HomeMy WebLinkAbout02-28-2005 EDA MinutesApproved 1
CITY OF LINO LAKES 2
ECONOMIC DEVELOPMENT AUTHORITY 3
MINUTES 4
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DATE : February 28, 2005 7
MEMBERS PRESENT : J. Bergeson, D. Carlson, C. Dahl, J. Reinert, D. Stoltz 8
MEMBERS ABSENT : None 9
OTHERS PRESENT : Mary Divine, Gordon Heitke, and Bill Hawkins 10
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CONSIDERATION OF MINUTES OF DECEMBER 20, 2004 12
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EDA Member Dahl moved to approve the December 20, 2004 minutes, as presented. EDA Member 14
Stoltz seconded the motion. Motion passed unanimously. 15
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CONSIDERATION OF ANNUAL APPOINTMENTS 17
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Ms. Divine summarized the Staff report, reviewing the positions held by various Board Members in 19
previous years. 20
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EDA Member Stoltz moved to appoint Jeff Reinert as EDA President; Caroline Dahl as EDA Vice 22
President, and Dan Stoltz as Treasurer. EDA Member Bergeson seconded the motion. 23
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Motion carried unanimously. 25
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EDA Member Carlson asked if Bank of the West had been added to the list, as they discussed at the 27
work session. Ms. Divine indicated the list had been amended to include that Legal Depository. 28
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EDA Member Bergeson moved to approve the EDA Secretary, Assistant Treasurer, Executive 30
Director, Official Newspaper and Legal Depositories as recommended by Staff. EDA Member 31
Carlson seconded the motion. 32
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Motion carried unanimously. 34
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CONSIDERATION OF BUSINESS SUBSIDY FOR SCHWAN’S HOME SERVICES, INC. 36
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Ms. Divine summarized the Staff report, indicating that Staff is recommending approval. 38
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EDA Member Dahl moved to open the public hearing at 6:11 p.m. EDA Member Carlson seconded 40
the motion. 41
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Motion carried unanimously. 43
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EDA MINUTES FEBRUARY 28, 2005
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There being no public input, EDA Member Bergeson moved to close the public hearing at 6:12 p.m. 45
EDA Member Stoltz seconded the motion. 46
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Motion carried unanimously. 48
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A. CONSIDERATION OF RESOLUTION NO. 05-01 APPROVING THE 50
CONTRACT FOR PRIVATE DEVELOPMENT BY AND BETWEEN THE 51
LINO LAKES ECONOMIC DEVELOPMENT AUTHORITY AND SCHWAN’S 52
HOME SERVICE, INC., AND AWARDING SALE OF $91,715 TAX 53
INCREMENT REVENUE NOTE 54
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Ms. Divine summarized the Staff report, stating that Staff is recommending approval. 56
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EDA Member Bergeson moved to adopt Resolution No. 05-01 approving the contract for private 58
development by and between the Lino Lakes Economic Development Authority and Schwan’s Home 59
Service, Inc., and awarding sale of $91,715 Tax Increment Revenue Note. EDA Member Stoltz 60
seconded the motion. 61
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EDA Member Carlson stated she would note no on this resolution. She indicated one reason is they 63
do not know what they will get on this site, or if it will be better than what is there. She stated the 64
second reason is the Comprehensive Plan goal of reducing taxes. 65
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EDA President Reinert asked if there was any way they could know what will go there. Ms. Divine 67
stated the site has not yet been sold, although Schwan’s has some interested parties. She indicated 68
Staff has asked Schwan’s if they would be willing to agree not to sell the site to an automobile use for 69
additional tax incentive and Schwan’s has declined. Ms. Divine stated it is possible Schwan’s would 70
decide not to sell the property if this is denied, or may sell it to a use that is allowed on the site as it is. 71
She indicated in that case someone could use the site for a number of years with the intent of 72
redeveloping it in the future, without changing the building or doing any improvements now. She 73
indicated this is not a huge dollar amount, so she does not know if it is a make it or break it condition 74
for the Schwan’s deal. She stated Schwan’s appears committed to being in Lino Lakes, however 75
since the new site is on the freeway it is costing them more. She indicated that Schwan’s based their 76
application on the fact that the site had extraordinary costs. She stated Schwan’s meets all of the 77
criteria of building standards and TIF standards. She indicated it has been clear that the incentive is 78
based on Lino Lake’s desire to keep a long-standing company in the city, and also a desire to 79
redevelop Lake Drive, which this would allow. She stated Staff or Schwan’s did not agree to have 80
any specific thing on this site but Schwan’s did agree to remove the existing building 81
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EDA Member Carlson expressed concern about a gas station going on the site, and the fact that the 83
EDAC minutes reflect that the realtor has a gas station interested. She stated this is what is guiding 84
her concern that they may not get a better use for the site. 85
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EDA Member Bergeson asked that they keep in mind TIF is taxes they do not currently collect. He 87
stated if they do not approve this he believes there is a high probability Schwan’s will take the project 88
somewhere that they can get TIF. He indicated what the City would then be left with is a lack of 89
EDA MINUTES FEBRUARY 28, 2005
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funds to relocate a business that is in the wrong place, and without the benefit of getting additional 90
taxes after TIF runs out. He stressed they are not taking taxes from current taxpayers, and if they do 91
not do this they are losing the future tax benefit that does flow to the current taxpayers. He indicated 92
that this, along with the agreement to tear down an existing building that brings the City one step 93
closer to realignment of 77th Street and the ultimate redevelopment of both sides of Lake Drive is a 94
benefit to the Lino Lakes taxpayers. 95
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EDA Member Dahl commented that she, too, did not want a gas station there. She indicated they 97
need a sit-down restaurant in that location, and asked if there was anyway they could rezone the site 98
or amend the Comprehensive Plan so a gas station is not permitted. EDA President Reinert indicated 99
that is spot zoning and is illegal. 100
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Community Development Director Grochala noted that a new building will be of higher quality than 102
the existing building as it will be necessary to conform to the current building standards. He stated 103
they are also prohibiting a grandfathered non-conforming use by requiring that the buildings come 104
down. He indicated the least amount of improvement will be a new, better quality building on the site 105
versus the pole building that is there now. 106
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EDA Member Bergeson agreed a gas station is not the first choice they would have for that site, 108
however the other gas station in that area is a facility that pays a lot of taxes and is a nice looking 109
building. He indicated a gas station does not have to be a blight on Town Center, and with the City’s 110
architectural guidelines he believes it would be better than what is there now. 111
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EDA Member Stoltz asked how many employees are at Schwan’s. Ms. Divine stated that with 113
drivers she believes it is currently in the 50 to 60 range. 114
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Motion carried. Vote: 3:2 EDA Members Carlson and Dahl opposed. 116
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ADJOURNMENT 118
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There being no further business, EDA Member Stoltz moved to adjourn. EDA Member Bergeson 120
seconded the motion. Motion passed unanimously. 121
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Meeting adjourned at 6:33 p.m. 123
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Transcribed by: 125
Karen Bucklen 126
TimeSaver Off Site Secretarial, Inc. 127
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