HomeMy WebLinkAboutHRA Item 03June 11, 2015 0 Item No.
RESOLUTION APPROVING THE MODIFICATION OF THE REDEVELOPMENT PLAN FOR
REDEVELOPMENT PROJECT NO.1 AND ESTABLISHING TAX INCREMENT FINANCING
DISTRICT NO. 20 AND APPROVING A TAX INCREMENT FINANCING PLAN
June 15, 2015 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. 20 and approving the Tax Increment Financing Plan
Passage of this motion will result in the creation of a new Tax Increment Financing (TIF) District No. 20
to facilitate an expansion of the building occupied by Mendell Inc. in Airlake Industrial Park.
Overview
Mendell Inc. a medical device manufacturer, is proposing a 18,700 square foot expansion of their
existing 28,600 square foot building located at 21463 Grenada Avenue. Mendell 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 $455,035 in site
development costs associated with the project. The proposed TIF assistance will not exceed $155,912
and will be provided on a "pay -as -you -go -basis over a nine year period beginning in 2017.
Mendell has operated in Lakeville since 2003 and currently has 94 employees. Mendell will occupy a
total of $47,300 square feet of the building owned by Lakeville Technologies Inc. after the expansion
and will create a minimum of 12 new jobs over the next two years with wage rates ranging from
$31,200 to $85,000 per year. The Lakeville Technologies Inc. building after the proposed expansion
will have an estimated market value of $3,022,400.
The City Council reviewed this request for TIF assistance at the April 27" Council Work Session. The
EDC reviewed this request on April 28th and the proposed TIF Plan at their May 26th meeting and
recommended approval. Staff recommends approval of the proposed modification of the
Redevelopment Plan and the creation of TIF District No. 20. The proposed Contract for Private
Development/Business Subsidy Agreement is scheduled to come before the Council on July 6, 2015.
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.
Supporting Information
• HRA Resolution and Tax Increment Financing Plan
David L. Olson, Community and Economic Development Director
c: Bryan Bartz, Mike Waterston - Mendell, Jack Matasosky - APPRO, Mikaela Huot - Springsted
Financial Impact: $ $164.712 Budgeted:Y/N N Source: Captured Tax Increments
Envision Lakeville Community Value: Diversified Economic Development
HOUSING AND REDEVELOPMENT AUTHORITY FOR THE CITY OF
LAKEVILLE, MINNESOTA
CITY OF LAKEVILLE
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. 20 ("TIF District No. 20") as an economic development
district and adopt a Tax Increment Financing Plan therefor (the "TIF Plan").
C. WHEREAS, by Resolution No. 15-01 dated May 4, 2015, 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. 20 are
hereby approved.
Adopted this 15th day of June, 2015.
Attest:
Secretary
Chair