HomeMy WebLinkAbout11-24-2003 EDA MinutesCITY OF LINO LAKES 1
ECONOMIC DEVELOPMENT AUTHORITY 2
MINUTES 3
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DATE : November 24, 2003 6
MEMBERS PRESENT : J. Bergeson, D. Carlson, C. Dahl, J. O'Donnell, 7
J. Reinert 8
MEMBERS ABSENT : None 9
OTHERS PRESENT : Mary Divine, Dan Tesch, and Bill 10
Hawkins 11
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CONSIDERATION OF MINUTES OF OCTOBER 27, 2003 13
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EDA Member Dahl moved to approve the October 27, 2003 minutes, as presented. EDA Member 15
Bergeson seconded the motion. Motion passed. 16
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CONSIDERATION OF RESOLUTION NO. 03-11 ADOPTING A MODIFIED PROGRAM 18
FOR DEVELOPMENT DISTRICT NO. 1 AND ESTABLISHING TAX INCREMENT 19
FINANCING DISTRICT NO. 1-11 (WOODS EDGE) 20
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Ms. Divine summarized the Staff report, stating at the last work session there was a question 22
regarding the benefits they might see from this district. She indicated Paul Steinman is here from 23
Springsted with updates. She indicated he has a comparison of the Marketplace site and Woods 24
Edge, as well as a comparison of tax generated within the TIF and outside TIF. She advised 25
$25,801,343 is the total amount of tax expected to be generated within the TIF District, but as 26
discussed, part of the project is set to take place outside of the TIF district, which is $11,191,706 over 27
25 years. 28
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EDA Member Reinert asked if that $11 million takes into consideration no other growth. Mr. 30
Steinman indicated it considers the Hartford project outside TIF, but no inflationary growth. He 31
noted this is a tax comparison based on City, County and School District taxes. 32
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EDA President Carlson asked what the difference is between the $25,801,343 and $26,450,000 that 34
they had discussed previously. Mr. Steinman stated $26,450,000 is the bottom line of the budget, and 35
probably contains an interest component. He noted there is also a $450,000 livable communities 36
grant, which is part of the budget amount of $26,450,000. 37
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EDA President Carlson clarified that on the Woods Edge Tax Revenue Comparison, $26 million 39
represents the total project, and $11 million is taxes they will collect right away. Mr. Steinman stated 40
that was correct. 41
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EDA Member O'Donnell verified that $25,801,343 is the capacity of the TIF District and in no way 43
represents what may be granted. Mr. Steinman stated that was correct. 44
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EDA MINUTES NOVEMBER 24, 2003
DRAFT
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EDA Member O’Donnell moved to adopt Resolution No. 03-011, modifying development District 46
No. 1 and establishing Tax Increment Financing District No. 1-11. EDA Member Reinert seconded 47
the motion. 48
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EDA President Carlson noted this is a difficult decision for her because of the potential amount of 50
money, and she thinks there are loopholes in the plan, such as where they say they do not intend to 51
bond, but are keeping the option open. She is glad the city intends to collect on some of the project, 52
but they do not know what exactly they will spend, or what the return will be. She sees a lot of road 53
costs, and feels the majority of the road costs should be borne by the Federal, State and County 54
governments. 55
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Ms. Divine indicated the noted loopholes are not actually loopholes, as any decision made will have 57
to be a separate decision made by the City Council. She stated that while it may provide flexibility, 58
each decision will have to be an informed decision based on the information presented. This plan 59
merely sets a budget and establishes the district, it leaves the city council free to make decisions as 60
they move forward. 61
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EDA Member Bergeson reminded the Board that any TIF project has to pass the “but for” test as well. 63
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EDA Member Reinert indicated that the cost of roads or contribution of land or other valuable 65
contribution from the City will be a decision made by the City Council after all the numbers and 66
information is presented. He stated that while this TIF district may provide them flexibility, the City 67
Council will have the ability to make a decision. 68
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Vote: 3 Ayes, 2 Nays. Motion carried. EDA President Carlson and EDA Member Dahl opposed. 70
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ADJOURNMENT 72
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There being no further business, EDA Member O’Donnell moved to adjourn. EDA Member 74
Bergeson seconded the motion. Motion passed unanimously. 75
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Meeting adjourned at 6:54 p.m. 77
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Transcribed by: 83
Karen Whaley 84
TimeSaver Off Site Secretarial, Inc. 85
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