HomeMy WebLinkAboutSeptember 19, 2017 EDA Shakopee Economic Development Authority
"'" September 19, 2017
7:00 PM
SHAKOPEE City Hall 485 Gorman St.
1. Roll Call
2. Approval of Agenda
3. Consent Business
3.A. EDA Bill List
3.B. EDA Minutes
4. General Business
4.A. Proposed 2018 EDA Special Benefit Levy and Budget
4.B. Resolution Designating Buildings as Structurally substandard within Shakopee
Redevelopment Project
4.C. Resolution Authorizing the Reimbursement of Certain Qualified Costs incurred
by the City of Shakopee
5. Reports
6. Adjourn to Tuesday, October 3, 2017 at 7 p.m.
Note to EDA Members:
If you have any questions or need additional information on any of the above items,please call Michael Kerski,prior to
the meeting at(952)233-9346.
Page 1 of 21
3.A.
pwakA
SHAKOPEE
Shakopee Economic Development Authority
September 19, 2017
FROM: Darin Nelson, Finance Director
TO: EDA Commission
Subject:
EDA Bill List
Policy/Action Requested:
Move to approve bills in the amount of$33,328.43 for the EDA Fund, which allows for
internal charges that are applied to the EDA fund.
Recommendation:
Approve
Discussion:
Attached is a listing of bills for the EDA for the period 8/16/2017 to 9/19/2017. Payments
are for general office supplies, attorney & professional service fees.
Payment to Ace Trailer Sales and Cargo Van-go for reimbursement for SAC credits.
$2300.00.
Budget Impact:
N/A
ATTACHMENTS:
D Monthly Financial Report
D EDA Check Register
Page 2 of 21
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3.B.
pwakA
SHAKOPE:
Shakopee Economic Development Authority
September 19, 2017
FROM: Lori J. Hensen, City Clerk
TO: EDA Board
Subject:
EDA minutes from August 15, 2017.
Policy/Action Requested:
Recommendation:
Discussion:
Budget Impact:
ATTACHMENTS:
D August 15, 2017
Page 6 of 21
Shakopee Economic Development Authority
MINUTES
August 15, 2017
SHAKOPEE 7:00 PM
City Hall 485 Gorman St.
1. Roll Call
Present: Chairman Matt Lehman, Commissioner Bill Mars, Commissioner Jay Whiting,
Commissioner Kathi Mocol, Commissioner Mike Luce
Staff Present: Administrator Bill Reynolds, Assistant Administrator Nate Burkett, City
Attorney Jim Thomson, Finance Director Darin Nelson, Public Works Director Steve
Lillehaug, Park and Recreation Director Jamie Polley, Planning and Development Director
Michael Kerski, City Clerk Lori Hensen, Senior Planner Mark Noble
2. Approval of Agenda
Commissioner William Mars made a motion to approve the agenda as presented, seconded
by Commissioner Kathi Mocol and the motion passed.
5 - 0
3. Consent Business
Commissioner William Mars made a motion to approve the consent agenda, seconded by
Commissioner Jay Whiting and the motion passed.
5 - 0
3.A. EDA Bill List
Approve bills in the amount of$53,330.90 for the EDA Fund, which allows for
internal charges that are applied to the EDA fund. (Motion was carried under the
consent agenda.)
3.B. EDA Minutes
Approve the minutes from July 18, 2017. (Motion was carried under the consent
agenda)
4. General Business
4.A. Facade Improvement Loan for 120 First Avenue E
Commissioner William Mars made a motion to approve a facade loan in the amount
Page 7 of 21
of$50,000 for the rehabilitation of 120 First Avenue E including restoring the
storefront, seconded by Commissioner Kathi Mocol and the motion passed.
3 - 2
Nays: Chairman Lehman, Commissioner Luce
4.13. Facade Improvement Loan for 126 Holmes Street S
Commissioner William Mars made a motion to approve a facade loan in the amount
of$35,000 for the rehabilitation of 126 Holmes Street S pending final sale, seconded
by Commissioner Jay Whiting and the motion passed.
3 - 2
Nays: Chairman Lehman, Commissioner Luce
4.C. Facade Improvement Loan for 507 First Avenue E
Commissioner Jay Whiting made a motion to approve a fagade loan in the amount of
$30,000 for the rehabilitation of 507 First Ave E for a new entrance fagade on the
existing building, seconded by Commissioner Kathi Mocol and the motion passed.
