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HomeMy WebLinkAbout02-10-1997 EDA PacketAGENDA ECONOMIC DEVELOPMENT AUTHORITY MONDAY FEBRUARY 10, 1997 6:00 P.M. 1. Call to Order and Roll Call 2. Consideration of Minutes of July 8, 1996 3. Consideration of Annual Appointments: A. EDA officers: President, Vice -President, Treasurer, Assistant Treasurer, and Secretary B. Official Newspaper C. Official Depositories 4. Consideration of Resolution No. 97-01 approving of a request to transfer title from Rush Enterprises to Harry L. Chapple and Karen H. Chapple 5. Consideration of Resolution No. 97-02 authorizing preparation of a modified Tax Increment Financing Plan for TIF District No. 1-7 (Apollo Business Center) 6. Consideration of Resoluton No. 97-03 setting a public hearing on March 24, 1997 for the proposed sale of property in the Apollo Business Park to Fogerty Investments 7. Adjourn DATE: MEMBERS PRESENT: MEMBERS ABSENT: OTHERS PRESENT: CITY OF LINO LAKES ECONOMIC DEVELOPMENT AUTHOR MINUTES ay, July 8, 1996 J. Landers, J. Bergeson, S. Kuether, C. Lyden, A. Neal None Brian Wessel, Ron Batty, Ma CONSIDERATIONOF MINUTES EDA Member Neal moved to approve the minutes from the M Kuether seconded the motion. Motion passed unaniin CONSIDERATIW OF CON1`RACT FOR PRIVATE DEVELOPMENT BETWEEN LINO LAKES EDA 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 T1F`assistance amounts to 14% of the total project cost. Mr. Batty noted that EAM had requested some minor chhanges 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 luojeet and larger projects generally showed quicker returns. EDA Member Lyden questioned ifMr. Wessel saw a time in the fixture 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 T BUSINESS PARK TQ EAM EDA Presideni Landers opened the public hearing at 6:10 p.m. No one came forward to comment. EDA Member Kuether moved to close the hearing. EDA Member Neal seconded the motion. Motion► passed unanimously. SED SALE OF PROPERTY IN THE APOLLO 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. A STAFF ANIMATOR: Brian Wessel DATE: 2/107 TOPIC: Consideration of Annual Appointments ling to the Lino Lakes EDA by-laws, the EDA is to elect a President, Vice ;;-Secretary, Treasurer and Assistant Treasurer each year. The offices of president, vice president` and treasurer must be held by members of the board. Currently Mayor John Landers is president of the EDA, Sally Kuether is vice president and Andy Neal is treasurer. The office of secretary currently is held by Mary Divine. Marilyn Anderson is Assistant treasurer. The position of executive director has been held by Randy Schumacher. This position does not have to be reappointed annually. OPTIONS. 1. Elect a President, Vice -President, Secretary, Treasurer and Assistant Treasurer to serve in 1997. 2. Return to staff for f rther consideration. RECO NDATION: 1. Option 1 �A'is required to publish public notices regarding its meetings. In the past, the EDA has designated the official newspaper to be the same as the city;s official newspaper. OPTION 1. Appoint the Quad Community Press as the EDA official newspaper 2. Return to staff for further consideration RECOMMENDATION: Option 1 AGENDA ITEM 3C STAFF ORIGINATOR: Brian Wess+ DATE: 2/10/97 TOPIC: Consideration of Official Depositories BACKGROUND: The I depositories approved for 1997 by the City Council is as follows: Norwest Bank, First Bank NA, Firstar Bank, Merrill Lynch, Dain Bosworth, Juran and Moody, and Prudential Bache. These depositories are used for check, savings and investing city dollars. On occasion the EDA and the city have financial ttansactions that will require` the EDA to have designated legal depositories. OPTIONS: 1. Approve the list of legal depositories 2. Return to staff for further consideration RECOMN ENDATION: Option 1 AGEN STAFF ORIGINATOR: Brian Wessel DATE: 2/10/97 TOPIC: Consideration of Resolution No. 97-01 approving a request to transfer title from Rush Enterprises to Harry and Karen Chapple the EDA sold property to Rush Enterprises for the Progressive ilding in the Apollo Business Park. They have now requested that the land be put into the name of the president of Progressive Engineering Harry Chapple, and his wife Karen Chapple. The deve opment agreement between the EDA and Rush Enterprises allows for transfer o title any time after the Certificate of Occupancy is issued subject to P Y 1 approval by the EDA. This resolution authorizes transfer of the property sold by the EDA tb Harry and Karen Chapple. OPTIONS: 1. Approve resolution No. 97-01 2. Return to staff for further consideration RECOMMENDATION Option 1 Member introduced the following resolution and moved its adoption: LINO LAKES ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. 