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<br /> <br /> STAFF REPORT <br /> <br /> <br /> <br />TO: Planning Commission Members <br /> <br />FROM: Chris Heineman, City Administrator <br /> Jessica Jagoe, Associate Planner <br /> <br />DATE: November 8, 2018 <br /> <br />RE: Creation of Tax Increment Financing District 7-2 <br /> <br />The City of Little Canada is considering the creation of an Economic Development Tax Increment <br />Finance (TIF) District. The parcel that will be located within the district, is located at 3060 <br />Centerville Road and is shown on the Aerial Map attached. <br /> <br />The City Council has held three separate work session meetings related to discuss a request for <br />business assistance for a proposed economic development project in Little Canada. The proposed <br />development consists of the acquisition of the approximately 207,000 square-foot (SF) Slumberland <br />distribution facility located in the City of Little Canada at the SE quadrant of 35E and 694 on two <br />parcels of land. The Economic Development TIF District is being created to facilitate an expansion <br />of the company’s food processing and distribution capabilities and accommodate growth. <br /> <br />The proposed project will relocate approximately 400 existing jobs and create 160 net new positions <br />over the next five years. The project will require a $25M investment to acquire the existing facility, <br />up-fit the building to food-grade standards and furniture, fixtures, equipment and IT. The proposed <br />improvements include approximately 60,000 SF of refrigerated, cooler and freezer space; 91,000 SF <br />of storage, dock and maintenance; 26,000 SF of processing; and 20,000 SF of office space. <br /> <br />The developer plans to purchase the existing building and anticipates a total of $14,706,250 in <br />improvements. The current taxable market value of the property is $8,427,500 ($1,753,500 for land <br />and $6,674,000 for the building). The Ramsey County Assessor indicated that the property value <br />will increase by $1,500,000 to $2,000,000 once the upgrades have been completed. Based on <br />analysis from Ehlers Financial Advisors, the project will generate an estimated $32,588 in annual <br />tax increment. <br /> <br />Before the Council can take action on creating a TIF District, Minnesota Statutes require that the <br />Planning Commission review the Plan and Program and determine if it conforms with the general <br />plans for development/redevelopment for the City as described in the Little Canada Comprehensive <br />Plan (Minnesota Statutes, Section 469.175, Subd. 3). <br /> <br />The Little Canada Comprehensive Plan identifies this area of District 9 in the southeast quadrant of <br />the I-35 E/I-694 interchange area as Industrial. The following excerpt from the 2030 <br />Comprehensive Plan identifies several “Goals and Policies” for Industrial Land Use in this area: