07-08-1996 EDA Minutes - Laserfiche WebLink

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CONSIDERATION OF RESOLUTION NO. 96-06 AUTHORIZING THE SALE OF PROPERTY TO EAM Mr. Wessel explained that this resolution allowed for the sale of city -owned land to EAM. Closing is scheduled for late July. EDA Member Kuether moved to approve Resolution No. 96- 06. EDA Member Neal seconded the motion. Motion passed unanimously. CONSIDERATION OF THE CONTRACT FOR PRIVATE DEVELOPMENT BETWEEN LINO LAKES EDA AND BLUE HERON DEVELOPMENT CORPORATION Mr. Wessel explained that the cost for 3.09 acres of land, plus assessments and administrative fees for the Blue Heron II project totaled $205,081.79. The EDA's TIF subsidy totals $146,421.79. The assessments and reimbursement of administrative fees will be disbursed to Blue Heron upfront when the Certificate of Completion is issued. A total of $61,850 toward the cost of the land will be reimbursed on a pay-as-you-go basis. Blue Heron is contributing $58,660 in costs. The TIF subsidy is 12% of the total project cost. Mr. Wessel noted that the city was also requiring that 60% of the building be preleased to qualified tenants before TIF assistance kicks in. EDA Member Bergeson questioned what "qualified" tenants meant. Ms. LaForest explained that because TIF assistance is used, tenants within a project must be qualifying uses, which are manufacturing, warehousing or distribution companies. Only 15% of the square footage of a building can be used for nonqualifying uses. Tenants must also meet the city's zoning requirements. Mr. Batty added that with an owner - occupied building the city could be comfortable knowing its use, but tenants add an extra element that must be considered. It is the developer's responsibility to meet the TIF criteria. Mr. Wessel added that staff tours the facilities of potential tenants. EDA Member Bergeson questioned whether a tenant's lease was as long as the TIF payback period. Mr. Batty said the city had not taken that approach, but that 30 days notice was required before a change of tenants. EDA Member Lyden questioned how much in taxes this project generated. Ms. LaForest responded approximately $75,000 per year. EDA Member Kuether asked if more leasable space would be built in Apollo Business Park. Mr. Wessel said he believes the city has about the right percentage and in 1996 its policy is to require developers to share the cost of land and assessments if they want to build leasable space. EDA Member Kuether moved to approve the Blue Heron II development agreement. EDA Member Bergeson seconded the motion. Motion passed unanimously. ADJOURNMENT EDA Member Kuether moved to adjourn at 6:26 p.m. EDA Member Lyden seconded the motion. Motion passed unanimously.