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,J ANDOVER ECONOMIC DEVELOPMENT AUTHORITY
COUNTY OF ANOKA
STATE OF MINNESOTA
RES. NO. EDA-008-00
A RESOLUTION ADOPTING MODIFICATIONS TO THE DEVELOPMENT
PROGRAM FOR DEVELOPMENT DISTRICT NO. 1 AND MODIFICATIONS TO
THE TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING
DISTRICT NO. 1-1.
WHEREAS, it has been proposed that the Board of Commissioners (the "Board") of the
Economic Development Authority (the "EDA") for the City of Andover (the "City")
adopt Modifications to the Development Program for Development District No.1 and
adopt modifications to the Tax Increment Financing Plan for Tax Increment Financing
District No, 1-1, (collectively, the "Modifications"), all pursuant to and in conformity
with existing law, including Minnesota Statutes, Sections 469.090 through 469.1081, and
Sections 469.174 to 469.179, inclusive, as amended, all as reflected in the Modifications
and presented for the Board's consideration; and
WHEREAS, the EDA has investigated the facts relating to the Modifications and has
caused the Modifications to be prepared; and
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WHEREAS, the proposed developments as described in the Modifications, in the opinion
of the ED A, would not reasonably be expected to occur solely through private investment
within the reasonable foreseeable future and, therefore, the use of tax increment financing
is deemed necessary; and
WHEREAS, the EDA has performed all actions required by law to be performed prior to
the adoption of the Modifications, including but not limited to, notification of Anoka
County and School District No. 11 having taxing jurisdiction over the property to be
included in Tax Increment Financing District No 1-1, a request for review of and
comment on the Modifications by the City Planning and Zoning Commission, and a
public hearing held by the City Council on June 20, 2000 following published notice as
required by law.
NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of the
Andover Economic Development Authority as follows:
1. The EDA hereby finds that Tax Increment Financing District No. 1-1 as
modified herein is in the public interest and is a "redevelopment district"
under Minnesota Statutes, Section 469.174, subd. 10 (a)(l) and finds that the
adoption of the proposed Modifications will advance the EDA's and City's
\ objectives of encouraging development within Development Di,strict No.1.
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. ) 2. The EDA ratifies and affirms the findings and public purpose contained in the
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City Council resolution adopting the Modifications.
3. Conditioned upon the approval thereof by the City Council following its
public hearing thereon, the Modifications, as presented to the EDA on this
date, are hereby approved and adopted and shall be placed on file in the office
of the City Clerk.
4. Upon approval of the Modifications by the City Council, the staff, the EDA's
advisors and legal counsel are authorized and directed to proceed with the
implementation of the Modifications and for this purpose to negotiate, draft,
prepare and present to this Board for its consideration all further plans,
resolutions, documents and contracts necessary for this purpose. Approval of
the Modifications does not constitute approval of any project or a
Development Agreement with any developer.
5. Upon approval of the Modifications by the City Council, the City
Administrator is authorized to forward a copy of the Modifications to the
Minnesota Department of Revenue pursuant to Minnesota Statutes 469.175,
subdivision 2.
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,--j 6. The City Clerk is authorized and directed to forward a copy of the
Modifications to the Anoka County Auditor, all in accordance with Minnesota
Statutes 469.177.
Approved by the Board of Commissioners of the Andover Economic Development
Authority this 20ti! day of June, 2000.
ATTEST: CITY OF ANDOVER
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ANDOVER ECONOMIC DEVELOPMENT AUTHORITY
COUNTY OF ANOKA
STATE OF MINNESOTA
RES. NO. EDA 007-00
A RESOLUTION ADOPTING BUSINESS SUBSIDY CRITERIA.
