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HRA 02/06/2003 - 00027922CITY OF FRIDLEY HOUSING AND REDEVELOPMENT AUTHORITY MEETING FEBRUARY 6, 2003 CALL TO ORDER: Chairperson Commers called the February 6, 2003, Housing and Redevelopment Authority meeting to order at 7:32 p.m. ROLL CALL: Members Present: Larry Commers, John Meyer, Pat Gabel, Virginia Schnabel. Members Absent: Jay Bajwa Others Present: Grant Fernelius, Assistant HRA Director Scott Hickok, Community Development Director APPROVE THE JANUARY 9, 2003, HOUSING AND REDEVELOPMENT AUTHORITY MEETING MINUTES: Ms. Schnabel asked that on page 2, line 2, the word "note" be changed to "not." MOTION BY Ms. Schnabel, seconded by Ms. Gabel, to approve the minutes as corrected. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. CONSENT AGENDA 1. CLAIMS AND EXPENSES: MOTION by Mr. Meyer, seconded by Ms. Schnabel, to approve the consent agenda. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. ACTION AGENDA 2. RATIFY ACTION TO PROCEED WITH MARKET VALUE ANALYSIS BY GVA MARQUETTE ADVISORS FOR GATEWAY WEST: Mr. Fernelius stated that GVA Marquette Advisors is a real estate consulting firm that is based in Minneapolis. They provide a range of real estate-related services to clients that include cities, developers, and other business. Staff is recommending that the HRA hire this company to do a market analysis of the Gateway West project. The scope of this study will actually focus on the mixed-use scenarios talked about which would be the residential and retail offices. The purpose of the study is to understand whether there is demand for up to 90 units of condominiums, up to 18 units of townhomes, and over 50,000 square feet of office/retail space. The analysis would include information about prospective buyers, the price range of units, and the types of retail or office tenants that would occupy the development. HOUSING & REDEVELOPMENT AUTHORITY MEETING, FEBRUARY 6, 2003 PAGE 2 Mr. Fernelius pointed out that while no decisions have been made about the Gateway West project, it is important to at least look at the largest scenarios to determine whether it is even feasible. This was discussed briefly at the HRA/City Council joint meeting; and, subsequent to that, staff had talked to the HRA Chair and Executive Director about the importance of moving ahead on this study in order for it to be ready for the March 6 meeting. Staff did proceed and gave GVA Marquette Advisors the green light to go ahead with the understanding that they would have the action ratified by the HRA. It is not staff's normal practice; but, given the time restraints, staff felt they had to get moving on it. Therefore, staff recommends that the HRA approve the contract with GVA Marquette Advisors which has a value of $12,500. Mr. Meyer asked to what extent will this firm try to assess the need for office space in light of the office space already vacant in Fridley. For instance, the Fridley Plaza building, the Target Center, the building at Moore Lake Commons, etc., have vacant office space. Will GVA attempt to assess a picture of that in the City of Fridley, and in the surrounding cities, too, and advise the HRA on the feasibility of this? Mr. Fernelius staffed staff inet with a member of GVA earlier in the week, and they discussed the scope of the office/retail part. GVA will look at not only what is currently available in the market place in terms of square footage, but what also is actually vacant or available, look at the types of tenants in those spaces, and what the demand would really be from this trade area. They have talked a little bit about the office component and, at this point, that can mean any number of things. It could include doctors, dentists, etc., but it could also include a mix of restaurant/food service type uses. So, there really is a mix. It is kind of a unique situation but definitely the intent is to determine whether there is a demand for any kind of space, given the fact that they are looking at about 50,000 square feet. The HRA can then evaluate that information and determine whether this type of development is appropriate. Mr. Meyer asked if GVA has a good handle on the actual demand for office space in the Fridley area. Mr. Fernelius replied part of GVA's responsibility is to talk to brokers and see what is available in the marketplace. They are connected or plugged into the real estate market, and they have contacts that they will explore to basically assess what kind of demand there would be for that type of use. Mr. Meyer stated it sounded like a lot of work for the number given. Mr. Hickok stated they also have the benefit of the joint study that was done with Columbia Heights about the impact of Medtronic and the