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HomeMy WebLinkAbout2008-11-18 HRA Regular Meeting MINUTES OF THE EDINA HOUSING AND REDEVELOPMENT AUTHORITY NOVEMBER 18, 2008 7:00 P.M. ROLLCALL Answering rollcall were Commissioners Bennett, Housh, Masica, Swenson and Chair Hovland. CONSENT AGENDA ITEMS APPROVED Motion by Commissioner Swenson and seconded by Commissioner Masica approving the Consent Agenda for the Edina Housing and Redevelopment Authority as presented. Rollcall: Ayes: Bennett, Housh, Masica, Swenson, Hovland Motion carried. RESOLUTION NO. 2008-3 ADOPTING ADMINISTRATIVE MODIFICATION TO THE TAX INCREMENT FINANCING PLAN FOR TAX INCREMENTS FINANCING DISTRICTS NOS. 1200, 1201 AND 1203 Finance Director Wallin gave a brief overview of the needed budget amendments. He explained that two of the City's Tax Increment Districts were classified as "pre-79" districts according to the tax increment statutes. According to the statutes, pre-79 districts (50th and 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 3 tax increment districts — Centennial Lakes, Edinborough, and 501h and France TIF districts. Under the current structure, the City pays the debt service out of the Centennial Lakes District and transfers funds from the 50th 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 district. The original 501h and France budget of $10,000,000 was increased to $15,000,000 in December 2005 and as of December 31, 2007 $675,000 remains in the budget for transfers to Centennial Lakes. For Edinborough, $168,301 remains in the original budget of $17,000,000 for transfers to Centennial Lakes. According to the =stimated tax increment revenues expected to be received in 2008 and the first half of 2009, if no further transfers over the current balance were made between the 501h and France and Edinborough districts and the Centennial Lakes district, the 50th district would decertify in 2009 with a balance of approximately $1,300,000 and the Edinborough district would decertify with a balance of approximately $4,000,000. Decertifying the 50th and France and Edinborough districts with the above balances would mean the transfer of the balance to Hennepin County with the County reallocating the payments back to the taxing jurisdictions based on their percentage share of the tax dollar which for The City of Edina is approximately 20%. Transferring the proposed amount 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 December 2005. Member Masica made a motion, seconded by Commissioner Housh to adopt Resolution No. 2008-03 adopting the required administrative modification to the Tax Increment Financing Plan for Tax Increment Financing District Nos. 1200, 1201 and 1203. Ayes: Bennett, Housh, Masica, Swenson, Hovland. Motion Carried. *MINUTES OF THE REGULAR MEETING OF THE EDINA HOUSING AND REDEVELOPMENT AUTHORITY OF NOVEMBER 3, APPROVED Motion made by Commissioner Swenson and seconded by Commissioner Masica approving the minutes of the Regular Meeting of the Edina Housing and Redevelopment Authority from November 3, 2008. Motion carried on rollcall vote —five ayes. There being no further business on the HRA Agenda, the Chair declared t me t ng a 7o ne a 7:10 p.m. Exec 4e e Director