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HomeMy WebLinkAbout04-10-1995 EDA Packet4. Adjourn AGENDA CITY OF LINO LAKES ECONOMIC DEVELOPMENT AUTHORITY Monday April 10, 1995 6:00 p.m. 1. CaII to Order and Roll CaII 2. Approval of Minutes of EDA Meeting: August 11, 1994 3. Consideration of Resolution Authorizing Preparation of Tax Increment Financing Plan for TIF District 1-7 afj CITY OF LINO LAKES ECONOMIC DEVELOPMENT AUTHORITY MINUTES DATE: August 11, 1994 TIME: 5:01 p.m. MEMBERS PRESENT: S. Kuether, V. Reinert, A. Neal, J. Bergeson, L. Elliott MEMBERS ABSENT: None OTHER PRESENT: Community Development Director, Brian Wessel; Consulting Attorney, Ron Batty; City Clerk, Marilyn Anderson. The Lino Lakes Economic Development Authority was called to order at 5:01 p.m. and Roll Call was taken. APPOINTMENT OF EDA SECRETA R Y Mr. Wessel explained that Dan Tesch requested that Mary LaForest take over the duties of recording secretary for the EDA. EDA Member Kuether moved to appoint Mary LaForest the recording secretary for the Economic Development Authority. EDA Member Neal seconded the motion. Motion carried unanimously. CONSIDERATION OF MINUTES: EDA MEETING OF MARCH 28, 1994 EDA members considered the minutes of March 28, 1994. Mayor Reinert asked plans Chris Ross had for cleaning up the former liquor store site on Lake Drive and Main Street. Mr. Wessel explained that the city had concluded its responsibilities regarding the site, and that Randy Schumacher planned to speak to Mr. Ross concerning cleaning up the site. Mr. Wessel said he would also follow up with Mr. Ross regarding the site. EDA Member Elliott moved to approve the minutes of March 28, 1994. EDA member John Bergeson seconded the motion. The motion carried unanimously. CONSIDERATION OF RESOLUTION NO. 94 - 03 APPROVING FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT 1-6 Mr. Wesse/ introduced Gordy Johnson, president of UDOR U.S.A. Mr. Wessel explained that UDOR began negotiating with the City in the fall of 1993 regarding the purchase of a site in the Apollo Business Park for its distribution center. UDOR U.S.A. committed to a site in May of 1994. Since then more than 60 transactions, including 11 public meetings, have taken place to put the deal together. Mr. Wessel said he appreciated the responsiveness of the Planning and Zoning Board and the City Council to help accomplish the purchase of City property by UDOR. The City is now well prepared to bring the project to a final resolution. Mr. Wessel explained that the City sold UDOR the property as full market value, and that the assessments to UDOR were to be paid with Tax Increment Financing funds, not to exceed 12% of the total project costs, in accordance with the policy that had been set regarding city -owned property in the business park. The amount of TIF assistance totalled $41,250 in an upfront commitment, i.e., the assessments would be paid before the project was started. Mr. Wessel explained that the Centennial School District had been notified and Anoka County had approved the plan, as required by law. Mr. Batty addressed the EDA members, and explained this was the sixth TIF District created within the City's Development District. He noted that because it was created after 1990, the increment cannot be pooled. UDOR would generate approximately $ 12,000 in increment annually, and the Development District would recover its expenditures in year four of the nine-year district. The City has a -choice to either spend the rest of the increment or decertify the district. Mr. Batty explained that the EDA is the authority for the Economic Development District, and it is necessary for the EDA to adopt a resolution. He added that the TIF District was comprised of just the UDOR parcel. The City's policy decision was to create a district on a parcel by parcel basis for development of property in the park. This increases the cost and time involved, but that way the clock did not start running on the district until development was in place. EDA Member Kuether moved to adopt the resolution approving the financing plan for TIF District 1-6. EDA Member Elliott seconded the motion. The motion carried unanimously. A UTHORIZA TION TO EXECUTE THE PURCHASE AGREEMENT AND DEVELOPMENT AGREEMENT WITH UDOR U.S.A. Mr. Batty explained that the purchase agreement called for the developer to buy the one -acre property for $39,000 and build a 6,000 square foot facility. The agreement also states UDOR agrees to pay the taxes and occupy the property for the use that is permitted. Mr. Batty noted that after 1990, uses of properties within a TIF District are limited. The purchase agreement also states that the EDA, through the city, will pay the $32,500 assessment cost and the $5,000 application fee. Mr. Batty asked that the EDA consider the purchase agreement and the development agreement separately. The purchase agreement was in its final form, but a few points in the development agreement were not yet finalized. He recommended the EDA authorize execution of the purchase agreement without contingencies, because it would not become effective until a development agreement was complete. He also recommended the EDA authorize the EDA President and Executive Director sign the development agreement subject to approval by himself and Mr. Wessel of the final development agreement. This would eliminate the need for another special meeting. EDA Member Kuether moved to authorize execution of the purchase agreement without contingencies. EDA member Bergeson seconded the motion. The motion carried unanimously. EDA member Elliott moved to authorize the execution of the development agreement subject to the final details being approved by Mr. Batty and Mr. Wessel. EDA Member Neal seconded. The motion carried unanimously. ADJOURNMENT EDA Member Elliott moved to adjourn. The motion was seconded by EDA Member Bergeson. Meeting adjourned at 5:22 p.m. Member introduced the following resolution and moved its adoption: LINO LAKES ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. 9 5 — 01 RESOLUTION AUTHORIZING PREPARATION OF A TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. 1-7 WHEREAS, the area of the city generally known as the Apollo business park has not developer solely through private efforts in a manner which is consistent with its prominence within the city and which justifies the public expenditures for infrastructure improvements which have been made; and WHEREAS, it appears that it will be necessary to utilize tax increment financing to assist development in the area to achieve the purpose for which the business park was established; and WHEREAS, it has been proposed that the area generally known as the Apollo buisness park be incorporated into a new tax increment financing district ("TIF District No. 1-7") in order to offer developers assistance pursuant to Minnesota Statutes, sections 469.174 through 469.179 (the "TIF Act"). NOW, THEREFORE, BE IT RESOLVED by the Lino Lakes Economic Development Authority (the "EDA") as follows: 1. Staff and Holmes & Graven, Chartered are hereby authorized and directed to prepare a tax increment financing plan (the "Plan") for TIF District No. 1-7. 2. The executive director of the EDA is authorized and directed to schedule a meeting on May 22, 1995 at 5'. 3.0 p.m. in the council chambers at city hall, at which time the EDA will consider adoption of the Plan and the establishment of TIF District No. 1-7. 3. The staff and consultants are authorized and directed to take all steps necessary to bring the Plan before the EDA at the May 22, 1995 meeting. 004866 6 LN140 6 4. The city council of the city of Lino Lakes (the "City") is urged to schedule a public hearing on the proposed Plan and T1F District to be held as soon after consideration of these matters by the EDA as reasonably possible. Dated: April 10, 1995. President ATTEST: Eecutive 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. Rh 6628 LNyou-36