Economic Development Authority

Maple Grove Economic Development Authority meeting minutes December 19, 2022 Call to order Pursuant to call and notice thereof, an Economic Development Authority meeting of the Maple Grove City Council was held at 7:30 p.m. on December 19, 2022 at the Maple Grove Government Center/Public Safety Facility, Hennepin County, Minnesota. Members present were President Mark Steffenson, Vice President Karen Jaeger, Treasurer Judy Hanson, Secretary Heidi Nelson, and Commissioners Phil Leith and Kristy Barnett. Absent was none. Present also were Joe Hogeboom, Community and Economic Development Director; Peter Vickerman, Planning Manager; Brett Angell, Assistant Community and Economic Development Director; Greg Sticha, Finance Director; Ken Ashfeld, Director of Public Works/City Engineer; and Justin Templin, City Attorney. President Steffenson called the meeting to order at 9:23 p.m. Approval of Motion by Treasurer Hanson, seconded by Commissioner December 5, Barnett, to approve the December 5, 2022 Economic 2022 minutes Development Authority meeting minutes. Upon call of the motion by President Steffenson, there were five ayes and no nays. Motion carried. Adopt 2023 Finance Director Sticha requested the EDA adopt the 2023 senior housing senior housing budget for Woodland Mounds. He explained budget this budget includes a 5% rent increase which would assist (Woodland with offsetting increased utility costs and necessary Mounds) landscaping repairs. Vice President Jaeger asked why Woodland Mounds currently had four vacancies. Community and Economic Development Director Hogeboom explained Woodland Mounds always has a long waiting list, but sometimes seniors find alternate housing before getting a unit within Woodland Mounds. He anticipated staff would have these four units filled within the Maple Grove EDA minutes December 19, 2022 Page 2 next month. Vice President Jaeger expressed concern with the proposed increase, stating this would adversely impact the seniors living in these affordable housing units. Finance Director Sticha reported utility and other line items have been impacted by more than 5%. He explained the city did not increase rental rates the two previous years and was now requesting a 5% increase to assist with covering increased utility costs. Treasurer Hanson commented the proposed increase would mean Woodland Mounds seniors were spending $40 more per month or $480 per year. She noted the EDA did not have an increase for the two years prior to that. She stated unfortunately, costs were going up. Assistant Community and Economic Development Director Angell reported some of the units were income restricted and those units would see the smallest increase. He explained even after the rental rates increase by 5%, all units will remain below 50% AMI and the income restricted units were below 30% AMI. Treasurer Hanson indicated she understood the increase was a lot, but she believed it was necessary to cover increased costs. Vice President Jaeger stated she feared how seniors living on social security would be impacted by the proposed rental rate increase. Commissioner Barnett explained she agreed with both positions. She stated in the end, there were a lot of seniors that were not living in this housing that were having to adjust to inflation and rising costs. For this reason, she supported the EDA passing a 5% rental rate increase so as to not pass the increase in expenditures onto the city. Motion by Commissioner Leith, seconded by Commissioner Barnett, to approve adopting the 2023 senior housing (Woodland Mounds) budget. Upon call of the motion by President Steffenson, there were four ayes and one nay (Vice President Jaeger opposed). Motion carried. Maple Grove EDA minutes December 19, 2022 Page 3 Adopt 2023 Finance Director Sticha requested the EDA adopt the 2023 EDA/HRA budget EDA/HRA budget and tax levy. He reported $150,000 was and tax levy – being requested for EDA purposes. He explained all scattered EDA Resolution site houses would see a 10% rental increase in 2023 which No. 36 would assist with maintenance and repair expenditures. Motion by Commissioner Leith, seconded by Commissioner Barnett, to adopting EDA Resolution No. 36 adopting the 2023 EDA budget and setting a tax levy for 2023. Upon call of the motion by President Steffenson, there were five ayes and no nays. Motion carried. Adjournment Motion by Commissioner Barnett, seconded by Treasurer Hanson, to adjourn to the City Council meeting. Upon call of the motion by President Steffenson, there were five ayes and no nays. Motion carried. The meeting was adjourned at 9:38 p.m. by President Steffenson. Respectfully submitted, Heidi Nelson EDA Secretary