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HomeMy WebLinkAbout07/10/1985 Council Minutes05( `SPECIAL JOINT MEE`J I N'; July 10, 1985 Mayor Benson called to order the special joint meeting of the City Council, Economic Development Committee, Park Board and Planning and Zoning Board at 5:30 F.M., Wednesday, July 10, 1985. The following persons were in attendance: Council: Benson, Marier, Kulaszewicz, Reinert Economic Development Committee: Jim Shafer, Harvey Karth,, Arnie Kelling, Linda Carlson Planning and Zoning Board: McLean, Doocy, Cody, Ostlie, Prokop Park Board: Ken Johnson, Ray Johnson, Lindy, Sacco, Scherer, Nissen, Flannery Others: Schumacher, City Administrator; Kluegel, Building Official; Joe Torgerson, potential community business- man; Dan Wilson, Wilson Management Services; Foster, Secretary. Zack Johnson, Planner arrived at 5:45 P.M. Mayor Benson stated that the purpose of this meeting was for the Park Board and the Planning and Zoning Board to communicate their concerns and responsibilities with regard to park and public land dediciations; communications between all the committees with regard to the comprehensive land use plan review; communications between all the committees with regard to economic development and tax increment financing within the community. All attendees introduced themselves and stated the board on which they serve. ECONOMIC DEVELOPMENT /TAX INCREMENT FINANCING Mayor Benson introduced this evening's guest, Mr. Dan Wilson of Wilson Management Services, who had been requested to attend to introduce all in attendance to the idea of tax increment financing and answer any questions on that subject. Mr. Wilson stated that he had been in the tax increment financing business for approximately 16 years, generally working with small communities. He explained the basic workings of tax increment financing as follows: In order to maintain integrity and high standards in welcoming new business, small communities are urged to take a leadership role in economic development, rather than dealing with after - the -fact situations. Economic development is very time - consuming and should be considered an investment of the City. If considered an expense, it will never get off the ground. A tax increment financing program would prepare the City for dealing with developers when they come before the City with proposals. A particular area within the City should be designated as conducive to possible tax increment financing. This type of financing could only be considered within this area, however, each individual proposal within this area could be approved or denied. 1 1 SPECIAL JOINT MEETIN 10, 1985 Page Two Tax increment financing is a means of financing to assemble land to prepare it for commercial /industrial activity. Financing can apply to land, roads, soil corrections and utilities, but not to buildings. The City legally would have to be able to honestly state that the business would not locate within its boundaries without the tax increment financing. For tax purposes, the City would freeze the undeveloped assessed valuation, and then sell bonds to help pay for the development. Taxes received for the developed business - less the taxes due on assessed valuation before development - go directly to the City as a means of repaying bond debts. Taxes due on the assessed valuation before development would go to the County and be dispersed in the usual fashion. The benefit to the citizens in the City would be - the busi- ness operating within the City; the jobs the business would provide; and (after repayment of bond debts) higher taxes collected on the developed business. Mr. Karth explained that this discussion was prompted by the Economic Development Committee because several interested parties have asked about opportunities in Lino Lakes. Mr. Karth feels that the surrounding communities' businesses are beginning to spill over into Lino Lakes. The surrounding communities have tax increment financing programs. New businesses looking for opportunities in Lino Lakes find that they must take the high financial risk of developing from the ground up because there are no existing commercial areas from which to rent. Mr. Wilson mentioned that the media occassionally attempts to create a bad image of tax increment financing. Most often citi- zens do not understand the process and Mr. Wilson felt that the City leaders should clearly understand and become involved. A tax increment financing program can be put into place without the City leaders' involvement, which will be less costly and quicker; however, he encourages City leaders' involvement. Mayor Benson reminded the group that the City has not begun a tax increment financing program or made any steps in that direc- tion to this point. The purpose of this meeting was to introduce the idea to those in attendance and get any feedback. Mr. Wilson thanked the group for the opportunity to introduce tax increment financing to the City. PARK AND PUBLIC LAND DEDICATION Since this concern was raised by the Planning and Zoning Board, Mayor Benson gave the floor to Mr. McLean, Chairman of the Planning and Zoning Board. 051 052 , SPECIAL JOINT 'iEL i'IN' July 10, 1985 Page Three Mr. McLean explained the Planning and Zoning Board is concerned that the Park Board has not designated land for park dedication in the recent past, and has opted to receive money for park use. Particularly, in the eastern portion of the City, where the P 5 Z feels development is beginning to happen, there is no desig- nated land for park or public use. The current comprehensive land use plan calls for future park /public land in that area of the City. Recently, several land splits, etc. have taken place in the area, and the P 8 Z feels that the time to plan for park /public land is.now. When the Park Board reviewed these land splits, etc. they chose to take money rather than land. Ken Johnson stated he was aware of the future need, but presently he felt that land is planned for agriculture use. Ray Johnson stated that he felt that the City presently has sev- eral small undeveloped sites dedicated for park use. The City does not have the money to develop the sites and to maintain the sites is expensive. He felt that designating any further such sites would be a further financial drain. He felt that 10% of small land splits is not enough for a decent park and too much of a burden on small individual land owners who wish to split. He felt that the new park dedication policy which spells out $160 per housing unit is more equitable for the small individual land owner. It was mentioned that the land could be bought now quite inex- pensively because it is agricultural with no improvements, so buying it now would be a wise financial move. A suggestion was made to sell the small undeveloped sites within the City to pay for a decent park. The group was reminded, however, that once land is dedicated for park purposes, the City cannot legally sell it. • Mayor Benson suggested that since the Park Board has now become aware of the concerns of the Planning and Zoning Board, that they take the next step in the direction of reserving a particular spot for park or public use in the eastern portion of the City. COMPREHENSIVE LAND USE PLAN Mr. McLean explained that the P 8 Z Board feels that the compre- hensive plan should be reviewed and the proper steps taken to update the plan and related ordinance with regard to thoroughfare patterns, possible rezoning of portions of the City, dish antennaes, earth homes, solar heat, and future park and public use land. Mr. Schumacher reminded the group that ordinance changes relating to earth homes, dish antennaes, solar heat, etc. could be taken care of quite inexpensively. Comprehensive plan reviews for thoroughfares, rezones, etc. would require the expertise of a professional planner. Currently the budget has no allocation for these services. Mr. Zack Johnson has stated that it would cost from $4,000 to $6,000 to do such comprehensive plan review, 1 1 SPECIAL JOINT =TIN_: July 10, 1985 Page Four depending on the specific shopping list. It was decided that the Planning and Zoning Board should make such a shopping list and the City can then submit this list, with proper priorities, to the Planner for a quote. Mr. Zack Johnson explained at this time that he is no longer associated with the company he was associated with at the time the City entered into a contract for planning services. This company made a decision to get out of the planning end of their business. Mr. Johnson is now associated with a new company which has the capability of offering the same services and staff. The old company has suggested that the City retain Mr. Johnson's planning services through his new association. Mr. Johnson is willing to continue working with the City exactly as he has in the past few months if the City wishes to continue. If so, a new contract will need to be drawn up - the old contract is cancelled. The City Council will take appropriate action in this matter. The meeting was adjourned at 7:10 P.M. These minutes were considered, corrected and approved by a regular Council meeting on July 22, 1985. Benjamin G, Benson, ayor Marilyn G. Anderson, City Clerk 053