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HRA 07/21/1983 - 293700 CITY OF FRIDLEY HOUSING & REDEVELOPMENT AUTHORITY SPECIAL MEETING JULY 21, 1983 CALL TO ORDER: Chairperson Commers called the July 21, 1983, special Housing & Redevelopment Authority meeting to order at 5:00 p.m. ROLL CALL: Members Present: Larry Commers, Elmars Prieditis, Carolyn Svendsen Members Absent: Duane Prairie, Walter Rasmussen Others Present: Jerrold Boardman, City Planner Sid Inman, City Finance Director Jim Casserly, O'Connor & Hannan Mary Malzahn, O'Connor & Hannan CONSIDER FOR APPROVAL AND ADOPTION TWO RESOLUTIONS RELATING TO A MODIFICATION TO THE TAX INCREMENT FINANCING PLAN; REVIEW AND ;CONSI-DEP,'THE:- ADOPTION'OF'AN FRIDLEY: Mr. Commers asked Mr. Casserly to review with the HRA the documents O'Connor & Hannan have prepared and are presenting to the HRA at this meeting. Mr. Casserly stated he had asked Arlin Waelti, their Bond Counsel who had actually drafted the modification of the plan, to prepare a cover letter summar- izing the modifications and the reason for them. Mr. Commers stated that, as he understood it, regarding the districts themselves, they are merely consolidating the districts into one project so as to give the HRA more flexibility. Even though the districts are not physically contiguous, they will have one redevelopment project within the City of Fridley which will be made up of the three previous individual projects. Mr. Commers stated that as Ms. Waelti pointed out on page 2 of the July 21, 1983, cover letter, there are really no restrictions or limitations being put on those districts and they are, in fact,•expanding their flexibility and authority with regard to the districts with these modifications. Mr. Casserly stated that was correct. Recent legislation has made it very clear that they can use non - contiguous project areas and have non-contiguous tax incre- ment districts. That simply means they can take whatever areas they wish to develop in the city and treat them as a single project. SPECIAL HOUSING & REDEVELOPMENT AUTHORITY MEETING, JULY 21, 1983 PAGE 2 _ iMr. Casserly stated there are two resolutions they are requesting the HRA to adopt.The three -page resolution is Resolution HRA - 10 -83. That is the resolu- tion whereby they designate the Center City Redeveopment Area as a Redevelop- ment Project No. 1 and modify it by enlarging Redevelopment,No. 1 and the Redevelopment Plan relating thereto pursuant to existing statutes. They designate. Center City Redevelopment Area as Tax Increment District 1, Moore Lake Redevelop- ment Area as Tax Increment District No. 2, and the North Area Redevelopment Area as Tax Increment District No. 3, all not located within Redevelopment Project No. 1. • Mr. Casserly stated Resolution HRA 11 -83 is the resolution that would request the City Council to call a public hearing on redesignating these districts. There is a.statutory, requirement to do this.. He stated O'Conner & Hannan has also prepared for Staff the notice of public hearing. He stated the public hearing at City Council will be on August 22. MOTION BY MR. PRIEDITIS, SECONDED BY MS. SVENDSEN, TO ADOPT RESOLUTION NO. HRA 100-83 AS PRESENTED. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. MOTION BY MR. PRIEDITIS, SECONDED BY MS. SVENDSEN, TO ADOPT RESOLUTION NO. HRA 11 -83 AS PRESENTED: UPON'A VOICE VOTE ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. Mr. Commers stated he would call the HRA's attention to the General Reserve document discussed at length at the July 14, 1983, HRA meeting. He stated he was not present at that meeting because of business out of town, but he had the opportunity to go through the document and had the opportunity to talk with Sid Inman and Jim Casserly about some of the questions he had. He stated that, at this time, he was satisfied that all his questions were answered adequately. Mr. Prieditis stated he was also satisfied with the concepts in the document. Mr. Commers stated the HRA does retain control over the use of this vehicle on an individual project basis to determine whether it should be made available or not. There is also a great deal of flexibility within the terms of the document as to what the HRA might and might not do. Mr. Coroners stated that if the HRA does have some excess tax increment monies, his concern has been what they are going to be able to continue to do with those funds or whether they are goin§ to be obligated to make any commitment to the reserve fund