development area that surrounds Medtronic, and they will be using that also as a tool to understand a little bit about what another analyst has said. So they really have kind of an advantage right now in that they have had some market analysis done that helps further their cause, and he thinks they found that to be very beneficial to them. Mr. Meyer asked if that joint Fridley/Columbia Heights study ever crystallized in terms of a final report. Mr. Hickok stated the final report is actually in three components right now. It is the demographics study that was completed by the demographic analyst. There is the market study that was done by Bonz REA, and then there is the planning piece, which ties it all together in a package by Mark Koegler's firm, Hoisington Koegler Group, in Minneapolis. HOUSING & REDEVELOPMENT AUTHORITY MEETING, FEBRUARY 6, 2003 PAGE 3 Mr. Hickok stated that to answer Mr. Meyer's question quickly and to the point, no, it is not in the one final report stage. It is in those three component pieces. One of the issues that they had with basically tying it into one package was that Columbia Heights really expressed an interest in not going further if the study revealed, as the draft did, that the ripple on the water wasn't going to be as big from the stone that was thrown in, and that was Medtronic. Instead they felt comfortable with the information that had already been provided and, in that form, they were okay with it. So, he guessed if there was a down side to having a joint task force, it is that you hope that the entire group will carry out to the finish line the product that you hope for. He has talked to Hoisington Koegler about that and, in spite of Columbia Heights' resistance to go any further, he was informed that the City of Fridley would like the final document that ties those three pieces together. Mr. Meyer asked if those three pieces would be available as a resource to GVA Marquette Advisors. Mr. Hickok replied that, yes, the basic elements have already been provided for them, so they understand what it is. Right now it is tying into a nice readable package that the public can enjoy. This is the piece that he needs to still get from their consultant on that package. Ms. Gabel asked if that data is still timely. Mr. Hickok replied, yes. As a matter of fact the demographic information they have was from the 2000 census, and it was basically massaged through the year 2001. The recommendation of their demographic consultant is that every other year, they would come back and take a look at that demographic data and, at a relatively low cost, update the demographics on an alternating year format. At a future meeting, staff would like the HRA to consider updating the demographic data and making sure they are staying current on that information, because the expensive part was basically creating the platform for them to keep it updated on an alternating year basis. Demographic data is only as good as its current legitimacy. Mr. Commers asked if all this information would be put it into a final form and made available to the Authority so they can have it when they make the decisions on Gateway West. Mr. Hickok stated that if the HRA prefers that, they can do that. They really don't have to wait for anyone else on this, and he would be glad to get back to Hoisington Koegler and say the HRA wants something tied together for the March meeting. Mr. Commers stated that as long as the information is being given to the consultant, the HRA should also have a chance to review it and see what it looks like in case they have questions about it. MOTION by Mr. Meyer, seconded by Ms. Gabel, to approve the consulting agreement with GVA Marquette Advisors for Gateway West. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. 3. CONSIDER PROPOSALS FOR PROPERTY VALUE ANALYSIS AND ESTIMATES FOR RELOCATION COSTS: Mr. Fernelius stated staff is requesting authorization to hire Lake State Realty Services, based out of White Bear Lake, to provide them with an analysis of the acquisition costs for the Gateway West project. They have used this company in the past for appraisal services related HOUSING & REDEVELOPMENT AUTHORITY MEETING, FEBRUARY 6, 2003 PAGE 4 to the acquisition of other properties, both the Gateway East project, as well as a somewhat scattered site acquisition. The main purpose of this study is to refine the HRA's acquisition estimates. They have been operating on some assumptions, using estimated market values for tax purposes; but they don't really have any kind of solid numbers in terms of what the cost might be in actual dollars. So, this really isn't a full blown appraisal, they won't be going into the properties, they are going to more or less look at