Laserfiche WebLink
<br />SWS – Item 1 <br />SPECIAL WORK SESSION STAFF REPORT <br />Special Work Session Item No. 1 <br /> <br />Date: June 24, 2019 <br /> <br />To: City Council <br /> <br />From: Michael Grochala, Community Development Director <br /> <br />Re: Lyngblomsten – Draft TIF Plan and Contract for Private Development <br /> <br />Background <br /> <br />At the May 6, 2019 City Council work session staff received direction to prepare the tax <br />increment financing plan, associated contract for private development and schedule the <br />required hearings. Based on the District Framework, discussed at the meeting, the <br />reimbursable costs will not exceed $3,600,000. Council requested that further evaluation <br />include methods to reduce the duration of the district to the extent possible. <br /> <br />Staff has been working with Baker Tilly, city financial consultant, and Kennedy and <br />Graven, city development counsel, to draft the plan and contract that stipulates the <br />minimum improvements, developer requirements and potential reductions in increment <br />and/or city reimbursement. <br /> <br />Mikaela Huot of Baker Tilly has provided an updated memo regarding the proposed use <br />of tax increment financing and key elements of the contract. <br /> <br />Also enclosed is a memo from Julie Eddington of Kennedy and Graven regarding eligible <br />expenditures and the recommended structure of TIF Plan and contract to meet the needs <br />of the project. <br /> <br />Ms. Huot and Ms. Eddington will be present at the meeting review the memos and <br />recommendations. The Lyngblomsten development team is still reviewing the <br />documents and there may be some minor revisions prior to final adoption. <br /> <br />Staff will be discussing the proposal with EDAC on June 27, 2019. The public hearing, <br />and consideration of the TIF plan is scheduled for July 8, 2019. The EDA will also hold <br />a meeting on July 8, 2019 for both the TIF Plan and the Contract for Private <br />Development. <br /> <br />This will allow for discussion on the 24th. A follow up review and discussion on any <br />modifications or changes at the July 1, 2019 work session prior to EDA and Council <br />consideration on the 8th. <br /> <br />Requested Council Direction <br /> <br />Discussion and comment only. <br />