HomeMy WebLinkAbout#07 - CDA Grant ULI TAP STAFF REPORT
DATE: 6/17/2025
CONSENT
TO: City Council
FROM: Ashley Monterusso, City Planner
AGENDA ITEM: Washington County Community Development Authority (CDA)
Predevelopment Fincance Fund Application Approval
REVIEWED BY: Jason Stopa, Community Development Director
CORE STRATEGIES:
☒ Vibrant, inclusive, connected community ☐ Efficient, reliable, innovative services
☐ Responsive, transparent, adaptive governance ☒ Balanced Finances now and future
☐ Managed Growth ☒ Resilient Infrastructure
BACKGROUND:
Staff is working toward applying for funding with the Washington County Community Development
Agency’s (CDA) Predevelopment Finance Fund to use toward the ULI’s Technical Assistance Panel
(TAP). The purpose of the fund is to provide predevelopment grants to cities, townships and local
government development authorities located in Washington County. These funds are intended to: 1)
increase the availability of shovel ready properties in the county; 2) provide opportunities for our existing
businesses to stay and grow here in Washington County; 3) spur new business development and job
opportunities in the County; 4) provide opportunities for business diversity; 5) increased commercial and
industrial market values within Washington County, and 6) assist with removing blighted properties.
ISSUE BEFORE COUNCIL:
Should the city pursue the grant application for funding through Washington County CDA for the ULI TAP
project?
PROPOSAL DETAILS/ANALYSIS:
ULI’s Technical Assistance Panel (TAP) was recommended by the EDA and approved by City Council on
May 20, 2025. The Washington County Community Development Agency’s (CDA) Predevelopment
Finance Fund would be used toward the cost of the TAP. The City’s goal for the grant is to use to toward
the Urban Land Institute's (ULI) Technical Assistance Panel (TAP) for city owned 180 acres of land to
deliver guidance on land use and real estate challenges. If approved, the city will receive a grant of $17,500
which would fund roughtly 50% of the TAP.
FISCAL IMPACT:
• $17,500 if approved to be used toward the ULI TAP
OPTIONS:
• Approve the resolution
Page 2
• Deny the resolution
• Table for future discussion
RECOMMENDATION:
If removed from the Consent Agenda, staff recommends the following motion:
“Motion to approve Resolution 2025-044 for the City of Lake Elmo’s participation in Washington
County’s Community Development Agency’s Predevelopment Finance Fund.”
ATTACHMENTS:
• Resolution 2025-044
• CDA Grant Application
CITY OF LAKE ELMO
COUNTY OF WASHINGTON
STATE OF MINNESOTA
RESOLUTION NO. 2025-044
A RESOLUTION APPROVING THE CITY OF LAKE ELMO’S PARTICIPATION IN
WASHINGTON COUNTY’S COMMUNITY DEVELOPMENT AGENCY’S PREDEVELOPMENT
FINANCE FUND FOR THE ULI TECHNICAL ASSISTANCE PANEL FOR DEVELOPMENT OF
THE CITY OWNED 180 ACRES
WHEREAS, the City of has identified a proposed project within the City that meets
the Washington County Community Development Agency (CDA) Predevelopment Finance Fund’s
purposes and criteria; and
WHEREAS, the City has established that the property in consideration has been zoned and/or
guided for future development accordingly and the proposed project is a high priority of the city; and
WHEREAS, the City supports the proposed project scope of work and hereby supports the
application to the Predevelopment Finance Fund; and
WHEREAS, the City has the legal authority to apply for financial assistance; and
WHEREAS, the City is supportive of enhancing economic development opportunities that will
serve to create jobs, enhance the tax base and improve the lives of Washington County residents.
NOW THEREFORE BE IT RESOLVED that the City of approves the application for funding
from the Washington County CDA Predevelopment Finance Fund.
BE IT FURTHER RESOLVED that upon approval of its application by the Washington County
CDA, Jason Stopa, the Community Development Director, is hereby authorized to execute such
agreements as are necessary to receive and use the funding for the proposed project.
Passed and duly adopted this 17th day of June, 2025 by the City Council of the City of Lake Elmo,
Minnesota.
____________________________________
Mayor Charles Cadenhead
ATTEST:
_______________________________
Julie Johnson, City Clerk
General Information
Date: _6/5/2025______________________________________________________________________
Project Name: Technical Assistance Panel for City Owned Property
Applicant City/Township: City of Lake Elmo
Applicant Address: 3880 Laverne Ave. N
Lake Elmo, MN 55042
Application/Project Contact: Jason Stopa
Contact Email Address: jstopa@lakeelmo.gov
Contact Phone Number: 561.747.3914
Authorized Official(s) for Execution of Contracts (name and title): Charles Cadenhead, Mayor
How much grant funding are you requesting? $17,500
Is the applicant an eligible public entity as defined in the program policy and guidelines? Yes _x_ No __
I. PREDEVELOPMENT FINANCE FUND PROPOSED PROJECT DESCRIPTION
1. Describe the city’s/township’s goals, objectives and need for the Predevelopment Finance Fund grant
and anticipated future commercial and industrial opportunities and other proposed components. Please
explain the public benefit of the proposed plan, report or study. Attach copy of proposed contract for
services or scope of work for any activities to be funded by CDA grant funds.
