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HomeMy WebLinkAbout2023-11-13 EDA Meeting Packet-Special MeetingAGENDA MAPLEWOOD ECONOMIC DEVELOPMENT AUTHORITY SPECIAL MEETING 6:30 P.M. Monday, November 13, 2023 City Hall, Council Chambers A. CALL TO ORDER B. ROLL CALL C. APPROVAL OF AGENDA D. APPROVAL OF MINUTES 1. September 11, 2023 Economic Development Authority Meeting Minutes E. PUBLIC HEARING None F. UNFINISHED BUSINESS None G. NEW BUSINESS 1. First Amendment to a Contract For Private Redevelopment for Reuter Walton/Frost Avenue Development Group Project at 1136 and 1160 Frost Avenue East 2. Call for a Special Meeting of the EDA on November 27, 2023 Regarding the Reuter Walton Project, 1136/1160 Frost Avenue East 3. Resolution Providing Approval of the 2024 Preliminary EDA Budget 4. 2024 EDA Meeting Calendar H. ADJOURNMENT RULES OF CIVILITY FOR THE CITY COUNCIL, BOARDS, COMMISSIONS AND OUR COMMUNITY Following are rules of civility the City of Maplewood expects of everyone appearing at the Meetings - elected officials, staff and citizens. It is hoped that by following these simple rules, everyone's opinions can be heard and understood in a reasonable manner. We appreciate the fact that when appearing at Council meetings, it is understood that everyone will follow these principles: Speak only for yourself, not for other council members or citizens - unless specifically tasked by your colleagues to speak for the group or for citizens in the form of a petition. Show respect during comments and/or discussions, listen actively and do not interrupt or talk amongst each other. Be respectful of the process, keeping order and decorum. Do not be critical of council members, staff or others in public. Be respectful of each other's time keeping remarks brief, to the point and non -repetitive. THIS PAGE IS INTENTIONALLY LEFT BLANK D1 A. MEETING MINUTES MAPLEWOOD ECONOMIC DEVELOPMENT AUTHORITY 6:45 P.M. Monday, September 11, 2023 City Hall, Council Chambers CALL TO ORDER A meeting of the Maplewood Economic Development Authority (EDA) was held in the City Hall Council Chambers and was called to order at 6:49 p.m. by President Abrams. B. ROLL CALL C 7 E F. Marylee Abrams, President Present Rebecca Cave, Commissioner Present Kathleen Juenemann, Commissioner Present Chonburi Lee, Commissioner Present Nikki Villavicencio, Commissioner Present APPROVAL OF AGENDA Commissioner Cave moved to approve the agenda as submitted. Seconded by Commissioner Lee Ayes — All The motion passed. APPROVAL OF MINUTES 1. June 26, 2023 Economic Development Authority Special Meeting Minutes Commissioner Cave moved to approve the June 26, 2023 Economic Development Authority Special Meeting Minutes as submitted. Seconded by Commissioner Lee The motion passed. PUBLIC HEARING None Ayes — President Abrams Commissioner Cave Commissioner Lee Commissioner Villavicencio Abstain — Commissioner Juenemann UNFINISHED BUSINESS 1. Resolution Approving Issuance of TIF Note, Real Estate Equities, 2501 Londin Lane Assistant Executive Director Parr gave the staff report. September 11, 2023 Maplewood Economic Development Authority Minutes 1 EDA Special Meeting Packet Page Number 1 of 20 D1 Commissioner Cave moved to approve the resolution approving the issuance of TIF note for the 2501 Londin Lane East housing project. Resolution 23-09-0020 RESOLUTION APPROVING THE ISSUANCE OF, AND PROVIDING THE FORM, TERMS, COVENANTS AND DIRECTIONS FOR THE ISSUANCE OF ITS TAXABLE TAX INCREMENT REVENUE NOTE, SERIES 2023B IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $2,237,754 BE IT RESOLVED BY the Maplewood Economic Development Authority (the "EDA"), as follows: Section 1. Authorization; Award of Sale. 1.01. Authorization. The EDA has heretofore approved the establishment of Tax Increment Financing District No. 1-15 (the "TIF District") within Development District No. 1 (the "Development District"), and has adopted a tax increment financing plan for the purpose of financing certain improvements within the Development District. Pursuant to Minnesota Statutes, Section 469.178, the EDA is authorized to issue and sell its bonds for the purpose of financing a portion of the public development costs of the Minimum Improvements and Development Property in the Development District. The bonds are payable from all or any portion of revenues derived from the Minimum Improvements and the Development Property in the TIF District and pledged to the payment of the bonds. The EDA hereby finds and determines that it is in the best interests of the EDA that it issue and sell its taxable Tax Increment Revenue Note, Series 2023B (the "Note"), in the aggregate principal amount of $2,237,754, for the purpose of financing certain public costs of the Development District. 