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HomeMy WebLinkAbout2011 04-11 EDAP Regular Session EDA MEETING City of Brooklyn Center April 11, 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. March 28, 2011 — Regular Session • 4. Commission Consideration Items a. Establishing a Spending Plan for Tax Increment Financing District No. 2 1. Resolution Approving a Spending Plan for Tax Increment Financing District No. 2 Requested Council Action: — Motion to adopt resolution. 5. Adjournment • EDA Agenda Item No. 3a • • MINUTES OF THE PROCEEDINGS OF THE i ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND THE STATE OF MINNESOTA REGULAR SESSION MARCH 28, 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 8:14 p.m. 2. ROLL CALL President Tim Willson and Commissioners Carol Kleven, Tim Roche, and Dan Ryan. Absent and excused was Commissioner Kay Lasman. Also present were Executive Director Curt Boganey, 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, City Attorney Charlie LeFevere, and Carla Wirth, Timesaver Off Site Secretarial, Inc. • 3. APPROVAL OF AGENDA AND CONSENT AGENDA Commissioner Roche moved and Commissioner Kleven seconded approval of the Agenda and Consent Agenda, and the following item was approved: 3a. APPROVAL OF MINUTES 1. March 14, 2011 — Regular Session Commissioner Ryan abstained due to his absence at the March 14, 2011, meeting. Motion passed. 4. COMMISSION CONSIDERATION ITEMS 4a. EDA RESOLUTION NO. 2011 -06 RESOLUTION OPTING NOT TO WAIVE LIMITED TORT LIABILITY FOR 2011 Executive Director Curt Boganey introduced the item, discussed the history, and stated the purpose of the proposed resolution to not waive tort liability, which is considered each year. Commissioner Ryan moved and Commissioner Kleven seconded adoption of EDA RESOLUTION NO. 2011-06 Opting Not to Waive Limited Tort Liability for 2011. 03/28/11 -1- DRAFT Motion passed unanimously. • 4b. EDA RESOLUTION NO. 2011 -07 APPROVING A MODIFICATION TO THE REDEVELOPMENT PLAN FOR HOUSING DEVELOPMENT AND REDEVELOPMENT PROJECT NO. 1 AND ESTABLISHING TAX INCREMENT FINANCING DISTRICT NO. 5 THEREIN AND APPROVING A TAX INCREMENT FINANCING PLAN THEREFOR Executive Director Curt Boganey introduced the item and explained the purpose of the proposed resolution to approve a modification to the redevelopment plans for Housing Development and Redevelopment Project No. 1 and establish Tax Increment Financing District No. 5. Commissioner Roche moved and Commissioner Ryan seconded adoption of EDA RESOLUTION NO. 2011 -07 Approving a Modification to the Redevelopment Plan for Housing Development and Redevelopment Project No. 1 and Establishing Tax Increment Financing District No. 5 Therein and Approving a Tax Increment Financing Plan Therefor. Motion passed unanimously. 5. - ADJOURNMENT Commissioner Roche moved and Commissioner Ryan seconded adjournment of the Economic Development Authority meeting at 8:18 p.m. • Motion passed unanimously. • 03/28/11 -2- DRAFT EDA Agenda Item No. 4a • • EDA ITEM MEMORANDUM • DATE: April 5, 2011 TO: Curt Boganey, City Manager FROM: Gary Eitel, Business and Development Director = SUBJECT: Resolution Approving a Spending Plan for Tax Increment Financing District No. 2 Recommendation: It is recommended that the Economic Development Authority consider approval /adoption of the Resolution Approving a Spending Plan for Tax Increment Financing District No. 2 Background: On April 11, 2011, the City Council will be conducting a public hearing pursuant to the provisions of the Temporary TIF Authority Act that will establish a Spending Plan which authorizes the use of available tax increment from an existing Tax Increment Financing District to provide Y g g P improvements, loans, interest rate subsidies, or assistance in any form to private development consisting f construction or substantial g rehabilitation of buildings and anci facilities, if the following exist: • Such assistance will create or retain jobs in the State of Minnesota, including • construction jobs, • Construction commences before July 1, 2011 • The construction would not have commenced before that date without any assistance;, an d • The City Council approves a written spending plan (after duly noticed public hearing) that specifically authorizes the EDA to take such action. The attached Spending Plan specifically identifies the use of tax increment assistance for the following projects that have been approved by the EDA: - On March 14, 2011, the EDA awarded a contract for the construction of the Embassy Suites - Heritage Center Link with that portion of the link associated with the D -Barn Lease to be funded by TIF 2 as part of this Spending Plan . - On March 28, 2011, the EDA approved the Finance Plan for Tax Increment District No. 5 which identified use of an inter -fund loan from Tax Increment District 2 to Tax