HomeMy WebLinkAboutPZ Agenda Packet; 11-10-14
3800 Laverne Avenue North
Lake Elmo, MN 55042
(651) 747-3900
www.lakeelmo.org
NOTICE OF MEETING
The City of Lake Elmo
Planning Commission will conduct a meeting on
Monday, November 10, 2014 at 7:00 p.m.
AGENDA
1. Pledge of Allegiance
2. Approve Agenda
3. Approve Minutes
a. October 13, 2014
b. October 27, 2014
4. Public Hearing - None
5. Business Item
a. LAKE ELMO REDEVELOPMENT PROJECT NO. 1: The Planning
Commission will be considering an Economic Development Plan for
Redevelopment Project No. 1 (Village Area). The Commission will be reviewing
the plan for consistency with the Comprehensive Plan.
6. Updates
a. City Council Updates
i. October 21, 2014 meeting: None
ii. November 5, 2015 meeting: Rural Area Inventory and Analysis comments
b. Staff Updates
i. Upcoming Meetings:
• November 24, 2014
• December 8, 2014
c. Commission Concerns
7. Adjourn
City of Lake Elmo
Planning Commission/City Council Workshop
Minutes of October 13, 2014
Chairman Williams called to order the meeting of the Lake Elmo Planning Commission at
7:00 p.m.
COMMISSIONERS PRESENT: Williams, Dodson, Kreimer, Larson, Lundgren, Dorschner
and Haggard
COMMISSIONERS ABSENT: None
City Council Members Present: Smith, Reeves, Nelson, Bloyer and Mayor Pearson
STAFF PRESENT: Community Development Director Klatt, City Planner Johnson, City
Administrator Zuleger and Planning Intern Casey Riley
Approve Agenda:
The agenda was accepted as presented.
Approve Minutes: September 8, 2014
There was clarification of a number of items in the minutes and corrections of
typographical errors.
M/S/P: Dodson/Kreimer move to approve the minutes of September 22nd as amended;
Vote: 7-0, motion carried unanimously.
Business Items: Land Use Development Update/Comprehensive Plan Discussion
Klatt began his presentation by describing the materials that were provided to the
Planning Commission. He gave a brief overview of the Met Council Thrive 2040 Process.
Klatt discussed the elimination of the MOU and described the steps to achieve the
elimination. He highlighted the fact that the City is no longer subject to wastewater
inefficiency fees, which would have totaled $1,000,000 in 2015 had the MOU not been
eliminated. As the MOU has been retired, the City is no longer subject to growth
mandated with penalties.
Klatt started to further describe the Met Council regional planning process, noting that
the City’s next required decennial update to its Comprehensive Plan is in 2018. The Lake Elmo Planning Commission Minutes; 10-13-14
2
System Statement, identifying the regional expectations of the City’s land use plan, will
be released in the fall of 2015.
Dodson asked about how regional plans are reviewed by other jurisdictions. Klatt noted
that the pertinent organizations are reviewing the plans that they affect them, for
instance the watershed district would review the surface water plan.
Johnson stated that the Met Council has a regional plan that is reviewed by all
jurisdictions. If there is a major change to a plan, the appropriate agency has to sign off
on it.
Larson described all the layers of the planning process, such as the Lake Elmo Airport.
He talked about the number of households needed to maintain a viable downtown. In
addition, the City needs to be thoughtful in providing enough parks and recreation for
newly developing areas.
Williams asked about the number of total households as it relates to the number of
persons per household. Council member Smith added that the persons per household
number is important to Lake Elmo’s ultimate population projections. The 2030 plan used
2.75 persons per household, while the 2040 plan is using 2.5 persons per household.
Smith also stated that using ranges makes it much more difficult to manage growth.
Smith stated that based on what we have already approved, we really don’t need to use
all 1000 acres along I-94 to meet our requirement.
There was a general discussion about REC units and the future population obligations
for Lake Elmo.
