Economic Development Authority EDA

City of South St. Paul Economic Development Authority Agenda FLEMING FIELD AIRPORT 1725 HENRY AVE SOUTH ST. PAUL, MN 55075 Tuesday, September 6, 2022 IMMEDIATELY FOLLOWING THE CONCLUSION OF THE 7:00 P.M. MEETING OF THE CITY COUNCIL 1. CALL TO ORDER: 2. ROLL CALL: 3. AGENDA: A. Approval of Agenda Action – Motion to Approve Action – Motion to Approve as Amended 4. CONSENT AGENDA: All items listed on the Consent Agenda are items, which are considered to be routine by the Economic Development Authority and will be approved by one motion. There will be no separate discussion of these items unless a Commissioner or citizen so requests, in which event the item will be removed from the consent agenda and considered at the end of the Consent Agenda. A. EDA Meeting Minutes of August 1, 2022 B. Approval of Amendment #1 to Development Agreement with Watson Trading, LLC (500 Block Concord Exchange South) C. Approval of Amendment #1 to Lease Agreement with JBL Properties, LLC D. Approval of Satisfaction of Mortgage #1011 Resolution #2022-11 5. GENERAL BUSINESS: A. Review and Approve 2023 EDA Levy and Budget, Resolution 2021 – 9 B. Review and Approve 2023 HRA Levy and Budget, Resolution 2021 – 10 6. ITEMS FOR FUTURE FOLLOW-UP: General communications of the President and Commissioners are provided and may be considered for inclusion on a future agenda. There will be no discussion or decisions made related to these items at this meeting. 7. ADJOURNMENT: Respectfully Submitted, Ryan Garcia, EDA Executive Director This meeting is being taped by Town Square Television (NDC4). Replays can be viewed on Government Channel 19. Replay Times – Friday following Meeting at 1:00 p.m. & 7:00 p.m. 651-451-7834  MINUTES OF THE ECONOMIC DEVELOPMENT AUTHORITY CITY OF SOUTH ST. PAUL DAKOTA COUNTY, MINNESOTA Regular Meeting August 1, 2022 Fleming Field Airport, 1725 Henry Avenue, South St. Paul, MN 55075 1. CALL TO ORDER The Regular Meeting of the South St. Paul Economic Development Authority was held on 8/1/2022 in the Conference Room at Fleming Field Airport. President Francis called the meeting to order at 7:38 p.m. 2. ROLL CALL Members Present: President Francis, Commissioners Bakken, Hansen, Kaliszewski, and Podgorski. Members Absent: Dewey and Seaberg Staff Present: EDA Executive Director Ryan Garcia, City Clerk Deanna Werner, and Legal Counsel Pete Mikhail. 3. AGENDA Motion/Second: Commissioner Kaliszewski moved and Commissioner Bakken seconded approval of the agenda. Motion carried 5 ayes / 0 nays 4. CONSENT A. EDA Meeting Minutes of July 5, 2022 B. Approval of Amendment #1 to Development Agreement with Blue River Holdings, LLC (400 Block Concord Exchange South) C. Authorize Application to the Livable Communities Demonstration Account – Development Grant Program, Resolution 2022 – 6 Commissioner Kaliszewski moved and Commissioner Hansen seconded approval of the consent agenda. Motion carried 5 ayes / 0 nays EDA Minutes 8-1-2022 5. ITEMS FOR FUTURE FOLLOW-UP: 6. ADJOURNMENT Motion/ Second: Commissioner Hansen moved and Commissioner Bakken seconded the motion to adjourn the meeting at p.m. Motion carried 5 ayes / 0 nays Approved: Deanna Werner, City Clerk EDA Minutes 8-1-2022  EDA Agenda Item Report Date: September 6, 2022 EDA Executive Director: _________ 4-B Agenda Item: Approval of Amendment #1 to Development Agreement with Watson Trading, LLC (500 Block Concord Exchange South) Action to be considered: Through Consent, motion to approve the First Amendment to Development Agreement with Watson Trading, LLC. Summary: On July 5, 2022 the EDA approved a Purchase and Development Agreement with Watson Trading, LLC for the construction of a 7,500 square foot commercial building at the EDA-owned property on the west side of Concord Exchange South, immediately south of Stockyards Tavern & Chophouse. The Agreement identified a 120-day contingency window, to afford the developer – the owner/operator of the proposed primary tenant for the new development (Asian Mart) – sufficient time to work through their planning, permitting, and financing process. Continued progress has been made throughout the past 2 months, however we are not anticipating being through the required City planning/zoning approvals by October. Thus, we’ve concluded that an adjustment to the contingency date as found in the purchase agreement, to “On or before December 20, 2022”. We are confident that all plans can be prepared so that city approvals occur in November or December 2022. Staff is recommending approval of Amendment #1 as presented. Funding Sources and other fiscal considerations: The EDA-owned property has been property tax exempt for a number of years. The proposed development should be expected to generate a total market value for taxable purposes of between $800,000 and $1,000,000, which would result in a total annual property tax bill (in 2022 figures) of between $25,000 and $32,000. Proceeds from the sale, which is located within the Concord Street Tax Increment Finance District, can be used towards other eligible expenditures in the district. ATTACHMENTS: Orientation Map Amendment #1 to Development Agreement Property/Orientation Map  FIRST AMENDMENT TO DEVELOPMENT AGREEMENT THIS FIRST AMENDMENT TO DEVELOPMENT AGREEMENT (this “First Amendment”) is entered into as of , 2022 (the “Effective Date”), by and between the South St. Paul Economic Development Authority, a public body corporate and politic organized under the laws of Minnesota (“EDA”), and Watson Trading LLC, a Minnesota limited liability company (“Developer”). RECITALS Recital No. 1. EDA and Developer entered into a Contract for Private Development dated July 5, 2022 and recorded as Document No. _______________ on ____________________________ in the Dakota County Registrar of Titles’ Office and as Document No. _______________ on ____________________________ in the Dakota County Recorder’s Office (“Development Agreement”) for the purchase and sale of the Property identified in the Development Agreement. Recital No. 2. Developer has requested the Development Agreement be amended to extend the Contingency Date. Recital No. 3. EDA does not object to the extension. NOW, THEREFORE, in consideration of the mutual promises and covenants of each to the other contained in this First Amendment and other good and valuable consideration, receipt of which is hereby acknowledged, the parties hereto do covenant and agree as follows: 1. Section 1(I) of the Development Agreement shall be removed and replaced in its entirety as follows: I. “Contingency Date” means December 20, 2022. 2. Except as provided for above, the terms and provisions of the Development Agreement shall remain in full force and effect. 3. This First Amendment and all disputes or controversies arising out of or relating to this First Amendment or the transactions contemplated hereby shall be governed by, and construed in accordance with, the internal laws of the State of Minnesota, without regard to the laws of any other jurisdiction that might be applied because of the conflicts of laws principles of the State of Minnesota. 4. Nothing contained herein shall be deemed a waiver by the EDA of any governmental immunity defenses, statutory or otherwise, or of the maximum liability limits provided by Minnesota Statutes, Chapter 466. 5. This First Amendment may be executed in two or more counterparts, all of which shall be considered one and the same instrument and shall become effective when one or more counterparts have been signed by the parties and delivered to the other parties. 6. This First Amendment shall not be amended, modified or supplemented, except by a written instrument signed by an authorized representative of each party. [remainder of page intentionally blank]  IN AGREEMENT, the parties hereto have hereunto set their hands as of the Effective Date. SOUTH ST. PAUL ECONOMIC DEVELOPMENT AUTHORITY By ________________________________ James P. Francis Its President By ________________________________ Ryan Garcia Its Executive Director STATE OF MINNESOTA ) ) ss. COUNTY OF DAKOTA ) The foregoing instrument was acknowledged before me this ____ day of ____________, 2022 by James P. Francis and Ryan Garcia, the President and Executive Director respectively, of the South St. Paul Economic Development Authority, a public body corporate and politic organized and existing under the Constitution and laws of Minnesota, on behalf of the EDA. Notary Public  DEVELOPER: WATSON TRADING LLC By: Watson Fong Its President STATE OF MINNESOTA ) ) ss. COUNTY OF ) The foregoing instrument was acknowledged before me this ____ day of __________________, 2022 by Watson Fong, the President of Watson Trading LLC, a Minnesota limited liability company, on behalf of said limited liability company. Notary Public THIS INSTRUMENT WAS DRAFTED BY AND AFTER RECORDING RETURN TO: LeVander, Gillen & Miller, P.A. 1305 Corporate Center Drive, Suite 300 Eagan, MN 55121 651-451-1831  EDA Agenda Item Report Date: October 5, 2020 EDA Executive Director: _________ 4-C Agenda Item: Approval of Amendment #1 to Lease Agreement with JBL Properties, LLC Action to be considered: Through consent, motion to approve Amendment #1 to a Lease Agreement with JBL Properties, LLC Overview: In October 2020, the EDA approved a lease agreement with JBL Properties, LLC, which operates as Twin City Pallet Company at 139 Grand Avenue East. The Agreement was executed in January of 2021 and provided a lease term that expires September 28, 2022. JBL secured a new location for their business in mid-2021, in Denmark Township (Washington County), and have been under construction and renovation to support their business’ relocation since then. Due to delays and setbacks related to materials availability and labor, their project will not be complete until mid-November 2022. As such, JBL has requested an extension of the lease term through December 31, 2022, to accommodate the needed time to relocate the business and remove all of JBL/Twin City Pallet’s personal property from 139 Grand Avenue Staff has prepared the enclosed amendment to lease agreement for consideration and approval. All lease terms and conditions besides the end date remain the same; Twin City Pallet will continue to pay $15,000 in monthly rent. Funding Sources and other fiscal considerations: The property is located within the Concord Street #2 Tax Increment Finance District. Lease revenues can be used for other eligible costs in the District, including payment of assessments and taxes, marketing of property, TIF administration, and redevelopment costs. Attachments: Orientation Map Amendment #1 to Lease Agreement 1 2  