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HomeMy WebLinkAbout3.B. EDA Minutes 1011111161 Consent Business 3. B. SUAKOPE F TO: Economic Development Authority FROM: Lori Hensen, Deputy City Clerk DATE: 06/16/2015 SUBJECT: EDA Minutes Action Sought Move to approve the EDA Minutes from April 21, 2015 and May 19, 2015. Attachments: April 21, 2015 May 19, 2015 DRAFT OFFICIAL PROCEEDINGS OF THE SHAKOPEE ECONOMIC DEVELOPMENT AUTHORITY REGULAR SESSION LOCATION Council Chambers City Hall 129 Holmes Street South April 21,2015 SHAKOPEE MINNESOTA 7:00 p.m. Present: President Kathi Mocol; Commissioner Matt Lehman; Commissioner Mike Luce; Commissioner Brad Tabke; Commissioner Jay Whiting Staff Public Works Director/Engineer Bruce Loney;City Attorney Jim Thomson; Acting City Clerk Lori Present: Hensen 1. Roll Call 2. Approval of the Agenda Mr. Tabke asked that item 3.C., Scott County CDA 2015 Economic Development Incentive Grant Resolution No.15-6, be removed from the Agenda as the grant has not been received. Moved by Matt Lehman, seconded by Brad Tabke to approve the Agenda as amended. Vote: 5 - 0 Carried 3. Consent Business Moved by Jay Whiting, seconded by Matt Lehman to approve the Consent Agenda. Vote: 5 - 0 Carried A. EDA Minutes Moved to approve the EDA Minutes from March 17 and March 31,2015. (Motion carried under the Consent Agenda) B. EDA Bill List Moved to approve bills in the amount of$6,378.28 for the EDA Fund,which allows for internal charges that are applied to the EDA fund. (Motion carried under the Consent Agenda) C. Scott County CDA 2015 Economic Development Incentive Grant Resolution No.15-6 See item 2. 4. General Business None. 5. Adjourn to Tuesday,May 19,2015 at 7:00 p.m. Moved by Matt Lehman, seconded by Brad Tabke to adjourn. Vote: 5 -0 Carried Y71 / Lori Hens- Acting City Clerk Heidi Emerson Recording Secretary DRAFT OFFICIAL PROCEEDINGS OF THE SHAKOPEE ECONOMIC DEVELOPMENT AUTHORITY REGULAR SESSION LOCATION Council Chambers City Hall 129 Holmes Street South May 19,2015 SHAKOPEE MINNESOTA 7:00 p.m. Present: President Kathi Mocol; Commissioner Matt Lehman; Commissioner Brad Tabke; Commissioner Mike Luce; Commissioner Jay Whiting Staff City Attorney Jim Thomson; Economic Development Coordinator Samantha DiMaggio;Assistant City Present: Administrator Kris Wilson 1. Roll Call 2. Approval of the Agenda Moved by Matt Lehman, seconded by Jay Whiting to approve the Agenda. Vote: 5 - 0 Carried 3. Consent Business Cncl. Lehman requested that item 3.B. be removed from the Consent Agenda. Moved by Matt Lehman, seconded by Jay Whiting to approve the Consent Agenda as amended. Vote: 5 -0 Carried A. EDA Bill List Moved to approve bills in the amount of$152,655.78 for the EDA Fund,which allows for internal charges that are applied to the EDA fund. (Motion carried under the Consent Agenda) Vote: 5 - 0 Carried B. Acquisition of 234 1st Avenue West Ms. DiMaggio addressed the City Council regarding the acquisition of 234 1st Avenue West. The property located at 234 1st Ave. West is a former gas station and convenience store that is currently owned by Scott County as a result of tax forfeiture. The County has already paid to remove both the underground gas tanks and the above ground gas pumps from the site and the parcel has been enrolled in the Minnesota Pollution Control Agency(MPCA)Petroleum Brownfields Program. The County is preparing to offer the property for sale and has given the City the first option to purchase. Located at the corner of 1st Ave. and Atwood St.,the 0.44 acre property sits on the edge of downtown and approximately two blocks east of the location where Rahr Malting is making a significant investment in new buildings. In its current state,the property appears to be a likely candidate for yet another used car lot or similar operation. However,with the other planned redevelopment in the corridor and increased traffic once the 101 bridge project is complete,there could be a higher and better use of the site. The Planning Commission has found acquisition of this property to be consistent with the 2030 Comprehensive Plan and the EDAC has made a recommendation that the EDA acquire this property. Moved by Jay Whiting, seconded by Brad Tabke Moved to authorize the acquisition of 234 1st Avenue West for$106,626 from the Property Acquisition and authorizing the appropriate EDA officials to execute the necessary documents to finalize the acquisition. Vote: 4- 1 Carried Opposed: Matt Lehman 4. General Business A. Tax Increment Financing(TIF)District No. 17--Amazon.com.dedc,LLC The EDA discussed Tax Increment Financing(TIF)District No. 17--Amazon.com.dedc, LLC. Amazon.com is considering leasing a new,build-to-suit building in Shakopee that would be located on 65.93 acres at the northeast corner of Shenandoah Ave. and 4th St. The proposed building would be 850,000 square feet. and would result in an increased tax base and job creation for the City of Shakopee. If granted the requested assistance,Amazon.com and its selected developer would begin construction on the building this spring with anticipated completion by fall of 2016. The proposed TIF district has been reviewed by Springsted,the City's financial consultant,and its analysis is attached for review. This proposal reflects the establishment of an 90%economic development TIF district which over the 9-year term would generate a maximum amount of $5,766,414. The State Auditor will retain$20,760 for administrative costs which leaves the tax increment available for distribution$5,745,654. The recommended allocation of these funds are as follows; • $3,379,250 to Scott County for infrastruction improvements to County Rd. 83 and County Rd. 101. • $473,280 to the City of Shakopee for administrative costs and TIF pooling which will be used to fund out of district infrastructure improvements which the City plans to use on 4th Avenue. • $650,000 to the City of Shakopee is for in district infrastructure improvements which the City plans to use for infrastructure improvements to 4th Avenue. Mr. Lehman expressed concerns over the financial impact of this project. He added that he does not believe this project is good for the community or other businesses. Mr. Whiting stated that he feels that these are necessary road improvements, and future projects will be completed because of this project. Mr. Tabke stated that the City will not be utilizing as much of the TIF as this project will be bringing in to the City,County and School District over the next nine years. He added that taxes will continue to be generated after the nine years as well. Mr. Luce stated that he feels this project is needed to allow the City to move forward with future projects. He added that he is in favor of the project. Moved by Brad Tabke, seconded by Jay Whiting Motion to approve Resolution No. 15-7,Resolution Approving Tax Increment Financing Plan for Tax Increment Financing(Economic Development) District No. 17 and a Modified Redevelopment Plan for the Minnesota River Valley Housing and Redevelopment Project No. 1. Vote: 4 - 1 Carried Opposed: Matt Lehman 5. Adjourn to Tuesday,June 2,2015 at 7:00 p.m. Moved by Matt Lehman, seconded by Mike Luce to adjourn. ote: 5 -0 Carried L 4 ense'00-00P r ��• Acting City 1 Heidi Emerson Recording Secretary