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HomeMy WebLinkAbout02-12-1996 EDA PacketAGENDA ECONOMIC DEVELOPMENT AUTHORITY MONDAY FEBRUARY 12, 1996 6:00 P.M. 1. Call to Order and Roll Call 2. Consideration of Minutes of December 18, 1995 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. 96-01 authorizing preparation of a modified Tax Increment Financing Plan for TIF District 1-4 (Apollo Business Center) to drop parcels from the district. 5. Consideration of Resolution No. 96-02 authorizing preparation of a modified Tax Increment Financing Plan for TIF District 1-7 to add parcels to the district and provide financial assistance to two industrial facilities 6. Set date for public hearing for the proposed sale of property in the Apollo Business Park to Progressive Engineering Technology, Inc. 7. Adjourn DATE: TIME: MEMBERS PRESENT: MEMBERS ABSENT: OTHER PRESENT: CITY OF LINO LAKES ECONOMIC DEVELOPMENT AUTHORITY MINUTES Monday, December 18, 1995 6:25 p.m. V. Reinert, L. Elliott, S. Kuether, J. Bergeson, A. Neal None Brian Wessel, Community Development Director Ron Batty, Bond Consultant Randy Schumacher, City Administrator Mary LaForest, Recording Secretary CONSIDERATION OF MINUTES EDA Member Elliott moved to approve the minutes from the November 13, 1995 meeting. EDA Member Kuether seconded the motion. Motion passed unanimously. CONSIDERATION OF RESOLUTION NO. 95-16 ADOPTING MODIFICATIONS OF TAX INCREMENT FINANCING PLANS FOR TIF DISTRICT NOS. 1-1 AND 1-2 Mr. Wessel explained that in the late 1980s the city self financed with service area funds the West Central Trunk sewer project within these two TIF Districts. Modifications of these plans will allow accumulated TIF within the districts to be used to reimburse the fund. EDA Member Elliott moved to adopt Resolution No. 95-16. EDA Member Neal seconded the motion. Motion passed unanimously. CONSIDERATION OF RESOLUTION NO. 95-17 AUTHORIZING EXECUTION OF REIMBURSEMENTS OF DEVELOPMENT AGREEMENTS Mr. Wessel informed the board that the EDA had been entering into a series of development agreements with businesses moving into Apollo Business Park, and assuming revenue obligations on behalf of the city. No formal means of transferring funds from the EDA to the city had been established. This resolution would oblige the EDA to repay its obligations with interest to the city out of tax increment, as increment is received. EDA Member Elliott moved to adopt Resolution No. 95-17. EDA Member Neal seconded the motion. Motion passed unanimously. Meeting adjourned, 6:29 p.m. AGENDA ITEM 3A STAFF ORIGINATOR: Brian Wessel DATE: 2/12/96 TOPIC: Consideration of Annual Appointments BACKGROUND: According to the Lino Lakes EDA by-laws, the EDA is to elect a President, Vice President, Secretary, Treasurer and Assistant Treasurer each year. Records indicate that in 1995 Vern Reinert was President of the board, Sally Kuether was Vice President, and Andy Neal was Treasurer. These three offices must be held by members of the board. The offices of Secretary and Assistant Treasurer do not have to be held by board members. The office of Secretary currently is held by Mary LaForest. 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: (I`U-� , 4 d1P !mot C.f. I;�t'""�`.�',�✓ 1. Elect a President, Vice -President, Secretary, Treasurer and Assistant Treasurer to serve in 1996. 2. Return to staff for further consideration. RECOMMENDATION: 1. Option 1 AGENDA ITEM 3B STAFF ORIGINATOR: Brian Wessel DATE: 2/12/96 TOPIC: Consideration of EDA Official Newspaper BACKGROUND: The EDA 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 council's. OPTIONS: 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 Wessel DATE: 2/12/96 TOPIC: Consideration of Official Depositories BACKGROUND: The list of legal depositories approved for 1996 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 transactions 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 RECOMMENDATION: Option 1 AGENDA ITEM 4 STAFF ORIGINATOR: Brian Wessel DATE: 2/12/96 TOPIC: Consideration of Resolution No. 96-01 authorizing preparation of a modified Tax Increment Financing Plan for TIF District 1-4 (Apollo Business Center) to drop parcels from the District. BACKGROUND: Tax Increment Financing District No. 1-4 was established in 1990, and is comprised of four noncontiguous areas within the city. However, development within these areas did not come as quickly as anticipated. The aging district now has no capacity left to allow the city to provide financial incentives to light industrial prospects now interested in building within the Apollo Business Center. Recent changes in legislation appear to have eliminated the barriers to removing parcels from an aging district and combining them with another district, as long as all the land is contiguous. This plan modification will remove all the parcels in TIF District 1-4 except those already improved. Blue Heron and Emtech will be the only two parcels remaining. Once those parcels are removed from TIF District 1-4, the Apollo Business Center property can be incorporated into Tax Increment Financing District 1-7. This district was created in 1995 in the city -owned portion of the business park and has nine years of capacity available. Several prospects are interested in the Apollo Business Center, and this will allow the city to provide them with financial assistance. OPTIONS: 1. Authorize preparation of modification of Tax Increment Financing Plan for TIF District No. 1-4 to remove all parcels from the district with the exception of Blue Heron and Emtech. 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. 96 - 01 RESOLUTION AUTHORIZING PREPARATION OF A MODIFIED TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. 