HomeMy WebLinkAbout04-08-2019 Council Work Session MinutesCITY COUNCIL SPECIAL WORK SESSION
April 8, 2019
APPROVED
1 CITY OF LINO LAKES
2 MINUTES
3
4 DATE April 8, 2019
5 TIME STARTED 6:00 p.m.
6 TIME ENDED 6:30 p.m.
7 MEMBERS PRESENT Council Member Rafferty, Maher (part)
8 Manthey, Stoesz and Mayor Reinert
9 MEMBERS ABSENT None
10
11 Staff members present: Community Development Director Michael Grochala; City
12 Planner Katie Larsen; Public Safety Director John Swenson; City Clerk Julie Bartell
13
14 Lyngblomsten Financial Assistance Request — Mikaela Huot (Springsted) and
15 Community Development Director Grochala reviewed a PowerPoint presentation that
16 provided education on the tax increment financing process in general and outlined the
17 Lyngblomsten proposal for financial assistance.
18
19 Ms. Huot explained in more detail the impact on school district tax revenue; the formula
20 is impacted but not necessarily the revenue.
21
22 Mayor Reinert asked if the developer can change elements within the development once
23 the tax increment is approved. Director Grochala said a development agreement will be
24 executed and that will bind the elements of the development.
25
26 Community Development Director Grochala explained the process of setting up a tax
27 increment financing plan that would establish those items that would be covered by the
28 increment. The city would issue a tax increment note.
29
30 Staff reviewed the numbers further: the requested increment of $5.3 million would
31 probably be paid off in about 13 years; the value will dictate the figures.
32
33 Mayor Reinert remarked that the council has expressed that this is a desirable project for
34 the City. He foresee more discussion on the matter. Mr. Grochala added that staff will
35 be receiving additional information from the county in the meantime.
36
37 The developer representative that was present noted that they have some purchase
38 agreements coming very soon; it would be very helpful to know what the council is
39 thinking in terms of funding.
40
41 Mayor Reinert suggested that $5.3 is high; Council Member Manthey said 15 years is too
42 long.
43
1
-- -- ------ ----
CITY COUNCIL SPECIAL WORK SESSION April 8, 2019
APPROVED
44 The developer representative reminded the council that Lyngblomsten is a non-profit
45 organization. The amount of tax increment that they are requesting is truly a need for the
46 development would help them with the risk.
47
48 The mayor remarked that the council seems interested in having the corner property
49 included in the Lyngblomsten development but not to the tune of $5 million in tax
50 increment. He feels that property will develop anyway.
51
52 Council Member Rafferty said he is not comfortable with the high number and needs to
53 gain more information and think further on a figure that he could support.
54
55 The meeting was adjourned at 6:30 p.m.
56
57 These minutes were considered, corrected and approved at the regular Council meeting
58 April 22, 2019.
59
60
61
62
63 Julia ne Bartell, Cij Clerk Jeff
64