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HomeMy WebLinkAbout08/10/2011 P&Z Packet• CITY OF LINO LAKES PLANNING & ZONING BOARD MEETING • • Wednesday, August 10, 2011 6:30 p.m. Council Chambers (Scheduled to be televised on Ch. 16) Please be courteous and turn off all electronic devices during the meeting. AGENDA I. CALL TO ORDER AND ROLL CALL II. APPROVAL OF AGENDA III. APPROVAL OF MINUTES: July 13, 2011 IV. OPEN MIKE V. ACTION ITEMS A. CONSIDERATION OF a recommendation that the modified development program for Develop. Dist. 1 and the modified TIF plan for TIF Dist. No. 1 -10 is consistent with the plans for development of the city - Mary Alice Divine B. CONTINUED PUBLIC HEARING to consider Amending Section 6 of the Zoning Ordinance which includes requirements for residential zoning districts — Jeff Smyser C. CONTINUED PUBLIC HEARING to consider Amending Section 7 of the Zoning Ordinance which includes requirements for business districts — Jeff Smyser D. CONTINUED PUBLIC HEARING to consider Amending the Conditional Use Permit for a motor fuel station to allow for the installation of new gas pumps and canopy, located at 7997 Lake Drive — Jeff Smyser VI. DISCUSSION ITEMS A. None VII. ADJOURN Meeting guidelines on reverse side. City of Lino Lakes Planning & Zoning Board MEETING GUIDELINES Open Mike — The purpose of a Board Meeting is to accomplish the business of the city. When presenting at a meeting please remember to be respectful, and follow these guidelines: • Please address the meeting chair. • State your name and address for the record. • Please observe a 4- minute limit. • The topic must relate to city business. • Open Mike is for items not on the agenda. • A spokesperson must represent a group of five or more — groups will have 8 minutes. • The Presiding Officer may limit duplicative presentations. • Remember, the meeting is to discuss city business only. Public Hearing - Held as a separate item of business on the agenda. The public hearing segment is your opportunity to tell the Board how you feel about issues scheduled to be heard. Typically, a hearing follows these steps: • The Presiding Officer (Chair or Vice - Chair) will announce the proposal to be reviewed and ask for the staff report. The presiding Officer shall maintain strict order and etiquette at all meetings. • Staff will present their report on the proposal. • Board members will then ask City Staff questions about the proposal. • The Presiding Officer will then open up the public hearing for anyone present who wishes to comment on the proposal. This is the time for the public to make comments or ask questions about the proposal. Comments should be limited to four (4) minutes unless further time is granted by the Presiding Officer. All comments should be directed to the Board as a body and not to any individual Board Member or City Staff Member unless permission is granted by the Presiding Officer. No person shall be permitted to enter into any discussion, either directly or through a member of the Board without the permission of the Presiding Officer. • After everyone in the audience wishing to speak has given his/her comments, the Presiding Officer shall close the public hearing. • The Board will then discuss the proposal. No further public comments are allowed. • The Board will then make a recommendation(s) and/or a decision. When you are called upon for your comments, please step to the microphone at the podium and state your name and address for the record. Occasionally, the Board may continue a hearing to another meeting before taking action. Meeting Etiquette The Planning & Zoning Board must preserve order and decorum while the meeting is in session. A resident shall not, by conversation or otherwise, delay or interrupt the proceedings or the business of the Board, nor disturb any resident or Board Member while speaking or refuse to obey the orders of the Board. • • II. APROVAL OF CITY OF LINO LAKES PLANNING & ZONING BOARD MINUTES DATE July 13 2011 TIME STARTED : 6:33 P.M. TIME ENDED : 10 :02 P.M. MEMBERS PRESENT : Neil Evenson, Michael Hyden, Perry Laden Robert Nelson, Brian Pogalz (Vice Chair), Michael Root, Paul Tralle (Chair) MEMBERS ABSENT : None STAFF PRESENT : Jeff Smyser, Paul Bengtson, Jason Wedel, Michael Grochala__ I. CALL TO ORDER AND ROLL CALL: Chair Tralle called the Lino Lakes Planning and Zoning Board meeting to order at 6:33 p.m. on July 13, 2011. The Agenda- . proved=as amended. III. APPROVAL OF MINUTES :' June 8, 2011 • Mr. Hyden made a MOTION to approve the June 8, 2011 Meeting Minutes. Motion was supported by Mr. Pogalz. Motion carried 6 - 0. IV. OPEN MIKE Chair Tralle d ed Open Mike at 6:3,4 p.m. There was no one present for Open Mike. Mr. Smyser introduced the new City Engineer, Jason Wedel, of WSB & Associates engineering firm. Mr. Pogalz made a MOTION to close Open Mike at 6:36 p.m. Motion was supported by • Mr. Hyden. Motion carried 6 - 0. DRAFT MINUTES Planning & Zoning Board July 13, 2011 Page 2 V. ACTION ITEMS A. CONCEPT PLAN DISCUSSION for a grocery store development near Hodgson Road and County Road J City Planner, Jeff Smyser, presented the staff report. Staff explained that the purpose of a concept plan review is to allow for informal review and comment from city boards and the public prior to application submittal. No formal action was r,Iuired by the board. Mr. Smyser reviewed the proposed plan, noting some re• ents that would be necessary for the plan to move forward. Staff noted that the Environmental Board will be reviewing the co plan at their July meeting. The Board discussed issues including proposed access points, elements of ` : 49/J Master Plan, big box development, traffic and circulation, design and aesthetics o the proposed building, loading dock limitations, interim design for the 49/J intersection, ultimate design for the 49/J intersection, 1 r tructure issues, zoning, potential future development of the area, cornerst• // .ngs, pedestrian access, road improvement financing and landscape buffers. The Board pointed out that development brings opportim7ty for road and utility improvements. Paul Tucci, Oppidan development, was present for comments. Mr. Tucci summarized the history of the plans for this development. Oppidan has been a developer for over 20 years both Locally and nationa1Iv. He noted that they have worked with the city on the pr ocl" � �" the past year. Oppidan has discussed the plan at city work sessions and held a neighbo meeting with over 100 attendees. Mr. Tucci displayed some prior lopment plans 6 the area, explaining how the design has changed over time. He n: at they have attempted to address comments and questions as best they could from ic feedback. The newest plan is a result of city review, county review, neighbor ood meetin . and the city's Economic Development Advisory Committee meetings. The plan dudes a grocery store with an attached liquor store. Mr. Tucci addressed that:. ;will need to meet all storm water management requirements. He said that the plan h. ; . een redesigned based on public comment in regard to size of store, building location, truck dock location, truck delivery, hours of operation, and general location of access points. Mr. Tucci specified a number of items that have been addressed: • Access Points: Approximate location of a signaled intersection in the master study was 990 feet, they met with the city and county staff together to discuss, the result drove the location farther from the intersection. They are the last ones who want DRAFT MINUTES • • • Planning & Zoning Board July 13, 2011 Page 3 • traffic backing up. They will not succeed if traffic does not flow for customers. They want good traffic flow. • • Orientation of the Building: They moved the building to create a bigger buffer area from residents to the west. The present orientation reduces the amount of lights shining from the parking lot and creates a larger green buffer and berm area. The new design creates a better visual block from the building. • Size of Store: The developer has provided evidence to the city to prove that this size of store is warranted. A smaller store does not economically work for this area. • Delivery and Hours of Operation: The store is not intended to be open 24 hours. The common time for a grocery store is 6 a.m. to midnight. Hours of delivery were discussed and truck traffic will be addressed. • Site Line: Oppidan has not yet update ight line study. This will occur when they get feedback on a feasible concept p / ; hey intend to include a six -foot high privacy fence with trees on either side to pro �_ year -round screening. They took into consideration the varying elevations of neighboring homes. The landscaping plan can be refined for application. The developer responded to questions from the Board. Mr. Tucci stated that Oppidan has not deteuuined a number of truck trips per day to the site He said that inff`ast e will be funded with the help of TIF (tax increment financing.) Mr. Tucci povw + out that the market is very different today than it was in 2007 when tte Master Plarr` as completed. He noted that smaller shops are difficult in this economy. The developer noted that improvement to utilities and infrastructure comes when either of the neighboring property owners come together or a development becomes the Iyst for improvements. The developer said that plans previously included additional buildings to show potential landscaping and streetscape flow within the development. The developer added that the liquor store building was moved outside of the box to create a design element. The developer responded to a question about what alternative to a grocer would potentially develop on this property. Mr. Tucci explained that small shop owners need someone to generate repeat traffic. If not a grocer, in order to pay for the land and development, the most likely development after a grocer would be a drug store. He noted that national restaurants like to be located in hub areas and local restaurants are hard to maintain. He stated that this area needs a catalyst for development. • Mr. Tralle allowed for public comment. DRAFT MINUTES Planning & Zoning Board July 13, 2011 Page 4 Mike Witham, 211 Woodridge Lane stated that since the neighborhood meeting, he does not see a lot that has changed except moving the loading dock to north. He understands mixed use, but thinks that can be smaller business. He said that the developer has not yet provided an example of where they have done this type of development before in the cities. He pointed out that there are a number of items with this proposal that do not go along with the Master Plan. He considers this to be a bad fit for this neighborhood because multiple amendments would need to be made to the Master Plan in order to accomplish it. Keith Kuhnly, 241 Woodridge Lane, shared the same concerns as Mr. Witham. He added that noise and sights from second -story floors should be considered when designing the buffer. Yaron Hemi, resident of Shoreview, stated that ' development would affect a larger area, including traffic and noise pollution which ollow big box development. He doesn't consider this to fit the character of the neighborhood. I said there are about six grocery stores within easy driving distance of this neighborhood e wondered where people would be attracted to this store from. Mr. Henri wondered how much of a stake Oppidan has if this development does not succeed. His opinion was that there are enough abandoned stores and businesses in the neighborhood He added that he has traffic concerns. Mike Witham spoke again to state that although he understands there is a desire for infrastructure improygnents, would the improvements* necessary without the big box development. He wondered if there would be capacity issues with additional development. He question0 the need for improvements versus the desire for improvements. Mr. Witham would like to see a neighborhood friendly business. Steve Garfield, 208 Woodridge Lane, stated that whatever is going to be built will be there for a long time. He questioned if the city should lock into development right now just because the economy on allows for this type of development at this time. • Joe Olson, 223 Woodridge Lane, had concerns about the ventilation system and what the residents to the west will see when they look out over their deck or upstairs windows. He noted that traffic cutting through the neighborhoods is a concern for both Shoreview & Lino Lakes residents. Chair Tralle explained that the results of a market study are shared with city staff, but are not required to be shared with the public. He stated that the board will try to get the best possible product for both the developer as well as the neighborhood. He noted that the concerns of the citizens were heard by board members at the neighborhood meeting. He added that a developer will not construct a building if they do not expect it to succeed. Mr. Tucci addressed a number of the resident concerns. DRAFT MINUTES • • • • • • Planning & Zoning Board July 13, 2011 Page 5 • The market study was reviewed with city staff. The public can contact the city's Community Development Director for information on results of the study. • Mr. Tucci displayed photos of a similar existing development in Shakopee. • The developer will consider the perspective of a second story view of the site. • The market study showed that there is potential for a very successful grocer at this location. Developers rely on demographics and wholesaler input as to what is viable. • The developer will not spend money if they do not e An operator of a business will have a substantial ',ti; being partial or full owner. development to succeed. the property as well as The Board noted that the proprietary user is not for public knowledge arly in the development process. The developer stated that it was not feasible for them to include the corner property at this time of development. Mr. Tucci addressed the HVAC concerns and is aware that they may need to provide rooftop screening. Steve Garfield, 208,Woodridge Lane, asked what ra the market study draws from He had concerns lout traffic