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Home My WebLink About06/02/2022 EDAC PacketCITY OF LINO LAKES ECONOMIC DEVELOPMENT ADVISORY COMMITTEE MEETING Thursday, June 2, 2022 8:00 A.M. Community Room AGENDA 1. CALL TO ORDER AND ROLL CALL 2. APPROVAL OF MINUTES: May 5, 2022 3. DISCUSSION ITEMS A. Sale of Woods Edge Property B. Project Updates 4. ADJOURN CITY OF LINO LAKES ECONOMIC DEVELOPMENT ADVISORY COMMITTEE MINUTES DATE: May 5, 2022 TIME STARTED: 8:01 A.M. TIME ENDED: 9:02 A.M. MEMBERS PRESENT: Jim Schueller, Patrick Kohler, Chad Wagner Keith Hembre, Steve Marchek, Andrew Cravero MEMBERS ABSENT: Don Johnson, Julie Jeffrey -Schwartz, Blakely LaCroix, Nathan Vojtech STAFF PRESENT: Michael Grochala, Janele Waterman I. CALL TO ORDER Chair Schueller called the Economic Development Advisory Committee meeting to order at 8:01 A.M. on May 5, 2022. II. APPROVAL OF MINUTES Mr. Cravero made a MOTION to approve the April 7, 2022 meeting minutes. Motion was supported by Mr. Kohler, passing unanimously. III. DISCUSSION ITEMS A. Ryan Companies proposed Industrial Park Development Mr. Grochala, Community Development Director, presented the staff report. The proposed industrial project would fully develop the 35 acre site north of Clearwater Creek. He informed the committee the City is discussing tax increment details with Ryan Companies. He asked the committee to provide feedback regarding the proposed concept. Overall, the committee was receptive to the project. Further discussion ensued regarding the unknown future of the industrial market. Mr. Grochala noted the proposed development may spur on further industrial development within the City and it could provide the City with an opportunity to have some much needed public improvement projects completed as well. DRAFT MINUTES Economic Development Advisory Committee May 5, 2022 Page 2 B. Woods Edge Property Sale Update Mr. Grochala, Community Development Director, presented the staff report. He informed the committee the City is continuing discussions with Silvercreek Equity regarding the acquisition and development of the 6.27 acres within the Woods Edge development. The proposed project includes a 132 unit market rate 55+ apartment building, a 10,000 sq. ft. multi -tenant building, and two restaurants. The committee recommended including a buy back clause within the purchase agreement should the purchaser not develop according to the agreed upon specs. The committee discussed the possible public safety costs in relation to the age restricted apartment complex. Mr. Grochala said he has been working with the Public Safety department on this, but he explained estimating such expenses has been complicated. The committee also discussed the need for more public storage units and public transportation for the residents of the apartment building. Mr. Grochala commented unfortunately, public transportation in Lino Lakes is not a high priority of the MET Council since Lino Lakes does not have a high demand for the service. However, he noted Anoka County offers a dial -a -ride program which is available for residents throughout the county. C. Project Updates Mr. Grochala updated the committee on current City projects. IV. ADJOURNMENT Mr. Hembre made a MOTION to adjourn the meeting at 9:02 A.M. Motion was supported by Mr. Cravero, passing unanimously. Respectfully submitted, Janele Waterman, Community Development Administrative Assistant DRAFT MINUTES ECONOMIC DEVELOPMENT ADVISORY COMMITTEE AGENDA ITEM 3A STAFF ORIGINATOR: Michael Grochala, Community Development Director EDAC MEETING DATE: June 2, 2022 TOPIC: Purchase Offer — Lot's 1-3 and Outlots B & C, The Village No. 4 — Silvercreek Equities BACKGROUND The Legacy at Woods Edge Planned Unit Development was approved in 2004. As discussed in the City's Comprehensive Plan, the site is intended to integrate a mixture of commercial, medium and high density residential, and public land uses in an attractive and cohesive design. City Hall, Rookery Activity Center, and a community green emphasize the community focus. The EDA obtained the 20 acre undeveloped balance of the property, following tax forfeiture, in 2013. 11 acres were sold to DR Horton in 2015 for completion of the townhome area. The remaining 9 acres includes the 6.27 acres under consideration, 2 acres abutting the Rookery Activity Center, and approximately a .7 acre building site adjacent to 35W. The Economic Development Authority (EDA) has been working with Silvercreek Equity regarding the acquisition and development of 6.27 acres. Silvercreek is proposing to construct a 132 to 150 unit market rate, age targeted apartment building, a 10,000 SF multi -tenant building and two restaurants buildings. Following discussion between the two parties Silvercreek has submitted an offer of $2,376,154.00 ($8.70 SF) for purchase of the property. Following review at their May 25, 2022 meeting, the EDA directed staff to schedule a public hearing to consider the sale of the property. Analysis Proposed Use The PUD land use plan allows for both commercial and residential uses on the property proposed for purchase. The proposed uses are generally consistent with the overall site master plan. Multi -family residential is allowed on the site proposed, but not on the ground floor. This would require an amendment to the