HomeMy WebLinkAbout12-21-1998 EDA PacketAGENDA
ECONOMIC DEVELOPMENT AUTHORITY
MONDAY
DECEMBER 21, 1998
6:15 P.M.
1. Call to Order and Roll Call
2. Consideration of Minutes of Monday, December ZI, 1998
3. Consideration of Agreement relating to Development Contract and Mortgage
Financing, F&G, Inc. (Apollo Business Park)
4. Adjourn
CITY OF LINO LAKES
ECONOMIC DEVELOPMENT AUTHORITY
MINUTES
DATE: Monday, December 14, _ 1998
MEMBERS
PRESENT: K. Sullivan, J. Bergeson, C. Dahl, C. Lyden, A. Neal
MEMBERS
ABSENT:
OTHERS
PRESENT: Brian Wessel, Mary Divine, Mark Ruff, Shelly Eldridge
CONSIDERATION OF MINUTES
EDA Member Neal moved to approve the minutes from the October 26, 1998 EDA
meeting. EDA Member Dahl seconded the motion. Motion passed unanimously.
CONSIDERATION OF RESOLUTION NO. 98-06 APPROVING A PLAN TO
MODIFY DEVELOPMENT DISTRICT NO. 1 AND TO ESTABLISH TAX
INCREMENT FINANCING DISTRICT NO. 1-9
Mr. Wessel explained to the Authority that the city had a request for tax increment
financing from businesses interested in locating in Apollo Business Center. This resolution
approves the modification of Development District No. 1 to delete the remaining G.M.
Development parcels, the Hawkins Chemical site and the Rehbein business park parcels
from TIF District No. 1-7, and to reconstitute them into a new TIF District No. 1-9.
Additional parcels that were in TIF District No. 1-7 that were unlikely to develop as light
industrial uses were removed from the district altogether. The only parcels remaining in
1-7 had businesses with development agreements with the city.
Ms. Divine explained that two developers have plans for construction. H&L Mesabi was
considering three acres its facility, and Lino Lakes Business Center is planning to purchase
the six -acre Hawkins Chemical site for three leasable buildings.
EDA Member Lyden said he was against -light -industrial zoning for the Glenn Rehbein site
and it should be zoned for commercial. Mr. Wessel responded that during the
comprehensive planning process it -was -believed that there was enough commercial on the
interchange and -additional would cause- further traffic issues. This business park has a
campus type setting and should attract good businesses. Mr. Lyden disagreed that more
commercial would increase the traffic, since -the -interchange was already planned for
commercial.
Mr. Bergeson questioned if businesses must all be treated equally when it comes to TIF.
Ms. Divine respondedthatthe city provides TIF as a tool to get desirable development
and what is offered to one company does not have to be offered to another.
EDA Member Bergeson moved -to adopt Resolution No. 98-06,. EDA Member Neal
seconded the motion. Motion passed with EDA Member Lyden voting no.
ADJOURNMENT
EDA Member Bergeson moved to adjourn. EDA Member Dahl seconded the motion.
Motion passed unanimously.
AGENDA ITEM 3
STAFF ORIGINATOR: Brian Wessel
DATE: 12/21/98
TOPIC: Consideration of Agreement relating to
Development Contract and Mortgage
Financing, F&G, Inc.
BACKGROUND:
In 1997 the EDA entered into a development agreement for financial assistance
with F&G, Inc. regarding a project within TIF District No. 1-7 in the Apollo
Business Park. The agreement called for the construction of two buildings in
1997 and a third in 1998. In March of 1998 the EDA authorized the developer to
place a mortgage on the property for permanent financing on the first two
buildings. The third building is now complete and this agreement authorizes a
mortgage for an additional $635,000 in connection with permanent financing for
the final building.
Staff and legal counsel have reviewed the agreement and are able to represent
that there have been no violations of the original development agreement. This
authorization is reasonable and represents standard procedure for financing.
The only further action necessary is to modify the assessment agreement with
the developer to reflect the additional market value of the property. This action
will be taken tonight by the city council.
OPTIONS:
1. Authorize the president and executive director to execute the agreement on
behalf of the EDA
2. Return to staff for further consideration
RECOMMENDATION:
Option 1
AGENDA ITEM 4
STAFF ORIGINATOR: Brian Wessel
DATE: 12/21/98
TOPIC: Consideration of Modification of Assessment
Agreement, F&G, Inc.
BACKGROUND:
In 1997 the EDA entered into a development agreement for financial assistance
with F&G, Inc. regarding a project within TIF District No. 1-7 in the Apollo
Business Park. The -agreement -called -for the construction of two buildings in
1997 and a third in 1998. The original assessment agreement, which sets the
minimum market value for the project, included the first two buildings. The third
building is now complete and a modified assessment agreement needs to be
completed to reflect the increase in value. T-his modified agreement should be
completed before January 2, 1999 for taxes payable in 2000.
OPTIONS:
1. Authorize the execution of a modified assessment agreement for F&G, Inc.
2. Return tQ staff for further consideration
RECOMMENDATION:
Option 1
J
Dec-21-98 03:25pm From-KENNEDY & GRAVEN
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CRAFT
AMENDED AND RESTATED
ASSESSMENT AGREEMENT
THIS AMENDED AND RESTATED ASSESSMENT AGREEMENT, dated as of this _
day of December, 1998, by and between the Lino Lakes Economic Development Authority, a
public body corporate and politic under the laws of Minnesota ("the Authority"), and F & G, Inc., a
Minnesota corporation (the "Developer").
