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2003-09-08~i1C • C°I' 1 AGENDA MOUND HOUSING AND REDEVELOPMENT AUTHORITY September 8, 2003 7:00 P.M. PAGE 1. OPEN MEETING 2. ACTION APPROVING AGENDA, WITH ANY AMENDMENTS 3. ACTION APPROVING MINUTES: AUG 26, 2003 REGULAR MTG 1-3 • 4. CONSIDERATION OF GAP FINANCING MEASURES, AS PROPOSED 4-6 BY REPRESENTATIVES OF MOUND HARBOR RENNAISSANCE 5. ACTION ON RESOLUTION ESTABLISHING THE TAX LEVY FOR 7 THE MOUND HOUSING AND REDEVELOPMENT AUTHORITY FOR THE YEAR 2004 6. ADJOURN • • MOUND HOUSING AND REDEVELOPMENT AUTHORITY AUGUST 26, 20Q3 The Mound Housing and Redevelopment Authority of and for the City of Mound, Minnesota, met in regular session on Tuesday, August 26, 2003, at 6:30 p.m. i n the council chambers of city hall. Members Present: Chairperson Pat Meisel; Commissioners Bob Brown, Mark Hanus, David Osmek and Peter Meyer. bs ~. Others Present: City Attorney John Dean, Executive Direot~br'I~Candis Hanson, City Clerk Bonnie Ritter, Community Development Director Sarah ~t~ith, Finance Director Gino Businaro, Peter Pflaum, Tom Stokes, Chuck Alcdi~; Rick Bloomquist, Kim Klugerz 1. OPEN MEETING ~'" The meeting was called to order by Chairperson Meisel at 6:34 p.m. ,A ,~,~;r ° i 2. APPROVE AGENDA . ~ ~~~ MOTION by Hanus, seconded by Osmek to approve the agenda. All voted in favor. Motion carried. ~~ 3. APPROVE MINUTES ~~~~ ~- MOTION by Hanus, seconded by Bros^~n to approG.e the minute of the July 22, 2003 regular meeting. All voted i~r~~favor. Mot~o~;n carried. ~~ 4. REPORT ON INDIAN KNOLL MANORU,.:`, Kim Klugerz of VV~Astport Properties presented the management report for Indian Knoll Manor as follows. s .,.,~ A. July~;E~ank statement `~~~ B"June income statement. C. MOTION by Osmek seconded by Hanus to approve the July 2003 bills. All voted in favor; Motion carfied. D.; 2003-2004 Oper~;ting Bu~'~get: Meisel questioned the cash reserve ~re~"~.uirement of 55,303. Businaro stated that he was informed that some of the`~ite~,ns in the operating budget are capital items and those will be paid off with the',napital grant from the Federal Government, and that the expenditures and revenues will balance. Meisel also questioned the insurance figures, asking if these dollars are included in the Westport contract. Employee benefits and FICA were questioned in the same manner. Businaro stated they should be part of Westport's contract and will adjust them accordingly. MOTION by Hanus, seconded by Brown to adopt the following resolution. Ail voted in favor. Motion carried. n LJ -1- HRA Minutes -August 26, 2003 :RESOLUTION .NQ. 03-07H: RESOLUTION APPROVING OPERATING BUDGET. FOR :FISCAL YEAR ENDING 9/30!04. E. Manager's Report - Klugerz informed the Board that the new resident manager is on site five days a week from 10:00 a.m. to 4:00 p.m, effective August 1St 5. RESOLUTION ESTABLISHING THE TAX LEVY FOR T ~ ~~!' ~ RA FOR 2004 MOTION by Brown, seconded by Osmek to table this ite. $ $ r~~'l,~fter discussion on item 6. All voted in favor. Motion carried. ~ ~& r. ~, ~~> ~ _ ._ 6. MOUND HARBOR RENAISSANCE REPRESN~T'ATIVES ON ~~AP. FINANCING STRATEGIES ~~F,g~ ~ ''' Meisel stepped down as Chair for this item c~'tase she an her husban~wn property a .'-~ in the proposed redevelopment district. Acting,~C~hair Hand" presided. Rick Bloomquist presented a desig concept and explained the feature market study done with reference t that an agreement will be in place ~ of the preliminary developrr~ent~agr ,. ~. ~ , John Dean explained. a number of ben - r 26~' the developer economically feasible present ti '~t~7~~ mi availabl ~ o~r~C~~e ~~ res a' ~°iscussions reco ,ends a study s evaaua ~zy MOTION b ` - ~- us, sE September 8, a..~3~ at tch of theme`'®,.