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Home My WebLink About04-08-2002 EDA PacketAGENDA ECONOMIC DEVELOPMENT AUTHORITY MONDAY APRIL 8, 2002 6:00 P.M. . Ca11 to Order and Roll Call 2. Consideration of Minutes of December 17, 2001 3. Consideration of Annual Appointments A. EDA Officers: President, Vice President, Treasurer, Assistant Treasurer, Executive Director and Secretary B. Official Newspaper C. Official Depositories 4. Consideration of Resolution No. 02-01 approving the elimination of a parcel from Tax Increment Financing District No. 1-9 within Development District No. 1 of the City of Lino Lakes Adjourn CITY OF LINO LAKES ECONOMIC DEVELOPMENT AUTHORITY MINUTES DATE MEMBERS PRESENT MEMBERS ABSENT OTHERS PRESENT : December 17, 2001 : J. Bergeson, D. Carlson, C. Dahl, J. O'Donnell, J. Reinert : None Ann Blair, Mary Divine, and Linda Waite Smith and Dan Tesch CONSIDERATION OF MINUTES OF MONDAY, MARCH 12, 2001 EDA Member Carlson moved to approve the March 12, 2001, minutes, as presented. EDA Member O'Donnell seconded the motion. Motion passed unanimously. CONSIDERATION OF RESOLUTION NO. 01-03 APPROVING THE ELIMINATION OF PARCELS FROM TAX INCREMENT FINANCING DISTRICT NO. 1-5 WITHIN DEVELOPMENT DISTRICT NO. 1 Ms. Divine advised in 1992 the Economic Development Authority created Tax Increment Financing District No. 1-5 for the purpose of providing TIF assistance for the Cottages of Willow Ponds senior housing. The original intent of the developer was to construct 98 units of rental housing with maximum income limitations on the parcel. Ms. Divine indicated that the project was later downsized to 48 units, and the developer sold off some of the parcel for 10 single-family lots. In the process of gathering annual documentation for income compliance, it was decided that that those lots should have been removed from the District since there is no documentation that income limitations were applied to the single-family homes. Ms. Divine stated that Cottage Homesteads began receiving increment in 1997 and has been receiving the benefit of those homes being in the District. This Resolution removes the parcels from the District and directs staff to notify Anoka County of the reduction of the size of the District and return the increment from the District up to an amount of $50,525. Anoka County will then redistribute it to the City, County and School District. Payments to Cottage Homesteads will be withheld until that increment is recovered. Ms. Divine advised it is recommended that the City Council adopt Resolution No. 01-03 Approving the Elimination of Parcels from TIF District No. 1-5. EDA Member Carlson expressed her appreciation the City staff for their diligence in this matter. EDA Member Carlson moved to approve Resolution No. 01 03. EDA Member Reinert seconded the motion. Motion passed unanimously. CONSIDERATION OF TERMINATION AGREEMENT WITH H&L MESABI Ms. Divine advised in March 2001 the Economic Development Authority passed a Resolution declaring H&L Mesabi in default on a Development Agreement and Assessment Agreement it had entered into with the Authority. The company had already purchased three acres of property in the Apollo Business Park before making a decision not to build its new facility. Ms. Divine indicated according to State Statute, all parties that enter into an Assessment Agreement must terminate the agreement by"mutual consent." Mr. Bernard Carey, President of H&L Mesabi, was advised that he must take action to terminate the Assessment Agreement with the Economic Development Authority, the School District and Anoka County, or pay taxes on a building that did not exist. Ms. Divine advised Mr. Carey is now planning to sell the three acres of land, and as a condition of sale, his attorney is requesting a Termination Agreement be executed so that when signed by Mr. Carey, there will be evidence of mutual consent. Ms. Divine stated that the agreement is consistent with the Resolution adopted in March, but the Economic Development Authority never explicitly authorized the President and Executive Director to sign such an agreement. This action makes that authorization. Ms. Divine advised it is recommended that the City Council approve the execution of a Termination Agreement with H&L Mesabi. She indicated that approval of the Termination Agreement will be considered by the Council under the Consent Agenda portion of this evening's regular meeting. EDA President Bergeson recommended that consideration of this Termination Agreement be removed from the Consent Agenda during the regular meeting of the City Council this evening and voted on separately so the record will show the Council having taken specific action on this issue. EDA Member Dahl moved to approve the execution of a Termination Agreement with H&L Mesabi. EDA Member O'Donnell seconded the motion. Motion passed unanimously. ADJOURNMENT EDA Member O'Donnell moved to adjourn. EDA Member Carlson seconded the motion. Motion passed unanimously. Meeting adjourned at 6:07 p.m. Transcribed by: Lori Rolfson TimeSaver Off Site Secretarial, Inc. AGENDA ITEM 3A STAFF ORIGINATOR: Mary Alice Divine DATE: 4/08/02 TOPIC: Consideration of annual