08-11-1994 EDA Minutes - Laserfiche WebLink

Home Search

explained that UDOR began negotiating with the City in the fall of 1993 regarding the purchase of a site in the Apollo Business Park for its distribution center. UDOR U.S.A. committed to a site in May of 1994. Since then more than 60 transactions, including 11 public meetings, have taken place to put the deal together. Mr. Wessel said he appreciated the responsiveness of the Planning and Zoning Board and the City Council to help accomplish the purchase of City property by UDOR. The City is now well prepared to bring the project to a final resolution. Mr. Wessel explained that the City sold UDOR the property as full market value, and that the assessments to UDOR were to be paid with Tax Increment Financing funds, not to exceed 12% of the total project costs, in accordance with the policy that had been set regarding city -owned property in the business park. The amount of TIF assistance totalled $41,250 in an upfront commitment, i.e., the assessments would be paid before the project was started. Mr. Wessel explained that the Centennial School District had been notified and Anoka County had approved the plan, as required by law. Mr. Batty addressed the EDA members, and explained this was the sixth TIF District created within the City's Development District. He noted that because it was created after 1990, the increment cannot be pooled. UDOR would generate approximately $12,000 in increment annually, and the Development District would recover its expenditures in year four of the nine-year district. The City has a -choice to either spend the rest of the increment or decertify the district. Mr. Batty explained that the EDA is the authority for the Economic Development District, and it is necessary for the EDA to adopt a resolution. He added that the TIF District was comprised of just the UDOR parcel. The City's policy decision was to create a district on a parcel by parcel basis for development of property in the park. This increases the cost and time involved, but that way the clock did not start running on the district until development was in place. EDA Member Kuether moved to adopt the resolution approving the financing plan for TIF District 1-6. EDA Member Elliott seconded the motion. The motion carried unanimously. AUTHORIZATION TO EXECUTE THE PURCHASE AGREEMENT AND DEVELOPMENT AGREEMENT WITH UDOR U.S.A. Mr. Batty explained that the purchase agreement called for the developer to buy the one -acre property for $39,000 and build a 6,000 square foot facility. The agreement also states UDOR agrees to pay the taxes and occupy the property for the use that is permitted. Mr. Batty noted that after 1990, uses of properties within a TIF District are limited. The purchase agreement also states that the EDA, through the city, will pay the $32,500 assessment cost and the $5,000 application fee. Mr. Batty asked that the EDA consider the purchase agreement and the development