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HomeMy WebLinkAbout10-12-2004 EDA PacketAGENDA ECONOMIC DEVELOPMENT AUTHORITY TUESDAY OCTOBER 12, 2004 FOLLOWING REGULAR CITY COUNCIL MEETING 1. Call to Order and Roll Call 2. Consideration of Minutes of September 27, 2004 3. Consideration of Resolution No. 04-03 Authorizing entering into a Contract for Private Development by and between Lino Lakes Economic Development Authority and Legacy Holdings/Lino Lakes, LLC 4. Adjourn DRAFT DATE MEMBERS PRESENT MEMBERS ABSENT OTHERS PRESENT CITY OF LINO LAKES ECONOMIC DEVELOPMENT AUTHORITY MINUTES : September 27, 2004 : J. Bergeson, D. Carlson, C. Dahl, J. Reinert, D. Stoltz : None : Gordon Heitke, Mary Divine, Michael Grochala and Bill Hawkins CONSIDERATION OF MINUTES OF FEBRUARY 23, 2004 EDA Member Bergeson moved to approve the minutes of the February 23, 2004 EDA Meeting. EDA Member Stoltz seconded the motion. Motion passed unanimously. CONSIDERATION OF SALE OF PROPERTY TO E.G. RUD & SONS LAND SURVEYORS A. Consideration of Resolution No. 04-02 Authorizing the Sale of Property. Ms. Divine summarized the Staff report, indicating Staff is recommending approval. President Reinert opened the public hearing at 6:12 p.m. The EDA asked about access to the property, which Ms. Divine explained comes from Hodgson Road and also a left turn lane that goes to the Shaw Property, where access would have to be granted. EDA Member Carlson expressed concern about the amount of Lakeshore, and if the City was getting the full value for the property. She indicated it is really six acres of property, even if it is not all buildable land. She questioned why the City would not try to keep land along the lake since they are not being paid for it anyway. She noted it is a good company that will provide a quality building, but she is concerned they are missing an opportunity for public ownership of lakeshore at a time when they are looking to purchase lakeshore. Staff explained how the piece of property came to be, noting it was pieced together from several other situations. The utility easement on the property was clarified, as well as the fact that that easement is a power company easement and cannot be vacated. Ms. Divine clarified the appraisal is based on the full amount of acreage and on market value, not on the buildable portion of land. She indicated while this property was not advertised for sale because Staff was working on clearing up title issues, they have had people come in and ask about it, and when the property was appraised they received this full market value offer, which they brought to the EDA. She indicated if there were going to turn down this offer and put it on the market they would have to make the decision to sell it for more than the appraised value. EDA MINUTES SEPTEMBER 27, 2004 DRAFT 46 Jason Rud, Rud and Sons gave the history of the company, noting they are anxious to move their 47 offices to this property in Lino Lakes. He noted they have one tenant, who is a civil engineer that will 48 move with them, and gave a brief description of the type of building they would envision. 49 50 President Reinert closed the public hearing at 6:31 p.m. 51 52 City Attorney Hawkins noted a correction to the resolution, the second to the last paragraph, which 53 should read `Staff and City Attorney are hereby authorized and directed to prepare a purchase 54 agreement with the Buyer for the purchase of the property for the amount of $300,000.' 55 56 EDA Member Bergeson stated he would support this action, and thinks Staff has negotiated in good 57 faith. He indicated this is not necessarily a highly saleable parcel, and he thinks the use is ideal. He 58 does not want a high traffic user close to the corner. 59 60 EDA Member Dahl disagreed, indicating she feels this is a highly prized corner as well as being 61 lakeshore. She did agree Staff did a good job bringing this offer. 62 63 Community Development Director Grochala offered that the plat includes a portion of the lake, so 64 nearly half of the six acres is lake, and the remaining land is further encumbered with easements. He 65 stated after applying setbacks, the area you could actually place a building on is about a half acre 66 parcel, therefore the appraiser averaged out the square footage values and came up with an appraisal 67 of $300,000. He noted they are getting more out of this parcel than Staff thought possible. 68 69 EDA Member Stoltz expressed his support for the sale and for Staffs process for determining fair 70 market value. He added this parcel has been dormant on the tax rolls so the longer the City delays the 71 sale the longer the lack of income will continue. He agreed it is a gateway to the community, and 72 believes the Rud and Sons building would be a great addition to the community. 