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HomeMy WebLinkAbout06-07-1995 EDA PacketAGENDA CITY OF LINO LAKES ECONOMIC DEVELOPMENT AUTHORITY Wednesday June 7, 1995 5:00 p.m. 1. CaII to Order and Roll Call 2. Approval of Minutes of EDA meeting: May 22, 1995 3. Consideration of the contract for private development by and between the City of Lino Lakes and Nol-Tec Systems, Inc. 4. Public hearing on the proposed sale of property in the Apollo Business Park to Nol-Tec Systems, Inc. 4A. Consideration of Resolution 95-04 authorizing the sale of property to NoI- Tec Systems, Inc. 5. Consideration of Resolution Authorizing Preparation of Tax Increment Financing Plan for TIF District 3-1 6. Adjourn CITY OF LINO LAKES ECONOMIC DEVELOPMENT AUTHORITY MINUTES DATE: May 22, 1995 TIME: 6: 05 p.m. MEMBERS PRESENT: V. Reinert, S. Kuether, A. Neal, L. Elliott, J. Bergeson MEMBERS ABSENT: None OTHER PRESENT: Brian Wessel, Community Development Director Ron Batty, Bond Consultant Mary LaForest, Economic Development Assistant CONSIDERATION OF MINUTES EDA member Neal moved to approve the minutes from the May 8, 1995 EDA meeting. EDA member Kuether seconded the motion. Minutes were approved unanimously. CONSIDERATION OF RESOLUTION 95-03 ADOPTING TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT #1-7 Mr. Wessel reviewed with the board that the new TIF District 1-7 had been authorized to provide TIF assistance to Nol-Tec Systems, Inc. and Mag-Con, Inc. in the city - owned portion of the Apollo Business Park. The remaining unsold parcels are also to be included within the TIF District. Mr. Wessel explained that a revision had been made on the Mag-Con property, moving it across the street. While the plan authorized a maximum expenditure of $220,000 to NoI-Tec, the actual expenditure is $ 160, 649. The city's expenditure to Mag-Con is $ 151,928, rather than the $ 175,000 estimated in the plan. Mr. Batty explained that the timing of this new district was important. Creating the larger district will save the city administrative costs at a time when it is likely the business park will develop quickly. Also, impending legislation could affect cities' ability to provide TIF assistance in the future. The new district will last through nine years of increment, or 11 years from its creation, whichever comes first. EDA member Kuether questioned if the city would be competing with private developers if the entire Apollo Business Park was TIFFed. Mr. Wessel said the city has made an effort not to compete with private developers, but the Apollo Business Center is an older TIF district and does not have as much TIF capacity as the city - owned portion. However, development of the park will create more value in the privately owned portion and will likely make the parcels more attractive to business. Mr. Batty informed board members that the private developers in TIF District 1-4 had the same advantage as the city, they just had it earlier. Mr. Reinert stated private developers need to contribute to the overall effort of economic development in the same way the city does. Mr. Wessel said one new development is scheduled for the private portion of the park this summer, and another is anticipated next year. Mr. Wessel stated he was recommending adoption of Resolution No. 95-03 adopting TIF Plan for TIF District 1-7. EDA member Elliott moved adoption of the plan. EDA member Bergeson seconded the motion. Motion passed unanimously. SET EDA MEETING FOR WEDNESDA Y, JUNE 7, 1995 AT 5 P.M. Mr. Wesse/ explained an EDA meeting must be called to hold a public hearing on the proposed sale of property to Nol-Tec Systems, Inc. in the Apollo Business Park. At that meeting the development agreement between the company and the city will also be considered. EDA member Elliott moved to set the hearing for June 7 at 5 p.m. EDA member Bergeson seconded the motion. Motion passed unanimously. ADJOURNMENT EDA member Elliott moved to adjourn. EDA member Bergeson seconded the motion. Motion passed unanimously. Meeting adjourned at 6:30 p.m. AGENDA ITEM 3 RIGINATOR Brian Wessel DATE TOPIC June 7, 1995 Consideration of the Contract for Private Development between Lino Lakes EDA and Nol-Tec Systems, Inc. A development contract between the EDA and Nol-Tec Systems, Inc. is required to outline the conditions for public assistance and for the conveyance of city property to Noi-Tec. This agreement allows the EDA to purchase the property from the city for $ 117,000 and to write down the cost of the property and sell it to the developer for $54,000. The developer is responsible to pay the EDA $54,000 upon closing. The agreement also arranges for the city to remove $90,249.27 in special assessments upon completion of the new building. i; <ZN 1. Approve the contract for private development between Lino Lakes EDA and Noi-Tec Systems, Inc. 2. Return to staff for further consideration Option 1 AGENDA ITEM 4 STAFF ORIGINATOR Brian Wessel DATE June 7, 1995 TOPIC Public hearing on the proposed sale of property in the Apollo Business Park to N©I-Tec Systems, Inc. Tax Increment Financing Plan 1-7 was approved by the EDA on May 22, 1995 to provide financial assistance to NoI-Tec Systems, Inc, to assist with the cost of land and special assessments. According to state statute, the EDA is required to hold a public hearing before authorizing the sale of the property. 