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EDA Minutes 02-13-2013MINUTES ECONOMIC DEVELOPMENT AUTHORITY (EDA) Wednesday, February 13, 2013 - 6:00 p.m. Mississippi Room Commissioners Present: President Bill Demeules, Vice President Bill Tapper, Treasurer Tracy Hinz, Matt Frie, Rod Dragsten and Council Member Brian Stumpf Commissioners Absent: Council Member Tom Perrault Staff Present: Community Development Director Angela Schumann, Finance Director Wayne Oberg 1. Call to Order Bill Demeules called the meeting to order at 6 p.m. 2. Approve Meeting Minutes a) January 9, 2013 ROD DRAGSTEN MOVED TO APPROVE THE JANUARY 9, 2013 EDA MINUTES. BILL TAPPER SECONDED THE MOTION. MOTION CARRIED 6 -0. 3. Consideration of additional agenda items a) Real Estate Tax Penalties - Rod Dragsten asked about the $2,000 penalty for unpaid real estate taxes. Finance Director Wayne Oberg said that the taxes had now been paid and that the penalties would be returned. 4. Consideration of approving payment of bills BRIAN STUMPF MOVED TO APPROVE PAYMENT OF BILLS THROUGH JANUARY 29`h, 2013. TRACY HINZ SECONDED THE MOTION. MOTION CARRIED 6 -0. 5a. Consideration of Annual Meeting - Elect Officers The EDA was asked to make one -year appointments for the officer positions of President, Vice - President, Secretary and Treasurer and Vice Treasurer. Tracy Hinz asked if appointments were subject to term limits. After a brief review of the EDA by -laws, staff indicated there are no term limits specified. Officer election does not require ratification by City Council. TRACY HINZ MOVED TO APPOINT BILL DEMEULES EDA PRESIDENT. MATT Economic Development Authority Minutes - 02/13/13 FRIE SECONDED THE MOTION. MOTION CARRIED 6 -0. MATT FRIE MOVED TO APPOINT BILL TAPPER EDA VICE - PRESIDENT. ROD DRAGSTEN SECONDED THE MOTION. MOTION CARRIED 6 -0. BILL DEMEULES MOVED TO APPOINT TRACY HINZ EDA TREASURER. BILL TAPPER SECONDED THE MOTION. MOTION CARRIED 6 -0. Matt Frie asked about the Vice Treasurer position. Staff said that, in the past, the duties of the Vice Treasurer had been assigned to the Finance Director and the duties of the Secretary had been assigned to the Executive Director. Staff agreed to continue to provide clerical support and financial reporting and oversight and indicated that the Vice Treasurer position would review the financials and be authorized to sign in the absence of the Treasurer. BILL DEMEULES MOVED TO APPOINT MATT FRIE VICE TREASURER. TRACY HINZ SECONDED THE MOTION. MOTION CARRIED 6 -0. 5b. Annual Meeting - Acceptance of EDA Fund Balance Report Wayne Oberg highlighted recent and upcoming changes and future opportunities within the TIF districts. He also indicated that investment earnings would be spread across all districts. Mississippi Shores was not decertified in 2012 as it still presented an increment opportunity and it was not yet required to be decertified. Surplus increment in TIF 1 -5, which had been decertified in December 2012, was allocated to the 7`" Street West extension project. TIF District 1 -6 (Raindance) must be decertified at the end of 2013. The increment balance would, at that time, be dedicated toward a project within the city development zone. Oberg indicated that there will likely be nearly $1.1 million to be reallocated from TIF 1 -22 to the EDA General Fund rather than the previously cited $890,000 identified in the knock -down analysis. This reallocation would allow for funds to be used for various projects with fewer restrictions. Tracy Hinz asked if the EDA would need a game plan for dealing with districts that are in the red. Oberg explained that in some cases funds would eventually catch up and pointed out that, for example, the debt service on TIF 1 -34 would end before the TIF District ended. Matt Frie asked what fund would be shorted if a TIF District ended up with a negative fund balance. Oberg said that the difference could be made up through the EDA General Fund. Tracy Hinz asked about the outstanding GMEF loan. Staff said that the mortgagee had been working through circumstances surrounding facility construction and had agreed to Economic Development Authority Minutes - 02/13/13 set up a loan payment plan. Staff will continue to monitor this issue. Oberg noted that a significant portion of the City's investment portfolio extends out beyond 10 years. He summarized that the EDA General Fund balance has improved since his initial briefing with the EDA in July 2012. BILL TAPPER MOVED TO ACCEPT THE 2012 EDA FUND BALANCE REPORT. MATT FRIE SECONDED THE MOTION. MOTION CARRIED 6 -0. 