Loading...
HomeMy WebLinkAbout2020 01-13 EDAPE conomic Development Authority City Hall Council Chambers J anuary 13, 2020 AGE NDA 1.Call to Order The City Council requests that attendees turn off cell phones and pagers during the meeting. A copy of the full C ity Counc il packet, including E D A (E conomic Development Authority ), is available to the public. The packet ring binder is located at the entrance of the council chambers. 2.Roll Call 3.Approval of Consent Agenda The following items are considered to be routine by the Economic Development Authority (E D A) and will been acted by one motion. There will be no separate disc ussion of these items unless a Commissioner so requests, in whic h event the item will be removed from the c onsent agenda and considered at the end of Commission Consideration I tems. a.Approval of Minutes - Motion to approve the minutes for: December 2, 2019 December 9, 2019 b.Resolution A uthorizing an I nterfund L oan for A dvance of Certain Costs in Connection with a Tax I ncrement F inancing District Motion to approve a resolution authorizing an interfund loan for advance of certain costs in connection with a tax increment financing district. 4.Commission Consideration Items a.Resolution Electing Officers for the E conomic Development Authority in and for the City of B rooklyn Center - Approve Resolution Electing Officers for the Economic Development Authority in and for the City of Brooklyn Center b.Resolution Opting not to Waive L imited Tort L iability for 2020 - Motion to approve the attached resolution adopting the no waiver option for statutory tort liability insurance. 5.Adjournment Economic Development Authority DAT E:1/13/2020 TO :C ity C ouncil F R O M:C urt Boganey, City Manager T H R O U G H :D r. Reggie Edwards, D eputy C ity M anager BY:Barb S uciu, C ity C lerk S U B J E C T:A pproval of Minutes B ackground: I n accordance with M innesota S tate S tatute 15.17, the official records of all mee4ngs must be documented and approved by the governing body. S trategic Priories and Values: O pera4onal Excellence AT TA C H M E N TS : D escrip4on U pload D ate Type 12-2-19 12/23/2019 Backup M aterial 12-9-19 12/23/2019 Backup M aterial 12/02/19 -1- DRAFT 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 DECEMBER 2, 2019 CITY HALL – COUNCIL CHAMBERS 1. CALL TO ORDER The Brooklyn Center Economic Development Authority (EDA) met in Regular Session called to order by President Mike Elliott at 7:36 p.m. 2. ROLL CALL President Mike Elliott and Commissioners Marquita Butler, April Graves, and Dan Ryan. Commissioner Kris Lawrence-Anderson was absent and excused. Also present were Executive Director Curt Boganey, Deputy City Manager Reggie Edwards, Acting Finance Director Andy Splinter, and City Clerk Barb Suciu. 3. APPROVAL OF AGENDA AND CONSENT AGENDA Commissioner Ryan moved and Commissioner Butler seconded to approve the Agenda and Consent Agenda, and the following item was approved: 3a. APPROVAL OF MINUTES 1. November 12, 2019 – Regular Session Motion passed unanimously. 4. COMMISSION CONSIDERATION ITEMS 4a. RESOLUTION NO. 2019-XX ADOPTING THE FINAL BUDGET FOR THE ECONOMIC DEVELOPMENT AUTHORITY OF BROOKLYN CENTER, MINNESOTA FOR FISCAL YEAR 2020. Commissioner Graves moved and Commissioner Ryan seconded to adopt RESOLUTION NO. 2019-XX Approving the Final Budget for the Economic Development Authority of Brooklyn Center, Minnesota for Fiscal Year 2020. Motion passed unanimously. 5. ADJOURNMENT 12/02/19 -2- DRAFT Commissioner Graves moved and Commissioner Ryan seconded adjournment of the Economic Development Authority meeting at 7:37 p.m. Motion passed unanimously. 12/09/19 -1- DRAFT 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 DECEMBER 9, 2019 CITY HALL – COUNCIL CHAMBERS 1. CALL TO ORDER The Brooklyn Center Economic Development Authority (EDA) met in Regular Session called to order by President Mike Elliott at 8:48 p.m. 2. ROLL CALL President Mike Elliott and Commissioners Marquita Butler, April Graves, Kris Lawrence- Anderson, and Dan Ryan. Also present were Executive Director Curt Boganey, City Attorney Troy Gilchrist, and Mary Mullen, Timesaver Off Site Secretarial, Inc. 3. APPROVAL OF AGENDA AND CONSENT AGENDA Commissioner Lawrence-Anderson moved, and Commissioner Ryan seconded to approve the Agenda and Consent Agenda, and the following item was approved: 3a. RESOLUTION NO. 2019-22 APPROVING AN AMENDED COOPERATIVE AGREEMENT BETWEEN BROOKLYN CENTER AND BROOKLYN PARK REGARDING THE BROOKLYNK PROGRAM Motion passed unanimously. 