WHEREAS, Minnesota Statutes, Sections 1161.993 through 116J.995 (the "Statutes")
require the adoption of criteria for the granting of business subsidies as defined in the
Statutes; and,
WHEREAS, the Andover Economic Development Authority (the "EDA") has determined
that it is necessary and appropriate to adopt business subsidy criteria pursuant to the
Statutes; and,
\ WHEREAS, the EDA has performed all actions required by law to be performed prior to
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the adoption and approval of the proposed business subsidies, including the holding of a
public hearing upon published notice as required by law on June 20, 2000.
NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of the
Andover Economic Development Authority that the business subsidy criteria, contained
in Exhibit A of this resolution are hereby approved, ratified, established, and adopted and
shall be placed on file in the office of the City Clerk.
Adopted by the EDA of the City of Andover on this 20ili day of June 2000.
ATTEST: CITY OF ANDOVER
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~~ EXHIBIT A
Andover Economic Development Authority
Business Subsidy Criteria
June 20, 2000
1 PURPOSE AND AUTHORITY
1.1 The purpose of this document is to establish the criteria for the Andover Economic
Development Authority (the Grantor) for granting of business subsidies for private
development. These criteria shall be used as a guide in the processing and reviewing
applications requesting business subsidies.
1.2 The EDA's ability to grant business subsidies is governed by the limitations established in
Minnesota Statutes ll6J.993 through 1161.994 (the Statutes).
1.3 Unless specificallr exc1udedby the Statutes, business subsidies include grants by state or
local government agencies, contributions of personal property, real property,
infrastructure, the principal amount of a loan at rates below those commercially available
to the recipient of the subsidy, any reduction or deferral of any tax or any fee, any
guarantee of any payment under any loan, lease, or other obligation, or any preferential
use of government facilities given to a business.
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1.4 These criteria are to be used in conjunction with other relevant policies of the Grantor.
1.5 The EDA may deviate from these criteria by documenting in writing the reason(s) for the
deviation. The documentation shall be submitted to the Department of Trade and
Economic Development with the next annual report.
1.6 The Grantor may amend this document at any time. Amendments to these criteria are
subject to public hearing requirements contained in the Statutes.
2 PUBLIC PURPOSE REQUIREMENT
2.1 All business subsidies must meet a public purpose.
2.2 The creation or retention of jobs may be, but is not required to be, a public purpose for
granting a subsidy. The determination that jobs are not a public purpose for the subsidy
and that the related wage and job goals are zero shall be made following a public bearing.
2.3 Job retention may only be used as a public purpose in cases where job loss is specific and
demonstrable. The EDA shall document the information used to determine the nature of
the job loss,
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<) 2.4 The creation of tax base shall not be the sole public purpose of a subsidy.
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j 2.5 The wage floor for wages to be paid for the jobs created shall be the State minimum wage
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in effect at the time the subsidy is granted. The EDA will seek to create jobs with higher
wages as appropriate for the overall public purpose of the subsidy.
3 BUSINESS SUBSIDY APPROVAL CRITERIA
3.1 All new projects approved by the EDA should meet the following minimum approval
criteria. However, it should not be presumed that a project meeting these criteria will
automatically be approved. Meeting these criteria creates no contractual rights on the part
of any potential developer.
3.2 To be eligible to receive a business subsidy, the recipient must meet the following
minimum requirements: í:.
a. The subsidy must achieve a public purpose.
b. The project must comply with local plans and ordinances.
c. The recipient shall provide information demonstrating that granting the
subsidy is necessary for the proposed development to occur.
d. The recipient enters into an agreement pursuant to these criteria and the
Statutes.
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/ ) 3.3 The business subsidy shall be provided within applicable state legislative restrictions,
debt limit guidelines, and other appropriate financial requirements and policies.
3.4 The project must be in accord with the Comprehensive Plan and Zoning Ordinances, or
required changes to the plan and Ordinances must be under active consideration by the
City of Andover at the time of approval.
3.5 Business subsidies will not be provided to projects that have the financial feasibility to
proceed without the benefit of the subsidy, In effect, business subsidies will not be
provided solely to broaden a developer's profit margins on a project. Prior to ,,"
consideration of a business subsidy request, the Grantor may undertake an independent
underwriting of the project to help ensure that the request for assistance is valid.
