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HomeMy WebLinkAbout19900220_joint225 I4lMJTES OF THE JOINT MEETING OF THE EDINA HOUSING AND REDEVELOPMENT AUTHORITY/CITY COUNCIL HELD AT EDINA CITY HALL FEBRUARY 20, 1990 A joint meeting of the Edina Housing and Redevelopment Authority and the City Council was convened to consider concurrently Tax Increment Financing Bonds/Call for Sale. Action was taken by the HRA and Council as recorded. ROLLCALL Answering rollcall were Commissionersflembers Kelly, Paulus, Rice, Smith and Chairman/Hayor Richards. MINUTES of the HRA of February 5, 1990 were approved as submitted by motion of Commissioner Smith, seconded by Commissioner Kelly. Ayes: Kelly, Paulus, Rice, Smith, Richards Motion carried. RESOLUTIONS ADOPTED AUTHORIZING STAFF TO PROCEED WITH DOCUMENTS FOR TAX INCREMENT BOND SALE AND AMENDBENTS TO 50TII & FRANCE REDEVELOPMENT PLAN Executive Director Hughes recalled that at the February 5, 1990 meeting the HRA had authorized staff and legal counsel to proceed on work concerning the pre-1979 tax increment financing districts (Edinborough and 50th/France Districts). The HEU was advised that state law requires that bonds issued in those districts prior to April 1, 1990 may be repaid with increments collected out to the year 2009. Bonds issued after April 1, 1990 may use increments collected only until the year 2001. The existing bonds for the 50th/France District will be totally paid in 1993. Existing bonds in the Edinborough District, which includes part of the Centennial Lakes project, already enjoy increments out to the year 2009. future Centennial Lakes improvements that would be issued after April 1, 1990 increments could only be used out until the year 2001. Director Hughes observed that four alternatives have been studied for consideration by the HRA. with any other alternative. For bonds for They can be implemented individually or in combination 1) Refinancing Existing Debt Service/Edinborough - Because of the relatively small amount of maturities that could be refinanced, this would provide modest benefits at best. Refinancing is not recommended if the sole purpose is to extend the debt service. 2) Providing New Project Funds/Centennial Lakes - Bonds could be sold now for future projects at Centennial Lakes and pledge the Edinborough district for those bonds. This alternative is not recommended because future projects at Centennial Lakes would actually occur in the new Centennial Lakes district, not the old Edinborough district and would be supported by increment received from the new Centennial Lakes district. 3) Providing New Project Funds/50th & France - The 50th & France area has a current need for funding and has a demonstrated ability to pay. The Council has conducted a project hearing and authorized an improvement project for this area. Staff is meeting with the steering committee and the 50th & France Business District Association regarding final plans for a 1990 project. would be prudent to now sell bonds for that project and also include in that sale proceeds that could be used to construct additional parking if the Council should so decide at a future date. In staff’s view it 4) Expansion of the 50th & France Redevelopment Area - The 50th & France Redevelopment Plan area could be expanded to encompass the Southeast Edina Redevelopment Plan area. This would allow for the excess tax increment from the 50th & France district to be used if needed to offset possible shortfalls in the Southeast Edina district due to the homestead credits problem discussed at a prior meeting. This alternative is also recommended by staff. 226 2/20/90 Director Hughes concluded that if the HRA/Council concurs with and wishes to pursue these two recommendations the following actions would be required: 1) Authorize staff to proceed with the necessary documents for a bond sale, and 2) Authorize staff to draft amendments to the 50th & France Redevelopment Plan to allow its expansion. Systems as follows: I A concurrent schedule has been drafted by Public Financial February 20 February 23 March 3 March 7 March 7, 8 March 19 March 26 March 28 Set Tax Increment Hearing Call for bond sale for the 50th & France district, authorize staff to establish final maturity schedule Send Redevelopment Plan amendment to County and School District Submit hearing and bond publications to papers Publish bond sale in Northwestern Financial Review Publish hearing and bond sale in official newspaper Bond Rating Review Conduct bond sale continent on Hearing Conduct Hearing Close Bond Issue Chairman/Mayor Richards called for comments and/or questions from the Council Members and the audience on the two recommendations being considered. were heard. No comments Member Smith introduced the following resolution and moved its adoption: BE IT RESOLVED by the City Council of Edina, Minnesota that it hereby authorizes and directs staff to proceed with the necessary documents for the tax increment bond sale to include new project funds for the 50th h France area. Motion for adoption of the resolution was seconded by Member Kelly. RESOLUTION Rollcall : Ayes: Kelly, Paulus, Rice, Smith, Richards Resolution adopted. Member Paulus introduced the following resolution and moved its adoption: RESOLUTION BE IT RESOLVED by the City Council of Edina, Minnesota, that it hereby authorizes and directs staff to draft amendments to the 50th and France Redevelopment Plan to emcompass the Southeast Ed- Redevelopment Plan area. Motion for adoption of the resolution was seconded by Member Smith. Rollcall : Ayes: Kelly, Paulus, Rice, Smith, Richards Resolution adopted. Motion vas made by Commissioner Smith and was second adjournment of the HRA. Motion carried unanimously. E'xecukive Dirgctq