FIRST AMENDMENT TO LEASE AGREEMENT THIS FIRST AMENDMENT TO LEASE AGREEMENT (this “First Amendment”) is entered into as of this _____ day of __________________, 2022 (the “Effective Date”), by and between the South St. Paul Economic Development Authority, a Minnesota public body corporate and politic (the “Landlord”), and JBL Properties, LLC, a Minnesota limited liability company (the “Tenant”). RECITALS Recital No. 1. Landlord and Tenant entered into a Lease Agreement dated January 29, 2021 (“Lease”) for the Premises identified in the Lease. Recital No. 2. Tenant has requested the Lease be amended to extend the Extension Term. Recital No. 3. Landlord does not object to the extension. NOW, THEREFORE, in consideration of the mutual promises and covenants of each to the other contained in this First Amendment and other good and valuable consideration, receipt of which is hereby acknowledged, the parties hereto do covenant and agree as follows: 1. The entire Lease is hereby incorporated into this First Amendment, except as modified below. 2. Article 2(B) shall be removed and replaced in its entirety with the following: B. The Lease has been extended beyond the Initial Term (“Extension Term”). The Extension Term shall terminate on December 31, 2022. Tenant may terminate this Extension Term at any time by written notice to Landlord, but agrees to forfeit any Rent paid prior to such termination. 3. Except as provided for above, the terms and provisions of the Lease shall remain in full force and effect. 4. This First Amendment and all disputes or controversies arising out of or relating to this First Amendment or the transactions contemplated hereby shall be governed by, and construed in accordance with, the internal laws of the State of Minnesota, without regard to the laws of any other jurisdiction that might be applied because of the conflicts of laws principles of the State of Minnesota. 5. Nothing contained herein shall be deemed a waiver by Landlord of any governmental immunity defenses, statutory or otherwise, or of the maximum liability limits provided by Minnesota Statutes, Chapter 466. 6. This First Amendment may be executed in two or more counterparts, all of which shall be considered one and the same instrument and shall become effective when one or more counterparts have been signed by the parties and delivered to the other parties. 7. This First Amendment shall not be amended, modified or supplemented, except by a written instrument signed by an authorized representative of each party. 3 [Remainder of this page has been intentionally left blank] 4  IN WITNESS WHEREOF, the parties hereto have set their hands as of the day and year first above written. LANDLORD: SOUTH ST. PAUL ECONOMIC DEVELOPMENT AUTHORITY By: ___________________________ James P. Francis Its: President By: Ryan Garcia Its: Executive Director 5 TENANT: JBL PROPERTIES, LLC By: Name: Its: 6  EDA Agenda Item Report Date: September 6, 2022 EDA Executive Director: _________ 4-D Agenda Item: Approval of Satisfaction of Mortgage – #1001– Resolution No. 2022-11 Action to be considered: Motion to approve Resolution No. 2022-11 Overview: Applicant #1001 received an HRA rehabilitation loan of $26,776.76 in 2012, with a mortgage recorded at that time. The loan was paid back in full and the mortgage thus satisfied; therefore, the EDA is advised to approve Resolution No. 2022-11, which will authorize the designated officers of the City’s Housing and Redevelopment Authority to execute all necessary documentation required to record the satisfaction of mortgage. Funding Sources and other fiscal considerations: N/A  South St. Paul Economic Development Authority Dakota County, Minnesota RESOLUTION NO. 2022-11 WHEREAS, the City Council transferred all administration of the South St. Paul Housing and Redevelopment Authority (HRA) programs to the South St. Paul Economic Development Authority (“EDA”) by City Council Resolution 2015-197; and WHEREAS, one of those programs was a rehabilitation loan program, for which there are several outstanding loans; and WHEREAS, the South St. Paul Housing and Redevelopment Authority of the City of South St. Paul, Minnesota issued a mortgage to Applicant #1001 in the amount of $26,776.76; WHEREAS, such mortgage recorded on November 19, 2012 in Dakota County has been satisfied in full by the applicant; NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority of the City of South St. Paul that: 1. The EDA shall secure the signatures of the appropriate representatives of the HRA to execute the required documents to satisfy the loan and mortgage. Adopted this 6 day of September 2022 ___________________________________ __________________________________ President, James P. Francis Executive Director, Ryan Garcia  (Top 3 inches reserved for recording data) MORTGAGE SATISFACTION Minnesota Uniform Conveyancing Blanks by Individual(s) Form 20.5.1 (2011) DATE: (month/day/year) THAT CERTAIN MORTGAGE owned by the undersigned, dated , executed by (month/day/year) , (insert name of mortgagor) as mortgagor, to , (insert name of original mortgagee) as mortgagee, and recorded on , as Document Number (or in Book (month/day/year) of Page ), in the Office of the County Recorder Registrar of Titles of (check the applicable boxes) County, Minnesota, is with the indebtedness thereby secured, fully