3.6 Prior to approval of a business subsidy, the developer shall provide any required market
and financial feasibility studies, appraisals, soil boring, information provided to private
lenders for the project, and other information or data that the Grantor or its financial
consultants may require in order to proceed with an independent underwriting.
3.7 Any developer requesting a business subsidy should able to demonstrate past successful
general development capability as well as specific capability in the type and size of
:,,) development proposed.
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I Andover Economic Development Authority June 20, 2000
3.8 The developer must retain ownership of the project at least long enough to complete it, to
stabilize its occupancy, to establish the project management, and to initiate repayrnent of
the business subsidy, if applicable.
3.9 A recipient of a business subsidy must enter into a subsidy agreement with the Grantor as
described in Section 4.
3.10 A recipient of a business subsidy must make a commitment to continue operations within
the City of Andover for at least five years after the benefit date.
3.11 Any business subsidy will be the lowest possible level and least amount of time
necessary, after the recipient maximizes the use of private debt and equity financing first.
4 Subsidy Agreement
4.1 In granting a business subsidy, the Grantor shall enter into a subsidy agreement with the
recipient that provides the information, wage and job goals, commitments to provide
necessary reporting data and recourse for fail to meet goals required by the Statutes.
, , 4.2 The subsidy agreement may be incorporated into a broader development agreement for a
,) project.
4.3 The subsidy agreement will describe the requirements for the recipient to provide the
reporting information required by the Statutes.
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EXTRACT OF MINUTES OF A MEETING OF THE
ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF
ANDOVER, MINNESOTA
HELD: June 20 , 2000
Pursuant to due call and notice thereof, a regular or special meeting of the EDA of the City of
Andover, Anoka County, Minnesota, was duly held at City Hall on June 20 ,2000 at
7:00 0' clo ck--12...m , for the purpose, in part, of authorizing the call of certain outstanding General
Obligation Tax Increment Bonds, Series 1993B,
The following members were present: McKelvey, Knight, Jacobson, Johnson, Orttel
And the following were absent: Hupp, Nowak
Member Jacobson introduced the following resolution and moved its adoption:
RESOLUTION NO. 006-00
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) RESOLUTION AUTHORIZING THE CALL OF CERTAIN OUTSTANDING
GENERAL OBLIGATION TAX INCREMENT BONDS, SERIES 1993B
WHEREAS:
1.01. The City has issued $520,000 General Obligation Tax Increment Bonds, Series 1993B
(the "Series 1993B Bonds") to finance project costs within Development District No. I and, in connection
with the issuance of the Series 1993B Bonds, established a General Obligation Tax Increment Bonds,
Series 1993B Debt Service Fund (the "Debt Service Fund").
1.02. As of March 10,2000, the cash balance in the Debt Service Fund was $231,850.01 and
the City anticipates an additional $ 9.379.99 be deposited in the Debt Service Fund by July 31, 2000. The
remaining outstanding balance of principal and interest due on the Series 1993 Bonds is $241,230.00,
Consequently, the balance in the Debt Service Fund will be in excess of the remaining outstanding
principal and interest requirements of the Series 1993B Bonds on August 1,2000.
1.03. The Series 1993 Bonds maturing in the years 2001 through 2003, aggregating $165,000
in principal amount, are subject to redemption on August 1, 2000, and on any day thereafter, at a price of
par plus accrued interest.
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NOW, THEREFORE, be it resolved by the City of Andover, Minnesota, as follows:
1.01. This Council hereby determines that there exists sufficient money in the Debt Service
Fund established by Resolution No. 161-93 duly adopted by the Council on July 20, 1993, to prepay on
August I, 2000, $165,000 aggregate principal amount of Series 1993 Bonds maturing in the years 2001
through 2003,
1.02. D.S, Bank Trust National Association, in St. Paul, Minnesota (formerly, First Trust
National Association), the bank at which principal and interest are payable, is hereby authorized and
directed to cause the Notice of Redemption attached hereto as Exhibit A to be given in accordance with the
provisions of Resolution No. 161-93.
