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:
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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
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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.
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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.
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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.
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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.
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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.
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