EDA Minutes 08-24-2015 (Special Meeting)MINUTES
SPECIAL MEETING - ECONOMIC DEVELOPMENT AUTHORITY
Monday, August 24, 2015 — 5:45 p.m., Monticello Community Center
Commissioners: Bill Demeules, Bill Tapper, Tracy Hinz, James Davidson, Steve Johnson,
Tom Perrault, Lloyd Hilgart
City Council: Brian Stumpf, Charlotte Gabler, Lloyd Hilgart, Tom Perrault, Glen
Posusta
Staff. Jeff O'Neill, Angela Schumann, Wayne Oberg, Tammy Omdahl
(Northland Securities)
1. Call to Order
Bill Demeules called the meeting to order at 5:45 p.m.
2. Purpose
Angela Schumann stated that the purpose of the special meeting is to invite City Council
feedback related to levy options and budget considerations and to provide an opportunity
for the EDA to further discuss issues or take action.
Schumann summarized that the EDA had reviewed its financial resources through a
series of workshops and determined that it is limited in its capacity to address the broad
economic development initiatives identified in its annual workplan. She specified that the
three primary sources of revenue available to the EDA include pooled increment in TIF
1 -22, excess increment in TIF 1 -6 and the annual budget request allotment from the
City's General Fund.
Schumann noted that the EDA had included researching the concept of a levy as a
workplan goal in response to the need to identify an alternative recurring revenue source
to fund ongoing operational needs and accomplish strategic objectives related to
redevelopment, revitalization and housing. Schumann pointed out that establishing a levy
at the maximum allowable amount under statute could provide an additional $155,000
year to year.
Schumann explained that an EDA levy is established by the City for the benefit of the
EDA and within the City's overall levy and an HlaA levy is a separate special benefit
levy that would exist outside of the City's levy limits. She said each type of levy has a
maximum amount per statute, each is listed as a separate line item on tax statements and
each requires annual EDA and Council approval.
Tammy Omberg, of Northland Securities, noted that it is a policy decision to establish a
Special EDA Minutes: 8/24/15
levy and recommended that the Council focus on whether or not it supports creating
additional tax revenue for economic development. She confirmed that the level of City
Council control would be the same for either type of levy.
Schumann pointed out that the Council would have oversight over the EDA's workplan,
levy and budget. In addition, Schumann suggested that the EDA could formalize its
current practice of inviting Council input as it considers the purchase or sale of property
and provide an annual year end economic development report.
Schumann noted that staff recommend that the EDA approve an HRA levy and budget.
She clarified that an HRA levy, adopted at the full allowable statutory limit, would
generate approximately $280,000. This would fund the day -to -day operations of the
EDA, estimated at $150,000, and the balance would be available to fund housing and
redevelopment activities. The proposed 2016 EDA budget would total $305,000 with this
addition through the levy.
Wayne Oberg pointed out that the current EDA allocation 1.1% of the City's general
levy. An HRA levy would equate to an additional 2.2% commitment. He indicated,
however, that the impact to taxpayers could be significantly less than 3.3 %.
There was considerable discussion about the cost of development, the value of leveling
the playing field on some properties to initiative development, the need to establish a
mechanism for replenishing the EDA General Fund, the emphasis on hiring an economic
director, and the importance of making a commitment to investing in the community
through economic development.
BILL TAPPER MOVED TO ADOPT EDA RESOLUTION EDA- 2015 -008
AUTHORIZING THE LEVY OF A SPECIAL BENEFIT LEVY PURSUANT TO
MINNESOTA STATUTES, SECTION 469.033, SUBDIVISION 6 AND APPROVAL OF
A BUDGET FOR FISCAL YEAR 2016. TRACY HINZ SECONDED THE MOTION.
MOTION CARRIED 6 -1 WITH TOM PERRAULT VOTING IN DISSENT.
Schumann pointed out that this item would be presented for Council consideration on
September 14th. The levy must be filed with Wright County by September 15th.
4. Adiournment
BILL TAPPER MOVED TO ADJOURN THE SPECIAL MEETING AT 6:19 PM.
TOM PERRAULT SECONDED THE MOTION. MOTION CARRIED 7 -0.
Recorder: Kerry Bum'
Approved: Octob 14, 2 i
Attest:
Angela umann�__V/ y Develop ent Director
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