Agenda - Economic Development Authority - 08/14/2025

Home

This analysis indicates Zero Zone would need to pay a lease rate that is higher than the market rate to occupy the property, demonstrating assistance for the project may be warranted. If we assume a developer receives $360,000 in TIF assistance, Zero Zone would need to pay a lease rate of approximately $9.20 per square foot for the developer to achieve an average 7percent YOC return for this project within 9 years. This is within the higher end of the assumed market lease rate. Therefore, if the City chooses to provide $360,000 in TIF assistance, we believe it will help facilitate the project and not unduly enrich the applicant. Staff is asking the EDA to review the request for Tax Increment Financing by Zero Zone. Below is a draft schedule outlining the meeting actions and dates required to provide the Tax Increment Financing: August 14, 2025 August 26, 2025 August 27, 2025 By September 5, 2025 September 12, 2025 September 26, 2025 EDA meets at 7:30 a.m. to consider TIF request and makes recommendation to City Council City Council meets at 7:00 p.m. to consider TIF request and call for a public hearing establishing the TIF District Project information, property identification numbers, fiscal impacts and maps sent to Ehlers for drafting documentation. Ehlers confirms whether building permits have been issued on the property to be included in the TIF District. Ehlers conducts internal review of Plans. Fiscal/economic implications received by School Board Clerk and County Auditor (at least 30 days prior to public hearing) and County receives information for review of county road impacts. [Ehlers will distribute.] *The County Board, by law, has 45 days to review the TIF Plan to determine if any county roads will be impacted by the development. Because City staff believes that the proposed TIF district will not require unplanned county road improvements, the TIF Plan was not forwarded to the County Board 45 days prior to the public hearing. Please be aware the County Board could claim that tax increment should be used for county roads, even after the public hearing. Publication of hearing notice and map in the Anoka County Union Herald (at least 10 days but not more than 30 days prior to hearing). [Ehlers will submit notice, map and instructions. Publication deadline: September 23, 2025.] EDA meets at 7:30 AM to consider recommending the Plans in connection with October 9, 2025 the TIF District. [Attorney provides resolution by October 1, 2025.] October 14, 2025 October 15, 2025 City Council holds public hearing at 7:00 PM on the modification to the Development Program for Development District No. 1 and the proposed Establishment of Tax Increment Financing District No. 19 (Zero Zone) and considers a resolution approving the Plans. [Ehlers and attorney provide packet information October 7, 2025.] City Council considers approval of TIF agreement. City considers an Interfund Loan resolution in connection with the TIF District. City may issue building permits.