03-12-2001 EDA Minutes - Laserfiche WebLink

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3 EDA Member Carlson clarified that the assessments being removed are for the road and sewer. EDA Member O’Donnell moved to approve Resolution No. 01 – 01, contingent upon final approval of the project by the City Council. EDA Member Reinert seconded the motion. Motion passed unanimously. CONSIDERATION OF CONTRACT FOR PRIVATE DEVELOPMENT BETWEEN LINO LAKES EDA AND SUMMIT FIRE PROTECTION Ms. Divine advised the development contract outlines the conditions for public assistance to Summit Fire Protection for the construction of a 30,076 square foot facility on five acres on the G.M. Development property in the Apollo Business Center. The proposed facility will have a minimum market value of $1,615,000 for an estimated total of $73,000 in annual taxes. This agreement is based on a total TIF subsidy of $217,059. It removes the assessments of $87,780 upfront. The remaining pay-as-you-go TIF amounts to $129,279 for assistance with land write down and return of escrow. The City will be reimbursed first for the assessments from the available tax increment, and then the developer will receive the remaining increment. Estimated total payback is in 2007. This project is in TIF District 1-9, which requires a 10% local contribution ($23,496). It is the City’s intent to apply the interest lost on the assessments that were deferred until development occurred as the local contribution. EDA Member Reinert moved to approve the contract for private development between Lino Lakes EDA and Summit Fire Protection, contingent upon final approval of the project by the City Council. EDA Member Dahl seconded the motion. Motion passed unanimously. CONSIDERATION OF RESOLUTION NO. 01 – 02, DECLARING DEFAULT AND TERMINATING DEVELOPMENT AGREEMENT, H&L MESABI Ms. Divine advised on January 24, 2000, the EDA approved a Contract for Private Development with H&L Mesabi for $110,200. The contract required H&L Mesabi to complete the construction of its facility by December 31, 2000. Since the approval of that agreement, the company, which is based in Hibbing, Minnesota, had some setbacks that changed the outlook for the construction of this metro area facility. Because H&L Mesabi has not begun construction of the building in the Apollo Business Center, the company is in default of its development agreement. The president of the company was sent a notification that he had 30 days to cure the default by providing evidence of his intent to complete the facility. He selected not to cure the default.