1.02. Agreement Approved; Issuance, Sale and Terms of the Note. The EDA has previously approved the Contract for Private Development (the "Agreement") between the EDA and REE Maplewood Apartments LLC, a Minnesota limited liability company (the "Owner"), and authorized the Executive Director and President to execute the Agreement. Pursuant to the Agreement, the Note will be issued to the Owner. The Note will be dated as of the date of delivery and will bear interest at the rate of 4.60% per annum. In exchange for the EDA's issuance of the Note to the Owner, the Owner will pay certain costs related to the Minimum Improvements (the Qualifying Costs, as defined in the Agreement) pursuant to Section 3.2 of the Agreement. The Note will be delivered in the principal amount of $2,237,754 for reimbursement of the Owner's costs in accordance with the terms of Sections 3.2 and 3.3 of the Agreement. Section 2. Form of Note. The Note will be in substantially the following form, with the blanks to be properly filled in and the principal amount and payment schedule adjusted as of the date of issue: No. R-1 UNITED STATE OF AMERICA STATE OF MINNESOTA RAMSEY COUNTY MAPLEWOOD ECONOMIC DEVELOPMENT AUTHORITY $2,237,754 September 11, 2023 Maplewood Economic Development Authority Minutes 2 EDA Special Meeting Packet Page Number 2 of 20 D1 TAXABLE TAX INCREMENT REVENUE NOTE SERIES 2023B Date Rate of Ori,inal Issue 4.60% The Maplewood Economic Development Authority (the "EDA"), for value received, certifies that it is indebted and hereby promises to pay to REE Maplewood Apartments LLC, or registered assigns (the "Owner"), the principal sum of $2,237,754 with interest thereon at 4.60%, as and to the extent set forth herein. 1. Payments. Principal and interest payments ("Payments") will be paid on August 1, 2024, and each February 1 and August I thereafter until the earlier of payment in full or February 1, 2034 ("Payment Dates"), in the amounts and from the sources set forth in Section 3 herein. Payments are payable by mail to the address of the Owner or any other address as the Owner may designate upon 30 days written notice to the EDA. Payments on this Note are payable in any coin or currency of the United States of America which, on the Payment Date, is legal tender for the payment of public and private debts. 2. Interest. Interest shall be simple, non -compounding interest at a rate of 4.60% per annum. Interest shall be computed on the basis of a 360-day year consisting of 12 30-day months. 3. Available Tax Increment. Payments on this Note are payable on each Payment Date in the amount of and solely payable from "Available Tax Increment," which will mean, on each Payment Date, 90 percent of the Tax Increment attributable to the Development Property and Minimum Improvements (as defined in the Agreement) and paid to the EDA by Ramsey County in the six months preceding the Payment Date, all as the terms are defined in the Contract for Private Development between the EDA and Owner dated as of March 25, 2022 (the "Agreement"). Available Tax Increment will not include any Tax Increment if, as of any Payment Date, there is an uncured Event of Default by the Owner under the Agreement. The EDA will have no obligation to pay principal or interest on this Note on each Payment Date from any source other than Available Tax Increment, and the failure of the EDA to pay the entire amount of principal and interest on this Note on any Payment Date will not constitute a default hereunder as long as the EDA pays principal and interest to the extent of Available Tax Increment. The EDA will have no obligation to pay any unpaid balance of principal or interest that may remain after the Final Payment Date of February 1, 2034. September 11, 2023 Maplewood Economic Development Authority Minutes 3 EDA Special Meeting Packet Page Number 3 of 20 D1 4 Optional Prepayment. The principal sum and accrued interest payable under this Note is pre -payable in whole or in part at any time by the EDA without premium or penalty. No partial prepayment will affect the amount or timing of any other regular payment otherwise required to be made under this Note. 5. Suspension of Payment for Default. At the EDA's option, the EDA's obligation to make any payments under this Note will be suspended upon the occurrence of an Event of Default on the part of the Developer as defined in Section 8.1 of the Agreement, but only if the Event of Default has not been cured in accordance with Section 8.2 of the Agreement. 