIF 3 revenue stream to meet debt service. 3. Additional funds to the TIF 3 Housing Account. 4. The building of a fund balance that could enable the early retirement of this TIF district. The slide illustrating the effects with the removal of the Brookdale properties indicates the following: • An annual increase of tax increment revenue of $695,379. • An annual increase of the $104,307 that is transferred to the Housing Account. • A tax increment revenue stream sufficient to meet the scheduled increases in the bond payments which start in 2012. • A projected fund balance in 2020 that would enable an early decertification of this district. Mission: Ensuring an attractive, clean, safe community that enhances the quality of life and preserves the public trust EDA ITEM MEMORANDUM Budget Issues: • The financial consultant's analysis illustrates savings to all residential, commercial and industrial properties within the City, stabilizes the TIF 3 revenue stream to meet debt service, and provides additional funds to the TIF 3 Housing Account. Council Goals: Ongoing: 2. We will ensure the financial stability of the City. Mission: Ensuring an attractive, clean, safe conununity that enhances the quality of life and preserves the public trust . Commissioner introduced the following resolution and moved its adoption: EDA RESOLUTION NO. EDA RESOLUTION APPROVING MODIFICATION OF TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. 3 WHEREAS, by a resolution approved December 19, 1994, the City Council of the City of Brooklyn Center (the "City ") approved the Tax Increment Financing Plan (the "Plan") for Tax Increment Financing District No. 3 (the "TIF District "), pursuant to and in conformity with Minnesota Statutes, Sections 469.090 through 469.1081 (the `EDA Act") and Sections 469.174 to 469.179 (the "TIF Act "); and WHEREAS, the TIF District and TIF .,Plan were initiated and approved by the Economic Development Authority in and for the City of Brooklyn Center (the "Authority "), which administers and controls the TIF District: and WHEREAS, the City and Authority have determined a need to remove parcels from the TIF ; and • HEREAS, under Section 469.175, subd. 4 of the TIF Act, the Authority may modify the Plan for the TIF District without the notice and hearings required for a new district, if the changes are not those described in Section 469.175, subdivision 4(b), clauses (1) through (6); and WHEREAS, the proposed modifications to the TIF Plan include revised line items of expenditures, but do not increase the total estimated cost of the project or the total amount of bonded indebtedness; and WHEREAS, the City Council of the City approved the TIF Plan modification on January 24, 2011 NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority in and for the City of Brooklyn Center as follows: 1. The modification to the Plan removing 13 parcels from the District is hereby approved in substantially the form on file in City Hall. 2. The City Manager is authorized to forward a copy of the modified Plan to the Department of Revenue and the State Auditor pursuant to Minnesota Statutes 469.175, subd.4a. 3. The City Manager is authorized and directed to forward a copy of the Plan to Hennepin County for information purposes. • January 24, 2011 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. • • TIF District No. 3 Cash . Flow With Removal Estimated Cash Flow beginning Taxes Payable 2011 Scenario 2: Total District - Brookdale Parcels Removed Annual Less Estimated $2,470,000 $17,245,000 $4 Transfer Out Total A irku4 Cumulative Net Admin Net GO Tax Ref GO TIF Bonds, GO Tax TIF Pooling TIF Cpl Surplus / Year Tax Inc Fee Increment Series 2004B Series 2004D Series 2008A Afford. Hsg Obligations "` �t (Deficit) r3s�� 15 % 1 (2 ) (3) (4) (5) (6 ) ( (8 ) 13 2011 1,671,312 0 1,671,312 1,431,213 167,125 250,697 1,849,034 (177,722) 2012 2,366,691 0 2,366,691 1,833,213 161,938 355,004 2,350,154 �';Z37 (161,185) 2013 2,366,691 0 2,366,691 1,839,313 156,750 355,004 2,351;066 1 5 (145,561) 2014 2,366,691 0 2,366,691 1,852,325 150,813 355,004 2,358,141 (137,011) 2015 2,366,691 0 2,366,691 1,856,775 144;875 355,004 2,356;654 t (126,974) 2016 . 