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HomeMy WebLinkAbout07-08-1996 EDA MinutesCITY OF LINO LAKES ECONOMIC DEVELOPMENT AUTHORITY MINUTES DATE: Monday, July 8, 1996 MEMBERS PRESENT: J. Landers, J. Bergeson, S. MEMBERS ABSENT: None OTHERS PRESENT: Brian Wessel, Ron Batty, Mary LaForest CONSIDERATI kF MINUTES EDA Mather Neal moved to approve the minutes from the Member Kuether seconded the motion. Motion passed unanifno COTION OF CONTRACT FOR PRIVATE DEVELOINENT BETWEEN LINO LAKES EDA AND EMERGENCY APPARATUS MAINTENANCE (EAM) Mr. Wessel explained to the board that EAM is purchasing 1.12 acres in the Apollo Business Park. Land, assessments and administrative fees total $75,276.39 In this development agreement the EDA is removing the special assessments of$27,596.39 on the property, and is writing down $9,654 toward EAM's purchase of the land and administrative fees, for a total of $37,250.39 in TIF assistance. EAM will pay the remaining $38,026 on the land at closing. This TIF assistance amounts to 14% of the total project cost. Mr. Batty noted that EAM had requested some minor changes in the development agreement. EDA Member Kuether questioned why TIF on this project was 14% of the project cost, and 12% on Blue Heron, yet payback time was so different on the two projects. Mr. Wessel explained that EAM was a smaller twoject and larger projects generally showed quicker returns. EDA Member Lyden questioned ifMr. Wessel saw a time in the future when projects would not require TIF. Mr. Wessel said that conditions for TIF assistance were becoming more stringent and the city was getting to the point where it could provide less assistance on some projects. EDA Member Kuether moved to approve the development agreement contingent upon the changes agreed to between EAM and the EDA. EDA Member Lyden seconded the motion. Motion passed unanimously. PUBLIC HEARING ON THE PROPOSED SALE OF PROPERTY IN THE APOLLO BUSINESS PARK TO EAM EDA President Landers opened the public hearin comment. EDA Member Kuether moved to close motion. Motion passed unanimously. 6:10 p.m. No one came forward to hearing. EDA Member Neal seconded the CONSIDERATION OF RESOLUTION NO. 96-06 AUTHORIZING THE SALE OF PROPERTY TO EAM Mr. Wessel explained that this resolution allowed for the sale of city -owned land to EAM. Closing is scheduled for late July. EDA Member Kuether moved to approve Resolution No. 96- 06. EDA Member Neal seconded the motion. Motion passed unanimously. CONSIDERATION OF THE CONTRACT FOR PRIVATE DEVELOPMENT BETWEEN LINO LAKES EDA AND BLUE HERON DEVELOPMENT CORPORATION Mr. Wessel explained that the cost for 3.09 acres of land, plus assessments and administrative fees for the Blue Heron II project totaled $205,081.79. The EDA's TIF subsidy totals $146,421.79. The assessments and reimbursement of administrative fees will be disbursed to Blue Heron upfront when the Certificate of Completion is issued. A total of $61,850 toward the cost of the land will be reimbursed on a pay-as-you-go basis. Blue Heron is contributing $58,660 in costs. The TIF subsidy is 12% of the total project cost. Mr. Wessel noted that the city was also requiring that 60% of the building be preleased to qualified tenants before TIF assistance kicks in. EDA Member Bergeson questioned what "qualified" tenants meant. Ms. LaForest explained that because TIF assistance is used, tenants within a project must be qualifying uses, which are manufacturing, warehousing or distribution companies. Only 15% of the square footage of a building can be used for nonqualifying uses. Tenants must also meet the city's zoning requirements. Mr. Batty added that with an owner - occupied building the city could be comfortable knowing its use, but tenants add an extra element that must be considered. It is the developer's responsibility to meet the TIF criteria. Mr. Wessel added that staff tours the facilities of potential tenants. EDA Member Bergeson questioned whether a tenant's lease was as long as the TIF payback period. Mr. Batty said the city had not taken that approach, but that 30 days notice was required before a change of tenants. EDA Member Lyden questioned how much in taxes this project generated. Ms. LaForest responded approximately $75,000 per year. EDA Member Kuether asked if more leasable space would be built in Apollo Business Park. Mr. Wessel said he believes the city has about the right percentage and in 1996 its policy is to require developers to share the cost of land and assessments if they want to build leasable space. EDA Member Kuether moved to approve the Blue Heron II development agreement. EDA Member Bergeson seconded the motion. Motion passed unanimously. ADJOURNMENT EDA Member Kuether moved to adjourn at 6:26 p.m. EDA Member Lyden seconded the motion. Motion passed unanimously.