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Home My WebLink About2016 11-28 EDAP0 EDA MEETING City of Brooklyn Center November 28, 2016 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. November 14, 2016— Regular Session 4.Commission Consideration Items a. Resolution Authorizing the Prepayment of the Amended and Restated Tax Increment Revenue Note (Shingle Creek Crossing Project) and a Portion of the EDA' s Internal Loan from the TIF District No. 2 Account Requested Commission Action: —Motion to adopt resolution. 5. Adjournment . . 0 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 NOVEMBER 14, 2016 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 April Graves, Kris Lawrence-Anderson, Lin Myszkowski, and Dan Ryan. Also present were Executive Director Curt Boganey, Interim Assistant to City Manager Reggie Edwards, Finance Director Nate Reinhardt, Director of Business and Development Gary Eitel, City Attorney Troy Gilchrist, and Michaela Kujawa- Daniels, TimeSaver Off Site Secretarial, Inc. 3. APPROVAL OF AGENDA AND CONSENT AGENDA Commissioner Myszkowski moved and Commissioner Graves seconded to approve the Agenda and Consent Agenda, and the following item was approved: 3a.APPROVAL OF MINUTES 1. September 26, 2016— Regular Session 3b.RESOLUTION NO. 2016-22 AUTHORIZING AN INTERFUND LOAN TO PAY THE PURCHASE PRICE OF THE LAND FOR THE SANCTUARY AT BROOKLYN CENTER PROJECT 3c. RESOLUTION NO. 2016-23 AUTHORIZING EXECUTION OF TAX INCREMENT PLEDGE AGREEMENT Motion passed unanimously. 4. PUBLIC HEARINGS 4a. RESOLUTION NO. 2016-24 APPROVING CONVEYANCE OF CERTAIN PROPERTY LOCATED AT 6250 EARLE BROWN DRIVE —Notice was published in the official newspaper on November 3, 2016. 11/14/16 -1- DRAFT Director of Business and Development Gary Eitel introduced the item, discussed the history, and stated the purpose of the proposed resolution. Commissioner Ryan moved and Commissioner Graves seconded to open public hearing. Motion passed unanimously. No one wished to address the Commission. Commissioner Ryan moved and Commissioner Myszkowski seconded to close public hearing Motion passed unanimously. Commissioner Ryan moved and Commissioner Lawrence-Anderson seconded to adopt RESOLUTION NO. 2016-24 Approving conveyance of certain property located at 6250 Earle Brown Drive. Motion passed unanimously. 5.COMMISSION CONSIDERATION ITEMS None. 6.ADJOURNMENT Commissioner Myszkowski moved and Commissioner Graves seconded adjournment of the Economic Development Authority meeting at 7:50 p.m. Motion passed unanimously. 11/14/16 -2- DRAFT 0 DATE: November 28, 2016 TO: Curt Boganey, City Manag qt^ FROM: Gary Eitel, Director of Business & Development ,- SUBJECT: Resolution Authorizing the Prepayment of the Amended and Restated Tax Increment Revenue Note (Shingle Creek Crossing Project) and a Portion of the EDA's Internal Loan from the TIF District No. 2 Account. Recommendation: It is recommended that the Economic Development Authority consider approval/adoption of the Resolution Authorizing the Prepayment of the Amended and Restated Tax Increment Revenue Note (Shingle Creek Crossing Project) and a Portion of the EDA's Internal Loan from the TIF District No. 2 Account. Background: On November 14, 2016, the City Council accepted the report and recommendation by the City's financial consultant, Springsted Financial on the competitive sales of tax increment bonds and adopted Resolution No. 2016-194 Resolution Awarding the Sale of $2,075,000 General Obligation Tax Increment Refunding Bonds, Series 2016B and $1,725,000 Taxable General Obligation Tax Increment Refunding Bonds, Series 2016C; Fixing Their Form and Specifications; Directing Their Execution and Delivery; and Providing for Their Payment. The debt issue will be repaid from tax increment revenues from Tax Increment District #5 and be used to partially refund the $2.4 million inter-fund loan with Tax Increment District #2 and refinance the balance of the Shingle Creek Crossing pay as you go (PAYG) note. The City Attorney has prepared the enclosed EDA resolution which formally authorizes the disbursement of these TIF 5 Bond proceeds. Budget Issues: The refinancing of the balance of the TIF 5 PAYG note is projected to save approximately $330,000 in interest expenses. The $1.7 million partial repayment of the TIF #2 inter-fund loan will be deposited into the TIF 2 Fund. The 2011 TIF 2 budget amendment has provided the EDA with sufficient budget authority and discretion on the future use of the TIF 2 Inter-Fund Loan Repayment. Strategic Priorities: Targeted Redevelopment Mission: Ensuring an attractive, clean, safe, inclusive community that enhances the quality of life for al/people and preserves the public trust Commissioner introduced the following resolution and moved its adoption: EDA RESOLUTION NO. AUTHORIZING THE PREPAYMENT OF THE AMENDED AND RESTATED TAX INCREMENT REVENUE NOTE (SHINGLE CREEK CROSSING PROJECT) AND A PORTION OF THE EDA'S INTERNAL LOAN FROM THE TIF DISTRICT NO. 2 ACCOUNT WHEREAS, the Economic Development Authority of Brooklyn Center, Minnesota, Minnesota ("EDA") has heretofore established its Tax Increment Financing District No. 5 (the "TIF District") within its Housing Development and Redevelopment Project No. 1; and WHEREAS, the City Council of the City of Brooklyn Center, Minnesota (the "City") has adopted a resolution awarding the sale of the City's General Obligation Tax Increment Bonds, Series 2016B (the "Series B Bonds") to refund the Amended and Restated Tax Increment Revenue Note (Shingle Creek Crossing Project) (the "Note") issued by the EDA to Shingle Creek, LLC (the "Developer") and its Taxable General Obligation Tax Increment Refunding Bonds, Series 2016C (the "Series C Bonds" and, together with the Series B Bonds, the "Bonds") to refund a portion of the EDA's internal loan from the TIF District No. 2 account which financed certain costs incurred by the Developer (the "Refunded Obligations"). WHEREAS, the City and the EDA have agreed to enter into a tax increment pledge agreement pursuant to which the tax increments derived from the TIF District which are not otherwise pledged to other obligations of the TIF District in an amount equal to 105% of the debt service on the Bonds will be pledged to the Bonds. NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of the Economic Development Authority of Brooklyn Center, Minnesota, as follows: 1.Findings. The EDA hereby finds that is necessary and desirable, for debt service cost savings and to stimulate development in the TIF District and within the EDA's Housing Development and Redevelopment Project No. 1, that the EDA prepay the Note and a portion of the EDA's internal loan from the TIF District No. 2 from the proceeds of the Bonds. 2.Authorization to Prepay. The City Finance Director is hereby authorized to apply the proceeds of the Bonds to prepay the Note and to prepay a portion of the EDA's internal loan all as set forth in the resolution of the City Council of the City awarding the sale of the Bonds (the "Bond Award Resolution") and to take any other action necessary to carry out the intent of this resolution and the Bond Award Resolution. November 28, 2016 Date President ATTEST: Secretary 490482v1 JSB BR291-366 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. 2 4904820 JSB BR291-366