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Home My WebLink About6.B. EDA and Council Open Public Hearing on Proposed Tax Increment Financing and Contact for Private Development for Trident Development, LLC �O. +V . CITY OF SHAKOPEE Memorandum CASE NO.: 12002 TO: Honorable Mayor and City Council Economic Development Authority (EDA) Mark McNeill, City Administrator/EDA Executive Director FROM: R. Michael Leek, Community Development Director SUBJECT: Consideration of Proposed Tax Increment Financing (TIF) Plan for TIF Dis�rict No. 15 (Trident L.L.C. senior housing project) and Contract for Private Development (CPD) between the City of Shakopee and Trident Development, L.L.C. MEE''�ING DATE: May 15, 2012 INTRODUCTION: The applicant has provided comments to the draft Contract for Private Development, and staff,the City's attorney and applicants felt it would be best to work through the terms of the CPD so that the CPD and TIF plan can be presented together to the City Council and EDA. Thus,the City Council and EDA Board are asked to open the continued public hearing on the above-named TIF Plan and CPD, and continue the public hearing to the meeting of June 5, 2012. RELATIONSHIP TO CITY GOALS: The proposed project and requested actions relative to the TIF Plan and CPD relate to the following City Goals; B. Positively manage the challenges and opportunities presented by growth, development and change. D. Maintain, improve and crea�e strong partnerships with other public and private sector entities. ACTIONS REQUESTED: Ciry Council: The City Council is asked to take the following actions; • Open the Council public hearing; • Take testimony; • Pass a motion continuing the public hearing on the Trident senior housing project TIF Plan and CPD to the meeting of June 5, 2012. H:\CC\2012\5-15-12\Trident rpt_05152012_final.docl EDA: The EDA is asked to take the following actions; • Convene the EDA meeting; • Open the public hearing; • Take tes�imony; • Pass a motion continuing the public hearing to June 5, 2012; • After completing any other EDA business, adjourn the EDA to June 5, 2012. � , �, /~ � ` '�� R. Michael Leek Community Development Director H:\CC\2012\5-15-12\Trident rpt_05152012_final.doc2 OFFICIAL PROCEEDINGS OF THE ECONOMIC DEUELOPNIENI'AUTHORTI'Y SHAKOPEE, MINNESOTA Regular Session April 17, 2012 Members Present: President Steve Clay, Commissioners Jay Whiting, Pamela Punt, Matt Lehman and Brad Tabke Staff Members Present: Mark McNeill, City Administrator; R Michael Leek, Community Development Director; Bruce Loney, Public Works Director/Engineer; Julie Linnihan, Finance Director/City Clerk; and Jim Thomson, City Attorney l. Roll Call President Clay called the meeting to order and roll was noted as above. 2. Approval of the Agenda Mr. McNeill asked to remove item 4. Amendment of Business Subsidy Policy. Whiting/Lehman moved to approve the agenda as amended. Motion carried 5-0. 3. Approval of Minutes of Marcb 6, 2012 and March 20, 2012. Whiting/Punt moved to approve the minutes of March 6, 2012 and March 20, 2012. Motion carried 5-0. 4. Amendment of Business Subsidy Policy. Item removed froin agenda. S Adjourn. Lehman/Whiting moved to adjourn to Tuesday, April 24, 2012 at 7:00 P.M. Motion carried 5-0. � lie Linnihan Finance Director/City Clerk Kim Weckman Recording Secretary OFFICIAL PROCEEDINGS OF THE ECONOMIC DEVII,OPMII�I'T AUTHORTII' SHAKOPEE, MINNESOTA Adj. Regular Session April 24, 2012 Members Present: President Steve Clay, Commissioners Jay Whiting, Pamela Punt, Matt Lehman and Brad Tabke. Staff Members Present: Mark McNeill, City Administrator; R Michael Leek, Community Development Director; and Julie Liimihan, Finance Director/City Clerk 1. Roll Call President Clay called the meeting to order and roll was noted as above. 2. Approval of the Agenda No agenda to be approved 3. Joint CounciUEDA Public Hearing on Establishing Tax Increment Financing District No. 14 and Adoption of a Tax Increment Financing Plan for the Proposed TIF District—Council Res. No. 7191; EDA Res. No. 12-2 and 12-3. Whiting/Lehman moved to open the public hearing. Motion carried 5-0. Michael Leelc provided background on the SanMar business. The property is located on the plat of Opus MVW on the south side of 4r�' Avenue at County Road 83. The proposal consists of 580,000 square feet of warehouse distribution center with 10,000 square feet of office, and a 160,000 square foot mezzanine area for a piece-picking operation. The firm projects the creation of 150 jobs within two years of coinpletion of the minimuin improvements in the Tax Increment Financing district. 117 jobs would be at an average wage of$12.00 an hour with an absolute floor of$9.00 an hour. These amounts do not include benefits and bonuses. Thirty three other jobs would be at an average wage of $16.50 an hour with a wage floor of$14.00 an hour. Tom Denaway, an analyst with Springsted, Inc. presented. He provided an overview of the proposed TIF District No. 14.and provided an overview of the development scenario. Denaway tallced about the qualifications needed for economic developinent district, and what statutory findings are made to approve a TIF plan. He said that one of the main findings of the City must be that the proposed development in the opinion of the City would not reasonably be expected to occur solely through private ulvestnient within the foreseeable future, except far the assistance provided by TIF (the "but/for" test). Denaway said that after the review of the project, considering revenue and other key factors, the project does inerit the assistance in the fonn of TIF. Official Proceedings of the Apri124, 2012 Economic Development Authority Page 2 Denaway also discussed the marlcet value analysis test. This test is that the increased market value that could reasonably be expected to occur without the use of TIF would be less than the increase in the market value estimated to result froin the proposed development, after subtracting the total subsidy provided. The total revenue created over the life of the TIF project is $3,086,583 Julie Eddington, attorney with Kennedy & Graven that represents the City, discussed the Contract for Private Development and outlined the purpose of the contract. Jordan Lott of J.J. Development/SanMar thanked City Council and the EDA for their support in this project. Lehmai�/Whiting moved to close the public hearing. Motion can-ied 5-0. Leek advised the Council that in their packet are documents from the Shakopee School District and Scott County indicating their support of the project as well as another TIF project that come to City Council on May l, 2012. Whiting/Lehmai� offered Resolution No. 12-2, A Resolution Approving a Tax I�7crement Financing Plan For Tax Increment Financing (Economic Developmen�) District No. 14 Within The Minnesota River Valley Housing And Redevelopment Project No. l, and moved its adoption. Motion carried 5-0. Whiting/Lehman offered Resolution No. 12-3, A Resolution Finding The Tax Increment Financing Plan For Tax Inerement Financing District No. 14 Located In The Minnesota River Valley Housing and Redevelopment Project No. 1 Consistent With The General Plan For Development Of The City Of Shakopee, and moved its adoption. Motion carried 5-0. 4. Adjourn. Lehman/Whiting inoved to adjourn to Tuesday, May 1, 2012 at 7:00 P.M. Motion , carried 5-0. � //� �; / . % ��li�� G�l! . '��-� L,l-�.l-�-. , t�-�.-. ulie Liiuiihan Finance Director/City Clerk Kim Weckman Recording Secretary