some comparables, what is for sale on the marketplace right now, and try to provide a sort of range for the single family, the apartments, and commercial properties that are in the project area. Mr. Fernelius stated they have used a similar method called a"limited market value appraisal" on previous projects. Really this information is going to be helpful regardless of the size of the project, because they are going to get acquisition numbers on each property and, more or less, get a range of cost estimates. Julie Schwartz, owner of Lake State Realty Services, has prepared an estimate of between $3,300 and $3,800. Staff's recommendation is to accept this proposal, not to exceed $3,800. Mr. Fernelius stated that in terms of the relocation consultant, those numbers are not available. Dan Wilson, Wilson Development, is going to be working on that, and some of his analysis ties in with some of the acquisition numbers. Staff is going to wait to get some of that information before they even get an estimate on relocation costs. They are not estimating having to pay Mr. Wilson anything for this analysis. That is relatively easy to do in comparison to actually having to do an appraisal, so there is no separate proposal or recommendation for Wilson Development at this time. That information will be available at the March meeting. The only item to act on this evening will be the Lake State Realty Services. Mr. Commers stated he was interested in what were the values paid per piece and what they actually wound up paying. Mr. Fernelius asked if he was referring to the individual properties. Mr. Commers replied he didn't think she did everything did she? Mr. Fernelius stated she was involved in the appraisal of JR's Automotive, Cash and Pawn, and the duplex. Her appraisals were all below the actual purchase price, and they ranged anywhere from about 6 percent to 20 percent. Mr. Commers asked what was the gross amount that she put on those three parcels and what was the gross amount they paid? Mr. Fernelius replied, $400,000, and they probably paid about $450,000. He stated, again, those are real gross calculations. Mr. Meyer asked if they needed to act on the Wilson Development matter? Mr. Fernelius stated, no, there is nothing to act on this evening. He had indicated that in the memo they would have estimates from him and they don't have the information from them. Mr. Commers asked if the relocation cost will be for the single-family, the multiple residents, and commercial? Mr. Fernelius replied that is correct. HOUSING & REDEVELOPMENT AUTHORITY MEETING, FEBRUARY 6, 2003 PAGE 5 Mr. Commers stated staff may want to take a look at the relocation costs on the apartments up at Christenson Crossing. Ms. Schnabel asked if they had relocation costs for Gateway East? Mr. Fernelius stated, yes, they did. Mr. Commers stated they did, but there weren't any apartments. Mr. Fernelius stated they did have a duplex. MOTION by Mr. Meyer, seconded by Ms. Schnabel, to approve the proposal made by Lake State Realty Services to provide a valuation analysis, not to exceed $3,800. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. INFORMATION ITEMS 4. UPDATE ON GATEWAY WEST PROJECT: Mr. Fernelius stated that since the joint meeting on January 9, they have been working on a number of issues and this really has been a city staff initiative. Engineering, Public Works, and Community Development Department staff have been helping out. So, it really is a team effort and that is critical because there are so many different pieces of this project that they are working on. They have met on at least one occasion with Krass & Monroe about financing options. Their goal is to provide the HRA and City Council with some options and some financing packages that would help accomplish the Gateway West project regardless of the size of the development. Mr. Fernelius stated they have also been working on the tax increment piece. That is going to involve an assessment of the properties that are in the area to make sure they meet the blight test. The Public Works Director, Jon Haukaas, is working on the infrastructure cost. Again, he thinks that is a critical piece, especially when they get to the larger scenarios. They are already aware, at least recently, of the possible utility line relocation as a result of it. Or, something that would affect replacement of the building. So, it's good to get those issues out in front, and Mr. Haukaas has been very helpful. Mr. Fernelius stated a couple of other staff inembers are pursuing outside funding sources. There are a number of agencies out there that offer opportunities to pursue. They are going to get a handle on those, what the requirements are, and what the timelines are in terms