e e e e e e e e e e e e e e very right good evening everyone uh this is the special December 3rd uh 2024 kajo of Economic Development Authority meeting which I'm calling to order uh the first order of business oh my good if I can talk uh is the Pledge of Allegiance so if you'd please rise I pledge allegiance to the flag of the United States of America and to the Republic for which it stands one nation under God indivisible with liberty and justice for all and will G do the role please member Scott here pardon me board member Scott here board member Carrie board member Meyers board member baptis here board member cheetah here vice president Olsen here president Bailey here uh uh next item on our agenda real quick here is approval of the minutes and what we're approving or looking for motion in a second is to approve the November 12 2024 meeting minutes we do approve all right we have a motion by uh Ed vice president Olsen second second by Ed member cheetah uh any discussion seeing none all those in favor signify by saying I I I opposed motion carries uh business items we have none this evening uh and we'll move right away then to the main reason we're here this evening and that is the public hearing uh and this is to adopt the final HRA tax levy and our finance director Brenda melanowski is going to take us through this so welcome this evening Brenda thank you uh Eda board president members of the Eda um I'm going to do a short presentation before you hold your uh public hearing uh regarding the uh Housing and Redevelopment uh Levy here for the city of Cottage Grove and then you will uh adopt a resolution to approve that Levy uh just a reminder uh that the Eda here in Cottage Grove has both uh Eda and HRA Authority and so what that means is that your structure allows for property tax levies for both Eda activities and HRA activities um an Eda uh Levy which we've utilized in the past uh that can be used for those traditional Economic Development activities um and HRA Levy uh it can be used for Housing and Redevelopment and so as our uh Community uh starts to age uh we can utilize that for those housing affordable Housing and Redevelopment activities uh in 2024 so the current year uh we have an Eda Levy in the amount of $275,000 we use that for economic development activities um and some Redevelopment activities uh statuto uh by the State uh the amount that we can Levy uh is based on our taxable value so for 2025 uh we can uh Levy for Eda activities about $1.1 million so our $275,000 is well below that limit uh the Eda Levy uh is included on a property tax bill that comes from Washington County on the same line as the city of Cottage Grove so for our residents and our businesses they receive a property tax bill from Washington County and it has a line for each taxing jurisdiction within the county so there's a line that says Washington County and that's the amount of County property taxes that are being levied the school district has a separate line and then the city has another line our Eda Levy is on that line that's called city of Cottage Grove what we are recommending uh for 2025 is that we take the 275,000 that we are uh levying in 2024 and that we create two separate levies uh the first Levy will be the Eda Levy and then the second portion or 137,00 uh will be utilized for the HR Levy that HRA Levy is more transparent for our property taxpayers because it's a separate line on the property tax bill it'll say Cottage growth HRA so it's a little more transparency as we start to do those Redevelopment and Housing type activities uh currently and in the future in h Levy is also uh subject to limits set by the state uh for 20125 uh it's about 1.78 million uh that we could utilize for the HRA Levy so this uh 137,00 that we're recommending is well below those limits here's allowable uses of the HRA Levy it was also included in your packet uh it's those housing Redevelopment activities for 2025 we have a budget uh that's included in the packet what we're recommending is that we U uh utilize that HRA Levy in 2025 to pay for staff salaries we'll move a portion of staff salaries that are currently budgeted in the Eda fund we'll move those over to the HRA fund we'll set up a new fund and then about uh 25,000 for Professional Services for Housing and Redevelopment uh type activities uh for Cottage Grove uh included in the packet also wor other uh cities counties uh in the State uh that have uh currently HRA levies on this uh slide here that is in front of you are levies uh in the metro area for cities that have those HRA levies uh we are uh we have a new Levy so we're at the bottom of the list at that $137,500 uh with that I'm happy to answer any uh questions that you may have before you hold your public hearing fantastic thank you uh uh thank you Brenda um or Eda members is there any questions that you might have at this point on this yes uh Mr cheetah yeah so how do we arrive at that 5050 split for Eda and HRA we uh we didn't uh we looked at uh half of the salaries that are in the Eda budget and we we moved a portion of those staff time over and so it was a way uh to start utilizing uh those funds that are the Eda uh funds currently over for that HRA as we determine those costs that we need in the future for those Housing and Redevelopment activities that answer your question or if I can have a followup yeah go ahead yeah yeah so I guess is there something more they can work on now that they're under the HRA umbrella as opposed to the Eda are they going to be specifically working on more housing policy versus Eda who I guess how are we arriving at who's going where right and we haven't uh we haven't looked at um a staff member as we looked at uh at City budgets each year um some staff members they may be budgeted in the general fund but they might be doing Eda activities and you know vice versa so we haven't looked at