030810 EDACITY OF NEW HOPE
EDA MEETING
cTea City Hall, 4401 Xylon Avenue North
March 8, 2010
EDA Meeting will commence upon
adjournment of the City Council Meeting
President Kathi Hemken
Commissioner John Elder
Commissioner Andy Hoffe
Commissioner Eric Lammle
Commissioner Daniel Stauner
1. Call to order
2. Roll call
3. Approval of regular meeting minutes of January 11, 2010
4. Resolution combining related TIF and HRA funds
5. Adjournment
CITY OF NEW HOPE
4401 XYLON AVENUE NORTH
NEW HOPE, MINNESOTA 55428
EDA Minutes January 11, 2010
Regular Meeting City Hall
CALL TO ORDER President Hemken called the meeting of the Economic Development
Authority to order at 8:55 p.m.
ROLL CALL Present: Kathi Hemken, President
John Elder, Commissioner
Andy Hoffe, Commissioner
Eric Lammle, Commissioner
Daniel Stauner, Commissioner
Staff Present: Kirk McDonald, City Manager
Curtis Jacobsen, Director of Community Development
Guy Johnson, Director of Public Works
Valerie Leone, City Clerk
Jason Quisberg, City Engineer
Steve Sondrall, City Attorney
APPROVE MINUTES Motion was made by Commissioner Elder, seconded by Commissioner
Stauner, to approve the Regular Meeting Minutes of August 10, 2009. All
present voted in favor. Motion carried
723142nd AVENUE President Hemken introduced for discussion Item 4, Discussion regarding
Item 4 loan request to assist with gas tank removal at 7231 42 Avenue North.
Mr. Curtis Jacobsen, director of community development, stated the city was
contacted by the contract manager for MDW Equity LLC regarding 7231 42nd
Avenue North. He stated the request was for a city- issued loan of $16,445 to
assist with removal of buried gas tanks on the property.
Mr. Jacobsen explained the request does not meet the minimum requirements
of the city's Business Subsidy policy, but staff always presents such requests
to the EDA for a decision. Commissioner Stauner noted the request could fall
under #21 "Business loans and loan guarantees of $75,000 or less ".
The EDA discussed the Pollution Control Agency's involvement and the need
for a formal plan regarding the loan request for the removal of tanks. It was
noted there is no confirmed evidence of soil contamination. Mr. Jacobsen
noted West Metro Fire- Rescue District is assisting the city with the MPCA's
Enforcement Authority.
Commissioner Lammle recommended a soil remediation plan be submitted in
addition to the tank removal plan.
EDA Meeting
Page 1 January 11, 2010
Staff was directed to contact the property owner to solicit additional
information.
IMP. PROJECT 842 President Hemken introduced for discussion Item 5, Resolution approving an
Item 5 amended and restated interim agreement between Ryan Companies, Inc., and
the New Hope Economic Development Authority for the potential
redevelopment of City Center (improvement project no. 842).
Mr. Curtis Jacobsen, director of community development, stated adoption of
the resolution would extend the agreement until August, 2010.
Mr. Mark Schoening of Ryan Companies was recognized. He noted the
complexity of the proposed project and the need for the extension. He stated
he continues to believe in the project and Ryan Companies continues to have
resources to pursue the development.
Discussion ensued and the EDA expressed its strong desire for construction of
a Super Target which would include a grocery component. Mr. Schoening
acknowledged that he understands the EDA's position. He spoke of the need
for a staged plan for a successful redevelopment.
Commissioner Lammle thanked Mr. Schoening for his efforts. He agreed with
the incremental approach of the development.
EDA RESOLUTION Commissioner Lammle introduced the following resolution and moved its
10 -01 adoption: "RESOLUTION APPROVING AN AMENDED AND RESTATED
Item 5 INTERIM AGREEMENT BETWEEN RYAN COMPANIES, INC., AND THE
NEW HOPE ECONOMIC DEVELOPMENT AUTHORITY FOR THE
POTENTIAL REDEVELOPMENT OF CITY CENTER (IMPROVEMENT
PROJECT NO. 842)." The motion for the adoption of the foregoing resolution
was seconded by Commissioner Elder, and upon vote being taken thereon,
the following voted in favor thereof: Hemken, Elder, Hoffe, Lammle, Stauner;
and the following voted against the same: None; 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 Lammle, seconded by,Commissioner
Elder, to adjourn the meeting. All present voted in favor. Motion carried The
New Hope EDA adjourned at 9:15 p.m.
Respectfully submitted,
Valerie Leone, City Clerk
EDA Meeting
Page 2 January 11, 2010
Request for Action
Originating Department
Approved for Agenda
Agenda Section
City Manager
March 8, 2010
EDA
Item No.
