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HomeMy WebLinkAbout02-23-2004 EDA PacketAGENDA ECONOMIC DEVELOPMENT AUTHORITY MONDAY FEBRUARY 23, 2004 6:00 P.M. 1. Call to Order and Roll Call 2. Consideration of Minutes of November 24, 2003 f �� 3. Consideration of Annual Appointments 4. Public Hearing: Consideration of Sale of Property to Anoka County 4A. Resolution No. 04-01 Authorizing Sale of Property to Anoka County 5. Adjourn I 0 a--c, 4- A4 1 th--v(c r 1 CITY OF LINO LAKES 2 ECONOMIC DEVELOPMENT AUTHORITY 3 MINUTES 4 5 6 DATE : November 24, 2003 7 MEMBERS PRESENT : J. Bergeson, D. Carlson, C. Dahl, J. O'Donnell, 8 J. Reinert 9 MEMBERS ABSENT : None 10 OTHERS PRESENT : Mary Divine, Dan Tesch, and Bill 11 Hawkins 12 13 CONSIDERATION OF MINUTES OF OCTOBER 27, 2003 14 15 EDA Member Dahl moved to approve the October 27, 2003 minutes, as presented. EDA Member 16 Bergeson seconded the motion. Motion passed. 17 18 CONSIDERATION OF RESOLUTION NO. 03-11 ADOPTING A MODIFIED PROGRAM 19 FOR DEVELOPMENT DISTRICT NO. 1 AND ESTABLISHING TAX INCREMENT 20 FINANCING DISTRICT NO. 1-11 (WOODS EDGE) 21 22 Ms. Divine summarized the Staff report, stating at the last work session there was a question 23 regarding the benefits they might see from this district. She indicated Paul Steinman is here from 24 Springsted with updates. She indicated he has a comparison of the Marketplace site and Woods 25 Edge, as well as a comparison of tax generated within the TIF and outside TIF. She advised 26 $25,801,343 is the total amount of tax expected to be generated within the TIF District, but as 27 discussed, part of the project is set to take place outside of the TIF district, which is $11,191,706 over 28 25 years. 29 30 EDA Member Reinert asked if that $11 million takes into consideration no other growth. Mr. 31 Steinman indicated it considers the Hartford project outside TIF, but no inflationary growth. He 32 noted this is a tax comparison based on City, County and School District taxes. 33 34 EDA President Carlson asked what the difference is between the $25,801,343 and $26,450,000 that 35 they had discussed previously. Mr. Steinman stated $26,450,000 is the bottom line of the budget, and 36 probably contains an interest component. He noted there is also a $450,000 livable communities 37 grant, which is part of the budget amount of $26,450,000. 38 39 EDA President Carlson clarified that on the Woods Edge Tax Revenue Comparison, $26 million 40 represents the total project, and $11 million is taxes they will collect right away. Mr. Steinman stated 41 that was correct. 42 43 EDA Member O'Donnell verified that $25,801,343 is the capacity of the TIF District and in no way 44 represents what may be granted. Mr. Steinman stated that was correct. 45 EDA MINUTES NOVEMBER 24, 2003 DRAFT 46 EDA Member O'Donnell moved to adopt Resolution No. 03-011, modifying development District 47 No. 1 and establishing Tax Increment Financing District No. 1-11. EDA Member Reinert seconded 48 the motion. 49 50 EDA President Carlson noted this is a difficult decision for her because of the potential amount of 51 money, and she thinks there are loopholes in the plan, such as where they say they do not intend to 52 bond, but are keeping the option open. She is glad the city intends to collect on some of the project, 53 but they do not know what exactly they will spend, or what the return will be. She sees a lot of road 54 costs, and feels the majority of the road costs should be borne by the Federal, State and County 55 governments. 56 57 Ms. Divine indicated the noted loopholes are not actually loopholes, as any decision made will have 58 to be a separate decision made by the City Council. She stated that while it may provide flexibility, 59 each decision will have to be an informed decision based on the information presented. This plan 60 merely sets a budget and establishes the district, it leaves the city council free to make decisions as 61 they move forward. 62 63 EDA Member Bergeson reminded the Board that any TIF project has to pass the "but for" test as well. 64 65 EDA Member Reinert indicated that the cost of roads or contribution of land or other valuable 66 contribution from the City will be a decision made by the City Council after all the numbers and 67 information is presented. He stated that while this TIF district may provide them flexibility, the City 68 Council will have the ability to make a decision. 69 70 Vote: 3 Ayes, 2 Nays. Motion carried. EDA President Carlson and EDA Member Dahl opposed. 