2,366,691 0 2,366,691 1 138,250 355,004 2,371;154 �t6) (131,437) Ign 2017 2,366,691 0 2,366,691 1,870,900 131,625 355,004 2,357,529 - (122,275) & 2018 2,366,691 0 2,366,691 1,900,400 355,004 2,255,404 287 (10,988) 2019 2,366,691 0 2,366,691 1,892,250 355,004 2,247,254 1 ;437 108,449 2020 2,366,691 0 2,366,691 355,004 355,004 2,120,136 25,140,869 0 25,140 433,260 17,771,125 1,223,000 3,771, 20,851,392 Projected Tax Increment beginning in 2012 includes increased, captured tax capacity resulting from the removal of the Brookdale parcels. Projected Tax Increment beyond 2012 does not include changes to future tax rates, class rate, or market values. Pay 2010 Tax Rates used for each proj in TIF No. 3. No assumptions included on use of fund balance. Cash flow demonstrates ability of annual increment to cover annual obligations. Cumulative cash flow does not include any interest assumptions. y Pudic Sector Advisors 17 � rid s e TIF. District No. 3 Cash Flow Before Removal Estimated Cash Flow beginning Taxes Payable 2011 Scenario 1 Total District - Brookdale Remains Annual Less Estimated $2,470,000 $17,245 $4,335,000 Transfer Out Total - a 'Cumulative Net Admin Net GO Tax Ref GO TIF Bonds, GO Tax TIF Pooling TIF Sur a !` Surplus / Year Tax Inc Fee Increment Series' 20048 Series 2004D Series 2008A Afford. Hsg Obligations >,` a (Deficit) 2 3 4 5 g 7 g (11 -12 13 2011 1,671,312 0 1,671;312 1,431,213 167,125 250,697 1,849,034 (177,722) 2012 1,671,312 0 1,671,312 1,833,213 161,938 250;697 2,245,847 5 . 355 (752,257) 2013 1,671,312 0 1,671;312 1,839,313 156;750 250,697 2,246,759 4 r� i (1$27,705) 2014 1,671,312 0 1,671,312 1,852,325 150,813 250,697 2,253,834552 (1,910,227) 2015 1,671,312 0 1,671,312 1,856,775 144,875 250,697 2,252,347 >s 1 3 j (2,491,262) 2016 1,671,312 0 1,671,312 1,877,900' 138,250 250,697 2,266,847 ,,, (59553 (3,086,797) 2017 1,671,312 0 1,671,312 1,870,900 131,625 250,697 2,253,222 (3,668,707) 2018 1,671,312 0 1,671,312 1,900,400 250,697 2,151,097 4,148,492) 2019 1,671,312 0 1,671,.312 1;892,250 250,697 2,142 947 4 (4,620,127) 671 , 312 250 697 250,697 202 1,671,312 0 1, �Y� (3,199,512) 18,882,459 0' 18,882,459 433,260 17,771,125 1,223,000 2,832,369 22,259,754 Projected Tax Increment does not include - changes to future tax rates, class rate, or market values. Pay 2010;, Tax Rates used for each project within TIF No. 3. No assumptions included on use of fund balance. Cash flow demonstrates ability of annual increment to cover annual obligations. Public Se or Advisors Ste Housing Development and • Redevelopment Project No. 01 Project Areas A 13 C M D E � G i� P ER LAKE vARK 3 w- LOCAL STREET 4 INDEX M L ------ TI F 3 Area Before Modification ' Off ", TIF 3 Parcels to be Removed MW Project Area Boundary ole/ N 7 0 GIs 05 INYi Brooklyn Center GIS Tax Increment Financing District No. 03 Site B (Brookdale Area) EWING AVE N I Z � 59TH AVE N J II Q 58 1/2 AVE N o H AVE N J� 58T ADMIRAL LN N ~— O O NORTHPORT r PARK o / �J�� 56TH AVE N z O�OO ;JOy� z ERICON DR W NORTHPORT > SCHOOL Q Z Q 0 55TH AVE N 55TH AVE N N I p 7m< o /— I II LIONS z j O N ' WATER j� II r PARK Z 2 O.3 TO Ir W W > 54TH AVE N Z \ CENTERB W IR > Lu z Q 54TH AVE N ® GOLF / r W Q z Q Q Q 53RD PL N / CouRS � z z c� / LILAC DR N � j ? o- LL Oz 0 tr I Q 53RD AVE N 53RD AVE N \ 53RD AVE N O z w z z Q ¢ �� W tY W C7 Cf z ` X uj W z X W W Q z HAPPY HOLLOW �1STAVE N PARK > W Brookdale properties to be removed z / W 0 50T ~ 50TH AVE N ti m m � L � Q O i 49TH AVE N City or 4 BROOKLYN s CENTER Brooklyn Center GIS U5 0.1