The City’s goal for the grant is that the Urban Land Institute's (ULI) Technical Assistance Panel (TAP)
will provide guidance on land use and address real estate challenges that will lead to the development of
the city owned 180 acres. TAPs provide strategic recommendations that will help the city with
development difficulties and optimize land use. This collaborative approach fosters informed decision-
making and enhances stakeholder engagement. The City will use the guidance to develop an RFP to sell
the land to spur new businesses and job opportunities. The TAP report is also anticipated to attract
capital to the site.
2. Has a developer or end user been identified or committed to the proposed site? No
3. Provide a brief history of the site including any previous uses, activities, prior or existing
contamination, and other previous attempts at selling, developing or redeveloping the site. (please
identify any obstacles that may be preventing the city/township from accomplishing its goals for the site
or area)?
The City acquired the land from 3M after a settlement with 3M for PFAS contamination in the city to
offset cost of contamination. Previously, a developer progressed to the preliminary plat approval process
before the agreement was terminated. The City issued an RFP in 2022 but did not receive interest.
4. Describe any studies or development activities at the proposed site or project area that have already
been completed or are currently underway (if applicable).
Phase I Environmental Assessment by 3M was completed in 2019
Weland Investigation Report (2021)
AUAR by developer (2022)
5. Proposed Budget. Itemize all funding sources that have been or will be used to complete the proposed
project goals and activities.
Source of Funds Amount Committed Pending
Washington County CDA Funds $17,500 X
City or Township Local Matching Funds $17,500
Total: $17,500 $17,500
Itemize expenses for the completion of the proposed project goals or proposed activities.
Itemized Use of Funds/Expenses Costs Funding
Source
2.5-day Urban Land Institute Technical Assistance Panel $35,000
Total: $35,000
II. DETAILED PROJECT AND ACTIVITY DESCRIPTION
1. Please provide location maps, photos, current and projected site plans (if available). (maps
should include site or project area location, property boundaries, north arrow, and bar scale, etc.)
2. Describe all of the proposed activities (i.e. studies) that are part of this grant funding request.
Urban Land Institute - Technical Assistance Panel - Report
3. Is demolition of blighted buildings or other structures part of the proposed project? N/A
4. What is the proposed future end use of the project site or area? Business Park and Commercial
5. Describe the site or project area (including): (please attach current property tax statement(s):
Acreage of overall site:180 acres Number of parcels: 2
Owner Support Letter Attached
Parcel Identification/Description Number or Address Yes No
1602921230003 x
1602921240002 x
6. Please identify all property owners and include a letter of support from each owner: City of Lake
Elmo
7. Is the property currently listed or available for sale? No
8. After development or redevelopment is complete, what portion of the project site be publicly and
privately owned? Public: Undetermined Private: __100% Most likely_____________
9. Identify any other partners and their roles such as land owners, realtors, developers, consultants,
and regulating/permitting agencies, etc. (if applicable): The City of Lake Elmo, The City of
Oakdale, Washington County
10. How will the proposed project and/or activities promote or increase future commercial/industrial
market values in the city/township/county (please identify your goals for increased commercial
and industrial property tax base as a result of the proposed activities and describe how you will
measure success)? The City is hoping to build off the commercial success in Oakdale located to
the west of the site. This would create one contiguous commercial/business park area in both
Oakdale and Lake Elmo. Not including this site, the city has roughly 360 acres guided for
commercial/business park. Development of this site would result in a 50% increase in the land
available to contribute to the commercial/industrial tax base.
The TAP will help the City strategically enhance the commercial tax base of Lake Elmo with the
aim of providing insights into the highest and best uses for the property while considering
marking trends and the needs of the community. Success will be measured by the number of
interested parties after the City issues an RFP with guidance from the TAP report.
11. How will the proposed project and/or activities promote or increase future employment
opportunities in the city/township/county (please identify your job and wage goals as a result of
the proposed activities and describe how you will measure success)? The project should attract
private investment to develop the land which will in turn attract jobs to the city. The city can
measure the success of the project by comparing property tax revenues before and after
development.
12. Please provide detailed project timeline with all actions, phases, and anticipated dates for
completion (when will the activities/studies be complete)? Attached as a PDF.
13. Describe why the development or redevelopment study, report or plan is needed and why the
property is not likely to develop through the normal private sector process? The TAP and report
are needed to provide unbiased analysis of the highest and best use of the city owned property.
Development of the land previously fell through, and the city has been unsuccessful in their first
RFP process.
14. Describe the level of commitment by the city/township to the development of the property or
area (please identify how the proposed activities meet the city/township priorities, land use
planning, economic development goals, etc.…)? Why is this important to the city/township?
The City has the highest level of commitment to develop this land to its best use. Since being
conveyed the land in 2019 as a result of a 3M settlement, the City has prioritized bringing jobs
and increasing the tax base through this site. The City has committed to working with the City of
Oakdale to bring sewer to the site at an initial cost of about $1 million to the City of Lake Elmo.
The City Council and Planning Commission held public hearings re-guiding the property from
rural residential to business park in 2020. As a community that is experiencing a lot of residential
growth, we are looking for a more balanced approach to development that includes bringing
more businesses to the city.
Please attach a resolution requesting grant funding from the Predevelopment Finance Fund adopted by
the city/township (sample resolution provided by the CDA).
15. Please submit this application and all necessary attachments electronically (.pdf file preferred) to
Economic Development Director, Washington County CDA at:
ChrisE@washingtoncountycda.org