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Home My WebLink About02-10-2020 EDA PacketLINO LAKES ECONOMIC DEVELOPMENT AUTHORITY MEETING Monday, February 10, 2020 Immediately Following Regular City Council Meeting City Council Chambers Call to Order and Roll Call 2. Consideration of Minutes of July 22, 2019 3. Action Items A) Consideration of 2020 Annual Appointments B) 2019 Annual Report 4. Adjourn EDA MINUTES July 22, 2019 DRAFT DATE : July 22, 2019 TIME STARTED : 6:55 p.m. TIME ENDED : 7:08 p.m. MEMBERS PRESENT : EDA Members Stoesz, Reinert, Rafferty, Maher, Manthey MEMBERS ABSENT : None OTHERS PRESENT: : Community Development Director Michael Grochala; City Administrator Jeff Karlson; City Clerk Julie Bartell The meeting was called to order at 6:55 p.m. by EDA President Maher. CONSIDERATION OF THE MINUTES OF FEBRUARY, 2019 February 11, 2019 Economic Development Authority (EDA) Member Stoesz moved to approve the minutes as presented. EDA Member Maher seconded the motion. Motion carried on a voice vote. ACTION ITEMS A. Lyngblomsten Senior Community: i. Consider Resolution No. 19-01, Approving Tax Increment Financing Plan for District 1-13 — Community Development Director Grochala reviewed the written report that includes information on elements of the proposed project, how the project has come forward to the council, developer's request for financial assistance for the project in the form of tax increment financing, and elements of the City's proposal to provide tax increment financing for the project. Mr. Grochala reviewed the total amount available for increment and the proposal for providing tax increment ($3.2 million). The City Council held a public hearing on this and no public comment was received. The Plan was approved at that time. He noted that the council is currently being asked to consider a contract for private developmenet which lays out the details for the assistance provided. He reviewed how increment will be provided. He noted that staff has continued to have discussions about the valuation figures and a change is noted in the report. Julie Eddington, Kennedy and Graven, public finance counsel, addressed the council. She offered a reminder that the independent and skilled living will include 20% affordable units. She noted provisions in the contract that could reduce the tax increment note: lower construction costs and/or costs are lower for the later developed skilled nursing element, and/or if the developer sells their land around the facility at a profit. In the minimum assessment agreement, the number will be increased after the meeting and prior to execution of the contract. EDA Member Reinert noted the council's request that construction costs be followed. Community Development Director Grochala said they have WSB reviewing the numbers and will also have BakerTilly providing auditing services; there will be review prior to submittals. ii. Consider Resolution No. 19-02, Approving Contract for Private Development EDA MINUTES July 22, 2019 DRAFT EDA Member Manthey moved to approve Resolution No. 19-01 as presented. EDA Member Stoesz seconded the motion. Motion carried on a voice vote. EDA Member Reinert moved to approve Resolution No. 19-02, to include the newly introduced valuation presented by staff. EDA Member Manthey seconded the motion. Motion carried on a voice vote. ADJOURNMENT There being no further business for consideration, the meeting was adjourned at 7:08 p.m. 2 LINO LAKES ECONOMIC DEVELOPMENT AUTHORITY AGENDA ITEM 3A STAFF ORIGINATOR: MEETING DATE: TOPIC: VOTE REQUIRED: BACKGROUND Michael Grochala February 10, 2020 Consideration of 2020 Annual Appointments Simple Majority 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. 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 2019 2020 Recommended 1. President Melissa Maher TBD 2. Vice President Dale Stoesz TBD 3. Treasurer Rob Rafferty TBD 4. Secretary Community Development Community Development Director 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 First Resource Bank Wells Fargo Securities LMC 4M Fund Wells Fargo Advisors Wells Fargo Securities US Bank Wells Fargo Advisors RBC Capital Markets US Bank Morgan Stanley RBC Capital Markets F&M Bank Moreton Capital Markets First Resource Bank F&M Bank Others as needed Others as needed Position 2019 2020 Recommended 9. Legal Services Kennedy & Graven Kennedy & Graven Rupp, Anderson, Squires & Rupp, Anderson, Squires & Walds ur er Walds urger 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. ATTACHMENTS 1. Past appointments 2013 - 2019 EDA Advisory Board (2013-2019) 2013 • President — Dave Roeser • Vice President — Jeff O'Donnell • Treasurer — Dale Stoesz • Secretary — Economic Development Coordinator • Assistant Treasurer — Finance Director • Executive Director — City Administrator • Official Newspaper — Quad Community Press • 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 • Legal Services — Kennedy & Graven, Barna, Guzy & Steffan, Ltd., Ratwik, Roszak & Maloney, Deck, Duea & Olson 2014 • President — Dave Roeser • Vice President — Dale Stoesz • Treasurer — William Kusterman • Secretary — Community Development Director • Assistant Treasurer — Finance Director • Executive Director — City Administrator • Official Newspaper — Quad Community Press • 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 • Legal Services — Kennedy & Graven, Barna, Guzy & Steffan, Ltd., Ratwik, Roszak & Maloney, Deck, Duea & Olson 2015 • President — Dave Roeser • Vice President — Dale Stoez • Treasurer —William Kusterman • Secretary — Community Development Director • Assistant Treasurer — Finance Director • Executive Director — City Administrator • Official Newspaper — Quad Community Press • 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 • Legal Services — Kennedy & Graven, Ratwik, Roszak & Maloney 2016 • President —William Kusterman • Vice President — Rob Rafferty • Treasurer — Michael Manthey • Secretary — Community Development Director • Assistant Treasurer — Finance Director • Executive Director — City Administrator • Official Newspaper— Quad Community Press • 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 • Legal Services — Kennedy & Graven, Ratwik, Roszak & Maloney 2017 • President — Rob Rafferty • Vice President — Michael Manthey • Treasurer — Melissa Maher • Secretary — Community Development Director • Assistant Treasurer — Finance Director • Executive Director — City Administrator • Official Newspaper — Quad Community Press • Legal Depositories — 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 • Legal Services — Kennedy & Graven, Ratwik, Roszak & Maloney 2018 • President — Michael Manthey • Vice President — Melissa Maher • Treasurer — Dale Stoesz • Secretary — Community Development Director • Assistant Treasurer — Finance Director • Executive Director — City Administrator • Official Newspaper — Quad Community Press • Legal Depositories — 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 • Legal Services — Kennedy & Graven, Ratwik, Roszak & Maloney 2019 • President — Melissa Maher • Vice President — Dale Stoesz • Treasurer — Rob Rafferty • Secretary — Community Development Director • Assistant Treasurer — Finance Director • Executive Director — City Administrator • Official Newspaper— Quad Community Press • Legal Depositories — 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 • Legal Services — Kennedy & Graven, Rupp, Anderson, Squires & Waldspurger LINO LAKES ECONOMIC DEVELOPMENT AUTHORITY AGENDA ITEM 3B STAFF ORIGINATOR: Michael Grochala MEETING DATE: February 10. 2020 TOPIC: 2019 Annual Report VOTE REQUIRED: 315 BACKGROUND Each year staff is required to provide a recap of the prior year activities undertaken by the board. In 2019, the EDA undertook the following activities: 1. Approved the establishment of Tax Increment Financing Plan for District 1-13 (Lyngblomsten Senior Housing). 2. Approved the Contract for Private Development with Lyngblomsten. Overall, the City continued to see substantial development activity in 2019. 114 new residential permits were issued in 2019. Total building permit valuation was approximately $42 million. 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 1. Enabling Resolution Member Bohianen introduced the following resolution and moved its adoption: CITY OF LINO LAKES RESOLUTION NO. 33 - 90 ENABLING RESOLUTION ESTABLISHING AN ECONOMIC DEVELOPMENT AUTHORITY UNDER MINNESOTA STATUTES SECTIONS 469.090 TO 469.108 WHEREAS, Minnesota Statutes Sections 469.090 through 469.108 (the "EDA Act"), authorizes cities to establish an Economic Development Authority ("EDA") with specified powers and obligations to promote and to provide incentives for economic development; and WHEREAS, the City Council of the City of Lino Lakes, Minnesota (the "Council") has determined that it is in the best interest of the City of Lino Lakes, Minnesota (the "City") to establish an EDA in order to preserve and create jobs, enhance its tax base, encourage development and redevelopment, promote the general welfare of the people of the City and assume primary responsibility for development activities within the City; and WHEREAS, the Council has provided public notice and conducted a public hearing on June 11, 1990, concerning the establishment of an EDA and has fulfilled all other legal requirements for the establishment of an EDA. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LINO LAKES AS FOLLOWS: 1. The Lino Lakes Economic Development Authority is hereby established pursuant to Section 469.091, Subd. 1 of the EDA Act. 2. The EDA shall have all of the powers, rights, duties and obligations conferred on economic development authorities by Sections 469.090 to 469.108, including the powers of a city granted by the City Development District Act, Minnesota Statutes Sections 469.124 through 469.134 and of 1 housing and redevelopment authorities granted by the Housing and Redevelopment Authorities Act, Minnesota Statutes Sections 469.001 through 469.047, or other law. 3. It is the intention of the Council, by adoption of this enabling resolution, to grant to the EDA the powers set forth in paragraph 2, while at the same time leaving unaffected by this action all powers of the City of Lino Lakes. Specifically, the City shall retain all powers necessary to carry out all development activities not hereby transferred to the EDA. 4. The EDA shall have the power of eminent domain as set forth in Section 469.101, Subdivision 4 of the EDA Act and in Chapter 9, Eminent Domain, of the City Charter. 