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HomeMy WebLinkAbout08-11-2003 EDA PacketAGENDA ECONOMIC DEVELOPMENT AUTHORITY MONDAY AUGUST 11, 2003 6:00 P.M. 1. Call to Order and Roll Call 2. Consideration of Minutes of June 23, 2003 3. Consideration of Resolution No. 03-04, Adopting a Modified Program for Development District No. 1 and Establishing Tax Increment Financing District No. 1-10 (Marshan Lake Industrial Park) 4. Consideration of Resolution No. 03-05 Modifying Tax Increment Financing District No. 1-9 to eliminate two parcels from the District 5. Adjourn 1 CITY OF LINO LAKES 2 ECONOMIC DEVELOPMENT AUTHORITY 3 MINUTES 4 5 6 DATE : June 23, 2003 7 MEMBERS PRESENT : J. Bergeson, D. Carlson, C. Dahl, J. O'Donnell, J. Reinert 8 MEMBERS ABSENT : None 9 OTHERS PRESENT : Mary Divine, Linda Waite Smith 10 11 CONSIDERATION OF MINUTES OF APRIL 8, 2002 12 13 EDA Member Dahl moved to approve the April 8, 2002 minutes, as presented. EDA Member 14 O'Donnell seconded the motion. Motion passed unanimously. 15 16 CONSIDERATION OF ANNUAL APPOINTMENTS 17 18 A. EDA Officers: President, Vice President, Treasurer, Assistant Treasurer, Executive 19 Director, and Secretary 20 21 Ms. Divine advised according to Lino Lakes EDA by-laws, the EDA selects a President, Vice 22 President, Secretary, Treasurer and Assistant Treasurer each year. The offices of President, Vice 23 President and Treasurer must be held by EDA members. In 2002 the officers were as follows: 24 25 President: Donna Carlson 26 Vice President: Jeff O'Donnell 27 Treasurer: Caroline Dahl 28 Secretary: Economic Development Assistant 29 Assistant Treasurer: Finance Director 30 Executive Director: City Administrator 31 32 EDA Member Dahl moved to maintain all positions as currently elected and assigned. EDA Member 33 Bergeson seconded the motion. Motion passed unanimously. 34 35 B. Official Newspaper 36 37 Ms. Divine advised the EDA is required to publish public notices regarding its meetings. In the past, 38 the EDA has designated the official newspaper to be the same as the City's official newspaper. She 39 advised staff is recommending appointment of the Quad Community Press as the EDA official 40 newspaper. 41 42 EDA Member Reinert moved to appoint the Quad Community Press as the EDA official newspaper. 43 EDA Member Dahl seconded the motion. Motion passed unanimously. 44 EDA MINUTES JUNE 23, 2003 DRAFT C. Official Depositories Ms. Divine advised the list of legal depositories approved for 2002 by the City Council were as follows: Wells Fargo First Bank, NA US Bank Dain Rauscher Lino Lakes State Bank Others as needed Prudential Bache Community National Bank Merrill Lynch Solomon, Smith, Barney LMC 4M Fund Ms. Divine indicated these depositories are used for checking, savings and investing City dollars. On occasion the EDA and the City have financial transactions that will require the EDA to have designated legal depositories. She advised that staff recommends approval of the list of legal depositories. EDA Member O'Donnell moved to approve the list of legal depositories, as approved for 2003 by the City Council. EDA Member Dahl seconded the motion. Motion passed unanimously. CONSIDERATION OF RESOLUTION NO. 03-01, ADOPTING REVISED BUSINESS SUBSIDY CRITERIA Ms. Divine advised that the Business Subsidy Act became effective on August 1, 1999, and required grantors to adopt business subsidy criteria prior to granting business subsidies. She explained that recognizing not all subsidies were for the purpose of creating jobs, the Minnesota Legislature amended the Act in 2000, but delayed the effective date of those changes until 2003. She reviewed the changes being proposed. EDA President Carlson asked about the ability for businesses to move before five years has passed. Ms. Divine indicated it was a requirement that all businesses stay in the jurisdiction for five years, however the law has been revised to say that the grantor, being the City, can allow them to leave early. EDA President Carlson stated if businesses are required to stay five years it gives the City the ability to regain some taxes in reimbursement for the subsidy, and she questioned why they would want to allow businesses to leave before the five years was up. Ms. Divine indicated you usually would not want to, and the City can require in their agreement that the business stay for five years, but this gives the City an out if for some reason they feel it best to allow the business to leave. EDA President Carlson asked if this could be covered in the previous item concerning the ability to deviate from the criteria. Ms. Divine stated she would be more comfortable leaving the specific language received from the Legislature. 2 EDA MINUTES JUNE 23, 2003 DRAFT 89 EDA President Carlson noted that the language concerning the five-year requirement has been added 90 to Section 2.03 and has been struck from Section 5 as previously written. She asked if that change 91 was for a specific reason, and if they could instead have the language in both sections. Ms. Divine 92 indicated Section 2.03 refers to specific Development Agreements. She noted any subsidy granted by 93 the EDA must also be approved by the City Council. She believes the language change was just the 94 TIFAttorney's way of making if specific. She added that in the past, the Development Agreement 95 was only approved by the EDA, and the actual subsidy was approved by both entities. She stated if 96 members prefer, the language can include that both entities approve the five-year requirement. 97 98 EDA Member Dahl stated she would be more comfortable if the language was in both sections. EDA 99 Member Bergeson asked where the strikeouts in the proposed criteria came to be. Ms. Divine stated 100 they were edited by the city's TIF Attorney. EDA Member Bergeson suggested they put the language 101 in both sections subject to consulting with the TIF Attorney. 102 103 EDA Member Bergeson asked about zero job creation. Ms. Divine indicated that this would be 104 reviewed on a case -by -case basis. She advised each time the City gives a subsidy they have to decide 105 why they are doing it, whether to improve the tax base, utilize existing infrastructure, implement the 106 Comprehensive Plan, or wage and job goals. She stated some cities were having trouble justifying the 107 job goals, when the real reason for the subsidy may have been for other reasons, such as improving 108 the tax base. This gives cities the ability to have wage and job goals, but does not require that they 109 have them if the main goal is some other reason. 110 111 EDA Member Reinert moved to open the public hearing at 6:23 p.m. EDA Member Dahl seconded 112 the motion. Motion carried unanimously. 113 114 EDA Member Dahl moved to close the public hearing at 6:23 p.m. EDA Member O'Donnell 115 seconded the motion. Motion carried unanimously. 116 117 EDA Member Bergeson moved to adopt Resolution No. 03-01 approving the revised Business 118 Subsidy Criteria as outlined by staff, restoring the previously struck -out portion of Section 5.01. 119 EDA Member O'Donnell seconded the motion. 120 121 EDA Member Dahl asked if it was correct that the number of new jobs could start at zero, but could 122 be a requirement as in the past. Ms. Divine indicated that was correct, the City can choose. EDA 123 Member Reinert stated this does not take away any of the City's authority, it only gives them more 124 options. 125 126 EDA President Carlson noted she has been in favor of wage and job goals since before she was on the 127 City Council, and she also has a concern about businesses not staying in the City for five years after 128 receiving a subsidy. 129 130 EDA Member Dahl asked for more explanation about the ability of a business to move before the five 131 years was over. Ms. Divine stated if the EDA holds a public hearing and decides they want to release 132 a business from that requirement, they have the authority to do so. She indicated it gives the EDA the 133 option of releasing the business from its agreement if it seems a reasonable thing to do. 3 EDA MINUTES JUNE 23, 2003 DRAFT 134 135 EDA Member Dahl asked if the language could say the business can move but they are still 136 responsible for the subsidy. EDA Member Dahl stated it seems like they are letting the business go if 137 they say they cannot pay and they want to leave. Ms. Divine indicated that the city does not continue 138 to pay a subsidy after the business has left. Ms. Divine indicated the City could find the business in 139 default of its agreement if the business left the city. 140 141 EDA Member Reinert commented that this change is an option for the EDA, not a loophole for 142 businesses. He noted the EDA would have to release the business from their obligation, and at that 143 time the EDA could put a stipulation on the release. Ms. Divine suggested that in the Development 144 Agreement they could put such a stipulation. She noted this is general criteria of what is allowed by 145 statute. 146 147 EDA Member Bergeson stated he would speak in favor of leaving the language as drafted, since it 148 mirrors what is in the law, and there may be cases where the City would want to allow movement. 149 For instance, if there is a small business on a large parcel that would be better suited for the 150 community with a different use; the City may want the option to allow the business to move. 151 152 EDA Member O'Donnell concurred, noting this allows the City flexibility. 153 154 Motion carried. EDA President Carlson opposed. 155 156 CONSIDERATION OF RESOLUTION 03-02, EXTENDING THE COMPLIANCE DATE 157 FOR THE WAGE AND JOB GOALS FOR MARMON/KEYSTONE 158 159 Ms. Divine summarized her report, indicating the EDA may, after a public hearing, extend the 160 compliance date by up to one year, as requested. If Marmon/Keystone is not given an extension, the 161 tax increment financing would be withheld according to a formula that is based on a pro rata share of 162 the number of jobs created versus the number required. 163 164 EDA Member Dahl asked how many extensions are allowed if the goal is not met by June 1, 2004. 165 Ms. Divine stated this is the only extension that could be granted. She indicated if the goal is not met 166 by then, the Development Agreement states options the EDA could take at that time. 167 168 EDA Member Dahl asked if Marmon/Keystone is aware they would be saving themselves $175,000 if 169 they met the goal. Ms. Divine indicated she has had that discussion with them. 170 171 EDA Member Reinert moved to open the public hearing at 6:37 p.m. EDA Member O'Donnell 172 seconded the motion. Motion carried unanimously. 173 174 EDA Member Dahl moved to close the public hearing at 6:37 p.m. EDA Member O'Donnell 175 seconded the motion. Motion carried unanimously. 176 4 EDA MINUTES JUNE 23, 2003 DRAFT 177 EDA Member O'Donnell moved to adopt Resolution No. 03-02 extending the Compliance Date for 178 Wage and Job Goals for Marmon/Keystone for one year. EDA Member Bergeson seconded the 179 motion. Motion carried unanimously. 