if the development becomes too successful without the proper infrastructure. The Board noted that road improvements are `financed by development. Mr. Tucci responded to the radius of the market study. He displayed a map showing the tidy area. C Salle called a F-- minute break at 8:33 p.m. Chair Tr econven the meeting at 8:38 p.m. �y y The developed; ' ained the demographics of the location of users based on the study. The study is designed to tell if the community is being served efficiently. The market study says this is a viable site for a grocer. Mike Witham, 201 Woodridge Lane, pointed out that the display of a similar development showed neighboring townhomes and not single family homes. He stated that he feels there is a need for transition between single family homes and business, such as multi - family homes in between. He wondered what precedence this will set for future development. DRAFT MINUTES Planning & Zoning Board July 13, 2011 Page 6 The Board wondered why it would be considered acceptable for a multi - family residence to be located next to a business rather than a single - family residence, pointing out that the rights should be the same for residents. Mr. Witham responded that he was of the understanding that planning included transitioning between different land use zones. His understanding was that a single - family zone is not usually located next to a general business zone. This concluded the discussion for the Oppidan concept plan. B. CONTINUED PUBLIC HEARING to consider Amending Section 6 of the Zoning Ordinance which includes requirements for residential zoning districts Chair Tralle declared the Public Hearing open at 8:45 p.m. City Planner, Jeff Smyser, presented the staff r rt. Board members spent some time discussing with staff the requirements for dwelling unit size in different zones. Staff agreed to consider draft language for garage sizes in the R -2 zone to bring to the next board meeting. There was no one present to speak on the hearing. Mr. Pogalz made a MOTIO to continue the Public Hearing to the next meeting at 9:38 p.m. Motion was supported by Mr. Ryden. Motion carried 6 - 0. C. PUBLIC HEARING to consider Amending Section 7 of the Zoning Ordinance which includes requirements for business districts Chair Tralle declared the Public Hearing open at 9:38 p.m. City Planner, Jeff Smyser, presented the staff report. Staff explained the concept behind the proposed creation of a new zoning district in order to clean up certain properties in the city. There was no one present to speak on the hearing. Mr. Pogalz made a MOTION to continue the Public Hearing to the next meeting at 9:56 p.m. Motion was supported by Mr. Nelson. Motion carried 6 - 0. DRAFT MINUTES • • • • • Planning & Zoning Board July 13, 2011 Page 7 D. CONTINUED PUBLIC HEARING to consider Amending the Conditional Use Permit for a motor fuel station to allow for the installation of new gas pumps and canopy, located at 7997 Lake Drive City Planner, Jeff Smyser, presented the staff report. Staff recommended continuation of the CUP Amendment. Chair Tralle declared the Public Hearing open at 9:57 p.m. There was no one present to speak. Mr. Pogalz made a MOTION to continue the Public Hearing to the next meeting at 9:58 p.m. Motion was supported by Mr. Laden. Motion carried 6 0 VI. DISCUSSION ITEMS A. Variance criteria amendment, Section 2 Subd. 4. as approved by P &Z, considered by City Council July 11 City Planner, Jeff Smyser, informed the board that the City Council approved a portion of the amendments to Section 2 of the Zoning Ordinance as recommended by the P &Z Board. Staff explained that this was the only portion that staff has brought to the council since the P &Z Board's recommendation. B. Metro Transit Service Cuts City Planner, Jeff Smyser, informed the board that the city was notified that based on the budget that was approved by the state legislature, the Metropolitan Council has proposed cuts existing bus routes. ✓ If their proposal is adopted, the result would be no remaining commuter bus service to Lino Lakes. VII. ADJOURNMENT Mr. Pogalz made a MOTION to adjourn the meeting at 10:02 p.m. Motion was supported r. H ' n. Motion carried 6 - 0. Respectfully submitte 1 Dawn Bugge Community Development Assistant DRAFT MINUTES • • • STAFF ORIGINATOR: P & Z MEETING DATE: TOPIC: BACKGROUND AGENDA ITEM V -A. Mary Divine August 10, 2011 CONSIDERATION OF a Resolution Finding that a Modified Development Program for Development District No. 1 and the Modified Tax Increment Financing Plan for Tax Increment Financing District No. 1 -10 is Consistent with the Plans for Development of the City of Lino Lakes After several years of planning, in 2004, the City of Lino Lakes and its Economic Development Authority (EDA) began an effort to redevelop a 40 -acre site at the intersection of County Road 23 and Interstate 35W known as Legacy at Woods Edge. The City's goal was to redevelop a sandblasting plant and truck storage facility for mixed commercial and a diversity of housing uses. To help make the redevelopment possible, the City and its EDA designated a portion of the Property as Tax Increment Financing District No. 1 -11. The City and EDA also entered into a development contract with a private developer, providing for the long -term build -out of various uses on the Property. The City and EDA subsequently provided financing in the form of GO Bonds and Tax Increment Bonds. Impact of Recession The City completed the infrastructure and interchange improvements, and a portion of the property was developed for various uses: a hotel (later converted to assisted living), a 60 -unit affordable rental housing project, and commercial leasable space). But development stalled in the face of the severe recession. The remaining 22 acres of the property were foreclosed by the developer's lender. After exhausting efforts to find new users or developers, the lender abandoned the foreclosed property, and it was tax - forfeited in the summer of 2010. The result is that the City has outstanding bonds secured by either special assessments or tax increments, in the aggregate amount of $7,840,000, and limited revenues to pay those obligations. Special Legislation To mitigate the impact of the tax forfeiture of the undeveloped property, the City requested special legislation to extend of the duration of Tax Increment Financing District No. 1 -10 ( "TIF District No. 1 -10 "). This district is located along Lake Drive (County Road 23) in Centennial School District. It is an economic development district that would be required to be decertified at the end of 2013 under general law. Two of the parcels in Lakes Industrial Park are developed. While TIF District No. 1 -10 was established primarily to help develop manufacturing and warehouse improvements in that district, those improvements were part of the impetus for the County Road 23 /Interstate 35W Interchange (along with the new development in Legacy at Woods Edge). In fact, tax increments from TIF District No. 1 -10 are also pledged to pay part of the debt service on the TIF Bonds described above. The special legislation that has been approved and signed by the Governor includes the following provisions: 1. It allows the EDA to collect increment from TIF District No. 1 -10 through the end of 2023. This extension matches the period when the TIF Bonds will be paid off. Increment from TIF District No. 1 -10 would provide approximately $170,000 to $200,000 /year to protect Lino Lakes residents from higher property taxes and to get it back on the tax roll. This will save residents approximately $20 annually (based on a $200,000 home). 2. After February 1, 2011, all tax increment from this district must be used only to pay debt service on the Improvement Bonds or the TIF Bonds (or any future refunding bonds). 3. During the extended period, expenditures are exempt from the pooling and five year rules (Section 469.176, subd. 3), and from the requirement that increment must assist only manufacturing and related uses (Section 469.176, subd. 4c). These exemptions are necessary to permit the use of increment for the TIF Bonds and Improvement Bonds. The purpose of this extension is to provide revenues needed to replace the special assessments that are not being paid on the tax - forfeited property, and the lost tax increments from development that has not yet occurred. The City is continuing its efforts to develop Legacy at Woods Edge, and over the long term remains confident that the additional development will provide tax base and amenities for the residents of the city and the broader region. The city can place assessments back on the property as it develops, so this extension of TIF District No. 1 -10 is a stop gap measure until development occurs. As assessments and tax increments from the property become available, those revenues will reduce the need for the additional increment from TIF District No. 1 -10. After the special legislation was passed, the City Council, Anoka County and Centennial School District approved the legislation. As required by Minnesota Statutes, Section 469.175, the Development District and TIF District Plan must now be modified to reflect the extended duration of the district and the increased budget, and to ensure that the modification conforms to the Comprehensive Plan. While it is not expressly stated in the Statute, the finding that the modification conforms to the Comprehensive Plan is typically made by the Planning & Zoning Commission of the City. The City Council will hold a public hearing on August 22, and the EDA and Council will then consider modification of the district. ANALYSIS When a Development Program is created or modified it is the role of the Planning and Zoning Board to make a finding that the modification is consistent with the Comprehensive Plan. On • • • • July 9, 2003, the Planning & Zoning Board passed Resolution No. 03 -01 finding that the establishment of TIF District No. 1 -10 was consistent with the Comprehensive Plan. On November 12, 2003 the Planning & Zoning Board passed Resolution 03 -02 finding the establishment of TIF District No. 1 -11 is consistent with the Comprehensive Plan. • • The Comprehensive Plan's goals and policies call for promoting development and redevelopment within the Development District, fostering the revitalization of underdeveloped properties, increasing the tax base and facilitating development of a range of housing types and commercial services; including: 1. Guiding the 22 -acres property for mixed use 2. Pursuing improvements to the I -3 5 W /Lake Drive interchange 3. Establishing the Town Center Village (Legacy at Woods Edge) as a high profile community focal point that integrates a mixture of commercial, medium and high density housing. OPTIONS 1. Recommend approval of Resolution No. 11 -01 finding the Modified Development Program for Development District 1 and for Tax Increment Financing District 1 -10 to be consistent with the goals and policies of the City's Comprehensive Plan. 2. Return to staff with direction. RECOMMENDATION Option 1 ATTACHMENTS 1. Resolution No. 11 -01 2. Map of Tax Increment Financing Districts No. 1 -10 and 1 -11 3. Modified Development Program for Development District No. 1 4. Tax Increment Financing Plan for TIF District No. 1 -10 • • CITY OF LINO LAKES PLANNING COMMISSION RESOLUTION NO. 11 -01 RESOLUTION FINDING MODIFIED DEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRICT NO. 1 AND THE MODIFIED TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. 1 -10 CONSISTENT WITH THE PLANS FOR DEVELOPMENT OF THE CITY OF LINO LAKES WHEREAS, the City Council of the City of Lino Lakes has authorized preparation of a modified Development Program (Program) for Development District No. 1 and a Tax Increment Financing Plan (TIF Plan) for Tax Increment Financing District No. 1 -10 within that Development District, and the modified Development Program and the modified TIF Plan have been submitted to the Planning Commission for comment; and WHEREAS, the Planning Commission has reviewed the modified Development Program and the modified TIF Plan and have compared them with the plans for development of the City as a whole. NOW, THEREFORE, BE IT RESOLVED By the Planning Commission of the City of Lino Lakes, Minnesota as follows: 1. The modified Program for Development District No. 1 and the modified TIF Plan for TIF District No. 1 -10 are found to be consistent with the plans for development of the City of Lino Lakes as a whole. 2. It is recommended that the City Council of the City of Lino Lakes hold the public hearing required by law and adopt the modified Program and the modified TIF Plan. Approved this 10th day of August, 2011, by the Planning Commission of the City of Lino Lakes, Minnesota. ATTEST: Secretary 389545v1 SJB LN140 -80 Chairperson T.I.F. District 1 -10 (Marshan Industrial Park) c ct) E 0 0. 0 0 0 CD -1 T.I.F. District 1 -11 Tax Forfeited Parcels • • • DEVELOPMENT PROGRAM DEVELOPMENT DISTRICT NO. 1 LINO LAKES ECONOMIC DEVELOPMENT AUTHORITY August 5, 2011 This document drafted by: KENNEDY & GRAVEN, CHARTERED 470 Pillsbury Center Minneapolis, MN 55402 (612) 337 -9300 LN 140 -80 390136v2 SJB LN140 -80 • • TABLE OF CONTENTS Page MODIFIED DEVELOPMENT DISTRICT PROGRAM FOR DEVELOPMENT DISTRICT NO. 1 Subsection A. Subsection B. Subsection C. Subsection D. Subsection E. Subsection F. Subsection G. Subsection H. Subsection I. Subsection J. Subsection K. Subsection L. LN 140 -81 390136v2 SJB LN140 -80 Definitions 1 Statutory Authority 2 Statement of Public Purpose 2 Statement of Objectives 2 Environmental Controls 3 Open Space to be Created 3 Public Facilities to be Constructed 3 Proposed Reuse of Property 3 Development District Financing 4 Relocation 4 Administration of Development District 4 Map of Development District 4 MODIFIED DEVELOPMENT DISTRICT PROGRAM FOR DEVELOPMENT DISTRICT NO. 1 A. Definitions For the purposes of the modified Program for Development District No. the following terms shall have the meanings specified below, unless the context otherwise requires: "Administrative Expenses" means all expenditures of the Authority other than amounts paid for the purchase of land or amounts paid to contractors or others providing materials and services, including architectural and engineering services, directly connected with the physical development of real property in the District, relocation benefits paid to or services provided for persons residing or businesses located in the District, or amounts used to pay interest on, fund a reserve for, or sell at a discount bonds issued pursuant to section 469.178 of the TIF Act. Administrative Expenses includes amounts paid for services provided by bond counsel, fiscal consultants and planning or economic development consultants; "Administrator" means the executive director of the Authority or his or her designee; "Authority" or "EDA" means the Lino Lakes Economic Development Authority, a public body corporate and politic under the laws of Minnesota; 411 "City" means the City of Lino Lakes, a municipal corporation under the laws of Minnesota; • "City Council" or "Council" means the Lino Lakes City Council; "City Development Districts Act" or "Act" means Minnesota Statutes, sections 469.124 through 469.134, as amended; "Comprehensive Plan" means the City's objectives, policies, standards and programs to guide public and private land use, development, redevelopment and preservation for all lands and water within the City; "County" means Anoka County, Minnesota; "Development District" or "District" means Development District No. 1, which was established in 1987 by the City and is now under the control of the Authority; "Development District Program" or "Program" means the Program for Development District No. 1, which was adopted on January 26, 1987, as modified from time to time thereafter. "EDA Act" means Minnesota Statutes, sections 469.090 through 469.108, as amended; "Special Law" means 2011 Minnesota Laws, Ch. 112, Art. 11, Section 18. "State" means the State of Minnesota; LN 140 -80 390136v2 SJB LN 140 -80 • • • "Tax Increment Bonds" means any general obligation or revenue tax increment bonds or notes issued by the Authority or the City to finance the public costs associated with Development District No. 1 as stated in the modified Program or in the Plan for any of the tax increment financing districts within Development District No. 1 or any obligations issued to refund any Tax Increment Bonds, and including any interfund loans or advances within the meaning of the TIF Act; "Tax Increment Financing Act" or "TIF Act" means Minnesota Statutes, sections 469.174 through 469.179, as amended; "Tax Increment Financing District" or "TIF District" means any tax increment financing district established or to be established within Development District No. 1 pursuant to the TIF Act; and "Tax Increment Financing Plan" or "Plan" means the Plan for any of the TIF Districts within the Development District. B. Statutory Authority The Authority has determined that it is necessary, desirable and in the public interest to modify the Program for Development District No. 1, pursuant to the provisions of the Act. The Authority has also determined that funding for the necessary activities and improvements in Development District No. 1 will continue to be accomplished in part or in whole through tax increment financing in accordance with the TIF Act. C. Statement of Public Purpose The Authority has previously determined there to be a need to offer assistance to encourage development of the area of the community established as Development District No. 1 in order to increase employment opportunities, improve the tax base and improve the general economy of Lino Lakes and the State. The City established the Development District on January 26, 1987, and subsequently transferred control and administration of the District to the Authority. The boundaries of the Development District were most recently expanded on April 28, 1997 in connection with the establishment of TIF District No. 1 -8. Within the District, the City and /or Authority have previously created eleven TIF Districts. The purpose of this modification of the Program is to acknowledge the Authority's intent to modify the TIF Plan for TIF District No. 1 -10 in order to increase the estimated public costs and extend the duration of that district, in order to help pay debt service on bonds related to the Interstate 35 and Highway 23 interchange, and bonds related to the Legacy at Woods Edge development that is partly within TIF District No. 11, all as authorized by the Special Law. .. This modified Program does not change the boundaries of the District from those established at the time the Authority established TIF District No. 8. D. Statement of Objectives The Authority will continue to seek to achieve the following objectives through the modified Development District Program: LN 140 -80 390136v2 SJB LNI40 -80 • • • 1. promote and secure the prompt development of property in Development District No. 1 in a manner consistent with the Comprehensive Plan and with minimal adverse impact on the environment, which property is currently less productive because of the lack of proper utilization and lack of investment, thus promoting and securing the development of other land in Lino Lakes; 2. encourage additional employment opportunities within Development District No. 1 and Lino Lakes for residents of the community and the surrounding area, thereby improving living standards and preventing unemployment and the loss of skilled labor and other human resources in the area; 3. secure the increase of property subject to taxation by the City, County, school districts and other taxing jurisdictions in order to better enable such entities to pay for public improvements and governmental services and programs required to be provided by them; 4. secure the construction and provide moneys for the payment of the public costs within Development District No. 1 which are necessary for the orderly and beneficial development of the Development District; 5. promote the concentration of appropriate uses and related development within Development District No. 1 in order to maintain the area in a manner compatible with its highest and best use; and 6. encourage development within the District which is aesthetically pleasing and which creates a positive visual image of the community. 7. promote redevelopment of property that is occupied by substandard buildings, which will foster revitalization of that property, increase tax base, and facilitate development of a range of housing types and commercial services in Development District No. 1. E. Environmental Controls It is not anticipated that any development within the Development District will present major environmental concerns. All actions by the Authority, public improvements and private development will be carried out in compliance with applicable environmental standards. F. Open Space to be Created Any open space within the Development District will be created in accordance with the development controls of the Authority and will be adequate for the needs of the residents of the community. LN 140 -80 390136v2 SJB LNI40 -80 • • • G. Public Facilities to be Constructed All public facilities constructed within the Development District will be financially feasible and compatible with the City's long range development plans. H. Proposed Reuse of Property The Authority may acquire property within Development District No. 1 in order to resell the land to a developer. Property within the Development District will be reused in accordance with the City's ordinances and Comprehensive Plan as well as with this modified Program and the Modified Plan for TIF District No. 1 -10 or the Plan for any other tax increment financing district within Development District No. 1. I. Development District Financing Within Development District No. 1, the Authority will modify the TIF Plan for TIF District No. 1 -10 to help pay debt service on certain outstanding bonds issued to finance various improvements within the Development District, in accordance with the Special Law. Debt service costs paid from TIF District No. 1 -10, and public development costs for all previously established tax increment districts, will be met primarily through pledged increment. For detailed development and financing plans for each TIF District, refer to the individual TIF Plan for the relevant TIF District. J. Relocation In establishing TIF Districts, Authority may find it necessary to pay for relocation for individuals or businesses displaced by public action. The Authority accepts its responsibility for providing for relocation pursuant to section 469.133 of the Act. If relocation is necessary, provisions will be made in accordance with Minnesota Statutes, sections 117.50 through 117.56, as amended. K. Administration of Development District Maintenance and operation of the public improvements is the responsibility of the Administrator of Development District No. 1. Each year the Administrator will submit to the Authority the maintenance and operation budget for the following year. The Administrator will administer the Development District pursuant to the provisions of section 469.131 of the Act; provided, however, that such powers may only be exercised at the direction of the Authority. No action taken by the Administrator shall be effective without authorization by the Authority. The Authority has not and does not anticipate the need to create an advisory board to advise the Authority on the planning, construction or implementation of the activities and improvements outlined in the Development Program. LN 140 -80 390136v2 SJB LN140 -80 • • L. Map of Development District A map of the existing boundaries of Development District No. 1 is attached to this modified Program as Exhibit A, which is incorporated herein by reference. LN 140 -80 390136v2 SJB LN 140 -80 • • LN 140 -80 390136v2 SJB LN 1 L EXHIBIT A MAP OF DEVELOPMENT DISTRICT NO. 1 Development District No. 1 City of Lino Lakes Anoka County, Minnesota • • • City of Lino Lakes, Minnesota and Lino Lakes Economic Development Authority Tax Increment Financing Plan for Tax Increment Financing (Economic Development) District No. 1 -10 (Panattoni Project) Dated: August 11, 2003 Amendment Dated: July 18, 2011 (DRAFT) Prepared by: SPRINGSTED INCORPORATED 380 Jackson Street, Suite 300 St. Paul, MN 55101-2887 (651) 223 -3000 WWW. SPRINGSTED. COM INTRODUCTION The Authority, on August 11, 2003, created Tax Increment Financing District No. 1-10, within Development District No. 1, and adopted a Tax Increment Financing Plan (the "Plan ") in connection therewith. The boundaries of Tax Increment Financing District No. 1.10 are not being modified due to this amendment. The Authority intends to modify the Plan for Tax Increment Financing District No. 1 -10 on August 22, 2011 (this modification) to provide for the financing of certain debt service costs on bonds issued to finance the interchange of Anoka County Highway 23 and Interstate 35W and debt service on bonds issued to finance public improvements serving the development known as Legacy at Woods Edge. All tax increment remaining in the account of TIF District No. 1 -10 after February 1, 2011, and all tax increments collected thereafter must be used only for one of the two activities listed above. Minnesota Statutes 469.176, Subd. 4c, and 469.1763 do not apply to expenditures made under this section. Further, under 2011 Minnesota Laws, Ch. 112, Art. 11, Section 18 (the "Special Law "), the Authority is authorized to extend the duration of TIF District No. 1 -10 and collect tax increments from the TIF District through December 31, 2023 and use such increments for the restricted uses previously described. The purpose of the modification to the Plan is to increase the authorized tax increment revenues and public costs, to authorize for `pooling' of increment to pay the debt service on the bond issues, and to extend the duration of the district in accordance with the 2011 Special Law. The sections of the Modified Plan specifically being modified include Section F: Duration of the TIF District; Section G: Property to be Included in the District; Section K: Estimated Public Costs; Section L: Estimated Sources of Revenue; Section 0: Original Tax Capacity Rate; Section S. Tax Increment Pooling and the Five Year Rule; and Section V: Estimated Impact on Other Taxing Jurisdictions. This modification may not reflect all changes that have occurred since the District was established on August 11, 2003, but is intended to reflect the changes applicable to the district pursuant to the Special Law that was passed. • • • • • • TABLE OF CONTENTS Section Pages) A. Definitions 1 B. Statutory Authorization 1 C. Statement of Need and Public Purpose 1 D. Statement of Objectives 2 E. Designation of Tax Increment Financing District as an Economic Development District 2 F. Duration of the TIF District and the Three Year Rule 3 G. Property to be Included in the TIF District 4 H. Property to be Acquired in the TIF District 5 I. Specific Development Expected to Occur Within the TIF District 5 J. Findings and Need for Tax Increment Financing 5 K. Estimated Public Costs 6 L. Estimated Sources of Revenue 7 M. Estimated Amount of Bonded Indebtedness 7 N. Original Net Tax Capacity 7 0. Original Tax Capacity Rate 8 P. Projected Retained Captured Net Tax Capacity and Projected Tax Increment 8 Q. Use of Tax Increment 9 R. Excess Tax Increment 9 S. Tax Increment Pooling and the Five Year Rule 10 T. Limitation on Administrative Expenses 10 U. Limitation on Property Not Subject to Improvements - Four Year Rule 11 V. Estimated Impact on Other Taxing Jurisdictions 11 W. Prior Planned Improvements 12 X. Development Agreements 12 Y. Assessment Agreements 12 Z. Modifications of the Tax Increment Financing Plan 12 M. Administration of the Tax Increment Financing Plan 13 AB. Financial Reporting and Disclosure Requirements 14 Map of the Tax Increment Financing District EXHIBIT I Map of the Development District EXHIBIT I Projected Tax Increment Report EXHIBIT II Estimated Impact on Other Taxing Jurisdictions Report EXHIBIT III City of Lino Lakes, Minnesota Section A Definitions The terms defined in this section have the meanings given herein, unless the context in which they are used indicates a different meaning: "Authority" means the Lino Lakes Economic Development Authority. "City" means the City of Lino Lakes, Minnesota; also referred to as a "Municipality ". "City Council" means the City Council of the City; also referred to as the "Governing Body ". "County" means Anoka County, Minnesota. "Development District" means Municipal Development District No. 1 in the City, which is described in the corresponding Development Program. "Development Program" means the Development Program for the Development District. "Project Area" means the geographic area of the Development District. "School District" means Independent School District No. 12, Minnesota. "State" means the State of Minnesota. "TIF Act" means Minnesota Statutes, Sections 469,174 through 469.1799, both inclusive. "TIF District" means Tax Increment Financing (Economic Development) District No. 1 -10. "TIF Plan" means the tax increment financing plan for the TIF District (this document). Section B Statutory Authorization The Development District Act authorizes the City and Authority, upon certain public purpose findings by the City Council, to establish and designate development districts within the City and to develop and administer development programs therefore to meet the needs and accomplish the public purposes specified in Section C. In accordance with the purposes set forth in Section 469.124 of the Development District Act, the City Council and Authority have established the Development District comprising the area described in Section E and have adopted this Development Program. The TIF Act also authorizes the Authority, with approval by the City, to establish and administer tax increment financing districts within the Development District. Eligible public costs of the Development District and TIF District may be paid for tax increments collected from the TIF District. Section C Statement of Need and Public Purpose The City Council and Authority have determined that there is a need for the City to take certain actions they deem necessary in order to encourage, ensure and facilitate development and redevelopment by the private sector of underutilized, inappropriately used and unused land located within the corporate limits of the City. Such actions are necessary in order to provide additional employment opportunities for residents of the City and the surrounding area; to improve the tax base of the City, the County and the School District, thereby enabling them to better provide needed public services; and to improve the general economy of the City, the County and the State. SPRINGSTED Page 1 • • City of Lino Lakes, Minnesota Section D Statement of Objectives The Authority seeks to achieve the following objectives through the establishment of TIF District No. 1 -10; 1. provide employment opportunities within the community. 2. improve the tax base of Lino Lakes and the general economy of the City and State; 3. encourage industrial development in an area of the community which has not been utilized to its full potential; and 4. implement relevant portions of the Comprehensive Plan. The Authority's specific purpose in establishing TIF District No. 1 -10 is to promote public improvements to Lake Drive and the development of four manufacturing facilities in the Marshan Lake Business Park. The Panattoni project will consist of an approximate 265,000 square foot distribution facility. Future expansions may also include three additional outlot buildings totaling 160,000 square feet. The Authority intends to use increment generated by the new developments to write down land costs and the cost of special assessments, including the interest portion and for public improvements to Lake Drive. Section E Designation of Tax Increment Financing District as an Economic Development District Economic development districts are a type of tax increment financing district which consist of any project, or portions of a project, which the Authority finds to be in the public interest because: (1) it will discourage commerce, industry, or manufacturing from moving their operations to another state or municipality; (2) it will result in increased employment in the state; or (3) it will result in preservation and enhancement of the tax base of the state. The TIF District qualifies as an economic development district in that the proposed development described in this TIF Plan (see Section I) meets all of the criteria listed above. Without establishment of the TIF District, the proposed development would not occur within the City, but would be located in another municipality. The proposed development will also result in increased employment and enhancement of the tax base in both the City and the State. Tax increments from an economic development district must be used to provide improvements, loans, subsidies, grants, interest rate subsidies, or other assistance in which at least 85% of the square footage of the facilities to be constructed are used for any of the following purposes: (1) manufacturing, production, or processing of tangible personal property; (2) warehousing, storage and distribution of tangible personal property, excluding retail sales; (3) research and development related to the activities listed in (1) or (2) above; (4) telemarketing if that activity is the exclusive use of the property; (5) tourism facilities (see M.S. Section 469.174, Subd. 22); (6) qualified border retail facilities (see M.S. Section 469.176, Subd. 4c); or (7) space necessary for and related to the activities listed in (1) through (6) above. SPRINGSTED Page 2 City of Lino Lakes, Minnesota In addition to the uses specified above, tax increments may also be used to provide assistance for up to 15,000 square feet of any separately owned commercial facility located within a "small city" (see M.S. Section 469.176, Subd. 4c), or to pay for excessive site preparation and public improvement costs in a district containing bedrock soils conditions in 80% or more of its acreage (see M.S. Section 469.176, Subd. 4c). Tax increments from the TIF District will be used to provide financial assistance to the proposed development (see Section 1), in which over 85% of the square footage of the facilities to be constructed will be used for manufacturing or other purposes as listed in (1) above. Section F Duration of the TIF District and the Three Year Rule Economic development districts may remain in existence 8 years from the date of receipt by the authority of the first tax increment. The Authority anticipates that the TIF District will remain in existence the maximum duration allowed by law (projected to be through the year 2014). Modifications of this plan (sec Section M) shall not extend these limitations. In addition, no tax increments shall be paid to the Authority from the TIF District after three years from the date of certification unless within that time period: (1) bonds have been issued in aid of the Project Area (except revenue bonds issued pursuant to M.S. Sections 169.152 to 169.165); (2) thc Authority has acquired property within the TIF District; or (3) thc Authority has constructed public improvements within the TIF District. The proposed August 22, 2011 modification reflects the extension of the district through December 31, 2023 in accordance with the 2011 Special Law. Generally, economic development districts may remain in existence 8 years from the date of receipt by the Authority of the first tax increment. Based on receipt of first increment the statutorily - required decertification date of the District is December 31, 2013. However the 2011 Special Law allows the term of the district to be extended until December 31, 2023, if the Authority uses such increments to pay:: • debt service on bonds issued to finance the interchange of Anoka County Highway 23 and Interstate 35W and • debt service on bonds issued to finance public improvements serving the development known as Legacy at Woods Edqe. All tax increments remaining in the account of TIF District No. 1 -10 after February 1, 2011, and all tax increments collected thereafter must be used only for one of the two activities listed above. Minnesota Statutes 469.176, Subd. 4c, and 469.1763 do not apply to expenditures made under this section. The Authority reserves the right to allow the TIF District to remain in existence the maximum duration allowed by the 2011 Special Law, and anticipates that the TIF District may be active for the maximum duration allowed. However the Authority will decertify the TIF District as early as possible should the projected increment be received in a shorter time period than originally projected. All tax increments from taxes payable in the year the TIF District is decertified shall be paid to the Authority. SPRINGSTED Page 3 • • City of Lino Lakes, Minnesota Section G Property to be Included in the TIF District The TIF District is an approximate 32 acre area of land located within the Project Area. A map showing the location of the TIF District is shown in Exhibit 1. The boundaries and area encompassed by the TIF District are described below: Parcel ID Number Legal Description 17 31 22 23 0012 17 31 22 32 0006 17 31 22 32 0003 TH PRT OF SW1 /4 OF NW1 /4 LYG ELY OF THE ELY R/W LINE OF IH 1t35 W & SLY OF THE FOL DESC LINE; COM AT THE SE COR OF SD 1/4 1/4 , TH NLY ALG E LINE OF SD 1/4 1/4 511 FT TO THE POB OF SD LINE TO BE DESC TH S 87 DEG 10 TH S 66 DEG 51 MIN 01 SEC W 103 FT TH S 16 DEG 15 MIN 11 SEC W 384.03 FT TH S 77 DEG 48 MIN 07 SEC W 201.13 FT + OR TO THE E R/W LINE OF SD IH 1t35W & THERE TERM EX RD SUBJ TO EASE OF RECORD. THAT PRT OF NW1 /1 OF SW1 /1 OF SEC 17 TWP 31 RGE 22 LYG SELY OF 1 35W & LYG NWLY OF T H NO 19, EX FOL DESC TRACT: BEG AT A PT ON S LINE OF SD '/J 1/4 538.56 FT E OF SW COR HH.EREOF, TH N PRLUW W LINE OF SD '/4 '/4137 FT, TH E PRLL/W SD S LINE TO INTER/W CIL OF T H NO 49, TH SWLY ALG SD CIL TO SD S LINE, TH W ALG SD S LINE TO POB, ALSO EX S 633 FT OF W 538.56 FT OF SD 1/4 '/a, EX RD SUBJ TO EASE OF REC. UNPLATTED VILLAGE OF LINO LAKES THE N 212 FT OF THE S 137 FT OF THAT PART OF THE NW1 /4 OF SW1 /4 OF SEC 17 31 22 LYING NWLY OF TRK HWY NO 8 (ALSO KNOWN AS ST PAUL & SUPERIOR STATE RD) (EX THE W 538.56 FT THEREOF) (SUBJ TO TRK HWY NO 8). The parcels listed above have been replatted since the district was established. With the August 22, 2011 modification, we are providing a current parcel listing and corresponding legal descriptions as shown below: 17- 31 -22 -23 -0022 17- 31 -22 -32 -0009 17- 31 -22 -32 -0010 17- 31 -22 -32 -0019 LOT 2 BLK 1 MARSHAN LAKE INDUSTRIAL PARK, SUBJ TO EASE OF REC LOT 1 BLOCK 1 MARSHAN LAKE IND PARK THAT PRT OF LOT 3 BLK 1 MARSHAN LAKE INDUSTRIAL PARK LYG WITHIN SEC 17 TWP 31 RGE 22, SUBJ TO EASE OF REC LOT 4 BLOCK 1 MARSHAN LAKE INDUSTRIAL PARK, SUBJ TO EASE OF REC • The area encompassed by the TIF District shall also include all street or utility right -of -ways located upon or adjacent to the property described above. SPRINGSTED Page 4 City of Lino Lakes, Minnesota Section H Property to be Acquired in the TIF District The Authority may acquire and sell any or all of the property located within the TIF District; however, the Authority does not anticipate acquiring any such property at this time. Section I Specific Development Expected to Occur Within the TIF District The project will consist of the construction of four industrial buildings to be used for manufacturing. The first building to be constructed is expected to be 265,000 square feet and completed by 2004. Outlots A, B and C are expected to be 40,000 square feet completed in 2005, 60,000 square feet completed in 2006 and 60,000 square feet completed in 2007, respectively. In addition, a portion of the increment will be used for Lake Drive improvements. The four facilities are expected to be fully constructed in 2007 and be 100% assessed and on the tax rolls as of January 2, 2008 for taxes payable in 2009. At the time this document was prepared there were no signed construction contracts with regards to the above described development. Section J Findings and Need for Tax Increment Financing In establishing the TIF District, the City makes the following findings: (1) The TIF District qualifies as an economic development district; See Section E of this document for the reasons and facts supporting this finding. (2) The proposed development, in the opinion of the City, would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future, and the increased market value of the site that could reasonably be expected to occur without the use of tax increment would be less than the increase in market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of the TIF District permitted by the TIF Plan; The proposed development, in the opinion of the City, would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future: The proposed development is an industrial park including various manufacturing and warehouse uses. The land in the TIF District has been vacant for many years, despite previous efforts by the City to encourage its development (including establishment of a previous tax increment financing district that includes most of these parcels.) The site requires sewer, water and road improvements to accommodate manufacturing and warehouse development, and the cost of those improvements may not, as a practical matter, be passed to proposed developers and users of the site, based on analysis of market conditions in Lino Lakes. In addition, the City has reviewed a pro forma submitted by the initial proposed developer, showing that the cost of land acquisition and public improvements make the proposed development infeasible assuming customary rates of return. The increased market value of the site that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of the TIF District permitted by the TIF Plan: As noted above, the site has been vacant for many years. Without installation of the improvements needed to serve the area, SPRINGSTED Page 5 City of Lino Lakes, Minnesota • the City has no reason to expect that significant development would occur without assistance similar