08-17-2020 EDA Complete AgendaE C O N O MIC D E V E L O P ME N T AU T H O R IT Y ME E T IN G
V IR T U AL ME E TIN G H E L D V IA W E B E X
AU G U S T 17, 2020
7:15 PM (I MME D I AT ELY FO L L OWI NG THE HRA ME ETI NG)
C all to Order
A ttendance
Open F orum
Approval of the Minutes
A pproval of the minutes of the Regular E conomic D evelopment A uthority meeting of June 15, 2020.
AG E N D A APPR O VAL
1.A pproval of the A genda
R E S O L U T IO N S
2.C onsideration of resolutions approving the 2021 P roposed E conomic D evelopment A uthority B udget and Tax
L evy and the 2020 Revised E conomic D evelopment A uthority B udget.
S taff Report No. 14
E D A D ISC U SSIO N IT E MS
3.E D A D iscussion Items
E X E C U T IV E D IR E C TO R R E P O R T
4.E xecutive D irector's Report
C LAIMS AN D PAYR O L LS
5.C laims
6.A djournment
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ECONOMIC DEVELOPMENT
AUTHORITY MEETING MINUTES
Richfield, Minnesota
Regular Meeting
Virtual Meeting held via Webex
June 15, 2020
CALL TO ORDER
The meeting was called to order by President Supple at 7:47 p.m. via Webex.
EDA Members Mary Supple, Chair; Maria Regan Gonzalez; Sue Sandahl; Erin Vrieze
Present: Daniels; and Pat Elliott.
EDA Members None
Absent:
Staff Present: John Stark, Executive Director; Julie Urban, Housing Manager; and LaTonia
DuBois, Administrative Assistant.
Others Present: Sarah Harris, Aeon Seasons Park
OPEN FORUM
No speakers
APPROVAL OF MINUTES
M/Sandahl, S/Elliott to approve the minutes of the regular Economic Development Authority
meeting of April 20, 2020.
Motion carried 5-0
Commissioner Vrieze Daniels mentioned an error on the minutes Roll Call said HRA
Members Present opposed to EDA Members Present.
Roll was taken with the changes to the minutes.
Motion Carried 5-0
Item #1
APPROVAL OF THE AGENDA
M/Regan Gonzalez, S/Regan Sandahl, to approve the agenda.
Motion carried 5-0
EDA Meeting Minutes -2- June 15, 2020
Item #2
CONSIDERATION OF A MASTER AMENDMENT TO THE APARTMENT
REMODELING PROGRAM MORTGAGE, PROMISSORY NOTE AND LOAN
AGREEMENT WITH AEON SEASONS PARK AND A SUBORDINATION OF THE
MORTGAGE. (S.R. NO 13)
Housing Manager Urban presented Staff Report No.13
Sarah Harris, Aeon Seasons Park expressed her appreciation for all the leadership support
from the City.
RESOLUTION NO. 23
RESOLUTION APPROVING A MASTER AMENDMENT AGREEMENT WITH AEON SEASONS
PARK LLC RELATED TO AN AFFORDABLE HOUSING PROJECT IN THE CITY OF RICHFIELD
AND TAKING OTHER ACTIONS IN CONNECTION THEREWITH
M/Sandahl, S/Regan Gonzalez to approve a resolution authorizing the execution of a
Master Amendment to the Apartment Remodeling Program mortgage, promissory note, and loan
agreement with Aeon Seasons Park and approve a subordination of the mortgage to the
Minnesota Housing principal mortgage.
Motion carried 5-0
President Supple asked for clarification that the loan is forgivable.
Housing Manager Urban stated a term which would require the loan to be paid back, but
reiterated it is a forgivable loan.
Item #3
EDA DISCUSSION ITEMS
None.
Item #4
EXECUTIVE DIRECTOR’S REPORT
Executive Director Stark told commissioners they would receive a written report on the
Covid loan within a few weeks, provided a brief update and stated that all Richfield business that
applied had been approved and named a few of the recipients. Executive Director Stark mentioned
how rewarding offering this loan was and the wealth small businesses in the community.
Housing Manager Urban mentioned how appreciative recipients are.
Executive Director Stark informed commissioners that other communities were so
impressed with the EDA Covid loan program; it inspired those other communities to offer similar
programs. Hennepin county return to work program has funds for Richfield businesses and asked
Richfield to administer the program and the City waived the administrative fees so all the funds
could remain available to Richfield businesses.
Chair Supple inquired if businesses could apply for both the EDA and Hennepin County
loan.
Executive Director Stark explained the terms of a previous program Hennepin County but
he wasn’t certain about the guidelines for the new program.
EDA Meeting Minutes -3- June 15, 2020
Item #5
CLAIMS
M/Regan Gonzalez, S/Sandahl that the following claims be approved:
U.S. BANK 5/18/2020
EDA Checks: 20377-20394 $37,748.01
TOTAL $35,748.01
U.S. BANK 6/15/2020
EDA Checks: 20395-20450 $175,901.41
TOTAL $175,901.41
Motion carried 4-0 Commissioner Elliott lost connection to the meeting and was unable to
vote.
Item #8
ADJOURNMENT
The meeting was adjourned by unanimous consent at 8:06 p.m.
Date Approved: August 17, 2020
Mary B. Supple
President
LaTonia DuBois John Stark
Administrative Assistant Executive Director
AGENDA SECTION:RESOLUTIONS
AGENDA ITEM #2.
