05-26-1998 EDA Packet - Laserfiche WebLink

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CONSIDERATION OF OFFICIAL DEPOSITORIES Mr. Wessel explained that on occasion the EDA and the city have financial transactions and the EDA will need official depositories. EDA Member Lyden moved to approve Norwest Bank, First Bank NA, Firstar Bank, Merrill Lynch, Dain Bosworth, Juran and Moody, and Prudential Bache. EDA Member Dahl seconded the motion. Motion passed unanimously. CONSIDERATION OF CONTRACT FOR PRIVATE DEVELOPMENT BETWEEN LINO LAKES EDA AND NOL-TEC, INC. Mr. Wessel explained that in 1996 the EDA approved a development agreement with Nol- Tec to build a 16,000 square foot facility in the Apollo Business Park. In the agreement, TIF was used to pay for 1.6 acres and all the assessments. Nol-Tec paid for the remaining 1.4 acres of the 3-acre parcel. The agreement the city made with Nol-Tec was that TIF would be used to subsidize the remaining 1.4 acres if the company expanded. The company is now planning to double the size of its Lino Lakes facility. This decision is based, in part, on the commitment of $54,000 in additional pay-as-you-go TIF to pay for the remaining 1.4 acres. This expansion will increase the industrial tax base and provide the capacity for 25 additional high -quality jobs. This development contract between the EDA and Nol-Tec outlines the conditions for public assistance for the additional TIF. In this agreement, the city will continue to be reimbursed for assessments first from available tax increment, and Nol-Tec will be reimbursed the additional $54,000 from the remaining available tax increment. Payback on the entire project will be complete in 2004. EDA Member Bergeson asked when the original payback was to occur. Ms. Divine said it was scheduled to go on the tax rolls in 2004, the same as with the expansion. The additional increment from the expansion would pay for the additional TIF. EDA Member Bergeson moved to approve the development contract. EDA Member Lyden seconded the motion. Motion passed unanimously. CONSIDERATION OF AGREEMENT RELATING TO DEVELOPMENT CONTRACT AND MORTGAGE FINANCING, F&G, INC. Mr. Wessel explained that in 1997 the EDA entered into a development agreement for financial assistance with F&G, Inc. regarding a project within TIF District 1-7, the Apollo Business Park. The agreement called for the construction of two buildings in 1997, and a third in 1998. The first two buildings have been completed and the developer has arranged for a permanent mortgage on the project. The development agreement contains a provision which prohibits any liens (including a mortgage) against the property without the EDA's permission, if the project is not complete. Because the development agreement also calls