5. The EDA shall be governed by a board of commissioners ("Commissioners") consisting of the City Council members. The terms of the Commissioners shall coincide with their terms of office as members of the Council in that such term shall expire with the expiration of the Council term being served at the time of their appointment. 6. In accordance with Section 469.100, Subdivision 2 of the EDA Act, the EDA shall submit its budget annually to the Council for approval by the Council. Within thirty (30) days of appointment of the first Board of Commissioners of the EDA pursuant to paragraph 2 hereof, the Commissioners shall submit for Council approval a temporary budget covering the period from the date of such submittal until January 1, 1991. The EDA shall submit for approval of the Council a proposed budget for the following full calendar year and shall do so in accordance with Council directions. In addition, upon submittal of its proposed annual budget to the Council, the EDA shall provide the Council an account of its receipts and expenditures as required by Section 469.100, Subdivision 4 of the EDA Act. 7. The city administrator for the City shall act as the Executive Director of the EDA and, in such capacity, shall act at the direction of the Commissioners. 8. The City Council or its designees (the "Administration") may provide such City staff to the EDA as the EDA may require; provided that the Administration may require reasonable reimbursement by the EDA for costs associated with the provision of such staff; and provided further that nothing in this paragraph shall preclude the EDA from hiring such personnel as the EDA may from time -to -time determine. 9. Each year, within sixty (60) days of the anniversary date of the first adoption of this enabling resolution, the EDA shall submit to the Council its report regarding recommended modifications, if any, of this enabling resolution as provided in Section 469.093, Subdivision 3 of the EDA Act. 10. All financial books, records, accounts and reports of the EDA shall be prepared, presented and retained by the finance department of the City, 2 which department shall have the responsibility for administering the finances of the EDA as it does the finances of the City; provided that the Administration may require reasonable reimbursement by the EDA for costs associated with the provision of such services by the finance department. 11. There is attached hereto as Exhibit "A" a list of municipal development districts created by the Council pursuant to Minnesota Statutes Sections 460.124 through 469.134 and tax increment districts created by the Council pursuant to Minnesota Statutes Sections 469.174 through 469.179, or its predecessors, the control, authority and operation of which are hereby transferred to the EDA. The EDA shall accept the transfer of these projects and districts and shall pledge to perform the terms, conditions and covenants of all agreements outstanding with respect thereto. 12. With respect to the projects and districts transferred to the EDA from the City, there is no litigation involving the City, no agreements to which the City is a party nor real or personal property owned by the City. 13. The City shall appropriate and transfer to the EDA such funds as it deems necessary from time to time to ensure that the EDA has adequate funds to carry out its activities. 14. City officials and staff are hereby authorized and directed to execute such deeds, assignments, requisitions, directives and agreements as may be necessary and appropriate to carry out the terms, conditions and intensions of this enabling resolution. 15. The EDA may request the City to levy a tax up to the maximum tax for the benefit of the EDA as specifically set forth in Section 469.107 of the EDA Act. 16. Nothing shall prevent the City from modifying this enabling resolution to impose limits on the powers of the EDA or provide for other matters as authorized in the EDA Act or other law. 17. This resolution shall become effective when the EDA holds its first meeting and accepts the transfers herein described. 18. Notwithstanding any provision herein to the contrary, the authority granted to the EDA pursuant to paragraph 2 above shall not be exercised until the EDA has established an advisory board which shall be comprised of all of the members of the City's Economic Development Commission. 3 Adopted by the City Council this 11 th day of June , 1990. l Harold L. Bisel, Mayor ATTEST: - Gar r' yn G An erson, Clerk -Treasurer The motion for the adoption of the foregoing resolution was duly seconded by member Neal and upon vote being taken thereon, the following voted in favor thereof: Neal, Bisel, Bohianen and the following voted against same: None Whereupon said resolution was declared duly passed and adopted. LN140-12 4 EXHIBIT A List of City Development District Projects and Tax Increment Financing Districts transferred from the City to the Economic Development Authority of Lino Lakes City Development Districts: Development District No. 1 Tax Increment Financing Districts: Tax Increment Financing District No. 1-1 Tax Increment Financing District No. 1-2 Tax Increment Financing District No. 1-3 Tax Increment Financing District No. 1-4 LN140-12