5 - 0
4.1). Facade Improvement Loan for 124 First Avenue West
Commissioner William Mars made a motion to approve a fagade loan in the amount
of$30,000 for the rehabilitation of 124 First Avenue West, seconded by
Commissioner Kathi Mocol and the motion passed.
5 - 0
5. Reports
6. Adjourn to Tuesday, September 19, 2017 at 7 p.m.
Commissioner Jay Whiting made a motion to adjourn to September 19, 2017 at 7:00 p.m.,
seconded by Commissioner William Mars and the motion passed.
5 - 0
Page 8 of 21
4.A.
pwakA
SHAKOPE:
Shakopee Economic Development Authority
September 19, 2017
FROM: Darin Nelson, Finance Director
TO: EDA Commissioners
Subject:
Proposed 2018 EDA Special Benefit Levy and Budget
Policy/Action Requested:
Adopt Resolution No. 17-4, approving the proposed 2018 EDA special benefit levy of
$350,000 and the proposed 2018 budget.
Recommendation:
Approve the resolution as requested.
Discussion:
The past several years the EDA has routinely received a transfer from the General Fund in
order to fund operations, fagade loans and the current downtown improvement project. In
essence this transfer from the General Fund comes from a portion of the city's tax levy. The
creation of an EDA special benefit levy should be considered a budget neutral change, as
the city's general levy will no longer include the transfer to the EDA.
In 1995, the Shakopee Housing and Redevelopment Authority (HRA) transferred its
authority to the Shakopee EDA via Resolution No. 4206. This action allows the EDA to levy
a separate tax or "Special Benefit Levy", which is not part of the city's general property tax
levy. This EDA special benefit levy is subject to a limit of 0.0185 percent of the city's
estimated market value. The EDA levy cap for 2018 is estimated to be $768,500.
The advantage of the EDA special benefit levy is that the levy is applied to the market value
of all taxable properties within the city including properties that are currently part of a tax
abatement or TIF plan. The EDA levy is also identified on property tax statements as a
separate local tax outside of the city's general property tax.
Staff is recommending an EDA special benefit levy of$350,000 for 2018. A home valued at
$229,100 for taxes payable 2017 would pay approximately $20 towards this EDA levy. A
Page 9 of 21
commercial property valued at approximately $1.0 million would pay approximately $93.
State Statutes require the consent of the City Council, prior to the tax levy becoming
effective. The City Council will need to act on this item after the council reconvenes the
council meeting on Tuesday, September 19. The EDA special benefit levy will be certified to
the County Auditor by deadline of September 30, 2017. In addition, the City Council may
determine to decrease the Authority's levy when finalizing the city's levy for 2018.
Also, attached is a 2018 preliminary EDA budget. The EDA budget will be reviewed in
further detail as part of the overall city budget later this year. The budget includes $143,300
for wages and benefits which includes a portion of the Planning & Development
Director's time and an additional position focused on business retention activities. The
EDA budget also includes $150,000 for facade loan requests and $25,000 for the Main Street
Program.
Budget Impact•
Special benefit levy will provide operational and grant funding for 2018.
ATTACHMENTS:
D Resolution No. 17-4
D 2018 Preliminary EDA Budget
Page 10 of 21
ECONOMIC DEVELOPMENT AUTHORITY FOR THE
CITY OF SHAKOPEE,MINNESOTA
RESOLUTION NO. 17-4
AUTHORIZING THE LEVY OF A SPECIAL BENEFIT LEVY PURSUANT TO
MINNESOTA STATUTES, SECTION 469.033, SUBDIVISION 6 AND APPROVAL
OF A BUDGET FOR FISCAL YEAR 2018
WHEREAS,pursuant to Resolution No. 4206, adopted by the City Council of the City of Shakopee,
Minnesota(the"City"), on April 4, 1995, as amended by Resolution No. 4381, adopted by the City Council
of the City on February 6, 1996, and Minnesota Statutes, Sections 469.090 through 469.1082, the City
created the Economic Development Authority for the City of Shakopee,Minnesota(the"Authority"); and
WHEREAS, the Authority has the ability to exercise all powers and duties of a housing and
redevelopment authority under the provisions of Minnesota Statutes, Sections 469.001 through 469.047 (the
"HRA Act"); and
WHEREAS, Section 469.033, subdivision 6 of the HRA Act permits the Authority to levy and
collect a special benefit tax of up to 0.0185% of estimated market value of taxable property within the City,
levied upon all taxable real property within the City; and
WHEREAS, the special benefit tax levy authorized by Section 469.033, subdivision 6 of the HRA
Act is separate and distinct from the City's levy and is not subject to levy limits; and
WHEREAS, the Authority desires to levy a special benefit tax in the amount of$350,000, which is
less than 0.0185%of the estimated market value of taxable property within the City; and
WHEREAS, the Authority has determined to adopt a budget for fiscal year 2018 that provides for
levy of the special benefits tax in amount of$350,000 to be used for the Authority's economic development
and redevelopment activities; and
NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners (the "Board") of the
Economic Development Authority for the City of Shakopee,Minnesota as follows:
1. The Board hereby approves a budget of$350,000 in proceeds of special benefits tax to be
collected in 2018, subject to the approval of such budget by the City Council of the City(the
"City Council").
