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Home My WebLink AboutAgenda Packets - 1996/03/03 �::�:::f f:;/: ::;:%;. . .:::::i`::>;::::?:::::::::::i::ii::ii `i::i:r::`>i>::i:':i:i:::: :`•>:?:::C The City Council will call to order with regards to Item No. 1. Items Dispensed Per Consensus 1. Discussion Regarding the Hire of the Clerk-Administrator (Paul Harrington - Interim City Administrator) 2. Presentation Regarding Utility Rate Study by Tautges and 1111 Redpath (Mary Tatarek - Interim Finance Coordinator) 41111.1111.1.1111611111211.111771r. .. .::UE C. WORK11111111.111111111:1111 SS <>' > >= i ' 3. Discussion of Proposals for Wireless Communication Antennas (Water Tower Mounted) - (Michael Ulrich - Director of Public Works) 4. Discussion Regarding Old Highway 8 (Michael Ulrich - Director of Public Works) AGENDA PAGE TWO MARCH 3, 1996 5. Discussion of Engineering Proposal for Abandonment of Surface Water Pond (TH10 and Long Lake Road) (Michael Ulrich, Director of Public Works) VIII1121111111111111111•11111111111111111" 6. Discussion of Appraisal and Legal Opinion for the Bel-Rae Ballroom (Cathy Bennett - Economic Development Coordinator) • 7. Discussion Of Appraisal for Three Lots on the Corner of Highway 10 and Edgewood Drive (Cathy Bennett - Economic Development Coordiantor) 8. Discussion of Priority of Redevelopment Properties in Mounds View (Cathy Bennett - Economic Development Coordinator) • AGENDA PAGE TWO MARCH 3, 1996 5. Discussion of Engineering Proposal for Abandonment of Surface Water Pond (TH10 and Long Lake Road) (Michael Ulrich, Director of Public Works) all,11111111111111111111111.111111-1111a IMEEMINCONOMMEIESEI 401111111111.121.11111111.11111111.111.1111111111.11, 6. Discussion of Appraisal and.Legal Opinion for the Bel-Rae Ballroom (Cathy Bennett - Economic Development Coordinator) 7. Discussion Of Appraisal for Three Lots on the Corner of Highway 10 and Edgewood Drive (Cathy Bennett - Economic Development Coordiantor) • 8. Discussion of Priority of Redevelopment Properties in Mounds View (Cathy Bennett - Economic Development Coordinator) AGENDA PAGE THREE MARCH 3, 1996 {'AAAA TION<>1=1> <> >> .................................:: . ........... ::. ill .. ............................................. ...................::.....:.................. • 9. Discussion of City Charter Update (Paul Harrington, Interim City Administrator) 10. Discussion of City Appreciation Dinner (Paul Harrington, Interim City Administrator) • 11. Discussion of Organizational/Management Structure of the Bridges Golf Course (per Councilmember Hankner) • • CFM OF REQUEST FOR COUNCIL CONSIDERATION Agenda Section 1 STAFF REPORT GUM n{`j Report Number:96-1621W3 0 -2 WORKSESSION MEETING DATE N March 4, 1996 Report Date: 2/28/96 °Breis-Partnets�"ps Item Description: Discussion Regarding the Hire of City Administrator Administrator's Review/Recommendation: -No Comments to supplement this report X -Comments attached. Explanation/Summary(attach supplement sheets as necessary) Summary: October 23, 1995 Samantha Orduno resigned as City Administrator. At the November worksession the City Council discussed the different options and alternatives available to fill the City Administrator position. Thereafter, Council authorized The Brimeyer Group, Executive Search Consultant to conduct an executive search to fill the vacancy of the City Administrator position. The Brimeyer Group met with the Council, Department Heads and community leaders to gather information and prepare a position profile. Job announcements were placed in the publications for the League of Minnesota Cities, Public Sector Job dulletin and ICMA. Approximately over 65 positive responses were received. After reviewal and iscussion of the submitted responses, The Brimeyer Group determined 12 candidates met or exceeded the qualifications for the position. At the February worksession the candidates were narrowed down to six individuals who were selected for interviews. Friday, February 23, 1996 the final candidates toured the City and municipal facilities. They also met with the Council, Department Heads, staff and community leaders. Interview's were conducted by the Council Saturday, February 25, 1996. A special meeting was held, Monday, February 26, 1996 at which the City Council and Jim Brimeyer further discussed the qualifications of each candidate. It was determined that Chuck Whiting best met and the qualifications and needs of the City. Mr. Whiting graduated from the University of Minnesota earning a Bachelor's in Urban Studies. He also has taken course work for Master's in Urban Affairs at the University of Wisconsin, Milwaukee. Upon graduation, Mr. Whiting began his career as City Planner/Zoning Administration for the City of Huron, South Dakota. He then moved to be City Administrator/Clerk/Treasurer in Janesville, Minnesota. His next position was City Administrator for the City of Maine. Currently Mr. Whiting is the City Administrator for the City of Benson. ( /LA mac. ,tt,&"{q-0i` Lynijette Morgan, Adi nistrative Aide • • RECOMMENDATION: Motion to Hire Chuck Whiting to fill the vacant City Administrator Position per the terms and agreement provided by The Brimeyer Executive Group, Inc. herein attached CrrY OF REQUEST FOR COUNCIL CONSIDERATION Agenda Section: 2. %NOS STAFF REPORT Report Number: 96-1 622WS S�A/ Report Date: 2/29/96 AGENDA SESSION DATE MARCH 3. 1996 •gpJj-Partnc�sb`Qs Ii DISPOSITION Item Description: Tautges, Redpath& Company, Ltd. Presentation on Utility Rate Analysis Administrator's Review/Recommendation: . - No comments to supplement this report /47*(-- - 7- Comments attached. Explanation/Summary (attach supplement sheets as necessary.) STTMMARY; The Council packet contains the Utility Rate Analysis as prepared by our auditing firm of Tautges, Redpath and Company, Ltd. Representatives from the firm will be attending the work session to review the analysis, discuss the findings and answer any questions you may have. III r , L Mary /atarek, Interim Finance Coordinator III RECOMMENDATION; .:7 OP REQUEST FOR COUNCIL CONSIDERATION Agenda Section 3. STAFF REPORT Report Number: 96-1623WS i(jai t-`>, s Report Date: 2/29/96 0 �. WORKSESSION MEETING DATE ii[C,Ve March 4. 1996 .'mess•Pastwats''s . Item Description: Consideration of Proposals for Wireless Communication Antennas (Water Tower Mounted) Administrator's Review/Recommendation: -No Comments to supplement this report XJ -Comments attached. Explanation/Summary(attach supplement sheets as necessary) Summary: Staff has received two proposals from wireless communication companies, requesting a lease agreement to mount their antennas on the City's water tower. Paul Harrington has been in contact with a consultant representing Sprint, while at the same time I was speaking with another consultant representing American Portable Telecom (APT). Both companies purchased new digital licenses last year. Preliminary lease agreements of both companies are similar. APT is requesting an initial five (5) year lease, with three (3) five year options to renew, for a total lease term of twenty (20) years. APT would pay the City an initial rate of$500.00 per month ($6,000.00 per annum) paid in advance for the first year. Escalation's in the rental amount will be based on an annual CPI-U. The annual adjustment will not exceed three percent(3%) per annum. Sprint's agreement is initially for five (5) years also but can be extended for an additional four (4)years, totally twenty-five (25) years. Annual payments from Sprint would be $5,500.00, with an adjustment every five(5) years up to fifteen percent (15%). Each company is responsible for providing all mechanical improvements at the site, including electrical service and phone service. Insurance waivers would also be provided by both companies. Negotiations of preliminary proposals may be continued. If Council is comfortable with the concept of utilizing the water tower for this purpose, staff will continue to proceed with final negotiations. Staff would anticipate negotiating like contracts for both companies if possible. Staff requests Council not disclose the details of the individual contracts at the meeting. Although this report is a public document, disclosure of the agreements might hinder further negotiations. Both consultants will be in attendance at the meeting to provide more information regarding their services and proposals. •Staff is,seeking Council's direction in pursuing these proposals. ..% Michael Ulrich, Director of Public Works :;`,r?' : REQUEST FOR COUNCIL CONSIDERATION Agenda Section 4. STAFF REPORT Report Number: 96-1624WS I 111 Olj If ii Report Date: 2/29/96 • WORKSESSION MEETING DATE ii Z''h March 4. 1996 f''mess.Partn¢t''1' Item Description: Update of Old Highway 8 Reconstruction Administrator's Review/Recommendation: -No Comments to supplement this report X -Comments attached. Explanation/Summary(attach supplement sheets as necessary) Summary: Ramsey County representatives and staff conducted a neighborhood informational meeting on February 22, 1996 to discuss and share several design options regarding the reconstruction of Old Highway 8. Three options were presented. The first design option included a four-lane highway the entire length of the project. An eight (8) foot a bituminous path was also included, to be constructed on the west side of the highway throughout the entire length of the project. Acquisition of additional Right-of-Way is necessary at the Motel property and at 4949 Old Highway 8. The acquisition of property from the Motel could be relatively easily acquired. The property 0 owned by Ms. Matelsky (4949 Old Hwy 8) would be highly impacted by this construction design. The path would literally extend through the corner of the house. The second design option provided for a path the entire length of the project, and included a two-lane traffic design. This option lessened the additional Right-of-Way requirement of both properties, but still significantly impacted Ms. Matelsky. The distance between the path and the house was approximately eleven(11)feet. The last option presented which was highly endorsed by both the county design and traffic engineers, is a two- lane road with a right bypass lane constructed at the entrance of the manufactured home park. This plan also included path construction. Additional Right-of-Way is still necessary at the Motel and the Matelsky residence. The distance between the path and corner of the house in this design was estimated at four(4) feet. Additional Right-of-Way for this project as all County projects is the responsibility of the City. Even if the path were not included in the construction, the City would be responsible for some ROW from the Matesky property. It seems at this point it consideration should be given to purchase the Matesky property and proceed with plans for constructing a newly improved roadway that will adequately serve the needs for future motoring public, pedestrians, and cyclists. Ramsey County representatives will be in attendance at the work session to further explain this project and the options.. If Council has any questions or concerns that staff can forward to Ramsey County prior to the meeting, please 0 feel fee.ta call me. /ice X, Michael Ulrich, Director of Public Works k �.�rt:'Cr REQUEST FOR COUNCIL CONSIDERATION Agenda Section 5. STAFF REPORT Report Number: 96-1625WS 111 111 !(`l'11ss`�a..^'`' Report Date: 2/29/96 1..0 ft, WORKSESSION MEETING DATE ''"�7' March 4. 