April 21, 2015
A special meeting of the Hopkins Housing and Redevelopment Authority was held April 21, 2015, at Hopkins City Hall. Present were Chairman Eugene Maxwell, Board Members Molly Cummings, Jason Gadd, Kristi Halverson and Aaron Kuznia. Also present were Executive Director Mike Mornson, Assistant Executive Director Kersten Elverum and City Attorney Kim Kozar.
I. CALL TO ORDER
The meeting was called to order at 7:01 p.m.
II. NEW BUSINESS
- ITEM 2015-07 Assignment of two TIF notes to Doran Partners 1, LLC
Ms. Elverum stated that the HRA created Tax Increment District (TIF)1-4 to facilitate redevelopment of the former Hopkins Honda body shop/used-car lot between Sixth and Eighth Avenues. The project was sold to Marketplace Holdings, Inc., which developed 53 apartments, 5,500 square feet of retail space and seven townhomes, with additional investment by The George Group North, LLC. TIF was pledged through two notes with original principal amounts totaling $1 million and $360,000 respectively.
The current owners and holders of the TIF notes are contemplating selling the property, and the HRA has been asked to approve the assignment of Phase I and Phase II TIF notes to a new entity, Doran Partners 1, LLC. Upon sale, the development agreement look-back provision requires analysis of a reasonable rate of return, given the public subsidy. This analysis has not been completed. Staff recommends approval contingent upon the review of the look-back provisions and recommendations of our financial advisor.
Commissioner Halverson moved, Commissioner Kuznia seconded, to approve assignment of Phase 1 Tax Increment Financing Note and assignment of Phase II Tax Increment Financing Note between Marketplace Holdings, Inc., and The George Group North, LLC, and Doran Partners 1, LLC, contingent upon the review of the look-back provisions and recommendations of our financial advisor. The motion was approved unanimously.
Commissioner Cummings moved, Commissioner Gadd seconded, to adjourn the meeting. The motion was approved unanimously. The meeting adjourned at 7:05 p.m.