05-28-13 Council Packet - Laserfiche WebLink

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5 Factors Affecting Financial Condition (Continued) In 2004, the City entered into an agreement with a mast er developer to develop 40 acres in the southeast quadrant of I-35W and Lake Drive. Called Legacy at Woods Edge , this mixed-use development is intended to include diverse opportunities for housing, retail and office uses. To date, the development includes the Lino Lakes Civic Complex (which houses the city hall and police station), the Chain of Lakes YMCA, a 60-unit workforce housing project, 13,000 square feet of leasable commercial space, and an assisted living facility. The Civic Complex and YMCA provide a civic and community focus as part of th e vision for Town Center. A workforce family housing and assisted living facility provide diversity in hous ing to underserved populations within the City. In 2006, the City placed a major focus on reconstruction of the 35W/Lake Drive interchange and completion of public improvements in Legacy at Woods Edge to accommodate planned development and completed the improvements by 2008. However, it became evident at the end of 2007 that development was stalling. The recession has had negative impacts on the Legacy developmen t. Both the master developer and lender defaulted, sending the remaining 22 acres intended for townhomes and co mmercial uses into tax forfeit. However, the solid foundation that was built and strong interest by develope rs prior to the recession ensures that better economic times will once again bring the interest in residential a nd commercial growth needed to complete the vision. Street, streetscape, water, sewer, and storm water impr ovements, as well as a small community park, have been installed within the development area and assessed to the development. This $11.1 million improvement was financed through the joint efforts of MNDOT, Anoka Count y and the City of Lino Lakes. The City has issued $4,215,000 in G.O. Tax Increment bonds and will use tax in crement financing and Minnesota State Aid funds to finance its portion of the project cost. Once construction gains its footing again the City can assess the benefitting properties. The City continues to look for ways to resurrect the project and strives to be prepared to market the property when the economy recovers. Building activity and development continued to be so ft in 2012, reflecting the nationwide market. Building permits for new homes in 2012 numbered 25, compared to 34 in 2011. This represents about 1/4 of the new home permits issued in 2007 and is dow n by approximately 87% from 2005. In anticipation of a strengthening economy, the City t ook the lead on developing the infrastructure needed to service future growth on the 35E/County Road 14 intercha nge area. A major reconstruction of the interchange completed a multi-year improvement of County Road 14 from Highway 61 in Hugo, through Centerville, to 35W in Lino Lakes. The City portion of the cost for this bri dge reconstruction project is being financed through Anoka County, with the City issuing an initial $4.26 million Genera l Obligation Note to the County. Due to cost savings in this project the Note was amended to $3.695 million in 2011. With both major interstate interchanges complete, the C ity is preparing for development of several hundred acres in the northeast quadrant of 35E/14. Interest in the comme rcial interchange has spurre d planning for an extension of Otter Lake Road North, which will leave the City well poised to accommodate significant future industrial, commercial and residential development.