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HomeMy WebLinkAbout10-26-1998 EDA PacketAGENDA ECONOMIC DEVELOPMENT AUTHORITY MONDAY OCTOBER 26, 1998 5:30 P.M. 1. Call to Order and Roll Call 2. Consideration of Minutes of September 28, 1998 3. Resolution No. 98-05 Authorizing the Preparation a Plan to Modify Development District No. 1 and to establish Tax Increment Financing District No. 1-9 (Apollo Business Center and Lakes Business Park) 4. Adjourn CITY OF LINO LAKES ECONOMIC DEVELOPMENT AUTHORITY MINUTES DATE: Monday, September 28, 1998 MEMBERS PRESENT: K. Sullivan, J. Bergeson, C. Dahl, C. Lyden, A. Neal MEMBERS ABSENT: OTHERS PRESENT: Brian Wessel, Mary Divine, Jerry Shannon CONSIDERATION OF MINUTES EDA Member Dahl moved to approve the minutes from the August 27, 1998 EDA meeting. EDA Member Bergeson seconded the motion. Motion passed with EDA Members Lyden and Neal abstaining due to their absence at the meeting. CONSIDERATION OF RESOLUTION NO. 98-04 AUTHORIZING PREPARATION OF A REDEVELOPMENT PROJECT PLAN Mr. Wessel explained to the Authority that this resolution reframed the original resolution that was presented for discussion on August 27, 1998. This Redevelopment Project which included all the land within the boundaries of the Town Center would be a planning tool that will provide an incentive program for commercial development in the Town Center. It will allow the EDA the opportunity to provide assistance where appropriate to control the type and quality of development in the Town Center. This is not a site or project specific plan, but an overall program that will provide a kick start for quality commercial development on the interchange, as well as leverage for negotiation on issues such as use, design and landscaping. Mr. Wessel defined the proposed criteria for incentives within the project area, which could include: 1 The redevelopment project upholds the intent of the city's Comprehensive Plan 2. The development fits within the long term economic development goals for tax base stabilization. 3. The development serves the city by providing needed services to the community 4. The development enhances livability as outlined by the Town Center Group. 5. The development meets all criteria outlined in the Town Center Development Guidelines and Standards. 6. The public assistance fits within the city's overall financial plan. 7. No funding from other sources is available. With the authorization to proceed with the Redevelopment Project Plan, the EDA would have negotiation strength on issues such as land use, architectural and design control, pay- as -you -go assistance limited to the actual net city taxes generated, and time frames for development. Once the EDA approves the preparation of the plan, a budget, timetable and criteria will be formalized for the EDA's approval, and a public hearing will be held by the city council. Mr. Wessel will work with Jerry Shannon to study the financial implications and bring the plan to the City Council for a November hearing. EDA Member Lyden said that authorizing preparation of this plan was premature until the city has the information from Mr. Shannon. He moved to deny the authorization of the plan. EDA Member Dahl seconded the motion. Motion failed, with EDA Members Bergeson, Neal and Sullivan voting no. EDA Member Bergeson moved to adopt resolution 98-04. EDA Member Neal seconded the motion. During further discussion, Lyden asked if the taxpayer would pay for the authorization of the plan. Mr. Wessel responded that some of the funding would come from the community development budget, some from the Livable Communities grant, and some from the developer. He estimated it would cost $10,000. EDA President Sullivan asked for an update at each work session. Audience member Pat Rickaby approached the EDA and suggested the study include ways this could mitigate the LGA/HACA penalties, since in this type of redevelopment project, the school district doesn't lose tax dollars. EDA Member Bergeson said the difference between the old and new request was no dollars for the shopping center project were included in the latter. The plan would be put into place to provide incentives where needed to get the type of development the city wants. Mr. Wessel informed the board that the city was on the verge of Phase 2 of the Town Center, and that he and Ms. Divine had met with several nationally known planners and market analysts over the past few weeks. The Livable Communities funds will be used for their expertise in Traditional Neighborhood Development (TND). Ms. Divine explained to the Authority that TNDs were a form of planning that recalled the way cities were once built, with pedestrian orientation, mixed use, live/work environments and a strong civic focus. The Town Center Group will be meeting for the development of Phase 2. EDA Member Neal asked if a business person could be placed on the committee. Mr. Wessel will explore it. Mr. Wessel added that the intent is for the city to come out ahead on its investment in the Town Center. Public money will be needed for bride work, etc., and he would like to see 80% of public dollars come from other sources. EDA Member Lyden said he was against the timetable and the means to get there, and incentives needed to be looked at in terms of the overall city plan. He said he believes the results in economic development have not been great enough to favor this incentive. EDA President Sullivan said that whether the EDA approved this or not, it doesn't mean they are against economic development, they just prefer another way of doing it and want to limit use of incentives. The city wants commercial when the area can support it. Mr. Bergeson asked if the city can treat different parcels and tenants differently. Mr. Shannon