EDA Agenda 09-13-2017 (Workshop Meeting)
AGENDA
WORKSHOP- ECONOMIC DEVELOPMENT AUTHORITY (EDA)
Wednesday, September 13, 2017 4:30 p.m.
Academy Room, Monticello Community Center
Commissioners: President Bill Demeules, Vice President Bill Tapper, Treasurer Steve
Johnson, Tracy Hinz, Jon Morphew, Council members Lloyd Hilgart and Jim Davidson
Staff: Angela Schumann, EDA Executive Director Jim Thares, Jacob Thunander
and Wayne Oberg
1. Call to Order
2. Roll Call
3. Consideration of TIF Financial Management, Tammy Omdal, Northland Securities
4. Adjourn
EDA Workshop Agenda: 9/13/17
1. Consideration of review of TIF Financial Management Compliance and Policy
Guidance (JT)
A. REFERENCE AND BACKGROUND:
Just over a year ago, in August 2016, the EDA accepted the 2016 TIF Management Plan
completed by Northland Securities. The Plan consisted of a management analysis as well
as recommendations regarding compliance and policy action steps for the
TIF districts. As stated in the document overview, the Plan intended to be a practical
Some of the action steps are administrative and address minor compliance requirements.
Others consist of policy considerations where the EDA determines the general use (as
allowed by statute) of funds and/or projects to allocate the resources to. Staff is seeking
EDA input and guidance on the policy considerations at this time due to the near
completion of the Small Area Study Plan and in anticipation of various implementation
strategies in support of the Plan.
A workshop setting will give the EDA a chance to review and discuss pros and cons of
various policy statements. Staff will bring a formal action item forward at a future
meeting for EDA consideration. Tammy Omdal, Northland Securities, will be at the
workshop meeting to lead discussion of the TIF Financial Management policy options. A
summary of the items being discussed is provided below:
Compliance Items
TIF District 1-19 Income Certifications obtained annually from property owner
TIF District 1-24 Income Certifications obtained annually from property owner
= In Compliance
Policy Items Regarding Funding Uses
Redevelopment Projects
TIF District 1-6 - Policy direction regarding fund balance of $707,603 - Redevelopment
TIF District 1-20 - Policy direction regarding fund balance of $89,628 Redevelopment
Redevelopment or Affordable Housing Projects
TIF District 1-22 Policy direction regarding fund balance of $46,167 for
redevelopment and future dollars for Affordable Housing
Affordable Housing Projects
TIF District 1-19 Policy direction regarding fund balance of $176,382 Affd. Housing
EDA Workshop Agenda 9/13/17
TIF District 1-24 - Policy direction regarding fund balance of $58,025
TIF District 1-29 Policy direction regarding fund balance of $100,824
TIF District 1-30 Policy direction regarding future fund balance
A1. Staff Impact: Limited impact; the Community Development Department
staff and Finance Department staff along with the EDA Attorney were involved in
consulting with Northland Securities during the systematic review of the
information on each of the TIF Districts and the issues that were revealed or
action items that have been outlined for each District.
A2. Budget Impact: There will be a modest charge for the time involved for
Northland Securities staff to prepare a summary document which presents the
policy options at the Workshop. The costs for preparing the Plan were
determined in the original contract. The total amount authorized for completion
of the 2016 TIF Management Plan was $7,000.
B. ALTERNATIVE ACTIONS:
1. No motion required.
C. STAFF RECOMMENDATION:
The 2016 TIF Management Plan prepared by Northland Securities is a valuable tool to
guide the EDA in the use of funds/resources for future redevelopment or affordable
housing projects. It also provides information and steps to ensure that the EDA stays
compliant with the various statutory requirements that annually affect TIF Districts and
increment usage. Staff recommends that the EDA review the information provided at the
Workshop and consider action items at a future meeting.
D. SUPPORTING DATA:
A. 2016 TIF Financial Management Power Point Presentation
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Overview of estimated available funds for redevelopment and housingOverview of options for use of available fundsEDA discussion on available funds, options, and direction to staff
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EDA would assume the risk that future revenue will not be sufficient to repay any obligations issued
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TIF districts will accumulate additional funds between 2016 and 2025 from future collection of tax increment revenue, sale of land, and investment earningsEDA may issue obligations to
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qualified affordable housing projects
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Redevelopment TIF districtTIF derived from property is subject to poolingFinal payment on TIF Note will be made in 2018TIF district will be decertified in 2018 and no further increment
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Redevelopment TIF districtTIF derived from property is subject to poolingFinal payment on remaining TIF Note will be made in 2023TIF district will be decertified in 2023 and no further
increment to be collectedCash balance in fund will continue to accrue investment earningsInterfund TIF loan outstanding of $275,000; anticipate repayment in part from future sale of
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Do nothing at this time and continue to maintain fund balances for future projects to be identified at a future date; Identify projects and establish timeline for use; orAdopt general
guidelines do not identify specific projects for use of funds EDA in prior years affirmed its intent to retain available tax increment funds and to not return to the County for redistribution
to local taxing jurisdictions.
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either by identifying specific projects to
EDA could decide not to make any decisions at No statutory requirements that the EDA make any decisions on use of the available fundsRecommend that the EDA provide guidance to staff
be funded from available TIF or to adopt guidelines for use of the funds
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Implementation of Downtown PlanRevitalization of residential property family or single familyProperty assembly for redevelopment purposes EDA will want to consider the Downtown Plan
in general and overall City goals as it considers priorities for the use of available tax increment funds.
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Use of funds for land acquisition only land acquisitionAssist multifamily housing onlyAllow for spending of available funds in only certain geographic area (must be within Central Monticello
Redevelopment Project No. 1)Priority rank of use of funds from different TIF districts (i.e., funds available in TIF 1
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EDA could set guidelines for the use of available fundsEDA will want to consider the Downtown Plan in general and overall City goals as it guidelinesBelow is some example language to
illustrate what the EDA guidelines may include:
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Wait and see approach Make decisions on specific projectsAdopt guidelines
EDA understanding of available funds and amountsEDA understanding of redevelopment depending on the TIF districtEDA preference on options:Next steps and direction to staff for follow
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Northland Securities, Inc.
Minneapolis, Minnesota 55402
45 South 7
www.northlandsecurities.com/public_finance
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