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HomeMy WebLinkAbout07-20-2001 ECONOMIC DEVELOPMENT COMMISSION AGENDA July 20 2001 7:30 A.M. • MOUNDS VIEW CITY HALL - CITY COUNCIL CHAMBERS 1. CALL TO ORDER A.M. 2. ROLL CALL (Present = P, Absent = A) Belting McDonald Carlson Walther Field Ericson(Sta Johnson Parrish (Staff) Marty 3. APPROVE EDC MINUTES May 18th, 2001 Action: Motion Second Vote June 15th, 2001 Action: Motion Second Vote • 4. SPECIAL BUSINESS No Special Business Scheduled 5. REPORT OF COMMISSIONERS, STAFF AND EDA LIAISON A. Report of Commissioners -No Materials Attached B. Chamber of Commerce Update -No Materials Attached C. Report of Staff - No Materials Attached i. Mounds View Square Vacancy ii. Mermaid Project Update iii. County Highway 10 Reconstruction and Revitalization Plan Update iv. County Road H2 Infill Development Neighborhood Meeting Review 6. EDC BUSINESS A. Proposed Mounds View Animal Hospital Development B. Potential Restaurant Development within Mounds View C. Future Agenda Items -No Materials Attached 7. ADJOURN A.M. • Next Regularly Scheduled Meeting: August 17, 2001 N:\DATA\GROUPS\ECONDEV\EDC\Agendas\Agenda01\07-20-01.doc Not Approved • Minutes of the Economic Development Commission City of Mounds View Ramsey County, Minnesota Regular Meeting May 18th, 2001 City of Mounds View, Council Chambers 2401 Highway 10, Mounds View, MN 55112 1. CALL TO ORDER: The meeting was called to order at 7:31 a.m. by Chairperson Tom Field. 2. ROLL CALL: Members Present: Cindy Carlson, Tom Field,Torri Johnson, Wendy Marty, and Sean Walther. Member Absent: Dr. Greg Belting and Stan McDonald Staff Present: Economic Development Coordinator Aaron Parrish 3. APPROVAL OF MINUTES: Motion/Second: Walther/N/A moved to approve the minutes for April 20th, 2001 as corrected: • Motion Carried: 5 Ayes 0 Nays Y Y 4. SPECIAL BUSINESS There was no special business discussed 5. REPORT OF COMMISSIONERS,STAFF AND EDA LIAISON A. Commissioner Reports Commissioner Carlson indicated that Western Bank might consider subdividing a portion of their existing lot to accommodate further development. B. NB-MV Chamber of Commerce Update Chairperson Field indicated that the Chamber Golf outing was enjoyable. Commissioner Carlson commented on the upcoming Business of the Year awards presentation and some organizational issues currently being considered by the Chamber. C. Report of Staff 1. Sale of 2625 County Highway 10: Coordinator Parrish informed the Commission that the EDA is in the process of selling 2625 County Highway 10 to the Mounds View Animal Hospital. • 2. Acquisition of 3016 County Road H2: Coordinator Parrish indicated that the EDA is in the process of purchasing 3016 County Road H2. He indicated that the preliminary intention is to combine this property with adjacent parcels for some type of residential infill development. N:\DATA\GROUPS\ECONDEV\EDC\Minutes\Min01\05-18-01.doc Not Approved 3. Participation in the Minneapolis Metro North Convention and Visitors Bureau: Coordinator • Parrish informed the Commission that the Council is currently considering an ordinance establishing a local lodging tax. This will allow the City to participate in the Minneapolis Metro North Convention and Visitors Bureau. 4. Miscellaneous Updates: Coordinator Parrish updated the Commission on items currently being considered by the Council and/or EDA including lifecycle housing, redevelopment priorities, and a regional storm water pond at Edgewood Middle School. 6. EDC BUSINESS There was no EDC Business 7. Adjournment There being no further business before the Commission, this meeting of the Economic Development Commission adjourned at 8:00 a.m. Respectfully Submitted, Aaron Parrish Economic Development Coordinator i N:\DATA\GROUPS\ECONDEV\EDC\Minutes\Min01\05-18-01.doc Not Approved Minutes of the Economic Development Commission City of Mounds View Ramsey County, Minnesota Regular Meeting June 15sth, 2001 City of Mounds View, Council Chambers 2401 Highway 10, Mounds View, MN 55112 1. CALL TO ORDER: The meeting was called to order at 7:32 a.m. by Vice Chairperson Cindy Carlson. 2. ROLL CALL: Members Present: Dr. Greg Belting, Cindy Carlson,Torri Johnson, Wendy Marty, and Sean Walther. Member Absent: Tom Field and Stan McDonald Staff Present Economic Development Coordinator Aaron Parrish, Community Development Director Jim Ericson, and Planning Associate Jim Atkinson 111V.. APPROVAL OF MINUTES: No minutes were presented for approval 4. SPECIAL BUSINESS A. Introduction of the City's new Planning Associate Jim Atkinson 5. REPORT OF COMMISSIONERS,STAFF AND EDA LIAISON A. Commissioner Reports There were no reports B. NB-MV Chamber of Commerce Update Commissioner Belting that the Business of the Year was a success with three Mounds View businesses receiving awards. Commissioner Carlson provided some insight on organizational and leadership issues currently confronting the Chamber. C. Report of Staff Manufactured Home Park Revitalization Program: Coordinator Parrish indicated that the city received a$100,000 Community Development Block Grant to fund the Manufactured Home Park Revitalization Program. • ii. County Highway 10 Reconstruction and Revitalization Study: Coordinator Parrish ugpdated the Commission on the current status of the County Highway 10 Reconstruction and Revitalization study. He ie Commission that the first meeting of the Highway 10 project team wo,ld be on July 11 , 2001, and that the first Community Meeting would take place on July 16 , 2001. N:\DATA\GROUPS\ECONDEV\EDC\Minutes\Min01\06-15-01.doc Not Approved iii. Acquisition of 2091 Hillview Road: Director Ericson discussed the ongoing efforts to acquire• a boarded up Fourplex from the Department of Housing and Urban Development. iv. Longview Estates Subdivision: Director Ericson discussed the potential subdivision of property off of Silver Lake Road just to the north of Woodcrest Park. v. Minneapolis Metro North Convention and Visitors Bureau: Coordinator Parrish indicated that the ordinance establishing a local lodgin tax was passed by the Council enabling the city to participate in the Minneapolis Metro North Convention and Visitors Bureau. An agreement articulating the services to be provided to the City was also approved by the Council. 6. EDC BUSINESS A. Presentation and Overview of the Comprehensive Plan Director Ericson provide an overview of the Comprehensive Plan including a discussion of the economic development element and proposed changes to the future land use map. B. County Road H2 Residential Infill Development Coordinator Parrish provided additional information to the Commission relative to the proposed County Road H2 Infill Development. He indicated that the EDA recently purchased a home located at 3016 County Road H2 and that a neighborhood meeting would take place later in the month. C. Discuss Disetronic Medical Systems Business Retention Visit. Commissioner Carlson and Coordinator Parrish discussed the most recent Business Retention Visit conducted at Disetronic Medical Systems. 