HomeMy WebLinkAboutCC PACKET 09232002 Meeting Sheet
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Folder: CC PACKETS 2001-2004
Document: CC PACKET 09232002
CITY OF ST. ANTHONY
Our mission is to be a progressive and livable community,
a walkable village, which is safe and secure.
CITY COUNCIL MEETING AGENDA
September 23, 2003
7:00 PM
Council Chambers
Call to Order.
Pledge of Allegiance..
Roll Call.
Consideration, Discussion, and Possible Action on All of the Following Items:
I. Approval of the September 23, 2003 City Council Meeting Agenda. Action
requested.
II. Proclamations and Recognitions.
A. Proclamation for St. Anthony Kiwanis Peanut Day. Action requested. (p. 1)
III. Community Forum.
Individuals may address the City Council about any item not included on the regular
agenda. Speakers are requested to come to the podium, state their name and address
for the Clerk's record and limit their remarks to five minutes. Generally, the City Council
will not take official action on items discussed at this time, but may typically refer the
matter to staff for a future report or direct that the matter be scheduled on an upcoming
agenda.
IV. Consent Agenda.
These items are considered routine and will be enacted by one motion. There will be no
separate discussion of these items unless a Councilmember or citizen so requests, in
which-event the item will be removed from the Consent.Agenda and placed elsewhere
on the agenda.
A. Approve September 9, 2003 Council meeting minutes. (pp. 2 - 13)
B. Licenses and permits. (p. 14)
C. Claims. (pp. 15 - 17)
D. Resolution 03-079, re: Amend North Suburban Mutual Aid. (pp. 18 -23)
E. Resolution 03-078, re: Consider Election Judge list for 2003 Local Election. (pp.
24 -25)
F. Ordinance 2003-012, re: Water and sewer connection permits (2nd reading). (pp.
26 -28)
Page 2
V. Reports From Commissions and Staff.
A. Planning Commission meeting - September 16, 2003.
1. Northgate Condominium Owners/LeRoy Sign Company, 2500 Highway
88; setback variance. Action requested on Resolution
03-080). (pp. 29 -33)
2. St. Anthony Shopping Center, for 2900 Pentagon Drive; amend
comprehensive sign plan. Action requested on Resolution 03-073).
(pp. 34 -36)
VI. Northwest Quadrant.
A. Apache Redevelopment, LLC, for Northwest Quadrant area; approval of the
preliminary development plan and preliminary plat for the entire project area and
the final development plan and final plat for the retail portion. John Shardlow,
DSU, will be present. Action requested on Resolution 03-081). (pp. 37 -57)
B. Public Hearing. Approve Resolution 03-082, to Modify the Redevelopment Plan
for Redevelopment Project Area No. 3; and to Establish TIF District No. 3-5
Within Redevelopment Project Area No. 3 and Approve the Removal of Certain
Parcels From the HRA's TIF No. 3-3 for Inclusion in District No. 3-5 and to Adopt
a TIF Plan Therefor. (See attached TIF Plan and Inspection Report.)
Representatives from Ehlers &Associates and LHB will be present. Action
Requested. (pp. 58 -66)
C. Resolution 03-085, re: Redevelopment of Property in Redevelopment Project
Area No. 3 and Authorizing Preparation, Execution and Delivery of a Contract for
Private Development Thereof. Action Requested. (pp. 67 - 76)
VII. General Policy Business of the Council.
A. Resolution 03-083, re: $585,000 GO Refunding Bonds Series 2003D, authorizing
issuance, awarding sale, fixing form, etc. City Attorney Jerry Gilligan will distribute
this resolution at the meeting.-Action Requested.
B. Resolution 03-084, re: $1,170,000 Taxable GO Tax Increment Refunding Bonds
Series 2003E, Authorizing Issuance, Awarding Sale, Fixing Form, etc. City
Attorney Jerry Gilligan will distribute this resolution at the meeting. Action
Requested.
VIII. Reports From City Manager and Councilmembers.
IX. Information and Announcements.
X. Miscellaneous Informational Documents.
XI. Adjournment.
01
'n thon
illa e
PROCLAMA TION
WHEREAS, the Kiwanis Club of St. Anthony is an organization
dedicated to helping community youths
educationally and spiritually; and
WHEREAS, the Kiwanis Club of St. Anthony is also committed
to other community services; and
WHEREAS, in order to raise funds for its many and varied
programs, the Kiwanis Club of St. Anthony has
requested a day be set aside in St. Anthony Village
for the sale of peanuts
No W, THEREFORE, BE I T RESOL VED, that the St. Anthony City
Council hereby designates FRIDAY, SEPTEMBER 26, 2003 as
ST. ANTHONY KIWANIS PEANUT DAY
Mayor
Date
02
City Council Regular Meeting Minutes
September 9, 2003
Page 1
1 CITY OF ST. ANTHONY
2
3 CITY COUNCIL REGULAR MEETING MINUTES
4
5 SEPTEMBER 9, 2003
6
7 CALL TO ORDER
8 Mayor Hodson called the meeting to order at 7:00 p.m.
9
10 PLEDGE OF ALLEGIANCE.
11 Mayor Hodson invited the Council and audience to join him in the Pledge of Allegiance.
12
13 ROLL CALL.
14 Present: Mayor Hodson; Councilmembers Horst, Sparks, Thuesen, and Faust.
15 Absent: None.
16 Also Present: City Manager Mike Mornson.
17
18 CONSIDERATION,DISCUSSION, AND POSSIBLE ACTION ON ALL OF THE FOLLOWING
19 ITEMS.
20
21 I. APPROVAL OF SEPTEMBER 9, 2003, CITY COUNCIL MEETING AGENDA.
22 Motion by Councilmember Sparks to approve the City Council Meeting Agenda of September 9,
23 2003.
24
25 Motion carried unanimously.
26
27 II. PROCLAMATIONS AND RECOGNITIONS.
28 None.
29
30 III. COMMUNITY FORUM.
31 Robert Kluwe, 2.600 - 34`h Avenue NE came forward to discuss the affects of the 2003 street
32 repair project. He noted he had contacted the City but had not received a response. He indicated
33 the project had been totally frustrating and aggravating and felt it could have been friendlier to
34 the residents and environment. He stated he was before Council to discuss the problems caused
35 to residents so other residents would not have to experience this type of frustration when another
36 project was undertaken.
37
38 Mr. Kluwe discussed the environmental problems that had been caused and stated a mess had
39 been left behind. He also had questions regarding the reasons for alterations to yards, the way
40 the sidewalk was installed, the quality of the fill used and preparation for laying the sod. He felt
41 money had been wasted because of how things were being done. He suggested the use of
42 retaining walls had been overlooked.
43
44 Mr. Kluwe indicated the City should look at ways to decrease#ie amount of dirt going into the
45 storm sewer, in addition to building up retaining walls. He invited Council to drive by his home
46 to review the situation.
47
City Council Regular Meeting Minutes 03
September 9, 2003
Page 2
1 IV. CONSENT AGENDA.
2 A. Approve August 26, 2003, Council meeting minutes.
3 B. Consider licenses and permits.
4 C. Consider payment of claims.
5 D. Consider Ordinance 2003-011, re: Fireworks (3`d reading).
6 E. Consider Resolution 03-074, re: ReclassifXnQ a parcel of land.
7
8 Councilmember Faust requested the removal of Consent Agenda Item A.
9
10 Councilmember Faust requested that on page 9, line 6, it should read"$150 million"instead of
11 "$250 million."
12
13 Discussion followed regarding which number was correct. Staci Kvilvang, Ehlers and
14 Associates, Inc., confirmed the correct number was $150 million.
15
16 Motion by Councilmember Sparks to approve the Consent Agenda items.
17
18 Motion carried unanimously.
19
20 V. PUBLIC HEARINGS.
21 None.
22
23 VI. GENERAL POLICY BUSINESS OF THE COUNCIL.
24 A. Review and consider approval of TERM sheet for Northwest Quadrant.
25 Staci Kvilvang, Ehlers and Associates, Inc., introduced the other project team members
26 attending the meeting. She indicated the concluding portion of negotiations was near
27 completion, as the final points were in the process of being solved. She added the goal was to
28 have the TERM sheet ready to present to Council at the September 23, 2003, meeting.
29
30 Ms. Kvilvang presented views of the development layout and discussed placement and types of
31 various housing and businesses. She noted the message to the team was clear that the City
32 desired the full development to be completed.
33
34 Ms. Kvilvang provided copies of a September 9, 2003, memo to City Manager Mornson that
35 discussed the development proposal and terms of the Development Agreement for the Northwest
36 Quadrant Redevelopment. She discussed the phases of the development and noted Len Pratt,
37 Pratt-Ordway, indicated Phase I and part of Phase II was ongoing. She added Phase III was
38 currently being considered, even though it might never be developed. She noted the current
39 buildings involved might need facelifts; therefore, moving forward was not a certainty.
40
41 Mayor Hodson asked if it was possible to require a facelift of existing buildings with other
42 owners. Ms. Kvilvang responded the owners could not be forced to make the changes; however,
43 the City could provide incentives so the existing buildings would be upgraded to consistency
44 with the rest of the area.
45
46 Ms. Kvilvang explained the valuation of the total development was $145 million to $150
47 million. She noted the estimated cost to acquire all the land,relocate existing businesses,
City Council Regular Meeting Minutes 04
September 9, 2003
Page 3
1 demolish the structure and complete the public improvements would cost approximately$16
2 million for Phase I and $4 million for Phases II and III. She discussed the developer's proposal
3 for payment for land and special assessments for the Phase I development to assist in offsetting
4 this cost.
5
6 Ms. Kvilvang explained, based upon the latest Sources and Uses from the development team, it
7 was anticipated the Phase I development would generate approximately$10.5 million in present
8 value tax increment. She added, of this increment, it was anticipated the development team
9 would require approximately$7.5 million to $9 million to complete the redevelopment. She
10 warned these numbers were estimates and the final amount of increment would be presented
11 with the final Term Sheet.
