1983-07-20134
SPECIAL MEETING
OF THE
CITY COUNCIL
July 20, 1983
Pursuant to due call and notice thereof, a special meeting. of the City Council
and the Mound Housing and Redevelopment Authority, City of Mound, Hennepin
County, Minnesota, was held at 5341 Maywood Road in said City on July 20, 1983,
at 7:30 P.M.
Those present were: Acting Mayor Pinky Charon, Councilmembers Jessen, Paulsen,
and Peterson. Mayor Polston arrived at 8:35 P.M. Also present were: City
Manager Jon Elam, City Attorney Curt Pearson, City Planner-Mark Koegler, Finance
Director. Sharon Legg, City Clerk Fran Clark. The following members of the
HRA were present: Eldo Schmidt, Jim Regan, Joe Berge, Bob McClellan, Helen
Eugster and HRA Director for 2020 Commerce Blvd. Ed Richter.
Acting Mayor Charon opened the meeting and welcomed the HRA members.
The City Manager explained that the City has received a proposal for tax
increment financing and the meeting tonight is to go over the HRA's roles
and responsibilities in a tax increment financing district. The steps taken
so far are 1) the development of policies and 2) the designation of a priority
area.
City Planner Mark Koegler explained that tax increment financing is an
enabling tool given to cities to clear land and develop a specific area.
It is a funding technique that utilizes increases in assessed valuation
and property taxes attributed to redevelopment to pay for public redevelop-
ment costs. Tax increment financing may be used to provide public funds
for: 1) the redevelopment or rehabilitation of deteriorated areas of the
City; 2) assistance to facilitate the construction of low-moderate income
housing; 3) the promotion of economic development and the provision of
employment opportunities in the City. The difference in the assessed valuation
and tax revenues generated by the property within the district after new
construction has occurred complared with the assessed valuation and amount
of tax revenues generated by the property prior to the establishment of the
tax increment is called the tax increment. This difference in assessed
valuation and tax revenues is determined annually anal is used to repay
indebtedness or current development costs.
The City Planner then briefly went over the proposed Town Square project
explaining that it is in a very preliminary phase.
City Attorney Curt Pearson explained the two empowering Statutes.
1. Minnesota Statutes Chapter 462.411, Minnesota Housing and Redevelopment
Authority Act - allows up to 25 years to pay off bonds and charges
the HRA with administering the project.
2. Minnesota Statutes Chapter 472A.01, Municipal Development District
Act - allows up to 10 years to pay off bonds and charges the municipal
governing body with administering the project.
If the project falls under Chapter 462.411 the HRA would have to develop a
redevelopment plan and a TIF plan which would show that the plan will work.
The HRA's roles would be:
135
July 20, 19$3
1. acquiring property;
2. putting development agreement together;
3. preparing a redevelopment contract with the businesses involved.
There was discussion on the length of time the Town Square people want
to use tax increment.
There was discussion on setting up a separate advisory committee to work
on 2020 Commerce only.
The City Manager assured the HRA that the City Staff would work with them
on a tax increment project.
The HRA members asked various questions on tax increment financing and
the procedures that would be followed.
Mayor Polston stated that the Council and the Staff wants the HRA to
work with the City on developing this and that all should base the decision
on facts.
The HRA stated they would like to think about tax increment and decide
if some of the members would rather be on an advisory committee for 2020
Commerce and not become involved with tax increment, in which case some
of the HRA members would have to be replaced.
Peterson moved and Jessen seconded a motion to adjourn at 9:10 P.M.
Jon Elam, City Manager
Fran Clark, ity Clerk