HomeMy WebLinkAboutItem 11 - Lake Elmo Redevelopment Plan for Redevelopment Project 1CITY OF LAKE ELMO, MINNESOTA
REDEVELOPMENT PLAN FOR
REDEVELOPMENT PROJECT NO. 1
(DOWNTOWN REDEVELOPMENT PROJECT)
DRAFT FOR PUBLIC HEARING
PUBLIC HEARING: _______________, 2014
PLAN APPROVED: ___________, 2014
Northland Securities, Inc.
45 South 7th Street, Suite 2000
Minneapolis, MN 55402
(800) 851-2920
Member NASD and SIPC
TABLE OF CONTENTS
ȃ .........................................................1Section 1.01 Introduction ......................................................................................1Section 1.02 Defi nitions .........................................................................................1
Section 1.03 Plan Preparation...............................................................................2
ǧ ...........................3Section 2.01 Enabling Act; Statutory Authority.................................................3Section 2.02 Statement of Need and Finding of Public Purpose.....................3
Section 2.03 Boundaries of Project Area..............................................................4
ǧ..........................................................................5Section 3.01 Statement of Objectives...................................................................5Section 3.02 Development Activities...................................................................6
Section 3.03 Payment of Public Costs..................................................................6
Section 3.04 Environmental Controls; Land Use Regulations.........................6
Section 3.05 Park and Open Space To Be Created.............................................6Section 3.06 Proposed Reuse of Property...........................................................6Section 3.07 Administration and Maintenance of Project Area.......................7
Section 3.08 Relocation..........................................................................................7
Section 3.09 Amendments.....................................................................................7
Section 3.10 Findings and Declaration................................................................7
LAKE ELMO REDEVELOPMENT PROJECT NO. 1
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ARTICLE I – INTRODUCTION AND DEFINITIONS
SECTION 1.01 INTRODUCTION
The City of Lake Elmo is preparing plans for the redevelopment of the City’s Downtown Area.This document contains the Redevelopment Plan for achieving the objectives of RedevelopmentProject No. 1 through the future establishment of tax increment fi nancing plans and use of tax increment fi nancing districts.
The Redevelopment Plan will be updated and amended to incorporate tax increment fi nancing districts as proposed and established.
SECTION 1.02 DEFINITIONS
For the purposes of this document, the terms below have the meanings given in this section,unless the context in which they are used indicates a diff erent meaning:
The terms defi ned below, for purposes hereof, and for purposes of any Tax Increment Financing Districts and Plans which may be now or hereafter established and approvedwithin the Redevelopment Project, shall have the following respective meanings, unless thecontext specifi cally requires otherwise. As in Minnesota Statutes, Section 469.058, the term “development” includes redevelopment, and the term “developing” includes redeveloping.:
1. “Authority” means Economic Development Authority of the City of Lake Elmo, establishedpursuant to the Enabling Act and City Resolution No. 2013-05.
2. “City” means the City of Lake Elmo, Minnesota.
3. “City Council” means the City Council of the City.
4. “County” means Washington County, Minnesota.
5. “Developer” means a party undertaking construction or renovation in a Tax IncrementFinancing District.
6. “Economic Development District” means Project Area which the Authority has designatedas an Economic Development District, pursuant to Minnesota Statutes, Section 469.090through 469.108, inclusive, as amended.
7. “Enabling Act” means (1) the Minnesota Municipal Housing and Redevelopment Actcodifi ed as Minnesota Statutes, Sections 469.001 through 469.047, and (2) the Economic Development Authority Act codifi ed as Minnesota Statutes, Section 469.090 to 469.1082, including all powers provided or referenced therein, and as the same may be amended orsupplemented.
8. “Project Area” means the real property within the City constituting the RedevelopmentProject and the Economic Development District as currently depicted and described in theĴȱȱȱ ǯ
9. “Public Costs” means the public redevelopment costs of the Redevelopment Project.
10. “Redevelopment Plan” means the Redevelopment Plan for the Redevelopment Project (thisdocument), as the same may, from time to time, be amended or supplemented.
11. “Redevelopment Project” means Redevelopment Project No. 1 of the Authority, as the samemay, from time to time, be amended or supplemented.
12. “School District” means Independent School District No. 834, Minnesota.
13. “State” means the State of Minnesota.
