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Home My WebLink About07-08-1996 EDA PacketAGENDA ECONOMIC DEVELOPMENT AUTHORITY MONDAY JULY 8, 1996 6:00 P.M. 1. Call to Order and Roll Call 2. Consideration of Minutes of Monday, April 29, 1996 3. Consideration of Contract for Private Development between Lino Lakes EDA and Emergency Apparatus Maintenance 4. Public Hearing on the proposed sale of property in the Apollo Business Park to Emergency Apparatus Maintenance 4A. Consideration of Resolution No. 96-06 authorizing the sale of property to Emergency Apparatus Maintenance 5. Consideration of Contract for Private Development between Lino Lakes EDA and Blue Heron Development Corporation 6. Adjourn CITY OF LINO LAKES ECONOMIC DEVELOPMENT AUTHORITY MINUTES DATE: Monday, April 29, 1995 MEMBERS PRESENT: J. Landers, J. Bergeson, A. Neal, S. Kuether MEMBERS ABSENT: C. Lyden OTHERS PRESENT: Brian Wessel, Ron Batty, Mary LaForest CONSIDERATION OF MINUTES Ms. LaForest noted in the March 25, 1996 minutes that "EDA President Lyden..." should be corrected to read "EDA President Landers..." EDA Member Kuether moved to approve the minutes with the correction noted. EDA Member Neal seconded the motion. Motion passed unanimously. CONSIDERATION OF CONTRACT FOR PRIVATE DEVELOPMENT BETWEEN LINO LAKES EDA AND PROGRESSIVE ENGINEERING Mr. Wessel explained to the Authority that the substance of the development contracts to be considered had been agreed to by all parties, but some minor details still needed to be worked out. He requested that if the Authority approves the contracts, they do so contingent upon staff approval of any minor changes. He outlined the Progressive Engineering agreement for financial assistance and for the conveyance of public property in the Apollo Business Park. The company is building on 2.3 acres and is paying for 1/2 acre of land and assessments for later expansion. The city is contributing $129,962 in a combination of upfront and pay-as-you-go tax increment financing to subsidize 1.8 acres of land and assessments, which is 17% of the total project cost. Mr. Batty explained that he had received a letter from the company's attorney acknowledging receipt of the agreement, but had not heard from him regarding any problems. Two minor issues had been raised by the company, but they were resolvable. EDA Member Kuether requested that in the future the green sheets for development agreements specify the total amount of TIF and what percent of the project cost the city is subsidizing. EDA Member Kuether moved to approve the development agreement between Lino Lakes EDA and Progressive Engineering contingent upon staff approval of the final details. EDA Member Bergeson seconded the motion. Motion passed unanimously. CONSIDERATION OF CONTRACT FOR PRIVATE DEVELOPMENT BETWEEN LINO LAKES EDA AND NORTHERN WHOLESALE Mr. Wessel explained that Northern Wholesale was purchasing nine acres in the Clearwater Creek Development Center. The company is receiving $608,449 toward the cost of the property, assessments and site preparation costs in a combination of upfront and pay-as-you-go TIF. The subsidy is 15% of the total project cost. Mr. Batty noted that he had talked with the company's attorney, and only minor changes were required in the agreement. EDA Member Kuether asked that staff find out what the company was charging for its leasable space. EDA Member Kuether moved to approve the development contract contingent upon staff approval of final changes. EDA Member Bergeson seconded the motion. Motion passed unanimously. CONSIDERATION OF CONTRACT FOR PRIVATE DEVELOPMENT BETWEEN LINO LAKES EDA AND TAYLOR CORPORATION Mr. Wessel explained that the development agreement outlined the conditions for public assistance for the construction of the new Taymark facility in the Clearwater Creek Development Center. The company is receiving $800,000 in subsidy toward the cost of land, special assessments and site improvements in a combination of upfront and pay-as-you-go TIF, which is 12% of the total project cost. Mr. Batty said he had discussed the company's concern regarding the assessment agreement. The attorney requested the agreement be written so that it expired when TIF has recovered the subsidy. Mr. Batty said that was workable. EDA Member Kuether moved to approve the development contract contingent upon staff approval of final changes. EDA Member Neal seconded the motion. Motion passed unanimously. Mr. Wessel thanked the Authority and noted the cooperative effort of these companies, the city council and staff. ADJOURNMENT EDA Member Neal moved to adjourn. EDA Member Bergeson seconded the motion. Motion passed unanimously. Meeting adjourned at 5:26 p.m. AGENDA ITEM 3 STAFF ORIGINATOR: Brian Wessel DATE: 7/8/96 TOPIC: Consideration of the Contract for Private Development between Lino Lakes EDA and Emergency Apparatus Maintenance (EAM) BACKGROUND: A development contract between the EDA and EAM outlines the conditions for public assistance and for the conveyance of city property to the company. EAM is purchasing 1.12 acres of land in the Apollo Business Park. Land, assessments, and admininstrative fees total $75,276.39. In this agreement the EDA will remove the special assessments of $27,596.39 on the property, and write 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 TIF assistance amounts to 14% of the total project cost, with a complete payback to the EDA within 4 1/2 years. OPTIONS: 1. Approve the contract for private development between Lino Lakes EDA and EAM. 2. Return to staff for further consideration RECOMMENDATION: Option 1 AGENDA ITEM 4 STAFF ORIGINATOR: Brian Wessel DATE: 7/8/96 TOPIC: Public Hearing on the proposed sale of property in the Apollo Business Park to Emergency Apparatus Maintenance BACKGROUND: Emergency Apparatus Maintenance is purchasing 1.1 acres in the city -owned portion of the Apollo Business Park. The land is being purchased for $39,000 per acre, plus assessments. A public hearing is required when the city is writing down the cost of city -owned property. OPTIONS: 1. Open the public hearing 2. Continue the public hearing RECOMMENDATION: Option 1 AGENDA ITEM 4A STAFF ORIGINATOR: Brian Wessel DATE: 7/8/96 TOPIC: Consideration of Resolution No. 96-06 authorizing sale of property to Emergency Apparatus Maintenance BACKGROUND: Resolution No. 96-06 will complete the process required by the EDA for selling city -owned land in the Apollo Business Park to Emergency Apparatus Maintenance. Closing on the sale of the property will be scheduled late July. OPTIONS: 1. Adopt Resolution No. 96-06 authorizing sale of property to Emergency Apparatus Maintenance 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. 96-06 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 Emergency Maintenance Apparatus, (the "Developer") whereby the EDA agreed to purchase property legally described as Lot 1, Block 1, Apollo Business Park, Anoka County, Minnesota (the "Property") from the City for $43,680 and to resell it to the Developer for $38,026 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 authorization to staff to publish legal 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: 64.1z , 1996. President ATTE taiJ 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. AGENDA ITEM 5 STAFF ORIGINATOR: Brian Wessel DATE: 7/8/96 TOPIC: Consideration of the Contract for Private Development between Lino Lakes EDA and Blue Heron Development Corporation BACKGROUND: This development contract between the EDA and Blue Heron Development Corporation outlines the conditions for public assistance. The cost of the 3.09 acres of land, plus assessments and administrative fees, total $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 to Blue Heron on a pay-as-you-go basis. Blue Heron is contributing $58,660 in costs in this second phase of development. The TIF subsidy is 12% of the total project cost and reimbursement will be complete in Tess than 3 years. OPTIONS: 1. Approve the contract for private development between Lino Lakes EDA and Blue Heron Development Corporation 2. Return to staff for further consideration RECOMMENDATION: Option 1