11-13-2000 EDA Minutes - Laserfiche WebLink

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2. As part of the Lino Lakes Town Center, the projects moving into the park play a significant role in providing a critical mass of development to support retail and service businesses in the commercial center. 3. This project is also consistent with the City's need to recover the return on its investment in the existing infrastructure within the park. Ms. Divine advised this project will be receiving site and building play review later tonight by the City Council. It is recommended that approval of the business subsidy be contingent upon final approval of the project by the City Council. EDA Member Carlson asked which of the City's TIF Districts require the 10% contribution. Ms. Divine advised any economic development district requires the 10% contribution. EDA Member Reinert asked how the amount of TIF is derived. Ms. Divine advised the amount is derived from a number of scoring mechanisms that include land use, tax base, number of employees. Other factors include TIF capacity and the company's need. In this case, the amount came in approximately 10-12% of their estimated market value. EDA Member Carlson moved to approve Resolution No. 00 — 04 contingent upon final approval of the project by the City Council. EDA Member Dahl seconded the motion. Motion passed unanimously. CONSIDERATION OF CONTRACT FOR PRIVATE DEVELOPMENT BETWEEN LINO LAKES EDA AND NORTH AMERICAN COMPOSITES Ms. Divine advised the development contract outlines the conditions for public assistance to North American Composites for the construction of a 25,000 square foot facility on 2.4 acres on the G.M. Development property in the Apollo Business Center. The proposed facility will have a minimum market value of $938,400 for a total of $42,000 in annual taxes (based on pay 2001 dollars). The costs for land, assessments and escrow are approximately $226,000. In this agreement, the City agrees to provide tax increment financing totaling $122,250 towards those costs. The agreement removes the assessments of $63,877 up front. The remaining pay-as-you- go TIF amounts to $58,373 for assistance with land write down and return of escrow. The City will be reimbursed first for the assessments from the available tax increment, and then the developer will receive the remaining increment. Estimated total pay back is in 2007.