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Home My WebLink AboutSeptember 03, 2024 - EDA Packet Shakopee Economic Development Authority II°IikAll September 3, 2024 7:00 PM SHAKOPEE City Hall, 485 Gorman St. 1. Roll Call 2. Approval of Agenda 3. Consent Business 3.A. *EDA Minutes 4. General Business 4.A. 2025 EDA Levy and Budget 5. Reports 5.A. EDA Bill List 6. Adjourn to Tuesday, October 1, 2024 at 7:00 pm 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 17 3.A. PaeLll SHAKOPE E Shakopee Economic Development Authority September 3, 2024 FROM: Lori J. Hensen, City Clerk TO: President and Commission Members Subject: EDA minutes of August 7, 2024. Policy/Action Requested: Approve the minutes from August 7, 2024. Recommendation: Approve the minutes from August 7, 2024. Discussion: Budget Impact: ATTACHMENTS: o August 7, 2024 Page 2 of 17 Shakopee Economic Development Authority IIIDIaAl MINUTES August 7, 2024 SHAKOPEE 7:00 PM City Hall,485 Gorman St. 1. Roll Call Present: President Angelica Contreras, Commissioners Matt Lehman, Jay Whiting, Jim DuLaney, Jesse Lara Staff Present: City Administrator Bill Reynolds, Assistant City Administrator Chelsea Petersen, City Attorney Jim Thomson, City Engineer Alex Jordan, Finance Director Nate Reinhardt, City Clerk Lori Hensen, Planning/Development Director Michael Kerski, Park/Recreation Director Kelsi McNutt, Fire Chief Mike Nelson, Public Works Director Bill Egan, Police Chief Jeff Tate 2. Approval of Agenda Commissioner Jesse Lara made a motion to approve the agenda, seconded by Commissioner Jay Whiting and the motion passed. 5 - 0 3. Consent Business Commissioner Jay Whiting made a motion to approve the consent agenda, seconded by Commissioner Jim Dulaney and the motion passed. 5 - 0 3.A. *EDA Minutes 4. General Business 5. Reports 5.A. EDA Bill List 6. Adjourn to Tuesday, September 3, 2024 at 7:00 pm Commissioner Jim Dulaney made a motion to adjourn to Tuesday, September 3, 2024 at 7:00 pm, seconded by Commissioner Jay Whiting and the motion passed5 - 0 Page 3 of 17 4.A. SHAKOPEE Shakopee Economic Development Authority September 3, 2024 FROM: Nate Reinhardt, Finance Director TO: President and Commission Members Subject: Economic Development Authority (EDA) Levy and Budget for 2025. Policy/Action Requested: Adopt Resolutions E2024-004 and E2024-005, approving the 2025 EDA special benefit levy of$500,000 and 2025 budget, respectively. Recommendation: Adopt the resolutions as requested. Discussion: The Shakopee EDA levies their own separate tax, which is not part of the city's general property tax levy, and is identified separately on property tax statements. The EDA levy is subject to to a limit of of 0.0185 percent of the city's estimated market value. The EDA levy cap for 2025 is $1,439,083. The EDA levy is applied to all taxable properties within the city including properties that are currently part of a tax abatement or tax increment plan. The EDA levy is proposed at $500,000 which is no change from the previous levy. The EDA levy is specifically designated for economic development activities and any funds unspent from year to year will remain in this fund for this purpose. For the median value home value at $350,700, if the proposed levy of$500,000 is approved the annual property taxes on the median value home would be approximately $20. This is about a $1 less than taxes paid on the 2024 median value home of$338,400. State statues require the approval of City Council, prior to the tax levy becoming effective. The EDA levy will be forwarded to Council for approval. A preliminary EDA must be certified to the County Auditor by the deadline of September 30, 2024. Similar to the city's levy, the final levy can be reduced, but cannot be increased. However, staff anticipates asking City Council for final approval of the EDA levy at the City Council's September 17, Page 4 of 17 2024 meeting. Attached is the 2025 EDA budget and the 2025 River City Centre budget. River City Centre operations are accounted for under a separate sub-fund of the EDA. The EDA budget includes revenues from the property tax levy, $330k from Shakopee Public Utilities (SPU) based on the payment in lieu of taxes agreement and $28k in general admissions related to EDA's TAP event. Expenditures include $253k for wages and benefits which includes the Economic Development Coordinator plus a half of the Planning & Development Director's time. The EDA budget also includes $25k for legal services, $50k for engineering and $281k in professional services ($70k for facade loan requests/$91k for continued entrepreneurship programming/$25k for Main Street Programming/$30k for TAP event/$15 for marketing/$50k miscellaneous consulting). The River City Centre budget includes estimated tenant revenues of$416k and a positive net income of$192k. Revenue amounts are best estimates and will be impacted by renewals or tenant turnover. The EDA (including River City Centre) had a cash deficit at the end of 2023, as a result of the acquisition of the master lease and building improvements to River City Centre. The deficit will be recouped over time through lease revenue and interfund repayments from the administration funds of Tax Increment District #18. Budget Impact: The EDA levy will provide the EDA with operational funding for 2025. ATTACHMENTS: o E2024-004 Authorizing 2025 EDA Levy o E2024-05 EDA 2025 Budget o 2025 EDA Budget o 2025 RCC Budget o 2025 EDA Budget Presentation Page 5 of 17 ECONOMIC DEVELOPMENT AUTHORITY FOR THE CITY OF SHAKOPEE,MINNESOTA RESOLUTION NO.E2024-004 AUTHORIZING THE LEVY OF A SPECIAL BENEFIT LEVY PURSUANT TO MINNESOTA STATUTES,SECTION 469.033,SUBDIVISION 6 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$500,000, 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 2025 that provides for levy of the special benefits tax in amount of$500,000 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$500,000 in proceeds of special benefits tax to be collected in 2025,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 $500,000 with respect to taxes payable in calendar year 2025,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 6 of 17 Sworn and Executed Under My Hand this 3rd day of September 2024. President Executive Director 507168v1 JAE SH235-1 2 Page 7 of 17 ECONOMIC DEVELOPMENT AUTHORITY FOR THE CITY OF SHAKOPEE,MINNESOTA RESOLUTION NO. E2024-005 A RESOLUTION ADOPTING THE 2025 BUDGET BE IT RESOLVED BY THE BOARD OF COMMISSIONERS OF THE ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF SHAKOPEE,MINNESOTA that the 2025 Budget with the estimated revenues and appropriations for the Economic Development Authority Fund as shown below is hereby adopted. 