HomeMy WebLinkAboutHRA Item 3October 16, 2014 Item No.
RESOLUTION APPROVING THE MODIFICATION OF THE REDEVELOPMENT PLAN FOR
REDEVELOPMENT PROJECT NO.1 AND ESTABLISHING TAX INCREMENT FINANCING
DISTRICT NO. 19 AND APPROVING A TAX INCREMENT FINANCING PLAN
October 20, 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 Project No. 1 and the establishment of
Tax Increment Financing District No 19 and approving the Tax Increment Financing Plan
Passage of this motion will result in the City Council being able to approve the creation of a new Tax
Increment Financing (TIF) District No. 19 to facilitate an expansion of the building occupied by BTD.
Overview
BTD Manufacturing is proposing to occupy a 200,000 square foot expansion of the Fulford Group
Warehouse located at 21350 Cedar Avenue. BTD 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 $4.3 million in acquisition and site development costs
associated with the project. The proposed TIF assistance will not exceed $1,077,832 and will be
provided on a "pay -as -you -go -basis over a nine year period beginning in 2017.
BTD has operated in Airlake since 2005 and currently has 215 employees. BTD will occupy 412,000
square feet of the Fulford Group Warehouse after the expansion and will create a minimum of 100
new jobs over the next two years with wage rates of $14-30 per hour. The Fulford Building after the
proposed expansion will have an estimated market value of between $12.6 - 14.1 million.
The City Council reviewed this request for TIF assistance at the September 15th Council Work Session.
The EDC reviewed this request on August 2611 and the proposed TIF Plan at their October 7th meeting
and recommended approval. Staff recommends approval the proposed modification of the
Redevelopment Plan and the creation of TIF District No. 19. The proposed Contract for Private
Development/Business Subsidy Agreement will come before the Council before the end of the year.
Primary Issues to Consider
• Is this request for TIF assistance consistent with the City's policies? The request is consistent
with the City's TIF and Business Subsidy Policies. The County Board has adopted the attached
resolution indicating that this project is not consistent with the County's TIF Policy.
Supporting Information
• Resolution and Tax Inc ement Financing Plan
David L. Olson, Community and Economic Development Director
c: Paul Gintner - BTD, Dave Welte - BTD, Jack Matasosk - APPRO, Mikaela Huot - Springsted
Financial Impact: $ $1,077,832 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. 1 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. 19 ("TIF District No. 19") as an economic development
district and adopt a Tax Increment Financing Plan therefor (the "TIF Plan").
C. WHEREAS, by Resolution No. dated September 22, 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. 19 are
hereby approved.
Adopted this 20th day of October, 2014.
Attest:
Bart Davis, Secretary
Douglas P. Anderson, Chair