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Home My WebLink About04-29-1996 EDA PacketAGENDA ECONOMIC DEVELOPMENT AUTHORITY MONDAY APRIL 29, 1996 5:00 P.M. 1. Call to Order and Roll Call 2. Consideration of Minutes of Monday, March 25, 1996 3. Consideration of Contract for Private Engineering 4. Consideration of Contract for Private Wholesale Supply 5. Consideration of Contract for Private Corporation 5. Adjourn Development between Lino Lakes EDA Development between Lino Lakes EDA Development between Lino Lakes EDA and Progressive and Northern and Taylor CITY OF LINO LAKES ECONOMIC DEVELOPMENT AUTHORITY MINUTES DATE: Monday, March 25, 1996 MEMBERS PRESENT: J. Landers, J. Bergeson, S. Kuether, C. Lyden, A. Neal MEMBERS ABSENT: None OTHERS PRESENT: Brian Wessel, Ron Batty, Mary LaForest CONSIDERATION OF MINUTES EDA Member Neal moved to approve the minutes from February 12, 1996. EDA Member Bergeson seconded the motion. Motion passed unanimously. CONSIDERATION OF RESOLUTION NO. 96-03 ADOPTING A MODIFIED PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. 1-4 Mr. Wessel explained to the authority that this modification will eliminate all the parcels in TIF District 1-4 except the two improved parcels. The parcels to be dropped include the shopping center area, the G.M. Development property, land owned by St. Joseph's Church, and the 49/23 interchange. He explained that this was the first step in a two-step process that will allow the city to expand TIF District 1-7 to include the G.M. Development property and other light industrial parcels. Mr. Bergeson questioned why this was being done. Mr. Wessel explained that the clock was running out on TIF District 1-4 and this would allow properties likely to develop in the next couple of years to take advantage of the newly established TIF District. Mr. Lyden stated that he thought the city should make the light industrial site north of the new school property available to the Centennial School District so the district would expand there rather than on Lake Drive. Mr. Landers questioned if the Neighborhood Business area on Lake Drive should be included. Mr. Wessel explained that TIF could not be used for commercial businesses in an Economic Development District. Mr. Bergeson asked if property put in a TIF District could be used for commercial purposes. Mr. Batty explained that commercial development could go within a TIF District, but TIF could not be used to subsidize it. EDA Member Kuether moved to approve Resolution No. 96-03. EDA Member Bergeson seconded the motion. Motion passed with EDA Member Lyden abstaining. CONSIDERATION OF RESOLUTION NO. 96-04 ADOPTING A MODIFIED PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. 1-7 Mr. Wessel explained that this resolution would expand TIF District 1-7 to include the G.M. property in the Apollo Business Park, as well as Glenn Rehbein's proposed Lake Business Park and the Hawkins Chemical site. EDA member Kuether moved to approve Resolution No. 96-04. EDA Member Bergeson seconded the motion. Motion passed with EDA Member Lyden abstaining. PUBLIC HEARING ON THE PROPOSED SALE OF PROPERTY IN THE APOLLO BUSINESS PARK TO PROGRESSIVE ENGINEERING TECHNOLOGY, INC. EDA Member Kuether moved to open the public hearing at 6:15 p.m. EDA Member Lyden seconded the motion. Motion passed unanimously. Mr. Wessel explained that Progressive Engineering was purchasing 2.3 acres of land in the business park for its precision engineering company. State statute requires a public hearing when the city is writing down the cost of the land. EDA President Lyden asked for comments. None were received. EDA Member Kuether moved to close the hearing at 6:17 p.m. EDA Member Neal seconded the motion. Motion passed unanimously. CONSIDERATION OF RESOLUTION NO. 96-05 AUTHORIZING THE SALE OF PROPERTY TO PROGRESSIVE ENGINEERING TECHNOLOGY, INC. Mr. Wessel explained that this resolution would finalize the process for selling land in the city - owned portion of the park. Ms. Kuether asked how many parcels were left. Mr. Wessel stated a 1-acre piece and a 7-acre piece remained unsold. EDA Member Bergeson moved to approve Resolution No. 96-05. EDA Member Lyden seconded the motion. Motion passed unanimously. CONSIDERATION OF CONTRACT FOR PRIVATE DEVELOPMENT BETWEEN LINO LAKES EDA AND PROGRESSIVE ENGINEERING Mr. Wessel explained that the development agreement had been drafted and both parties had copies, but it had not been signed. In order to keep on schedule it had been put on the agenda. However, Progressive Engineering would not be breaking ground until May, so Mr. Wessel requested this item be tabled until the next EDA meeting. ADJOURNMENT EDA Member Neal moved to adjourn. EDA Member Kuether seconded the motion. Motion passed unanimously. Meeting adjourned, 6:21 p.m. TOR: Brian Wa sideration of the Cc opment between Lino EDA and Progressive'E iineeri Technology, Inc. A development contract between the EDA and Progressive Engineering is required to outline the conditions for public a ce ate! for the conveyance of city property to Progressive Engineering. This a reerr nt allows the EDA to purchase the property from the cry for $89'7{Xi aria it t+o the developer for $53,160. Progressive Engineering will be reimbursed $33,660 of its purchase price on a pay-as-you-go basis. The agr t+ also arranges for the city to remove $51,762 in special assessments up front, with Progressive Engineering paying the remaining $13,500: in assessments at dosing. OPTIONS: 1. Approve the contract for privet development between Lino Lakes EDA and Progressive Engineering: 2. Return to staff for further consideration RECOMMENDATION: Option 1 STAFF ORIGINATOR: Brian 1 1 OA" : 4/29/96 TOPIC: Consideration of tct for Private t velopment between Lino La#o E`f !A and Northern es I Y s the itio s for public assistance to Northern Wholesale, which is locating on private land in the Clearwater Creek Development Center. In this agreement the EDA agrees to reimburse the developer $608,449 towards the cost of the property, special assessments, and partial site preparation costs. A total of $333,449 will be presented "upfront' when Northern Wholesale receives the Certificate of Occupancy, and the remaining $275,000 will be reimbursed over time from available tax increment. The agreement also limits delivery vehicles ai the hours of 7 a.m. to 8 p.m. The city also has tenants that will be occupying 40,000 square f compliance with zoning and TIF regulations. OPTIONS: truck traffic on Cedar Street to rht to preapprove any e facility to ensure 1. Approve the development agreement between the EDA and Northern Wholesale Supply 2. Return to staff RECOMMENDATION: Option.1 t agreement outlines conditi+c ns for public assistance to Taylor Corporation for the amstruction of near Taymark facility in the Clearwater Creek Development Center. In the agreement the EDA agrees to reimburse the developer $800,000 towards the cost of the property, special assessments, and site improvements. A total of $2185,000 will be paid to the developer °upfront,* upon issuance of the Certificate of Occupancy. The EDA will reimburse the remaining $315,000 to the Taylor Corporation out of available tax increment over a period of five years. RECOMMENDATION: [provide recommendation]