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HomeMy WebLinkAbout11-13-1995 EDA PacketAGENDA ECONOMIC DEVELOPMENT AUTHORITY MONDAY NOVEMBER 13, 1995 6:00 P.M. 1. Call to Order and Roll Call 2. Consideration of Minutes of September 11, 1995 3. Consideration of Disbursement, November 13, 1995 4. Consideration of Contract for Private Development between Lino Lakes EDA and Fogerty Development/Custom Remodelers 5. Consideration of Resolution No. 95-12 adopting modified Tax Increment Financing Plan for TIF District No. 1-7 6. Public Hearing on the proposed sale of property in the Apollo Business Park to Fogerty Development/Custom Remodelers 6A. Consideration of Resolution No. 95-13 authorizing the sale of property to Fogerty Development/Custom Remodelers 7. Consideration of Resolution No. 95-14 authorizing preparation of a modified program for Development District No. 1 and Tax Increment Financing Plans for Tax Increment Financing Districts 1-1 and 1-2. 8. Consideration of Resolution No. 95-15 amending prior EDA Resolution No. 95-11 which authorized the EDA to enter into a purchase agreement with Anoka County for 6508 Hodgson Road 9. Adjourn CITY OF LINO LAKES ECONOMIC DEVELOPMENT AUTHORITY MINUTES DATE: September 11, 1995 TIME: 6:03 p.m. MEMBERS PRESENT: V. Reinert, L. Elliott, S. Kuether, J. Bergeson MEMBERS ABSENT: A. Neal OTHER PRESENT.- Brian Wessel, Community Development Director Randy Schumacher, City Administrator Mary LaForest, Economic Development Assistant CONSIDERATION OF MINUTES EDA Member Kuether moved to approve the minutes from the August 14, 1995 EDA meeting. EDA Member Elliott seconded the motion. Motion passed unanimously. CONSIDERATION OF RESOLUTION NO. 95-10 AUTHORIZING PREPARATION OF A MODIFICATION OF TAX INCREMENT FINANCING DISTRICT 1-7 Mr. Wessel explained to the board members that this resolution had originally been prepared to provide financial assistance to Wisconsin Magneto, a distributor of Briggs & Stratton engine parts. The company had several offers from different cities, and they had informed Mr. Wessel that they were choosing Anoka's offer. The two offers were comparable, but Anoka finances all land and assessments up front. Mr. Whalen, general manager of the company, preferred the Lino Lakes location, but corporate officials were opposed to locating next to the prison. Another prospect who expressed interest in the site was anxious to move through the approval process and begin construction this fall. Developer Bill Fogerty and Custom Remodelers, Inc. are interested in purchasing 3 acres to construct a 30,000 square foot facility. Custom Remodelers will occupy one-half the building for its telemarketing/office/warehouse space, and Mr. Fogerty will lease the rest. Custom Remodelers has been in business 5 years, with substantial sales growth. While some negotiations must still be worked out, Mr. Wessel explained that adopting this resolution would merely allow the process to begin to ensure construction could begin before winter. EDA President Reinert questioned whether a remodeling company would have outside storage, since the company would be highly visible from the freeway. Mr. Wessel said he toured the company, and they claim most of their inventory is siding and windows, and needs to be kept indoors. Any outside storage is an issue that will be considered in the design scheme. Mr. Bergeson commented that some telemarketing firms were not reputable. Mr. Wessel indicated that this company is both stable and reputable. EDA Member Elliott moved to approve Resolution No. 95-10. EDA Member Bergeson seconded the motion. Motion passed unanimously. CONSIDERATION OF RESOLUTION NO. 95-11 AUTHORIZING THE EDA TO ENTER INTO A PURCHASE AGREEMENT WITH ANOKA COUNTY FOR 6508 HODGSON ROAD Mr. Wessel explained that city attorney Bill Hawkins had been negotiating with Anoka County for the sale of a . 7-acre property on the corner of Hodgson Road/Birch Street that had been seized under forfeiture laws. The county is willing to sell it to the city for its fair market value of $61,400. The city will be required to register title in Anoka County District Court, which will cost approximately $3,000-5,000. After checking comparable real estate with a local real estate agent, Mr. Wessel said he estimates the actual market value to be in the range of $90,000-100,000, leaving a cushion of at least $20,000 for clean up and site preparation costs. Mr. Wessel read the resolution, which directs staff and city attorney to enter into a purchase agreement with the county. EDA Member Kuether stated that she was not comfortable with the city picking up legal fees, and she believed that all the entities receiving a share of the