08-27-1998 EDA Packet - Laserfiche WebLink

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AGENDA ITEM 3 STAFF ORIGINATOR: Brian Wessel DATE: 8/27/98 TOPIC: Discussion Item: Development Proposal, JADT Development Group (Shopping Center) BACKGROUND: Tim Baylor of JADT Development Group has been working with his development team for the past year to assemble land and produce a conceptual plan for the shopping center in the Town Center. He is requesting economic assistance in the development of the shopping center. Various alternatives for providing public assistance to the project have been considered. Lino Lakes has limited ability to provide financial assistance to the project, since tax increment financing is not available. The developer has estimated assessments for Phase 1 at $610,000, plus related engineering costs. Preliminary discussions with Bruce Munneke, the county assessor, reveal that a fully developed Phase 1 should generate net property taxes of approximately $335,723 per year. Net city taxes generated from a fully developed Phase 1 would amount to approximately $69,600 per year based on 1998 tax rates. Staff recommends the city consider a "non-TIF" pay-as-you-go assistance. In this arrangement, JADT would be assessed for public infrastructure improvements to the shopping center. The city could reimburse the city portion of taxes generated until the developer had recouped the cost of assessments, or 10 years, whichever came first. The city's commitment would be formulated in an agreement effective only if development began within a specified time frame. The pros and cons of the proposal: Disadvantages: • It would be 10 years before the city received its portion of the taxes on the shopping center site