of when they would apply so they will have a better sense of making a decision when they meet in March. Mr. Fernelius stated that, finally, they are looking at the land use issues. They would like to make a couple of modifications to the site plans. These are not significant changes, but are small things like streets and other things that don't quite connect properly. They want to clean some of that stuff up and repackage it for a second look at the March meeting. The goal is to develop some kind of consensus at the March meeting. Mr. Commers stated he would like to suggest that, if they had to go to an involuntary taking, that Fritz Knaak, City Attorney, look at that. He thinks they should ask him, in terms of the Best Buy- Walser case and the finding that blight did not exist out there; if that has any affect. When you HOUSING & REDEVELOPMENT AUTHORITY MEETING, FEBRUARY 6, 2003 PAGE 6 go ahead with the project, as they know, there is a big case pending against the city on that for damages. And he thinks they have to look at that very carefully in terms of the City's determination of blight. Mr. Fernelius stated that is part of the tax increment analysis that they have talked about; and they plan to have both Fritz Knaak and Jim Casserly help with that. 5. HOME AND GARDEN SHOW: Mr. Fernelius invited the HRA members to the Fifth Annual North Metro Home and Garden Show, on Saturday, March 1, 2003, from 9:00 a.m. until 3:00 p.m. at the Mounds View Community Center. This is a joint effort between the Cities of New Brighton, Blaine, Mounds View, and Fridley. This has been a very successful event in the past. It has been well attended and they have a nice mix of contractors. At this point, they are almost full in terms of contractors and vendors. Normally they are scrambling to fill up the rest of the booths, but this year they have a very good mix of contractors running the spectrum of areas — exterior siding, heating, electrical, plumbing, lawn and gardening type of contractors, home security, financing, etc. One thing they are doing this year that they haven't done in a couple of years is having workshops throughout the day on a number of really exciting topics that include ice dams, mold and indoor air quality, outdoor landscaping, lawn and garden topics, etc. Admission and parking are free. Mr. Meyer asked if there would be a booth on the low financing programs. Mr. Fernelius stated the CEE administrator has a booth brochures and staff to answer questions. Mr. Commers asked if the Home and Garden Show would be televised. Mr. Fernelius replied, no, they have never televised it. In the past, the City's video/audio person, Brian Strand, has been there to take pictures. They should coordinate that again. Mr. Commers stated he believed that if people could see what is going on, it might attract them to come next year. 6. MONTHLY HOUSING REPORT: Mr. Fernelius reported this is the typical report they prepare on loan and grant originations; the loan servicing of our existing portfolio. In the past, the HRA has been concerned about delinquencies, and that information has been included in the packet. They also have information on the Remodeling Advisor and Operation Insulation. Ms. Schnabel asked regarding Operation Insulation, on the number of inquiries into this program, how many have resulted in actually having the work that is recommended? Mr. Fernelius asked if she was asking about the number prior to the month of January? Ms. Schnabel replied, yes. Mr. Fernelius stated he believed it was around 70 actual visits and roughly half actually have the work done. The beneficial piece of this program is that CEE staff can do the inspection, discover the problems, and then also have the ability to fix it. HOUSING & REDEVELOPMENT AUTHORITY MEETING, FEBRUARY 6, 2003 PAGE 7 Ms. Schnabel stated some people may have the work done, but the City is not made aware of it. Mr. Fernelius replied that, yes, some people may choose to do the simpler things, like weather- stripping, rather than hire a contractor. Mr. Commers stated they have also been provided with a memorandum relating to the proposed interest rate change by the Minnesota Housing Financing Agency. What exactly is that change and how will it affect the HRA? Mr. Fernelius replied this is the Discount Loan Program that has been discussed on several occasions. Last month the HRA approved an extension to the contract with CEE for this program. This is where the HRA helps write down the interest rate. The CEE is recommending that they reduce the interest rate, just on this program, from the current 6 percent down to a 5 percent interest rate. They have access to the pool of funds for the Discount Loan Program which would expire at the end of June. Kristin DeGrande has prepared a memorandum which briefly explains what the change is and the suggestion to write down the interest rate from 5 to 6 percent. Right now they have been writing it down from 6%2 to 6 percent, so this would be another percentage point beyond that. They are recommending that they take advantage of that. Mr. Fernelius stated four other cities are also part of this program, and they have all expressed an interest in doing similar write-downs. Staff thinks it is a good thing and, by lowering the interest rate, they can also make it a little more attractive to people. 