HomeMy WebLinkAbout07/07/2016 EDAC Minutes 1
CITY OF LINO LAKES
ECONOMIC DEVELOPMENT
ADVISORY COMMITTEE
MINUTES
DATE: July 7, 2016
MEMBERS
PRESENT: Thomas Colgan, Jim Schueller, Don Johnson, Rebecca Glewwe
MEMBERS
ABSENT: Julie Schwartz, Tami Wier, Nathan Vojtech, Lou Masonick, Chad Wagner
OTHERS PRESENT: Michael Grochala, Alex McKenzie
APPROVAL OF MINUTES
It was moved by Rebecca Glewwe to approve the minutes from June 2, 2016. The Motion was
seconded by Tomas Colgan and passed unanimously.
United Properties Distribution Center-TAX INCREMENT FINANCING
Mr. Grochala and staff have been working with United Properties regarding construction of a
warehousing/distribution facility along 35E for the past six months. This has been previously
discussed with EDAC, Planning & Zoning board and City Council. United Properties submitted
a request for rezoning to Planned Unit Development, Development Stage Plan Approval and
Preliminary Plat arrival which includes the 56 acre site and two outlots for future development.
The Planning and Zoning board held a public hearing on June 8, 2016 which was continued for
further discussion on July 13, 2016.
Development of the site will require the extension of 21st Avenue, from Commerce Avenue
2,100 feet south. Extension of the street includes the crossing of Clearwater Creek and filling and
mitigation of floodplain areas adjacent to the creek. The comprehensive plan states the extension
of 21st Avenue to Cedar Street, and right of way will be considered to be obtained during this
project.
The total project cost is approximately $24,000,000 with an estimated building/site value of
$18,200,000. The City is proposing to limit the duration of tax increment to approximately 5.5
years with an assistance of $1.2 million. The property is within the “Green Acres” tax
designation and the facility must meet more restrictive conditions. To meet the tax increment
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district requirements the tenant will need to pay 90% of the employees 160% of the federal
minimum wage ($11.60/hour). The company currently employs 120 full time employees and
staff is proposing a minimum job goal of 60. The City is estimating $700,000 in property taxes
per year, with $100,000 in building permits, $400,000 in trunk utility fees and $65,000 in Park
Dedication fees.
Mr. Colgan acknowledges the benefits of site for this kind of use and business along with the TIF
fitting the needs of the City, and being risk fee. Mr. Johnson questioned if the billboard on site
will be relocated if moved, and Mr. Grochala explained under a newly passed ordinance the sign
will be non-conforming if moved and not permitted.
PROJECT UPDATES
Mr. Grochala provided updates on projects throughout Lino Lakes. Watermark preliminary plan
was approved at the June Planning and Zoning board meeting. Staff is still working on a storm
water management plan for the area including the Watermark Development. D.R. Horton plans
for Woods Edge Townhomes north of City Hall, was approved at the June Planning and Zoning
board meeting and will proceed to City Council approval. St. Clair Estates was tabled at the June
Planning and Zoning board meeting and will be revisited.
ADJOURNMENT
The meeting was adjourned at 8:55 AM.