2025 Budget Economic Development Authority Fund Revenues Taxes $ 500,000 Intergovernmental 330,000 Charges for Services 28,000 Miscellaneous 1,000 Total Revenues 842,000 Expenditures 670,000 Economic Development $ 189,000 Net Surplus(Deficit) Sworn and Executed Under My Hand this 3rd day of September 2024. President Executive Director Page 8 of 17 2025 Annual Budget Company: ECONOMIC DEVELOPMENT AUTHORITY Object Actual Actual Budget Requested Account 2022 2023 2024 Budget 2025 02190 -ECONOMIC DEVELOPMENT AUTHORITY REVENUES: 4011 - CURRENT PROPERTY TAX (459,526.26) (439,707.91) (500,000.00) (500,000.00) 4013 - MARKET VALUE CREDIT (49.12) (41.20) 0.00 0.00 4015 - FISCAL DISPARITIES (34,862.30) (53,604.79) 0.00 0.00 4020- MOBIL HOME TAX (6.59) (4.07) 0.00 0.00 4025- PAYMENT IN LIEU OF TAXES (934.32) (896.27) 0.00 0.00 4031 - EXCESS TAX INCREMENT 0.00 (74,001.42) 0.00 0.00 4040 - OTHER TAXES (0.52) (26.74) 0.00 0.00 TAXES (495,379.11) (568,282.40) (500,000.00) (500,000.00) 4450-STATE GRANTS &AIDS 0.00 (23,250.00) 0.00 0.00 4490-OTHER GRANTS/AIDS (240,476.01) 0.00 0.00 0.00 4705- SPUC REVENUE CONTRIBUTION (315,512.68) (332,058.59) (300,000.00) (330,000.00) INTERGOVERNMENTAL (555,988.69) (355,308.59) (300,000.00) (330,000.00) 4588- BUSINESS SUBSIDY APP FEE 0.00 0.00 (12,000.00) 0.00 4766 - GENERAL ADMISSIONS (29,148.80) (23,995.90) (29,000.00) (28,000.00) CHARGES FOR SERVICES (29,148.80) (23,995.90) (41,000.00) (28,000.00) 4833 - INTEREST (11,805.24) (42,333.72) (1,000.00) (1,000.00) 4834 - CHANGE IN FAIR MARKET VALUE 64,500.46 (4,509.66) 0.00 0.00 4850 - MISCELLANEOUS 0.00 0.00 0.00 0.00 4855 - SALE OF ASSETS 0.00 (12,000.00) 0.00 0.00 MISCELLANEOUS 52,695.22 (58,843.38) (1,000.00) (1,000.00) REVENUES (1,027,821.38) (1,006,430.27) (842,000.00) (859,000.00) EXPENDITURES: 6202 - SUPPLIES 3,006.49 3,744.83 3,400.00 3,500.00 6213 - MEETINGS 1,023.37 10,987.97 2,500.00 3,000.00 6310 -ATTORNEY 6,135.00 3,761.00 25,000.00 25,000.00 6312 - ENGINEERING/DESIGN CONSULTANTS 0.00 0.00 50,000.00 50,000.00 6315- BUILDING REPAIRS & MAINTENANCE 0.00 0.00 0.00 0.00 6327 - PROFESSIONAL SERVICES 107,974.62 226,140.04 281,000.00 281,000.00 6332 - POSTAGE 12.95 416.91 500.00 500.00 6334 -TELEPHONE 235.56 510.47 250.00 500.00 6336- PRINTING/PUBLISHING 289.00 1,213.27 200.00 500.00 6338-ADVERTISING 9,495.87 8,288.32 15,000.00 15,000.00 6351 - INSURANCE PREMIUM (IS FUND) 17,300.00 11,300.00 11,400.00 8,700.00 6362 - ELECTRIC 0.00 0.00 0.00 0.00 6410 - SOFTWARE 0.00 12,328.38 0.00 13,600.00 6415- INFORMATION TECHNOLOGY RENT (IS FUND) 1,800.00 1,800.00 2,400.00 2,200.00 6420 - EQUIPMENT LEASES 5,540.98 100.98 0.00 0.00 6430 - BUILDING RENT (IS FUND) 6,500.04 6,600.00 6,200.00 6,000.00 6472-CONFERENCE/SCHOOL/TRAINING (ALL EXPENSES) 4,198.22 670.24 3,000.00 3,000.00 6476- MILEAGE 0.00 0.00 1,000.00 500.00 6480 - DUES 1,655.00 2,066.00 2,000.00 2,100.00 6490 - SUBSCRIPTIONS/PUBLICATIONS 599.00 564.00 1,900.00 1,500.00 Page 9 of 17 2025 Annual Budget