10/12/2004 Council Minutes (2) - Laserfiche WebLink

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COUNCIL MINUTES October 12, 2004 APPROVED �40 stated they are getting $2.2 million for their property, but are giving back $2.7 million, and already 41 had $900,000 invested in the property, so she feels the City is losing money right from the start. She 242 indicated she supports the project overall, but is concerned about financing and cost. 243 244 Community Development Director Grochala noted the overall site plan has been approved, being 245 passed by Ordinance 04-04 in March of this year after going through the Environmental Board and 246 the Planning and Zoning Board. He indicated the property management company handling the rental 247 units will incorporate the City's requirements into their covenants. He stated as for rental licensing 248 there are some Staffing issues with that program, but if the Council directs Staff to look at such a 249 program they can pursue it. 250 251 Community Development Director Grochala advised the Staff has been notified they have moved into 252 the second round for the Metropolitan Council grant, and Staff is currently preparing additional 253 information. He noted, however, that the funding they have set up does not rely on that grant to be 254 successful. 255 256 Community Development Director Grochala further advised the $540,000 of Mn/Dot money is a 257 cooperative agreement, but it is a competitive process. He reiterated this project is not contingent on 258 receiving any Mn/Dot funding. He stated if Mn/Dot were doing Lake Drive, they do not know what 259 the Lino Lakes share would be, but there would be a share. He indicated the problem is that Lake 260 Drive is not on Mn/Dot's 20 -year plan, therefore they are trying to leverage dollars between 261 government agencies and get the most benefit. He stated this project is also providing infrastructure 262 to the YMCA, which has a direct impact to the community. He stressed that this is not a gift; it is a 063 collaborative effort with the developer to make this project work. He stated the developer is willing 64 to go out and buy the sandblasting site property to make the project work; something the City has not 265 been willing to do. 266 267 City Administrator Heitke asked for clarification if any tax dollars that residents are paying to the 268 City being given to this developer. Community Development Director Grochala responded no. 269 270 Councilmember Reinert stated there will be service costs the City will incur when this development 271 comes to fruition before they receive tax revenue from the portion in the TIF District. He indicated 272 the good thing about this project is only half of it is in TIF, and he believes the $290,000 in revenue 273 the portion not on TIF will generate is more than sufficient to cover the cost of those services. 274 275 Community Development Director Grochala noted it is difficult to put a finite number on the needs 276 for this development because what is needed here could have benefit to the rest of the City. He cited 277 a snowplow as an example, which may be needed to plow and remove snow from this development, 278 but would only be needed for a few hours per snowfall. He indicated the existence of an additional 279 snowplow in the city would benefit all those who live on cul-de-sacs that currently have to wait 280 longer to get their streets plowed. He stated another aspect that has not been mentioned is the 281 building permit revenue, which will generate almost a million dollars in revenue to offset the cost of 282 inspectors, clerical staff, etc. 283 284 Councilmember Stoltz thanked Staff for all the time they have spent answering his questions and 285 getting him up to speed on the issues surrounding this project. He stated he has tried to look at what a . 86 yes vote will do for Lino Lakes, commenting it will provide senior housing, affordable housing, more 87 shopping options, and improve the Lake Drive / I -35W corridor, which is greatly needed. He 6