08/10/2011 P&Z Packet - Laserfiche WebLink

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• • • STAFF ORIGINATOR: P & Z MEETING DATE: TOPIC: BACKGROUND AGENDA ITEM V -A. Mary Divine August 10, 2011 CONSIDERATION OF a Resolution Finding that a Modified Development Program for Development District No. 1 and the Modified Tax Increment Financing Plan for Tax Increment Financing District No. 1 -10 is Consistent with the Plans for Development of the City of Lino Lakes After several years of planning, in 2004, the City of Lino Lakes and its Economic Development Authority (EDA) began an effort to redevelop a 40 -acre site at the intersection of County Road 23 and Interstate 35W known as Legacy at Woods Edge. The City's goal was to redevelop a sandblasting plant and truck storage facility for mixed commercial and a diversity of housing uses. To help make the redevelopment possible, the City and its EDA designated a portion of the Property as Tax Increment Financing District No. 1 -11. The City and EDA also entered into a development contract with a private developer, providing for the long -term build -out of various uses on the Property. The City and EDA subsequently provided financing in the form of GO Bonds and Tax Increment Bonds. Impact of Recession The City completed the infrastructure and interchange improvements, and a portion of the property was developed for various uses: a hotel (later converted to assisted living), a 60 -unit affordable rental housing project, and commercial leasable space). But development stalled in the face of the severe recession. The remaining 22 acres of the property were foreclosed by the developer's lender. After exhausting efforts to find new users or developers, the lender abandoned the foreclosed property, and it was tax - forfeited in the summer of 2010. The result is that the City has outstanding bonds secured by either special assessments or tax increments, in the aggregate amount of $7,840,000, and limited revenues to pay those obligations. Special Legislation To mitigate the impact of the tax forfeiture of the undeveloped property, the City requested special legislation to extend of the duration of Tax Increment Financing District No. 1 -10 ( "TIF District No. 1 -10 "). This district is located along Lake Drive (County Road 23) in Centennial School District. It is an economic development district that would be required to be decertified at the end of 2013 under general law. Two of the parcels in Lakes Industrial Park are developed.