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HomeMy WebLinkAbout09-28-1998 EDA MinutesCITY 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.