to that provided in this plan. Therefore, the City concludes as follows: • (3) a. The city's estimate of the amount by which the market value of the site will increase without the use of tax increment financing is $0, except for a small amount attributable to appreciation in land value. b. If all development which is proposed to be assisted with tax increment were to occur in the District, the total increase in market value would be approximately $16,963,000. c. The present value of tax increments from the District for the maximum duration of the district permitted by the TIF Plan is estimated to be $1,254,113 (See Exhibit V) d. Even if some development other than the proposed development were to occur, the Council finds that no alternative would occur that would produce a market value increase greater than $15,708,887 (the amount in clause b less the amount in clause c) without tax increment assistance. The TIF Plan conforms to the general plan for development or redevelopment of the City as a whole; and The reasons and facts supporting this finding are that the TIF District is properly zoned, and the TIF Plan has been approved by the City Planning Commission and will generally compliment and serve to implement policies adopted in the City's comprehensive plan. (4) The TIF Plan will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the development of the Project Area by private enterprise. The reasons and facts supporting this finding are that the development activities are necessary so that development and redevelopment by private enterprise can occur within the Project Area. Section K Estimated Public Costs The estimated public costs of the TIF District are listed below. Such costs are eligible for reimbursement from tax increments of the TIF District. SPRINGSTED Page 6 Original TIF (August 11, 2003) Modification No. 1 July 18, 2011 (DRAFT) Land /building acquisition 750,000 750,000 Site improvements /preparation costs 0 Public improvements 500,000 500,000 Parking facilities 0 Bond principal payments 1,785,000 1,785,000 Bond interest payments 475,000 475,000 Loan principal payments 0 Loan interest payments 0 Administrative expenses 130,000 130,000 Capitalized interest 120,000 120,000 Public improvements outside district 484,000 484,000 Other — special law for debt service payments on existing bonds 1,916,264 Total 4,244,000 6,160,264 SPRINGSTED Page 6 City of Lino Lakes, Minnesota The Authority reserves the right to administratively adjust the amount of any of the items listed above or to incorporate additional eligible items, so long as the total estimated public cost is not increased. Section L Estimated Sources of Revenue The Authority anticipates providing financial assistance to the proposed development through the use of a pay -as- you-go technique. As tax increments are collected from the TIF District in future years, a portion of these taxes will be distributed to the developer /owner as reimbursement for public costs incurred (see Section K). The Authority reserves the right to finance any or all public costs of the TIF District using pay -as- you -go assistance, internal funding, general obligation or revenue debt, or any other financing mechanism authorized by law. The Authority also reserves the right to use other sources of revenue legally applicable to the Project Area to pay for such costs including, but not limited to, special assessments, utility revenues, federal or state funds, and investment income. Section M Estimated Amount of Bonded Indebtedness The Authority may issue bonds or pay as you go notes or interfund loans in an original principal amount not to exceed $1,785,000. Section N Original Net Tax Capacity The County Auditor shall certify the original net tax capacity of the TIF District. This value will be equal to the total net tax capacity of all property in the TIF District as certified by the State Commissioner of Revenue. For districts certified between January 1 and June 30, inclusive, this value is based on the previous assessment year. For districts certified between July 1 and December 31, inclusive, this value is based on the current assessment year. The Estimated Market Value of all property within the TIF District as of January 2, 2003, for taxes payable in 2004, is $885,000. Upon establishment of the TIF District, and subsequent reclassification of property, it is estimated that the original net tax capacity of the TIF District will be approximately $16,950. Each year the County Auditor shall certify the amount that the original net tax capacity has increased or decreased as a result of: (1) changes in the tax - exempt status of property; (2) reductions or enlargements of the geographic area of the TIF District; (3) changes due to stipulation agreements or abatements; or SPRINGSTED Page 7 Original TIF (August 11, 2003) Modification No. 1 July 18, 2011 (DRAFT) Tax increment revenue 2,409,000 4,325,264 Interest on invested funds 50,000 50,000 Bond proceeds 1,785,000 1,785,000 Special assessments 0 Rent/lease revenue 0 Grants 0 Other 0 Total 4,244,000 6,160,264 The Authority anticipates providing financial assistance to the proposed development through the use of a pay -as- you-go technique. As tax increments are collected from the TIF District in future years, a portion of these taxes will be distributed to the developer /owner as reimbursement for public costs incurred (see Section K). The Authority reserves the right to finance any or all public costs of the TIF District using pay -as- you -go assistance, internal funding, general obligation or revenue debt, or any other financing mechanism authorized by law. The Authority also reserves the right to use other sources of revenue legally applicable to the Project Area to pay for such costs including, but not limited to, special assessments, utility revenues, federal or state funds, and investment income. Section M Estimated Amount of Bonded Indebtedness The Authority may issue bonds or pay as you go notes or interfund loans in an original principal amount not to exceed $1,785,000. Section N Original Net Tax Capacity The County Auditor shall certify the original net tax capacity of the TIF District. This value will be equal to the total net tax capacity of all property in the TIF District as certified by the State Commissioner of Revenue. For districts certified between January 1 and June 30, inclusive, this value is based on the previous assessment year. For districts certified between July 1 and December 31, inclusive, this value is based on the current assessment year. The Estimated Market Value of all property within the TIF District as of January 2, 2003, for taxes payable in 2004, is $885,000. Upon establishment of the TIF District, and subsequent reclassification of property, it is estimated that the original net tax capacity of the TIF District will be approximately $16,950. Each year the County Auditor shall certify the amount that the original net tax capacity has increased or decreased as a result of: (1) changes in the tax - exempt status of property; (2) reductions or enlargements of the geographic area of the TIF District; (3) changes due to stipulation agreements or abatements; or SPRINGSTED Page 7 • • • City of Lino Lakes, Minnesota (4) changes in property classification rates. Section 0 Original Tax Capacity Rate The County Auditor shall also certify the original tax capacity rate of the TIF District. This rate shall be the sum of all local tax rates that apply to property in the TIF District. This rate shall be for the same taxes payable year as the original net tax capacity. In future years, the amount of tax increment generated by the TIF District will be calculated using the lesser of (a) the sum of the current local tax rates at that time or (b) the original tax capacity rate of the TIF District. 129.831% as shown bclow. Taxing Jurisdiction 2002/2003 Local Tax Rate City of Lino Lakcs 17.603% Anoka County 37.711% ISD No. 12 37A67% 8ther 7.050-% Total 129,834% The sum of the local tax rates for taxes levied in 2003 and payable in 2004 is 120.530% and has previously been certified as the original tax capacity rate of the TIF District. This is the 'frozen' rate of the district. Should the sum of current local tax capacity rates be greater than 120.530 %, the district is limited to the captured amount of increment based on the frozen rate. Any additional amounts are generated as excess increment and retained by the County. Section P Projected Retained Captured Net Tax Capacity and Projected Tax Increment Each year the County Auditor shall determine the current net tax capacity of all property in the TIF District. To the extent that this total exceeds the original net tax capacity, the difference shall be known as the captured net tax capacity of the TIF District. For communities affected by the fiscal disparity provisions of Minnesota Statutes, Chapter 473F and Chapter 276A, the original net tax capacity of the TIF District shall be determined before the application of fiscal disparity. In subsequent years, the current net tax capacity shall exclude the product of any fiscal disparity increase in the TIF District (since the original net tax capacity was certified) times the appropriate fiscal disparity ratio. The County Auditor shall certify to the Authority the amount of captured net tax capacity each year. The Authority may choose to retain any or all of this amount. It is the Authority's intention to retain 100% of the captured net tax capacity of the TIF District. Such amount shall be known as the retained captured net tax capacity of the TIF District. Exhibit II gives a listing of the various information and assumptions used in preparing a number of the exhibits contained in this TIF Plan, including Exhibit III which shows the projected tax increment generated over the anticipated life of the TIF District. SPRINGSTED Page 8 City of Lino Lakes, Minnesota Section Q Use of Tax Increment Each year the County Treasurer shall deduct 0.36% of the annual tax increment generated by the TIF District and pay such amount to the State's General Fund. Such amounts will be appropriated to the State Auditor for the cost of financial reporting and auditing of tax increment financing information throughout the state. Exhibit III shows the projected deduction for this purpose over the anticipated life of the TIF District. The Authority has determined that it will use 100% of the remaining tax increment generated by the TIF District for any of the following purposes: (1) pay for the estimated public costs of the TIF District (see Section K) and County administrative costs associated with the TIF District (see Section T); (2) pay principal and interest on tax increment bonds or other bonds issued to finance the estimated public costs of the TIF District; (3) accumulate a reserve securing the payment of tax increment bonds or other bonds issued to finance the estimated public costs of the TIF District; (4) pay all or a portion of the county road costs as may be required by the County Board under M.S. Section 469.175, Subdivision 1 a; or (5) return excess tax increments to the County Auditor for redistribution to the City, County and School District. Tax increments from property located in one county must be expended for the direct and primary benefit of a project located within that county, unless both county boards involved waive this requirement. Tax increments shall not be used to circumvent levy limitations applicable to the City. Tax increment shall not be used to finance the acquisition, construction, renovation, operation, or maintenance of a building to be used primarily and regularly for conducting the business of a municipality, county, school district, or any other local unit of government or the State or federal government, or for a commons area used as a public park, or a facility used for social, recreational, or conference purposes. This prohibition does not apply to the construction or renovation of a parking structure or of a privately owned facility for conference purposes. If there exists any type of agreement or arrangement providing for the developer, or other beneficiary of assistance, to repay all or a portion of the assistance that was paid or financed with tax increments, such payments shall be subject to all of the restrictions imposed on the use of tax increments. Assistance includes sale of property at less than the cost of acquisition or fair market value, grants, ground or other leases at less then fair market rent, interest rate subsidies, utility service connections, roads, or other similar assistance that would otherwise be paid for by the developer or beneficiary. Section R Excess Tax Increment In any year in which the tax increments from the TIF District exceed the amount necessary to pay the estimated public costs authorized by the TIF Plan, the Authority shall use the excess tax increments to: (1) prepay any outstanding tax increment bonds; (2) discharge the pledge of tax increments thereof; (3) pay amounts into an escrow account dedicated to the payment of the tax increment bonds; or SPRINGSTED Page 9 • • City of Lino Lakes, Minnesota (4) return excess tax increments to the County Auditor for redistribution to the City, County and School District. The County Auditor must report to the Commissioner of Education the amount of any excess tax increment redistributed to the School District within 30 days of such redistribution. Section S Tax Increment Pooling and the Five Year Rule At least 80% of the tax increments from the TIF District must be expended on activities within the district or to pay for bonds used to finance the estimated public costs of the TIF District (see Section E for additional restrictions). No more than 20% of the tax increments may be spent on costs outside of the TIF District but within the boundaries of the Project Area, except to pay debt service on credit enhanced bonds. All administrative expenses are considered to have been spent outside of the TIF District. Tax increments are considered to have been spent within the TIF District if such amounts are: (1) actually paid to a third party for activities performed