12
13 Ms. Kvilvang stated all TIF calculations currently had included fiscal disparities being paid
14 within the district,pursuant to policy discussions with City staff and Council. She added this
15 option was currently financially viable since the current TIF projects showed excess increment
16 for the development. She noted the City may consider, however, keeping fiscal disparities
17 within the district for coverage on a Fannie Mae loan for the acquisition of the three commercial
18 properties needed for the Phase IA For Sale housing units.
19
20 Ms. Kvilvang indicated currently all TIF calculations showed 5% of available tax increment
21 being available for administration. She explained the City might elect to subordinate its 5%
22 administration until the entire development comes on line if the development required more than
23 95%of the TIF for actual redevelopment costs or coverage of bonds. She added it was
24 anticipated this would not be required at this time.
25
26 Ms. Kvilvang stated it was anticipated the development team would finance their development
27 costs up front and they would request the City to "take them out" after the development was
28 completed through the issuance of tax-exempt TIF bonds. She noted this was a tool used in
29 many of the metropolitan communities to assist developers with development and was a low risk
30 proposition for the City, since the developments would be constructed and paying taxes when the
31 City was issuing these bonds.
32
33 Ms. Kvilvang indicated 391h Avenue would be reconstructed and upgrades would be made to the
34 sanitary sewer lines as well. She stated it was anticipated it would cost approximately$1.7
35 million to $2.1 million to complete these improvements and the cost would be assessed to and
36 paid for by the development and other benefiting properties within the TIF district.
37
38 Ms. Kvilvang stated she knew the city park was an important part of the development. She
39 indicated the development team would pay for the park improvements, which were estimated to
40 cost approximately$1.43 million. She added they would be reimbursed by the City for a portion
41 or all of the park improvements through park dedication fees generated from the development
42 and any grants the City might receive. She noted the park improvements might be phased over a
43 three-year period if the City did not receive the $900,000 in LCDA funds it requested from the
44 Metropolitan Council. She explained a few changes had been made to the park concept plan as
45 they related to future maintenance issues.
46
City Council Regular Meeting Minutes 05
September 9, 2003
Page 4
1 Ms. Kvilvang stated the developer would construct and furnish a new municipal liquor store-
2 within the commercial development. She noted it was anticipated the liquor store would be
3 constructed prior to demolition of the existing store so as to cause minimal disruption to the
4 City's liquor operation. She added the City would work with Tires Plus to find a suitable
5 relocation site since they would be required to relocate their business. She indicated the
6 developer would pay the cost to relocate the existing Tires Plus building and the cost to construct
7 the new liquor store, up to an amount not to exceed$1.7 million.
8
9 Councilmember Horst asked if the current liquor store and Tires Plus were being removed to
10 accommodate parking. He noted possible variations of parking had been discussed with the
11 Planning Commission. Ms. Kvilvang responded sometimes the retailers had parking standards
12 in excess of a city's standards. She agreed the removal of the liquor store and Tires Plus was to
13 make sure there was adequate parking.
14
15 Ms. Kvilvang stated the developer had a signed Purchase Agreement for the existing Cub Foods
16 store for$10.85 million, inclusive of the restrictive property covenants. She noted the developer
17 intended to rehabilitate the store to upgrade its appearance to the quality of the new commercial
18 development and the estimated cost of this "face lift"was $580,000. She explained the agreed-
19 upon purchase price of the store did not allow the developer to obtain any more debt on the
20 property; therefore, the City would provide the developer full T1F assistance for the store's
21 rehabilitation as a qualified redevelopment cost.
22
23 Ms. Kvilvang indicated the developer had requested City assistance in acquiring the three
24 commercial properties upon which the Phase IA For Sale housing units would be located. She
25 noted the development team had discussions with Fannie Mae to assist in providing the "up
26 front" money needed to acquire these properties. She added Fannie Mae was willing to provide
27 the assistance but would require, as collateral,the land,Developer Guarantee and the City's
28 pledge of its General Obligation Taxing Authority.
29
30 Ms. Kvilvang felt the City assistance would indicate a partnership with the development team
31 and would say"we are in this with you." She added financing would be cheaper with Fannie
32 Mae; however, the risk would be if there was a downturn in the markets. She stated the City
33 could say"no"; however, the developer then would probably want to be compensated for the
34 higher risk they were taking.
35
36 There was further discussion involving risks involved. Councilmember Faust stated he liked the
37 idea of partnering but thought the City was a bigger partner than the developer. Ms. Kvilvang
38 responded the City's risk would be responsibility for the loan if the developer walked away. She
39 noted another option was to have the developer help the City with some of the needed $2.7
40 million, leaving the City with the need for a bond and being left with the land. She noted the
41 City would be putting its faith in the development team.
42
43 Councilmember Faust stated he had confidence in the development team, especially if more
44 commitment came from them. He noted the City was using its credit to obtain lower rates now
45 and when refinancing would be done in the future.
46
City Council Regular Meeting Minutes 06
September 9, 2003
Page 5
1 Councilmember Horst asked if the discussion was related to the commercial properties only.'
2 Ms. Kvilvang stated that was correct.
3
4 Councilmember Horst observed the developer also had risk in the first phase. He asked if there
5 was a possibility they would walk away. Ms. Kvilvang responded she did not think they would
6 walk away; however, she felt the risk was if something catastrophic would happen in the market.
7
8 Councilmember Horst asked if the City had to buy the property and work with Fannie Mae
9 before this was done. Ms. Kvilvang responded that was not correct. She stated the developers
10 were asking the City to provide the general obligation pledge and noted collateral.
11 Councilmember Horst indicated he would have a comfort level if the City were not looking at
12 general obligation but rather some pool of money, like the water filtration fund, the City might
13 have available.
14
15 Mayor Hodson stated he was comfortable with the proposal and thought the risks were minimal
16 for such a large project. He felt the team was strong financially and he was relaxed about the
17 team's requests. He added he did not want to assess small risks if they were not necessarily a
18 reality.
19
20 Councilmember Faust stated he was 95%sure this was going to happen; however, he did not
21 want the City to "throw $2.7 million out there"without more information.
22
23 Mayor Hodson asked if it was a viable option to guarantee the loan with the water filtration fund.
24 Ms. Kvilvang responded anything was possible. She added the team would be looking at other
25 options and funds with the City's finance director. She stated she understood Council wished
26 them to find other funding sources first and, if general obligation were necessary, more
27 exploration would be needed.
28
29 Councilmember Thuesen stated he was relatively comfortable with the City coming forward
30 with the collateral. He indicated using the water filtration fund was a good option to consider, as
31 he was not excited about using general obligation.
32
33 Councilmember Horst agreed, as his concern was the risk to the public. He added he would need
34 to feel pretty comfortable that there was little risk involved because he did not want to see the
35 taxpayer"on the hook."
36
37 Councilmember Thuesen noted residents had asked if their taxes would be raised and he had
38 been saying"absolutely not." He wondered if the taxes could be raised with the use of general
39 obligation.
40
41 Councilmember Thuesen stated he felt relatively confident the negative scenario would not
42 "come knocking"; however, he was looking for a friendly option to minimize risks to the
43 residents.
44
45 Councilmember Sparks asked Ms. Kvilvang if she could give an approximate risk to the
46 residents. Ms. Kvilvang responded she did not currently have those numbers.
47
City Council Regular Meeting Minutes 07
September 9, 2.003
Page 6
1 Ms. Kvilvang noted the developer of the For Sale housing units anticipated a 12%profit on the
2 development. She explained, once the developer obtained this profit margin, a"pay back"
3 would be provided to the City, which would be a prorated share of this profit, and, if the project
4 profit exceeded 15%, the City's prorated share of the profit would be increased. She added the
5 proration of the profit sharing was still being negotiated and would be finalized by the next
6 Council meeting.
7
8 Ms. Kvilvang indicated a mutually agreed-upon preliminary development proformas for the For
9 Sale housing and commercial development would be attached as an exhibit to the Development
10 Agreement. She stated this would be the basis for determination of assistance for the
11 developments and the actual development proformas would be compared with the preliminary
12 development proformas when the developments were completed. She explained, if the projects
13 performed better than anticipated and the For Sale Developer received the required profit amount
14 of 12% and the Commercial Developer met the construction and lease goals, the excess proceeds
15 would be disbursed to the City as excess TIF and would be made available for Phase II and
16 Phase II developments within the TIF district.
17
18 Ms. Kvilvang stated the City would use its best efforts to obtain LCDA and Tax Base
19 Revitalization grant funding and any other available funding from Metropolitan, State and
20 Federal sources.
21
22 Ms. Kvilvang stated the purchase price of land for each use would be reviewed and must be
23 shown to be at market and similar to what other projects were paying.
24
25 Mr. Mornson asked if the TIF note being discussed was $7.5 million to $9 million. Ms.
26 Kvilvang responded three notes would probably be involved, as they would be based on the
27 individual components.
28
29 Mr. Mornson asked if she was proposing approximately$7.5 million. Ms. Kvilvang stated that
30 was correct.
31
32 Mr. Mornson asked if the City would have increments pay for any cost overrun. Ms. Kvilvang
33 stated that was correct.
34
35 Mr. Mornson asked who made payments on the first two years of the Fannie Mae loans. Ms.
36 Kvilvang responded the loans would be negotiated so payment would not be needed the first two
37 years.
38
39 Mr. Mornson asked if the purpose of the general obligation of the City was to give Fannie Mae
40 security. Ms. Kvilvang responded that was correct. She added it was the City saying they would
41 pay the tab if needed.
42
43 Ms. Kvilvang stated the City had a great development opportunity with an excellent
44 development team.
45
46 Councilmember Faust stated many items had been"hammered out"in the last two weeks and he
47 felt"we are almost there." He noted Council's concern regarding the general obligation should
City Council Regular Meeting Minutes 08
September 9, 2003
Page 7
1 be understood; however, he felt that could be handled. He added he saw many good things
2 coming with this development and he appreciated the work the two sides had accomplished.