4. COMMISSION CONSIDERATION ITEMS -None. 5. ADJOURNMENT Commissioner Lawrence-Anderson moved, and Commissioner Butler seconded adjournment of the Economic Development Authority meeting at 8:49 p.m. Motion passed unanimously. Economic Development Authority DAT E:1/13/2020 TO :C ity C ouncil F R O M:C urt Boganey, City Manager T H R O U G H :N/A BY:M eg Beekman, C ommunity D evelopment D irector S U B J E C T:Res olu+on A uthoriz ing an I nterfund L oan for A dvance of C ertain C os ts in Connec+on with a Tax I ncrement F inancing D istrict B ackground: O n November 26, 2019, the Economic D evelopment A uthority (E DA ) closed on its acquisi+on of the former Target property located at 6100 S hingle C reek Parkway. The property w ill be repurpos ed or redeveloped cons is tent with the overall mas ter plan for the O pportunity S ite. The intent is to recover the E DA’s inves tment through a combina+on of a future sale of the property and tax increment from a new or expanded tax increment financing dis trict. I n order for the E DA to pres erve its ability to reimburs e itself from future tax increment, a formal interfund res olu+on mus t be adopted within 60 days of the expenditure. Passage of the a>ached interfund loan resolu+on w ill pres erve the E DA’s ability to reimburs e itself for up to $5,000,000 to cover the cos ts of property acquisi+on and any other future expenditures, s uch as demoli+on. I n addi+on, the resolu+on provides for reimburs ement of up to $100,000 for administra+ve cos ts . Thes e costs can be reimbursed from future tax increment with 5% interes t, which is the maximum rate currently permi>ed by s tatue. The interfund loan resolu+on does not require the E DA to repay, rather it pres erves the opportunity to do so from future tax increment. B udget I ssues: There are no budget is s ues to consider with this item. S trategic Priories and Values: Targeted Redevelopment AT TA C H M E N TS : D escrip+on U pload D ate Type Res olu+on 1/7/2020 Resolu+on Le>er 1 631332v1BR291-386 Commissioner _______________________ introduced the following resolution and moved its adoption: EDA RESOLUTION NO .____ AUTHORIZING AN INTERFUND LOAN FOR ADVANCE OF CERTAIN COSTS IN CONNECTION WITH A TAX INCREMENT FINANCING DISTRICT WHEREAS, the Economic Development Authority of the City of Brooklyn Center, Minnesota (“EDA”) is considering establishing a Tax Increment Financing District which is anticipated to include certain real property located at or near 6100 Shingle Creek Parkway (the “Property”) in the City of Brooklyn Center, Minnesota (the “City”) or expanding Tax Increment Financing District No. 7 (Redevelopment District) to include the Property (alternatively as established or expanded, the “TIF District”) all pursuant to Minnesota Statutes, Sections 469.174 to 469.1794, as amended (the “TIF Act”); WHEREAS, the EDA may incur certain costs related to the TIF District which may be financed on a temporary basis from available City funds; WHEREAS, under Section 469.178, Subdivision 7 of the TIF Act, the EDA is authorized to advance or loan money from any fund from which such advances may be legally made in order to finance expenditures that are eligible to be paid with tax increments under the TIF Act; WHEREAS, the EDA has determined that it may pay for administrative costs associated with the establishment of the TIF District and certain other costs incurred in connection with the proposed development of the TIF District, including but not limited to acquisition of land and buildings in the TIF District (including the Property listed above), demolition and site preparation costs and costs of public infrastructure (the “Cost Advances”) on a temporary basis from the City’s general fund or any other fund, as determined by the City Finance Director, from which such advances, from time to time, may be legally made (the “Fund”) as an interfund loan pursuant to Minnesota Statutes, Section 469.178, Subd. 7; WHEREAS, the EDA hereby designates the Cost Advances as an interfund