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HomeMy WebLinkAbout06-29-1995 EDA PacketAGENDA CITY OF LINO LAKES ECONOMIC DEVELOPMENT AUTHORITY Thursday, June 29, 1995 5 p.m. 1. Call to Order 2. Approval of Minutes of EDA meetings: March 28, 1994 and June 12, 1995 3. Consideration of Resolution #95-08 adopting the Development District Program for Development District No. 3 and a Tax Increment Financing Plan for TIF District 3-1 4. Consideration of the Contract for Private Development by and between the Lino Lakes Economic Development Authority and Blue Heron Ltd. 5. Adjourn MARCH 28, 1994 CITY OF LINO LAKES ECONOMIC DEVELOPMENT AUTHORITY Staff members present: City Administrator, Randy Schumacher; Community Development Director, Brian Wessel, Consulting Attorney, Ron Batty and Clerk -Treasurer Marilyn Anderson. The purpose of the meeting was to conduct a public hearing regarding the advisability of the sale of property legally described as Lot 10, Block 1, Lino Industrial Park and to consider a resolution authorizing the sale of the property. A second resolution regarding the demolition of a substandard building on the southeast corner of Lake Drive and County Road 14 (Main Street) was also to be considered. PUBLIC HEARING CONSIDER THE ADVISABILITY OF THE SALE OF PROPERTY LEGALLY DESCRIBED AS LOT 10, BLOCK 1, LINO INDUSTRIAL PARR President Reinert opened the public hearing at 6:08 P.M. Mr. Wessel explained that a development contract with Joe Jungman, dba Accu-Tool, Inc., signed in December, 1993 calls for the Economic Development Authority (EDA) to purchase the property being developed by Accu-Tool, Inc. for $62,000.00 (as appraised) and to resell it to the developer for $1.00. A public hearing is required and the EDA must find that the sale is in the best interest of the public and furthers the City's plan for economic development. Mr. Wessel introduced Mr. Batty. Mr. Batty explained that the public hearing and adoption of the resolution is basically a housekeeping and procedural matter. The resolution authorizes the EDA to purchase the property being developed for Accu-Tool, Inc. for $62,000.00 as appraised and to resell it to the PAGE 1 ECONOMIC DEVELOPMENT AUTHORITY MARCH 28, 1994 developer for $1.00. This represents the land write -down that the EDA is willing to offer in return for locating the project in Lino Lakes. The $62,000.00 is a part of the Tax Increment Financing commitment made by the City to Accu-Tool, Inc. as designated in the development agreement signed in December, 1993. President Reinert asked if there was anyone in the audience to speak on this matter. There was no one to speak on this issue. EDA Member Elliott moved to close the public hearing at 6:10 P.M. EDA Member Bergeson seconded the motion. Motion carried unanimously. CONSIDERATION OF A RESOLUTION NO. 94 - 01 AUTHORIZING SALE OF LOT 10, BLOCK 1, LINO INDUSTRIAL PARK EDA Member Kuether moved to adopt the resolution authorizing the sale of Lot 10, Block 1, Lino Industrial Park. EDA Member Elliott seconded the motion. Motion carried unanimously. CONSIDERATION OF RESOLUTION NO 94 - 02 REGARDING DEMOLITION OF STRUCTURALLY SUBSTANDARD BUILDING AND INTENTION TO ESTABLISH REDEVELOPMENT TAX INCREMENT FINANCING DISTRICT IN THE FUTURE Mr. Wessel explained that this resolution finds the building located at 7990 Lake Drive, known as Rosses' Corner, is substandard and structurally unsound. This will enable the building to be demolished so the City can declare its intent to include the property within a redevelopment Tax Increment District at some future date. Mr. Batty explained that in 1989 the City created a redevelopment Tax Increment Financing District which included the Rosses' property. Because there was no redevelopment action in the district within the first three (3) years of the district, the district terminated. Mr. Batty recommended that the City avail itself of certain provisions in the State Statutes that would allow the building to be demolished and then recreate a redevelopment TIF district. The City would have three (3) years to create a redevelopment TIF district and another three (3) years to establish development within that district. Resolution No. 94 - 02 outlines the intention of the City on this matter. EDA Member Kuether asked if the City would incur any liability in regard to the demolition of the building. Mr. Batty noted that the language in the Demolition Agreement specifically involves the owner of the property and Anoka County. EDA Member Kuether asked when the demolition would occur. Mr. PAGE 2 ECONOMIC DEVELOPMENT AUTHORITY MARCH 28, 1994 Batty explained