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10-13-16 HRA Agenda Packet AGENDA Regular Meeting of the Housing and Redevelopment Authority Golden Valley City Hall 7800 Golden Valley Road Council Chamber Thursday, October 13, 2016 6:30 pm Pa es 1. Roll Call 2. Approval of Agenda 3. Approval of Minutes: Regular Meeting - July 12, 2016 2-4 and Special Meeting - September 6, 2016 4. Approval of Bills: Reimbursement of City Expenditures 5 City of Golden Valley 5 669.29 TOTAL 5 669.29 Bill Summarv: General Fund $5,669.29 North Wirth Capital Project Fund $p Golden Hills Capital Project Fund $p Hwy 55-West Capital Project Fund $p Winnetka-Medicine Lake Road Capital Project Fund �p TOTAL 5 669.29 5. Receipt of September 2016 Financial Reports 6_g 6. Winnetka and Medicine Lake Road Project Area: g-12 A. Resolution Relating to the Liberty Crossing Project of the City and Approving the InterFund Loan 16-06 7. Adjournment This dacument is av�ilable in alt�rnate for«�ats upon a 72-hour request. Ple�se caii 763-593-800b{TTY: 7b3-593-3968}t� niake a request. Exampies of alternate formats 'may inelude large print, electronic, �raille, audiocassette, etc. REGULAR MEETING OF THE HOUSING AND REDEVELOPMENT AUTHORITY July 12, 2016 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 July 12, 2016 at 6:30 pm. The following members were present: Commissioners Joanie Clausen, Larry Fonnest, Shep Harris, Steve Schmidgall and Andy Snope. Also present were HRA Director Timothy Cruikshank and Administrative Assistant Judy Nally. Approval of Aqenda MOVED by Snope, seconded by Harris and motion carried unanimously to approve the agenda as submitted. Approval of Minutes - April 12, 2016 MOVED by Fonnest, seconded by Snope and motion carried unanimously to approve the Housing and Redevelopment Authority minutes of April 12, 2016 as submitted. Approval of Bills MOVED by Clausen, seconded by Harris and motion carried unanimously to approve the bills as submitted. Receipt of June 2016 Financial Reports MOVED by Fonnest, seconded by Snope and motion carried unanimously to receive and file the June 2016 Financial Reports. Adiournment MOVED by Snope, seconded by Harris and motion carried unanimously to adjourn the meeting at 6:32 pm. Steven T Schmidgall, Chair ATTEST: Judy Nally, Administrative Assistant SPECIAL MEETING OF THE HOUSING AND REDEVELOPMENT AUTHORITY September 6, 2016 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 September 6, 2016, at 5:30 pm. The following members were present: Chair Steve Schmidgall, Commissioners Larry Fonnest, Shep Harris, Joanie Clausen and Andy Snope. Also, present were HRA Director Cruikshank, Assistant HRA Director Nevinski, City Attorney Garry, and City Clerk Luedke. Brookview Communitv Center Financina - Lease Revenue Bonds; Authorizina the Issuance, Establishinq Sale Parameters, Prescribinq the Form and Details and Providinq for the Pavment Sue Virnig, Finance Director introduced the agenda item and answered questions from the Commissioners. HRA Director Cruikshank answered questions from the Commissioners. David MacGillvray, Springsted Bond Consultant, provided the Commissioners with an overview of the lease revenue bonds to be used for finance for Brookview Community Center and answered questions for the Commissioners. Jennifer Hanson, Dorsey and Witney, provided additional information to the Commissioners regarding the lease revenue bonds and answered questions from the Commissioners. Commissioner Harris introduced the following resolution and move its adoption: RESOLUTION RELATING TO LEASE REVENUE BONDS; AUTHORIZING THE ISSUANCE, ESTABLISHING SALE PARAMETERS, PRESCRIBING THE FORM AND DETAILS AND PROVIDING FOR THE PAYMENT THEREOF The motion for the adoption of the foregoing was seconded by Commissioner Clausen and upon a vote being take the following voted in favor of: Clausen, Fonnest, Harris, Schmidgall, and Snope; and the following voted against the same: none, whereupon said resolution was declared duly passed and adopted, signed by the Chair and his signature attested by the Executive Director. Second Amendment to Private Development Aqreement for Global One Golden Vallev, LLC, and 394 Associates, LLP Marc Nevinski, Assistant HRA Director introduced the agenda item and answered questions from the Commissioners. MOVED by Harris, seconded by Snope and motion carried unanimously to authorize the Chair and Director to sign the Second Amendment to Private Development Agreement for Global One Golden Valley, LLC, and 394 Associates, LLP. Special Meeting of the Housing and Redevelopment Authority September 6, 2016 Page 2 Adiournment MOVED by Harris, seconded by Fonnest and motion carried unanimously to adjourn the meeting at 6:02 pm. Steven T. Schmidgall, Chair ATTEST: Kristine A. Luedke, City Clerk city of o�d�� � . �+�. e� Housing and Redevelopment Authority 763-593-80021763-593-8109(fax) . �� ., ,.ut,.