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HomeMy WebLinkAbout10-13-1997 EDA MinutesCITY OF LINO LAKES ECONOMIC DEVELOPMENT AUTHORITY MINUTES DATE: October 13, 1997 MEMBERS PRESENT: J. Landers, S. Kuether, J. Bergeson, A. Neal MEMBERS ABSENT: C. Lyden OTHERS PRESENT: B. Wessel, M. Divine, R. Schumacher, Dave McGillvery (Springstead), Ron Batty (Kennedy & Graven) CONSIDERATION OF MINUTES EDA Member Neal moved to approve the minutes of August 25, 1997. EDA Member Kuether seconded the motion. Motion passed unanimously. PUBLIC HEARING ON THE PROPOSED SALE OF PROPERTY IN THE APOLLO BUSINESS PARK TO RICE. INDUSTRIES Mr. Wessel explained that Rice Industries is purchasing the last remaining parcel, totaling 1.9 acres, in the city owned portion of the Apollo Business Park. The city is selling the land for $39,000/acre, plus assessments. A public hearing is required when the city is writing down the cost of city -owned property. EDA President Landers opened the hearing at 6:04 p.m. No one was in the .audience to speak. EDA Member Kuether asked when the cost of the land would be raised. Mr. Wessel noted that since it was the last piece, it was up to G.M. Development if they wanted to raise the price on the privately owned land. EDA Member Neal moved to close the hearing. EDA Member Bergeson seconded the motion. Motion .passed.unanimously Hearing closed at 6:05 p.m. RESOLUTION NO. 97-19 AUTHORIZING SALE OF PROPERTY TO RICE INDUSTRIES EDA Member Kuether moved to approve Resolution No. 97-19. EDA Member Bergeson seconded the motion. Motion passed unanimously. CONSIDERATION OF CONTRACT FOR PRIVATE DEVELOPMENT BETWEEN LINO LAKES EDA AND RICE INDUSTRIES Mr. Wessel explained the contract outlines the conditions forpublic assistance. The agreement sells 1.9 acres of land to Rice Industries at the cost of 1.63 acres, plus assessments on the 1.9 acres. With administrative fees, the purchase price is $122,830. The agreement calls for an upfront subsidy of $51,260 for assessments, $8,583 towards land costs, and $8,000 in fees, for a total of $67,843. The TIF subsidy is 12% of the total project costs. EDA Member Bergeson moved to approve the development agreement. EDA Member Kuether seconded the motion. Motion passed .unanimously. CONSIDERATION OF RESOLUTION NO. 97-13 ADOPTING A MODIFIED PLAN FOR TIF DISTRICT NO. 1-7 Mr. Wessel explained this modification of theplan for TIF District 1-7 is in response to the development proposal for Rice Industries to construct a 10,000 square foot building. EDA Member Bergeson moved to approve Resolution No. 97-13. EDA Member Kuether seconded the motion. Motionpassed_ unanimously. CONSIDERATION OF RESOLUTION NO. 97-14 ADOPTING MODIFIED PLANS FOR TIF DISTRICT NOS. 1-1.AND .1-2. Mr. Wessel explained that these plan modifications will authorize transfer of $630,000 from TIF District 1-1 (Rice Lake Estates) and $370,000 from TIF District 1-2 (Sunrise Meadows). The funds will be used for public improvements in The Village. EDA Member Kuether asked what it means to modify a district. Mr. Batty explained that in 1995 the EDA modified the budget to authorize additional expenditures within the Development District. This is being done again to transfer accrued funds in preparation of closing out the districts. By approving the modification the EDA is making a finding that the use of these funds for public improvements in The Village is consistent with the goals the city is trying to achieve. EDA Member Kuether moved to approve Resolution No. 97-14. EDA Member Neal seconded the motion. Motion passed unanimously. CONSIDERATION OF RESOLUTION NO. 97-15 REQUESTING ANOKA COUNTY DECERTIFY TIF DISTRICT NO. 1-1 Mr. Wessel said TIF District No. 1-1 was established in 1987 for the authorization of the sale of bonds for sanitary sewer improvements within Rice Lake Estates. After adoption of the TIF Plan, the developer of the subdivision financed the improvements, so the city did not sell bonds. In 1995 the district was modified to reimburse the service area fund $1.47 million for construction of the West Central Trunk sewer. After the modification just passed, this resolution states that the objectives of the district have been accomplished and will decertify it effective December 31, 1997. EDA Member Bergeson moved to approve Resolution No. 97-15. EDA Member Neal seconded the motion. Motion passed unanimously. CONSIDERATION OF RESOLUTION NO. 97-16 REQUESTING ANOKA COUNTY DECERTIFY TIF DISTRICT NO. 1-2 Mr. Wessel explained this TIF District was established in 1998 for the authorization of the sale of bonds for improvements in Sunrise Meadows. As with Rice Lake Estates, the improvements were financed by a developer, and no bonds were sold. $630,000 was transferred from the district in 1995 to reimburse the service area fund for the West Trunk sewer project. After tonight's modification, this district will be decertified effective December 31 1997. EDA Member Kuether moved to approve Resolution No. 97-16. EDA member Neal seconded the motion. Motion passed unanimously. CONSIDERATION OF RESOLUTION NO. 97-17 REQUESTING ANOKA COUNTY DECERTIFY TIF DISTRICT NO. 1-3 Mr. Wessel explained this district was established in 1989 to assist with the redevelopment of the Ross' Corner site. Since no development has occurred, the district has been inactive and no TIF has been collected. This resolution asks Anoka County to decertify it immediately. EDA Member Kuether questioned why the city was decertifying it when no development had occurred. Mr. Batty explained he believed the district was dead since 1992. It has failed the 3-year test for development, but the county is charging an annual administrative fee. Mr. Wessel added that when a prospect becomes interested in the site, the city has the potential for developing a new district that includes the site. EDA Member Kuether moved to approve Resolution No. 97-17. EDA Member Neal seconded the motion. Motion passed unanimously. CONSIDERATION OF RESOLUTION NO. 97-18 PROVIDING FOR THE ISSUANCE. AND_ SALE OF $3.5MILLION LEASE REVENUE BONDS Mr. Wessel explained the issuance of $3.5 million in 20-year bonds is to assist in the financing of the construction of the public facilities complex in The Village. The interest rate is estimated at 5.9%. The bonds will be scheduled for sale on Monday, Nov. 10. EDA Member Kuether questioned if the project budget was cut, would the city still bond for the $3.5 million and then take less out in reserves. Mr. Schumacher responded that the city was bonding for what it projects the project to be when it is bid out in the spring. Mr. McGillvery said the city would not be able to adjust the bonds downward at a later date, but the bonds are callable, so it but could put the money in the bank and wait for the call date. The city could call earlier, but the interest rate would be higher. EDA Member Neal moved to approve. Resolution No. 97-18. EDA Member Bergeson seconded the motion. Motion passed unanimously. Meeting adjourned, 6:25 p.m.