forfeiture proceeds should pay a share of the fees. She also did not want to pay the $61,400 in advance of gaining clear title. She suggested the money go into an interest bearing account. Reinert questioned why getting a clear title was a problem. Ms. LaForest indicated that Minnesota drug forfeiture law was unclear regarding a public entity's ability to get title, and this legal proceeding was necessary to interpret the law. Mr. Schumacher stated that this would be considered a redevelopment activity, and any action regarding this is in the domain of the EDA. Kuether suggested that an amendment be added to the resolution that states that legal costs be prorated among benefiting agencies. Kuether moved to approve the amendment. Elliott seconded the motion. Motion passed unanimously. Kuether moved to approve the amended resolution. Elliott seconded the motion. Motion passed unanimously. ADJOURNMENT EDA Member Elliott moved to adjourn. Bergeson seconded the motion. Motion passed unanimously. Meeting adjourned at 6:30 p.m. Date: 11/13/95 Lino Lakes Economic Development Authority DISBURSEMENT ANOKA COUNTY (PURCHASE OF 6508 HODGSON ROAD): $61,400.00 AGENDA ITEM 4 STAFF ORIGINATOR: Brian Wessel DATE: 11/13/95 TOPIC: Consideration of the Contract for Private Development between the City of Lino Lakes and Fogerty Development/Custom Remodelers BACKGROUND: A development contract between the EDA and the developer (Fogerty Development/Custom Remodelers) is required to outline the conditions for public assistance and for the conveyance of city property. 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 $100,603.50. The developer agrees to pay the EDA $100,603.50 at closing, and the EDA will reimburse the developer that amount on a pay-as-you-go basis. The agreement also arranges for the city to remove $84,207 in special assessments upon completion of the new building. OPTIONS: 1. Approve the development contract between the Lino Lakes EDA and Fogerty Development/Custom Remodelers 2. Return to staff for further consideration RECOMMENDATION: Option 1 AGENDA ITEM 5 STAFF ORIGINATOR: Brian Wessel DATE: 11/13/95 TOPIC: Resolution #95-12 adopting the modified Tax Increment Financing Plan for TIF District 1-7 (Apollo Business Park) BACKGROUND: The preparation of a modification of the Tax Increment Plan for TIF District 1-7 was authorized by the EDA on September 11, 1995. This modification was due to the nature and extend of public and private improvements to be constructed within TIF District 1-7 in response to a development proposal for an office/warehouse and leasable space in the privately owned portion of the Apollo Business Park. Copies were sent to Centennial School District and Anoka County for review. This resolution states that the EDA finds the objectives for encouraging development to be met with this modification of the plan. OPTIONS: 1. Adopt resolution #95-12 for modification of the Tax Increment Plan for TIF District No. 1-7. 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. 95-12 RESOLUTION ADOPTING MODIFIED TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. 1-7 BE IT RESOLVED by the Lino Lakes Economic Development Authority as follows: Section 1. Recitals. 1.01. The City Council of the City of Lino Lakes (the "City") established the Lino Lakes Economic Development Authority (the "Authority") in 1990 and conferred upon it responsibility for economic development within Lino Lakes. 1.02. The City adopted a tax increment financing plan (the "Plan") for Tax Increment Financing District No. 1-7 on May 22, 1995. 1.03. In response to a development proposal from Fogerty Development/Custom Remodelers, the Authority and the City have authorized the preparation of a modified Plan which is contained in a document entitled "Modified Tax Increment Financing Plan, Tax Increment Financing District No. 1-7," dated November 13, 1995 and on file with the Authority. Section 2. Authority Approval. 2.01. The Authority finds that the objectives of the Authority and the City of encouraging development and redevelopment within Tax Increment Financing District No. 1-7 will be advanced by adoption of the modified Plan. 2.02. The modified Plan is hereby adopted by the Authority. Section 3. Further Proceedings. 