�...:i,",k�','8,. . _ _ , � .. . >,.. .. . .. . `"k;5 . . ..... . Executive Summary For Action Golden Valley Housing and Redevelopment Authority Meeting October 13, 2016 Agenda Item 4. Reimbursement of City Expenditures Prepared By Sue Virnig, Finance Director Summary As of September 30, 2016 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) $405.00 1000 Relocation (Wilson, renters)* 5,264.29 $5,669.29 HRA Expenditures: 9000 General Fund ($5,264.29-Global One Deposit) $5,669.29 $5,669.29 *Asterisk items are reimbursed by deposits held for developers. Recommended Action Motion to approve reimbursing the City of Golden Valley$5,669.29 (check#4079). Ct�"y O� ,ti,,�r' �ldeYt E n� +� �r u� � � . � Housin and Redevelo men A h ri �t�. �Y g p t ut o ty 763-593-8002!763-593-8109(fax) . . ������.���,, � � _ � ��:��.. . . . � ��;�_� Executive Summary For Action Golden Valley Housing and Redevelopment Authority Meeting October 13, 2016 Agenda Item 5. Receipt of September 2016 (unaudited) Financial Reports Prepared By Sue Virnig, Finance Director Summary Attached is the September 2016 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 Capital Project Funds Report (1 page) Recommended Action Motion to receive and file the September 2016 HRA Financial Reports. HRA of Golden Valley General Fund September 2016 Budget Report (unaudited) Percentage Of Year Completed 50% Over % Of 2016 June-Sept YTD (Under) Budget Revenue Budget Actual Actual Budget Received Transfer from TIF Funds: Golden Hilis 0 0.00 0.00 0.00 Interest Earnings (2) 0 0.00 0.00 0.00 Fund Balance 19,000 0.00 0.00 (19,000.00) Totals $19,000 0.00 0.00 (19,000.00) 0.00% Over % Of 2016 June-Sept YTD (Under) Budget Expenditures Budget Actual Actual Budget Expended Legal Services (1) $6,000 405.00 3,835.60 (2,164.40) 63.93% Audit 12,000 0.00 12,000.00 0.00 100.00% City Overhead 0 0.00 0.00 0.00 Miscellaneous 1,000 0.00 0.00 (1,000.00) Totals $19,000 405.00 15,835.60 (3,164.40) 83.35% Notes: (1) Includes may to date billings from Best & Flanagan. (2) Interest will be allocated at year end. HRA Of Golden Valley Capital Project Funds 2016 Financiai Report 9300 9400 9250 Hwy 55/ Winnetka North West Med Lk Rd Wirth #3 Cash Balance @ 07/01/16 $0.00 $0.00 $2,551.10 Add: Receipts: Interest Lease revenue Increment on Deposit-pd in Feb 17 0.00 Less Expenditures: City of Golden Valley(1) TIF Payment-Hennepin County 0.00 0.00 Cash Balance @ 9/30/16 $0.00 $0.00 $2,551.10 (1) Breakdown on City Expenditures Memo city of 0����Z � 111� � � [� �11V� � �t�,. f,.'� Housing and Redevelopment Authority 763-593-8002/763-593-8109(fax) �; w, � s., - � �� , �,�w�� �� � ���, Executive Summary For Action Golden Valley Housing and Redevelopment Authority Meeting October 13, 2016 Agenda Item 6. Winnetka and Medicine Lake Road Project Area - Liberty Crossing Project -Approval of Interfund Loan Prepared By Sue Virnig, Finance Director Summary The Golden Valley Housing and Redevelopment Authority (GVHRA) will need to consider the following resolution that will provide for the financing for the Winnetka-Medicine Lake Tax Increment District that coincides with the Liberty project. The amount of the interfund loan will be $1,500,000. Once the project needs additional financing,the financing will come from the Storm Sewer Fund and will be paid back through future tax increment created from the project area. The interfund loan will need to be approved by both the GVHRA and the City. Attachments • Resolution Relating to the Liberty Crossing Winnetka-Medicine Lake Road Tax Increment Project of the City and Approving the Interfund Loan Therefor (3 pages) Recommended Action Motion to adopt Resolution Relating to the Liberty Crossing Winnetka-Medicine Lake Road Tax Increment Project of the City and Approving the Interfund Loan Therefor. Resolution 16-06 October 13, 2016 Commissioner introduced the following resolution and moved its adoption: RESOLUTION RELATINGTOTHE LfBERTY CROSSING WINNETKA-MEDICINE LAKE TAX INCREMENT PROJECT OF THE CITY AND APPROVING THE INTERFUND LOAN THEREFOR BE IT RESOLVED by the Board of Commissioners of the Housing and Redevelopment Authority in and for the City of Golden Valley (the "HRA"),as follows: 1. Recitals. a. The HRA and the City of Golden Valley, Minnesota (the "City"),adopted the Winnetka— Medicine Lake Redevelopment Plan for the Winnetka and Medicine Lake Road Project Area (the "Plan"),together with the Tax Increment Financing Plan (the "TIF Plan")for Tax Increment Financing District (Redevelopment),Winnetka