6. Nature of Obligation. This Note is a single note in the total principal amount of $2,237,754 issued to aid in financing certain public costs of a Development District undertaken by the EDA pursuant to Minnesota Statutes, Sections 469.001 through 469.047, as amended, and is issued pursuant to an authorizing resolution (the "Resolution") duly adopted by the EDA on September 11, 2023, pursuant to and in full conformity with the Constitution and laws of the State of Minnesota, including Minnesota Statutes, Sections 469.174 to 469.179, as amended. This Note is a limited obligation of the EDA which is payable solely from Available Tax Increment pledged to the payment hereof under the Resolution. This Note will not be deemed to constitute a general obligation of the State of Minnesota or any political subdivision thereof, including, without limitation, the EDA or the city of Maplewood. Neither the State of Minnesota, nor any political subdivision thereof will be obligated to pay the principal of or interest on this Note 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 and interest on this Note or other costs incident hereto. 7. Estimated Tax Increment Pam. Any estimates of Tax Increment prepared by the EDA or its financial advisors in connection with the TIF District or the Agreement are for the benefit of the EDA, and are not intended as representations on which the Owner may rely. THE EDA MAKES NO REPRESENTATION OR WARRANTY THAT THE AVAILABLE TAX INCREMENT WILL BE SUFFICIENT TO PAY THE PRINCIPAL OF OR INTEREST ON THIS NOTE. 8. Registration and Transfer. As provided in the Resolution, and subject to certain limitations set forth herein, this Note is issuable only as a fully registered note without coupons. This Note is transferable upon the books of the EDA kept for that purpose at the principal office of the Executive Director of the EDA as Registrar, by the Owner hereof in person or by the Owner's attorney duly authorized in writing, upon surrender of this Note together with a written instrument of transfer satisfactory to the EDA, duly executed by the Owner. Upon the transfer or exchange and the payment by the Owner of any tax, fee, or governmental charge required to be paid by the EDA with respect to the transfer or exchange, there will be issued in the name of the transferee a September 11, 2023 Maplewood Economic Development Authority Minutes 4 EDA Special Meeting Packet Page Number 4 of 20 D1 new Note of the same aggregate principal amount and interest rate and maturing on the same dates. This Note may be transferred, assigned or pledged without the approval of the EDA; provided that this Note will not be transferred to any person other than an affiliate, or other related entity, of the Owner unless the EDA has been provided with an investment letter in a form substantially similar to the investment letter submitted by the Owner or a certificate of the transferor, in a form satisfactory to the EDA, that the transfer is exempt from registration and prospectus delivery requirements of federal and applicable state securities laws. Notwithstanding anything to the contrary in this Note, in no event will a lender providing funds to the Developer and taking an assignment of the Note as security for such funds be required to sign an investment letter at either the time of execution of an assignment or transfer of the Note as a result of the assignment. IT IS HEREBY CERTIFIED AND RECITED that all acts, conditions, and things required by the Constitution and laws of the State of Minnesota to be done, to exist, to happen, and to be performed in order to make this Note a valid and binding limited obligation of the EDA according to its terms, have been done, do exist, have happened, and have been performed in due form, time and manner as so required. IN WITNESS WHEREOF, the board of commissioners of the Maplewood Economic Development Authority, has caused this Note to be executed with the manual signatures of its President and Executive Director, all as of the Date of Original Issue specified above. MAPLEWOOD ECONOMIC DEVELOPMENT AUTHORITY Marylee Abrams, President Melinda Coleman, Executive Director REGISTRATION PROVISIONS The ownership of the unpaid balance of the within Note is registered in the bond register of the Executive Director of the EDA, in the name of the person last listed below. Date of Registration Registered Owner REE Maplewood Apartments LLC 579 Selby Avenue St. Paul, MN 55102 Attn: Patrick Ostrom Federal Tax ID 987-3375065 Signature of EDA Executive Director September 11, 2023 Maplewood Economic Development Authority Minutes 5 EDA Special Meeting Packet Page Number 5 of 20 D1 [End of Form of Note] Section 3. Terms, Execution and Delivery. 3.01. Denomination, Payment. The Note will be issued as a single typewritten note numbered R-1. The Note will be issuable only in fully registered form. Principal and interest of the Note will be payable by check or draft issued by the Registrar described herein. 