HRAM 12/03/2015 CITY OF FRIDLEY
HOUSING AND REDEVELOPMENT AUTHORITY COMMISSION
December 3,2015
Call to Order:
Chairperson Commers called the HRA Meeting to order at 7:04 p.m.
Roll Call:
MEMBERS PRESENT: Lawrence Commers
Pat Gabel
Stephen Eggert
William Holm
Gordon Backlund
OTHERS PRESENT: Paul Bolin, HRA Assistant Executive Director
Darin Nelson, Finance Director
Wally Wysopal, City Manager
Jim Casserly, Development Consultant
ACTION ITEMS:
1. APPROVAL OF EXPENDITURES
MOTION by Commissioner Holm to approve the expenditures. Seconded by Commissioner
Backlund.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED
THE MOTION CARRIED UNANIMOUSLY
2. APPROVAL OF NOVEMBER 5, 2015 MEETING MINUTES
MOTION by Commissioner Eggert to approve the minutes as presented. Seconded by
Commissioner Gabel.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED
THE MOTION CARRIED UNANIMOUSLY
3. APPROVAL OF 2016 BUDGET
Darin Nelson, Finance Director, stated that the budget is the same as what was reviewed in
November. There were a few changes; one is the decertification of TIF District 16. All the prior
administrative expenses have been repaid and it is time to decertify this district. There will be
some excess increment that will be remitted to Anoka County for approximately $10,054 to zero
out the fund balance and close out that district. The second change is a transfer from the Onan
Housing and Redevelopment Authority Commission Meeting of December 3, 2015 2
district that is decertified as well. The excess increment to be transferred is $225,000 to Gateway
West and $100,100 to Gateway East.
Commissioner Gabel noted that Gateway East is showing $225,000 and Gateway West shows
$101,100. She asked if the amounts were in the wrong place.
Mr. Nelson replied that the memo is incorrect; the number is right but the name is wrong.
Mr. Nelson continues that the other transfer is University and Osborne to Northstar District in
the amount of$18,119 this year. Staff recommends the Authority approve the budget for 2016.
Chairperson Commers asked about the capital outlay payments in the General Fund that will
eventually be transferred and become a TIF fund.
Mr. Nelson replied that is correct; for the Columbia arena site. Currently there is not a TIF
district for that site and expenses are being tracked in the general fund and will be transferred
when the district is created.
Chairperson Commers asked if the Authority was required to make interest payments on the
loan from the city or if it would accrue over a period of time.
Mr. Nelson replied that the interest is applied to the principal balance and will eventually need
to be paid but no payment is required at this time.
Commissioner Gabel noted that the Authority may not need to repay that depending on what
happens down the road with that site.
Mr. Nelson replied correct.
Commissioner Gabel asked on the last page under hazardous substance district BAE what the
other services charges were in the amount of$1,000.
Mr. Nelson replied that was for the MPCA regulatory fees.
MOTION by Commissioner Gabel to approve the 2016 Budget. Seconded by Commissioner
Eggert.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED
THE MOTION CARRIED UNANIMOUSLY
4. APPROVAL OF RESOLUTION DECERTIFYING TIF DISTRICTS #9 AND #16
Paul Bolin, HRA Assistant Executive Director, stated that the Onan district was created in 1989
and consisted of 400,000 sq. ft. of office and warehouse space which created 140 jobs. The
value of this property was increased from $2M to $15M. This district expires December 31,
2015.
Housing and Redevelopment Authority Commission Meeting of December 3, 2015 3
Mr. Bolin stated that TIF District #16, 57�h Avenue, was created in 1997 to help fund a small
shopping center at the corner of Main Street and 57t"Avenue. This helped remodel a Good Year
Center, landscaping, decorative fencing and lighting. The value of the parcels involved
increased from $500,000 to $1.Sm. This district doesn't naturally decertify at this time but all
obligations have been met. This does not have poolable funds so the district needs to be
decertified. Staff recommends approval to decertify both of these districts.
MOTION by Commissioner Backlund to approve the Resolution Decertifying TIF Districts #9
and #16. Seconded by Commissioner Gabel.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED
THE MOTION CARRIED UNANIMOUSLY
5. APPROVAL OF RESOLUTION AUTHORIZING TRANSFER OF FUNDS
BETWEEN TIF DISTRICTS
Darin Nelson, Finance Director, said that as the year draws to a close the Authority needs to
address the interfund loans and transfers. The following transfers and repayments need to take
place before year-end.
TIF #9 (Onan) decertifies on December 31, 2015 and excess fund balance is able to be
transferred to other TIF districts with identified costs. Therefore the recommendation is
to transfer $225,000 from TIF #9 to FIT#17 (Gateway East). The remaining balance
within TIF #9 of approximately $101,100 will be transferred to TIF #18 (Gateway West).
Transfer approximately $18,119 from TIF #11 (University/Osborne) to TIF #22 �
(Northstar) to cover this district's deficit fund balance at 12/31 15. This transfer covers
expenditures incurred within the Northstar district from 2013-2015.
Mr. Nelson said that staff recommends the Authority adopt a resolution ratifying a transfer of
remaining funds from TIF District#9 (Onan) to TIF District#17 (Gateway East) and TIF District
#18 (Gateway West) in the amounts of$225,000 and the remaining balance of approximately
$101,000, respectively. Staff further recommends the transfer of approximately $18,119 from
TIF #11 to TIF #22 to cover the estimated yearend fund balance deficit.
Commissioner Backlund noted on the memo the date should be 2015 not 2105.
MOTION by Commissioner Gabel to approve the Resolution Authorizing Transfer of Funds
between TIF Districts. Seconded by Commissioner Eggert.
UPON A VOICE VOTE,ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED
THE MOTION CARRIED UNANIMOUSLY
6. APPROVAL OF MOTION AUTHORIZING TRANSFER OF FUNDS FROM
CERTAIN TIF DISTRICTS TO THE HRA GENERAL FUND
Darin Nelson, Finance Director, noted to make the following payments to accurately reflect
reductions in outstanding due to and due from balances for various TIF Districts.
Housing and Redevelopment Authority Commission Meeting of December 3, 2015 4
Due to other Funds Fund O50 57`h Avenue - $20,760
Fund O51 Gateway East - $250,000
Fund 052 Gateway West - $140,000
Fund 057 Northstar - $12,000
Due from other Funds Fund 001 General Fund - $20,760
Fund 001 General Fund - $250,000
Fund 001 General Fund - $140,000
Fund 001 General Fund - $12,000
Staff recommends the transfers as listed above.
Chairperson Commers asked if the funds would go into the general fund and then transfer to
the districts.
Mr. Nelson replied that if there is a negative fund balance the general fund will cover it.
MOTION by Commissioner Backlund to approve the Transfer of Funds from certain TIF
Districts to the HRA General Fund. Seconded by Commissioner Gabel.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED
THE MOTION CARRIED UNANIMOUSLY
INFORMATIONAL ITEMS
1. HOUSING LOAN PROGRAM UPDATE
Paul Bolin, HRA Assistant Executive Director, reported that in November no loans were closed
making 6 year to date and there were also no remodel adviser visits making three year to date.
There were 17 Home Energy Squad visits making 115 year to date.
ADJOURNMENT
MOTION by Commissioner Holm to adjourn. Seconded by Commissioner Eggert.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON PRO TEM GABEL
DECLARED THE MOTION CARRIED AND THE MEETING ADJOURNED AT 7:33
P.M.
Respectfully Submitted,
�
Krista Peterson
Recording Secretary