Loading...
HomeMy WebLinkAbout2001-03-06 HRA Regular Meeting MINUTES OF THE EDINA HOUSING AND REDEVELOPMENT AUTHORITY HELD AT CITY HALL MARCH 6, 2001 - 7:00 P.M. ROLLCALL Answering rollcall were Commissioners Housh, Hovland, Kelly, Masica and Chair Maetzold. CONSENT AGENDA APPROVED Motion made by Commissioner Masica and seconded by Commissioner Hovland approving the Edina Housing and Redevelopment Authority Agenda as presented. Rollcall: Ayes: Housh, Hovland, Kelly, Masica and Chair Maetzold Motion carried. *MINUTES OF THE REGULAR MEETING OF FEBRUARY 20, 2001, APPROVED Motion made by Commissioner Masica and seconded by Commissioner Hovland approving the Minutes of the Regular Meeting of the Edina Housing and Redevelopment Authority for February 20, 2001. Motion carried on rollcall vote - five ayes. HRA RESOLUTION NO. 2000-1 BUDGET AMENDMENTS TO 50T' AND EDINBOROUGH TIF DISTRICTS APPROVED Assistant City Manager Anderson explained that two of the City's Tax Increment Districts are classified as 11pre-79" districts according to the tax increment statutes. According to the statutes, pre-79 districts (50th 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 four tax increment districts - Centennial, Edinborough, Southdale and 50th TIF districts. Under the current structure, the City pays the debt service out of the Centennial District and transfers funds from 50th or Edinborough 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. Staffs concern is the narrow view the Office of the State Auditor has been taking on the interpretation of TIF statutes. A chance exists that the Auditor's office could view the transfer of funds to the Centennial district as an expenditure outside of bond principal and interest. Additionally, there is proposed TIF legislation that would prevent the City from making administrative amendments to TIF budgets after April 30, 2001. In an effort to protect against adverse legislation and/or different interpretation of the statutes by the State Auditor, this amendment increases the pre-79 districts' principal and interest budgets to accommodate the Centennial debt budget in both districts. This does not increase the expenditures for any district. It does, in effect, budgets Centennial's debt in three districts rather than one. Commissioner comments 1 Commissioner Housh inquired whether there are other communities in the same "pooled debt" situation. Attorney Gilligan said there are a number of cities in the same situation and staff is trying to be proactive by introducing the amendment at this time. Commissioner Housh introduced the following resolution and moved its approval: HRA RESOLUTION NO. 2001-1 RESOLUTION MODIFYING BUDGETS TAX INCREMENT FINANCING DISTRICTS #1200 AND #1201 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. 1.4. The adopted TIF Plans authorize the use of funds, however, the format of the budget is not consistent with the current reporting requirements of the Office of the State Auditor. 1.5. Proposed legislation, if adopted, would prohibit the HRA and the City from making any modifications to the TIF Plans after April 30, 2001, including the reallocation of authorized expenditures to comply with statutory reporting criteria. 2. Action 2.1. The budget for District#1200 (50th and France) is hereby modified to increase the line item for Bond Principal Payments to $34,460,000 and the line item for Bond Interest Payments to $24,468,956. 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 adoption of this modification. 2.2. The budget for District #1201 (Edinborough) is hereby modified to increase the line item for Bond Principal Payments to $50,650,000 and the line item for Bond Interest Payments to $39,830,627. 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 adoption of this 2 modification. Adopted this 6th day of 7Mar h, 2 1. ATTEST: Execu ive Director Chair Commissioner Hovland seconded the motion. Ayes: Housh, Hovland, Kelly, Masica, Maetzold Motion carried. *CONFIRMATION OF CLAIMS PAID Motion made by Commissioner Masica and seconded by Commissioner Hovland approving the payment of Claims dated February 22, 2001, and consisting of one page totaling $479,058.89. Motion carried on rollcall vote - five ayes. There being no further business on the Edina Housing and Redevelopment Authority Agenda, Chair Maetzold declared the meeting adjourned at :0 P.M. Executive Director 3