7. Adjournment There being no further business before the Commission, this meeting of the Economic Development Commission adjourned at 8:30 a.m. Respectfully Submitted, 0-40,-0410)1,—/12,Z.'2044;04(.. Aaron Parrish Economic Development Coordinator • N:\DATA\GROUPS\ECONDEV\EDC\Minutes\Min01\06-15-01.doc arif OF Item No. 6A, ©MS Type Date: July 20 '001 Type of Business: EB • EB:EDC Business BEN fj IN. Informational Item °•'rest•PartnetsxAs City of Mounds View Staff Report To: Economic Development Commission From: Aaron Parrish, Economic Development Coordinator Item Title/Subject: Proposed Mounds View Animal Hospital Development Date of Report: July 13th, 2001 Background As the Commission is aware,the Mounds View Animal Hospital is currently in the approval process to build a new veterinary clinic at 2625 Highway 10. At this point,the property has been rezoned and the Planning Commission will review the site plan July 18, 2001. The report sent to the Planning Commission has been enclosed for your review. Previously, the Commission discussed the possibility of supporting the project. Since the project is now proceeding through the approval process, now would be an appropriate time • to consider such an action. Necessary Actions 1. Discuss Proposed Mounds View Animal Hospital Development ales-zoos/wt.le-2.,z,z44:)4L Aaron Parrish, Economic Development Coordinator (763) 717-4029 4110 Item#6 City of Mounds View • Planning Commission Report Meeting Date: July 18, 2001 Title: PUBLIC HEARING,DISCUSSION AND CONSIDERATION OF A VARIANCE REQUEST AND A CONDITIONAL USE PERMIT REQUEST FOR THE MOUNDS VIEW ANIMAL HOSPITAL, 2625 HIGHWAY 10, AND A TEXT AMENDMENT TO THE CITY CODE TO ALLOW ANIMAL BOARDING; PLANNING CASE NOS. VRO1-008 &CU01-002. INTRODUCTION The subject property is an irregular shaped corner lot located at 2625 County Highway 10, at the northeast Corner of County Road I.The applicants,Dr.Bruce Schnabel and Dr.Kevin Barcus ofthe Mounds View Animal Hospital,have applied for: 1. A variance from the front yard setback requirement of 30 feet for the parking lot of their 40 proposed facility, 2. A conditional use permit to allow an animal hospital in a B-2 zoning district, and 3. An amendment to the City Code to allow animal boarding in B-2 zoning districts as a conditional use. BACKGROUND The City of Mounds View purchased the parcel located at 2625 Highway 10 in 1995 as a means to remove a blighted and nuisance structure. Since that time,it has been marketed for development by the City as a commercial use. While there have been two proposals submitted which would incorporate this parcel,neither were approved. The Mounds View Animal Hospital has been operating at the Silverview Plaza since 1988. They were issued a Conditional Use Permit as required by City Code for veterinary clinics in the B-2 district. The Animal Hospital currently leases 2,000 square feet and they need substantially more room to effectively operate their business and meet the needs of their customers. The applicants appeared before the Planning Commission on June 6, 2001 and again on June 20, 2001 requesting a rezoning of the subject parcel.The Planning Commission passed Resolution 657- 01 recommending approval of the rezoning and was sent to the City Council for their consideration. On July 9, 2001, the City Council approved Ordinance No. 684 on second reading to rezone the • subject property. Mounds View Animal Hospital July 18,2001 Page 2 4110 DISCUSSION Variance Request According to the Municipal Code, Section 1104.01, Subdivision 4(c)(2), parking areas in a B-2 zoning district must be located at least 30 feet from front property lines. As shown on the attached site plan, the proposed parking area would be located 15 feet from the right-of-way of County Highway 10 and 5 feet from the right-of-way of Eastwood Road.Both street frontages require a 30- foot setback for parking areas. For this Variance to be approved, as with any Variance request, there needs to be demonstrated substantial hardship or practical difficulties associated with the property that makes a literal interpretation of the Code overly burdensome or restrictive to a property owner. State statutes require that the governing body(the Planning Commission)review a set of specified criteria for each application and make its decision in accordance with these criteria. These criteria are set forth in Section 1125.02, Subdivision 2, of the City Code. The Code clearly states that a hardship exists when all of the criteria are met. The individual criteria are as follows: a. Exceptional or extraordinary circumstances apply to the property which do not apply generally to other properties in the same zone or vicinity and result from lot size or S shape,topography or other circumstances over which the owners of the property since the effective date hereof have had no control. The property located at 2625 County Highway 10 is an irregular shaped corner lot with street frontage on both County Highway 10 and Eastwood Road.The size of the lot,the shape of the lot, and that the lot has two street frontages are exceptional and extraordinary circumstances that is not generally similar to other properties in the same zoning district. b. The literal interpretation of the provisions of this Title would deprive the applicant of rights commonly enjoyed by other properties in the same district under the terms of this Title. The shape and size of the lot may make commercial development prohibitively difficult on this lot if the provisions in the City Code were strictly adhered to. c. That the special conditions or circumstances do not result from the actions of the applicant. Neither the orientation of the lot(two street frontages)nor the irregular shape of the lot were created by the applicant. d. That granting the variance requested will not confer on the applicant any special • privilege that is denied by this Title to owners of other lands,structures or buildings in the same district. Granting a Variance in this case would not confer a special privilege on the applicant. The Mounds View Animal Hospital July 18,2001 Page 3 size,shape,and street orientation make this property different than others in the same zoning • district. Nearly all properties in B-2 zoning districts are able to comply with the setback requirements established in the City Code. e. That the variance requested is the minimum variance which would alleviate the hardship.Economic conditions alone shall not be considered a hardship. This is the minimum variance that would alleviate the hardship given other requirements that the applicant must adhere to, such as the number of required parking spaces and the minimum required driveway width. f. The variance would not be materially detrimental to the purpose of this Title or to other property in the same zone. The City Code states that there must be "demonstrated substantial hardship or practical difficulties associated with the property..." to warrant consideration of a variance. Those conditions exist in this case and therefore would not be detrimental to the purpose of the Code. g. The proposed variance will not impair an adequate supply of light and air to adjacent property or substantially increase the congestion of the public streets or increase the danger of fire or endanger the public safety or substantially diminish or impair property values within the neighborhood. The proposed variance would not result in any of the above-cited adverse effects.In addition to the setback from property lines,there is additional open space in the right of way between the property line and the actual pavement of the adjacent roadways, which will act as an additional buffer. RECOMMENDATION FOR VARIANCE REQUEST Based on staff's review of the request and the code requirements, it appears that there is sufficient unique hardship and practical difficulties associated with this property to warrant approval of the requested variance.The property,given its shape,size,and street orientation,maybe undevelopable without a variance from the setback requirement.Staff has prepared Resolution No.665-01 which is a resolution approving the requested variance.The Planning Commission may act on this resolution if they feel that the seven criteria have been satisfied. If the Planning Commission feels that the seven criteria have not been satisfied,they should direct staff to draft the appropriate resolution to be acted on at the next regularly scheduled meeting on August 1, 2001. Conditional Use Permit Request • According to the City Code,animal clinics are allowed in B-2 zoning districts as a conditional use. The Code also states that the Planning Commission is required to consider the possible adverse Mounds View Animal Hospital July 18, 2001 Page 4 • effects of all proposed conditional uses. The findings of the Planning Commission shall be based upon,but not limited to, the following factors: • Relationship with the Comprehensive Plan. • The Geographical Area Involved • Whether such use will tend to or actually depreciate the area in which it is proposed. • The Character of the Surrounding Area • The demonstrated need for such a use. The future land use aspect of the Comprehensive Plan identifies this property as community commercial. A veterinary clinic would be consistent with the community commercial