HomeMy WebLinkAbout2016-023 Council ResolutionCITY OF LINO LAKES
�,. RESOLUTION NO. 16-23
RESOLUTION DESIGNATING BUILDINGS AS STRUCTURALLY SUBSTANDARD
WITHIN LINO LAKES REDEVELOPMENT PROJECT
BE IT RESOLVED by the City Council of the City of Lino Lakes ("City") as follows:
Section 1. Recitals.
1.01. Under Minnesota Statutes, Section 469.174, subd. 10(d), the City or the Lino Lakes
Economic Development Authority (the "Authority") is authorized to deem parcels as occupied by
structurally substandard buildings despite prior demolition or removal of the buildings, subject to
certain terms and conditions as described in this resolution.
1.02. The City or Authority intends to cause demolition of the buildings located on the
property described in Exhibit A hereto (the "Designated Property"), and may in the future include
the Designated Property in a redevelopment or renewal and renovation tax increment financing
district as defined in Minnesota Statutes, Sections 469.174, Subd. 10 or Subd. 10a.
Section 2. Buildings Designated Substandard; Other Proceedings.
2.01. The City finds that the buildings on the Designated Property as described in Exhibit
`.- A are structurally substandard to a degree requiring substantial renovation or clearance, based upon
the analysis of such buildings by LHB Architects dated March 27, 2015 and on file in City Hall.
2.02. After the date of approval of this resolution, the buildings on the Designated
Property may be demolished or removed by the City, or such demolition or removal may be
financed by the City, or may be undertaken by a developer under a development agreement with the
City.
2.03. The City intends to include the Designated Property in a redevelopment or renewal
and renovation tax increment financing district, and to file the request for certification of such
district with the Anoka County auditor within three years after the date of demolition of the
buildings on the Designated Property.
2.04. Upon filing the request for certification of the new tax increment financing district,
the City will notify the Anoka County auditor that the original tax capacity of the Designated
Property must be adjusted to reflect the greater of (a) the current net tax capacity of the parcel, or
(b) the estimated market value of the parcel for the year in which the buildings were demolished or
removed, but applying class rates for the current year, all in accordance with Minnesota Statutes,
Section 469.174, subd. 10(d).
2.05. City staff and consultants are authorized to take any actions necessary to carry out
the intent of this resolution.
460588v1 LN140-114
Adopted by the Council of the City of Lino Lakes this 11th day of April, 2016.
The motion for the adoption of the foregoing resolution was introduced by Council Member
Kusterman and was duly seconded by Council Member Manthey and upon
vote being taken thereon, the following voted in favor thereof:
Kusterman, Manthey, Maher, Rafferty, Reinert
The following voted against same:
none
ATTEST:
u >a e Bartell, Ci Cle
460588v1 LNI40-114
EXHIBIT A
Description of Designated Property
6007 Hodgson Road, Lino Lakes, Minnesota
PID Nos. 31-31-22-43-0007, 31-31-22-43-0006, and 31-31-22-43-0017
460588v1 LN140-114
CITY COUNCIL
`._ AGENDA ITEM 6D
STAFF ORIGINATOR: Michael Grochala
MEETING DATE: April 11, 2016
TOPIC: i. Consider Resolution No. 16-23, Designating Building as
Structurally Substandard, 49 Club
VOTE REQUIRED: 3/5
INTRODUCTION
Staff is requesting City Council approval to designate buildings (49 Club) as structurally
substandard.
BACKGROUND
The 49 Club, located at the corner of Hodgson Road and County Road J, has been vacant since
approximately 2003. The site has become a blighted location with illegal dumping and
vandalism taking place on a regular basis. The city has received numerous complaints regarding
the property. The site has been the topic, along with the neighboring 17 acre Jensen property, of
several development proposals. However, none have advanced past the concept phase due to a
number of complicating factors including the need for public improvements, multiple property
owners, and council concern over the intensity of prior commercial development proposals.
In March of 2015 LHB Corporation was retained to determine the eligibility of the property for
TIF purposes and to document the condition of the building. As noted in the report the buildings
are structurally substandard to a degree requiring substantial renovation or clearance. Staff has
been working with the owner of the property regarding potential demolition of the buildings
either as a City project or by the owner. The owner is proposing to remove both the principal
structure and accessory garage with their own contractor.
Staff is very interested in this project as a means to clean up the site, eliminate the blight and
assist redevelopment efforts. The use of Tax Increment Financing (TIF) has previously been
discussed to help offset utility, road or land assemblage costs to facility redevelopment of the
corner.
However, removal of the building has the potential to eliminate one of the financial tools
available to assist with redevelopment. In order to establish a TIF District after demolition, the
request for certification of the TIF District must be filed with the County within three years of
the parcel being occupied by a substandard building. An actual project would need to occur
within 4 years of district certification or the site would be dropped from the district and no longer
�... eligible for TIF.
To retain our ability to use TIF staff has listed out the steps that the EDA/City would need to
follow in order to demolish a building prior to a redevelopment TIF District being established:
1) The EDA Board finds by resolution (adopted before demolition) that the parcel was
occupied by a structurally substandard building and that after demolition and clearance
the EDA intends to include the parcel within a TIF district;
2) The City Council adopts resolution and makes blight findings regarding the building
(based on report);
3) EDA and owner of property enter into a preliminary development agreement (before
demolition) regarding demolition of the buildings and redevelopment of the property.
The EDA is considering the substandard building findings and the preliminary development
agreement at their April 11, 2016 meeting.
RECOMMENDATION
Staff is recommending approval of Resolution No. 16-23.
ATTACHMENTS
1. Resolution No. 16-23
2. LHB Recommendation March 27, 2015