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HomeMy WebLinkAbout2003-123 Council ResolutionCITY OF LINO LAKES RESOLUTION NO. 03-123 RESOLUTION MODIFYING DEVELOPMENT DISTRICT NO. 1 AND ESTABLISHING TAX INCREMENT FINANCING DISTRICT NO. 1-10 WHEREAS, the Economic Development Authority (the "Authority") for the City of Lino Lakes (the "City") has proposed to modify the Program (the "Program") for Development District No. 1 ("District") and to establish Tax Increment Financing District No. 1-10 ("TIF District") and adopt the Tax Increment Financing Plan (the "Plan") therefore, all pursuant to and in conformity with existing law, including Minnesota Statutes, Sections 469.090 through 469.1081 ("EDA Act"), and Sections 469.174 to 469.179, inclusive ("TIF Act"), all as reflected in the Program and Plan and presented for the Authority's consideration. WHEREAS, the City has investigated the facts relating to the modification of the Program and the establishment of the Plan, and has caused to be prepared a "Modified Development Program, Development District No.1 and a "Tax Increment Financing Plan for Tax Increment Financing (Economic Development) District No. 1-10"; and WHEREAS, the Authority and City have performed all actions required by law to be performed prior to the adoption of the modified Program and the Plan, including but not limited to notification of Anoka County and School District No. 12 having taxing jurisdiction over the property to be included in the TIF District, a request for review of and written comment on the Plan by the City Planning & Zoning Board, and a request that the Council schedule a public hearing on the Plan upon published notice as required by law; and WHEREAS, the Authority has approved the Program and the Plan and recommended approval by this Council. NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Lino Lakes as follows: Section 1. Findings; Development District. 1.01. It is hereby found and determined that within the District there is a need to improve the tax base and employment opportunities, and to provide an impetus for commercial development. 1.02. It is further found and determined that, since initial establishment of the Districts, development and redevelopment needs have changed in certain parts of the City. SJB-235626v1 LN 140-81 1.03. It is further specifically found and determined that the development described in the Program as modified would not be feasible without the public intervention and financial assistance described in the modified Program and Plan. Section 2. Findings; TIF District No.1-10. 2.01. It is found and determined that it is necessary and desirable for the sound and orderly development of the District, and for the protection and preservation of the public health, safety, and general welfare, that the authority of the TIF Act be exercised by the City to provide public financial assistance to the TIF District and Development District. 2.02. The proposed development, in the opinion of the City, would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future and the increased market value of the site that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in the market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of the TIF District permitted by the TIF Plan. 2.03. The Plan conforms to the general plan for the development of the City as a whole. 2.04. The Plan will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the development of the TIF District and the District by private enterprise. 2.05. The TIF District is an economic development district under Section 469.174, Subd. 12 of the TIF Act. 2.06. Reasons and facts supporting the above findings are set forth in the Plan and are incorporated herein by reference. The Council has also relied upon the reports and recommendations of its staff and consultants as well as the personal knowledge of members of the Council in reaching its conclusions regarding the modified Program and the Plan. Section 3. Approvals; Further Proceedings. 3.01. The Program and the Plan are hereby approved in substantially the forms on file in City Hall. 3.02. The Community Development Director is authorized to forward a copy of the Program and the Plan to the Office of the State Auditor pursuant to Minnesota Statutes 469.175, subd. 2. 3.03. The City Clerk is authorized and directed to forward a copy of the Plan to Anoka County and request that the Auditor certify the original tax capacity of the TIF District as described in the Plan, all in accordance with Minnesota Statutes 469.177. SJB-235626v1 LN 140-81 Adopted by the Council of the City of Lino Lakes this llth day of August, 2003. The motion for the adoption of the foregoing resolution was introduced by Council Member Reinert and was duly seconded by Council Member O'Donnell and upon vote being taken thereon, the following voted in favor thereof: Reinert, O'Donnell, Bergeson The following voted against same: Carlson, Dahl ATTEST: Itt- City Clerk SJB-235626v1 LN140-81 MSgi:P6.6tre'13 ayor COUNCIL MINUTES AUGUST 11, 2003 APPROVED 135 Councilmember Reinert moved t adopting a modified program for 136 Development District No. 1 and establishing Tax Increment Financing District No. 1-10. 