discussed the EDA's ability to establish policies, goals and criteria for incentives, and that projects could receive funding on an as needed basis. Mr. Bergeson said he favored incentives to control less than desirable projects. Mr. Lyden said zoning protects the city from undesirable projects. EDA Member Dahl said she would prefer to wait on incentives because she doesn't want the city to dig itself into a deeper hole financially. She believes that McDonald's will come, and others will follow. Motion carried, with Lyden and Dahl voting no. ADJOURNMENT EDA Member Lyden moved to adjourn. EDA Member Dahl seconded the motion. Motion passed unanimously. AGENDA ITEM 3 STAFF ORIGINATOR: Brian Wessel DATE: 10/26/98 TOPIC: Resolution No. 98-05 authorizing preparation of a Plan to Modify Development District No. 1 and establish Tax Increment Financing District No. 1-9 (Apollo Business Center and Lakes Business Park) BACKGROUND: The city has a request for tax increment financing assistance from three businesses interested in locating on the G.M. Development property in the Apollo Business Center. Midwest Veneer and Pressing, Inc. is currently located in Wyoming, Minnesota. The manufacturer of architectural panels intends to purchase four acres to construct a 40,000 square foot facility. All TenI st d pection conducts mobile structural testing of cranes, hoists, amusement park rides and farm equipment. It is currently located in Blaine and is planning on purchasing two acres for its 6,500 square foot building. H&L Mesabi is planning to purchase three acres to construct a 30,000 square foo facility for its warehouse/distribution center. H&L Mesabi sells and distributes conveyors and parts primarily for aggregate producers. The company's main office is in Hibbing, with operations also in Blaine. This resolution authorizes preparation of the modification of Development District No. 1 to delete the remaining G.M. Development parcels and the Rehbein business park parcels on the southwest quadrant of the 35W interchange from TIF District No. 1-7, and reconstitute them into a new TIF District No. 1-9. TIF District No. 1-7 was established in 1995 and no longer has the capacity to provide a competitive incentive. Once the plan is prepared it will be sent to School District #12 and Anoka County for review. Later tonight the City Council will be asked to set a date for a public hearing. OPTIONS: 1. Adopt Resolution No. 98-05 authorizing preparation of a modified Plan for Development District No. 1 and establish a increment financing plan for TIF District No. 1-9 2. Return to staff for further consideration. RECOMMENDATION: Option 1 Member adoption: introduced the following resolution and moved its LINO LAKES ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. 98-05 RESOLUTION AUTHORIZING PREPARATION OF A MODIFIED PROGRAM FOR DEVELOPMENT DISTRICT NO. 1 AND A PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. 1-9 WHEREAS, on January 26, 1987 the city council of the City of Lino Lakes (the "City") established Development District No. 1 ("Development District") and adopted a program ("The Program") for same; and WHEREAS, the area of the city within the Development District and previously established as Tax Increment Financing District No. 1-7, generally known as the Apollo Business Center and Lakes Business Park has not developed solely through private efforts in a manner which is consistent with its prominence within the city and which justifies the public expenditures for infrastructure improvements which have been made; and WHEREAS, it appears that it will be necessary to utilize tax increment financing to assist in the area to achieve the purpose for which the business parks were established; and WHEREAS, it has been proposed that the following parcels: 17-31-22-23-0012 7° •" 17-31-22-32-0004 a f' 18-31-22-41-0008 J 18-31-22-41-0009 ' 18-31-22-42-0002 ti currently within Tax Increment Financing District No. 1-7 be deleted from the District and incorporated into a new tax increment financing district ("TIF District No. 1-9") in order to offer developers assistance pursuant to Minnesota Statutes, sections 469.174 through 469.179 ("The TIF Act"). NOW, THEREFORE, BE IT RESOLVED by the Lino Lakes Economic Development Authority (the "EDA") as follows: 1. Ehlers & Associates, Inc. is hereby authorized and directed to prepare a modified program for Development District No. 1 and a tax increment financing Plan (the "Plan") for TIF District No. 1-9. a Q rf 2. The executive director of the EDA is authorized and directed to schedule a meeting on December 14, 1998 at 6 p.m. in the council chambers at city hall, at which time the EDA will consider adoption of the modified Program for the Development District and a Plan for TIF District No.1-9. �. 3. The staff and consultants are authorized and directed to take any and all steps necessary to bring the modified Program and the Plan before the EDA at the December 14, 1998 meeting. 4. The City is urged to schedule a public hearing on the modified Program and the Plato be held as soon after consideration of these matters by the EDA as reasonably possible. Dated: October 26, 1998 President ATTEST: Executive Director The motion for 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. La II • IN al Wilk !lical ENIOVRIBIliscrvAl mumiiirionoavr,,,, .IIM 11111111111111111111111111114 whillik los :Nam cum-ricpou L113 LIM Alit- - t,..,.1._,.E C ci. ilqL1 .ru CCM L •LI a , uusui- ell La I -1- simm-ig AIM. ;.cot.a.9-chxti .. -Igati111 0 11; .1.21LI'L ...... LI' cartrapliA rt jillaus•.. 0 i rij ...., . Li ,c, . cousin: OP14:":1•21 Si_ _Lir' Li' St 100 witom:253:3241eler--7—'-- 11" -11k V.: MIK/ 'UM ..r,... gra tq..11-• ml ouGm kj ocuing43164 Fakir: IligairP.P.R;;:SI Oggliggill: CHIN MI;