that it is anticipated to be completed after road restrictions are lifted. EDA Member Kuether moved to adopt EDA Resolution No. 94 - 02 Regarding Demolition of Structurally Substandard Building and Intention to Establish Redevelopment Tax Increment Financing Distinct in the Future. EDA Member Neal seconded the motion. Motion carried unanimously. EDA Member Kuether moved to approve the Demolition Agreement. EDA Member Neal seconded the motion. Motion carried unanimously. EDA Member Elliott moved to adjourn at 6:17 P.M. EDA Member Neal seconded the motion. Aye. PAGE 3 DATE: TIME: MEMBERS PRESENT: MEMBERS ABSENT: OTHER PRESENT: CITY OF LINO LAKES ECONOMIC DEVELOPMENT AUTHORITY MINUTES June 12, 1995 6:05 p.m. A. Neal, V.Reinert, L. Elliott, J. Bergeson S. Kuether Brian Wessel, Community Development Director Ron Batty, Bond Consultant Mary LaForest, Economic Development Assistant CONSIDERATION OF MINUTES EDA Member Elliott moved to approve the minutes from the June 7, 1995 EDA meeting. EDA Member Bergeson seconded the motion. Minutes were approved unanimously. CONSIDERATION OF RESOLUTION #95-07 ADOPTING MODIFIED TAX INCREMENT FINANCING PLAN FOR TIF DISTRICT NO. 1-4 Mr. Wessel explained to the EDA that this modification of the district was in response to a development proposal for a leasable office/warehouse facility in the privately owned portion of the Apollo Business Park. Copies of the modified plan were sent to the Centennial School District and Anoka County. The resolution the EDA is considering states that the EDA finds the objectives for encouraging development to be met with this modification of the plan. Mr. Batty added that EDA action is to amend the budget for the district. By adopting the plan, this does not commit the EDA to anything. The development agreement, which will be considered June 29, will be the EDA's commitment to the project. EDA Member Elliott moved to adopt the modified Tax Increment Financing Plan for TIF District No. 1-4. EDA Member Neal seconded the motion. Motion passed unanimously. PUBLIC HEARING ON THE PROPOSED SALE OF PROPERTY IN THE APOLLO BUSINESS PARK TO BLUE HERON LTD. Mr. Wessel explained that under the modification of the plan for TIF District 1-4, a public hearing is required when the EDA is writing down the cost of the land for a proposed project. The EDA is currently negotiating with Blue Heron Ltd. whereby the EDA will purchase the property from the property owner, G. M. Development. G. M. Development has raised the price to $97,408. The $35,000 in TIF commitment towards the land write down will not change. Therefore Blue Heron Ltd. will pay $ 62, 408. EDA President Reinert opened the public hearing at 6:11 p.m. After asking for and receiving no comments, EDA member Elliott moved to close the hearing. The motion was seconded by EDA Member Neal. Motion passed unanimously. CONSIDERATION OF RESOLUTION #95-06 AUTHORIZING SALE OF PROPERTY TO BLUE HERON LTD. Mr. Batty pointed out that because of the change in the price of the land to Blue Heron Ltd., the amount the EDA will pay to G.M. Development and the amount Blue Heron will pay to the EDA should be changed in the resolution. EDA Member Elliott moved to approve Resolution #95-06 authorizing the sale of property to Blue Heron with the changes reflected. EDA member Neal seconded the motion. Motion passed unanimously. SET ECONOMIC DEVELOPMENT AUTHORITY MEETING FOR THURSDA Y, JUNE 29, 1995AT5P.M. Mr. Wessel explained that the EDA had authorized the plan for TIF District 3-1. Anoka County and Centennial and White Bear Lake School Districts have been sent copies of the plan for review, and the county had signed off on it. A City Council will be scheduling a public hearing on Thursday, June 29 at 5:15 p.m. The purpose of this EDA meeting is to approve the plan. EDA Member Elliott moved to set the EDA meeting for 5 p.m. on Thursday, June 29. EDA Member Neal seconded the motion. Motion passed unanimously. ADJOURNMENT EDA Member Elliott moved to adjourn. EDA Member Neal seconded the motion. Meeting adjourned 6:20 p.m. AGENDA ITEM 3 STAFF ORIGINATOR Brian Wessel DATE June 29, 1995 TOPIC Resolution #95-08 adopting the Development District Program for Development District No. 3 and a Tax Increment Financing Plan for TIF District 3-1 The preparation of a Development District program for the Clearwater Creek Development Center on I-35E/Cty Rd 14 and creation of a new economic development TIF District 3-1 has been authorized. This will enable the city to respond to proposals to encourage industrial development in Lino Lakes. Development District 3 will include all of the parcels within