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HomeMy WebLinkAbout06-23-2003 EDA MinutesCITY OF LINO LAKES 1 ECONOMIC DEVELOPMENT AUTHORITY 2 MINUTES 3 4 5 DATE : June 23, 2003 6 MEMBERS PRESENT : J. Bergeson, D. Carlson, C. Dahl, J. O'Donnell, J. Reinert 7 MEMBERS ABSENT : None 8 OTHERS PRESENT : Mary Divine, Linda Waite Smith 9 10 CONSIDERATION OF MINUTES OF APRIL 8, 2002 11 12 EDA Member Dahl moved to approve the April 8, 2002 minutes, as presented. EDA Member 13 O'Donnell seconded the motion. Motion passed unanimously. 14 15 CONSIDERATION OF ANNUAL APPOINTMENTS 16 17 A. EDA Officers: President, Vice President, Treasurer, Assistant Treasurer, Executive 18 Director, and Secretary 19 20 Ms. Divine advised according to Lino Lakes EDA by-laws, the EDA selects a President, Vice 21 President, Secretary, Treasurer and Assistant Treasurer each year. The offices of President, Vice 22 President and Treasurer must be held by EDA members. In 2002 the officers were as follows: 23 24 President: Donna Carlson 25 Vice President: Jeff O’Donnell 26 Treasurer: Caroline Dahl 27 Secretary: Economic Development Assistant 28 Assistant Treasurer: Finance Director 29 Executive Director: City Administrator 30 31 EDA Member Dahl moved to maintain all positions as currently elected and assigned. EDA Member 32 Bergeson seconded the motion. Motion passed unanimously. 33 34 B. Official Newspaper 35 36 Ms. Divine advised the EDA is required to publish public notices regarding its meetings. In the past, 37 the EDA has designated the official newspaper to be the same as the City’s official newspaper. She 38 advised staff is recommending appointment of the Quad Community Press as the EDA official 39 newspaper. 40 41 EDA Member Reinert moved to appoint the Quad Community Press as the EDA official newspaper. 42 EDA Member Dahl seconded the motion. Motion passed unanimously. 43 44 EDA MINUTES JUNE 23, 2003 DRAFT 2 C. Official Depositories 45 46 Ms. Divine advised the list of legal depositories approved for 2002 by the City Council were as 47 follows: 48 49 Wells Fargo Prudential Bache 50 First Bank, NA Community National Bank 51 US Bank Merrill Lynch 52 Dain Rauscher Solomon, Smith, Barney 53 Lino Lakes State Bank LMC 4M Fund 54 Others as needed 55 56 Ms. Divine indicated these depositories are used for checking, savings and investing City dollars. On 57 occasion the EDA and the City have financial transactions that will require the EDA to have 58 designated legal depositories. She advised that staff recommends approval of the list of legal 59 depositories. 60 61 EDA Member O'Donnell moved to approve the list of legal depositories, as approved for 2003 by the 62 City Council. EDA Member Dahl seconded the motion. Motion passed unanimously. 63 64 CONSIDERATION OF RESOLUTION NO. 03-01, ADOPTING REVISED BUSINESS 65 SUBSIDY CRITERIA 66 67 Ms. Divine advised that the Business Subsidy Act became effective on August 1, 1999, and required 68 grantors to adopt business subsidy criteria prior to granting business subsidies. She explained that 69 recognizing not all subsidies were for the purpose of creating jobs, the Minnesota Legislature 70 amended the Act in 2000, but delayed the effective date of those changes until 2003. She reviewed 71 the changes being proposed. 72 73 EDA President Carlson asked about the ability for businesses to move before five years has passed. 74 Ms. Divine indicated it was a requirement that all businesses stay in the jurisdiction for five years, 75 however the law has been revised to say that the grantor, being the City, can allow them to leave 76 early. 77 78 EDA President Carlson stated if businesses are required to stay five years it gives the City the ability 79 to regain some taxes in reimbursement for the subsidy, and she questioned why they would want to 80 allow businesses to leave before the five years was up. Ms. Divine indicated you usually would not 81 want to, and the City can require in their agreement that the business stay for five years, but this gives 82 the City an out if for some reason they feel it best to allow the business to leave. 83 84 EDA President Carlson asked if this could be covered in the previous item concerning the ability to 85 deviate from the criteria. Ms. Divine stated she would be more comfortable leaving the specific 86 language received from the Legislature. 87 88 EDA MINUTES JUNE 23, 2003 DRAFT 3 EDA President Carlson noted that the language concerning the five-year requirement has been added 89 to Section 2.03 and has been struck from Section 5 as previously written. She asked if that change 90 was for a specific reason, and if they could instead have the language in both sections. Ms. Divine 91 indicated Section 2.03 refers to specific Development Agreements. She noted any subsidy granted by 92 the EDA must also be approved by the City Council. She believes the language change was just the 93 TIFAttorney’s way of making if specific. She added that in the past, the Development Agreement 94 was only approved by the EDA, and the actual subsidy was approved by both entities. She stated if 95 members prefer, the language can include that both entities approve the five-year requirement. 96 97 EDA Member Dahl stated she would be more comfortable if the language was in both sections. EDA 98 Member Bergeson asked where the strikeouts in the proposed criteria came to be. Ms. Divine stated 99 they were edited by the city’s TIF Attorney. EDA Member Bergeson suggested they put the language 100 in both sections subject to consulting with the TIF Attorney. 101 102 EDA Member Bergeson asked about zero job creation. Ms. Divine indicated that this would be 103 reviewed on a case-by-case basis. She advised each time the City gives a subsidy they have to decide 104 why they are doing it, whether to improve the tax base, utilize existing infrastructure, implement the 105 Comprehensive Plan, or wage and job goals. She stated some cities were having trouble justifying the 106 job goals, when the real reason for the subsidy may have been for other reasons, such as improving 107 the tax base. This gives cities the ability to have wage and job goals, but does not require that they 108 have them if the main goal is some other reason. 109 110 EDA Member Reinert moved to open the public hearing at 6:23 p.m. EDA Member Dahl seconded 111 the motion. Motion carried unanimously. 112 113 EDA Member Dahl moved to close the public hearing at 6:23 p.m. EDA Member O'Donnell 114 seconded the motion. Motion carried unanimously. 115 116 EDA Member Bergeson moved to adopt Resolution No. 03-01 approving the revised Business 117 Subsidy Criteria as outlined by staff, restoring the previously struck-out portion of Section 5.01. 118 EDA Member O'Donnell seconded the motion. 119 120 EDA Member Dahl asked if it was correct that the number of new jobs could start at zero, but could 121 be a requirement as in the past. Ms. Divine indicated that was correct, the City can choose. EDA 122 Member Reinert stated this does not take away any of the City’s authority, it only gives them more 123 options. 124 125 EDA President Carlson noted she has been in favor of wage and job goals since before she was on the 126 City Council, and she also has a concern about businesses not staying in the City for five years after 127 receiving a subsidy. 128 129 EDA Member Dahl asked for more explanation about the ability of a business to move before the five 130 years was over. Ms. Divine stated if the EDA holds a public hearing and decides they want to release 131 a business from that requirement, they have the authority to do so. She indicated it gives the EDA the 132 option of releasing the business from its agreement if it seems a reasonable thing to do. 133 EDA MINUTES JUNE 23, 2003 DRAFT 4 134 EDA Member Dahl asked if the language could say the business can move but they are still 135 responsible for the subsidy. EDA Member Dahl stated it seems like they are letting the business go if 136 they say they cannot pay and they want to leave. Ms. Divine indicated that the city does not continue 137 to pay a subsidy after the business has left. Ms. Divine indicated the City could find the business in 138 default of its agreement if the business left the city. 139 140 EDA Member Reinert commented that this change is an option for the EDA, not a loophole for 141 businesses. He noted the EDA would have to release the business from their obligation, and at that 142 time the EDA could put a stipulation on the release. Ms. Divine suggested that in the Development 143 Agreement they could put such a stipulation. She noted this is general criteria of what is allowed by 144 statute. 145 146 EDA Member Bergeson stated he would speak in favor of leaving the language as drafted, since it 147 mirrors what is in the law, and there may be cases where the City would want to allow movement. 148 For instance, if there is a small business on a large parcel that would be better suited for the 149 community with a different use; the City may want the option to allow the business to move. 150 151 EDA Member O'Donnell concurred, noting this allows the City flexibility. 