7. MEDTRONIC'S PETITION FOR PROPERTY VALUATION: Mr. Commers stated they have a memo from Krass and Monroe on this. He assumed the estimated market value for 2002 was based on an uncompleted project as it stands now. He asked whether the estimated market value for phases that are completed per square foot cost are estimated in the memo. Mr. Fernelius stated that is correct. Mr. Commers asked whether they checked to see what they were alleging it should be. Mr. Fernelius stated he did not know. The City's Finance Director, Rick Pribyl, attended a meeting earlier this week about this topic; however, he did not get an update from Mr. Pribyl prior to tonight's meeting. He knows they did talk about the status of Medtronic's appeal. Maybe staff can have a follow-up for the HRA at the next meeting. Mr. Commers asked if the City appraises that or is that appraised by the County. Mr. Fernelius stated he believed the commercial was appraised by the County, but he could verify that. Mr. Hickok stated that regarding Medtronic's alleged position right now, from his discussion with Mr. Pribyl, they have come in with a value of $80 per square foot. Mr. Commers stated that is good to know and that, at least according to their analysis here, so would that mean the column on page 2, involving the administrative fee of 10 percent and the land sale turns out to be the $171 at their number now? And, currently, we are getting $111 based on the incomplete project? HOUSING & REDEVELOPMENT AUTHORITY MEETING, FEBRUARY 6, 2003 PAGE 8 Mr. Fernelius stated that for this year he believed they are projected to receive $326,000. That is the current valuation of about $150 per square foot. That is his understanding of what these numbers are. Mr. Commers inquired, that he means that is by taxes payable in 2003? Mr. Fernelius replied, that is the net amount that the HRA is to recoup from Medtronic. Mr. Commers asked, on tax payments they make in 2003? Mr. Fernelius replied, yes. Mr. Commers inquired, so that is based on the value of January 2, 2002. Mr. Fernelius replied, yes. Mr. Commers stated, that is why on the first page, it says January 2. Mr. Fernelius stated they were fully valued as of January 1, 2002. Mr. Meyer asked what kind of a factor is there between actual cost and assessed valuation on commercial in the City? Mr. Hickok replied it is within 10 percent of the value. Mr. Commers asked, is that the appraisal the City puts on it? Mr. Meyer stated, for tax purposes, when they appraise it for tax purposes vs. the actual value. Mr. Commers asked, that would be for the cost to construct it? Mr. Meyer stated, and minus depreciation. If they (Medtronic) are claiming they have $80 per square foot building, there is 100 percent ratio difference between actual cost and just valuation cost... Mr. Fernelius replied that he didn't know what their argument is and he has not been privy to that discussion. He did not know how they are trying to justify that $80 per square foot amount. Mr. Meyer asked about the county, if they were the assessors, then maybe Medtronic is looking county-wise at what other commercial real estate is appraised at. Maybe there is a heavy ratio out county-wise. He didn't know that they have that sort of ratio difference in the City. Mr. Commers replied that he didn't think they do. He would think they could even look broader. They can probably look at corporate headquarters, metropolitan wide. He is not sure there would be. Maybe Best Buy, thinking of a corporate campus. He thinks any kind of reasonable corporate headquarters similar in size. Mr. Meyer stated H.B. Fuller in Vadnais Heights is a huge corporate headquarters. Mr. Commers replied that appraisers might try it to that. It is not necessarily a predictor of fair market value. HOUSING & REDEVELOPMENT AUTHORITY MEETING, FEBRUARY 6, 2003 PAGE 9 Mr. Meyer commented to go from, say $150 which is probably a low figure, down to $80 — that is quite a stretch. Mr. Commers commented that is why they have to have an appraiser that will certify that and, he assumed that is where they came in on that, that is the position from which is being