180 181 CONSIDERATION OF RESOLUTION NO. 03-03, AUTHORIZING THE PREPARATION 182 OF A PLAN TO MODIFY DEVELOPMENT DISTRICT NO. 1 AND TO ESTABLISH TAX 183 INCREMENT FINANCING DISTRICT NO. 1-10 (LAKES BUSINESS PARK) 184 185 Ms. Divine summarized the staff report, explaining in August they will have more details of the plan 186 and will have a public hearing and consideration by the City Council, and the action tonight just 187 allows those steps to start. 188 189 EDA Member Reinert stated he wants it on record that there is residential area surrounding this 190 development, and when allowing new districts to go forward, they need to keep in mind ways of 191 buffering the residential areas from these new development areas. 192 193 EDA President Carlson asked if they authorized the preparation of the plan and establish the TIF 194 district, will it come back to the EDA. Ms. Divine stated it would, after Planning and Zoning reviews 195 it, it will come back in August for a public hearing and action. 196 197 EDA President Carlson stated she asked this question because there is not currently enough 198 information to establish a need for funding. Ms. Divine stated anything having to do with a request 199 for TIF will not come for approval until more is known. She added that this was approval of the 200 creation of a district, not an approval of a subsidy. She noted there will be improvements to Lake 201 Drive that will be for the general good of the city, and may not be covered by the developer, and that 202 generation of increment can help pay for improvements to Lake Drive and the bridge. 203 204 EDA President Carlson stated she had a question from a commercial owner asking if the County 205 would be tearing up the entire Lake Drive/35W bridge when they reconstruct, as it would be a 206 detriment to business. Ms. Divine indicated for now that reconstruction has been removed from the 207 County plans, but when they are ready to do it there is the possibility they may not have to completely 208 close the bridge. 209 210 EDA Member Reinert moved to adopt Resolution No. 03-03 authorizing preparation of a plan to 211 modify Development District No. 1 and to establish TIF District No. 1-10. EDA Member Bergeson 212 seconded the motion. Motion carried unanimously. 213 214 CONSIDERATION OF POWER LINE EASEMENT TO NORTHERN STATES POWER 215 COMPANY 216 217 Ms. Divine summarized her report, noting that Northern States Power Company has agreed to define 218 the limits of their easement over the property. 219 220 EDA Member Bergeson moved to approve the Electric Distribution Easement from Northern States 221 Power Company. EDA Member Dahl seconded the motion. Motion passed unanimously. 5 EDA MINUTES JUNE 23, 2003 DRAFT 222 223 ADJOURNMENT 224 225 There being no further business, EDA Member Dahl moved to adjourn. EDA Member O'Donnell 226 seconded the motion. Motion passed unanimously. 227 228 Meeting adjourned at 6:48 p.m. 229 230 231 Transcribed by: 232 Karen Whaley 233 TimeSaver Off Site Secretarial, Inc. 234 6 AGENDA ITEM 3 STAFF ORIGINATOR: Mary Alice Divine DATE: 08/11/03 TOPIC: Resolution No. 03-04 adopting a Modified Program for Development District No. 1 and establishing Tax Increment Financing District No. 1-10 Vote Required: Simple Majority BACKGROUND: On June 23 the EDA approved the preparation of a modified program for Development District No. 1 and the preparation of a plan for the establishment of a new TIF District No. 1-10. The developers of Marshan Lake Industrial Park on 35W have proposed to plat the 30-acre park into sites for light industrial users. In conjunction with the plat, the developers are working with a potential light industrial user that is proposing to construct a 265,000 sq. ft. facility on approximately 13 acres in the park. It is anticipated that development of the business park, along with other development that may occur, may justify some public expenditure for infrastructure improvements to Lake Drive and the interchange. In addition, the business park has not developed solely through private efforts and may require public participation to develop in a manner consistent with the city's goals for commercial and industrial development. The draft plan was sent to Centennial School District and Anoka County for review and comment. The Planning and Zoning Board found the plan consistent with the Comprehensive Plan at its meeting on July 9, 2003. The City Council will hold a public hearing tonight before consideration of approval of this new District. RECOMMENDATION: Adopt Resolution No. 03-04 adopting a modified program for Development District No. 1 and establishing TIF District No. 1-10 LINO LAKES ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. 03-04 RESOLUTION MODIFYING DEVELOPMENT DISTRICT NO. 1 AND ESTABLISHING TAX INCREMENT FINANCING DISTRICT NO. 1-10 WHEREAS, the Economic Development Authority (the "Authority") for the City of Lino Lakes (the "City") has proposed to modify the Program (the "Program") for Development District No. 1 and to establish Tax Increment Financing District No. 1-10 ("District No. 1-10") and adopt the Tax Increment Financing Plan (the "Plan") therefore, all pursuant to and in conformity with existing law, including Minnesota Statutes, Sections 469.090 through 469.1081, and Sections 469.174 to 469.179, inclusive, all as reflected in the Program and Plan and presented for the Authority's consideration. WHEREAS, the Authority has investigated the facts relating to the modification of the Program and the establishment of the Plan, and has caused to be prepared a "Modified Development Program, Development District No.1 and a "Tax Increment Financing Plan for Tax Increment Financing (Economic Development) District No. 1- 10"; and WHEREAS, the Authority has performed all actions required by law to be performed prior to the adoption of the modified Program and the Plan, including but not limited to notification of Anoka County and School District No. 12 having taxing jurisdiction over the property to be included in District No. 1-10, a request for review of and written comment on the Plan by the City Planning & Zoning Board, and a request that the Council schedule a public hearing on the Plan upon published notice as required by law. NOW THEREFORE, BE IT RESOLVED by the Economic Development Authority of the City of Lino Lakes as follows: . That the modified Program for Development District No. 1 is hereby approved in substantially the form on file in City Hall. 2. The Plan is hereby approved in substantially the form on file in City Hall. 3. Upon approval of the Plan by the City Council, the staff, the Authority's advisors and legal counsel are authorized and directed to proceed with the implementation of the Plan and for this purpose to negotiate, draft, prepare and present to this Authority for its consideration all further plans, resolutions, documents and contracts necessary for this purpose. Approval of the Plan does not constitute approval of any project or a development agreement with any developer. SJB-235626v1 LN140-81 4. Upon approval of the Plan by the City Council, the Community Development Director is authorized to forward a copy of the Plans to the Office of the State Auditor pursuant to Minnesota Statutes 469.175, subd. 2. 5. The City Clerk is authorized and directed to forward a copy of the Plan to Anoka County and request that the Auditor certify the original tax capacity of the District as described in the Plan, all in accordance with Minnesota Statutes 469.177. DATED: , 2003 President ATTEST: Executive Director SJB-235626v1 LN 140-81 MODIFIED DEVELOPMENT DISTRICT PROGRAM, DEVELOPMENT DISTRICT NO. 1 LINO LAKES ECONOMIC DEVELOPMENT AUTHORITY August 11, 2003 This document drafted by: KENNEDY & GRAVEN, CHARTERED 470 Pillsbury Center Minneapolis, MN 55402 (612) 337-9300 SJB-234068v1 LN140-81 TABLE OF CONTENTS Page MODIFIED DEVELOPMENT DISTRICT PROGRAM FOR DEVELOPMENT DISTRICT NO. 1 Subsection A. Defmitions 1 Subsection B. Statutory Authority 2 Subsection C. Statement of Public Purpose 2 Subsection D. Statement of Objectives 2 Subsection E. Environmental Controls 3 Subsection F. Open Space to be Created 3 Subsection G. Public Facilities to be Constructed 3 Subsection H. Proposed Reuse of Property 3 -Subsection I. Development District Financing 4 Subsection J. Relocation 4 Subsection K. Administration of Development District 4 Subsection L. Map of Development District 4 SJB-234068v1 LN140-81 MODIFIED DEVELOPMENT DISTRICT PROGRAM FOR DEVELOPMENT DISTRICT NO. 1 A. Definitions For the purposes of the modified Program for Development District No. the following terms shall have the meanings specified below, unless the context otherwise requires: "Administrative Expenses" means all expenditures of the Authority other than amounts paid for the purchase of land or amounts paid to contractors or others providing materials and services, including architectural and engineering services, directly connected with the physical development of real property in the District, relocation benefits paid to or services provided for persons residing or businesses located in the District, or amounts used to pay interest on, fund a reserve for, or sell at a discount bonds issued pursuant to section 469.178 of the TIF Act. Administrative Expenses includes amounts paid for services provided by bond counsel, fiscal consultants and planning or economic development consultants; "Administrator" means the executive director of the Authority or his or her designee; "Authority" or "EDA" means the Lino Lakes Economic Development Authority, a public body corporate and politic under the laws of Minnesota; "City" means the City of Lino Lakes, a municipal corporation under the laws of Minnesota; "City Council" or "Council" means the Lino Lakes City Council; "City Development Districts Act" or "Act" means Minnesota Statutes, sections 469.124 through 469.134, as amended; "Comprehensive Plan" means the City's objectives, policies, standards and programs to guide public and private land use, development, redevelopment and preservation for all lands and water within the City; "County" means Anoka County, Minnesota; "Development District" or "District" means Development District No. 1, which was established in 1987 by the City and is now under the control of the Authority; "Development District Program" or "Program" means the Program for Development District No. 1, which was adopted on January 26, 1987, as modified from time to time thereafter. "EDA Act" means Minnesota Statutes, sections 469.090 through 469.108, as amended; "State" means the State of Minnesota; "Tax Increment Bonds" means any general obligation or revenue tax increment bonds or notes issued by the Authority or the City to finance the public costs associated with Development SJB-234068v1 LN140-81 1 District No. 1 as stated in the modified Program or in the Plan for any of the tax increment fmancing districts within Development District No. 1 or any obligations issued to refund any Tax Increment Bonds, and including any