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ECONOMIC DEVELOPMENT ADVISORY COMMITTEE <br />AGENDA ITEM 3A <br />STAFF ORIGINATOR: Michael Grochala <br />EDAC MEETING DATE: April 7, 2016 <br />TOPIC: 35E Distribution Center and Tax Increment Financing <br />BACKGROUND <br />As previously discussed staff has been working with United Properties on a proposed industrial <br />warehousing/distribution facility along 35E. The facility would be approximately 410,000 <br />square feet with a proposed value of 16 to 20 million dollars. The property is zoned L-I, Light <br />Industrial. Warehouse and distribution facilities are a permitted use in this district. <br />It is also anticipated that the applicant will request financial assistance in the form of Tax <br />Increment Financing. <br />Tax Increment Financing (TIF) <br />TIF is a financing tool frequently used for economic development purposes. In simple terms TIF <br />is a funding mechanism that uses the increased taxes paid by development (increment) to offset <br />project development costs. It is often used to fund public improvements, write down land costs, <br />or fund site development costs. <br />The developer is reviewing project development costs and preparing an application for City <br />review. At this time staff is interested in have a general discussion on the topic. Consideration <br />of a Tax Increment Financing package will be based on both City TIF policy and our Business <br />Subsidy requirements. <br />ATTACHMENTS <br />1. Distribution Facility Concept Plan <br />2. TIF Explanation Handout <br />3. Lino Lakes TIF policy <br />4. Business Subsidy Criteria <br />