11-28-2018 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 28, 2018 RE: Public Hearing on the Modification to Development District No. 7 and the establishment of Tax Increment Financing District No. 7-2 and consideration of a Resolution approving the Program Modification and TIF Plan. The City of Little Canada has been working with representatives from the Minnesota Department of Employment and Economic Development (DEED) and Commercial Real Estate Broker CBRE on a proposed business expansion project in Little Canada. A local produce delivery company (BIX Produce Company) is working to acquire an existing facility on Centerville Road in Little Canada as part of a planned expansion. The proposed development consists of the acquisition of the approximately 207,000 square-foot (SF) Slumberland distribution facility located in the SE quadrant of 35E and 694 on two parcels of land. An Economic Development TIF District is being proposed 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. Minnesota Statutes require the Planning Commission to review the proposed plan and program to determine if it conforms to the general plans for development 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. Both the 2030 & 2040 Comprehensive Plans identify this area as an Industrial Land Use based on the following Goals and Policies: