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HomeMy WebLinkAbout03-25-1996 EDA PacketAGENDA ECONOMIC DEVELOPMENT AUTHORITY MONDAY MARCH 25, 1996 6:00 P.M. 1. Call to Order and Roll Call 2. Consideration of Minutes of Monday, February 12, 1996 3. Consideration of Resolution No. 96-03 adopting a modified plan for Tax Increment Financing District No. 1-4 4. Consideration of Resolution No. 96-04 adopting a modified plan for Tax Increment Financing District No. 1-7 5. Public Hearing on the proposed sale of property in the Apollo Business Park to Progessive Engineering Technology, Inc. 5A. Consideration of Resolution No. 96-05 authorizing the sale of property to Progressive Engineering 6. Consideration of Contract for Private Development between Lino Lakes EDA and Progressive Engineering. 7. Adjourn DATE: TIME: MEMBERS PRESENT: MEMBERS ABSENT: OTHERS PRESENT: CITY OF LINO LAKES ECONOMIC DEVELOPMENT AUTHORITY MINUTES Monday, February 12, 1996 6:00 p.m. J. Landers, A. Neal, J. Bergeson, S. Kuether, C. Lyden None Brian Wessel, Community Development Director Mary LaForest, Recording Secretary CONSIDERATION OF MINUTES EDA Member Neal moved to approve the minutes from the December 18, 1995 meeting. EDA Member Kuether seconded the motion. Motion passed unanimously. CONSIDERATION OF ANNUAL APPOINTMENTS Mr. Wessel explained that EDA by-laws require the EDA to appoint a president, vice president, secretary, treasurer and assistant treasurer each year, as well as an official newspaper and legal depositories. EDA member Neal moved to appoint John Landers as president, Sally Kuether as vice-president, Mary LaForest as secretary, Andy Neal as treasurer, and Marilyn Anderson as assistant treasurer. EDA Member Lyden seconded the motion. Motion passed unanimously. EDA Member Kuether moved to appoint the Quad Community Press as the EDA official newspaper. EDA Member Neal seconded the motion. Motion passed unanimously. EDA Member Neal moved to approve Norwest Bank, First Bank NA, Firstar Bank, Merrill Lynch, Dain Bosworth, Juran and Moody, and Prudential Bache as the legal depositories for the EDA. EDA Member Lyden seconded the motion. Motion passed unanimously. CONSIDERATION OF RESOLUTION NO. 96-01 AUTHORIZING PREPARATION OF A MODIFIED TAX INCREMENT FINANCING PLAN FOR TIF DISTRICT 1-4 (APOLLO BUSINESS PARK) Mr. Wessel explained that TIF District 1-4 had been established in 1990, and the district had not developed as quickly as anticipated. The district had no capacity left to allow the city to provide financial incentives to light industrial projects. Recent changes in legislation appear to have removed the barriers to taking parcels from an old district and combining them with another district, as long as the parcels are contiguous. This plan modification would remove all the parcels in District 1-4 except those already improved. Blue Heron and Emtech will remain in District 1-4. EDA Member Kuether questioned why the shopping center parcel had been removed. Mr. Wessel explained that TIF could not be used except for light industrial purposes. EDA Member Kuether moved to approve Resolution No. 96-01 authorizing preparation of the modified plan for TIF District 1-4. EDA Member Neal seconded the motion. Motion passed unanimously. CONSIDERATION OF RESOLUTION NO. 96-02 AUTHORIZING PREPARATION OF A MODIFIED TAX INCREMENT FINANCING PLAN FOR TIF DISTRICT NO. 1-7 Mr. Wessel explained that this modification of the TIF plan served two purposes. It adds parcels to the district and enables the city to provide financial assistance to Progressive Engineering and Ballantine Trench -ALL in the Apollo Business Park. 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 the I-3 5 W interchange, and the Hawkins Chemical property north of the business park. EDA Member Bergeson commented that this seemed a departure from previous legislation, and questioned why the city wouldn't add more property to District 1-7. Ms. LaForest stated that the legislative change involved the removal of the 20-year "taint" on properties within a TIF District, but all parcels must be contiguous and this modification added all the parcels that could reasonably be incorporated. Mr. Wessel stated that the Hawkins Chemical property would not be rezoned to light industrial until the city had a project for the site. EDA Member Kuether moved to approved Resolution No. 96-02 authorizing preparation of the modified plan for TIF District No. 1-7. EDA Member Neal seconded the motion. Motion passed unanimously. CONSIDERATION OF RESOLUTION NO. 96-03 SETTING A PUBLIC HEARING DATE FOR THE PROPOSED SALE OF PROPERTY IN THE APOLLO BUSINESS PARK Mr. Wessel explained that the city was writing down the cost of city -owned land to Progressive Engineering. The charter requires a public hearing. EDA Member Neal moved to approve Resolution 96-03 calling for a public hearing to be held on March 25, 1996 at 6 p.m. ADJOURNMENT EDA Member Kuether moved to adjourn. EDA Member Neal seconded the motion. Motion passed unanimously. Meeting adjourned at 6:30 p.m. Member introduced the following resolution and moved its adoption: LINO LAKES ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. 