HomeMy WebLinkAbout2003-166 Council ResolutionLINO LAKES CITY COUNCIL
RESOLUTION NO. 03-166
RESOLUTION APPROVING A BUSINESS SUBSIDY
TO PANATTONI DEVELOPMENT, LLC
BE IT RESOLVED by the Lino Lakes City Council as follows:
Section 1. Recitals
1.01. The Lino Lakes Economic Development Authority (the "Authority") approved a tax
increment financing plan (the "Plan") for the Tax Increment Financing District No. 1-10 (TIF
District No. 1-10) on August 11, 2003.
1.02. On August 11, 2003, the City Council of the City of Lino Lakes (the "City")
approved the Plan.
1.03. On June 23, 2003, the City approved the revised City of Lino Lakes Business
Subsidy Criteria (the "Criteria"), pursuant to Minnesota Statute, sections 116J.993 through
116J.995 (the "Business Subsidy Act.")
1.04. Panattoni Development, LLC, (the "Developer") has requested a business subsidy
through tax increment financing; and
1.05. The City has considered a business subsidy in the amount of $638,400 for the
construction of a light industrial facility in the Apollo Business Center.
1.06. Pursuant to Section 116J.994, subd. 5 of the Business Subsidy Act, the Authority
has on this date held a public hearing on the proposed subsidy to the Developer, following
published notice as required by law, at which hearing all persons wishing to express an opinion
were given an opportunity to do so.
Section 2. Findings.
2.01. It is hereby found and determined that the business subsidy is in the best interest of
the City because it is consistent with and promotes the goals established by the City in adopting
the Criteria.
2.02. It is hereby found and determined that granting the business subsidy to the
.Developer furthers the City's general plan of economic development of the community by
encouraging growth and expansion of an industrial park which has not been used to its full
potential.
2.03. Pursuant to the Criteria established by the City, it is hereby found and determined
that the business subsidy promotes the following:
1. Encourages economic and commercial diversity within the community;
2. Contributes to the establishment of a critical mass of commercial development
within an area;
3. Encourages fast growing or other desirable businesses to locate or expand
within the community; and
4. Encourages full utilization of existing or planned infrastructure improvements.
Section 3. Authorization.
3.01. The business subsidy to the Developer as described above is hereby approved.
3.02. Staff and consultants are hereby authorized and directed to take any and all other
actions necessary or convenient to effect the intent of this resolution.
Dated: Soffemter aa, , 200
ATTEST:
City Clerk
a 1. AL.
Mayor
STAFF ORIGINATOR:
DATE:
TOPIC:
Vote Required:
BACKGROUND:
AGENDA ITEM 7A -iii
Mary Alice Divine
09/22/03
Resolution No. 03-166 approving a Business Subsidy
for Panattoni Development, LLC
Simple Majority
Panattoni Development has made a request for tax increment financing on
behalf of the tenant, Distribution Alternatives, Inc. (DAI). Panattoni will be
constructing a 265,000 sq. ft. distribution facility in the Marshan Lake Industrial
Park, and leasing the space to DAI. DAI is a third party distribution center that
provides warehousing and administrative services for a variety of clients.
DAI currently has facilities in Arden Hills and Roseville, and will be consolidating
its headquarters and distribution services in Lino Lakes. The company employs
approximately 60 full time employees, including accounting, information systems,
marketing, operations and warehouse staff, plus additional temporary
employees.
The company has committed to hiring at least four (4) new employees within two
years at no less than $10.00 per hour, plus benefits. The company has a 10 -year
lease, and therefore has committed to remaining within the city for five years
after the benefit date.
Based on an analysis of information provided by Panattoni and DAI, staff and the
city's TIF consultant recommend providing five years of increment at $127,680
per year for a total of $638,400.
Business Subsidy Criteria have been established by the city for use in evaluating
a request for a business subsidy. The criteria used in evaluating a request for a
business subsidy include:
1. The business subsidy meets a public purpose, including but not limited to
increasing the tax base.
2. While an increase in the tax base cannot be the sole rounds for granting a
subsidy, the city believes it is a necessary condition for any subsidy.
3. The recipient creates the maximum number of livable wage jobs at the
site.
Projects of this type should promote economic and commercial diversity
within the community, contribute to the establishment of acritical mass of
commercial development within an area, or encourage full utilization of
existing or planned infrastructure improvements.
The city's Economic Development Advisory Committee has reviewed this project.
The committee recommended supporting the project, since it met the necessary
subsidy criteria, building standards and zoning codes.
A public hearing was held earlier tonight during the meeting of the Economic
Development Authority (EDA). The city also considers and acts on any business
subsidy approved by the EDA.
OPTIONS:
1. Approve the business subsidy as outlined in the development agreement
to Panattoni Development, LLC
2. Return to staff for further consideration.
RECOMMENDATION:
Option 1