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HomeMy WebLinkAbout2011-053 Council Resolution• Council Member Roeser introduced the following resolution and moved its adoption: CITY OF LINO LAKES RESOLUTION NO. 11 -53 RESOLUTION ACCEPTING THE REDEVELOPMENT TASK FORCE REPORT WHEREAS, the City Council ( "Council ") of the City of Lino Lakes (the "City ") requested that the Economic Development Advisory Board ( "EDAC ") act as a Redevelopment Task Force to study the issues of nonconforming properties in the City; and WHEREAS, EDAC determined its objective was to consider whether City ordinances regarding nonconforming properties impede achieving EDAC's goal of stabilizing the City's tax base; and WHEREAS, EDAC examined the issues surrounding nonconformities within the City and developed recommendations for Council consideration to address nonconformities; and IPWHEREAS, EDAC completed a final report entitled Redevelopment Task Force Workbook. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LINO LAKES, MINNESOTA AS FOLLOWS: 1. The City Council accepts the Redevelopment Task Force Workbook. Adopted by the Council of the City of Lino Lakes this 23th day of May, 2011. ATTEST: The motion for the adoption of the foregoing resolution was duly seconded by Council Member O'Donnell and upon a vote being taken thereon the following voted in favor thereof: O'Donnell, Roeser, Rafferty, Gallup, Reinert The following voted against same: none • • • • • AGENDA ITEM 6B STAFF ORIGINATOR: Mary Alice Divine MEETING DATE: May 23, 2011 TOPIC: Consider Approval of Resolution No. 11 -53, Accepting Redevelopment Task Force Workbook VOTE REQUIRED: Simple Majority (3/5 Vote) BACKGROUND: The Lino Lakes City Council requested that the Lino Lakes Economic Development Advisory Committee (EDAC) act as a Redevelopment Task Force to study issues surrounding underused and nonconforming properties in the City. EDAC studied the issues and completed a draft of its workbook with recommendations for council consideration. In formulating a direction to study underused, nonconforming and vacant properties in Lino Lakes, EDAC determined it was necessary to: 1. Identify the properties 2. Determine the impact these properties have on the City's tax base 3. Determine the impediments that prevent the properties from being used or redeveloped 4. Determine what actions — whether through regulatory change, financial incentives, public investment, or marketing assistance —could be proposed that would benefit the City and create an environment that supported continued stabilization of the City's commercial /industrial tax base. Property Identification Staff completed an initial inventory of commercial and industrial properties on Lake Drive and Hodgson Road, the two major corridors where the majority of properties are either guided, zoned or historically have been used for commercial /industrial purposes. An initial inventory resulted in 163 properties. After eliminating all vacant parcels and single family homes, 83 parcels remained. Of those, only six are developed with an existing use that is currently nonconforming to the zoning ordinance. More notable is that fact that 38 (46 %) of those properties are served by private wells. Since access to water is key to installation of a fire suppression system, and such a system is required if the use in a building changes, the lack of city infrastructure is a greater impediment to reuse or redevelopment than the issue of nonconformities. Therefore the final inventory focused on 23 properties that are a substantial distance from water mains and therefore • are the greatest challenge to redevelop over time. Of those properties, four are currently delinquent on property taxes and two are vacant. • • Market Analysis City taxes from all commercial and industrial properties in Lino Lake amounts to $1,645,000. City taxes from all properties inventoried is approximately $65,000. Staff performed a subjective assessment of properties that are either currently vacant or have an increased likelihood of becoming vacant in the future. If all those properties were to cease paying taxes, the City would lose approximately $19,000 in taxes annually. This is approximately 1.2% of the City portion of all commercial and industrial properties in the City. Impediments to Redevelopment/Reuse of Properties The purpose of non - conforming regulations is twofold. It guarantees a property owner rights to continue the use the site. It also provides a mechanism to eventually spur redevelopment of a site with a use that is appropriate with current city regulations should that use be discontinued. • Use: in general, non - conformity of a use occurs when the use is discontinued for a period of one year. Any subsequent use must be conforming to current regulatory standards. • Building: Non - conforming buildings are usually the result of changes to architectural standards and setbacks. The buildings may continue to be used, however, if the use changes, the city requires that the building continue to meet all building and fire code requirements. • Site: non - conforming sites are usually the result of changes to parking, setbacks or lot size requirements. Any change in use requires bringing the lot into conformance with current standards. • Infrastructure: the city's fire code requires that most commercial /industrial buildings over 2,000 sq. ft. have a fire suppression system. It is costly for sites that do not have access to public utilities to address this issue through on -site private well fire suppression. Through the inventory of sites completed by the task force, it became clear this was a major impediment to the sale and reuse of buildings along the Lake Drive and Hodgson Road corridors where utilities are not available. Action Steps EDAC has identified courses of action the City could take in regards to nonconforming uses and properties that are underserviced, zoned, guided or used as commercial /industrial and don't have immediate access to infrastructure: • Action 1: Allow market forces to determine the redevelopment of nonconforming properties. Action 2: Expedite the redevelopment of nonconforming properties by providing funding sources for the acquisition of priority properties as they become available; extend utilities to developable sites; provide business loans for special assessments or rehabilitation. This requires the City Council to determine it wants to make a financial commitment to redevelopment and how those funds can be made available. Options available for the City Council to consider: • Tax Increment Financing • Tax Abatement • Special Assessments imposed upon the property owner(s) to pay for improvements that benefit the property • Establishing sewer /water funding for economic development zones • Developing a policy of using pooled TIF for a revolving economic development fund. This allows 20% or 25% of total new increment from TIF districts to be spent outside the boundaries of the TIF district • Encourage private equity in the form of an Economic Development Corporation Other options to provide public funding sources to spur public investment in private development entail an additional tax levy including: • Anoka County HRA levy • Lino Lakes Economic Development Authority (EDA) levy Action 3: Consider changes to zoning ordinances to allow uses within commercial /industrial zones which are not currently allowed. To implement the draft Comprehensive Plan, staff is reviewing city ordinances and evaluating existing allowable uses in the commercial and industrial zones. EDAC Recommendation EDAC's Redevelopment Task Force recommends that the City Council pursue Actions 2 and 3. Action 2: While EDAC recognizes that market forces will play a major factor in future redevelopment of properties on Lake Drive and Hodgson Road, EDAC encourages the City to take a proactive role in redevelopment to encourage private investment. This includes the City making best use of financial tools available. Action 3: EDAC recommends that once the Comprehensive Plan is passed by the City Council, that the City examine its commercial /industrial zoning ordinances. Consider opportunities for changes and /or additional zoning categories that would allow flexibility within commercial /industrial areas of the City without compromising the goals and policies of the Comprehensive Plan. These proposed changes will be reviewed by EDAC, the Planning & Zoning Board and City Council before adoption. Council Options: 1. Accept the Task Force report 2. Direct Staff and Planning & Zoning Board to evaluate current commercial and industrial zoning while revising and updating the City's zoning ordinance as part of the implementation of the Comprehensive Plan. Consider appropriate measures to provide flexibility within commercial and industrial areas of the City, in particular properties that have no access to public utilities. 3. Make use of all tools available to leverage public investment in private redevelopment of commercial and industrial properties. OPTIONS: 1. Approve Resolution No. 11 -53, accepting the Redevelopment Task Force Report. • 2. Deny Resolution No. 11 -53. •