04-11-2016 EDA Packet - Laserfiche WebLink

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LINO LAKES ECONOMIC DEVELOPMENT AUTHORITY AGENDA ITEM 3A STAFF ORIGINATOR: Michael Grochala MEETING DATE: April 11, 2016 TOPIC: i. Consider Resolution No. 16-01, Designating Building as Structurally Substandard, 49 Club ii. Consider Resolution No. 16-02, Approving Preliminary Development Agreement with DM Land, LLC VOTE REQUIRED: 3/5 BACKGROUND The 49 Club, located at the corner of Hodgson Road and County Road J, has been vacant since approximately 2003. The site has become a blighted location with illegal dumping and vandalism taking place on a regular basis. The city has received numerous complaints regarding the property. The site has been the topic, along with the neighboring 17 acre Jensen property, of several development proposals. However, none have advanced past the concept phase due to a number of complicating factors including the need for public improvements, multiple property owners, and council concern over the intensity of prior commercial development proposals. In March of 2015 LHB Corporation was retained to determine the eligibility of the property for TIF purposes and to document the condition of the building. As noted in the report the buildings are structurally substandard to a degree requiring substantial renovation or clearance. Staff has been working with the owner of the property regarding potential demolition of the buildings either as a City project or by the owner. The owner is proposing to remove both the principal structure and accessory garage with their own contractor. Staff is very interested in this project as a means to clean up the site, eliminate the blight and assist redevelopment efforts. The use of Tax Increment Financing (TIF) has previously been discussed to help offset utility, road or land assemblage costs to facility redevelopment of the corner. However, removal of the building has the potential to eliminate one of the financial tools available to assist with redevelopment. In order to establish a TIF District after demolition, the request for certification of the TIF District must be filed with the County within three years of the parcel being occupied by a substandard building. An actual project would need to occur within 4 years of district certification or the site would be dropped from the district and no longer eligible for TIF.