1.03. No further action shall be required of the Council to complete prepayment of the Series
1993B Bonds.
The motion for the adoption of the foregoing resolution was duly seconded by member
Knight , and upon vote being taken thereon, the following voted in favor thereof:
McKelvey, Jacobson, Johnson, Knight, Orttel, Hupp (absent), Nowak (absent)
'- ) and the following voted against the same:
"- None
Whereupon the resolution was declared duly passed and adopted.
Dated June 20 ,2000.
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City Clerk
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'\ ANDOVER ECONOMIC DEVELOPMENT AUTHORITY
'--) COUNTY OF ANOKA
STATE OF MINNESOTA
RES. NO. EDA 005-00
A RESOLUTION REQUESTING THE CITY COUNCIL OF THE CITY OF
ANDOVER CALL FOR A PUBLIC HEARING ON THE ADOPTION OF A
MODIFICATION TO THE DEVELOPMENT PROGRAM FOR DEVELOPMENT
DISTRICT NO.1 AND THE MODIFICATION TO THE TAX INCREMENT
FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. 1-1 (A
REDEVELOPMENT DISTRICT).
WHEREAS, the City Council ("the Council") ofthe City of Andover, Minnesota
(the "City") established Development District No.1 pursuant to Minnesota Statutes,
Sections 469.090 through 469.1081, inclusive, as amended, in an effort to encourage the
development and redevelopment of certain designated areas within the City;
WHEREAS, the City has previously adopted Tax Increment Financing District
No. 1~1;
r "- WHEREAS, the City has assigned administration of Development District No.1
0 and Tax Increment Financing District No. 1-1 to the Economic Development Authority;
and
WHEREAS, the City is proposing a modification to the Development Program for
Development District No.1 and a modification to the Tax Increment Financing Plan for
Tax Increment Financing District No.1-I, pursuant to and in accordance with Minnesota
Statutes, Sections 469.090 through 469.1081 and Sections 469.174 through 469.179,
inclusive, as amended;
NOW, THEREFORE BE IT RESOL VED, by the Board of Commissioners (the
"Board") of the Economic Development Authority of the Cityof Andover, Minnesota
(the "EDA") as follows:
1. The EDA hereby requests that the Council call for a public hearing on June 20,
2000 to consider the proposed adoption of the Modification to the Development
Program for Development District No.1 and the proposed adoption of the
Modification to the Tax Increment Financing Plan for Tax Increment Financing
District No. 1-1 (collectively, the "Modifications") and cause notice of said public
hearing to be given as required by law.
2. The EDA directs the Executive Director to transmit copies of the Modifications to
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. , the Planning Commission of the City and requests the Planning Commission's
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( \ written opinion indicating whether the proposed Modifications are in accordance
\._/ with the Comprehensive Plan of the City, prior to the date of the public hearing.
3. The Executive Director of the EDA is hereby directed to submit a copy of the
Modifications to the Council for its approval.
4. The EDA directs the Executive Director to transmit the Modifications to the
county and the school district(s) in which Tax Increment Financing District No.
1-1 is located not later than May 19,2000.
Adopted by the Economic Development Authority of the City of Andover on this
9th day ofMav; 2000.
ATTEST CITY OF ANDOVER
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',,- ) ECONOMIC DEVELOPMENT AUTHORITY
IN AND FOR THE
CITY OF ANDOVER
COUNTY OF ANOKA
STATE OF MINNESOTA
RES. NO. 004-00
MOTION by EDA member KniQht to adopt the following:
A RESOLUTION ACCEPTING BIDS AND AWARDING CONTRACT FOR THE
IMPROVEMENT OF PROJECT NO. 99-17 FOR ANDOVER STATION/MARTIN STREET.