Klatt provided a summary of Lake Elmo obligations. The City will need to plan for a
24,000 population until the 2015 system statement is released. The City has also taken
several actions to functionally rebalance the land use plan to reduce numbers when
possible.
Haggard asked if we wanted to use the 2040 plan, would 10 months be enough time to
look at it. Klatt responded that if there is concern, then the City should use our staging
plan. Smith stated that if we are looking at allowing more development in the rural
areas on smaller parcels, that should be factored into population as well.
Klatt provided an overview of all the current residential development projects that have
received some level of approval from the City. In addition, staff provided estimates of
likely future development according to the current land use plan.
Dodson asked if the City identified the area near Manning Ave for high density housing.
Klatt noted that the plan was City-driven.
There was a general discussion about the Inwood development.
Lake Elmo Planning Commission Minutes; 10-13-14
3
There was a discussion about the Village Planning Area, specifically the mixed-use area.
Moving forward, Klatt presented the City’s staging plan. He highlighted the Stage 1, 2
and 3 areas in the I-94 Corridor. Williams asked to what level of discretion the City has
to refuse a proposed development in the Stage 3 area. Klatt noted that the City could
deny a project through the use of the Staging Plan. Williams asked about
Moratoriums/Interim Ordinances. Klatt explained the state rules surrounding interim
ordinances.
Haggard stated that she thought the village was going to be developed before the I-94
corridor was fully built out. Klatt stated that the Village was part of the stage I planning.
Smith stated that she feels we should not have moved into phase II for only 50 homes as
it was not necessary until we completed more of phase I.
Klatt further described the functional rebalancing efforts undertaken since the plan has
been adopted. These efforts have resulted in a reduction of nearly 500 housing units.
Kyle wrapped up with some concluding thoughts. He provided the staff’s
recommendations related to rebalancing efforts in advance of the next Comp Plan
update which included rebalancing along I94 as part of transit planning and continuing
to discuss the rural planning areas.
Discussion of Gateway Corridor and how a transit hub might impact zoning. If a hub
goes in the higher density most likely would go closer to the hub.
Williams thanked the staff for the information provided. He noted surprise that the City
is still subject to the 2030 Land use plan. He noted that the developments that have
been approved thus far have tracked fairly close to the minimum density levels, which is
good.
Bloyer stated that he would like to see the rural areas built out at 2.5 acres per unit.
Smith stated that we need to slow down the pace of development. We have already
approved almost 2000 units of the previously mandated 4000 units if we include Gonyea
West and that is just too many in too short of a time. We need to slow down and have
thoughtful growth.
There was a discussion about growth and moving into Stage 2 and water. The City chose
to open up that area by running water to Hunter’s Crossing.
Mayor asked what suggestions the Planning Commission has in dealing with
development.
Lake Elmo Planning Commission Minutes; 10-13-14
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Larson spoke about providing public amenities for the new and existing residents.
Haggard noted her support for buildout of the Stage 1 areas before pushing into the
Stage 2 and 3 areas.
Dorschner noted that the Planning Commission has methodically reviewed development
proposals. He noted that a viable downtown requires populations and development in
the Village Area. Businesses require rooftops.
Dodson noted that the proposed transit line will make the higher density residential
more likely to occur. It makes sense to locate higher density land use adjacent to a
transit stop. Dodson noted his concern about the number of homes on private
community septic systems. Finally, he noted that the City’s lack of commercial land is
troubling given the cost of services for residential development.
Smith spoke about the guidance of the Comp Plan with regards to the buffering around
rural planning areas. Pearson
Kreimer noted that the City should be looking at the 2040 population forecast starting in
the Spring of 2014. Kreimer noted that a lower density threshold should be considered
in the I-94 Corridor. Kreimer would like to see the low end of the range to be 1.5 units
in the I-94 Corridor.
Larson noted that the City should look at development a little outside the box.
Williams noted that he is concerned about the numbers. There seems to be
inconsistencies in the plan. 1200 additional homes from the rural areas would be
required. Williams noted that the high density housing will be a shock to existing
residents.
