HomeMy WebLinkAbout11-23-2009 EDA Minutes
EDA MINUTES NOVEMBER 23, 2009
APPROVED
DATE : November 23, 2009
TIME STARTED : 6:15 p.m.
TIME ENDED : 6:25 p.m.
MEMBERS PRESENT : Commissioners Gallup, O’Donnell, Reinert,
Bergeson
MEMBERS ABSENT :
OTHERS PRESENT: : Mary Divine, Mike Grochala
The meeting was called to order at 6:15 p.m. by President Gallup
CONSIDERATION OF THE MINUTES OF JANUARY 12, 2009
Motion to approve the January 12, 2009 minutes. Motion seconded. Motion carried
unanimously.
CONSIDERATION OF RESOLUTION 09-01 - ADDENDUM TO CONTRACT FOR
PRIVATE DEVELOPMENT BETWEEN THE LINO LAKES EDA AND LINO LAKES
LODGING, LLC
Mary Divine, Economic Development Coordinator, reported that in 2004 the EDA and the City
entered into a Development Contract with Hartford Development, Inc. and provided assistance
within Tax Increment Financing District No. 1-11. As pursuant to the contract, redevelopment
occurred and a successor to the contract (Country Inn & Suites) redeveloped a portion of the
commercial component of the minimum improvements as defined in the original contract.
A developer is acquiring the hotel to convert it to an assisted living and memory care facility.
The EDA has an interest in ensuring that the developer or its successors continue to pay real
estate taxes on an assessed value that provides as much tax increment as before the conversion.
This agreement obligates payment of taxes on a minimum assessed value of $3,750,000. The
county assessor may, in actuality, place a higher value on the facility once final plans have been
submitted, and the final assessed value will be executed in an assessment agreement that will be
valid until the maturity date of the original contract.
In order to provide the developer with a future option to sell the facility to a non-profit, the
agreement requires a payment in lieu of taxes (the “PILOT Agreement”), for a period of 30 years
if a non-profit owns the facility. Prior to the contract maturity date a non-profit would be
required to make payment as if the property were subject to taxes. After the maturity date the
annual payment would be only on the City’s share of taxes.
EDA Member Reinert moved to approve Resolution No. Resolution 09-01 – Addendum to the
Contract for Private Development between the Lino Lakes Economic Development Authority
and Lino Lakes Lodging, LLC as recommended by staff. EDA Member Bergeson seconded the
motion. Motion carried unanimously.
ADJOURNMENT
There being no further business, it was moved to adjourn. Motion was seconded. Motion
carried unanimously.