1996 °Riess•Partners'14' Item Description: Consideration of Engineering Proposal for Abandonment of Surface Water Pond (TH 10 and Long Lake Road) Administrator's Review/Recommendation: -No Comments to supplement this report X f -Comments attached. Explanation/Summary(attach supplement sheets as necessary) Summary: Staff received a request from Parks and Recreation Director Saarion to present the proposals for engineering services related to the abandonment of the surface water pond located at the intersection of Trunk Highway 10 and Long Lake Road. Resolution No. 4844 adopted by the City Council on November 13, 1996 authorized staff to procure engineering proposals. The removal of the pond at this location is necessary for the proposed bridge location. Proposals for the services rendered are as follows: III BRW Inc. $7,620.00 SEH $6,900.00 The resolution adopted, did not specify a source of funding for these services or construction engineering, and construction expenses. The Surface Water Management Fund, Account No. 420-4122-303, does have funds available ($10,000) for engineering services in the 1996 budget. Staff seeks Council direction in this matter. ,,,, 7, / ,,, &:.:-/f,:, -Z61-- -------7 Michael Ulrich, Director of Public Works RESOLUTION NO. 4844 • CITY OF MOUNDS VIEW COUNTY OF RAMSEY STATE OF MINNESOTA RESOLUTION DIRECTING STAFF TO COORDINATE IN CONJUNCTION WITH THE PEDESTRIAN BRIDGE PROJECT THE REMOVAL OF THE STORM WATER DETENTION POND AT THE NORTHWEST CORNER OF HIGHWAY 10 AND LONG LAKE ROAD WHEREAS, the engineering and design firms who presented proposals to the City of Mounds View suggested that the City would benefit from removal of the storm water detention pond at the Northwest corner of Long Lake Road and Highway 10; and WHEREAS, removal of the pond, in conjunction with the bridge project would improve the accessibility of the bridge and the general appearance of the area; and WHEREAS, City staff considers the project feasible but needs to retain engineering services to coordinate this project with the pedestrian bridge construction; and WHEREAS, BRW, Inc. has the staff available to coordinate the project with the pedestrian bridge project. NOW, THEREFORE, BE IT RESOLVED THAT the City Council directs staff to further investigate with BRW, Inc., the coordination of the pedestrian bridge project with the removal of the storm water detention pond at the Northwest corner of Long Lake Road and Highway 10 and report back to the City Council with proposals and cost estimates. Adopted this 13th day of November, 1995. ATTEST: Ma • (SEAL) % City'Administrator i .,,...,,N_ . „.,.0_,:„.„0,, .„1...._ . 1.,..iousi:)5 \II ‘jj . ., N i , • . .:,„ . . N 4f".411 . .,... . . ., . . IN cs ., •. . .., , , ' NN\ 11 . 0 . . - -_ ,. . ., . . . „ .. . . ..... ,.... •, ' \. SQ U,e',R E. II c4 . z 1•. -. ... . „ 7 ". . ..„.. . .,.. , ... „. - , . . , , ,, .„ ... ‘„, , . „ ,., .. _. , , . ,„„ ,,..,., ,.. ., ,. ., .„ .., ,, • .,,..„,,, ,,,„ ,,,. . , . , 4.4 n „... „.....0.. , ..„... .,, .. .„ . BRONSON , . .. ... . -• - , N aa c. ..‘ . -..,, 7/ /4040 — ›. 1::! c rrr -HALL I w .Q.'''.. '' '' . 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Z \-, V \tql LAW 00 P i i 1 ,77 . . \\ • • , 1.111"°' IV , , 1 \\I" \. \ a , . 1' , \ , , „ \ 1 i q 1 N t I i \ i ‘ 1 tl—rr—rt-------t- \ ''•••-....._„...._....._._._.______ --, T)•---s, ,7-7-1 7.-1--,--1 , ,.--, .,--I ,, 7.7-1,- --......., ..„. --, .7 / dTri City of i.-.-./2:-ogin..: _ID ,4-,4:, .1 1 11 ---.1..i j J i;f, LI, i ; i f!a i C ..-.........1.....:-.60 N......,.L./ ..-:..../'',..., ..ir,•.i.A..--,.....:-..., '...,,'.2.. . 0 ....I f7;..Trre*Ii•73/ 1S4:74*;:::, g.:',1* P” ,.. .. rEBRIJARY 6, 1996 'pa)i Mel): '2,/11.1 9 Cs ,Nords) CM OF REQUEST FOR COUNCIL CONSIDERATION Agenda Section: 6. IlliNDS STAFF REPORT Report Number: 9 6-1 6 9 6 wS 0 �� AGENDA SESSION DATE March 4 1996; Report Date: 2-29-96 • refs••Partneis�`ps DISPOSITION Item Description: Discussion of Appraisal Report and Legal Opinion for Bel-Rae Ballroom Administrator's Review/Recommendation: - No comments to supplement this report - Comments attached. Explanation/Summary (attach supplement sheets as necessary.) SUMMARY; Per EDA's direction, staff commissioned an appraisal and legal opinion for the potential purchase of the Bel-Rae Ballroom for your discussion. Attached is the summary of appraisal, provided by McKensie Metro Appraisers, for the Bel-Rae Ballroom land and building and legal opinion regarding the use of TIF for the purchase and renovation of the Bel-Rae prepared by the City's Bond Attorney Jim O'Meara of Briggs and Morgan. • I will be available to discuss these items at the work session. Octs1-km getit , Cathy Bennett, Economic Development Coordinator 4110 RE OMMENDATION; • C.} .ESTI 0 CONCILI TION TEMh D CONC�.USION€ F INAL ' : ) ::; ::,..:`::; In summary, the value indications for the three approaches to value utilized in this appraisal are as follows: COST APPROACH: $820,000 SALES COMPARISON APPROACH: $810,000 INCOME APPROACH: $790,000 Cnst_Approach In the appraisal process, the replacement cost new typically tends to set the upper limit of value for a property, as an informed buyer will pay no more for an existing property than it would cost for them to construct a new building of equal quality and utility. The cost data utilized in this analysis is based on data from both a nationally recognized cost service which has been adjusted to current time and location, as well as local builders and independently secured data. The land value and estimated cost new were considered to be reliable. However, the subject property is 20 (effective) years old and suffers from significant amounts of accrued depreciation. Although appropriate measures were used to estimate the amounts of accrued depreciation, the primary • weakness of the Cost Approach is in the accurate reflection of total accrued depreciation of the property value, which by its nature is difficult to measure. An additional weakness of the Cost Approach is that it gives only an indirect consideration of the income-producing capabilities of a property such as the subject. Real estate investors today give little consideration to the cost method of estimating value for investment type properties such as the subject. Rather, the Cost Approach is used as a check on the value indicated by the sales and income capitalization approaches. Therefore, the Cost Approach is given the least weight of the total estimated market value. Sales o n ra ison Approach The Sales Comparison Approach is based on the analysis of sales of generally comparable single tenant commercial buildings in the Twin Cities area. These sales were thoroughly analyzed and adjustments were made for those dissimilarities between the comparable sales and the subject property. The primary strength of this approach is that it is the most direct approach to value, as well as the most easily understood. All of the sales were compared on a per square foot basis of gross building area, which is common for office/warehouse, industrial and commercial buildings. The 0 -95- sales included indicate that no adjustments for condition of sale or characteristics of income were needed. 111 Adjustments for size, age, condition/quality, and land to building ratio reduces the strength of this approach. • The comparables were considered similar for location. • Four of the comparable sales were adjusted of size. • Comparables #2 and #4 were adjusted for their age. • Comparable #4 was considered good to the subject in its condition and quality; Comparables #1 and #5 was considered average in their condition/quality. • Four of the sales were adjusted for the amount of land available to the building. • Four of the sales were adjusted to reflect the amount of interior fmish in the property. Overall, the number of sales, comparable to the subject property, which occurred within the Twin Cities over the past several years, was considered average. However, the supporting details regarding each sale was limited. Income Appro. h The Income Approach, in which anticipated benefits of ownership are converted to an indication of value, reflects the thinking of the typical investor in an income oriented property. Unfortunately, no historic operating information on the subject property was provided. The estimation of income and expenses was forecasted based on rental information and operating expenses obtained from the market. In this report, we have applied the direct capitalization method for estimating the value of the subject property. This approach is limited because of the lack of historic information, the recognition of replacement reserves, the lending requirements influencing capitalization rates, and the sensitivity resulting from these assumptions. The Income Approach is given less weight of the overall estimated market value than the Sales Comparison Approach. S -96- Conclusion 11111 In correlating the three approaches into a final estimate of value, we have considered the purpose of the appraisal, the age and type of property and the adequacy of data processed in each of the three approaches. These considerations influenced the weight to be given each approach. In our opinion, most weight should be given to the Sales Comparison Approach, with secondary consideration given to the Income and Cost Approaches. As a result of this appraisal, it is our opinion that the estimated market value of the fee simple interest as of February 20, 1996 is as follows: THE INDICATED VALUE AFTER CONSIDERING ALL APPROACHES IS: EIGHT HUNDRED THOUSAND DOLLARS ($800,000) -9 7- , LAW OFFICES BRIGGS AND MORGAN IIIPROFESSIONAL ASSOCIATION 2200 FIRST NATIONAL BANE BUILDING SAINT PAUL,MINNESOTA 55101 TELEPHONE (612) 223-6600 FACSIMILE (612) 223-6450 MINNEAPOLIS OFFICE `"°° IDS CENTER WRITER'S DIRECT DIAL NUMBER February9, 1996 MINNEAPOLIS,2.1IIPNESOTa 35402 TELEPHONE 1912)324-6400 FACSIMILE(612)334-6930 (612) 223-6420 Catherine Bennett Economic Development Coordinator City of Mounds View Mounds View City Hall 2401 Highway 10 Mounds View, Minnesota 55112-1499 Re: Bel Rae Ballroom/Conversion to Community Center 0 Dear Cathy: You have asked for an opinion on whether the Mounds View Economic Development Authority could use available tax increment revenues from its "Mounds View Economic Development Project" to acquire the Bel Rae Ballroom and convert it into a community center. I understand that the anticipated uses would be youth and senior activities, possibly continuing education activities (perhaps including participation by local school districts), occasional rental availability to the public for various events, and general park and recreational uses. I also understand that this use or one similar to it is currently a part of the pending Highway 10 Redevelopment Plan. Assuming that the EDA Board is of the belief that this acquisition and use would be consistent with and in furtherance of the stated development and redevelopment goals, I believe that available tax increments could legally be used for those purposes, subject to the qualification mentioned below. I note also in this connection that one of the goals stated in the "Project Plan" adopted as of May 9, 1994, by both the Council and the EDA Board was the development of community and other public service centers. illI have only two caveats. The first, I suppose, is somewhat political in nature in that there seems to be at least some concern among State Legislators over what is sometimes perceived to be an indiscriminate use of tax increment revenues for special-purpose (and sometimes elaborate) recreational or similar facilities, particularly those that are seen to be more discretionary in nature or suitable for financing by more traditional means. I'm not BRIGGS airD MORGAN Catherine Bennett February 9, 1996 Page 2 sure, however, whether a project such as this, which appears to have a broad base of community uses and which also involves a re-use and redevelopment of existing facilities rather than entirely new construction, fits squarely within these concerns. I also do not think that the express concerns pose a strict impediment under the law as it is presently written. The one legal caveat comes from Minnesota Statutes, Section 469.176, Subdivision 4g, a provision of the tax increment law which prohibits the use of tax increments "for the acquisition, construction, renovation, operation, or maintenance of a building to be used primarily and regularly for conducting the business of a municipality, county, school district, or any other local unit of government or the state or federal government." That limitation, however, goes on to state that it does not prohibit the use of tax increments "for the construction or renovation of a parking structure, a commons area used as a public park, or a facility used