HomeMy WebLinkAbout11-24-2003 EDA PacketAGENDA
ECONOMIC DEVELOPMENT AUTHORITY
MONDAY
NOVEMBER 24, 2003
6:00 P.M.
1. Call to Order and Roll Call
2. Consideration of Minutes of October 27, 2003
3. Consideration of Resolution No. 03-11, Adopting a Modified Program for
Development District No. 1 and Establishing Tax Increment Financing District No.
1-11 (Woods Edge)
4. Adjourn
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DATE
MEMBERS PRESENT
MEMBERS ABSENT
OTHERS PRESENT
CITY OF LINO LAKES
ECONOMIC DEVELOPMENT AUTHORITY
MINUTES
: October 27, 2003
: J. Bergeson, D. Carlson, C. Dahl, J. O'Donnell,
J. Reinert (part)
: None
: Mary Divine, Dan Tesch, Michael Grochala and Bill
Hawkins
CONSIDERATION OF MINUTES OF SEPTEMBER 23, 2003
EDA Member Bergeson moved to approve the September 22, 2003 minutes, as presented. EDA
Member O'Donnell seconded the motion. Motion passed. EDA Member Reinert absent.
CONSIDERATION OF RESOLUTION NO. 03-08 DECERTIFYING TAX INCREMENT
FINANCING DISTRICT NO. 1-6
Ms. Divine summarized the Staff report, indicating the obligations in this district have been satisfied.
She stated the resolution terminates the district as of November 15, 2003.
EDA Member O'Donnell moved to adopt Resolution No. 03-08 decertifying Tax Increment
Financing District No. 1-6, Apollo Business Park. EDA Member Dahl seconded the motion.
Motion carried. EDA Member Reinert absent.
CONSIDERATION RESOLUTION NO. 03-09 DECERTIFYING TAX INCREMENT
FINANCING DISTRICT NO. 1-7
Ms. Divine summarized the Staff report, indicating the obligations in this district have been satisfied.
She stated the resolution terminates the district as of November 15, 2003.
EDA Member Dahl moved to adopt Resolution No. 03-09 decertifying Tax Increment Financing
District No. 1-7, Apollo Business Park. EDA Member Bergeson seconded the motion.
Motion carried unanimously.
CONSIDERATION OF RESOLUTION NO. 03-10 DECERTIFYING TAX INCREMENT
FINANCING DISTRICT NO. 3-1
Ms. Divine summarized the Staff report, indicating the obligations in this district have been satisfied.
She stated the resolution terminates the district as of November 15, 2003.
EDA MINUTES OCTOBER 27, 2003
DRAFT
46 EDA Member Bergeson moved to adopt Resolution No. 03-10 decertifying Tax Increment Financing
47 District No. 3-1, Clearwater Creek Development Center. EDA Member Dahl seconded the motion.
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49 Motion carried unanimously.
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51 ADJOURNMENT
52
53 There being no further business, EDA Member O'Donnell moved to adjourn. EDA Member Dahl
54 seconded the motion. Motion passed unanimously.
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56 Meeting adjourned at 6:12 p.m.
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64 Transcribed by:
65 Karen Whaley
66 TimeSaver Off Site Secretarial, Inc.
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AGENDA ITEM 3
STAFF ORIGINATOR: Mary Alice Divine
DATE: 11/24/03
TOPIC: Resolution No. 03-11 adopting a Modified Program
for Development District No. 1 and establishing Tax
Increment Financing District No. 1-11
Vote Required: Simple Majority
BACKGROUND:
On September 22 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. 1-11. This district is a 25-year redevelopment district
intended to provide a source of revenue for development of the city's downtown
area, known as Woods Edge. This district is comprised of the Arctic
Sandblasting site, two small parcels owned by Rehbein Companies, and the
portion of Lake Drive that extends from Town Center Parkway to Lilac Street
(see Plan map).
Hartford Group, Inc. has submitted a proposal for development of this project in
keeping with the city's Comprehensive Plan, which designates the area for high
density, pedestrian oriented mixed -use. The Comprehensive Plan's objectives
for development of this site is to establish a central gathering place, or
"downtown" for residents that will be a source of community identity and pride.
This development has not occurred solely through private efforts and may
require public participation to develop in a manner consistent with the
Comprehensive Plan goals for this site. In addition, it is anticipated that
improvements to Lake Drive and the 35W bridge may justify some public
expenditure.
The TIF Plan outlines the specific type of development that is expected to occur
within the TIF district, and demonstrates that the site has met the statutory
requirements for redevelopment. It also what outlines the types of expenses that
are eligible for reimbursement from tax increment and establishes a maximum
budget based on the amount of increment that could be generated over 25 years
if full build out of the project occurs. Approval of the TIF Plan does not constitute
any commitment by the EDA to any form or amount of subsidy to any developer.
It does not constitute approval of any project or a development agreement with
any developer.
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The draft plan was sent to Forest Lake 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 November 12, 2003.
The City Council will hold a public hearing tonight before consideration of
approval of this new District. The TIF District will not be established until it is
submitted by the city to Anoka County for certification.