137 Councilmember O'DonnelligeMIDSMINNINION 138 139 Councilmember Carlson stated at another time she might vote yes because of those coming off of TIF, 140 but now with the amount of money and other expenditures the city may need for road improvements, 141 etc., she is not in favor of this plan. 142 143 Community Development Director Grochala noted the 4.2 million is not the amount they are putting 144 on the project. Economic Development Assistant Divine indicated the amount is up to 2.49 million. 145 She explained a bond payment is considered a cost, so it has to be listed, but the amount of the budget 146 is 2.4 million, which is the estimate of what would be generated if this were fully built out. She stated 147 4.2 million would not be available; 2.49 million would be the maximum of the budget. 148 149 Councilmember Carlson asked what the amount of money not paid in taxes would be if they adopt 150 this TIF district. Economic Development Assistant Divine answered 2.49 million if fully built out. 151 152 Community Development Director Grochala advised they are estimating if the project were built out, 153 what would be generated over 10 years, so they have done some assumptions. That number is what 154 the plan says would be needed to maintain options. It is possible they could never reach that amount. 155 He indicated the 2.4 million is not an obligation for the City to provide, it is only an operating budget 156 to set a limit on what could be available. 157 158 Councilmember Carlson asked if the change made two weeks ago, where it was previously in the 159 policy that a business that received a subsidy had to stay in the city for five years, applied to TIF. 160 Economic Development Assistant Divine indicated it is up to the EDA to determine if that would be a 161 requirement. The change two weeks ago was due to the fact that it used to be a state regulation to 162 require a business stay for at least five years, but now it is up to the city's EDA Board to decide. The 163 development agreement with the business can be worded however the EDA chooses. 164 165 Councilmember Carlson asked if they were indeed looking at a road referendum this fall. Community 166 Development Director Grochala stated they were. 167 168 Councilmember Dahl asked if Staff would be making the five-year stay requirement a 169 recommendation. Economic Development Assistant Divine stated it would be handled on a case -by - 170 case basis, set by the EDA. She noted the request tonight is not an agreement with any particular 171 company, and when a business does make an application it would be up to the EDA to decide. 172 173 Councilmember Dahl indicated she is aware it is an EDA Board decision, however if Staff does not 174 make it a recommendation, it is possible the EDA Board would not consider this aspect. Economic 175 Development Assistant Divine stated they will leave the language as it is, so it will be in the 176 development agreement and a point for the EDA Board to decide. 177 178 Mayor Bergeson commented that the 2.4 million is not all City money; it is the combination of the 179 School District, the County and the City. He stated also that all TIF projects have a 'but, for' test, 4 COUNCIL MINUTES AUGUST 11, 2003 APPROVED 180 meaning 'but for this assistance, the project would not happen'. So they are not giving away money 181 they would otherwise have, they are making it possible for projects to happen to generate future 182 income for the city. 183 184 Motion carried 3:2. Councilmember Dahl and Carlson opposed. 185 186 Resolution No. 03-123 can be found in the City Clerk's office. 187 188 ii. Consideration of Resolution No. 03-124, Modifying TIF District No. 1-9 189 Eliminating Two Parcels 190 191 Economic Development Assistant Divine stated Resolution No. 03-124 is to approve the modification 192 of Tax Increment Financing District No. 1-9, eliminating two parcels from the district. 193 194 Councilmember Reinert moved to adopt Resolution No. 03-124, approving the modification of Tax 195 Increment Financing District No. 1-9 and eliminating two parcels from the district. Councilmember 196 Dahl seconded the motion. 197 198 Motion carried unanimously. 199 200 Resolution No. 03-124 can be found in the City Clerk's office. 201 202 B. Hailey Manor Residential Subdivision, Jeff Smyser 203 204 i. Consideration of Resolution No. 03-119, Amending the 2001 Comprehensive Plan 205 ii. Consider 1st Reading of Ordinance 16-03, Rezoning Property from R -Rural to R- 206 1, Single Family Residential 207 iii. Consideration of Resolution No. 03-120, Approving Preliminary Plat and 208 Variance for Lot Depth 209 210 City Planner Jeff Smyser summarized the Staff report, explaining the project and indicating Staff 211 recommends approval of each action. He noted a change on page seven of the Staff report, the first 212 condition of approval, which should say: 213 214 The City's approval of the comprehensive plan amendment, rezoning, preliminary plat and 215 variance is contingent upon Metropolitan Council approval of the comprehensive plan 216 amendment. The final plat shall not be reviewed by the City Council prior to said 217 Metropolitan Council approval. 218 219 Councilmember O'Donnell asked if all of these comprehensive plan amendments would be needed for 220 this project in 2010 as they are today, except for the request to move the parcel into the Stage 1 221 Growth Area. City Planner Smyser indicated that was correct. 222 223 Councilmember Carlson stated the City received a petition from these property owners, but she does 224 not have a copy. She would like to know which property owners in addition to the four involved in 5