Company: ECONOMIC DEVELOPMENT AUTHORITY Object Actual Actual Budget Requested Account 2022 2023 2024 Budget 2025 SUPPLIES AND SERVICES 165,766.10 290,492.41 405,750.00 416,600.00 6610 -AWARDS & DAMAGES 240,476.01 0.00 0.00 0.00 6620 - PROPERTY TAX/SPECIAL ASSESS 1,284.00 0.00 0.00 0.00 6640 - DESIGNATED MISCELLANEOUS 0.00 0.00 0.00 0.00 6661 -CASH SHORT 0.00 (41.00) 0.00 0.00 MISCELLANEOUS EXPENSE 241,760.01 (41.00) 0.00 0.00 6765 - IMPROVEMENTS/INFRASTRUCTURE 0.00 13,726.00 150,000.00 0.00 CAPITAL OUTLAY 0.00 13,726.00 150,000.00 0.00 6860- FISCAL AGENT FEES 0.00 525.00 0.00 0.00 DEBT SERVICE 0.00 525.00 0.00 0.00 EXPENDITURES 574,486.67 519,356.43 795,550.00 670,000.00 8101 - PROCEEDS CAPITAL ASSET SALES 0.00 (275,000.00) 0.00 0.00 GAIN/LOSS ON DISPOSAL OF ASSET 0.00 (275,000.00) 0.00 0.00 OTHER FINANCING 0.00 (275,000.00) 0.00 0.00 Total 02190 -ECONOMIC DEVELOPMENT AUTHORITY (453,334.71) (762,073.84) (46,450.00) (189,000.00) Page 10 of 17 2025 Annual Budget Company: RIVER CITY CENTRE Object Actual Actual Budget Requested Account 2022 2023 2024 Budget 2025 02300 -RIVER CITY CENTRE REVENUES: 4833- INTEREST (11,480.70) (32,092.43) 0.00 0.00 4841,4964 -LEASE RENT/REVENUE (179,088.29) (442,941.13) (390,000.00) (400,000.00) 4842 - LEASE OPERATING CHARGE (5,644.87) (17,190.43) (16,000.00) (16,000.00) 4850 - MISCELLANEOUS 0.00 (26,760.51) 0.00 0.00 MISCELLANEOUS (196,213.86) (518,984.50) (406,000.00) (416,000.00) REVENUES (196,213.86) (518,984.50) (406,000.00) (416,000.00) EXPENDITURES: 6202 -SUPPLIES 0.00 367.51 300.00 200.00 6240 - EQUIPMENT REPAIR & MAINTENANCE 6,629.36 11,714.79 15,000.00 10,000.00 6310 -ATTORNEY 38,349.91 55,526.00 15,000.00 15,000.00 6315- BUILDING REPAIRS & MAINTENANCE 2,818.32 23,851.77 10,000.00 35,000.00 6326 - CLEANING SERVICES 660.71 2,733.63 1,650.00 5,000.00 6327 - PROFESSIONAL SERVICES 659,168.12 99,414.85 20,000.00 20,000.00 6352- LIABILITY 1,842.00 5,084.75 6,200.00 6,000.00 6362- ELECTRIC 1,073.35 184.00 2,000.00 2,000.00 6364 -WATER (327.44) (49.72) 300.00 300.00 6365- GAS 657.12 2,194.80 3,000.00 3,000.00 6366 - SEWER 53.16 19.20 300.00 300.00 6367 - REFUSE 3,390.93 8,334.89 12,000.00 12,000.00 6368 - STORM 30.92 10.92 150.00 200.00 6472 - CONFERENCE/SCHOOL/TRAINING (ALL EXPENSES) (30.00) 552.63 0.00 0.00 SUPPLIES AND SERVICES 714,316.46 209,940.02 85,900.00 109,000.00 6610 -AWARDS & DAMAGES 0.00 0.00 0.00 0.00 6620- PROPERTY TAX/SPECIAL ASSESS 32,307.50 102,328.00 120,000.00 115,000.00 MISCELLANEOUS EXPENSE 32,307.50 102,328.00 120,000.00 115,000.00 6765 - IMPROVEMENTS/INFRASTRUCTURE 0.00 3,454,181.92 10,000.00 0.00 CAPITAL OUTLAY 0.00 3,454,181.92 10,000.00 0.00 EXPENDITURES 746,623.96 3,766,449.94 215,900.00 224,000.00 OTHER FINANCING: 8019-TRANSFER IN FROM CAPITAL FUND 0.00 (3,592,076.30) 0.00 0.00 TRANSFERS IN 0.00 (3,592,076.30) 0.00 0.00 OTHER FINANCING 0.00 (3,592,076.30) 0.00 0.00 Total 02300 -RIVER CITY CENTRE 550,410.10 (344,610.86) (190,100.00) (192,000.00) Page 11 of 17 CO 0 W N M D 0 a VI 0 Lim CJ d F .P z= C O z Gji N HI -V P W W/� FN O 1;1 (1) a) C v iJ -0 Q CU U C ra x 4) 0 > +, 4—, _ W ro +� O (13 I— ra V s- E c, no -o E C C cu cu cu 4-0 co c E v a) a N E ro X E ° - 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