designation. This use is also consistent with the City's plans for the property,as the City has been marketing this property for a commercial use. A veterinary clinic maybe new for this specific property,but the Mounds View Animal Hospital has been operating with a conditional use permit in the area for many years. The issue that must be discussed is the impact upon those properties immediately surrounding the site.Some concerns have been raised by neighbors regarding access to the site,noise of animals, and additional traffic. The applicants have addressed these concerns at previous Planning Commission meetings and have indicated that animal noise would be controlled and traffic would be minimal given the limited • number of appointments scheduled at one time. Access to the site would be considered during the development review process at a later date, unless the Planning Commission wishes to add a condition to the conditional use permit that would limit the number of access points.These concerns raised by residents are also addressed in the City Code. Section 1113.04, Subdivision 4, lists the specific conditional use permit requirements for veterinary and animal clinics. These requirements are as follows: a. Noise and odor are effectively confined to the premises in accordance with Chapter 6 of this Municipal Code,Nuisances. b. The boarding of animals is not provided for beyond hospitalization for surgery,illness or injury. c. A mechanical ventilation or exhaust system shall be installed to control,capture and remove emissions:or odors generated by such use. Such systems shall be separate from other ventilation systems in the building. Such system shall be designed to prevent the migration of emissions or odors to other parts of the building. Installation must comply with Minnesota Building Code Mechanical Systems,chapter 1345'.(Ord.441,5-23-88) • RECOMMENDATION FOR CONDITIONAL USE PERMIT After holding the public hearing and discussing this request with the property owner, staff would recommend that the Planning Commission review the testimony and any adverse affects that would be caused by this request to determine if there is a legitimate basis for recommending approval of the Mounds View Animal Hospital July 18, 2001 Page 5 conditional use permit to the City Council. Staff has prepared Resolution 664-01 that the Planning 410 Commission may choose to act on if they feel that approval of the conditional use permit is the appropriate course of action.If the Commission feels that adverse affects on the neighborhood would be too great to warrant approval,they should direct staff to draft the appropriate Resolution for action at the next regularly scheduled meeting on August 1,2001. Code Amendment Request The applicants have indicated their desire to board animals at their proposed new facility.The City Code, however, currently does not allow the boarding of animals within the City except for short periods of time and only when associated with surgery,illness,or injury.Therefore,an amendment to the Code is necessary to allow this service. The City Code treats amendments in a similar fashion to conditional use permits.-As with conditional use permits,the Planning Commission must consider possible adverse affects of the amendment.The findings of the Planning Commission shall be based upon,but not limited to,the following factors: • Relationship with the Comprehensive Plan. • The Geographical Area Involved • Whether such use will tend to or actually depreciate the area in which it is proposed. III • The Character of the Surrounding Area • The demonstrated need for such a use The specific text amendment as described below would only apply to B-2 zoning districts. With many B-2 districts in the City,the adverse affects relating to the geographical area and surrounding area as listed above is difficult to measure generally. It can be said, however, that all B-2 zoning districts are located along County Highway 10. Therefore,when considering adverse affects to an area, the Planning Commission must look at what negative affects would be created if an animal boarding facility were present along County Highway 10.Also,since the amendment is proposed as a conditional use, any proposed animal boarding facility must be approved by the Planning Commission and City Council,at which time further conditions may be placed on the approval if the specific location warrants them. Chapter 1113.04 Subdivision 4 of the City Code allows veterinary and animal clinics as a conditional use in B-2 zoning districts but prohibits animal boarding except for when associated with surgery, illness,or injury.This section can be amended to allow animal boarding if the Planning Commission feels animal boarding is an appropriate use.The following change would allow animal boarding as a conditional use in B-2 zoning districts: Chapter 1113.04 Subd. 4. Veterinary clinics,and animal clinics,and animal boarding facilities;provided,that: IIIa. Noise and odor are effectively confined to the premises in accordance with Chapter 607 of this Municipal Code,Nuisances. Mounds View Animal Hospital July 18, 2001 Page 6 • • Y - . ... ... .. .. : : . • . b. e: A mechanical ventilation or exhaust system shall be installed to control, capture and remove emissions or odors generated by such use. Such systems shall be separate from other ventilation systems in the building. Such system shall be designed to prevent the migration of emissions or odors to other parts of the building. Installation must comply with Minnesota Building Code Mechanical Systems, chapter 13452. (Ord. 441, 5-23-88) The Planning Commission should determine whether these requirements are adequate for animal boarding facilities or if more are needed. Staff has prepared an Ordinance for your review that includes the changes listed above. The ordinance can be modified before forwarding it to the City Council if the Planning Commission feels changes are necessary. Staff also recommends that Chapter 1102.02,DEFINITIONS,be amended to remove language in the definition for VETERINARY OR ANIMAL CLINIC that prohibits animal boarding, and a that a definition of animal boarding be added in order to specify what `animal boarding' should include.. The following existing definition could be amended as follows: • VETERINARY OR ANIMAL CLINIC:A structure intended for providing medical examinations and treatment to animals. Services would be limited to small animals and weet may include boarding of animals. (Ord. 441,5-23-88) The following are some related definitions taken from The New Illustrated Book of Development Definitions, by Harvey Moskowitz and Carl Lindbloom. These definitions should be made more specific, possibly regarding types of animals and size of animals, depending on what the Commission feels appropriate. The Planning Commission should also consider that the definition would apply to animal boarding within the City,not just for the Mounds View Animal Hospital. ANIMAL KENNEL: Any structure or premises in which animals are boarded, groomed,bred,or trained for commercial gain. KENNEL:A commercial establishment in which dogs or domesticated animals are housed, groomed,bred,boarded,trained, or sold, all for a fee or compensation. RECOMMENDATION FOR TEXT AMENDMENT A recommendation to the City Council regarding Ordinance 685 is included in Resolution 667-01. The Planning Commission should review the text change as described in the Ordinance and provide • input relating to the change as well as discuss what the definition of animal boarding should include. If the Planning Commission feels that animal boarding is not appropriate for B-2 zoning districts, they should direct staff to prepare the appropriate resolution to act on at the next regularly scheduled meeting on August 1, 2001. Mounds View Animal Hospital July 18, 2001 Page 7 COLA"---.