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HomeMy WebLinkAbout2005-12-20 HRA Regular Meeting MINUTES OF THE EDINA HOUSING AND REDEVELOPMENT AUTHORITY HELD AT CITY HALL DECEMBER 20, 2005, 7:00 P.M. ROLLCALL Answering rollcall were Commissioners Housh, Hulbert, Masica, Swenson and Chair Hovland. CONSENT AGENDA APPROVED Motion made by Commissioner Masica and seconded by Commissioner Housh approving the Consent Agenda for the Edina Housing and Redevelopment Authority as presented. Rollcall: Ayes: Housh, Hulbert, Masica, Swenson, Hovland Motion carried. *MINUTES OF THE REGULAR MEETING OF THE EDINA HOUSING AND REDEVELOPMENT AUTHORITY FOR DECEMBER 6, 2005, APPROVED Motion made by Commissioner Masica and seconded by Commissioner Housh approving the Minutes of the Regular Meeting of the Edina Housing and Redevelopment Authority for December 6,2005, as presented. • Motion carried on rollcall vote—five ayes. HRA RESOLUTION NO. 2005-4, APPROVING BUDGET AMENDMENTS TO 50TH AND FRANCE AND CENTENNIAL LAKES TAX INCREMENT DISTRICTS Director Hughes informed the Authority that two of the City's Tax Increment Districts (TIF) are classified as "pre-79" districts, according to the tax increment statutes. According to the statutes, pre-79 districts (50th & France and Edinborough) may only expend funds to pay debt service after April 1, 2001. The City issued "pooled debt" for the acquisition and construction of Centennial Lakes Park in 1988 and 1989. By issuing "pooled debt", the principal and interest for the debt could be paid by three tax increment districts — Centennial Lakes, Edinborough and 50th & France TIF districts. Mr. Hughes noted that under the current structure, the City pays the debt service out of the Centennial Lakes District and transfers funds from the 50th & France and Edinborough districts to help pay the debt service. At the time of issuance, this made the most sense since the debt is directly attributable to the Centennial Lakes district. The original $10,000,000 budget set for the transfer from the 501h & France district to Centennial Lakes has been transferred as of December 31, 2004. According to the estimated tax increment revenues expected to be received over the remaining life of the district, if no further transfers are made between 50th & France and Centennial Lakes, the 501h district would decertify in 2009, with a balance in excess of $5,000,000. Transferring the proposed amount over the next 5 years would add to the potential for additional projects to be funded in the Centennial Lakes District and the entire Southdale Development District in the future. The Centennial Lakes tax increment district will not be decertified until December 31, 2014. The City adopted the last budget amendment in March . 2001. 1 y Commissioner Masica questioned where the boundaries are for the Centennial Lakes TIF District. Mr. Hughes said a small portion of the Centennial Lakes District is located in the Edinborough TIF district. Ms. Masica asked which TIF district incorporated the greater Southdale area. Mr. Hughes responded not the TIF district but there exists a `development district' which extends from I-494 to the Crosstown and from France to the City limits to the east. He said increments derived from the three districts would be eligible to be spent on qualifying projects within that larger development district; i.e. roads or street improvements. Ms. Masica inquired what other public projects could be considered. Attorney Gilligan responded that in addition to roads and streets, public utilities, sewer, water, and development assistance could utilize TIF funds. He added certain restrictions apply so funds must not be used for parks, recreational or conference facilities. Typical development uses would be similar to Grandview Square. Ms. Masica inquired what funds would be transferred. Mr. Hughes said the plan amendment as proposed would be for a $5,000,000 transfer in total. Commission Swenson asked if everything is being shifted from the 50th &France area to the new district to the other. Mr. Hughes said that future increments that come out of the 50th & France area will be shifted for the other districts. He added the funds can no longer be used at the 50th& France area and the only thing that could be done are to retire debt incurred prior to 2001. Commissioner Hulbert asked if the funds would go to the General Fund if it were not transferred. Mr. Hughes said amounts remaining would be reallocated and split between the taxing entities. Ms. Hulbert inquired whether there was any disadvantage to making the proposed transfer. Mr. • Hughes and Attorney Gilligan said there were no disadvantages. Commissioner Swenson introduced the following Resolution and moved its adoption: HRA RESOLUTION NO. 2005-4 RESOLUTION MODIFYING BUDGETS TAX INCREMENT FINANCING DISTRICTS #1200 AND #1203 BE IT RESOLVED by the Board of Commissioners (the "Board") of the Housing and Redevelopment Authority (the "HRA") for the City of Edina, Minnesota (the "City") as follows: 1. Background 1.1. The tax increment financing plans (the "TIF Plans") for the following tax increment financing districts (the "TIF Districts") allow for the pooling of revenues to support bonded indebtedness: District #1200 (50th and France), District #1201 (Edinborough), and District#1203 (Centennial Lakes). 1.2. All of the TIF Districts were established by the HRA prior to 1990. 1.3. The TIF plans currently authorize tax increment revenues to be transferred from District #1200 and District #1201 into District #1203 for the payment of principal and interest on bonded indebtedness. It is necessary and desirable to allow for the ability to account the use of tax increment revenues to pay principal and interest on bonded indebtedness as either a transfer of funds or as a direct expenditure. To comply with the reporting requirements of the Office of the State Auditor it is necessary to modify the budget for District #1200 (50th and France) and District #1203 (Centennial Lakes) to provide for 2 A ' additional transfer of tax increment revenue from District #1200 (50`h and France) to District#1203 (Centennial Lakes). 2. Action 2.1. The budget for District#1200 (501h and France)is hereby modified to increase the line item for Transfers Out by $5,000,000 and the budget for District #1203 (Centennial Lakes) is hereby modified to increase the item for Transfers In by $5,000,000. The Board finds that the modifications do not increase authorized expenditures or increase bonded indebtedness and,therefore, a public hearing is not required prior to the ado do of this modification. Adopted this 20th day of December, 005 ATTEST: ExicutYve Directo Chair Commissioner Masica seconded the motion. Ayes: Housh, Hulbert, Masica, Swenson, Hovland Motion carried. Commissioner Hulbert made a motion to adjourn the meeting of the Edina Housing and Redevelopment Authority. Commissioner Masica seconded the motion. Ayes: Housh, Hulbert, Masica, Swenson, Hovland Motion carried. Executive Director 3