Haggard asked what the correct number should be for population. Would the Council be
ok with residential development over 20,500. Bloyer noted that he would prefer growth
in the rural area as opposed to additional growth in the urban areas.
Zuleger shared his recommendation for additional rebalancing or changes to the land
uses. He suggested that the land adjacent to Manning Ave would be better served as
Business Park. In addition, the land south of 5th Street in Stage 1 is more likely to
develop commercially. Staff has done some analysis showing that the likely population
is closer to 18,000 to 19,000. Klatt noted that with the elimination of the MOU, the City
will be able to plan for the best land uses as opposed to only thinking about the
numbers.
Lake Elmo Planning Commission Minutes; 10-13-14
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Larson noted that he would like to maintain the sense of the rural area as best as
possible. The City should protect what is different and unique.
Mayor spoke about the rural development areas, specifically 2.5 acre lots.
Williams noted that he would like the City to explore single family design standards.
There was a discussion about which direction to go with design standards. The Council
asked the Commission to think about it.
Updates and Concerns
Council Updates 1. Hammes Final Plat passed. 2. Hammes Estates Developers Agreement passed. 3. Hunter’s Crossing Developers Agreement passed.
Staff Updates
1. Upcoming Meetings
a. October 14, 2014 – Downtown Summit 6:30 – 9:30 pm at Christ Lutheran
Church to look at economic development issues, market study and
planning issues that affect downtown.
b. October 27, 2014
c. November 10, 2014
Commission Concerns – None
Meeting adjourned at 10:23pm
Respectfully submitted,
Joan Ziertman
Planning Program Assistant
Lake Elmo Planning Commission Minutes; 10-13-14
City of Lake Elmo
Planning Commission Meeting
Minutes of October 27, 2014
Chairman Williams called to order the meeting of the Lake Elmo Planning Commission at
7:00 p.m.
COMMISSIONERS PRESENT: Williams, Dodson, Kreimer, Larson, Lundgren, Dorschner
and Haggard
COMMISSIONERS ABSENT: None
STAFF PRESENT: Community Development Director Klatt and Planning Intern Casey
Riley
Approve Agenda:
The agenda was accepted as presented.
Approve Minutes: October 13, 2014
M/S/P: Haggard/Dorschner move to postpone the minutes; Vote: 7-0, motion carried
unanimously.
Business Item: Rural Area Analysis Presentation
Planning Intern Riley presented a summary of a report concerning the City’s rural
development areas, and noted that the report is divided up into 3 different sections:
research related to growth, a rural lot inventory and 4 hypothetical growth scenarios.
She highlighted two main points that were supported by the report: 1) new
development is always more cost effective when infrastructure is close, and 2) low
density development is more land intensive and can change the look and feel of the
community. She noted that open land and farm land is generates revenues for a City in
excess of the costs necessary to service this land. For each dollar of revenue collected
for agricultural land only $0.27 is spent. For every dollar in revenue for residential land
$1.07 is spent.
Riley explained the various land use categories used in the report. High density
development, which would not be seen in Lake Elmo, large lot, low-density, urbanized
and working land. Klatt stated that typically the large expenditures in communities,
whether it is in urban or suburban areas, are public safety, roads and schools.
Maintaining roads and public safety represent the highest per capita costs on average.
He noted that there are storm water impacts and water quality impacts with growth. Lake Elmo Planning Commission Minutes; 10-27-14
2
There was a discussion regarding the average value of a 2.5 acre lot and what that
would be. Williams thought that the value of the homes should be included in the
report if we are comparing to expenditures.
Klatt summarized the City’s zoning history and Comprehensive Plan history with the
Commission. He noted that the City’s forecast for growth through 2040 has been
lowered, and that this would provide the City with more flexibility for development in
the City’s rural areas. From a staff perspective, there are more options to choose from.
He stated that one of the major issues that will limit development is rural areas is the
need for adequate access to new home sites. Larger, undeveloped parcels are generally
located on collector roads and development along these roads will likely not be able to
comply with City, County, and State access spacing guidelines. Staff is concerned that as
the rural areas change and become more developed that the character of these areas
will also change.