2. Staff of the Authority is hereby authorized and directed to file the budget with the City in
accordance with Section 469.033, subdivision 6 of the HRA Act and request that the City
Council consider approval of the special benefits tax levy.
3. There is hereby levied a special benefit tax pursuant to Section 469.033, subdivision 6 of the
HRA Act in the amount equal to the lesser of a levy at a rate of 0.0185% of the estimated
market value of taxable property within City or $350,000 with respect to taxes payable in
calendar year 2018, contingent upon the approval of the City Council.
4. Staff of the Authority is hereby authorized and directed to take such other actions as are
necessary to levy and certify such levy upon approval by the City Council.
507168v1 JAE SH235-1
Page 11 of 21
Sworn and Executed Under My Hand this 19"day of September,2017.
President
Executive Director
507168v1 JAE SH235-1 2
Page 12 of 21
2018 Annual Budget
Company: 02190- ECONOMIC DEVELOPMENT AUTHORITY
Object Actual Actual Budget Revised Budget Requested
Account 2015 2016 2017 2017 Budget 2018
02190-ECONOMIC DEVELOPMENT AUTHORITY
REVENUES: 0.00 0.00 0.00 0.00 0.00
4011 -CURRENT PROPERTY TAX (1.40) (6.16) 0.00 0.00 (350,000.00)
4015-FISCAL DISPARITIES (1.10) 0.00 0.00 0.00 0.00
TAXES (2.50) (6.16) 0.00 0.00 (350,000.00)
LICENSES AND PERMITS 0.00 0.00 0.00 0.00 0.00
4450- STATE GRANTS&AIDS (1,000,000.00) (1,000,000.00) (935,000.00) (450,000.00) 0.00
4482-COUNTY GRANTS/AIDS 0.00 (29,810.18) 0.00 0.00 0.00
INTERGOVERNMENTAL (1,000,000.00) (1,029,810.18) (935,000.00) (450,000.00) 0.00
4512-DEVELOPMENT REIMBURSEMENT 0.00 0.00 0.00 (8,500.00) 0.00
4588-BUSINESS SUBSIDY APP FEE (24,000.00) (6,000.00) (6,000.00) (12,000.00) (6,000.00)
CHARGES FOR SERVICES (24,000.00) (6,000.00) (6,000.00) (20,500.00) (6,000.00)
4833-INTEREST (9,907.76) (19,557.75) (10,000.00) (16,000.00) (5,000.00)
4834-CHANGE IN FAIR MARKET VALUE 572.26 4,857.45 0.00 0.00 0.00
4850-MISCELLANEOUS 0.00 (250,311.99) 0.00 0.00 0.00
MISCELLANEOUS (9,335.50) (265,012.29) (10,000.00) (16,000.00) (5,000.00)
REVENUES (1,033,338.00) (1,300,828.63) (951,000.00) (486,500.00) (361,000.00)
EXPENDITURES: 0.00 0.00 0.00 0.00 0.00
6002-WAGES 77,665.74 86,179.31 113,700.00 46,000.00 116,200.00
6015-WAGES-PART TIME/TEMP 0.00 0.00 100.00 0.00 0.00
WAGES 77,665.74 86,179.31 113,800.00 46,000.00 116,200.00
6122-PERA 5,825.06 6,463.24 8,500.00 3,500.00 8,700.00
6124-FICA 4,914.97 5,550.33 8,700.00 3,500.00 8,900.00
6135-HEALTH 14,100.76 12,905.12 14,100.00 5,900.00 7,000.00
6139-POST EMPLOYMENT HEALTH PLAN 394.19 432.13 400.00 200.00 400.00
6140-LIFE/LTD 220.00 239.52 300.00 100.00 200.00
6145-DENTAL 475.18 510.82 500.00 200.00 500.00
6170-WORKERS COMPENSATION 593.44 602.17 500.00 200.00 400.00
6180-COMPENSATED ABSENCES (1,775.07) 492.80 0.00 500.00 1,000.00
6186-PENSION EXPENSE 0.00 409.00 0.00 0.00 0.00
BENEFITS 24,748.53 27,605.13 33,000.00 14,100.00 27,100.00