3
4 Councilmember Thuesen stated it would be wonderful to see a face lift of the Cub building. ,He
5 asked if there was concern regarding Cub running out of debt in the future, as they had
6 maximized their debt load. He questioned if this could be kept a positive business asset with
7 money available to handle future projects such as repaving the parking lot, for example. Ms.
8 Kvilvang responded the team was confident Cub would keep a quality project based on their
9 finances.
10
11 Councilmember Horst noted there had been discussion concerning a co-op component. Ms.
12 Kvilvang replied there had been conversation regarding rehabilitation in the early discussions.
13 She stated those options would be considered if there was additional increment available. She
14 added it was not currently included.
15
16 Councilmember Horst noted Robert Muir would own the "business main street". He asked if it
17 would be leased as rental and not for sale. It was stated that was correct and the only exception
18 was the municipal liquor store.
19
20 Councilmember Horst asked about the two-part assessment. Ms. Kvilvang responded a$1.2
21 million assessment would be applied to Big Box and the remaining $500,000 to the smaller
22 commercials over a period of time. Councilmember Horst asked if the assessments would be
23 incorporated into the lease structure. It was noted that was correct.
24
25 Mayor Hodson thanked Ms. Kvilvang and the development team for an outstanding job. He
26 stated he was excited the City was getting close to having the TERM sheet come together and
27 changes being made with"buildings coming down and going up." He added the residents
28 wanted to see this project go forward.
29
30 John Herman, Faegre and Benson, stated he represented the Pratt-Ordway Group, along with the
31 Pratt and Hunt Groups, for the for-sale units. He noted the development team would be pleased
32 to come back between the current meeting and the September 23, 2003, meeting with all of the
33 details. He indicated Ms. Kvilvang had done a good job laying out the general parameters of the
34 Agreement.
35
36 Mr. Herman explained some of the elements of the terms would have certain parts of the project
37 done by the private developer and not by tax increment because of the structure of tax increment
38 statutes. He discussed applications of these elements.
39
40 Mr. Herman also gave information regarding the advantages of acquiring the Fannie Mae loan.
41 He noted the advantages to the project from a marketing point of view. He also reviewed the
42 risks versus the benefits to the City of following the proposed plan.
43
44 Mr. Herman felt,when all the elements were added together, the amount of risk to the City was
45 pretty small. He added the City also had the real estate that would be sold to the developer for
46 $1.25 million. He noted there were many economic factors that, on balance, gave the City a
City Council Regular Meeting Minutes 09
September 9, 2003
Page 8
1 great deal of security against not actually having to pay any money that would be transmitted
2 into a general obligation tax assessed against the taxpayers.
3
4 Mr. Herman stated one of the big breakthroughs was understanding the commitment the City did
5 have to the second phase. He noted that would allow acceleration of the townhouse element, in
6 particular, and the ability to begin earlier discussions regarding the senior component. Mr.
7 Herman added he expected to return to the September 23, 2003, Council meeting.
8
9 B. Resolution 03-076, re: EAW for the Northwest Quadrant area.
10
11 Todd Hubmer, WSB and Associates, stated he had received the Environmental Assessment
12 Worksheet that was completed for the St. Anthony Village Northwest Quadrant redevelopment
13 site. He noted the comment dates period ended September 3, 2003.
14
15 Mr. Hubmer provided copies of a letter and memo regarding comments received regarding an
16 EAW, a findings of fact regarding the need for an Environmental Impact Statement (EIS) and
17 the draft resolution calling for a negative declaration of need for an EIS. He also commented on
18 sources from which comments were received.
19
20 Mr. Hubmer indicated comments were received on the following: noise impact,particularly
21 along the Stinson Boulevard and 37"Avenue vicinity, which he felt could be resolved during the
22 final design and with the transportation plan for the site; comment regarding water quality
23 impact on Silver Lake brought by the Met Council, which he felt would be solved with this
24 project; trail connections with parks and retail site recommended by the Met Council.
25
26 Mr. Hubmer stated the comments received did not warrant an Environmental Impact Statement;
27 therefore, he suggested Council adopt Resolution 03-076 issuing a negative declaration
28 regarding the need for an Environmental Impact Statement for the St. Anthony Village
29 Northwest Quadrant redevelopment.
30
31 Motion by Councilmember Faust to adopt Resolution 03-076 issuing a negative declaration
32 regarding the need for an Environmental Impact Statement for the St. Anthony Village
33 Northwest Quadrant redevelopment.
34
35 Discussion:
36
37 Councilmember Sparks asked if Council should pass this resolution without reading it. Mr.
38 Hubmer responded, compared to other Environmental Assessment Worksheets, this one had
39 received very few comments. He added there was nothing found in this EAW that had not been
40 addressed in the previous EAW that had been prepared. He stated he was very comfortable
41 having Council pass the resolution at this time.
42
43 Motion carried unanimously.
44
45 C. Ordinance 03-012 re: Amending water connection permit and sewer connection permit
46 fees (1"reading).
47
City Council Regular Meeting Minutes 10
September 9, 2003
Page 9
1 Todd Hubmer,WSB and Associates, noted this item referred to the City's development charges
2 as they related to the sanitary sewer access charge (SAC) and water access charge (WAC). He
3 explained the City of St. Anthony currently collected fees from developers to connect to the
4 City's trunk sanitary sewer systems and water systems and the current fees charged were
5 approximately$150 for SAC and $200 for WAC. He added these charges were typically
6 collected from development as it occurred to pay for the trunk system improvements necessary
7 to serve new homes and businesses within the City. He stated, in addition, the Metropolitan
8 Council collected a SAC charge of$1,275 for each new sanitary sewer connection.
9
10 Mr. Hubmer recommended, based on a review of development anticipated within the next five
11 years in St. Anthony Village, the SAC charge be increased from $150 to $850 and the WAC
12 charge be increased from$200 to $450 for all new development and redevelopment in the City.
13
14 Mr. Hubmer indicated the increased fees from SAC and WAC were anticipated to cover the
15 costs to upgrade and improve the City's sanitary and water system for the purposes of
16 accommodating future redevelopment. He added the City's water and sewer utility fees would
17 cover maintenance activities and routine replacement of systems.
18
19 Motion by Councilmember Thuesen to approve the 1"reading of Ordinance 2003-012 relating to
20 fees, amending Section 615.07, Fee Nos. 7 and 10, of the St. Anthony Code as indicated.
21
22 Discussion:
23
24 Councilmember Horst asked if there was any need to move this forward and waive the second
25 and third reading. City Manager Mornson responded he did not think that was necessary, as a
26 public hearing was scheduled for the PUD and the intent was not only to capture SAC/WAC in
27 this development but also in another development in the southern part of the City.
28
29 Mayor Hodson suggested Council move forward with what was presented.
30
31 Motion carried unanimously.
32
33 Mr. Hubmer stated he wished to update Council on the recent item regarding the Kenzie Terrace
34 sanitary, sewer and water main project, which would be tied into the City of Minneapolis'
35 sanitary sewer system. He explained concerns had been raised by a few Minneapolis residents,
36 as a few homes in the affected part of Minneapolis had been missed when pre-notification of the
37 scheduled meetings had been issued. Mr. Hubmer indicated he had spent time with a Council
38 member from Minneapolis discussing the items of concern from the neighborhood and noted
39 there had been a lot of misunderstanding as to the need for the project.
40
41 Mr. Hubmer explained the need was because the sanitary sewer that served approximately 1/3 of
42 the City was in danger of not making it through another winter and major problems would occur
43 if there was a failure in the system. He noted Council'should forward any calls of inquiry or
44 concern to WSB and Associates.
45
46 Councilmember Thuesen asked Mr. Hubmer about this year's street project. He noted residents
47 had discussed concerns regarding being told no additional black dirt would be put down before
11
City Council Regular Meeting Minutes
September 9, 2003
Page 10
1 placing the sod. Mr. Hubmer responded the soil preparation was complete and the first phase of
2 laying the sod was commencing. He added additional black dirt was being provided to make
3 clean connections and because the first delivery of black dirt was unacceptable due to debris.
4
5 Councilmember Thuesen agreed the dirt being used was "pretty disgusting." Mr. Hubmer noted
6 the black dirt must be replaced if it did not meet performance specifications.
7
8 Mr. Hubmer indicated a construction bulletin was being sent out advising residents regarding
9 how to take care of their sod. He added the contractor was watering; however, any supplemental
10 watering would be a plus.
11
12 Councilmember Horst indicated the concern from the residents was that it was going to take a lot
13 of work to get that sod to grow with the soil that had been used. He stated residents felt it would
14 take years.
15
16 Councilmember Horst asked about the performance guarantee that indicated this sod would take
17 and the yards would come back to normal. Mr. Hubmer responded there was a two-year
18 warranty on the project and contractors had been brought back to do replacements on sod-related
19 and topsoil-related issues. He added there had been very few problems in the past.
20
21 VII. REPORTS FROM COMMISSIONS AND STAFF.
22 A. Resolution 03-075. re: Proposed 2004 tax leyy and budget in compliance with the Truth-
23 in-Taxation Act.
24 City Manager Mornson noted Resolution 03-075 was prepared by the City's Finance Director
25 setting the City's 2004 levy. He added the levy was impacted this year by changes made at the
26 State level which affected revenue the City received in the LGA program.
27
28 Mr. Mornson explained the City would receive $267,348 less in State Aid in 2004 than the City
29 was to receive in 2003. He noted the State was allowing cities to make up 60% of the loss in
30 revenue by authorizing levy increases. He indicated this would provide the City with$160,409
31 of the $267,348 reduction; however, there was no other authority given to cities to adjust for
32 inflation increases, cost of living increases, etc.
33
34 Mr. Mornson stated reductions would be implemented in budget line items, staff and the capital
35 equipment budget, along with a proposed 0% increase in salaries.
36
37 Mr. Momson indicated the property tax levy was $2.3 million, along with other special levies.
38 He added there was also an additional levy for the certificate of indebtedness for the fire
39 equipment certificate and lease revenue bonds for the public facilities projects approved earlier.
40
41 Finance Director Larson and Mr, Mornson also presented summaries of the general operating
42 fund budget.
