12-14-1998 EDA Packet - Laserfiche WebLink

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CITY OF LINO LAKES ECONOMIC DEVELOPMENT AUTHORITY MINUTES DATE: Monday, October 26, 1998 MEMBERS PRESENT: K. Sullivan, J. Bergeson, C. Dahl, C. Lyden, A. Neal MEMBERS ABSENT: OTHERS PRESENT: Brian Wessel, Mary Divine, Mark Ruff CONSIDERATION OF MINUTES EDA Member Bergeson moved to approve the minutes from the September 28, 1998 EDA meeting. EDA Member Dahl seconded the motion. Motion passed unanimously. CONSIDERATION OF RESOLUTION NO. 98-05 AUTHORIZING PREPARATION OF A PLAN TO MODIFY DEVELOPMENT DISTRICT NO. 1 AND TO ESTABLISH TAX INCREMENT FINANCING DISTRICT NO. 1-9 Mr. Wessel explained to the Authority that the city had a request for tax increment financing from three businesses interested in locating in Apollo Business Center. This resolution authorized preparation of the modification of Development District No. 1 to delete the remaining G.M. Development parcels and the Rehbein business park parcels from TIF District No. 1-7, and to reconstitute them into a new TIF District No. 1-9. Additional parcels that were in TIF District No. 1-7 that were unlikely to develop as light industrial uses were removed from the district altogether. The only parcels remaining in 1-7 had businesses with development agreements with the city. Ms. Divine explained that Midwest Veneer and Pressing intends to purchase four acres for a 40,000 square foot facility. H&L Mesabi was considering three acres for a 30,000 square foot facility, and All Test and Inspection was planning to purchase two acres for a 6,500 square foot building. Mr. Ruff explained that the budget in this new TIF plan would be large enough to cover all future development within the business park, which will eliminate the need for modifications of the district in the future. Development agreements will be completed later, spelling out the detail of the TIF assistance. The local contribution, which is 10 percent of the increment, will be included as part of the development agreement. EDA President Sullivan questioned if TIF was needed in Rehbein's Lake Business Park. Mr. Ruff stated that TIF allowed the city to control the type and quality of development that would go in the park.