Loading...
HomeMy WebLinkAboutFebruary 17, 1998 PRIOR LAKE ECONOMIC DEVELOPMENT AUTHORITY MEETING Tuesday, February 17, 1998 5:30 p.m. . Fire Station City Council Chambers 1. Call to Order 2. Pledge of Allegiance 3. Approval of Minutes a) Minutes of December 15, 1997, Meeting b) Minutes of January 5, 1998, Special Meeting c) Minutes of January 13, 1998, Meeting 4. Consent Agenda 5. Presentations a) Jim Sherack of Marquette Bank will make a presentation on the proposed "Downtown Prior Lake Loan Program" 6. Public Hearings 7. Old Business a) Election of Officers 8. New Business a) Discuss Presentation to City Council at March 2, 1998, Work Session 9. Other Business a) Update on Franklin Trail North and South 10. Announcements or Correspondence 11. Adjournment, 7:00 p.m. 1 :\98fi1es\98eda\edaagend\eda21798.doc 16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER Memorandum TO: Economic Development Authority Members FROM: Jane Kansier, Planning Coordinator DATE: February 9, 1998 RE: Materials for February 17, 1998, Agenda The February 17, 1998, agenda includes a discussion item about the upcoming presentation to the City Council. As part of that discussion, we will be talking about the EDA Tax Increment Financing Program. Attached is a copy of this policy for your review. This information was inadvertently omitted from the agenda packet. Please bring this policy to the meeting on Tuesday, February 17, 1998. Sorry for the inconvenience. Please let me know if you have any questions. I: \98files\98eda\edamemo.doc 16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER CITY OF PRIOR LAKE ECONOMIC DEVELOPMENT AUTHORITY TAX INCREMENT FINANCING PROGRAM ADOPTED BY THE EDA DECEMBER 15, 1997 PURPOSE This policy is established to outline the City's position on the use of tax increment financing (TIF) policy for private development. This policy will be used as a guide in processing and reviewing applications for tax increment financing assistance. In accordance with the TIF policy, TIF requests must comply with applicable state statutes. The City of Prior Lake is governed by the limitations established in Minnesota Statutes Chapter 469.174, the Minnesota Tax Increment Financing Act, for all districts created after August 1, 1979. PROGRAM GOALS This program exists to achieve the following goals: 1. To promote commercial, industrial and residential development under special circumstances that would otherwise not occur. 2. To increase and diversify the long-term tax base of the City in order to ensure the ability of the City to provide adequate services for its' residents while lessening reliance on the residential property tax. 3. To improve the City's economic vitality through the creation and expansion of employment opportunities. 4. To remove blight and encourage redevelopment in the commercial and industrial areas of the City in order to encourage high levels of property maintenance and private reinvestment in those areas. 5. To assure that projects are constructed and maintained at a level of quality consistent with the goals of the City of Prior Lake. 6. To retain local jobs, increase the local job base and provide economic diversity in that job base. 7. To assist in achieving other goals contained in adopted public policies as may be adopted by the City Council from time to time, including without limitation, quality design and construction, energy conservation and reductions in the capital and operating costs of government. PROGRAM ELIGIBILITY CRITERIA Qualified projects should meet or exceed the following criteria to be eligible for TIP assistance. Meeting the threshold of eligibility does not guarantee approval of the project by the City. Conversely, failure to meet the criteria will not automatically exclude a l:\econdev\~da\tifpolc~doc l'\lgj: 1 16200 Eagle Creek Ave. S.c., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER proposal from further consideration. Final approval of any project will be made by the City Council and Economic Development Authority. The applicant for assistance must complete an Application for TIF Assistance pursuant to the procedures outlined below. 1. The project must be consistent with the City's Comprehensive Plan, zoning ordinance and other applicable City ordinances. 2. The applicant must be willing to enter into a development or redevelopment agreement satisfactory to the City. 3. The project must comply with all applicable environmental regulations. 4. The applicant must submit all ofthe materials required in the application. 5. The applicant must agree to provide surety to the City to cover all costs paid by the increment, unless the project is a "pay as you go" agreement. These may include assessment agreements, letters of credit, personal deficiency guarantees, guaranteed maximum cost contracts and minimum payment agreements. 6. The applicant/developer must provide a minimum of20% equity in the project. 7. The EDA will favor owner-occupied projects over projects which will be leased. 8. For projects in an Economic Development District, a maximum of $10,000 of public money will be invested for each full-time equivalent position created or retained. 9. For projects in Redevelopment Districts, those which remove or prevent blight will be favored. 10. For projects in Redevelopment Districts, a ratio of taxes paid before and after redevelopment of 1:2 is desired. 11. TIF will not be used in projects that would give a significant competitive financial advantage over similar projects in the area. Developers will provide information to demonstrate that this criterion is met. 12. TIP proposals should normally not be used to assist speculative developments. The developer should be able to provide market data, letters of intent or financial statements which illustrate the market potential or demand for the project. PROJECT COSTS ELIGIBLE FOR TIF ASSISTANCE Project costs which qualify for TIF assistance include the following: . Property acquisition . Land clearance . Relocation and demolition of structures . Site preparation . Soils correction · Removal of hazardous wastes or remediation of site contamination · Installation of utilities · Construction of public or private improvements · Administrative costs directly related to the identified parcels. . Design fees . Surveys · Environmental studies · Relocation of building occupants . Rehabilitation of structures I: \econdev\eda\tifpolcy.doc Page 2 . Special assessments · Other costs allowed by Minnesota statute APPLICATION PROCEDURE 1. The applicant should meet with appropriate staff and consultants to discuss the scope of the project, public assistance being requested, time schedule and other pertinent information. 2. The applicant should complete a Tax Increment Financing application and submit this to the Planning Department. 3. The application will be reviewed by City staff and their consultants for feasibility and compliance with the criteria. The staff will prepare a report on the project. 4. The application will be placed on the EDA agenda for its review. The applicant may make a presentation and the staffwill prepare a staffreport with preliminary findings. 5. If the EDA's preliminary review is positive, the applicant can make final application for assistance. This shall be accompanied by a non-refundable $2,000 application fee and a completed "But-For" worksheet. If approved, the developer will be responsible for any additional City or EDA costs. 6. If zoning approvals are required, the applicant should file the applications at this time. 7. Following final analysis of the submitted materials, the EDA and City Council will receive a report with staff recommendations for final action. If approved, staff will prepare a Development or Redevelopment Agreement as appropriate between the City and the developer. 8. Any zoning or other land use approvals required shall be completed prior to final consideration of the developers agreement. I: \econdev\eda\tifpolcy.doc Page 3 PRIOR LAKE CITY COUNCIL WORK SESSION MARCH 2. 1998 FIRE STATION CITY COUNCIL CHAMBERS 5:30 - 7:30 P.M. I. STATUS REPORT ON LIBRARY/DANCE STUDIO - PAUL HOKENESS. BARRY PETIT II. UPDATE ON DOWNTOWN STEERINC COMMITTEE-DICK UNDERFERTH. DON RYE III. TAX INCREMENT FINANCINC POLICY-BOB BARSNESS AND DON RYE. i:\counci1\works\wks2898.doc