for social, recreational, or conference purposes and not primarily for conducting the business of the municipality." Most people have interpreted the phrase, "the business of a municipality," quite rightly I think, as being centered around the core activities of the City. For example, it would notbe permissible to use tax increments to finance the construction or renovation of City Hall. Therefore, to the extent that a portion of the community center would be used for such core governmental activities, it might be necessary to limit the use of tax increment financing only to the allocable portion of the overall project which is not so proscribed. In summary, should the EDA Board deem it an appropriate development activity within the above mentioned development district and tax increment financing district structures, I believe that tax increments could legally be used to finance these acquisition and reconversion efforts, subject to the limit discussed above. Please let me know if I can be of any further assistance to you, the City, or the EDA in this regard. You? very truly, Jimes P. O'Meara • JO/eh S LAW OFFICES BRIGGS AND MORGAN IIIPROFESSIONAL ASSOCIATION 2200 FIRST NATIONAL BANE BUILDING SAINT PAUL,MINNESOTA 55101 TELEPHONE (6121 223-8600 FACSIMILE (6121 223-6460 MINNEAPOLIS OFFICE February 9, 1996 2400 IDS CENTEB wRITER,S DIRECT DIAL NUMBER JIINNEAPOLIS.:iL�7NESOTA gg402 TELEPHONE 1612)334-8400 FACSIMILE(612)334-8660 (612) 223-6420 Catherine Bennett Economic Development Coordinator City of Mounds View Mounds View City Hall 2401 Highway 10 Mounds View, Minnesota 55112-1499 Re: Bei Rae Ballroom/Conversion to Community Center 1 . Dear Cathy: - You have asked for an opinion on whether the Mounds View Economic Development Authority could use available tax increment revenues from its "Mounds View Economic Development Project" to acquire the Bel Rae Ballroom and convert it into a community center. I understand that the anticipated uses would be youth and senior activities, possibly continuing education activities (perhaps including participation by local school districts), occasional rental availability to the public for various events, and general park and recreational uses. I also understand that this use or one similar to it is currently a part of the pending Highway 10 Redevelopment Plan. Assuming that the EDA Board is of the belief that this acquisition and use would be consistent with and in furtherance of the stated development and redevelopment goals, I believe that available tax increments could legally be used for those purposes, subject to the qualification mentioned below. I note also in this connection that one of the goals stated in the "Project Plan" adopted as of May 9, 1994, by both the Council and the EDA Board was the development of community and other public service centers. • I have only two caveats. The first, I suppose, is somewhat political in nature in that there seems to be at least some concern among State Legislators over what is sometimes perceived to be an indiscriminate use of tax increment revenues for special-purpose (and sometimes elaborate) recreational or similar facilities, particularly those that are seen to be more discretionary in nature or suitable for financing by more traditional means. I'm not BRIGGS .avn MORGAN Catherine Bennett February 9, 1996 III Page 2 sure, however, whether a project such as this, which appears to have a broad base of community uses and which also involves a re-use and redevelopment of existing facilities rather than entirely new construction, fits squarely within these concerns. I also do not think that the express concerns pose a strict impediment under the law as it is presently written. The one legal caveat comes from Minnesota Statutes, Section 469.176, Subdivision 4g, a provision of the tax increment law which prohibits the use of tax increments "for the acquisition, construction, renovation, operation, or maintenance of a building to be used primarily and regularly for conducting the business of a municipality, county, school district, or any other local unit of government or the state or federal government." That limitation, however, goes on to state that it does not prohibit the use of tax increments "for the construction or renovation of a parking structure, a commons area used as a public park, or a facility used for social, recreational, or conference purposes and not primarily for conducting the business of the municipality." Most people have interpreted the phrase, "the business of a municipality," quite rightly I think, as being centered around the core activities of the City. For example, it would not be permissible to use tax increments to finance the construction or renovation of City Hall. Therefore, to the extent that a portion of the community center would be used for such core governmental activities, it might be necessary to limit the use of tax increment financing only to the allocable portion of the overall project which is not so proscribed. In summary, should the EDA Board deem it an appropriate development activity • within the above mentioned development district and tax increment financing district structures, I believe that tax increments could legally be used to finance these acquisition and reconversion efforts, subject to the limit discussed above. Please let me know if I can be of any further assistance to you, the City, or the EDA in this regard. Youvery truly, ( //au:.14,______ JiZes P. O'Meara JO/eh 110 LAW OFFICES BRIGGS AND MORGAN PROFESSIONAL ASSOCIATION 2200 FIRST NATIONAL BANE BUILDING SAINT PAUL,MINNESOTA 55101 TELEPHONE (612) 223-6600 FACSIMILE (612) 223-6460 MINNEAPOLIS OFFICE Februa 1996 2400 SDS CENTER WRITER'S DIRECT DIAL NUMBER ry 9, MDVNEAPOLZS,MINNESOTA 36402 TELEPHONE 1012)334-8400 FACSIMILE(012)334-8660 (612) 223-6420 Catherine Bennett Economic Development Coordinator City of Mounds View Mounds View City Hall 2401 Highway 10 Mounds View, Minnesota 55112-1499 Re: Bel Rae Ballroom/Conversion to Community Center • Dear Cathy: You have asked for an opinion on whether the Mounds View Economic Development Authority could use available tax increment revenues from its "Mounds View Economic Development Project" to acquire the Bel Rae Ballroom and convert it into a community center. I understand that the anticipated uses would be youth and senior activities, possibly continuing education activities (perhaps including participation by local school districts), occasional rental availability to the public for various events, and general park and recreational uses. I also understand that this use or one similar to it is currently a part of the pending Highway 10 Redevelopment Plan. Assuming that the EDA Board is of the belief that this acquisition and use would be consistent with and in furtherance of the stated development and redevelopment goals, I believe that available tax increments could legally be used for those purposes, subject to the qualification mentioned below. I note also in this connection that one of the goals stated in the "Project Plan" adopted as of May 9, 1994, by both the Council and the EDA Board was the development of community and other public service centers. • I have only two caveats. The first, I suppose, is somewhat political in nature in that there seems to be at least some concern among State Legislators over what is sometimes perceived to be an indiscriminate use of tax increment revenues for special-purpose (and sometimes elaborate) recreational or similar facilities, particularly those that are seen to be more discretionary in nature or suitable for financing by more traditional means. I'm not BRIGGS avn MORGAN Catherine Bennett February 9, 1996 • Page 2 sure, however, whether a project such as this, which appears to have a broad base of community uses and which also involves a re-use and redevelopment of existing facilities rather than entirely new construction, fits squarely within these concerns. I also do not think that the express concerns pose a strict impediment under the law as it is presently written. The one legal caveat comes from Minnesota Statutes, Section 469.176, Subdivision 4g, a provision of the tax increment law which prohibits the use of tax increments "for the acquisition, construction, renovation, operation, or maintenance of a building to be used primarily and regularly for conducting the business of a municipality, county, school district, or any other local unit of government or the state or federal government." That limitation, however, goes on to state that it does not prohibit the use of tax increments "for the construction or renovation of a parking structure, a commons area used as a public park, or a facility used for social, recreational, or conference purposes and not primarily for conducting the business of the municipality." Most people have interpreted the phrase, "the business of a municipality," quite rightly I think, as being centered around the core activities of the City. For example, it11111 would not be permissible to use tax increments to finance the construction or renovation of City Hall. Therefore, to the extent that a portion of the community center would be used for such core governmental activities, it might be necessary to limit the use of tax increment financing only to the allocable portion of the overall project which is not so proscribed. In summary, should the EDA Board deem it an appropriate development activity within the above mentioned development district and tax increment financing district structures, I believe that tax increments could legally be used to finance these acquisition and reconversion efforts, subject to the limit discussed above. Please let me know if I can be of any further assistance to you, the City, or the EDA in this regard. You very truly, 777, (--- /, 1;4.4.174------ 1 James P. O'Meara JO/eh 0 LAW OFFICES BRIGGS AND MORGAN 0PROFESSIONAL ASSOCIATION 2200 FIRST NATIONAL BANE BUILDING SAINT PAUL,MINNESOTA 38101 TELEPHONE (812) 223-8600 FACSIMILE 18121 223-8480 MINNEAPOLIS OFFICE February 9, 1996 JfLVNEA2400 ID CENTER A W ITEB'S DIRECT DIAL. NTNUMBERPOLIS,JiL`INESOTA E6402 TELEPHONE 10121 334.8400 FACSIMILE 18121 334-8850 (612) 223-6420 Catherine Bennett Economic Development Coordinator City of Mounds View Mounds View City Hall 2401 Highway 10 Mounds View, Minnesota 55112-1499 Re: Bel Rae Ballroom/Conversion to Community Center faDear Cathy: You have asked for an opinion on whether the Mounds View Economic Development Authority could use available tax increment revenues from its "Mounds View Economic Development Project" to acquire the Bel Rae Ballroom and convert it into a community center. I understand that the anticipated uses would be youth and senior activities, possibly continuing education activities (perhaps including participation by local school districts), occasional rental availability to the public for various events, and general park and recreational uses. I also understand that this use or one similar to it is currently a part of the pending Highway 10 Redevelopment Plan. Assuming that the EDA Board is of the belief that this acquisition and use would be consistent with and in furtherance of the stated development and redevelopment goals, I believe that available tax increments could legally be used for those purposes, subject to the qualification mentioned below. I note also in this connection that one of the goals stated in the "Project Plan" adopted as of May 9, 1994, by both the Council and the EDA Board was the development of community and other public service centers. IIII have only two caveats. The first, I suppose, is somewhat political in nature in that there seems to be at least some concern among State Legislators over what is sometimes perceived to be an indiscriminate use of tax increment revenues for special-purpose (and sometimes elaborate) recreational or similar facilities. particularly those that are seen to be more discretionary in nature or suitable for financing by more traditional means. I'm not BRIGGS avD MOB.GAN• Catherine Bennett 11111 February 9, 1996 Page 2 sure, however, whether a project such as this, which appears to