71 72 ADJOURNMENT 73 74 There being no further business, EDA Member O'Donnell moved to adjourn. EDA Member 75 Bergeson seconded the motion. Motion passed unanimously. 76 77 Meeting adjourned at 6:54 p.m. 78 79 80 81 82 83 Transcribed by: 84 Karen Whaley 85 TimeSaver Off Site Secretarial, Inc. 86 2 AGENDA ITEM 3 STAFF MEMBER Mary Alice Divine DATE February 23, 2004 SUBJECT Annual Appointments VOTE REQUIRED Simple Majority BACKGROUND Each year the Economic Development Authority is required to make a number of appointments at its first meeting of the year. The following is a list of appointments that need to be made: 2003 2004 Recommended 1. President Donna Carlson (Council Prerogative) 2 Vice President Jeff O'Donnell (Council Prerogative) 3. Treasurer Caroline Dahl (Council Prerogative) 4. Secretary Economic Development Assistant Economic Development Assistant 5. Assistant Treasurer Finance Director Finance Director 6. Executive Director City Administrator City Administrator 7. Official Newspaper Quad Community Press Quad Community Press 8. Legal Depositories Community National Bank Wells Fargo US Bank Merrill Lynch RBC Dain Rauscher Wachovia Prudential Securities Lino Lakes State Bank LMC 4M Fund Smith,Barney, Citi Group Others as needed (Council prerogative) _ OPTIONS 1. 2. 3. 4. 5. 6. 7. 8. 112A1 Si 3- 1— Glefg2ct. s I — 4ja t RECOMMENDATION As recommended or council prerogative. AGENDA ITEM 4 STAFF ORIGINATOR: Mary Alice Divine DATE: 2/23/04 TOPIC: Public Hearing: Consideration of Resolution No. 04- 01 Authorizing the Sale of Property at 6508 Hodgson Road VOTE REQUIRED: 3/5 BACKGROUND: In 1995 the city purchased from Anoka County a .7-acre property known as the "Kaiser" property on the northeast corner of Birch Street and Hodgson Road. The property has a small abandoned home and several outbuildings, and is zoned General Business. The purchase price was $61,400. The intent for the use of the property was to make it available for commercial development. However, the county later concluded that it needed a significant amount of the parcel for right of way for future reconstruction of Hodgson Road. The Anoka County has agreed to purchase the parcel back from the city for the amount of $88,400. The county intends to retain a portion of the parcel for right-of-way and will subsequently offer the remainder of the land to the owner of Apitz Garage for potential expansion of that facility. OPTIONS: 1. Open the Public Hearing 2. Continue the Public Hearing RECOMMENDATION: Option 1 LINO LAKES ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. 04-01 RESOLUTION AUTHORIZING THE SALE OF PROPERTY WHEREAS, The Lino Lakes Economic Development Authority (the "Authority") authorized entering into a purchase agreement with Anoka County for the purchase of a property at 6508 Hodgson Road (the "Property") on September 11, 1995; and WHEREAS, the real property is described as: That part of the Northeast Quarter of the Southeast Quarter of Section 30, Township 31, Range 22, Anoka County, Minnesota, described as follows: Beginning at the intersection of the south line of said Northeast Quarter with the centerline of State Highway No. 49 as now established; thence east along said south line 208 feet to a point 858.5 feet west from the southeast corner thereof; thence north at right angles a distance of 220 feet; thence west and parallel with said south line of the Northeast Quarter of the Southeast Quarter to said centerline of State Highway No. 49; thence southeasterly along said centerline to the point of beginning. Except that part platted as Anoka County Highway Right of Way Plat No. 11.; and WHEREAS, Anoka County has agreed to purchase the property back from the Authority for an amount of $88,400; and WHEREAS, the Authority has determined that the Property is not longer needed for any public purpose. NOW, THEREFORE, BE IT RESOLVED by the Lino Lakes Economic Development Authority as follows: Staff and City Attorney are hereby authorized and directed to enter into a purchase agreement with Anoka County for the purchase of the property for the amount of $88,400. The President, Executive Director, staff and City Attorney are hereby authorized and directed to take any and all other steps necessary or convenient in order to accomplish the sale of the Property. February 23, 2004. President ATTEST: Executive Director Lino Lakes Economic Development Authority (EDA) Meeting on February 23, 2004 EDA Resolution No. 04-01 EDA Member Bergeson introduced EDA Resolution No. 04-01 and moved its adoption. The motion for adoption of the foregoing