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HomeMy WebLinkAbout08-27-1998 EDA PacketAGENDA ECONOMIC DEVELOPMENT AUTHORITY THURSDAY, AUGUST 27, 1998 5:30 P.M. 1. Call to Order and Roll Call 2. Consideration of Minutes of Monday, August 24, 1998 3. Discussion Item: Development proposal, JADT Development Group (Shopping Center) 4. Adjourn CITY OF LINO LAKES ECONOMIC DEVELOPMENT AUTHORITY MINUTES DATE: Monday, August 24, 1998 MEMBERS PRESENT: C. Lyden, C. Dahl, K. Sullivan, J. Bergeson, A. Neal MEMBERS ABSENT: None OTHERS PRESENT: Brian Wessel, Mary Divine, Ron Batty, Mike Mulrooney CONSIDERATION OF MINUTES EDA Member Bergeson moved to approve the minutes from the July 27, 1998 EDA meeting. EDA Member Lyden seconded the motion. Motion passed unanimously. DEVELOPMENT PROPOSAL, JADT DEVELOPMENT GROUP (SHOPPING CENTER) Mr. Wessel introduced Mike Mulrooney from Advance Resources and explained that Mr. Batty and Mr. Mulrooney had been working with staff on a development proposal for Tim Baylor of JADT Development Group. Because the EDA meeting was starting late, leaving no time for discussion before the city council meeting was to begin, Mr. Wessel recommended the meeting be continued to Thursday, August 27, 1998 at 5:30 p.m. EDA Member Dahl moved to continue the EDA meeting. EDA Member Lyden seconded the motion. Motion passed unanimously. ADJOURNMENT EDA Member Lyden moved to adjourn at 6:37 p.m. EDA Member Dahl seconded the motion. Motion passed unanimously. AGENDA ITEM 3 STAFF ORIGINATOR: Brian Wessel DATE: 8/27/98 TOPIC: Discussion Item: Development Proposal, JADT Development Group (Shopping Center) BACKGROUND: Tim Baylor of JADT Development Group has been working with his development team for the past year to assemble land and produce a conceptual plan for the shopping center in the Town Center. He is requesting economic assistance in the development of the shopping center. Various alternatives for providing public assistance to the project have been considered. Lino Lakes has limited ability to provide financial assistance to the project, since tax increment financing is not available. The developer has estimated assessments for Phase 1 at $610,000, plus related engineering costs. Preliminary discussions with Bruce Munneke, the county assessor, reveal that a fully developed Phase 1 should generate net property taxes of approximately $335,723 per year. Net city taxes generated from a fully developed Phase 1 would amount to approximately $69,600 per year based on 1998 tax rates. Staff recommends the city consider a "non-TIF" pay-as-you-go assistance. In this arrangement, JADT would be assessed for public infrastructure improvements to the shopping center. The city could reimburse the city portion of taxes generated until the developer had recouped the cost of assessments, or 10 years, whichever came first. The city's commitment would be formulated in an agreement effective only if development began within a specified time frame. The pros and cons of the proposal: Disadvantages: • It would be 10 years before the city received its portion of the taxes on the shopping center site Advantages: Residents of the city would be provided the shopping opportunities and services not presently available in Lino Lakes. Professionals in the development community have estimated it may be five or more years for a shopping center to develop if incentives are not provided. • The city would have control over development that it would not have without public participation. A development agreement can include expectations of the developer in the areas of architectural and landscape standards, shared parking, transit services and other city requirements. • Only the taxes that are generated by development are reimbursed. The city will be under no obligation to pay more than the taxes that are generated. • The Forest Lake School District and the county receive their portions of the additional tax base, adding to overall tax base stabilization within the city. The process for providing assistance through the reimbursement of the city portion of the taxes begins with the EDA authorizing the preparation of a Redevelopment Project Plan. A redevelopment area could include additional land within the Town Center or along Lake Drive, providing the city with an opportunity to have more control over the type and quality of development that occurs. OPTIONS: 1. Authorize the preparation of a Redevelopment Project Plan and direct staff to proceed with the negotiations for a development agreement with JADT. 2. Return to staff for further consideration RECOMMENDATION: This is a discussion item only. EDA can take action if they desire by directing staff to move forward with preparation of the Redevelopment Project plan and a development agreement.