120913 EDACITY OF NEW HOPE
EDA MEETING
V5KN City Hall, 4401 Xylon Avenue North
December 9, 2013
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 September 9, 2013, EDA Minutes
4. Resolution rescinding EDA Resolution No. 2013 -09 which established an EDA Levy
collectible in 2014
5. Adjournment
CITY OF NEW HOPE
4401 XYLON AVENUE NORTH
NEW HOPE, MINNESOTA 55428
EDA Minutes September 9, 2013
Regular Meeting City Hall
CALL TO ORDER President Hemken called the meeting of the Economic Development
Authority to order at 7:55 p.m.
ROLL CALL Present: Kathi Hemken, President
John Elder, Commissioner
Andy Hoffe, Commissioner
Daniel Stauner, Commissioner
Absent: Eric Lammle, Commissioner
Staff Present: Kirk McDonald, City Manager
Curtis Jacobsen, Director of Community Development
Valerie Leone, City Clerk
Stacy Woods, Assistant City Attorney
APPROVE MINUTES Motion was made by Commissioner Elder, seconded by Commissioner Hoffe,
to approve the Regular Meeting Minutes of July 22, 2013. Voting in favor:
Hemken, Elder, Hoffe, Stauner; Voting against: none; Absent: Lammle;
Abstained: None. Motion carried.
EDA LEVY President Hemken introduced for discussion EDA Item 4, Resolution
Item 4 establishing the EDA levy, collectible in 2014, and authorizing certification to
the county auditor.
Mr. Curtis Jacobsen, director of community development, explained the EDA
levy for last year was $85,000, and it is proposed to increase an additional
$65,000 to fund the cost of another staff member in the Community
Development Department. He stated the resolution sets the EDA levy at
$150,000 for 2014.
RESOLUTION 2013 -09 Commissioner Elder introduced the following resolution and moved its
Item 4 adoption "RESOLUTION ESTABLISHING THE EDA LEVY,
COLLECTIBLE IN 2014, AND AUTHORIZING CERTIFICATION TO THE
COUNTY AUDITOR." The motion for the adoption of the foregoing
resolution was seconded by Commissioner Hoffe, and upon vote being taken
thereon, the following voted in favor thereof: Hemken, Elder, Hoffe, Stauner;
and the following voted against the same: None; Abstained: None; Absent:
Lammle, 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 Elder, seconded by Commissioner
Stauner, to adjourn the meeting. Voting in favor: Hemken, Elder, Hoffe,
Stauner; Voting against: none; Absent: Lammle; Abstained: None. Motion
EDA Meeting
Page 1 September 9, 2013
carried The New Hope EDA adjourned at 7:57 p.m.
Respectfully submitted,
Valerie Leone, City Clerk
EDA Meeting
Page 2 September 9, 2013
l
Originating Department
City Manager
Kirk McDonald,
Approved for Agenda
December 9, 2013
Agenda Section
EDA
Item No.
Kirk McDonald
Resolution rescinding EDA Resolution No. 2013 -09 which established an EDA Levy collectible in 2014
Requested Action
Staff requests adoption of the resolution to rescind Resolution No. 2013 -09 that was adopted September 9, 2013, to
establish the EDA levy.
Policy /Past Practice
The EDA has authority to establish a tax levy.
Background
The EDA adopted a resolution on September 9 to levy $150,000. Subsequent to the meeting AEM learned that in
order to levy a separate EDA levy the City Council must establish the district prior to July 1 in the year prior to
levy. Therefore it is necessary to rescind the EDA resolution. The full levy amount was incorporated into the city
levy.
Attachments:
Resolution for consideration
Resolution No. 2013 -09
Memorandum from Steve McDonald, AEM
Motion by L L12 Second by
I:/RFA /CityManager /2013 /Q -EDA levy rescind 120913
City of New Hope
EDA Resolution 2013-
Resolution rescinding EDA Resolution No. 2013 -09
which established an EDA Levy collectible in 2014
WHEREAS, on September 9, 2013, the New Hope EDA adopted Resolution No.
2013 -09 establishing an EDA levy collectible in 2014; and
WHEREAS, subsequent to the meeting the city was advised by the county auditor
that the proposed EDA levy of $150,000 could not be certified as action
was required prior to July 1 deadline; and
WHEREAS, the proposed EDA levy was incorporated into the City levy amount.
NOW, THEREFORE, BE IT RESOLVED, that the New Hope Economic Development
Authority hereby rescinds Resolution No. 2013 -09.
Adopted by the Economic Development Authority of the city of New Hope, Hennepin
County, Minnesota, this 9 11, day of December, 2013.
President
Attest:
Executive Director
City of New Hope
EDA Resolution 2013 -09
Resolution establishing the EDA levy, collectible in 2014,
and authorizing certification to the county auditor
BE IT RESOLVED, by the New Hope EDA the following amount be levied for the current year,
collectible in 2014, upon the taxable property in the city of New Hope, for the following purposes:
Adopted 2013 Requested 2014
Levy: (included in base levy
Economic Development Authority of city resolution) 150,000
$ 85,000 $150,000
The City Clerk is hereby instructed to transmit a certified copy of the resolution to the County
Auditor of Hennepin County, Minnesota
Adopted by the Economic Development Authority of the city of New Hope, Hennepin County,
Minnesota, this 9th day of September, 2013,
President
Attest:
Executive Director
AGENDA ITEM MEMO
TO: KIRK MCDONALD
FROM: STEVE MCDONALD
SUBJECT: EDA LEVY
DATE: 1111312013
BACKGROUND
Upon your request, this memo summarizes the current status of the EDA levy. To summarize, the
preliminary levy contemplated a separate levy of $150,000 for EDA activity that would be distinct
from the general tax levy. The intended purpose of this action was to utilize the levy limits of both the
EDA and the Cities general levy so the City would have flexibility in the future while maintaining a
slight 1.54 percent increase. Levy limits were approved for the first time in several years during the
2013 legislative session.
Cities can levy a separate EDA levy up to .01 g5 of taxable market value in a city according to
Minnesota Statues but before this can be done, council action has to be present to establish the district
prior to July I in the year prior to levy. We were not aware of this process and the plan to levy in the
EDA was created after the July I" deadline. This was determined after the EDA board approved
Resolution 2013-9, Resolution establishing the EDA levy, collectable in 2014, and authorizing
certification to the county auditor and the City Council approved resolution 2013 —129, Resolution
establishing the preliminary 2014 Budget and Adopting the 2013 property tax levy. We did file the
information correctly with the County but the EDA board and Council will need to amend the
resolutions as requested below.
EDA Board — The EDA board needs to take action to rescind EDA resolution 2013-9.
City Council — The City Council needs to modify City Council Resolution 2013-129 to include the
EDA levy of $150,000.
Ultimately, the City had the capacity to allow for the entire preliminary EDA and City Levy and the
total amount was not affected. We will consider the need for the separate EDA levy in May of next
year and ensure any action necessary to create a separate EDA levy is in place.