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Home My WebLink About08/04/2022 EDAC PACKETCITY OF LINO LAKES ECONOMIC DEVELOPMENT ADVISORY COMMITTEE MEETING Thursday, August 4, 2022 8:00 A.M. Community Room AGENDA 1. CALL TO ORDER AND ROLL CALL 2. APPROVAL OF MINUTES: June 2, 2022 3. DISCUSSION ITEMS A. Anderson Companies, Lake and Main B. Project Updates 4. ADJOURN DRAFT MINUTES CITY OF LINO LAKES ECONOMIC DEVELOPMENT ADVISORY COMMITTEE MINUTES I. CALL TO ORDER Chair Schueller called the Economic Development Advisory Committee meeting to order at 8:00 A.M. on June 2, 2022. II. APPROVAL OF MINUTES Mr. Cravero made a MOTION to approve the May 5, 2022 meeting minutes. Motion was supported by Mr. Vojtech, passing unanimously. III. DISCUSSION ITEMS A. Sale of Woods Edge Property Mr. Grochala, Community Development Director, presented the staff report. He informed the committee the Economic Development Authority (EDA) met with Silvercreek Equity regarding the acquisition and development of the Woods Edge property. Silvercreek Equity is looking to construct a 132 to 150 unit market rate, 55+ apartment building, a 10,000 sq. ft. multi-tenant building, and two restaurants on the 6.27 acre parcel. Following their discussion, Silvercreek Equity submitted an offer of $2,376.154.00 ($8.70 sq. ft.) for the purchase of the property. Upon review of the offer, the EDA asked City staff to schedule a public hearing to consider the sale of the property. The public hearing is scheduled to be held on June 13, 2022. Mr. Vojtech asked how many age targeted apartment buildings there are in Lino Lakes. DATE: June 2, 2022 TIME STARTED: 8:00 A.M. TIME ENDED: 8:55 A.M. MEMBERS PRESENT: Jim Schueller, Patrick Kohler, Chad Wagner Keith Hembre, Steve Marchek, Andrew Cravero Don Johnson, Blakely LaCroix, Nathan Vojtech MEMBERS ABSENT: Julie Jeffrey-Schwartz STAFF PRESENT: Michael Grochala, Janele Waterman Economic Development Advisory Committee June 2, 2022 Page 2 DRAFT MINUTES Mr. Grochala said there are three age targeted developments in Lino Lakes – Lyngblomsten, NorthPointe Estates, and Willow Ponds. He noted Anderson Companies is also looking to construct a similar product on the corner of Lake Drive and Main Street. Mr. Wagner asked if the City will be able to take a portion of the proceeds from the sale and create a fund which would be used to purchase properties within the City for future projects. Mr. Grochala explained the City is waiting to hear back from the City attorney as to whether or not those funds need to be dedicated strictly back to reimbursing the land. The committee indicated their support for approval of the purchase agreement. B. Project Updates Mr. Grochala updated the committee on current City projects. IV. ADJOURNMENT Mr. Cravero made a MOTION to adjourn the meeting at 8:55 A.M. Motion was supported by Mr. Vojtech, passing unanimously. Respectfully submitted, Janele Waterman, Community Development Administrative Assistant ECONOMIC DEVELOPMENT ADVISORY COMMITTEE AGENDA ITEM 3A STAFF ORIGINATOR: Michael Grochala EDAC MEETING DATE: August 4, 2022 TOPIC: Lake and Main Redevelopment BACKGROUND The northwest quadrant of Lake Drive and Main Street currently includes a mix of residential, commercial and quasi industrial uses. The property is currently zoned GB, General Business District and LI, Light Industrial District. The City’s 2040 Comprehensive Plan guides the properties as a Signature Gateway District. The Signature Gateway District is reserved for high visibility, high traffic corridors serving as an entrance to the Community. The district allows for commercial uses and high density residential uses at a density of 8.0 to 10.0 units per acre. Up to 15 units per acre may be allowed if the project meets the City's housing goals. The district allows for development of multiple complementary uses on a single site including a combination of higher density residential, commercial services, and employment opportunities. The 5 acre Carpenter property and abutting 4.5 acre Bigco property have been on the market since early 2021. Over the past year and half staff has been working with the property owners and potential developers regarding development options on the 9.5 acres. The site includes an auto salvage yard that has been in existence for over 40 years, vehicle sales lot, nonconforming exterior storage uses and a contractor shop. It is likely some environmental cleanup will be necessary to facilitate redevelopment of the site. Anderson Companies began working on a redevelopment project in October of 2021. In November of 2021 a joint meeting was held with the development team, City Council and advisory boards to discuss possible development options. At that time Anderson Companies was proposing a project with upwards of 300 residential units on the site. Comments made at the meeting generally centered on the following themes: • Reduce the density and scale of buildings adjacent to existing residential. Density should be consistent with Comprehensive Plan. • There should be a commercial element • Plan should be incorporate abutting properties • Transportation issues will need to be addressed In response to comments received at the meeting Anderson has been working to adjust the development footprint and density. They have reached out to abutting property owners and discussed possible land assembly into the project. The updated project proposes a senior community with townhomes abutting the existing single family lots to the north and west, a main senior apartment building fronting Lake Drive, along with a future assisted living building to the west. The concept provides for a future retail component along the south side of the property although access to the site would need to be coordinated with any future relocation or redevelopment of the Tavern on Main site. As they continue to evaluate the project Anderson Companies has requested an opportunity to discuss the potential for financial assistance on the project. This site would likely meet all statutory requirements for a Tax Increment Financing (TIF) Redevelopment District. Redevelopment projects are always financially challenging because the existing uses and buildings, while valuable to the current owner, have a lower residual value from a redevelopment perspective. Accordingly, TIF is often used as a mean to close the financial “gap”. In any assistance project the City ultimately needs to determine whether the project would move forward without assistance. Aside from the financial evaluation is a broader discussion of how the use of financial incentives are advancing implementation of the Comprehensive Plan. Along this line our priority goals for City financial participation include, but are not limited to: 1. Increase in taxable market value. 2. Remediation of any existing site hazardous material contamination 3. Assembly of parcels into a cohesive design 4. As a “gateway” location the project should include enhanced pedestrian and streetscape elements along the County Roads. Representatives from Anderson Companies will be present at the meeting to discuss the project and potential for financial assistance. EDAC CONSIDERATION Staff is requesting EDAC consideration of whether the City should use Tax Increment Financing as a tool to facilitate redevelopment of the site? ATTACHMENTS 1. Site Location Map 2. 2040 Land Use Map 3. Concept Plan 2040 Land Use Map Legend Parcels Land Use - 2040 Permanent Rural Urban Reserve Low Density Residential Low Density Mixed Residential Medium Density Residential High Density Residential Planned Residential / Commercial Office Residential Signature Gateway District Commercial Town Center Business Campus Industrial Civic and Institutional Parks and Open Space Private Airfield July 2, 2021 Map Powered By DataLink 1 in = 376 ft ±