HomeMy WebLinkAbout06/03/2004 EDAC MinutesAPPROVED
CITY OF LINO LAKES
ECONOMIC DEVELOPMENT
ADVISORY COMMITTEE
MINUTES
DATE: Thursday, June 3, 2004
MEMBERS
PRESENT: H. Juni, T. Vacha, J. Schwartz, H. Karth, J. Helgemoe, S. Rymer
MEMBERS
ABSENT: D. Gorowsky, F. Chase, K. Hansmann
OTHERS
PRESENT: M. Divine, G. Heitke
GENERAL/MINUTES
Minutes of May 6, 2004 were approved.
TIF WORKSHOP REVIEW
Mr. Juni summarized the workshop of the previous night. Members who attended thought
it was very informational. Mr. Juni asked the definition of “Greenfield” development.
Ms. Divine explained it was development built on virgin land. TIF cannot be used for
Greenfield development except for 10-year economic development districts for industrial
development. Commercial development can only get TIF if it is a redevelopment site.
Tax abatement can be used for commercial development.
Ms. Schwartz stated the main point she got from the workshop was “what is the risk?”
The risk is tied to the quality of the asset. Mr. Karth said the highest point of risk was
before the project was built. Ms. Divine stated “pay-as-you-go” TIF minimizes the risk.
But in redevelopment scenarios, pay-as-you-go makes the project more difficult because
the developer needs upfront money for demolition etc.
Mr. Juni said the perception from citizens is that TIF pads the pockets of developers. The
council gets pressured, and how can EDAC assist the council to make good decisions
when TIF is appropriate and be comfortable with their decisions. His sense is there are
some council members that are never comfortable with TIF. Rather than an automatic
“no,” how do we get a comfort level with the council. It’s been a frustration of EDAC.
Time will tell when we get into the next discussion with council.
Ms. Divine stated the downtown project is a high cost project that is going to require
some upfront TIF and bonding, so the discussion of risk versus reward will be necessary.
Mr. Karth stated when cities councils understand TIF better, it doesn’t get blown out of
proportion and the citizens don’t get so upset. If the council is in turmoil, the citizens get
in turmoil. Mr. Juni stated the council needs to be comfortable with its decisions, then the
citizens don’t get so alarmed.
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Mr. Rymer stated that Springsted might be able to assist with marketing, and information
in the newspaper. Mr. Juni stated citizens could write letters to the editor to support it.
The city could provide the newspaper with a chart that shows where we stand in relation
to other cities’ use of TIF.
Ms. Divine stated one of the key messages of the workshop was believing in the “but
for.” If you understand that the project won’t happen without public assistance you can
have comfort with your decision.
Mr. Heitke stated that he hears comments that Blaine doesn’t use TIF. The numbers show
that isn’t true. Blaine has a large amount of value tied up in TIF. Ms. Divine said it was
good to show that Lino Lakes is not the highest taxed, and is within the norm.
EDAC ONE-YEAR ACTION PLAN
Mr. Juni said EDAC is advisory, and a discussion over its role is appropriate. Ms. Divine
summarized the one addition to the plan, regarding review of the Comprehensive Plan.
Mr. Heitke stated the water, sewer, land use, transportation plans seem to have been done
somewhat separately and there are conflicts. We have a responsibility to the public to
look at what is wrong in the plan. Mr. Juni stated the council needs to be willing to do it,
with the right combination of citizenry and staff. If EDAC believes that this is necessary,
it needs to push in that direction. Mr. Karth moved to approve the addition to the
approved plan. Mr. Rymer seconded the motion. Motion approved unanimously.
EDAC will take the one-year action plan to the council for approval. Members reviewed
the summary report that will accompany the plan and discussed changes. Mr. Juni said it
was important for the city council to buy into the plan, then it becomes the city’s plan,
not just EDAC’s plan.
Mr. Heitke encouraged EDAC to partner with the council to provide them political
support to take some bold stands. The council wants to hear what is on EDAC’s mind and
provide perspective to the council. A council workshop to select goals for 2004-2005 was
completed. Seven goals were selected, and three of them relate to EDAC goals. Goal one
is completing the town center and YMCA. Others include completing the visioning
process and begin master planning for 35E corridor, pursuing a diversified tax base, and
adopting a city image that presents a positive image of the community. The goals have
not been adopted yet.
APOLLO BUSINESS PARK
Ms. Divine stated EDAC could begin consideration of how to start implementing action
plan items. Mr. Helgemoe suggested visiting businesses in the Apollo Park.
Meeting adjourned.
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