11-14-2018 Council Packet - Laserfiche WebLink

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STAFF REPORT TO: Mayor Keis and Members of City Council FROM: Chris Heineman, City Administrator DATE: November 14, 2018 Workshop Meeting RE: Proposed Economic Development Tax Increment Finance District The City Council has held three previous workshop meetings to discuss a request for business assistance for a proposed economic development project in Little Canada. The proposed development consists of the acquisition of the approximately 207,000 square-foot (SF) Slumberland distribution facility located in the City of Little Canada at the SE quadrant of 35E and 694 on two parcels of land. The Economic Development TIF District is being created to facilitate an expansion of the company’s food processing and distribution capabilities and accommodate growth. The proposed project will relocate approximately 400 existing jobs and create 160 net new positions over the next five years. The project has received a Minnesota Job Creation Fund award through the MN Department of Employment and Economic Development (DEED). The project will require an investment of approximately $25M to acquire the existing facility, up-fit the building to food-grade standards and furniture, fixtures, equipment and IT. The proposed improvements include approximately 60,000 SF of refrigerated, cooler and freezer space; 91,000 SF of storage, dock and maintenance; 26,000 SF of processing; and 20,000 SF of office space. The developer is considering a purchase of the existing building and anticipates a total of $14,706,250 in improvements. The current taxable market value of the property is $8,427,500 ($1,753,500 for land and $6,674,000 for the building). The Ramsey County Assessor indicated that the property value will increase by $1,500,000 to $2,000,000 once the upgrades have been completed. Based on analysis from Ehlers Financial Advisors, the project will generate an estimated $32,588 in annual tax increment. Before the Council can take action on establishing a TIF District, Minnesota Statutes require that the Planning Commission review the proposed plan and program to determine if it conforms with the general plans for development/redevelopment for the City as described in the Little Canada Comprehensive Plan (Minnesota Statutes, Section 469.175, Subd. 3). The Planning Commission met on Thursday, November 8th and approved the attached Resolution. The Planning Commission considered the current zoning and guidance from the Little Canada Comprehensive Plan in making this determination. The Comprehensive Plan identifies this area in the southeast quadrant of the I-35 E/I-694 interchange area as Industrial. Both the 2030 & 2040 Comprehensive Plans identify this area as an Industrial Land Use based on the following Goals and Policies: