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HomeMy WebLinkAbout03-12-2001 EDA Minutes 1 APPROVED CITY OF LINO LAKES ECONOMIC DEVELOPMENT AUTHORITY MINUTES DATE : March 12, 2001 MEMBERS PRESENT : J. Bergeson, D. Carlson, C. Dahl, J. O’Donnell, J. Reinert MEMBERS ABSENT : None OTHERS PRESENT : Mary Divine and Linda Waite Smith CONSIDERATION OF MINUTES OF MONDAY, NOVEMBER 13, 2000 EDA Member O’Donnell moved to approve the November 13, 2000, minutes, as presented. EDA Member Carlson seconded the motion. Motion passed unanimously. CONSIDERATION OF ANNUAL APPOINTMENTS EDA Member Carlson moved to appoint the following: EDA President: John Bergeson EDA Vice President: Caroline Dahl EDA Treasurer: Donna Carlson EDA Secretary: Economic Development Assistant EDA Assistant Treasurer: City Clerk EDA Executive Director: City Administrator. EDA Member Dahl seconded the motion. Motion passed unanimously. EDA member O’Donnell moved to appoint the Quad Community Press as the EDA official newspaper. EDA Member Dahl seconded the motion. Motion passed unanimously. EDA Member Carlson moved to appoint the following as EDA legal depositories: Norwest Bank, First Bank NA, Firstar Bank, Merrill Lynch, Dain Bosworth, Juran & Moody, Prudential Bache, Lino Lakes State Bank, Lakeland National Bank, and League of Minnesota Cities 4M Fund. EDA Member O’Donnell seconded the motion. Motion passed unanimously. PUBLIC HEARING: PROPOSED BUSINESS SUBSIDY TO SUMMIT FIRE PROTECTION 2 Ms. Divine advised Summit Fire Protection, a company that designs, manufactures and installs fire suppression systems, has requested tax increment financing (TIF) assistance in the amount of $217,059 for the purpose of constructing a 30,000 square foot facility in the Apollo Business Center. Summit currently is the second largest fire protection company in Minnesota, and currently has location in Savage, Roseville, Rochester and Fargo. The company plans to consolidate the Roseville and Savage locations into this new Lino Lakes facility. The company will employ approximately 60 at this new facility, including management, designers, sales positions and fabricators. The company has committed to hiring at least eight new employees within two years at no less than $22.00 per hour, plus benefits. A public hearing is required by statue when the EDA is considering granting a subsidy that exceeds $100,000. EDA President Bergeson opened the public hearing at 6:05 p.m. Ms. Divine introduced Mr. Quint Rubald, President of Summit Fire Protection, Mr. Frank Zelley, Construction Manager, and Mr. Mark Moore, Representative for Mr. Uhde. EDA Member Dahl moved to close the public hearing at 6:06 p.m. EDA Member Carlson seconded the motion. Motion passed unanimously. CONSIDERATION OF RESOLUTION NO. 01 – 01, APPROVING A BUSINESS SUBSIDY FOR SUMMIT FIRE PROTECTION Ms. Divine advised this resolution recognizes that Summit Fire Protections meets one or more of the goals and objectives outlined by the EDA in its business subsidy criteria. Those goals include: 1. Light industrial projects in the Apollo Business Center are consistent with the City’s comprehensive plan designed to encourage economic growth and diversity. 2. As part of the Lino Lakes Town Center, the projects moving into the park play a significant role in providing a critical mass of development to support retail and service businesses in the commercial center. 3. This project is also consistent with the City’s need to recover the return on its investment in the existing infrastructure within the park. Ms. Divine advised this project will be receiving site and building play review later tonight by the City Council. It is recommended that approval of the business subsidy be contingent upon final approval of the project by the City Council. EDA Member O’Donnell inquired about the amount of time that the TIF will be repaid. Ms. Divine advised the estimated total payback is in 2007. 3 EDA Member Carlson clarified that the assessments being removed are for the road and sewer. EDA Member O’Donnell moved to approve Resolution No. 01 – 01, contingent upon final approval of the project by the City Council. EDA Member Reinert seconded the motion. Motion passed unanimously. CONSIDERATION OF CONTRACT FOR PRIVATE DEVELOPMENT BETWEEN LINO LAKES EDA AND SUMMIT FIRE PROTECTION Ms. Divine advised the development contract outlines the conditions for public assistance to Summit Fire Protection for the construction of a 30,076 square foot facility on five acres on the G.M. Development property in the Apollo Business Center. The proposed facility will have a minimum market value of $1,615,000 for an estimated total of $73,000 in annual taxes. This agreement is based on a total TIF subsidy of $217,059. It removes the assessments of $87,780 upfront. The remaining pay-as-you-go TIF amounts to $129,279 for assistance with land write down and return of escrow. The City will be reimbursed first for the assessments from the available tax increment, and then the developer will receive the remaining increment. Estimated total payback is in 2007. This project is in TIF District 1-9, which requires a 10% local contribution ($23,496). It is the City’s intent to apply the interest lost on the assessments that were deferred until development occurred as the local contribution. EDA Member Reinert moved to approve the contract for private development between Lino Lakes EDA and Summit Fire Protection, contingent upon final approval of the project by the City Council. EDA Member Dahl seconded the motion. Motion passed unanimously. CONSIDERATION OF RESOLUTION NO. 01 – 02, DECLARING DEFAULT AND TERMINATING DEVELOPMENT AGREEMENT, H&L MESABI Ms. Divine advised on January 24, 2000, the EDA approved a Contract for Private Development with H&L Mesabi for $110,200. The contract required H&L Mesabi to complete the construction of its facility by December 31, 2000. Since the approval of that agreement, the company, which is based in Hibbing, Minnesota, had some setbacks that changed the outlook for the construction of this metro area facility. Because H&L Mesabi has not begun construction of the building in the Apollo Business Center, the company is in default of its development agreement. The president of the company was sent a notification that he had 30 days to cure the default by providing evidence of his intent to complete the facility. He selected not to cure the default. 4 EDA Member O’Donnell stated the City had agreed to provide TIF. He asked if there has been any waiving of assessments to date. Ms. Divine advised the City Council will be terminating the assessment agreement. Terminating the development agreement will not carry any penalties for the city. An escrow fund did provide for all of the City’s expenses. EDA Member Dahl moved to adopt Resolution No. 01 – 02, as presented. EDA Member O’Donnell seconded the motion. Motion passed unanimously. ADJOURNMENT EDA Member Dahl moved to adjourn. EDA Member O’Donnell seconded the motion. Motion passed unanimously. Meeting adjourned at 6:15 p.m. Transcribed by: Kim Points TimeSaver Off Site Secretarial, Inc.