2021.03.02 EDA Meeting PacketAGENDA
ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF CRYSTAL
REGULAR MEETING
TUESDAY, MARCH 2, 2021
6:45 P.M.
CRYSTAL CITY HALL
COUNCIL CHAMBERS
1. Call to order *
2. Roll call *
3. Approval of minutes from February 16, 2021 Regular Meeting
4. Consider a resolution approving a Tax Increment Financing Plan Modification for
District #4
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
February 16, 2021
1. Call to Order
President Parsons called the meeting of the Economic Development Authority of the City
of Crystal (EDA) to order at 7:50 p.m.
2. Roll Call
Upon call of the roll, the following members were present: Jim Adams, John
Budziszewski, David Cummings, 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 Adams (LaRoche) to approve the minutes from the January 5,
2021 annual organizational meeting. Motion carried with Commissioners Adams,
Budziszewski, Cummings, Kiser, LaRoche and Parsons voting aye.
4. Presentation of 2020 Annual Report
Mr. Sutter presented the 2020 Annual Report and answered questions from the board.
No EDA action was required.
5. Consider Approval of 2021 Work Program
Mr. Sutter presented the 2021 Work Program and answered questions from the board.
Moved by Commissioner LaRoche (Adams) to approve the 2021 Work Program. Motion
carried with Commissioners Adams, Budziszewski, Cummings, Kiser, LaRoche and
Parsons voting aye.
6. Development Update
Mr. Sutter gave an update on potential development projects and new businesses
anticipated in Crystal.
Page 2 of 3
7. Other Business
There was no other business.
8. Adjournment
Moved by Commissioner Adams (Budziszewski) to adjourn the meeting. Motion carried
with Commissioners Adams, Budziszewski, Cummings, Kiser, LaRoche and Parsons
voting aye.
The meeting adjourned at 8:25 p.m.
Page 3 of 3
These minutes of the February 16, 2021 meeting of the Crystal Economic Development
Authority were approved by the Authority on ________________ ____, 20___.
______________________________
Olga Parsons, President
ATTEST:
______________________________
Therese Kiser, Secretary
__________________________________________________________________________
FROM: John Sutter, Community Development Director
DATE: February 25, 2021
TO: Anne Norris, Executive Director (for March 2 EDA meeting)
SUBJECT: Consider a resolution approving a TIF plan modification
The EDA pays for its two home improvement programs, the Home Improvement Grant and
Community Fix-Up Fund Interest Write-Down, with a combination of funds from Tax Increment
Financing (TIF) District #4 (#2155) and the EDA tax levy. For example, in 2020, program
expenditures were $237,186 (85%) from TIF and $42,208 (15%) from EDA.
TIF funds are used for projects located in the redevelopment project area when the
household income is ≤100% of area median income (AMI) for 1-2 person households and
≤110% of AMI for 3+ person households.
EDA funds are used for projects that are not eligible for TIF funds but are still eligible for the
programs because their household income is ≤110% AMI regardless of household size. For
example:
‐ A 1-2 person household with an income between 100-110% AMI would need funding
from the EDA funds even if they are located within the redevelopment project area.
‐ Any project located outside the redevelopment project area would need funding from
the EDA funds, subject to the overall maximum household income of 110% AMI.
The TIF district will expire at the end of 2025, which means no additional increment will be
collected in subsequent tax years. Please see the attached charts which provide a forecast of
the revenues, expenditures and fund balance for the TIF district until its anticipated final
expenditures in early 2029. At some point during the years 2026-2028, the EDA will need to
decide whether to continue the home improvement programs after 2028, and if so, determine a
funding source to be used after the available tax increment is expended.
Modification of the TIF plan for district #4 (#2155) is necessary to revise the budget to reflect
anticipated expenditures for these home improvement programs and tax increment to be
received during the remaining life of the district. The TIF plan modification is attached.
Staff requests EDA adoption of the attached resolution approving the TIF Plan modification.
Next steps:
3/8 - Planning Commission considers a resolution finding the TIF plan modification to be
consistent with the plans for the development of the city (our Comprehensive Plan)
3/16 - City Council holds a public hearing and considers a resolution approving the TIF plan
modification
EDA STAFF REPORT
TIF Plan Modification
City of Crystal TIF 3
(Decertified 12/2016)
TIF 1
(Expired 12/2009)
(Closed 12/2012)
Redevelopment
Project Area
Project Area Boundary
Key:
EXISTING
ADDED 12/1/2008
NOT IN PROJECT AREA
TIF 1
TIF 2
TIF 3
TIF 4
TIF 2
(Decertified 12/2016)
TIF 4
(Expires 12/2025)
N
0 0.25 0.5 Miles
1
704999v1 MNI CR150-4
ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF CRYSTAL
RESOLUTION NO. _____________
RESOLUTION APPROVING A MODIFICATION TO THE
REDEVELOPMENT PLAN FOR REDEVELOPMENT PROJECT
NO. 1 AND TO THE TAX INCREMENT FINANCING PLAN FOR
TAX INCREMENT FINANCING DISTRICT NO. 4
BE IT RESOLVED by the Board of Commissioners (the “Board”) of the Economic Development
Authority of the City of Crystal (the “Authority”), as follows:
Section 1. Recitals
1.01. The City of Crystal, Minnesota (the “City”) and the Authority have heretofore established
Redevelopment Project No. 1 (the “Redevelopment Project”) and adopted a redevelopment plan therefor (the
“Redevelopment Plan”) and have adopted a tax increment financing plan (the “TIF Plan”) for Tax Increment
Financing District No. 4 (the “TIF District”), located within the Redevelopment Project, all pursuant to and
in conformity with applicable law, including Minnesota Statutes, Sections 469.001 to 469.047,
Sections 469.090 to 469.1082, and Sections 469.174 through 469.1794, as amended (collectively, the
“Act”).