paid and satisfied. (signature) (signature) Page 1 of 2 Page 2 of 2 Minnesota Uniform Conveyancing Blanks Form 20.5.1 State of Minnesota, County of This instrument was acknowledged before me on , by (month/day/year) . (Stamp) (signature of notarial officer) Title (and Rank): My commission expires: (month/day/year) THIS INSTRUMENT WAS DRAFTED BY: (insert name and address)  EDA Agenda Item Report Date: September 6, 2022 EDA Executive Director: _________ 5-A Agenda Item: Review and approve 2023 EDA levy and budget, Resolution 2022-9 Action to be considered: Motion to Adopt Resolution 2022-9, A Resolution Approving the Proposed 2023 Economic Development Authority (EDA) Levy and Budget. Overview: According to Section 4.6 of the EDA’s by-laws, the EDA shall send its budget to the City Council which budget includes a written estimate of the amount of money needed by the Authority from the City in order for the Authority to conduct business during the upcoming fiscal year. Attached is the 2023 Preliminary Budget for the EDA, totaling $357,081. The following notes summarize the key points about this year’s proposed budget and levy: • State Statutes provide that a City may levy an Annual EDA Property Tax Levy in an amount not to exceed 0.01813 percent of estimated market value (EMV). For 2023, that amount is equal to $357,081. This is an increase against 2022 of 4.8%. For some context, the overall percent increase in EMV in South St. Paul from Pay 2022 to Pay 2023 is 15.4%, which is 5th highest among Dakota County’s 11 largest Cities. In terms of dollar value, however, SSP’s increase in EMV has outpaced only West St. Paul (by about $9.5 million) among Dakota County’s 11 largest Cities in the past year. In other words, while our values are increasing rapidly and strongly compared to other Dakota County cities, our baseline is still relatively modest by comparison. • Operating Transfers account for the most significant portion of the budget for 2023, as follows: o A transfer of $30,000 (8.4% of the 2023 Budget) goes to the general fund to assist with payment to the Development Services functions of the City (Planning/Zoning, Building) which provide significant value to our Economic Development Program. o A transfer of $109,006 (30.5% of the 2023 Budget) is proposed to be transferred to the EDA’s business and development loan fund. This program was recalibrated in mid-2022 and we currently have at least five interested small businesses in this program. It is important to keep this fund liquid so that qualified small business loans can continue to be an economic development tool in SSP. • Personnel ($69,192 or 19.4% of the 2023 Budget) is another meaningful driver in the 2023 Budget. • Professional Services ($50,000 or 14.0%) and Other Contracted Services ($65,000 or 18.2%) are provided for 2023 to account for Legal costs (Prof. Services), the EDA’s investment in Progress Plus and Open to Business, and the maintenance of vacant EDA-owned properties and key Economic Development corridors. Page 1 of 3 Funding Sources and other fiscal considerations: 2023 EDA Property Tax Levy and Budget. Attachments: Resolution 2022-9 Preliminary 2023 EDA Property Tax Levy and Budget Documents Page 2 of 3  South St. Paul Economic Development Authority Dakota County, Minnesota RESOLUTION NO. 2022-9 WHEREAS, State Statute 469.107 subd. 1 provides that a city may, at the request of the Economic Development Authority (EDA), levy a tax for the benefit of the authority in an amount not to exceed 0.01813 percent of estimated market value; WHEREAS, the EDA proposes a 2023 tax levy for economic development purposes in the amount of $340,084; WHEREAS, the South St. Paul EDA proposes a 2023 annual budget in the amount of $357,081 to carry out its Economic Development Strategy and other economic development purposes; NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority of the City of South St. Paul that: 1. The EDA requests that the South St. Paul City Council levy a special tax of $357,081 to be collected in 2023 pursuant to Minnesota Statutes 469.107. 2. The EDA request that the South St. Paul City Council adopt the 2023 annual budget in the amount of $357,081. Adopted this 6th day of September, 2022. ___________________________________ __________________________________ President, James P. Francis Executive Director, Ryan Garcia Page 3 of 3 CITY OF SOUTH ST PAUL, MN ANNUAL BUDGET FUNCTION: DEPT. & DIV: BUSINESS UNIT: Community Development Economic & Community Development - 20280 Economic Development Activities and Responsibilities: The Economic Development program is accountable for: ● Developing and implementing plans and strategies for advancing economic and community development. ● Assisting existing and prospective businesses and developers. ● Assisting existing businesses with expansion and reconstruction projects. Providing guidance to bring new development projects to fruition. ● Providing expertise regarding available public and private business financing resources, including state assistance, possible local initiatives and other funding sources. ● Administration of Tax Increment Financing (TIF) plans and Business and Development Loan Programs. ● Providing staff services to the EDA and City Council. Budget Highlights and Changes: Significant Revisions - 2022 Original vs. 2022 