Agenda - Council - 08/24/2021 - Laserfiche WebLink

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CC Regular Session Meeting Date: 08/24/2021 Submitted For: Sean Sullivan, Community Development By: Sean Sullivan, Community Development Information 6. 1. Title: PUBLIC HEARING: Adopt Resolution #21-241 Approving The Modification To The Development Program For Development District No. 1 and Establishing Tax Increment Financing District No. 18: Oppidan Industrial Within Development District No. 1 and Approving The Tax Increment Financing Plan Therefor; and Authorizing An Interfund Loan and Resolution #21-242 Authorizing Execution of a Tax Increment Financing (TIF) Agreement: Oppidan Incorporated, Case of Ramsey Industrial Owner LLC and Oppidan Incorporated Purpose/Background: PURPOSE The purpose of this case is to consider multiple actions regarding the Oppidan Incorporated TIF Business Assistance Application which was received by reviewed by the EDA at the July 8, 2021 meeting. This request is specifically related to Oppidan Incorporated proposed three building 405,000 square foot industrial complex 1. TIF PLAN AND INTERFUND LOAN: Consider support of the attached Resolution #21-XXX Approving the Modification to the Development Program for Development District No. 1 and Establishing Tax Increment Financing District No. 18: Oppidan Industrial. This step does not award TIF but is a step in the process that allows the City to award TIF. Awarding the TIF Request is covered in Step 2 below. Some highlights included in the TIF Plan: a. Geographical boundary of Development District No. 1 and TIF District 18 b. Statutory requirements relating to type of TIF District being created, duration of TIF District and impacts to future tax base. This district is considered an Economic Development District. c. Provision of a a not -to -exceed budget number ($3,091,277) for eligible development activities to take place within the proposed TIF District 18 that can be financed ($1,172,000 in business assistance, remainder for uses such as public infrastructure improvements and administration of district). d. Findings and "But For" Test (Appendix C) documenting that the TIF plan and project is in compliance with Minnesota Statutes. e. The TIF Plan does not include inter fund loan language. However, Resolution #121-XXX establishes an "ability" for the City to utilize an inter fund loan to pay for up front administrative/legal costs associated with TIF District #18; and repay said inter fund loan with TIF District #18 proceeds. The City is not borrowing any money in this request. It is set up as a 'pay as you go' package, meaning assistance is only provided if tax increment is created. 2. TIF AGREEMENT: Consider support of the attached Resolution #21-XXX authorizing execution of a Tax Increment Financing (TIF) Agreement: Oppidan Industrial. This is the actual TIF award for Ramsey Industrial Owner and Oppidan Incorporated ($1,172,000 Pay -Go TIF Note). This document includes all terms and conditions for this specific deal. BACKGROUND (project) The project consists of: A. The purchase of 43 acres of land from Hageman Holdings for the Oppidan Industrial project and further development of Bunker Lake Business Park. The estimated total cost for this step is $4.050M. Assistance is only provided the the area related to the Oppidan site plan, not areas for future development. B. Within the larger 43-acre parcel, the Developer desires to plat 27.06 acres to construct Building 1 - 111,300 SF, Building 2 - 147,000 SF and Building 3 - 147,000 SF. Collectively, these three industrial buildings will total 405,300 SF. No users have been identified for these buildings but they need to be manufacturing,