=~QSed hotel/banquet/restaurant building. Mated that there will be a new ~~p~sed fac lity'; He stated that he is optimistic is group~~MH ~-~~ording to the stipulations ~~af the e sion to t~. `preliminary development agreement put cs in plat ' ;o meas 'the progress of the project. By August to com : - a number ~f~~ptions to see if the development is aus , ~ :. ~ ~ E n,firiacing. This gap is estimated at the r ~ 4®~llars. He rested a list of potential options that might be .e ~ '~~~ ap in financing of the development. This list was the ~~~his ~; ,; ,MHR and Jim Prosser of Ehlers & Associates. Dean sss~Fon i~aP.rosser present so that these options can be by Osmek to set a special meeting/work session for m. All voted in favor. Motion carried. MOTION by Browri;~s,conded by Osrnek to acknowledge that the August 26~' benchmark noted in the amendment to the. preliminary agreement has been satisfied. All voted in favor. Motion carried. Chair Meisel returned to preside over the balance of the meeting. Ir~ t• J .] r~ u 2 -2- HRA Minutes -August 2&, 2003 • 5. RESOLUTION ESTABLISHING THE TAX LEVY FOR THE HRA FOR 20014 MOTION by Brown, seconded by Osmek to table action on this item until after the September 8th discussion on gap financing. All voted in favor. Motion carried. 7. MISCELLANEOUS/INFORMATIONAL A. Update: MHR -Aug 7, 2003 B. Met Council Housing score r ~ : ~` Vie' 8. ADJOURN ~ ~K MOTION by Brown, seconded by Osmek to adjourn at '~~~ p.~j~:: ,II voted in favor. Motion carried. ~- Chair P ~'`-' gi~,~. . ~~ Attest: Bonnie Ritter, City Clerk ~~, ~4~., -~ ~~ ~~ ~ ~. ti ; ~~. t }~~'' . .,~~ v. r, L J -3- Kennedy S Graven CHARTERED 470 Pillsbury Center • 20o south sixth street Minneapolis MN 55402 (612) 337-9300 telephone (612) 337-9310 fax http:!lwww. kennedy-graven.com 8/22/03 MEMORANDUM TO: HRA Commissioners and Council Members FROM: John Dean SUBJECT: Status Report on Mound Harbor Renaissance Development • Status of Preliminary Agreement. On June 24, 2003 the HRA and City Council approved the extension of the term of the preliminary agreement with Mound Harbor Renaissance Development, LLC to November 5, 2003. The extension is subject to certain interim steps which are outlined in the Second Amendment to Agreement. Among the required interim steps is the following: a. Not later than August 26, 2003 the Developer and. the HRA will have compiled a list of potential options for consideration to determine if there is suj~cient funding from all available sources to make the development economically feasible. Inclusion of an option on the list does not obligate any party to accept such option. It is also understood that the list is,only conceptual until the actual amount of the gap can be determined. Such a determination will depend on a number of factors, including without limitation, the Redeveloper's agreement with the hotel developer. Attached to this memorandum is a list of potential options that might be available for use to close any gap in the financing of the development. The list was initially prepared by MHR, and has been reviewed and refined following discussions with your staff including Jim Prosser and Sid • Inman of Ehlers. "Gap" as used here means the portion of the total project costs which cannot be covered by the combination of developer funds and tax increment. JBD-236494v1 MU195-15 -4- HRA COMMISSIONERS AND CITY COUNCIL MEMBERS Page 2 We believe that the list is quite comprehensive, and covers all the possible options that the developer and staff, in their collective experience, could suggest. A number of additional items were given consideration, but were ultimately excluded from the list. It would be our recommendation that the HRA and the Council