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10-14-14 HRA Agenda Packet AGENDA Regular Meeting of the Housing and Redevelopment Authority Golden Valley City Hall 7800 Golden Valley Road Council Chamber October 14, 2014 6:30 pm Paqes 1. Roll Call 2. Approval of Agenda 3. Approval of Minutes - July 8, 2014 2 4. Approval of Bills: Reimbursement of City Expenditures 3 City of Golden Valley $5,215,024.04 TOTAL $5,215,024.04 Bill Summarv: General Fund $212.50 North Wirth Capital Project Fund $0 Golden Hills Tax Increment Fund $5,200,000.00 Capital Project Fund 14,811.54 TOTAL $5,215,024.04 5. Receipt of September 2014 Financial Reports 4-7 6. Highway 55 West Tax Increment Financing District No. 1 (Renewal and 8-11 Renovation) A. Resolution Expressing Intent to Modify the Tax Increment Financing Plan for Highway 55 West Tax Increment Financing District No. 1 (Renewal and Renovation) in Order to Prepare for the Golden Villa Development Proposal 14-5 B. Set Special HRA Meeting and Call for Public Hearing - Modify the Tax Increment Financing Plan - 11/18/14 7. Adjournment This document is available in alternate formats «pon a 72-hour request. Please call ' 763-593-8006 {TTY: 763-593-3968)to make a request. Examples af alternate farmats may indude large print, electronic, Braille, audiocassette, etc. REGULAR MEETING OF THE HOUSING AND REDEVELOPMENT AUTHORITY July 8, 2014 Pursuant to due call and notice thereof, a regular meeting of the Housing and Redevelopment Authority of the City of Golden Valley, Hennepin Gounty, Minnesota, was held at 780Q Golden Valley Road in said City on July 8, 2014 at 6:30 pm. The following members were present: Chair Steve Schmidgall, Commissioners Joanie Clausen, Larry Fannest, Shep Harris and Andy Snope. Also present were HRA Director Thomas Burt and Administrative Assistant Judy Nally. Approval of Aq,enda MOVED by Snope, seconded by Clausen and motion carried unanimously to approve the agenda as submitted. Approval of Minutes - April 8, 2014 MOVED by Clausen, seconded by Snope and motion carried unanimously to approve the Housing and Redevelopment Authority minutes of April 8, 2014 as submitted. Approval of Bills MOVED by Harris, seconded by Snope and motion carried unanimously to approve the bills as submitted. Receipt of June 2014 Financial Reports MOVED by Clausen, seconded by Snope and motion carried unanimously to receive and file the June 2014 Financial Reports. Adiournment MOVED by Snope, seconded by Clausen and motion carried unanimously to adjourn the meeting at 6:32 pm. Steve Schmidgall, Chair ATTEST: Judy Nally, Administrative Assistant LI��J L7{µ" �,� -.� � ,:.� . � � � �� � � ��� � �. � Housin and Redevelo rnent Authorit �. ��� g P Y 763 593 8002/763-593-8109(fax) Executive Summary For Action Golden Valley Housing and Redevelopment Authority Meeting October 14, 2014 Agenda Item 4. Reimbursement of City Expenditures Prepared By Sue Virnig, Finance Director Summary As of September, 2014 the following expenditures were paid by the City on various check registers and need to be reimbursed by the HRA: City Expenditures: Amount 1000 Best & Flanagan (June legal) $212.50 1000 Best & Flanagan (July legal) 6,893.80 1000 Best & Flanagan (August legal) 7,153.40 1000 Bachman Printing (Globus expense) 764.34 1000 City of Golden Valley (debt service for 2015) 5,200,000 $5,215,024.04 HRA Expenditures: 9000 General Fund $212.50 9160 Golden Hills Tax Increment Fund 5,200,000 9280 Golden Hills Capital Projects 14,811.54 $5,215,024.04 Recommended Action Motion to approve reimbursing the City of Golden Valley for expenditures of$15,024.04 (check #4063) and bank transfer to the City on December 1 for$5,200,000. ci��? c��A . Housin and Redevelo ment Authorit � � Y 763-593-8042/763-593-8109(fax} Executive Summary For Action Golden Valley Housing and Redevelopment Authority Meeting October 10, 2014 Agenda Item 5. Receipt of September 2014 Financial Reports Prepared By Sue Virnig, Finance Director Summary Attached is the September 2014 Financial Reports for Housing and Redevelopment Authority (HRA) review. Staff will