City Council workshop packet / draft TIF plan and pavement management plan
August 19, 2026
Published by City of Big Lake
This packet is for a Big Lake City Council workshop on August 19, 2026. It describes a proposed Tax Increment Financing (TIF) district (No. 1-8) to support Packaging Corporation of America (PCA) building a large manufacturing facility on land the City is annexing. The packet explains how the TIF would reimburse the developer on a pay-as-you-go basis from new property tax revenue generated by the project, and it lists timeline steps including a public hearing on September 16, 2026. The packet also includes a draft Pavement Management Plan for 2027–2031 that proposes resurfacing and sealcoating work and gives estimated costs and mileages.
PCA requests TIF assistance for a proposed manufacturing facility of about 550,000 square feet, with an estimated private investment of about $250 million and roughly 125 new jobs (100 hourly and 25 salaried, with hourly wages projected at $25–$45/hour before benefits).
The proposed assistance is a Pay-As-You-Go Tax Increment Revenue Note; the City would not issue general obligation bonds or advance City funds, and reimbursements to the developer would come only from tax increment actually generated by the completed project.
Under current assumptions for a 550,000-square-foot facility, the Note principal would not exceed $6,661,000 (or $12.11 per square foot if the final building is smaller). The TIF Plan shows reimbursement of project costs up to $6,849,000 (including $188,000 for administrative costs) and total estimated tax increment revenues of $9,421,000, with estimated interest expense of $2,572,000.
The packet estimates taxable market value increasing from about $796,500 to about $50,050,000 after the project, producing an estimated annual tax increment of about $1,074,376 in tax payable 2030 (plan-year estimate). The TIF Plan indicates captured tax capacity will be used to reimburse eligible costs and that the City will retain tax increments only to the extent allowed by the development agreement and TIF Act.
Notices to Sherburne County and ISD 727 are planned by August 17, 2026; the City Council public hearing on the TIF Plan is scheduled for September 16, 2026. Construction is anticipated to begin by June 30, 2027, complete by December 31, 2028, with first tax increment expected in 2029 and decertification of the district no later than December 31, 2037.
The draft Plan covers about 13.6 miles proposed for resurfacing and 5.0 miles for sealcoating during 2027–2031, with estimated total costs of $5,710,000. The Plan aims to extend life of 5 miles past 2035 and to resurface a minimum of 2.3 miles per year after 2026.
Staff and the draft TIF Plan state the City would not pledge its General Fund or property tax levy to repay the developer; reimbursements depend on actual tax increments and would be reduced if the project generates less increment than projected.
Informational only / no action (staff recommendation: review and provide questions before September 16 public hearing)
Planned (noted as to be provided by August 17, 2026)
Pending public hearing scheduled for September 16, 2026; adoption is conditional and may occur after the hearing and completion of annexation
Proposed / contingent (would be payable on a pay-as-you-go basis and only from tax increments if the TIF District is established and agreements are executed)
Draft presented at workshop; staff seeks Council direction to finalize and bring back for budget/project approval
This information was published by City of Big Lake. Praveta keeps the source available when the organization provides a public link.
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