Agenda Packets - 1999/08/23 - Laserfiche WebLink

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MSP Rezoning & CUP August 23, 1999 Page 2 operate on this property. The types of commercial uses that would be allowable in the B-2 district would be retail establishments such as a liquor store, a music or record store, video rental, drug store, or a bakery/deli, among other uses. From a land use planning perspective, it might be more desirable to have a residential type facility in this location rather than a commercial use, for a number of reasons, which may include: 1. Would involve minimal on site activity 2. Would maintain a separation between the existing residential and commercial uses 3. Would potentially generate less traffic on Mounds View Drive 4. Would not require intensive lighting 5. Would be aesthetically pleasing from an architectural perspective The rezoning would also be consistent with the comprehensive plan in that a residential zoning would fit with the mixed-use designation and the fact that the it would relate to Goal#3 of the Residential goals and policies section of the plan, which addresses the provision of housing to meet the needs of all segments of the population, notably groups with specialized housing needs, such as the elderly. One of the issues brought up by the Commission would be the impacts to the tax base of this proposal. In speaking with the Ramsey County Tax Assessors office and using estimates provided by the applicant, staff was able to make some assumptions regarding the tax consequences. Most commercial properties are taxed at a 2.8 percent rate for the first$150,000 of valuation, then at a 3.8 percent rate for the valuation above $150,000. A senior assisted living facility would be classified as a type of commercial use and would be taxed the same way up to the first $150,00 in valuation. Because of a tax allowance for senior housing, any value beyond $150,000 would retain the 2.8 percent tax rate. Thus, for valuation above $150,000, there would be a net loss of 1 percent in tax capacity. The trade off, however, is that the proposed facility, according to the developer, will have an approximate value of$1,500,000, arguably much higher than most typical retail uses that could be built in a B-2 district. In all likelihood, the project being proposed would generate more taxes than a commercial use would. The Planning Commission has indicated a strong desire to construct the rezoning ordinance in such a way that if for whatever reason this proposed development does not come to fruition, the original B-2 zoning would be reinstated. In speaking with the City Attorney, it was discovered that this kind of provision is not allowed according to Minnesota case law. In addition, for a property to be rezoned, there would need to be an action taken in any event. Thus, if the project failed prior to construction, the Council would need to adopt a second rezoning ordinance if it desired to reinstate the original zoning. The apprehension in taking no action upon project failure, rests in the fact that with the proposed R-4, High Density residential zoning, an application could be made to construct more multiple family rental housing, of which the City already has an abundance. Because the owner of the subject property has indicated in writing that it too would want the property's original B-2 zoning to be reinstated if the MSP proposal fails, a section was added to the rezoning ordinance (Section 3 of Ordinance 631) which states that the Council may