Increment District 5 as a means to provide the necessary economic assistance for the renovation of the Brookdale Mall and development of the Shingle Creek Crossing Project. Additionally, the Spending Plan provides the EDA with the opportunity to consider other private developments within the City which meet the above conditions. Mission: Ensuring an attractive, clean, safe community that enhances the quality of life and preserves the public trust EDA ITEM MEMORANDUM Budget Issues: • The spending plan implements the EDA's financing strategy for the construction of the Embassy Suites Link to the Heritage Center and provides the financial mechanism for an inter -fund loan to Tax Increment District 5. A future work session will be scheduled with the EDA to review any 2011 Legislative changes to the Temporary TIF Authority Act and consider other options and opportunities for the use of the TIF 2 increment that will be received in 2011. Council Goals: Strategic: 2. We will aggressively proceed with implementation of City's redevelopment plans Ongoing: 2. We will ensure the fmancial stability of the City • • Mission: Ensuring an attractive, clean, safe community that enhances the quality of life and preserves the public trust SPENDING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO.2 ADOPTED BY CITY COUNCIL AND EDA BOARD APRIL 11, 2011 • 383598v3 JSB BR291 -304 SPENDING PLAN • FOR TAX INCREMENT FINANCING DISTRICT NO.2 I. PURPOSE The Economic Development Authority of the City of Brooklyn Center, Minnesota (the "EDA ") proposes to adopt a Spending Plan for Tax Increment Financing District No. 2 (the "TIF District ") in accordance with Minnesota Statutes, Section 469.176 Subd. 4m (the "Temporary TIF Authority Act "). Under the Temporary TIF Authority Act, the EDA is authorized to spend available tax increment from any existing tax increment financing district, notwithstanding any other law to the contrary, to provide improvements, loans, interest rate subsidies, or assistance in any form to private development consisting of construction or substantial rehabilitation of buildings and ancillary facilities, if the following conditions exist: (1) Such assistance will create or retain jobs in the State of Minnesota, including construction jobs; (2) Construction commences before July 1, 2011 (or such later date as authorized under the Temporary TIF Authority Act if amended); (3) The construction would not have commenced before that date without ,the assistance; and • (4) The City Council approves a written spending plan (after a duly noticed public hearing) that specifically authorizes the EDA to take such actions. The purpose of the Spending Plan is to develop or redevelop sites, lands or areas within the City of Brooklyn Center, Minnesota (the "City ") in conformance with the City's Comprehensive Plan by using available tax increments from the TIF District to provide assistance under the Temporary TIF Authority Act as further described in this Spending Plan. II. SPENDING PLAN The EDA is authorized as follows: (a) To use any available tax increments from the TIF District on hand at the time of approval of this Spending Plan and received through December 31, 2011 (or such later date as authorized under the Temporary TIF Authority Act if amended) and not otherwise pledged to any outstanding contract or obligation (referred to as "Available Spending Plan Increment "), to provide improvements, loans, interest rate subsidies, or assistance in any form to private development occurring anywhere within the City that meets the requirements of the Temporary TIF Authority Act described above. (b) The assistance authorized under this Spending Plan expressly includes, but is not limited to, (i) assistance to finance the costs of an approximately 80 foot portion of the link • that connects the Embassy Suites Hotel to the D -Barn of the Earle Brown Heritage Center up to a 3835980 JSB BR291 -304 public entrance point and access to the rear service entrance to the D -Barn (the "Link") where a . privately operated spa and salon or other private business will be located pursuant to a 10 -year lease and (ii) assistance in connection with the renovation of the Brookdale Mall and the development of the Shingle Creek Crossing Project. (c) In addition to the assistance for the development described above, the EDA is authorized to spend Available Spending Plan Increment for any other private development in the City for which the EDA finds that the private development will create or retain jobs in the State (including construction jobs); that the private development will commence before July 1, 2011 (or such later date as authorized under the Temporary TIF Authority Act if amended); and that such construction would not have commenced before that date without the assistance under this Spending Plan. The EDA must