EDA

10801 Town Square Drive City of Blaine Blaine MN 55449 Anoka County, Minnesota Minutes - Final EDA The purpose of the Blaine Economic Development Authority is to increase the City’s commercial/industrial tax base, provide employment opportunities, undertake redevelopment to enhance and maintain neighborhood economic stability, and address special needs, such as senior housing. As authorized under Minnesota State statutes, the Blaine City Council also serves as the Blaine Economic Development Authority. Thursday, January 3, 2013 7:15 PM Council Chambers 1 Call to Order/Roll Call The meeting was called to order at 7:15 p.m. by President Ryan followed by the Roll Call. Quorum present. ALSO PRESENT: Executive Director Clark Arneson, City Attorney Patrick Sweeney; Public Services Manager Bob Therres; Community Development Director Bryan Schafer; City Engineer Jean Keely; Public Safety Manager/Police Chief Chris Olson; Finance Director Joe Huss; Communications Technician Roark Haver; Senior Engineering Technician Al Thorp; City Clerk Jane Cross; and Recording Secretary Linda Dahlquist. Present: 7 - Comissioner Bourke, Comissioner Clark, Comissioner Herbst, Comissioner Hovland, Comissioner Kolb, President Ryan, and Comissioner Swanson City of Blaine Page 1 EDA Minutes - Final January 3, 2013 1. MIN 12-41 EDA MINUTES FOR 12/06/2012 Attachments: 120612EDA Adopted Aye: 6 - Comissioner Bourke, Comissioner Clark, Comissioner Herbst, Comissioner Kolb, President Ryan, and Comissioner Swanson Abstain: 1 - Comissioner Hovland City of Blaine Page 2 EDA Minutes - Final January 3, 2013 2. EDA RES 13-01 ADOPTION OF 2013 SENIOR HOUSING FUND BUDGET Sponsors: Huss Attachments: 2013 Senior Housing Budget Finance Director Huss stated City staff and Avinity, Inc. management have prepared a comprehensive budget for the Blaine Housing Fund that includes Blaine Courts and Cloverleaf Senior Housing facilities. The budget reflects a 3% rate increase for 2013 for both facilities. He stated the EDA has established a target fund reserve for the Senior Housing Fund that provides for debt service coverage, cash flow needs, and capital reserve. He noted that the fund is projected to be short at the end of 2012 and remain short for the next few years. Commissioner Bourke clarified that the assumptions were calculated. Finance Director Huss replied yes. Commissioner Herbst questioned the amount of the reserve fund. Finance Director Huss replied staff is researching comparable operations’ reserve fund policy. He noted the City’s goal is 10% of the assets value as capital reserve and that the fund is currently short. Commissioner Bourke asked for the average increase per unit cost. Finance Director Huss replied approximately $20 per unit. He stated property tax for each building is approximately $10,000. He distributed to the Council a rate schedule. He noted the average rental cost is $700 per month. Mayor Ryan commented the operating costs need to be covered by the rents. Adopted Aye: 7 - Comissioner Bourke, Comissioner Clark, Comissioner Herbst, Comissioner Hovland, Comissioner Kolb, President Ryan, and Comissioner Swanson Adopted Aye: 7 - Comissioner Bourke, Comissioner Clark, Comissioner Herbst, Comissioner Hovland, Comissioner Kolb, President Ryan, and Comissioner Swanson City of Blaine Page 3 EDA Minutes - Final January 3, 2013 3. EDA RES 13-02 APPROVING RATE SCHEDULE FOR BLAINE COURTS AND CLOVERLEAF COURTS SENIOR HOUSING FACILITIES Sponsors: Huss Attachments: 2013 Sr. Housing Rent Schedule Finance Director Huss stated City staff and Avinity management have prepared the 2013 budgets with the Board recommended rental rate increase of 3%. The rental fees are designed to cover expenses while effectively managing the non-operating budget and the fund’s budget reserve. Commissioner Bourke stated he does not agree with the 3% increase. He is concerned that the EDA does not have funding. Commissioner Kolb commented there has not been an increase in rent for the past three years and this increase is necessary. Commissioner Herbst commented the rates are reasonable compared to the private sector. Commissioner Clark commented the City does not manage properties and maybe Avinity would be interested in taking over the property. Adopted Aye: 7 - Comissioner Bourke, Comissioner Clark, Comissioner Herbst, Comissioner Hovland, Comissioner Kolb, President Ryan, and Comissioner Swanson 2 Other Buisness None. 3 Adjournment Adjourned Aye: 7 - Comissioner Bourke, Comissioner Clark, Comissioner Herbst, Comissioner Hovland, Comissioner Kolb, President Ryan, and Comissioner Swanson City of Blaine Page 4