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HomeMy WebLinkAbout06/01/2023 EDAC Combined PacketCITY OF LINO LAKES ECONOMIC DEVELOPMENT ADVISORY COMMITTEE MEETING Thursday, June 1, 2023 8:00 A.M. Community Room AGENDA 1. CALL TO ORDER AND ROLL CALL 2. APPROVAL OF MINUTES: April 6, 2023 3. DISCUSSION ITEMS A. Anoka County HRA/EDA B. Project Updates 4. ADJOURN DRAFT MINUTES CITY OF LINO LAKES ECONOMIC DEVELOPMENT ADVISORY COMMITTEE MINUTES DATE: April 6, 2023 TIME STARTED: 8:01 a.m. TIME ENDED: 9:03 a.m. MEMBERS PRESENT: Andrew Cravero, Blakely LaCroix, Chad Wagner, Patrick Kohler, Steve Marchek, Nathan Vojtech, Jim Schueller, Keith Hembre MEMBERS ABSENT: Julie Jeffrey-Schwartz, Don Johnson STAFF PRESENT: Michael Grochala, Julie Whitney 1. CALL TO ORDER Mr. Schueller called the Economic Development Advisory Committee meeting to order at 8:01 a.m. 2. APPROVAL OF MINUTES Mr. Schueller requested that the minutes be changed to reflect he called the meeting to order not Mr. Grochala. Mr. Cravero made a motion to approve the March 2, 2023 meeting minutes with the correction. Motion was supported by Mr. Vojtech. Motion carried 8-0. 3. DISCUSSION ITEMS A. Anoka County HRA/EDA Participation Mr. Grochala opened the meeting by discussing the need to identify potential redevelopment areas and being able to acquire them when they become available. He introduced Ms. Karen Skepper, Director of Community & Government Relations in Anoka County who would be discussing the county’s HRA & EDA programs. Anoka County Commissioner Jeff Reinert was also in attendance. Ms. Skepper reviewed the history of the HRA and how it evolved to what it is today. She said the level of County involvement is different for each City and based upon their need. Ms. Skepper said funding for this program could be in the form of a levy to be collected through the County to fund HRA and EDA activity. Key points of discussion were: • The expected property levy amount is 0.815 percent of the taxable market value. Economic Development Advisory Committee April 6, 2023 Page 2 DRAFT MINUTES • A 20% administrative fee is charged to offset the cost of the Economic Development staff. • Easy access to monies when a property becomes available for purchase. The only requirement to access the money is a resolution from City Council. Ms. Skepper said she would also need to know what the project is to ensure it is eligible according to state law. • Funding can be cross-allocated between cities via a loan agreement. • The Board questioned if the funds could be used for open space initiatives. Ms. Skepper will look into it and circle back with Mr. Grochala. • Annual money received from the levy would generate an estimated $380,000. • The County is currently undertaking a comprehensive housing analysis that will be completed for each City in Anoka County. This is funded by the administrative fee that is assessed for this program. The information collected can be used by developers who are looking at areas to establish their business and is an added benefit to the City. • Money from the HRA and EDA program can be used for housing or economic development. • The Board questioned if we could remove ourselves from the program once development balance has been achieved. Mr. Grochala said he would need to look further into it. • The Board voiced concern that the money needs to be used efficiently and should not sit in an account for an extended period. • The Board wanted to know the percentage we would receive if we loaned money to other cities. Ms. Skepper said she would need to investigate it. The Board agreed to move forward with further discussion and research. When asked about implementation, Mr. Grochala advised it would be the better part of this year to get the program set up and the levy collectible by 2025. Ms. Skepper stated if we bought into the program, and a project became available, we could get some assistance from the County by next year. Ms. Skepper stated that she would work with the Finance Director to put some numbers together on what the levy would look like for our City. 4. ADJOURNMENT Mr. Cravero made a motion to adjourn the meeting at 9:03 a.m. Motion was supported by Mr. Vojtech. Motion was carried 8-0. Respectfully submitted, Julie Whitney, Community Development Administrative Assistant 1 ECONOMIC DEVELOPMENT ADVISORY COMMITTEE AGENDA ITEM 3A STAFF ORIGINATOR: Michael Grochala, Community Development Director EDAC MEETING DATE: June 1, 2023 TOPIC: ED Strategic Plan Implementation – Anoka County HRA/EDA Participation BACKGROUND The EDAC has been evaluating funding options to support economic development initiatives including strategic acquisitions of property that further our goals. In March, Karen Skepper, Anoka County Director of Community and Government Relations, and Commissioner Jeff Reinert presented information on the County’s HRA/EDA. The The County HRA/EDA has the authority to levy for economic development purposes. These property taxes would be levied by the County and available to the City for economic development purposes. The County has confirmed, that based on the current tax capacity, a levy rate of .815% would generate an estimated levy of $268,197 annually. The County charges an administrative fee of 20% ($53,000) leaving approximately $215,000 available for local use. Although it is an option, the staff’s opinion is that the City would be better served by alternative funding methods. A preferred option would be to establish a policy to use internal funds for strategic acquisitions as opportunities present themselves. This would be in the form of an interfund loan, paid back at the time of development/construction. The repayment source could be either land sale proceeds, tax increment financing proceeds, utility funds, if a sewer or water project, or state aid street funds if a road improvement. Under this alternative, staff envisions a policy document that identifies potential acquisitions, updated annually, for consideration. If sites become available, we would have a mechanism in place to be more proactive in the acquisition process. EDAC CONSIDERATION Discuss interest in County HRA/EDA and alternative funding policy development. ATTACHMENTS None. 1 ECONOMIC DEVELOPMENT ADVISORY COMMITTEE AGENDA ITEM 3B STAFF ORIGINATOR: Michael Grochala, Community Development Director EDAC MEETING DATE: June 1, 2023 TOPIC: Project Updates BACKGROUND Water Treatment Plant The City Council approved the purchase of 6.28 acres at the corner of Birch Street and 12th Avenue for the construction of the Water Treatment Plant. The State Legislative session wrapped up on Monday, May 22nd with the passage of a $2.6 Billion infrastructure package. $13.5 Million was included in the bill for the Lino Lakes Water Treatment Plant. CRJ and I-35E Interchange The infrastructure bill also included $1,500,000 for final design of the interchange. An interchange project open house is tentatively scheduled for mid July. Renstrom Dental Lab and Theilen and Green Architects have opened up their new offices in the former Fairview Medical building on Village Dr. Lyngblomsten is nearing completion of their campus. Occupancy is expected to take place in July. EDAC CONSIDERATION None. Discussion only. ATTACHMENTS None.