RECOMMENDATION:
Adopt Resolution No. 03-11 adopting a modified program for Development
District No. 1 and establishing TIF District No. 1-11
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LINO LAKES ECONOMIC DEVELOPMENT AUTHORITY
RESOLUTION NO. 03-11
RESOLUTION MODIFYING DEVELOPMENT DISTRICT NO.
1 AND ESTABLISHING TAX INCREMENT FINANCING
DISTRICT NO. 1-11
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. 1-11
("District No. 1-11") 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 (Redevelopment) District No. 1-11 "; 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. 831 having taxing
jurisdiction over the property to be included in District No. 1-11, 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:
1. 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.
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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
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DEVELOPMENT PROGRAM
DEVELOPMENT DISTRICT NO. 1
LINO LAKES ECONOMIC DEVELOPMENT AUTHORITY
, 2003
This document drafted by:
KENNEDY & GRAVEN, CHARTERED
470 Pillsbury Center
Minneapolis, MN 55402
(612) 337-9300
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TABLE OF CONTENTS
Page
MODIFIED DEVELOPMENT DISTRICT PROGRAM FOR DEVELOPMENT DISTRICT NO. 1
Subsection A.
Subsection B.
Subsection C.
Subsection D.
Subsection E.
Subsection F.
Subsection G.
Subsection H.
Subsection I.
Subsection J.
Subsection K.
Subsection L.
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Definitions 1
Statutory Authority 2
Statement of Public Purpose 2
Statement of Objectives 2
Environmental Controls 3
Open Space to be Created 3
Public Facilities to be Constructed 3
Proposed Reuse of Property 3
Development District Financing 4
Relocation 4
Administration of Development District 4
Map of Development District 4
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 11} 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
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District No. 1 as stated in the modified Program or in the Plan for any of the tax increment financing
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 1'IF 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 1'DD District No. 1-8.
Within the District, the City and/or Authority have previously created ten TIF Districts. The
purpose of this modification of the Program is to acknowledge the Authority's intent to establish
TIF District No. 1-11 in order to further the economic development and redevelopment goals for the
District. This modified Program does not change the boundaries of the District from those
established at the time the Authority established 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
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because of the lack of proper utilization and lack of invesliuent, 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;
4. 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
encourage development within the District which is aesthetically pleasing and which
creates a positive visual image of the community.
promote redevelopment of property that is occupied by substandard buildings, which
will foster revitalization of that property, increase tax base, and facilitate
development of a range of housing types and commercial services in Development
District No. 1.
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
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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
TIF District No. 1-11 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. 1-11 to
fmance the cost of development activities. TIF District No. 1-11 is the eleventh tax increment
financing district to be established within the Development District.
Project costs for lIF District No. 1-11, 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 ilk 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.
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 Adminishator 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.
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EXHIBIT A
MAP OF DEVELOPMENT DISTRICT NO. 1
(See attached map)
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Development District No. 1
City of Lino Lakes
Anoka County, Minnesota
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AGENDA ITEM 7A
STAFF ORIGINATOR: Mary Alice Divine
DATE: 11/24/03
TOPIC: Public Hearing: Consideration of Resolution No. 03-
209, Adopting a Modified Program for Development
District No. 1 and establishing Tax Increment
Financing District No.1-11
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. 1-11.
This district is a 25-year redevelopment district intended to provide a source of
revenue for development of the city's downtown area, known as Woods Edge.
This district is comprised of the Arctic Sandblasting site, two small parcels owned
by Rehbein Companies, and the portion of Lake Drive that extends from Town
Center Parkway to Lilac Street (see Plan map).
Hartford Group, Inc. has submitted a proposal for development of this project in
keeping with the city's Comprehensive Plan, which designates the area for high
density, pedestrian oriented mixed -use. The Comprehensive Plan's objectives
for development of this site is to establish a central gathering place, or
"downtown" for residents that will be a source of community identity and pride.
This development has not occurred solely through private efforts and
require public participation to develop in a manner consistent with the
Comprehensive Plan goals for this site. In addition, it is anticipated that
improvements to Lake Drive and the 35W bridge may justify some public
expenditure.
The TIF Plan outlines the specific type of development that is expected to occur
within the TIF district, and demonstrates that the site has met the statutory
requirements for redevelopment. It also what outlines the types of expenses that
are eligible for reimbursement from tax increment and establishes a maximum
budget based on the amount of increment that could be generated over 25 years
if full build out of the project occurs. Approval of the TIF Plan does not constitute
any commitment by the city to any form or amount of subsidy to any developer. It
does not constitute approval of any project or a development agreement with any
developer.
The draft plan was sent to Forest Lake 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 November 12, 2003.
RECOMMENDATION:
Open the public hearing.
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CITY OF LINO LAKES
RESOLUTION NO. 03-209
RESOLUTION MODIFYING DEVELOPMENT DISTRICT NO.
1 AND ESTABLISHING TAX INCREMENT FINANCING
DISTRICT NO. 1-11
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. 1-11 ("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 (Redevelopment) District No. 1-11"; 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. 831 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.
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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.1-11.
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.
whole.
2.03. The Plan conforms to the general plan for the development of the City as a
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 a redevelopment development district under Section
469.174, Subd. 10 of the TIF Act.
2.06. Reasons and facts supporting the above fmdings 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.
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DATED: , 2003
Mayor
ATTEST:
City Clerk
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