By: Kirk McDonald, City Mana er I
By: Kirk McDonald
4
Resolution combining related TIF and HRA funds
Requested Action
Staff requests adoption of the resolution to consolidate several funds.
Policy /Past Practice
In the past the EDA has ratified actions taken by the City Council related to fund closeouts or consolidations.
Background
Staff presented information to the City Council at its work session of February 16, 2010, and the Council expressed
support for fund consolidation. The City Council approved a resolution at the February 22 Council meeting combining
related TIF and HRA funds. At that time it was recommended that the EDA ratify the City Council's actions.
In November 2009, Krass Monroe, the city's TIF consultant, completed their annual cash flow update of all the city's
redevelopment funds including TIF, EDA and HRA. Krass Monroe found that compared to other cities, the existing fund
set up was more complex than necessary and recommended several of the redundant funds be consolidated. For example
two funds had been established for several TIF districts, i.e. sinking fund and construction fund, and HRA administration
funds are routinely combined with EDA funds. AEM reviewed the recommendations from Krass Monroe and is in
agreement with the recommendation to close and consolidate several of the funds. AEM recommends the EDA approve a
resolution formally authorizing the transfers. This is an action that will enhance our effort at making the financial tracking
system less complex and continue our efforts to streamline the city's finances as several of the funds are serving the same
purpose.
Krass Monroe is scheduled to attend the April 2010 work session to review all TIF and EDA fund balances with the
city /EDA.
Attachments
Resolution
Krass Monroe memo dated February 11, 2010
7
Motion by -_ Second by
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1: \ RFA\ PLANNING\ PLANNING\ Q&R-EDA Consolidation of Funds 3- 8- 2010.docx
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EDA Resolution No. 2010-
Resolution combining related
TIF and HRA funds
WHEREAS, the following funds have been established in the city's finance system, and
WHEREAS, upon review by the city's TIF consultant, Krass and Monroe, it was determined that several funds
are serving the same purpose and they should be consolidated, and
WHEREAS, at December 31, 2009, the balances in the funds listed below were to be closed to the identified
fund.
NOW, THEREFORE, BE IT RESOLVED that the EDA hereby authorizes the closeout of the following funds and
recommends the City Council approval of the same action.
Receiving fund
Nu mber Name
9213
Fund to be closed
9214
Number
Name
Amount
9112
EDA Sinking #5, 85 -1
$102,315.39
9113
EDA Sinking #7, 86 -1
304,131.65
9116
EDA Sinking #9, 02 -01
2,417.48
9011
HRA Administration
167,233.25
Receiving fund
Nu mber Name
9213
EDA Construction #5, 85 -1
9214
EDA Construction #7, 86 -1
9216
EDA Construction #9, 02 -01
9015
EDA
Adopted by the Economic Development authority of the city of New Hope, Hennepin County, Minnesota, this 8th
day of March, 2010.
President
Attest:
Executive Director
k 3
C A
Greg D. Johnson
gjohnson @krassmonroe.com
Direct 952.885.5994
James R. Casserly
jasserly@krassmonroe.com
Direct 952.885.1296
MEMORANDUM
To: City of New Hope
From: Greg D. Johnson, CPA, Senior Public Finance Analyst
James R. Casserly, Esq.
Date: ' February 11, 2010
Re: Combining TIF and HRA funds
Our File No. 10048 -12.
Our office has made use of City's internal financial records for a number of years. These have
been used in the preparation of the Cash Flow Update of redevelopment funds that we prepare
annually. These financial records are also used by us in preparing the City's annual TIF District
Reporting to the Office of State Auditor.
When the TIF District reports were prepared for 2008, we were required to consolidate 16
different City funds relating to only 8 TIF districts. In the City's accounting system, a separate
bond fund and construction fund is set up for each TIF District. We have reviewed these 18
funds with Abdo, Eick & Meyers and have determined that for three of the TIF Districts, the
funds classified as bond funds should be combined into the construction funds because in these
three districts there are no outstanding bonds, and so there is no reason to have a bond fund.
Our recommendation is that the bond funds in TIF districts 85 -1, 86 -1 and 02 -1 be combined
into the construction funds for those TIF Districts.
Another issue brought to our attention is the amount shown in the HRA Administration fund. We
understand that since the HRA program has ended any current activities are managed by the
EDA. From 1980 to April, 1989, all the City's TIF districts were established under the HRA. On
April 1,0, 1989 the TIF districts were transferred from the HRA to the EDA, and all TIF districts
since that time have been established as EDA TIF Districts. As a result it is reasonable to
transfer the balance in the HRA Administration fund to the EDA fund to continue the established
programs and activities.
KM: 4819 -4772 -2757, V. 2
8000 Norman Center Drive, Suite 1000
Minneapolis, Minnesota 55437 -1178
setr952.885.5999 FAX952.885.5969
www.krassmonroe.com