have a broad base of community uses and which also involves a re-use and redevelopment of existing facilities rather than entirely new construction, fits squarely within these concerns. I also do not think that the express concerns pose a strict impediment under the law as it is presently written. The one legal caveat comes from Minnesota Statutes, Section 469.176, Subdivision 4g, a provision of the tax increment law which prohibits the use of tax increments "for the acquisition, construction, renovation, operation, or maintenance of a building to be used primarily and regularly for conducting the business of a municipality, county, school district, or any other local unit of government or the state or federal government." That limitation, however, goes on to state that it does not prohibit the use of tax increments "for the construction or renovation of a parking structure, a commons area used as a public park, or a facility used for social, recreational, or conference purposes and not primarily for conducting the business of the municipality." Most people have interpreted the phrase, "the business of a municipality," quite rightly I think, as being centered around the core activities of the City. For example, it would not be permissible to use tax increments to finance the construction or renovation of City Hall. Therefore, to the extent that a portion of the community center would be used for such core governmental activities, it might be necessary to limit the use of tax increment financing only to the allocable portion of the overall project which is not so proscribed. In summary, should the EDA Board deem it an appropriate development activity within the above mentioned development district and tax increment financing district structures, I believe that tax increments could legally be used to finance these acquisition and reconversion efforts, subject to the limit discussed above. Please let me know if I can be of any further assistance to you, the City, or the EDA in this regard. Yours very truly, Li/rib f:;)4__...._____ iJ / es P. O'Meara • JO/eh 0 LAW OFFICES BRIGGS AND MORGAN PROFESSIONAL ASSOCIATION 2200 FIRST NATIONAL BAN'S BUILDING SAINT PAUL,MINNESOTA 55101 TELEPHONE (612) 223-6600 FACSIMILE (612) 223-6450 MINNEAPOLIS OFFICE February 9, 1996 2400 IDS CENTER MINNEAPOLIS,WRITEH'S DIHECT DIAL NUMBER POLIS,JIINNESOTA 354011 TELEPHONE 16121 334-8400 FACSIMILE 1612)334-8660 (612) 223-6420 Catherine Bennett Economic Development Coordinator City of Mounds View Mounds View City Hall 2401 Highway 10 Mounds View, Minnesota 55112-1499 Re: Be! Rae Ballroom/Conversion to Community Center Dear Cathy: You have asked for an opinion on whether the Mounds View Economic Development Authority could use available tax increment revenues from its "Mounds View Economic Development Project" to acquire the Bel Rae Ballroom and convert it into a community center. I understand that the anticipated uses would be youth and senior activities, possibly continuing education activities (perhaps including participation by local school districts), occasional rental availability to the public for various events, and general park and recreational uses. I also understand that this use or one similar to it is currently a part of the pending Highway 10 Redevelopment Plan. Assuming that the EDA Board is of the belief that this acquisition and use would be consistent with and in furtherance of the stated development and redevelopment goals, I believe that available tax increments could legally be used for those purposes, subject to the qualification mentioned below. I note also in this connection that one of the goals stated in the "Project Plan" adopted as of May 9, 1994, by both the Council and the EDA Board was the development of community and other public service centers. . I have only two caveats. The first, I suppose, is somewhat political in nature in that there seems to be at least some concern among State Legislators over what is sometimes perceived to be an indiscriminate use of tax increment revenues for special-purpose (and sometimes elaborate)'zecreational or similar facilities, particularly those that are seen to be more discretionary in nature or suitable for financing by more traditional means. I'm not BRIGGS A.vD MORGAN Catherine Bennett February 9, 1996 • Page 2 sure, however, whether a project such as this, which appears to have a broad base of community uses and which also involves a re-use and redevelopment of existing facilities rather than entirely new construction, fits squarely within these concerns. I also do not think that the express concerns pose a strict impediment under the law as it is presently written. The one legal caveat comes from Minnesota Statutes, Section 469.176, Subdivision 4g, a provision of the tax increment law which prohibits the use of tax increments "for the acquisition, construction, renovation, operation, or maintenance of a building to be used primarily and regularly for conducting the business of a municipality, county, school district, or any other local unit of government or the state or federal government." That limitation, however, goes on to state that it does not prohibit the use of tax increments "for the construction or renovation of a parking structure, a commons area used as a public park, or a facility used for social, recreational, or conference purposes and not primarily for conducting the business of the municipality." Most people have interpreted the phrase, "the business of a municipality," quite rightly I think, as being centered around the core activities of the City. For example, it would not be permissible to use tax increments to finance the construction or renovation • City Hall. Therefore, to the extent that a portion of the community center would be used for such core governmental activities, it might be necessary to limit the use of tax increment financing only to the allocable portion of the overall project which is not so proscribed. In summary, should the EDA Board deem it an appropriate development activity within the above mentioned development district and tax increment financing district structures, I believe that tax increments could legally be used to finance these acquisition and reconversion efforts, subject to the limit discussed above. Please let me know if I can be of any further assistance to you, the City, or the EDA in this regard. You very truly, ( e YL....________ IJ / 4U mes P. O'Meara JO/eh • III LAW OFFICES BRIGGS AND MORGAN • PROFESSIONAL ASSOCIATION 2200 FIRST NATIONAL BANK BUILDING SAINT PAUL,MINNESOTA 55101 TELEPHONE (612) 223-6800 FACSIMILE (612) 223-6450 MINNEAPOLIS OFFICE 2400 IDS CENTER WRITER'S DIRECT DIAL NUMBER February9, 1996 MINNEAPOLIS,MINNESOTA 66402 TELEPHONE 10121 334-8400 FACSIMILE(812)334-8860 (612) 223-6420 Catherine Bennett Economic Development Coordinator City of Mounds View Mounds View City Hall 2401 Highway 10 Mounds View, Minnesota 55112-1499 Re: Bel Rae Ballroom/Conversion to Community Center 41, Dear Cathy: You have asked for an opinion on whether the Mounds View Economic Development Authority could use available tax increment revenues from its "Mounds View Economic Development Project" to acquire the Bel Rae Ballroom and convert it into a community center. I understand that the anticipated uses would be youth and senior activities, possibly continuing education activities (perhaps including participation by local school districts), occasional rental availability to the public for various events, and general park and recreational uses. I also understand that this use or one similar to it is currently a part of the pending Highway 10 Redevelopment Plan. Assuming that the EDA Board is of the belief that this acquisition and use would be consistent with and in furtherance of the stated development and redevelopment goals, I believe that available tax increments could legally be used for those purposes, subject to the qualification mentioned below. I note also in this connection that one of the goals stated in the "Project Plan" adopted as of May 9, 1994, by both the Council and the EDA Board was the development of community and other public service centers. • I have only two caveats. The first, I suppose, is somewhat political in nature in that there seems to be at least some concern among State Legislators over what is sometimes perceived to be an indiscriminate use of tax increment revenues for special-purpose (and sometimes elaborate) recreational or similar facilities, particularly those that are seen to be more discretionary in nature or suitable for financing by more traditional means. I'm not BRIGGS a+rD MORGAN Catherine Bennett February 9, 1996 11111 Page 2 sure, however, whether a project such as this, which appears to have a broad base of community uses and which also involves a re-use and redevelopment of existing facilities rather than entirely new construction, fits squarely within these concerns. I also do not think that the express concerns pose a strict impediment under the law as it is presently written. The one legal caveat comes from Minnesota Statutes, Section 469.176, Subdivision 4g, a provision of the tax increment law which prohibits the use of tax increments "for the acquisition, construction, renovation, operation, or maintenance of a building to be used primarily and regularly for conducting the business of a municipality, county, school district, or any other local unit of government or the state or federal government." That limitation, however, goes on to state that it does not prohibit the use of tax increments "for the construction or renovation of a parking structure, a commons area used as a public park, or a facility used for social, recreational, or conference purposes and not primarily for conducting the business of the municipality." Most people have interpreted the phrase, "the business of a municipality," quite rightly I think, as being centered around the core activities of the City. For example, it would not be permissible to use tax increments to finance the construction or renovation of • City Hall. Therefore, to the extent that a portion of the community center would be used for such core governmental activities, it might be necessary to limit the use of tax increment financing only to the allocable portion of the overall project which is not so proscribed. In summary, should the EDA Board deem it an appropriate development activity within the above mentioned development district and tax increment financing district structures, I believe that tax increments could legally be used to finance these acquisition and reconversion efforts, subject to the limit discussed above. Please let me know if I can be of any further assistance to you, the City, or the EDA in this regard. You very truly, ( /77, ----71;4AA----- Janes P. O'Meara JO/eh S LAW OFFICES BRIGGS AND MORGAN 0PROFESSIONAL ASSOCIATION 2200 FIRST NATIONAL BANE BITILDING SAINT PAUL,MINNESOTA 56101 • TELEPHONE (612) 223-8600 FACSIMILE (812) 223-6450 MINNEAPOLIS OFFICE February 9, 1996 2400 IDS CENTS& A*RITEB'S DIBECT DLAI. NUMBER MINNEAPOLIS,MINNESOTA 85402 TELEPHONE 1(312)334-8400 FACSIMILE(0121 334-8060 (612) 223-6420 Catherine Bennett Economic Development Coordinator City of Mounds View Mounds View City Hall 2401 Highway 10 Mounds View, Minnesota 55112-1499 Re: Bei Rae Ballroom/Conversion to Community Center • Dear Cathy: You have asked for an opinion on whether the Mounds View Economic Development Authority could use available tax increment revenues from its "Mounds View Economic Development Project" to acquire the Bel Rae Ballroom and convert it into a community center. I understand that the anticipated uses would be youth and senior activities, possibly continuing education activities (perhaps including participation by local school districts), occasional rental availability to the public for various events, and general park and recreational uses. I also understand that this use or one similar to it is currently a part of the pending Highway 10 Redevelopment Plan. Assuming that the EDA Board is of the belief that this acquisition and use would be consistent with and in furtherance of the stated development and redevelopment goals, I believe that available tax increments could legally be used for those purposes, subject to the qualification mentioned below. I note also in this connection that one of the goals stated in the "Project Plan" adopted as of May 9. 