09-22- 2003 EDA Minutes - Laserfiche WebLink

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EDA MINUTES SEPTEMBER 22, 2003 DRAFT 2 Ms. Divine indicated at the request of the Council they ran numbers showing from five years up to 46 eight years, with eight years being $1.1 million. She noted at five years the company’s rental rates are 47 10 cents a square foot away from what the business had requested. If they went seven years it brings 48 them to $5.89 per square foot, which is .01 cent from the original request. She added their revised 49 request is $5.84. 50 51 EDA Member Dahl moved to close the public hearing at 6:20 p.m. EDA Member Bergeson seconded 52 the motion. Motion carried unanimously. 53 54 A. CONSIDERATION OF RESOLUTION NO. 03-06, APPROVING A CONTRACT FOR 55 PRIVATE DEVELOPMENT BY AND BETWEEN THE LINO LAKES EDA AND 56 PANATTONI DEVELOPMENT, LLC 57 58 Ms. Divine summarized the Staff report, indicating there have been minor language changes in the 59 last few days, but none of them affect the overall agreement. She stated Staff recommends approval. 60 She clarified that if the Board approves the agreement, they may, under separate motion, want to 61 authorize a Subordination Agreement. 62 63 Ms. Divine explained that section 5.2 discussed the Subordination Agreement, and she reviewed that 64 section for the Board. She noted the language is in all of the City’s agreements, but if the lender 65 requests a separate Subordination Agreement it must be done under a separate motion. 66 67 EDA Member Bergeson asked if $127,000 a year is the total tax subsidy; City, School District and 68 County. Ms. Divine indicated it is. EDA Member Bergeson stated in terms of a decision on the 69 number of years, the City’s portion would be about $40,000 a year. Ms. Divine indicated that was 70 correct. 71 72 EDA Member Bergeson moved to adopt Resolution No. 03-06 approving a contract for private 73 development and awarding the sale of, and providing the form, terms, covenants and directions for the 74 issuance of its $638,400 tax increment revenue note, Series 2001, contingent on City Council 75 approval of the EAW and Preliminary Plat. EDA Member Bergeson seconded the motion. 76 77 EDA Member Dahl asked if this is the actual subsidy approval. Ms. Divine indicated it is; they are 78 approving $638,000, with the requirement of four new jobs over two years. 79 80 EDA Member Bergeson noted that at the work session EDA Member O'Donnell brought up the 81 subject of the ‘but for’ test. He is not sure how to assess that. He stated the issue was raised, but he is 82 not sure they received an answer. He indicated this is an important project for the City and within 83 reason they need to do what it takes to make it work, but he does not know how to determine it meets 84 the ‘but for’ rationale. 85 86 Ms. Divine stated that can be subjective, that this request was based on the target base rent needed to 87 make the project comparable to other rents. She indicated the City’s TIF Consultant evaluation was 88 that five years stayed within the policy and scope of what has been approved over the last several 89 years, and was within the acceptable range. 90