HomeMy WebLinkAbout2022-09-26 EDA Meeting Minutes-Special Meeting
SPECIAL MEETING MINUTES
MAPLEWOOD ECONOMIC DEVELOPMENT AUTHORITY
6:30 P.M. Monday, September 26, 2022
City Hall, Council Chambers
A. CALL TO ORDER
A special meeting of the Maplewood Economic Development Authority (EDA) was held in
the City Hall Council Chambers and was called to order at 6:30 p.m. by President
Knutson.
B. ROLL CALL
William Knutson, President Present
Marylee Abrams, Commissioner Present
Rebecca Cave, Commissioner Present
Kathleen Juenemann, Commissioner Present
Nikki Villavicencio, Commissioner Present
C. APPROVAL OF AGENDA
Agenda item G2 was removed.
Commissioner Abrams moved to approve the agenda as amended.
Seconded by Commissioner Juenemann Ayes – All
The motion passed.
D. APPROVAL OF MINUTES
1. September 12, 2022 Economic Development Authority Meeting Minutes
Commissioner Cave moved to approve the September 12, 2022 Economic Development
Authority Meeting Minutes as submitted.
Seconded by Commissioner Abrams Ayes – All
The motion passed.
E. PUBLIC HEARING
None
F. UNFINISHED BUSINESS
None.
G. NEW BUSINESS
1. Tax Increment Financing District No. 1-16
a. Resolution Adopting a Tax Increment Financing Plan
b. Contract for Private Development
c. Resolution Authorizing Interfund Loan
September, 26, 2022
Maplewood Economic Development Authority Special Meeting Minutes
1
Assistant Executive Director Thomson gave the staff report. Patrick Brama, with Enclave
Companies, addressed the EDA and provided clarification.
Commissioner Abrams moved to approve the resolution adopting a Tax Increment
Financing Plan for Tax Increment Financing District No. 1-16.
Resolution 22-09-0015
A RESOLUTION ADOPTING A TAX INCREMENT FINANCING PLAN FOR TAX
INCREMENT FINANCING DISTRICT NO. 1-16
BE IT RESOLVED by the Maplewood Economic Development Authority as
follows:
Section 1. Recitals.
1.01. The Maplewood Economic Development Authority (“MEDA”) has been
established by the city of Maplewood (the “City”) to promote development
and redevelopment within Maplewood.
1.02. Under the terms of the modified enabling resolution adopted by the City on
July 22, 2019, MEDA has all the powers and authority of an economic
development authority under Minnesota Statutes, sections 469.090 through
469.1081 (the “EDA Act”), of a housing and redevelopment authority under
Minnesota Statutes, sections 469.001 through 469.047 (the “HRA Act”) and
of a city under Minnesota Statutes, sections 469.124 through 469.134 (the
“City Development Districts Act”).
1.03. MEDA’s goals include recognizing the practical impediments to development
and redevelopment in areas of the community which are fully developed and
offering public assistance for projects which advance its goals.
1.04. In order to promote development and redevelopment of the community, the
City previously established Development District No. 1 (the “Development
District”) and adopted a Development District Program (the “Development
Program”) for same.
1.05. In response to a redevelopment proposal regarding the property at 3090
Southlawn Drive, MEDA authorized the preparation of a tax increment
financing plan (the “TIF Plan”) for Tax Increment Financing District No. 1-16
(the “TIF District”), which is contained in a document entitled “Modification to
the Development Program for Development District No. 1 and Tax Increment
Financing Plan for Tax Increment Financing District No. 1-16”, dated
September 26, 2022 and on file with MEDA.
Section 2. Authority Approval.
2.01. Copies of the modified Development Program and the TIF Plan were
transmitted to the board of Independent School District No. 622 and the
board of commissioners of Ramsey County for review and comment and said
public bodies were notified of the public hearing to be held on the modified
September, 26, 2022
Maplewood Economic Development Authority Special Meeting Minutes
2
Development Program and TIF Plan by the City on September 26, 2022.
2.02. MEDA finds that its objectives of encouraging development and
redevelopment within the designated area of Maplewood will be advanced by
adoption of the modified Development Program and the TIF Plan.
2.03. MEDA also finds that the modified Development Program and the TIF Plan
are consistent with the City’s comprehensive plan.
2.04. The TIF Plan is hereby adopted.
Section 3. Further Proceedings.
3.01. MEDA requests that the City hold a public hearing on the modified
Development Program and the TIF Plan pursuant to Minnesota Statutes,
section 469.175 and recommends that the modified Development Program
and TIF Plan be approved by the City.
3.02. Upon approval of the modified Development Program and the TIF Plan by the
City, MEDA’s executive director is authorized and directed to request that the
original tax capacity of the property within TIF District No. 1-16 be certified to
MEDA by Ramsey County.
Seconded by Commissioner Cave Ayes – All
The motion passed.
Commissioner Abrams moved to approve the Contract for Private Development with
Maplewood Enclave, LLC.
Seconded by Commissioner Juenemann Ayes – All
The motion passed.
Commissioner Villavicencio moved to approve the resolution authorizing an Interfund
Loan for Advance of Certain Costs in Connection with Tax Increment Financing District
No. 1-16.
