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HomeMy Public PortalAbout01.17.2023 EDA Meeting PacketPosted 1/13/23 MEDA AGENDA Tuesday, January 17, 2023 6:30 p.m. Medina City Hall 2052 County Road 24 __________________________________________________________________ I. Call to Order II. Motion to delegate duties to preside over the meeting to Vice President DesLauriers II. Oath of Offices/Roll Call of Commissioners III. Approval of Minutes of June 21, 2022 IV. New Business A. Election of Officers for 2023 B. Appointment to Administrative Offices for 2023 C. Authorize preparation of 2024 MEDA budget D. Resolution Adopting Report to City Council Regarding Enabling Resolution E. Authorize preparation of report to city council regarding 2022 MEDA activities V. Old Business A. Set date of next meeting – June 6, 2023 VI. Reports A. Commissioners B. Executive Director VII. Adjourn President Kathleen Martin will participate in the meeting virtually from Sonoma Valley Regional Library located at 755 W Napa Street, Sonoma CA, 95476. MEDA Meeting Minutes 1 June 21, 2022 MEETING MINUTES OF THE MEDINA ECONOMIC DEVELOPMENT AUTHORITY (MEDA) Tuesday, June 21, 2022 5:30 p.m. Medina City Hall 2052 County Road 24 ___________________________________________________________________________ The Economic Development Authority of Medina, Minnesota met on June 21, 2022 at 5:30 p.m. at the Medina City Hall, 2052 County Road 24, Medina, MN. I. Call to Order II. Roll Call of Commissioners Members present: Martin (arrived 5:51 p.m.), DesLauriers, Albers and Cavanaugh Members absent: Reid Also present: Executive Director Scott Johnson, Planning Director Dusty Finke, Finance Director Erin Barnhart, Chief Jason Nelson, MEDA Attorney Ron Batty, Stacie Kvilvang of Ehlers, Heidi Rathmann and Sally Rabban of CommonBond Communities. III. Approval of Minutes for the June 7, 2022 Meeting Commissioner Cavanaugh made a motion to approve the June 7, 2022 EDA meeting minutes. Commissioner Albers seconded the motion and the motion passed unanimously. IV. New Business A. CommonBond TIF Request – MEDA Attorney Batty reviewed the CommonBond TIF application and reminded Council they needed to be comfortable with the proposed TIF commitment. Stacie Kvilvang of Ehlers provided the City Council with information on the proposed TIF District and explained that it is not Medina’s responsibility to fill the funding gap for the proposed project. She informed the Council that the information is preliminary and Ehlers will right size the TIF for the actual project. Commissioners discussed timeframes for the TIF district, possible future fee waivers/contributions from the City Council and making the application stronger with a possible 15-year TIF district. Commissioner Cavanaugh made a motion to approve the amended resolution supporting an allocation of up to $306,000 in tax increment financing over 15 years on a pay-as-you-go basis. President Martin seconded the motion and the motion passed unanimously. Commissioner Cavanaugh made a motion to approve the letter supporting an allocation of up to $306,000 in tax increment financing over 15 years on a pay-as-you-go basis. President Martin seconded the motion and the motion passed unanimously. MEDA Meeting Minutes 2 June 21, 2022 B. Next Meeting – January 17, 2023 – EDA President Martin made a motion to set the next meeting date for the MEDA on January 17, 2023. Commissioner Cavanaugh seconded the motion and the motion passed unanimously. V. Adjournment President Martin made a motion to adjourn the meeting. Commissioner Cavanaugh seconded the motion and the motion passed unanimously. The meeting was adjourned at 6:16 p.m. _________________________ Kathleen Martin, MEDA President Attest: ____________________________ Scott T. Johnson, MEDA Executive Director MEMORANDUM TO: MEDA Commissioners FROM: Dave Anderson, MEDA Attorney and Scott Johnson, Executive Director DATE: January 17, 2023 SUBJ: MEDA Annual Meeting 2023 The Medina Economic Development Authority (“MEDA”) will meet at 6:00 p.m. on Tuesday, January 17, 2023 for its annual meeting. The purpose of the meeting is to conduct certain housekeeping business. The following items will be discussed on the agenda. Oath of Office, Election of Officers for 2023 and Appointment to Administrative Offices for 2023 A president, vice-president, secretary, treasurer and assistant treasurer should be elected to serve in 2023. The only statutory constraint is that the president and vice president be different members. The offices of secretary and assistant treasurer need not be held by a commissioner, i.e., staff may serve in those positions. Certain administrative offices were also filled in 2022. It is not necessary to make those appointments annually unless the commission wishes to do so. Staff does suggest replacing Jodi Gallup with Caitlyn Walker as the Assistant Secretary. Staff appointments may be considered ongoing, subject, of course, to the commission’s authority to make changes at any time. For reference only, the following were elected and appointed on January 18, 2022: President Kathleen Martin Vice President Dino DesLauriers Treasurer Todd Albers Secretary Scott Johnson Assistant Treasurer Scott Johnson Executive Director Scott Johnson Assistant Secretary Jodi Gallup Attorney Kennedy & Graven Authorize preparation of the 2024 MEDA budget MEDA should prepare its 2024 budget and submit it to the city council. This is a statutory requirement. The budget should include an estimate of the amount of money MEDA expects to need from the city next year. That is the amount in excess of expected receipts from other sources. This item authorizes staff to draft a budget to be presented and adopted at a future MEDA meeting. There is no particular urgency to this except that the budget needs to be sent to the city in