09/14/1998 Council Packet - Laserfiche WebLink

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AGENDA ITEM 3 STAFF ORIGINATOR Brian Wessel DATE: 9/14/98 TOPIC: Consideration of Resolution No 98-04 Authorizing the Preparation of a Redevelopment Project Plan BACKGROUND: Redevelopment Authorities, such as the Lino Lakes EDA, are authorized by state law to establish redevelopment projects in areas of the community which have not developed up to their potential solely through private enterprise. A Redevelopment Project Plan is prepared whit* identifies the geographic boundaries of the project and describes the goals and objectives the Authority seeks to achieve in that area. The Plan also identifies specific redevelopment projects which the authority intends to assist and the method of financing those projects. The most common financing tool, and the one most familiar in Lino Lakes, is tax increment financing. There are other forms of assistance, however, which must be employed when TIF is not available. The method being proposed in this instance functions much like TIF, but involves only the city's portion of taxes generated by new development. Tim Baylor of JADT Development Group has been working with his development team for the past year to assemble land and produce a conceptual plan for the shopping center in the Town Center. He is requesting economic assistance for the shopping center development. According to the county assessor, a fully developed Phase 1 as illustrated in the concept plan should generate net property taxes of approximately $335,723 per year. Net city taxes generated from a fully developed Phase 1 would amount to approximately $69,600 per year based on 1998 tax rates. Staff recommends the EDA authorize establishment of a Redevelopment Project to include all land within the Town Center boundaries. This would allow the EDA the opportunity to provide assistance where appropriate to control the type and quality of development the city wants in its Town Center.