WHEREAS, pursuant to advertisement for bids as set out in Council Resolution No.
230-99 ,dated November 9, 1999, bids were received, opened and tabulated
according to law with results as follows:
, BASE BID
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BASE BID WITH AL TERNA TE
Don Zappa & Sons Excavating, Inc. $1,165,482.60 $1,271,882.60
Forest Lake Contracting, Inc. $1,170,716.17 $1,193,396.17
W.B. Miller, Inc. $1,190,593.15 $1,248,743.15
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Andover to
,'\ hereby accept the bids as shown to indicate Don Zappa & Sons ExcavatinQ. Inc. as
\...j being the apparent low bidder.
BE IT FURTHER RESOLVED TO HEREBY direct the Mayor and City Clerk to enter
into a contract with Don Zappa & Sons ExcavatinQ, Inc. in the amount of $1.165.482.60 for
construction of the improvements; and direct the City Clerk to return to all bidders the
deposits made with their bids, except that the deposit of the successful bidder and the next
lowest bidder shall be retained until the contract has been executed and bond requirements
met.
Adopted by the Andover Economic Development Authority Board of Commissioners the 4th
day of April, 2000.
CITY OF ANDOVER
ATTEST: ,~ m<:- 1(4
. E. McKelvey - President
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"\ EXTRACT OF MINUTES OF A MEETING OF THE
) ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF
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ANDOVER,M~ESOTA
HELD: MARCH 16,2000
Pursuant to due call and notice thereof, a regular meeting of the Economic
Development Authority of the City of Andover, Anoka County, Minnesota, was duly held
at City Hall in said City on the 16th day of March, 2000 at 7:00 o'clock p.m. for the
purpose, in part, of authorizing the transfer of funds from Tax Increment Bonds, Series
1994B Debt Service Fund to the Debt Service Account of the General Obligation Tax
Increment Bonds of 1999 Fund.
The following members were present: Jacobson, Johnson, Knight,
Orttel, McKelvey, Nowak, Hupp
and the following were absent: None
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Commissioner Knight introduced the following resolution and moved i
its adoption:
RESOLUTION NO. 003-00
C) RESOLUTION AUTHORIZING THE TRANSFER OF FUNDS FROM
TAX INCREMENT BONDS, SERIES 1994B DEBT SERVICE FUND
TO THE DEBT SERVICE ACCOUNT OF THE GENERAL OBLIGATION TAX
INCREMENT BONDS OF 1999 FUND !
WHEREAS:
1.01 The City established Development District No.1 (the "Development
District") and Tax Increment Financing District No. 1-2 (the "Tax Increment District")
withiIÌ the City of Andover.
1.02. The City has outstanding General Obligation Taxable Tax Increment
. Refunding Bonds, Series 1994B (the "Series 1994B Bonds") issued to finance project
costs within the Development District.
1.02. In connection with the issuance of the Series 1994B Bonds the City
established the Tax Increment Bonds, Series 1994B Debt Service Fund (the "Series
1994B Debt Service Fund").
1.04. The City on May 18, 1999 approved by resolution (the "Prior Resolution")
the issuance of $1,500,000 General Obligation Tax Increment Bonds of 1999 (the "1999
(\ Bonds") in accordance with the tax increment financing plan for the Tax Increment
\ J District which financed additional project costs within the Development District and the
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1999 Bonds are payable in part from tax increments derived from the Tax Increment
U District.
1.05. In connection with the issuance of the 1999 Bonds the City established a !
debt service account in the General Obligation Tax Increment Bonds of 1999 Fund (the
"1999 Debt Service Account"). The Prior Resolution provides that there shall be !
deposited in the 1999 Debt Service Account available moneys of the City in an amount ¡
necessary to pay the principal and interest on the 1999 Bonds coming due on December
1, 1999 through December 1, 2001.
1.06. The City has deposited in the Series 1994B Debt Service Fund tax
increments form the Tax Increment District in excess of the annual principal and interest
requirements of the Series 1994B Bonds.
