June 28, 2021 Public Hearing and Special City Council Meeting Minutes

June 28, 2021 City Council
Public Hearing and Special City Council Meeting Minutes
5:00 P.M.

A Public Hearing and Special City Council Meeting of the City Council of the City of International Falls, Minnesota, was held in the Council Chambers of the Municipal Building on the 28th day of June, 2021 at the hour of 5:00 P.M.

MEMBERS PRESENT:     Councilors Buller, Ditsch, Holden, Krause, and Mayor Droba.
MEMBERS ABSENT:        None.
STAFF PRESENT:             Betty Bergstrom, City Administrator ; Kelly Meyers, Building Official/Zoning Administrator ; Emma Rud, Administration Support Specialist
OTHERS PRESENT:          Jessica Green – Northland Securities

ORDER OF BUSINESS:

  1. Introductory comments and explanation of purpose for public hearing, Mayor Droba
  2. Jessica Green, Northland Securities
  3. City Council questions/comments.
  4. Public input/questions/comments.
  5. Close the public hearing.
  6. Adopt Resolution No. ___ -2021 establishing Tax Increment Financing (TIF) Housing District No. 1-4
  7. Adopt Resolution No. ___ -2021 authorizing Interfund Loan for advance of certain costs in connection with Tax Increment Financing (TIF) District No. 1-4
  8. Adopt Resolution No. ___ -2021 consenting to the process for the creation of a Housing Tax Increment Financing (TIF) District in support of the proposed Alexander Baker Limited Partnership Housing Project
Introductory comments and explanation of purpose for public hearing, Mayor Droba Mayor Droba welcomed and thanked all of those in attendance at the meeting.  Mayor Droba also thanked Northland Securities for their work on this project acting as the City’s financial adviser.  This public hearing is to hear input on the establishment of Tax Increment Financing (TIF) Housing District No. 1-4 in support of the proposed Alexander Baker Limited Partnership Housing Project.
Jessica Green ― Northland Securities Jessica Green, Northland Securities, presented a memorandum explaining the background on the Alexander Baker Limited Partnership and their proposition to undertake the adaptive reuse and historic preservation of the Alexander Baker building into an affordable 27-unit low-income housing development.  It was noted that the project was originally seeking tax abatement assistance, but the City recently awarded tax abatement assistance to two other projects, and does not have any remaining capacity to approve tax abatement for the Alexander Baker Housing Project.  Tax Increment Financing (TIF) is the alternative way to qualify for City financial assistance.  Ms. Green noted that Northland Securities has completed a financial analysis, and it is their observation that the Alexander Baker Housing Project is feasible only through assistance, in part from TIF.  It was noted that the tax increment maximum duration is 15 years, with a total amount not to exceed $450,000.
City Council questions/comments Mayor Droba inquired as to what would happen if the financing and other funding sources were not awarded to the Alexander Baker Housing Project.  Ms. Green, Northland Securities, explained that the City would not certify the Housing District if the funding mix did not support the project.
OPENED the public hearing Mayor Droba opened the public hearing at 5:10 P.M.
Public input/questions/comments Isaac Meyer, Kootasca Community Action, spoke in support of the Alexander Baker Housing Project.  Mr. Meyer noted that support from the City through the establishment of a TIF Housing District would strengthen applications for housing credits and other outside funding.

 

Councilor Krause noted he is in support of this project and feels this is a feasible way for the City to help bring this project to fruition.

CLOSED the public hearing

 

There being no further public comment, Mayor Droba recommended closing the public hearing.  MOTION by Councilor Krause to close the public hearing.  Motion seconded by Councilor Buller and carried unanimously.  The public hearing was closed at 5:14 P.M.
ADOPTED Resolution No. 44-2021 establishing Tax Increment Financing (TIF) Housing District No. 1-4 MOTION by Councilor Holden to adopt Resolution No. 44-2021 establishing Tax Increment Financing (TIF) Housing District No. 1-4.  Motion seconded by Councilor Ditsch and carried unanimously.
ADOPTED Resolution No. 45-2021 authorizing an Interfund Loan for advance of certain costs in connection with Tax Increment Financing (TIF) District No. 1-4 MOTION by Councilor Buller to adopt Resolution No. 45-2021 authorizing an Interfund Loan for advance of certain costs in connection with Tax Increment Financing (TIF) District No. 1-4.  Motion seconded by Councilor Krause and carried unanimously.
ADOPTED Resolution No. 46-2021 consenting to the process for the creation of a Housing Tax Increment Financing (TIF) District in support of the proposed Alexander Baker Limited Partnership Housing Project  MOTION by Councilor Krause to adopt Resolution No. 46-2021 consenting to the process for the creation of a Housing Tax Increment Financing (TIF) District in support of the proposed Alexander Baker Limited Partnership Housing Project.  Motion seconded by Councilor Holden and carried unanimously.
ADJOURNMENT Mayor Droba adjourned the meeting at 5:16 P.M.

 


Harley M. Droba, Mayor

ATTEST:


Betty Bergstrom, City Administrator

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