HomeMy WebLinkAbout05-08-1995 EDA PacketAGENDA
CITY OF LINO LAKES
ECONOMIC DEVELOPMENT AUTHORITY
Monday
May 8, 1995
6:00 p.m.
1. CaII to order and Roll CaII
2. Approval of Minutes of EDA Meeting: April 10, 1995
3. Consideration of Resolution Authorizing Preparation of a Modified Tax Increment
Financing Plan for Tax Increment Financing District No. 1-4
4. Adjourn
CITY OF LINO LAKES
ECONOMIC DEVELOPMENT AUTHORITY
MINUTES
DATE: April 10, 1995
TIME: 6:05 p.m.
MEMBERS
PRESENT: V. Reinert, S. Kuether, A. Neal, J. Bergeson, L. Elliott
MEMBERS
ABSENT: None
OTHER
PRESENT: Community Development Director, Brian Wessel
CONSIDERATION OF MINUTES
EDA member Neal moved to approve the minutes from the Aug. 11, 1994 EDA
meeting. EDA member Kuether seconded the motion. Minutes were approved
unanimously.
CONSIDERATION OF RESOLUTION AUTHORIZING PREPARATION OF TAX
INCREMENT FINANCING DISTRICT PLAN FOR TIF DISTRICT 1-7
Mr. Wessel informed the board that Nol-Tec Systems, Inc., a Forest Lake based
company, was interested in purchasing three acres in the city -owned portion of the
Apollo Business Park. Nol-Tec is an engineering and light assembly company which
designs pneumatic conveying systems. The company looked at numerous other cities
before selecting Lino Lakes. The company is planning to build a 16,256 square foot
facility, and has plans for doubling the building size in the future. NoI-Tec currently
employs approximately 35, and has demonstrated consistent growth. It is selling its
building in Forest Lake and wishes to move quickly to begin construction in the
business park.
Mr. Wessel explained that the city's TIF attorney, Ron Batty, recommended the
remaining city -owned portion of the business park be included in a new TIF district to
take advantage of the current low economic adjustment factor. In 1994 the decision
was made to create a TIF district for each project. The situation has changed in 1995,
however, and the valuation of properties within the city -owned portion of the park will
be accelerating and there are several prospects considering an Apollo Business Park
relocation. Putting all property within the TIF district before the valuations increase
will keep the city's inflation factor low.
Mr. Wessel explained that once the EDA authorizes preparation of TIF District 1-7, Mr.
Batty will prepare a TIF plan, and will send it to Centennial School District and Anoka
County for review.
Mr. Wessel informed the board he is committing approximately $ 160,000 in TIF
assistance on the $950,000 project. The assistance will pay for itself through
generation of more than $250,O0O in increment. He is in the process of finalizing the
arrangements with Nol-Tec. The TIF assistance will be used to reimburse Nol-Tec
$8,000 in administration costs, S90,249 in assessments, and $62,400 towards
writing down the cost of the land. Nol-Tec will be responsible for $54,600 in land
costs. He noted that Ron Batty will appear at the public hearing to explain the final
TIF arrangements.
EDA member Kuether moved to adopt resolution 95-01 authorizing preparation of a
Tax Increment Financing Plan for Tax Increment Financing District No. 1-7. EDA
Member Elliott seconded the motion. The motion carried unanimously.
ADJOURNMENT
EDA Member Elliott moved to adjourn. Motion was seconded by EDA Member
Bergeson. Meeting adjourned at 6:20 p.m.
AGENDA ITEM 3
STAFF ORIGINATOR Brian Wessel, Community Development Director
DATE May 8, 1995
TOPIC Consideration of Resolution Authorizing Preparation of a
Modified Tax Increment Financing Plan for Tax Increment
Financing District No. 1-4, Apollo Business Park
BACKGROUND
Blue Heron Ltd. is purchasing 2.4 acres in the G.M. Development portion of the Apollo
Business Park to construct a 20,196 square foot facility with flexible leased space for
office/warehousing. The modification to the Tax Increment Financing Plan for TIF
District 1-4 will provide assistance to Blue Heron. The EDA must authorize preparation
of the plan before the city council can set the date for a public hearing.
OPTIONS
1. Adopt the resolution authorizing preparation of a modified tax increment financing
plan for TIF District No. 1-4
2. Return to staff for further consideration
RECOMMENDATION.
Option 1
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