3.02. Dates. Principal and interest of the Note will be payable by mail to the owner of record thereof as of the close of business on the fifteenth day of the month preceding the Payment Date, whether or not the day is a business day. 3.03. Registration. The EDA hereby appoints the Executive Director to perform the functions of registrar, transfer agent and paying agent (the "Registrar"). The effect of registration and the rights and duties of the EDA and the Registrar with respect thereto will be as follows: (a) Resister. The Registrar will keep at her office a bond register in which the Registrar will provide for the registration of ownership of the Note and the registration of transfers and exchanges of the Note. (b) Transfer of Note. Upon surrender for transfer of the Note duly endorsed by the registered owner thereof or accompanied by a written instrument of transfer, in form reasonably satisfactory to the Registrar, duly executed by the registered owner thereof or by an attorney duly authorized by the registered owner in writing, the Registrar will authenticate and deliver, in the name of the designated transferee or transferees, a new Note of a like aggregate principal amount, interest rate and maturity, as requested by the transferor. Notwithstanding the foregoing, the Note will not be transferred to any person other than an affiliate, or other related entity, of the Owner unless the EDA has been provided with an investment letter in a form substantially similar to the investment letter submitted by the Owner or a certificate of the transferor, in a form satisfactory to the EDA, that the transfer is exempt from registration and prospectus delivery requirements of federal and applicable state securities laws. The Registrar may close the books for registration of any transfer after the fifteenth day of the month preceding each Payment Date and until the Payment Date. (c) Cancellation. The Note surrendered upon any transfer will be promptly cancelled by the Registrar and thereafter disposed of as directed by the EDA. (d) Improper or Unauthorized Transfer. When the Note is presented to the Registrar for transfer, the Registrar may refuse to transfer the same until she is satisfied that the endorsement on the Note or separate instrument of transfer is legally authorized. The September 11, 2023 Maplewood Economic Development Authority Minutes 6 EDA Special Meeting Packet Page Number 6 of 20 D1 Registrar will incur no liability for her refusal, in good faith, to make transfers which she, in her judgment, deems improper or unauthorized. (e) Persons Deemed Owners. The EDA and the Registrar may treat the person in whose name the Note is at any time registered in the bond register as the absolute owner of the Note, whether the Note is overdue or not, for the purpose of receiving payment of, or on account of, the principal of and interest on the Note and for all other purposes, and all the payments so made to any registered owner or upon the owner's order will be valid and effectual to satisfy and discharge the liability of the EDA upon the Note to the extent of the sum or sums so paid. (f) Taxes, Fees and Charges. For every transfer or exchange of the Note, the Registrar may impose a charge upon the owner thereof sufficient to reimburse the Registrar for any tax, fee, or other governmental charge required to be paid with respect to the transfer or exchange. (g) Mutilated, Lost, Stolen or Destroyed Note. In case the Note becomes mutilated or is lost, stolen, or destroyed, the Registrar will deliver a new Note of like amount, interest rate, maturity dates and tenor in exchange and substitution for and upon cancellation of the mutilated Note or in lieu of and in substitution for the Note lost, stolen, or destroyed, upon the payment of the reasonable expenses and charges of the Registrar in connection therewith; and, in the case the Note lost, stolen, or destroyed, upon filing with the Registrar of evidence satisfactory to it that the Note was lost, stolen, or destroyed, and of the ownership thereof, and upon furnishing to the Registrar of an appropriate bond or indemnity in form, substance, and amount satisfactory to it, in which both the EDA and the Registrar will be named as obligees. The Note so surrendered to the Registrar will be cancelled by her and evidence of the cancellation will be given to the EDA. If the mutilated, lost, stolen, or destroyed Note has already matured or been called for redemption in accordance with its terms, it will not be necessary to issue a new Note prior to payment. 