1. Open the public hearing 2. Continue the public hearing Option 1 AGENDA ITEM 4A STAFF ORIGINATOR Brian Wessel DATE TOPIC June 7, 1995 Consideration of Resolution 95-04 authorizing the sale of property to Nol-Tec Systems, 'Inc. Resolution 95-04 will complete the EDA`s transaction for the sale of property in the Apollo Business Park to Nol-Tec Systems, Inc. Closing on the sale of the property is scheduled for Thursday, June 8, 1995. 1. Adopt Resolution 95-04 authorizing sale of property to NoI-Tec Systems, Inc. 2. Return to staff for further consideration .................. .................. Option 1 Member introduced the following resolution and moved its adoption: LINO LAKES ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. 95-04 RESOLUTION AUTHORIZING 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 Nol-Tec Systems, Inc., a Minnesota corporation (the "Developer") whereby the EDA agreed to purchase property legally described as Lot 2 and a portion of Lot 3, Block 1, Apollo Business Park, Anoka County, Minnesota (the "Property") from the City for $117,000 and to resell it to the Developer for $54,000, subject to the EDA's compliance with the requirements of Minnesota Statutes, § 469.105. 1.04. Pursuant to Minnesota Statutes, § 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 person 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. RHB88868 LN140-36 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: , 1995. 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. RHB88868 LN190-36 AGENDA ITEM 5 STAFF ORIGINATOR Brian Wessel DATE June 7, 1995 TOPIC Consideration of Resolution 95-05 authorizing preparation of a Development District program for Development District No. '3 and a Tax crement Financing Plan for Tax Increment Financing District No. 3-1 It has been determined that the establishment of a new TIF District within the Clearwater Creek Development Center is of benefit to the city in anticipation of development on the I-35E/County Road 14 interchange area. The establishment of a new district will allow the city to provide tax increment assistance to assist development. ........................ 1. Authorize preparation of a Development District Program for Development District #3 and a Tax Increment Financing Plan for TIF District 3-1 2. Return to staff for further consideration Option 1 JUN 02 '95 14:43 HOLMES & GRAVEN P.3 Member introduced the following resolution and moved its adoption: LINO LAKES ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO, 95- 05 RESOLUTION AUTHORIZING PREPARATION OF A DEVELOPMENT DISTRICT PROGRAM FOR DEVELOPMENT DISTRICT NO. 3 AND A TAX LNCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. 3-1 WHEREAS: the portion of the city generally known as the Clearwater Creek area has not developer solely through private efforts in a mariner which is consistent with its prominence within the city; and WHEREAS, it appears that it will be necessary to utilize tax increment financing to assist development in the area to achieve the type and scale of development which is appropriate; and WHEREAS, it has been proposed that the Clearwater Creek area be included within a new deve,lopnxnt district ("Development District No. 3") and be incorporated into a new tax increment financing district ("TIF District No. 3-1") in order to offer assistance pursuant to Minnesota Statutes, .sections 469.174 through 469.179 (the "TiF Act"). NOW, THEREFORE, BE IT RESOLVED by the Lino Lakes Eco-nomic Development Authority (the "EDA") as follows: 1_ Staff and Holmes & Graven, Chartered are hereby authorized and directed to prepare a development district program (the "Program") for Development District No. 3 and a tax increment financing plan (the "Plan") for r1`1F District No. 3-1. 2. The executive director of the EDA is authorized and directed to schedule a meeting on Thursday, June 29, 1995 at p,im in the council chambers at city hall, at which time the EDA will consider adoption of the Program and Plan and the establishment of TIF District No. 3-1. The staff and consultants are authorized and directed to take all steps necessary to bring Program and the the Plan before the EDA at the June 29, 1995 meeting, R4E89769 L%r140-37 JUN UL ' y5 14= 4U HUU' t5 & bKH'Yl'1 r.4 »nia.dinew ccarig-nit•Oinort with th7P. and Zoning Board regarding the consistency of the Program and the Plan with general plans for development of Lino Lakes as a whole. 4. The city council of the city of Lino Lakes ( "City") is urges to schedule a public hearing on the proposed Progarn and Plan and TIF District to be held ?s soon after consideration of these matters by the EDA as reasonably possible. Dated: June 7, 1995. Fres-went bxecultive 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. RHEA 97 69 LN140-37