06-24-2019 Council Special Work Session Minutes

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CITY COUNCIL WORK SESSION June 24, 2019 APPROVED 1 CITY OF LINO LAKES 2 MINUTES 3 4 DATE :June 24, 2019 s TIME STARTED 6:55 p.m. 6 TIME ENDED 7:40 p.m. 7 MEMBERS PRESENT :Council Member Rafferty, Maher, 8 Manthey, Stoesz and Mayor Reinert 9 MEMBERS ABSENT :None 10 1 ] Staff members present: Public Safety Director John Swenson; Community Development 12 Director Michael Grochala; Finance Director Sarah Cotton; Cite Clerk Julie Bartell 13 14 Lyngblomsten Financial Assistance Request —Attorney Julie Eddington, Kennedy and 15 Graven, and Mikeala Huot, BakerTilly Municipal Advisors, were present. 16 17 Community Development Director Grochala noted that the council has previously 18 discussed the figures involved in this tax increment financing proposal and he noted 19 where that discussion left off. Staff was directed to look at shortening the period of the 20 tax increment. He noted that Ms. Huot would walk through the proposed framework of 21 the plan and Ms. Eddington would review proposed contract details. 22 23 Ms. Huot reviewed a PowerPoint including information on: 24 - Financial Assistance requested for certain elements of the development (senior 25 care building and detached townhomes); 26 - Proposed Assistance (initial request has been reduced by 1.4 million and fee credit 27 of $300,000 —net assistance $3.6 million -over 8.5 year period); 28 - Reduction of assistance based on developer need, fee credit through city policy, 29 expanded boundaries, use of pooled tax increment funds; 30 - Ways to reduce terms of assistance further (increased taxable value, inflation, 3 ] construction savings, additional fee credits); 32 - Draft tax increment financing plan (highlighted public purpose, qualification, 33 term); 34 35 Ms. Huot and Ms. Eddington responded to Council Member Maher's question about how 36 areas are included and excluded. It is based on project elements and to be certain that 37 the proposed plan meets legal requirements, staff has received verification from. the 38 Office of State Auditor about the areas included in this nlan. 39 40 - Tenn of the district; 41 - Estimated budget of revenues and expenditures; 42 - Contract for private development; 43 - Next steps.