3.01. It is noted that copies of the modified Plan have been transmitted to the board of Independent School District No. 12 and the board of commissioners of Anoka County for review and comment and that said public bodies have been notified of the hearing to be held on the modified Plan by the City. 3.02. The Authority requests that the City hold a public hearing on the modified Plan pursuant to Minnesota Statutes, section 469.175 as soon hereafter as is practicable and recommends that the modified Plan be approved by the City. 3.03. Upon approval of the modified Plan by the City, the Authority's executive director is authorized and directed to file a copy of the modified Plan with the Minnesota commissioner of revenue. Adopted by the Lino Lakes Economic Development Authority, Lino Lakes, Minnesota this day of , 1995. Vernon F. Reinert, President ATTEST: Randall Schumacher, 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 6 STAFF ORIGINATOR: Brian Wessel DATE: 11/13/95 TOPIC: Hearing on the proposed sale of property to Fogerty Development/Custom Remodelers BACKGROUND: The Economic Development Authority has adopted the modification to Tax Increment Financing District 1-7 to provide financial assistance to Fogerty Development/Custom Remodelers to build a 32,000 square foot office/warehouse and leased space in the Apollo Business Park. A public hearing is required when the EDA is writing down the cost of the land for a proposed project. The EDA will purchase the property from the city and convey it to the developer as outlined in the development agreement. OPTIONS: 1. Open the public hearing 2. Continue the public hearing RECOMMENDATION: Option 1 AGENDA ITEM 6A STAFF ORIGINATOR: Brian Wessel DATE: 11/13/95 TOPIC: Consideration of Resolution No. 95-13 authorizing sale of property to Fogerty Development/Custom Remodelers BACKGROUND: Resolution No. 95-13 will complete the EDA's transaction for the sale of property in the Apollo Business Park to Fogerty Development/Custom Remodelers. Closing on the sale of the property will be scheduled in January. OPTIONS: 1. Adopt Resolution No. 95-13 authorizing sale of property to Fogerty Development/Custom Remodelers 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. 95-13 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 Fogerty Development, a Minnesota Corporation (the "Developer") whereby the EDA agreed to purchase property legally described as that part of Outlot B, Apollo Business Park, Anoka County, Minnesota lying easterly of the following described line: Beginning at the most northerly corner of said Outlot B; thence on an assumed bearing of South 58 degrees 02 minutes 08 seconds West along the northwesterly line of said Outlot B 126.35 feet; thence southwesterly along said northwesterly line and along a tangential curve concave to the southeast, having a radius of 799.00 feet, a central angle of 17 degrees 50 minutes 56 seconds and an arc length of 248.91 feet; thence South 40 degrees 11 minutes 12 seconds West along said northwesterly line and tangent to said curve 75.00 feet; thence South 49 degrees 48 minutes 48 seconds East 323.37 feet to the southeasterly line of said Outlot B and there terminating. Except the northeasterly 10.00 feet thereof. (the "Property") from the City for $1 17,000.00 and to resell it to the Developer for $100,603.50, subject to the EDA's compliance with the requirements of Minnesota Statutes, section 469.105. I.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 published 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: , 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. AGENDA ITEM 7 STAFF ORIGINATOR: Brian Wessel DATE: 11/13/95 TOPIC: Consideration of Resolution No. 95-14 authorizing the preparation of a modified program for Development District No. 1 and Tax Increment Financing Plans for Tax Increment Financing Districts No. 1-1 and 1-2 BACKGROUND: A modification of the program and the plans for Tax Increment Financing Districts 1-1 (Rice Lake Estates) and 1-2 (Sunrise Meadows) is required to transfer TIF funds within the district. This resolution will begin preparation of these plans and set an EDA meeting for December 18, 1995 at 6 p.m. to adopt the modified program and plan. OPTIONS: 1. Adopt Resolution No. 95-14 authorizing the preparation of a modified program for Development District No. 1 and Tax Increment Financing Plans for TIF Districts No. 1-1 and 1-2 2. Return to staff for further consideration RECOMMENDATION: Option 1 Member adoption: introduced the following resolution and moved its LINO LAKES ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. 