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HomeMy WebLinkAbout11/18/1993 Council Minutes (2)1 COUNCIL WORK SESSION NOVEMBER 18, 1993 CITY OF LINO LAKES COUNCIL MINUTES DATE TIME STARTED s TIME ENDED MEMBERS PRESENT: MEMBERS ABSENT November 18 1993 6:40 P.M. 7:50 P.M. Reinert, Kuether, Elliott, Bergeson Neal Staff members present: City Administrator, Randy Schumacher; Economic Development Authority Advisory Board (EDAAB) Chairman, Brian Wessel and Clerk -Treasurer Marilyn Anderson. Consideration of Greenhaven Press, Inc., Tax Increment Financing Proposal Mr. Wessel explained that a resolution of support is being prepared for consideration at the next City Council meeting for Greenhaven Press, Inc. A Tax Increment Financing (TIF) proposal will be outlined in the resolution. Mr. Wessel explained that Greenhaven Press, Inc. is proposing to build a facility across the pond from Emtech, Inc. on 2.1 acres of land. Ground breaking is scheduled for approximately December 1, 1993. The Planning and Zoning Board and the Economic Development Authority Advisory Board have reviewed and approved the proposal. The current proposal for development of Greenhaven Press, Inc. is as follows: construction will be completed on phase I which is approximately 16,400 square feet. Phase II will be constructed in about two (2) years doubling the size of the building. The building will be a distribution center for school materials and books. The cost of the entire package will be approximately $750,000.00 including about $675,000.00 for building construction, land and other "hard" costs. The cost of the land is approximately 90 cents per square foot. Greenhaven Press, Inc. looked at five (5) other locations in other cities before selecting Lino Lakes. The proposal is for a "pay as you go" TIF package up to $80,000.00. Greenhaven Press, Inc. originally asked for a larger dollar amount. An incentive is being considered that would PAGE 1 295 296 COUNCIL WORK SESSION NOVEMBER 18, 1993 encourage Greenhaven Press, Inc. to build phase II immediately. Mayor Reinert asked Mr. Wessel to consider a presentation for the Council meeting on Monday that is simple and easy to understand so that the public will not think that the City is "giving away the store". He asked that the public be informed that the proposal is for a "pay as you go" TIF consideration. Mr. Wessel said he will do this and also will indicate that the City will stay competitive with the "pay as you go" TIF financing. 1994 BUDGET Mr. Schumacher gave the City Council the updated 1994 Budget. This budget represents a zero increase in property taxes and specifically addresses economic development, space needs and Police Department needs. He also gave the City Council a summary of the proposed changes to the previous draft of the 1994 Budget. Mayor Reinert asked what happens to police badges when they become obsolete. Mr. Schumacher explained that the police officers may buy them or they are turned back to the department. Economic Development - Mr. Schumacher explained that this proposed budget includes Mr. Wessel as a contracted employee with a salary of $50,000.00 per year and a benefit package that does not include health coverage. Park Department - The proposed budget includes the remodeling of the Forjay building into office space for the Parks and Recreation Department as well as an office for the Solid Waste Coordinator. Mr. Schumacher was asked to give the City Council a recommendation regarding paving the parking lot and how it will be funded. Another work Council work session will be set at the November 22, 1993 Council meeting to finalize the 1994 Budget. Agenda - All items on the draft agenda were considered. The City Council discussed whether there should be an update of the boat launch situation. Mr. Schumacher explained since the matter is in litigation, public discussion should not take place. Mayor Reinert noted that two (2) items were discussed at the last Centennial Fire Commission meeting. The first item concerned a increase in pension benefits from $1,200.00 to $2,000.00. The second item concerned the purchase of two (2) pieces of fire fighting equipment. The Centennial Fire Department has enough money to purchase the equipment. This matter will be placed on the November 22, 1993 agenda. Mr. Keinath, Circle Pines City PAGE 2 1 1 29` COUNCIL WORK SESSION NOVEMBER 18, 1993 Administrator will forward a letter to Mr. Schumacher explaining these two (2) matters. Council Member Bergeson asked if there is any money left in the 1993 Budget. If there is, he suggested that the City start remodeling the Forjay building at this time rather than wait for 1994. The public hearing regarding the improvement of the Lake Drive (County Road #23)/Highway 49 intersection was discussed. The public hearing will be held at the November 22, 1993 City Council meeting. Mr. Schumacher explained that he is meeting with Mr. Reiling tomorrow to discuss the cost of Mr. Reiling's fair share of the improvement. At this time Mr. Reiling is objecting to the assessment but is in favor of the improvement. If the project is to proceed on schedule, the City Council will have to make a decision to order plans and specification at the next Council meeting. The cost of the plans and specifications is about $96,000.00. Also if the City does not proceed on schedule, the City may loose the state and county funding. This is a concern if Mr. Reiling petitions against the assessments. Mr. Schumacher explained that if the City decides to proceed and orders plans and specifications and Mr. Reiling does petition against the assessment, funding of the City portion of the improvement could from other sources such as MSA funds. Mr. Schumacher noted that he has set a Council work session for 6:00 P.M., Monday, November 22, 1993 to discuss this matter so that the City Council will be fully informed prior to the public hearing that will be held during the regular Council meeting. The work session adjourned at 7:50 P.M. These minutes were considered, corrected and approved at a regular Council meeting held on January 24, 1994. Marilyn G. Anderson, Vernon F. Reinert, Clerk -Treasurer Mayor PAGE 3 1 1 1