07-12-1999 EDA MIN - Laserfiche WebLink

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Economic Development Authority Minutes Julv 12. 1999 Page 2 . 6. Consider Resolution Approvina and Authorizina a Tax Increment Pledae Agreement Reaardina TIF District No. 19 Executive Director Paul Steinman stated that the city's bond attorney is recommending approval of a resolution for a tax increment pledge agreement that is part of the overall bond sale recently approved by the City Council on June 28, 1999. Paul Steinman explained that the resolution formalizes the process of using tax increment from District No. 19 to pay $630,000 of the bonds that were sold on June 28, 1999. He indicated that the $630,000 covers the cost of construction of the lift station within TIF District No. 19. COMMISSIONER MOTIN MOVED TO ADOPT EDA RESOLUTION NO. 99-1 APPROVING AND AUTHORIZING THE EXECUTION OF A TAX INCREMENT PLEDGE AGREEMENT RESPECTING PAYMENT OF A SPECIFIED PORTION OF THE $5,725,000 GENERAL OBLIGATION BONDS SERIES 1999A OF THE CITY OF ELK RIVER, MINNESOTA. COMMISSIONER BENDER SECONDED THE MOTION. THE MOTION CARRIED 7 -0. 7. Consider Approval of Contract for Private Redevelopment Reaardina TIF District No. 19 e Executive Director Paul Steinman indicated that a Contract for Private Redevelopment by and Between the Economic Development Authority in and for the City of Elk River and Associated Investors of Elk River, Inc., Fischer Sand and Aggregate, LLP, and the Elk River Business Park, LLC, has been drafted and is ready for EDA consideration. Paul Steinman reviewed the basic principals of the developers agreement. Discussion was held regarding the 50 percent penalty of the tax increment owed to the developer for not having met goals of development of the Business Park. The concern was whether the 50 percent penalty would be cumulative. Another concern discussed related to the fact that there were no personal guarantees from the principals of the companies. The city attorney indicated that the bond counsel has advised the city that there can be no personal guarantees due to stringent regulations that have to be followed for tax exempt bonding. COMMISSIONER GONGOLL MOVED TO APPROVE THE CONTRACT FOR PRIVATE REDEVELOPMENT BY AND BETWEEN THE EDA AND DEVELOPERS ALLOWING FOR STAFF AND THE CITY ATTORNEY TO MAKE FINAL MINOR LANGUAGE MODIFICATIONS AND AUTHORIZING EXECUTION OF THE CONTRACT. COMMISSIONER FARBER SECONDED THE MOTION. THE MOTION CARRIED 7-0. 8. Other Business Post Office Relocation - Executive Director Paul Steinman indicated that the Post Office will be before the EDA on August 9, 1999, to make a presentation on their relocation plans. Paul Steinman noted that the HRA has been invited to this meeting. Budaetina Process - Executive Director Paul Steinman informed the EDA that the EDA budget will be presented at the August 9, 1999, EDA meeting. e Community Venture Network Meetina Summary - President Dwyer indicated that he reviewed the six prospects presented by the EDA from the Community Venture Network. He noted that he did not feel the EDA is receiving a benefit from CVN based on the six prospects that he reviewed. Assistant Director of Economic