Loading...
HomeMy WebLinkAbout12-18-1995 EDA PacketAGENDA ECONOMIC DEVELOPMENT AUTHORITY MONDAY DECEMBER 18, 1995 6:00 P.M. 1. Call to Order and Roll Call 2. Consideration of Minutes of November 13, 1995 3. Consideration of Resolution No. 95-16 adopting a modified program for Development District No. 1 and Tax Increment Financing Plans for Tax Increment Financing Districts No. 1-1 and 1-2. 4. Consideration of Resolution No. 95-17 authorizing execution of reimbursements of development agreements 5. Adjourn DATE: TIME: MEMBERS PRESENT: MEMBERS ABSENT: OTHER PRESENT: CITY OF LINO LAKES ECONOMIC DEVELOPMENT AUTHORITY MINUTES November 13, 1995 6:01 p.m. V. Reinert, L. Elliott, S. Kuether, J. Bergeson, A. Neal None Brian Wessel, Community Development Director Ron Batty, Bond Consultant Randy Schumacher, City Administrator Mary LaForest, EDA Secretary CONSIDERATION OF MINUTES EDA member Elliott moved to approve the minutes from the September 11, 1995 meeting. EDA member Neal seconded the motion. Motion passed unanimously. CONSIDERATION OF DISBURSEMENT Mr. Wessel explained to the board that the disbursement for $61,400 to Anoka County was for purchase of the Kaiser property on Hodgson Road and Birch Street. EDA member Kuether stated she wanted the money put into an interest bearing account until closing. She moved to disburse the funds contingent upon the funds being placed in an interest bearing account with interest to Lino Lakes until the title is transferred. EDA member Bergeson seconded the motion. Motion passed unanimously. CONSIDERATION OF CONTRACT FOR PRIVATE DEVELOPMENT BETWEEN EDA AND FOGERTY DEVELOPMENT/CUSTOM REMODELERS Mr. Wessel explained to the board that a development contract between the EDA and Fogerty Development/Custom Remodelers allows the EDA to purchase the 3 acres of property in the Apollo Business Park from the city, and to write down the cost of the property and sell it to the developer for $100,603.50. In the agreement the developer agrees to pay the EDA $110,603.50 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 once the building is complete. Mr. Wessel stated that minor details had not been finalized with Fogerty Development. He requested the EDA approve the development contract contingent upon Mr. Wessel and Mr. Batty being comfortable with the final agreement. If the developer required any substantial changes, Mr. Wessel will bring the contract back to the EDA for approval. EDA member Kuether moved to approve the development contract with the contingency. EDA member Elliott seconded the motion. Motion passed unanimously. RESOLUTION ADOPTING MODIFIED TIF PLAN FOR TIF DISTRICT 1-7 Mr. Batty explained to the board that this modification of the plan was in response to the Fogerty Development/Custom Remodelers proposal for office/warehouse and leasable space in the city - owned portion of the Apollo Business Park. EDA member Elliott moved to adopt resolution No. 95-12. EDA member Bergeson seconded the motion. Motion passed unanimously. PUBLIC HEARING ON PROPOSED SALE OF PROPERTY IN APOLLO BUSINESS PARK EDA president Reinert opened the hearing at 6:20 p.m. Mr. Wessel explained that the purpose of the hearing was to receive comments regarding the sale of city -owned property to Fogerty Development/Custom Remodelers. No comments from the public were received. EDA member Kuether moved to close the hearing. EDA member Elliott seconded the motion. The hearing was closed at 6:21 p.m. RESOLUTION AUTHORIZING SALE OF PROPERTY TO FOGERTY DEVELOPMENT/CUSTOM REMODELERS Mr. Wessel explained that adoption of this resolution would complete the EDA's transaction for the sale of property to the developer. Closing of the property is scheduled for January. EDA member Elliott moved to adopt Resolution No. 95-13. EDA member Kuether seconded the motion. Motion passed unanimously. CONSIDERATION OF RESOLUTION AUTHORIZING PREPARATION OF A MODIFIED PROGRAM FOR DEVELOPMENT DISTRICT NO. 1 AND TIF PLANS FOR TIF DISTRICTS NO. 1-1 AND 1-2 Mr. Wessel explained that this modification was to transfer funds within the district. The city constructed the West Central trunk project from accumulated service area funds, which serves as a source of funds for many of the city's largest sanitary sewer projects. In order to provide a continuing source of funds for similar projects, this modification will allow the EDA to reimburse the city's fund from accumulated tax increment in TIF Districts 1-1 and 1-2. EDA member Kuether moved to adopt Resolution No. 95-14 authorizing preparation of the modified program and plans. EDA member Bergeson seconded the motion. Motion passed unanimously. CONSIDERATION OF RESOLUTION NO. 95-15 AMENDING RESOLUTION NO. 95-11 AUTHORIZING THE EDA TO ENTER INTO A PURCHASE AGREEMENT WITH ANOKA COUNTY Mr. Wessel explained that the EDA had authorized in September 1995 for the purchase of 6508 Hodgson Road from Anoka County, with the contingency that legal costs to obtain title be prorated among agencies benefiting from the sale. The city attorney later advised staff that this would not be possible, and the county will not agree to the sale unless Lino Lakes is willing to pay for the cost of gaining title. Mr. Hawkins also explained that the county would reject the EDA's contingency made earlier that evening regarding putting the purchase money into an interest bearing account. The county believes the price on this property was well below the market price, and has the right to spend the money. The county has agreed to refund the purchase price if title cannot be cleared. Mr. Hawkins does not anticipate any problems with gaining title. The city can't take down the building until it has title. The biggest risk is that the city will be out interest on the $61,400 if it can't get title. EDA member Elliott moved to adopt Resolution No. 95-15 authorizing the EDA to enter into a purchase agreement with the county. EDA member Kuether seconded the motion. Motion passed unanimously. EDA member Bergeson removed his second from the earlier motion to require