HomeMy WebLinkAbout04-12-1999 EDA PacketAGENDA
ECONOMIC DEVELOPMENT AUTHORITY
MONDAY
APRIL 12, 1999
6:00 P.M.
1. Call to Order and Roll Call
2. Consideration of Minutes of Monday, March 22, 1998
3. Consideration of Contract for Private Development between Lino Lakes EDA and Lino
Lakes Business Center Phases 5, 6, 7 & 8
4. Adjourn
CITY OF LINO LAKES
ECONOMIC DEVELOPMENT AUTHORITY
MINUTES
DATE: Monday, March 22, 1999
MEMBERS
PRESENT: K. Sullivan, J. Bergeson, C. Dahl, C. Lyden, A. Neal
MEMBERS
ABSENT:
OTHERS
PRESENT: Brian Wessel, Mary Divine
CONSIDERATION OF MINUTES
EDA Member Neal moved to approve the minutes from the December 21, 1998 EDA
meeting. EDA Member Dahl seconded the motion. Motion passed unanimously.
CONSIDERATION OF ANNUAL APPOINTMENTS
ACTION: EDA Member Lyden moved to approve 1999 offices: Kim Sullivan, President;
Caroline Dahl, Vice-president; Andy Neal, Treasurer; Mary Divine, Secretary; Daryl
Sulander, Assistant Treasurer; Linda Waite Smith, Executive Director. EDA Member Neal
seconded the motion. Motion passed unanimously.
CONSIDERATION OF OFFICIAL NEWSPAPER
ACTION: EDA Member Neal moved to appoint the Quad Community Press as the official
EDA newspaper. EDA Member Lyden seconded the motion. Motion passed unanimously.
CONSIDERATION OF OFFICIAL DEPOSITORIES
ACTION: EDA Member Neal moved to approve Norwest Bank, First Bank NA, Firstar
Bank, Merrill Lynch, Dain Bosworth, Juran and Moody, Prudential Bach, Lino Lakes
State Bank, Lakeland National Bank, and League of Minnesota Cities 4M Fund as EDA
official depositories. EDA Member Bergeson seconded the motion. Motion passed
unanimously.
CONSIDERATION OF CONTRACT FOR PRIVATE DEVELOPMENT BETWEEN
LINO LAKES EDA AND CONTRACT HARDWARE (MCLAD, LLP)
Mr. Wessel outlined the conditions for public assistance for Contract Hardware, which is
locating on 2.1 acres in the Apollo Business Center. In the agreement, the city agrees to
provide tax increment financing in the amount of $126,076. A total of $60,853 will be
presented upfront to pay assessments and administrative fee. The remained will be
reimbursed over time from available increment. Estimated payback is 2006. This project
requires a 10% local contribution from the city's general fund.
ACTION: EDA Member Neal moved to approve the development agreement. EDA
Member Lyden seconded the motion. Motion passed unanimously.
ADJOURNMENT
EDA Member Neal moved to adjourn. EDA Member Lyden seconded the motion.
Motion passed unanimously.
AGENDA ITEM 3
STAFF ORIGINATOR: Brian Wessel
DATE: 4/12/99
TOPIC: Consideration of the Contract for Private
Development between Lino Lakes EDA and Lino
Lakes Business Center Phases 5, 6, 7 & 8
BACKGROUND:
This development contract outlines the conditions for public assistance to Lino
Lakes Business Center (Bill Fogerty) for the construction of four additional Tight
industrial leasable buildings. The site is six acres formerly owned by Hawkins
Chemical (see attached map). The developer plans to build a total of 84,200
square feet by the end of next year. The total minimum market value (MMV) of
the completed project will be $3,329,500.
The earlier phases of the Lino Lakes Business Center have provided
approximately $4 million in additional tax base to the city. They have also
attracted excellent companies and good paying jobs to the business park, as
well as provided facilities for existing businesses to grow and stay within the city.
In this agreement, the city agrees to provide a maximum amount of tax increment
financing totaling $532,720, which amounts to 16% of the MMV. The agreement
removes the assessments of $131,488 upfront, and the remaining TIF will be
provided on a pay-as-you-go basis to pay for the cost of land and some site
preparation and landscaping. The city will be reimbursed first for the
assessments and then the developer will receive the remaining increment.
Estimated payback is in 2007.
The developer was required to submit a $20,000 escrow which is refundable in
increments as the buildings are constructed. In the event all four buildings are
not complete by the end of 2000, the developer loses the escrow for
uncompleted buildings, and will not be reimbursed for any site preparation costs.
This project is in the new TIF District 1-9, which requires a 10% local
contribution ($53,272) from the city's general fund. This contribution will be
reviewed annually, as there are a number of options available as the city's local
contribution.
OPTIONS:
1. Ape h contract for private devIopment between Lino Lakes EDA and
tract Hardware (McLad, LLP)
2. Return to staff for further consideration
RECOMMENDATION:
Option 1