• • Jim Atkinson,Planner Attachments: 1. Development Application 2. Zoning Map 3. Location Map 5. Proposed Site Plan 6. Resolution 664-01 7. Resolution 665-01 8. Resolution 667-01 9. Proposed Ordinance 685 • • C • COMMUNITY DEVELOPMENT DEPARTMENT [119,,DUNDS PLANNING APPLICATION 2401 County Road 10, Mounds View, MN 55112 (763) 717-4020 � � Fax (651) 765-1660 io�res3 . Partne=sh' Please Type or Print Information-Complete Both Sides of This Form Applicant Information Name of Applicant /►t ou.vnr view �'"ma,- W .1/r►- Telephone iG3- 77P--V 3s"! Address 2 VS-1i My II 1 b Ng Fax 1112 C•O3 7 r2 mfNos do OWE ,.a , ,,, SSI1 v Interest in Property(check appropriate box) ❑ Owner of Property 0 Contract for Deed Owner ❑ Lessee, Operator, Manager K. Agreement to Purchase ❑ Other(explain) Applicants must provide evidence of interest in property at the time of application,and if you are not • the owner of the property,you must provide a letter of permission from the owner giving consent to the filing of this application. The property owner must sign this application for it to be accepted. Property Description/Proposal Address or General Location Ulf �i4,11 /, C714 RIO _% Legal Description 26 ar ,Nw�/ iv It' • Property Identification # (PIN #) # of Acres ; e/ Current Zoning "Ripe of Application ❑ Comprehensive Plan Amendment $250 ❑ Rezoning $250/acre (Min $250 max $1500) ❑ Major Subdivision $250/acre.(min. $500) ❑ Minor Subdivision $200 ❑ Planned Unit Development(PUD) $500 plus$500/acre ❑ PUD Amendment $350 Conditional/Interim Use Permit R-1, R-2$100; all others$300 Variance R-1, R-2$100 all others $300 • ❑ Code Appeal $100 23 Develop Review/Site Plan • $125/acre; min $125 max$750 • 0 Wetland Alteration Permit R-1, R-2 $150; all others$200 ❑ Wetland Buffer Permit R-1, R-2 $25; all others $100 ❑ Floodplain Permit $200 ❑ •Other A deposit may be required to cover costs of public notices,materials and staff or consultant time spent in the review,research or preparation of materials assodated with this application. The applicant shall be responsible for all reasonable incurred costs in excess of the initial deposit amount. Any portion of the deposit not spent or encumbered shall be refunded to the applicant within 30 days after consideration of the application is completed. • Planning Application Page 2 Present Use of Property 4 Undeveloped/Vacant 0 Single Family Dwelling • ❑ Duplex/Two Family Dwelling ❑ Multi-family Dwelling ❑ Business/Commercial Establishment 0 Industrial Establishment ❑ Other(explain) • Property Classification 0 Abstract ❑ Torrens Description of Proposal - BY MY(OUR) SIGNATURE ON THIS APPLICATION,I HEREBY DECLARE THAT,TO THE BEST OF MY KNOWLEDGE,THE INFORMATION PROVIDED IS TRUE AND ACCURATE. Signature of Applicant Name of Applicant(hyped/prince) ue..• Kt'vi,f Wig-444f Signature of Property Owner �' �.-► 1�,Q�vU^ Name of Property Owner(typed/printed) 43 e-e- --► �r�s • Address of Owner 2-4/6 / ,z// 5S/1 Z Phone Number of Owner 'Ila 7/7 2.7 .****************************** « 4******* ***** *** ******** ** **** FOR OFFICE USE ONLY' • Date of Submittal - 0 t • Date of Acceptance Assigned to: Planning Case No. C.,L•. 1-o 0 a. 60-day Limit 120-day limit VrQO -co % t) of-O03 Fees Paid: Account# Check# Receipt 3 0 0• oO J 06331 7606 $3S C) Park Dedication: Deposits: ✓c c+. - 3aroo 0034x7r2 Other: Qj, t aS•o 0 000 Total: 0435'-a U 1/98 41111 • 14: 1-• fVV )00 I 7901 7900. L.... Zoning Map [ 7881 8 7891 Ic4ii, 1 7880 7895 c 7'0 7885 7876! .7885 7866] 7867 7870 7869 7877 7854 7851 7860 7865 . . 7863 7842 7841 • 7850 7855 9 ' Ito 7853 7830 4 7840' 7835 382 7815 7790 7815 . . ,,.> t955, . 781. o, 7805 i\A 77800 7770 7801 7800 g " - "4.,. `y . 7801 7764 7751 *. 1, '‘ ` 7767 7760 . '5 7741 7761 7750 7731 773 7?�1 7710 7711 Subject Property— , 77 55 Recently rezoned to 41111 B-2, Limitedrh, + 7745 Business '' r.-.-_ . . ? yi., 141W N re") CO or) *1/2:4, tr) i..- 4 In40 tL"Ai ti,+ ii I . ' 4 r19 . , .r, ,,,,, , Mt) IP ra F 4 • .... ., ., , ,. IN b City of Mounds View - Location Map 0 qIim t 1)i.c 1.7 1J , Llr ja,rI a11T1S 4 4%(4—IA 0—.*.1k*...d = ;, 44 1w..1A-',. 1= t-1'',t4,_,-i;' ■w= \�r ': ' 4 - f2625 Highway 10 MI t d' rn �# ti.a III♦ ***614414: 7017 MN Mil -414111111111110 1. .,. ,.., 1 mii ink .0„,_ . ,,,2 - , . -Ft ,+ ,,,w ritrig 4..„,,-„,:- „,,.!, ,N0,..,1.,..,.. P NISI 3 1 - lit ��-- f 40 ,i _ , R 71 =, _ i ,ars I. _ �A Mounds View Animal Hospital 11 MI lQli-' --==11=1 - Kevin Barcus and Bruce Schnable = 1__.• �_,, - w a_ _- Property Involved: 2625 Highway 10 %won VarianceJr1..; ti'urr - Planning Case No. VR0 1-008li -: . g ,1- � - NI ,':,...4.;RIR.,' 2625 Highway 10 ar•~, _ .1 F 'lig '' ■,1�7; ��, ■ '�It_■ , ' Properties Within 350' s !�l� 'a,, ..• _1`.'�-111111?' I- - h `;.x•..#1.4 'X611111111 I II' sl ■uuu11 ,�1��1:' uus molth- Il�.-, ,1 1 = ±ut qui � 1 ("i , 4 RINI �11�111 1.... - I 4 yin L tit---•.tui ■6 � 1- �!/ ',Illi m- ;��". "� Cay of New Brighton 1."11$1 0 L--- NNW SW AW soar Na0NON •»•,•••••»•••'•••• .ri«r —.. nnn watawr sIaaw�a�w�r�n�v a MOWN OD ra ��/��3119 alagalrallal==.,. N id •—NS r'W. .. a• 6 ,a AMAX, 1 MVO Wi�+INRk11T1.4"9 W.1k0014"AWN ALVA wow w si ...iamb. r i'1t .. J . S ut lab a a -A/. a+►i xg` . o 1 Mlle o , t" :9*----' Q11 GNU - CL es . '1/4: .. * . . . 74 . s4404 T 44* • •• • ... , i .0 -•. ''''S' la %IF... '•1* '. 0 .!•:•'•• •qty/ 1y • �.w +/ rI s • .... �,•1 0zd� °, LLI9 .ems"; O tr. �✓ rI • N 't0 z7a . i i t i I , 1 t t • i 1 ` / COTT OF Item No. 6B, O�U�JC�� Meeting Date: July 20th001 Type of Business: EB S i. Q[, EB:EDC Business IN.:Informational Item S 4'4*•Partnersh`Q City of Mounds View Staff Report To: Economic Development Commission From: Aaron Parrish, Economic Development Coordinator Item Title/Subject: Potential Restaurant Development within Mounds View Date of Report: July 13th, 2001 Background On a number of occasions, the Commission and members of the community have expressed an interest in additional restaurant development within Mounds View. More specifically, the desire for a nice sit-down restaurant has been discussed. Accordingly, staff has been developing a list of potential restaurants for a targeted marketing/attraction effort. Two lists have been developed. One highlights potential sit-down restaurant users while the other provides options for the Walgreens outlot. These lists have been attached for your review. • Staff is requesting that the EDC evaluate the list and make suggestions for anyadditions. Q 9 99 Once a list is established, a letter will be drafted and sent along with some supplementary information. Additionally, a concept site plan submitted by Wendell Smith for the Long Lake Road and Highway 10 Property (Theatre Outlot) has been included for your reference. At this time, staff has not been informed of any potential users for the property. However, Mr. Smith did indicate that multi-tenant retail/restaurant uses are being contemplated. Of course, the plan is a concept at this point. Additional details will be provided as the concept evolves. Necessary Actions 1. Discuss Potential Restaurant Development within Mounds View. a-e0-coviet... Arzez.44;01e. 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Q. /i ', ' • t61 �� J . .1 III Om , ,, . .0, 0, N— ig • • L — �-- • \W 4 0 I' I / 7 a.di 8 LONG LAKE ROAD wtou.rtitnot dw..4..... t ogs:is Z'd 9E46 6E9 l99 SIOMIHOdv NW4Mf1OH WO fd Wd8E e P t —ZO--L COTT or • I11© _ S °et°s� Partne(s\4 Supplementary D ErnaDmEmE]taaco)im • I avy OF I11©APSHO Phone: (763) 717-4000 DEN Fax: (763) 784-3462 Ar S Bre's Partners'-`Q June 22, 2001 Tim Nelson Everest Development 2665 Long Lake Road Roseville, MN 55113 RE: Mounds View Business Park Building N Dear Tim, In a recent business retention visit conducted by the Mounds. View Economic Development Commission, it came to our attention that Disetronic Medical Systems is interested in possibly acquiring all or a portion of the remaining space in Mounds View Business Park Building N. Further, it was indicated that they are interested in possibly purchasing the building. While we realize that this matter is civil in nature, as a City we would like to strongly • encourage you to consider all realistic options to accommodate Disetronic's additional space needs. Disetronic is a growing company that we would like to see stay in Mounds View. A concerted effort on your behalf to keep Disetronic in Mounds View would go a long way toward building goodwill and establishing a positive relationship with the City. We look forward to a mutually agreeable resolution to