3.04. Preparation and Delivery. The Note will be prepared under the direction of the Executive Director and will be executed on behalf of the EDA by the signatures of its President and Executive Director. In case any officer whose signature appears on the Note ceases to be the officer before the delivery of the Note, the signature will nevertheless be valid and sufficient for all purposes, the same as if the officer had remained in office until delivery. When the Note has been so executed, it will be delivered by the EDA to the Owner following the delivery of the s delineated in Section 3.3 of the Agreement. Section 4. Security Provisions. 4.01 Pledge. The EDA hereby pledges to the payment of the principal and interest of the Note all Available Tax Increment as defined in the Note. Available Tax Increment will be applied to payment of accrued interest first, then the principal of the Note in accordance with the terms of the form of Note set forth in Section 2 of this resolution. September 11, 2023 Maplewood Economic Development Authority Minutes 7 EDA Special Meeting Packet Page Number 7 of 20 D1 4.02 Bond Fund. Until the date the Note is no longer outstanding and no principal thereof or interest thereon (to the extent required to be paid pursuant to this resolution) remains unpaid, the EDA will maintain a separate and special "Bond Fund" to be used for no purpose other than the payment of the principal of and interest on the Note. The EDA irrevocably agrees to appropriate to the Bond Fund in each year Available Tax Increment. Any Available Tax Increment remaining in the Bond Fund will be transferred to the EDA's account for the TIF District upon the payment of all principal and interest to be paid with respect to the Note. Section 5. Certification of Proceedings. 5.01. Certification of Proceedings. The officers of the EDA are hereby authorized and directed to prepare and furnish to the Owner of the Note certified copies of all proceedings and records of the EDA, and the other affidavits, certificates, and information as may be required to show the facts relating to the legality and marketability of the Note as the same appear from the books and records under their custody and control or as otherwise known to them, and all the certified copies, certificates, and affidavits, including any heretofore furnished, will be deemed representations of the EDA as to the facts recited therein. Section 6. Effective Date. This resolution will be effective upon execution by the President and Executive Director following authorization by the board of commissioners of the EDA. Seconded by Commissioner Villavicencio Ayes — All The motion passed. G. NEW BUSINESS None H. ADJOURNMENT President Abrams adjourned the meeting at 6:54 p.m. September 11, 2023 Maplewood Economic Development Authority Minutes 8 EDA Special Meeting Packet Page Number 8 of 20 G1 MAPLEWOOD ECONOMIC DEVELOPMENT AUTHORITY STAFF REPORT Meeting Date November 13, 2023 REPORT TO: Melinda Coleman, Executive Director REPORT FROM: Danette Parr, Assistant Executive Director PRESENTER: Danette Parr, Assistant Executive Director AGENDA ITEM: First Amendment To a Contract For Private Redevelopment For Reuter Walton/Frost Avenue Development Group Project at 1136 And 1160 Frost Avenue East Action Requested: ✓ Motion ❑ Discussion ❑ Public Hearing Form of Action: ❑ Resolution ❑ Ordinance ✓ Contract/Agreement ❑ Proclamation Policy Issue: The Economic Development Authority (EDA) has received a request to amend a previously approved contract for private redevelopment. The amended language would allow for the modification of dates related to the commencement and completion of construction for the Reuter Walton (also known as Frost Avenue Group) project at 1136/1160 Frost Avenue. Recommended Action: Motion to approve the First Amendment to a Contract for Private Redevelopment for the Reuter Walton/Frost Avenue Development Group project at 1136 and 1160 Frost Avenue East. Fiscal Impact: Is There a Fiscal Impact? ✓ No ❑ Yes, the true or estimated cost is $0 Financing source(s): ❑ Adopted Budget ❑ Budget Modification ❑ New Revenue Source ❑ Use of Reserves ✓ Other: This request is for the purpose of allowing the developers additional time before they are required to commence and complete construction. Strategic Plan Relevance: ❑ Community Inclusiveness ✓ Financial & Asset Mgmt ❑ Environmental Stewardship ❑ Integrated Communication ❑ Operational Effectiveness ✓ Targeted Redevelopment The City has been supporting development projects as part of its Gladstone Neighborhood redevelopment strategy. The 1160 Frost Avenue property is located in the Gladstone neighborhood. The city previously owned one of the parcels as part of its land acquisition and assembly strategy to facilitate redevelopment consistent with the Gladstone Neighborhood Redevelopment Plan. Background: Project Overview Reuter Walton Development previously received land use approvals for the redevelopment of EDA Special Meeting Packet Page Number 9 of 20 G1 properties located at 1136 and 1160 Frost Avenue East. The project