within the TIF District within five years after certification of the district; (2) used to pay bonds that were issued and sold to a third party, the proceeds of which are reasonably expected on the date of issuance to be spent within the later of the five -year period or a reasonable temporary period or are deposited in a reasonably required reserve or replacement fund. (3) used to make payments or reimbursements to a third party under binding contracts for activities performed within the TIF District, which were entered into within five years after certification of the district; or (4) used to reimburse a party for payment of eligible costs (including interest) incurred within five years from certification of the district. Beginning with the sixth year following certification of the TIF District, at least 80% of the tax increments must be used to pay outstanding bonds or make contractual payments obligated within the first five years. When outstanding bonds have been defeased and sufficient money has been set aside to pay for such contractual obligations, the TIF District must be decertified. administrative expenses); however, the Authority does reserve thc right to allow for tax increment pooling from thc TIF District in the future. The Authority anticipates that tax increments will be spent outside of the TIF District. All tax increments remaining in the account of TIF District No. 1 -10 after February 1, 2011, and all tax increments collected thereafter must be used only to pay debt service on bonds issued to finance the interchange of Anoka County Highway 23 and Interstate 35W and bonds issued to finance public improvements serving the development known as Legacy at Woods Edge. Minnesota Statutes 469.176, Subd. 4c, and 469.1763 do not apply to expenditures made under this section.. Section T Limitation on Administrative Expenses Administrative expenses are defined as all costs of the Authority other than: (1) amounts paid for the purchase of land; (2) amounts paid for materials and services, including architectural and engineering services directly connected with the physical development of the real property in the project; (3) relocation benefits paid to, or services provided for, persons residing or businesses located in the • project; SPRINGSTED Page 10 City of Lino Lakes, Minnesota (4) amounts used to pay principal or interest on, fund a reserve for, or sell at a discount bonds issued pursuant to section 469.178; or (5) amounts used to pay other financial obligations to the extent those obligations were used to finance costs described in clause (1) to (3). Administrative expenses include amounts paid for services provided by bond counsel, fiscal consultants, planning or economic development consultants, and actual costs incurred by the County in administering the TIF District. Tax increments may be used to pay administrative expenses of the TIF District up to the lesser of (a) 10% of the total tax increment expenditures authorized by the TIF Plan or (b) 10% of the total tax increments received by the TIF District, Section U Limitation on Property Not Subject to Improvements - Four Year Rule If after four years from certification of the TIF District no demolition, rehabilitation, renovation, or qualified improvement of an adjacent street has commenced on a parcel located within the TIF District, then that parcel shall be excluded from the TIF District and the original net tax capacity shall be adjusted accordingly. Qualified improvements of a street are limited to construction or opening of a new street, relocation of a street, or substantial reconstruction or rebuilding of an existing street. The Authority must submit to the County Auditor, by February 1 of the fifth year, evidence that the required activity has taken place for each parcel in the TIF District. If a parcel is excluded from the TIF District and the Authority or owner of the parcel subsequently commences any of the above activities, the Authority shall certify to the County Auditor that such activity has commenced and the parcel shall once again be included in the TIF District. The County Auditor shall certify the net tax capacity of the parcel, as most recently certified by the Commissioner of Revenue, and add such amount to the original net tax capacity of the TIF District. Section V Estimated Impact on Other Taxing Jurisdictions Exhibit IV shows the estimated impact on other taxing jurisdictions if the maximum projected retained captured net tax capacity of the TIF District was hypothetically available to the other taxing jurisdictions. The Authority believes that there will be no adverse impact on other taxing jurisdictions during the life of the TIF District, since the proposed development would not have occurred without the establishment of the TIF District and the provision of public assistance. A positive impact on other taxing jurisdictions will occur when the TIF District is decertified and the development therein becomes part of the general tax base. The fiscal and economic implications of the proposed tax increment financing district, as pursuant to Minnesota Statutes, Section 469.175, Subdivision 2, are listed below. 1. The total amount of tax increment that is estimated to be generated over the extended life of the district (during the special legislation period of 2014 -2023) is estimated to be $1,916,264. The total estimated increment generated from 2011 -2023 is $2,437,629 as shown in Exhibit II. 2. To the extent that spending of tax increments from TIF District 1 -10 on anticipated projects may generate any public cost impacts on city- provided services such as police and fire protection, public infrastructure, and the impact of any general obligation tax increment bonds attributable to the district upon the ability to issue other debt for general fund purposes, such costs will be levied upon the taxable net tax capacity of the City, excluding that portion captured by the District. During the term of the special legislation, the Authority will use all available tax increment to finance debt service on existing bonds. 3. The amount of tax increments over the extended life of the district (2014 -2023) that would be attributable to school district levies, assuming the school district's share of the total local tax rate for all taxing jurisdictions remained the same, is estimated to be $473,258. The total estimated increment attributable to the school district's share for the years 2011 -2023 is $599,852 as shown in Exhibit II. SPRINGSTED Page 11 • • City of Lino Lakes, Minnesota 4. The amount of tax increments over the extended life of the district (2014 -2023) that would be attributable to county levies, assuming the county's share of the total local tax rate for all taxing jurisdictions remained the same is estimated to be $581,169. The total estimated increment attributable to the county's share for the years 2011 -2023 is $736,628 as shown in Exhibit II. 5. No additional information has been requested by the county or school district that would enable it to determine additional costs that will accrue to it due to the development proposed for the district. Section W Prior Planned Improvements The Authority shall accompany its request for certification to the County Auditor (or notice of district enlargement), with a listing of all properties within the TIF District for which building permits have been issued during the 18 months immediately preceding approval of the TIF Plan. The County Auditor shall increase the original net tax capacity of the TIF District by the net tax capacity of each improvement for which a building permit was issued. There have been no building permits issued in the last 18 months in conjunction with any of the properties within the TIF District. Section X Development Agreements If within a project containing an economic development district, more than 10% of the acreage of the property to be acquired by the Authority is purchased with tax increment bonds proceeds (to which tax increment from the property is pledged), then prior to such acquisition, the Authority must enter into an agreement for the development of the property. Such agreement must provide recourse for the Authority should the development not be completed. The Authority anticipates entering into an agreement for development, but does not anticipate acquiring any property located within the TIF District. Section Y Assessment Agreements The Authority may, upon entering into a development agreement, also enter into an assessment agreement with the developer, which establishes a minimum market value of the land and improvements for each year during the life of the TIF District. The assessment agreement shall be presented to the County or City Assessor who shall review the plans and specifications for the improvements to be constructed, review the market value previously assigned to the land, and so long as the minimum market value contained in the assessment agreement appears to be an accurate estimate, shall certify the assessment agreement as reasonable. The assessment agreement shall be filed for record in the office of the County Recorder of each county where the property is located. Any modification or premature termination of this agreement must first be approved by the City, County and School District. The Authority anticipates entering into an assessment agreement. Section Z Modifications of the Tax Increment Financing Plan Any reduction or enlargement in the geographic area of the Project Area or the TIF District; increase in the amount of bonded indebtedness to be incurred; increase in the amount of capitalized interest; increase in that portion of the captured net tax capacity to be retained by the Authority; increase in the total estimated public costs; or designation of • additional property to be acquired by the Authority shall be approved only after satisfying all the necessary requirements for approval of the original TIF Plan. This paragraph does not apply if: SPRINGSTED Page 12 City of Lino Lakes, Minnesota the only modification is elimination of parcels from the TIF District; and the current net tax capacity of the parcels eliminated equals or exceeds the net tax capacity of those parcels in the TIF District's original net tax capacity, or the Authority agrees that the TIF Districts original net tax capacity will be reduced by no more than the current net tax capacity of the parcels eliminated. The Authority must notify the County Auditor of any modification that reduces or enlarges the geographic area of the TIF District. The geographic area of the TIF District may be reduced but not enlarged after five years following the date of certification. Section AA Administration of the Tax Increment Financing Plan Upon adoption of the TIF Plan, the Authority shall submit a copy of such plan to the Minnesota Department of Revenue. The Authority shall also request that the County Auditor certify the original net tax capacity and net tax capacity rate of the TIF District. To assist the County Auditor in this process, the Authority shall submit copies of the TIF Plan, the resolution establishing the TIF District and adopting the TIF Plan, and a listing of any prior planned improvements. The Authority shall also send the County Assessor any assessment agreement establishing the minimum market value of land and improvements in the TIF District, and shall request that the County Assessor review and certify this assessment agreement as reasonable. The County shall increment in any the TIF District. development, infl implementing the (1) (2) (3) distribute to the Authority the amount of tax increment as it becomes available. The amount of tax year represents the applicable property taxes generated by the retained captured net tax capacity of The amount of tax increment may change due to development anticipated by the TIF Plan, other ation of property values, or changes in property classification rates or formulas. In administering and TIF Plan, the following actions should occur on an annual basis: prior to July 1, the Authority shall notify the County Assessor of any new development that has occurred in the TIF District during the past year to insure that the new value will be recorded in a timely manner. if the County Auditor receives the request for certification of a new TIF District, or for modification of an existing TIF District, before July 1, the request shall be recognized in determining local tax rates for the current and subsequent levy years. Requests received on or after July 1 shall be used to determine local tax rates in subsequent years. each year the County Auditor shall certify the amount of the original net tax capacity of the TIF District. The amount certified shall reflect any changes that occur as a result of the following: (a) the value of property that changes from tax - exempt to taxable shall be added to the original net tax capacity of the TIF District. The reverse shall also apply; (b) the original net tax capacity may be modified by any approved enlargement or reduction of the TIF District; (c) if laws governing the classification of real property cause changes to the percentage of estimated market value to be applied for property tax purposes, then the resulting increase or decrease in net tax capacity shall be applied proportionately to the original net tax capacity and the retained captured net tax capacity of the TIF District. The County Auditor shall notify the Authority of all changes made to the original net tax capacity of the TIF District. SPRINGSTED Page 13 City of Lino Lakes, Minnesota • Section AB Financial Reporting and Disclosure Requirements The State Auditor shall enforce the provisions of the TIF Act and shall have full responsibility for financial and compliance auditing of the Authority's use of tax increment financing. On or before August 1 of each year, the Authority must annually submit to the State Auditor, County Auditor and to the governing body of the municipality a report which shall: (1) provide full disclosure of the sources and uses of public funds in the TIF District; (2) permit comparison and reconciliation of the accounts