43
44 Mr. Mornson stated staff recommended adoption of Resolution 03-075, which set the levy for
45 2004 as well as set the Truth-in-Taxation date for December 8, 2003, which could be the last
46 meeting of 2004. He added, if a second meeting were needed, it would be set for Monday,
47 December 15, 2003.
City Council Regular Meeting Minutes 12
September 9, 2003
Page 11
1 Motion by Councilmember Sparks to adopt Resolution 03-075 setting the City of St. Anthony
2 proposed 2004 tax levy and budget in compliance with the Truth-In-Taxation Act, establishing
3 the.Truth-in-Taxation date for December 8, 2003, and, if necessary, holding its reconvening.
4 hearing on December 15, 2003.
5
6 Motion carried unanimously.
7
8 VIII. REPORTS FROM CITY MANAGER AND COUNCILMEMBERS.
9 City Manager Mornson noted the closing of Stonehouse had been delayed for one week and
10 possibly would take place on the following Monday, with groundbreaking scheduled for 1:30 on
11 Tuesday at the site. He added the invitations had been submitted and were before Council for
12 review. He stated the owners of Spectators and Jim Winkels from Amcon would be the featured
13 speakers at the Chamber meeting.
14
15 Mr. Mornson indicated a meeting was held with the City's Metropolitan Council representative
16 regarding the grant submitted to the Local Communities Program. He stated there were $39
17 million in requests for funding from 35 communities and only$4 million was available. He
18 noted the City was working with its staff person and newly elected official to find the best
19 approach to make a presentation in front of the Local Communities Committee. He indicated
20 either Mayor Hodson or Councilmember Faust would make the presentation and, in addition, he
21 felt the developer and one of the City's consultants should be included. He stated October 10,
22 2003, and October 17, 2003, were the dates held aside for presentations in front of the
23 Committee and suggested a strategy meeting be held before that time.
24
25 Councilmember Horst indicated the Community Services Board met last Thursday and it was the
26 first meeting of the year, as the Board's year coincided with the school cycle. He stated the
27 major topic of discussion was looking at the Blueprint for a Brave Future for the school;
28 however, also reviewed was what is being called the parks and recreation function of
29 Community Services, which was funded by the "grandfather clause"that was taken out of the
30 State budget last year. He explained, in essence, the State cut off the Community Services'
31 ability to levy$54,000 a year in funding to have the parks and recreation functions, which
32 included everything from aquatics to scheduling the gym to scheduling park usage. He noted
33 Community Services was looking to the City to fund this parks and recreation function in the
34 future. He added most cities did fund their own parks and recreation function, and St. Anthony
35 had a unique situation having Community Services fund this function for the City. He indicated
36 funding continued through the next year and would end at that time. He stated at that time the
37 City would possibly need to establish its own funding; therefore, this issue should be considered
38 in context with the 2004 budget.
39
40 Councilmember Sparks asked to give her final report on Village Fest. She stated Mayor Hodson
41 had hosted the final party for the volunteers at his home and everyone was happy with how it
42 went. She noted it had been decided to go back to Central Park the following year. She
43 indicated a report from the treasurer indicated Village Fest operated at a loss this year, which had
44 not happened for a while. She added fundraising would need to be done with new vigor, as
45 contributions/revenue had been down.
46
47 Councilmember Thuesen stated he had no report.
City Council Regular Meeting Minutes 13
September 9, 2003
Page 12
1 Councilmember Faust suggested Mr. Morrison put Councilmember Horst's report regarding the
2 funding issues related to the parks and recreation function of Community Services on the goal-
3 setting agenda in January. Mr. Morrison replied it was on the"top burner" and there was a game
4 plan. He asked that time be given to work out the details and noted Finance Director Larson had
5 good information and was working on some of the numbers.
6
7 Councilmember Faust stated he had a chance to view the Pratt and Dominion apartments in New
8 Brighton. He indicated he was very impressed with what he saw and felt they were of high
9 quality. He explained the model he toured was a two-story townhouse that was entered from the
10 outside. He added the lady next door had been moving in with a dog. He recommended anyone
11 with the opportunity should look at the New Brighton townhouses, as they were a good primer of
12 what was coming to St. Anthony Village.
13
14 Mayor Hodson noted the next months would be busy. He stated he was proud of the Council for
15 pulling together to iron out all of the details for not just the Northwest Quadrant but also other
16 issues. He added it was.not just Council that made these things happen but also a team of
17 consultants, the Planning Commission, along with the developers. He stated he was very
18 grateful for the quality of staff and individuals available to help make the decisions.
19
20 IX. INFORMATION AND ANNOUNCEMENTS.
21 None.
22
23 X. MISCELLANEOUS INFORMATIONAL DOCUMENTS.
24 None.
25
26 XI. ADJOURNMENT.
27 Mayor Hodson adjourned the meeting at 8:41 p.m.
28
29
30
31 Respectfully submitted,
32
33
34 Marjorie R. Jenkins
35 Timesaver Off Site Secretarial, Inc.
36
37 Mayor
38
39 ATTEST:
40 City Clerk
41
Saint Anthony Village
DATE: . September 25, 2012 Approved:
TO: Mayor and Councilmembers
FROM: License Clerk
ITEM: License and Permits for Approval:
Heating& Air Conditioning License:
Centraire Heating& Air Conditioning, Eden Prairie, MN
Minnesota Heating, & Air Conditioning, Maple Grove, MN
Northland Mechanical Contractors,New Hope, MN
Swift Mechanical, Shoreview, MN
Motor Vehicle Starting License:
Applicant: Twin Cities Transport& Recovery
Location: 3201 Stinson Blvd
Rental License:
Applicant: Thomas Kringstad
Location: 2516 29`h Ave
Applicant: Highcrest Manor
Location: 3605 —3615 37h Ave
Applicant: The Landings
Location: 2551 38h Ave
Applicant: John Lam
Location: 3204—3206 39`h Ave
Applicant: Woubalem Birmachu
Location: 4096 Foss Rd
Applicant: Lang Nelson
Location: 2600 Kenzie Ter
Applicant: Lowry Grove
Location: 2501 Lowry Ave# C-19
Applicant: Highland Court
Location: 3800 Macalaster Dr
Applicant: Sandberg Family Partnership
Location: 3820 Macalaster Dr
Applicant: John Ondrechen
Location: 2906 Old Hwy 8
Applicant: Greg Steiner
Location: 3016 Old Hwy 8
Applicant: Penny Schneider
Location: 3923 Silver Lake Rd
Applicant: Equinox
Location: 2808 Silver Ln
Temporary 3.2 Beer Permit:
Date: . October 7, 2012
Applicant: Sharon Poland
Location: Central Park
14
Saint Anthony Village
DATE: September 23, 2003 Approved:
TO: Mayor and Councilmembers
FROM: Judy Monson, License Clerk
ITEM: License and Permits for Approval:
Contractors License
Lawrence Sign, St. Paul,MN
F.M. Frattalone Excavating& Grading, Inc.
Heating License
Century Heating, Maplewood, MN
Motor Vehicle Starting License
Twin Cities Transport&Recovery, 3201 Stinson Blvd
Murphy's Service Center, Inc., 3501 —29b Avenue NE
ACS FINANCIAL SYSTEM ST. ANTHONY VILLAGE
09/16/2003 10: Check Register GL540R-VO6.55 PAGE 1
BANK VENDOR CHECK# DATE AMOUNT
FIRS BREMER BANK NA
006964 ACCLAIM BENEFITS 20821 09/24/03 143.42
008242 AFFILIATED COMPUTER SERV 20822 09/24/03 104.54
008471 AIRGAS NORTH CENTRAL 20823 09/24/03 54.06
007252 ALBRECHT 20824 09/24/03 111.93
008967 ALL-WOOD PRODUCTS 20825. 09/24/03 25.00
005201 AMERICAN STORES 20826 09/24/03 4.09
008733 ANDERSON/MAURICE 20827 09/24/03 980.00
008450 ANIMAL CONTROL SERVICES, 20828 09/24/03 437.17
008909 ARCH WIRELESS 20829 09/24/03 21.81
008555 BIFFS, INC. 20830 09/24/03 547.64
008582 CALENDARS 20831 09/24/03 17.80
.00001 CARETTA/ROMINA 20832 09/24/03 40.00
002380 CENTERPOINT ENERGY MINNE 20833 09/24/03 943.27
004065 CENTRAL LOCK & SAFE CO 20834 09/24/03 47.93
008950 COMCAST 20835 09/24/03 4.67
004107 COMPTON'S COMMERCIAL CLN 20836 09/24/03 4,015.05
007382 CROWN FENCE & WIRE COMPA 20837 09/24/03 535.00
008966 CULVERS 20838 09/24/03 348.00
007178 D-ROCK CENTER & SMALL EN 20839 09/24/03 370.62
000807 DIAMOND VOGEL PAINTS 20840 09/24/03 97.13
000817 DON'S CAR WASH 20841 09/24/03 633.68
00002 DUNNE/PATRICIA 20842 09/24/03 17.42
008921 DYNAMEX 20843 09/24/03 13.36
008666 EASYLINK SERVICES CORPOR 20844 09/24/03 104.57
008618 EVENSON/TIM 20845 09/24/03 142.75
008221 FOSTER,WENTZELL,HEDBACK, 20846 09/24/03 5,000.00
008647 FRATTALLONE'S. HARDWARE 20847 09/24/03 70.55
001030 G & K SERVICES INC 20848 09/24/03 280.38
001145 GLENWOOD INGLEWOOD 20849, 09/24/03 47.93
001250 GRAINGER INC/W W 20850 09/24/03 41.17
008709 HALL/SUSAN M.H. 20851 09/24/03 32.04
001420 HAWKINS WATER TREATMENT 20852 09/24/03 756.19
008944 HENN CNTY INFO TECH DEPT 20853 09/24/03 1,605.66
