EDA Minutes 08-12-2015 (Special Meeting)MINUTES
SPECIAL MEETING - ECONOMIC DEVELOPMENT AUTHORITY
Wednesday, August 12, 2015, 4:30 PM - Monticello Community Center
Present: Bill Demeules, Bill Tapper, Tracy Hinz, Jim Davidson, Steve Johnson, Tom
Perrault, Lloyd Hilgart
Absent: None
Others: Angela Schumann, Jeff O'Neill, Wayne Oberg
1. Call to Order
Bill Demeules called the special meeting to order at 4:30 p.m.
2. Roll Call
Bill Demeules called the roll. All EDA commissioners were present.
3. Purpose
The purpose of the special meeting is to discuss the option of recommending an
EDA /HRA Levy.
Angela Schumann pointed out that the Wright County deadline to file a levy is September
15t". She proposed that the EDA invite City Council input at a joint meeting on August
24t1i and plan to recommend action at the September 9t" EDA meeting. This schedule
would enable Council to make a levy decision at its September 14t1i meeting.
Schumann explained that the EDA had requested additional information related to
various financial considerations to help frame the levy discussion in preparation for the
workshop with the City Council. She provided some level of detail related to each area
and responded to questions.
Schumann reported that Block 34 has cost $1,713,000 to -date. Schumann estimated that
it would cost $1,793,000 to acquire and control four additional parcels. The total Block
34 cost is estimated to be $3,400,000. Schumann also estimated $2,306,600 for Block 35,
$1,565,500 for Block 52, and $757,600 for Block 53, based on CMV acquisition costs.
Schumann outlined the proposed 2016 EDA operating budget. She explained that the
$140,000 budget would fund the EDA Director position, additional staff training, limited
funding for Market Matching, and the TIF Management Plan.
Schumann provided an overview of existing financial resources. She noted increment
generated in TIF Districts 1 -30 and 1 -39 and interest earnings on the GMEF balance. She
also mentioned that the revenue generated by leasing a 13.7 acre parcel south of the
industrial park for fanning purposes helps to pay the taxes owed on the property.
EDA Special Meeting Minutes: 8/12/15
Schumann explained that the EDA has a total of $2,500,000 available including the
General Fund balance, increment from TIF 1 -6, and cash flow from TIF 1 -22. She
pointed out that this revenue will fund operations through 2022.
There was much discussion related to how to summarize funding limitations. Schumann
pointed out that the cash flow analysis presented includes $3,224,000 in land held for
resale and TIF funding subject to housing expenditure restrictions. She proposed listing
these resources separately so that the cash flow projection more clearly identifies funding
actually available. She also suggested listing land that the EDA wants to sell separately.
There was some discussion about the various benefits of establishing a levy. There
seemed to be general agreement that a levy would enable the EDA to achieve its goals.
Schumann explained that the City Council would retain oversight and approvals related
to the EDA budget, modifying TIF districts, and EDA workplan ratification. She
suggested that the EDA may wish to provide further accountability by formalizing joint
meetings related to the purchase or sale of property and providing a year -end EDA
activities report subject to Council approval.
4. Adjourn
BILL TAPPER MOVED TO ADJOURN THE SPECIAL MEETING AT 5:52 PM.
TOM PERRAULT SECONDED THE MOTION. MOTION CARRIED 7 -0.
Recorder: Kerry Burrs 20
Approved: No -yeinber 18,
Attest:
a SA;� ann, Community Development Director
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