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01-09-2024 EDC MinutesCHANHASSEN ECONOMIC DEVELOPMENT COMMISSION REGULAR MEETING January 9, 2024 Chair Anderson called the meeting to order at 5:39 p.m. MEMBERS PRESENT: Chair Eric Anderson, Vice Chair Duke Zurek, Stacy Goff, Luke Bame, Cohen Lee MEMBERS ABSENT: Chris Freeman STAFF PRESENT: Samantha DiMaggio, Economic Development Manager; Eric Maass, Planning Director (remotely) PUBLIC PRESENT: Nick Anhut, Ehlers, and Nick Asta and Peter Schroeder, Roers. Commissioner Zurek moved, and Commissioner Goff seconded to approve the agenda. All voted in favor and the motion carried unanimously with a vote of 5 to 0. APPROVAL OF MINUTES: APPROVE ECONOMIC DEVELOPMENT COMMISSION MINUTES DATED DECEMBER 12, 2023 Commissioner Bame moved, and Commissioner Lee seconded to approve the Minutes of the Economic Development Commission meeting dated December 12, 2023, as presented. All voted in favor and the motion carried unanimously with a vote of 5 to 0. DISCUSSION/GENERAL BUSINESS ITEMS: 1. West 78th Street Renewal and Renovation TIF District Application—Roers Economic Development Manager, Samantha DiMaggio, reviewed the TIF application from Roers Companies for a TIF District for the redevelopment of the closed Chanhassen Cinema and the Country Inn & Suites. Roers is proposing to construct two new vertical mixed-use buildings. Each building would include both residential and commercial space as well as underground parking. The total redevelopment is estimated to cost $134.6 million. The developer is showing a financing gap of $6.2 million which is why they are requesting TIF assistance. The funds generated from the TIF District will be used to pay for demolition and site work, including stormwater, utilities, and the extension of Laredo Drive. State statute establishes these expenses as eligible to be paid for through TIF. Economic Development Commission – January 9, 2024 2 This would be a "pay-as-you-go" TIF, which means that the taxes would be paid by the owner/developer and would be rebated once it is determined that the expenditures are valid, and the goals of the project are met. Pay-as-you-go financing relies on the private developer or property owner to initially finance the costs of the TIF improvements. A development agreement between the authority and the developer then provides the developer will be repaid as tax increments are collected. This form of TIF structuring removes financial risk to the city. Commissioner Bame moved, and Commissioner Zurek seconded to recommend that the City Council, acting as the Economic Development Authority, approve the request to establish a renewal and renovation TIF district and enter into a development contract for TIF assistance with the applicant. All voted in favor and the motion carried unanimously with a vote of 5 to 0. ADJOURNMENT: Commissioner Bame moved, and Commissioner Goff seconded to adjourn the meeting. All voted in favor and the motion carried unanimously with a vote of 5 to 0. The Economic Development Commission meeting was adjourned at 6:45 p.m. Submitted by Samantha DiMaggio Economic Development Manager