specific uh staff salaries uh that will be doing that but as a reminder we have that housing study uh that's coming back uh here early in uh 2025 and so there will be staff time um as we uh work through that housing study for that affordable housing component and so I would think that the community development director the Eda director the city administrator um those would be some of those staff salaries that would be utilized in that HRA Levy fair enough um yeah so that's I think that's all I got for now okay um any other members uh have a quick question yes Mr uh Jean Baptist yeah so I do have a quick question so previously they were under both um the Eda and the HRA and I believe that and correct me if I'm wrong but I that you had mentioned the maximum Levy for the Eda had been like 1.7 million or something along those lines but now that they're split into two do they each have a maximum Levy of 1 million so the total that they could raise together now becomes 2 something million that that is that is true um I when we did a 10-year financial management plan for the city just recently in 2023 there wasn't the thought that we would be loving that amount of money but yes they do both have a separate Authority to Levy up to those amounts yes got it thank you yes um Mr cheetah yeah and I guess on the levy question does a levy increase to either the Eda or the HRA come to the Eda itself or is that just a city council question good question um the HRA Levy would come in front of the Eda a Ed Levy is uh set by the city council okay thank you yeah and one of the one of the interesting things is I think it brings up a good point I mean our intent has not been at least not that I can see in the foreseeable future that we would Levy to the max the whole idea here I think is um is a little bit more on the transparency side as we go forward so when you talk about the half and the half um eventually do I believe and I I mean our recommendation at some point would be that the HRA if you will would take 100% um you know as it relates to the the amount of money that currently is being split between our general fund and then the H so matter of fact this year uh with the budget that I believe will be approving tomorrow night um the normal 275 or whatever it is we just cut that in half so we didn't raise the levy higher for the general taxes in K gr we kept it uh we didn't take two above 275 we kept it half and half you know what I'm saying we're not raising this amount and then raising this amount it's flush um I know that sounds really weird and maybe the general public who might be watching um but our our intent is to so people are saying hey what are you doing with your the Eda money or the HRA money which is under the Eda this is what it is and one of the uh one of the challenges if you saw a bunch of the Cities out there uh one of the big things that we do get Redevelopment opportunities that come to our city and yes we do have some very we do have some money in our Eda trust fund uh but the reality is there's it's limited and if we can build up some Revenue in this particular fund then when these bigger projects come by whether it's a Redevelopment for housing or whatever like that we can actually utilize a bigger pot of money I believe if I heard right and maybe I'll look at Jennifer see if she remembers this or not I think uh the the levy in or Woodbury has what two million in theirs Do You Remember by chance that's the last number I heard yeah yeah so like Woodberry has got a an H Levy of about 2 million that they're kind of sitting there right now waiting for a big if you will some other developer to come through where they can uh uh part put some of that additional money towards a project for affordable housing in woodbery just using them as an example because I I remember seeing that out in the in the news so any other comments questions okay so I know there's nobody in the audience but to be official we do need to open the public hearing uh and uh see if there was anybody wants to speak and unfortunately uh more fortunately whatever um there is nobody in the audience this evening so I will then go ahead and close the public hearing and uh for the Eda members uh before you is a recommendation from our staff on this proposal uh and if somebody wants to make a motion um and a second uh we would need to do that to go forward I can make the motion okay um I I um make a motion to approve resolution 2024-the a final Levy to be set on taxable property of the city of Cottage Grove Washington County Minnesota for fiscal year 2025 a special benefit tax levy not to exceed $137,500 per the proposed 2025 Budget on file with the city okay so I have a a motion by Ed member Scott to have a second I second that motion okay second by uh Ed member uh Jean Baptist any further discussion yes Mr cheetah yeah I'm sure I'll be the only one who votes no on this but um I'll State my concerns publicly yep um I'm concerned that we're going to come back next year and we're going to double this 137 and we're going to pass it right now because it's not an increase but next year it'll be twice what it is and the following year be twice what it is and it's going to snowball snowball and snowball and I don't know I'm it's not not something I'm interested in okay sounds good any other comments Ed members all right all those in favor uh signify by saying I I I opposed no uh motion carries uh 4 to one okay um there is no other but thank you brendo uh there is no other business there is no workshop and so literally by 6:15 I'm looking for a motion to adjourn move to adjourn we have a motion by uh Ed vice president Olson do I have a second I'll second the motion second by Ed member Scott all those in favor signify by saying I I I opposed no we're not adjourned oh do we need all of us no no no okay all right we're adjourned I didn't know you wanted e e for