HomeMy WebLinkAbout2016-075 Council ResolutionCITY OF LINO LAKES, MINNESOTA
RESOLUTION NO. 16-75
RESOLUTION APPROVING TAX INCREMENT FINANCING PLAN FOR TAX
INCREMENT FINANCING (ECONOMIC DEVELOPMENT) DISTRICT NO. 1-12
AND A MODIFIED DEVELOPMENT PLAN FOR DEVELOPMENT DISTRICT
NO.1
WHEREAS, the City of Lino Lakes, Minnesota (the "City") and the Lino Lakes Economic
Development Authority (the "Authority") have established, and the Authority administers, Development
District No. 1 (the "Development District") located within the City and have caused to be created a
Development Plan (the "Development Plan") therefor, pursuant to Minnesota Statutes, Sections 469.090
through 469.1082, as amended (the "EDA Act"); and
WHEREAS, within the Development District the City and the Authority have created certain tax
increment financing districts pursuant to Minnesota Statutes, Sections 469.174 through 469.1794, as amended
(the "TIF Act"); and
WHEREAS, the City and the Authority have determined to modify the Development Plan for the
Development District and approve a tax increment financing plan (the "TIF Plan") relating to the creation of a
new tax increment financing district within the Development District designated as the Tax Increment
Financing (Economic Development) District No. 1-12 (the "TIF District"), all as described in a plan document
presented to the City Council of the City (the "City Council") on the date hereof; and
WHEREAS, the City and the Authority have determined to consider an additional modification of
the Development Plan to expand the boundaries of the Development District to be coterminous with the
City' s boundaries; and
WHEREAS, the TIF Plan was, in accordance with the III- Act, referred to the Lino Lakes Planning
and Zoning Board (the "Planning and Zoning Board") and by resolution adopted by the Board of
Commissioners of the Planning and Zoning Board on July 13, 2016, the Planning and Zoning Board found that
the TIF Plan conforms to the general plan for the development of the City as a whole; and
WHEREAS, pursuant to Section 469.175, subdivision 2 of the TIF Act, the proposed TIF Plan and the
estimates of the fiscal and economic implications of the TIF Plan were presented to the School Board of
Independent School District No. 12 and to the County Board of Commissioners of Anoka County, Minnesota;
and
WHEREAS, on the date hereof, the City Council conducted a public hearing relating to the modified
Development Plan, the TIF Plan, and the establishment of the 111• District, at the views of all interested parties
were heard at the public hearing; and
WHEREAS, the City Council has reviewed the contents of the modified Development Plan and the
1'11• Plan; and
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Lino Lakes, Minnesota
that:
Section 1. Findings; Development District. The City Council approves the modified
Development Plan, including the expansion of the boundaries of the Development District to be
coterminous with the boundaries of the City, and specifically finds that: (a) the land within the Development
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District as expanded would not be available for development without the fmancial aid to be sought under
the modified Development Plan; (b) the Development Plan, as modified, will afford maximum opportunity,
consistent with the needs of the City as a whole, for the development of the Development District by private
enterprise; and (c) the Development Plan, as modified, conforms to the general plan for the development
of the City as a whole.
Section 2. Findings; TIF District.
2.01. It is found and determined that it is necessary and desirable for the sound and orderly
development of the Development District, and for the protection and preservation of the public health, safety,
and general welfare, that the authority of the TIF Act be exercised by the City to provide public financial
assistance to the TIF District and the Development District.
2.02. It is further found and determined, and it is the reasoned opinion of the City, that the
development proposed in the TIF Plan could not reasonably be expected to occur solely through private
investment within the reasonably foreseeable future and the increased market value of the site that could
reasonably be expected to occur without the use of tax increment financing would be less than the increase in
the market value estimated to result from the proposed development after subtracting the present value of the
projected tax increments for the maximum duration of the district permitted by the TIF Plan.
2.03. The proposed public improvements to be financed in part through tax increment financing are
necessary to permit the City to realize the full potential of the 1'11 District and the Development District in
terms of development intensity, employment opportunities, and tax base.
2.04. The TIF Plan conforms to the general plan for development of the City as a whole.
2.05. The 111 Plan will afford maximum opportunity, consistent with the sound needs of the City
as a whole, for the development of the TIF District and the Development District by private enterprise.
2.06. The TIF District is an economic development district under Section 469.174, subdivision 12
of the TIF Act.
2.07. Reasons and facts supporting all the above findings are set forth in the 1lr Plan and are
incorporated herein by reference. The City Council has also relied upon the reports and recommendations of
its staff and consultants, as well as the personal knowledge of members of the City Council, in reaching its
conclusions regarding the III' Plan.