9rf - O / WHEREAS, on or about July 3, 1996, the Lino Lakes Economic Development Authority (the "EDA") and Rush Enterprises, Inc. ("Rush") entered into that certain Contract for Private Development by and between Lino Lakes Economic Development Authority and Rush Enterprises Inc. (the "Development Agreement"); and WHEREAS, the Development Agreement required the EDA to transfer certain property legally described on Exhibit A attached hereto (the "Property") to Rush; and WHEREAS, the Development Agreement and other documents contemplated transfer of the Property after completion of certain improvements (the "Minimum Improvements") by Rush to Harry L. Chapple and Karen H. Chapple, husband and wife (the "Chapples"); and WHEREAS, the Minimum Improvements have been completed and the EDA has issued a certificate of completion for same; and WHEREAS, Minnesota Statutes, section 469.105, subd. 5 requires that any transfer of the Property within one year of its sale to Rush be approved by the EDA; and WHEREAS, the Development Agreement states that such approval shall not be unreasonably withheld; and WHEREAS, there exists no reason known to the EDA to withhold approval of the transfer of the Property to the Chapples. NOW, THEREFORE, BE IT RESOLVED By the Lino Lakes Economic Development Authority as follows: 1. Transfer of the Property by Rush to the Chapples is hereby approved. 2. EDA staff and consultants are directed and authorized to take any additional steps necessary or convenient in order to effect this transfer. RHB115856 LN140-45 Dated , 1997. President Attest: Executive Director The motion for the adoption of the foregoing resolution was duly seconded by member and upon vote being taken thereon, the following voted in favor thereof: and the following voted against same: Whereupon said resolution was declared duly passed and adopted. RHB115856 LN140-45 EXHIBIT A PROPERTY LEGAL DESCRIPTION That part of Outlot B, Apollo Business Park, Anoka County, Minnesota lying southwesterly of Line A as described below and northeasterly of Line B as described below: LINE A Commencing at the most northerly corner of said Outlot B; thence on an assumed bearing of South 58 degrees 02 minutes 08 seconds West along the northwesterly line of said Outlot B a distance of 126.35 feet; thence southwesterly along said northwesterly line and along a tangential curve concave to the southeast, having a radius of 799.00 feet, a central angle of 17 degrees 50 minutes 56 seconds and an arc length of 248.91 feet; thence South 40 degrees 11 minutes 12 seconds West along said northwesterly line and tangent to said curve 75.00 feet to a point hereinafter referred to as Point "A", said Point "A" also being the point of beginning of Line A to be described; thence South 49 degrees 48 minutes 48 seconds East 323.37 feet to the southeasterly line of said Outlot B and there terminating. LINE B Commencing at Point "A" as described above; thence South 40 degrees 11 minutes 12 seconds West along the northwesterly line of said Outlot B a distance of 262.84 feet; thence southwesterly along said northwesterly line and along a tangential curve concave to the southeast having a radius of 799.00 feet, a central angel of 4 degrees 36 minutes 00 seconds and an arc length of 64.14 feet to the point of beginning of the Line B to be described; thence South 49 degrees 48 minutes 48 seconds East and not tangent to said curve 295.14 feet to the southeasterly line of said Outlot B and there terminating. RHB115856 LN140-45 AGENDA ITENM 5 STAFF ORIGINATOR: Brian Wessel DATE: 2110/97 TOPIC: Resolution No. 97-02 authori D b Increment Finnancino Plan for TIF Distr 1-7` fd The city has a request for tax increment fin cing assistance from Fogerty Investments to build on two pieces of property in tt llo Business Park. Fogerty Investments built a 32,000 square foot bullring in 1996. Half of the building is owner occupied and half has been teased as Wm/warehouse facilities. Fogerty Investments is now interested in developing the Last two remaining pieces of land within the business park for a combination of owner occupied and lea space. This resolution authorizes preparation of the modification of this plan. Once the plan is prbpared it will be sent to School District #12 and Anoka County for review. Liter tonight the City Council will be srsked to set a date for a public hearing. P 1. Adopt Resolution No. 97-01'authorizing pre increment financing plan for TIF District No. 1-7 2. Returr to staff for further consideration. r of a modified tax Member introduced the following resolution and moved its adoption: LINO LAKES ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO.97-02 RESOLUTION AUTHORIZING PREPARATION OF A MODIFIED TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. 