interfund loans or advances within the meaning of the TIF Act; "Tax Increment Financing Act" or "TIF Act" means Minnesota Statutes, sections 469.174 through 469.179, as amended; "Tax Increment Financing District" or "TIF District" means any tax increment financing district established or to be established within Development District No. 1 pursuant to the TIF Act; and "Tax Increment Financing Plan" or "Plan" means the Plan for any of the TIF Districts within the Development District. -B. Statutory Authority The Authority has determined that it is necessary, desirable and in the public interest to modify the Program for Development District No. 1, pursuant to the provisions of the Act. The Authority has also determined that funding for the necessary activities and improvements in Development District No. 1 will continue to be accomplished in part or in whole through tax increment fmancing in accordance with the TIF Act. C. Statement of Public Purpose The Authority has previously determined there to be a need to offer assistance to encourage development of the area of the community established as Development District No. 1 in order to increase employment opportunities, improve the tax base and improve the general economy of Lino Lakes and the State. The City established the Development District on January 26, 1987, and subsequently transferred control and administration of the District to the Authority. The boundaries of the Development District were most recently expanded on April 28, 1997 in connection with the establishment of TIF District No. 1-8. Within the District, the City and/or Authority have previously created nine TIF Districts. The purpose of this modification of the Program is to acknowledge the Authority's intent to establish TIF District No. 1-10 in order to further the economic development goals for the District. This modified Program does not change the boundaries of the District from those established at the time the Authority established TIF District No. 8. D. Statement of Objectives The Authority will continue to seek to achieve the following objectives through the modified Development District Program: 1. promote and secure the prompt development of property in Development District No. 1 in a manner consistent with the Comprehensive Plan and with minimal adverse impact on the environment, which property is currently less productive SJB-234068v1 LN 140-81 because of the lack of proper utilization and lack of investment, thus promoting and securing the development of other land in Lino Lakes; 2. encourage additional employment opportunities within Development District No. 1 and Lino Lakes for residents of the community and the surrounding area, thereby improving living standards and preventing unemployment and the loss of skilled labor and other human resources in the area; 3. secure the increase of property subject to taxation by the City, County, school districts and other taxing jurisdictions in order to better enable such entities to pay for public improvements and governmental services and programs required to be provided by them; secure the construction and provide moneys for the payment of the public costs within Development District No. 1 which are necessary for the orderly and beneficial development of the Development District; 5. promote the concentration of appropriate uses and related development within Development District No. 1 in order to maintain the area in a manner compatible with its highest and best use; and 6. encourage development within the District which is aesthetically pleasing and which creates a positive visual image of the community. E. Environmental Controls It is not anticipated that any development within the Development District will present major environmental concerns. All actions by the Authority, public improvements and private development will be carried out in compliance with applicable environmental standards. F. Open Space to be Created Any open space within the Development District will be created in accordance with the development controls of the Authority and will be adequate for the needs of the residents of the community. G. Public Facilities to be Constructed All public facilities constructed within the Development District will be financially feasible and compatible with the City's long range development plans. H. Proposed Reuse of Property The Authority may acquire property within Development District No. 1 in order to resell the land to a developer. Property within the Development District will be reused in accordance with the City's ordinances and Comprehensive Plan as well as with this modified Program and the Plan for SJB-234068v1 LN140-81 TIF District No. 1-10 or the Plan for any other tax increment financing district within Development District No. 1. I. Development District Financing Within Development District No. 1, the Authority will establish TIF District No. 1-10 to fmance the cost of development activities. TIF District No. 1-10 is the tenth tax increment financing district to be established within the Development District. In connection with establishment of TIF District No. 1-10, the Authority intends to modify the Plan for TIF District No. 1-9 to eliminate certain parcels from that I a District so those parcels may be included in new TIF District No. 1-10. Project costs for TIF District No. 1-10, as well as for all previously established tax increment districts, will be met primarily through pledged increment. For detailed development and financing plans for each TIF District, refer to the TIF Plan for the relevant TIF District. J. Relocation In establishing TIF Districts, Authority may find it necessary to pay for relocation for individuals or businesses displaced by public action. The Authority accepts its responsibility for providing for relocation pursuant to section 469.133 of the Act. If relocation is necessary, provisions will be made in accordance with Minnesota Statutes, sections 117.50 through 117.56, as amended. The Authority does not anticipate any relocation activities in connection with TIF District No. 1-10. K. Administration of Development District Maintenance and operation of the public improvements is the responsibility of the Administrator of Development District No. 1. Each year the Administrator will submit to the Authority the maintenance and operation budget for the following year. The Administrator will administer the Development District pursuant to the provisions of section 469.131 of the Act; provided, however, that such powers may only be exercised at the direction of the Authority. No action taken by the Administrator shall be effective without authorization by the Authority. The Authority has not and does not anticipate the need to create an advisory board to advise the Authority on the planning, construction or implementation of the activities and improvements outlined in the Development Program. L. Map of Development District A map of the existing boundaries of Development District No. 1 is attached to this modified Program as Exhibit A, which is incorporated herein by reference. SJB-234068v1 LN140-81 SJB-234068v1 LN I40-81 EXHIBIT A MAP OF DEVELOPMENT DISTRICT NO. 1 (See attached map) A-1 Development District No. 1 City of Lino Lakes Anoka County, Minnesota c City of Lino Lakes, Minnesota and Lino Lakes Economic Deve Authority -Tax Increment Financin for Tax Increment Financn District No. (Panattorti Prepared by: SPRINGSTED INCORPORATED 85 E. Seventh Place, Suite 100 St. Paul, MN 55101-2887 (651) 223-3000 WWW.SPRINGSTED.COM omic Development) TABLE OF CONTENTS Section Pages) A. Definitions 1 B. Statutory Authorization 1 C. Statement of Need and Public Purpose 1 D. Statement of Objectives 2 E. Designation of Tax Increment Financing District as an Economic Development District 2 F. Duration of the TIF District and the Three Year Rule w � 3 G. Property to be Included in the TIF District, ��w 3 H. Property to be Acquired in the TIF District4 I. Specific Development Expected to Occur Withinthe TIF District � 4 J. Findings and Need for Tax Increment Finan g ; 5 K. Estimated Public Costs s, • 6 L.. Estimated Sources of Revenue., 7 M. Estimated Amount of Bonded Indebtedness � 7 N. Original Net Tax Capacity,,.. 7 O. Original Tax Capacity Rate 8 P. Projected Retained Ca tured Net Tax"'Capaci and Projected Tax Increment 8 Q. Use of Tax Increment ;f w ;a 9 R. Excess Tax Increment 10 S. Tax Increment P oFs ling and th Five Year Rule 10 T. Limitation on Administrative es 11 U. Limitation on ProperSubject t Improvements - Four. Year Rule 11 V. Estimatedet.on �ttrt Taxing Jurisdictions 11 W. Prior'fanned Im ment 12 X. Development Agree 12 Y. ent AgreemeH 12 Z. Modificaions of the Tax; . crement Financing Plan 12 AA. Administration of the Ta3dlncrement Financing Plan 13 AB. Financial Rtkjng ai7isclosure Requirements 14 Map of the Tax Increment Financing District Assumptions Report Projected Tax Increment Report Estimated Impact on Other Taxing Jurisdictions Report Market Value Analysis Report EXHIBIT EXHIBIT II EXHIBIT III EXHIBIT IV EXHIBIT V City of Lino Lakes, Minnesota Section A Definitions The terms defined in this section have the meanings given herein, unless the context in which they are used indicates a different meaning: "Authority" means the Lino Lakes Economic Development Authority. "City" means the City of Lino Lakes, Minnesota; also referred to as a "Municipality "City Council" means the City Council of the City; also referred to a t '"Governing Body". "Countv" means Anoka County, Minnesota. "Development District" means Municipal Development District N 1 in the City, which is described in the corresponding Development Progra "Development Program" means the DevelopmenttPto ram for the Development District. "Project Area" means the geographic area of the DevelopmentDistrict. "School District" means Independent School District "State" means the State of Minnesota. "TIF Act" means Minnesota Statutes, Sect "TIF District" means Tax IncrementFinancing (E 000mic Development) District No. 1-10. "TIF Plan" means they incrementnancing pfat,for the TIF District (this document). Section B Statuto ough 469.1799, both inclusive. The DevelopmentDi strict Arkauthorizes the City and Authority, upon certain public purpose findings by the City Cecil, toestablish and designate development districts within the City and to develop and administer evelo ° ent programs therefore to meet the needs and accomplish the public purposes specified in Sion C. In accordance with the purposes set forth in Section 469124 of the Development District Act, the City Council and Authority have establishecr District comprising the area described in Section E and have adopted this Development = gram. The TIF Act also authorizesthe Authority, with approval by the City, to establish and administer tax increment financing. districts within the Development District. Eligible public costs of the Development District and TIF District may be paid for tax increments collected from the TIF District. Section C Statement of Need and Public Purpose The City Council and Authority have determined that there is a need for the City to take certain actions they deem necessary in order to encourage, ensure and facilitate development and redevelopment by the private sector of underutilized, inappropriately used and unused land located within the corporate limits of the City. Such actions are necessary in order to provide additional employment opportunities for residents of the City and the surrounding area; to SPRINGSTED Page 1 City of Lino Lakes, Minnesota improve the tax base of the City, the County and the School District, thereby enabling them to better provide needed public services; and to improve the general economy of the City, the County and the State. Section D Statement of Objectives The Authority seeks to achieve the following objectives through the establishment of TIF District No. 1-10; 1. provide employment opportunities within the community. 