091420 EDA Meeting Packet
EDA MEETING
City Hall, 4401 Xylon Avenue North
Monday, September 14, 2020
President Kathi Hemken
Commissioner John Elder
Commissioner Cedrick Frazier
Commissioner Andy Hoffe
Commissioner Jonathan London
1. Call to order – EDA Meeting of September 14, 2020
2. Roll call
3. Approval of Minutes:
June 22, 2020
4. Resolution authorizing the proposed levy of a special benefit levy pursuant to
Minnesota Statutes, Section 469.033, subdivision 6 and approval of a preliminary
budget for fiscal year 2021
5. Adjournment
EDA Meeting
Page 1 June 22, 2020
City of New Hope
4401 Xylon Avenue North
New Hope, Minnesota 55428
EDA Minutes June 22, 2020
Regular Meeting City Hall
Virtual WebEx
CALL TO ORDER President Hemken called the meeting of the Economic Development Authority to
order at 8:34 p.m.
ROLL CALL Present:
Kathi Hemken, President
John Elder, Commissioner
Cedrick Frazier, Commissioner
Andy Hoffe, Commissioner
Jonathan London, Commissioner
Staff Present:
Kirk McDonald, City Manager
Jeff Alger, Community Development Specialist
Brandon Bell, Community Development Assistant
Dan Boyum, City Engineer
Valerie Leone, City Clerk
Jeff Sargent, Director of Community Development
Stacy Woods, Assistant City Attorney
APPROVAL OF
MINUTES
Item 3
Motion was made by Commissioner Hoffe, seconded by Commissioner Elder, to
approve the minutes of June 8, 2020. All present voted in favor. Motion carried.
LOAN FOR HABITAT
FOR HUMANITY
Item 4
President Hemken introduced for discussion EDA Item 4, Resolution approving
forgivable loan of CDBG funds to Twin Cities Habitat for Humanity, Inc.
Mr. Jeff Alger, community development specialist, explained at the November 12, 2019,
Economic Development Authority (EDA) meeting, Council Member Frazier requested
that the city broaden its scattered site housing program to include affordable housing
projects for first time homebuyers.
Mr. Alger stated the use of Community Development Block Grant (CDBG) funds was
discussed at the February 18, 2020, work session, with a majority of the City Council
supporting the splitting of available funds between the Hennepin County Home Rehab
Program and an affordable home rehabilitation project, through an organization such
as Habitat for Humanity. He noted a resolution approving use of the 2020 CDBG funds
and remaining 2019 CDBG funds was approved at the February 24, 2020, City Council
meeting which included $76,250 in allocations for a rehabilitation project.
Mr. Alger explained the city has worked with Habitat for Humanity on several
projects in the past, most recently on a rehabilitation project in 2012. Staff met with
representatives of Habitat for Humanity in early 2020 to discuss potential
opportunities for affordable scattered site housing projects. He stated Habitat for
Humanity requested the approval of non-project-specific funds in order to
EDA Meeting
Page 2 June 22, 2020
eliminate the need to have a funding contingency in the purchase agreement,
which can be a factor in a seller’s willingness to sign an agreement with Habitat
for Humanity (especially in strong housing market). A contingency requiring City
Council approval of a specific project would require Habitat For Humanity to ask
for at least a month long contingency. Due to the COVID-19 pandemic, Habitat for
Humanity requested until the end of 2021 (at the latest) to complete the project.
He stated the city attorney has prepared a resolution and loan commitment letter,
providing $76,250 in CDBG funds to Habitat for Humanity in th e form of a
forgivable loan. Habitat for Humanity and Hennepin County reviewed the loan
commitment letter and have no concerns. A third party agreement between the
city and Habitat for Humanity establishing the rules of the CDBG program will be
drafted by Hennepin County.
Mr. Alger explained that Hennepin County cannot distribute CDBG funds until the
project has been completed. The upfront loan of $76,250 to Habitat for Humanity
would be funded utilizing EDA funds. Upon completion of the project, the city would
request to be reimbursed for the $76,250 from Hennepin County (CDBG funds) and
would then forgive the loan to Habitat for Humanity. The EDA fund would be
reimbursed and the funds could be used for a future project.
Mr. Alger stated Chad Dipman from Habitat for Humanity is available to answer any
questions. Mr. Chad Dipman, project systems supervisor with Habitat for Humanity,
was recognized. He thanked the city for the partnership opportunity and noted they
may have a lead on a rehab property.
Commissioner London inquired whether the city offers any programs with forgivable
loans. Mr. Alger stated Hennepin County has a program that offers forgivable loans
after residing at the property for 15 years. He stated the city offers loans through Center
for Energy and Environment (CEE), but the loans are not completely forgivable.
Commissioner Frazier questioned whether the selected site would be in the city of New
Hope. Mr. Alger stated the contract stipulates that the property must be in the city.
Discussion ensued regarding funding one large project such as a project with Habitat
for Humanity versus utilizing the funds for several smaller loans to benefit multiple
New Hope residents. Commissioner London stated he is aware of 11 “shovel ready”
projects for New Hope homeowners that will not be funded.
Commissioner Elder asked whether the city could fund both by postponing the Habitat
for Humanity project until 2021.
Mr. Jeff Sargent, director of community development, explained the city is in a
unique situation at this time because funds remain from 2019 that can be added to
the 2020 funds to create a larger pool of funding. He noted the Habitat for
Humanity project would help a low-income, first-time homebuyer. He indicated
the remaining CDBG funds will be distributed to multiple properties in New Hope
through the Hennepin County Home Rehab Program.