WAGES&BENEFITS 102,414.27 113,784.44 146,800.00 60,100.00 143,300.00
6202-OPERATING SUPPLIES 27.00 872.55 600.00 500.00 500.00
6210-OFFICE SUPPLIES 44.48 49.68 400.00 300.00 500.00
6310-ATTORNEY 20,579.77 4,035.99 11,000.00 14,000.00 10,000.00
6312-ENGINEERING/DESIGN CONSULTANT 475.00 828.30 10,000.00 20,000.00 7,000.00
6318-FILING FEES 216.00 736.00 1,800.00 0.00 200.00
6327-OTHER PROF SERVICES 228,713.21 213,222.37 8,000.00 75,000.00 155,000.00
6332-POSTAGE 210.26 166.83 200.00 200.00 100.00
6334-TELEPHONE 546.83 590.42 800.00 500.00 600.00
6336-PRINTING/PUBLISHING 1,320.06 853.83 700.00 3,500.00 2,500.00
6338-ADVERTISING 2,000.00 0.00 2,000.00 500.00 0.00
6351 -INSURANCE PREMIUM(IS FUND) 0.00 1,380.00 1,300.00 3,290.00 3,400.00
6352-LIABILITY 1,258.00 0.00 0.00 0.00 0.00
6410- SOFTWARE-ANNUAL FEES 1,365.00 0.00 0.00 0.00 0.00
6415- SOFTWARE-ANNUAL FEES(IS FUND) 2,199.96 2,199.96 2,300.00 2,300.00 2,400.00
6420-EQUIPMENT RENT 28.03 25.88 0.00 0.00 0.00
6430-BUILDING RENT(IS FUND) 3,140.04 3,230.04 3,500.00 3,500.00 0.00
6472-CONFERENCE/SCHOOL/TRAINING Page IW5260 1,690.47 2,500.00 1,500.00 1,500.00
2018 Annual Budget
Company: 02190- ECONOMIC DEVELOPMENT AUTHORITY
Object Actual Actual Budget Revised Budget Requested
Account 2015 2016 2017 2017 Budget 2018
6475-TRAVEL/SUBSISTENCE 2,537.83 1,734.54 1,200.00 1,200.00 1,000.00
6480-DUES 625.00 1,370.00 900.00 900.00 700.00
6490- SUBSCRIPTIONS/PUBLICATIONS 49.03 50.20 100.00 100.00 0.00
SUPPLIES AND SERVICES 267,270.50 233,037.06 47,300.00 127,290.00 185,400.00
6610-AWARDS&DAMAGES 1,000,000.00 1,000,000.00 935,000.00 450,000.00 0.00
6640-DESIGNATED MISCELLANEOUS 0.00 25,000.00 25,000.00 25,000.00 25,000.00
MISCELLANEOUS EXPENSE 1,000,000.00 1,025,000.00 960,000.00 475,000.00 25,000.00
6710-LAND 250,311.99 0.00 0.00 0.00 0.00
6730-BUILDINGS 0.00 0.00 0.00 0.00 0.00
6760-IMPROVEMENTS 0.00 0.00 999,500.00 1,500,000.00 0.00
CAPITAL OUTLAY 250,311.99 0.00 999,500.00 1,500,000.00 0.00
EXPENDITURES 1,619,996.76 1,371,821.50 2,153,600.00 2,162,390.00 353,700.00
OTHER FINANCING: 0.00 0.00 0.00 0.00 0.00
TRANSFERS IN (1,450,385.00) (905,920.00) (700,000.00) (700,000.00) 0.00
TRANSERS OUT 0.00 0.00 455,575.00 0.00 0.00
OTHER FINANCING (1,450,385.00) (905,920.00) (244,425.00) (700,000.00) 0.00
Total 02190-ECONOMIC DEVELOPMENT AUTHO (863,726.24) (834,927.13) 958,175.00 975,890.00 (7,300.00)
Page 14 of 21
4.B.
pwakA
SHAKOPE:
Shakopee Economic Development Authority
September 19, 2017
FROM: Michael Kerski, Planning & Development Director
TO: President and Board
Subject:
Resolution Designating Duildings as Structurally Substandard within Shakopee
Redevelopment Project
Policy/Action Requested:
Vote on Resolution 17-2
Recommendation:
Approval Resolution 17-2
Discussion:
Under Minnesota Statutes, the City is authorized to deem parcels as occupied by structurally
substandard buildings before demolition or removal of the buildings, subject to certain terms
and conditions.
