09-26-2022 City Council Packet - Laserfiche WebLink

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CITY COUNCIL WORK SESSION DRAFT 1 CITY OF LINO LAKES 2 MINUTES 3 4 DATE : September 6, 2022 5 TIME STARTED : 6:00 p.m. 6 TIME ENDED : 9:45 p.m. 7 MEMBERS PRESENT : Councilmember Stoesz, Lyden, Ruhland, 8 Cavegn and Mayor Rafferty 9 MEMBERS ABSENT : none 10 Staff members present: City Administrator Sarah Cotton; Finance Director Hannah 11 Lynch; Community Development Director Michael Grochala; City Planner Katie Larsen; 12 Director of Public Safety John Swenson; Public Services Director Rick DeGardner; City 13 Clerk Julie Bartell 14 1. Ryan Companies, Clearwater Creek Business Park TIF - Community 15 Development Director Grochala introduced M i kad a H not of Baker Ti I I y the City's 16 finance advisors. Mr. Grochala noted the proposed project by Ryan Companies, pointing 17 to a displayed map and indicating two parcels, north and south. The focus this evening 18 will be on the north parcel and development of the office park/distribution facility. 19 20 Ms. Huot reviewed a presentation (on file) that included information on the following: 21 22 - Fundamentals of Tax Increment Financing - basic model; looking at economic 23 development district which has a maximum of nine years; 24 - Typical Eligible Costs - specifics of public improvement costs noted; 25 - Common Methods for Financing Costs - reimbursement (in this case) or upfront; 26 - Considerations of Creating a Tax Increment District — a portion of the expenditures 27 being requested are outside the district but within a larger district so can be included; 28 - Tax Increment Financing Plan — statutory requirements; 29 - Public Hearing and Certification - requirement; 30 - Review of Current Tax Increment Request - $5.9 million requested to assist with 31 financing extraordinary costs; pay-as-you-go financing; 32 - Summary of Projected Tax Increment Revenues; 33 - Proposed Industrial Development; 34 - Recommended TIF amount of $2.9 million. 35 36 Councilmember Stoesz asked if the contents of the building are TIF eligible and Ms. 37 Huot noted that building construction costs are not eligible (nothing vertical is eligible). 38 39 Councilmember Lyden noted that Amazon is coming to Centerville and he wonders if 40 that involves TIF; staff indicated not. Mr. Lyden asked why this project should qualify. 41 Community Development Director Grochala explained that this project is denser with a 42 site that maximizes building construction. Mr. Lyden mentioned road work that is typical 43 and Mr. Grochala noted that the roadways planned are upsized from average. 44 1