.00003 HOLDEN/PETER 20854 09/24/03 2.14
008252 HOME DEPOT-GECF 20855 09/24/03 33.82
001545 HOOVER WHEEL ALIGNMENT 20856 09/24/03 34.95
002040 LILLIE SUBURBAN NEWSPAPE 20857 09/24/03 288.00
008855 MACRO GROUP, INC. 20858 09/24/03 400.00
.00004 MAY/DAVID 20859 09./24/03 11.15
00005 MAY/THOMAS 20860 09/24/03 8.88
007835 METROCALL 20861 09/24/03 243.46
008905 MINNESOTA DEPARTMENT OF 20862 09/24/03 20.00
.00009 MURPHY RIGGING AND 20863 09/24/03 334.00
00006 NATIONAL ASSOCIATION OF 20864 09/24/03 70.00
008761 NRG PROCESSING SOLUTIONS 20865 09/24/03 58.50
000045 OFFICE DEPOT 20866 09/24/03 302.19
001230 ONE CALL CONCEPTS, INC. 20867 09/24/03 102.30
008528 PACE ANALYTICAL SERVICES 20868 09/24/03 285.00
ACS FINANCIAL SYSTEM ST. ANTHONY VILLAGE
09/16/2003 10: Check Register GL540R-V06.55 PAGE 2
BANK VENDOR CHECK# DATE AMOUNT
FIRS BREMER BANK NA
008631 PARTS PLUS ROSEVILLE 20869 09/24/03 11.31
008805 PETTY CASH - BREMER BANK 20870 09/24/03 88.19
004372 PLUNKETT'S 20871 09/24/03 86.26
004492 QWEST 20872 09/24/03 239.18
008372 QWEST INTEPRISE AMERICA, 20873 09/24/03 49.95
008984 ROMTEC 20874 09/24/03 75,380.00
002420 STAR TRIBUNE 20875 09/24/03 421.80
003490 STREICHER'S 20876 09/24/03 56.30
007337 TIMESAVER OFF SITE SECRE 20877 09/24/03 215.24
008859 U.S. BANK 20878 09/24/03 3,448.75
.00007 VAHLE/PAUL 20879 09/24/03 10.42
008227 VERIZON WIRELESS, BELLEV 20880 09/24/03 326.17
003700 VIKING INDUSTRIAL CENTER 20881 09/24/03 42.73
004494 WASTE MANAGEMENT - BLAIN 20882 09/24/03 402.21
.00008 WESTRUM/BARBARA 20883 09/24/03 12.56
008919 WINGFOOT COMMERCIAL TIRE 20884 09/24/03 548.48
002680 XCEL ENERGY 20885 09/24/03 15,569.53
BREMER BANK NA 116,698.30 ***
ACS FINANCIAL SYSTEM ST. ANTHONY VILLAGE
09/16/2003 15: Check Register GL540R-V06.55 PAGE 1
BANK VENDOR CHECK# DATE AMOUNT
LIQR LIQUOR CHECKING ACCOUNT
008964 ACCLAIM BENEFITS 22363 09/24/03 100.08
004293 BELLBOY CORP. 22364 09/24/03 309.92
002380 CENTERPOINT ENERGY MINNE 22365 09/24/03 118.42
004080 CHISAGO LAKES DIST. CO., 22366 09/24/03 768.00
004086 CITY OF ST. ANTHONY 22367 09/24/03 93,750.00
008814 CITY WIDE WINDOW SERVICE 22368 09/24/03 10.65
008557 DAILEY DATA & ASSOCIATES 22369 09/24/03 295.16
004110 DICKSON ELECTRIC 22370 09/24/03 180.00
004120 EAGLE WINE CO 22371 09/24/03 1,136.99
004125 EAST SIDE BEVERAGE CO 22372 09/24/03 2,477.50
008647 FRATTALLONE'S HARDWARE 22373 09/24/03 5.70
004175 GRIGGS COOPER & CO INC 22374 09/24/03 15,556.28
004207 HOHENSTEIN'S, INC 22375 09/24/03 611.45
008438 INSIGNIA SYSTEMS, INC. 22376 09/24/03 133.13
004220 JOHNSON BROTHERS LIQUOR 22377 09/24/03 9,459.87
004230 KUETHER DISTRIBUTING CO 22378 09/24/03 17,199.75
002040 LILLIE SUBURBAN NEWSPAPE 22379 09/24/03 230.00
004265 MARK VII SALES INC 22380 09/24/03 6,812.75
005010 MINN CONWAY FIRE & SAFET 22381 09/24/03 36.73
008881 MINNESOTA WINEGROWERS 22382 09/24/03 83.00
004354 PAUSTIS & SONS 22383 09/24/03 344.00
004360 PHILLIPS WINE & SPIRITS 22384 09/24/03 8,587.14
004361 PINNACLE DIST. 22385 09/24/03 622.46
004376 PRIOR WINE CO 22386 09/24/03 930.12
004385 QUALITY WINE CO 22387 09/24/03 1,941.98
008219 QWEST DEX 22388 09/24/03 330.71
008152 TIRES PLUS OF APACHE 22389 09/24/03 136.32
004494 WASTE MANAGEMENT - BLAIN 22390 09/24/03 290.40
008310 WINE MERCHANTS INC 22391 09/24/03 627.72
002680 XCEL ENERGY 22392 09/24/03 2,955.02
008986 YELLOW BOOK USA 22393 09/24/03 550.00
003840 ZEP MFG COMPANY 22394 09/24/03 71.61
LIQUOR CHECKING ACCOUNT 166,662.86 ***
y
18
CITY OF ST. ANTHONY VILLAGE
RESOLUTION 03 - 079
A RESOLUTION RELATING TO THE NORTH
SUBURBAN MUTUAL AID ASSOCIATION
WHEREAS, the St. Anthony Fire Department is one of 33 fire departments making up the
North Suburban Mutual Aid Association; and
WHEREAS, fire departments have found that they are unable to request and collect
reimbursement funds from F.E.M.A.; and
WHEREAS, over the past several months, many mutual aid agreements have been under
review to incorporate language to allow invoicing services after a specific amount
of time to:
1. Provide the capability to charge for reimbursable expenses in rendering aid to
another community from an extended event,
2. Have the ability to have said expenses to be reimbursable from a Declared Federal
Disaster Designation, and
3. Maintain the original intention of the agreement to be a reciprocal agreement for
most incidents when aid is rendered to another communities' fire department.
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of St. Anthony
hereby approves the amended contract with the North Suburban Mutual Aid Association,
attached herewith.
Adopted this day of , 2003.
Mayor
ATTEST:
City Clerk
Reviewed for Administration:
City Manager
19
REQUEST FOR COUNCIL ACTION
TO: MICHAEL J.MORNSON
FROM: JOEL A.HEWTTT J, L
SUBJECT: NORTH SUBURBAN MUTUAL AID CONTRACT
DATE: 9/16/2003
CC: CITY CLERK
BACKGROUND:
The North Suburban Mutual Aid Association,of which we are a member,is comprised of 33 fire
departments in Northern Hennepin,Anoka.and Sherburne counties.Who through this agreement
agree to provide assistance with resources to departments who find need of additional resources
mitigating an incident or multiple incidents.
From the inception of this and other like agreements the contract has been a reciprocal arrangement
with no reimbursement for rendering aid to the requesting department.When incidents have become
or have been a part of a disaster and a designation for the event to be declared a federal or part of a
Federal Disaster Declaration designation.The issue under the reciprocal mutual aid contract,is that
fire departments are finding them to be in a position in being unable to request and collect
reimbursement of funds from F.E.M.A. disaster appropriations.This is due to the fact the agreement
is currently only a reciprocal agreement and contains no language for invoicing for services rendered
to other aid requesting agencies.
Over the past several months many mutual aid agreements have been under review to incorporate
language to allow the invoicing of services after a specific amount of time to:
1)Provide the capability to charge for reimbursable expenses in rendering aid to another community
from an extended event
2)To have the ability to have these said expenses to be reimbursable from a Declared Federal
Disaster Designation and
3)And last to maintain the original intend of the agreement to be a reciprocal agreement for most
incidents when aid is rendered to another community's fire department.
The North Suburban Mutual Aid Association formed a committee to specifically research this issue
and to incorporate language into our respective agreement. (revised agreement attached).The
committee reported to the Association and recommended the threshold of time for non-
reimbursable would be 12 hours.All time incurred after 12 hours could be invoiced to the requesting
agency.The reimbursable fee schedule would be the schedule currently used by the Minnesota
Department of Natural Resources.Which is being used as a standard of charges by many Mutual Aid
associations across the state who have or are currently revising their agreements for this purpose of
collecting disaster appropriations.
2®
PROPOSAL:
My proposal to.the City Council is to move to approve the attached revised Contract between the
City of St.Anthony and the North Suburban Mutual Aid Association.To provide the ability to
invoice charges to requesting agencies of our services from the St a Anthony Fire Department after a
12 hour period.In order to be eligible to recover costs associated with a Declared Federal Disaster.
2
21
North Suburban Regional Mutual Aid Association
Mutual Aid Agreement
Purpose
This agreement is made pursuant to Minnesota Statutes 471.59 which authorize the joint and
cooperative exercise of powers common to contracting parties. The intent of this agreement is to
make equipment, personnel and other resources available to political subdivisions from other
political subdivisions.
Definitions
1. "Party" means a political subdivision.
2. "Requesting Official"means the person designated by a Party who is
responsible for requesting Assistance from other Parties.
3. "Requesting Party" means a party that requests assistance from other parties.
4. "Responding Official" means the person designated by a party who is responsible
to determine whether and to what extent that party should provide assistance to
a Requesting Party.
5. "Responding Party" means a party that provides assistance to a Requesting Party.
6. "Assistance" means fire and/or emergency medical services personnel and
equipment.
Procedures
1. Request for assistance. Whenever, in the opinion of a Requesting Official,
there is a need for assistance from other parties, the Requesting Official may call
upon the Responding Official of any other party to furnish assistance.
2. Response to request. Upon the request for assistance from a Requesting.Party,the
Responding Official may authorize and direct his/her party's personnel to provide
assistance to the Requesting Party. This decision will be made after considering the
needs of the responding party and the availability of resources.