document its findings under this section at the time of approval of assistance to each development. (d) ; In accordance with the Temporary TIF Authority Act,, the EDA may implement this Spending Plan by making an equity or similar investment in a corporation, partnership or limited liability that the Authority determines is necessary to make construction that meets the requirements of paragraph (c) financially feasible. (e) This Spending Plan authorizes, but does not obligate, the EDA to spend Available Spending Plan Increment. Any obligation to provide assistance under this Spending Plan must be evidenced by a contract approved by the EDA's board, entered into with a private party who otherwise meets the requirements of this Spending Plan and the Temporary TIF • Authority Act. (f) In accordance with the Temporary TIF Authority Act, the authority to spend Available Spending Plan Increment under this Spending Plan expires on December 31, 2011 unless the Temporary TIF Authority Act is amended. No Available Spending Plan Increment may be spent under this Spending Plan after December 31, 2011 unless such expenditure is otherwise authorized by law without regard to the Temporary TIF Authority Act or the Temporary TIF Authority Act is amended. (g) The City and EDA acknowledge that assistance provided pursuant to this Spending Plan will be subject to Minnesota Statutes, Sections 116J.993 to 116J.995 (the "Business Subsidy Act "), unless the assistance provided to a specified recipient is exempt from the Business Subsidy Act under the terms of that statute. (h) The EDA and City may amend this Spending Plan at any time in accordance with the procedures for approval of the Spending Plan under the Temporary TIF Authority Act. (i) EDA staff are authorized and directed to maintain a copy of this Spending Plan with the EDA's records for the TIF District, and to file a copy of the Spending Plan with the Office of the State Auditor (as requested by the State Auditor in the August, 2010 TIF Division Newsletter). i 3835980 JSB BR291 -304 EDA RESOLUTION NO. • RESOLUTION APPROVING A SPENDING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO.2 BE IT RESOLVED by the Board of Commissioners (the "Board ") of the Economic Development Authority of the City of Brooklyn Center, Minnesota (the "EDA "), as follows: Section 1. Recitals 1.01. Minnesota Statutes, Section 469.176 Subd. 4m, (the "Temporary TIF Authority Act ") authorizes the EDA to spend available tax increment from any existing tax increment financing district, notwithstanding any other law to the contrary, to provide improvements, loans, interest rate subsidies, or assistance in any form to private development consisting of construction or substantial rehabilitation of buildings and ancillary facilities, if the following conditions exist: (1) Such assistance will create or retain jobs in the State of Minnesota, including construction jobs; (2) Construction commences before July 1, 2011; (3) The construction would not have commenced before that date without the assistance; (4) Tax increments under the Spending Plan are spent by December 31, 2011; and • (4) The City Council (the "Council ") of the City of Brooklyn Center, Minnesota (the "City ") approves a written spending plan (after a duly noticed public hearing) that specifically authorizes the EDA to take such actions. 1.02. The EDA proposes to adopt a spending plan for the Tax Increment Financing District No. 2 (the "TIF District ") in accordance with the Temporary TIF Authority Act in substantially the form submitted to the EDA (the "Spending Plan") to utilize existing tax increment revenues from the TIF District in order to stimulate construction or rehabilitation of private development in a way that will also create or retain jobs. 1.03. On this date, the Council held a public hearing regarding the Spending Plan, for which notice was published in a newspaper of general circulation in the City at least once, not less than ten days nor more than 30 days prior to the hearing, and at which hearing all persons were given the opportunity to be heard. Section 2. Approval and Adoption of the Spending Plan 2.01. The Board hereby finds that construction of the projects to be assisted pursuant to the Spending Plan would not have commenced by July 1, 2011 without the assistance being offered by the EDA as permitted by the Temporary TIF Authority Act. • 2.02. The Spending Plan for the TIF District is hereby approved and adopted in substantially the form on file in City Hall. 2.03. The Spending Plan, as presented to the Board on this date, shall be placed on file in the office of the Business and Development Director. The Business and Development Director is hereby directed to file the Spending Plan with the Office of the State Auditor. April 11, 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. •