time for it to be included in the city’s budget for next year. MEDA’s bylaws call for sending the budget to the city council by August 1 of each year. As background for preparation of its budget, MEDA should be aware that there are two distinct types of tax levies available to it. The first, which is called an “EDA levy” is actually a city levy made on behalf of an EDA. The amount is limited by statute and is included in the city’s levy limit. The maximum levy may be exceeded following a public hearing but the additional levy is subject to a reverse referendum. In reality, an EDA levy differs little from a direct appropriation by the city to 2 its EDA. MEDA can also utilize an “HRA levy” by invoking its powers as a housing and redevelopment authority under the HRA Act, one of the three statutes under which MEDA is authorized to operate. An HRA levy is a true levy and is in addition to the city’s levy. The amount of the levy is subject to approval by the city council and may not exceed the statutory maximum. However, funds raised via an HRA levy may be used in more limited ways than those from an EDA levy because they are restricted to functions authorized under the HRA Act. Neither type of levy is recommended for 2024 or in the immediate future but the EDA should be aware of this authority if the need arises. Adopt resolution regarding enabling resolution State law requires that MEDA report annually to the city council on its recommendations regarding changes to the resolution. (The enabling resolution may only be amended by the city council). Attached is the current enabling resolution. Staff recommends no changes for 2023. Authorize preparation of report to city council regarding 2022 MEDA activities MEDA must report annually to the city council regarding its activities during the previous year. In 2022, MEDA’s activities consisted of organizational matters and making debt service payments on MEDA’s financial obligations. They also consisted of reviewing a proposed affordable housing project in the city and authorizing support of this project through tax increment financing. This item authorizes staff to prepare the report for adoption by MEDA at a future meeting. Although there is little “activity” as such to report, staff will prepare a brief financial report for 2022. This will include a year-end balance sheet (all TIF funds have been transferred from the city to MEDA) as well as a statement of revenues, expenses and changes in fund balances. Set date of next meeting – June 6, 2023 It will be necessary for MEDA to have at least one additional meeting to adopt its budget. The only items to be considered at the next meeting (at this point) are adoption of MEDA’s 2024 budget and acceptance of the report on 2022 activities. There might also be further meetings or discussion regarding the aforementioned affordable housing project. Resolution No. 2023-XX January 17, 2023 Commissioner _______ introduced the following resolution and moved its adoption. MEDINA ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. 2023-XX RESOLUTION ADOPTING REPORT TO CITY COUNCIL REGARDING ENABLING RESOLUTION WHEREAS, the Medina Economic Development Authority (“MEDA”) is a public body corporate and politic under the laws of Minnesota; and WHEREAS, MEDA was established by the city of Medina (the “City”) by Resolution No. 2011-85, an enabling resolution adopted on September 20, 2011 (the “Enabling Resolution”); and WHEREAS, Minnesota Statutes, section 469.092, subd. 3 requires that MEDA report at least annually to the city council regarding whether and how the Enabling Resolution should be modified. NOW, THEREFORE, BE IT RESOLVED, by the Board of Commissioners of the Medina Economic Development Authority as follows: 1. MEDA does not deem any modification of the Enabling Resolution to be necessary at the present time. 2. Staff is authorized and directed to transmit this resolution to the city council for its consideration. 3. Nothing herein shall preclude MEDA from petitioning the city council to modify the Enabling Resolution at such time or times in the future as it may deem appropriate. Dated: January 17, 2023. ____________________________________ Kathleen Martin, President ATTEST: ________________________________ Scott T. Johnson, Executive Director Resolution No. 2023-XX January 17, 2023 2 The motion for adoption of the foregoing resolution was seconded by Commissioner ______ and upon vote being taken, the following voted in favor thereof: And the following against same: Whereupon said resolution was declared duly passed and adopted. Member Weir introduced the following resolution and moved its adoption. CITY OF MEDINA RESOLUTION NO. 2011-85 ENABLING RESOLUTION ESTABLISHING THE MEDINA ECONOMIC DEVELOPMENT AUTHORITY BE IT RESOLVED by the city council of the city of Medina, Minnesota (the "City") as follows: Section 1. Background and Findings. 1.01. The City is authorized by Minnesota Statutes, sections 469.090 through 469.1081 (the "Act") to establish an economic development authority in Medina to coordinate and administer economic development and redevelopment plans and programs in the community. 1.02. It is found and determined by the city council that the encouragement and financial support of economic development and redevelopment in the City is vital to the orderly development of the City and in the best interests of the health, safety, prosperity and general welfare of the citizens of the City. 1.03. It is further found and determined that the economic development and redevelopment of the City can best be accomplished by the establishment of an economic development authority as authorized by the Act. 1.04. In accordance with the requirements of the Act, the city council provided notice and conducted a public hearing on September 20, 2011 concerning the establishing of an economic development authority, at which hearing all persons desiring to express their views were heard. Section 2. Enabling Resolution. 2.01. The Medina Economic Development Authority ("MEDA") is hereby established pursuant to this enabling resolution (the "Enabling Resolution"). MEDA is a public body corporate and politic and a political subdivision of the state of Minnesota. 2.02. MEDA shall have all the powers under the Act, and the powers of a housing and redevelopment authority under Minnesota Statutes, sections 469.001 to 469.047 and of a city under Minnesota Statutes, sections 469.124 to 469.134, as such laws may be amended from time to time, except as limited by this Enabling Resolution. Resolution No. 2011-55 September 20, 2011 2.03. MEDA shall consist of a governing body of five commissioners. The five commissioners shall be the members of the Medina city council. These commissioners' terms shall coincide with their terms of office as members of the city council. Section 3. Limits of Powers. 3.01. MEDA shall be subject to the following limitations in the exercise of its authority: a. The sale of all bonds or other obligations issued by MEDA must be approved by the city council before issuance. b. MEDA must follow the budget process for City departments in accordance with City policies, resolutions and ordinances. c. All actions of MEDA must be consistent with the City comprehensive plan and official controls implementing the comprehensive plan. d. MEDA must obtain approval of its proposed plans for development and redevelopment from the city council. 3.02. This Enabling Resolution may be modified from time to time by the city council in the manner prescribed by the Act. 3.03. As provided in the Act, it is the intention of the city council that nothing in this Enabling Resolution nor any activities of MEDA be construed to impair the obligations of the City under any of its contracts or to affect in any detrimental manner the rights and privileges of a holder of a bond or other obligation heretofore issued by the City. MEDA shall not modify any covenant or obligation in effect at the time any bonds or obligations were issued or contracts executed to the detriment of the holder of the bonds or obligations or any contracting party. Section 4. Officers, Organization. 4.01. MEDA may adopt bylaws and rules of procedure and shall adopt an official seal. 4.02. MEDA shall elect a president, vice president, treasurer, secretary, and assistant treasurer who shall have such duties and powers as prescribed by the Act. The president, treasurer, and secretary shall be elected annually. No commissioner shall serve as president and vice-president at the same time. The offices of secretary and assistant treasurer need not be held by a commissioner. 4.03. MEDA shall appoint an executive director and secure the services of such other persons as it deems necessary or convenient to perform its functions. Resolution No. 2011-85 2 September 20, 2011 4.04. MEDA may by resolution appoint one or more advisory committees to MEDA. Section 5. Audit. 5.01. The financial statements of MEDA must be prepared, audited, filed, and published or posted in the manner required for the financial statements of the City. 5.02. The report must be filed with the state auditor by June 30th of each year. Section 6. Bonds. 6.01. MEDA may issue its general obligation bonds in the principal amounts authorized by two-thirds majority vote of the city council. a. The bonds may be issued in anticipation of income from any source and used to secure funds needed to pay for acquired property or for other purposes authorized by the Act. b. The bonds must be in the amount and form and bear interest at the rate set by the city council. c, The first installment shall be due in not more than 3 years and the last in not more than 30 years from the date of issuance. d. The bonds shall not impose any personal liability on a member of MEDA. e. The bonds shall be secured by the full faith, credit and resources of the City only if the city council specifically authorizes MEDA to do so. 6.02. MEDA may issue revenue bonds for such purposes and following such procedures as are specified in the Act. Section 7. Tax Levy. 7.01. The City may, at the request of MEDA, levy a tax in any year for the benefit of MEDA in an amount not more than 0.01813 percent of taxable market value of property within Medina or such other amount as allowed by the Act. The levy may be increased by resolution of the city council following a public hearing and published notice in accordance with the Act. 7.02. MEDA may, when exercising its powers as a housing and redevelopment authority, levy a tax in accordance with Minnesota Statutes, section 469.033. The levy shall be in an amount approved by the city council but shall not exceed 0.01815 percent of taxable market value or such other amount as authorized by law. Section 8. Implementation. Resolution No. 2011-85 3 September 20, 2011 8.01. The city council may from time to time adopt such ordinances and resolutions as may be necessary or convenient to give full effect to this Enabling Resolution. 8.02. The mayor, city administrator and other City officials are authorized and directed to take such actions and execute and deliver such documents necessary or convenient to give full effect to this Enabling Resolution. Dated: September 20, 2011. ATTEST: j (.e4^-"/ Scott T. Johnson, City Administrator -Clerk T.M. Crosby, Jr., a�'or The motion for the adoption of the foregoing resolution was duly seconded by member Martinson and upon vote being taken thereon, the following voted in favor thereof: Crosby, Martinson, Pederson, Siitari, Weir And the following voted against same: None Whereupon said resolution was declared duly passed and adopted. Resolution No. 2011-85 September 20, 2011 4