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HomeMy WebLinkAbout04-28-1997 EDA PacketAGENDA ECONOMIC DEVELOPMENT AUTHORITY MONDAY APRIL 28, 1997 6:00 P.M. 1. Call to Order and Roll Call 2. Consideration of Minutes of Monday, March 24, 1997 3. Consideration of Resolution No. 97-08 adopting a modified program for Development District No. 1 and a Plan for Tax Increment Financing District No. 1-8 4. Consideration of Contract for Private Development between Lino Lakes EDA and Fairview Health Services Inc. 5. Consideration of a proposed sale of Blue Heron Development Corporation to Lakeview Development Inc. 6. Consideration of Resolution No. 97-09 adopting a modified Plan for Tax Increment Financing District No. 3-1 (Clearwater Creek Development Center) 7. Adjourn CITY OF LINO LAKES ECONOMIC DEVELOPMENT AUTHORITY MINUTES DATE: MARCH 24, 1997 MEMBERS PRESENT: J. Landers, C. Lyden, S. Kuether, A. Neal, J. Bergeson MEMBERS ABSENT: None OTHERS PRESENT: B. Wessel, R. Batty, M. Divine CONSIDERATION OF MINUTES EDA Member Neal moved to approve the minutes from Monday, February 10, 1997. EDA Member Lyden seconded the motion. Motion passed unanimously. CONSIDERATION OF CONTRACT FOR PRIVATE DEVELOPMENT BETWEEN LINO LAKES EDA AND LINO LAKES BUSINESS CENTER PHASES 2 3, 4, 5 Mr. Wessel explained to the board that the contract outlined the condition for providing assistance to Fogerty Investments for two parcels in the Apollo Business Park. The contract provides for $390,000 in TIF, with $108,9000 upfront and $281,100 on a pay-as- you-go basis. Because the four buildings will be phased, the assistance will be based upon performance, with the developer forfeiting a percentage of the pay-as-you-go TIF for any phase that remains unbuilt by the end of 1999. Mr. Wessel noted this TIF was within the city's 1997 TIF policy of 12% of the total project cost. EDA Member Neal moved to approve the development contract. EDA Member Lyden seconded the motion. Motion passed unanimously. PUBLIC HEARING ON THE PROPOSED SALE OF PROPERTY IN THE APOLLO BUSINESS PARK TO LINO LAKES BUSINESS CENTER PHASES 2 3, 4, 5 EDA President Landers opened the hearing at 6:04 p.m. Upon hearing no comments the hearing was closed at 6:04 p.m. CONSIDERATION OF RESOLUTION NO. 97-04 AUTHORIZING SALE OF PROPERTY Mr. Wessel explained that this resolution approves the sale of city -owned property in the Apollo Business Park to the developer. EDA Member Neal moved to approve the resolution. EDA Member Lyden seconded the motion. Motion passed unanimously. CONSIDERATION OF RESOLUTION NO. 97-07 ADOPTING A MODIFIED PLAN FOR TIF DISTRICT NO. 1-7 Mr. Wessel told the board that this resolution authorizes the EDA to provide public assistance to the Lino Lakes Business Center Phases 2, 3, 4, 5. EDA Member Neal moved to approve the resolution. EDA Member Lyden seconded the motion. Motion passed unanimously. RESOLUTION NO. 97-05 AUTHORIZING PREPARATION OF A MODIFIED TAX INCREMENT FINANCING PLAN FOR TIF DISTRICT NO. 3-1 Mr. Wessel explained to the board that the city had received a request for tax increment financing assistance from GNW Machine, and its sister company Uptech Automation to build a 31,783-square foot office/manufacturing facility in the Clearwater Creek Development Center. This resolution authorizes preparation of a plan to modify the district. EDA Member Neal moved to approve the resolution. EDA Member Lyden seconded the motion. Motion passed unanimously. CONSIDERATION OF A PROPOSED SALE OF BLUE HERON DEVELOPMENT CORPORATION PROPERTY TO LAKEVIEW DEVELOPMENT INC. Mr. Wessel informed the board that Bill Dubats of the Lakeview Development Corp. requested this item be tabled. EDA Member Neal moved to table the time. EDA Member Lyden seconded the motion. Motion passed unanimously. CONSIDERATION OF A REIMBURSEMENT AGREEMENT BETWEEN THE EDA AND NORTHERN WHOLESALE Mr. Wessel explained that the development agreement between the EDA and Northern Wholesale called for a reimbursement agreement to be executed by the EDA for the reimbursement of $45,000 in site preparation costs as part of the TIF agreement. Northern Wholesale has met the requirements for this reimbursement. EDA Member Neal moved to approve execution of the agreement. EDA Member Lyden seconded the motion. Motion passed unanimously. RESOLUTION AUTHORIZING PREPARATION OF A MODIFIED PROGRAM FOR DEVELOPMENT DISTRICT NO. 1 AND TO ESTABLISH TIF DISTRICT NO. 1-8 Mr. Wessel explained