and financial reports; (3) permit auditing of the funds expended on behalf of the TIF District; and (4) be consistent with generally accepted accounting principles. The report shall include, among other items, the following information: (1) the original net tax capacity of the district and any subdistrict under 469.177, subdivision 1; (2) the net tax capacity for the reporting period of the district and any subdistrict; (3) the captured net tax capacity of the district; (4) any fiscal disparity deduction from the captured net tax capacity under section 469.177, subdivision 3; • (5) the captured net tax capacity retained for tax increment financing under 469.177, subdivision 2, paragraph (a), clause (1); • (6) any captured net tax capacity distributed among affected taxing districts under 469.177, subdivision 2, paragraph (a), clause (2); (7) the type of district; (8) the date the municipality approved the tax increment financing plan and the date of approval of any modification of the tax increment financing plan, the approval of which requires notice, discussion, a public hearing, and findings under subdivision 4, paragraph (a); (9) the date the authority first requested certification of the original net tax capacity of the district and the date of request for certification regarding any parcel added to the district; (10) the date the county auditor first certified the original net tax capacity of the district and the date of certification of the original net tax capacity of any parcel added to the district; (11) the month and year in which the authority has received or anticipates it will receive the first increment from the district; (12) the date the district must be decertified; (13) for the reporting period and prior years of the district, the actual amount received from, at least, the following categories: (I) tax increments paid by the captured net tax capacity retained for tax increment financing under section 469.177, subdivision 2, paragraph (a), clause (1), but excluding any excess taxes; SPRINGSTED Page 14 City of Lino Lakes, Minnesota (ii) tax increments that are interest or other investment earnings on or from tax increments; (iii) tax increments that are proceeds from the sale or lease of property, tangible or intangible, purchased by the authority with tax increments; (iv) tax increments that are repayments of loans or other advances made by the authority with tax increments; (v) bond or loan proceeds; (vi) special assessments; (vii) grants; and (viii) transfers from funds not exclusively associated with the district; (14) for the reporting period and for the prior years of the district the actual amount expended for, at least, the following categories: (i) acquisition of land and buildings through condemnation or purchase; (ii) site improvements or preparation costs; (iii) installation of public utilities, parking facilities, streets, roads, sidewalks, or other similar public improvements; (iv) administrative costs, including the allocated cost of the Authority; and (v) public park facilities, facilities for social, recreational, or conference purposes, or other similar public improvements; and (vi) transfers to funds not exclusively associated with the district; (15) for properties sold to developers, the total cost of the property to the Authority and the price paid by the developer; (16) the amount of any payments and the value of in -kind benefits, such as physical improvements and the use of building space, that are paid or financed with tax increments and are provided to another governmental unit other than the municipality during the reporting period; (17) the amount of any payments for activities and improvements located outside of the district that are paid for or financed with tax increments; (18) the amount of payments of principal and interest that are made during the reporting period on any non - defeased: (i) general obligation tax increment financing bonds; (ii) other tax increment financing bonds; and (iii) notes and pay -as- you -go contracts; (19) the principal amount, at the end of the reporting period, of any non- defeased: SPRINGSTED Page 15 • • • City of Lino Lakes, Minnesota (i) general obligation tax increment financing bonds; (ii) other tax increment financing bonds; and (iii) notes and pay -as- you -go contracts; (20) the amount of principal and interest payments that are due for the current calendar year on any non - defeased: (i) general obligation tax increment financing bonds; (ii) other tax increment financing bonds; and (iii) notes and pay -as- you -go contracts; (21) if the fiscal disparities contribution under chapter 276A or 473F for the district is computed under section 469.177, subdivision 3, paragraph (a). the amount of increased property taxes imposed on other properties in the municipality that approved the tax increment financing plan as a result of the fiscal disparities contribution; (22) whether the tax increment financing plan or other governing document permits increment revenues to be expended; (i) to pay bonds, the proceeds of which were or may be expended on activities outside of the district; (ii) for deposit into a common bond fund from which money may be expended on activities located outside of the district; or (iii) to otherwise finance activities located outside of the tax increment financing district; (23) the estimate of contained in the tax increment financing plan of the cost of the project, including administrative expenses to be paid with tax increment; and (24) any additional information the state auditor may require. The Authority must also annually publish in a newspaper of general circulation in the City an annual statement for each tax increment financing district showing: (1) the original net tax capacity of the district and any subdistrict under 469.177, subdivision 1; (2) the net tax capacity for the reporting period of the district and any subdistrict; (3) the captured net tax capacity of the district; (4) the month and year in which the authority has received or anticipates it will receive the first increment from the district; (5) the date the district must be decertified; (6) the amount of principal and interest payments that are due for the current calendar year on any non - defeased obligations; SPRINGSTED Page 16 City of Lino Lakes, Minnesota (7) (8) (9) if the fiscal disparities contribution under chapter 276A or 473F for the district is computed under section 469.177, subdivision 3, paragraph (a). the amount of increased property taxes imposed on other properties in the municipality that approved the tax increment financing plan as a result of the fiscal disparities contribution; the amounts of tax increment received and expended in the reporting period; and any additional information the authority deems necessary. The annual statement must inform readers that additional information regarding each district may be obtained from the authority, and must explain how the additional information may be requested. The Authority must publish the annual statement for a year no later than August 15 of the next year. The authority must identify the newspaper of general circulation in the municipality to which the annual statement has been or will be submitted for publication and provide a copy of the annual statement to the county board, county auditor, the school board, the state auditor, and the governing body of the municipality on or before August 1 of the year in which the statement must be published. The reporting and disclosure requirements outlined in this section shall begin with the year the district was certified, and shall end in the year in which both the district has been decertified and all tax increments have been spent or returned to the county for redistribution. Failure to meet these requirements, as determined by the State Auditors Office, may result in suspension of distribution of tax increment. SPRINGSTED Page 17 • • • Exhibit I Tax Increment Financing (Economic Development) District No. 1 =10 TIF District No. 1 -10 SPRINGSTED Page 18 Exhibit I Development District No. 1 City of Lino Lakes Anoka County, Minnesota 4.'7 1.. Aral- N ROKAA u MARY E5 1 fort' SPRINGSTED Page 19 Annual Net Revenue (12) 170,342 168,560 168,560 CO r.-0 0(O M.- (O a Cr O M CO N R V N 0 0 CO M N CO et (O CO N N OD Cf CD 0) 0 0 o N r 0 CO 0 0 0 0 0 0 N N N N Cr) N r 0 N V 69 d y E c O CD CO 0 • CC M M CV N- 0 0 CO CO CO 0 0 0 0 N N 000 N ■O LC) N COCD CO CO O 0000000000 0r 00)(00 (0 • a 4) CO CO N V N 0 0) (O.7 CO N M? �00 Mrs 4) 0)0 - 00 r r 0 0 0 0) 0 0 0- N N N N a CO Or 5000) -('1 (0 CO CO (O CO CO CO r r r 5-- ro N ■ N.4 CO r 64 0 CO O CO r N- CO CO CO N O N- 5- (0 0r0 Met 000<t 00)04) ON 00 CO (ODO S • 000) co" N r r00 CO O) 000— N N N N 0 M 009 XC U E 1_ c 1_v z X _T C F r m U (Y U _ d (5 Z 1_ J c d N - oZU Yu _T — ca Z Y J U > e o 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 OO 0 M M M M M M M M M M M M M 0 0 0 0 0 0 0 0 0 0 0 0 0 O O O O O O O O O O O O O N N N 5.1000000000 e 0 (0) 0 N 0 N 0 a CO N CD OI 0) (0 CV cO r r� N GO CD n 'Cr 0 0 0 (5 ❑ N r r 000000 t 0 V', Odx' 0 vv vv v(n(0n(rn COO CD (r0 l.r d1_ E O d 1_ ((0 0 •0 d c Yd 00000 00 CO 0000 dN X CO 0) 0)r CO et 0 M 0 N 0 rLO 00 O e t 0 CD O0 CD0 (O O! O V' V( 0)0 V r 0010 0 d �. C 0000000 ; U 0 d E k d Ew 3 V d 00 0000) 000 0) 000 0 0 00 000(00.00 0000 .e 0000000000000 0.c 0 0 0 0 0 (0 0 (0 0 (0 (0 (0 0 Q d o oQ O d N O G d 0 0 MO0N 000 V N0 jO LL N- O O CO r O 0 0 r r 0 0 O - -ON00r 00(?0 N a N N r CC0 0 0 (7 0 0 N. OI r r r CO CO 0 0 0 N CO CI 0000000000000 U d a N 000000)0 r 0 V 0 0 0 0 O N 0 0 et M 7 0 CO 0 0 o co 0 r CD CO 0 0 M 0 0 M M O N 0 M M 0 N O 0 (O 0 CO e 0 0 CO 0 0,— r 0) 0 N- 0 M CD CO •• i CO •• nt. 5- M(.5 c6 CC)1010 (6 c6 N O Ec 4, d E Q > r• N M Cr 0 (p r CO CO 0 N M 0 N 0 N N N O O NQ 0 M M M M M M M M M M M M M C .0 :g N 0. a 0, a a a 0, a CC CV N N ¢a-w N (.)0rnm((0 1_ N CO a 0 • 0 0 CO 0 N N N CO 0000 2 C°0 _0R O M O 4) G .4,•") V 0 N a N 0 N r V 000)0) CO r r r O 000)0 N 0 0 0 0 0 CV CV 0 0 > V 0 0 , V N N M N d 0 0 W m 0 0 N V 0 U a 00) CDr 1_ (00000 N: 0 D)0v N CV — r N N N 0. 000)00 0 0 0 0 0 0 r 0 0 co r O M 0 0 Nil 0 10 0 0 o� N'.. A a N 0 0 0 0 0 0 0 O o A NN(V N M Cr? N CV N N NNN 000 C7 5- a CO CO N r N N 0 N C N 0 CO 0 0(O co O(O 0M0 et (4 O r CO CV 9 7 T C▪ 00) 0(0 d M 0 0 Er�N0 ` CD V 0 4) m O0 O N a) 0) 0 SPRINGSTED Estimated Impact on Other Taxing Jurisdictions Report 0 0 0 el N 0 • Nap O Z t r e- 0 0 iR L N w O C y w r d E O E `m 0 G C " C_ N �0 ai — J o _c C d C 0 0 J Ili C 5 O C r U O = a` O LL p 0 LL a) .0 d 0 C c U 0 _ LL v H O ~ a` With Project and TIF District 03 +--0 N 00) 0(0 U - C C+ M 0) (D N a) '� 0 h 0 7 L'.' CD = a)1— a) _ x�UZ 0) I- o � o 0 O 0 M ',r, � O O O O 0 0 0 0 CO N 10 (00 ) M N csi V co V 265,286,415 o o 0 0 M M M co N o O O 64 N o (00 N r- c0 0 0 N co co a1 O (0 0 0 N (V 0 0 0 0 N 0 0 O O 0 N oi '8f co V n 0 CO 0 0 N CO (n 0 N I 0) 0 CO 0 0 N N City of Lino Lakes Anoka County 0 M co O N a) o O N 0) a asL o c� F- N O - 0 N U N 0) N 73 ai 00_ d • > ¢ N T p L U.- N a) L C t L L 3 O 7 L CU co � = C 0 0 N N (0 (0 -2a)N :arc >x a) N ` N c6 O) ., ~aci LL — co (0 O) O CD O C O — a`) -c 4 3 0 (O/) U co a) 0Q m a a` .) U_ �% 7 N N i- X O ....V a) H 3 O N.L-. a ' 0 0 N 7 852 Z 0 ai." -T" m m= (00 0 .L a) D O 7 0) 08(81 oaiE C) O U) o a3 -O NO -.H '(400 Z - 7 T al.0 -O a N u) O N 7 .N O. -a N ;�f0 oU •o mo 0)-E :113) L _ — o (C .L 0 � 3 3CL cn (0 O 1- * Statement 1: Statement 2: ai ai a m 0 (� X Q (a N La w 0 c a) O 4 o 0 U • T C c CD- u) C =0 m`� w LL N U a) • N a0 U a 0) 0 .co co C a 0 ul O C N � o•, . r � 11 c N N 0 N (0 0) n • • • AGENDA ITEM V B STAFF ORIGINATOR: Jeff Smyser P & Z MEETING DATE: August 10, 2011 DISCUSSION TOPIC: CONTINUED PUBLIC HEARING Amending Section 6 of the Zoning Ordinance (Residential Zones) BACKGROUND This P & Z opened this public hearing at the June meeting. We went through Section 6 in its entirety and resolved most issues, but the Board continued the hearing to July to allow further discussion. The P & Z supported amendments to the R -2 zone to accommodate detached homes in the new Medium Density Residential land use category (4.0 — 5.9 units per acre). This requires reducing lot widths to 60 feet, lot depths to 125 feet, and lot areas to 7500 sf. Given these reduced lot dimensions, staff proposed a limit on the size of garages facing the street in an R -2 zone. The intent is to avoid a neighborhood streetscape of garage doors overwhelming the houses. After the July meeting, the specific garage door parameters in the R -2 zone was the only unresolved issue for residential zones. ANALYSIS The P & Z discussed the following proposals at the July meeting and found it unsatisfactory: Subd. 4. R -2, Two Family Residential District. E. Building Design Standards. 5. Garage Location. No portion of an attached garage may extend closer to the street than the rest of the structure footprint. 6. Garage Frontage. From side wall to side wall of any residential structure footprint, no more than forty (40) percent of the structure width shall consist of garage doors that face the street. Side or rear loaded garages are not subject to this requirement. This requirement also does not apply if garage doors that face the street are set back at least ten (10) feet from the front wall of the habitable space within the dwelling structure. As an alternative, we propose the following, adapted from requirements included in the City of Chaska's zoning ordinance: 5. The following conditions are to be used with respect to the positioning of the • garage on all residential lots if the garage door faces the street. Side or rear loaded garages are not subject to these requirements. a. No garage shall protrude beyond the front wall of the house, unless the house includes a substantial front porch. c. A substantial front porch shall be: unenclosed; have a minimum depth of 8 feet; and extend across 100 percent of the front of house. 