HomeMy WebLinkAbout2005-014 Council ResolutionLINO LAKES CITY COUNCIL
RESOLUTION NO. 05 -14
RESOLUTION APPROVING A BUSINESS SUBSIDY
TO SCHWAN'S HOME SERVICES, INC.
BE IT RESOLVED by the Lino Lakes City Council as follows:
Section 1. Recitals
1.01. The Lino Lakes Economic Development Authority (the "Authority ") approved a tax
increment financing plan (the "Plan ") for the Tax Increment Financing District No. 1 -10 (TIF
District No. 1 -10) on August 11, 2003.
1.02. On August 11, 2003, the City Council of the City of Lino Lakes (the "City ")
approved the Plan.
1.03. On June 23, 2003, the City approved the revised City of Lino Lakes Business
Subsidy Criteria (the "Criteria "), pursuant to Minnesota Statute, sections 116J.993 through
• 116J.995 (the "Business Subsidy Act. ")
1.04. Schwan's Home Services, Inc., (the "Developer ") has requested a business subsidy
through tax increment financing; and
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1.05. The City has considered a business subsidy in the amount of $91,715 for the
construction of a light industrial facility in the Marshan Industrial Park.
1.06. Pursuant to Section 116J.994, subd. 5 of the Business Subsidy Act, the Authority
has on this date held a public hearing on the proposed subsidy to the Developer, following
published notice as required by law, at which hearing all persons wishing to express an opinion
were given an opportunity to do so.
Section 2. Findings.
2.01. It is hereby found and determined that the business subsidy is in the best interest of
the City because it is consistent with and promotes the goals established by the City in adopting
the Criteria.
2.02. It is hereby found and determined that granting the business subsidy to the
Developer furthers the City's general plan of economic development of the community by
encouraging growth and expansion of an industrial park which has not been used to its full
potential, and by facilitating redevelopment of industrial uses on Lake Drive.
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2.03. Pursuant to the Criteria established by the City, it is hereby found and determined
that the business subsidy promotes the following:
1. Encourages economic and commercial diversity within the community;
2. Contributes to the establishment of a critical mass of commercial development
within an area;
3. Promotes redevelopment objectives and removal of blight;
4. Encourages fast growing or other desirable businesses to locate or expand
within the community; and
5. Encourages full utilization of existing or planned infrastructure improvements.
Section 3. Authorization.
3.01. The business subsidy to the Developer as described above is hereby approved.
3.02. Staff and consultants are hereby authorized and directed to take any and all other
actions necessary or convenient to effect the intent of this resolution.
Dated: 2/(
ATTEST:
, 2005.
City Clerk
Mayor
• AGENDA ITEM 6C
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STAFF ORIGINATOR:
DATE:
TOPIC:
Vote Required:
BACKGROUND:
Mary Alice Divine
02/28/05
Resolution No. 05 -14 approving a Business Subsidy
for Schwan's Home Service, Inc.
Simple Majority
Schwan's Home Service, Inc. has made a request for tax increment financing on
to relocate their warehouse /distribution facility that is currently on Lake to the
Marshan Industrial Park.
The company has committed to hiring at least six (6) new employees within two
years at no less than $9.00 per hour, plus benefits.
Based on an analysis of information provided by Schwan's, staff and the city's
TIF consultant recommend providing five years of increment for a total amount of
$91,715.
Business Subsidy Criteria have been established by the city for use in evaluating
a request for a business subsidy. The criteria used in evaluating a request for a
business subsidy include:
1. The business subsidy meets a public purpose, including but not limited to
increasing the tax base.
2. While an increase in the tax base cannot be the sole rounds for granting a
subsidy, the city believes it is a necessary condition for any subsidy.
3. The recipient creates the maximum number of livable wage jobs at the
site.
4. Projects of this type should promote economic and commercial diversity
within the community, contribute to the establishment of a critical mass of
commercial development within an area, promote redevelopment
objectives and removal of blight, or encourage full utilization of existing or
planned infrastructure improvements.
The city's Economic Development Advisory Committee (EDAC) has supported
the project, since it met the necessary subsidy criteria, building standards and
zoning codes.
A public hearing was held earlier tonight during the meeting of the Economic
Development Authority (EDA) and the EDA considered the business subsidy.
The city also considers and acts on any business subsidy that is considered by
the EDA.
• OPTIONS:
1. Approve Resolution 05 -14, approving a business subsidy to Schwan's
Home Service, Inc.
2. Return to staff for further consideration.
3. Do not approve a business subsidy.
RECOMMENDATION:
Option 1
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Certification of Resolution No. 05 -14
Councilmember Stoltz introduced Resolution No. 05 -14 at the regularly scheduled meeting of
the Lino Lakes City Council held on February 28, 2005, and moved its adoption.
The motion for adoption of the foregoing resolution was duly seconded by
Councilmember Reinert and upon vote being taken thereon, the following voted in favor thereof:
Reinert, Dahl, Bergeson, Carlson and Stoltz.
The following voted against same:
None.
Whereupon said resolution was declared passed and adopted.
STATE OF MINNESOTA )
COUNTY OF ANOKA )
CITY OF LINO LAKES )
I, the undersigned, being the duly qualified City Clerk of the City of Lino Lakes, Minnesota, do
hereby certify that the attached document is a true copy of Resolution No. 05 -14 with the
original thereof on file in the City Clerk's office, and the same is a full, true and complete copy
insofar as the same relates to:
CERTIFICATION OF RESOLUTION NO. 05-14
APPROVING A BUSINESS SUBSIDY
TO SCHWAN'S HOME SERVICES, INC.
Witness my hand as said City Clerk and the Corporate Seal of the City this TH day of
, 2005.
Ann J. Blair
(SEAL)
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