to the intent to set up a Redevelopment District to be prepared for assistance if necessary on three pending developments. The developments included the old Gethsamene church site on Lake Drive/35W, the house owned by the city on Birch Street/49, and the 49 Club on 49/County Road J. Other parcels on the 49/J site were included and staff will investigate whether these sites qualify as a redevelopment district. EDA Member Bergeson asked if the clock would start running on the parcels. Mr. Batty explained it was a 25-year district, and the clock would begin running. Mr. Bergeson asked if other areas should be in the district, such as along Lake Drive. Mr. Batty explained that each non-contiguous piece must qualify on its own as a redevelopment district, and parcels could be added within the first five years. After that, a new TIF District could be established to include any parcels the city may want to include. EDA Member Kuether asked why the city would want to do this now. Mr. Wessel explained that 49/J was considered a door to the community. The 49 Club owner wants to rebuild the facility and needs city water to the site. The Birch Street/49 property will be owned by the city and potential developers may require assistance to get utilities to the site. He added that the owner of Apitz Garage had talked to the city about expanding onto that site, and potential users will be asked to submit a proposal. The church site in the Village is a way to provide Fairview Hospital some assistance if necessary. EDA Member Kuether noted that the city had said no TIF would be used in the Village. She said if it was used on one project, everyone else would expect it. Ms. Divine noted that only the church parcel qualified for redevelopment so all projects would not be eligible. EDA Member Lyden said he believed redevelopment was one of the best uses of TIF. Kuether noted that Forest Lake School District should be notified as well as Centennial. EDA Member Neal moved to approve the resolution. EDA Member Lyden seconded the motion. Motion passed unanimously. ADJOURNMENT EDA Member Bergeson moved to adjourn. EDA Member Neal seconded the motion. Motion passed unanimously. Meeting adjourned, 6:28 p.m. A EN ►A ITEM 3 INATOR: Brian Wessel 4/28197 Resolution No. 97-08 adopting a modified program for Development District No. 1 and to establish Tax increment Financing District No. 1-8 litstablishment of this 25-year Redevelopment District is in response to eas within the city that meet the criteria for redevelopment and have pots' ` redevelopment within thenear future. The redevelopment district will enable the city to offer financial assistance for land, assessments or site work when appropriate. At this time, the sites that are being considered for redevelopment include: 1) the former Gethsemane Church site in the Village where Fairview is planning to build a clinic; 2) the 49 Club site which is in need of structural repair and upgrading; and 3) the "Kaiser" property which the city intends to sell for commercial redevelopment. A total of 4 parcels are included in three separate areas of the city. It is possible that there are other potential redevelopment areas within the city, but redevelopment may not occur in the foreseeable future. Over time, the city can expand the District to include other parcels, providing they meet the criteria for redevelopment. OPTIONS: 1. Adopt Resolution No. 97-08 for the modificationof Development District No. 1 and the establishment of TIF District No. 1-8 2. Return to staff for fui RECOMMENDATION: Option 1 Member introduced the following resolution and moved its adoption: LINO LAKES ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. 97-08 RESOLUTION ADOPTING A MODIFIED PROGRAM FOR DEVELOPMENT DISTRICT NO. 1 AND A PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. 1-8 BE IT RESOLVED by the Lino Lakes Economic Development Authority as follows: Section 1. Recitals. 1.01. The City Council of the City of Lino Lakes (the "City") established Development District No. 1 ("the Development District") on January 26, 1987. 1.02. The City established the Development District in order to promote development within areas of the city which have not developed solely through private efforts in a manner consistent with their prominence. 1.03. The City established the Lino Lakes Economic Development Authority (the "Authority") in 1990 and conferred upon it responsibility for economic development within Lino Lakes. 