08/27/2001 Council Minutes - Laserfiche WebLink

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COUNCIL MINUTES AUGUST 27, 2001 Council Member O'Donnell moved to adopt Resolution No. 01— 86, as presented. Council Member Reinert seconded the motion. Motion carried unanimously. Resolution No. 01— 86 can be found in the City Clerk's office. Continuation of Public Hearing on Granting a Tax Abatement and Granting a Business Subsidy; Resolution No. 01-106, Approving a Tax Abatement and Business Subsidy Agreement with Target and Kohl's (Lino Lakes Marketplace Request for Tax Abatement (3/5 Vote Required); Consider Resolution No. 01-127, Approving a Business Subsidy to Target and Kohl's, Al Rolek — Finance Director Rolek advised a public hearing was opened on July 23 and has been continued regarding the request for tax abatement for the Marketplace project on 35W/Lake Drive. According to the Minnesota Business Subsidy law, a public hearing must also be held before granting a subsidy that exceeds $100,000. This public hearing is to take public comment on these issues. The Marketplace, which includes a Target Superstore, a Kohl's Department Store and additional smaller retail and restaurant space, is estimated to be a $24 million project s . t will generate substantial commercial tax base and provide needed services for Lino w. 'dents. The project developers have requested financial assistance to . '' yet . d �hl's portion of the project. The proposal before the City Council is as follow 1. A $491,000 net present value tax a provides a pay-as-you-go subsidy additional taxes generated paid, with 7% interest, u years, whichever c 2. The project' 3. Fifty pe waived 4. get and Kohl's. Tax abatement sing to the project the City portion of the opment. This financial assistance will be ou°" is paid in full, or for a maximum of six (6) rface water management fee will be waived. for an amount of $74,312, of the SAC/WAC area charge will be The City will have the ability to recover the waived fees with tax abatement dollars. The City has established criteria to evaluate the granting of a business subsidy. In addition to increasing the tax base, a project receiving a subsidy should promote one or more of the following: 1. Compliance with Comprehensive or Other Plans. 2. Development of Marginal Property. 3. Upgraded Design and/or Other Amenities. 4. Utilization of Existing Infrastructure Investment. 5. Direct Monetary Return on Public Investment 6. Leveraged Funds. 7. Spin Off Development. 8. Growth Potential