1.02. The City and Authority have adopted previous modifications to the Redevelopment Plan and
TIF Plan to clarify expenditures and to authorize additional expenditures needed to meet the continuing needs
of the Redevelopment Project.
1.03. The City and Authority have now determined a need for additional modification in order to
increase the budget of the TIF District (the “Modification”), as described in the “Modification to
Redevelopment Plan, Redevelopment Project No. 1 and Modification to Tax Increment Financing Plan for
Tax Increment Financing District No. 4” (the “Modified Plan”) presented to the Authority on this date.
1.04. Pursuant to Section 469.175, subdivision 4, because the Modification will increase the costs
to be paid or financed with tax increment, the City Council may approve such modification only upon the
notice and following the discussion, public hearing, and findings required for the approval of the original TIF
Plan.
1.05. Pursuant to Section 469.175, subdivision 2 of the Act, the Modified Plan and the estimates
of the fiscal and economic implications thereof were presented to the School Board of Independent School
District No. 281 (the “School District”) and the Board of Commissioners of Hennepin County (the “County”)
on February 12, 2021, and both the School District and the County agreed to waive all notice requirements
under the Act.
1.06. In accordance with the Act, the Modified Plan has been referred to the Planning
Commission of the City for consideration on March 8, 2021, and it is expected that the Planning Commission
will determine by resolution that the Modified Plan conforms to the general plan for the development of the
City as a whole.
1.07. On March 16, 2021, the City Council of the City shall conduct a duly noticed public hearing
relating to the proposed Modified Plan.
2
704999v1 MNI CR150-4
Section 2. Modified TIF Plan Approved
2.01. The Board finds that the Modified Plan is in the best interests of the City and is hereby
approved, contingent upon the findings of the Planning Commission and adoption by the City Council
following its public hearing, and hereby refers the Modified Plan to said bodies for review.
2.02. The geographic boundaries of the Redevelopment Project and the TIF District are not
changed by this action.
2.03. Provided that the City Council adopts the Modified Plan, the Board authorizes and directs
Authority staff to file a copy of the Modified Plan with the Hennepin County Taxpayer Services Division,
the Office of the State Auditor, and the Minnesota Commissioner of Revenue as required by the Act;
provided that nothing herein shall be deemed to constitute a request for certification of any parcel or TIF
District.
Approved by the Board of Commissioners of the Economic Development Authority of the City of
Crystal this 2nd day of March, 2021.
President
ATTEST:
Executive Director
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Crystal Economic Development Authority
Tax Increment District No. 4 A-1
Appendix A: Map of Redevelopment Project No. 1 and the TIF District
Appendix B: Estimated Budget for the District
TIF Plan Budget Summary
Original Modification No 1 Modification No 2 Modification No 3
February 16, 1999 March 21, 2000 December 1, 2008 March 16, 2021
SOURCES
Tax Increment $ 5,416,506 $ 5,416,506 $ 5,416,506 $ 5,725,000
Interest - - 500,000 572,500
Sale of Property - - 300,000 300,000
Developer Reimbursement - - 25,000 -
Loan Repayments - - - 550,000
TOTAL $ 5,416,506 $ 5,416,506 $ 6,241,506 $ 7,147,500
USES
Land/Building Acquisition $ 1,125,000 $ 1,230,000 $ 1,200,000 $ 150,000
Site Improvements/Preparation 515,000 525,000 1,417,000 1,725,000
Utilities - 150,000 675,000 -
Other Qualifying Improvements 1,352,000 900,000 375,000 3,777,500
Administrative Costs (up to 10%) 631,351 535,000 541,651 645,000
PROJECT COSTS TOTAL $ 3,623,351 $ 3,340,000 $ 4,208,651 $ 6,297,500
Interest 1,793,155 2,076,506 2,032,855 850,000
PROJECT AND INTEREST COSTS TOTAL $ 5,416,506 $ 5,416,506 $ 6,241,506 $ 7,147,500