The URL can be used to link to this page

Home My WebLink About10F - Development Prog/TIF16200 Eagle Creek Avenue S.E. Prior Lake, MN 55372-1714 CITY COUNCIL AGENDA REPORT MEETING DATE: AGENDA #: PREPARED BY: AGENDA ITEM: MARCH 21, 2005 10F JOHN SULLIVAN, DIRECTOR COMMUNITY DEVELOPMENT CONSIDER APPROVAL OF A RESOLUTION CALLING FOR A PUBLIC HEARING ON THE ESTABLISHMENT OF THE DEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRICT NO. 4, THE ESTABLISHMENT OF TAX INCREMENT FINANCING DISTRICT NO. 4-1, AND THE AWARDING OF A BUSINESS SUBSIDY FOR ON-SITE ENGINEERING, LOT 1, BLOCK 1, DEERFIELD INDUSTRIAL PARK THIRD ADDITION. DISCUSSION: History: On-Site Engineering and Forensics Se/vices, Inc. is a local electrical engineering company involved in research/development and services to the forensics industry. They are retained by insurance companies, law firms, state and federal agencies to investigate electrical failures, accidents and fires. The company retains evidence for cases in litigation, provides testing of materials, and gives expert opinion in state and federal court. The company primarily provides services to the Midwest market area. They have very little competition, and need to expand due to growth and on-going success. They plan to hire additional staff to accommodate their growth. They have outgrown their existing facility located at the comer of Park Nicollet Avenue and Toronto (Lorraine Borka building). Current Circumstances: The company is proposing to construct an approximately 8,119 sq. ft. building on Lot 1, Block 1, Deerfield Industrial Park 3rd Addition. The property is zoned C-5. The proposed facility and use would need to meet the current requirement of the C-5 zone. The City received building plans on March 14, 2005 and the DRC is to review them on March 16, 2005. On-Site Engineering has submitted a preliminary and final application for TIF, and they have paid the required TIF fees to the City. I:\COUNCIL~GNRPTSX2005X3-21-05 public hearing f~~d~tf, pJfi~r4~ .lf~o~COlTl Phone 952.447.4230 / Fax952.447.4245 City TIF financial consultant Ehlers & Associates has completed a preliminary review of the company and its operations and has deemed them eligible for TIF assistance..Furthermore, the company/project has received an approval on the "But For" test and analysis, which was completed with the help of the applicant, staff and Ehlers. The "But For" test is a state requirement determining and establishing a company's need for public assistance from a city. In this case, TIF is the proposed public business subsidy. In October of 2004, the City revised its Tax Increment Finance Policy, adopted a new Business Subsidy Policy, and developed a new Business Subsidy Agreement. All of these items will be used to process this proposal from On-Site Engineering. This project, if approved, would be the first project constructed with TIF assistance in the Deerfield Industrial Park. ' In order to further this development request, it is necessary to call for the public heating via approval of a resolution, and for staff and fiscal consultant Ehlers & Associates develop a plan for Development District No. 4 and establish TIF District 4-1, which is the subject parcel. The applicant plans to start construction of the project as soon as possible. The applicant has purchased the Deerfield Industrial Park land necessary for the project, contingent upon city approvals of the site/building plan and TIF. Issues: The issues for the public heating are: Does the City Council/EDA want to provide TIF to this and other businesses in the Deerfield Industrial Park, and if so, which ones and why? In making its decision, the City Council needs to consider the Business Subsidy Policy adopted in October of 2004 as well as the City of Prior Lake TIF Policy, amended on October 18, 2004. Key criteria for the business subsidy and tax increment policies .are the creation of industrial tax base; the creation and retention of quality jobs, and the ability of employers to provide full time jobs and benefits. The proposed project appears to meet these criteria, although a future formal business subsidy agreement would need to be entered into between On-Site Engineering and the City outlining performance goals. Conclusion: The City Council should determine if it desires to proceed to consider TIF assistance for this project. If so, the next step is to set the public heating date by resolution. I:\COUNCIL~GNRPTSX2005X3-21-05 public hearing for TIF District 4 and 4-1 .doc ALTERNATIVES: 1. Approve the resolution calling for a public hearing on the establishment of the Development Program for Development District No. 4, the establishment of Tax Increment Finar~,cing District No. 4-1 and the awarding of a business subsidy. 2. Deny the resolution. 3. Continue the project for specific reasons. RECOMMENDED MOTION: REVIEWED BY: Alternative 1. / Frank B~s/tCi~ Manager ATTACHMENTS: 1. Resolution 05-XXX calling for a public hearing on the establishment of the Development Program for Development District No. 4, the establishment of Tax Increment Financing District No. 4-1, and the awarding of a business subsidy. 2. Proposed Schedule of Events for the Establishment of the Development Program for Development District No. 4 and the establishment of the Tax Increment Financing Plan for Tax Increment Financing District No. 4-1. 3. Final Plat, Deerfield Industrial Park 3rd Addition. 