appointments Vote required: Simple majority BACKGROUND: According to Lino Lakes EDA by-laws, the EDA elects a president, vice president, secretary, treasurer and assistant treasurer each year. The offices of president, vice president and treasurer must be held by EDA members. In 2001 the officers were as follows: President: Mayor John Bergeson Vice President: Caroline Dahl Treasurer: Donna Carlson Secretary: Mary Divine Assistant Treasurer: Finance Director Executive Director: City Administrator Staff requests that the Authority elect members for these positions for 2002. This can be completed in one motion, or you can vote on each position separately. OPTIONS: 1. Elect a president, vice-president, secretary, treasurer and assistant treasurer to serve in 2002 2. Return to staff for further consideration RECOMMENDATION: Option 1 AGENDA ITEM 3B STAFF ORIGINATOR: Mary Alice Divine DATE: 4/08/02 TOPIC: Consideration of EDA Official Newspaper Vote Required: Simple majority BACKGROUND: The EDA is required to publish public notices regarding its meetings. In the past, the EDA has designated the official newspaper to be the same as the city's official newspaper. OPTIONS: 1. Appoint the Quad Community Press as the EDA official newspaper 2. Return to staff for further consideration RECOMMENDATION: Option 1 AGENDA ITEM 3C STAFF ORIGINATOR: Mary Alice Divine DATE: TOPIC: Vote Required: BACKGROUND: The list of legal depositories approved for 2002 by the City Council is as follows: 4/08/02 Consideration of Official Depositories Wells Fargo First Bank, NA Firstar Bank Dain Bosworth Lino Lakes State Bank Solomon, Smith, Barney Simple Majority Prudential Bache Community National Bank Merrill Lynch Juran & Moody LMC 4M Fund Others as needed These depositories are used for checking, savings and investing city dollars. On occasion the EDA and the city have financial transactions that will require the EDA to have designated legal depositories. OPTIONS: 1. Approve the list of legal depositories 2. Return to staff for further consideration RECOMMENDATION: Option 1 AGENDA ITEM 4 STAFF ORIGINATOR: Mary Alice Divine DATE: 4/08/02 TOPIC: Consideration of Resolution No. 02-01 approving the Elimination of a Parcel from TIF District No. 1-9 within Development District No. 1 Vote Required: Simple Majority BACKGROUND: In 1998, the Economic Development Authority created Tax Increment Financing District No. 1-9 for the purpose of providing TIF assistance to industrial prospects in the Apollo Business Park and the Lakes Business Park. At that time the landowner had interest in developing Lakes Business Park on Lake Drive as a light industrial park. Since that time the landowner has sold a piece of the site to Centennial School District for its new elementary school and the city approved a minor subdivision for the school parcel. The school district wishes to combine the elementary school and the adjacent middle school into one tax exempt parcel. To do so, Anoka County requires the parcel be removed from the TIF District. OPTIONS: 1. Adopt Resolution No. 02-01 Approving the Elimination of a Parcel from TIF District No. 1-9. 2. Do not adopt Resolution No. 02-01. 3. Return to staff for further consideration RECOMMENDATION: Option 1. LINO LAKES ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO.02-01 RESOLUTION APPROVING THE ELIMINATION OF A PARCEL FROM TAX INCREMENT FINANCING DISTRICT NO. 1-9 WITHIN DEVELOPMENT DISTRICT NO. 1 OF THE CITY OF LINO LAKES. WHEREAS, on December 14, 1998 the Lino Lakes Economic Development Authority (The "Authority") created its Tax Increment Financing District No. 1-9 ("District No. 1-9"), County Number R-2, within its Development District No. 1; and WHEREAS, District No. 1-9, was created as an Economic Development District according to M.S. 469.174, subd.12; and WHEREAS, District 1-9 included the parcel listed in Attachment A which was previously certified in District 1-9; and WHEREAS, the adjusted original tax capacity for taxes payable 2002 is $2024.00; and WHEREAS, the current tax capacity for taxes payable in 2002 is $2206.00; and WHEREAS, because the current tax capacity is greater than the adjusted original tax capacity; a public hearing is not required by Minnesota Statutes, Section 469.175, subd. 4; ,and WHEREAS, The Authority desires by this resolution to cause the elimination of the parcel from the District, thereby reducing the size of the District. NOW THEREFORE, BE IT RESOLVED by the Economic Development Authority of the City of Lino Lakes that the parcel is hereby eliminated from District No. 1-9 and the City's staff shall take such action as is necessary to notify the County Auditor of the reduction in the geographic area of District No. 1-9 caused by the elimination of such parcel. DATED: , 2002 President ATTEST: Executive Director The motion for the adoption of the foregoing resolution was duly seconded by member and upon vote being taken thereon, the following voted in favor thereof: and the following voted against same: Whereupon said resolution was declared duly passed and adopted. Parcel to be removed from Tax Increment Financing District No. 1-9 17-31-22-32-0005 AIRS 2ND 2 s � 3 2 0 12 NORTH