1.04. In the past the Development District Program (the "Program") has been modified to assist improvements within the Development District pursuant to Minnesota Statutes, sections 469.174 through 469.179 (the "TIF Act") and sections 469.124 through 469.134 (the "City Development District Act"). 1.05. In response to a development proposal, the Authority has authorized the preparation of a modification of the Program for Development District No. 1 and drafting a Tax Increment Financing Plan (the "TIF Plan") for Tax Increment Financing District No. 1-8 (the "TIF District"), which are contained in a document entitled "Modified Development District Program, Development District No. 1 and Tax Increment Financing Plan, Tax Increment Financing District No. 1-8," dated April 28, 1997 and on file with the Authority. Section 2. Authority Approval. 2.01. The Authority finds that the objectives of the Authority and the City of encouraging development and redevelopment within the Development District will be advanced by adoption of the modified Program and the Plan. 2.02. The modified Program and the Plan are hereby adopted by the Authority subject to a finding by the planning and zoning commission that the modified Program is consistent with the City's comprehensive plan. Section 3. Further Proceedings. 3.01. It is noted that copies of the modified Program and the Plan have been transmitted to the boards of Independent School District No. 12 and Independent School District No. 831 and the board of commissioners of Anoka County for review and comment and that said public bodies have been notified of the hearing to be held on the modified Program and Plan by the City. 3.02. The Authority requests that the City hold a public hearing on the modified Program and the Plan pursuant to Minnesota Statutes, section 469.175 as soon hereafter as is practicable and recommends that the modified Program and Plan be approved by the City. 3.03. Upon approval of the modified Program and the Plan by the City, the Authority's executive director is authorized and directed to file a copy of the modified Program and the Plan with the Minnesota state auditor. The executive director is also authorized and directed to contact the Anoka County auditor and request that the original tax capacities of the parcels within TIF District No. 1-8 be certified to the Authority.. Adopted by the Lino Lakes Economic Development Authority, Lino Lakes, Minnesota this day of , 1997. John L. Landers, President ATTEST: Randall Schumacher, Executive Director The motion for the adoption of the foregoing resolution was duly seconded by member and upon vote being taken thereon, the following voted in favor thereof: and the following voted against same: Whereupon said resolution was declared duly passed and adopted. STA DATE: TOPIC: A ITEM 4 INATOR: Brian Wessel 4/28/97 Consideration of the Contract for Private Development between Lino Lakes EDA and Fairview Health Services Inc. BACKGROUND: A development contract between the EDA and Fairview outlines the conditions for pudic assistance towards assessments and site preparation In tile' eement the EDA will remove the special assessments of $56,506.64 on the property Fairview is purchasing in the Village, and will reimburse $8,000 in administrative fees when the Certificate of Occupancy is issued. The EDA will agree to pay $65,493.36 in site preparation costs on a pay-as-you-go basis, for a total of $130,000 in TIF assistance. This TIF assistance amounts to 12% of the total project cost, with a complete payback within four years. OPTIONS: 1. Approve the contract for private development be Fairview Health Services, Inc. 2. Return to staff for further consideration RECOMMENDATION: Option 1 peen Lino Lakes EDA and STAF DATE: TOPIC: AEA ITEM 5 �INATOR: Brian Wessel 44128/97 Consideration of a proposed sale of Blue Heron Development Corporation property to Lakeview Development Inc. BACKGROUND: Blue Heron Development Corporation entered into a development agreement with the Lino Lakes EDA on July 14, 1995 to build a 20,000-square foot facility in t Apollo Business Center for lease to light industrial users. The company built in 1996 and has a temporary Certificate of Completion but does not have a final Certificate of Completion because landscaping was not completed. The owner has entered into a purchase agreement with Bill and Jan Dubats of Lakeview