loan in accordance with the terms of this resolution and the TIF Act NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of the Economic Development Authority of the City of Brooklyn Center, Minnesota (“Board”) as follows: 1. The EDA will reimburse itself for the Cost Advances incurred on or after a date not more than 60 days prior to the date hereof (i.e. November 14, 2019) including without limitation (i) administrative costs incurred prior to the establishment of the TIF District, subject to the limitations of the TIF Act, in an aggregate amount not to exceed the greater of $100,000 and (ii) certain costs incurred in connection with land and building acquisition, demolition and site preparation, and public infrastructure in an aggregate amount not to exceed $5,000,000 (collectively, the “Interfund Loan”), together with interest at the rate of 5% per annum (which is the greater of the rates specified under Sections 270C.40 or 549.09 in accordance with Minnesota 2 631332v1BR291-386 Statutes, Section 469.178, Subdivision 7); provided, however, the City Finance Director is authorized to specify a lower rate. 2. Principal and interest (“Payments”) on the Interfund Loan shall be paid semiannually on February 1 and August 1 (each a “Payment Date”), commencing on the first Payment Date on which the EDA has received Available Tax Increment (defined below), or on any other dates determined by the City Finance Director, through the date of last receipt of tax increment from the TIF District (the “Maturity Date”). 3. Payments on the Interfund Loan will be made solely from the tax increment from the TIF District received by the City from Hennepin County in the 6-month period before any Payment Date, net of the amount paid under any agreement with a private developer or otherwise pledged to the payment of any obligation (the “Available Tax Increment”). Payments shall be applied first to accrued interest, and then to unpaid principal, unless otherwise specified by the City Finance Director. Interest accruing from the date of each Cost Advance will be compounded semiannually on February 1 and August 1 of each year and added to principal, unless otherwise specified by the City Finance Director. Payments on this Interfund Loan may be subordinated to any outstanding or future bonds, notes, or contracts secured in whole or in part with available tax increment, and are on a parity with any other outstanding or future interfund loans secured in whole or in part with available tax increment. 4. The principal sum and all accrued interest payable under this resolution is pre- payable in whole or in part at any time by the EDA without premium or penalty. 5. This resolution is evidence of an internal borrowing by the EDA in accordance with Section 469.178, subdivision 7 of the TIF Act, and is a limited obligation payable solely from Available Tax Increment pledged to the payment hereof under this resolution. The Interfund Loan shall not be deemed to constitute a general obligation of the State of Minnesota or any political subdivision thereof, including, without limitation, the City. Neither the State of Minnesota, nor any political subdivision thereof shall be obligated to pay the principal of or interest on the Interfund Loan or other costs incident hereto except out of Available Tax Increment. The EDA shall not have any obligation to pay any principal amount of the Interfund Loan or accrued interest thereon, which may remain unpaid after the termination or expiration of the TIF District. 6. The EDA may at any time make a determination to forgive the outstanding principal amount and accrued interest on the Interfund Loan, in whole or in part, on any date from time to time, to the extent permissible under law. 7. The EDA may from time to time amend the terms of this Resolution to the extent permitted by law, including without limitation amendment to the payment schedule and the interest rate; provided that the interest rate may not be increased above the maximum specified in Section 469.178. subd. 7 of the TIF Act. 8. This resolution is effective upon adoption. 