1994, by both the Council and the EDA Board was the development of community and other public service centers. • I have only two caveats. The first. I suppose, is somewhat political in nature in that there seems to be at least some concern among State Legislators over what is sometimes perceived to be an indiscriminate use of tax increment revenues for special-purpose (and sometimes elaborate) recreational or similar facilities, particularly those that are seen to be more discretionary in nature or suitable for financing by more traditional means. I'm not BRIGGS &N MORGAN Catherine Bennett February 9, 1996 III Page 2 sure, however, whether a project such as this, which appears to have a broad base of community uses and which also involves a re-use and redevelopment of existing facilities rather than entirely new construction, fits squarely within these concerns. I also do not think that the express concerns pose a strict impediment under the law as it is presently written. The one legal caveat comes from Minnesota Statutes, Section 469.176, Subdivision 4g, a provision of the tax increment law which prohibits the use of tax increments "for the acquisition, construction, renovation, operation, or maintenance of a building to be used primarily and regularly for conducting the business of a municipality, county, school district, or any other local unit of government or the state or federal government." That limitation, however, goes on to state that it does not prohibit the use of tax increments "for the construction or renovation of a parking structure, a commons area used as a public park, or a facility used for social, recreational, or conference purposes and not primarily for conducting the business of the municipality." Most people have interpreted the phrase, "the business of a municipality," quite rightly I think, as being centered around the core activities of the City. For example, it III would not be permissible to use tax increments to finance the construction or renovation of City Hall. Therefore, to the extent that a portion of the community center would be used for such core governmental activities, it might be necessary to limit the use of tax increment financing only to the allocable portion of the overall project which is not so proscribed. In summary, should the EDA Board deem it an appropriate development activity within the above mentioned development district and tax increment financing district structures, I believe that tax increments could legally be used to finance these acquisition and reconversion efforts, subject to the limit discussed above. Please let me know if I can be of any further assistance to you, the City, or the EDA in this regard. You very truly, ( /77, 74,0-A.j)''-(L____ J es P. O'Meara JO/eh 4110 LAW OFFICES BRIGGS AND MORGAN IIIPROFESSIONAL ASSOCIATION 2200 FIRST NATIONAL BANS BUILDING SAINT PAUL,MINNESOTA 55101 TELEPHONE (612) 223-6600 FACSIMILE (612) 223-6450 MINNEAPOLIS OFFICE February 9, 1996 MINNEAPOLIS, IDS CENTER WRITEB'S DIRECT DIAL NUMBER POLIS,MINNESOTA 86402 TELEPHONE 13121 334-8400 FACSIMILE 1812)334-8850 (612) 223-6420 Catherine Bennett Economic Development Coordinator City of Mounds View Mounds View City Hall 2401 Highway 10 Mounds View, Minnesota 55112-1499 Re: Bel Rae Ballroom/Conversion to Community Center • Dear Cathy: You have asked for an opinion on whether the Mounds View Economic Development Authority could use available tax increment revenues from its "Mounds View' economic Development Project" to acquire the Bel Rae Ballroom and convert it into a community center. I understand that the anticipated uses would be youth and senior activities, possibly continuing education activities (perhaps including participation by local school districts), occasional rental availability to the public for various events, and general park and recreational uses. I also understand that this use or one similar to it is currently a part of the pending Highway 10 Redevelopment Plan. Assuming that the EDA Board is of the belief that this acquisition and use would be consistent with and in furtherance of the stated development and redevelopment goals, I believe that available tax increments could legally be used for those purposes, subject to the qualification mentioned below. I note also in this connection that one of the goals stated in the "Project Plan" adopted as of May 9, 1994, by both the Council and the EDA Board was the development of community and other public service centers. - IIII have only two caveats. The first, I suppose, is somewhat political in nature in that there seems to be at least some concern among State Legislators over what is sometimes perceived to be an indiscriminate use of tax increment revenues for special-purpose (and sometimes elaborate) recreational or similar facilities, particularly those that are seen to be' more discretionary in nature or suitable for financing by more traditional means. I'm not BRIGGS avn MORGAN Catherine Bennett IIIFebruary 9, 1996 Page 2 sure, however, whether a project such as this, which appears to have a broad base of community uses and which also involves a re-use and redevelopment of existing facilities rather than entirely new construction, fits squarely within these concerns. I also do not think that the express concerns pose a strict impediment under the law as it is presently written. The one legal caveat comes from Minnesota Statutes, Section 469.176, Subdivision 4g, a provision of the tax increment law which prohibits the use of tax increments "for the acquisition, construction, renovation, operation, or maintenance of a building to be used primarily and regularly for conducting the business of a municipality, county, school district, or any other local unit of government or the state or federal government." That limitation, however, goes on to state that it does not prohibit the use of tax increments "for the construction or renovation of a parking structure, a commons area used as a public park, or a facility used for social, recreational, or conference purposes and not primarily for conducting the business of the municipality." Most people have interpreted the phrase, "the business of a municipality," quite rightly I think, as being centered around the core activities of the City. For example, it • would not be permissible to use tax increments to finance the construction or renovation of City Hall. Therefore, to the extent that a portion of the community center would be used for such core governmental activities, it might be necessary to limit the use of tax increment financing only to the allocable portion of the overall project which is not so proscribed. In summary, should the EDA Board deem it an appropriate development activity within the above mentioned development district and tax increment financing district structures, I believe that tax increments could legally be used to finance these acquisition and reconversion efforts, subject to the limit discussed above. Please let me know if I can be of any further assistance to you, the City, or the EDA in this regard. You very truly, (.7"4:2--t Jim P. O'Meara JO/eh 410 LAW OFFICES BRIGGS AND MORGAN- III MORGAN• 2200 PROFESSIONAL ASSOCIATION FIRST NATIONAL BANE BUILDING SAINT PAUL,MINNESOTA 35101 TELEPHONE (612) 223-6600 FACSIMILE (612) 223-0450 MINNEAPOLIS OFFICE 2400 IDS CENTER WRITER'S DIRECT DIAL NUMBER February 9, 1996 MINNEAPOLIS,MINNESOTA 55402 TELEPHONE 18121 334-8400 FACSIMILE 1812)334-8850 (612) 223-6420 Catherine Bennett Economic Development Coordinator City of Mounds View Mounds View City Hall 2401 Highway 10 Mounds View, Minnesota .55112-1499 Re: Bel Rae Ballroom/Conversion to Community Center 0 Dear Cathy: You have asked for an opinion on whether the Mounds View Economic Development Authority could use available tax increment revenues from its "Mounds View Economic Development Project" to acquire the Bel Rae Ballroom and convert it into a community center. I understand that the anticipated uses would be youth and senior activities, possibly continuing education activities (perhaps including participation by local school districts), occasional rental availability to the public for various events, and general park and recreational uses. I also understand that this use or one similar to it is currently a part of the pending Highway 10 Redevelopment Plan. Assuming that the EDA Board is of the belief that this acquisition and use would be consistent with and in furtherance of the stated development and redevelopment goals, I believe that available tax increments could legally be used for those purposes, subject to the qualification mentioned below. I note also in this connection that one of the goals stated in the "Project Plan" adopted as of May 9, 1994, by both the Council and the EDA Board was the development of community and other public service centers. SIhave only two caveats. The first, I suppose, is somewhat political in nature in that there seems to be at least some concern among State Legislators over what is sometimes perceived to be an indiscriminate use of tax increment revenues for special-purpose (and sometimes elaborate) recreational or similar facilities, particularly those that are seen to be more discretionary in nature or suitable for financing by more traditional means. I'm not BRIGGS AND MORGAN Catherine Bennett February 9, 1996 III Page 2 sure, however, whether a project such as this, which appears to have a broad base of community uses and which also involves a re-use and redevelopment of existing facilities rather than entirely new construction, fits squarely within these concerns. I also do not think that the express concerns pose a strict impediment under the law as it is presently written. The one legal caveat comes from Minnesota Statutes, Section 469.176, Subdivision 4g, a provision of the tax increment law which prohibits the use of tax increments "for the acquisition, construction, renovation, operation, or maintenance of a building to be used primarily and regularly for conducting the business of a municipality, county, school district, or any other local unit of government or the state or federal government." That limitation, however, goes on to state that it does not prohibit the use of tax increments "for the construction or renovation of a parking structure, a commons area used as a public park, or a facility used for social, recreational, or conference purposes and not primarily for conducting the business of the municipality." Most people have interpreted the phrase, "the business of a municipality," quite rightly I think, as being centered around the core activities of the City. For example, it III would not be permissible to use tax increments to finance the construction or renovation of City Hall. Therefore, to the extent that a portion of the community center would be used for such core governmental activities, it might be necessary to limit the use of tax increment financing only to the allocable portion of the overall project which is not so proscribed. In summary, should the EDA Board deem it an appropriate development activity within the above mentioned development district and tax increment financing district structures, I believe that tax increments could legally be used to finance these acquisition and reconversion efforts, subject to the limit discussed above. Please let me know if I can be of any further assistance to you, the City, or the EDA in this regard. You `very truly, (74,,,Ajz,..______ iJes P. O'Meara JO/eh III CFN Ofd REQUEST FOR COUNCIL CONSIDERATION Agenda Section: ?. IVA STAFF REPORT Report Number:9 0_16 2 7WS pAGENDA SESSION DATE March 4. 