4. Site Plan Drawing. I:\COUNCILLa~GNRPTS~2005(3-21-05 public hearing for TIF District 4 and 4-1 .doc 16200 Eagle Creek Avenue S.E. Prior Lake, MN 55372-1714 CITY OF PRIOR LAKE COUNTY OF SCOTT STATE OF MINNESOTA RESOLUTION NO. 05-XXX RESOLUTION CALLING FOR A PUBLIC HEARING BY THE CITY COUNCIL ON THE PROPOSED ADOPTION OF THE ESTABLISHMENT OF THE DEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRICT NO. 4; THE PROPOSED ESTABLISHMENT OF TAX INCREMENT FINANCING DISTRICT NO. 4-1; THE PROPOSED ADOPTION OF THE TAX INCREMENT FINANCING PLAN THEREFOR, AND ON THE PROPOSED AWARDING OF A BUSINESS SUBSIDY. BE IT RESOLVED by the City Council (the "Council") for the City of Prior Lake, Minnesota (the "City"), as follows: Section 1. Public Hearing. This Council shall meet on May 16, 2005,' at approximately 7:30 P.M., to hold a public hearing on the proposed establishment of the Development Program for Development District No. 4, the proposed establishment of Tax Increment Financing District No. 4-1, (an economic development district), the proposed adoption of a Tax Increment Financing Plan therefor, and the proposed awarding of a business subsidy, all pursuant to and in accordance with Minnesota Statutes, Sections 469.124 to 469.134, and Sections 469.174 to 469.1799, inclusive, as amended, and Minnesota Statutes, Sections 116J.993 through 116J.995 in an effort to encourage the development and redevelopment of certain'designated areas within the City; and Section 2. Notice of Public Hearing, Filing of Program and TIF Plan. City staff is authorized and directed to work with Ehlers & Associates, Inc., to prepare the establishment of the Development Program for Development District No. 4, and the Tax Increment Financing Plan for Tax Increment Financing District No. 4-1, and to forward documents to the appropriate taxing jurisdictions including Scott County and Independent School District No. 719. The City Clerk is authorized and directed to cause notice of the hearing, together with an appropriate map as required by law, to be published at least once in the official newspaper of the City not later than 10, nor more than 30, days prior to May 16, 2005, and to place a copy of the Program and Plan on file in the City Clerk's office at City Hall and to make such copy available for inspection by the public. PASSED AND ADOPTED THIS Ill~2DAY OF MARCH, 2005. YES NO Haugen Haugen Fleming Fleming LeMair LeMair Petersen Petersen Zieska Zieska Frank Boyles, City Manager R:LRESOLUTI~DMINRESX200SX3-21-05 Resolution c~q~Afd~i~fll~ll[~vq~t20. District 4 and District 4-1 .doc Phone 952.447.4230 / Fax952.447.4245 SCHEDULE OF EVENTS CITY OF PRIOR LAKE FOR THE ESTABLISHMENT OF THE DEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRICT NO. 4 AND THE ESTABLISHMENT OF TIlE TAX INCREMENT FINANCING PLAN FoR TAX INCREMENT FINANCING DIgTRICT NO. 4-1 (an economic development district) AND THE PROPOSED AWARDING OF A BUSINESS SUBSIDY March 21, 2005 City Council calls for public hearing on the establishment of the Development Program for Development District No. 4, the establishment of Tax Increment Financing District No. 4-1 and the awarding of a business subsidy. March 21, 2005 Project information (property identification numbers and legal descriptions, detailed project description, maps, but/for statement, and list of sources and uses of funds) for drafting necessary documentation sent to Ehlers & Associates. March 21, 2005 Ehlers & Associates confirms with the City whether building permits have been issued on the property to be included in TIF District No. 4-1. April 1,2005 Aprill5,2005 Project information submitted to the County Board for review of county road impacts. [Ehlers will fax & mail on March 30, 2005] Fiscal/economic implications received by School Board Clerk and County Auditor (at least 30 days prior to public hearing). [Ehlers will fax & mail April 13, 2005] April30,2005 Date of publication of hearing notice and map (at least 10 days but not more than 30 days prior to hearing). [Prior Lake American publication deadline April 26, 2005] May 9,2005 Planning Commission reviews Program and Plan to determine if they are in compliance with City's comprehensive plan. May16,2005 City Council holds public hearing at 7:30 P.M. on the establishment of the Development Program for Development District No. 4, the establishment of Tax Increment Financing District No. 4-1 and the awarding of a business subsidy and passes resolution approving the Program, Plan, and awarding of a Business Subsidy. [Ehlers will e-mail council packet info. to the City by May 9, 2005] ,2005 City authorizes Ehlers to request certification of the TIF District. ., 2005 Ehlers & Associates requests certification of the TIF District from the state and county. *Business Subsidy Criteria along with the next annual report need to be submitted to the MN Department of Employment and Economic Development. ** The County Board, by law, has 45 days to review the plan to determine if any county roads will be impacted by the development. Please be aware that the County Board could claim that tax increment should be used for county roads. An action under subdivision 1, paragraph (a), contesting the validity of a determination by an authority under section 469.175, subdivision 3, must be commenced within the later of: (1) 180 days after the municipality's approval under section 469.175, subdivision 3; or (2) 90 days after the request for certification of the district is filed with the county auditor under section 469.177, subdivision1. ~ E H LE RS & ASSOCIATES INC