S TAFF REPORT NO. 14
E CONOMIC DE V E LOP ME NT AUT HORIT Y
MEET ING
8/17/2020
RE P O RT P RE PA RE D B Y: C hris Regis, F inance D irector
O THE R D E PA RTM E NT RE V IE W: N/A
E X E C UTIV E D IRE C TO R RE V IE W: Melissa P oehlman A cting E xecutive D irector
8/10/2020
I T E M F O R C O UNC IL C O NS ID E RAT I O N:
Consideration of resolutions approving the 2021 Proposed Economic Development Authority Budget
and Tax Levy and the 2020 Revised Economic Development Authority Budget.
E X E C UT IV E S UM M ARY:
The bylaws of the Richfield Economic Development Authority (E D A) require that an annual budget be
submitted to the E D A Commissioners for approval. Accordingly, the 2021 Proposed Budget and Tax Levy and
2020 Revised Budget are presented for approval.
I n addition, Minnesota State Statutes require adoption of a preliminary tax levy from each taxing authority.
The proposed tax levy must be certified to the Hennepin County Auditor by September 30, 2020. Any
amendments to the proposed budget, which would increase the property tax levy, must be made prior to
September 30, 2020. No increases in the tax levy are permissible after that date, only reductions. Final
certification of the E D A tax levy is part of the City’s budget process.
The tax levy as proposed represents a 2.42% decrease from the previous year ’s levy.
RE C O M M E ND E D AC T I O N:
By Motion: Adopt the attached resolutions approving the 2021 Proposed Economic Development
Authority Budget and Tax Levy and 2020 Revised Economic Development Authority Budget.
B AS IS O F RE C O M M E ND AT I O N:
A.H IS TOR IC AL C ON T E X T
N/A
B.P OL IC IE S (resolutions, ordinances, regulations, statutes, etc):
Minnesota Statutes require adoption of a preliminary levy from each taxing authority.
The budget and accompanying proposed levy for 2021 are ready for consideration.
Even though a public hearing for the E D A tax levy is not required by State Statute, this does
not preclude the EDA from opening this item up for public discussion if the E D A desires to do
so.
C.C R IT IC AL T IMIN G IS S U E S:
As required by State Statutes, each taxing authority must certify its proposed tax levy for the payable
year 2021 to the County Auditor on or before September 30, 2020.
D.F IN AN C IAL IMPAC T:
The Proposed 2021 E D A levy represents a 2.42% decrease from the previous year ’s levy.
The levy is approximately $156,721 less than the maximum E D A levy established by law of the .01813%
of the City’s total estimated taxable market value.
E.L E GAL C ON S ID E R AT ION:
N/A
ALTE R N AT IV E R E C O MME N D ATIO N(S):
The E D A could adopt a preliminary levy greater than the one proposed herein. However, the levy proposed
provides the necessary funding to provide for programs that are recommended in the 2021 Proposed/2020
Revised budget.
P R IN C IPAL PAR TIE S E X P E C TE D AT ME E TIN G:
N/A
AT TAC H ME N T S:
D escription Type
2021 E D A Tax L evy Resolution Resolution L etter
2020 E D A Revised B udget Resolution Resolution L etter
EDA RESOLUTION NO.
RESOLUTION APPROVING PROPOSED 2021 ECONOMIC DEVELOPMENT
AUTHORITY BUDGET AND CERTIFYING THE 2021 TAX LEVY
BE IT RESOLVED by the Housing and Redevelopment Authority of the City of
Richfield, Minnesota as follows:
Section 1. The budget for the Economic Development Authority
General Fund of Richfield for the year 2021 in the amount of
$398,250 is hereby ratified.
Section 2. The estimated gross revenue of the Economic Development
Authority General Fund of Richfield from all sources, including
general ad valorem tax levies as hereinafter set forth for the year
2021, and as the same are more fully detailed in the Executive
Director’s official copy of the budget for the year 2021, in the
amount of $532,140 is hereby approved.
Section 3. There is hereby levied upon all taxable property in the City of
Richfield an ad valorem tax in 2020, payable in 2021 for the
following purposes:
Economic Development Authority $540,605
Section 4. A certified copy of this resolution shall be transmitted to the County
Auditor.
Adopted by the Economic Development Authority in and for the City of Richfield,
Minnesota this 17th day of August, 2020.
Mary Supple, President
ATTEST:
John Stark, Executive Director
EDA RESOLUTION NO.
RESOLUTION AUTHORIZING REVISION OF THE 2020 BUDGET OF THE
ECONOMIC DEVELOPMENT AUTHORITY OF RICHFIELD
WHEREAS, Resolution No. 14 appropriated funds for personal services and other
expenses for the Economic Development Authority for the year 2020, and
WHEREAS, The Executive Director has requested a revision of the 2020 budget as
detailed in the 2021 budget document.
NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority
of Richfield, Minnesota as follows:
Section 1. That the 2020 appropriation for the Economic Development Authority
General Fund is revised as follows:
$163,340 increase
Section 2. Estimated 2020 gross revenue of the Economic Development
Authority General Fund from all sources, as the same is more fully
detailed in the Executive Director’s official copy of the 2021 budget
document, are hereby revised as follows:
$500 decrease
Section 3. That the Executive Director bring into effect the provisions of this
resolution.
Adopted by the Economic Development Authority in and for the City of Richfield,
Minnesota this 17th day of August, 2020.
Mary Supple, President
ATTEST:
John Stark, Executive Director