negotiated. Ms. Schnabel asked if this goes through the court? Mr. Commers replied, yes, it goes through tax court. Mr. Meyer asked, it is the same procedure as for residents, isn't it? Mr. Commers replied, yes, it is. They have an appraiser and witnesses and the tax court judge will determine what the fair value is. Mr. Hickok asked to add regarding Mr. Commers' question about the appraiser, or who does the assessing initially — the city or the county, he just wanted to clarify (and he learned this from talking to Mr. Pribyl too) that initially the City does that. Mary Smith in the assessing department, she is the city assessor, she puts the value on there and this is certainly county and certainly regional interest and so, from the point of that original assessment, it has really been a close team approach between the City assessing division and the county assessors. Really the eyes of the world have been on this project and this value because, as said by Mr. Commers, there really aren't a lot of world headquarters being built right now and so the comparables are something to look at very, very closely as they get new ones. So, there are lots of people interested in this and they will certainly keep them posted as it unfolds. 8. INFORMAL STATUS REPORTS Mr. Fernelius wanted to alert the Authority to a proposal they recently became aware of by the Anoka County HRA. They are in the process of drafting special legislation which would essentially rename the HRA to the Anoka Community Development Authority. Essentially this would be the economic development authority or EDA. He hasn't been real close to the discussions but, from what he understands, part of this comes out of a study that was done last year in an effort to promote more economic activity in the county. The net impact for cities like Fridley, is that the county is planning to use this EDA Authority to levy a tax, an EDA tax in communities like Fridley. Currently the Anoka County HRA does not levy in Fridley. There are also other communities where the Anoka County HRA does not levy, and those are communities which already have an existing HRA and have their own HRA levy. So, this would essentially be a levy on top of what the Fridley HRA already has. From the county's perspective this would generate a considerable amount of revenue for that; potentially up to $3 million countywide is what they could levy if they can use their EDA authority. The county told them they don't plan on levying to the maximum at this point. They are looking at something in the range of $800,000; but he thinks the significant thing for the City is that they would essentially be levying in Fridley where they had not done that previously. It doesn't necessarily impact the HRA, by the county coming in, it doesn't mean that the City's HRA can no longer levy; but what it does do is places an additional tax out there that people have to pay. So, he thinks it is an issue that has fairly far-reaching policy implications. The staff has been communicating with the Council and they are not certain what there is for them to do. He just wanted to bring this to the Authority's attention so they are aware of it and that he will keep them updated on it. Mr. Commers replied, they have been through some similar things like that with the county HRA at one time, that was their intention to have a countywide HRA and he thought there was some HOUSING & REDEVELOPMENT AUTHORITY MEETING, FEBRUARY 6, 2003 PAGE 10 issue as to whether the local community charters would continue with any kind of programs. He thought the compromise of that was the Anoka County HRA would not levy in those cities where there was an existing city HRA. That is what has happened isn't it? So, he doesn't know how by changing their name they get around that. That is all they are doing, from what Mr. Fernelius is telling them, is changing their name. He is not sure they are changing any part of their constitution or legal authority or anything of that nature. Mr. Fernelius replied there is special legislation they have brought forward which would grant them specific economic development power so they would become an EDA. The name would be called Community Development Authority, but basically the enabling legislation would be the economic development authority statute, so they would have all of the EDA powers and, as he understood it from talking to Jim Casserly, it appears (and they need to confirm this) that they would essentially sort of be exempt from the local approval requirement, at least for the levy part. In effect, that is what they would be doing. So, typically, in other parts of the state where there is a county economic development authority, each city has to approve the levy for