09/10/2001 Council Minutes - Laserfiche WebLink

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COUNCIL MINUTES SEPTEMBER 10, 2001 FINANCE DEPARTMENT REPORT, AL ROLEK Continuation of Public Hearing on Adoption of Business Subsidy Policy and Tax Abatement Policy; Granting a Tax Abatement and Granting a Business Subsidy, Al Rolek — City Attorney Hawkins advised at the Council meeting the rezoning on the Target project was denied. Upon investigation, it was determined that the rezoning did in fact pass with a simple majority. Therefore, action needs to be taken on the Business Subsidy Policy and Tax Abatement Policy. Council Member Carlson advised she received the letter from the City Attorney regarding this issue last Friday. On Thursday, she and Council Member Dahl had agreed to put this item back on the agenda for consideration, along with further discussion of the outstanding issues. Finance Director Rolek advised a public hearing was opened on July 23, continued to August 27 and was again continued regarding the request for tax abatement for the Marketplace project on 35W/Lake Drive. According to the Minnesota Business Subsidy law, a public hearin • ust also be held before granting a subsidy that exceeds $100,000. This public hearing is to t , .4. omment on these issues. The Marketplace, which includes a Target Superstore, a smaller retail and restaurant space, is estimated to be a substantial commercial tax base and provide need The use of Tax Abatement on this project generated by the new development and property. In this project, only the undeveloped property will co The project developer project. Prior to tonig period of six (6) years. maximum of six (6) ye D t Sore and additional ion ! eject that will generate a Lino Lakes residents. to capture the additional City taxes ack over a period of years to the users of the paid will be rebated; the original taxes on the cted by the City and used for general purposes. este financial assistance to the Target and Kohl's portion of the opers had requested a subsidy that consisted of $786,127 over a atement portion of that subsidy was $606,814, collectible over a The developers also requested a waiver of Surface Water Management Fees and a portion of SAC/WAC fees, in the amount of $179,312. These fees could be recovered by the City by using an additional two (2) years of abatement dollars, if the City Council should elect to do so. Based on City Council direction, further negotiations have resulted in a new staff recommendation based on the following terms: 1. An amount of tax abatement not to exceed $519,300, or a maximum term of five (5) years of abatement, whichever comes first. 2. A waiver of an estimated $105,000 in Surface Water Management Fees. 4