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1-11-11 HRA Agenda PacketAGENDA GOLDEN VALLEY HOUSING AND REDEVELOPMENT AUTHORITY REGULAR MEETING January 11, 2011 - 6:30 PM Golden Valley City Hall 1. Roll Call 2. Election of Officers 3. Approval of Minutes -October 12, 2010 HRA Meeting and November 9, 2010 Special HRA Meeting 4. Reimbursement of City Expenditures City of Golden Valley TOTAL $2,876,988.30 Bill Summary: General Fund-2010 1,013.10 Golden Hills - Capital Project Fund -Central Area 562.70 Tax Increment Fund 2,875,000.00 North Wirth - Capital Project Fund -District #3 412.50 TOTAL 2.876,988.30 5. Receipt of December Financial Reports 6. Set 2011 HRA Regular Meetings 7. Adoption of 2011 General Fund Budget: Resolution 11-01 8. Designation of Depositories: Resolution 11-02 9. Review of Tax Increment Financing Policy 10. I-394 Corridor Redevelopment Area Plan 11. Other Business 12. Adjournment .. _ . This document is available in alternate formats upon a 72-hour request. please call 7b3-593-8006 (TTV: 763-593-3968) to make a request. Examples of alternate formats nr,,; includ : lar,~~~ print, electronic, Braille, audiocassette, etc. ~' `Golden Valley Memorandum Housing & Redevelopment Authority 763-593-8002 / 763-593-8109 (fax) Executive Summary For Action Golden Valley HRA Meeting January 11, 2011 Agenda Item 2. Election of Officers Prepared By Thomas D. Burt, HRA Director Summary The HRA by-laws provide for the election of two officers to the HRA -Chairperson and Vice Chairperson. The by-laws state these positions are to be elected for aone-year term. The officers in 2010 were: Chairperson, Paula Pentel; Vice Chairperson, Mike Freiberg Recommended Action Motion to approve a Chairperson and Vice Chairperson for 2011. HOUSING AND REDEVELOPMENT AUTHORITY October 12, 2010 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 October 12, 2010 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, HRA Attorney Allen Barnard, Assistant HRA Director Jeanne Andre, Finance Director Sue Virnig and Administrative Assistant Christine Columbus. Approval of Agenda MOVED by Shaffer, seconded by Loomis and motion carried unanimously to approve the agenda of October 12, 2010. Approval of Minutes -July 13, 2010 MOVED by Loomis, seconded by Freiberg and motion carried unanimously to approve the Housing and Redevelopment Authority minutes of July 13, 2010. Reimbursement of City Expenditures MOVED by Loomis, seconded: by Freiberg and motion carried unanimously to authorize the reimbursing the City of Golden Va ley $1,017.50 for expenditures incurred. Receipt of September 2010 Financial Reports MOVED by Shaffer, seconded by Loomis and motion carried unanimously to receive and file the September 2010 HRA Financial Reports. Agreement for Legal Service with Best & Flanagan MOVED by Freiberg, seconded by Loomis and motion carried unanimously to authorize the HRA Director tv enter into a new five-year agreement with Best & Flanagan for the provision of legal service to the HRA. Commissioner Loomis noted that the agreement can be cancelled in less than five years with notice. I-394 Corridor Redevelopment Area Plan MOVED by Freiberg, seconded by Scanlon and motion carried unanimously to continue the consideration of I-394 Corridor Redevelopment Area Plan to the January 11, 2010 meeting. Housing and Redevelopment Authority October 12, 2010 Page 2 of 2 GVEC Properties LLC Default Director Burt reported GVEC, LLC has remained in default of the TIF agreement through non-payment of taxes. Burt recommends the HRA continue to suspend TIF payments to the developer and wait and see if the developer can secure financing to pay the delinquent in taxes. MOVED by Loomis, seconded by Shaffer and motion carried unanimously to authorize staff to continue to work with the GVEC, LLC while the developer tries to secure financing and pay the delinquent taxes. The meeting was adjourned at 6:37pm. Paula Pentel, Chair ATTEST: Christine Columbus, Administrative Assistant Jeanne Andre, Assistant Director SPECIAL HOUSING AND REDEVELOPMENT AUTHORITY November 9, 2010 Pursuant to due call and notice thereof, a special 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 November 9, 2010 at 8:26 pm, in the Council Conference Room. 