will include the demolition of the former Maplewood Marine building at 1136 Frost Avenue which will be combined with the vacant property at 1160 Frost Avenue in order to redevelop the site into a market -rate apartment building. The building will be five stories of above -ground wood -framed construction; and a floor of underground parking. The entire building will be approximately 237,993 gross total square feet, with an approximately 39,044 square foot footprint. The 150-unit market -rate building includes the following approximate unit mix: 13 percent studios/ alcoves, 33 percent one -bedrooms, 15 percent one -bedrooms with a den, 28 percent two - bedrooms, and 11 percent three -bedrooms. Parking is programmed at 1.62 stalls per unit overall — of which, at least one stall per unit will be provided within a secured parking garage. The proposed building will be constructed with contrasting light and dark fiber cement lap siding and wood -look lap siding accent boards. A brick fagade will be used on lower levels, and cementitious trim boards will be used throughout the building. Amenities include clubroom, fitness room, roof deck, outdoor pool, pickleball court, and dog run. On June 26, 2023 Reuter Walton Development had Tax Increment Financing (TIF) approved for the project, in the amount of $4.5 million to be repaid within 14 years assuming 95% of the available tax increment is paid on the note with an interest rate of 5.25%. The TIF Note is not a general obligation of the city and if at the end of the 14 years, the note is not repaid, the City does not make up the shortfall. Request Due to uncertainty in the marketplace and increased costs associated with financing the approved project for 1136 and 1160 Frost Avenue East, Reuter Walton is requesting additional time to allow for a delayed commencement and completion of construction. If approved, the agreement would be modified to change the date regarding the commencement of construction of the minimum improvements from December 31, 2023 to September 1, 2024, and the date of substantial completion from December 31, 2025 to December 31, 2026. These proposed changes will not impact the TIF terms beyond these specific dates. The changed dates will not impact the amount of return to be received by the developer. Attachments: 1. First Amendment To Contract For Private Redevelopment EDA Special Meeting Packet Page Number 10 of 20 G1, Attachment 1 FIRST AMENDMENT TO CONTRACT FOR PRIVATE REDEVELOPMENT This First Amendment to Contract for Private Redevelopment (the "First Amendment") is made this day of November, 2023, by and between the Maplewood Economic Development Authority, a public body corporate and politic under the laws of Minnesota (the "Maplewood Economic Development Authority" or "MEDA"), having its principal office at 1830 County Road B E, Maplewood, MN 55109-2702 and Frost Avenue Group, LLC, a Delaware limited liability company (the "Redeveloper"), having its principal office at 4450 Excelsior Blvd., Suite 400, St. Louis Park, MN 55416. RECITALS: WHEREAS, MEDA and the Redeveloper previously entered into a Contract for Private Redevelopment (the "Agreement") dated June 26, 2023 regarding the Redevelopment Property legally described on Exhibit A attached hereto; and WHEREAS, MEDA and the Redeveloper desire to modify the Agreement to provide for different dates to commence and complete construction of the Minimum Improvements. AGREEMENT: In consideration of the promises made between MEDA and the Redeveloper, the parties agree as follows: 1. All capitalized terms used in this First Amendment have the meanings ascribed to them in the Agreement. 2. Section 4.2 of the Agreement is modified to change the date regarding commencement of construction of the Minimum Improvements from December 31, 2023 to September 1, 2024 and the date of Substantial Completion from December 31, 2025 to December 31, 2026. 3. Except as modified by this First Amendment, the Agreement remains in full force and effect. 4. Counterparts. This First Amendment may be executed in one or more counterparts, each of which shall be deemed an original, and all of such counterparts together shall constitute one and the same agreement. IN WITNESS WHEREOF, MEDA and the Redeveloper have executed this First Amendment as of the day and year first above written. MA745-36-910704.v1 EDA Special Meeting Packet Page Number 11 of 20 G1, Attachment 1 MEDA: THE MAPLEWOOD ECONOMIC DEVELOPMENT AUTHORITY Marylee Abrams, President STATE OF MINNESOTA ) ss. COUNTY OF RAMSEY ) The foregoing instrument as acknowledged before me this day of , 2023, by Marylee Abrams, the President of the Maplewood Economic Development Authority, a public body corporate and politic under the laws of Minnesota, on behalf of the Economic Development Authority. Notary Public Melinda Coleman, Executive Director STATE OF MINNESOTA ) ss. COUNTY OF RAMSEY ) The foregoing instrument as acknowledged before me this day of , 2023, by Melinda Coleman, the Executive Director of the Maplewood Economic Development Authority, a public body corporate and politic under the laws of Minnesota, on behalf of the Economic Development Authority. 