4.1. DRAFT MINUTES (2 sets) 03-05-2018

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Housing and Redevelopment Minutes Page 4 February 5, 2018 ----------------------------- Bank who is providing the financing for this project. She indicated she will abstain from voting on this item. Chair Toth asked if there was a quorum. Ms. Othoudt stated that after consulting with the HRA attorney, she was advised that this is a unique situation with the two commissioners abstaining. It leaves the remaining three commissioners to vote, and even though one commissioner is absent, a quorum still exists because two out of the three commissioners are able to vote. The result of the vote will be shared with the Council later that evening. Ms. Othoudt presented the staff report and outlined the HRA policy and applicant’s request. She indicated on January 31, the Finance Committee made a motion to recommend the HRA approve establishing a 26 year non-contiguous housing district. Ms. Othoudt indicated staff’s concerns was that the Jackson Hills project whether pooled with the ER Lodge garage construction or alone does not “exceed” the objectives identified in the policy as required to merit the TIF extension to 26 years. Staff felt that the Jackson Hills project should not extend beyond a TIF term of 15-years per the city’s policy. In addition, she explained that pooling increment from Jackson Hills to the Elk River Lodge project should not be needed as this project was already approved as an apartment complex by the City Council on its own merit in order to come into compliance with the city zoning code. Ms. Othoudt indicated that the policy as approved in December does not address priority projects for pooling increment and she recommends reviewing each project separately, each on their own merits, to determine whether they qualify for tax increment financing. Mikaela Huot from Springsted Incorporated was present to answer questions as well as the developer. The commission asked questions regarding the TIF terms, coupling two projected together previously, and if other cities had ever done something similar. Ms. Huot stated there are cities that use that flexibility and noted different districts have different rules. She said Elk River’s policy does not address non-contiguous TIF districts because that was how the policy was written and because of that, both projects would have to qualify on their own merit. Commissioner Chuba suggested that the Commission consider the recommendation provided by the Joint Finance Committee. Commissioner Toth indicated that he would not support pooling the increment from the Jackson Hills project to the Elk River Lodge project, but would support the Jackson Hills project as a standalone project and TIF District. The commissioners would like to discuss the TIF policy with regards to allowing pooling of increment at a later meeting.