1996 Report Date: 2_29-96 41.pts'ParcneRoQ POSITION Item Description: Discussion of Appraisal Report for Three Land Lots on the Corner of Highway 10 and Edgewoon Drive Administrator's Review/Recommendation: - No.comments to supplement this report gG� - Comments attached. Explanation/Summary (attach supplement sheets as necessary.) SUMMARY; Per the Council's direction, staff commissioned an appraisal for the three land lots on the corner of Highway 10 and Edgewood Drive. These properties are in a wetland and have been identified for use in Mounds View Surface Water Mangement Plan. A retention pond can be constructed as part of the Bronson Drive reconstruction project. Attached is the summary of appraisal, provided by McKensie Metro Appraisers, for these land lots as a whole. The owner's agent has offered to sell the large lot to the City for$295,00 with 0 the contingency that wetland restrictions be lifted on the two small lots on Edgewood Drive so that he may develop them with light commercial or residential. Currently, there is an estimated $230,000 in the Surface Water Management Account. The City may choose to use some of these funds for the purchase of the property. Mike Ulrich and I will be available for questions at the work session. /i 1 'Yl X17) 1`! ! / _ , . Cathy Bennett, Economic Development Coordinator 4111commsaimasl iAltfiti;4:10dairtiApPkoitOttIOUSOOLVta The land value estimate is documented by recent sales of comparable sites in the subject neighborhood and surrounding area. In arriving at the market value of the subject site, we have relied entirely upon the sales and offerings of vacant land. Sales and/or offerings are considered to best reflect the thinking of the typical buyer in the marketplace. This approach, which is referred to as the Sales Comparison Approach, is employed whenever dependable sales data is available for properties that are truly competitive with the subject property. We have investigated the terms and conditions of the comparable sale transactions to determine the attitude and aims of the purchaser. We have attempted to be objective in the analysis of the comparable sale transactions without inferring motivations. It should be realized that there is a wide spectrum of buyer and user motivations and purposes in the real estate field. A comparison has been made on the basis of the subject property having a highest and best use if vacant for commercial and/or PUD development, similar to that of most of the comparable properties. In establishing a basis for value, the major characteristics of a site that require analysis include: 1. Physical characteristics: size, shape, dimensions, topography, drainage, bearing capacity and permeability of the soil. 2. Zoning and other public controls: use restrictions, structural restrictions, setback requirements, height limitations, on-site parking requirements, safety requirements and fire code requirements. 3. Title limitations: liens, easements, special assessments and covenants. 4. Access (location): transit, highway, visual access, electricity, fire and police protection, availability, capacities, and costs. 5. Availability: price, financing terms. Precise and specific factual information can be obtained concerning most of the above factors. Some require further analysis. It is in terms of this analysis that standards of what is appropriate, and acceptable, must be developed. The following land sales are considered to provide the best indication of value for the subject property assumed to be vacant. In providing comparable land sales for our analysis, we have researched real estate transactions over the past several years for those which have occurred in, and around the subject neighborhood. We have focused our efforts on those transactions which have similar sized lots. A summary of the most comparable transactions are considered to provide the best indication of value for the subject property, assumed to be vacant, is presented on the following table. Individual data sheets for each sale are presented on the pages following the Land Sales Map. 411 -36- . LE IjAli $ iLES 1E+ $ART COMP ADDRESS SALE SALE SIZE ZONING PRICE/ DATE PRICE (SQ. FT.) SQ. FT. 1 XXX Lake Court Dr-MV 12/94 $155,000 I 121.247 R-4 THomes $1.28 2 NWC I-35W & 694-NB 6/90 $370.000 778,853 Industrial $.48 3 300 Silver Lake Road-NB 3/95 $75,800 38.640 Business $1.96 4 2123 Old Hwy 8-NB 7/95 $68,000 45,075 Business $1.51 5 401 1st Street SW-NB 12/93 $350,000 222.592 Business $1.57 6 12200 Old Hwy 8-NB 10/92 I $1.33 75,240 Business I $1.33 I Subject I NEC Edgewd&Hwy 10-MV I 2/96 I — I 407,957 I Business I — In addition, we have reviewed the Commercial Industrial Exchange for recent listings in and around the subject area, as well as considered other area properties, which were sold. The sold properties listed above were considered most similar to the subject property and have recently sold. • -37- 1 • LAN` ,.IJ MAP :j) `*+ / 0,•v.. __.,:, II -."4-,,,,.._._,F,1-..;: I.._ Ghn. wo[rxwlw Mr= OOA •P Ewr F lW�T-E==41..•.....Z u r --• I rim •--? (` xR•. um; : 'oe ~---.--': n --BLAINE a•a - t 75 O061537a 1. (v fa°u) Wa A°,o, ' Xw A.tc-8 _ wfx•n G "� = iv. 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"_ �' •.5c• "-- _Q5T �n � j ^ I 3. 71 /sF An 'g sn"/� n T-S +r ntwTk s,d n g [Tx sr sw� }_ II/ • • 'T-�� o kluao E �` f: CO _ •-fl 1 nM e u iia y , _ x." -- !V ---.� •• m rmcEw rE-vC. 1 r a l w Yrs= ,c" 1 J•s�+v1... ,,,,,,,,.irc -. ''' • , v LAINl) COMPARABLE #1 . NORTH EAST QUARTER (4) SE( O7 3O 23 z., i ce\o s , 1; 25- a. c a _ ro9 RD. ! .c4: 1 990.<s / . P,-,- 4.4 n ,. , '' i / <•) 0 o.9Jo?s t t.; li 0 o \ CITY O^ MOUNDS VIEW ,' IN 3.555 �/ "`' 111 ADDRESS Lake Court Drive CITY Mounds View COUNTY : Ramsey ZONING : R-4: Townhomes LEGAL (PID) : 07-30-23-12-0002 SALE PRICE : $155,000 DATE OF SALE December 1994 SPECIAL ASSESSMENTS : None FINANCING Market Financing SIZE : 121,247 square feet SITE DATA : All utilities available. STREET SURFACE : Bituminous MAP INDEX : 11-1B BUYER : Heartland Moundsview SELLER : M & E Realty, Co. SOURCE : County Records; Inspection PRICE/SQUARE FOOT $1.28 Comment: This property was sold in December 1994. It sold for.$1.28 per square foot. The site's intended use is for townhome development. • -39- LAND COMPARABLE #2 • .1 . _ ^182 I 2.JJ— � j\ N. 'a 4. 0� . V 177741 V - ;" \ la oroZs `+ `•.3 °L.. .V, IM (5) ..z,—eK ` LI.30.r� oY,.� /I /i V e ,o,".-P / ,' oei Il :: (9) c.e..c. b / ADDRESS : NW Corner of Interstate Hwys 35W & 694 III CITY : New Brighton COUNTY : Ramsey ZONING : I-1: Industrial LEGAL (PID) : 20-30-23-41-0015; 0016; 0007; 0013 SALE PRICE : $370,000 DATE OF SALE : June 1990 SPECIAL ASSESSMENTS : None FINANCING : Cash Sale SIZE : 778,853 square feet or 17.88 acres SITE DATA : Low lying acreage; All utilities available STREET SURFACE : Bituminous MAP INDEX : 11-2D BUYER : City of New Brighton SELLER : John Miller SOURCE : County Records; Inspection PRICE/SQUARE FOOT $.48 Comment: This property is located 2 miles south of the subject in New Brighton. It is zoned Industrial and sold for $1.25. Portions of the site had low and poor soils. Fill was brought in for a parking lot and a golf driving range. The site was in a Flood Hazard Zone (A & C). 411 -40- LAIN') UOMPAKA13L , #3 0 I _1 --- ,':: -• 3+2 ;,,o • f ! 4,..._ .--,.. 7 . - ..! ''F.. vj Z,°. 3 ,ri . 7 Icrl Iwl '' x `> r IJ% " li a t I ,1,.C:nd` aZ'.II Z3 Z. ',I (i w 2 0 l. 2-L— "\-\—4"..:‘,42 G.\2 I ..zaC I o- I" L � t,:e! 1 . ic:�/Du .o � ' .r MtR I;pe . : z c 1 .03 "I''''''' ;21.7't 'j 1 aI 1. r`3-..-_ - v!'-. .. �LAN; 119 Ff I,x,s: > -.. i I obi t al '1'1'1: 'y:{.,.,;a ,.e , _.I I; r, I v w: T, i1_ f~ I~'."_-J,lJ. rw j r:1-t I V.3 j T 1 . tJ „e .1 I xiw.x pi, — „1I „ 0 ADDRESS • • 300 Silver Lake Road CITY : New Brighton COUNTY : Ramsey ZONING : Business LEGAL (PID) : 30-30-23-43-0020 SALE PRICE : $75,800 DATE OF SALE : March 1995 SPECIAL ASSESSMENTS :• None FINANCING : Cash Sale • SIZE : 38.640 square feet SITE DATA : Generally level; All utilities available STREET SURFACE : Bituminous MAP INDEX : 11-iD BUYER : Sikkink & Besser SELLER : Pike Lake Estates SOURCE : County Records; Inspection PRICE/SQUARE FOOT $1.96 Comment: This site was purchased in March 1995 and is zoned for general business. The site sold for $1.96 per square foot. • -41 - LAM) LU1VU'AKAtiLt, n4 • SOUTH WEST QUARTER (k) SECTION 16 f\ \ .,i_+r. - ioCL,,,, 9 CL,,, 6 1�s,_�F 7eB�oc LL _a_,szx. \ %,.,:: •. LFT, '-(.:o \i 1 r. " RAIILROAD ',-V, IJRIGHT OF WAY ^.ie;(I\ \ . 6) io n%;1,31\7 a 5 ' a L s 7I- \ \\ F)k /.i7;, +'.t'v.',- ` — , I, v.. \-;'•:'; 2.'1��'; t 1. •,1 \ \ o C Pi) t .{ j 'I i �1, f.,.i \ Cl: p CB) 2 F,') !' ,e I ' 1 ac \\.,9' \ m'- ,/ 1 z� 1 zti'�it z sef. Zi_ 1. _ __.i... - - -- _-i-} BLV: I `'46,v 4 MOUNDS ')-'e�,nro..` _ %4 0.,'`..:: i ' 1- FF,, C.S '' ' 8 t 1 1:_ ._•{— 5 4 id_'{i! 9_ (f 5 1:177:7:5 _ �1,o-�! �j.T i sc. iW. �5 I�i � 1 Is= I n.. -I .o.- ......o .-;,cn..I, if- . ADDRESS 2123 Old Highway 8 411 CITY : New Brighton COUNTY : Ramsey ZONING : Business LEGAL (PID) : 16-30-23-32-0020 SALE PRICE : $68,000 DATE OF SALE : July 1995 SPECIAL ASSESSMENTS : None FINANCING : Cash Sale SIZE : 45,075 square feet SITE DATA : Generally level; All utilities available STREET SURFACE : Bituminous MAP INDEX : 11-2C BUYER : Patio Enclosures, Inc. SELLER : City of New Brighton SOURCE : County Records; Inspection PRICE/SQUARE FOOT $1.51 Comment: This parcel is located along Old Highway 8, 2 miles south of the subject, and was purchased by Patio Enclosures for $1.51 per square foot. 1111 -42- LAND COMPARABLE #5 • SECTION 32 TOWNSHIP-30 y' RANGE 23 , ; 394, B — -- r < ' - A ---!:- �,L, — . .—--- � - - �—: ,—; —,�-=_'-& —. ' F rI •f' YT-777771. ,- 'll"; 77.7.1.77.C."',.FI.ik .; :: R ,'i, .. ..^ rs r.' . ..d'...1)Ml�. 'r(�Qi..ti. :: 7!fkrC'I' ..7sy l .. .,, Il� '1 sa. K!. '•i,.c' ; �q_/f IIN i Io 1 lig _ ... 6.c 6: F t— I , \c g 1 I`� .>n.. - .l•ir\ le) .-•"' ! i^I ' •1 , ' \\ pli i (,1 c\: (::amtJJ i \`\.--.-J lei `\\��c_ ... .. 1 ;1 si o3) I � r � 40 ADDRESS : 401 1st Street SW • CITY : New Brighton COUNTY Ramsey ZONING : Business LEGAL (PID) : 32-30-23-11-0002 SALE PRICE : $305,000 DATE OF SALE December 1993 SPECIAL ASSESSMENTS : None FINANCING : Cash Sale SIZE : 222,592 square feet SITE DATA Generally level; All utilities available STREET SURFACE : Bituminous MAP INDEX : 19-2B BUYER : Charles E. Stark SELLER : Phillip A. Perron . SOURCE : County Records; Inspection PRICE/SQUARE FOOT $1.57 Comment: This site is located 3 miles south in a similar competitive area as the subject. The parcel has a total of 5.11 acres and sold for $1.57 per square foot in December 1993. III -43- LAND COMPARABLE #6 SECTION 17 TOWNSHIP 30 RANGE 23 • 44 .:, .. ; ; I z.era i I ea.. 1 ' ,-,C —‘Z �. ; Z'�" i � 1•�, vi i'' I • L •l6' f "I: 1 al ! i I:�; 110 ADDRESS 2200 Old Highway 8 CITY COUNTY New Brighton •ZONING Ramsey LEGAL (PID) Business SALE PRICE : 17-30-23-41-0013 DATE OF SALE : $100,000 : October SPECIAL ASSESSMENTS1992 : None FINANCING None SIZE Cash Sale • SITE DATA 7 ,240 square feet • Generally level; All utilities available STREET SURFACE MAP INDEX Bituminous- BUYER • 11-2C SELLER Murco, Inc. SOURCE Boemer Building Systems PRICE/SQUARE FOOTCounty Records; Inspection : $1.33 Comment: This site is located 2 miles south in New Brighton. The parcel has a total of 1.73 acres and sold for $1.33 in October 1992. 