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ARDEN HILLS CITY COUNCIL—APRIL 11, 2016 4 Community Development Director Hutmacher indicated that Land O'Lakes has requested a Minnesota Investment Fund (MIF) loan of up to $1,000,000. If approved, DEED would provide grant funds to the City which would administer the forgivable loan to Land O'Lakes. If the package of public financial assistance is approved, Land O'Lakes intends to submit plans for City consideration of land use approvals. Approval of Resolution 2016-013 and the tax abatement and MIF documents referenced therein have no bearing on the land use approval process. Community Development Director Hutmacher noted that the City Council reviewed the draft Abatement Contract with Land O'Lakes at the March 21, 2016, City Council work session. The terms of the Abatement Contract have not changed since that time. The Abatement Contract and documents related to the Minnesota Investment Fund Loan are available for public inspection at the City Clerk's office. Staff recommended approval of the abatement agreement. Councilmember Holden asked if the agreement had anything to do with the proposed building plans. Community Development Director Hutmacher explained that the land use approval would be separate from the property abatement agreement. Councilmember Holmes requested clarification from staff on the newspaper article that was printed in the paper today. Community Development Director Hutmacher commented on the newspaper article and indicated that the maximum County abatement was $1.5 million. Councilmember Holmes indicated that the City's portion of the abatement would be $38,000 per year. Chuck Mertensotto, 3473 Lake Johanna Boulevard, expressed concern with the lack of public transportation in Arden Hills. He recommended that public transportation run directly to the expanded Land O'Lakes facility. Gregg Larson, 3377 North Snelling Avenue, commented on the recent City newsletter. He was concerned about the one-sided article that was written by Land O'Lakes and questioned why the City had not provided a balanced article regarding this matter. He believed the pros and cons should have been further discussed by the City. He provided further comment on his views of the proposed tax abatement and believed that Land O'Lakes should pay their fair share on property taxes over the next 15 years. He feared that the only benefiting party from the proposed tax abatement would be Land O'Lakes and not the City of Arden Hills. He encouraged the City to conduct further analysis to see what the City would be gaining from the $650,000 tax giveaway. He reviewed the recent earnings for Land O'Lakes noting that they were at record highs and had a very strong balance sheet. He inquired if there was an alternative and asked when the giveaways would stop. He questioned how the City would address future tax abatement requests from new businesses moving into TCAAP. He believed that welfare was intended for those in need. He encouraged the City Council to strike the tax abatement language from the Resolution being considered and allow for more careful thought before taking action on this item.