3. Recall of Assistance. The Responding Official may at any time recall such
assistance when in his or.her best judgment or by an order from the governing body
of the Responding Party, it is considered to be in the best interests of the
Responding Party to do so.
4. Command of Scene. The Requesting Party shall be in command of the mutual aid
scene. The personnel and equipment of the Responding Party shall be under the
direction and control of the Requesting Party until the Responding Official
withdraws assistance.
22
Workers' compensation
Each party shall be responsible for injuries or death of its own personnel. Each,party will
maintain workers' compensation insurance or self-insurance coverage, covering its own
personnel while they are providing assistance pursuant to this agreement. Each party waives the
right.to sue any other party for any workers' compensation benefits paid to its own employee or
volunteer of their dependants, even if the injuries were caused wholly or partially by the
negligence of any other party or its officers, employees, or volunteers.
Damage to equipment
Each party shall be responsible for damages to or loss of its own equipment. Each parry waives
the right to use any other party for any damages to or loss of its equipment, even if the damages
or losses were caused wholly or partially by the negligence of any other party or its officers,
employees, or,volunteers.
Liability
1. For the purposes of the Minnesota Municipal Tort Liability Act (Minn. Stat. 466)
the employees and officers of the Responding Party are deemed to be employees(as
defined in Minn. Stat. 466.01, subdivision 6) of the Requesting Party.
2. The Requesting Party agrees to defend and indemnify the Responding Party against
any claims brought or actions filed against the Responding Party or any officer,
employee, or volunteer of the Responding Party for injury to, death of, or damage to
the property of any third person or persons, arising from the performance and
provision of assistance in responding to a request for assistance by the Requesting
.Party pursuant to this agreement.
Under no circumstances, however, shall a party be required to pay on behalf of
itself and other parties, any amounts in excess of the limits on liability established in
Minnesota Statutes Chapter 466 applicable to any one party. The limits of liability
for some or all of the parties may not be added together to determine the maximum
amount of liability,for any party.
The intent of this subdivision is to impose on each Requesting Party a limited duty
to defend and indemnify a Responding Party for claims arising within the
Requesting Party's jurisdiction subject to the limits of liability under Minnesota
Statutes Chapter 466. The purpose of creating this duty to defend and indemnify is
to simplify the defense of claims by eliminating conflicts among defendants, and to
permit liability claims against multiple defendants from a single occurrence to be
defended by a single attorney.
3. No party to this agreement nor any officer of any Party shall be liable to any other
Party or to any other person for failure of any party to furnish assistance to any other
party, or for recalling assistance,both as described in this agreement.
23
Charges to the Requesting Party
Subd. 1. No chargesvill be levied by a Responding Party to this agreement for assistance
rendered to a Requesting Party under the terms of this agreement unless that assistance continues
for a period of more than ten(10) hours, or as provided in Subd. 2. If assistance provided under
this agreement continues for more than ten(10)hours,the Responding Parry will submit to the
Requesting Party an itemized bill for the actual cost of any assistance provided after the initial
ten(10)hour period, except as provided in Subd. 2, including wages for personnel, materials and
supplies, and other necessary expenses; and the Requesting Party will reimburse the party
providing the assistance for that amount.
Subd. 2. The Responding Party shall submit to the Requesting Party an itemized bill for
expendable materials which shall include, but shall not be limited to.foam concentrate; hazardous
materials supplies such as absorbent booms and pads, hazmat suits, etc.; and misc. expenses such
as cellular phone air time, and any other extraordinary expense for incidents where assistance is
not more than ten(10)hours and the Requesting Party will reimburse the party providing the
assistance for that amount.
Subd. 3. Such charges are not contingent upon the availability of federal or state government
reimbursement funds.
Duration
Any party may withdraw from this agreement upon thirty(30) days written notice to the other
party or parties to the agreement.
Execution
Each party hereto has read, agreed to and executed this Mutual Aid Agreement on the date
indicated.
Fee schedule will be consistent with the most recent Minnesota Department of Natural Resources
Fire Department Equipment Rate Schedule, and the most recent Federal Emergency
Management Agency rate schedule for equipment,and apparatus. Where there is a conflict in the
rate schedules for similar equipment, it shall be decided in favor of the higher rate. The cost of
wages for personnel shall be actual costs including hourly wage or salary and benefits. The cost
of expendable supplies shall be the cost for replacement to the Responding Party. The cost of
misc. expenses shall actual costs to the Responding Party.
Date Entity
By
Fire Chief
Date Entity
By
Governing Authority
24
CITY OF ST. ANTHONY VILLAGE
RESOLUTION 03 - 078
A RESOLUTION APPROVING ELECTION
JUDGES FOR THE 2003 LOCAL ELECTION
WHEREAS, Council approval is required in the selection of election judges; and
WHEREAS, the following individuals have submitted application to the City Clerk to be
Election Judges for the November 4, 2003 Local Election:
Name Address
Precinct 1 Hennepin
Louise Inhofer, Chair 2501 Lowry Ave NE, 0-14
Elaine Gorshe 2821 Stinson Boulevard
Leslie LaCount 3017 Crestview
Mary Schwaab 2913 Stinson Boulevard
Linda Gooden 2605 West Armour Terrace
Precinct 2-Hennepin
Kathlyn Clemens, Chair 3412 Edward Avenue
Nancy Klucas 3529 Roosevelt Street
Virginia Baggenstoss 3104 Wilson Street
Carol Panning 3205 Townview Avenue
Betty Toy 3633 Belden Drive
June Stuhr 3403 Maplewood Drive
Precinct 1 Ramsey
James Paul, Chair 3739 Foss Road
Donna Kripotos 3601 Harding Street
Mary Bauer 4000 Foss Road, #103
25
Marjorie Dow 4081 Foss Road
Boy Toy 3633 Belden Drive
Office staff will assist with absentee voting- Judy Monson, Barb Suciu, Sandy Simon, and Gem
Harrier.
Adopted this day of , 2003.
Mayor
ATTEST:
City Clerk
Reviewed for Administration:
City Manager
26
CITY OF ST. ANTHONY
ORDINANCE 2003-012
AN ORDINANCE RELATING TO FEES, AMENDING
SECTION 615.07,FEE NOS. 7 AND 10, OF THE
ST. ANTHONY CODE
The City Council of the City of St. Anthony hereby ordains:
Section 1. Section 615.07, Number 7 and Number 10 is amended to read as follows:
Fee Code
No. No. Purpose of Fee Amount
7 1000.03 Water connection permit $450.00
10 1005.01 Sewer connection permit Residential $850.00
Commercial/
Industrial
Section 2. This ordinance shall become effective as of the date of its publication.
First Reading: September 9, 2003
Second Reading: September 23, 2003
Adopted:
Mayor
ATTEST:
City Clerk
Publish: St. Anthony Bulletin
27
gates,Inc..
August 21, 2003.
Honorable Mayor, City Council, and City Staff
City of St. Anthony
3301 Silver Lake Road NE
.`- St. Anthony, MN 55418
r Re: Proposed Increases to the City of St. Anthony's SAC/WAC Charges
WSB Project No. 1065-86
Dear Mayor, City Council, and Staff:
This letter is provided to you for discussion on the City's current development charges as it
relates to the sanitary sewer access charge (SAC) and water access charge (WAC). The City
of St. Anthony currently collects fees from Developers to connect to the City's trunk sanitary
sewer systems and water systems. The current fees charged by St. Anthony Village are
approximately$150 for SAC and $100 for WAC. These charges are typically collected from
development as it occurs to pay for the trunk system improvements necessary to serve new homes and businesses within St. Anthony Village. In addition, the Metropolitan Council
collects a SAC charge of$1,275 for each new sanitary sewer connection.
The northwest quadrant and southern portions of St. Anthony Village are anticipated to
redevelop, which will require trunk sanitary sewer and water system improvements. The
October 2002 sanitary sewer and water system plan updates completed by WSB for St.
Anthony Village identified approximately $2.2 million in sanitary trunk system improvements
and'$1.1 million in water system improvements that are needed to accommodate the
redevelopment activities proposed in St. Anthony Village. In light of these costs, it is
proposed that the SAC and WAC charges in St. Anthony Village be adjusted for proposed
redevelopment areas to collect the revenue necessary to complete these system improvements.
+ Based on a review of development anticipated within the next five (5) years in St. Anthony
Village, it is recommended that the SAC charge be increased from$150 to $850, and the
WAC charge be increased from$200 to $450 for all new development and redevelopment in
the City.
The increased fees from SAC and WAC are anticipated to cover the costs to upgrade and
a15 Y improve the City's.sanitary and water system for the purposes of accommodating future
Me : redevelopment. Maintenance activities and routine replacement of systems will be covered by
the City's water and sewer utility fees.
Suit
C
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i
�7 -
r
763 ®s Minneapolis St. Cloud • Equal Opportunity Employer F.IWPWIM1065-861082103-hmcc.doc
Honorable Mayor, City Council,and City Staff 28
August 21,2003
Page 2
G The purpose of this letter is to provide the Council a format to discuss a possible increase in
the SAC and WAC charges to accommodate the impact of redevelopment on the City's
infrastructure. Should the Council desire to go forward with the proposed increases in the
SAC and WAC charges, the City's attorney will draft up the necessary resolution to adjust the
rate schedule in accordance with the City's ordinances. If you have any questions, I will be
available at the August 26 Council meeting to discuss them, or please call me at 763-287-
7182.
Sincerely,
WSB &Associates, Inc.
Todd E. Hubmer,P.E.
Associate
Attachments
lh/sm
F:I WPWI1V11065-861082103-hmcc.doc
29
CITY OF ST. ANTHONY VILLAGE
RESOLUTION 03 - 080
A RESOLUTION APPROVING A VARIANCE FOR
NORTHGATE CONDOMINIUM OWNER'S ASSOCIATION,
AT 2500 HIGHWAY 88
WHEREAS, Northgate Condominium Owner's Association has submitted a 3 foot setback
variance from the roadway to allow for an identification ground sign; and
WHEREAS, a public was held by the Planning Commission on September 16, 2003 to consider
said request; and
WHEREAS, the Planning Commission has recommended Council approval of said request due
to applicant's adherence to conditions 1-3 of the Petition for Sign Variance and
noting the hardship requirement is met due to the triangular shape of the lot; and
that prior to permit approval a landscaping plan will need to be provided by the
applicant, with landscaping to occur spring, 2004.