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, Public Works Director Jeannine Clancy, Assistant City Manager Chantell Krauss and City Planner Joe Hogeboom. Review of Three•Nine•Four Development Proposals Director Burt presented two new plans for the development of the Minnesota Department of Transportation parcel at I-394 and Highway 100 that incorporate the adjacent residential apartment. parcel. He noted that staff would like feedback on whether the Commissioners would like to work with the developer on either of these plans or instead work with MnDOT to temporarily use the parcel for construction staging for the proposed pavement management and sanitary sewer projects. The Commissioners discussed what they liked and disliked about the project and suggested that they preferred Option 27, with a pond. They suggested modifications they would like to see, including reducing the height of the apartments on the north side (adjacent to the single family residences), providing no fire access at the east end, improved access around the buildings, and detailed evaluation of the parking needs. They would consider increasing the apartment unit density of the southerly building and would like the Engineering Department to evaluate the best orientation for the drive off of Circle Down. The meeting was adjourned at 8:47 pm Paula Pentel, Chair ATTEST: Jeanne Andre, Assistant Director ~~'' Memorandum O ~Y1 ~ (~ Finance 11 v 763-593-8013 / 763-593-8109 (fax) Executive Summary For Action Golden Valley HRA Meeting January 11, 2011 Agenda Item 4. Reimbursement of City Expenditures Prepared By Sue Virnig, Finance Director Summary As of December 31, 2010 the following expenditures were paid by the City on various check registers and need to be reimbursed by the HRA: City Expenditures: 1000 Best & Flanagan (Sept-Legal) 1000 Best & Flanagan (October Legal) 1000 Best & Flanagan (November Legal) 1000 City of Golden Valley (Golden Hills Debt Payment) HRA Expenditures: 9000 General Fund 9160 Golden Hills Tax Increment Fund 9250 North Wirth #3* 9280 Golden Hills Capital Projects* Asterisk items are reimbursed by deposits held for developers. Recommended Action Amount Ck # 375.60 103949 562.50 104455 1,050.20 104470 2,875,000.00 $2,876,988.30 1,013.10 2,875,000.00 412.50 562.70 $2,876,988.30 Motion to approve reimbursing the City of Golden Valley $2,876,988.30 for expenditures incurred. 'Golden galley Memorandum Finance 763-593-8010 / 763-593-8109 (fax) Executive Summary for Action Housing and Redevelopment Authority Meeting January 11, 2011 Agenda Item 5. Receipt of December 2010 Financial Reports Prepared By Sue Virnig, Finance Director Summary Attached are the December 2010 Financial Reports for Council review. Staff will address questions from the Council before or at the meeting. Attachments HRA General Fund December 2010 Budget Report (1 page) HRA Tax Increment District Projections for Golden Hills Tax Increment Funds (1 page) HRA 2010 Capital Project Funds Report (1 page) Recommended Action Receive and file the December 2010 HRA Financial Reports HRA of Golden Valley General Fund December 2010 Budget Report Percentage Of Year Completed 75% Over % Of 2010 Oct-Dec YTD (Under) Budget Revenue Budget Actual Actual Budget Received Transfer from TIF Funds: Golden Hills 159,000 0.00 159,000.00 0.00 100.00% Interest Earnings Fund Balance 0 73.20 73.20 73.20 0 0.00 0.00 0.00 #DIV/0! Totals $159,000 73.20 159,073.20 73.20 100.05% Over % Of 2010 Oct-Dec YTD (Under) Budget Expenditures Budget Actual Actual Budget Expended Legal Services (1) $6,000 1,013.10 4,001.20 (1,998.80) 66.69% Audit 12,000 0.00 12,000.00 0.00 100.00% City Overhead (2) 140,000 0.00 140,000.00 0.00 100.00% Miscellaneous 1,000 0.00 0.00 (1,000.00) 0.00% Totals $159,000 1,013.10 