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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.