Planned Unit Development district. Residential density is consistent with the overall development plan and what was originally planned for the site. The remaining retail and restaurant uses are permitted within the district. A more formal review will be completed during the project's entitlement process. The final development plan will require City approval. Purchase Price The proposed purchase price of $2,376,154.00 ($8.70 SF) is $3.33 SF higher than Anoka County's 2022 assessed value of $1,468,000 ($5.37 SF). The sale price is higher than most comparable sales in the area and local listings. Term c Minimum Improvements: Project must include, market rate age -targeted senior building of approximately 132 - 150 units, two restaurants, and multi -tenant retail building. Timeline: Purchaser must begin construction within one year of purchase. One restaurant or multi -tenant building must be started before or concurrent with the multi -family building. Project must be completed within 2 years. Closing Date: Staff is working on this with the development team. Tentatively, 9 months from date the agreement is executed or 60 days after final project approval, whichever is less. Reverter: EDA retains the right to repurchase property at the original sale price if the minimum improvements are not started or completed within the allowed timeline. Project Identify Signs: Purchaser is agreeable to construction of Project Identity signs at up to two locations as determined by the EDA (consistent with the PUD Regulating Plan. EDA would reserve space for City facilities on sign(s). Details are still being worked out.) Earnest Money: Staff is proposing earnest payment in the amount of $50,000. This is approximately 2% of purchase price. Process The sale of land by the EDA requires a public hearing. The public hearing is scheduled for June 13, 2022. A public notice for the hearing is set for publication in the Quad Press for Tuesday, May 31, 2022. Following the hearing, the EDA would take action to approve the sale and authorize execution of the purchase agreement. Once the purchase agreement is executed, the purchaser's due diligence period begins and the timeline for closing would start. Financial Impacts The City received the land at no cost through special legislation to allow the City opportunity to recoup outstanding special assessment debt through land sale proceeds. The public improvement debt service was paid off in 2021 and tax increment proceeds have been used to reimburse the City for interfund loans for prior debt service installments. To date, approximately $2,470,000 remains for repayment on the interfund loans. Staff is expecting this to be paid off by existing tax increment proceeds in 2027. An additional $545,000 remains in debt service for the Lake Drive interchange. This payment is currently covered by dedicated state aid funds and tax increment and will be paid off in 2024. Any land sale proceeds would reduce the time line for repayment. 2 Park dedication and utility trunk fees, based on the proposed development, are estimated at approximately $1,000,000. Additionally, sale and development of the site, would generate new property taxes. Based on a conservative estimated market value of $25 million ($22M residential and $3.1M commercial), an estimated $120,000 in city property taxes would be generated. EDAC CONSIDERATION Staff is requesting EDAC comments on the proposed sale. ATTACHMENTS 1. Concept Plan 2. Land Use Plan 3 LINO LAKES MIXED USE 5 I a= r 5 ry1 / 1 1 40 I'a Multi -tenant Retail 0'000 SF ' Footprint �1 Pi Ranch 8,500 SF Footpint �11 1: ' Outdoor z Patio o 'PARKIN, v ::K gI � zq=TREE, PA"". SPACES 3Q-g�ILUILy�zSer 1� EAR yARO 1120 ®� 'Opp I /0l 1. � � 1 i 1z; 1 U 5� �b Acapulco 7,500 SF Footprint Outdoor /® Patio q) 0 6 T Schematic Development Summary Total SF: 215,000 SF Total Finished SF: 172,000 SF Garage SF: 43,000 SF Level 1 SF: 43,000 SF Level 2 SF: 43,000 SF Level 3 SF: 43,000 SF Level 4 SF: 43,000 SF Unit Estimate: 149 Total SF/Unit: 1,150SF/Unit Total Parking Estimate: 426 Garage: 135 Surface: 243 Street Parking: 48 Required Stall Size: 9' x 19' Required Shared parking: 420 -Retail: 40 -Restaurants: 128 -Residentail: 252 Site Information: Site Area (Approx): 6.27 Acres / 273,121 SF FAR: Impervios Area: 4.32 Acres/ I 88,345SF (68%) Lot Requirements: Building setback from streets: Residential Street : 30' Collector or Arterial Street: 40' Parking lot from Street: 15' Building Setback: 30' Rear Yard 20' Side Yard Height: Max of 45' + no more than 4' parapet allowed Impervious surface coverage area: Shall not exceed 65% Discussion Points: *BPMS were assumed to treat 4.65 acres of impervious surface area, if we are proposing more than 4.65 we would need additional stormwater BPMS *Zoning ordinace states minimum livable floor area for each unit shall be 700 sf, + additional 100 sf for each bedroom Apartment Exterior Ammenities -Outdoor Grilling/Dining -Gas Firepit -Shuffleboard -Dog Run Existing trees/plants halftone Decorative Landscaping LINO LAKES MIXED USE Fit Plan Scale 1" = 100' 04/0808/22�SHEET 001001 Land Use Plan for Legacy at Wood's Edge Lino Lakes, Minnesota u IHI IIIIIIII II�IIIIIIIIIIIIII�n I �lll�l i�llll� 11� North 3S� N Legend C Residential Commercial/Residential IW Commercial Mixed Use Open space Civic i CIT ~` Of IN KE