2. improve the tax base of Lino Lakes and the general economof the City and State; 3. encourage industrial development in an area of the Pfrt!tunity which has not been utilized to its full potential; and 4. implement relevant, portions of the Comprehensive Plan. The Authority's specific purpose in establishing T.IDistrict No. 1 10 to promote public improvements to Lake Drive and the development" of four manufacturing facilities in the Marshan Lake Business Park. The Panattorn*p fect will consist of an approximate 265,000 square foot distribution facility. Future expansions may alsoinclude three additional outlot buildings totaling 160,000 square feet. The Authorityintends to use increment generated by the new developments to write down land costs and the of special assessments, including the interest portion and for public improvements to LakeeDnye. Section E Designation of Tax Increment Firtai Economic Development District District as an Economic development disricts a; a type of increment financing district which consist of anyproject, or o its ~'of a ro ect, which the Authorityfinds to be in the public interest P j P .,, P I_. �._ because: (1) it will discouragexv mmer idustry-or manufacturing from moving their e ationsto another state or municipality; it will result in in a ed employment in the state; or it will result preservation and enhancement of the tax base of the state. The TIF District qualifies as an economic development district in that the proposed development described in t isTlF Pl=:(see Section I) meets all of the criteria listed above. Without establishment of the TIF DiOtt, the proposed development would not occur within the City, but would be located in another municipality. The proposed development will also result in increased employment and enhancement of the tax base in both the City and the State. Tax increments from an economic development district must be used to provide improvements, loans, subsidies, grants, interest rate subsidies, or other assistance in which at least 85% of the square footage of the facilities to be constructed are used for any of the following purposes: (1) manufacturing, production, or processing of tangible personal property; (2) warehousing, storage and distribution of tangible personal property, excluding retail sales; (3) research and development related to the activities listed in (1) or (2) above; SPRINGSTED Page 2 City of Lino Lakes, Minnesota (4) (5) (6) (7) telemarketing if that activity is the exclusive use of the property; tourism facilities (see M.S. Section 469.174, Subd. 22); qualified border retail facilities (see M.S. Section 469.176, Subd. 4c); or space necessary for and related to the activities listed in (1) through (6) above. In addition to the uses specified above, tax increments may also be used to provide assistance for up to 15,000 square feet of any separately owned commercial facility located within a "small city" (see M.S. Section 469.176, Subd. 4c), or to pay for excessivesite preparation and public improvement costs in a district containing bedrock soils conditions in 80% or more of its acreage (see M.S. Section 469.176, Subd. 4c). Tax increments from the TIF District will be used to provide financial assistance to the proposed development (see Section I), in which over 85% of the square footage the facilities to be constructed will be used for manufacturing or otherpdrposes as listed in (1) above. Section F Duration of the TIF District and th M eer`''Rule Economic development districts may retain in existence 8 years from the date of receipt by the authority of the first tax increment. TheAuthority anticipa s that the TIF District will remain in existence the maximum duration allowed b law (projecte to be through the year 2014). Modifications of this plan (see Section AA) -shall not B end these,imitations. In addition, no tax incrementshall be paid to, t Authorityfrom the TIF District after three years from the date ofFcertificatioon unless within.;that time period: Fed in aid ofthe Project Area (except revenue bonds issued (1) bon pursua ave been iss o M.S. S Oils 469.152 t6,469.165); thorny h acquired property within the TIF District; or the Autfto ty has constructed public improvements within the TIF District. Section Property to tie,Included in the TIF District .44 A, r. The TIF Distrint is an approximate 32 acre area of land located within the Project Area. A map showing the Io' ►on of TIF District is shown in Exhibit I. The boundaries and area encompassed by ill= District are described below: Parcel ID Number 17-31-22-23-0012 Legal Description TH PRT OF SW1/4 OF NW1/4 LYG ELY OF THE ELY R/W LINE OF IH #35 W & SLY OF THE FOL DESC LINE; COM AT THE SE COR OF SD % 1/4 , TH NLY ALG E LINE OF SD '/a '/a 541 FT TO THE POB OF SD LINE TO BE DESC TH S 87 DEG 40 MIN 38 SEC W 123.03 FT TH S 81 DEG W 100 FT TH S 66 DEG 51 MIN 01 SEC W 103 FT TH S 46 DEG 15 MIN 14 SEC W SPRINGSTED Page 3 City of Lino Lakes, Minnesota 17-31-22-32-0006 17-31-22-32-0003 The area encompassed by the TI located upon or adjacent to the pro Section H The Authority may a`+ how€v, the Authority 384.03 FT TH S 77 DEG 48 MIN 07 SEC W 201.13 FT + OR — TO THE E R/W LINE OF SD IH #35W & THERE TERM EX RD SUBJ TO EASE OF RECORD. THAT PRT OF NW1/4 OF SW1/4 OF SEC 17 TWP 31 RGE 22 LYG SELY OF I 35W & LYG NWLY OF T H NO 49, EX FOL DESC TRACT: BEG AT A PT ON S LINE OF SD '/ '/4 538.56 FT E: ._OF SW COR THEREOF, TH N PRLL/W I NE OF SD % % 437 FT, TH E PRL LINE TO INTER/W C/L OF T H N TH SWLY ALG SD C/L TO SD S L I TH ALG SD S LINE TO POB, ALSOEX°� 33 FT OF W 538.56 FT OF; SD /4 %, EX RD SUBJ TO EASE OF VILLAGE OFF -LINO LAKES `1TOFTHES437FTOFTHAT -THE NW1/4 OF SW1/4 OF SEC LYING NWLY OF TRK HWY NO KNOWN AS ST PAUL & STATE RD) (EX THE W EREOF) (SUBJ TO TRK istrict shall also include all street or utility right-of-ways describer above. :Acquired in the TIF District II any or all of the property located within the TIF District; ipate acquiring any such property at this time. Section 1 Specific Development Expected to Occur Within the TIF District The project will nsist o the construction of four industrial buildings to be used for manufacturing. Thei wilding to be constructed is expected to be 265,000 square feet and completed by 2004.'1,Q trots A, B and C are expected to be 40,000 square feet completed in 2005, 60,000 square feet completed in 2006 and 60,000 square feet completed in 2007, respectively. In addition, a portion of the increment will be used for Lake Drive improvements. The four facilities are expected to be fully constructed in 2007 and be 100% assessed and on the tax rolls as of January 2, 2008 for taxes payable in 2009. At the time this document was prepared there were no signed construction contracts with regards to the above described development. SPRINGSTED Page 4 City of Lino Lakes, Minnesota Section J Findings and Need for Tax Increment Financing In establishing the TIF District, the City makes the following findings: (1) The TIF District qualifies as an economic development district; See Section E of this document for the reasons and facts supporting this finding. (2) The proposed development, in the opinion of the City ,;would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future, and the increased market value of the site that could reasonably be expected to occur without the u oftax increment would be less than the increase in market value estimal ; result from the proposed development after subtracting the present vale of teprojected tax increments for the maximum duration of the TIF District by the TIF Plan; The proposed development, in theopinion of the City, would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future: The proposeddevelopmentis an industrial park including various manufacturing and warehouse uses. e land in the TIF District has been vacant for many years, despite previous efforts by the City to encourage its development (including yestablishment a previous tax increment financing district that includes mosof se parcels •; a site requires sewer, water and road improvements accommodatemanufacturingand warehouse development, and the cosh Of those improyementsbay not, as a practical matter, be passed to proposed developers in€i °users of the site, based on analysis of market conditionsLino Lae v n addition, t e City has reviewed a pro forma submitted by the initial props e ' developer, showing that the cost of land acquisition" and public improvements make the proposed development infeasible assuming customaryyrates of return The increased market wit f the site that could reasonably be expected to witho a & use of tax t cre lent financing would be less than the increase estimated to result from the proposed development after subtra '- ther ent value of the projected tax increments for the maximum duration o the TIF District permitted by the TIF Plan: As noted above, the site has been vacant for any years. Without installation of the improvements needed to serve the area, the City has no reason to expect that significant evelopment uld occur without assistance similar to that provided in this plan. =herefore, the City concludes as follows: ity's estimate of the amount by which the market value of the site will nc ease without the use of tax increment financing is $0, except for a small amount attributable to appreciation in land value. b. If all development which is proposed to be assisted with tax increment were to occur in the District, the total increase in market value would be approximately $16,963,000. c. The present value of tax increments from the District for the maximum duration of the district permitted by the TIF Plan is estimated to be $1,254,113 (See Exhibit V) SPRINGSTED Page 5 City of Lino Lakes, Minnesota (3) (4) d. Even if some development other than the proposed development were to occur, the Council finds that no alternative would occur that would produce a market value increase greater than $15,708,887 (the amount in clause b less the amount in clause c) without tax increment assistance. The TIF Plan conforms to the general plan for development or redevelopment of the City as a whole; and The reasons