Revisions ● 2022 Revised includes a redution of approximately $70,000 in personnel services to reflect the change in Executive Director position which now coincides with City Administrator. Notable Expenditure Changes in 2023 ● During a period of significant staff and leadership turnover throughout the organization, the Economic Development Division staffing model will be re-evaluated in 2023. ● Staff is recommending a $50,000 increase in Other Contracted Services, to account for property maintenance (snow and trash removal) at EDA-owned vacant properties and to support the hiring of a landscape maintenance service to maintain key gateway corridors in the Community (Southview, Concord Exchange, Concord, Grand). ● Staff is recommending a $50,000 increase in Operating Transfers, which would dedicate additional resources to the EDA's Business and Development Loan fund. 2023 Preliminary Budget and Levy Updated 08-25-2022 CITY OF SOUTH ST PAUL, MN ANNUAL BUDGET FUNCTION: DEPT. & DIV: BUSINESS UNIT: Community Development Economic & Community Development - 20280 Economic Development Notable Capital Project or Asset Acquisitions ● None Revenues ● Maximum EDA levy is $357,081 Staffing 2020 2021 2022 2023 Division Director 0.8500 0.8000 0.8000 0.0565 Line workers 0.5000 0.5000 0.5000 0.5000 Clerical/support 0.2000 0.2000 0.2000 0.1000 Total Current Staffing 1.5500 1.5000 1.5000 0.6565 2022 staffing = Director (5.65%), Associate Planner (50%) & Office Specialist (10%) 2023 Preliminary Budget and Levy Updated 08-25-2022 CITY OF SOUTH ST PAUL, MN ANNUAL BUDGET ECONOMIC DEVEVELOPMENT GENERAL SUMMARY OF REVENUE 2022 June 2022 2023 2023 2020 2021 Description Original 2022 Revised Requested Final Actual Actual Budget Actual Budget Budget Budget 20280 - ECON DEV GENERAL REVENUE TAXES 4110 - CURRENT AD VALOREM TAX (224,028) (263,035) (340,084) (96,571) (340,084) (357,081) 4120 - DELINQUENT AD VALOREM TAX (4,896) (4,487) 0 0 0 0 4125 - PENALTIES & INT ON AD VAL TAX 3 1 0 0 0 0 4130 - MOBILE HOME TAX (46) (43) 0 0 0 0 4140 - FISCAL DISPARITIES (70,244) (62,372) 0 0 0 0 TAXES (299,211) (329,936) (340,084) (96,571) (340,084) (357,081) CHARGES FOR SERVICES COMMUNITY DEVELOPMENT 4496 - TIF APPLICATION FEE 0 (3,500) 0 0 0 0 COMMUNITY DEVELOPMENT 0 (3,500) 0 0 0 0 CHARGES FOR SERVICES 0 (3,500) 0 0 0 0 INTEREST 4671 - INTEREST EARNINGS (9,203) (8,361) 0 0 0 0 4681 - UNREALIZED GAIN/LOSS ON INV (4,130) 12,401 0 0 0 0 INTEREST (13,333) 4,040 0 0 0 0 MISCELLANEOUS 4675 - INSURANCE DIVIDEND (316) (641) 0 0 0 0 MISCELLANEOUS (316) (641) 0 0 0 0 OTHER FINANCING SOURCES 4920 - INTERFUND OPERATING TRANSFER (16,182) 0 0 0 0 0 OTHER FINANCING SOURCES (16,182) 0 0 0 0 0 REVENUE (329,042) (330,037) (340,084) (96,571) (340,084) (357,081) 2023 Preliminary Budget and Levy Updated 08-25-2022 CITY OF SOUTH ST PAUL, MN ANNUAL BUDGET ECONOMIC DEVELOPMENT GENERAL SUMMARY OF EXPENDITURES 2022 June 2022 2023 2023 2020 2021 Description Original 2022 Revised Requested Final Actual Actual Budget Actual Budget Budget Budget 20280 - ECON DEV GENERAL EXPENDITURES PERSONNEL SERVICES 6101 - FULL-TIME EMPLOYEES-REG 152,746 155,146 155,726 77,780 105,716 51,113 6102 - FULL-TIME EMPLOYEES-OVERTIME 0 184 0 306 0 0 6108 - ACCUMULATED VACATION/COMP LEAV 5,150 3,299 2,199 0 2,446 181 6112 - SERVICE RECOGNITION 1,000 1,000 0 0 0 0 6120 - EMPLOYER CONTR FOR RETIREMENT 22,728 23,004 23,582 11,561 16,203 7,758 6130 - EMPLOYER PAID INSURANCE 26,016 25,554 25,801 14,380 16,705 8,383 6150 - WORKERS COMPENSATION 852 785 1,200 625 816 395 6170 - EMPLOYER CONTR TO HCSP 5,121 4,152 4,315 634 1,743 1,362 PERSONNEL SERVICES 213,612 213,126 212,823 105,285 143,629 69,192 SUPPLIES 6201 - OFFICE SUPPLIES 1,284 1,416 1,000 169 1,000 1,500 6230 - BOOKS, MATERIALS & PERIODICALS 0 60 0 0 0 100 SUPPLIES 1,284 1,476 1,000 169 1,000 1,600 OTHER SERVICES AND CHARGES 6302 - PROFESSIONAL SERVICES 56,642 33,551 48,274 8,590 48,274 50,000 6331 - CONFERENCES, TRAINING, TRAVEL 134 130 3,500 2,343 3,500 1,500 6341 - ADVERTISING 0 0 3,000 0 3,000 0 6361 - INSURANCE 5,085 4,577 4,717 2,511 4,717 4,684 6374 - ADMINISTRATION SUPPORT FEE 15,385 18,957 21,100 10,554 21,100 23,978 6375 - OTHER CONTRACTED SERVICES 5,941 4,963 12,000 5,050 12,000 65,000 6378 - COPIER MAINTENANCE AGREEMENT 1,126 1,512 1,200 825 1,200 0 6388 - TECHNOLOGY EQUIP CHARGE 570 570 570 288 570 621 6390 - POSTAGE AND TELEPHONE 899 1,026 800 988 800 1,000 OTHER SERVICES AND CHARGES 85,783 65,286 95,161 31,149 95,161 146,783 MISCELLANEOUS 6412 - CREDIT CARD/ACH/BANK FEE 0 3 0 0 0 0 6430 - MISCELLANEOUS 0 50 0 30 0 0 6471 - DUES & SUBSCRIPTIONS 679 1,118 1,100 219 1,100 500 MISCELLANEOUS 679 1,171 1,100 249 1,100 500 2023 Preliminary Budget and Levy Updated 08-25-2022 CITY OF SOUTH ST PAUL, MN ANNUAL BUDGET ECONOMIC DEVELOPMENT GENERAL SUMMARY OF EXPENDITURES 2022 June 2022 2023 2023 2020 2021 Description Original 2022 Revised Requested Final Actual Actual Budget Actual Budget Budget Budget CAPITAL OUTLAY 6570 - OFFICE EQUIP & FURNISHINGS 0 0 0 71 0 0 CAPITAL OUTLAY 0 0 0 71 0 0 TRANSFERS 6720 - OPERATING TRANSFERS 30,000 30,000 30,000 15,000 30,000 139,006 TRANSFERS 30,000 30,000 30,000 15,000 30,000 139,006 TOTAL EXPENDITURES 331,358 311,060 340,084 151,923 270,890 357,081 CHANGE 2022 REVISED TO 2023 REQUESTED 86,191 PERCENT CHANGE 2022 REVISED TO 2023 REQUESTED 31.82% 2023 Preliminary