04-01-2019 Council Packet 2 - Laserfiche WebLink

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Springsted Inc. is in the process of reviewing the application and has prepared a summary of the review status. Mikaela Huot, of Springsted will be present at the City Council meeting to discuss the attached memorandum, dated March 29, 2019. As more fully discussed in the memorandum, Lyngblomsten has requested Tax Increment Financing assistance in the amount of $5.3 million. The request would be “pay as you go” financing as reimbursement of eligible costs over a term of 15 years. In the past is has been the practice of the city to limit the term/assistance to the increment generated over 5 to 6 years. As noted in the memorandum Springsted is still working through the process of the evaluating the proposal. The Springsted evaluation will be the basis for the City making an informed “but for” decision on the need for assistance. The 49/J master plan did contemplate the possible need for assistance to facilitate redevelopment of the area. The project, as proposed, does address a number of City goals related to this area including: • Demolition and consolidation of existing underutilized properties. • Redevelopment of corner with new commercial opportunities • Extension of public water and sanitary sewer areas currently without service. • Extension of trunk water main through development area shortening remaining looping needs for southwest area. • Creation of approximately 130 FTE jobs with average hourly wages of $22.50/hour. • Provision of variety of senior housing options not previously provided for in the City. • The applicant will still be subject to all city fees including building permits, trunk utility and park dedication requirements. • County road improvements. • The project would generate include additional taxable market value While the review is still underway staff believes it is important to check in at this point with the council on the following questions: 1) Is the City willing to provide assistance for the project, provided the need is demonstrated; and 2) Is there a maximum term the City Council is unwilling to exceed regardless of demonstrated need i.e., 5-6 years. Requested Council Direction Staff is requesting Council direction regarding the use of tax increment financing for the proposed Lyngblomsten project. Attachments 1. Springsted Memo, dated March 29 , 2019