156,001.20_ (2,998.80) 98.11% Notes: (1) Includes November to date billings from Best & Flanagan. (2) Transfers were made in July 2010. City of Golden Valley -HRA -Tax Increment District Protections Golden Hills Tax Increment Fund: (Includes Tax Increment Fund and Debt Service) Projected Cash Bal. @1/1 Plus: Estimated Tax Increment Interest Earnings (.05% of Beg. Bal.) Less: Transfer to HRA General Fund Debt Service: 1999 C Tax Incr. Bonds (5.09%) 2004 A Tax Incr. Refunding Bonds (2.27%) 2005 B Taxable Tax Incr. Refunding Bonds (4.69%) 2005 A Tax Increment Refunding Bonds (3.50%) 2006 A Taxable Tax Incr. Refunding Bonds (5.12%) 2011 2012 2013 2014 2015 $7,021,958 $7,906,230 $9,910,621 $10,873,466 $9,867,251 3,908,578 3,908,578 3,908,578 3,908,578 28,088 31,625 39,642 43,494 (159,000) (159,000) (159,000) (159,000) (866,970) (231,187) (412,766) (407,991) (402,710) (1,759,910) (1,686,475) (123,971) (126,571) (128,915) (546,877) (533,282) (1,258,500) (1,242,250) (2,294,750) (2,492,500) (2,950,500) Projected Cash Bal. @ 12131 $7,906,230 $9,910,621 $10,873,466 $9,867,251 $4,696,994 Bond Principal 8~ Interest Outstanding @ 12131 $14,572,731 $12,795,919 $9,969,544 $5,170,257 $0 HRA Of Golden Valley Capital Pro'ect Funds 2010 Financial Report 9280 9250 Golden North Hills Wirth #3 Cash Balance @ 10/01/10 $285,110.22 $19,527.62 Add: Receipts: Interest 1,011.43 134.89 Deposit from Developer Increment on Deposit 12,532.12 Less: Expenditures: City of Golden Valley (1) Transfer to TIF Cash Balance @ 12/31 /10 $286,121.65 $32,194.63 (1) Breakdown on City Expenditures Memo Cicv of o en galley Memorandum Housing & Redevelopment Authority 763-593-8002 / 763-593-8109 (fax) Executive Summary For Action Golden Valley HRA Meeting January 11, 2011 Agenda Item 6. Set 2011 HRA Regular Meetings Prepared By Thomas D. Burt, HRA Director Summary Under its by-laws, the HRA has regular meetings quarterly on the second Tuesday in January, April, July and October. The 2011 HRA regular quarterly meeting dates would therefore be January 11, April 12, July 12 and October 11. Recommended Action Set regular meeting dates for regular meetings for HRA on January 11, April 12, July 12 and October 11 at 6:30 pm. City ~~ o ~n galley Memorandum Finance 763-593-8013 / 763-593-8109 (fax) Executive Summary For Action Golden Valley HRA Meeting January 11, 2011 Agenda Item 7. 2011 Housing and Redevelopment Authority (HRA) General Fund Budget Prepared By Sue Virnig, Finance Director Summary Attached is the 2011 Housing and Redevelopment Authority General Fund Budget. In 2009, we had Valley Square paying part of the overhead. Attachments Resolution 11-01 Adopting 2011 General Fund Budget (2 pages) Recommended Action Motion to adopt Resolution 11-01 Adopting 2011 HRA General Fund Budget. Resolution 11-01 January 11, 2011 Commissioner introduced the following resolution and moved its adoption: RESOLUTION OF THE HOUSING AND REDEVELOPMENT AUTHORITY (HRA) ADOPTING THE 2011 GENERAL FUND BUDGET BE IT RESOLVED by the HRA that the appropriations for the General Fund Program for the calendar year 2011 as follows: GENERAL FUND Proposed Expenditures Budget Legal Services $6,000 Audit Services 12,000 Permanent Transfer 140,000 Miscellaneous 1,000 159 000 BE IT FURTHER RESOLVED by the HRA that the sources of financing the sums appropriated shall be: GENERAL FUND Revenue Golden Hills -Tax Increment fund 159,000 159 000 Paula Pentel, Chair ATTEST: Thomas D. Burt, Executive Director The motion for the foregoing resolution was seconded Member ,and upon a roll call vote being taken thereon, the following voted in favor thereof: ; the following voted against the same: ;whereupon said resolution was adopted, signed by the Ghair and her signature attested by the Director `Golden Valley Memorandum Finance 763-593-8013 / 763-593-8109 (fax) Executive Summary For Action Golden Valley HRA Meeting January 11, 2011 Agenda Item 8. Designation of Depositories: Resolution 11-02 Prepared By Sue Virnig, Finance Director Summary State Law