that community. The special legislation they have drafted more or less exempts from having to do that. Mr. Commers stated it would also seem to him that would place the greater burden on those cities that are already developed and the problems it would be generating would be calling to assist the underdeveloped economic communities in the county. Mr. Fernelius stated there is no doubt a significant amount of tax capacitor or tax basin cities like Fridley they have not tapped into. Mr. Commers commented there is little need or use for those kinds of funds in Fridley. Mr. Fernelius stated that is what the funds are used for. If they are to be used for redevelopment, they would definitely have a use for it; but if it's for pure economic development, constructing buildings in corn fields, obviously that is a different story. And, not that there is no need for that in the county, he doesn't want to minimize the importance of that. But it is a significant issue for cities like Fridley. Mr. Commers commented, can't we take care of it ourselves? Mr. Fernelius replied, and have our own levy. Mr. Meyer stated as he recalls, the cap once was around $10 a year from residents. Mr. Fernelius stated that might have been when they initially started the program. It has probably gone up since then. But it is a fraction of 1 percent — it is a very small amount. Mr. Meyer stated that on the tax statement, he thought it was around $10 to $15... Mr. Commers stated it was around $150,000. Mr. Fernelius stated they are at about $250,000 now. Mr. Meyer calculated with the residents they have now. Mr. Hickok commented that is a little over 11,000 now. Mr. Meyer estimated about $20 on the average. HOUSING & REDEVELOPMENT AUTHORITY MEETING, FEBRUARY 6, 2003 PAGE 11 Mr. Fernelius stated the EDA levy rate is higher than the HRA's. Mr. Meyer stated except if they hold it down to a minimum over there, there is a maximum they tax for. Mr. Commers asked who is making the decision on this, the county commissioners or who do they go to if they want to raise some issues? Mr. Fernelius replied, probably the county commissioners. They have just learned about this in the last few days. And they have also talked to several other communities, and they are all in the same position, it is something that is relatively new, they haven't had a chance to analyze it. The first blush reaction is that they are concerned about it. The City of Anoka has actually taken the step of passing a resolution in opposition to it. At a minimum he would say that is something they could consider. The city council is ordinarily the body that would consent to a tax levy of this type under normal circumstances and, in this case, the county circumvents that process or would. He would think the Council would be interested in providing input on that. They haven't had a chance to talk to the Council yet about that. Mr. Commers asked that maybe they could report back to them at the next meeting with what is the status and after consulting with staff as to what they are trying to accomplish. Mr. Meyer replied that those areas seem to be doing pretty good themselves. He asked Mr. Fernelius where does he suppose the push was coming from? Mr. Fernelius replied, Burns, East Bethel. Mr. Meyer thought those places are doing quite well. Mr. Fernelius stated that at least for the record he should say the county has told them so far that their plans for this new EDA levy would be primarily for marketing and promotion of the county. That would prohibit them of course from doing projects, but they see their role as kind of a facilitator to bring development to the county and then let the cities kind of do the rest. So, that is at least what their intent is at this point. Mr. Commers replied, but to the extent they are going to bring it, wouldn't they think that where they are going to capture that should be the ones to pay for it since that would help that municipality on their tax base. It seems there are a lot of policy issues there. Ms. Gabel asked which legislative body do you think told them to do that? The county commissioners or did they get that from... Mr. Fernelius and Mr. Hickok replied, the state. Mr. Commers replied, it's a special bill for them. Mr. Fernelius stated they do not yet have an author but they have drafted the legislation and have met with the legislative delegation. ADJOURNMENT MOTION by Ms. Gabel, seconded by Ms. Schnabel, to adjourn the meeting. HOUSING & REDEVELOPMENT AUTHORITY MEETING, FEBRUARY 6, 2003 PAGE 12 UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED AND THE FEBRUARY 6, 2003, MEETING OF THE HOUSING AND REDEVELOPMENT AUTHORITY ADJOURNED AT 8:30 P.M. Respectfully submitted, Denise M. Letendre, Recording Secretary