10-10-2022 EDA Packet - Laserfiche WebLink

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LINO LAKES ECONOMIC DEVELOPMENT AUTHORITY AGENDA ITEM 3A STAFF ORIGINATOR: Michael Grochala, Community Development Director MEETING DATE: October 10, 2022 TOPIC: Consider Resolution No. 22-02, Approving Tax Increment Financing Plan for District No. 1-14 VOTE REQUIRED: 3/5 BACKGROUND Ryan Companies, US, Inc., recently entered into a purchase agreement to acquire 33 acres north of Clearwater Creek, west of I-35E. Ryan is proposing construction of 3 buildings totaling approximately 451,000 square feet of manufacturing, office and warehouse space with an estimated market value of $31,000,000. The project, as proposed, addresses a number of City goals related to this area and will significantly reshape the SW quadrant of the Main Street and 35E intersection. The public benefits include: • Development of underutilized properties. • Expansion of City tax base. • Creation of new manufacturing, office and professional jobs. • Extension of public street improvements to serve the business park and surrounding uses. The developer has submitted an application for public assistance to offset infrastructure, and site development and construction costs related to the proposed buildings. The proposed public assistance would be provided in the form of Tax Increment Financing (TIF). The establishment of a Tax Increment Financing (TIF) District requires the preparation of a TIF plan and review by both the school district and county. To date, no comments have been received from Centennial School District or Anoka County. A public hearing must be held prior to City Council consideration to establish a district. Tax Increment Financing (TIF) Plan The TIF plan provides the framework for the use of tax increment for development purposes. The plan includes the statutory authorization, purpose and objectives of the district. The City/EDA are proposing to establish an Economic Development district. The maximum duration of an Economic Development district is 9 years – 8 years from the date of receipt of the first increment.