EDA Minutes 07-10-2013109[MTES
ECONOMIC DEVELOPMENT AUTHORITY (EDA) MEETING
Wednesday, July 10, 2.013 - 6:00 p.m. Mississippi Room
Present: Bill Tapper, Tracy Hinz, Matt Frie, Rod Dragsten, Tom Perrault, Brian Stumpf
Absent: Bill Demeules
Others: Jeff O'Neill, Angela Schumann, Wayne Oberg
1. Call to Order
Bill Tapper called the meeting to order at 6:00 p.m.
2. Approve Meeting Minutes
a) June 12th, 2013 — Regular Meeting Minutes
MATT FRIE MOVED TO APPROVE THE JUNE 12TH, 2013 REGULAR EDA MEETING
MINUTES. TOM PERRAULT SECONDED THE MOTION. MOTION CARRIED 6 -0.
b) May 8, 2013 — Special Meeting Minutes
TOM PERRAULT MOVED TO APPROVE THE MAY 8'H, 2013 SPECIAL EDA MEETING
MINUTES. ROD DRAGSTEN SECONDED THE MOTION. MOTION CARRIED 4 -0. (Matt
Frie and Brian Stumpf did not vote.)
3. Consideration of additional agenda items
a) Market Matching Update (Jeff O'Neill)
4. Consideration of approving payment of bills
Bill Tapper asked why the EDA was still paying bills related to the gas station property. Angela
Schumann said that the EDA is eligible for reimbursement from the Department of Commerce's
Petro Fund for the $7500 cost of the Limited Scope Investigation completed on that property. Braun
had billed the EDA $500 to apply for reimbursement on its behalf.
Rod Dragsten asked about the $14,000 bike shop invoice. Schumann indicated that the EDA is
obligated to pay that invoice as it was related to construction costs for the new building.
BRIAN STUMPF MOVED TO APPROVE PAYMENT OF BILLS IN THE AMOUNT OF
$15,501.94 THROUGH JULY 2013. ROD DRAGSTEN SECONDED THE MOTION. MOTION
CARRIED 6 -0.
5. Consideration to review for comment 2014 preliminary budget documents
Angela Schumann asked that the EDA begin to review the goals included in its 2013 workplan
as part of the 2014 budget preparation process. She suggested that the EDA determine if
existing goals are in line with current priorities or are in need of revision and consider what
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resources might be needed to accomplish those goals. This information would be used to update
the workplan and provide a framework which supports EDA funding needs. The City Council
would then consider the EDA's budget request, along with those submitted by City
departments, in terms of the overall goals of the City, and approve the level of funding required
to accomplish the goals identified.
This revised EDA budgeting approach was established in response to the need to create a
long -term and consistent funding source for the EDA general fund. An annual allocation from
the City enables the EDA to fund administrative activities such as marketing and staffing costs.
It also eliminates the need to split operating costs with the City.
Tracy Hinz asked if the EDA relinquished autonomy by seeking Council approval of its budget.
O'Neill indicated that this approach ensures that EDA goals are in sync with the goals of the
City. He also noted that the EDA has full discretion over TIF expenditures.
Staff outlined some preliminary budget recommendations for the EDA to consider.
• Designate $24,000, of the $890,000 which had been transferred from TIF to the
existing EDA general fiend, to pay 50% of WSB's Market Matching contract cost
• Continue to fund the "Marketing" line item at $17,000, from existing EDA general
fiends, to address any potential gaps in marketing information
* Maintain the "Professional Services - Legal Fees" line item at $10,000 through existing
EDA general funds, to allow for continued access to Kennedy & .Graven expertise
+ Retain $10,000 in "Miscellaneous Professional Services" and "Other Expenses ",
through the EDA general fund, to monitor expenses for future budget years
+ Reduce the "Dues and Memberships" line item, from $10,000 to $7,000, within the
City's general fund, due to better partnership leverage through the WSB contract
+ Add "Travel Expense" and "Conference and Schools" line items to facilitate
attendance by EDA representatives
+ Maximize the total allowable administrative expense (10 %) for TIFs Districts 1 -6 and
1 -22 to cover related in- house, legal, and consulting staff time expenses
Tapper suggested that the EDA budget for a housing study in order to have current
information when considering how to spend increment restricted to housing.
Finance Director Wayne Oberg provided some detail related to spendable fund balance
amounts and responded to questions about the budget process. He noted that, although
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workplans and budget priorities provide guidance, they are frequently subject to change.
He pointed to the Market Matching contract as an example of a current priority which
hadn't been specifically planned for in the workplan or budget. He also suggested that it
may have made for easier accounting if the EDA had funded the full Market Matching
contract expense rather than split the cost with the City.
Tracy Hinz asked about vulnerabilities in the EDA budget. Oberg stated that the EDA has
utilized a pooled cash concept to address temporary deficiencies in TIF districts 1 -34, 1 -3 8
and 1 -39. He indicated that it may be useful to instead establish a separate fund with a cash
balance for each district to allow for interfund activity. He also noted that the annual
transfer out of TIF 1 -34 does not match the income in that district because tax increment
dropped in response to a slowdown in development and the reduced tax levy.
Staff agreed to schedule a budget preparation workshop prior to the next EDA meeting.
6. Consideration of Director's Report
There were no comments related to the written report.
7. Added items
a) Market Matching Update - Jeff O'Neill reported that the City had received a request for
information through a Greater MSP site selector looking to locate a large, highly
sought after, medical manufacturing facility. John Uphoff and staff at WSB prepared a
thorough response to the request on short notice.
b) Property Sale -Bill Tapper noted that negotiations are underway to determine the price
to sell property located at 413 4th Street W. He explained that the EDA had purchased
and funded the cleanup of the property but the title now indicates that it is owned by the
City. O'Neill said that the EDA may be asked to support the recommendations of the
negotiations team and that proceeds from the sale would be directed to the EDA.
8. Adiourn
MATT FRIE MOVED TO ADJOURN THE MEETING AT TIME 7:06 P.M. TOM
PERRAULT SECONDED THE MOTION. MOTION CARRIED 5 -0. (Brian Stumpf did
not vote as he had left the meeting.)
Recorder: Kerry Burri 9
Approved: August 14, 2013
Attest:
r
Je eill, City Administrator