HomeMy WebLinkAboutResolution No. 16-04 EDALINO LAKES ECONOMIC DEVELOPMENT AUTHORITY
RESOLUTION NO. 16-04
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 Board of Commissioners of the Authority (the "Board") 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 TIF 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 of the City (the "City Council") conducted a
public hearing relating to the modified Development Plan, the TIF Plan, and the establishment of the TIF
District, at the views of all interested parties were heard at the public hearing; and
WHEREAS, following the public hearing, the City Council approved the modified Development
Plan and the TIF Plan; and
WHEREAS, the Board has reviewed the contents of the modified Development Plan and the TIF
Plan, as approved by the City Council; and
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NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of the Lino Lakes
Economic Development Authority that:
1. The modified Development Plan, including the expansion of the boundaries of the
Development District to be coterminous with the boundaries of the City, and the TIF Plan for the TIF
District are hereby approved.
2. The Board hereby makes all the findings set forth in the Development Plan and the TIF
Plan, which documents are incorporated herein by reference.
3. Authority staff and consultants are authorized to take all actions necessary to implement the
TIF Plan.
Adopted by the Board of Commissioners of the Lino Lakes Economic Development Authority
this 25th day of July, 2016.
The motion for the adoption of the foregoing resolution was introduced by Board Member
Maher and was duly seconded by Board Member Rafferty and upon vote
being taken thereon, the following voted in favor thereof:
Maher, Rafferty, Reinert, Manthey, Kusterman
The following voted against same:
none
i liam usterm , President
ATTEST:
Je r s ri, Executive Director
483314v1 JAE LN140-116 2
�-� LINO LAKES ECONOMIC DEVELOPMENT AUTHORITY
AGENDA ITEM 3A
STAFF ORIGINATOR: Michael Grochala, Community Development Director
MEETING DATE: July 25, 2016
TOPIC: Consider Resolution No. 16-04, Approving Tax Increment
Financing Plan for TIF District 1-12 and a Modified
Development Plan for Development District No. 1.
VOTE REQUIRED: 3/5
INTRODUCTION
Staff is requesting Board 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 21St 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.
The City Council will be holding a public hearing on July 25, 2016 prior to considering the
request.
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/EDA 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. 16-04
ATTACHMENTS
1. Resolution No. 16-04
2. Springsted Summary Memo
3. Tax Increment Financing Plan for District 1-12
4. Development Program for Development District No. 1