Klatt pointed out that studies have shown that a residential home is next to or with
access to larger open space tends to have a higher market value than similar homes that
do not have access to open space.
Klatt presented several questions that the Planning Commission might want to explore,
including: What is the City’s intent with the rural character? How does open space play
into that? Does it need to be commonly owned or can it be owned privately? How does
access management play into growth? Should the City be encouraging new well or
septic systems? Are higher density uses reasonable in rural areas? How does
agriculture factor into Lake Elmo’s future? Do we want to preserve that into the future?
Does the City want to allow rural estates in the City? Do we want to allow some kind of
hybrid zoning? Should the City move to be more restrictive in zoning in these areas?
Klatt stated that Staff is looking for feedback from the Planning Commission on how to
move forward with any suggested changes to the City’s rural development areas.
The Commission requested information concerning the point at which growth does not
pay for itself. Klatt stated that most Cities have a broader mix of commercial and
residential to offset each other. Kreimer wants to better understand the shared septic
systems and their future viability. He is wondering if there are problems with other
shared septic systems. Dodson stated that in Farms of Lake Elmo, the HOA has to have
some level of knowledge in order to maintain the system. He noted that the design of
their system was faulty and it caused the system to shut down. Dodson also stated that
there is a problem with having HOA’s managing these complicated systems. The
Planning Commission has concerns with shared septic due to cost, management and
maintenance.
Dodson does not think we should be doing anything at this point. There is no pressure
to do something different out there. With the added cost for roads and such, it does
Lake Elmo Planning Commission Minutes; 10-27-14
3
not make sense. Other members of the Commission were interested in seeing the
possibility of expanding the use of the Residential Estates land use classification.
Business Item: Design Standards Discussion
Williams stated that he had recently addressed the City Council to ask for clarification
concerning the Council’s position on residential design standards. Williams requested
that that the Planning Commission clarify whether or not the City should proceed with
any kind of design standards for single family detached housing. Haggard said that in
the Comprehensive Plan, it does suggest that we have design standards and expect high
standards. She also feels that if it is a PUD, we have the right to put in design standards
on a case by case basis. Klatt stated at the Preliminary Plat stage, the developer can
submit information concerning design, and that the Planning Commission can accept or
reject what they submit. Klatt stated that they will be bringing forward form based
codes which will relate more to the mixed use portions of the City. Williams stated that
we do currently have two design standards that apply to garages. Kreimer thinks that
the Developers should submit examples of what they intend to build. Dodson stated
that without a tool to deny something submitted, we could be stuck with them. Most
of the Commission does not feel that design standards are necessary unless it is a PUD.
Updates and Concerns
Council Updates None
Staff Updates
1. Upcoming Meetings
a. November 10, 2014
b. November 24, 2014
Commission Concerns
Dodson asked if there was any economic plan for commercial development. He
questioned where are the City was going to promote commercial development and how
are the City would entice businesses to come here. Williams stated the Comp Plan does
allow for commercial along I-94 and the within the Old Village, and noted that there has
not been any cost benefit analysis done regarding this. Klatt stated at the next meeting,
the Commission will be presented with an Economic Development Plan for the Village.
Meeting adjourned at 9:40 pm
Respectfully submitted,
Lake Elmo Planning Commission Minutes; 10-27-14
4
Joan Ziertman
Planning Program Assistant
Lake Elmo Planning Commission Minutes; 10-27-14
1
PLANNING
COMMISSION
DATE: 11/10/14
AGENDA ITEM: 5A
ITEM: Redevelopment Plan No. 1 proposed by the Lake Elmo
Economic Development Authority
SUBMITTED BY: Beckie Gumatz, Deputy Clerk
REVIEWED BY: Dean Zuleger, City Administrator
SUMMARY AND ACTION REQUESTED:
The Planning Commission is being asked to provide written comment to the EDA and City
Council on the proposed Redevelopment Plan. The EDA is specifically asking the Planning
Commission if the Redevelopment Plan is consistent with the Comprehensive Plan for
development of the City of Lake Elmo as a whole.
