HomeMy WebLinkAbout09-17-90CITY OF LAKEVILLE
HOUSING AND REDEVELOPMENT AUTHORITY MEETING
SEPTEMBER 17, 1990
The meeting was called to order at 6:45 p.m. by Chair Sindt.
Roll call was taken. Present: Commissioners Ruhmann, Zaun,
Harvey and Sindt. Absent: Commissioner Mulvihill.
Also present: B. Erickson, Executive Director; R. Knutson,
City Attorney; D. Feller, Finance Director and C. Friedges,
City Clerk.
MINUTES
The minutes of the July 31, 1990, H.R.A. meeting were
approved as printed.
ITEM 3
Dennis Feller presented a proposed resolution which would
establish Tax Increment Financing (TIF) District No. 12, the
Lakeville Commerce Center property, and modify I -35
Redevelopment Project No. 1 by increasing the project
redevelopment area of the existing TIF district that was
created in 1984. The project area is located along I -35 from
approximately 1/2 mile north of County Road 64 to McStop.
The modified project area would include a parcel of land
located immediately to the south of County Road 70 abutting
Keokuk Avenue, which is contiguous with TIF District No. 12.
Mr. Feller explained that the reason for creating TIF
District No. 12 is to allow the City to write down land costs
for those parcels of property that are within the district.
However, the developer must demonstrate to the City Council
that development would not have occurred without tax
increment assistance. He went on to explain that up to 25%
of the increment can be used for improvements outside the
district, such as upgrading the I -35 /County Road 70 bridge
and debt service payments for the 1984 General Obligation
Water Revenue Bonds which were used to finance the
construction of the well (No. 7), pumphouse and water tower.
Mr. Feller also explained that this economic development
district will not exist for more than 10 years, during which
the City can only collect eight years of tax increment from
it. Certain types of commercial development are excluded
from this project, such as golf courses, country clubs,
massage parlors and sports facilities. The 1988 Tax
Increment Law also states that no more than 25% of the
development can consist of retail food and beverage service,
automobile sales or service, recreation and entertainment
facilities.
LAKEVILLE H.R.A. MEETING
SEPTEMBER 17, 1990
PAGE 2
Mr. Feller explained that this TIF district is subject to the
new laws concerning Local Government Aid (LGA) and Homestead
and Agricultural Credit Aid (HACA). State aids to the City
would be reduced approximately 39% as a result of the
district. The City can either levy for the loss of state
aids or contract with the developer for repayment of a
portion of the tax increment assistance. According to state
statutes, the district will dissolve if no development takes
place within three years from the date of certification.
Commissioner Mulvihill arrived at the meeting; 6:49 p.m.
It was pointed out that establishment of TIF District No. 12
does not commit the City to take any further action on the
development of this property.
Commissioner Zaun asked if there is a limit to the amount of
administrative fees the City can charge the developer, and
Mr. Feller indicated there is not.
In answer to Commissioner Ruhmann's question regarding a
projected timeline, Mr. Feller explained that an average of
three parcels would be developed each year from 1991 to 1997,
as outlined in Appendix "G" of Tax Increment Financing Plan
No. 12 (on file in the City Clerk's office).
90.27 Motion was made by Harvey, seconded by Ruhmann to approve
Resolution No. 90 -04 adopting a modification to I -35
Redevelopment Project No. 1, and establishment of Tax
Increment Financing District No. 12 (Lakeville Commerce
Center) to be located within the redevelopment project and
the proposed approval and adoption of a modified
redevelopment plan and tax increment financing plan relating
thereto.
Roll call was taken on the motion. Ayes, Zaun, Sindt,
Mulvihill, Harvey, Ruhmann.
There being no further business, Chair Sindt adjourned the
meeting at 6:53 p.m.
Respectfully submitted,
Lyn tte Mulvihill, Secretary ett YjSindt, Chair