Loading...
HomeMy WebLinkAbout12-17-2001 EDA Minutes 1 CITY OF LINO LAKES ECONOMIC DEVELOPMENT AUTHORITY MINUTES DATE : December 17, 2001 MEMBERS PRESENT : J. Bergeson, D. Carlson, C. Dahl, J. O’Donnell, J. Reinert MEMBERS ABSENT : None OTHERS PRESENT : Ann Blair, Mary Divine, and Linda Waite Smith and Dan Tesch CONSIDERATION OF MINUTES OF MONDAY, MARCH 12, 2001 EDA Member Carlson moved to approve the March 12, 2001, minutes, as presented. EDA Member O’Donnell seconded the motion. Motion passed unanimously. CONSIDERATION OF RESOLUTION NO. 01-03 APPROVING THE ELIMINATION OF PARCELS FROM TAX INCREMENT FINANCING DISTRICT NO. 1-5 WITHIN DEVELOPMENT DISTRICT NO. 1 Ms. Divine advised in 1992 the Economic Development Authority created Tax Increment Financing District No. 1-6 for the purpose of providing TIF assistance for the Cottages of Willow Ponds senior housing. The original intent of the developer was to construct 98 units of rental housing with maximum income limitations on the parcel. Ms. Divine indicated that the project was later downsized to 48 units, and the developer sold off some of the parcel for 10 single-family lots. In the process of gathering annual documentation for income compliance, it was decided that that those lots should have been removed from the District since there is no documentation that income limitations were applied to the single-family homes. Ms. Divine stated that Cottage Homesteads began receiving increment in 1997 and has been receiving the benefit of those homes being in the District. This Resolution removes the parcels from the District and directs staff to notify Anoka County of the reduction of the size of the District and return the increment from the District up to an amount of $50,525. Anoka County will then redistribute it to the City, County and School District. Payments to Cottage Homesteads will be withheld until that increment is recovered. Ms. Divine advised it is recommended that the City Council adopt Resolution No. 01-03 Approving the Elimination of Parcels from TIF District No. 1-5. 2 EDA Member Carlson expressed her appreciation the City staff for their diligence in this matter. EDA Member Carlson moved to approve Resolution No. 01 – 03. EDA Member Reinert seconded the motion. Motion passed unanimously. CONSIDERATION OF TERMINATION AGREEMENT WITH H&L MESABI Ms. Divine advised in March 2001 the Economic Development Authority passed a Resolution declaring H&L Mesabi in default on a Development Agreement and Assessment Agreement it had entered into with the Authority. The company had already purchased three acres of property in the Apollo Business Park before making a decision not to build its new facility. Ms. Divine indicated according to State Statute, all parties that enter into an Assessment Agreement must terminate the agreement by “mutual consent.” Mr. Bernard Carey, President of H&L Mesabi, was advised that he must take action to terminate the Assessment Agreement with the Economic Development Authority, the School District and Anoka County, or pay taxes on a building that did not exist. Ms. Divine advised Mr. Carey is now planning to sell the three acres of land, and as a condition of sale, his attorney is requesting a Termination Agreement be executed so that when signed by Mr. Carey, there will be evidence of mutual consent. Ms. Divine stated that the agreement is consistent with the Resolution adopted in March, but the Economic Development Authority never explicitly authorized the President and Executive Director to sign such an agreement. This action makes that authorization. Ms. Divine advised it is recommended that the City Council approve the execution of a Termination Agreement with H&L Mesabi. She indicated that approval of the Termination Agreement will be considered by the Council under the Consent Agenda portion of this evening’s regular meeting. EDA President Bergeson recommended that consideration of this Termination Agreement be removed from the Consent Agenda during the regular meeting of the City Council this evening and voted on separately so the record will show the Council having taken specific action on this issue. EDA Member Dahl moved to approve the execution of a Termination Agreement with H&L Mesabi. EDA Member O’Donnell seconded the motion. Motion passed unanimously. 3 ADJOURNMENT EDA Member O’Donnell moved to adjourn. EDA Member Carlson seconded the motion. Motion passed unanimously. Meeting adjourned at 6:07 p.m. Transcribed by: Lori Rolfson TimeSaver Off Site Secretarial, Inc.