GENERAL INFORMATION
Applicant: Lake Elmo Economic Development Authority.
Request: Find that the Redevelopment Plan for the Downtown Redevelopment
Project is consistent with the plans for development of the City of Lake
Elmo as a whole.
History: The Lake Elmo Economic Development Authority held a meeting in which
it requested that the Lake Elmo City Council hold a public hearing and
adopt the Redevelopment Plan. Prior to the public hearing at the November
18th City Council Meeting, the EDA is seeking an opinion from the
Planning Commission.
Deadline for Action: Tonight. This item will be going to the City Council for approval at the
meeting on November 18, 2014. The Redevelopment Plan will also be up for
approval by the Economic Development Authority at its meeting on
November 20, 2014.
Applicable Regulations: Comprehensive Plan
REQUEST DETAILS
The City Council and Economic Development Authority have discussed the concept of the use
of tax increment financing (TIF) to assist with paying for project costs related to the
redevelopment of the downtown area. The TIF authority that exists in Minnesota Statutes
469.174 through 469.174 (the “TIF Act”) must be used in conjunction with the underlying
development and redevelopment powers that exist in the statutes. When the City Council
adopted the enabling resolution for establishing the EDA, the Council granted the full
complement of development powers that exist for an EDA. The EDA’s development powers
allow the EDA to pursue economic development objectives, such as the redevelopment of the
downtown area.
2 In order to exercise many of its powers, the EDA needs to adopt a plan. Certain powers can
only be used within the boundaries of different types of areas, as defined by statute. To allow
the EDA to exercise many of the powers, the EDA is considering the establishment of
Redevelopment Project 1 (pursuant to Minnesota Statutes 469.001 to 469.047).
The Lake Elmo Economic Development Authority is requesting a written opinion from the
Planning Commission on whether or not the Redevelopment Plan is consistent with the City
of Lake Elmo’s Comprehensive Plan.
The Lake Elmo City Council will be holding a Public Hearing at its meeting on November 18,
2014 and will discuss approving a Resolution approving the Redevelopment Plan. Following
approval by the City Council, the Lake Elmo EDA will be approving the Redevelopment Plan
at its meeting on November 20, 2014.
REVIEW AND ANALYSIS
The City has found that there is a need for development within the City and the Redevelopment
Project Area to provide employment opportunities, to improve the local tax base, and to
improve the general economy of the City and the State. The establishment of a Redevelopment
Plan is the first step of the redevelopment of the downtown area. The Redevelopment Plan will
specify the area in which the City and the Economic Development Authority will look to
establish TIF district(s) in the future. The TIF district(s) will allow the City to use different
methods of financing to redevelop the downtown area.
The City has also found that there is a need to take positive and aggressive steps for the future
of its “Downtown Area”. Age of buildings, under utilized land area, and other symptoms of a
downtown in need of a strategy for redevelopment are evident. There are some improvements
already going on/planned for 2015 for the downtown area, such as the redoing of Lake Elmo
Avenue. This will give the City the opportunity to possibly bury power lines and revamp the
streetscape of downtown.
The establishment of the Project Area in the City is necessary and in the best interests of the
City and its residents and is necessary to give the City and the Economic Development
Authority the ability to meet certain public purpose objectives that would not be obtainable in
the foreseeable future without intervention by the Economic Development Authority in the
normal development process.