Budget and Levy Updated 08-25-2022 CITY OF SOUTH ST PAUL, MN ANNUAL BUDGET ECONOMIC DEVELOPMENT GENERAL DETAIL OF EXPENDITURES 2022 2023 2023 CODE ITEM DESCRIPTION AND ITEMS Revised Requested Final NO. EXPLANATION OF REQUEST Budget Budget Budget EXPENDITURES MATERIALS & SUPPLIES 6201 OFFICE SUPPLIES General office (envelopes, business cards, toner, copy 1,000 1,500 paper), water cooler 6230 BOOKS, MATERIALS & PERIODICALS Minneapolis/St. Paul Business Journal 0 100 SERVICES AND OTHER CHARGES 6302 PROFESSIONAL SERVICES Legal Services, Audit 1000 48,274 50,000 6331 CONFERENCES, TRAINING, TRAVEL Chamber & MREJ Events 3,500 1,500 6341 ADVERTISING 3,000 0 6361 INSURANCE Property & Liability 4,717 4,684 6374 ADMINISTRATION SUPPORT FEE 21,100 23,978 6375 OTHER CONTRACTED SERVICES JPA w/ Dakota Co. CDA for Small Bus Advisor; Progress 12,000 65,000 Plus Investment, Property Maintenance Vacant Lots and Gateway Corridors 6378 COPIER MAINTENANCE AGREEMENT (copier charges moved to 10160 in 2023) 1,200 0 6388 TECHNOLOGY EQUIP CHARGE amortization of technology equipment 570 621 6390 POSTAGE AND TELEPHONE Mailings, Legal Notices, Cell Phone 800 1,000 MISCELLANEOUS 6471 DUES & SUBSCRIPTIONS ULIMN ($245), River Heights Chamber ($205) 1,100 500 TRANSFERS 6720 OPERATING TRANSFERS City Admin & Planning Costs $30,000, ED RLF Investment 30,000 139,006 2023 Preliminary Budget and Levy Updated 08-25-2022  EDA Agenda Item Report Date: September 6, 2022 EDA Executive Director: _________ 5-B Agenda Item: Review and approve 2023 HRA levy and budget, Resolution 2022-10 Action to be considered: Motion to Adopt Resolution 2022-10, A Resolution Approving the Proposed 2023 Housing and Redevelopment Authority (HRA) Tax Levy and Budget. Overview: The HRA programs and projects were transferred to the EDA on January 1, 2016. The responsibility for approving the HRA Property Tax Levy and Budget was also transferred to the EDA. State Statute 469.033, Subd. 6, sets the maximum HRA levy at .0185% of the taxable market value of the City. For 2023, an HRA Property Tax Levy of $364,368 is proposed. Attached is the 2023 Preliminary Budget for the HRA. The following notes summarize the key points about this year’s proposed levy and budget: • The HRA General Housing budget totals $1,088,227. The 2023 budget reflects a 146.1% increase over 2022, which is wholly attributable to the adjustment of staff resources to support the Public Housing program (which will be supported almost entirely by rental income and HUD Operating Subsidy). • An HRA Property Tax Levy of $364,368 is proposed for 2023. This is an increase of 5.0% as compared to 2022. • 70.8% of all budgeted costs for 2023 are related to department staffing. • The 2023 HRA Budget proposes an operating transfer of $275,552 (25.3% of the budget) for the implementation of several near-term and short-term programs as identified in the Master Housing Strategy (approved in June 2020). Funding Sources and other fiscal considerations: The proposed 2023 HRA Property Tax Levy and Budget will guide the income and expenditures for Housing and Redevelopment activities next year. Attachments: Resolution 2022-10 Preliminary 2023 HRA Property Tax Levy and Budget Documents Page 1 of 2  South St. Paul Economic Development Authority Dakota County, Minnesota RESOLUTION NO. 2022-10 WHEREAS, State Statute 469.033 subd. 6 provides that subject to the consent by the resolution of the governing body of the city in and for which it was created, an authority may levy a tax upon all taxable property within the city for housing and redevelopment purposes. The amount of the levy shall be an amount approved by the governing body of the city, but shall not exceed 0.0185 percent of estimated market value; WHEREAS, the EDA proposes a 2023 tax levy for housing and redevelopment purposes in the amount of $364,368; WHEREAS, the South St. Paul EDA proposes a 2023 annual budget in the amount of $1,088,227 to support its Public Housing Program, carry out its Master Housing Strategy, and for other housing and redevelopment purposes; NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority of the City of South St. Paul that: 1. The EDA requests that the South St. Paul City Council levy a special tax of $364,368 to be collected in 2023 pursuant to Minnesota Statutes 469.033. 2. The EDA requests that the South St. Paul City Council adopt the 2023 annual budget for housing and redevelopment purposes in the amount of $1,088,227. Adopted this 6th day of September, 2022. ___________________________________ __________________________________ President, James P. Francis Executive Director, Ryan Garcia Page 2 of 2 CITY OF SOUTH ST PAUL, MN ANNUAL BUDGET FUNCTION: DEPT. & DIV: BUSINESS UNIT: Community Development Economic & Community Development - 20260 Housing Division Activities and Responsibilities: The Housing program is accountable for: ● Administration of the City's HUD Public Housing for Seniors program at the John Carroll and Nan McKay Public Highrises. ● Providing professional and technical support to contracted support service providers at the John Carroll and Nan McKay Public Highrise properties. ● Providing professional and technical support to homeowners that have utilized legacy CDBG-funded programs that remain within the purview of the City, and technical support to Dakota County CDA