152 153 Motion carried. EDA President Carlson opposed. 154 155 CONSIDERATION OF RESOLUTION 03-02, EXTENDING THE COMPLIANCE DATE 156 FOR THE WAGE AND JOB GOALS FOR MARMON/KEYSTONE 157 158 Ms. Divine summarized her report, indicating the EDA may, after a public hearing, extend the 159 compliance date by up to one year, as requested. If Marmon/Keystone is not given an extension, the 160 tax increment financing would be withheld according to a formula that is based on a pro rata share of 161 the number of jobs created versus the number required. 162 163 EDA Member Dahl asked how many extensions are allowed if the goal is not met by June 1, 2004. 164 Ms. Divine stated this is the only extension that could be granted. She indicated if the goal is not met 165 by then, the Development Agreement states options the EDA could take at that time. 166 167 EDA Member Dahl asked if Marmon/Keystone is aware they would be saving themselves $175,000 if 168 they met the goal. Ms. Divine indicated she has had that discussion with them. 169 170 EDA Member Reinert moved to open the public hearing at 6:37 p.m. EDA Member O'Donnell 171 seconded the motion. Motion carried unanimously. 172 173 EDA Member Dahl moved to close the public hearing at 6:37 p.m. EDA Member O'Donnell 174 seconded the motion. Motion carried unanimously. 175 176 EDA MINUTES JUNE 23, 2003 DRAFT 5 EDA Member O'Donnell moved to adopt Resolution No. 03-02 extending the Compliance Date for 177 Wage and Job Goals for Marmon/Keystone for one year. EDA Member Bergeson seconded the 178 motion. Motion carried unanimously. 179 180 CONSIDERATION OF RESOLUTION NO. 03-03, AUTHORIZING THE PREPARATION 181 OF A PLAN TO MODIFY DEVELOPMENT DISTRICT NO. 1 AND TO ESTABLISH TAX 182 INCREMENT FINANCING DISTRICT NO. 1-10 (LAKES BUSINESS PARK) 183 184 Ms. Divine summarized the staff report, explaining in August they will have more details of the plan 185 and will have a public hearing and consideration by the City Council, and the action tonight just 186 allows those steps to start. 187 188 EDA Member Reinert stated he wants it on record that there is residential area surrounding this 189 development, and when allowing new districts to go forward, they need to keep in mind ways of 190 buffering the residential areas from these new development areas. 191 192 EDA President Carlson asked if they authorized the preparation of the plan and establish the TIF 193 district, will it come back to the EDA. Ms. Divine stated it would, after Planning and Zoning reviews 194 it, it will come back in August for a public hearing and action. 195 196 EDA President Carlson stated she asked this question because there is not currently enough 197 information to establish a need for funding. Ms. Divine stated anything having to do with a request 198 for TIF will not come for approval until more is known. She added that this was approval of the 199 creation of a district, not an approval of a subsidy. She noted there will be improvements to Lake 200 Drive that will be for the general good of the city, and may not be covered by the developer, and that 201 generation of increment can help pay for improvements to Lake Drive and the bridge. 202 203 EDA President Carlson stated she had a question from a commercial owner asking if the County 204 would be tearing up the entire Lake Drive/35W bridge when they reconstruct, as it would be a 205 detriment to business. Ms. Divine indicated for now that reconstruction has been removed from the 206 County plans, but when they are ready to do it there is the possibility they may not have to completely 207 close the bridge. 208 209 EDA Member Reinert moved to adopt Resolution No. 03-03 authorizing preparation of a plan to 210 modify Development District No. 1 and to establish TIF District No. 1-10. EDA Member Bergeson 211 seconded the motion. Motion carried unanimously. 212 213 CONSIDERATION OF POWER LINE EASEMENT TO NORTHERN STATES POWER 214 COMPANY 215 216 Ms. Divine summarized her report, noting that Northern States Power Company has agreed to define 217 the limits of their easement over the property. 218 219 EDA Member Bergeson moved to approve the Electric Distribution Easement from Northern States 220 Power Company. EDA Member Dahl seconded the motion. Motion passed unanimously. 221 EDA MINUTES JUNE 23, 2003 DRAFT 6 222 ADJOURNMENT 223 224 There being no further business, EDA Member Dahl moved to adjourn. EDA Member O'Donnell 225 seconded the motion. Motion passed unanimously. 226 227 Meeting adjourned at 6:48 p.m. 228 229 230 Transcribed by: 231 Karen Whaley 232 TimeSaver Off Site Secretarial, Inc. 233 234