LAKE ELMO REDEVELOPMENT PROJECT NO. 1
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14. “TIF Act” means Minnesota Statutes, Sections 469.174 through 469.1794, both inclusive asamended.
15. “TIF District” means a Tax Increment Financing District within the Redevelopment Project,as may be proposed and established in the future, from time to time.
16.“TIF Plan” means a future tax increment fi nancing plan for a TIF District within the Redevelopment Project, as may be proposed and adopted in the future, from time to time.
SECTION 1.03 PLAN PREPARATION
This document was prepared for the City by Northland Securities, Inc. Project data wasprovided by City Staff .
LAKE ELMO REDEVELOPMENT PROJECT NO. 1
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ARTICLE II - STATEMENT OF PUBLIC PURPOSE AND AUTHORITY
SECTION 2.01 ENABLING ACT; STATUTORY AUTHORITY
Pursuant to the Enabling Act, the City was authorized to establish an economic developmentauthority that has the same powers as an economic development authority under MinnesotaStatutes, Section 469.090 to 469.1082, or other law, as well as the powers of a municipalhousing and redevelopment authority established under Minnesota Statutes, Section 469.001to 469.047, or other law. In addition the Enabling Act authorized the City, upon establishmentof such an economic development authority, to exercise all the powers relating to an economicdevelopment authority granted to a city by Minnesota Statutes, Section 469.090 to 469.108, orother law, and all the powers relating to a housing and redevelopment authority granted to acity by Minnesota Statutes, Section 469.001 to 469.047, or other law.
Pursuant to Resolution No. 2013-05 as adopted by the Council on February 5, 2013, the Citythereby established the Authority as the entity authorized by the Enabling Act.
It is the intention of the City, notwithstanding the enumeration of specifi c goals and objectives in the Redevelopment Plan, that the City and Authority shall have and enjoy with respect tothe Redevelopment Project the full range of powers and duties conferred upon the Authoritypursuant to the Enabling Act, the Tax Increment Act, and such other legal authority as theAuthority may have or enjoy from time to time.
Funding for the necessary activities and improvements within the Redevelopment Projectshall be accomplished through tax increment fi nancing in accordance with the TIF Act, and, if necessary and appropriate, the use of the City’s statutory ability to issue and sell generalobligation improvement bonds of the City.
SECTION 2.02 STATEMENT OF NEED AND FINDING OF PUBLIC PURPOSE
The City fi nds that there is a need for development within the City and the Redevelopment Project to provide employment opportunities, to improve the local tax base, and to improve thegeneral economy of the City and the State.
The City fi nds that there is a need for the City to take positive and aggressive steps for the future of its “Downtown Area”. Age of buildings, under utilized land area, and othersymptoms of a downtown in need of a strategy for redevelopment are evident. And, with theleadership of the Mayor and City Council members, the members of the Authority, as well ascity staff and local citizens, Lake Elmo has begun the diffi cult task of trying to fi t appropriate resources with redevelopment opportunities. In doing so, the Council has found that there areopportunities for the Downtown Area with such bold steps as using tax increment fi nancing, the vacation of streets, and open invitations to existing businesses and plans for invitations tothose from within the greater metropolitan region.
The City fi nds that in many cases such marginal property cannot be developed without public participation and assistance in forms including property acquisition and/or write down,proper planning, the fi nancing of land assembly in the work of clearance or development, and the making and/or fi nancing of various other public and private improvements necessary for development. In cases where the development of marginal and other property cannot bedone by private enterprise alone, the City believes it to be in the public interest to considerthe exercise of its powers, to advance and spend public money, and to provide the means andimpetus for such development.
The City fi nds that in certain cases property within the Project Area would or may not be available for development without the specifi c fi nancial aid to be sought, that the Redevelopment Plan will aff ord maximum opportunity, consistent with the needs of the
LAKE ELMO REDEVELOPMENT PROJECT NO. 1
DRAFT FOR DISCUSSION 4
City as a whole, for the development of the Project Area by private enterprise, and that theRedevelopment Plan conforms to the general plan for the development of the City as a whole.