5c. Consideration to Review EDA Enabling Resolution Staff summarized that EDA Attorney Martha Ingram of Kennedy & Graven had recommended amending Section 4.01 of the EDA Enabling Resolution to reflect a change in the designation of the Executive Director. The resolution language should be amended to state, "The City Administrator or any other person designated in writing by the City Administrator and approved by the majority of the EDA members shall be designated as your Executive Director." Staff pointed out that Section 1.06 of the Enabling Resolution stated that amending the resolution would require that the EDA call for and conduct a public hearing. The EDA could formally adopt the resolution at a hearing in March. Bill Tapper noted that the 2012 version of Section 2.05 of the enabling resolution indicated that all members of the EDA must be either residents of the city, business owners in the city, or property owners in the city. This had been a change from previous versions of the resolution which had required City residency. Staff noted as well that, according to Section 6.01, the EDA must submit plans for development to the City Council for ratification. Bill Demeules suggested adding language indicating that the revised resolution would supercede previous EDA enabling resolutions. Staff agreed to also make that change, if needed. BILL TAPPER MOVED TO CALL FOR A PUBLIC HEARING TO AMEND THE EDA ENABLING RESOLUTION PER RECOMMENDATION OF THE EDA ATTORNEY AS PRESENTED. ROD DRAGSTEN SECONDED THE MOTION. MOTION CARRIED 6 -0. 5d. Review and adopt EDA Bylaws Staff summarized that EDA Attorney Martha Ingram of Kennedy & Graven had also recommended amending Article IV of the EDA bylaws to reflect a change in the designation of the Executive Director. The language in the bylaws would be amended to state, "The City Administrator or their appointed designee shall be designated as the Executive Director of the Authority." Economic Development Authority Minutes - 2/13/13 Tracy Hinz asked if the bylaws should reflect the change in language in the resolution in its use of the word "member" rather than "commissioner." Staff agreed to ask the EDA attorney the reason for the change in language and to determine if it should be worded in the same manner in the bylaws. Staff indicated that a public hearing would not be required to amend the EDA bylaws. MATT FRIE MOVED TO TABLE ADOPTION OF THE BYLAWS OF THE ECONOMIC DEVELOPMENT AUTHORITY. BILL TAPPER SECONDED THE MOTION. MOTION CARRIED 6 -0. 6. Consideration to adopt a management scenario for TIF District 1 -22 The EDA was asked to adopt a management scenario for TIF 1 -22. Scenario A would keep the district intact and allow it to continue to generate increment until its required decertification date. This would provide the EDA the maximum amount of financial resources (through pooling of the increment) for achieving redevelopment goals. Scenario B would allow for some pooling expenditures with the removal of all parcels without obligation from the district. Scenario C would decertify all parcels within TIF 1 -22 except those with remaining obligations. It would not utilize increment funds available under pooling but rather return unspent increment to Wright County. This would return the most funds directly to the City. The EDA briefly discussed how the scenarios would impact its ability to accomplish overall economic development goals. BILL TAPPER MOVED TO RECOMMEND SCENARIO A AS THE MANAGEMENT STRATEGY FOR TIF DISTRICT 1 -22 AND TO DIRECT STAFF TO PREPARE A RESOLUTION FOR ADOPTION OF THE SAME. MATT FRIE SECONDED THE MOTION. MOTION CARRIED 6 -0. Consideration of Director's Report Embracing Downtown & reStoreing Downtown - One remaining tenant signed a lease and agreed to pay rent through May. Tracy Hinz asked if actual relocation expenses had been in line with projections. Staff noted that there had been unanticipated costs involved in keeping the building open. 8. Adiourn MATT FRIE MOVED TO ADJOURN THE MEETING AT 6:51 P.M. ROD DRAGSTEN SECONDED THE MOTION. MOTION CARRIED 6 -0. Recorder: Ke Bum Approved: Attest: March 13, ' '' � J Development