6. If the garage door faces the street, the length of the garage wall facing the street shall not be greater than fifty percent (50 %) of the length of the entire front facade of the structure; except on lots that comply with all of the following conditions: a. The second floor living space shall extend over the two -car portion of the garage; and b. The garage doors shall be decorative and shall provide for strip windows along the upper edge of the garage door; and c. Houses that provide for a three -car garage shall break the garage into two -car and one -car sections with the one -car section being recessed four feet; and d. Maximum width of the garage shall be 32 feet. OPTIONS 1. Finalize text on R -2 zone garages. Close public hearing on Section 6, and recommend approval of amendments to Section 6. 2. Continue public hearing and return to staff with direction. RECOMMENDATION Option 1. • • • • • AGENDA ITEM V C STAFF ORIGINATOR: Jeff Smyser P & Z MEETING DATE: August 10, 2011 DISCUSSION TOPIC: CONTINUED PUBLIC HEARING Amending Section 7 of the Zoning Ordinance (Business Zones) BACKGROUND At the July meeting, the P & Z opened the public hearing on amending Section 7 of the zoning ordinance. Section 7 currently includes the three business zoning districts: Neighborhood Business, Limited Business, and General Business. We worked through these three zones and after a few revisions, the Board was comfortable with the proposed amendments. Because of the late hour, the public hearing was continued to the August meeting. Staff is proposing a new business zoning district to address several difficulties that have arisen over time in the area where Olive, Orange, and Maple Streets intersect with Lake Drive. The intent is that the new zone would include the area guided Commercial on the attached detail of the 2030 Comprehensive Plan Land Use Map. It should be understood that the rezoning action itself will occur in the future and involve a separate public hearing. Tonight, we will discuss the proposed new zoning district. The draft of the new district is attached, along with some maps that will assist with understanding the issues to be resolved. OPTIONS 1. Complete discussion of amendments to Section 7, business zones. Close public hearing. Recommend approval of amendments to Section 7. 2. Continue public hearing and return to staff with direction. RECOMMENDATION Option 1 2002 COMPREHENSIVE PLAN LAND USE MAP 90$ Olive St co N. C co 684 885 rn (0 • Orange St co co 902 906 N CC 9871 Mapte t n CO rn L aim • • • ZONING MAP 8385 RURAL Olive St 83B0 03 c(0 n ti 884 ao CO 0o ago 885 rn 909 Orange St 9� 9.6 CO 03 987 CO' Mapie St N V N O P 8373 8361 G1B g�6 • 2030 COMPREHENSIVE PLAN LAND USE MAP L� R Y d auto r -`pair garage d blasti ing arage r • • • Subd. 6. EBFS, Existing Business - Future Services District. A. Purpose, Intent, and Limits on Establishing the Zone. The purpose of this district is to recognize the location of existing business sites in an area that is guided by the Comprehensive Plan for Commercial land use and for municipal water and sanitary sewer prior to year 2030 but where these utilities currently are not available. This zoning district is to include the following properties: (list the sites at the east end of Orange and Maple and Olive streets) 1. The intent is: a. to allow the continuation of the existing commercial businesses that were established in accordance with official controls in effect at the time and allow for the possibility of expansion if it is reasonable based on the location, site size, impacts on other properties, and other relevant factors. b. when municipal utilities are available, these sites will be rezoned to a commercial zoning district —NB, LB, or GB —that is consistent with the Comprehensive Plan. c. to avoid the establishment of any new such sites. d. to prevent the expansion of businesses that, when established, were not in accordance with official controls in effect at the time. 2. No additional EBFS zones shall be established. B. Lot and Yard Requirements. 1. Minimum Lot Size. The lots as they exist at the time the properties are zoned to EBFS shall be continue: no property in this district shall be reduced in size. 2. Minimum Lot Width. The lots as they exist at the time the properties are zoned to EBFS shall be continue: no property in this district shall be reduced in width. 3. Setbacks. The greater of the following: a. From Streets. 1) Local Street. Thirty (30) feet. Lino Lakes Zoning Ordinance Amended per Ord. No. 21 -03, 04 -05, 09 -06, 11 -08, 04 -09, 01 -10, 04 -10, 02 -11 & 03 -11 draft August 3 Business Districts 7 -41 2) Collector or Arterial Street. Forty (40) feet. 3) Parking Lot/Driveway from street. Fifteen (15) feet. b. Rear Yard. 1) Principal Building. Thirty (30) feet. 2) Accessory Building. Five (5) feet. 3) Parking Lot. Ten (10) feet. c. Side Yard. 1) Principal Building. Ten (10) feet. 2) Accessory Building. Ten (10) feet. 3) Parking Lot . Ten (10) feet. d. From Residential District. Thirty -five (35) feet. C. Height Regulations. No building in the EBFS District shall be erected or structurally altered to exceed thirty (30) feet in height except as allowed by Section 3, Subd. 4.C. D. Impervious Surface Coverage. Maximum seventy -five percent (75 %). E. Building Requirements. All newly constructed buildings shall meet the exterior building standards of Section 3, Subd. 4.B.4 of this Ordinance. F. Permitted Uses. In the EBFS District, no building or land shall be used, and no building shall be erected, converted or structurally altered unless otherwise provided herein, except for one or more of the following uses. 1. Governmental and public regulated utilities, buildings, and structures necessary for the health, safety, and general welfare of the City. 2. Commercial greenhouses and nurseries. 3. Liquor sales, on and off sale. 4. Office business — general. Lino Lakes Zoning Ordinance Amended per Ord. No. 21 -03, 04 -05, 09 -06, 11 -08, 04 -09, 01 -10, 04 -10, 02 -11 & 03 -11 draft August 3 Business Districts 7 -42 • • • • 5. Restaurant without drive - through facilities, without outdoor dining or seating. • • 6. Retail business. 7. Mass transit facilities. 8. Shops and offices for contractors including plumbing, heating, glazing, painting, paper hanging, roofing, ventilating, electrical, carpentry, welding, landscaping, excavating, and general contracting, including contractor storage of equipment and building materials if enclosed within a building, but not storage yards. G. Accessory Uses. Subject to applicable provisions of this Ordinance, the following are accessory uses in the GB District: 1. Accessory buildings and structures as regulated by Section 3, Subd. 4.D.10. of this Ordinance. 2. Fences, as regulated by Section 3, Subd. 4.R of this Ordinance. 3. Off - street loading as regulated by Section 3, Subd. 6 of this Ordinance. 4. Off - street parking as regulated by Section 3, Subd. 5 of this Ordinance. 5. Outside services, sales, and equipment rental accessory to the principal use and limited in area to twenty -five (25) percent of the gross floor area of the principal building. 6. Radio and television receiving antennas, satellite dishes, TVROs three (3) meters or Tess in diameter, short -wave dispatching antennas, or those necessary for the operation of electronic equipment including radio receivers, ham radio transmitters and television receivers as regulated by Section 3, Subd. 14 of this Ordinance. 7. Signs, as regulated by the city sign ordinance, Ord. No. 12 -97, as amended, of the City Code. H. Conditional Uses. Subject to applicable provisions of the Ordinance, the following are conditional uses in the GB District: These uses require a conditional use permit based upon the criteria and procedures outlined in Section 2, Subd. 2. of this Ordinance. 1. Automobile and truck repair (including body shops) provided that: Lino Lakes Zoning Ordinance Amended per Ord. No. 21 -03, 04 -05, 09 -06, 11 -08, 04 -09, 01 -10, 04 -10, 02 -11 & 03 -11 draft August 3 Business Districts 7 -43 a. The architectural appearance and functional plan of the building and site shall not be so dissimilar to the existing buildings or area as to cause impairment in property values or constitute a blighting influence. b. The entire area other than occupied by buildings or structures or planting shall be surfaced with bituminous or concrete which will control dust and drainage. The entire area shall have a perimeter curb barrier, a storm water drainage system and is subject to the approval of the City Engineer. c. All buildings shall provide an interior location for trash handling or an enclosed trash receptacle area in conformance with the following: 1) Exterior wall treatment shall be similar and /or complement the principal building. 2) The enclosed trash receptacle area shall be located in the rear or in a side yard which is not abutting a street. 3) The trash enclosure must be in an accessible location for pick up hauling vehicles. 4) The trash enclosure must be fully screened from view of adjacent properties. d. All painting must be conducted in an approved paint booth. All paint booths and all other activities of the operation shall thoroughly control the emission of fumes, dust or other particulated matter so that the use shall be in compliance with the State of Minnesota Pollution Control Standards, Minnesota Regulation APC 1 -15, as amended. e. The emission of odor by a use shall be in compliance with and regulated by the State of Minnesota Pollution Control Standards, Minnesota regulations APC, as amended. All flammable materials includin• li•uids and ra•s shall conform with the applicable provisions of the Minnesota Uniform Fire Code. g. All outside storage shall be prohibited except the storage of customer vehicles waiting for repair. Lino Lakes Zoning Ordinance Amended per Ord. No. 21 -03, 04 -05, 09 -06, 11 -08, 04 -09, 01 -10, 04 -10, 02 -11 & 03 -11 draft August 3 Business Districts 7 -44 • • • • • h. All conditions pertaining to a specific site are subject to change when the Council, upon investigation in relation to a formal request, finds that the general welfare and public betterment can be served by modifying the conditions. 9. Motor Vehicle Sales Lot provided that: a. Outside sales areas are fenced or screened from view of neighboring residential uses or an abutting residential district in compliance with Section 3, Subd. 4.Q of this Ordinance. b. Outside services and sales are associated with a principal building of at least one thousand (1,000) square feet of floor area. c. The entire sales lot and off - street parking area is paved. d. Parking for customers and employees must be provided in compliance with Section 3. Subdivision 5.F.24. e. For automobile sales activities, a minimum of three hundred eighty (380) square feet of sales area per vehicle is provided exclusive of required parking areas. Minimum sales area for all other motor vehicles will be determined by the City Council during the review of the conditional use permit. f. A perimeter curb is provided around the sales /parking lot. g. All lighting shall be hooded and so directed that the light source is not visible from the public right -of -way or from an abutting residence and shall be in compliance with Section 3, Subd. 4.F of this Ordinance. h. Vehicles for sale shall be displayed in an orderly manner. 13. Small en•ine and boat re air .rovided that: a. The lighting shall be accomplished in such a way as to have no direct source of light visible from adjacent land in residential use or from the public right -of -way and shall be in compliance with Section 3, Subd. 4.F of this Ordinance. b. At the boundaries of a residential district, a strip of not Tess than five (5) feet shall be landscaped and screened in compliance with Section 3, Subd. 4.Q of this Ordinance. Lino Lakes Zoning Ordinance Amended per Ord. No. 21 -03, 04 -05, 09 -06, 11 -08, 04 -09, 01 -10, 04 -10, 02 -11 & 03 -11 draft August 3 Business Districts 7 -45 c. Vehicular access points shall create a minimum of conflict with • through traffic movement and shall comply with Section 3, Subd. 5. of this Ordinance and shall be subject to the approval of the City Engineer. d. Provisions are made to control and reduce noise. e. No outside storage, repair or sales except in compliance with Section 7, Subd. 3.G.6 of this Ordinance shall be allowed. f. All conditions pertaining to a specific site are subject to change when the Council, upon investigation in relation to a formal request, finds that the general welfare and public betterment can be served as well or better by modifying the conditions. I. Uses by Administrative Permit. Subject to applicable provisions of this Ordinance, the following uses are allowed by administrative permit, as may be approved by the Zoning Administrator: 1. Personal wireless service antennas as secondary uses as regulated by Section 3, Subd. 14 of this Ordinance. 2. Accessory outdoor dining or seating facilities intended for consumption of food or beverages purchased on site, provided that requirements of Section 3, Subd, 16 are met. This administrative permit may be incorporated into another approval such as but not limited to a site plan, planned unit development, or building permit. 4. Open Air Markets. 5. Transient Merchants. J. Interim Uses. Subject to applicable provisions of this Ordinance, the following are interim uses in the GB District and are governed by Section 2, Subd. 3. of this Ordinance: 1. None. Lino Lakes Zoning Ordinance Amended per Ord. No. 21 -03, 04 -05, 09 -06, 11 -08, 04 -09, 01 -10, 04 -10, 02 -11 & 03 -11 draft August 3 Business Districts 7 -46 • r -sk ,. • • • AGENDA ITEM V D STAFF ORIGINATOR: Jeff Smyser P & Z MEETING DATE: August 10, 2011 TOPIC: CONTINUED PUBLIC HEARING: Conditional Use Permit Amendment Motor Fuel Station, 7997 Lake Drive BACKGROUND The Planning and Zoning Board originally opened this public hearing at the June 2011 meeting. The reason behind this was that the application was incomplete and therefore not ready for a complete review and board action. We have been continuing the hearing each month since then. Staff was scheduled to meet with the applicant's team on August 8 to discuss the project. The intent was to ensure a complete submittal for the September meeting. RECOMMENDATION Continue the public hearing to the September meeting.