Resolution 22-09-0016
RESOLUTION AUTHORIZING INTERFUND LOAN FOR ADVANCE OF
CERTAIN COSTS IN CONNECTION WITH TAX INCREMENT
FINANCING DISTRICT NO. 1-16
BE IT RESOLVED by the Board of Commissioners of the Maplewood Economic
Development Authority (“MEDA”) as follows:
Section 1. Background.
1.01. MEDA has established Tax Increment Financing District No. 1-16 (the “TIF
District”), pursuant to Minnesota Statutes, Sections 469.174 through
469.1794, as amended (the “TIF Act”).
September, 26, 2022
Maplewood Economic Development Authority Special Meeting Minutes
3
1.02. MEDA has and will incur certain costs (the “Preliminary Costs”) related to the
TIF District prior to such time as tax increment will be available to pay for
such costs.
1.03. Pursuant to Section 469.178, subdivision 7 of the TIF Act, MEDA is
authorized to advance or loan money from its general fund or any other fund
from which such advances may be legally authorized in order to finance the
Preliminary Costs.
1.04. MEDA will loan funds from its general fund (the “General Fund”), or any other
fund designated by MEDA, to finance the Preliminary Costs in accordance
with the terms of this resolution (the “Interfund Loan”).
Section 2. Interfund Loan Authorized.
2.01. MEDA hereby authorizes the advance of up to $50,000 from the General
Fund or other funds or so much thereof as may be required to pay the
Preliminary Costs. MEDA shall reimburse itself for such advances together
with interest at the rate stated below. Interest accrues on the principal
amount from the date of each advance. The maximum rate of interest
permitted to be charged is limited to the greater of the rates specified under
Minnesota Statutes, Section 270C.40 and Section 549.09 as of the date the
loan or advance is authorized, unless the written agreement states that the
maximum interest rate will fluctuate as the interest rates specified under
Minnesota Statutes, Section 270C.40 or Section 549.09 are from time to time
adjusted. The interest rate shall be 4.0 percent and will not fluctuate.
2.02. Principal and interest (the “Payments”) on the Interfund Loan shall be paid
semiannually on each February 1 and August 1 (each a “Payment Date”),
commencing on the first Payment Date on which MEDA has Available Tax
Increment (defined below), or on any other dates determined by MEDA’s
Executive Director, through the date of last receipt of tax increment from the
TIF District.
2.03. Payments on the Interfund Loan are payable solely from Available Tax
Increment, which shall mean, on each Payment Date, tax increment available
after other obligations of the TIF District have been paid, or as determined by
MEDA’s Executive Director, generated in the preceding six months with
respect to the property within the TIF District and remitted to MEDA by
Ramsey County, Minnesota, all in accordance with the TIF Act. Payments
shall be applied first to accrued interest, and then to unpaid principal.
Payments on the Interfund Loan may be subordinated to any outstanding or
future bonds or notes issued by MEDA and secured in whole or in part with
tax increment from the TIF District.
2.04. The principal sum and all accrued interest payable under the Interfund Loan
are prepayable in whole or in part at any time by MEDA without premium or
penalty. No partial prepayment shall affect the amount or timing of any other
regular payment otherwise required to be made under the Interfund Loan.
September, 26, 2022
Maplewood Economic Development Authority Special Meeting Minutes
4
2.05. The Interfund Loan is evidence of an internal borrowing by MEDA in
accordance with Section 469.178, subdivision 7 of the TIF Act, and is a
limited obligation payable solely from Available Tax Increment pledged to the
payment hereof under this resolution. This Interfund Loan and the interest
hereon shall not be deemed to constitute a general obligation of the State of
Minnesota or any political subdivision thereof, including, without limitation,
MEDA or the city of Maplewood. Neither the State of Minnesota nor any
political subdivision thereof shall be obligated to pay the principal of or
interest on the Interfund Loan or other costs incident hereto except out of
Available Tax Increment, and neither the full faith and credit nor the taxing
power of the State of Minnesota or any political subdivision thereof is pledged
to the payment of the principal of or interest on the Interfund Loan or other
costs incident hereto. MEDA shall have no obligation to pay any principal
amount of the Interfund Loan or accrued interest thereon, which may remain
unpaid after the final Payment Date.
2.06. MEDA may at any time determine to forgive the outstanding principal amount
and accrued interest on the Interfund Loan to the extent permissible under
law.
2.07. MEDA may from time to time amend the terms of this resolution to the extent
permitted by law, including without limitation amendment to the payment
schedule and the interest rate; provided, however, that the interest rate may
not be increased above the maximum specified in Section 469.178,
subdivision 7 of the TIF Act.
2.08. MEDA officials and consultants are hereby authorized and directed to
execute any documents or take any actions necessary or convenient to carry
out the intent of this resolution.
Section 3. Effective Date. This resolution is effective upon approval
Seconded by Commissioner Abrams Ayes – All
The motion passed.
2. Call for a Special Meeting of the EDA on October 10, 2022
This item was removed from the agenda.
H. ADJOURNMENT
President Knutson adjourned the meeting at 6:48 p.m.
Andrea Sindt, City Clerk
September, 26, 2022
Maplewood Economic Development Authority Special Meeting Minutes
5