96-05 RESOLUTION AUTHORIZING THE SALE OF PROPERTY BE IT RESOLVED by the Lino Lakes Economic Development Authority as follows: Section 1. Recitals 1.01. The Lino Lakes Economic Development Authority (the "Authority") approved a tax increment financing plan (the "Plan") for the Tax Increment Financing District No. 1-7 (TIF District No. 1-7) on May 22, 1995. 1.02. On May 22, 1995, the City Council of the City of Lino Lakes (the "City") approved the Plan. 1.03. The EDA entered into a development agreement with Progressive Engineering, a Minnesota Corporation (the "Developer") whereby the EDA agreed to purchase property legally described as 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 angle 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. (the "Property") from the City for $89,700 and to resell it to the Developer for $19,500 subject to the EDA's compliance with the requirements of Minnesota Statutes, section 469.105. 1.04. Pursuant to Minnesota Statutes. section 469.105, the EDA has held a public hearing on the proposed sale of the Property to the Developer, following published notice as required by law, at which hearing all persons wishing to express an opinion were given an opportunity to do so. Section 2. Findings. 2.01. It is hereby found and determined that the sale of the Property to the Developer is in the best interest of the EDA. 2.02. It is hereby found and determined that the sale of the Property furthers the EDA's general plan of economic development of the community. Section 3. Authorization. 3.01. The President and Executive Director are hereby authorized and directed to execute a quit claim deed and other appropriate documents to facilitate sale of the Property to the Developer. 3.02. The President, Executive Director, staff and consultants are hereby authorized and directed to take any and all other steps necessary or convenient in order to accomplish the sale of the Property. Dated: . 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. OPTIONS: 1. Adopt Resolution No. 9643 for the r Financing Plan for TIF District No. 1-4 2. Return to staff Option ion. Financing n the TIF District re the shopping elopment property Bch, and the 49/23 and there is not e development. The e Hetort property and Emtech. Tax Increment Member introduced the following resolution and moved its adoption: LINO LAKES ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. 96-03 RESOLUTION ADOPTING MODIFIED TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. 1-4 BE IT RESOLVED by the Lino Lakes Economic Development Authority as follows: Section 1. Recitals. 1.01. On March 26, 1990, the City Council of the City of Lino Lakes (the "City") adopted a tax increment financing plan (the "TIF Plan") for Tax Increment Financing District No. 1-4 ("TIF District No. 1-4") within Development District No. 1. 1.02. The City established the Lino Lakes Economic Development Authority (the "Authority") in June, 1990 and transferred to it control of TIF District No. 1-4. 1.03. On June 22, 1992 the Authority and the City acted to delete certain property from TIF District No. 1-4 because it was unlikely to develop within a reasonable period of time. 1.04. Due to changes in the nature and extent of public and private improvements to be constructed, it was necessary to modify the TIF Plan on December 13, 1993 and June 12, 1995. 1.05. In recognition that much of the land within TIF District No. 1-4 is not likely to develop within the reasonably foreseeable future, it is appropriate to modify the TIF Plan again for the purpose of deleting most of the remaining land from the TIF District. 1.06. In response to these changes, the Authority and the City have authorized the preparation of another modification which is contained in a document entitled "Modified Tax Increment Financing Plan, Tax Increment Financing District No. 1-4" dated March 25, 1996, and which is on file with the Authority. Section 2. Authority Findings and Approval. 2.01. The Authority finds that the objectives of the Authority and the City of encouraging development within Development District No. 1 are not likely to be realized within the reasonably foreseeable future with regard to the majority of land within TIF District No. 1-4 and that the continued inclusion of such property within the TIF District is not in the public interest. 