The City also fi nds that the welfare of the City and the State requires the active promotion, Ĵȱǰȱǰȱȱȱȱ¢ȱȱ¢ȱȱȱthrough governmental action for the purpose of preventing the emergence of blightedand marginal lands and areas of chronic unemployment. It shall also be the policy of theAuthority to facilitate and encourage such action as may be necessary to prevent the economicdeterioration of such areas to the point where the process can be reversed only by totalredevelopment. Through the use of the powers conferred on the City pursuant to the EnablingAct, promoting economic development may prevent the occurrence of conditions requiringredevelopment and prevent the emergence of blight, marginal land, and substantial andpersistent unemployment.
The Redevelopment Plan shall also include the goals (1) of providing an impetus for residentialdevelopment desirable or necessary to accommodate increased population within theCity and (2) of helping to achieve aff ordable housing goals, including through payment or reimbursement of certain infrastructure or other costs of the housing developments.
SECTION 2.03 BOUNDARIES OF PROJECT AREA
The area within the Project Area is described in Figure 2-1. The Project Area shall also includeall adjacent roadways, rights-of-way and other areas wherein will be installed or upgraded thevarious public improvements necessary for and part of the overall project. The City fi nds that the Project Area, together with the objectives which the City seeks to accomplish or encouragewith respect to such property, constitutes a “redevelopment project” and a “redevelopmentplan” within the meaning of Minnesota Statutes, Section 469.002, Subdivisions 14 and 16, andconstitutes an “economic development district” under Minnesota Statutes, 469.090 through469.108, inclusive, as amended.
FIGURE 2.1
REDEVELOPMENT PROJECT NO. 1 MAP
[INSERT MAP HERE]
LAKE ELMO REDEVELOPMENT PROJECT NO. 1
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ARTICLE III - REDEVELOPMENT PLAN
SECTION 3.01 STATEMENT OF OBJECTIVES
Redevelopment of the City’s Downtown Area involves innovation, understanding, andcommunication with all sectors of the City, working together toward common, and well defi ned goals and objectives. The City, through it’s planning eff orts has found that there is a need for redevelopment in the Downtown Area of the City, to encourage, ensure, and facilitate orderlydevelopment by the private sector of under-utilized, inappropriately utilized and unusedland within the Development District. In addition, the City, through the implementation ofthis Development Program, seeks to remove any environmental conditions that are or may bebarriers to any eff orts by the private sector to develop or redevelop within the Development District.
The establishment of the Project Area in the City pursuant to the Enabling Act is necessaryand in the best interests of the City and its residents and is necessary to give the City and theAuthority the ability to meet certain public purpose objectives that would not be obtainablein the foreseeable future without intervention by the Authority in the normal developmentprocess.
ȱ¢ȱǰȱȱȱ¡ȱĴȱȱ¢ȱ ǰȱȱȱȱ ȱȱthrough the implementation of the Redevelopment Plan:
(a) Provide for the acquisition of land and construction and fi nancing of building(s), site improvements, and/or public utilities in the Project Area which are necessary for the orderlyand benefi cial development of the Project Area and adjacent areas of the City.
(b) Promote and secure the prompt and unifi ed development of certain property in the Project Area, which property is not now in productive use or in its highest and best use, with aminimum adverse impact on the environment, and thereby promote and secure the desirabledevelopment of other land in the City.
(c) Promote and secure additional employment opportunities within the Project Area andthe City for residents of the City and the surrounding area, thereby improving living standardsand reducing unemployment and the loss of skilled and unskilled labor and other humanresources in the City.
(d) Secure the increase of assessed values of property subject to taxation by the City,ǰȱ¢ǰȱȱȱ¡ȱȱȱȱȱĴȱȱȱȱȱȱ¢ȱȱgovernmental services and programs that they are required to provide.
(e) Promote the concentration of new unifi ed development consisting of desirable manufacturing, industrial, housing and other appropriate development in the Project Area so asto maintain the area in a manner compatible with its accessibility and prominence in the City.
(f) Encourage the expansion and improvement of local business, economic activity anddevelopment and housing development, whenever possible.
(g) Create a desirable and unique character within the Project Area through quality land usealternatives and design quality in new buildings.
LAKE ELMO REDEVELOPMENT PROJECT NO. 1
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SECTION 3.02 DEVELOPMENT ACTIVITIES
ȱ¢ȱ ȱȱȱȱȱȱǰȱȱȱ¡ȱĴȱȱ¢ȱ ǰȱȱȱactivities pursuant to the Enabling Act, the Tax Increment Act and other applicable state laws,and in doing so anticipates that the following may, but are not required, to be undertaken bythe Authority:
(a) The making of studies, planning, and other formal and informal activities relating to theRedevelopment Plan.
