Loading...
HomeMy WebLinkAbout2024-11-12 EDA Meeting Minutes-Special Meeting MEETING MINUTES MAPLEWOOD ECONOMIC DEVELOPMENT AUTHORITY SPECIAL MEETING 6:30 P.M. Tuesday, November 12, 2024 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 6:34 p.m. by Vice President Cave. B. ROLL CALL Marylee Abrams, President Absent Rebecca Cave, Vice President Present Kathleen Juenemann, Commissioner Present Chonburi Lee, Commissioner Present Nikki Villavicencio, Commissioner Present C. APPROVAL OF AGENDA Commissioner Lee moved to approve the agenda as submitted. Seconded by Commissioner Juenemann Ayes – All The motion passed. D. APPROVAL OF MINUTES 1. September 9, 2024 Economic Development Authority Meeting Minutes Commissioner Juenemann moved to approve the September 9, 2024 Economic Development Authority Meeting Minutes as submitted. Seconded by Commissioner Lee Ayes – All The motion passed. 2. October 15, 2024 Economic Development Authority Bus Tour Meeting Minutes Commissioner Lee moved to approve the October 15, 2024 Economic Development Authority Bus Tour Meeting Minutes as submitted. Seconded by Commissioner Villavicencio Ayes – Vice President Cave Commissioner Lee Commissioner Villavicencio Abstain – Commissioner Juenemann The motion passed. November 12, 2024 Maplewood Economic Development Authority Special Meeting Minutes 1 E. PUBLIC HEARING None F. UNFINISHED BUSINESS None. G. NEW BUSINESS 1. Tax Increment Financing District No. 1-18 a. Resolution Adopting Modification of the Development District Program for Development District No. 1 and the Tax Increment Financing Plan for Tax Increment Financing District No. 1-18 b. Contract for Private Development c. Resolution Authorizing Interfund Loan Assistant Executive Director Parr introduced the item. Schane Rudlang, Municipal Adviser with Ehlers, gave the presentation. Commissioner Lee moved to approve the resolution adopting Modification of the Development District Program for Development District No. 1 and the Tax Increment Financing Plan for Tax Increment Financing District No. 1-18. Resolution 24-11-0022 RESOLUTION ADOPTING MODIFICATION OF THE DEVELOPMENT DISTRICT PROGRAM FOR DEVELOPMENT DISTRICT NO. 1 AND THE TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. 1-18 BE IT RESOLVED by the Board of Commissioners of 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. November 12, 2024 Maplewood Economic Development Authority Special Meeting Minutes 2 1.04. 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 1880 English Street N., MEDA authorized the preparation of a modification of the Development Program and a tax increment financing plan (the “TIF Plan”) for Tax Increment Financing District No. 1-18 (the “TIF District”), which are 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. 1-18”, 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 on September 27, 2024, for review and comment and said public bodies were notified of the public hearing to be held on the modified Development Program and TIF Plan by the City on October 28, 2024. Notice was also provided to the Ramsey County commissioner in whose district the TIF District is located 30 days before publication of the notice of the public hearing. 2.02. On October 28, 2024, the City opened the public hearing and continued it to November 12, 2024. 2.03. 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. 2.04. MEDA also finds that the modified Development Program and the TIF Plan are consistent with the City’s comprehensive plan. 2.05. The modified Development Program and TIF Plan are hereby adopted. Section 3. Further Proceedings. 3.01. MEDA requests that the City hold the continued 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 ofthe property within TIF District No. 1-18 be certified to MEDA by Ramsey County. 18 Seconded by Commissioner Villavicencio Ayes – All November 12, 2024 Maplewood Economic Development Authority Special Meeting Minutes 3 The motion passed. Commissioner Juenemann moved to approve the Contract for Private Development with Gladstone Village II Limited Partnership. Seconded by Commissioner Lee Ayes – All The motion passed. Commissioner Juenemann moved to approve the resolution authorizing an Interfund Loan for Advance of Certain Costs in Connection with Tax Increment Financing District No. 1-18. Resolution 24-11-2023 RESOLUTION AUTHORIZING INTERFUND LOAN FOR ADVANCE OF CERTAIN COSTS IN CONNECTION WITH TAX INCREMENT FINANCING DISTRICT NO. 1-18 BE IT RESOLVED by the Board of Commissioners of the Maplewood Economic Development Authority as follows: Section 1. Background. 1.01. The Maplewood Economic development Authority (“MEDA”) has established Tax Increment Financing District No. 1-18 (the “TIF District”), pursuant to Minnesota Statutes, Sections 469.174 through 469.1794, as amended (the “TIF Act”). 