09-13-2021 Council Packet - Laserfiche WebLink

Home Search

CITY COUNCIL WORK SESSION DRAFT 1 CITY OF LINO LAKES 1 MINUTES 2 3 DATE : August 23, 2021 4 TIME STARTED : 5:58 p.m. 5 TIME ENDED : 6:26 p.m. 6 MEMBERS PRESENT : Councilmember Stoesz, Lyden, 7 Cavegn and Mayor Rafferty 8 MEMBERS ABSENT : Councilmember Ruhland 9 Staff members present: City Administrator Sarah Cotton; Finance Director Hannah 10 Lynch; Community Development Director Michael Grochala; City Engineer Diane 11 Hankee; Director of Public Safety John Swenson; City Clerk Julie Bartell 12 13 1. (5:00 p.m.) Closed Session – Pending litigation regarding St. Clair Estates 14 (see separate minutes) 15 2. Lyngblomsten Development Update – Community Development Director 16 Grochala updated the council on the status of the development, including assistance that 17 was planned from the City. The development contract needs to be updated since it is two 18 years old and while that is more of an administrative process, the developer is now 19 requesting additional assistance in the amount of $500,000. Staff has looked at the 20 available budget in the tax increment district and feels the City can go up to $400,000 21 without having to modify the district. Anything over that amount would necessitate a 22 modification to the district as it is currently established and a process that would extend a 23 couple of months. Staff has provided the suggestion of $400,000 to the developer and 24 they are still asking if the City would be able to provide the remainder of the requesting 25 assistance ($100,000) in any other way. Mr. Grochala noted that this will be coming to 26 the council (Economic Development Authority) as soon as the council deems possible. 27 28 Councilmember Cavegn asked when the project was supposed to be completed and staff 29 said they were shooting for fall of 2019 for the start, however, the pandemic shut down 30 industry. Councilmember Cavegn asked if there is an additional funding possibility 31 they’d recommend. Mr. Grochala noted that the $400,000 is available through TIF but 32 above that he would probably have to look at roadway funding in conjunction with 33 improvements that will be occurring in the area. 34 35 Councilmember Stoesz remarked that there was discussion about the payback period and 36 wonders where that discussion stands. Community Development Director Grochala 37 updated the council on that schedule. Councilmember Stoesz asked if extending the TIF 38 timeframe would provide the additional funds and Mr. Grochala said yes, but that would 39 push the project ahead another year because an amendment process would be required. 40 41 Councilmember Lyden asked how much assistance was planned and Mr. Grochala said 42 $3.6 million; they are requesting an additional $500,000. When asked about the total 43 valuation at the end, Mr. Grochala suggested $33 million for the building, with land $45 44