HomeMy WebLinkAbout3.A. EDA Minutes from March 18, 2014Consent Business
3. A.
Sft\K0PEE
TO: Economic Development Authority
FROM: Julie Linnihan, Finance Director /City Clerk
DATE: 04/15/2014
SUBJECT: EDA Minutes from March 18, 2014
OFFICIAL PROCEEDINGS OF THE
ECONOMIC DEVELOPMENT
AUTHORITY SHAKOPEE,
MINNESOTA
Regular Session March 18, 2014
Members Present: President Matt Lehman, Commissioners Brad Tabke, Kathi Mocol,
Mike Luce and Jay Whiting.
Staff Members Present: Mark McNeill, City Administrator; Kris Wilson, Assistant City
Administrator; R. Michael Leek, Community Development Director;
Bruce Loney, Engineer /Public Works Director; Julie A. Linnihan,
Finance Director /City Clerk, Samantha DiMaggio, Economic
Development Coordinator; Jim Thomson, City Attorney.
1. Roll Call
President Lehman called the meeting to order and roll was noted as above.
2. Approval of the Agenda
Whiting /Luce moved to approve the agenda. Motion carried 5 -0.
3. Consent Business
3.A EDA Minutes from February 18, 2014 and March 4, 2014
Mocol /Tabke moved to approve the EDA minutes from February 18, 2014 and March
04, 2014. Motion carried 5 -0.
3.11. EDA Bill List
Mocol /Tabke moved to approve the bills in the amount of $3,487.77 from EDA Fund.
Motion carried 5 -0.
4. General Business
4.A Approval of Resolution No.2014 -2, A Resolution Authorizing the Establishment of a
Policy and Procedures for Tax Increment Financing
Ms. DiMaggio advised Council that the City has approved Tax Increment Financing (TIF)
assistance in the past, but has had no formal policy in terms of what performance criteria
the applicant should meet, in such things as job creation, wage requirements, and the like.
City Staff has developed this policy in collaboration with the City Attorney's office,
Kennedy & Graven, and the City's Financial Adviser, Springsted. Staff has also reviewed
the current policies from a variety of other cities within the State of Minnesota.
Ms. DiMaggio summarized the basic purposes of TIF, and what a City must do to create
a TIF district.
President Lehman stated that he would like to see modifications which would ensure
Official Proceedings of the
Economic Development Authority
March 18, 2014
Page 2
that the City is receiving the best proposal possible. He felt the "but for" test is too
loose to justify financial assistance in many situations.
Tabke/Whiting offered Resolution No. 2014 -2, A Resolution Authorizing the
Establishment of a Policy and Procedures for Tax Increment Financing. Motion carried 4-
1 with President Lehman in dissent.
4.B Approval of Resolution No. 2014 -3, A Resolution Authorizing the Establishment of a
Policy and Procedures for Tax Abatement
Ms. DiMaggio said the City has approved Tax Abatement in the past but has had no
formal policy in terms of what performance criteria the applicant should meet, in such
things as job creation, wage requirements, and the like. City Staff has developed this
policy in collaboration with the City Attorney's office, Kennedy & Graven, and the City's
Financial Adviser, Springsted. Staff has also reviewed the current policies from a variety
of other cities within the State of Minnesota.
Ms. DiMaggio said abatement is offered in Shakopee when jobs are created that pay a
living wage. The City of Shakopee has adopted a Business Subsidy Policy which requires
a minimum of 200% of the Federal minimum wage, or $14.50 per hour.
Ms. DiMaggio also provided a sample score sheet that she uses when applicants apply for
tax abatement.
It was the consensus of the EDA to cap assistance at a maximum of $15,000 per job to
mirror the TIF policy, rather than $25,000 per job. Member Tabke said he would like the
score sheet made public for potential applicants. The other members disagreed with
Tabke's request.
Tabke/Mocol offered Resolution No. 2014 -3, A Resolution Authorizing the Establishment
of a Policy and Procedures for Tax Abatement. Motion carried 5 -0.
Tabke/Mocol amended the resolution to reflect a maximum of $15,000 per job to mirror
the TIF policy. Motion carried 5 -0.
4.0 EDA Meeting Schedule Change
Mr. McNeill said last year the EDA approved a meeting schedule change that provided for
EDA meetings to be held twice per month.
Given the new format of the City Council meetings (one workshop meeting, and one
business meeting each per month), the EDA should consider not having an EDA meeting
on the first (Council workshop) Tuesday of the month. If necessitated by the press of
business, a special meeting could be called. The EDA would then meet only on the third
Tuesday of the month.
Whiting/Luce moved to adopt a schedule to provide for the regularly scheduled EDA
meeting to be held on the third Tuesdays of the month. Motion carried 5 -0.
Official Proceedings of the
Economic Development Authority
5. Adiourn
March 18, 2014
Page 3
Mocol /Tabke moved to adjourn to Tuesday, April 15, 2014 at 7:00 p.m. Motion carried 5-
0.
Julie A. Linnihan
Finance Director /City Clerk
Kim Weckman
Recording Secretary