3 631332v1BR291-386 January 13, 2020 Date President ATTEST: Secretary 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. Economic Development Authority DAT E:1/13/2020 TO :C ity C ouncil F R O M:C urt Boganey, City Manager T H R O U G H :Reggie Edw ards , D eputy City Clerk BY:Barb S uciu, C ity C lerk S U B J E C T:Res olu+on Elec+ng O fficers for the Economic D evelopment A uthority in and for the City of Brooklyn C enter B ackground: Minnes ota S tatute 469-096 provides that an Economic D evelopment A uthority s hall elect a pres ident, treasurer, and s ecretary on an annual bas is . E DA Resolu+on No. 87-06 also states in A r+cle I I , S ec+on 7, that the pres ident, vice-pres ident, s ecretary, treasurer, and assistant treasurer s hall be elected at the annual mee+ng of the A uthority and s hall hold office for one year or un+l s uccessors are elected and qualified. The a<ached res olu+on elects such posi+ons for the Economic D evelopment A uthority. B udget I ssues: There are no budget is s ues to consider. S trategic Priories and Values: O pera+onal Excellence AT TA C H M E N TS : D escrip+on U pload D ate Type Res olu+on 1/7/2020 Resolu+on Le<er E DA Bylaw Resolu+on 1/8/2020 Backup M aterial Commissioner introduced the following resolution and moved its adoption: EDA RESOLUTION NO. _______________ RESOLUTION ELECTING OFFICERS FOR THE ECONOMIC DEVELOPMENT AUTHORITY OF BROOKLYN CENTER, MINNESOTA WHEREAS, Minnesota Statutes Section 469.096 provides that an economic development authority shall elect a president, treasurer, and secretary on an annual basis. NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority of Brooklyn Center, Minnesota, that the Authority hereby elects the following officers to serve through December 31, 2020, or such later date as their successors are elected and qualified: President/Treasurer Vice-President Assistant Treasurer Secretary January 13, 2020 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. Economic Development Authority DAT E:1/13/2020 TO :C ity C ouncil F R O M:C urt Boganey, City Manager T H R O U G H :A ndrew S plinter BY:A ndrew S plinter, I nterim F inance D irector S U B J E C T:Res olu+on O p+ng not to Waive L imited Tort L iability for 2020 B ackground: Each year the E DA mus t choos e whether to w aive tort liability limit protec+ons of Minnes ota S tatutes 466.04 as part of the insurance policy renew al applica+on proces s . M .S . 466.04 states that the maximum liability for a city for any claim is $500,000 with an aggregate maximum of $1,500,000 per incident. I n pas t years the E DA has chos en not to waive the liability limits and the regular premium for ins urance has covered all claims. I f the E DA w ere to waive the limits s et by s tatute, it would be prudent to purchas e addi+onal ins urance coverage to cover possible higher aw ards in liability claims . P remiums for such insurance w ould be approximately $3,500 per year. B udget I ssues: The 2020 budget an+cipates leaving the no w aiver op+on in place for 2020 and has an+cipated ins urance premiums based on that no waiver op+on. Waiving the s tatutory limits w ould require that approximately $3,500 in addi+onal premium cos ts be allocated for 2020 and in each s ucceeding year. S trategic Priories and Values: S afe, S ecure, S table C ommunity AT TA C H M E N TS : D escrip+on U pload D ate Type E DA Res olu+on for Non-waiver of liability limits for 2020 12/16/2019 Cover Memo Commissioner introduced the following resolution and moved its adoption: EDA RESOLUTION NO._______________ RESOLUTION OPTING NOT TO WAIVE LIMITED TORT LIABILITY FOR 2020 WHEREAS, the Economic Development Authority of the City of Brooklyn Center has an option to waive its protection under the tort liability limitations contained in Minnesota Statutes 466.04; and WHEREAS, the statutory tort limit for 2020 is $500,000 per individual with an aggregate limit of $1,500,000 per incident; and WHEREAS, the Economic Development Authority of the City of Brooklyn Center has not opted to waive its rights to limited tort liability in past years and is required to make a declaration of its intention every year. NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority of the City of Brooklyn Center, Minnesota, that the Authority does not waive the monetary limits on municipal tort liability established by Minnesota Statutes 466.02 for 2019. January 13, 2020 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.