requires cities to have depositories for city funds approved annually. The attached resolution states the depositories, accounts, and signature requirements for each account. Attachments Resolution 11-02 Designating Depositories for HRA Funds (1 pages) Recommended Action Motion to adopt Resolution 11-02 Designating Depositories for HRA Funds. Resolution 11-02 January 11, 2010 Commissioner introduced the following and moved its adoption: RESOLUTION DESIGNATING DEPOSITORIES FOR HRA FUNDS BE IT RESOLVED by the Housing and Redevelopment Authority of Golden Valley that the following are named as depositories for HRA funds, subject to the furnishing of collateral for funds on deposit as provided in the Laws of the State of Minnesota: BNC National Bank Central Bank Piper Jaffray Companies RBC-Dain Rauscher US Bank Wells Fargo 4M Fund BE IT FURTHER RESOLVED that the following signatories or alternates are authorized to be signatories on checks drawn on funds deposited to the general checking account: the HRA Chair or Vice Chair and the HRA Director or Assistant Director; and that each check shall require two signatures. BE IT FURTHER RESOLVED that the following shall be authorized to make investments of HRA funds and shall be authorized to deposit the principal of said investments in the above named depositories as necessary and beneficial to the City: HRA Director, City Treasurer, City's Accounting Coordinator. The HRA Director and City Clerk are authorized and directed to furnish each of the depositories with certified copies of this resolution along with such signature documentation as is required by the depository and the authorizations set forth under 1 and 2 above. Paula Pentel, Chair ATTEST: Thomas D. Burt, Director Motion for the adoption of the foregoing resolution was seconded by ;and upon a vote taken thereon, the following voted in favor thereof the following voted against the same: whereupon said resolution was declared duly passed and adopted, signed by the Chair and his signature attested by the Director. ~r `~``'' Memorandum (~ n ~] ~ Housing & Redevelopment ~,rll (,l, Authority 763-593-8014 / 763-593-8109 (fax) Executive Summary for Action Housing and Redevelopment Authority Meeting January 11, 2011 Agenda Item 9. Review of Tax Increment Financing Policy Prepared By Jeanne Andre, Assistant HRA Director Summary In 2003 the Housing and Redevelopment Authority (HRA) adopted a policy and procedure related to Tax Increment Financing. At the time of its adoption, the HRA requested an annual review of the policy to see if it should be continued or revised. Attached is the current version of the policy, which was last changed in 2006. In keeping with the HRA request for annual review the current policy is presented for consideration by the HRA. Staff has no recommended changes to the policy in 2011. There were no recommended changes to the policy in 2010. In 2009 the Council requested changes to the application form, but not the policy. In 2008 staff recommended changes in the fee structure to provide for an initial fee of $10,000 with an open-ended supplemental application fee, paid in increments of $5000, which the Commissioners approved. Staff recommends continuing this fee structure. Attachments Tax Increment Financing Policy as adopted by Resolution 06-03, April 11, 2006, with application and fee changes (10 pages) Recommended Action Determine if changes to Tax Increment Financing Policy as adopted by Resolution 06-03, should be considered by the HRA at its April 2011 Meeting and direct staff as to the nature of the desired changes. If no changes are recommended, a motion to affirm the existing Tax Increment Financing Policy as set forth in Resolution 06-03 is in order. GOLDEN VALLEY HOUSING AND REDEVELOPMENT AUTHORITY GOLDEN VALLEY, MINNESOTA TAX INCREMENT FINANCING POLICY REVISED: April 11, 2006 1. POLICY PURPOSE For the purposes of this document, the term "HRA" shall include the Golden Valley Housing and Redevelopment Authority. The purpose of this