Avenue North & Medicine Lake Road No. 1 (the "District"); all pursuant to and in conformity with applicable law, including Minnesota Statutes,Sections 469.174 to 469.1794, all inclusive, as amended (the"Act"). b. In accordance with the TIF Plan, the HRA has agreed to undertake a project with Liberty Crossing Investment Partners, LLC, a Minnesota limited liability company (the "Developer"), consisting of a five-story apartment building with approximately 187 apartments and approximately 55 townhomes, plus parking, landscaping, utilities and certain other improvements (the "Development"), all pursuant to a Private Development Agreement (the "Development Agreement") entered into with the Developer on April 29, 2016. c. In support of the Development, the City is issuing its General Obligation Storm Sewer Revenue Bonds (the "Bonds") to finance storm water flood containment and storage improvements within the District. d. In connection with the Development, the City authorized by written resolution dated December 15, 2015 an interfund loan of$1,000,000 to the HRA from the City's Storm Utility Fund, and the HRA approved the interFund loan by written resolution dated April 12, 2016 (the "Prior Interfund Loan"). Pursuant to Section 3.7 of the Development Agreement, the HRA paid Developer$1,000,000 to accommodate the installation of a large underground storm water storage basin beneath the Development. e. In connection with the Development, the City has authorized by written resolution dated October 13, a loan of up to $1,500,000 to the HRA from the City's Storm Utility Fund or other funds available or so much thereof as may be necessary to pay qualified costs of private activity improvements relating to the Development (the "Current Interfund Loan"). Resolution 16-06 - Continued October 13 2016 f. The Bonds will be a general obligation of the City, secured by its full faith and credit and taxing power. The City will also pledge net revenues of the storm sewer utility to the payment of principal and interest on the Bonds. The City expects to use tax increment revenues derived from the Development to first, pay debt service on the Bonds and second, repay the interfund loans. 2. Approval of the Current InterFund Loan. a. The HRA approves the interFund loan inthe amount of upto$1,500,000 in one or more tranches. The City shall be reimbursed as provided below from Available Tax Increment(as defined below)for the actual amount(s) loaned,together with interest at the rate of4%,which does not exceed the greater of the rates specified under Minnesota Statutes,Section 270C.40 or Section 549.09,as of the date the loan is authorized. Interest accrues on the principal amount from the date of each tranche. b. Principal and interest ("Payments") on the outstanding Current InterFund Loan balance shall be paid semi-annually in two (2) equal installments per year, each installment to be deemed paid within ten (10) business days of receipt by the City of property tax revenues from Hennepin County (each a "Payment Date"),commencing on the first Payment Date on which the City has Available Tax Increment (defined below), or on any other dates determined by the City Finance Director, through the date of last receipt of tax increment from the HRA pursuant to the TIF Plan. c. Payments on this Current Interfund Loan are payable solely from "Available Tax Increment,"which shall mean, on each Payment Date, tax increment available after other obligations have been paid for the preceding six (6) months with respect to the Development Property and remitted by Hennepin County, all in accordance with Minnesota Statutes, Sections 469.174 to 469.1794,as amended. Payments on the Current Interfund Loan may be subordinated to any outstanding or future bonds, notes or contracts secured in whole or in part with Available Tax Increment, and are on parity with any other outstanding or future interfund loans secured inwhole or in part with Available Tax Increment. d. The principal sum and all accrued interest payable under this Current Interfund Loan are pre-payable in whole or in part at any time by the HRA without premium or penalty. No partial prepayment shall affect the amount or timing of any other regular payment otherwise required to be made under this Current InterFund Loan. Resolution 16-06 - Continued October 13 2016 e. This Current Interfund Loan isevidence of a loan inaccordance with Minnesota Statutes,Section 469.178,subdivision 7, and isa limited obligation payable solelyfrom Available Tax I ncrement pledged to the payment hereof underthis resolution. Steven T Schmidgall, Chair ATTEST: Timothy J. Cruikshank, 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.