this issue. Please feel free to contact us if you should have any questions. Thank you for your time and consideration. Sincerely, Rich Sonterre • Tom Field Mayor of Mounds View Chair, Economic Development Commission • S } 2401 Highway 10•Mounds View, MN 55112-1499 sonriNK Website address: http://tcfreenet.org/org/moundsview f.: TM Equal Opportunity Employer recycled paper •• alma ino uosaad ijuo aqa aq Phantom leagues.That's what Bruce Anderson, l bursa I aega etowi 1 'aanamoH Since then,dozens of residents director of parks and recreation for the city of, I -amq; jiascui 2upand aoj am have come to City Council meet- Maplewood,calls them recreation soccer teams that 1-jsuodsaa djajos ant I"•.Cys zing Ings asking the city to react don't officially reserve fields for games.They Just ;uojaenajs Aux 2ujpmfia t aro(us with urgency. The steering • show up and play wherever they can find the num;iiyas o s ou adxa L. committee's recommendations, When they can't find the green they need In 'dn anjs;l oa jou SMOA log which will be presented today, space r;,. amfa$ al pewee!aq paeaj osje are meant to help control speed, their home community, they seep onto soccer fields in neighboring locales. aH'Paljdda de Woad 00e gojgm aoj improve,pedestrian safety and It's happening all over the. Twin Cities as a rug mimes aaandutoa a m qof a establish community identity. shortage of fields in some cities spills over into 10j sasjjeug.moj;iuotue sem aq "Safety is the primary con- cern.That's 1 '11 3[00A1Ismpommel zjnu cern.That's the impetus for this It has gotten so bad in Maplewood that signs " "' "" ""'"�" study,"said Aaron Parrish,eco- have been posted warning soccer teams they need nomic development director. permits to play.Anderson doesn't want people to Among the list of ideas is to think his town is parochialIt's just that Sundays transform the road to appear ST. PAUL PIONEER PRESS more like a boulevard than a SOCCER FACILITIES,4B commuter highway.Suggestions A ��/ include renaming the road to a boulevard or parkway;buffering TO LEARN MORE the highway with plants'flowers and shrubs;and developing the is The Web site for Soccer5paces is at center median. Safety features Ess could include colored crosswalk e www.soccerspaces.org, ;• pavements, more speed limit • • The Minnesota Youth Soccer Association COUNTY signs,longer walk signal times,a Is at www.mnyouthsoccer.org. • ROAD 10 IN pedestrian bridge or tunnel,more MOUNDS VIEW trails �origire nally wwanted to reduce the speed limit from 50 SPOTLIGHT ON MOUNDS VIEW ■2000-37 accidents, mph to 90,but altstudying the one pedestrian killed road,the Minnesota Department C011ilty. a 1999—31 accidents, ofu rentspeedlimi concluded the • 1.loacl • one pedestrian killed current city ha hiredt au cient nsult The city has hired a consult- ant,URS of Minneapolis,which will conduct the community 10 safetymeetings,Based attheCo lill� meetings, the group will work J with the project team to come up with Road 10 later be presented will options that to the c ubli ready In resaddidennts, tot thee pressure Is i1aiis (continued) workingothe city also - against another dead- line action." line to get the project done. Making the highway corridor Now that the state has turned safer has been discussed for the road back to Ramsey Coun- budget • .• years, but improvements have ty,there is a$1.2 million budget 2 pedestrians died in 5 months stalled because of disagree for maintenance along the corrl- ments over the best way to do it dor. arose Anticipating the safety proj- ect, However,the death last year of Ramsey County has told the BY NANCY NGO 13-year-old Brandon Harstad, city it could use some of the Pioneer Press who was struck and killed by a money for reconstruction rather More than a year after two pedestrian deaths car while trying to cross the than maintenance it the city has highway at Edgewood Drive, a plan in place by December. prompted cries for a safer County Road 10, was the last straw. Mounds View residents will get their first look at 1 Nancy Ngo,who covers north proposed improvements tonight It was the second pedestrian suburban communities,can be The community forum and open house will be death in five months.A pedes- t reached at held at 7 p.m.in City Halt It will be the first in a erica had been struck and knn 2149. neerpress.com or(55I) series of meetings that will give residents a chance earlier at Pleasant View Drrlledive. 228--2149. to respond to more than a dozen options. is The a rinnab ni tteethat came pwiproject team m de p "I see this asa 1 Making County of city employees,residents and business owners. transition between • A comm 10 safer "I see this as a transition between studying the A community forum will be held issue and then doing something," said Mounds studyingthe issue and Monday to discuss making the View resident Bruce Brasaemle who is a member , 4-mile stretch of County Road of the project team."This is when we'll start see- 10 safer.Residents have been then doing something. rallying for road Improvements since 13-year-old Brandon COUNTY ROAD 10,4B This is when we'll start Harstad was struck and killed while ta+ seeing some action." they street.cross RAMSEY ammanstimminnizava' to BRUCE BRASAEMLE 4-mile stretch of „•C0 Mounds View resident County Road 10 St.Paul • "lileeisnt, Oa J 5; ' , View Dr:, •.85th A ii.N.ET • SPRING'. MOUNDS:'. :;{ "LAKE {orifi K:fi,,:" cr, VIEW,.;,'*•`a le tet' . • Osborne-U.`) J gigIlt S ` u PIONEER 70 i' ' I • Jit :rttritt,,eriyaok.itf:-4,1.0 MINNESOTA TIF/MUNICIPALITY LEGISLATION Legislation concerning the way municipalities administer projects (such as tax increment financing, abatement and business subsidies) _ can be found below. Click the bill number to getKU a summary of the bill, the bill's status and other 2":" ' � important information. Governor Signs Property Tax Reform • On Saturday,June 30th, Governor Jesse Ventura signed the Omnibus Tax Bill into law. Included into the Tax Bill was a wide sweeping property tax reform that will dramatically effect the way cities, counties and school districts assess property taxes. Among the highlights of the property tax law are: -Elimination of the state-determined general education levy; -Class rate compression within and across property classes (to view class rates, click on the link); -A statewide general property tax on commercial/industrial and seasonal recreation properties; -Elimination of HACA for all local governments except counties; -Establishment of TIF grants to offset losses to TIF districts due to class rate reductions; -Changes in the blight test for redevelopment and renewal&renovation districts; -Changes in the duration limits for redevelopment, housing and hazardous substance subdistricts as well as abatements; -Levy limit provisions for counties and cities with a population greater than 2,500 for taxes levies in 2001 and 2002, and payable in 2002 and 2003. Copyright®Ehlers&Associates,Inc.,all rights reserved • H.F. 1.First Special Session it/ June 28. 