resolution was duly seconded by EDA Member Reinert and upon vote being taken thereon, the following voted in favor thereof: Reinert, Bergeson, Carlson and O'Donnell. The following voted against same: Dahl. Whereupon said resolution was declared passed and adopted. CERTIFICATION OF EDA RESOLUTION NO. 04-01 AUTHORIZING THE SALE OF PROPERTY STATE OF MINNESOTA ) COUNTY OF ANOKA ) CITY OF LINO LAKES ) I, the undersigned, being the duly qualified City Clerk of the City of Lino Lakes, Minnesota, do hereby certify that the attached document is a true copy of EDA Resolution No. 04-01 with the original thereof on file in the City Clerk's office, and the same is a full, true and complete copy insofar as the same relates to: CERTIFICATION OF EDA RESOLUTION NO. 03-03 AUTHORIZING THE SALE OF PROPERTY. Witness my hand as said City Clerk and the Corporate Seal of the City this 23th day of February, 2004. (SEAL) LINO LAKES ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO.04-01 RESOLUTION AUTHORIZING THE SALE OF PROPERTY WHEREAS, The Lino Lakes Economic Development Authority (the "Authority") authorized entering into a purchase agreement with Anoka County for the purchase of a property at 6508 Hodgson Road (the "Property") on September 11, 1995; and WHEREAS, the real property is described as: That part of the Northeast Quarter of the Southeast Quarter of Section 30, Township 31, Range 22, Anoka County, Minnesota, described as follows: Beginning at the intersection of the south line of said Northeast Quarter with the centerline of State Highway No. 49. as now established; thence east along said south line 208 feet to a point 858.5 feet west from the southeast corner thereof; thence north at right angles a distance of 220 feet; thence west and parallel with said south line of the Northeast Quarter of the Southeast Quarter to said centerline of State Highway No. 49; thence southeasterly along said centerline to the point of beginning. Except that part platted as Anoka County Highway Right of Way Plat No. 11.; and WHEREAS, Anoka County has agreed to purchase the property back from -the Authority for an amount of $88,400; and WHEREAS, the Authority has determined that the Property is not longer needed for any public purpose. NOW, THEREFORE, BE IT RESOLVED by the Lino Lakes Economic Development Authority as follows: Staff and City Attorney are hereby authorized and directed to enter into a purchase agreement with Anoka County for the purchase of the property for the amount of $88,400. The President, Executive Director, staff and City Attorney are hereby authorized and directed to take any and all other steps necessary or convenient in order to accomplish the sale of the Property. February 23, 2004. Al 1'EST: LINO LAKES ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. 04-01 RESOLUTION AUTHORIZING THE SALE OF PROPERTY WHEREAS, The Lino Lakes Economic Development Authority (the "Authority") authorized entering into a purchase agreement with Anoka County for the purchase of a property at 6508 Hodgson Road (the "Property") on September 11, 1995; and WHEREAS, the real property is described as: That part of the Northeast Quarter of the Southeast Quarter of Section 30, Township 31, Range 22, Anoka County, Minnesota, described as follows: Beginning at the intersection of the south line of said Northeast Quarter with the centerline of State Highway No. 49 as now established; thence east along said south line 208 feet to a point 858.5 feet west from the southeast corner thereof; thence north at right angles a distance of 220 feet; thence west and parallel with said south line of the Northeast Quarter of the Southeast Quarter to said centerline of State Highway No. 49; thence southeasterly along said centerline to the point of beginning. Except that part platted as Anoka County Highway Right of Way Plat No. 11.; and WHEREAS, Anoka County has agreed to purchase the property back from -the Authority for an amount of $88,400; and WHEREAS, the Authority has determined that the Property is not longer needed for any public purpose. NOW, THEREFORE, BE IT RESOLVED by the Lino Lakes Economic Development Authority as follows: Staff and City Attorney are hereby authorized and directed to enter into a purchase agreement with Anoka County for the purchase of the property for the amount of $88,400. The President, Executive Director, staff and City Attorney are hereby authorized and directed to take any and all other steps necessary or convenient in order to accomplish the sale of the Property. ATTEST: Executive Director