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2020.12.01 EDA Meeting PacketAGENDA ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF CRYSTAL  REGULAR MEETING  TUESDAY, DECEMBER 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 November 17, 2020 meeting and work session 4. Consider a resolution adopting a 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 Regular Meeting Council Chambers November 17, 2020 1. Call to Order President LaRoche called the meeting of the Economic Development Authority of the City of Crystal (EDA) to order at 7:44 p.m. 2. Roll Call Upon call of the roll, the following members were present: Brendan Banks, John Budziszewski, Julie Deshler, Therese Kiser, Nancy LaRoche and Olga Parsons. 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 Deshler (Budziszewski) to approve the minutes of the October 6, 2020 regular meeting. Motion carried with Commissioners Banks, Budziszewski, Deshler, Kiser, LaRoche and Parsons voting aye. 4. Consider approval of an amendment to the current contract with Center for Energy and the Environment to increase the budget for Home Improvement Grants through June 30, 2021. Mr. Sutter presented the staff report. Moved by Commissioner Deshler (Budziszewski) to approve an amendment to the current contract with Center for Energy and the Environment to increase the budget for Home Improvement Grants through June 30, 2021. Motion carried with Commissioners Banks, Budziszewski, Deshler, Kiser, LaRoche and Parsons voting aye. 5. Consider approval of a contract with Center for Energy and the Environment for administration of home improvement programs from July 1, 2021 - June 30, 2022. Mr. Sutter presented the staff report. Page 2 of 3 Moved by Commissioner Deshler (Parsons) to approve a contract with Center for Energy and the Environment for administration of home improvement programs from July 1, 2021 - June 30, 2022. Motion carried with Commissioners Banks, Budziszewski, Deshler, Kiser, LaRoche and Parsons voting aye. 6. Other business. Mr. Sutter provide an update on commercial spaces at 3549 and 3600 Douglas Dr. N. 7. Adjournment Moved by Commissioner Deshler (Banks) to adjourn the meeting. Motion carried. The meeting adjourned at 7:58 p.m. Page 3 of 3 These minutes of the November 17, 2020 meeting of the Crystal Economic Development Authority were approved by the Authority on ________________ ____, 20___. ______________________________ Nancy LaRoche, President ATTEST: ______________________________ Julie Deshler, Secretary Page 1 of 2 Minutes of the Economic Development Authority of the City of Crystal Work Session Council Chambers November 17, 2020 1. Call to Order President LaRoche called the work session of the Economic Development Authority of the City of Crystal (EDA) to order at 8:00 p.m. 2. Roll Call Upon call of the roll, the following members were present: Brendan Banks, John Budziszewski, Julie Deshler, Therese Kiser, Nancy LaRoche and Olga Parsons. The following staff were present: Executive Director Anne Norris and Deputy Executive Director John Sutter. 3. Discuss potential redevelopment concept for 63xx-64xx 56th Ave. N. (Bass Lake Road) Mr. Sutter presented a preliminary development concept from Ron Clark Construction for redevelopment of the properties at 63xx-64xx 56th Avenue North (Bass Lake Road) for a 124-unit, 4-story apartment building. Mr. Sutter requested EDA members’ reactions to and discussion of the preliminary concept. After EDA questions and discussion, Mr. Sutter said staff would talk further with the potential developer about whether to take the next step of submitting a formal application for Tax Increment Financing assistance for the potential development project. 4. Update on Bass Lake Road business district marketing project Mr. Sutter provided an update on Hennepin County’s “Love Local Initiative” which covers 11 business districts in the county including the Bass Lake Road strip in Crystal. 5. Adjournment The work session adjourned at 8:34 p.m. Page 2 of 2 These minutes of the November 17, 2020 work session 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 December 1 meeting) DATE: November 24, 2020 SUBJECT: Consider a resolution adopting the 2021 HRA tax levy and budget As part of the budgeting and annual tax levy process, the EDA requests City Council approval of a Housing and Redevelopment Authority tax levy which would comprise most of its funding. The 2020 levy was $282,744 which was the same as adopted for 2019. Staff recommends a 2021 levy of $300,000 which is a 6.1% increase. Because there was no increase from 2019 to 2020, the proposed 6.1% levy increase is effectively for a two-year period. The HRA levy comprises most of the EDA’s revenue, with the remainder being interest earnings. Budget Summary: 2019 2020 2021 2022 Actual Adopted Proposed Proposed Revenue 377,011 328,399 310,000 318,000 Of which, levy is: 281,636 282,744 300,000 310,000 Expenditures 433,579* 411,303 371,798 384,850 Cash Balance at End of Year 2,140,093 2,051,534** 1,989,736** 1,922,886** * 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 2020-2022 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 cash balance)  Home improvement grants for households not eligible for use of TIF funds Adoption of the attached resolution is requested. EDA STAFF REPORT 2021 HRA Levy ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF CRYSTAL HENNEPIN COUNTY STATE OF MINNESOTA RESOLUTION NO. 2020-02 RESOLUTION ADOPTING A 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 2021 budget for housing and redevelopment in the amount of $371,798. 2. The EDA hereby adopts a 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 December, 2020. _______________________________ Nancy LaRoche, President _______________________________ Anne Norris, Executive Director