NOW, THEREFORE,BE IT RESOLVED, that the City Council of the City of St. Anthony
hereby approves the request for a 3 foot setback from the Northgate Condominium Owner's
Association which would allow a ground sign at 2500 Highway 88,based on the findings ad
conditions as set forth by the Planning Commission.
Adopted this day of 12003.
Mayor
ATTEST:
City Clerk
Reviewed for Administration:
City Manager
30
MEMORANDUM
DATE: 09/09/03 MEETING DATE: 09/16/03
TO: Planning Commission Members
FROM: Susan M.H. Hall, Assistant City Manager
SUBJECT: Northgate Office Park Ground Sign
Requested Action:
Northgate Office Park, located at 2500 Highway 88, has submitted a sign variance
request for a proposed ground sign. The variance request is for a three-foot setback
variance to allow for a 12-foot setback from the roadway.
Background:
In July, the applicant proposed a pylon sign for the front of their building. At that time,
the applicant also presented other variance requests. In July, the City Council denied
the application because it veered too far from the City's sign ordinance.
This time, the applicant is returning to the City with an application for a ground sign and
is asking for one variance for a three-foot setback variance from the roadway to allow
for a 12-foot setback. The variance request is necessary because city ordinance states
that ground signs be located at least 15 feet from any street or other easement. The
applicant states this setback is from the east property line and is necessary so the-sign
does not interfere with traffic flow.
The applicant states that no further signage are proposed is the foreseeable future and
the unsightly former drive up teller, which occupied 'a portion of the lot, has been
removed. City staff sees this as an improvement to the site.
The application states "interior lighting by means of six vertical fluorescent high-output
tubes mounted vertically on twelve-inch centers is proposed. Lighting is anticipated to be
from dusk to midnight." It will need to be clarified if this lighting mentioned is for the
inside of the sign, or what the applicant is referring to.
Finally, the applicant states landscaping will be essentially unchanged except for the
addition,of small shrubs or bushes around the base of the sign support. On the current
sign plan, landscaping is not shown. The City will require a landscape plan prior to
building permit approval. Ground signs must be landscaped. Landscaping may consist
of shrubs, plants, rocks, or other decorative materials located around the pedestal. On
the last plan, the applicant proposed minimal landscaping. The petitioners' showed the
proposed sign with a shrub, evergreen tree, and decorative rock distanced a part from
the sign. The idea is the landscaping should surround the base of the ground sign.
31
Page 2— Northgate Office Park Ground Sign
Staff Recommendation:
The applicant has presented a ground sign that is aesthetically pleasing and meets city
ordinance requirements. Staff recommends approval of the variance request with the
following condition:
• Prior to building permit approval, the applicant will submit a landscaping plan for
the ground sign.
Attachments:
• Application for Sign Variance
• Northgate Office Park Sign Plan
f 1
32
Northgate Office Park
2500 New,Brighton Blvd.
St. Anthony MN 55418
August 19, 2003
To; City of St. Anthony
Re: Sign Variance request
Item 1. The proposed sign conforms to all the parameters of the current sign ordinance except for the
required fifteen foot setback from our property line. In order to avoid hindering ingress to and egress
from our parking lot, we would like to place it as close as possible to the east edge of the lot, twelve feet
from our east property line.
Comprehensive Sign Plan: No further signage is planned in the foreseeable future and the unsightly
former driveup teller which currently occupies a portion of our lot has been removed.
Lighting: Interior lighting by means of six vertical fluorescent high-output tubes mounted vertically on
twelve inch centers. Lighting is anticipated to be from dusk to midnight.
Landscaping: Will remain essentially unchanged except for the addition of small shrubs or bushes
around the base of the sign support.
Sincerely,
E. J. (Jerry) Kellgren
Building Manager
33
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34
CITY OF ST. ANTHONY VILLAGE
AMENDMENT OF RESOLUTION 03 -073
A RESOLUTION APPROVING AN AMENDMENT TO THE
COMPREHENSIVE SIGN PLAN FOR THE
ST. ANTHONY SHOPPING CENTER
WHEREAS, at a public hearing held on August 19, 2003,the St. Anthony Planning Commission
considered a request by the owners of the St. Anthony Shopping Center for an
amendment to the Comprehensive Sign Plan for the St. Anthony Shopping Center; and
WHEREAS, the petitioner's amendment request is to add the following to the Plan:
1. The signage is in substantial conformance with Tenant's internal sign criteria and
specifications.
2. The total width of the sign shall not exceed 80 percent of the Tenant's storefront width.
3. The sign height shall be a minimum of 16 inches and maximum of 40 inches.
4. Sign color or colors are those found on typical retail signage in the Minneapolis/St. Paul
area.
5. Tenant submits two drawings for Lessor's written approval.prior to fabrication of signs.
6. Lessor approves Tenant's sign contractor.
WHEREAS, at a public hearing held on September 16, 2003,the St. Anthony Planning Commission
recommended Council approval of the following addition to the Plan:
7. Lettering may be yellow in color.
WHEREAS, the Planning Commission has recommended Council approval of said request.
NOW, THEREFORE, BE IT RESOLVED,that the City Council of the City of St. Anthony hereby
approves said requests for amendments to the Comprehensive Sign Plan for the St. Anthony Shopping
Center.
Adopted this day of 92003.
Mayor
ATTEST:
City Clerk
Reviewed for Administration:
City Manager
35
MEMORANDUM
DATE: 09/09/03 MEETING DATE: 09/16/03
TO: Planning Commission Members
FROM: Susan M.H. Hall, Assistant City Manage
SUBJECT: St. Anthony Shopping Center Sign Plan Amendment
Requested Action:
September 16 is the rehearing for the St. Anthony Shopping Center, LLC,
comprehensive sign plan amendment request. On August 19, the Planning Commission
held the initial public hearing on said request. On August 26, the City Council referred
the issue back to the Planning Commission for further study and evaluation. It was
hoped that a compromise could be reached between the St. Anthony Shopping Center
and the City.
Background:
St. Anthony Shopping Center recently signed leases with two tenants that have regional
and national scope: Bumper to Bumper and Subway. According to the petitioner, the
current comprehensive sign plan does not provide sufficient flexibility of sign design to
accommodate regional and national tenants that have logo signage for all their
locations. For this reason, the petitioner has requested an amendment to the St.
Anthony Shopping Center's comprehensive sign plan to allow for logo signs which
deviates from what is currently allowed.
On August 26, the City Council discussed the petitioner's request and overall, made the
determination the proposed logo signage does not fit well into the existing shopping
center sign signage for a consistent look (see minutes attached). It was felt that the
proposed signage should be closer to the original criteria. One concern was the
proposed logo signage is all one piece versus individualized lettering.
One Councilmember's idea for the Subway sign, for instance, was to have individualized
lettering in their styled form. Or in the case of Bumper to Bumper, perhaps a way to
present it might be to have a small logo sign next to the words "Auto Parts" with
individual letters, like the rest of the shopping center. A concern raised by the St.
Anthony Shopping Center owner is how to put criteria, such as this, into a
comprehensive sign plan amendment to cover these tenants and future tenants that
want logo signs. The shopping center owner also asked, will each new tenant that wants
a logo sign need to come in front of the Planning Commission and/or City Council for
approval on a case by case basis. How can you write criteria to cover each possible logo
sign scenario? The other concern for the shopping center is they have a signed lease
with Subway, who has stated they will not go into the Center until their logo signage is
up. Hence, the shopping center owner is asking to expedite matters for this reason.
In July, the petitioner outlined the following criteria for the proposed comprehensive sign
plan amendment:
36
Page 2 - St. Anthony Shopping Center Sign Plan Amendment
In July, the petitioner outlined the following criteria for the proposed comprehensive sign
plan amendment:
1) The signage is substantial conformance with Tenant's internal sign criteria and
specifications.
2) The total width of the sign shall not exceed 80 percent of the Tenant's storefront
width.
3) The sign height shall be a minimum of 16 inches and maximum or 40 inches.
4) Sign color or colors are those found on typical retail signage in the
Minneapolis/St. Paul area.
5) Tenant submits two drawings for Lessor's written approval prior to fabrication of
signs.
6) Lessor approves Tenant's sign contractor.
The question at this point is how to work in the individual nuances with criteria, such as
stated above, to cover the two new tenants, Subway and Bumper to Bumper, with
possible future tenants in a comprehensive sign plan amendment.
Staff Recommendation:
Staff recommends the Planning Commission work with the St. Anthony Shopping Center
owner to come up with a compromise sign plan amendment for the City Council to
consider at its September 23 meeting.
38
MEMORANDUM
DATE: 09/09/03 MEETING DATE: 09/16/03
TO: Planning Commission Members
FROM: Susan M.H. Hall, Assistant City Manager
SUBJECT: Apache Redevelopment
Requested Action:
September 16 is the public hearing on the preliminary development plan and preliminary
plat for entire project area and final development plan and final plat for the retail portion
of the Northwest Quadrant Redevelopment, generally known as the Apache Plaza Mall
with the property boundaries being Silver Lane to the north; Silver Lake Road to the
east; Soo Line Railroad Right-of-Way to the south; and Stinson Boulevard to the west.
Background:
In August, Apache Redevelopment, LLC, submitted their Planned Unit Development
(PUD) application to the City (see attached). The Apache Redevelopment, LLC,
development team consists of Pratt Ordway Properties, Robert Muir Company,
Dominium, Inc., and Hunt Associates.
The City's Planning Consultant, DSU, has reviewed the PUD application and provided
comment (see attached). Overall, DSU found the application to be complete.
DSU has prepared a staff report outlining the public hearing and other points of
information (see attached). John Shardlow will be present at the September 16 pub_ lic
hearing.
39
INCORPORAT.
