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<br />WS – Item 2 <br />WORK SESSION STAFF REPORT <br />Work Session Item No. 2 <br /> <br /> <br />Date: July 5, 2016 <br /> <br />To: City Council <br /> <br />From: Michael Grochala, Community Development Director <br /> <br />Re: United Properties 35E Distribution Center/TIF request <br /> <br /> <br />Background <br /> <br />Staff has been working with United Properties regarding construction of a <br />warehousing/distribution facility along 35E for the past six months. This has been <br />previously discussed with EDAC, Planning & Zoning board and City Council due to both <br />its economic development potential and zoning related site issues. <br /> <br />United Properties submitted a request for rezoning to Planned Unit Development, <br />Development Stage Plan Approval and Preliminary Plat approval for the 56 acre <br />Clearwater Creek Business Park. The proposed plat includes one 30-acre lot for a <br />proposed distribution center and two outlots for future development. The Planning and <br />Zoning board held a public hearing on June 8, 2016 which was continued for further <br />discussion on July 13, 2016. <br /> <br />The proposed distribution facility is approximately 402,552 square feet in area. United <br />Properties is constructing the facility to house the growing operations of Distribution <br />Alternatives. Distribution Alternatives moved to Lino Lakes in 2004 and is currently <br />located in the Marshan Industrial Park. The company currently employees 120 full time <br />employees. <br /> <br />Development of the site will require the extension of 21st Avenue, from Commerce <br />Avenue to approximately 2,100 feet south. Extension of the street includes the crossing <br />of Clearwater Creek and filling and mitigation of floodplain areas adjacent to the creek. <br />21st Avenue is planned to be extended to Cedar Street, further to the south, in the <br />Comprehensive Plan. The project proposes to dedicate right of way for the entire length <br />of the roadway. <br /> <br />The total project cost is approximately $24,000,000 with an estimated building/site value <br />of $18,200,000. Due to costs associated with the street extension, floodplain mitigation <br />and necessary soil corrections, the developer is requesting public assistance in the form of <br />Tax Increment Financing (TIF). <br /> <br />Over the past 20 years the City has used TIF to facilitate development of nearly 1 million <br />square feet of industrial space adding $65,000,000 in new valuation. The proposed <br />project would be the largest completed in Lino Lakes to date. As previously discussed