07/23/2001 Council Minutes - Laserfiche WebLink

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COUNCIL MINUTES JULY 23, 2001 City Council will be considering several actions tonight in response to a request to provide financial assistance for the construction of a Target Superstore and Kohl's Department Store on the shopping center site on Lake Drive and 35W. 1. The first action under consideration is the adoption of a Business Subsidy Policy. Minnesota Statutes require that any local public entity that has the power to grant business subsidies must adopt a policy that includes criteria to be considered when evaluating a subsidy request. A determination must be made that the subsidy meets a public purpose other than increasing tax base. Those public purposes can include the potential for growth and spin-off development, whether the project includes special design or amenities beyond that required by the zoning ordinance, or whether it provides needed services within the City. If a project results in the creation of jobs, a business receiving a subsidy will need to establish how many jobs it will create and at what wag „! this policy proposed will be at 110% of the tonight, the City establishes that those guaranteed j federal minimum wage requirements, plus benef A public hearing is required before adopt' 2. The second action to be considered is on of a Tax Abatement Policy for the purpose of providing financial ass to ac . mplish economic development objectives. Tax abatement is a t that available to local public jurisdictions (the city, county and school dis na' es them to capture all or a portion of taxes on a parcel to assist in devel. wit n the city. Cities, counties an abatement. Tax no longer th the total . u ount o City's curr disis can each choose whether to participate in a tax cel of land can be abated for no longer than 10 years, or for o (2) or fewer jurisdictions participate. In any given year, erty taxes abated may not exceed the greater of 5% of the $100,000. The policy w establish the City's position relating the use of abatement, with objectives including development of the Town Center, retaining or increasing local jobs, enhancing the tax base, and affordable housing. 3. The third action to be considered is granting a tax abatement to the proposed Target/Kohl's project. The project is expected to generate approximately $24 million in market value when complete, and approximately $108,000 per year in City taxes. Anoka County and Forest Lake School District have declined to participate in this abatement, therefore the City can abate taxes on the parcel for 15 years. Granting an abatement requires a public hearing. 4