HomeMy WebLinkAboutHRA Item 03September 18, 2015 Item No.________
RESOLUTION APPROVING THE MODIFICATION OF THE REDEVELOPMENT PLAN FOR
AIRLAKE REDEVELOPMENT PROJECT AREA NO.1 AND ESTABLISHING TAX INCREMENT
FINANCING DISTRICT NO. 21 AND APPROVING A TAX INCREMENT FINANCING PLAN
September 21, 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 Airlake Redevelopment Project Area No. 1 and the
establishment of Tax Increment Financing District No. 21 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. 21
to facilitate a new manufacturing and warehouse facility for SSB Manufacturing Company in Interstate
South Logistics Park.
Overview
SSB Manufacturing Company has submitted an application for Tax Increment Financing. The
proposed project is a 240,000 square foot manufacturing and warehouse facility. SSB Manufacturing
is the company that manufactures Serta and Simmons mattresses.
The estimated development cost of the project is $15.7 million and it is proposed to be located on a
23 acre site in the new Interstate South Logistics Park located in the southwest corner of Co. Rd. 70
and Dodd Blvd (see attached site plan.) The project would be a build-to-suit-to-lease project with
Scannell Properties constructing the building and leasing it back to SSB Manufacturing.
The project will result in the creation of 200 new jobs in Lakeville and the State of Minnesota. The
average starting wage is $36,100 ($17.35 per hour) excluding benefits. The total investment in
machinery and equipment for this project is $10 Million in addition to the $15.7 million project
construction cost
The City Council/HRA reviewed this request for TIF assistance at the September 8,2015 HRA Meeting.
The EDC reviewed this TIF Plan on August 25th and recommended approval. Staff recommends
approval of the proposed modification of the Redevelopment Plan and the creation of TIF District No.
21.
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
David L. Olson, Community and Economic Development Director
c: Ron Richmond SSB Manufacturing, Dan Salzer, Scannell Properties, Chris Schastock, CBRE
Financial Impact: $_$1,607,350 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. 15-____
RESOLUTION APPROVING THE MODIFICATION OF THE REDEVELOPMENT PLAN
FOR AIRLAKE REDEVELOPMENT PROJECT AREA 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 No. 1 and created Tax
Increment Financing Districts within the Airlake Redevelopment Project Area No. 1 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 Authority and the City establish Tax Increment
Financing (Economic Development) District No. 21 (“TIF District No. 21”) as an economic development
district and adopt a Tax Increment Financing Plan therefor (the “TIF Plan”).
C. WHEREAS, by the Authority requests 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. 21 are hereby approved.
Adopted this 21st day of September, 2015
_____________________________
Douglas P. Anderson, Chair
Attest: _____________________________
Bart Davis, Secretary
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Proposed TIF District No. 21SSB Manufacturing Company
Addition to Project Area BoundaryAirlake Redevelopment Project Area