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