The city worked with Springsted and Kennedy and Graven to identify a process to consider
creation of specific or larger redevelopment or renovation districts for downtown Shakopee.
LHB, considered one of the leading experts on redevelopment regulations, was retained to
survey properties in downtown Shakopee for inclusion/exclusion from any district. Three
specific sites were examined in depth to see if they would meet the State requirements
including the former city hall, current Doogie Doos and the adjacent single family home. All
three met the requirements.
Budget Impact:
N/A
ATTACHMENTS:
D Resolution No. 17-2
Page 15 of 21
ECONOMIC DEVELOPMENT AUTHORITY FOR THE
CITY OF SHAKOPEE,MINNESOTA
RESOLUTION NO. 17-2
RESOLUTION DESIGNATING BUILDINGS AS STRUCTURALLY
SUBSTANDARD WITHIN SHAKOPEE REDEVELOPMENT PROJECT
BE IT RESOLVED By the Board of Commissioners ("Board") of the Economic
Development Authority for the City of Shakopee,Minnesota("Authority") as follows:
Section 1. Recitals.
1.01. Under Minnesota Statutes, Section 469.174, subd. 10(d), the Authority is authorized
to deem parcels as occupied by structurally substandard buildings before the demolition or removal
of the buildings, subject to certain terms and conditions as described in this resolution.
1.02. The Authority intends to cause demolition of the buildings located on the property
described in Exhibit A hereto (the "Designated Property"), and may in the future include the
Designated Property in a redevelopment as defined in Minnesota Statutes, Sections 469.174, subd.
10 or renewal and renovation tax increment financing district as defined in Minnesota Statutes,
Sections 469.174, subd. 10a.
Section 2. Buildin s Desianated Substandard; Other Proceedings.
2.01. The Authority finds that the buildings on the Designated Property as described in
Exhibit A are structurally substandard to a degree requiring substantial renovation or clearance,
based upon the analysis of such buildings by LHB dated August 28, 2017 and on file in City Hall.
2.02. After the date of approval of this resolution, the buildings on the Designated
Property may be demolished or removed by the Authority, or such demolition or removal may be
financed by the Authority, or may be undertaken by a developer under a development agreement
with the Authority.
2.03. The Authority intends to include the Designated Property in a redevelopment or
renewal and renovation tax increment financing district, and to file the request for certification of
such district with the Scott County auditor within three (3)years after the date of demolition of the
buildings on the Designated Property.
2.04. Upon filing the request for certification of the new tax increment financing district,
the Authority will notify the Scott County auditor that the original tax capacity of the Designated
Property must be adjusted to reflect the greater of(a) the current net tax capacity of the parcel, or
(b) the estimated market value of the parcel for the year in which the buildings were demolished or
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removed, but applying class rates for the current year, all in accordance with Minnesota Statutes,
Section 469.174, subd. 10(d).
2.05. Authority staff and consultants are authorized to take any actions necessary to carry
out the intent of this resolution.
Sworn and Executed Under My Hand this 19th day of September, 2017.
President
Executive Director
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EXHIBIT A
Description of Designated Property
■ 129 Holmes St. S. (Parcel ID: 270011580)
■ 207—215 Holmes St. S. —Municipal Parking Lot(Parcel ID: 270012430 &270012440)
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4.C.
pwakA
SHAKOPE:
Shakopee Economic Development Authority
September 19, 2017
FROM: Michael Kerski, Planning & Development Director
TO: President and Board
Subject:
Reimbursement of certain costs to the City of Shakopee from funds from TIF District No. 18
Policy/Action Requested:
Vote on Resolution No. 17-3
Recommendation:
Approve Resolution No. 17-3
Discussion:
The city may expend funds for demolition and other qualified costs incurred within a
potential Redevelopment/Renovation TIF area in downtown Shakopee. Should the TIF
District No. 18 be approved at a later date, those costs expended by the city may be
reimbursed from funds received since the EDA would serve as the administrator for the TIF.
Without this resolution, the city would not be able to be reimbursed for expenses at a later
date should a TIF be formed.