and facts supporting this finding are that the TIF District is properly zoned, and the TIF Plan has been approved by the City Planning Commission and will generally compliment: and serve to implement policies adopted in the City's comprehensive, an. The TIF Plan will afford maximum opportune ons tent with the sound needs of the City as a whole, for the development of the Area by private enterprise. The reasons and facts supporting this finding are thahe development activities are necessary g= 'that development and redelopment by private enterprise can occ pit iin the Project Area. Section K Estimated Public Cost The estimated public costs of the TIP!Distr.!' reimbursement from tax increments of the TIF Dis isted below. Such costs are eligible for Land/building acquisition :� 750,000 Site im rovemects/ re ara r®rt costs 0 P �� P P Public improvements 500,000 Parking Facilities -. ;;- 0 Bondprincipal pay p 1,785,000 ond inter stp ymer is 475,000 Tian principal`'payments 0 pan interest pay rei is 0 1 inistrative expenses 130,000 C ized interest 120,000 Publicimprovements outside district 484,000 Subtotal 4,244,000 Transfers out 0 Total 4,244,000 The Authority reserves the right to administratively adjust the amount of any of the items listed above or to incorporate additional eligible items, so long as the total estimated public cost is not increased. SPRINGSTED Page 6 City of Lino Lakes, Minnesota Section L Estimated Sources of Revenue Tax increment revenue Interest on invested funds Bond proceeds Special assessments Rent/lease revenue Grants Other Subtotal Transfers in Total 2,409,000 50,000 1,785,000 0 0 0 4.244.00 The Authority anticipates providing financial assistance to the "oposed development through the use of a pay-as-you-go technique. As tax increments arc. Ilected from the TIF District in future years, a portion of these taxes will be-distribu ed to the developer/owner as reimbursement for public costs incurred (see Section K The Authority reserves the right to finance, as -you -go assistance, internal funding, ener financing mechanism authorized by law. sources of revenue legal l pp icable to the Prop limited to, special assess uti revenues, Section M Estima The Authority may issue bon amountnrot'to exceed 1,78 Se I public costs of the TIF District using pay- "igation Mor revenue debt, or any other �tals reserves the right to use other rea to pay for such costs including, but not ederal or state funds, and investment income. Bonded Indebtedness otes or interfund loans in an original principal The County Auditor shall certify the original net tax capacity of the TIF District. This value will be equal to the total net to capacity of all property in the TIF District as certified by the State Commissioner of Revenue or districts certified between January 1 and June 30, inclusive, this value is bas on the previous assessment year. For districts certified between July 1 and December 31, inc sine is value is based on the current assessment year. The Estimated Market Value of all property within the TIF District as of January 2, 2003, for taxes payable in 2004, is $885,000. Upon establishment of the TIF District, and subsequent reclassification of property, it is estimated that the original net tax capacity of the TIF District will be approximately $16,950. Each year the County Auditor shall certify the amount that the original net tax capacity has increased or decreased as a result of: (1) changes in the tax-exempt status of property; (2) reductions or enlargements of the geographic area of the TIF District; SPRINGSTED Page 7 City of Lino Lakes, Minnesota (3) changes due to stipulation agreements or abatements; or (4) changes in property classification rates. Section 0 Original Tax Capacity Rate The County Auditor shall also certify the original tax capacity rate of the TIF District. This rate shall be the sum of all local tax rates that apply to property in the TIFistrict. This rate shall be for the same taxes payable year as the original net tax capacity. In future years, the amount of tax increment generated by the 'i F District will be calculated using the lesser of (a) the sum of the current local tax ratesgathat time or (b) the original tax capacity rate of the TIF District. At the time this document was prepared, the sum of atilt cal tax rates thaapply to property in the TIF District, for taxes levied in 2003 and payable in2004, was not yet available. When this total- becomes available, the County Auditor shall certify this amount as the ongtnal tax capacity rate of the TIF District. For purposes of estimating the talk rement generated by the TIF District, the sum of the local tax rates for taxes lev wire 200nd payable in 2003, is 129.834% as. shown below. Taxing Jurisdiction City of Lin, Anoka C ISD Oth Total !002/2003 Local Tax Rate 47.603% 37.714% 37.467% 7.050% 129.834% Section - Projected,Retaine Captured Net Tax Capacity and Projected`Tax Incr rent Each year the County Auditorshall determine the current net tax capacity of all property in the TIF District o the extent that this total exceeds the original net tax capacity, the difference shall be known;as the capt net tax capacity of the TIF District. For communities affected by the fiscal disparity provisions of Minnesota Statutes, Chapter 473F and Chapter 276A, theffikonginal net tax capacity of the TIF District shall be determined before the application of fiscal disparity. In subsequent years, the current net tax capacity shall exclude the product of any fiscal disparity increase in the TIF District (since the original net tax capacity was certified) times the appropriate fiscal disparity ratio. The County Auditor shall certify to the Authority the amount of captured net tax capacity each year. The Authority may choose to retain any or all of this amount. It is the Authority's intention to retain 100% of the captured net tax capacity of the TIF District. Such amount shall be known as the retained captured net tax capacity of the TIF District. SPRI NGSTED Page 8 City of Lino Lakes, Minnesota Exhibit II gives a listing of the various information and assumptions used in preparing a number of the exhibits contained in this TIF Plan, including Exhibit III which shows the projected tax increment generated over the anticipated life of the TIF District. Section Q Use of Tax Increment Each year the County Treasurer shall deduct 0.36% of the annual tax increment generated by the TIF District and pay such amount to the State's General Fund. Such amounts will be appropriated to the State Auditor for the cost of financial reporting and auditing of tax increment financing information throughout the state. Exhibit III shows the ejected deduction for this purpose over the anticipated life of the TIF District. The Authority has determined that it will use 100% of the rer atnm the TIF District for any of the following purposes: pay for the estimated public costs of administrative costs associated with, x increment generated by F District (see Section K) and County TIF District (see SectonT); pay principal and interest on tax Increment ands or other bonds issued to finance the estimated public costs ofthe TIF D rict; accumulate a reserve securing the payment of tax increment bonds or bonds issued to financethestimated public costs of the TIF District; pay all or a portion of theounty"roa Board under M,S Section 469.175, return e Coun Tax increments fro primary benefit of a pro this require ettt Tax in the City; s shall no other sts as may be required by the County isrorr la ;`or County Auditor for redistribution to the City, one county must be expended for the direct and countty , unless both county boards involved waive used to circumvent levy limitations applicable to Tax, -increment shall not bused tryfinance the acquisition, construction, renovation, operation, or maintenance of a buildIto be used primarily and regularly for conducting the business of a municipa ty ' county, schooldistrict, of any other local unit of government or the State or federal government, or for a commons area used as a public park, or a facility used for social, recreational, or conference' purposes. This prohibition does not apply to the construction or renovation of a parking structure or of a privately owned facility for conference purposes. If there exists any beneficiary of assistance, to repay all or a portion of the assistance that was paid or financed with tax increments, such payments shall be subject to all of the restrictions imposed on the use of tax increments. Assistance includes sale of property at less than the cost of acquisition or fair market value, grants, ground or other leases at less then fair market rent, interest rate subsidies, utility service connections, roads, or other similar assistance that would otherwise be paid for by the developer or beneficiary. f agreement or arrangement providing for the developer, or other SPRINGSTED Page 9 City of Lino Lakes, Minnesota Section R Excess Tax Increment In any year in which the tax increments from the TIF District exceed the amount necessary to pay the estimated public costs authorized by the TIF Plan, the Authority shall use the excess tax increments to: prepay any outstanding tax increment bonds; discharge the pledge of tax increments thereof; pay amounts into an escrow account dedicated increment bonds; or he payment of the tax (4) return excess tax increments to the County Auditor fib- redistribution to the City, County and School District. The Cob #y Audi must report to the Commissioner of Education the am nt of any ` excess tax increment redistributed to the School District withi 0 days of such redistribution. Section S Tax Increment Pooling and the`Pi At. least 80% of the tax increments from the TIF Dis the district or to pay for bonds used to finance the estim Section E for additional restrictions) hh orthan 20% costs outside of the TIF District but wit in ihea panda debt service on credit enhanced bonds Alt admrnrstr been spent outside of the TI District. Tex increrru'` car_ within the TIF District if suchAunts are: Year Rul st be expended on activities within ublic costs of the TIF District (see of the tax increments may be spent on ries d the Project Area, except to pay tive expenses are considered to have considered to have been spent actuallyy paid to a third, party fort activities performed within the TIF District within five years after certification of the district; used to pay ich are it er otdthe fi' a reasonably re ued=°and sold to a third party, the proceeds of ably expected o the date of issuance to be spent within the ar period or a reasonable temporary period or are deposited in ;d reserve or replacement fund. used to mat a. payments or reimbursements to a third party under binding contracts for activities performed within the TIF District, which were entered into ithin five years after certification of the district; or urse a party for payment of eligible costs (including interest) incurs tin five years from certification of the district. Beginning with the sixth year following