HomeMy WebLinkAbout10/01/2009 EDAC MinutesAPPROVED
CITY OF LINO LAKES
ECONOMIC DEVELOPMENT
ADVISORY COMMITTEE
MINUTES
DATE: Thursday, October 1, 2009
MEMBERS
PRESENT: J. Schwartz, T. Sanvick, D. Roeser, M. Keller, B. Menke, B. Combs
MEMBERS
ABSENT: J. Stranik, K. Corson, J. Milbauer
OTHERS
PRESENT: M. Divine
APPROVAL OF MINUTES
The Minutes of August 6, 2009 were approved.
REVIEW MATERIALS ON EDA
Ms. Divine stated that this was postponed at the council work session until November, noting a
special council meeting called for financing for the 35E interchange. Mr. Roeser noted that at the
EDAC/Council meeting, discussion led to EDAC being the sales force, and EDA the CEO. He
believes that nothing is being done to promote the big box on 35E, which could make the
solution to financing the bridge easier. Ms. Divine noted that the EDA has not historically acted
as promoters, but rather act under statutory authority such as buying and selling land and using
tax increment revenues. However, EDAC was started at the same time to be the promoting arm
of the EDA.
Ms. Schwartz asked about liability of members on an EDA because she was aware of a case
where members of the EDA members were being sued personally and the city did not cover
them. Ms. Divine said she would look into it at.
The city’s bond counsel provided an opinion saying that the way the city’s EDA is set up, the
council may want to make some modifications to the EDA authority if appointed members are
added. Now the EDA has powers separate from the council. When appointed members get on,
the attorney’s recommendation is to add some limitations on the EDA’s activities. Ms. Divine
talked to several cities with appointed EDA members and each city is a little different. Forest
Lake, for example, works well, they act more as a recommending body, but still have powers; for
example the city used the EDA’s bonding capacity. Mr. Roeser stated that he thinks EDAC is
looking for input into economic development matters and to strengthen the communication bond.
The idea would be that some members added to the EDA be from EDAC so that EDAC would
carry its message to the EDA. EDAC promotes, and tries to negotiate between the developer and
the EDA, acting as members on the team so that the consistent word is going forward and
backwards between both groups.
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COUNTRY INN & SUITES
Ms. Divine stated that a developer is interested in converting the Country Inn & Suites to
assisted living. This would involve zoning and land use amendment to the approved Planned
Unit Development. The use is now commercial, and assisted living has a lower tax rate. If turned
into assisted living, the estimates are that the city would lose about $12,000/year in TIF. TIF is
being used to pay off the improvements on Lake Drive. However, if the hotel closes, no taxes are
paid until another use moves in.
Members discussed the pros and cons of assisted living and its potential impacts on the
development. Consensus was that it was generally a positive to have an assisted living facility in
the city and it would not have significant impact on future commercial development.
After considering the potential economic benefits of an assisted living facility in the community
versus the risk of a vacant facility, EDAC moved to recommend a change of land use in the
Woods Edge development with the following condition: A development agreement insures
that payments in lieu of taxes will be paid if the facility is sold to a non-profit entity. Motion
passed unanimously.
ECONOMIC DEVELOPMENT PROCESS
Members agreed to table this item to the next meeting.
Next meeting will be November 5 at 7 a.m.
Meeting adjourned.
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