04-03-2012 WSMINUTES OF THE CITY COUNCIL WORK SESSION
Tuesday, April 3, 2012
Raspberry Room — 6:15 p.m.
The meeting was started at 6:17 p.m. Present were Mayor Maxwell and Council members Molly
Cummings, Jason Gadd, Kristi Halverson, Cheryl Youakim, City Manager Mike Mornson,
Finance Director Christine Harkess, Planning & Economic Development Director Kersten
Elverum and Ehlers representative Stacie Kvilvang.
New business:
Tax Increment Financing Plan
Ms. Kvilvang reviewed with Council the Tax Increment Financing Plan developed by Ehlers.
Ms. Kvilvang gave an overview of the TIF districts and showed examples of project areas and
how the area looked before & after project completion. Ms. Kvilvang reviewed the tax capacity
captured by TIF from years 2012 through 2017, showed a graph comparing Hopkins tax capacity
to other similar sized communities, reviewed the existing bonds and the pay as you go
obligations. Ms. Kvilvang explained that the increase in tax base value would be approximately
600% when TIF districts 1-4 are fully developed.
The goal of the TIF analysis is to assure all obligations can be met, compliance review, examine
pooling opportunities to complete other projects and use the analysis as an overall planning tool
for staff & Council to meet policy objectives. Ms. Kvilvang reviewed the following
recommendations:
1. Develop a process to track staff time in order to maximize utilizing 10% of the tax
increment generated for staff time administering the districts.
2. By June 30, 2012 request that Hennepin County make appropriate changes in base tax
capacity for some of the TIF districts.
3. Review the balances annually and develop a plan for expenditure to meet other
redevelopment needs of the city.
4. Review the obligations in TIF district 2-9 to determine if obligation should be extended
to end of the term.
5. Develop a plan to utilize allowable 10% administrative fees in TIF district 2-11 for
pooling for other redevelopment projects.
6. Utilize cash balance from other TIF districts to pay TIF district 2-6 interfund loan.
7. Discuss possible option of converting TIF district 1-4 loan from EDA fund to an
interfund loan.
Ms. Kvilvang commented that the Hopkins TIF
comprehensive plan should be developed tc
redevelopment efforts. Redevelopment has
significantly.
districts are in overall good financial health. A
use and recycle the funds for continued
increased property valuations in Hopkins
Ms. Elverum discussed with Council the need to start redeveloping the EDA fund and the need
to find funding sources for continued Infrastructure needs.
Ms. Harkess gave an explanation of the EDA fund & levy that is mostly utilized for economic
development staff time.
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There was much discussion by Council about Grant monies, low-interest loans, revenue bonds,
property valuations, refinancing of bonds, the 600% increase in tax base value, market value
exclusion, paying off obligations, decertification, and the EDA fund. Council & staff need to
consider a plan to find a source of funding for the EDA fund. Staff will present possible funding
solutions to council at a future Work Session.
With no further business to discuss there was a motion by Council member Cummings and a
second by Council member Gadd to adjourn the meeting at 6:56 p.m.
Respectfully Submitted,
Debbie Vold
Cl Y UNCI
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ATTEST:
Eugene . Ma ell, Mayor