1-4 WHEREAS, on April 26, 1990, the city council of the City of Lino Lakes (the "City") established Tax Increment Financing District No. 1-4 ("TIF District No. 1-4") and adopted a tax increment financing plan (the "TIF Plan") 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, in 1991 authority over TIF District No. 1-4 was transferred to the Lino Lakes Economic Development Authority (the "EDA"); and WHEREAS, the TIF Plan has been modified in the past, most recently on June 12, 1995; and WHEREAS, it has been proposed that the TIF Plan be modified again to delete certain parcels from TIF District No. 1-4, pursuant to Minnesota Statutes, section 469.174 through 469.179 (the "TIF Act"). NOW, THEREFORE, BE IT RESOLVED by the Lino Lakes Economic Development Authority as follows: 1. Staff and Kennedy & Graven, Chartered are hereby authorized and directed to prepare a modification to the TIF Plan for TIF District No. 1-4 for the above purpose. 2. The executive director of the EDA is authorized and directed to schedule a meeting on March 25, 1996 at 6 p.m. in the council chambers at city hall, at RHB100127 LN140-11 which time the EDA will consider adoption of the modified TIF Plan for TIF District No. 1-4. 3. The staff and consultants are authorized and directed to take any and all steps necessary to bring the modified TIF Plan before the EDA at the March 25, 1996 meeting. 4. The City is urged to schedule a public hearing on the modified TIF Plan to be held as soon after consideration of these matters by the EDA as reasonably possible. Dated: February 12, 1996. 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. RHB100127 LN140-11 AGENDA ITEM 5 STAFF ORIGINATOR: Brian Wessel DATE: 2/12/96 TOPIC: Resolution No. 96-02 authorizing preparation of a modified Tax Increment Financing Plan for TIF District 1-7 (Apollo Business Park) BACKGROUND: This modification of the TIF plan serves two purposes. The first is to add parcels to TIF District 1-7. This will enable the city to expand its Tight industrial tax base by providing financial assistance to businesses wishing to locate in Lino Lakes. The parcels being added to the district include the G.M. Development property in the business park, Glenn Rehbein's light industrial property on the southwest quadrant of I-35W/Lake Drive, and the Hawkins Chemical property just north of the business park. The second purpose of the modification is to enable the city to provide financial assistance to Progressive Engineering Technology and Ballantine Trench -ALL. Progressive Engineering is purchasing 2.2 acres of land in the city -owned portion of the business park. They intend to build a 16,000 square foot facility for their custom precision machining business. Ballantine is interested in three acres in the privately owned portion of the park. The company wants to build a 30,000 square facility for the maryesrcturing of trencher parts. Once the EDA authorizes preparation of the modification of this plan, the City Council will set a date for a public hearing. OPTIONS: 1. Adopt Resolution No. 96-02 authorizing preparation of a modified tax increment financing plan for TIF District No. 1-7 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. 9 6 - 0 2 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") and 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") 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, the TIF Plan was modified on October 23, 1995; and WHEREAS, it has been proposed that the TIF Plan be modified again to assist two industrial facilities and to add additional land to TIF District No. 1-7, pursuant to Minnesota Statutes, section 469.174 through 469.179 (the "TIF Act"). NOW, THEREFORE, BE IT RESOLVED by the Lino Lakes Economic Development Authority as follows: 1. Staff and Kennedy & Graven, Chartered are hereby authorized and directed to prepare a modification to the TIF Plan for TIF District No. 1-7 for the above purposes. 2. The executive director of the EDA is authorized and directed to schedule a meeting on March 25, 1996 at 6 p.m. in the council chambers at city hall, at which time the EDA will consider adoption of the modified TIF Plan for TIF District No. 1-7. RHB100118 LN140-41 3. The staff and consultants are authorized and directed to take any and all steps necessary to bring the modified TIF Plan before the EDA at the March 25, 1996 meeting. 4. The City is urged to schedule a public hearing on the modified TIF Plan to be held as soon after consideration of these matters by the EDA as reasonably possible. Dated: February 12, 1996. President 1'EST: 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. RHB100118 LN140-41 AGENDA ITEM 6 STAFF ORIGINATOR: Brian Wessel DATE: 2/12/96 TOPIC: Resolution No. 96-03 setting date for the public hearing for the proposed sale of property in the Apollo Business Park BACKGROUND: A public hearing is required when the city is writing down the cost of land owned by the EDA to a business. The EDA has authorized preparation of a modified Plan to provide financial assistance to Progressive Engineering in the city - owned portion of the park, and a public hearing can be scheduled. OPTIONS: 1. Adopt Resolution No. 96-03 calling for a public hearing to be held on March 25, 1996 at 6:00 p.m. 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. 9 6 - 0 3 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 25, 1996 to authorize financial assistance to Progressive Engineering, Inc.; and WHEREAS, the financial assistance the EDA intends to offer to Progressive Engineering, Inc. will involve the sale of land owned by the EDA to Progressive Engineering 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 day of , 1996 in order to consider the sale of the property to Progressive Engineering, Inc.. 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 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 day of , 1996. RRB100192 LN140-45 Dated: , 1996 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. RHB100192 LN140-45