certification of the TIF District, at least 80% of the tax increments must be used to pay outstanding bonds or make contractual payments obligated within the first five years. When outstanding bonds have been defeased and sufficient money has been set aside to pay for such contractual obligations, the TIF District must be decertified. The Authority does not anticipate that tax increments will be spent outside of the TIF District (except for allowable administrative expenses); however, the Authority does reserve the right to allow for tax increment pooling from the TIF District in the future. SPRINGSTED Page 10 City of Lino Lakes, Minnesota Section T Limitation on Administrative Expenses Administrative expenses are defined as all costs of the Authority other than: (1) amounts paid for the purchase of land; (2) amounts paid for materials and services, including architectural and engineering services directly connected with the physical development of the real property in the project; (3) relocation benefits paid to, or services providedtr, persons residing or businesses located in the project; (4) amounts used to pay principal or interest QI discount bonds issued pursuant to section 4'� reserve for, or sell at a (5) amounts used to pay other financial obligations to the ext rfl those obligations were used to finance costs describe n clause (1) to (3). Administrative expenses include amounts paid `for servicesprovided by bond counsel, fiscal consultants, planning or economic development consultar s and actual costs incurred by the County in administering the TIF District. Tax incremen,aay be used to pay administrative expenses of the TIF District up to the lesser of (a) 1`O of the total estimated public costs authorized by the TIF Plan or (b) 10% of the tal tax incrementexpenditures for the project. Section U Limitation on,.eroperty No ovements - Four Year Rule If after four years from:certlf cation of the TIF District no demolition, rehabilitation, renovation, or qualified improvement of an adjacent, street has commenced on a parcel located within the TIF District, then that parcel shall be excluded from the TIF District and the original net tax capacity di Tied improvements of a street are limited to construction or nWof a t`eet pr ubstantial reconstruction or rebuilding of an st submit to the County Auditor, by February 1 of the fifth year, has taken place for each parcel in the TIF District. shall be adjusted accordingly. opening of a new street, `eloc existing street. The Authoritycr. evidence that the required act If a parcel is excluded r;pm tf� TIF District and the Authority or owner of the parcel subsequently commence any of t Tpbove activities, the Authority shall certify to the County Auditor 'that ,such activity hascommenced and the parcel shall once again be included in the TIF District £ he County Auditor shall certify the net tax capacity of the parcel, as most recently certified by the ''ommissionof Revenue, and add such amount to the original net tax capacity of the TIF Distric Section V Estimated Impact on Other Taxing Jurisdictions Exhibit IV shows the estimated impact on other taxing jurisdictions if the maximum 'projected retained captured net tax capacity of the TIF District was hypothetically available to the other taxing jurisdictions. The Authority believes that there will be no adverse impact on other taxing jurisdictions during the life of the TIF District, since the proposed development would not have occurred without the establishment of the TIF District and the provision of public assistance. A positive impact on other taxing jurisdictions will occur when the TIF District is decertified and the development therein becomes part of the general tax base. SPRINGSTED Page 11 City of Lino Lakes, Minnesota Section W Prior Planned Improvements The Authority shall accompany its request for certification to the County Auditor (or notice of district enlargement), with a listing of all properties within the TIF District for which building permits have been issued during the 18 months immediately preceding approval of the TIF Plan. The County Auditor shall increase the original net tax capacity of the TIF District by the net tax capacity of each improvement for which a building permit was issued. There have been no building permits issued in the last 18 months in conjunction with any of the properties within the TIF District. Section X Development Agreements If within a project containing an economic development district, more n 10% of the acreage of the property to be acquired by the Authority is purchased with tax increment bonds proceeds (to which tax increment from the property is pledged) then prior to such acquisition, the Authority must enter into an agreement for the development of the property Such agreement mush provide recourse for the Authority should ttedevelopment not be complete lopment, but does not anticipate The Authority anticipates entering into an agreeme acquiring any property located within the TIF District. Section Y Assessment Agreemen The Authority may, upon entering into assessment agreement ith the developer, land and improvements, each year during The assessment agreement shall bepresented the P plans and s ecifii tins for previously assigned to e assessment ateement ap agreemenle. ri the County Recorder of .eac„ premature termination of this agre. District. The Autho anticipates en agreement, also enter into an establishes°a minimum market value of the e of the TIF District. the County or City Assessor who shall review 9vemen o be constructed, review the market value gang as tie minimum market value contained in the ars to be an accurate estimate, shall certify the assessment ,assessment agreement shall be filed for record in the office of unty where the property is located. Any modification or gent must first be approved by the City, County and School ing into an assessment agreement. Section Z Modific ft+s of the Tax Increment Financing Plan Any reduction or enlargement in the geographic area of the Project Area or the TIF District; increase in the amount of bonded indebtedness to be incurred; increase in the amount of capitalized interest; increase in that portion of the captured net tax capacity to be retained by the Authority; increase in the total estimated public costs; or designation of additional property to be acquired by the Authority shall be approved only after satisfying all the necessary requirements for approval of the original TIF Plan. This paragraph does not apply if: (1) the only modification is elimination of parcels from the TIF District; and (2) the current net tax capacity of the parcels eliminated equals or exceeds the net tax capacity of those parcels in the TIF District's original net tax capacity, or the SPRINGSTED Page 12 City of Lino Lakes, Minnesota Authority agrees that the TIF District's original net tax capacity will be reduced by no more than the current net tax capacity of the parcels eliminated. The Authority must notify the County Auditor of any modification that reduces or enlarges the geographic area of the TIF District. The geographic area of the TIF District may be reduced but not enlarged after five years following the date of certification. Section AA Administration of the Tax Increment Financing Plan Upon adoption of the TIF Plan, the Authority shall submit a copy o'r ch plan to the Minnesota Department of Revenue. The Authority shall also request that original net tax capacity and net tax capacity rate of the T Auditor in this process, the Authority shall submit copied establishing the TIF District and adopting the TIF Plan, and a It improvements. The Authority shall also send the Count Assessor any assessment agreement establishing the minimum market value of land andij fprovements in the iF District, and shall request that the County Assessor review and certif is assessment agreement as reasonable. The County shall distribute to the Authority ViAl,amount s x increment asit becomes available. The amount of tax increment in any yearrepresthe applicable property taxes generated by the retained captured net tax capacify;of the`TIF District. The amount of tax increment may change due to development anticipate b the TIF Plan, other development, inflation of property values, or changes in property classification rates or formulas. In administering and implementing the TIF Plan t Allowing 'awns should occur on an annual basis: (1) prior to July , he; Authority shall t e County Assessor of any new development hat Is occurred the TIF District during the past year to insure that the new value wtllbe record in a timely manner. receives therequest for certification of a new TIF District, or existing TIF District, before July 1, the request shall be ermining "beat 4ax rates for the current and subsequent levy received on or after July 1 shall be used to determine local tax years. each year the County Auditor shall certify the amount of the original net tax capacity of the TIF District. The amount certified shall reflect any changes that :occur as a reset of the following: the ue of property that changes from tax-exempt to taxable shall be to the original net tax capacity of the TIF District. The reverse � l also apply; the original net tax capacity may be modified by any approved enlargement or reduction of the TIF District; (c) if laws governing the classification of real property cause changes to the percentage of estimated market value to be applied for property tax purposes, then the resulting increase or decrease in net tax capacity shall be applied proportionately to the original net tax capacity and the retained captured net tax capacity of the TIF District. (b) County Auditor certify the tr ict. To assist the County TIF Plan, the resolution of any prior planned SPRINGSTED Page 13 City of Lino Lakes, Minnesota The County Auditor shall notify the Authority of all changes made to the original net tax capacity of the TIF District. Section AB Financial Reporting and Disclosure Requirements The State Auditor shall enforce the provisions of the TIF Act and shall have full responsibility for financial and compliance auditing of the Authority's use of tax increment financing. On or before August 1 of each year, the Authority must annually submit to the State Auditor, County Auditor and to the governing body of the municipality a report which shall: provide full disclosure of the sources and uses of public funds in the TIF District; (1) (2) permit comparison and reconciliation of the acx nta and financial reports; (3) permit auditing of the funds expended oehalf of the Tiff District; and (4) be consistent with generally accepted accounting principles. The report shall include, among other items, the foliowing information: (1) the original net tax capacity of the da subdivision 1; (2) (3) (4) (5) the net tax capacity for th the captured net tax capaci any fiscal 469.1 eduction any subdistrict under 469.177, district and any subdistrict; the captured net tax capacity under section city retained for tax increment financing under 