73 74 EDA Member Carlson noted the ponding and following easement agreement is important to her, and 75 she thinks $300,000 is an appropriate bid, so she will support. 76 77 President Reinert echoed the comments that this is a good use of land. He indicated he agrees with 78 EDA Member Carlson that they should save lakeshore when they can, but would like to see it be 79 useable lakeshore and not just add maintenance for the City. 80 81 EDA Member Bergeson moved to adopt Resolution No. 04-02 authorizing the sale of property at the 82 northeast corner of Highway 23 and Highway 49, with the correction noted by City Attorney 83 Hawkins. EDA Member Stoltz seconded the motion. 84 85 Motion carried unanimously. 86 87 ADJOURNMENT 88 89 There being no further business, EDA Member Carlson moved to adjourn. EDA Member Bergeson 90 seconded the motion. Motion passed unanimously. 2 EDA MINUTES SEPTEMBER 27, 2004 DRAFT 91 92 Meeting adjourned at 6:50 p.m. 93 94 Transcribed by: 95 Karen Bucklen 96 TimeSaver Off Site Secretarial, Inc. 97 3 AGENDA ITEM 3 STAFF ORIGINATOR: Mary Alice Divine DATE: 10/12/04 TOPIC: Consideration of Resolution No. 04-03 authorizing entering into a Development Contract with Legacy Holdings/Lino Lakes, LLC VOTE REQUIRED: 3/5 BACKGROUND: Earlier this evening the City Council considered approving a Contract for Private Development between the city and Legacy Holdings, LLC. This redevelopment contract involves tax increment financing generated from TIF District No. 1-11. Both the city and the EDA have various responsibilities under this contract. The EDA technically controls the tax increment now that a TIF District has been established. (The City Council was required to hold a hearing a approve the TIF Plan, but once that happens, the district is controlled by the EDA.) Therefore, the EDA issues the tax increment pay-as-you-go note, and enters into other agreements regarding the tax increment. The City controls the source of funds for the interfund loan and the Met Council grant. Therefore, the City needs to approve these items in the contract. Also, the City governs land use approvals such as the plat and PUD, which are referred to under the contract. Finally, the City must issue the TIF Bonds (though the pledge of tax increment comes from the EDA). For all these reasons, both the City and EDA are included as parties to the contract. OPTIONS: 1. Approve Resolution No. 04-03 authorizing A Contract for Private Development. 2. Do not authorize the contract 3. Return to staff for further consideration RECOMMENDATION: Option 1 LINO LAKES ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. 04-03 RESOLUTION APPROVING A CONTRACT FOR PRIVATE DEVELOPMENT BETWEEN THE LINO LAKES ECONOMIC DEVELOPMENT AUTHORITY, THE CITY OF LINO LAKES AND LEGACY HOLDINGS/LINO LAKES, LLC BE IT RESOLVED By the Lino Lakes Economic Development Authority ("Authority") of the City of Lino Lakes, Minnesota ("City") as follows: Section 1. Recitals. 1.01. The Authority administers Development District No. 1 (the "Project)" pursuant to Minnesota Statutes, Sections 469.124 to 469.134 ("Development District Act"). 1.02. The Authority, the City and Legacy Holdings/Lino Lakes, LLC (the "Developer") have proposed to enter into a into a Contract for Private Development (the "Contract"), setting forth the terms and conditions of redevelopment of certain property within the Project, referred to generally as the Legacy at Woods Edge Project. 1.03. The Authority has reviewed the Contract and finds that the execution thereof and performance of the Authority's obligations thereunder are in the best interest of the City and its residents. Section 2. Authority Approval; Further Proceedings. 2.01. The Contract as presented to the Authority is hereby in all respects approved, subject to modifications that do not alter the substance of the transaction and that are approved by the President and Executive Director provided that execution of the documents by such officials shall be conclusive evidence of approval. 2.02. The President and Executive Director are hereby authorized to execute on behalf of the Authority the Contract and any documents referenced therein requiring execution by the Authority, and to carry out, on behalf of the Authority its obligations thereunder. SJB-253373v1 LN 140-80 Approved by the Economic Development Authority of the City of Lino Lakes, Minnesota this of , 2004. President AT 1'EST: Executive Director SJB-253373v1 LN 140-80