The EDA intends, to the extent permitted by law, to accomplish the following objectives
through the implementation of the Redevelopment Plan:
a) Provide for the acquisition of land and construction and financing of building(s), site
improvements, and/or public utilities in the Project Area which are necessary for the orderly
and beneficial development of the Project Area and adjacent areas of the City.
b) Promote and secure the prompt and unified development of certain property in the Project
Area, which property is not now in productive use or in its highest and best use, with a
minimum adverse impact on the environment, and thereby promote and secure the desirable
development of other land in the City.
c) Promote and secure additional employment opportunities within the Project Area and the
City for residents of the City and the surrounding area, thereby improving living standards
and reducing unemployment and the loss of skilled and unskilled labor and other human
resources in the City.
d) Secure the increase of assessed values of property subject to taxation by the City, School,
County, and other taxing jurisdictions in order to better enable such entities to pay for
governmental services and programs that they are required to provide.
3 e) Promote the concentration of new unified development consisting of desirable
manufacturing, industrial, housing and other appropriate development in the Project Area so
as to 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 and
development and housing development, whenever possible.
g) Create a desirable and unique character within the Project Area through quality land use
alternatives and design quality in new buildings.
The EDA will perform or cause to be performed, to the extent permitted by law, all project
activities pursuant to the Enabling Act, the Tax Increment Act, and other applicable state laws.
Possible project activities are included in the Redevelopment Plan.
The Redevelopment Plan will be updated and amended to incorporate tax increment financing
districts as proposed and established.
RECCOMENDATION:
Staff recommends that the Planning Commission find that the Redevelopment Plan for the
Downtown Redevelopment Project is consistent with the plans for development of the City
of Lake Elmo as a whole.
Suggested motion:
“Move that the Redevelopment Plan for the Downtown Redevelopment Project is
consistent with the Comprehensive Plan for development of the City of Lake Elmo
as a whole”
ATTACHMENTS:
1. Redevelopment Plan for Redevelopment Project No. 1
2. Redevelopment Project No. 1 Map
ORDER OF BUSINESS:
- Introduction............................................................................City Administrator
- Report by Staff .......................................................................City Administrator
- Questions from the Commission....................... Chair & Commission Members
- Discussion by the Commission...........................Chair & Commission Members
- Action by the Commission..................................... Chair & Commission Members
CITY 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 .........................................................1
Section 1.01 Introduction ......................................................................................1
Section 1.02 Defi nitions .........................................................................................1
Section 1.03 Plan Preparation...............................................................................2
ǧ ...........................3
Section 2.01 Enabling Act; Statutory Authority.................................................3
Section 2.02 Statement of Need and Finding of Public Purpose.....................3
Section 2.03 Boundaries of Project Area..............................................................4
ǧ..........................................................................5
Section 3.01 Statement of Objectives...................................................................5
Section 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.............................................6
Section 3.06 Proposed Reuse of Property...........................................................6
Section 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
DRAFT FOR DISCUSSION 1
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 Redevelopment
Project 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 approved
within the Redevelopment Project, shall have the following respective meanings, unless the
context 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, established
pursuant 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 Increment
Financing District.
6. “Economic Development District” means Project Area which the Authority has designated
as an Economic Development District, pursuant to Minnesota Statutes, Section 469.090
through 469.108, inclusive, as amended.
7. “Enabling Act” means (1) the Minnesota Municipal Housing and Redevelopment Act
codifi 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 or
supplemented.
8. “Project Area” means the real property within the City constituting the Redevelopment
Project and the Economic Development District as currently depicted and described in the
Ĵȱȱȱ ǯ
9. “Public Costs” means the public redevelopment costs of the Redevelopment Project.
10. “Redevelopment Plan” means the Redevelopment Plan for the Redevelopment Project (this
document), 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 same
may, 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
DRAFT FOR DISCUSSION 2
14. “TIF Act” means Minnesota Statutes, Sections 469.174 through 469.1794, both inclusive as
amended.
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 was
provided by City Staff .
