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HomeMy WebLinkAbout02-08-2016 EDA PacketLINO LAKES ECONOMIC DEVELOPMENT AUTHORITY MEETING Monday, February 8, 2016 6:15 P.M. City Council Chambers 1. Call to Order and Roll Call 2. Consideration of Minutes of December 28, 2015 3. Action Items A. Introduce New Members and Consideration of 2016 Annual Appointments B. EDA 2015 Annual Report 4. Adjourn EDA MINUTES December 28, 2015 DRAFT 1 CITY OF LINO LAKES ECONOMIC DEVELOPMENT AUTHORITY MINUTES DATE : December 28, 2015 TIME STARTED : 6:05 p.m. TIME ENDED : 6:30 p.m. MEMBERS PRESENT : EDA Members Stoesz, Kusterman, Rafferty, Roeser (Chair), and Mayor Reinert MEMBERS ABSENT : none STAFF PRESENT : City Administrator Jeff Karlson; Community Development Director Michael Grochala; City Attorney Joseph Langel; City Clerk Julie Bartell The meeting was called to order at 6:05 p.m. by President Roeser. CONSIDERATION OF THE MINUTES OF MAY 11, 2015 Economic Development Authority (EDA) Member Kusterman moved to approve the May 11, 2015 minutes. EDA Member Rafferty seconded the motion. Motion carried on a voice vote. CONSIDERATION OF RESOLUTION NO. 15-04, APPROVING THE PURCHASE AND SALE AGREEMENT WITH D.R. HORTON INC. , MINNESOTA, LEGACY AT WOODS EDGE PROPERTY. Community Development Director Grochala explained the proposed sale of a portion of the Legacy at Woods Edge property, indicating the location of the property on a map. The developer is proposing to construct single family townhomes on the property and that is consistent with city master plans for the area. Since the property originally went into foreclosure and the city was eventually able to gain title for the property to its EDA, the number one goal has been to pay off the debt service related to improvements to the property. It appears that the proposed sale proceeds along with tax increment generated from developing the site would be adequate to cover remaining debt service. The developer, D.R. Horton, is offering to purchase the property for $1 million. Mr. Grochala briefly reviewed the terms of the proposed Purchase and Sale Agreement, including conditions, opt out provisions and government appeal consideration. He noted that staff is still in the process of updating the formal agreement but the major terms are clear and he is requesting EDA approval of the resolution. City Attorney Langel reviewed terms of the agreement in more detail. EDA Member Reinert said he is interested in seeing the city have the first right of refusal if nothing happens with the development in a year; there could be land value changes in that period of time. The Vice President of Land, Minnesota Division, for D.R. Horton, addressed the EDA. He noted that the company is the number one home builder in the country, and have operated in Minnesota since 1994. They are well established. They are excited about the project proposed for Lino Lakes and want to move forward as soon as possible within the necessity of staying within a plan. He can promise that their plan will be thoughtful and thorough and conscious of necessary process. EDA President Roeser noted that he thinks it would be a good move for the city to get the property developed because it brings new residents to the city as well as additional tax base. EDA MINUTES December 28, 2015 DRAFT 2 President Roeser opened the public hearing on the matter. Melissa Maher, 6462 Fawn Lane, asked, in regard to the proceeds of the sale of the land, if there would be any obligation to share any of the proceeds with the other jurisdictions that were involved when the land was forfeited. Community Development Director Grochala further outlined the tax forfeiture process. There being no other comments, the public hearing was closed. EDA Member Rafferty moved to approve EDA Resolution No. 15-04. EDA Member Stoesz seconded the motion. Motion carried on a voice vote. UNFINISHED BUSINESS There was no Unfinished Business. NEW BUSINESS There was no New Business. ADJOURNMENT There being no further business, EDA Member Rafferty moved to adjourn. EDA Member Stoesz seconded the motion. Motion carried on a voice vote. The meeting was adjourned at 6:30 p.m. LINO LAKES ECONOMIC DEVELOPMENT AUTHORITY AGENDA ITEM 3A STAFF ORIGINATOR: Michael Grochala MEETING DATE: February 8, 2016 TOPIC: Introduction of New Members and Annual Appointments VOTE REQUIRED: Simple Majority BACKGROUND The Economic Development Authority (EDA) was established in 1990 pursuant to Minnesota Statutes Chapter 469. The EDA is governed by a board of commissioners consisting of the City Council members. Accordingly newly elected City Council members Maher and Manthey are new to the board in 2016. Each year the Economic Development Authority is required by its by-laws to hold an annual meeting and to make a number of appointments. The following is a list of appointments for your consideration: Position 2015 2016 Recommended 1. President Dave Roeser TBD 2. Vice President Dale Stoez TBD 3. Treasurer William Kusterman TBD 4. Secretary Community Development Director Community Development Director 5. Assistant Treasurer Finance Director Finance Director 6. Executive Director City Administrator City Administrator 7. Official Newspaper Quad Community Press Quad Community Press 8. Legal Depositories LMC 4M Fund Wells Fargo Securities Wells Fargo Advisors US Bank Merrill Lynch RBC Capital Markets Morgan Stanley Sterne, Agee & Leach F&M Bank First Resource Bank Others as needed LMC 4M Fund Wells Fargo Securities Wells Fargo Advisors US Bank RBC Capital Markets Morgan Stanley F&M Bank First Resource Bank Others as needed 9. Legal Services Kennedy & Graven Ratwick, Roszak & Maloney Kennedy & Graven Ratwick, Roszak & Maloney Staff suggests that the appointments of President, Vice President and Treasurer be made in separate motions. The remaining appointments can be made in one motion. RECOMMENDATION Staff is recommending Board prerogative or as recommended. LINO LAKES ECONOMIC DEVELOPMENT AUTHORITY AGENDA ITEM 3B STAFF ORIGINATOR: Michael Grochala MEETING DATE: February 8, 2016 TOPIC: 2015 Annual Report VOTE REQUIRED: 3/5 BACKGROUND Each year staff is required to provide a recap of the prior year activities undertaken by the board. In 2015 the EDA undertook the following activities: 1. Issued Lease Revenue Bonds for the construction of the Lino Lakes Fire Station. 2. Entered into a Lease Agreement with the City of Lino Lakes for the Fire Station. 3. Entered into a Sale and Purchase Agreement with D.R. Horton for 10 acres of property owned by the EDA in the Legacy at Woods Edge Development. Overall the City saw an increase in development activity in 2015. 47 new residential permits were issued in 2015, our highest total since 2007 (91). Three new restaurants, Elwood’s, Tasty Asia, and Fiesta Cancun also opened in 2015. The City also saw the redevelopment of the former Schwan’s food distributing site with the opening of Gracewood, a 39 unit assisted living facility. Staff is also reporting that no modifications to the EDA enabling resolution are needed or proposed. RECOMMENDATION Staff is recommending that the EDA accept the report. ATTACHMENTS None.