2001 Version: Delete-everything amendment 1)Olcr/ Page 32 Section • • Article 3: CLASS RATE CHANGES • Current Law Proposed Class Rates Local Tax State Tax Residential Homestead: Up to $76,000 • 1.0 % • 1.0 % $76,000 -$500,000 1.65 1.0 Over$500,000 1.65 1.25 Residential Nonhomestead: Single unit: Up to$76,000 1.2 • 1.0 $76,000-$500,000 1.65 1.0 Over$500,000 1.65 1.25 2-3 unit and undeveloped land 1.65 1.5' Apartments: Regular 2.4 1.82 Small city 2.15 1.82 Low-income 1.0 0.93 Commercial-Industrial-Public Utility: Up to $150,000 2.4 1.5 1.5 Over$150,000 3.4 2.0 2.0 • Electric generation machinery 3.4 2.0 - Seasonal Recreational Commercial: Homestead resorts(1c): 1.0 1.0 - Seasonal resorts(4c): Up to $500,000 1.65 1.0 1.0 Over$500,000 1.65 1.25 1.25 • . Seasonal Recreational Residential: Up to $76,000 1.2 1.0° 0.4 $76,000 -$500,000 1.65 1.04 1.0 Over$500,000 1.65 1.254 1.25 Disabled homestead 0.45 0.45 Agricultural land & buildings: Homestead: Up to $115.000 0.35 0.55° S 115,000-$600,000 0.8 0.554 Over$600,000 1.2 1.04 Nonhomestead 1.2 1.04 ' Rate reduced to 1.25% in pay 2003 and thereafter. Rate reduced to 1.5% in pay 2003 and 1.25% in pay 2004 and thereafter. Rate increased to 1.0% in pay 2003, classification abolished in pay 2004. Exempt from referendum market value tax. Article 3: Property Taxes • filETROVH100 Published Sunday,July 8,2001 As smoke clears, hard impacts ahead for tax increment Mike Kaszuba/ Star Tribune In the complicated world of public subsidies, there is good news for a $70 million plan to turn an old flour mill on downtown Minneapolis' riverfront into a museum, private offices and $600,000 condominiums. On the 495th page of the state tax bill, which Gov. Jesse Ventura signed a week ago, special language was inserted to spare the Washburn Crosby project from the sweeping changes to a widely used development tool known as tax- 1110 increment financing. But for most projects across the state using the subsidy, including those in the planning stages and Minneapolis' decade-old Neighborhood Revitalization Program, the news is jolting. The Legislature has significantly changed the world of tax-increment subsidies, a favorite funding mechanism for developers that has been used -- and, critics say, abused -- in the state since the 1970s. And in the week since the Legislature finished a special session, the 436 Minnesota cities that use the subsidies to entice developers have been left to ponder the severity of the problems they now face. There is still considerable debate over how wide-ranging the impacts are. Sen. Larry Pogemiller, the Minneapolis DFLer who co-chaired the conference committee on taxes, called it a "fundamental paradigm shift" for tax-increment subsidies. "I think there will be much less use of[the subsidies] in the future," he said. • That is because there will be much less property-tax revenue to tap for the • subsidies. As part of the Legislature's push for property-tax reform, tax rates for commercial and industrial property--where much of the tax-increment money gets spent -- have been reduced for the third time in four years. For taxes payable next year, the rate will drop from 2.4 percent on a property's first $150,000 in market value to 1.5 percent. In 1998, the rate stood at 2.7 percent. Additionally, the state's takeover of K-12 education expenses means less money for tax-increment subsidies because it eliminates the general education levy from local property-tax bills. Since its inception, tax-increment financing has been a popular tool because it diverts a new development's higher property taxes from going to cities, counties and schools -- as they normally would — and instead uses them to pay for improvements made to the property. Now, generally speaking, "you're looking at one-third less [revenue]," said Andrea Stearns of the League of Minnesota Cities, a municipal lobbying group. Even Stearns, however, is uncertain what will happen next. Although tax- 9 411 increment financing will be less attractive to cities and developers, she said, commercial and industrial property owners should have less need for subsidies because the Legislature has reduced their property-tax rates. "The effect has been overdramatized, I think," said Joel Michael, a House analyst specializing in tax-increment subsidy law. "[It's] hard for me to leap to the conclusion to say, 'Gee, this is going to kill tax increment.'" A late boost In Mounds View, where the Mermaid Supper Club's $10 million expansion was put on hold while the Legislature met, city officials and owner Dan Hall are cautiously optimistic. "All I know is my proj ect is going forward," said Hall, who said that analysts studying the changes will need a month "before the learning curve hits." • • Jim Ericson, the city's community development director, said the city is now racing to try to meet a state-mandated Aug. 1 deadline to have key components of the project in place. Although the Legislature's changes were substantive, it did act to protect so- called projects in the pipeline -- like the Mermaid -- that were about to move forward based on calculations using existing law. And, in a significant late move, it also sweetened a state grant fund for tax-increment projects affected by the tax changes. For new projects, Aug. 1 is now the magic date. Any proj ect that issues bonds or has a binding contract and has applied for certification by Aug. 1 has access under the new law to technical, but important, financial advantages. They include the ability to obtain expanded "pooling" authority to use money from other city tax-increment proj ects to cover a particular tax-increment deficit and the potential to access the new grant money. The law also allows for the use of a • special deficit authority to adjust the local tax rate and select a more favorable fiscal-disparities payment, an annual transfer of money from metro area cities with fast-growing commercial-industrial tax bases to those that have had less growth. Next year, the state will make $91 million available in grant money. In all years after that, the annual total will be $38 million. "Redevelopment will be much more difficult to do," said John Cox, Champlin's deputy city administrator. "[But] our perspective is what was done was historic, was significant and was necessary ... unfortunately, it had impacts on tax increment." With 18.36 percent of its property-tax base in tax-increment projects, Champlin is one of the larger users of the subsidies in the metro area. Cox said the legislative changes may mean delays for Mississippi Crossings, a proposed restaurant, marina and retail project near the Anoka-Champlin bridge that would use the subsides to acquire more land. Delays, however, are apparently not in store for the Washburn Crosby project in • Minneapolis. Nina Archabal, the Minnesota ota Historical Society's director, had lobbied legislators during the special session's waning hours to help the project go forward with tax-increment subsidies. The historical society is developing a three-story museum as part of the development. "It looks like the Mill City [Museum] project ... it's not fair to say exempt, [but] they will not have to meet some criteria," said Laurie Brickley, a Historical Society spokeswoman. Under the provision, which city officials are still studying, the project appears to be eligible for special status in drawing from the new state grant fund, said Dick Victor, a senior project coordinator with the Minneapolis Community Development Agency. "Basically, there's less red tape for us to get at the pool. ... Ours goes first," he said. --Mike Kaszuba is at mkaszuba@startribune.com. i ®Copyright 2001 Star Tribune.All rights reserved. 4.. ›,011 6 tii-1415,) ti,c1 . g•-• ego s S 4 t.,)Qc611,0 iS .8 " 04-0"P3 (1 1.)00›c.4-n1l4•0.4•TV rEvt&00". g#en5..,05„1--.dco-00 o"41-.u 4.3 g Atn.5.i6„0,g 4`A').s4"2.•.2.4540= 8- 0.-1 ... 0' to to 0.8 I..,- & ..... ct 5 ...1 ... 0 .cl,:: ,...,rA- ;:..- , i . ,00:502.. % gli-,46800g• 5 o A ,. ,I, ..1 ;:. 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'4 74,1) . ° 1,„.flt 0 T,1•5-a olw—at,i), 0 , ..,.,,,0 oev,I.s •Ss .s.4 r...i..).,0 ca ,„ e0, 01.v. 0: 0 ,,,•1 0 ^51, 4" Tech. 07/10/2001-Updated 10:49 AM ET Tech flails cities that put money into industry By Jon Swartz, USA TODAY When city officials in Austin, Texas, committed $50.5 million to create a downtown high-tech center last year, it seemed a wise investment. The fast-paced Internet economy was purring, and local politicians envisioned gleaming new facilities in a "Digital Downtown" that would employ 7,500 workers and spur development of housing, retail stores, restaurants and clubs. But the economy soured, and Digital Downtown now resembles a ghost town. The cornerstones of the city's project, including Intel, Vignette and Computer Sciences Corp., have delayed or pulled the plug on 111 construction. High-tech hubs in the USA and abroad are having their share of low times. Communities at rode the New Economy in the late 1990s have faltered, their cyber plans turned to cyber dust. ationwide, high-tech communities are feeling the pain of shutdowns, layoffs, commercial real estate vacancies, evaporating venture funding and slower growth of new companies and jobs. Since January 2000, 555 dot-corns have closed, and there have been 127,000 Internet-related layoffs. Monday, online grocer Webvan laid off 