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HomeMy WebLinkAbout10-26-1998 EDA MinutesCITY OF LINO LAKES ECONOMIC DEVELOPMENT AUTHORITY MINUTES DATE: Monday, October 26, 1998 MEMBERS PRESENT: K. Sullivan, J. Bergeson, C. Dahl, C. Lyden, A. Neal MEMBERS ABSENT: OTHERS PRESENT: Brian Wessel, Mary Divine, Mark Ruff CONSIDERATION OF MINUTES EDA Member Bergeson moved to approve the minutes from the September 28, 1998 EDA meeting. EDA Member Dahl seconded the motion. Motion passed unanimously. CONSIDERATION OF RESOLUTION NO. 98-05 AUTHORIZING PREPARATION OF 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 three businesses interested in locating in Apollo Business Center. This resolution authorized preparation of the modification of Development District No. 1 to delete the remaining G.M. Development parcels 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 Midwest Veneer and Pressing intends to purchase four acres for a 40,000 square foot facility. H&L Mesabi was considering three acres for a 30,000 square foot facility, and All Test and Inspection was planning to purchase two acres for a 6,500 square foot building. Mr. Ruff explained that the budget in this new TIF plan would be large enough to cover all future development within the business park, which will eliminate the need for modifications of the district in the future. Development agreements will be completed later, spelling out the detail of the TIF assistance. The local contribution, which is 10 percent of the increment, will be included as part of the development agreement. EDA President Sullivan questioned if TIF was needed in Rehbein's Lake Business Park. Mr. Ruff stated that TIF allowed the city to control the type and quality of development that would go in the park. EDA Member Lyden said that the original TIF objective was to use it as a tool for development, then growth would proceed on its own. Since other cities use it liberally, Lino Lakes needs it to continue to compete. Mr. Wessel said the city was conservative in its approach to TIF. Mr. Ruff noted using TIF is a policy question as to whether the city wanted to guide development, or wait for business to develop on its own. EDA President Sullivan said she wanted the local contribution noted in the TIF and a sunset clause on undeveloped parcels. Mr. Ruff stated the TIF law removed parcels that were undeveloped after four years. He suggested an annual review of the process. EDA Member Dahl asked how much this was costing the city. Mr. Wessel explained the city was not gaining the additional tax base over a period of time. EDA Member Bergeson moved to adopt Resolution No. 98-05, with the addition of an annual review and the inclusion of the local contribution within the plan. EDA Member Lyden seconded the motion. Motion passed unanimously. ADJOURNMENT EDA Member Lyden moved to adjourn. EDA Member Dahl seconded the motion. Motion passed unanimously.