Development Inc. The EDA's development agreement with Blue Heron states that the EDA must approve a transfer of title if a Certificate of Completion for the minimum improvements has not been issued. Mr. Dubats has requested approval by the EDA to transfer title. He plans to close on the property on or about May 30, 1997. The title company will hold $15,000 in escrow to ensure completion of the landscaping. Mr. Dubats has agreed to complete the minimum improvements within 90 days of the closing, and has also indicated he plans to improve the color scheme of the building and complete the landscaping. OPTIONS: 1. Approve the transfer of title from Blue Heron Development Corporation to Lakeview Development Inc. of Minnesota 2. Return to staff for further consideration RECOMMENDATION.: Option 1 STAFF ORIGINATOR: DATE: TOPIC: BACKGROUND: ENDA ITEM 6 Brian Wessel 4/28/97 Resolution No. 97-09 adopting a modified Tax Increment Financing Plan for TIF District No. 3-1 (Clearwater Creek Development Center) The EDA authorized preparation of the modification of TIF District 3-1 on March 24. This modification was in response to a development proposal by GNW Machine, Inc. to construct a 40,664-square foot office/manufacturing facility on 4.2 acres in the Clearwater Creek Development Center. Copies of the plan were sent to Anoka County and White Bear School District for review. This resolution states that the EDA finds the objectives for encouraging development to be met with the modification of the plan. OPTIONS: 1. Adopt Resolution No. 97-09 for the modification of the Tax Increment Financing Plan for TIF District No. 3-1 2. Return to staff for further consideration RECOMMENDATION: Option 1 Member introduced the following resolution and moved its adoption: LINO LAKES ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. 97-09 RESOLUTION ADOPTING MODIFIED TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. 3-1 BE IT RESOLVED by the Lino Lakes Economic Development Authority as follows: Section 1. Recitals. 1.01. The City Council of the City of Lino Lakes (the "City") established the Lino Lakes Economic Development Authority (the "Authority") in 1990 and conferred upon it responsibility for economic development within Lino Lakes. 1.02. The City adopted a tax increment financing plan (the "Plan") for Tax Increment Financing District No. 3-1 on June 29, 1995. 1.03. In response to a development proposal from Northern Development LLC (GNW Machine) the Authority and the City have authorized the preparation of a modified Plan which is contained in a document entitled "Modified Tax Increment Financing Plan, Tax Increment Financing District No. 3-1," dated April 28, 1997 and on file with the Authority. Section 2. Authority Approval. 2.01. The Authority finds that the objectives of the Authority and the City of encouraging development and redevelopment within Tax Increment Financing District No. 3-1 will be advanced by adoption of the modified Plan. 2.02. The modified Plan is hereby adopted by the Authority. Section 3. Further Proceedings. 3.01. It is noted that copies of the modified Plan have been transmitted to the board of Independent School District No. 624 and the board of commissioners of Anoka County for review and comment and that said public bodies have been notified of the hearing to be held on the modified Plan by the City. 3.02. The Authority requests that the City hold a public hearing on the modified Plan pursuant to Minnesota Statutes, section 469.175 as soon hereafter as is practicable and recommends that the modified Plan be approved by the City. 3.03. Upon approval of the modified Plan by the City, the Authority's executive director is authorized and directed to file a copy of the modified Plan with the Minnesota state auditor. The executive director is also authorized and directed to contact the Anoka County auditor and request that the tax capacities of the parcels added to TIF District No. 3-1 be reflected in the original tax capacity of the District. this Adopted by the Lino Lakes Economic Development Authority, Lino Lakes, Minnesota day of , 1997. John L. Landers, President ATTEST: Randall Schumacher, Executive Director The motion for the adoption of the foregoing resolution was duly seconded by member and upon vote being taken thereon, the following voted in favor thereof: and the following voted against same: Whereupon said resolution was declared duly passed and adopted.