RESOLUTION 2020-07
Item 4
Commissioner Frazier introduced the following resolution and moved its
adoption “RESOLUTION APPROVING FORGIVABLE LOAN OF CDBG
FUNDS TO TWIN CITIES HABITAT FOR HUMANITY, INC.” The motion for
EDA Meeting
Page 3 June 22, 2020
the adoption of the foregoing resolution was seconded by President Hemken, and
upon vote being taken thereon, the following voted in favor thereof: Hemken,
Elder, Frazier, Hoffe; and the following voted against the same: London;
Abstained: None; Absent: None; whereupon the resolution was declared duly
passed and adopted, signed by the president which was attested to by the
executive director.
ADJOURNMENT Motion was made by Commissioner Frazier, seconded by Commissioner Elder, to
adjourn the meeting. All present voted in favor. Motion carried. The New Hope
EDA adjourned at 8:53 p.m.
Respectfully submitted,
Valerie Leone, City Clerk
I:\RFA\City Manager\2020\Budget 2021\EDA 091420\q-EDA property tax levy 9.14.20.docx
Request for Action
September 14, 2020
Approved by: Kirk McDonald, City Manager
Originating Department: City Manager
By: Kirk McDonald, City Manager
Agenda Title
Resolution authorizing the proposed levy of a special benefit levy pursuant to Minnesota Statutes, Section
469.033, subdivision 6 and approval of a preliminary budget for fiscal year 2021
Requested Action
Staff requests the EDA to adopt the attached resolution establishing the EDA levy for the 2021 budget.
Background
Historically the amount of the EDA levy was included in the city’s proposed levy. At AEM’s
recommendation, beginning with the 2015 budget year, a separate resolution has been adopted by the EDA
for the EDA levy. The EDA levy has been increased over the past several years to comply with market value
limitations to support redevelopment projects. An increase of $17,000 is recommended for 2021 to support the
scattered site housing program due to a decrease in CDBG funding and program eligibility changes.
Minnesota Statutes permit the EDA to levy up to .01813% of the estimated market value in the city.
2013 - $85,000
2014 - $150,000 (an increase of $65,000 to fund the CD assistant position)
2015 - $150,000
2016 - $150,000
2017 - $200,000 (an increase of $50,000 for increased funding to scattered site housing program)
2018 - $200,000
2019 - $300,000 (an increase of $100,000 to support scattered site housing program)
2020 - $348,000 (an increase of $48,000 to support scattered site housing program)
2021 - $365,000 (an increase of $17,000 to support scattered site housing program)
Attachments
EDA Resolution
Hennepin County Levy Limitation
Agenda Section
EDA
Item Number
4
CITY OF NEW HOPE
ECONOMIC DEVELOPMENT AUTHORITY
RESOLUTION NO. 2020-
RESOLUTION AUTHORIZING THE PROPOSED LEVY OF
A SPECIAL BENEFIT LEVY PURSUANT TO MINNESOTA STATUTES,
SECTION 469.033, SUBDIVISION 6 AND APPROVAL
OF A PRELIMINARY BUDGET FOR FISCAL YEAR 2021
WHEREAS, pursuant to Minnesota Statutes, Section 469.090 to 469.108 (the “EDA Act”), the City Council of
the City of New Hope created the City of New Hope Economic Development Authority (the “Authority”); and
WHEREAS, pursuant to the EDA Act, the City Council granted to the Authority all of the powers and duties
of a housing and redevelopment authority under the provisions of the Minnesota Statues, Sections 469.001 to
469.047 (the “HRA Act”); and
WHEREAS, Section 469.033, subdivision 6, of the HRA Act permits the Authority to levy and collect a special
benefit levy of up to .01813 percent of estimated market value in the City upon all taxable real property within
the City; and
WHEREAS, the Authority desires to levy a special benefit levy in the amount of up to .01813 percent
estimated market value of the City for taxes payable in 20 21; and
WHEREAS, pursuant to Minnesota Statues, Section 275.065, the Authority is required to adopt a proposed
budget and a proposed tax levy and submit the same to the County Auditor by September 30; and
WHEREAS, the Authority has before it the amount of the proposed levy for collection in 20 21, subject to any
adjustments in the final levy.
NOW THEREFORE BE IT RESOLVED by the members of the New Hope Economic Development Authority:
1. The proposed budget of $365,000 for the operations of the Authority in fiscal year 2021, as presented for
consideration by the City Council, is hereby in all respects approved, subject to final approval by the
Authority before certification of the tax levy under Minnesota Statutes, Section 275.07.
2. Staff of the Authority are hereby authorized and directed to file the proposed budget with the City in
accordance with Minnesota Statues, Section 469.033, Subdivision 6.
3. The proposed special benefit levy pursuant to Minnesota Statutes, Section 469.033, Subdivision 6, is
hereby approved in maximum amount equal to .01813 percent of estimated market value in the City of
New Hope, currently estimated to be $2,106,273,300 with respect to taxes payable in calendar year 2020,
subject to final approval by the Authority before certification of the special be nefit levy pursuant to
Minnesota Statues, Section 275.07.
4. Staff of the Authority are hereby authorized and directed to seek the approval by resolution of the City
Council of the levy of special benefit taxes payable in 20 21 and to take such other actions as are necessary
to bring before the Board the final budget and levy to be sent to the county auditor by December 28, 2020
(five working days after December 20, 2020).
Adopted by the Economic Development Authority on September 14, 2020.
___________________________________________
President
Attest:
Executive Director