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’s Executive Director, 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 November 12, 2024 Maplewood Economic Development Authority Special Meeting Minutes 4 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 5.0 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 incrementfrom 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. 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. November 12, 2024 Maplewood Economic Development Authority Special Meeting Minutes 5 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 Villavicencio Ayes – All The motion passed. 2. Resolution Approving Demolition of the Structurally Substandard Building at 1946 English Street and Inclusion of the Parcel in a Future Redevelopment Tax Increment Financing District Assistant Executive Director Parr gave the staff report. Commissioner Lee moved to approve the resolution regarding the demolition of the structurally substandard building at 1946 English Street and inclusion of the parcel in a future redevelopment tax increment financing district. Resolution 24-11-0024 RESOLUTION APPROVING DEMOLITION OF THE STRUCTURALLY SUBSTANDARD BUILDING AT 1946 ENGLISH STREET AND INCLUSION OF THE PARCEL IN A FUTURE REDEVELOPMENT TAX INCREMENT FINANCING DISTRICT BE IT RESOLVED by the Board of Commissioners of the Maplewood Economic Development Authority (“MEDA”) as follows: WHEREAS, on May 29, 2019, MEDA acquired the property located at 1946 English Street, the former Moose Lodge site, (the “Property”) with the intention of redeveloping the site and adjacent parcels in the future; and WHEREAS, at MEDA’s request, on August 8, 2018 LHB, Inc. conducted an inspection of the Property, including the interior and exterior of the building located thereon, for the purpose of determining whether the Property qualified for inclusion in a redevelopment tax increment financing district; and WHEREAS, on August 21, 2018, LHB issued a report which concluded that the building located on the Property meets the definition of structurally substandard under Minnesota Statutes, section 469.174, subd. 10(b) and that 92 percent of the Property is covered by buildings, parking lots or other improvements, thus meeting the coverage test of Minnesota Statutes, section 469.174, subd. 10(e); and November 12, 2024 Maplewood Economic Development Authority Special Meeting Minutes 6 WHEREAS, no repairs or improvements have been made to the building or the Property since the time of the LHB report and it has continued to deteriorate; and WHEREAS, a water pipe break in early 2021 resulted in further damage to the structure; and WHEREAS, on October 28, 2024 LHB updated their earlier report to reflect that the building has only further declined since their 2018 inspection; and WHEREAS, Minnesota Statutes, section 469.174, subd. 10(d)(2) allows the demolition of a structurally substandard building and inclusion of the parcel in a redevelopment tax increment financing district within three years of the date of demolition if, prior thereto, the EDA adopts a resolution finding the building to be structurally substandard and the coverage test to be met and expressing the EDA's intent to incorporate the parcel in a future tax increment financing district. NOW, THEREFORE, BE IT RESOLVED by the Maplewood Economic Development Authority as follows: 1. The principal building on the Property located at 1946 English Street is hereby found to be structurally substandard within the meaning of Minnesota Statutes, section 469.174, subd. 10(b) and more than 15 percent of the Property is covered by buildings, parking lots or other improvements as defined by Minnesota Statutes, section 469.174, subd. 10(e). The City’s findings in this regard are based on a report by LHB, Inc. dated October 28, 2024 which was prepared after an inspection of the Property. No repairs or improvements have been made to the building since the time of the LHB report and it has continued to deteriorate. 2. MEDA hereby declares its intent to include the Property in a redevelopment tax increment financing district at a future date and in doing so intends to rely on Minnesota Statutes, section 469.174, subd. 10(d). 3. MEDA intends to demolish the building in the near future to remove the hazard to public health and safety it poses in its current condition. Seconded by Commissioner Juenemann Ayes – All The motion passed. H. ADJOURNMENT Vice President Cave adjourned the meeting at 6:50 p.m. Andrea Sindt, City Clerk November 12, 2024 Maplewood Economic Development Authority Special Meeting Minutes 7