HomeMy WebLinkAbout3.a. Approval of Minutes: May 19, 2009
OFFICIAL PROCEEDINGS OF THE 3a
ECONOMIC DEVELOPMENT AUTHORITY
SHAKOPEE, MINNESOTA
Regular Session
May 19, 2009
Members Present: President Matt Lehman, Commissioners Pat Heitzman, Steve Clay,
Terry Joos, and John Schmitt.
Staff Members Present: Mark McNeill, City Administrator; Jim Thomson, City Attorney;
R. Michael Leek, Community Development Director; and Bruce
Loney, Public Works Director/City Engineer and Judith S. Cox,
City Clerk.
1. Roll Call
President Lehman called the meeting to order at 7:24 p.m. and roll was noted as above.
2. Approval of the Agenda
Joos/Heitzman moved to approve the agenda. Motion carried 5-0.
3. Approval of the Minutes
Joos/Schmitt moved to approve the minutes from April 21, 2009. Motion carried 5-0.
4. Approval of the Bills.
Joos/Schmitt moved to approve the bills in the amount of 41.25.
5. FILP Maintenance Standards
R. Michael Leek, Community Development Director, presented the EDA with the Use of
the Fayade Improvement Loan Program (FILP).
Mr. Leek said that previously the EDA provided fayade improvement loan to the Scott
County Historical Society for sealing and painting of the Mauri<?e Stans House. During
discussion of the application, Council asked whether maintenance activities are
maintenance activities independent of whether the building is historic or not, and whether
maintenance activities should/should not be funded under the program whether the
building is historic or not.
It was the consensus of the EDA to not make any changes in the FILP but to review the
applications on a case by case basis. Mr. Leek also suggested that he could work on an
approach for the application and for the loan agreement that requires the applicant to go
beyond just providing the materials list but also the anticipated maintenance schedule for
the materials that are going to be a part of the proj ect. In the agreement could be
included some terms that say if the application is made for activities because of
maintenance activities that were not consistent with what was originally submitted, it
won't be considered.
6. Discussion of Tax Increment Financing
Mr. Leek presented the EDA with the Use of Tax Increment Financing (TIF).
Official Proceedings of the May 19,2007
Economic Development Authority Page -2-
Mr. Leek said the City received a request for business assistance from a manufacturing
firm that proposes to occupy about 50,000 square feet in Valley Green Business Park,
bring 100 jobs and pay more than $15.00/hour. He explained that this meets the
standards in the City's policy.
Mr. Leek reported that to date, City staff and the City's Consultant, Shannon Sweeney,
have discussed municipal tax abatement with the applicant, but the amount of abatement
that would be generated is relatively small. Typically the City does tax abatement. Tax
increment financing has not been used in recent years by the City of Shakopee, but can
generate a substantially larger assistance benefit.
Mr. Shannon Sweeney presented the EDA with the pros and cons oftax increment
financing.
Mr. Leek asked the EDA for direction regarding whether to consider the use oftax
increment financing for business assistance purposes. Discussion followed.
It was the consensus ofthe EDA that TIF is something that could be considered, but the
preference where ever possible is to use the tax abatement approach. If tax abatement, it
would be pay as you go. The EDA would also like have an idea of what the
administrative costs would be to create a tax increment district.
7. Adjourn
Joos/Schmitt moved to adjourn. Motion carried 5-0.
The meeting adjourned at 8: 15 p.m.
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~-Judith S. Cox
EDA Secretary
Kim Weckman
Recording Secretary