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HomeMy WebLinkAbout2001-127 Council ResolutionMember Reinert introduced the following resolution and moved its adoption: LINO LAKES CITY COUNCIL RESOLUTION NO. 01-127 RESOLUTION APPROVING BUSINESS SUBSIDY TO TARGET CORPORATION AND KOHL'S DEPARTMENT STORE, INC. BE IT RESOLVED by the Lino Lakes City Council as follows: Section 1. Recitals 1.01 On July 23, 2001, following a public hearing, the City Council of the City of Lino Lakes (the "City) approved a Business Subsidy Criteria (the "Criteria"), pursuant to Minnesota Statute, sections 116J.993 through 116J.995 (the "Business Subsidy Act.") 1.02. Target Corporation, a Minnesota Corporation, and Kohl's Department Stores, Inc., a Wisconsin Corporation (the "Developers") have requested a business subsidy (the "Subsidy") through tax abatement in the amount of $519,300 and a waiver of an estimated $105,000 in Surface Water Management Fees for the construction of a Target Superstore and Kohl's Department Store in the Marketplace Development. The Subsidy shall be divided so that (1) Target Corporation receives the incremental taxes generated and paid on its parcel plus 61.84 percent of the Abatement for the remaining parcels, except the Kohl's parcel and (2) Kohl's Department Stores, Inc. receives the incremental taxes generated and paid on its parcel plus 38.16 percent of the Abatement for the remaining parcels, except the Target parcel. 1.03. Pursuant to Section 116J.994, subd. 5 of the Business Subsidy Act, the City has on this date held a public hearing on the proposed subsidy to the Developers, following published notice as required by law, at which hearing all persons wishing to express an opinion were given an opportunity to do so. 1.04 Pursuant to Section 116j.994, subd. 4 of the Business Subsidy Act, the Developers have agreed to goals for the number of jobs created, and wage goals for the jobs created. Target Corporation has agreed to 75 Full Time Equivalents (FTEs) at a wage of $8.25/hour, plus benefits. Kohls Department Stores, Inc. has agreed to 30 Full Time Equivalents (FTEs) at a wage of $8/hour, plus benefits. 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 Developers furthers the City's general plan of economic development of the community by encouraging growth and development of the Lino Lakes Town Center. 2.03. Pursuant to the Criteria established by the City, it is hereby found and determined that the business subsidy promotes the following: 1. Compliance with Comprehensive or Other Plans. 2. Upgraded Design and/or Other Amenities. 3. Utilization of Existing Infrastructure Investment. 4. Spin Off Development. 5. Growth Potential 6. Community Services Section 3. Authorization. 3.01. The business subsidy to the Developers as described above is hereby approved. 3.02. The Mayor and City Administrator are hereby authorized and directed to execute a Development Agreement, including the business subsidy agreement required by the Business Subsidy Act, and other appropriate documents to facilitate the finalization of the business subsidy to the Developer. 3.03. 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. Adopted by the Lino Lakes City Council this 10t day of September, 2001. John Belson, ayor ATTEST: Jean M. , Deputy City The motion for the adoption of the foregoing resolution was duly seconded by member O'Donnell and upon vote being taken thereon, the following voted in favor thereof: Bergeson, Reinert and O'Donnell and the following voted against same: Carlson and Dahl Whereupon said resolution was declared duly passed and adopted. AGENDA ITEM 3A -ii STAFF ORIGINATOR: Al Rolek DATE: 9/10/01 TOPIC: Consideration of Resolution No. 01-127 approving a Business Subsidy with Target and Kohl's VOTE REQUIRED: 3/5 BACKGROUND: This resolution recognizes that the Marketplace development meets the goals and objectives outlined by the city in its Business Subsidy Criteria. Target Corporation has agreed to create 75 new full time equivalent positions at an hourly rate of $8.25, plus benefits. Kohl's Department Store has agreed to the creation of 30 new full time equivalent positions at an hourly rate of $8.00, plus benefits. These wage and job goals exceed the city's minimum requirement that within two years of the date assistance is received, jobs created must be at least equal to 110% of the federal minimum wage, plus benefits." Separate Abatement agreements will outline the conditions for public assistance to Target and Kohl's for the construction of Target Superstore and Kohl's Department Store. Included in these agreements will be a Business Subsidy Agreement that defines the number and wages of new jobs to be created by each project, and the Developers' responsibilities if they do not fulfill the Agreement. OPTIONS: 1. Adopt Resolution No. 01-127 approving the Business Subsidy for the Target/Kohls' project. 2. Do not approve the Business Subsidy Agreements 3. Return to staff for further consideration RECOMMENDATION: Option 1