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07-08-08 HRA Agenda AGENDA GOLDEN VALLEY HOUSING AND REDEVELOPMENT AUTHORITY REGULAR MEETING Golden Valley City Hall 7800 Golden Valley Road Council Chamber July 8, 2008 - 6:30 PM Paqes 1 . Roll Call 2. Approval of Minutes - Regular HRA Meeting - April 8, 2008 7-8 3. Approval of Bills: City of Golden Valley Check Number 4022 TOTAL Bill Summary: General Fund - 2008 29 200,221.67 $200.221.67 172,398.49 Valley Square - Capital Project Fund - Area B Tax Increment Fund -0- -0- Golden Hills - Capital Project Fund - Central Area Tax Increment Fund 27,823.18 -0- North Wirth - Capital Project Fund - District #3 -0- GVEC Check Number 4026 -0- $200.221.67 5,000.63 30 Housing Program Fund TOTAL 4. Receive and File June Financial Reports 31-34 5. Douglas Drive Redevelopment Area/Applewood Pointe 35-36 6. Other Business 7. Adjournment REGULAR MEETING OF THE HOUSING AND REDEVELOPMENT AUTHORITY April 8, 2008 Pursuant to due call and notice thereof, a regular meeting of the Housing and Redevelopment Authority of the City of Golden Valley, Hennepin County, Minnesota, was held at 7800 Golden Valley Road in said City on April 8, 2008, at 6:30 pm, in the City Council Chambers. The following members were present: Chair Paula Pentel and Commissioners Mike Freiberg, Linda Loomis, DeDe Scanlon and Robert Shaffer. Also present were HRA Director Thomas Burt, Assistant HRA Director Jeanne Andre, Finance Director Sue Virnig and Administrative Assistant Christine Columbus. Approval of the Minutes MOVED by Loomis, seconded by Freiberg, and motion carried to approve the minutes of the January 15, 2008 regular HRA meeting and February 12, 2008 special meeting. Approval of Bills MOVED by Loomis, seconded by Shaffer and motion carried unanimously to approve the bills as submitted, reimbursing City expenditures for the HRA. Receive and File April Financial Reports MOVED by Loomis, seconded by Scanlon and motion carried to receive and file the April Financial Reports. Upcomina HRA Activities Discussion of Memorandum submitted by Jeanne Andre, Assistant Director in regards to upcoming HRA activities, resulted in the decision to include HRA members and staff on the Saturday, April 26, Tour of the City from 8:30 to 11 :30 am. The following special meetings may be called depending on the project status: Tuesday, May 13, 6:30 pm - Special HRA meeting to consider the Opus Xenia Ridge mixed-use project Tuesday, June 10, 6:30 pm - special HRA meeting to consider the United Properties Applewood point senior housing Regular Meeting of the Housing and Redevelopment Authority April 8, 2008 Page 2 Adiournment The meeting was adjourned at 6:35 pm. Paula Pentel, Chair ATTEST: Christine Columbus, Administrative Assistant alley Memorandum Housing & Redevelopment Authority 763-593-8002/763-593-8109 (fax) 7800 Golden Valley Rd. Golden Valley, MN 55427 763-593-8014 Date: July 8, 2008 To: Housing and Redevelopment Authority Commissioners From: Sue Virnig, Finance Director Through: Thomas D. Burt, Director Subject: Reimbursement of City Expenditures for the HRA As of June 30, 2008 the following expenditure amounts were owing to the City by the HRA: Check # 92303 92901 91852 91852 92040 92302 92304 92302 92900 92900 93054 93053 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 City Expenditures: LHB (blight study-United Properties Deposit) * LHB (blight study-United Properties Deposit) * Best & Flanagan (February legal) Best & Flanagan (February legal-Opus) * Webb Golden Valley (deposit return) * Best & Flanagan (March legal) Springsted (Opus Financial run) * Best & Flanagan (March legal-Opus) * Best & Flanagan (April legal) Best & Flanagan (April Legal-Opus) * Wilson Development (United Properties Project) * Best & Flanagan (May Legal-Opus) * City Overhead City Audit Fee Amount 1,657.11 6,911.28 552.35 1,470.00 20,000.00 616.25 1,913.28 141.90 507.50 770.00 154.00 3,528.00 150,000.00 12,000.00 $200,221.67 HRA Expenditures: 9000 General Fund 9280 Golden