2,000 workers in California, Washington, Illinois and Oregon. The most exasperating losses, however, are for local governments and economic development agencies that poured taxpayers' money into tech ventures that have yet to pay off. Public money has funded everything from construction tax breaks for offices and factories, to job training, to venture capital funds for financing start-ups. But New York City's nearly 2-year-old, $25 million tech investment fund hasn't yet invested in any firms because it can't find any worthy candidates. "The money is just sitting there," says Jonathan Bowles, research director at the Center for an Urban Future, a policy think tank in New York. Despite the downturn, most cities and states are still willing to court high-tech firms, because they and their high-income workers generate generous tax revenue and pump cash into local economies. The average annual output of tech workers is $200,000—double that of other white-collar workers— according to the Milken Institute, an economic think tank. Large tech players such as Intel in Texas and Cisco Systems in California are among the biggest taxpayers in those states. Still, some regions have yet to see their tech investments pay off: •In Austin, chipgiant Intel last Marchput the brakes on a 10-story office building that the city helped rY finance with $9 million in fee waivers and transportation improvements. Intel has not indicated when construction will resume. It has also delayed projects in Denmark, Malaysia, California, Oregon and • Arizona. Computer Sciences, which will belatedly complete the second of three office buildings in November, may take several years to build the third. CSC was granted $10.4 million in deferred costs and incentives by the city last year. In May, e-commerce software firm Vignette scuttled plans to build a $350 million office complex in Digital Downtown, which is now littered with towering cranes over unfinished construction sites. Company officials say expansion didn't make sense, even with a $25 million incentive package of reimbursed property taxes and waived development fees the city approved in December. That's because Vignette lost $229.8 million in the first 3 months of 2001 and has axed 540 employees, nearly a fourth of its workforce, this year. Its stock, which peaked at $200.94 a share in April 2000, has slumped to $8.55. The bare-bones buildings in Austin underscore "a negative image that is symbolic of a slumping economy," says architect Jack Tisdale, a member of the Downtown Austin Alliance. All told, Austin is missing out on an estimated 1,700 jobs that would potentially feed the city's economy with millions of dollars in disposable income and taxes. Unbowed, the city is prepared to offer Advanced Micro Devices $95 million, mostly in reimbursed property taxes, to build a 1,500-worker microchip plant. The situation is raising the ghost of Austin's real estate bust of the mid-1980s, when Texans groused about changing the state's official bird from the mockingbird to the crane. An '80s term has resurfaced: Texans call the empty structures "see-through buildings," says Bob Richardson, a Dallas bankruptcy attorney. • "The Intel building is a multistoried tombstone to the high-tech boom," says Mike Levy, publisher of Texas Monthly magazine. • New York Mayor Rudolph Giuliani had high hopes when he authorized the Emerging Industries Fund in September 1999. The plan was to invest $250,000 to $1.5 million in promising high-tech start-ups overlooked by venture capitalists and to retain small businesses. But the fund, which hired venture firm Draper Fisher Jurvetson Gotham to weigh proposals, has not invested in any of the 136 small-business owners who applied. Critics say the $25 million fund could have been used on education or to beautify parks. "It's no wonder people think government moves too slow," says Peter Vallone, speaker of the New York City Council, which rescinded $10 million from the fund in June. "I can understand not wanting to waste taxpayer money, but sometimes taking a little risk can go a long way toward benefiting everyone." Michael Carey, who oversees the fund for the New York City Economic Development Corp.,blames the tech-stock meltdown for the fund's slow start. "What if we had invested in companies that bombed?" he asks. The fund is in the "final stages" of approving its first investment, Carey says. • The $12 million Oregon Resource and Technology Development Account, started in 1985 to invest in 40 high-tech companies, began investing last year in university research projects because it didn't see enough high-tech opportunities. Asian cities have also been caught in the tech slowdown. Cyberport, a $2 billion plan by the Hong ong government to develop a high-tech office hub and elevate Hong Kong's position as a tech hot spot, has labored since its 1999 debut. It has been criticized as everything from a glorified land deal to a government subsidy for high-tech companies. "Let's not kid ourselves," says Joseph Sweeney, research director at Gartner Dataquest in Hong Kong. "The goal of the place is not to enrich Hong Kong's IT community. It was to stimulate the property market." Annie Tam, deputy secretary of Hong Kong's Information Technology and Broadcasting Bureau, counters that the project has been "progressing well" and says the first phase should be complete in 2002. Microsoft is Cyberport's anchor tenant, she says. Also in limbo: Malaysia's $20 billion Multimedia Super Corridor, a 270-square-mile project hatched in 1996 to clone Silicon Valley on a neglected swath of wetlands. The corridor, due for completion in 2020, will include a digitally wired corporate city, dedicated to high-tech companies, and a new airport. So far, the government has spent $3.7 billion, or 17% of Malaysia's total annual budget, on the project. Much of the physical infrastructure has been built, and local companies have set up shop, but of the 465 companies given corridor status—which includes a 5-year exemption from corporate taxes and other benefits—only about 25 list their address there. Microsoft, which in 1996 announced it would transfer its regional headquarters from Singapore to the multimedia Super Corridor, has backed out. Further, the project hasn't drawn substantial investments om tech companies or benefited the economy, says a report by McKinsey & Co. Multimedia Development Corp., the government agency behind the corridor, maintains it is on schedule, although the agency might be "overstretched" implementing the high-profile project. It says the critical study was incomplete. It is in California's Silicon Valley, the heart of high-tech, that the slowdown has hit hardest. Commercial real estate vacancies have soared, while rental prices have plunged. Unemployment is up. And venture funding in the second quarter fell for the first time in 15 years, according to a report by online industry trade publication Venture Wire. "The Valley is in a malaise," says George Zachary, a general partner at Mohr Davidow Ventures. "There's less venture capital, fewer start-ups and not as much competitive urgency." Tech firms still wanted Many city planners insist their future economic riches remain closely tied to innovation. Several cities are intensifying high-tech investments and recruitment. "Ultimately, cities, counties and states see tech as an opportunity to create jobs and improve their infrastructures," says Perry Wong, research economist at the Milken Institute. •Cincinnati's multimillion-dollar Regional Technology Initiative, for example, launched this year with 500,000 in state funds. It will fund local start-ups and recruit out-of-state firms specializing in software, communications and biotech. • "Despite the downturn, we see a growing market opportunity next year," says Johnathan Holifield, vice president of the Greater Cincinnati Chamber of Commerce. "Tech is a wise investment." In Seattle, where used furniture stores such as Ducky's are deluged with calls from frantic dot-coms trying to unload desks and chairs, and the economic outlook is somber, biotech firms are sprouting. A 40- story skyscraper for health care firm IDX Systems is due for