(b) The implementation and administration of the Redevelopment Plan.
(c) The rezoning of land within the Project Area.
(d) The acquisition of property, or interests in property, by purchase or condemnation,which acquisition is consistent with the objectives of the Redevelopment Plan,
(e) The preparation of property for use and development in accordance with applicableLand Use Regulations and the Development Agreement, including demolition of structures,clearance of sites, placement of fi ll and grading.
(f) The resale of property to private parties.
(g) The construction or reconstruction of improvements described in Section 4.7 hereof.
(h) The issuance of Tax Increment Bonds to fi nance the Public Costs of the Redevelopment Plan, and the use of Tax Increments or other funds available to the City and the Authority to payor fi nance the Public Costs of the Redevelopment Plan incurred or to be incurred by it.
(i) The use of Tax Increments to pay debt service on the Tax Increment Bonds or otherwisepay or reimburse with interest the Public Costs of the Redevelopment Plan.
SECTION 3.03 PAYMENT OF PUBLIC COSTS
It is anticipated that the Public Costs of the Redevelopment Plan will be paid primarily fromproceeds of Tax Increment Bonds or from Tax Increments. The Authority reserves the right toutilize other available sources of revenue, including but not limited to lease payments, specialassessments and user charges, which the Authority may apply to pay a portion of the PublicCosts.
SECTION 3.04 ENVIRONMENTAL CONTROLS; LAND USE REGULATIONS
All municipal actions, public improvements and private development shall be carried outin a manner consistent with existing environmental controls and all applicable Land UseRegulations.
SECTION 3.05 PARK AND OPEN SPACE TO BE CREATED
Park and open space within the Project Area if created will be created in accordance with the£ȱȱĴȱȱȱȱȱ¢ǯ
SECTION 3.06 PROPOSED REUSE OF PROPERTY
The Redevelopment Plan contemplates that the Authority may acquire property and reconveythe same to another entity. Prior to formal consideration of the acquisition of any property,the Authority will require the execution of a binding development agreement with respectthereto and evidence that Tax Increments or other funds will be available to repay the PublicCosts associated with the proposed acquisition. It is the intent of the Authority to negotiate the
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acquisition of property whenever possible. Appropriate restrictions regarding the reuse andredevelopment of property shall be incorporated into any Development Agreement to whichthe Authority is a party.
SECTION 3.07 ADMINISTRATION AND MAINTENANCE OF PROJECT AREA
Maintenance and operation of the Project Area will be the responsibility of the cityadministrator who shall serve as administrator of the Project Area. Each year the administratorwill submit to the Authority the maintenance and operation budget for the following year.
The administrator will administer the Project Area pursuant to the Enabling Act; provided,however, that such powers may only be exercised at the direction of the Authority. No actiontaken by the administrator pursuant to the above-mentioned powers shall be eff ective without authorization by the Authority.
SECTION 3.08 RELOCATION
Any person or business that is displaced as a result of the Redevelopment Plan will be relocatedin accordance with Minnesota Statutes, Section 117.50 to 117.56. The City and the Authorityaccepts its responsibility for providing for relocation assistance when applicable.
SECTION 3.09 AMENDMENTS
The Authority reserves the right to alter and amend the Redevelopment Plan and the TaxIncrement Financing Plan, subject to the provisions of state law regulating such action. TheCity and the Authority specifi cally reserves the right to enlarge or reduce the size of the Project Area and the Tax Increment District, the Redevelopment Plan and the Public Costs of theRedevelopment Plan and the amount of Tax Increment Bonds to be issued to fi nance such cost by following the procedures specifi ed in Minnesota Statutes, Section 469.175, Subdivision 4.
SECTION 3.10 FINDINGS AND DECLARATION
The Authority makes the following fi ndings:
(a) The land in the Project Area would not be made available for redevelopment without thefi nancial aid sought.
(b) The Redevelopment Plan for the Project Area in the City will aff ord maximum opportunity consistent with the needs of the locality as a whole, for the redevelopment of thearea by private enterprise.
(c) The Redevelopment Plan conforms to the general plan for development of the City as awhole.