address questions from the HRA before or at the meeting. Attachments • HRA General Fund Budget Report (1 page) • HRA Tax Increment District Projections for Golden Hills Tax Increment Funds (1 page) • HRA Capital Project Funds Report (1 page) Recommended Action Motion to receive and file the September 2014 HRA Financial Reports. HRA of Golden Valley General Fund September 2014 Budget Report (unaudited) Percentage Of Year Completed 50% Over % Of 2014 July-Sept YTD (Under) Budget Revenue Budget Actual Actual Budget Received Transfer from TIF Funds: Golden Hills 159,000 0.00 159,000.00 O.OQ 100.00% Interest Earnings (3) 0 0.00 0.00 0.00 Fund Balance 0 0.00 0.00 0.00 Totals $159,000 0.00 159,000.00 0.00 100.00% Over % Of 2014 July-Sept YTD (Under) Budget Expenditures Budget Actual Actual Budget Expended Legal Services (1) $6,000 212.50 2,313.15 (3,686.85) 38.55% 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 $159,000 212.50 154,313.15 (4,686.85) 97.05% Notes: (1) Includes August to date billings from Best & Flanagan. (2) Transfers were made in July 2014. (3) Interest will be allocated at year end. Citv of Golden Vallev - HRA - Tax Increment District Proiections Golden Hills Tax Increment Fund: (Includes Tax Increment Fund and Debt Service) 2014 2015 Projected Cash Bal. @1/1 $12,531,540 $12,673,138 Revenue: Estimated Tax Increment 5,177,882 lnterest Earnings (.05% of Beg. Bal.) 50,126 Total Revenues: 5,228,008 0 Expenditures: Transfer to HRA General Fund (159,000) Debt Service: 2005 B Taxable Tax Incr. Refunding Bonds (4.69%) (not callable) (1,805,152) {1,730,649) 2005 A Tax Increment Refunding Bonds (3.50%) (not callable) (563,933) (550,348) 2006 A Taxable Tax Incr. Refunding Bonds (5.12%) (not callable) (2,558,325) (3,024,263) Total Expenditures: (5,086,410) (5,305,260) Projected Cash Bal. @ 12/31 $12,673,138 $7,367,878 Bond Principal & Interest Outstanding @ 12/31 $5,052,628 $0 HRA Of Golden Valley Capital Project Funds 2014 Financial Report 9280 9250 Golden North Hills Wirth #3 Cash Balance @07/01/14 $286,767.41 $0.00 Add: Receipts: Interest Lease revenue Increment on Deposit 0.00 Less: Expenditures: City of Golden Valley (1) TIF Payment-Bank Mutual 0.00 Cash Balance @ 09/30/14 $286,767.41 $0.00 (1) Breakdown on City Expenditures Memo c���y ���~ ��-� . r. � �,� �. Housin and Redevelo ment.A.uthorit ��'�.. . '��1� g P Y 763-593-8002/763-593-8109(fax) Executive Summary for Action Golden Valley Housing and Redevelopment Authority Meeting October 14, 2014 Agenda Item 6. Highway 55 West Tax Increment Financing Plan District Na. 1 (Renewal and Renovation) - Intent to Modify Tax Increment Financing Plan to Prepare for Golden Villa Development Proposal and Call for Public Hearing- November 18, 2014 Prepared By Jason Zimmerman, Planning Manager Sue Virnig, Finance Director Summary In October 2012, the Housing and Redevelopment Authority approved Resolution 12-05, Adopting the Redevelopment Plan for Highway 55 West Redevelopment Project Area and Resolution 12-06, Adopting the Tax Increment Financing Plan for Highway 55 West Tax Increment Financing District No, 1 (Renewal and Renovation). The Renewal and Renovation District was to remove blight and inappropriate or outdated land uses and is a maximum of 15 years per State Statute. As part of the previous Tiburon Apartments project, Tax Increment Financing was approved to help pay for public improvements along Golden Valley Road in coordination with the development. Ultimately, the project failed to advance and with it the public improvements. In July 2014, Golden Villas, LLC, applied for Tax Increment Financing as part of a new development proposal on the site of the former Tiburon project. Staff has been working with the developer and Council has approved the Preliminary PUD Plan for this new project, but tax increment will be needed for the development to work financially. Staff is asking for the following resolution to express intent to modify the existing Tax Increment Plan to reflect the new financing and circumstances of the current proposal, and to allow Staff to continue to work