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HomeMy WebLinkAbout02-13-2017 EDA PacketLINO LAKES ECONOMIC DEVELOPMENT AUTHORITY MEETING Monday, February 13, 2017 6:15 P.M. City Council Chambers 1. Call to Order and Roll Call 2. Consideration of Minutes of December 12, 2016 3. Action Items A. Consideration of 2017 Annual Appointments B. EDA 2016 Annual Report 4. Adjourn EDA MINUTES December 12, 2016 DRAFT 1 DATE : December 12, 2016 TIME STARTED : 8:00 p.m. TIME ENDED : 8:05 p.m. MEMBERS PRESENT : EDA Members Kusterman, Reinert, Rafferty, Maher, Manthey MEMBERS ABSENT : None OTHERS PRESENT: : Community Development Director Michael Grochala; City Clerk Julie Bartell The meeting was called to order at 8:00 p.m. by EDA President Kusterman. CONSIDERATION OF THE MINUTES OF JULY 25, 2016 Economic Development Authority (EDA) Member Maher moved to approve the July 25, 2016 minutes as presented. EDA Member Reinert seconded the motion. Motion carried on a voice vote. RESOLUTION NO. 16-06, APPROVING COLLATERAL ASSIGNMENT AND SUBORDINATION OF DEVELOPMENT AGREEMENT AND TIF NOTE, UNITED PROPERTIES – TIF DISTRICT 1-12 Community Development Director Grochala reviewed the written staff report. The requested action relates to a Board approved contract in July of 2016 that included authorization for a TIF note. Construction of a building is underway along with area road improvements. As part of the loan arrangement for the development, the developer has requested this action. This was anticipated by staff. The Board is being requested to take official action establishing certain roles in the financing scheme. Director Grochala noted that Julie Eddington, Kennedy & Graven, counsel to the EDA, has reviewed the agreement and made modifications as necessary. EDA Member Rafferty moved to approve Resolution No. 16-06 as presented. 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 8:05 p.m. LINO LAKES ECONOMIC DEVELOPMENT AUTHORITY AGENDA ITEM 3A STAFF ORIGINATOR: Michael Grochala MEETING DATE: February 13, 2016 TOPIC: Introduction of New Members and Annual Appointments VOTE REQUIRED: Simple Majority BACKGROUND 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 2016 2017 Recommended 1. President William Kusterman TBD 2. Vice President Rob Rafferty TBD 3. Treasurer Michael Manthey TBD 4. Secretary Community Development Director Community Development 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 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 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 9. Legal Services Kennedy & Graven Ratwick, Roszak & Maloney Kennedy & Graven Ratwick, Roszak & Maloney 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. LINO LAKES ECONOMIC DEVELOPMENT AUTHORITY AGENDA ITEM 3B STAFF ORIGINATOR: Michael Grochala MEETING DATE: February 13, 2017 TOPIC: 2016 Annual Report VOTE REQUIRED: 3/5 BACKGROUND Each year staff is required to provide a recap of the prior year activities undertaken by the board. In 2016, the EDA undertook the following activities: 1. Took action to designate the 49 Club as structurally substandard and entered into a preliminary development agreement with the owner regarding demolition of the building. The 49 Club was torn down in September. 2. The EDA took action to approve an updated Business Subsidy policy. 3. Approved a Modified Development Plan for Development District 1 and approved a Tax Increment Financing Plan establishing District 1-12 for the United Properties Project. 4. Approved the Contract for Private Development with United Properties for the development of a 402,000 square foot warehouse/distribution facility along the 35E corridor. The project included the extension of 21st Avenue South. 5. Closed on land sale to DR Horton for approximately 11 acres of property in the Legacy and Woods Edge project. DR Horton has begun construction on the 1st phase of the 112 unit residential development. Overall, the City saw a substantial increase in development activity in 2016. 100 new residential permits were issued in 2016, our highest total since 2007 (91). Building permit valuation topped $50 million for the first time since 2005. Fiesta Cancun opened a second restaurant in town and Don Julio’s opened in the Market Place. 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 None.