1-7 WHEREAS, on May 22, 1995 the city council of the City of Lino Lakes (the "City") established Tax Increment Financing District No. 1-7 ("TIF District No. 1-7") in order to promote development within areas of the community which have not developed solely through private efforts in a manner which is consistent with their prominence; and WHEREAS, it has been necessary to amend the Plan for the TIF District No. 1-7 in the past in order to assist development and to achieve the purposes for which TIF District No. 1-7 was established; and WHEREAS, it has been proposed that the TIF Plan be modified again to assist an industrial facility pursuant to Minnesota Statutes, sections 469.174 through 469.179 (the "TIF Act"). NOW, THEREFORE, BE IT RESOLVED by the Lino Lakes Economic Development Authority (the "EDA") as follows: 1. Staff and Kennedy & Graven, Chartered are hereby authorized and directed to prepare a modified tax increment financing Plan (the "Plan") for TIF District No. 1-7. 2. The executive director of the EDA is authorized and directed to schedule a meeting on March 24, 1997 at 6 p.m. in the council chambers at city hall, at which time the EDA will consider adoption of the modified Plan for TIF District No. 1-7. 3. The staff and consultants are authorized and directed to take any and all steps necessary to bring the modified Plan before the EDA at the March 24, 1997 meeting. 4. The City is urged to schedule a public hearing on the modified Plan to be held as soon after consideration of these matters by the EDA as reasonably possible. Dated: February 10, 1997 President ATTEST: Executive Director The motion for adoption of the foregoing resolution was duly seconded by member and upon vote being taken thereon, the following voted in favor thereof: and the following voted against same: Whereupon said resolution was declared duly passed and adopted. STAFF ORIGINATOR: Brian DATE: 2/10/97 TOPIC: Resolution No. 97-03 se ng a c proposed sale of property to Fob GROUND: wring for the This resotwtion sets a public hearing for Monday, March 24, 1997 for public comment regarding the write down of public land in the Apollo Business Park. Investments is purchase two sites in the proposing to .Apollo Business. the ERA is proposing to assist the company with a portion of the land and assessments. OPTION: 1. Adopt Resolution No. 97-03 c 24, 1997 at 6:00 p.m. ling for a public hearing to be held on March 2, Return to staff for further consideration RECOMMENDATION: Option 1 Member introduced the following resolution and moved its adoption: LINO LAKES ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. 97-03 RESOLUTION ESTABLISHING PUBLIC HEARING FOR THE SALE OF PROPERTY WHEREAS, the Lino Lakes Economic Development Authority (the `EDA") established Tax Increment Financing District No. 1-7 ("TIF District No. 1-7") and adopted a tax increment financing plan (the "TIF Plan") on May 22, 1995; and WHEREAS, the EDA intends to modify the TIF Plan on March 24, 1997 to authorize financial assistance to Fogerty Investments; and WHEREAS, the financial assistance the EDA intends to offer to Fogerty Investments will involve the sale of land owned by the EDA to Fogerty Investments at a reduced price. NOW, THEREFORE BE IT RESOLVED by the Lino Lakes Economic Development Authority as follows: 1. A public hearing shall be held on the 24th day of March, 1997 in order to consider the sale of property to Fogerty Investments. 2. The executive director is hereby authorized and directed to cause notice of the public hearing to be published in the official newspaper at least 10 days but not more than 20 days prior to the hearing. 3. Staff is authorized and directed to take all actions necessary and appropriate in order to bring this item before the EDA at its meeting on the 24th day of March, 1997. Dated: February 10, 1997 President ATTEST: Randall Schumacher, Executive Director The motion for the adoption of the foregoing resolution was duly seconded by member and upon vote being taken thereon, the following voted in favor thereof: and the following voted against same: Whereupon said resolution was declared duly passed and adopted.