08-23-2021 Council Minutes (3) - Laserfiche WebLink

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CITY COUNCIL WORK SESSION APPROVED 1 CITY OF LINO LAKES 2 MINUTES 3 4 DATE August 23, 2021 5 TIME STARTED 5*58 p.m. 6 TIME ENDED 6:26 p.m. 7 MEMBERS PRESENT Councilmember Stoesz, Lyden, 8 Cavegn and Mayor Rafferty 9 MEMBERS ABSENT Councilmember Ruhland to Staff members present: City Administrator Sarah Cotton; Finance Director Hannah 11 Lynch; Community Development Director Michael Grochala; City Engineer Diane 12 Hankee; Director of Public Safety John Swenson; City Clerk Julie Bartell 13 14 1. (5:00 p.m.) Closed Session —Pending litigation regarding St. Clair Estates 15 (see separate minutes) 16 2. Lyngblomsten Development Update —Community Development Director 17 Grochala updated the council on the status of the development, including assistance that 18 was planned from the City. The development contract needs to be updated since it is two 19 years old and while that is more of an administrative process, the developer is now 20 requesting additional assistance in the amount of $500,000. Staff has looked at the 21 available budget in the tax increment district and feels the City can go up to $400,000 22 without having to modify the district. Anything over that amount would necessitate a 23 modification to the district as it is currently established and a process that would extend a 24 couple of months. Staff has provided the suggestion of $400,000 to the developer and 25 they are still asking if the City would be able to provide the remainder of the requesting 26 assistance ($100,000) in any other way. Mr. Grochala noted that this will be coming to 27 the council (Economic Development Authority) as soon as the council deems possible. 28 29 Councilmember Cavegn asked when the project was supposed to be completed and staff 3o said they were shooting for fall of 2019 for the start, however, the pandemic shut down 31 industry. Councilmember Cavegn asked if there is an additional funding possibility 32 they'd recommend. Mr. Grochala noted that the $400,000 is available through TIF but 33 above that he would probably have to look at roadway funding in conjunction with 34 improvements that will be occurring in the area. 35 36 Councilmember Stoesz remarked that there was discussion about the payback period and 37 wonders where that discussion stands. Community Development Director Grochala 38 updated the council on that schedule. Councilmember Stoesz asked if extending the TIF 39 timeframe would provide the additional funds and Mr. Grochala said yes, but that would 40 push the project ahead another year because an amendment process would be required. 41 42 Councilmember Lyden asked how much assistance was planned and Mr. Grochala said 43 $3.6 million; they are requesting an additional $500,000. When asked about the total