LAKE ELMO REDEVELOPMENT PROJECT NO. 1
DRAFT FOR DISCUSSION 3
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 development
authority that has the same powers as an economic development authority under Minnesota
Statutes, Section 469.090 to 469.1082, or other law, as well as the powers of a municipal
housing and redevelopment authority established under Minnesota Statutes, Section 469.001
to 469.047, or other law. In addition the Enabling Act authorized the City, upon establishment
of such an economic development authority, to exercise all the powers relating to an economic
development authority granted to a city by Minnesota Statutes, Section 469.090 to 469.108, or
other law, and all the powers relating to a housing and redevelopment authority granted to a
city 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 City
thereby 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 to
the Redevelopment Project the full range of powers and duties conferred upon the Authority
pursuant to the Enabling Act, the Tax Increment Act, and such other legal authority as the
Authority may have or enjoy from time to time.
Funding for the necessary activities and improvements within the Redevelopment Project
shall 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 general
obligation 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 the
general 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 other
symptoms of a downtown in need of a strategy for redevelopment are evident. And, with the
leadership of the Mayor and City Council members, the members of the Authority, as well as
city 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 are
opportunities 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 to
those 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 be
done by private enterprise alone, the City believes it to be in the public interest to consider
the exercise of its powers, to advance and spend public money, and to provide the means and
impetus 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 the
Redevelopment 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,
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through governmental action for the purpose of preventing the emergence of blighted
and marginal lands and areas of chronic unemployment. It shall also be the policy of the
Authority to facilitate and encourage such action as may be necessary to prevent the economic
deterioration of such areas to the point where the process can be reversed only by total
redevelopment. Through the use of the powers conferred on the City pursuant to the Enabling
Act, promoting economic development may prevent the occurrence of conditions requiring
redevelopment and prevent the emergence of blight, marginal land, and substantial and
persistent unemployment.
The Redevelopment Plan shall also include the goals (1) of providing an impetus for residential
development desirable or necessary to accommodate increased population within the
City 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 include
all adjacent roadways, rights-of-way and other areas wherein will be installed or upgraded the
various 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 encourage
with respect to such property, constitutes a “redevelopment project” and a “redevelopment
plan” within the meaning of Minnesota Statutes, Section 469.002, Subdivisions 14 and 16, and
constitutes an “economic development district” under Minnesota Statutes, 469.090 through
469.108, inclusive, as amended.
FIGURE 2.1
REDEVELOPMENT PROJECT NO. 1 MAP
[INSERT MAP HERE]
LAKE ELMO REDEVELOPMENT PROJECT NO. 1
DRAFT FOR DISCUSSION 5
ARTICLE III - REDEVELOPMENT PLAN
SECTION 3.01 STATEMENT OF OBJECTIVES
Redevelopment of the City’s Downtown Area involves innovation, understanding, and
communication 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 orderly
development by the private sector of under-utilized, inappropriately utilized and unused
land within the Development District. In addition, the City, through the implementation of
this Development Program, seeks to remove any environmental conditions that are or may be
barriers 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 necessary
and in the best interests of the City and its residents and is necessary to give the City and the
Authority the ability to meet certain public purpose objectives that would not be obtainable
in the foreseeable future without intervention by the Authority in the normal development
process.
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through 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 orderly
and 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 a
minimum adverse impact on the environment, and thereby promote and secure the desirable
development of other land in the City.
(c) Promote and secure additional employment opportunities within the Project Area and
the City for residents of the City and the surrounding area, thereby improving living standards
and reducing unemployment and the loss of skilled and unskilled labor and other human
resources in the City.
(d) Secure the increase of assessed values of property subject to taxation by the City,
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governmental 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 as
to 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 and
development and housing development, whenever possible.
(g) Create a desirable and unique character within the Project Area through quality land use
alternatives and design quality in new buildings.
LAKE ELMO REDEVELOPMENT PROJECT NO. 1
DRAFT FOR DISCUSSION 6
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
LAKE ELMO REDEVELOPMENT PROJECT NO. 1
DRAFT FOR DISCUSSION 7
acquisition of property whenever possible. Appropriate restrictions regarding the reuse andredevelopment of property shall be incorporated into any Development Agreement to which
the 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.
E c o n o m i c D e v e l o p m e n t
D i s t r i c t
C i t y o f L a k e E l m o
D e v e l o p m e n t P r o j e c t N o . 1