40 -44- ADJUSTMENT ANALYSIS . The Sales Comparison Approach requires adjusting and analyzing comparables to derive a value estimate for the subject. The various sale prices are adjusted after identifying relevant adjustment factors and after quantifying the effect of a difference between the comparables and subject. Before any adjustment can be identified or quantified, a sale must be considered sufficiently comparable to the subject property. Even if the sale is considered sufficiently comparable, a determination must be made as to the adequacy of the data collected. The difficulty in quantifying adjustments is a result of real estate being unique in nature, with no two properties being identical. Additionally, not all differences require an adjustment. This is true if the market does not pay a premium or lower the price for a difference between similar properties. The Appraiser typically will have to rely on reason and experience to decide which differences should be adjusted, as well as the magnitude of any adjustment. The most appropriate use for an adjustment grid and pairing sales for specific dollar or percentage adjustments is for simple properties where relatively few adjustments explain differences in value. Vacant land, simple retail, some industrial, and residential properties fall into this category. Another consideration in the sales comparison approach is that adjustments can be overlapping. Overlapping adjustments are those that look like independent adjustments, but may in fact be reflecting the same market consideration for differences in price. For example, adjustments for • utility, location, zoning, and traffic count may be overlapping and may all be included in the market perception of location. If various location factors such as traffic count or zoning are delineated for adjustment, the appraiser should consider the specific effect of each factor on value. The adjustment process is an attempt to account for significant adjustment factors between the comparables and the subject property. The comparables are adjusted to the subject property for their dissimilar features. Therefore, if the comparable has a feature that is better than that found in the subject property, a downward adjustment is applied. If, on the other hand, the feature is worse than in the subject, or non-existent in the comparable, an upward adjustment is applied. The physical differences and/or characteristics that exist between the comparables and the subject are adjusted to indicate a reasonable value conclusion for the property being appraised. 1. Real properly rights conveyed - The real property rights conveyed is the first adjustment because the appraisal of the subject property rights can only be compared to similar property rights. If no information can be obtained to extract an adjustment of, for example, a fee simple interest to a leased fee interest or leased fee to fee simple, then the sale should not be used. In practice, a sale of a fee simple interest is typically not compared to a leased fee or leasehold estate. Typically, comparability required omitting sales of different property interests. It can be seen that this is a major reason why this is the first consideration. All comparable sales are of fee simple interests, so no adjustments are necessary. 11111 -45- • • Financing -A financing adjustment is actually a specific motivation adjustment and often is not capable of being accurately derived from a mathematical discounting process. The most reliable financing adjustment is from paired sales, but such detailed data is generally not available from sales information. In practice, the parties in a transaction should be consulted concerning the effects of financing and this should be compared to a mathematically derived indication by discounting the payments specified by the transaction at the market rate of interest. The most commonly used market value definition requires appraising to "cash, with typical institutional financing or other stated terms". Furthermore, if the subject is assumed to have other than typical institutional terms, the terms and the effects of the financing on the appraised value should be set forth in the report. The comparables are purchased on a cash equivalent or cash basis, and therefore no adjustment is necessary. 3. Conditions of sale (motivation) - Similar to property rights conveyed, a motivation other than that assumed in the value definition may require discarding a sale from consideration. For example, if a sale were affected by undue duress, then no appropriate adjustment could probably be derived. However, an adjustment for plottage, purchasing additional land for expansion or parking, and other typically motivated sales may have an adjustment that may be inferred from the market by comparison or from information provided by the buyer or seller. The comparable land sales were confirmed to be an arm's length conditions of sale. Therefore, no adjustment was mmade coon and have typical 4. Market conditions (time) - A time adjustment is a market conditions adjustment because it is changes in the marketplace, and not the passage of time, that causes prices to change (the principle of change). Time adjustments may be straight-line (noncompounded) or compound (curvilinear). Neither method is more appropriate than the other as long as market changes are accurately adjusted, and as long as the procedure used is consistent with the method used when a time adjustment was abstracted and with the mariner in which it was applied. Because of the varying nature of the real estate industry in the area, as well as the Twin Cities Metropolitan Area, we have applied a 3% adjustments per year in the analysis of the comparable land transactions. 5. Location- The location of each sale has been reviewed and compared to the subject in terms of access, visibility, identity, proximity to support services and market area. Tracts of similar highest and best use should be compared. Generally, it is inappropriate to use sales of different highest and best use with an attempt to adjust the differences for location. For example, it would be better to obtain sales of the same highest and best use from a larger area and adjust for differences in location, than to obtain sales of properties that are closer to the subject but have a different highest and best use. All the comparable sales were considered to have a similar 1111 -46- purposes as their highest and best use, and are located in a similar competitive area • as the subject. Hence, no adjustments were made. 6. Size - One of the basic characteristics of real estate is that it is unique. Because real estate is unique and there are generally numerous differences between properties, only quantifiable or significant differences should be adjusted. The physical differences are best obtained, as are all adjustments, from a direct comparison of comparables. However, because properties are generally not alike, physical adjustments are not easily abstracted from sales. The primary adjustment for this category was the size of the parcel. It should be noted that the smaller size lot is considered more valuable per square foot than larger ones, due primarily to the cost of developing it. The cost to develop a larger site is considerably less per square foot than a smaller one. Due to the inverse relationship between the comparables size and their value per square foot, your appraiser has adjusted the comparable site according to their size. Each of the comparable sales have been adjusted. 7. Zoning - The subject is zoned Highway Business. Comparable #1 is located nearby in Mounds View and is zoned R-4, for Townhouse use. This comparable sale is given a 5% adjustment for its residential density. Comparable #2 is zoned I-1, Industrial and is considered similar to the subject. The other 4 comparables are similar to the subject, and therefore, no adjustments are made. 8. Other Characteristics and Differencesadjustment-The other cate o category is a catch-all for relevant adjustments that cannot be categorized in the previous adjustments, such as topography, availability of utilities, special assessments, soil conditions, shape, and other features. Each of the comparables are given a 25% adjustment for the subject's mixture of wetlands and possible buildable sites along Edgewood Drive and the accessibility to and from Bronson Drive, as well as the roadside advertising signs. A 10% adjustment is given to the comparable land sales for this added feature. • -47- ADIUSTMENT SUMMARY Following is a summary of the adjustment process utilized in the valuation of the per square foot 41) value of the subject land. ionim>`«> > > <> OMPARABLE LA: SALE Sf aE : :: : >><im COMP COMP COMP COMP COMP COMP #1 #2 #3 #4 #5 #6 SALE PRICE/SQUARE FOOT $1.28 I $.48 $1.96 $1.51 I $1.57 I $1.33 ELEMENTS OF COMPARISON: Property Rights Conveyed Fee Fee Fee Fee Fee Fee Simple Simple Simple Simple Simple Simple Financing Terms Market I Market Cash Cash 1 Cash Cash Conditions of Sale Typical Typical Typical 1 Typical Typical Typical Market Conditions (Time) 12/94 6/90 3/95 7/95 12/93 10/92 4% 17% 3% 2% 7% 10% ADJUSTED PRICE/SQ.FOOT $1.33 $.56 $2.02 $1.54 $1.68 $1.46 PHYSICAL CHARACTERISTICS: 0 -Location M.View New Br. I New Br. New Br. New Br. New Br. -Size (Square Feet) 121.247 778.853 38.640 45,075 222,592 75.240 (Subject site has 407,957 SF) -15% 10% . -50% -45% -10% -25% -Zoning Resid'I Indust'l Business Business Business Business (Subject is zoned Business) 5% 0% 0% 0% 0% 0% -Outdoor Advertising Signs I 10% I 10% I 10% 10% 10% 10% -Other Characteristics/Differences -25% -25% -25% -25% -25% -25% . (Subject has Wetlands&Buildable Sites) TOTAL ADJUSTMENTS I -35% I -5% I -65% -60% -25% -40% INDICATED VALUE/SQ.FOOT $.86 $.53 $.71 $.62 $1.26 $.88 4111 • -48- The subject property has been valued as if vacant and was compared to the six land sales listed and discussed on the previous pages. Prior to adjustments for items of difference, the prices per square foot ranged from $.48 to $1.96. T`ATISTICAL A.N.ALYSIS€ F OMP LE LAND SSS 1 Sample Size 6 Mean $1.36 Range $.48 to $1.96 Median $1.42 Sample Size 6 Mean $.81 Range $.53 to $1.26 Median $.79 ONCLUS�( l $.80 per square foot After adjustments for items of differences, the range in adjusted sale prices of the foregoing properties is from $.53 to $1.26 per square foot. After analyzing all of the foregoing data and recognizing the size, location, and utility of the site, we have concluded that a value of$.80 per square foot reflects the current market attitude for the subject site. The subject site has 407,957 square feet X $.80 per square foot = $326,366 Say $330,000 THE INDICATED LAND VALUE IS: $330,000 410 -49- \ CM'OF REQUEST FOR COUNCIL CONSIDERATION Agenda Section: 8. 3 IllilOSReport Number:9h-1„2?iWS STAFF REPORT� AGENDA SESSION DATRarch 4 1996 Report Date: 2 29 96 •^� S �css.Partners��4 DISPOSITION Item Description: Discussion of Priority of Redevelopment Properties in Mounds View Administrator's Review/Recommendation: - No,comments to supplement this report - Comments attached. Explanation/Summary (attach supplement sheets as necessary.) ,SUMMARY; Per the request of Council member Quick, attached is a list of properties that have potential for redevelopment in Mounds View. Each property is listed by PIN#, address, acreage, square footage, Assessed Value, Estimated Market Value, Total Taxes and City Taxes. The EDC will III be reviewing this list at the Feb 22nd meeting and staff will bring their recommendations to the work session. In addition, staff has provided the schedule of excess tax increment that was reviewed by the Council in 1995 less amounts expended through the business loan program and purchase of 2625 Hwy 10 (Blue House)to assist in the prioritization process. Staff has contacted several consultants that could provide facilitation for the EDA regarding Highway 10 redevelopment. Staff would like direction regarding the EDA's preference on this matter. Staff would also request that the EDA to discuss demolition of the Blue House and responses provided by several metro area developers. We could wait until there is a project to demolish but the property will be more marketable if it is cleared. The responses from developers have been slim but continuous efforts are being made to identify uses for the property. Some of the options discussed are Multi Family Condominiums, including the renovation of Pleasant Wood Apts., a Funeral Home and a Computer Showroom. 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O A N OOO O O � .A CO (n (A co -. 0 Cn O 4110 CITY OF REQUEST FOR COUNCIL CONSIDERATION Agenda Section: 10. %OS STAFF REPORT 96-1630WSReport Number:E' AGENDA SESSION DATE Report Date: 2/29/96 M n D��etj'Partnetsh`QS ,�y`CH 3. 