Hills Capital Projects 172,398.49 27,823.18 $200,221.67 This reimbursement should be approved by the HRA as part of the normal bill paying process. Those noted with an asterisk are coming from deposit accounts paid by the Developer. Hey Memorandum Housing & Redevelopment Authority 763-593-8002/763-593-8109 (fax) 7800 Golden Valley Rd. Golden Valley, MN 55427 763-593-8014 Date: July 8, 2008 To: Housing and Redevelopment Authority Commissioners From: Sue Virnig, Finance Director Through: Thomas D. Burt, Director Subject: Reimbursement of City Expenditures for the HRA The following expenditure amounts will be paid on August 1, 2008: City Expenditures: 9250 GVEC (Pay-as You Go Note) First half tax settlement) Amount 5,008.63 HRA Check # 4022 This reimbursement should be approved by the HRA as part of the normal bill paying process and will be sent out August 1. This is the first payment to GVEC for their project in North Wirth. This note was approved when the development agreement was approved. HRA of Golden Valley General Fund June 2008 Budget Report Percentage Of Year Completed 50% 2008 Apr-June YTO Revenue Budget Actual Actual Transfer from TIF Funds: Valley Square (3) $10,000 10,000.00 10,000.00 Golden Hills (3) 150,000 150,000.00 150,000.00 Interest Earnings (2) 0 289.17 417.55 Fund Balance 9,000 0.00 0.00 Totals $169,000 160,289.17 160,417.55 Over (Under) Budget %Of Budget Received 0.00 0.00 100.00% 100.00% 417.55 (9,000.00) (8,582.45) 0.00% 94.92% Over %Of 2007 Apr-June YTO (Under) Budget Expenditures Budget Actual Actual Budget Expended Legal Services (1) $6,000 1,676.10 2,301.20 (3,698.80) 38.35% Audit 12,000 12,000.00 12,000.00 0.00 100.00% City Overhead (3) 150,000 150,000.00 150,000.00 0.00 100.00% Miscellaneous 1,000 0.00 0.00 (1,000.00) 0.00% Totals $169,000 163,676.10 164,301.20 (4,698.80) 97.22% Notes: (1) Includes January to date billings from Best & Flanagan. (2) Interest is through 05/08. (3) Transfers will be made in July 2009. City of Golden Vallev - HRA - Tax Increment District Proiections Vallev Square Tax Increment Fund: 2008 2009 2010 2011 Projected Cash Balance @ 1/1 $1,352,806 $1,193,231 $1,041,275 $904,842 Plus: Non-Area B Increment - Applied To 1994 Bonds Area B Increment 693,809 674,854 656,417 Interest Earnings @2% of Beg. Ba!. 27,056 23,865 20,825 Less: Transfer to HRA General Fund (10,000) (10,000) (10,000) Debt Service: 2003 Tax Increment Bonds (3.47%) (602,875) (583,000) (561,800) (540,600) 2003 Taxable Tax Increment Bonds (4.49%) (267,565) (257,675) (241,875) (230,625) Projected Cash Bat @ 12/31 $1,193,231 $1,041,275 $904,842 $133,617 Bond Principal & Interest Outstanding @ 12/31 $2,415,575 $1,574,900 $771,225 $0 This report will be updated when tax increment is received on 7-7-08. City of Golden Valley. HRA . Tax Increment District Proiections Golden Hills Tax Increment Fund: (Includes Tax Increment Fund and Debt Service) 2008 2009 2010 2011 2012 2013 2014 2015 Projected Cash Bal. @1/1 $3,442,070 $3,864,804 $4,372,931 $4,962,296 $5,624,202 $7,451,988 $8,303,188 $7,235,285 Plus: Estimated Tax Increment 3,500,000 3,535,000 3,570,350 3,606,054 3,642,114 3,678,535 3,715,321 Interest Earnings (2% of Beg. Bal.) 68,841 77,296 87,459 99,246 112,484 149,040 166,064 Less: Transfer to HRA General Fund (150,000) (150,000) (150,000) (150,000) (150,000) (150,000) (150,000) Debt Service: 1999 C Tax Incr. Bonds (5.09%) (Callable 02/01/08) (871,495) (869,120) (869,470) (866,970) 2004 A Tax Incr. Refunding Bonds (2.27%) (225,387) (226,287) (226,562) (231 ,187) 2005 B Taxable Tax Incr. Refunding Bonds (4.69%) (423,704) (420,641) (411,841) (412,766) (407,991 ) (402,710) (1,759,910) (1,686,475) 2005 A Tax Increment Refunding Bonds (3.50%) (104,521) (107,871) (116,071) (123,971 ) (126,571) (128,915) (546,877) (533,282) 2006 A Taxable Tax Incr. Refunding Bonds (5.12%) (1,371,000) (1,330,250) (1,294,500) (1,258,500) (1,242,250) (2,294,750) (2,492,500) (2,950,500) Projected Cash Bal. @ 12/31 $3,864,804 $4,372,931 $4,962,296 $5,624,202 $7,451,988 $8,303,188 $7,235,285 $2,065,028 Bond Principal & Interest Outstanding @12/31 $22,995,060 $20,062,785 $17,165,545 $14,293,355 $12,535,035 $9,755,255 $5,065,439 $0 This report will be updated when tax increment is received on 7-07-08. HRA Of Golden Valley 2008 Financial Report 9280 Golden Hills Capital Proiect Funds 9220 Valley Square 9250 North Wirth #3 Cash Balance @ 04/01/108 Add: Receipts: Interest Reimbursement of Appraisal-Webb Less: Expenditures: City of Golden Valley (1) Cash Balance @ 06/30/08 $279,930.08 2,800.59 $282,730.67 (1) Breakdown on City Expenditures Memo $749,667.39 6,598.03 $756,265.42 $17,196.08 151.35 $17,347.43 , , , Memorandum Housing & Redevelopment Authority 763-593-8002 I 763-593-8109 (fax) Hey 7800 Golden Valley Rd. Golden Valley, MN 55427 763-593-8014 Date: To: July 8, 2008 Housing and Redevelopment Authority Commissioners Jeanne Andre, Assistant Director From: Through: Thomas D. Burt, Director Subject: Douglas Drive Redevelopment Area I Applewood Pointe United Properties has previously approached the City about a proposed development at the northeast corner of Douglas Drive and Golden Valley Road. The proposed project would have two buildings: senior cooperative housing and senior rental apartments for independent and assisted living. United has either purchased or secured purchase options on six parcels that lie north of Golden Valley Road, east of Douglas Drive, south of Bassett Creek and west of the railroad. In March United applied for Tax Increment Financing assistance and in May it applied for Preliminary PUD (Planned Unit Development) approval. The initial step for consideration of TIF was to undertake a Blight Analysis. This was completed by LHB and a report dated May 12, 2008, was submitted that confirms that the property collectively meets the standard of blight required to qualify as a TIF redevelopment district. Staff conducted a preliminary analysis for a 25-year tax increment district. However during the planning review site plan issues have arisen regarding the surface water plan and the dedication of right-of-way for Douglas Drive. Hennepin County is interested in providing for a left turn lane on southbound Douglas Drive and providing for a future multi-use trail on the east side of Douglas Drive. County staff suggested a 27- foot dedication, which will impact the site plan and could reduce the number of units proposed. Therefore staff has delayed detailed analysis of TIF until the site plan issues are resolved. In the mean time staff has been wor~ing ~n a redevelopment plan for the project. The TIF district will. be comprised of solely the parcels required for the development. However the redevelopment are~ can be larger than the TIF district. Minnesota Statutes allow up to ten percent of district proceeds to_ be spent in the redevelopment area outside the district. The Douglas Drive Corridor Study is just getting started, and staff hopes that the study will provide further insight into redevelopment opportunities along the corridor and recommend properties to be included in the redevelopment area. However it is likely the Applewood project will go forward before the study is completed. Staff is recommending that the initial redevelopment area include all of the parcels on the east side of Douglas Drive from Golden Valley Road to Duluth Street. The rationale behind this recommendation is that public improvements such as roadway (including acquisition of right-of-way) and trail improvements and burying power lines could at least partially funded from this source. Some County grant programs staff has previously investigated require the property to be in a redevelopment area. The attached map outlines the parcels that could be included in the redevelopment area. Requested Action: Discussion by the HRA on the proposed TIF District and Redevelopment Area. "'\t Area ~ o seOJ3 ~ o imm o m'ltll0 Ix 1S3O '~ri.516 ;liT$ii) z .._ i450 . l430 Proposed Douglas Drive Redevelopment Area D , Applewood Pointe TIF District,.