1.07. The City intends to transfer $175,000 of available funds in the Series
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1994B Debt Service Fund to the 1999 Debt Service Account for the payment of principal
and interest on the 1999 Bonds.
NOW, THEREFORE, be it resolved by the City of Andover that $175,000 of
available funds held in the Series 1994B Debt Service Fund be transferred to the 1999
Debt Service Account.
,-- -, \ The motion for the adoption of the foregoing resolution was duly seconded by
\.~/ Commissioner 0 r t tel , and upon vote being taken thereon, the following voted in
favor thereof: Jacobson, Johnson, Knight, Orttel, McKelvey,
Hupp, Nowak :
and the following voted against the same:
None
Whereupon said resolution was declared duly passed and adopted.
Dated: March 16, 2000.
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City Clerk
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STATE OF MINNESOTA )
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COUNTY OF ANOKA )
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I, the undersigned, being the duly qualified and acting City Clerk of the I
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City of Andover, Minnesota, DO HEREBY CERTIFY that I have carefully compared the I
attached and foregoing extract of minutes of a meeting of the Economic Development !
Authority of said City held on the date therein indicated with the original minutes thereof
on file in my office and that the same is a full, true and correct transcript thereof insofar
as said minutes relate to Resolution No.--0..Q..3_ 0 0
WITNESS my hand officially this 16th day of March, 2000.
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City Clerk
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ECONOMIC DEVELOPMENT AUTHORITY
\ - ) IN AND FOR THE
CITY OF ANDOVER
COUNTY OF ANOKA
STATE OF MINNESOTA
RES. NO. 002-00
MOTION by EDA member o rtte I to adopt the following:
A RESOLUTION ACCEPTING BIDS AND AWARDING CONTRACT FOR THE
IMPROVEMENT OF PROJECT NO. 9S-11A FOR JAY STREET
LANDSCAPING._.
WHEREAS, pursuant to advertisement for bids as set out in EDA
Resolution No. 011-99 ,dated November 9, 1999, bids were received,
opened and tabulated according to law with results as follows:
Hoffman & McNamara Co. $303,465.00
Environmental Assoc., Inc. $337,251.00 ¡
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NOW, THEREFORE, BE IT RESOLVED by the EDA of the City of Andover ¡
to hereby accept the bids as shown to indicate Hoffman & McNamara Co. as
being the apparent low bidder.
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BE IT FURTHER RESOLVED TO HEREBY direct the Mayor and City Clerk
to enter into a contract with Hoffman & McNamara Co. in the amount of
$303,465.00 .for construction of the improvements; and direct the City Clerk to
return to all bidders the deposits made with their bids, except that the deposit of
the successful bidder and the next lowest bidder shall be retained until the contract
has been executed and bond requirements met.
Adopted by the Andover Economic Development Authority Board of
Commissioners the 17th day of February, 2000.
CITY OF ANDOVER
ATTEST: } {. Þle--Jl~ ,
(iE. McKelvey - Preside
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, ANDOVER ECONOMIC DEVELOPMENT AUTHORITY
)
COUNTY OF ANOKA
STATE OF MINNESOTA
RES. NO. EDAOOI-00
A RESOLUTION APPOINTING OFFICERS FOR THE ECONOMIC
DEVELOPMENT AUTHORITY.
BE IT RESOLVED by the Board of Commissioners (the "Commissioners") of
the Andover Economic Development Authority (the "EDA"), as follows:
1. Appointment of Officers. In accordance with Minnesota Statutes, Section
469.090, the Board hereby appoints to the following offices of the EDA the
following persons, respectively:
President Jack McKelvey
\ Vice President Ken Orttel
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Secretary Mike Knight
Treasurer Don Jacobson
Assistant Treasurer Julie Johnson
Adopted by the Economic Development Authority of the City of Andover
on this 27th day of January. 2000.
CITY OF ANDOVER
ATTEST J ~C:~lv~~re!~
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