HomeMy WebLinkAboutHRA 3A
IQ
April 4, 2014 NK=:;IPf Item No.
RESOLUTION APPROVING THE MODIFICATION OF THE REDEVELOPMENT PLAN FOR
REDEVELOPMENT PROJECT NO.1 AND ESTABLISHING A TAX INCREMENT FINANCING
DISTRICT AND APPROVING A TAX INCREMENT FINANCING PLAN
April 7,2014 HRA Meeting
Proposed Action
Staff recommends adoption of the following motion: Move to adopt a resolution approving the
modification of the Redevelopment Plan for Redevelopment Proiect No. 1 and the establishment of
Tax Increment Financinci District No. 18 and approving the Tax Increment Financing Plan.
Passage of this motion will result in the creation of Tax Increment Financing (TIF) District No. 18 to
facilitate an expansion of the Menasha Packaging Co. facility in Airlake Industrial Park.
Overview
Menasha Packaging is proposing a 123,000 square foot expansion of their 238,000 square foot
manufacturing facility located at 8085 220th Street West. Menasha is experiencing considerable
growth and needs to add additional warehouse, manufacturing, and office space. The company has
submitted a request for tax increment financing to assist in over $1.3 million in site development costs
associated with the project. The proposed TIF assistance will not exceed $626,018 and will be
provided on a "pay -as -you -go -basis over a nine year period beginning in 2016.
Menasha Packaging has operated in Airlake since 1970 and currently has 221 employees with an
annual payroll of approximately $15.2 million. The Menasha plant, after the proposed expansion, will
have an estimated market value of between $8.0 — 8.75 million and will create an additional 15 jobs.
The City Council reviewed this request for TIF assistance at the March 2411 Council Work Session. The
EDC reviewed this request at their March 25 th meeting and recommended approval. Staff
recommends approval of the proposed modification of the Redevelopment Plan and the creation of
TIF District No. 18. The proposed TIF Plan will be considered by the City Council on April 7 th andthe
Contract for Private Development for this project is expected to be on the April 21, 2014 City Council
meeting agenda.
Primary Issues to Consider
Is this request forTax Increment Financing assistance consistent with the City's policies? The
request is consistent with the City's TIF and Business Subsidy Policies.
Supporting Information
Resolution and Tax Increment Financing Plan
David L. Olsontornmu'-in-Ity and Economic'Development Director
IFinancial Impact: $ $626,018 Budgeted:Y/N N —Source: Captured Tax Increments
HOUSING AND REDEVELOPMENT AUTHORITY FOR THE CITY OF
LAKEVILLE, MINNESOTA
CITY OF LAKEVILLE
DAKOTA COUNTY
STATE OF MINNESOTA
RESOLUTION NO.
RESOLUTION APPROVING THE MODIFICATION OF THE REDEVELOPMENT PLAN
FOR REDEVELOPMENT PROJECT NO. I AND
ESTABLISHING A TAX INCREMENT FINANCING DISTRICT AND
APPROVING A TAX INCREMENT FINANCING PLAN THEREFOR
A. WHEREAS, the Housing and Redevelopment Authority for the City of Lakeville
("Authority") and the City of Lakeville, Minnesota (the "City") have adopted a Redevelopment
Plan (the "Redevelopment Plan") and established the Airlake Redevelopment Project Area and
created Tax Increment Financing Districts within the Airlake Redevelopment Project Area and
adopted Tax Increment Financing Plans with respect to these Tax Increment Districts pursuant to
Chapter 469 of the Minnesota Statutes in an effort to encourage development and redevelopment
of certain designated areas within the City, which Redevelopment Plan, plans and districts have
been amended from time to time; and
B. WHEREAS, it has been proposed that the City establish Tax Increment Financing
(Economic Development) District No. 18 ("TIF District No. 18") as an economic development
district and adopt a Tax Increment Financing Plan therefor (the "TIF Plan").
C. WHEREAS, by Resolution No.14-01 dated March 3, 2014, the Authority
authorized the City to undertake, on the Authority's behalf, all of the public development
activities in connection with the development of the Developer's proposal, including the
administration of tax increment as accounted for in the City's financial statements; and
D. WHEREAS, the Authority has investigated the facts and have caused the
Redevelopment Plan and the TIF Plan to be prepared and has performed all actions required by
law to be performed prior to the approval of the Redevelopment Plan and the TIF Plan; and
NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of the
Authority the Redevelopment Plan, as amended, and the TIF Plan for TIF District No. 18 are
hereby approved.
Adopted this 7th day of April, 2014.
Attest:
Secretary
Chair