for programs that have been recently turned over to the CDA. Loan monitoring and administration. ● Administration of portfolio of vacant properties located throughout the City and held for future resale and redevelopment, including managing property maintenance issues. ● Administration and oversight of HUD and other grant programs that benefit and serve residential housing within the City. ● Identifying, researching, applying for, and administering grant programs that support a range of Community Development programs and initiatives. ● Administration and implementation of the Master Housing Assessment and Strategy, including program development and facilitation of residential redevelopment projects. Budget Highlights and Changes: Notable Expenditure Changes in 2023 ● For 2023, administration of the public housing program will transition away from third-party property management (with Nath) to an entirely in-house model. This results in an increase in reallocating City Staff Personnel Expenditures to the Public Housing Program Administration and Building Business Units. These expenditures are supported by an annual Operating Subsidy from HUD. ● Staff is recommending a reduction of $30,000 for "Other Contracted Services". Previously this line item was dedicated to property maintenance (snow removal and cleanup) at vacant EDA/HRA-owned properties. For 2023, Staff is recommending this expenditure be shifted to the EDA. Revenues ● Maximum HRA levy is $364,368. ● Administrative charge to the public housing program is $723,859. 2023 Preliminary Budget and Levy Updated 08-25-2022 CITY OF SOUTH ST PAUL, MN ANNUAL BUDGET FUNCTION: DEPT. & DIV: BUSINESS UNIT: Community Development Economic & Community Development - 20260 Housing Division Notable Capital Project or Asset Acquisitions for 2023 ● Staffing 2020 2021 2022 2023 Division Director 0.150 0.200 0.200 - Program Manager - 1.000 1.000 1.000 Line staff - - - - Property Manager - - - 2.000 Maintenance - - - 2.000 Caretaker - - - 2.000 Clerical/support 0.800 0.800 0.800 0.900 Total Staffing 0.950 2.000 2.000 7.900 2023 staffing = Housing Program Administrator (100%), Office Specialist (90%), Property Management Line Staff at Highrises (100%) 2023 Preliminary Budget and Levy Updated 08-25-2022 CITY OF SOUTH ST PAUL, MN ANNUAL BUDGET HOUSING GENERAL SUMMARY OF REVENUE 2022 June 2022 2023 2023 2020 2021 Description Original 2022 Revised Requested Final Actual Actual Budget Actual Budget Budget Budget 20260 - HOUSING GENERAL REVENUE TAXES 4110 - CURRENT AD VALOREM TAX (229,535) (268,099) (347,024) (98,599) (347,024) (364,368) 4120 - DELINQUENT AD VALOREM TAX (5,027) (4,742) 0 0 0 0 4125 - PENALTIES & INT ON AD VAL TAX 3 1 0 0 0 0 4130 - MOBILE HOME TAX (50) (45) 0 0 0 0 4140 - FISCAL DISPARITIES (70,748) (63,906) 0 0 0 0 TAXES (305,357) (336,791) (347,024) (98,599) (347,024) (364,368) CHARGES FOR SERVICES ADMINISTRATIVE CHARGES 4409 - ADMINISTRATIVE CHARGE (37,542) (106,333) (94,752) (59,794) (94,752) 0 ADMINISTRATIVE CHARGES (37,542) (106,333) (94,752) (59,794) (94,752) 0 CHARGES FOR SERVICES (37,542) (106,333) (94,752) (59,794) (94,752) 0 INTEREST 4671 - INTEREST EARNINGS (12,183) (8,701) 0 0 0 0 4681 - UNREALIZED GAIN/LOSS ON INV (5,441) 13,200 0 0 0 0 INTEREST (17,624) 4,499 0 0 0 0 MISCELLANEOUS 4672 - OTHER (1,565) (288) 0 (525) 0 0 4675 - INSURANCE DIVIDEND (18) (21) 0 0 0 0 MISCELLANEOUS (1,583) (309) 0 (525) 0 0 REVENUE (362,106) (438,934) (441,776) (158,918) (441,776) (364,368) 2023 Preliminary Budget and Levy Updated 08-25-2022 CITY OF SOUTH ST PAUL, MN ANNUAL BUDGET HOUSING GENERAL SUMMARY OF REVENUE 2022 June 2022 2023 2023 2020 2021 Description Original 2022 Revised Requested Final Actual Actual Budget Actual Budget Budget Budget 20261 - HOUSING-ADMIN SAL&BENEFITS REVENUE CHARGES FOR SERVICES COMMUNITY DEVELOPMENT 4493 - OTHER CHARGE FOR SERVICE - COM 0 0 0 0 0 (385,201) COMMUNITY DEVELOPMENT 0 0 0 0 0 (385,201) CHARGES FOR SERVICES 0 0 0 0 0 (385,201) REVENUE 0 0 0 0 0 (385,201) 20267 - HOUSING-NM SAL&BENEFITS REVENUE CHARGES FOR SERVICES COMMUNITY DEVELOPMENT 4493 - OTHER CHARGE FOR SERVICE - COM 0 0 0 0 0 (169,329) COMMUNITY DEVELOPMENT 0 0 0 0 0 (169,329) CHARGES FOR SERVICES 0 0 0 0 0 (169,329) REVENUE 0 0 0 0 0 (169,329) 20268 - HOUSING-JC SAL&BENEFITS REVENUE CHARGES FOR SERVICES COMMUNITY DEVELOPMENT 4493 - OTHER CHARGE FOR SERVICE - COM 0 0 0 0 0 (169,329) COMMUNITY DEVELOPMENT 0 0 0 0 0 (169,329) CHARGES FOR SERVICES 0 0 0 0 0 (169,329) REVENUE 0 0 0 0 0 (169,329) 2023 Preliminary Budget and Levy Updated 08-25-2022 CITY OF SOUTH ST PAUL, MN ANNUAL BUDGET HOUSING GENERAL SUMMARY OF EXPENDITURES 2022 June 2022 2023 2023 2020 2021 Description Original 2022 Revised Requested Final Actual Actual Budget Actual Budget Budget Budget 20260 - HOUSING GENERAL EXPENDITURES PERSONNEL SERVICES 6101 - FULL-TIME EMPLOYEES-REG 95,358 157,603 160,239 78,977 151,330 35,443 6108 - ACCUMULATED VACATION/COMP LEAV 402 2,903 2,197 0 2,284 442 6112 - SERVICE RECOGNITION 0 1,000 0 0 0 0 6120 - EMPLOYER CONTR FOR RETIREMENT 13,272 22,460 24,399 11,602 23,101 5,403 6130 - EMPLOYER PAID INSURANCE 21,901 34,409 35,264 17,786 28,901 6,751 6150 - WORKERS COMPENSATION (144) 870 1,236 648 1,167 274 6170 - EMPLOYER CONTR TO HCSP 1,949 2,160 4,638 845 4,127 1,034 PERSONNEL SERVICES 132,739 221,404 227,973 109,858 210,910 49,347 