completion in 2003. Immunex, meanwhile, is proceeding on a $750 million waterfront campus, and the city, county and port of Seattle are financing construction of a highway overpass to accommodate it. "We're preaching a diverse, resilient economy," says Ben Wolters, high-tech sector manager for Seattle's office of economic development. "The key is job retention and expansion. It's cheaper than recruiting." Orlando,home of Disney World, is attempting to become as well known for computer mice as Mickey Mouse. Local government is financing 40% of a $17.5 million marketing campaign to establish the city as a technology center. So far this year, 16 tech firms—including circuit maker RF Micro Devices and data-storage firm Adaptec—have vowed to moved or expand operations in Orlando, creating more than 2,000 jobs and $200 million in capital investments. In July, the Tennessee Technology Development Corp. announced $45 million in early-stage venture funding—its most aggressive effort. In the heart of Texas • Intel's abandoned building is a constant reminder of high tech's low times in the southern section of downtown Austin. "The city has lost some of its swagger," says Mike Rosenfelt, a local venture capitalist. But Austin Mayor Kirk Watson, who coined the phrase "Digital Downtown," considers it a foundation for the future. "Sure, there have been hiccups along the way, but look at what we're doing," Watson says. "We're replacing burned-out warehouses with New Economy firms. We've gone from no major employers downtown to several. Once that happens, you ask four questions: Where do they sleep, eat, shop and play? Few believe the chilly economy will stymie construction downtown. "The only developments on hold are tech projects," says Tim Hendricks, senior vice president of commercial real estate investment trust Cousins Stone, which is in pre-development work on a 33-story office tower. "Everything else—lofts and restaurants—is proceeding." "Remember what was there before: nothing," Watson says. "This is a long-term investment, and it will pay off big time in 2002, 2003." • Down and out in high-tech hubs The high-ted' meltdown extends far beyond Silicon valley. Commercial real estate vacandes have soared. sQ4 2000 ipzi 2001 12 (by Percentage) U81$2 61 8.1 43 4.S Austin liciaten Maw Sun Statile Yerk 1Francisco Sconce:Lamson,hisrelbkitn,Offazesoace-cors, Providence Commercial,Manley Creasman Venture funding for start-we has slowed. Sin 2000 at2L 2001 $129.2 million Austin uasaniUhn $115 beton Roston 1111111111111111$136hulim $1.97 bilfon MIN$74111 Newseaveine'rk $6492 minion 111$272 Innen Source:National Venture Cesitai Association Unemployment has largely risen Mardi 2000 jilVlardv 2001 an=2.1% *ulna 1111•11111 22% 1111111111112.334 11111M111111116% 1111111111111011111111111115% New'fast 11.1111111111111111.1111 San 11111111111 2.1% Fra"CliCa 11111.11111112.% San 11111111111 2.3% 3°"' 11111111111 2394 Seattle 11111110111111111111111111111 4314 smote:maw,institute RE * VIEW SUMMER 2001 Published by the Real Estate, Land Use ♦ and Environmental Law Practice Group 131 How BUSINESSES CAN Mik)CIMIZE REDEVELOPMENT OPPORTUNITIES lit ,.,,,..,„,,.,..,..-4-1..., „GRIFFITH because it involves a discretionary decision of i- s Most business people assume that itis easier to develop in a the local government It is designed to provide cornfield.on the edge of town than it is in a'brownfield"in the flexibility for large-scale projects. For instance,if a center of town. In many cases,that is true. However,given the commercial corner has been slow to redevelop,the city may consider a focus of local government on turning around underutilized or polluted PUD designation to reduce parking requirements and increase develop- sites,business people and corporate property managers should look to ment density to encourage developers to acquire the site. By doing this, redevelopment as an alternative.The best redevelopment sites are parcels the site turns over to a higher and better use and increases local tax that have good visibility,access and proximity to population density. base. Usually the trade off for higher development is more landscaping, more amenities,and the like. WHERE TO START To begin your search,talk to local officials in charge of redevelop- START WITH GOOD ment The head of the local economic development agency(EDA)or "LAND USE" RECONNAISSANCE housing and redevelopment authority(HRA) in a target community Always review the city record. Ask for copies of the comprehensive may be most useful. Often,EDA and HRA staff will provide technical plan,land use map,zoning ordinance,environmental controls,as well as expertise or public financing to help move sites with significant develop- the prior history of the site and even the prior history of nearby sites. ment constraints. Take a planning approach to land development You want to Local real estate brokers,real estate advisors or real estate attorneys "know as much as the other guy." Review the sources of authority for can be other sources for identifying good redevelopment sites. development These indude the comprehensive plan,zoning map,zon- ing controls,subdivision regulations,environmental quality regulations, CONSIDER THE ADVANTAGES AND storm water regulations,wetland regulations,and parking requirements. DISADVANTAGES OF REDEVELOPMENT Meet early with planning,engineering and building staff. Keep It is typical for business people to shy away from the risks assod- notes of meetings,document resolution of key development issues. ated with development or redevelopment projects. This is not without Revise development plans without giving away the deal. For instance,if justification. Often the best sites in the urban area will require removal planning staff wants increased landscaping and reduced signage,and of constraints,such as blighted buildings,pollution or access problems. signage is critical to success,increase landscaping. Most redevelopment projects take more than a year to bring to ground- breaking. ASSEMBLE THE RIGHT TEAM On the other hand,working with local officials on a redevelopment Putting together a qualified team is essential to any development or project may actually open the door to expedited governmental redevelopment project This team will usually indude an architect, approvals,public financing,land assembly and a host of other tools to engineer,landscape planner,and development attorney. More involved attract redevelopment. Another opportunity that a redevelopment site projects may require the expertise of a traffic engineer,wetland engineer, provides is good proximity to existing support services,workforce,public fiscal consultant,and frequently,a graphic artist to prepare drawings and services and infrastructure. renderings of the project Business people who understand redevelopment opportunities and GETTING THROUGH the rigors of land development practice can add value to existing real THE DEVELOPMENT REVIEW PROCESS estate assets and locate new sites for business expansion. The key to In most cases,business people favor sites that are already zoned success in this arena is patience,the right team of experts and the good and subdivided for their corporate or business use. Consider"rezoning' judgment to know when to go the distance for a prized site. In and"planned unit development"as a way of obtaining an advantage over competitors in terms of location. Rezoning typically involves a discretionary decision by local officials to RILL( il ll l l iii., 1,11101,1,1,i iv ill, Larkin, I I, itinarn, l) Iv-,i change the dassification of land from one zone to another. In other cases, Iin.I0rctl, l.kl. I lc 1�,:R.�;��,in III( as,,,t,f real(,111(_,1,111k1 rezoning may take the form of a text amendment to clarify that a certain ,,t,1tlt,tll.tl,,\,,„,,�,tinicili.tl 1,,„,..ntl.alnt;tli,n.n i\e laa. I Ic I,�I commercial,retail or service use is allowed in a zoning district rvrl��tnnenr nai incl un l'hasc II 01- LIII ut \mcrIL t Rill run hr ic,tchULI it `)S?-,irk--i No iii ,,i_iriltith2IhftILcut , The planned unit development(PUD)concept is like rezoning --ern I.r,lin,hiot(ntan,,at,::Lu:dqrec,Lel LARIUN, HOFFMAN, DALY&LINDGREN,LTU. ° I