95-14 RESOLUTION AUTHORIZING PREPARATION OF A MODIFIED PROGRAM FOR DEVELOPMENT DISTRICT NO. 1 AND TAX INCREMENT FINANCING PLANS FOR TAX INCREMENT FINANCING DISTRICTS NO. 1-1 AND NO. 1-2 WHEREAS, on January 26, 1987 the city council of the City of Lino Lakes (the "City") established Development District No. 1("Development District") and Tax Increment Financing District No. 1-1 ("TIF District No. 1-1") therein; WHEREAS, on December 27, 1988 the City established Tax Increment Financing District No. 1-2 ("TIF District No. 1-2") within the Development District; and WHEREAS, the City established the Development District and Tax Increment Financing Districts 1-1 and 1-2 in order to promote development within areas of the community which have not developed solely through private efforts in a manner which is consistent with their prominence; and WHEREAS, it has been proposed that the Development District Program and the TIF Plans be modified to assist improvements within the Development District pursuant to Minnesota Statutes, sections 469.174 through 469.179 (the "TIF Act") and sections 469.124 through 469.134 (the "City Development District Act"); and WHEREAS, the City has transferred authority for the Development District and TIF Districts No. 1-1 and 1-2 to the Lino Lakes Economic Development Authority (the "EDA"); NOW, THEREFORE, BE IT RESOLVED by the EDA as follows: 1. Staff and Kennedy & Graven, Chartered are hereby authorized and directed to prepare a modified development district program (the "Program") for Development District No. 1 and modified tax increment financing Plans (the "Plans") for TIF District No. 1-1 and TIF District No. 1-2. 2. The executive director of the EDA is authorized and directed to schedule a meeting on December 18, 1995 at 6 p.m. in the council chambers at city hall, at which time the EDA will consider adoption of the modified Program for Development District No. 1 and the modified Plans for TIF District No. 1-1 and TIF District No. 1-2. 3. The staff and consultants are authorized and directed to take any and all steps necessary to bring the modified Program and Plan before the EDA at the December 18, 1995 meeting. 4. The City is urged to schedule a public hearing on the modified Program and Plan to be held as soon after consideration of these matters by the EDA as reasonably possible. Dated: November 13, 1995 Vernon F. Reinert, President ATTEST: Randall Schumacher, Executive Director The motion for 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 8 STAFF ORIGINATOR: Brian Wessel DATE: 11/13/95 TOPIC: Consideration of Resolution No. 95-15 amending Resolution No. 95-11, authorizing the EDA to enter into a purchase agreement with Anoka County BACKGROUND: On September 11, 1995 the EDA authorized staff and the city attorney to enter into a purchase agreement with Anoka County for the purchase of 6508 Hodgson Road. The resolution included beginning legal proceedings to register title to the city. Because this property was seized by the county under drug forfeiture laws, the proceeds of a sale are divided among numerous public agencies. EDA members concluded since other agencies would benefit from the sale, the resolution should be amended to state that legal costs for these proceedings be prorated among benefiting agencies. The city attorney has since advised us that this will not be possible. The benefiting agencies are under a joint powers agreement, to which Lino Lakes does not belong. The county will not agree to the sale unless Lino Lakes is willing to pay the cost of registering title. OPTIONS: 1. Adopt Resolution No. 95-15 which removes reference to prorating legal costs among benefiting agencies. 2. Return to staff for further consideration RECOMMENDATION: Option 1 Member adoption: introduced the following resolution and moved its LINO LAKES ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION 95-15 RESOLUTION AUTHORIZING THE EDA TO ENTER INTO A PURCHASE AGREEMENT WITH ANOKA COUNTY FOR 6508 HODGSON ROAD WHEREAS, Anoka County has claim to real property at 6508 Hodgson Road in Lino Lakes through a 1989 forfeiture procedure governed by federal statutes; WHEREAS, Anoka County has offered to sell the property to the City of Lino Lakes for its fair market value of $61,400; WHEREAS, the property is zoned General Business and a commercial use would serve the best interests of the community; NOW, THEREFORE, BE IT RESOLVED by the Lino Lakes Economic Development Authority as follows: 1. Staff and City Attorney are hereby authorized and directed to enter into a purchase agreement with Anoka County for the purchase of the property at the fair market value of $61,400; 2. Staff and City Attorney are authorized and directed to commence the legal proceeding to register title to the City of Lino Lakes through Anoka County District Court. 3. Staff and City Attorney are authorized and directed to include in the purchase agreement terms which would require refund of the purchase price by Anoka County if the City is unable to successfully register title; and any and all protections deemed necessary to safeguard the interests of the City of Lino Lakes. Dated: September 11, 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.