the Clearwater Creek Development Center and the entire Rural Business Reserve to the north. The RBR has been included in case the city may want to create new TIF District for business development at some time in the future. TIF District 3-1 will include all of the General Business and Light Industrial parcels within Clearwater Creek with the exception of the Laborer's Training Center, which is already developed. Copies of the program and plan were sent on May 31, 1995 to the Centennial and White Bear Lake School Districts and Anoka County for review and no comments were received. OPTIONS; 1. Adopt the program for Development District No. 3 and the plan for Tax Increment Financing District 3-1. 2. Return to staff for further consideration RE OMMENDATIO Option 1 Member introduced the following resolution and moved its adoption: LINO LAKES ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. 95-08 RESOLUTION ADOPTING THE PROGRAM FOR DEVELOPMENT DISTRICT NO. 3 AND THE PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. 3-1 BE IT RESOLVED by the Lino Lakes Economic Development Authority as follows: Section 1. Recitals. 1.01. The Lino Lakes Economic Development Authority (the "EDA") is authorized under Minnesota Statutes, section 469.090 through 469.108 (the "EDA Act") , and sections 469.174 through 469.179 (the "TIF Act") and sections 469.124 through 469.134 (the "City Development Districts Act") to establish development districts and tax increment financing districts within the City in areas in which private development has not occurred to a degree or within a time period which could be anticipated in light of the area's potential. 1.02. The EDA has identified such an area in the eastern portion of the community along the I-35E corridor. 1.03. In response to several developments proposal in the area, the Authority has authorized the preparation of a development district program (the "Program") and a tax increment financing plan (the "Plan") for a new development district (the "Development District No. 3") and a new tax increment financing district ("Tax Increment Financing District No. 3-1") . The Program and Plan are contained in a document entitled "Development District Program, Development District No. 3 and Tax Increment Financing Plan, Tax Increment Financing District No. 3-1, Lino Lakes Economic Development Authority" dated June 29, 1995 which is on file with the Authority. Section 2. Authority Approval. 2.01. The Authority has reviewed the Program and the Plan. The Authority finds that the objectives of the Authority and the City of encouraging development and redevelopment within Lino Lakes will be advanced by adoption of the Program and the Plan. 2.02. The Program and the Plan are hereby adopted by the Authority. The boundaries of Development District No. 3 and of Tax Increment Financing District No. 3-1 are as described in the Program and Plan. Section 3. Further Proceedings. 3.01. It is noted that copies of the Plan were transmitted on May 31, 1995 to the boards of Independent School District Nos. 12 and No. 624 and the board of RHB90911 LN140-37 commissioners of Anoka County for review and comment and that said public bodies have been notified of the public hearing to be held on the Plan by the City. 3.02. The Authority requests the City to hold a public hearing on the Plan as soon hereafter as is practicable and recommends that the Program and the Plan be approved by the City. Dated: June 29, 1995. President ATTEST: Executive Director The motion for the adoption of the foregoing resolution was duly seconded by member thereof: and upon vote being taken thereon, the following voted in favor and the following voted against same: Whereupon said resolution was declared duly passed and adopted. RHB90911 LN140-37 AGENDA ITEM 4 STAFF ORIGINATOR Brian Wessel DATE June 29, 1995 TOPIC Development Contract between the Lino Lakes EDA and Btue Heron Ltd. A development agreement between the EDA and Blue Heron Ltd. is required to outline the conditions for public assistance for the land write down to Blue Heron. This agreement allows the EDA to purchase property from G.M. Development for $97,408 and sell it to Blue Heron Ltd. for $62,408 It also agrees to arrange with the city for the removal of $65,350.02 in special assessments upon completion of the building. The closing for the transaction has been scheduled for July 6, 1995 at 2 p.m. at the fire hall. .....TI................................... OP•O....NS`• 1. Approve the contract for private development between the EDA and Blue Heron Ltd. 2. Return to staff for further consideration MENDA TION. Option 1