Minutes - Economic Development Authority - 08/12/2021

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(developer) / 40 (City) split percent for the City in order to support a portion of City costs associated with needed infrastructure improvements in that area such as Bunker Lake Boulevard. Motion by Member Cords, seconded by Member MacLennan, to recommend to City Council: Approve the Modification to the Development Program for Development District No. 1 Establish Tax Increment Financing District No. 18: (Oppidan Industrial) within Development District No. 1 Approve the Tax Increment Financing Plan. The TIF plan outlines the boundary of the district, TIF eligible expenses/costs and tax impacts (tax base and taxing jurisdictions). The TIF Plan outlines how the project follow statutory requirements for creation of the TIF District. Approval of TIF Agreement (business subsidy) with Ramsey Industrial Owner LLC and Oppidan Incorporated; subject to attorney review. Motion carried. Voting Yes: Chairperson Cords, Members MacLennan, Howell, Olson, Riley, and Steffen. Voting No: None. Absent: Member Johnson. 4.03: Recommend 2022 EDA Budget and Levy Economic Development Manager Sullivan presented the staff report. Chairperson Cords asked if the EDA fund remains relatively flat. He noted that some of the fund was used for COVID relief in the past year. Economic Development Manager Sullivan estimated the EDA fund balance at $1,200,000 to $1,300,000. He noted that some funds have been allocated for a previously approved project and therefore the balance will be reduced. He believed that the balance is healthy enough to assist in Highway 10 acquisitions or other EDA development activities that may be necessary. He stated that there will be a $250,000 expense from the business subsidy agreement with PSD which was approved in 2017. He confirmed that those costs were expected, and the fund balance should be around $1,000,000 after those two expenses. Member MacLennan stated that it appears the budget is less than the revenue each year. Economic Development Manager Sullivan stated that the intent is not to build the EDA fund balance but to account for potential expenditures. He stated that last year was unique in that costs that could have been paid through EDA dollars were instead paid through CARES Act funds. He explained the purpose of the EDA fund and how those dollars can be used to promote and support economic development and related marketing and events. Member MacLennan referenced the actuals from the past three years and asked if they should remain flat with the figures from the previous year. Economic Development Manager Sullivan commented that he would anticipate that the actual expenditures in 2021 would be closer to the projected amount as last year was unique. He noted that if there is additional revenue that could be used to build the fund balance for future projects. Economic Development Authority/ August 12, 2021 Page 3 of 6