07-06-26 - City Council Work Session Minutes

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4. PRELIMINARY DISCUSSION: DATA CENTERS IN COMMERCIAL AND INDUSTRIAL DISTRICTS The Community Development Director stated that in accordance with the City's policies a request was made and seconded to discuss Data Centers in Commercial and Industrial Districts. He asked if there was Council consensus to pursue this topic further. Councilmember Rennaker stated that he requested that this topic be discussed from a broad viewpoint. Councilmember Nelson stated that she also supported reviewing the zoning code and the City's legal authority to regulate data centers. She stated that to clarify for the residents, the City has not been approached by any companies seeking to build a data center. Council Consensus It was the consensus of the City Council to direct staff to prepare comparative information regarding area cities regulations for data centers and to review Lino Lakes current zoning and land use regulations related to data centers at a future meeting. 5. TAX-EXEMPT FINANCING FOR LYNGBLOMSTEN The Community Development Director reported that Minnesota Statutes Sections 469.152 to 469.1651 (the "Industrial Development Act") and Chapter 462C (the "Housing" act) authorize cities to issuance revenue bonds to finance eligible private development projects. These tools may be used for private activities that provide community benefit such as employment opportunities or affordable or elderly housing. The City adopted guidelines for private activity tax exempt financing in 2005 and amended them in 2019. The policy requires reimbursement of City's cost and establishes an administrative fee equal to 1 % of the bond amount. Part II, Section 9 of the policy allows the City Council to reduce the administrative fee when the borrower's request is related to a partnership with the City and/or provides a broad public service benefit. The Community Development Director stated that because the City has already issued non -bank qualified bonds in 2026, staff has expressed interest in serving as the issuer for Lyngblomsten's refinancing. The current issuer is charging a flat fee of $50,000, and staff recommends a fee closer to that amount, reflecting both the City's partnership with Lyngblomsten and the provision of senior housing within the community. Council Consensus It was the consensus of the City Council to direct staff to: 1. Authorize a reduced administrative fee for Lyngblomsten's tax-exempt financing; and 2. Proceed with the procedural steps necessary to provide tax-exempt financing