1996 esPOSITION Item Description: Appreciation Dinner Administrator's Review/Recommendation: - No comments to supplement this report - Comments attached. Explanation/Summary (attach supplement sheets as necessary.) ,SUMMARY; Staff will be providing the Council with a tentative date for the annual Appreciation Dinner on Monday evening. Ideas for food, entertainment and the program format will also be discussed. Harrington, Interim C. Administrator •ECOMMENDATION; THIS IS 1111- • . . . For the Week of February 26 - March 1 , 1996 ADMINISTRATION • I have been in contact with Chuck Whiting, the new Clerk-Administrator. I am sending him information that he requested, i.e., Council meeting times, staff meeting times, etc. • Staff received some great news Jennifer and her husband Jim are expecting a baby...not sure of the due date. • Lynnette Morgan attended a rights-of-way meeting regarding telecommunication devices and franchise fee renewals. Paul ECONOMIC DEVELOPMENT Cathy called in the first part of this week and said that she is really enjoying her ski vacation in sunny San Diego, California. Cathy will be back in time to attend the Work Session on March 3. Thanks to all the department heads who took the extra time to run me copies of their budget narratives. My work on the 1996 Budget Book this week has put it in an"infant stage"... it should be ready by the end of March. I am researching templates, which can be placed on the network, for budget time use. BILL SUMMARIES Fixing leaky septic systems A loan program approved by the Metropolitan and Local Government Committee would make it easier for homeowners to fix failing septic systems and contaminated wells. Under the proposed bill, municipalities may bond to create the loan program, which is not subject to the municipal debt limit. Homeowners may then apply for the loans to replace or repair septic systems and to seal and replace contaminated wells. Loans are then paid back through directed property taxes, similar to a special assessment. Apartment tax bill Members of the Taxes and Tax Laws Subcommittee on Property Tax approved a bill to gradually lower rental property taxes. The bill would lower the class rate for general apartments from 3.4 percent to 2.8 percent by 1999. It also lowers the class rate for apartment buildings of four units or less from 2.3 percent to 2 percent during the same time period. This bill would be seen to ease the burden of higher rents that prevent renters from saving for down payments on homes. Tying funds to performance Under this bill cities and towns could either increase or decrease their share of state aid under a bill that encourages the use of performance standards. HACA would be contingent on the city's establishment of"performance measures" aimed to increase the accountability of local governments. Cities and towns would be required to adopt goals and work towards them. DEAD BILL: Penalties and Interest This bill would have given cities their pro rata share of the penalties and interest collected on delinquent property taxes. As.a result, Minnesota will still follow current law where the penalties and interest are split evenly between the school districts and counties. Dawn PARKS RECREATION AND FORESTRY PARKS • The Parks crew is working on park building maintenance including replacing light bulbs, cleaning carpets and general clean-up. The skating rink season has concluded and the park buildings will be scheduled for community group uses. • Portable restroom bid proposals were prepared and sent out to firms last week. Bids are being received currently. RECREATION • The Recreation Brochure, Mounds View Matters is beingprinted with completion and P mailing scheduled for Thursday. Registration code sheets, and other registration preparations are under way for Spring registrations. • Seasonal employee applications are being received with interviews for spring and summer positions being scheduled. Positions include after school activity instructors, lifeguards, water safety instructors, gymnastic instructors, parks crew, summer playground positions, etc. FORESTRY • Bids for tree removal services for 1996 are currently being received. GOLF COURSE • Staff will be meeting Wednesday, February 28 with area High School golf team coaches to schedule course and practice range use. CABLE TV • Sue is attending computer classes this week. Mary S. FINANCE • Dorothy is collecting money this week from utility payments which are due February 29. She and Paul Thom (Waterpro) are working together on adjustments to insure that all the individual customer information is accurate. • Kitty has made us all happy by sending out the 3rd payroll of the month, on February 29. You are all invited to visit Kitty and see her new workstation. The ergonomics consultant had said that her work area was the one most in need of a better design and furniture. Hopefully, her shoulder pain will not return. • Marge has been helping Dorothy; open utility payments, balance money, and input the payments to the customer's utility account. She has also helped Kitty with some payroll coding sheets. On February 29, she said that she is almost finished with the historical notes for the utility billing on the computer system, Mary T. PUBLIC WORKS * Both of the dumptrucks had mechanical failures February27. (Starter in one and the Hydraulic Motor in the other.) * Wally and Larry are modifying the calcium chloride tanks. * We are continuing the installation of the used oil heaters in the garage.. * Bill Hanson and Bill Hanggi will be attending the 12th Annual Minnesota Rural Water Association Technical Conference March 5-7 in St. Cloud. * The Water Department has been working with Jim Hess in preparing plans and specifications for the preventative maintenance of Well 3. Advertisement for bid should go out next. * Tom Baumgart and Tim Pittman are working on the DARE vehicle. (Good job guys!) * Tracy has been scheduling the remaining water meter installations. As of February 28, we are down to 47 property owners that require installations. (This number includes, refusals, those that haven't made contact with us since receiving the certified letter, vacant properties, vacant lots and owners that go South for the winter.) Appointments are being taken for Wednesdays only; that's the day the installer is here in Mounds View. Tracy Juell POLICE • Darrell Meyer, our newest patrol officer, was in on Thursday to be fitted for uniforms and fill out the necessary paperwork for employment with the City. Darrell's start date is March 11th. • Mike Kampa had a second surgery on his shoulder this week. Surgery went well and Mike is recovering at home. • The Chief is leaving for rainy Florida on Friday, yeh!! He will be back to work on March 11th. Tim R. COMMUNITY DEVELOPMENT • The Minnesota Multi-Housing Association featured the Mounds View logo on the cover of the Multi Housing Advocate, Spring 1996 issue, magazine. An article in the magazine was devoted to metro housing multi housing coalitions. • The City has received a new home building application by Pleasant Places Inc. For 5031 Edgewood Drive. • Jennifer Bergman attended a seminar this week on the Livable Communities Act by the Minnesota Housing Partnership. • Barb Benesch and I have been researching software packages for tracking code enforcement inspections, housing and building inspections. We have ordered demos and have found a package by Black Bear systems that looks like it may address our needs and is within our price range. Joyce 'Mounds View Festival in the P.as. . Iy . iqb, . ,,i):("-, { t.• ter`• . . ^P l• . -- 6 1 /.C} - 1' 14 I • ,' . . 1.44 f; y. , . .. • &O..., 1 t Volume I!issue_C January .t; t 996, ECONOMIC IMPACT OF --_i "FESTIVAL IN THE PASK" Mounds View CITYON BUSINESSES Festival in the Park Committee Now will the"festival in the Park"affect your business? Positively — that's how! In 1995, the Festival brought in Brian deter, Lillie Suburban News around 3,000 peouie to Mounds View. This included over Theresa araaaak, MV Mci3onalds/ Button Sales Chairperson 1,000 hungry band members who converged upon our local fast food establishments. People from all over the state wi11 Glenn Crooks, Parade Committee Dru Dukart, Parade Chairperson be arriving in Mounds View the weekend of July 13 — they will Linda Haabala, Pinewood PTA be high school band members and their families, crafters from Charlie Hail, The Mermaid Minnesota and the surrounding states, and people from all over Volleyball Tournament Sponsor the metro area looking for quality family fun. After traveling all Dan Hail, The Mermaid that way, they'll be sure to need a break at one of our fine Kathy Harrer, Publicity Chairperson restaurants or need a fill up of gasoline or to purchase a snack. Button Sales Committee ... many of our local businesses will directly benefit from the Don Hodges, Lions Club/ Festival. Cable Committee Carol Johnson, Addie Lane Floral JeFor those businesses not providing direct services to the public, TrafficayJohnson,orol/ MV PoliceChBerson Control/Safety Chairperson the benefit will be derived not monetarily, but through the Stephanie Kirchmaier, Paster Ent./ pride of showing off the community to thousands of "out-of- Mounds View Square towiiers" Sharie Linke, Festival Coordinator Pat Michna, Entertainment Chair After the 1995 Festival, we received many great comments Debbie Miller, Sunnyside PTA/ about our town and our celebration. Many of them from out- Games Chairperson ot-towners, but most from our own Mounds View residents Phil Ramola, Parade Committee who were impressed with all the community cooperation and Steve Schack, MN RentAll effort that made it a great success. For all of you that partici Medallion Hunt/Golf Tournament r FestivalThanks!! cdidn't Sponsor Dated in the '— z hanks.: For those who have the Jeanne Schultz, Western Bank opportunity -- come anti join the fun of participating in this Golf Tournament Sponsor annual community celebration. The rewards are many, Diane Wuori, MV Community Theatre If you want to get involved, please call :Shade at 734-06 13. Everyone is welcome to be a member of our Festival team. I 1 f• II alrV tt011 i Vie treattn Shan LinktEdite E J f N SAlIS DIS 13 NTS . - . i ,__ ‹ , , PT PUUTS illIBED \\, , )//"" 'i''2 1tiv Does your company or business want to participate in the Festival button sales and/or offer a discount or special F S I ti f EAJh during Festival week? ; _ 1 �i u i. S � `� To participate in the button sale, a i — Some of theproposed your business can offer a special i e activities for the 1996 discount or deal to people wearing a -ale Festival in the Park in- Festival button and presenting the // dude: appropriate coupon. We use a coupon book in addition to the button so people don't take undo 4 Culturally Diverse En- advantage of the business. tertainment If you don't wish to offer a discount, you may be a sales point + Huge Parade for the buttons. You may purchase the buttons at $1 .00 each and then resell them or you can check out buttons on consign- • Street Rod Car Show ment and return the money and unsold buttons after the Festival. + Games The sale of buttons is important to the Festival because it in- creases awareness of the event, offers businesses an opportunity + Concessions to get involved through promotions and raises needed funds for the Festival. I + Horseshoe Tournament If you are interested in participating in the button sales and/or + Softball Tournament discount coupon book, please Hour the attached form and return it to the Parks and Recreation byMay1,Department p + Volleyball Tournament 1996. + Street Dance 2l i ; 1 1 : ;�► 'Medallion Hunt - ..� `l�''q` -- _ � . _J- + Button Contest The Festival Committee is once again looking for locations for Fireworks Donation Canisters. These donations are used to The next festival Committee offset the cost of the fireworks `nate the evening of the Festival. meeting js The cost of providing fireworks is 54,000. ideal locations r einlian 21,1996 would be do a lot of cash sales as oppose:.; co checks and shames. This way, people would out their loose change in the ` '"n' _misters. Last year. F:'dors Market did an outstanding icb of at coti iec.. g for the :i"evci kt^ it r_)eczrne a competition between Nieun9s View Ci tv ',Jail chec'< out lanes. We will put the canisters out in late May and 't � c as1.�.i�ii�i'rwn'�se :1m. L empty them on a weekly basis. If you would like to be a 1-ire- works Donation Canister site, please indicate that on the at- All are welcome cached form.