469.177, rap hr clause (1 ); ptured ,tax capacity distributed among affected taxing districts under 469 1 i' subdivision,2, paragraph (a), clause (2); the type of .he date the municipality approved the tax increment financing plan and the date approval ofOny modification of the tax increment financing plan, the approval of which requires notice, discussion, a public hearing, and findings under subd sion 4°; paragraph (a); the date the authority first requested certification of the original net tax capacity of the district and the date of request for certification regarding any parcel added to the district; the date the county auditor first certified the original net tax capacity of the district and the date of certification of the original net tax capacity of any parcel added to the district; (11) the month and year in which the authority has received or anticipates it will receive the first increment from the district; SPRINGSTED Page 14 City of Lino Lakes, Minnesota (12) the date the district must be decertified; (13) for the reporting period and prior years of the district, the actual amount received from, at least, the following categories: (i) tax increments paid by the captured net tax capacity retained for tax increment financing under section 469.177, subdivision 2, paragraph (a), clause (1), but excluding any excess taxes; (ii) tax increments that are interest or other investment earnings on or from tax increments; (iii) tax increments that are proceeds from ie",sale or lease of property, tangible or intangible, purchased by the utf € ty with tax increments; (iv) tax increments that are repaymertsof loans or advances made by the authority with tax increments (v) bond or loan proceeds; (vi) special assessments; (vii) grants; and (viii) transfers from funds, not exclusively associated with the district; (14) for the reporting period and for the ror years of the district the actual amount expended for,at Least, the folio v ng categori (i) uisition ofland and buildings through condemnation or purchase; or preparation costs; aka installattonof public utilities, parking facilities, streets, roads, sidewalks, other similar public improvements; istra costs, including the allocated cost of the Authority; and public: purpos ark facilities, facilities for social, recreational, or conference s, or other similar public improvements; and rs to funds not exclusively associated with the district; (15) for properties sold to developers, the total cost of the property to the Authority and the price paid by the developer; (16) the amount of any payments and the value of in -kind benefits, such as physical improvements and the use of building space, that are paid or financed with tax increments and are provided to another governmental unit other than the municipality during the reporting period; (17) the amount of any payments for activities and improvements located outside of the district that are paid for or financed with tax increments; SPRINGSTED Page 15 City of Lino Lakes, Minnesota (18) the amount of payments of principal and interest that are made during the reporting period on any non-defeased: (i) general obligation tax increment financing bonds; (ii) other tax increment financing bonds; and (iii) notes and pay-as-you-go contracts; (19) the principal amount, at the end of the reporting period,,of any non-defeased: (i) general obligation tax increment financing bonds; (ii) other tax increment financing bonds; (iii) notes and pay-as-you-go contract (20) the amount of principal and interim payments that are du for the current calendar year on any non-defea (i) general obligation tax incremen (21) (ii) other tax increment. financing bonds and (iii) notes and pay -as if the fiscal disparities contribution u computed under section 469,�f77 increases roper taxes impp approv, the tax increment fin contnfi {ion; acts; "bonds; tapper 276A or 473F for the district is subdivision 3, paragraph (a). the amount of selon other properties in the municipality that arcing plan as a result of the fiscal disparities (22) whether tax n emer encinr plan or other governing document permits ement reveh s to be ex ended; (i) pay bonds, the proceeds of which were or may be expended on activities outside of the district; (ii) for deposit intoa common bond fund from which money may be expended on activities located outside of the district; or rwise finance activities located outside of the tax increment racing district; (23) the estimate of contained in the tax increment financing plan of the cost of the project, including administrative expenses to be paid with tax increment; and (24) any additional information the state auditor may require. The Authority must also annually publish in a newspaper of general circulation in the City an annual statement for each tax increment financing district showing: (1) the original net tax capacity of the district and any subdistrict under 469.177, subdivision 1; SPRI NGSTED Page 16 City of Lino Lakes, Minnesota the net tax capacity for the reporting period of the district and any subdistrict; the captured net tax capacity of the district; the month and year in which the authority has received or anticipates it will receive the first increment from the district; the date the district must be decertified; the amount of principal and interest payments that are due for the current calendar year on any non-defeased obligations; if the fiscal disparities contribution under ch 6A or 473F for the district is computed under section 469.177, subdivision`'a3, paragraph (a). the amount of increased property taxes imposed on other properties tip the municipality that approved the tax increment financing lain as a result ofy, he fiscal disparities contribution; (8) the amounts of tax increment received and expended in the reporting period; (9) and any additional information the auth The annual statement must inform readers et additional aformation regarding each district may be obtained from the authority, and explain how additional information may be requested. The Authority must publish the annual statement f ayear no later than August 15 of the next year. The authority must identify the newspaper `of general circulation in the municipality to which the annual statementt a been or' ill a submitted for publication and provide a copy of the,annual statement to the county board, county auditor, the school board, the state auditor, andthe governing&body of the municipality on or before August 1 of the year in which the statementmust be published. Teems necessary. The reporting and disclosure r ytline in this section shall begin with the year the district was ce fi d and sb ll d in the year to thich both the district has been decertified and all tax increments vex beer s ient or returned to the county for redistribution. Failure to meet theseequirements,"" s3determined by the State Auditors Office, may result in suspension of distil:4*bn of tax SPRINGSTED Page 17 Exhibit 11 Assumptions Report City of Lino Lakes, Minnesota Tax Increment Financing (Economic Development) District No. 1-10 Panattoni Project Scenario B - Prelim. TIF Projections - FD contribution from within District Type of Tax Increment Financing District Maximum Duration of TIF District Projected Certification Request Date Decertification Date Base Estimated Market Value (1) Times: First $150,000 1.50% Excess Original Net Tax Capacity Base Estimated Market Value Increase in Estimated Market Value (2) Total Estimated Market Value Times: First $150,0 Excess Total Net Tax Capacil City of Lino Lakes Anoka Co ISD Oth of Fiscal Diis Administrati Pooling Percen s Contribution Frd tainage Percent (2004 $16 2.00% IF District aximum = 10%) Economic Development 8 years from 1st increment 08/31/03 12/31 /1 Years of Increment) 2003/20W 8$5,000 Asa 2,250 14,700 $16,9_ nt/Coilection Year 200412005 2005/2006 $885 00C 2,2 00 14,700 $885,000 9,663,000 ''$10,548,000 2,250 207,960 2006/2007 $885,000 11,463,000 $12,348,000 2,250 243,960 $16,950 $210,210 $246,210 47:603% 37.714% 37.467% 7.050% 129.834% 2002/2003 32.3301 % 5.00% 0.00% Bonds Bonds Dated NA Bond Issue @ 0.00% (NIC) $1,785,000 Eligible Project Costs $1,637,425 Present Value Date & Rate Note (Pay-As-You-Gol Note Dated 08/31/03 Note Rate 5.00% Note Amount $1,582,500 08/31/03 8.00% Notes (1) Pay 2003 base values of 3 parcels provided by City and County. 2 parcels will be removed from TIF District 1-9. (2) Estimated completed values provided by City. Projects completed in phases between 2004-07 for Pay 2006-09. Panattoni bldg complete in 2004, Outlot A bldg in 2005, Outlot B bldg in 2006 and Outlot C bldg in 2007. SPRINGSTED Page 19 Projected Tax Increment Report 0 0 0 1O (D M M 0) 10 10 0) 0 0 0 T N (MD 0 O 1 O+) v IOD COO ti I v Ong) N 0 o O (0 v M OD O (0 f0 OD (D 0 0 0 m v v v v v v 7 0 0 11') Na N N N N (0 (0 O M O O O O O O 2 D c O N N N N N N N C Z ro Q X 0) 10 0) N OV Vi W,t. Ord N Q V O 7'r J V) p O 10 0 0 0�� 0 0 10 O 1 0 0 0 0 0 'tT O M OD OD O OD O O CO O N v v .4 .7 O O O N OO) CO CO CO CO n 1- N. r CO n 0 CO h CO 0 0 0 0 0 0 00 M OO) 0) O 1` co bi x1 0 W U C > l0 l0 Z. 0_ ce o Z o W 1p . O • � • y M f0 x _T C U co, O Z U .. X T Togo N 0 (0 Z V 0)7 0 C 0- w 0 0 0 m666.666000 Iwww D I�(<D O O O co ,ID O V '0)i OO) OO) OO) 0 N N :=N NNNN a` a.a ae t.� o ems, 4') XA co co 0 C4N N N M N N 0 0 0 a- N 10 M•'s`:! ▪ - 10 1D mn o)000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 10 10 0 10 10 10 10 10 10 10 10 O) CO. co. co. co. O) co. O) co. CO. CO. 0) N (9 WWWWWWWWWWWWW I iO M M 0 0 0 0 0 0 0 0 0 0 O) O) 0) N N N N N N N N N N N N fD O tO 0 m0 O (0 (O O OO (0 (D OD (0 10 r- s- d' O 10 (0 10 10 10 N 1) N 10 NNMMMMMMMMMM 0,7000 M V' to CO 1- CO O) 0 .- N M v 0 (D 1- 0 0 0 0 0 0 0 QCOMCOMMCOMMCOMMCOMM N N N N N 01 0 40 O SPRINGSTED Estimated Impact on Other Taxing Jurisdictions Report 0•001.- m a) m 7 • o. CD CG m E _ 0x .0 U Z a o 0 0 v ai C -oc (0 co co 0 0 O O) O 00) O CO O 0 0 0 0 0 0 U 'p ((00 CO 0) 0 N ,`5.L H U IC C M CO N:. P o m o CO o O I— N x F Z C C U X p CO C 7 •41- O O NV ai • M 0 o (0 CO a— City of Lino Lakes Anoka County N V) O m m t_ O 0 F— C. > CO > N C L I a CD y 3 o m u) .c a) ai ai ▪ m .Urem m co a (`0 2 N x T. co x w • 'c co a) LL 'a V. o ^ ~ ~ m m LL - coV & 0 p • )7J 5 w C m m w C O O O w w m O p tto N O 0 m _0 O T' N m m y CO C M to a, a) 0 U m a s y 0 LL x cum o m m ?. C...)1x H F— () — c x O • .''�'' ,��„ a) ) 0 O. 0 cn - <s t - Z o a > m m 0 E.-. 