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2020.09.01 EDA Meeting PacketAGENDA ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF CRYSTAL  REGULAR MEETING  TUESDAY, SEPTEMBER 1, 2020 6:45 P.M. CRYSTAL CITY HALL COUNCIL CHAMBERS 1. Call to order * 2. Roll call * 3. Consider approval of minutes from the August 18, 2020 meeting 4. Consider a resolution adopting a proposed 2021 budget and property tax levy, and requesting City Council approval 5. Other business * 6. Adjournment * *Items for which no materials are included in the packet Page 1 of 3 Minutes of the Economic Development Authority of the City of Crystal Council Chambers August 18, 2020 1. Call to Order President LaRoche called the meeting of the Economic Development Authority of the City of Crystal (EDA) to order at 6:30 p.m. 2. Roll Call Upon call of the roll, the following members were present: Jim Adams, Brendan Banks, John Budziszewski, Julie Deshler, Therese Kiser and Nancy LaRoche. The following staff were present: Executive Director Anne Norris, Deputy Executive Director John Sutter and City Attorney Troy Gilchrist. 3. Approval of Minutes Moved by Commissioner Adams (Deshler) to approve the minutes of the July 21, 2020 regular meeting. Motion carried. 4. Public Hearing regarding sale of 4741 Welcome Avenue North. Mr. Sutter reported that no proposals were received by the August 12 deadline. Staff is requesting that the EDA open the hearing, take comment and continue the hearing to October 6, and also direct staff to reissue the Request for Proposals with a new deadline of September 30. President LaRoche opened the public hearing. There being no one from the public desiring to speak, President LaRoche asked for EDA discussion and a motion. Moved by Commissioner Adams and seconded by Commissioner Banks continuing the public hearing to October 6, 2020 and directing staff to reissue the Request for Proposals for the sale of 4741 Welcome Ave. N. for construction of a new residential building with a proposal deadline of September 30, 2020 and providing one additional year for completion of the building. Motion carried. 5. Other business. Mr. Sutter provided updates on the Hampton Companies assisted living project at 3501 Douglas Dr. N. and the vacant Pizza Hut building at 3600 Douglas Dr. N. Page 2 of 3 6. Adjournment Moved by Commissioner Deshler (Kiser) to adjourn the meeting. Motion carried. The meeting adjourned at 6:43 p.m. Page 3 of 3 These minutes of the August 18, 2020 meeting of the Crystal Economic Development Authority were approved by the Authority on ________________ ____, 20___. ______________________________ Nancy LaRoche, President ATTEST: ______________________________ Julie Deshler, Secretary ___________________________________________________________________________ FROM: John Sutter, Community Development Director ___________________________________________________________________________ TO: Anne Norris, Executive Director (for September 1 meeting) DATE: August 27, 2020 SUBJECT: Consider a resolution adopting a proposed 2021 HRA tax levy and budget As part of the annual budgeting process, the EDA formally requests a Housing and Redevelopment Authority tax levy which would comprise most of its funding. The 2020 levy was $282,744. Staff is recommending a 2021 levy of $300,000 which is a 6.1% increase. It is important to note that there was no increase from 2019 to 2020, so the proposed levy increase from 2020 to 2021 is effectively for a two-year period. The HRA levy comprises most of the EDA’s revenue, with the remainder being interest earned on the fund balance. Budget Summary: 2019 2020 2021 2022 Actual Adopted Proposed Proposed Revenue 377,010 328,399 310,000 318,000 Expenditures 437,509* 411,303 371,798 384,850 Cash Balance at End of Year 2,140,093 2,057,189** 1,995,391** 1,928,541** * 2019 expenditures do not the $1,150,000 transfer to Park Improvement Fund for Becker Park or $295,000 in prior period adjustments. ** Year end cash balances for 2020, 2021 and 2022 are estimated. Anticipated 2021 EDA activities:  One or more redevelopment projects in the Town Center redevelopment area  Continue and expand beautification efforts  Sale of properties currently being held by the EDA (proceeds increase the fund balance)  Home improvement grants for households not eligible for use of TIF funds Adoption of the attached resolution is requested. Please note that, whatever levy amount is set, it may be reduced but cannot be increased when the final budget and tax levy are set in December. EDA STAFF REPORT Preliminary 2021 HRA Levy ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF CRYSTAL HENNEPIN COUNTY STATE OF MINNESOTA RESOLUTION NO. 2020 - 01 RESOLUTION ADOPTING A PROPOSED 2021 BUDGET AND PROPERTY TAX LEVY AND REQUESTING THEIR APPROVAL BY THE CITY COUNCIL WHEREAS, the Economic Development Authority of the City of Crystal (the “EDA”) undertakes redevelopment and housing activities in the City of Crystal, Minnesota (the “City”); and WHEREAS, pursuant to authority granted by Minnesota Statutes, Section 469.02 and the enabling resolution of the EDA, the EDA exercises all of the powers of a housing and redevelopment authority (“HRA”) as described in Minnesota Statues, Section 469.001 to 469.047 (the “Act”); and WHEREAS, under Section 469.033 Subdivision 6 of the Act, an HRA is authorized to levy and collect special benefit taxes on all taxable property under the jurisdiction of the HRA, that is, property in the City; and WHEREAS, the permitted levy is 0.0185 percent of the estimated market value of the property in the City. NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority of the City of Crystal as follows: 1. The EDA hereby adopts a proposed 2021 budget for housing and redevelopment in the amount of $371,798. 2. The EDA hereby adopts a proposed 2021 property tax levy of $300,000 for the purpose of funding the adopted budget in conformance with Section 469.033, Subdivision 6 of Minnesota Statutes. 3. The Executive Director is authorized and directed to transmit a certified copy of this Resolution to the City Council of the City of Crystal for its consent and approval as provided by Section 469.033 of the Act and for certification to the Property Tax Manager of Hennepin County. Adopted this 1st day of September, 2020. _______________________________ Nancy LaRoche, President _______________________________ Anne Norris, Executive Director