policy is to establish the position of the Golden Valley HRA relating to the use of Tax Increment Financing (TIF) for private development above and beyond the requirements and limitations set forth by State Law. This policy shall be used as a guide in the processing and review of applications requesting tax increment assistance. The fundamental purpose of tax increment financing in Golden Valley is to encourage desirable development or redevelopment that would not otherwise occur but for the assistance provided through TIF. Regardless of authorized expenditures under the law, it is the intent of the HRA to provide the minimum amount of TIF at the shortest term required for the project to proceed. The HRA reserves the right to approve or reject projects on a case by case basis, taking into consideration established policies, project criteria, and demand on city services in relation to the potential benefits from the project. Meeting policy criteria does not guarantee the award of TIF to the project. Approval or denial of one project is not intended to set precedent for approval or denial of another project. II. OBJECTIVES OF TAX INCREMENT FINANCING As a matter of adopted policy, the HRA will consider using TIF to assist private development projects to achieve one or more of the following objectives: A. To retain local jobs and/or increase the number and diversity of jobs that offer stable employment and/or livable wages and benefits. B. To encourage additional unsubsidized private development in the area, either directly or indirectly through "spin off' development. C. To facilitate the development process and to achieve development on sites which would not be developed without TIF assistance. -1- Revised 1-13-09 D. To remove blight and/or encourage redevelopment of commercial and industrial areas in the city that result in high quality redevelopment and private reinvestment. E. To offset increased costs of redevelopment (i.e. contaminated site clean up) over and above the costs normally incurred in development. F. To create opportunities for affordable housing. G. To contribute to the implementation of other public policies, as adopted by the city from time to time, such as the promotion of quality urban or architectural design, energy conservation, and decreasing capital and/or operating costs of local government H. Foster sustainable development and work to establish a balance between urban and natural systems. Encourage the application of green building and infrastructure techniques. Examples include low-impact development that maintains the natural functions of the land, reduces storm water runoff and fosters resource conservation and the use of renewable systems in new construction. III. POLICIES FOR THE USE OF TAX INCREMENT FINANCING A. The priority for the use of TIF funds is: 1. Public improvements, legal, administrative, and engineering costs. 2. Site preparation, site improvement, land purchase, soil correction, environmental remediation and demolition. 3. Capitalized interest, bonding costs. B. TIF assistance will be provided to the developer upon receipt of the increment by the City, otherwise referred to as the pay-as-you-go method. Requests for up front financing will be considered on a case by case basis. C. A maximum of ten percent (10%) of any tax increment received from the district shall be retained by the City to reimburse administrative costs. D. Any developer receiving TIF assistance shall provide an equity investment in the project. E. TIF will be used to purchase land and/or property only at fair market value. F. TIF shall not be used for projects that would place extraordinary demands on city services or for projects that would generate significant environmental impacts. -2- Revised 1-13-09 G. The developer must provide adequate financial guarantees to ensure completion of the project, including, but not limited to: assessment agreements, letters of credit, personal guaranties, escrow deposits, etc. H The developer shall adequately