acknowledge that the requirement stated above has been satisfied. As you will note from the quoted portion of the agreement, acceptance of the list does not obligate you to ultimately agree to select and use any of them. We would also recommend that the HRA and Council set a study session at which you can be provided with more detailed information regarding the various listed options. We could also describe t he p ossible s trategies t hat w ere e xcluded f rom t he 1 ist. The study s ession w ould a lso provide the HRA and Council with an opportunity to express their views on the suitability of any of the proposed options. At such a meeting we would also present the Council and the HRA with detailed information concerning the anticipated extent of the gap. Report by Hotel Developer. Rick Bloomquist is expected to be in attendance at the August 26 HRA meeting to give a • report on the status of discussions on the hotel portion of the development. n LJ JBD-236494v1 MU195-15 -5- • Strategies and Options to Meet MHR Funding Gap Ci Fee Reductions/Elimination • City Reduces or Waives Sewer Trunk Area Char e (STAG • Ci Reduces or Waives Water Trunk Area Char e TAC • Park Dedication Fee -off-set b some land contribution and streetsca e • TIF Admin Fee from 5% to 2.5% Ci Contributions -Financial and In-Kind • Cit Land Contribution • City Assists in Financing by Issuing 2,000,000 G.O. Debt on a parity basis [every $1,000,000 in Tax Exem t G.O. saves $ 250,000 (6.75% to 4.25% • Additional Dred 'n under Cit Permit • Other Cit Fundin Sources -- Utilit funds, General fund, etc. City Partici ation in Public Im rovement Costs • Ci rovides Lan don Lake arkin deck • Consider Reductions in the Extent of Streetsca a Desi • Assessments Levied against Commercial Pro erty for Im rovements • Utili RelocationB 'n Costs Ci &Develo er -Items to Ensure Shared Success • Grants (State, Metro olitan Council, County) • Environmental Remediation • Ci limits develo er's risk -Develo er Lowers Contin enc from 15% to 10% • Adjust Timing and Se uence of Phases (Lost Lake & South 110 need to o first) • Substitution of roduct es e. .Commercial to Residential JBD-236494v1 MU195-15 • -6- CITY OF MOUND HOUSING AND REDEVELOPMENT AUTHORITY RESOLUTION NO. 03-xxH A RESOLTUION ESTABLISHING THE TAX LEVY FOR THE MOUND HOUSING AND REDEVELOPMENT AUTHORITY FOR THE YEAR 2004 BE IT RESOLVED by the Housing and Redevelopment Authority of the City of Mound, as follows: Section 1: That there be and hereby is levied $ for the year 2004 on all taxable property, real and personal, situated within the corporate limits of the City of Mound and not exempted by the Constitution of the State of Minnesota, for the purposes of establishing an HRA Fund and conducting the operation of an HRA pursuant to the provisions of MS 469.001 through 469.068. Section 2: That the consent resolution by the City Council of the City of Mound to this special tax for the operation of the Housing and Redevelopment Authority is attached to this resolution and made a part hereof. Section 3: That said tax levy shall be certified to the County Auditor of Hennepin County on or before September 15, 2004. • Adopted by the Housing and Redevelopment Authority this 8~' day of September, 2003. Chair Pat Meisel Attest: Executive Director Kandis Hanson C7 -7- 7. This Page Is .Left Intentionally Blank • •. _8_ amity of Mound iRA Levy =or Year 2003 iRA Tax -Residential HRA Levy/Rate 83.000 1.104 Property Value 100,000 11.04 150,000 16.56 200,000 22.08 250,000 27.60 .-IRA Tax -Commercial HRA Levy/Rate 83.000 1.104 Property Value 100,000 16.56 200,000 35.88 300,000 57.96 400,000 80.04 500,000 102.12 I~tGU'1rr~n~ ~ ~ -`~ Gu~,~C'l~..y^r1.el,Q ~'1~}-, 09/09/2003 Gino