with tax increment excesses. Was he correct in understanding that th they want, one of are not required to ose excesses can be used by the HRA in any manner or mode which could be contributions to the reserve fund, but they contribute to the reserve fund? SPECIAL HOUSING & REDEVELOPMENT AUTHORITY MEETING, JULY 21, 1983 PAGE 3 Mr. Casserly stated that was correct. Actually, they are not excesses because they have been part of the HRA plan and all the HRA is really doing is amending their whole finance plan to allow the reserve system to be an opportunity. They really do have a plan for the use of those funds. The funds just happen to be a�eilable at this time because they have not been spent, but.they are part of the overall plan. Mr. Casserly stated there are three resolutions which must be adopted to establish the basic structure of the Fridley financing system. These are (1) Resolution Establishing a General Reserve Fund; (2) Resolution Establishing the Industrial Development Bond Account in the General Reserve Fund; and (3) Basic Resolution and Indenture in setting up the rules and regulations. MOTION BY MS. SVENDSEN, SECONDED BY Ali?. pl?IEDITIS, TO ADOPT RESOLUTION NO. HRA 12 -83 THE RESOLUTION ESTABLISHING A GENERAL RESERVE FUND. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. • MOTION BY MS. SVENDSEN, SECONDED BY MR. PRIEDITIS, TO ADOPT RESOLUTION NO. HRA 13 -83 THE RESOLUTION ESTABLISHING THE IDB ACCOUNT AS A SPECIAL ACCOUNT IN THE GENERAL RESERVE FUND. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. MOTION BY MR. PRIEDITIS, SECONDED BY MS. SVENDSEN, TO ADOPT RESOLUTION NO-HRA 14 -83 THE BASIC RESOLUTION AND INDENTURE IN SETTING UP THE RULES AND REGULATIONS. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. Mr. Casserly stated there was one final short resolution which was an administra- tive one. The HRA will be seeing a number of .these kinds of things that deal with the mechanics of the system. This resolution deals with authorizing the Executive Director to administratively call for the publication of a public hearing. The reason for this is because the HRA meets once a month and they have to meet to call for a public hearing, they could end up with very long time lines for the issuance of IDB's. If the Executive Director is allowed to pub- lish the notice, it simply gets the issue moving. Mr. Commers stated that whenever someone comes in with- a project, is the HRA automatically required to have a public hearing? • Mr. Casserly stated they were not. SPECIAL . HOUSING & REDEVELOPMENT AUTHORITY MEETING JULY 21 1983 PAGE 4 Mr. Commers stated he had no objection to this resolution, but his question was who was going to determine whether or not there is going to be a public hearing. Would that be after the HRA has decided that a project is worthy of being considered for this kind of financing? Mr. Casserly said that what.the HRA is going to have to ultimately do is develop some guidelines for those projects they think should be part of the system. This is something the HRA will evolve over a period of time. The HRA has mostly rules, not strict regulations. His impression from . working in other places is that Staff tends to be even more conservative in bringing things forward than the people who are the policy makers. Mr. Commers stated he would not like the Executive Director to call for a public hearing and go to the expense and trouble to have a public hearing if, for any reason, the HRA members would have any reservations about whether a project was worthy of this kind of financing. Mr. Boardman stated that in most cases, the HRA is going to be involved in a project long before they get into ID 0s. Mr. Commers stated maybe there should be some guidelines that have to be met before a public hearing is noticed. Mr. Boardman stated maybe some type of statement should be put into the resolu- tion stating that the Executive Director will notify the HRA of the intent to call for a public hearing. MOTION BY MR. PRIEDITIS, SECONDED BY MS. SVENDSEN, TO AMEND RESOLUTION NO. HRA -15 -83 TO ADD A STATEMENT THAT THE EXECUTIVE DIRECTOR WILL CALL FOR A PUBLIC HEARING ONLY AFTER NOTIFICATION TO THE HRA, AND TO ADOPT THE RESOLUTION AS AMENDED. Mr. Commers asked Staff to amend the resolution. o UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. ADJOURNMENT: Chairperson Commers declared the July 21, 1983, special Housing & Redevelopment Authority meeting adjourned at 5:30 p.m. Respectfully s mitted, • y Saba Recording Secretary