7 > N CC N LL �" U " C w 'CL y CO 0 0 a U 01 m a c m m ( - (H r m N) CD w Ca 0 CO C U C CD in w C y m 'c pj O C as 0., •X *0 N • a, 0. V) C) • L N C _ 0 • U c m m 0. a E x co C H H Exhibit V Market Value Analysis Report City of Lino Lakes, Minnesota Tax Increment Financing (Economic Development) District No. 1-10 Panattoni Project Scenario B - Prelim. TIF Projections - FD contribution from within District Assumptions Present Value Date P.V. Rate - Gross T.I. Increase in EMV With TIF District Less: P.V of Gross Tax Increment Subtotal Less: Increase in EMV Without TIF Difference Annual Gross Tax crement resent Value @ 00% 1 200' 69t796 133,928 2 2007 F 20 2 k 1`4'T 106 2008 2868 e~168,293 2009 298,069 186,633 010 298,069 172,809 2011 98,069 160,008 ,069 148,155 298,069 137,181 2014 298,069 127,019 2015 0 0 2016 0 0 t017 0 0 2018 0 0 2019 0 0 2020 0 0 2021 0 0 2022 0 0 18 2023 0 0 19 2024 0 0 20 2025 0 0 21 2026 0 0 22 2027 0 0 23 2028 0 0 24 2029 0 0 25 2030 0 0 26 2031 0 0 $2,408,502 $1,381,132 SPRINGSTED Page 22 AGENDA ITEM 4 STAFF ORIGINATOR: Mary Alice Divine DATE: 08/11/03 TOPIC: Resolution No. 03-05 adopting a Modified Plan for Tax Increment Financing District No. 1-9, eliminating two parcels from the District Vote Required: Simple Majority BACKGROUND: TIF District No. 1-10 consists of three parcels. Two of the parcels were previously a part of TIF District No. 1-9, which was established in 1998. This resolution removes these two parcels from the old district so they can be incorporated into the new District No. 1-10 RECOMMENDATION: Adopt Resolution No. 03-05 approving the modification of TIF District No. 1-9 eliminating two parcels from the district. LINO LAKES ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. 03-05 RESOLUTION APPROVING THE MODIFICATION OF TAX INCREMENT FINANCING DISTRICT NO. 1-9 WITHIN DEVELOPMENT DISTRICT NO. 1 OF THE CITY OF LINO LAKES TO ELIMINATE TWO PARCELS FROM THE DISTRICT WHEREAS, on December 14, 1998 the Lino Lakes Economic Development Authority (The "Authority") created its Tax Increment Financing District No. 1-9 ("District No. 1-9") within its Development District No. 1; and WHEREAS, District No. 1-9, was created as an Economic Development District according to M.S. 469.174, subd.12; and WHEREAS, District 1-9 included the parcels: 17-31-22-23-0012 17-31-22-32-0006 which were previously certified in District 1-9; and WHEREAS, the original net tax capacity for taxes payable 2003 is: 17-31-22-23-0012: $769.00 17-31-22-32-0006: $5,649.00; and WHEREAS, the current net tax capacity for taxes payable in 2003 is: 17-31-22-23-0012: $1,110.00 17-31-22-32-0006: $13,600.00; and WHEREAS, because the current tax capacity is greater than the adjusted original tax capacity; a public hearing is not required by Minnesota Statutes, Section 469.175, subd. 4; ,and WHEREAS, The Authority desires by this resolution to cause the elimination of the parcels from the District, thereby reducing the size of the District. NOW THEREFORE, BE IT RESOLVED by the Economic Development Authority of the City of Lino Lakes that District No. 1-9 is hereby modified to eliminate two parcels and the City's staff shall take such action as is necessary to notify the County Auditor of the reduction in the geographic area of District No. 1-9 caused by the elimination of such parcels. DATED: , 2003 ATTEST: President Executive Director Parcels to be removed from Tax Increment Financing District No. 1-9 17-31-22-23-0012 17-31-22-32-0006 STAFF ORIGINATOR: AGENDA ITEM 7A-(i) & (ii) Mary Alice Divine DATE: 08/11/03 TOPIC: Public Hearing: Consideration of adopting a Modified Program for Development District No. 1 and establishing Tax Increment Financing District No. 1-10 7A-(i), Resolution No. 03-123, Adopting a Modified Program for Development District No. 1 and establishing Tax Increment Financing District No. 1-10 7A-(ii), Resolution No. 03-124, Approving the Modification of Tax Increment Financing District No. 1-9, eliminating two parcels from the district Vote Required: Simple Majority BACKGROUND: Earlier this evening the Lino Lakes Economic Development Authority considered a modified program for Development District No. 1 and the plan for the establishment of a new TIF District No. 1-10. The developers of Marshan Lake Industrial Park on 35W have proposed to plat the 30-acre park into sites for light industrial users. In conjunction with the plat, the developers are working with a potential light industrial user that is proposing to construct a 265,000 sq. ft. facility on approximately 13 acres in the park. It is anticipated that development of the business park, along with other development that may occur, may justify some public expenditure for infrastructure improvements to Lake Drive and the interchange. In addition, the business park has not developed solely through private efforts and may require public participation to develop in a manner consistent with the city's goals for commercial and industrial development. The draft plan was sent to Centennial School District and Anoka County for review and comment. The Planning and Zoning Board found the plan consistent with the Comprehensive Plan. According to Minnesota Statutes, a public hearing before the city council is required before consideration of approval of this new District. RECOMMENDATION: Open the public hearing CITY OF LINO LAKES RESOLUTION NO. 03-123 RESOLUTION MODIFYING DEVELOPMENT DISTRICT NO. 1 AND ESTABLISHING TAX INCREMENT FINANCING DISTRICT NO. 1-10 WHEREAS, the Economic Development Authority (the "Authority") for the City of Lino Lakes (the "City") has proposed to modify the Program (the "Program") for Development District No. 1 ("District") and to establish Tax Increment Financing District No. 1-10 ("TIF District") and adopt the Tax Increment Financing Plan (the "Plan") therefore, all pursuant to and in conformity with existing law, including Minnesota Statutes, Sections 469.090 through 469.1081 ("EDA Act"), and Sections 469.174 to 469.179, inclusive ("TIF Act"), all as reflected in the Program and Plan and presented for the Authority's consideration. WHEREAS, the City has investigated the facts relating to the modification of the Program and the establishment of the Plan, and has caused to be prepared a "Modified Development Program, Development District No.1 and a "Tax Increment Financing Plan for Tax Increment Financing (Economic Development) District No. 1-10"; and WHEREAS, the Authority and City have performed all actions required by law to be performed prior to the adoption of the modified Program and the Plan, including but not limited to notification of Anoka County and School District No. 12 having taxing jurisdiction over the property to be included in the TIF District, a request for review of and written comment on the Plan by the City Planning & Zoning Board, and a request that the Council schedule a public hearing on the Plan upon published notice as required by law; and WHEREAS, the Authority has approved the Program and the Plan and recommended approval by this Council. NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Lino Lakes as follows: Section 1. Findings; Development District. 1.01. It is hereby found and determined that within the District there is a need to improve the tax base and employment opportunities, and to provide an impetus for commercial development. 1.02. It is further found and determined that, since initial establishment of the Districts, development and redevelopment needs have changed in certain parts of the City. SJB-235626v1 LN140-81 1.03. It is further specifically found and determined that the development described in the Program as modified would not be feasible without the public intervention and financial assistance described in the modified Program and Plan. Section 2. Findings; TIF District No.1-10. 2.01. It is found and determined that it is necessary and desirable for the sound and orderly development of the District, and for the protection and preservation of the public health, safety, and general welfare, that the authority of the TIF Act be exercised by the City to provide public financial assistance to the TIF District and Development District. 2.02. The proposed development, in the opinion of the City, would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future and the increased market value of the site that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in the market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of the TIF District permitted by the TIF Plan. 2.03. The Plan conforms to the general plan for the development of the City as a whole. 2.04. The Plan will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the development of the TIF District and the District by private enterprise. 2.05. The TIF District is an economic development district under Section 469.174, Subd. 12 of the TIF Act. 2.06. Reasons and facts supporting the above findings are set forth in the Plan and are incorporated herein by reference. The Council has also relied upon the reports and recommendations of its staff and consultants as well as the personal knowledge of members of the Council in reaching its conclusions regarding the modified Program and the Plan. Section 3. Approvals; Further Proceedings. 3.01. The Program and the Plan are hereby approved in substantially the forms on file in City Hall. 3.02. The Community Development Director is authorized to forward a copy of the Program and the Plan to the Office of the State Auditor pursuant to Minnesota Statutes 469.175, subd. 2. 3.03. The City Clerk is authorized and directed to forward a copy of the Plan to Anoka County and request that the Auditor certify the original tax capacity of the TIF District as described in the Plan, all in accordance with Minnesota Statutes 469.177. SJB-235626v1 LN 140-81 DATED: , 2003 Mayor ATTEST: City Clerk SJB-235626v1 LN140-81 CITY OF LINO LAKES RESOLUTION NO. 03-124 RESOLUTION APPROVING THE MODIFICATION OF TAX INCREMENT FINANCING DISTRICT NO. 1-9 WITHIN DEVELOPMENT DISTRICT NO. 1 OF THE CITY OF LINO LAKES TO ELIMINATE TWO PARCELS FROM THE DISTRICT WHEREAS, on December 14, 1998 the Lino Lakes Economic Development Authority (The "Authority") created its Tax Increment Financing District No. 1-9 ("District No. 1-9") within its Development District No. 1; and WHEREAS, the City Council (the "City") adopted the Plan for District No. 1-9 on December 14, 1998; and WHEREAS, District No. 1-9, was created as an Economic Development District according to M.S. 469.174, subd.12; and WHEREAS, District 1-9 included the parcels: 17-31-22-23-0012 17-31-22-32-0006 which were previously certified in District 1-9; and WHEREAS, the original net tax capacity for taxes payable 2003 is: 17-31-22-23-0012: $769.00 17-31-22-32-0006: $5,649.00; and WHEREAS, the current net tax capacity for taxes payable in 2003 is: 17-31-22-23-0012: $1,110.00 17-31-22-32-0006: $13,600.00; and WHEREAS, because the current tax capacity is greater than the adjusted original tax capacity; a public hearing is not required by Minnesota Statutes, Section 469.175, subd. 4; ,and WHEREAS, The City Council desires by this resolution to cause the elimination of the parcels from the District, thereby reducing the size of the District. NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Lino Lakes that District No. 1-9 is hereby modified to eliminate two parcels and the City's staff shall take such action as is necessary to notify the County Auditor of the reduction in the geographic area of District No. 1-9 caused by the elimination of such parcels. DATED: , 2003 ATTEST: Mayor City Clerk Parcels to be removed from Tax Increment Financing District No. 1-9 17-31-22-23-0012 17-31-22-32-0006