07/07/2016 EDAC Packet - Laserfiche WebLink

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ECONOMIC DEVELOPMENT ADVISORY COMMITTEE AGENDA ITEM 3A STAFF ORIGINATOR: Michael Grochala EDAC MEETING DATE: July 7, 2016 REQUEST: United Properties Distribution Center/TIF Request BACKGROUND Staff has been working with United Properties regarding construction of a warehousing/distribution facility along 35E for the past six months. This has been previously discussed with EDAC, Planning & Zoning board and City Council due to both its economic development potential and zoning related site issues. United Properties submitted a request for rezoning to Planned Unit Development, Development Stage Plan Approval and Preliminary Plat approval for the 56 acre Clearwater Creek Business Park. The proposed plat includes one 30-acre lot for a proposed distribution center and two outlots for future development. The Planning and Zoning board held a public hearing on June 8, 2016 which was continued for further discussion on July 13, 2016. The proposed distribution facility is approximately 402,552 square feet in area. United Properties is constructing the facility to house the growing operations of Distribution Alternatives. Distribution Alternatives moved to Lino Lakes in 2004 and is currently located in the Marshan Industrial Park. The company currently employees 120 full time employees. Development of the site will require the extension of 2 1 " Avenue, from Commerce Avenue to approximately 2,100 feet south. Extension of the street includes the crossing of Clearwater Creek and filling and mitigation of floodplain areas adjacent to the creek. 2 Pt Avenue is planned to be extended to Cedar Street, further to the south, in the Comprehensive Plan. The project proposes to dedicate right of way for the entire length of the roadway. The total project cost is approximately $24,000,000 with an estimated building/site value of $18,200,000. Due to costs associated with the street extension, floodplain mitigation and necessary soil corrections, the developer is requesting public assistance in the form of Tax Increment Financing (TIF). Over the past 20 years the City has used TIF to facilitate development of nearly 1 million square feet of industrial space adding $65,000,000 in new valuation. The proposed project would be the largest completed in Lino Lakes to date. As previously discussed the project would require the establishment of a new TIF District and satisfaction of the City's business subsidy requirements. Staff is proposing the establishment of a new