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2022.09.06 EDA Meeting PacketAGENDA ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF CRYSTAL • REGULAR MEETING • TUESDAY, SEPTEMBER 6, 2022 6:00 P.M. CRYSTAL CITY HALL COUNCIL CHAMBERS 1. Call to order * 2. Roll call * 3. Approval of minutes from June 21, 2022 regular meeting 4. Consider a resolution adopting a proposed 2023 EDA budget and HRA tax levy 5. Property status update * 6. Other business * 7. 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 June 21, 2022 1. Call to Order President Banks called the meeting of the Economic Development Authority of the City of Crystal (EDA) to order at 7:54 p.m. 2. Roll Call Upon call of the roll, the following Commissioners were present: Jim Adams, Brendan Banks, David Cummings, Therese Kiser, Nancy LaRoche and Olga Parsons. Commissioner John Budziszewski arrived at 8:23 p.m. The following staff were present: Executive Director Anne Norris, Deputy Executive Director John Sutter, City Planner Dan Olson and City Attorney Troy Gilchrist. 3. Approval of Minutes Moved by Commissioner Adams (LaRoche) to approve the minutes from the May 17, 2022 regular meeting and June 7, 2022 work session. Motion carried. 4. Consider a resolution supporting tax increment financing assistance for a multi-family housing project at 7000 57th Avenue North. Marty O’Connell of MWF Properties presented information about the proposed development. Staff presented information about the proposed resolution and requested board action. Moved by Commissioner Budziszewski (Kiser) to adopt the resolution supporting tax increment financing assistance for a multi-family housing project at 7000 57th Avenue North. Motion carried 4-3 with Commissioners Banks, Budziszewski, Cummings and Kiser voting aye and Commissioners Adams, LaRoche and Parsons voting no. 5. Property Status Update Staff updated the board on several current and potential projects:  5526 West Broadway (former Pizza Ranch space) - a potential restaurant and on-sale liquor business has signed a lease but no plans have been submitted. Page 2 of 3  5537 West Broadway (Target) - adding a solar array to the roof.  3501 Douglas Dr (Crystal Suite Living) - expecting to open in August, inviting EDA on a tour some evening TBD in late July.  227 Willow Bend (former Police Dept. Community Outreach Office) - Aqua Coin Laundry is retrofitting the space.  5208 Hanson Ct (former site of Crystal Auto Parts) - a contractor is looking to build an office/warehouse for their business, but no plans have been submitted.  5358 West Broadway (former Burger King) - Hyder Investments, which owns the Crystal McDonald’s and ten others around the metro, will renovate the building for their corporate office and employee training center.  3600 Douglas Dr (former Pizza Hut) - a retail user is exploring a purchase of the property but no plans have been submitted. President Banks mentioned that he, Commissioner Adams and Hennepin County Commissioner Lunde would be doing a walking tour of the Bass Lake Road businesses followed by a visit to the Elision Playhouse mural on July 13. 7. Other Business Commissioner LaRoche asked about the condition of commercial buildings in the city and specifically the metal wall panels of the Crystal Gallery Mall. Staff will check into it and start enforcement action if the panels’ condition is in violation. Staff will also continue to promote the largely vacant south part of the mall and the vacant Big O Tires building as a potential development site. 8. Adjournment Moved by Commissioner Budziszewski (Kiser) to adjourn the meeting. Motion carried. The meeting adjourned at 8:54 p.m. Page 3 of 3 These minutes of the June 21, 2022 meeting of the Crystal Economic Development Authority were approved by the Authority on ________________ ____, 20___. ______________________________ Brendan Banks, President ATTEST: ______________________________ Nancy LaRoche, Secretary Page 1 of 1  ___________________________________________________________________________ FROM: John Sutter, Community Development Director DATE: August 29, 2022 TO: Anne Norris, Executive Director (for September 6 EDA meeting) SUBJECT: Consider a resolution adopting a proposed 2023 HRA tax levy and EDA 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 2022 levy was $310,000. Staff is recommending a 2023 levy of $316,200 which is a 2% increase. Anticipated 2023 EDA activities:  One or more redevelopment projects in the Town Center redevelopment area  Expand branding and beautification efforts  Sale of properties currently being held by the EDA (proceeds increase the fund balance)  Home improvement grants for qualifying households located outside the redevelopment project area (not eligible for TIF funds) Adoption of the attached resolution is requested. Please note that, whatever levy amount is set, it may be reduced but cannot be increased when the final budget and tax levy are set in December. EDA STAFF REPORT Proposed 2023 HRA Tax Levy and EDA Budget Revenue 2020 Actual 2021 Actual 2022 Adopted 2023 Proposed Property Taxes - Adopted Levy 282,744$ 300,000$ 310,000$ 316,200$ Prior Years' Delinquent Taxes 1,191$ 1,471$ -$ -$ Special Assessments* 20,107$ 20,003$ -$ 32,834$ Interest Income 79,686$ (10,026)$ 8,000$ 8,000$ Miscellaneous Revenue -$ 273$ -$ -$ Total Revenue 383,728$ 311,720$ 318,000$ 357,034$ Expenditures 2020 Actual 2021 Actual 2022 Adopted 2023 Proposed Personnel Services 312,634$ 330,071$ 307,754$ 271,358$ Professional, Audit & Legal Services 17,163$ 8,160$ 20,000$ 26,000$ Contractual Services* 5,136$ 77,980$ 10,000$ 5,000$ Internal Service Fund Charges -$ 4,568$ 5,186$ 5,215$ Home Improvement Grant Program 40,511$ 91,470$ 24,150$ 25,300$ Branding and Beautification 10,550$ 12,228$ 12,300$ 20,050$ Miscellaneous Operating Expenses 3,127$ 2,437$ 5,000$ 5,000$ Total Expenditures 389,119$ 526,914$ 384,390$ 357,923$ Net Revenue Over (Under) Expenditures 2020 Actual 2021 Actual 2022 Adopted 2023 Proposed (5,392)$ (215,194)$ (66,390)$ (889)$ Cash Fund Balance at Year End 2020 Actual 2021 Actual 2022 Adopted 2023 Proposed Actual* / Forecast based on budget 2,438,443$ 2,310,250$ 2,243,860$ 2,242,971$ EDA Budget Detail *Proceeds from property sales go into the fund balance but do not show up as revenue. This means the year-to-year change in the cash fund balance may not match that year's net revenue over (under) expenditures. *Special assessments are the method of repayment for EDA financing of installation of fire protection systems. 2023 special assessment revenue is comprised of $20,000 from 6105 42nd Ave N and $12,834 from 5600 56th Ave N. *2021 contractual services expenditures included $64,170 for installation of a fire protection system at 5600 56th Ave N. ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF CRYSTAL HENNEPIN COUNTY STATE OF MINNESOTA RESOLUTION NO. 2022 - 02 ADOPTING A PROPOSED 2023 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 2023 budget for housing and redevelopment in the amount of $357,923. 2. The EDA hereby adopts a proposed 2023 property tax levy of $316,200 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 6th day of September, 2022. _______________________________ Brendan Banks, President _______________________________ Anne Norris, Executive Director