2.02. In order to accomplish the deletion of certain property from TIF District No. 1-4, the Authority has authorized the preparation of this formal modification and has adopted this RHB101681 LN140-11 modification in full compliance with the notice and hearing requirements of section 469.175, subd. 4 of the TIF Act. 2.03. The modified TIF Plan is hereby adopted by the Authority. Section 3. Further Proceedings. 3.01. It is noted that copies of the modified TIF Plan have been transmitted to the boards of the Centennial and Forest Lake school districts and the board of commissioners of Anoka County for review and comment and that said public bodies have been notified of the hearing to be held on the modified TIF Plan by the City. 3.02. The Authority requests that the City hold a public hearing on the modified TIF Plan pursuant to Minnesota Statutes, section 469.175 as soon hereafter as is practicable and recommends that the modified TIF Plan be approved by the City. 3.03. After approval of the modified TIF Plan by the City, the executive director is authorized and directed to contact the Anoka county auditor and request that the specified lands be deleted from TIF District No. 1-4 and that the original tax capacity of TIF District No. 1-4 be adjusted in a manner consistent with this resolution and the modified TIF Plan. DATED: March 25, 1996 President A I hST: 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. RHB101681 LN140-11 This modified plan for TIF district. it was just ebli remaining. Hawkins rnficei in developing their properties. along with alt the light industrially 1-35VV/Lake Drive. 2. Return to RECOMM O TION. Option 1 Financing just adopted was the its property has not to hoped. The district subsidy to businesses G.M. property to this years of capacity t also expressed interest ► TIF District 1-7 as well, southwest quadrant of Tax Increment Member introduced the following resolution and moved its adoption: LINO LAKES ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. 96-04 RESOLUTION ADOPTING MODIFIED TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. 1-7 BE IT RESOLVED by the Lino Lakes Economic Development Authority as follows: Section 1. Recitals. 1.01. The City Council of the City of Lino Lakes (the "City") established the Lino Lakes Economic Development Authority (the "Authority") in 1990 and conferred upon it responsibility for economic development within Lino Lakes. 1.02. The City adopted a tax increment financing plan (the "Plan") for Tax Increment Financing District No. 1-7 on May 22, 1995. 1.03. In response to development proposals from Progressive Engineering Technology, Inc. and Ballantine Trench -ALL, Inc., and in order to add additional land to TIF District No. 1-7, the Authority and the City have authorized the preparation of a modified Plan which is contained in a document entitled "Modified Tax Increment Financing Plan, Tax Increment Financing District No. 1-7," dated March 25, 1996 and on file with the Authority. Section 2. Authority Approval. 2.01. The Authority finds that the objectives of the Authority and the City of encouraging development and redevelopment within Tax Increment Financing District No. 1-7 will be advanced by adoption of the modified Plan. 2.02. The modified Plan is hereby adopted by the Authority. Section 3. Further Proceedings. 3.01. It is noted that copies of the modified Plan have been transmitted to the boards of Independent School District No. 12 and Independent School District No. 834 and the board of commissioners of Anoka County for review and comment and that said public bodies have been notified of the hearing to be held on the modified Plan by the City. 3.02. The Authority requests that the City hold a public hearing on the modified Plan pursuant to Minnesota Statutes, section 469.175 as soon hereafter as is practicable and recommends that the modified Plan be approved by the City. 3.03. Upon approval of the modified Plan by the City, the Authority's executive director is authorized and directed to file a copy of the modified Plan with the Minnesota state auditor. The executive director is also authorized and directed to contact the Anoka County auditor and request that the tax capacities of the parcels added to TIF District No. 1-7 be reflected in the original tax capacity of the District. this Adopted by the Lino Lakes Economic Development Authority, Lino Lakes, Minnesota day of , 1996. John L. Landers, 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. Due to Progressive :Ei construction in April, l e any si would refire tha should that occur. OPTIONS 1. Approve the a contra f Progressive Engineering •Pri 2. Return to staff for further , consideration RECOMMENDATION: Option 1 Engineering is for the conveyance of lows the EDA to the developer for on a pay-as-you- $51,762 in species: remaining property and begin ve this development parties. The While we don't consultant for further approval Lino Lakes EDA and