05/02/2011 Council Packet - Laserfiche WebLink

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Market Value The total market value of all commercial and industrial properties in Lino Lakes is $195,601,400. An estimated City portion of taxes on that value amounts to $1,645,000. To determine if the properties in the inventory are a problem that could erode the City's commercial /industrial tax base, it is helpful to look at what impact these properties have. The total market value of all land and buildings that were inventoried on Lake Drive and Hodgson Road is $5,558,033. Total annual city taxes on these properties are approximately $65,000. Staff performed a subjective assessment of buildings that are either currently vacant or are at a high risk of becoming vacant in the future. At worst case scenario, if all the higher risk properties were to cease paying taxes, the City portion of taxes lost would amount to approximately $19,000 annually. This is approximately 1.2% of the City portion of all Commercial and Industrial taxes in the City (Appendix D). To date, one vacant property in disrepair is owned by a bank, although taxes are still being paid. Four properties are delinquent on taxes (two of those are vacant and in disrepair). These buildings are in conditions that detract from the surrounding area and discourage new business. Actions EDAC has identified courses of action the City could take in regards to nonconforming uses and properties that are underserviced, zoned, guided or used as commercial /industrial and don't have immediate access to infrastructure: Action 1: Make no changes to the City's ordinances and allow market forces to determine the redevelopment of nonconforming properties. Action 2: Expedite the redevelopment of nonconforming properties by providing funding sources for the acquisition of priority properties as they become available; extend utilities to developable sites; provide business loans for special assessments or rehabilitation. This requires the City to determine it wants to make a financial commitment to redevelopment and how those funds can be made available. The City currently has at its disposal, with policies in place for its use: • Tax Increment Financing: As development occurs, the additional taxes generated from new development are used to assist the developer with infrastructure, land acquisition and other eligible costs • Tax Abatement: Much like Tax Increment, but only the City portion of taxes are available to assist with Redevelopment 5 • •