Loading...
HomeMy WebLinkAboutAugust 1, 1995 () ü o CITY of ANDOVER . ANDOVER ECONOMIC DEVELOPMENT AUTHORITY MEETING AUGUST 1, 1995 -MINUTES A Meeting of the Andover Economic Development Authority was called to order by Mayor Jack McKelvey on August 1, 1995, 8:25 p.m., at the Andover City Hall, 1685 Crosstown Boulevard NW, Andover, Minnesota. Present: Councilmembers Dehn, Jacobson, Knight, Kunza ~ Absent: None Also present: City Attorney, William G. Hawkins City Engineer, Scott Erickson City Planning Director, Dave Carlberg City Administrator, Richard Fursman Others ORDER PUBLIC HEARING/SET SALE/TIF BOND Bob Thistle, Springsted, Inc., addressed the Authority on the proposed . $6,055,000 General Obligation Tax Increment Bond to cover a number of . tax increment projects. The majority of the funds will be used to --) acquire a number of properties for site clearance and redevelopment. He "-- also noted that the Federal government passed a new series of laws governing municipal bonds, and there is a requirement for secondary market disclosure. In the future, all bond issues by municipalities will be required to issue additional information annually of any changes that have taken place in the City in the subsequent years since the last report. Mr. Fursman stated the original discussion was for an $8.1 mi¡lion bond issue. Mr. Thistle explained the amount was lowered so the total bond issues for the City this year is less than $10 million to quality for lower interest rates and to maintain the City's payment qualification. He also explained the regulations on the draw-down of the bond and how arbitrage is applied. Because the City's bonding is over $5 million, the Finance Director will have to report on the draw-down on each bond. Councilmember Jacobson noted the total amount to be paid back on the bond is in excess of $10 million. He asked if the TIF District will generate the dollars needed to pay the bond back. Mr. Fursmanexplained in determining the revenues from the TIF District, the assumption was . made that there would be no development in the industrial park once the land is purchased. Mr. Thistle explained the total increment revenue during the period of the bond will support about $14 million, which will be sufficient to pay for the debt and interest plus some in reserve. ,') MOTION by Jacobson, Seconded by Dehn, that the Authority accept the \~ recommendation of Springsted, Inc., for the issuance of $6,055,000 in General Obligation Tax Increment Bonds, Series 1995D. (See Resolution EDA 005-95) Motion carried unanimously. ~ \ ') \. /,. ,. Andover Economic Development Authority Meeting _ Minutes - August 1, 1995 ) Page 2 (Order Public Hearing/Set Sale/TIF Bond, Continued) MOTION by Jacobson, Seconded by Dehn, the Resolution calling for a public hearing on the proposed adoption of a modification of the development program for Development District No.1, and the proposed adoption of a modification of the Tax Increment Financing Plans for Tax . Increment Financing Districts Nos. 1-1 and 1-2 as presented. (See Resolution EDA 006-95) Motion carried unanimously. RECEIVE FEASIBILITY REPORT/ORDER HEARING/COMMERCIAL BOULEVARD EXTENSION/IP94-33 John Davidson, TKDA, asked the Authority to receive the feasibility report and order the public hearing for September 5 for Commercial Boulevard Extension and to direct Staff to hold an informational meeting with property owners on August 14 to review the report pr~or to the public hearing. The concerns raised by the residents at the informational meeting will be addressed at the public hearing. Mr. Davidson then went into detail of the feasibility report on Phase 1 for street, storm sewer, sanitary sewer, and watermain for the extension of Commercial Boulevard and the construction of the proposed Nightingale Street. The total cost for the two streets plus grading is estimated to J be $1,227,590. He also reviewed the proposal to assess the 33 acres of property between Nightingale and Thrush Streets, the proposed storm drainage system throughout the area, the breakdown of the total project cost of the various proposed streets through the vicinity, and the proposed plat of the area. Mr. Fursman noted if the City acquires most . of the property, the amount of participation from others through assessments becomes minimal; however, there will be enough funds to complete the project. Both TIF funds and Municipal State Aid funds are available. Mr. Davidson stated MSA funds were not used on Commercial Boulevard to date; however, the plans were approved by the State in case that those funds would be used. Councilmember Jacobson stated the City does not have an assessment policy to assess streets on a per-acre basis. Attorney Hawkins advised it does not matter what assessment method is used as long as it meets the test of benefit received equals at least . ,. the amount of the speclal assessment. Councilmember Jacobson pointed out the City does not own the easement for the proposed Nightingale Street and there is no estimate for the acquisition of easement. Mr. Davidson explained there is nothing for acquisition of easement because much of the property will already be owned by the City. Mr. Fursman advised that all acquisition costs will be included in the TIF bond. ) Mayor McKelvey didn't want the City to be put in a position of being accused of taxing the existing businesses in that area out of existence. . Some people may say the City is trying to force them to sell, and he didn't want that to be the case. The City still wants to negotiate with those wanting to sell. Nightingale doesn't have to be constructed now. / "ì .' " '-.J \.J Andover Economic Development Authority Meeting ~ Minutes - August 1, 1995 / Page 3 (Receive Feasibility/Order Hearing/Commercial Blvd/IP994-33, Continued) Mr. Davidson stated the reason for the informational hearing ~ould be to explain the proposal to the property owners and to determine the concerns. The City would be picking up 75 percent of the proposed cost through TIF funds, so the property owners would only be assessed 25 percent of the cost. This is the least costly method for them to develop. It is not the intent to force anyone off their property. Mr. Fursman explained this provides an overall plan for the development of the area, street layout, ponding, grading, etc. It doesn't necessarily mean that all aspects of the plan will be done now. Councilmember Jacobson also noted that the City has worked with property owners to defer assessments for several years, and possibly that can happen again in this area. That is a policy decision that is not being made tonight. . (Councilmember Kunza left the meeting, 9:23 p.m.) MOTION by Knight, Seconded by Jacobson, to accept the feasibility report and call for the public hearing as presented here in this Resolution. (See Resolution EDA 007-95) Motion carried on a 4-Yes, I-Absent (Kunza) vote. \ J MOTION by Jacobson, Seconded by Knight, to adjourn. Motion carried on a 4-Yes, 1-Absent (Kunza) vote. ,. The EDA meeting was adjourned at 9:25 p.m. Re~~~;Z:L ~la A. Peach Recording Secretary . , ,. , I j