Section 3. Public Purpose. The adoption of the TIF Plan conforms in all respects to the
requirements of the TIF Act. The TIF Plan will help facilitate development that will retain an existing
business in the City, retain jobs within the City, and increase the tax base. The City expressly fords that the
tax increment assistance is provided solely to make the development financially feasible and thus produce
the public benefits described. Therefore, the City finds that the public benefits of the TIF Plan exceed any
private benefits.
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Section 4. Approvals; Further Proceedings
4.01. The 1'11 Plan for the TIF District and the modified Development Program for Development
District No. 1 are hereby approved and adopted in substantially the form on file at City Hall.
4.02. The City Council hereby transmits the TIF Plan and the modified Development Program to
the Board of Commissioners of the Authority (the "Board") and recommends that the Board adopt the TIF Plan
and the modified Development Program.
4.03. Upon approval of the 1'J} Plan and the modified Development Plan by the Board, the
Authority is authorized and directed to file a request for certification of the TIF District with the County Auditor
of Anoka County, Minnesota and to file a copy of the modified Development Plan and the TIF Plan with the
Minnesota Commissioner of Revenue as required by the TIF Act.
Adopted by the Council of the City of Lino Lakes this 25th day of July, 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, Rafferty, Maher
The following voted against same:
none
A MST:
Juli., e Bartell, Ci i Cler
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483318v1 JAELN140-116
Jeff Reinert,
CITY COUNCIL
AGENDA ITEM 6A (i)
STAFF ORIGINATOR: Michael Grochala, Community Development Director
MEETING DATE: July 25, 2016
TOPIC: Consider Resolution No. 16-75, Approving Tax Increment
Financing Plan for District 1-12 and a Modified Plan for
Development District No. 1
VOTE REQUIRED: 3/5
INTRODUCTION
Staff is requesting City Council consideration to approve the Tax Increment Financing Plan for
District 1-12 and a Modified Plan for Development District No. 1.
BACKGROUND
United Properties is proposing to develop 56 Acre area parcel as the Clearwater Creek Business
Park. The developer is currently working with a warehouse/distribution company to construct a
402,000 square foot facility on approximately 30 acres of the park. The project will include a
2,100 -foot extension of 21' Avenue.
The developer has submitted an application for public assistance to offset infrastructure and
soil correction costs associated with the site development. The proposed public assistance
would be provided in the form of Tax Increment Financing (TIF).
The establishment of a Tax Increment Financing (TIF) District requires the preparation of a TIF
plan and review by both the school district and county. No comments were received from
Centennial School District or Anoka County. The Planning and Zoning Board, on July 13,
2016, determined that the proposed TIF Plan was consistent with the Comprehensive Plan.
A public hearing must be held prior to City Council consideration to establish a district.
Tax Increment Financing (TIF) Plan
The TIF plan provides the framework for the use of tax increment for development purposes.
The plan includes the statutory authorization, purpose and objectives of the district. The
City/EDA are proposing to establish an Economic Development District. The maximum
duration of the district is 8 years from the date of receipt of the first increment.
The primarily purpose of the district is to aid in the construction of the proposed
warehousing/distribution facility. Tax increment is intended to be used to offset costs related to
soil corrections, site improvements and public street and utility improvements. The project will
include the extension of 21' Avenue which is identified as a collector street in the City's
Comprehensive Plan.
The plan includes the City's findings that, in our opinion, due to extraordinary costs associated
with the project including poor soils, street extension, creek crossing, and flood mitigation, the
project would not be reasonably expected to occur solely through private investment.
The estimated public costs eligible for reimbursement from tax increment total $2,603,627.
Tax increment revenues generated from the development are expected to equal this amount.
Approval of the plan and determination of eligible costs does not obligate the City/EDA to any
specific district duration or amount of assistance.
The determination of any specific assistance package will be part of a separate contract for
development. The EDA will be holding a public hearing following the City Council meeting to
consider a business subsidy in the amount of $1,200,000 for the proposed development.
Modified Program for Development District No. 1
The City has previously determined there to be a need to offer assistance to encourage
development of the area of the community established as Development District No. 1. The
City established District No. 1 in 1987. The boundaries where last expanded in 1997 in
connection with TIF District 1-8.
The City/EDA have previously created 11 TIF Districts within the Development District. The
purpose of the modification is to acknowledge the intent to create TIF District 1-12, create a
TIF Plan to assist with the development of the warehousing facility and to modify the
boundaries to match the corporate limits.
Representatives from Springsted Inc., the City's financial consultant, and Kennedy & Graven,
the City's Development Counsel will be present at the meeting to address any City Council
questions.
RECOMMENDATION
Staff recommends approval of Resolution No. 16-75
ATTACHMENTS
1. Resolution No. 16-75
2. Springsted Summary Memo
3. Tax Increment Financing Plan for District 1-12
4. Development Program for Development District No. 1