HomeMy WebLinkAbout1990-02-20 HRA Regular Meeting MINUTES 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 Commissioners/Members Kelly, Paulus, Rice, Smith
and Chairman/Mayor 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 AMENDMENTS TO 50TH & 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 HRA 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. For bonds for
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. They can be implemented individually or in combination
with any other alternative.
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. In staff's view it
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.
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.
H.R.A./Council Minutes - 2/20/90
Page 2
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. A concurrent schedule has been drafted by Public Financial
Systems as follows:
February 20 Set Tax Increment Hearing
Call for bond sale for the 50th & France district, authorize
staff to establish final maturity schedule
February 23 Send Redevelopment Plan amendment to County and School
District
Submit hearing and bond publications to papers
March 3 Publish bond sale in Northwestern Financial Review
March 7 Publish hearing and bond
sale in official newspaper
March 7, 8 Bond Rating Review
March 19 Conduct bond sale continent on Hearing
March 26 Conduct Hearing
March 28 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. No comments
were heard.
Member Smith 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 proceed with the necessary documents for the tax increment
bond sale to include new project funds for the 50th & France area.
Motion for adoption of the resolution was seconded by Member Kelly.
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 Edina Redevelopment Plan area.
Motion for adoption of the resolution was seconded by Member Smith.
Rollcall:
Ayes: Kelly, Paulus, Rice, Smith, Richards
Resolution adopted.
Motion was made by Commissioner Smith and was seconded by Commissioner Paulus for
adjournment of the HRA. Motion carried unanimously. Ile
xelT ive Direct6r
11(a VA 4
City Clerk