Chaska council, EDA authorize letter of intent for TIF to support EDCO headquarters

Chaska council, EDA authorize letter of intent for TIF to support EDCO headquarters City staff asked the City Council and, separately, the Chaska Economic Development Authority to authorize a non-binding letter of intent (LOI) to begin the tax-increment financing (TIF) process for a proposed EDCO headquarters and prefinished-metal-siding manufacturing facility in the Southwest Chaska Business Park. The LOI matters because it begins the formal steps to prepare a TIF district and development agreement that could provide public assistance to offset eligible project costs and off-site infrastructure needed to make the development financially feasible. Julie (city staff) told the council the project is planned on a site southeast of Angler Boulevard and Creek Road, just west of two recently built industrial buildings. The approved preliminary site and building plans (council approval in May) show a two-story, roughly 235,000-square-foot headquarters building with manufacturing and warehouse space. Julie said the project qualifies for an eight-year economic-development TIF district under current city policy for industrial projects and that the LOI estimates eligible assistance of up to three times the new taxes generated by the project (approximately $1,644,000 as shown in the LOI). The LOI is not legally binding but sets the terms to prepare a formal TIF plan and a development agreement; both would return to the council and EDA for final approval. Council Member Grama moved to authorize the city administrator to execute the LOI; Council Member Benesch seconded. The council approved the motion by voice vote. The same LOI and recommendation were presented to the Chaska Economic Development Authority at its meeting later the same evening; the EDA authorized its executive director to sign the LOI in a separate vote. Julie and staff noted the LOI is contingent on the developer receiving final planning approvals and that staff will draft a formal TIF plan and development agreement for future public hearings and approvals. EDCO representatives said they are finalizing project details and expressed enthusiasm for working with the city. The LOI and subsequent TIF plan, if approved, would require the city to create the TIF district, negotiate a development agreement that details eligible costs and reimbursement timing, and fulfill statutory notice and public hearing requirements before any TIF payments or reimbursements occur.