12-28-2015 EDA Minutes - Laserfiche WebLink

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EDA MINUTES December 28, 2015 DRAFT 1 CITY OF LINO LAKES ECONOMIC DEVELOPMENT AUTHORITY MINUTES DATE : December 28, 2015 TIME STARTED : 6:05 p.m. TIME ENDED : 6:30 p.m. MEMBERS PRESENT : EDA Members Stoesz, Kusterman, Rafferty, Roeser (Chair), and Mayor Reinert MEMBERS ABSENT : none STAFF PRESENT : City Administrator Jeff Karlson; Community Development Director Michael Grochala; City Attorney Joseph Langel; City Clerk Julie Bartell The meeting was called to order at 6:05 p.m. by President Roeser. CONSIDERATION OF THE MINUTES OF MAY 11, 2015 Economic Development Authority (EDA) Member Kusterman moved to approve the May 11, 2015 minutes. EDA Member Rafferty seconded the motion. Motion carried on a voice vote. CONSIDERATION OF RESOLUTION NO. 15-04, APPROVING THE PURCHASE AND SALE AGREEMENT WITH D.R. HORTON INC. , MINNESOTA, LEGACY AT WOODS EDGE PROPERTY. Community Development Director Grochala explained the proposed sale of a portion of the Legacy at Woods Edge property, indicating the location of the property on a map. The developer is proposing to construct single family townhomes on the property and that is consistent with city master plans for the area. Since the property originally went into foreclosure and the city was eventually able to gain title for the property to its EDA, the number one goal has been to pay off the debt service related to improvements to the property. It appears that the proposed sale proceeds along with tax increment generated from developing the site would be adequate to cover remaining debt service. The developer, D.R. Horton, is offering to purchase the property for $1 million. Mr. Grochala briefly reviewed the terms of the proposed Purchase and Sale Agreement, including conditions, opt out provisions and government appeal consideration. He noted that staff is still in the process of updating the formal agreement but the major terms are clear and he is requesting EDA approval of the resolution. City Attorney Langel reviewed terms of the agreement in more detail. EDA Member Reinert said he is interested in seeing the city have the first right of refusal if nothing happens with the development in a year; there could be land value changes in that period of time. The Vice President of Land, Minnesota Division, for D.R. Horton, addressed the EDA. He noted that the company is the number one home builder in the country, and have operated in Minnesota since 1994. They are well established. They are excited about the project proposed for Lino Lakes and want to move forward as soon as possible within the necessity of staying within a plan. He can promise that their plan will be thoughtful and thorough and conscious of necessary process. EDA President Roeser noted that he thinks it would be a good move for the city to get the property developed because it brings new residents to the city as well as additional tax base.