2 Notary Public MA745-36-910704.v1 EDA Special Meeting Packet Page Number 12 of 20 G1, Attachment 1 FROST AVENUE GROUP, LLC STATE OF ) ss. COUNTY OF ) The foregoing instrument was executed before me this day of , 2023, by , the of Frost Avenue Group, LLC, a limited liability company under the laws of Delaware, on behalf of the company. Notary Public MA745-36-910704.v1 EDA Special Meeting Packet Page Number 13 of 20 G1, Attachment 1 EXHIBIT A Legal Description of the Redevelopment Property The Redevelopment Property consists of the following parcels in Ramsey County, Minnesota: Lots 1 through 20, inclusive, Block 1, Kavanaugh and Dawson's Addition to Gladstone, together with the vacated alley in said Block 1; and Lots 1 to 13, inclusive, Block 2, Kavanagh and Dawson's Addition to Gladstone, and that portion of the vacated alley which accrued to said lots by reason of the vacation thereof, according to the recorded plat on file in the office of the Register of Deeds within and for Ramsey County, Minnesota. A-1 MA 745-36-910704. v 1 EDA Special Meeting Packet Page Number 14 of 20 G2 MAPLEWOOD ECONOMIC DEVELOPMENT AUTHORITY STAFF REPORT Meeting Date November 13, 2023 REPORT TO: Melinda Coleman, Executive Director REPORT FROM: Danette Parr, Assistant Executive Director PRESENTER: Danette Parr, Assistant Executive Director AGENDA ITEM: Call for a Special Meeting of the EDA on November 27, 2023 Regarding the Reuter Walton Project, 1136/1160 Frost Avenue East Action Requested: ✓ Motion ❑ Discussion ❑ Public Hearing Form of Action: ❑ Resolution ❑ Ordinance ❑ Contract/Agreement ❑ Proclamation Policy Issue: At the beginning of the year, the Economic Development Authority (EDA) established its regular meeting schedule for 2023, which generally meets quarterly. The EDA has the ability to cancel or add meetings as needed as agenda items arise. Recommended Action: Motion to call a special meeting of the EDA on November 27, 2023, at 6:45pm in the City Hall Council Chambers for the purpose of considering an Assignment and Assumption Agreement related to the Reuter Walton project at 1136/1160 Frost Avenue East. Fiscal Impact: Is There a Fiscal Impact? ✓ No ❑ Yes, the true or estimated cost is $0.00 Financing source(s): ❑ Adopted Budget ❑ Budget Modification ❑ New Revenue Source ❑ Use of Reserves ✓ Other: N/A Strategic Plan Relevance: ❑ Community Inclusiveness ❑ Financial & Asset Mgmt ❑ Environmental Stewardship ❑ Integrated Communication ❑ Operational Effectiveness ❑ Targeted Redevelopment Background: Staff recommends that the EDA call a special meeting on November 27, 2023. The tentative agenda for the meeting includes the consideration of an Assignment and Assumption Agreement related to the Reuter Walton project at 1136 and 1160 Frost Avenue E. Attachments: None EDA Special Meeting Packet Page Number 15 of 20 G3 MAPLEWOOD ECONOMIC DEVELOPMENT AUTHORITY STAFF REPORT Meeting Date November 13, 2023 REPORT TO: Melinda Coleman, City Manager REPORT FROM: Joe Rueb, Finance Director PRESENTER: Joe Rueb, Finance Director AGENDA ITEM: Resolution Providing Approval of the 2024 Preliminary EDA Budget Action Requested: ✓ Motion ❑ Discussion ❑ Public Hearing Form of Action: ✓ Resolution ❑ Ordinance ❑ Contract/Agreement ❑ Proclamation Policy Issue: State law requires that cities certify their proposed property tax levies to the county auditor by September 301". Once certified, the proposed tax levy can be reduced but cannot be increased. The EDA bylaws require the EDA to submit a budget annually to the City Council for consideration and incorporation into the City's annual budget and tax levy. Recommended Action: Motion to adopt the resolution providing approval of the 2024 Preliminary EDA Budget, in the amount of $150,000, with a funding request of $150,000 from the City Council from the EDA Fund Balance. Fiscal Impact: Is There a Fiscal Impact? ❑ No ✓ Yes, the true or estimated cost is $150,000 Financing source(s): ✓ Adopted Budget ❑ Budget Modification ❑ New Revenue Source ❑ Use of Reserves ❑ Other: N/A Strategic Plan Relevance: ✓ Community Inclusiveness ✓ Financial & Asset Mgmt ❑ Environmental Stewardship ✓ Integrated Communication ✓ Operational Effectiveness ❑ Targeted Redevelopment The operations of the EDA reflect all components of the strategic plan. Background: The City Council held two budget workshops in August with City staff. Council