demonstrate, to the City's sole satisfaction, an ability to complete the proposed project based on past development experience, general reputation, and credit history, among other factors, including the size and scope of the proposed project. I. For the purposes of underwriting the proposal, the developer shall provide any requested market, financial, environmental, or other data requested by the City or its consultants. IV. SUBSIDY AGREEMENT ~ REPORTING REQUIREMENTS All developers/businesses receiving tax increment financing assistance from the Golden Valley HRA shall be subject to the provisions and requirements set forth by state statute 116J.993 and summarized below. A. All developers/businesses receiving TIF assistance shall enter into a subsidy agreement with the Golden Valley HRA that identifies: the reason for the subsidy, the public purpose served by the subsidy, and the goals for the subsidy, as well as other criteria set forth by statute 116J.993. B. The developer/business shall file a report annually for two years after the date the benefit is received or until all goals set forth in the application and performance agreement have been meet, whichever is later. Reports shall be completed using the format drafted by the State of Minnesota and shall be filed with the Golden Valley HRA no later than March 1 of each year for the previous calendar year. Businesses fulfilling job creation requirements must file a report to that effect with the city within 30 days of meeting the requirements. C. The developer/business owner shall maintain and operate its facility at the site where TIF assistance is used until the end of the TIF District. D. Developers /Businesses failing to comply with the above provisions will be subject to fines, repayment requirements, and be deemed ineligible by the State of Minnesota to receive any loans or grants from public entities for a period of five years. -3- Revised 1-13-09 APPLICATION FOR TAX INCREMENT FINANCING A. APPLICANT INFORMATION Name of Corporation/Partnership Address Primary Contact Address Phone Fax Email Attorney Name Address Phone Fax Email Accountant Name Address Phone Fax Email Contractor Name Address Phone Fax Email FnnlnPPr Name - .. Address Phone Fax Email Architect Name Address Phone Fax Email -1- Revised 1-13-09 B. PROJECT INFORMATION The project will be: Industrial Greenfield: Commercial Redevelopment Industrial Redevelopment: Other The project will be: Project Address Legal Description New Construction New Construction New Construction Expansion Rehabilitation Rehabilitation Owner Occupied Leased Space Attach Site Plan Amount of Tax Increment Requested for: Land Purchase $ Public Improvement $ Site Improvement $ Current Real Estate Taxes on Project Site: $ Estimated Reat Estate Taxes upon Completion: Phase I $ (If Any) Phase II $ Construction Start Date: Construction Completion Date: If Phased Project: Year Year -2- Completed Completed Revised 1-13-09 C. PUBLIC PURPOSE It is the policy of the Golden Valley HRA that the use of Tax Increment Financing should result in a benefit to the public. Please indicate how this project will serve a public purpose. Job Creation: Number of existing jobs Number of jobs created by project Average hourly wage of jobs created New development which will result in additional private investment in the area. Enhancement or diversification of the city's economic base and/or housing stock. Removal of blight or the rehabilitation of a high profile or priority site. Other: -3- Revised 1-13-09 D. SOURCES & USES OF FUNDS SOURCES NAME AMOUNT Bank Loan ~ Other Private Funds ~ Equity ~ Fed Grant/Loan ~ State Grant/Loan ~ EDA Micro Loan ~ ID Bonds ~ Tax Increment (present value of " pay as you go") $ Other ~ TOTAL ~ USES AMOUNT Land Acquisition ~ Site Development ~ Construction $ Machinery & Equipment ~ Architectural & Engineering Fees $ Legal Fees ~ Interest During Construction ~ Debt Service Reserve ~ Contingencies ~ Other $ TOTAL ~ -4- Revised 1-13-09 E. ADDITIONAL DOCUMENTATION Applicants will also be required to provide the following documentation. 