W1TNESSETH:
WHEREAS, the Authority and the Developer entered into a Contract for Private
Development dated May 13, 1997, recorded thereafter as Document No. 1281609 in the Office of
the Anoka County Recorder (the "Development Contract") regarding land located in the City of
Lino Lakes, which land is legally described on Exhibit A attached hereto (the "Property"); and
WHEREAS, pursuant to the Development Contract, the Developer has constructed three
office/warehouse facilities, known as Building A, Building B, and Building C (collectively, the
"Minimum Improvements") on the Property; and
WHEREAS, the Authority and the Developer desire to establish a Minimum Market Value
for the Property and the Minimum Improvements constructed thereon, pursuant to Minnesota
Statutes, section 469.177, Subd. 8; and
WHEREAS, the Authority and the Anoka County assessor, acting as the assessor for the
city of Lino Lakes, Minnesota have previously reviewed the Construction Plans for the Minimum
improvements which the Developer promised to erect on the Property and have agreed upon the
minimum market value to be assigned thereto.
NOW, THEREFORE, the parties to this Agreement, in consideration of the promises,
covenants and agreements made by each to the other, do hereby agree as follows:
1. The Minimum Market Value of the Property and the first two buildings of the
Minimum Improvements was previously established as One Million Six Hundred Seventy-nine
Thousand Three Hundred Dollars ($1,679,300) as of January 2, 1998 for taxes payable in 1999.
The Minimum Marker Value of the Property and the three buildings of the Minimum improvements
shall be Two Million Two Hundred Eighty-five Thousand Three Hundred Dollars ($2,285,300) as
of January 2, 1999 for taxes payable beginning in 2000.
2. The Minimum Market Value of $2,285,300 herein established for taxes payable
beginning in 2000 shall be of no further force and effect and this Amended and Restated
Assessment Agreement will end on the Termination Date. The Termination Date will occur (i) after
receipt by the Authority of nine years of increment from the Authority's Tax increment Financing
District No. 1-7, (ii) May 22, 2006, or (iii) when the Authority has received Available Tax
Increment in the amount necessary to satisfy its obligations to repay land costs and Site Preparation
Costs under the Development Contract, whichever occurs first.
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3. This Amended and Restated Assessment Agreement shall be promptly recorded
with a copy of Minnesota Statutes, section 469.177, subd. 8, set forth in Exhibit B hereto. The
Developer shall pay 'all costs of recording this Amended and Restated Assessment Agreement.
4. Neither the recitals nor the provisions of this Amended and Restated Assessment
Agreement are intended to, nor shall they be construed as, modifying the terms of the Development
Contract between the Authority and the Developer. The terms in this Amended and Restated
Assessment Agreement shall have the same meanings given to them in the Development Contract
unless a different meaning is clear from the context.
S. This Amended and Restated Assessment Agreement shall inure to the benefit of and
be binding upon the successors and assigns of the parties.
F G, INC. LINO LAKES ECONOMIC
DEVELOPMENT AUTHORITY
By .By
Its President Kim Sullivan, President
By By
Its Secretary -Treasurer David Pecchia, Acting Executive
Director
STATE OF MINNESOTA
) SS
COUNTY OF
The foregoing instrument as acknowledged before me this day of
1998, by Kim Sullivan and David Pecchia, the President and Acting Executive Director,
respectively, of the Lino Lakes Economic Development Authority, a public body politic and
corporate under the laws of Minnesota, on behalf of the Authority.
Notary Public
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STATE OF MINNESOTA )
) SS
COUNTY OF )
The foregoing instrument was executed this day of , 1998, by
and , the President and
respectively, of F & G, inc., a Minnesota corporation, on behalf of the corporation.
Notary Public
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Lakes, Minnesota.
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CERTIFICATION BY ASSESSOR
The undersigned, having reviewed the plans and speciffcauons for the improvements
constructed and the market value assigned to the land upon which the improvements are
constructed, and being of the opinion that the minimum market value contained in the foregoing
Agreement appears reasonable, hereby certifies as follows: The undersigned Assessor, being legally
responsible for the assessment of the above described property, hereby certifies that the market
value assigned to such land and improvements shall upon substantial completion of Buildings A, B
and C be not less than Two Million Two Hundred Eighty Five Thousand Three Hundred Dollars
($2,285,300) until termination of this Agreement.
STATE OF MINNESOTA
)ss
COUNTY OF
Anoka County Assessor wing as
Assessor for the City
of Lino Lakes, Minnesota
The foregoing instnunent was acknowledged before me this day of December, 1998
by , the Anoka County Assessor acting as the assessor of the City of Lino
Notary Public
Dec-21-98 03:26pm From-KENNEDY : GRAVEN
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EXHIBIT A TO
AMENDED AND RESTATED ASSESSMENT AGREEMENT
The Property subject to the foregoing Amended and Restated Assessment Agreement is legally
described as follows:
Thai pan of Outlot A, Apollo Business Park, Anoka County, Minnesota which lies easterly and
southeasterly of the following described Line "A" and westerly and southwesterly of the following
described Line " 13":
Line "A":
Commencing at the Northwest comer of said Outlot A; thence on an assumed bearing of South 89
degrees 14 minutes 00 seconds East along the north line of said Outlot A fora distance of 150.00
feet to the point of beginning of the line to he described; thence South 00 degrees 02 minutes 36
seconds East 500.14 feet; thence South 44 degrees 57 minutes 24 seconds Wcst 203.01 feet to a
point on the southwesterly line of said Oudot A and there terminating.
Line "B"
Commencing at the Northwest comer of said Outlot A; thence on an assumed bearing of South 89
degrees 14 minutes 00 seconds East along the north line of said Oudot A for a distance of 460.00
feet to the point of beginning of the line to be described; thence South 00 degrees 02 minutes 36
seconds East 355.00 feet; thence South 26 degrees 52 minutes 56 seconds East 192.05 feet to the
southeasterly line of said Oudot A and there terminating.
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