Budget Impact:
ATTACHMENTS:
D Resolution No. 17-3
Page 19 of 21
ECONOMIC DEVELOPMENT AUTHORITY FOR THE
CITY OF SHAKOPEE,MINNESOTA
RESOLUTION NO. 17-3
RESOLUTION AUTHORIZING THE REIMBURSEMENT OF
CERTAIN QUALIFIED COSTS INCURRED BY THE CITY OF
SHAKOPEE
BE IT RESOLVED by the Board of Commissioners (the "Board") of the Economic Development
Authority for the City of Shakopee,Minnesota(the"Authority") as follows:
WHEREAS, the Authority and the City of Shakopee, Minnesota (the "City") intend to establish
Tax Increment Financing District No. 18 (the "TIF District") within the Downtown (the "Project")
pursuant to Minnesota Statutes, Sections 469.174 through 469.1794, as amended(the"TIF Act"), and will
adopt a Tax Increment Financing Plan for the purpose of financing certain improvements within the
Proj ect.
WHEREAS,the Authority will administer the TIF District; and
WHEREAS, the City has determined to pay for certain costs of demolition of substandard
buildings within the proposed TIF District, costs of environmental remediation, and administrative costs
(the "Qualified Costs"), which costs may be financed on a temporary basis from City or Authority funds
available for such purposes; and
WHEREAS, on the date hereof, the City Council of the City adopted a resolution (the "Interfund
Loan Resolution") approving an advance or loan of money from the City's general fund or any other fund
from which such advances may be legally authorized in order to finance the Qualified Costs (the
"Interfund Loan Resolution"), as authorized by Section 469.178, subdivision 7 of the TIF Act; and
WHEREAS, the Authority has determined that it may use tax increments generated from property
within the TIF District to reimburse the City for the City's payment of all or a portion of the Qualified
Costs as authorized under the Interfund Loan Resolution; and
WHEREAS,the Authority intends to reimburse the City for all or a portion of the Qualified Costs
from tax increments derived from the property within the TIF District in accordance with the terms of the
Interfund Loan Resolution and this resolution.
NOW THEREFORE BE IT RESOLVED by the Board as follows:
1. The Authority approves the Interfund Loan based on the terms set forth in the City Council
resolution adopted as of the date hereof and shall reimburse the City for the City's payments of
principal of and interest on the Interfund Loan(the"Payments") semiannually on each February 1
and August l (each a "Payment Date"), commencing on the first Payment Date on which the
Authority has Available Tax Increment(defined below), or on any other dates determined by the
Executive Director of the Authority, through the date of last receipt of tax increment from the TIF
District.
2. Reimbursement of the Interfund Loan shall be made solely from "Available Tax Increment,"
which shall mean, on each Payment Date, tax increment available after other obligations have
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been paid, or as determined by the Executive Director of the Authority, generated in the
preceding six (6) months with respect to the property within the TIF District and remitted to the
City by Scott County, Minnesota, all in accordance with the TIF Act. Reimbursement of the
Interfund Loan may be subordinated to any outstanding or future bonds or notes issued by the
City or the Authority and secured in whole or in part with Available Tax Increment.
3. The principal sum and all accrued interest payable under the Interfund Loan are prepayable in
whole or in part at any time by the Authority without premium or penalty. No partial prepayment
shall affect the amount or timing of any other regular payment otherwise required to be made
under the Interfund Loan.
4. The Interfund Loan is evidence of an internal borrowing by the City in accordance with
Section 469.178, subdivision 7 of the TIF Act, and is a limited obligation payable solely from
Available Tax Increment pledged to the payment hereof under the Interfund Loan Resolution.
The Interfund Loan and the interest thereon shall not be deemed to constitute a general obligation
of the State of Minnesota or any political subdivision thereof, including, without limitation, the
Authority. Neither the State of Minnesota,nor any political subdivision thereof shall be obligated
to pay the principal of or interest on the Tnterfund Loan or other costs incident thereto except out
of Available Tax Increment, and neither the full faith and credit nor the taxing power of the State
of Minnesota or any political subdivision thereof is pledged to the payment of the principal of or
interest on the Interfund Loan or other costs incident hereto. The Authority shall have no
obligation to pay any principal amount of the Interfund Loan or accrued interest thereon, which
may remain unpaid after the final Payment Date.
5. The Authority may amend the tenns of this resolution at any time by resolution of the Board of
Commissioners.
Sworn and Executed Under My Hand this 19t'day of September, 2017.
President
Executive Director
2
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