1. Current financial statements and those for the past two years: Profit & Loss Statement Balance Sheet 2. Brief description of the corporation/partnership's business, including history, principal product or service, etc... Attach as Exhibit I. 3. Names of officers and shareholders/partners with more than five percent (5%) interest in the corporation/partnership. Attach as Exhibit II. 4. Abut-for analysis (proforma). Attach as Exhibit III. (See example on page 5. Application fee of $10,000 (non-refundable) -5- Revised 1-13-09 The undersigned certifies that all information provided in this application is true and correct to the best of the undersigned's knowledge. The undersigned authorizes the Golden Valley HRA to check credit references and verify financial and other information. The undersigned also agrees to provide any additional information as may be requested by the City after the filing of this application and to submit a supplemental application fee of $5,000 if the balance of application fees previously submitted is expended. I have received, and read, a copy of the Golden Valley Tax Increment Financing Policy. Applicant Name Date By Printed name Its Printed name -6- Signature Signature Revised 1-13-09 EXAMPLE BUT-FOR ANALYSIS Mortgage Equity Tax Increment Financing TOTAL SOURCES Land Site Work Soil Correction Demolition Relocation Subtotal Land Costs Construction Finish Manufacturing Subtotal Construction Costs Soft Costs Taxes Finance Fees Project Manager Developer Fee Contingency Subtotal Soft Costs TOTAL USES Rent-Space 1 Rent-Space Rent-Space Other MortgagE Net IncomE Total Return on Equity WITH NO WITH TAX INCREMENT TAX INCREMENT SOURCES AND USES SOURCES AND USES SOURCES SOURCES 9,600,000 8,667,000 2,400,000 2,400,00 0 933,000 12,000,000 12,000,000 USES USES 1,500,000 . 1,500,000 300,000 300,000 468,000 468,000 100,000 100,000 65,000 65,000 2,433,000 2,433,000 6,750,000 6,750,000 250,000 250,000 7,000,000 7,000,000 350,000 350,000 35,000 35,000 850,000 850,000 542, 000 542, 000 540,000 540,000 250,000 250,000 2, 567, 000 2, 567, 000 12,000,000 12,000,000 Income Statement Income Statement Sq. Ft. Per Sq. Ft. Sq. Ft. Per Sq. Ft. 100,000 $8.00 800,000 100,000 $8.00 800,000 ! 25,000 $8.50 212,500 25,000 $8.50 212,500 S 25,000 $9.00 225,000 25,000 $9.00 225,000 0 $0.00 0 0 $0.00 0 1,237,500 1,237,500 20 Term 1,051,646 20 Term 949,439 9.00% Interest 9.00% Interest 9,600,000 Principal 8,667,000 Principal 185,854 288,061 ~ 7.74% 12.00% Revised 1-13-09 ~F-~~ Memorandum Housing & Redevelopment o en a e Authorit Y 763-593-8014 / 763-593-8109 (fax) Executive Summary for Action Housing and Redevelopment Authority Meeting January 11, 2011 Agenda Item 10. I-394 Corridor Redevelopment Area Plan Prepared By Jeanne Andre, Assistant Director Summary At its April 13 meeting the Housing and Redevelopment Authority (HRA) held a hearing on the proposed I-394 Corridor Redevelopment Area Plan. After the public hearing the Commissioners recommended a number of changes to the Plan, so final consideration was delayed to allow staff to make the requested changes to the Plan. HRA consideration of the Plan was continued to the July 13, October 12 and then the January 11 meeting. Recent discussions related to the 3.9.4 project have caused staff to reconsider parts of the Plan related to the East Area. If access issues related to the development of the Minnesota Department of Transportation parcel at I-394 and Truck Highway 100 cannot be worked out, staff may recommend reconsidering land use proposed for this area. Staff recommends delaying consideration of the 1-394 Corridor Redevelopment Area Plan until access options necessary for various land uses are fully explored with the developer. It is hoped this information will be available for the next HRA meeting in January. Recommended Action Motion to continue consideration of the I-394 Corridor Redevelopment Area Plan to the April 12, 2011 meeting.