with the developer on a financial plan to meet the overall goals and objectives of the project area. The new tax increment would be needed to support the development itself, with any remaining available increment applied to public improvements. Attachments • Resolution Expressing Intent to Modify the Tax Increment Financing Plan for Highway 55 West Tax Increment Financing District No. 1 (Renewal and Renovation) in Order to Prepare for the Golden Villa Development Proposal (2 pages) Recommended Action Motion to adopt Resolution Expressing Intent to Modify the Tax Increment Financing Plan for Highway 55 West Tax Increment Financing District No. 1 (Renewal and Renovation) in Order to Prepare for the Golden Villa Development Proposal. Motion to approve a Call for Public Hearing at a Special HRA meeting on November 18, 2014 at 6 pm, to Modify the Tax Increment Financing Plan for Highway 55 West Tax Increment Financing District No. 1 (Renewal and Renovation). Resolution 14-5 October 14, 2014 Commissioner introduced the following resolution and moved its adoption: RESOLUTION EXPRESSING INTENT TO MODIFY THE TAX INCREMENT FINANCING PLAN FOR HIGHWAY 55 WEST TAX INCREMENT FINANCING DISTRICT NO. 1 (RENEWAL AND RENOVATION) IN ORDER TO PREPARE FOR THE GOLDEN VILLA DEVELOPMENT PROPOSAL WHEREAS, the City of Golden Valley (the City) through its Housing and Redevelopment Authority (the HRA) established the Highway 55 West Redevelopment Project Area on October 9, 2012 by Resolution No. 12-05 in order to implement the vision for the revitalization of this neighborhood; and WHEREAS, the City through its HRA also approved the Tax Increment Financing Plan for the Highway 55 West Tax Increment Financing District on October 9, 2012 by Resolution No. 12-06 in order to prepare the necessary financing to implement the vision for the revitalization of this neighborhood; and WHEREAS, a need has been identified in the original Redevelopment Plan for public infrastructure improvements and blight removal to support housing and economic development in the city; and an opportunity has arisen within the Highway 55 West Redevelopment Project Area to pursue those objectives; and WHEREAS, Golden Villas, LLC is currently proposing to a multi-family apartment project consisting of 162 units at 9130 and 9220 Olson Memorial Highway, and WHEREAS, Golden Villas, LLC would remove the blight as identified in the Redevelopment Plan, and WHEREAS, Golden Villas will provide additional jobs, and WHEREAS, Galden Villa would create value that would will require assistance in the form of the Tax Increment Financing in order to achieve financial feasibility; and WHEREAS, Golden Villa would create value that would assist in the public infrastructure improvements needed by the City of Golden Valley, and NOW THEREFORE BE IT RESOVED, that subject to approval of the Golden Valley City Council and the HRA and evidence that tax increment assistance for Golden Villas, LLC meets the requirements of Minnesota Statutes, Sections 469.174 through 1794 (the TIF Act), the HRA Board directs staff to commence the process of making the necessary modifications to the Highway 55 West Tax Increment Financing Plan and schedule the required public hearings in order for the City and HRA to approve a modification to the Tax Increment Finance district limited in terms sufficient to meet financial requirements of Golden Villas, LLC in compliance with the TIF Act. Resolution 14-5 - Continued October 14, 2014 STATEMENT OF PURPOSE: This resolution expresses intent to modify a Tax Increment Finance district as needed subject to City Council and HRA approval and verification of compliance with all provisions of the TIF Act. Steven T Schmidgall, Chair ATTEST: Thomas D. Burt, Executive Director The motion for the adoption of the foregoing resolution was seconded by Commissioner upon a vote being taken thereon, the following voted in favor thereof: and the following voted against the same whereupon said resolution was declared duly passed and adopted, signed by the Chair and the signature attested by the Executive Director.