the city's payment for the land be put into an interest bearing account until title was gained. EDA member Kuether moved to approve the disbursement to Anoka County without the contingency. EDA member Bergeson seconded the motion. Motion passed unanimously. Meeting adjourned, 6:30 p.m. AGENDA ITEM 3 STAFF ORIGINATOR: Brian Wessel DATE: 12/18/95 TOPIC: Consideration of Resolution No. 95-16 adopting modified Tax Increment Financing Plans for Tax Increment Financing District Nos. 1-1 and 1-2 BACKGROUND: On November 13 the EDA authorized preparation of a modification of the plans for Tax Increment Financing Districts 1-1 (Rice Lake Estates) and 1-2 (Sunrise Meadows) This plan modification will reimburse the city's service area fund used to finance the West Central trunk project. OPTIONS: 1. Adopt Resolution No. 95-16 adopting a modification of the Tax Increment Financing Plan for Tax Increment Financing District Nos. 1-1 and 1-2 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. 95-16 RESOLUTION ADOPTING MODIFIED TAX INCREMENT FINANCING PLANS FOR TAX INCREMENT FINANCING DISTRICT NOS. 1-1 AND 1-2 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 Development District No. 1 ("Development District") and Tax Increment Financing District No. 1-1 ("TIF District No. 1-1") on January 26, 1987. 1.02. The City established Tax Increment Financing District No. 1-2 ("TIF District No. 1-2") on December 27, 1988. 1.03. The City established the Lino Lakes Economic Development Authority (the "Authority") in 1990 and transferred authority for the Development District and TIF Districts No. 1-1 and 1-2 to the Authority. 1.04. In the past the Development District Program (the "Program") and the TIF Plans have been 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"). 1.05. It is proposed that the Plans for TIF District Nos. 1-1 and 1-2 again be modified in order to authorize reimbursement to the City of past expenditures for infrastructure improvements. 1.06. The Authority and the City have authorized preparation of modified TIF Plans which are contained in documents entitled "Modified Tax Increment Financing Plan, Tax Increment Financing District No. 1-1," and "Modified Tax Increment Financing Plan, Tax Increment Financing District No. 1-2," dated December 18, 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 Districts No. 1-1 and 1-2 will be advanced by adoption of the modified Plans. 2.02. The modified Plans are hereby adopted by the Authority. Section 3. Further Proceedings. 3.01. It is noted that copies of the modified Plans 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 Plans by the City. 3.02. The Authority requests that the City hold a public hearing on the modified Plans pursuant to Minnesota Statutes, section 469.175, subd. 4, as soon hereafter as is practicable and recommends that the modified Plan be approved by the City. 3.03. Upon approval of the modified Plans by the City, the Authority's executive director is authorized and directed to file copies of the modified Plans 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 4 STAFF ORIGINATOR: Brian Wessel DATE: 12/14/95 TOPIC: Resolution No. 95-17 authorizing execution of reimbursements of development agreements BACKGROUND: The EDA has entered into a series of development agreements with businesses moving into Apollo Business Park. In these agreements the EDA has assumed revenue obligations on behalf of the city. Essentially, the EDA has been borrowing money from the city. To date there has been no formal means for transferring of funds from the EDA to the city. This resolution states that the EDA agrees to repay its obligations with interest to the city out of tax increment, as increment is received. OPTIONS: 1. Adopt Resolution No. 95-17 authorizing execution of reimbursements of development agreements. 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 - 17 RESOLUTION AUTHORIZING EXECUTION OF REIMBURSEMENT AGREEMENTS WHEREAS, the City Council of the City of Lino Lakes (the "City) has established Development District No. I (the "Development District) and therein has established seven tax increment financing district (the "TIF Districts"); and WHEREAS, the City transferred authority for the Development District and the TIF Districts in 1990 to the Lino Lakes Economic Development Authority (the "EDA"); and WHEREAS, since that time the EDA has assisted developments within the TIF Districts by offering a variety of financial incentives, and WHEREAS, in each instance in which assistance has been offered, the EDA has entered into a development agreement specifying the terms and conditions under which the financial incentives are to be made available; and WHEREAS, the approved incentive package has frequently involved the EDA borrowing funds from the City for land acquisition costs and/or assuming responsibility for payment of special assessments levied or to be levied against benefited property for public improvements; and WHEREAS, it has been the intent of the parties that the EDA would repay the City through tax increment generated by the developments as increment is received; and WHEREAS, the EDA and the City now need to formalize the financial arrangements between them, NOW, THEREFORE, BE IT RESOLVED by the Lino Lakes Economic Development Authority as follows: The president and executive director are authorized and directed to execute reimbursement agreements on behalf of the EDA with the City in regards to the projects in the TIF Districts which have received financial assistance. The PAGE 1 reimbursement agreements shall be consistent with the previously executed development agreements between the EDA and the developers. The president, executive director and staff are hereby authorized and directed to take any and all steps necessary or convenient in order to effect the purposes of this resolution. Adopted by the Lino Lakes Economic Development Authority this 18th day of December, 1995. ATTEST: Vernon F. Reinert, Mayor 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. PAGE 2