SUPPLIES 6201 - OFFICE SUPPLIES 1,159 1,477 2,000 225 2,000 2,000 6210 - OPERATING SUPPLIES 278 232 0 123 0 0 SUPPLIES 1,437 1,709 2,000 347 2,000 2,000 OTHER SERVICES AND CHARGES 6302 - PROFESSIONAL SERVICES 3,461 1,772 1,000 1,105 1,000 5,000 6331 - CONFERENCES, TRAINING, TRAVEL 1,541 3,058 800 598 800 7,400 6361 - INSURANCE 276 177 156 156 156 290 6371 - REPAIRS & MAINT CONTRACTUAL 0 0 0 34 0 0 6374 - ADMINISTRATION SUPPORT FEE 40,272 33,268 23,058 11,532 23,058 17,831 6375 - OTHER CONTRACTED SERVICES 6,304 20,215 30,000 11,044 30,000 0 6378 - COPIER MAINTENANCE AGREEMENT 1,448 1,623 2,000 768 2,000 0 6381 - OTHER RENTALS 563 166 250 65 250 0 6388 - TECHNOLOGY EQUIP CHARGE 1,920 1,920 1,920 960 1,920 4,728 6390 - POSTAGE AND TELEPHONE 734 1,376 1,750 1,000 1,750 1,750 OTHER SERVICES AND CHARGES 56,518 63,575 60,934 27,262 60,934 36,999 MISCELLANEOUS 6430 - MISCELLANEOUS 13 0 0 127 0 0 6471 - DUES & SUBSCRIPTIONS 0 0 350 0 350 500 MISCELLANEOUS 13 0 350 127 350 500 2023 Preliminary Budget and Levy Updated 08-25-2022 CITY OF SOUTH ST PAUL, MN ANNUAL BUDGET HOUSING GENERAL SUMMARY OF EXPENDITURES 2022 June 2022 2023 2023 2020 2021 Description Original 2022 Revised Requested Final Actual Actual Budget Actual Budget Budget Budget CAPITAL OUTLAY 6570 - OFFICE EQUIP & FURNISHINGS 0 0 0 71 0 0 CAPITAL OUTLAY 0 0 0 71 0 0 TRANSFERS 6720 - OPERATING TRANSFERS 16,182 0 150,000 0 150,000 275,522 TRANSFERS 16,182 0 150,000 0 150,000 275,522 TOTAL EXPENDITURES 206,889 286,689 441,257 137,665 424,194 364,368 CHANGE 2022 REVISED TO 2023 REQUESTED (59,826) PERCENT CHANGE 2022 REVISED TO 2023 REQUESTED (14.10)% 2023 Preliminary Budget and Levy Updated 08-25-2022 CITY OF SOUTH ST PAUL, MN ANNUAL BUDGET HOUSING GENERAL SUMMARY OF EXPENDITURES 2022 June 2022 2023 2023 2020 2021 Description Original 2022 Revised Requested Final Actual Actual Budget Actual Budget Budget Budget 20261 - HOUSING-ADMIN SAL&BENEFITS EXPENDITURES PERSONNEL SERVICES 6101 - FULL-TIME EMPLOYEES-REG 0 0 0 0 0 274,367 6108 - ACCUMULATED VACATION/COMP LEAV 0 0 0 0 0 2,915 6120 - EMPLOYER CONTR FOR RETIREMENT 0 0 0 0 0 41,790 6130 - EMPLOYER PAID INSURANCE 0 0 0 0 0 56,005 6150 - WORKERS COMPENSATION 0 0 0 0 0 1,921 6170 - EMPLOYER CONTR TO HCSP 0 0 0 0 0 6,403 PERSONNEL SERVICES 0 0 0 0 0 383,401 OTHER SERVICES AND CHARGES 6390 - POSTAGE AND TELEPHONE 0 0 0 0 0 1,800 OTHER SERVICES AND CHARGES 0 0 0 0 0 1,800 TOTAL EXPENDITURES 0 0 0 0 0 385,201 CHANGE 2022 REVISED TO 2023 REQUESTED 385,201 PERCENT CHANGE 2022 REVISED TO 2023 REQUESTED 2023 Preliminary Budget and Levy Updated 08-25-2022 CITY OF SOUTH ST PAUL, MN ANNUAL BUDGET HOUSING GENERAL SUMMARY OF EXPENDITURES 2022 June 2022 2023 2023 2020 2021 Description Original 2022 Revised Requested Final Actual Actual Budget Actual Budget Budget Budget 20267 - HOUSING-NM SAL&BENEFITS EXPENDITURES PERSONNEL SERVICES 6101 - FULL-TIME EMPLOYEES-REG 0 0 0 0 0 113,757 6120 - EMPLOYER CONTR FOR RETIREMENT 0 0 0 0 0 17,234 6130 - EMPLOYER PAID INSURANCE 0 0 0 0 0 34,333 6150 - WORKERS COMPENSATION 0 0 0 0 0 741 6170 - EMPLOYER CONTR TO HCSP 0 0 0 0 0 2,664 PERSONNEL SERVICES 0 0 0 0 0 168,729 SUPPLIES 6245 - CLOTHING ALLOWANCE 0 0 0 0 0 600 SUPPLIES 0 0 0 0 0 600 TOTAL EXPENDITURES 0 0 0 0 0 169,329 CHANGE 2022 REVISED TO 2023 REQUESTED 169,329 PERCENT CHANGE 2022 REVISED TO 2023 REQUESTED 2023 Preliminary Budget and Levy Updated 08-25-2022 CITY OF SOUTH ST PAUL, MN ANNUAL BUDGET HOUSING GENERAL SUMMARY OF EXPENDITURES 2022 June 2022 2023 2023 2020 2021 Description Original 2022 Revised Requested Final Actual Actual Budget Actual Budget Budget Budget 20268 - HOUSING-JC SAL&BENEFITS EXPENDITURES PERSONNEL SERVICES 6101 - FULL-TIME EMPLOYEES-REG 0 0 0 0 0 113,757 6120 - EMPLOYER CONTR FOR RETIREMENT 0 0 0 0 0 17,234 6130 - EMPLOYER PAID INSURANCE 0 0 0 0 0 34,333 6150 - WORKERS COMPENSATION 0 0 0 0 0 741 6170 - EMPLOYER CONTR TO HCSP 0 0 0 0 0 2,664 PERSONNEL SERVICES 0 0 0 0 0 168,729 SUPPLIES 6245 - CLOTHING ALLOWANCE 0 0 0 0 0 600 SUPPLIES 0 0 0 0 0 600 TOTAL EXPENDITURES 0 0 0 0 0 169,329 CHANGE 2022 REVISED TO 2023 REQUESTED 169,329 PERCENT CHANGE 2022 REVISED TO 2023 REQUESTED 2023 Preliminary Budget and Levy Updated 08-25-2022 CITY OF SOUTH ST PAUL, MN ANNUAL BUDGET HOUSING GENERAL DETAIL OF EXPENDITURES 2022 2023 2023 CODE ITEM DESCRIPTION AND ITEMS Revised Requested Final NO. EXPLANATION OF REQUEST Budget Budget Budget EXPENDITURES MATERIALS & SUPPLIES 6201 OFFICE SUPPLIES 2,000 2,000 SERVICES AND OTHER CHARGES 6302 PROFESSIONAL SERVICES Audit, Legal 1,000 5,000 6331 CONFERENCES, TRAINING, TRAVEL Working Together Conference ($2,400) Yardi Conference 800 7,400 ($5,000) 6361 INSURANCE Property & Liability 156 290 6374 ADMINISTRATION SUPPORT FEE 23,058 17,831 6375 OTHER CONTRACTED SERVICES 30,000 0 6378 COPIER MAINTENANCE AGREEMENT (copier charges moved to 10160 in 2023) 2,000 0 6381 OTHER RENTALS 250 0 6388 TECHNOLOGY EQUIP CHARGE Amortization of technology equipment, includes computers at 1,920 4,728 NM & JC; will be included in administrative charge for staff and equipment 6390 POSTAGE AND TELEPHONE Housing Program Admin. Cell Phone, Postage 1,750 1,750 MISCELLANEOUS 6471 DUES & SUBSCRIPTIONS MnNAHRO Agency Membership 350 500 TRANSFERS 6720 OPERATING TRANSFERS Master Housing Strategy Implementation 150,000 275,522 2023 Preliminary Budget and Levy Updated 08-25-2022