removed the EDA levy for 2024. Any funds expended in 2024 will be offset by the EDA Fund Balance. The EDA budget proposal is attached. A44arthmanfQ 1. Resolution Providing Approval of the 2024 Preliminary EDA Budget 2. EDA 2024 Budget Proposal EDA Special Meeting Packet Page Number 16 of 20 G3, Attachment 1 MAPLEWOOD ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION RECOMMENDING APPROVAL OF THE 2024 PRELIMINARY EDA BUDGET WHEREAS, State law requires the City of Maplewood to certify its preliminary property tax levy to the County Auditor by September 30t" of each year; and WHEREAS, the bylaws of the Maplewood Economic Development Authority (EDA) require the EDA to submit an annual budget to the City Council for inclusion and incorporation in the City's annual budget and tax levy. NOW THEREFORE BE IT RESOLVED that the Maplewood Economic Area Development Authority (EDA) approves the 2024 Preliminary EDA Budget, in the amount of $150,000, and recommends a request to the Maplewood City Council for funding from the EDA Fund Balance in the amount of $150,000 for fiscal year 2024. EDA Special Meeting Packet Page Number 17 of 20 G3, Attachment 2 City of Maplewood 2024 Special Revenue Budget Summary Maplewood EDA Fund Responsible Department. Community Development Maplewood EDA (280) Original Proposed Actual Budget Estimated Budget Budget % 2022 2023 2023 2024 Incr/(Decr) Revenues: Property Taxes $ 99,071 $ 150,000 147,171 $ --100.00% Other Taxes - - - - 0.00% Licenses & Permits - - - - 0.00% Intergovernmental 47,385 - - - 0.00% Charges for Services - - - - 0.00% Fines & Forfeits - - - - 0.00% Interest - - - - 0.00% Miscellaneous Revenue - - - - 0.00% Total Revenues 146,456 150,000 147,171 --100.00% Expenditures: Current General Government - - - - 0.00% Community Development 408,208 150,000 30,000 150,000 0.00% Parks & Recreation - - - - 0.00% Public Safety - - - - 0.00% Public Works - - - - 0.00% Total Current Expenditures 408,208 150,000 30,000 150,000 0.00% Capital Outlay General Government - - - - 0.00% Public Safety - - - - 0.00% Parks & Recreation - - - - 0.00% Community Development - 100,000 - - 0.00% Total Capital Outlay - 100,000 - - 0.00% Total Expenditures 408,208 250,000 30,000 150,000-40.00% Excess of Revenues Over (261,752) (100,000) 117,171 (150,000) 0.00% (Under) Expenditures Other Financing Sources (Uses) Transfers In 350,000 - - - 0.00% Transfers Out - - - - 0.00% Sale of General Fixed Assets - - - - 0.00% Total Other Financing 350,000 - - - 0.00% Sources (Uses) Net Change in Fund Balance 88,248 (100,000) 117,171 (150,000) Fund Balances: Beginning of Year 603,918 692,166 692,166 809,337 End of Year $ 692,166 $ 592,166 $ 809,337 $ 659,337 EDA Special Meeting Packet Page Number 18 of 20 G4 MAPLEWOOD ECONOMIC DEVELOPMENT AUTHORITY STAFF REPORT Meeting Date November 13, 2023 REPORT TO: Melinda Coleman, Executive Director REPORT FROM: Michael Martin, AICP, Assistant Community Development Director PRESENTER: Danette Parr, Community Development Director AGENDA ITEM: 2024 EDA Meeting Calendar Action Requested: ✓ Motion ❑ Discussion ❑ Public Hearing Form of Action: ❑ Resolution ❑ Ordinance ❑ Contract/Agreement ❑ Proclamation Policy Issue: Approval of a meeting schedule for the Economic Development Authority (EDA) for the upcoming calendar year helps the EDA, city staff, applicants, and residents plan ahead for the year. Recommended Action: Motion to approve the 2024 EDA Meeting Calendar with meetings on January 8, April 8, July 8, September 9, and December 9 in 2024. Fiscal Impact: Is There a Fiscal Impact? ✓ No ❑ Yes, the true or estimated cost is $0 Financing source(s): ❑ Adopted Budget ❑ Budget Modification ❑ New Revenue Source ❑ Use of Reserves ✓ Other: N/A Strategic Plan Relevance: ❑ Community Inclusiveness ❑ Financial & Asset Mgmt ❑ Environmental Stewardship ❑ Integrated Communication ✓ Operational Effectiveness ❑ Targeted Redevelopment N/A Backaround: Near the end of each year, the EDA establishes a regular meeting schedule for the next calendar year. The meetings generally occur quarterly with adjustments to account for the city's budget process. Staff recommends that the EDA establish a similar meeting calendar for 2024 with the following dates: • January 8th • April 8th • July 8th • September 9th • December 9th EDA Special Meeting Packet Page Number 19 of 20 G4 These dates correspond to regularly scheduled City Council meeting dates, which allows the EDA meeting to take place before or immediately after the City Council meeting, as necessary. Additional meetings throughout the year can be scheduled to review pertinent EDA business. The EDA has the ability to cancel or add meetings as needed as long as all notice requirements are met. Attachments: None EDA Special Meeting Packet Page Number 20 of 20