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CITY COUNCIL WORK SESSION SEPTEMBER 18, 2003 <br />APPROVED <br />1 <br />• 2 <br />3 CITY OF LINO LAKES <br />4 MINUTES <br />5 <br />6 DATE : September 18, 2003 <br />7 TIME STARTED : 5:39 p.m. <br />8 TIME ENDED : 9:25 p.m. <br />9 MEMBERS PRESENT : Mayor Bergeson and Councilmember <br />10 Carlson, Dahl (left at 8:00 p.m.), and <br />11 O'Donnell <br />12 MEMBERS ABSENT : Reinert (arrived at 9:05 p.m.) <br />13 <br />14 Staff members present: Director of Administration, Dan Tesch; Community Development <br />15 Director, Michael Grochala; City Engineer, Jim Studenski; City Planner, Jeff Smyser; <br />16 and Economic Development Assistant, Mary Alice Divine <br />17 <br />18 CITIZEN OF YEAR AWARD <br />19 <br />20 Mayor Bergeson stated the City has received two applications and recommends they <br />21 award those two people the "Citizen of the Year" awards. He directed staff to schedule <br />22 the ceremony for the first meeting in October. <br />23 <br />24 MARSHAN LAKES INDUSTRIAL PARK (MICHAEL GROCHALA AND MARY <br />• 25 DIVINE) <br />26 <br />27 Tax Increment Financing (TIF) Request - Economic Development Assistant Divine stated <br />28 Paul Steimen of Springsted is representing the City in this matter and Pat Perstring and <br />29 Rob Davidson are representing Distribution Alternatives. <br />30 <br />31 Mr. Steimen stated TIF District 1-10 was created in August of 2003 and now Panattoni <br />32 Development is requesting to use TIF for the Distribution Alternatives project. The <br />33 submitted request is $1,00,021,000, which is eighty percent of what would be generated <br />34 for that district over eight years. <br />35 <br />36 Mr. Steimen stated the City would like to put an alternative proposal on the table. This <br />37 proposal would provide five years of TIF for a total subsidy of $638,000. The subsidy <br />38 will go back to the company directly as income and will offset the lease rate, for a <br />39 projected 10 -year lease. <br />40 <br />41 He stated with the $1,00,021,000 subsidy, it would be $5.84 per square foot for the gross <br />42 lease rate for a 10 -year lease. With the alternative proposal, it would be $5.98 per square <br />43 foot for the gross lease rate for a 10 -year lease. He stated the developer's original request, <br />44 using different assumptions, showed a target lease rate of $5.88 per square foot. An <br />45 additional $.10 per square foot over 10 years equals $265,000. The total project is $12 <br />46 million and this would be two percent of that total. When this was discussed previously, <br />47 this company was willing to do this project for $5.88 per square foot and the City is at <br />• 48 $5.98. The City needs to cap the number at a "not to exceed" number. <br />49 <br />