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HomeMy WebLinkAbout03/02/2011 EDAC Minutes 1 Approved CITY OF LINO LAKES ECONOMIC DEVELOPMENT ADVISORY COMMITTEE MINUTES DATE: March 2, 2011 MEMBERS PRESENT: J. Schwartz, M. Keller, D. Johnson, MEMBERS ABSENT: B. Combs, L. Masonik, J. Stranik OTHERS PRESENT: M. Divine, M. Grochala, Bruce Miller (part) APPROVAL OF MINUTES The Minutes of January 6, 2011 were tabled. Updates: IMEDC Ms. Divine reminded EDAC that the City Council had asked for something to look at to determine if the Council would like to make some show of support for the concept of a racetrack in Lino Lakes. EDAC reviewed and approved a resolution for the Council to consider. After that occurred, IMEDC approached the City of Columbus asking for support and produced a general site plan showing the track in Columbus. Our Council reviewed the resolution at the February work session and determined it did not want to take any action and directed staff to spend no more time on the racetrack. Staff later met with Columbus staff and mayor. Columbus has asked for more information and has received none. Columbus agreed to stay in communication with Lino Lakes if any further progress was made. TIF LEGISLATION Ms. Divine informed EDAC that staff was working on getting special legislation passed to extend the life of TIF District 1-10 (industrial park on Lake Drive) to use the increment to help pay for the outstanding debt service on TIF District 1-11 (Legacy project). OPPIDAN Ms. Divine informed EDAC that Oppidan developers were interested in the 49/J intersection area and had approached staff about a grocer concept. The developers are aware of the infrastructure issues and will be presenting to Council at the March work session to gauge Council’s interest in a grocer and in public assistance to help complete public improvements. OTTER LAKE ROAD Mr. Bruce Miller of MFC Properties addressed EDAC regarding a property he owns on the northeast quadrant of 35E and County Road 14. He has interest from a fast food chain to build. He showed the proposed layout of the site.. The total site supports approximately 125,000 square 2 feet. A big box could fit on the site. Mr. Miller also showed a concept of the Otter Lake Road Extension, which would eventually come up and curve to connect to Elmcrest, ultimately an arterial road that connects to Columbus and Forest Lake. It is in the County’s long term plans. Mr. Miller proposes to do the first 300 feet to get it started and get his user in. Mr. Grochala said the City would require dedication, the amount of Right of Way is yet to be finalized. Mr. Grochala explained this one project could be stubbed out at the intersection, but this area must ultimately be served by trunk mains from Elmcrest. The city typically uses trunk charges from the city trunk fund to get the cost of the oversizing of trunk lines to an area. The rest would be charged to the benefiting property owners. However, the trunk fund is close to depleted because of limited development over the past several years. But it is important to get this trunk line in because it would likely have to occur fairly soon anyway. To get the 300 feet of road that would be needed to support this beginning development, the city would have to assess Mr. Miller and the property to the west. That property owner is not interested in putting in the road, because he has an investment in the southeast quadrant. This relates to city policy as well, do we want to extend the road when the southeast is ready to be developed? Mr. Miller said once the road is in, there will be interest in the west property. Mr. Miller thinks if this project doesn’t go through, it’s likely nothing will happen for a long time. He presented an engineer’s estimate of getting the trunk line and the road built. Connection to the interceptor would cost approximately $300,000. The entire project is in the range of $700,000. Mr. Grochala mentioned the city could take advantage of special legislation that is allowing cities to create TIF districts for commercial uses. Ms. Schwartz said this is an opportunity that the city needs to take advantage of while there is interest. It will open up the area. Mr. Miller noted that property owners have pending assessments for the 35E bridge with the assumption they would be able to develop. Mr. Grochala noted that the council may be gun shy because in prior days assessments were a pretty safe bet. But now things are going tax forfeit, and the city is facing debt on assessments in the Legacy project. More securities may have to be in place. Ms. Schwartz said the sooner the area can be developed, the less the risk long term. Mr. Grochala said that the property owner to the west has stated he will not voluntarily sell the right of way. Mr. Miller said condemnation for roads is a reasonable because it otherwise he’d be holding up development of many properties. That is what will be needed if this will proceed. He noted the city benefits through tax base, jobs, construction jobs and the start of larger development. EDAC members thanked Mr. Miller for coming. Members discussed the pros and cons of the project. It appears the market is starting to come back and consumer confidence is better. Members are supportive of the City using whatever tools it has available to do something on 35E now and not let the opportunity go, including eminent domain, TIF for public improvements and assessments. TIF would be a funding source for some of the trunk improvements. Meeting adjourned.