02/07/2011 Council Packet - Laserfiche WebLink

Home Search

WS — Item 8 WORK SESSION STAFF REPORT Work Session Item 8 Date: February 7, 2011 To: City Council From: Mary Divine Re: Legacy at Woods Edge Proposed Special Legislation Background To mitigate the impact of foreclosure and tax forfeiture of the undeveloped Legacy at Woods Edge properties, the City proposes to extend the duration of Tax Increment Financing District No. 1 -10 ( "TIF District No. 1 -10 "). This district is located along Lake Drive near the Legacy at Woods Edge development, and is an economic development district that would be required to be decertified at the end of 2013 under general law. While TIF District No. 1 -10 was established primarily to help develop manufacturing and warehouse improvements in that district that include Distribution Alternatives and Schwann's, those improvements were part of the impetus for the County Road 23 /Interstate 35W Interchange (along with the new development in Legacy at Woods Edge). Under existing law, no more than 20% of the increment from that district may be used for such "pooling" purposes outside the boundaries of the district. As background for Councilmembers who were not on the City Council at the time, in 2004 the Lino Lakes Economic Development Authority began an effort to redevelop the 40 -acre site. At the time, a large portion of the site was occupied by a sandblasting operation and several structurally substandard buildings. The City's goal was to redevelop the site for mixed commercial, civic, recreation and housing. To help make the redevelopment possible, the EDA designated a portion of the Property as Tax Increment Financing District No. 1 -11. The EDA also entered into a development contract with a private developer, providing for the long -term build -out of various uses on the Property.