MEMO
DATE: August 28, 2003
To: Sue Hall, Assistant City Administrator, City of St. Anthony Village
Todd Hubmer, City Engineer, WSB &Associates, Inc.
FROM: John W. Shardlow, DSU
Ellen Berkelhamer, DSU
SUBJECT: Village at St. Anthony—Application Review
DSU has reviewed the Village at St. Anthony PL D application for completeness, using the
City's PUD application checklist as our guide. We find the application to be complete for the
Preliminary PUD, subject to confirmation by the City Administrator's office and City Engineer
of the items that DSU has recommended for waiver. Furthermore, we believe that the plans
submitted for the retail portions of the Preliminary PUD meet the criteria necessary for
consideration as the Final Plan, subject to submission of record copies of these drawings labeled
as Final Plan documents.
The issues needing confirmation are listed below and are referenced to the applicable checklist
item:
PRELEMEINARY PLAN STAGE
General Information
4. Evidence that the applicant has sufficient control over the subject property.
DSU has not seen this documentation but we assume that it has been reviewed by the
City Administrator's office, City Attorney, and/or other City consultants, such as
Ehlers Associates. The City should confirm that this information is on file.
Present Status
3. A map depicting all land within 1,000'; location of existing streets, property lines,
City of St. Anthony Village 40
Village at St. Anthony—Application Review
Page 2
easements; water mains and storm and sanitary sewers, on and within 100' of the
property.
The submittal included a vicinity map which is not to scale but shows the site in
context with an area greater than 1,000'. In terms of the information requested within
100', Todd should confirm that the documents contain sufficient information.
Site Conditions
3. Slope Analysis
The submitted information shows topography, not a slope analysis. We would
recommend waiving this requirement in light of the flat, fully developed nature of the
subject property. Todd should confirm whether this is the case.
4. Location and extent of water bodies, wetlands, streams and floodplains within 300' of
the property.
DSU has not seen this information for properties within 300' of the property but we
assume it is not applicable (as the shoreline of Silver Lake is further away). Todd
should confirm whether this is the case.
5. Significant rock outcroppings.
We believe this to be not applicable. Todd should confirm.
6. Existing drainage patterns.
Todd should confirm whether this information is complete.
7. Vistas and significant views
The developer will present a straight line view, from Silver Lake Road toward the
parking lot edge and on to the Discount Retail building, to the Planning Commission
at the public hearing. This item is therefore waived from being required as part of the
actual application submittal.
8. Soil conditions as they affect development.
In our judgment,this information could be waived given site conditions. Todd should
confirm the information he will need to review the grading and erosion control plans.
DAHLGREN, SHARDLOW AND UBAN,INC. • 300 1ST AvE.N. • SUITE 210 • MINNEAPOLIS,MN 55401
PHONE: 612-339-3300 • FAX: 612-337-5601 • WWW.DSUPLAN.COM
City of St. Anthony Village 41
Village at St. Anthony—Application Review
Page 3
Proposed Preliminary Plan
o Statement describing the provision for the care and maintenance of public or common
open space or service facilities.
The Design Framework Manual provides a statement that this information will be
included in the PUD Agreement, including a list of responsibilities of homeowners
association(s) and/or commercial property owners to provide landscape maintenance,
snow removal,trash and recycling pick-up, and so forth.
• Restrictive covenants that are to be recorded for property in the PUD.
This will be included in the PUD Agreement.
FINAL PLAN STAGE
The Preliminary Plan and Plat documents have been-submitted with a level of detail that
is appropriate for Final Plan documents for the retail portions of the site plan. However,
the record documents should be relabeled as "Final Plan', "Final Plat," etc. The one
item that DSU has previously noted as not having been furnished is the Drainage and
Erosion Control Plan. This item is waived from the application requirement in favor of
requiring the review and approval by the City Engineer as a condition of approval of the
PUD, in addition to the subsequent approval of an NPDES permit and a permit from the
Rice Creek Watershed District.
Upon consent by the City Administrator and City Engineer on the items that DSU has
recommend for waiver and receipt of record copies of the labeled Final Plan documents, we
believe the Village at St. Anthony PUD application will be complete.
c: Len Pratt, Pratt Ordway Properties
Kelly Doran, Robert Muir Company
Dan Hunt, Hunt Associates
Karen Dubrosky, Dominium
Gary Vogel, BKV Group
Miles Lindberg,URS
Jason McCarty, Westwood
Bruce Malkerson, Malkerson, Gilliland, Martin
DAHLGREN, SHARDLOW AND UBAN,INC. • 300 I�r AvE.N. • SUITE 210 • MINNEAPOLIS,MN 55401
PHONE: 612-339-3300 • FAX:612-337-5601 • WWW.DSUPLAN.COM
! ' 42
INCORPOAATBD
CONSULTING PLANNERS
LANDSCAPE ARCHITECTS
300 FIRST AVENUE NORTH
SUITE 210
MINNEAPOLIS, MN 55401
612.334.3300 -
DATE: September 8, 2003
TO: City of St. Anthony Village Planning Commission
FROM: John W. Shardlow, AICP, Dahlgren, Shardlow and Uban, Inc.
SUBJECT: Public Hearing for the Village at St. Anthony PUD:
• Preliminary Development Plan and Plat for the Entire Site
• Final Development Plan and Plat for the Retail Portion of the Property
LOCATION: Property Commonly Known as Apache Plaza Mall, generally bounded by Silver
Lane on the north, Silver Lake Road on the east, the Soo Line Railroad Right-
of-Way on the south, and Stinson Boulevard on the west.
APPLICANT: Pratt Ordway Properties; Robert Muir Company; Dominium, Inc.; Hunt
Associates
• 1 1
On September 16, 2003, the Planning Commission will hold a public hearing to review the
.Village at St. Anthony PUD. The Planning Commission will be considering two items, the
Preliminary Development Plan and Plat for the entire site, and the Final Development Plan and
Plat for the retail portion of the property.
The Planning Commission previously received all Preliminary Development Plan and Plat
documents in advance of its August 19, 2003 meeting. Included with those documents is -the
Village at St. Anthony Design Framework Manual, which details site characteristics, proposed
land uses, and design guidelines for streets, architecture, landscaping, signage, lighting, and other
site elements. Please refer to your packet from the August 19 meeting to review this information.
Because of the completeness of the Design Framework Manual, the descriptive information
contained in that document will not be duplicated in this memo. However, this memo will
summarize the main points regarding the PUD application for you to consider.
PRELIMINARYDEVELOPMENT o .
The Planning Commission is being asked to consider the Preliminary Development Plan and Plat
for the entire property and make a recommendation of approval to the City Council. If the
Preliminary PUD is approved, the developer and City will enter into a PUD Agreement that
CADocuments and Settings\shenry\Local Settings\Temporary Internet Fi1es\0LK6\PC report 9-16-03.doc
City of St. Anthony Village Planning Commission 43
September 8, 2003
Page 2
outlines the conditions'of approval for the PUD. The property will also be rezoned to the PUD
District. Then, the developer will be allowed to bring forward Final Development Plans for each
phase of the project, in accordance with the approved Preliminary PUD Plan. The main
components of the Preliminary PUD are as follows:
GENERAL PROPERTY BOUNDARIES:
Silver Lane to the north; Silver Lake Road to the east; Soo Line Railroad Right-of-Way to the
south; Stinson Boulevard to the west
LAND USE
Existing Land Uses within Boundary that are not included in Development:
• Cub Foods, Silver Lake Rd • Taco Bell, Silver Lake Rd
• US Bank, Silver Lake Rd • Equinox Apartments, 39"'Av
• Conoco, Silver Lake Rd • Apache Medical Office, Stinson Blvd
Proposed Land Uses:
Type Lot Area Units/Bldg Area
Urban Flats 396,881 sq. ft. 416 units
Apartments 311,514 sq. ft. 220.units
Townhomes 85,100 sq. ft. 26 units
Discount Retail 527,967 sq. ft. 142,000 sq. ft.
Retail - 287, 082 sq. ft. 89,800 sq..ft.
Right-of-Way 114,455 sq. ft.
Park 242,279 sq. ft.
Total Project 1,961,744.77sq.ft. 662 Units
45.05 acres 231,800 sq.ft, Retail
Existing Land Uses to be Redeveloped as Part of Development (Phase 1):
• Apache Plaza, Silver Lake Rd Apache Square, 39h Av
• Sav Liquor, Silver Lake Rd Apache Office Park, 39h Av
• Tires Plus, Silver Lake Rd Conoco, 39h Av(south side)
Potential Existing Properties to be Redeveloped in Future Phases (Phase 2):
• Fuel Mart, Stinson Blvd Baker's Square, Stinson Boulevard
• Don's Car Wash, Stinson Blvd Conoco, Stinson Boulevard/39t`Av (north side)
City of St. Anthony Village Planning Commission
September 8,2003
Page 3
Preliminary Phasing Schedule:
Phase Y (demolition may begin as.early as 1012003)
256 Urban Flat units 0 142,000 sq. ft. discount retail
0 220 Market Rate Apartment units 0 89,800 sq. ft. retail
Phase 2 (currently unscheduled)
26 Townhome units 0 160 Urban Flat units
The developer will provide additional information to the Planning Commission at the public
hearing. This will include a presentation of detailed elevations of the proposed residential
buildings and a bird's eye perspective of the residential portion of the development in context
with the open space.
AFFORDABLE HOUSING COMPONENT
It is the intention of the developer to include an affordable component in the apartment
development in the residential portion of the PUD. Currently the plans show 218 units in the
apartment building. It is the developer's intention to set aside 20-30 percent of the units for
residents whose income is at the 50 percent Area Median Income for the Metro area. -However,
the developer cannot commit to including this affordability because the necessary funding has not
been committed to the project at this time. The developer will work with the City of St.
Anthony, Ramsey County and the Minnesota Housing Finance Agency to secure an allocation of
tax-exempt bonds, grants and deferred loans for the project. The developer is requesting the
City's support as well as tax increment financing in order to provide the affordable component
within the multi-family rental housing. According to the developer, 'its ability and commitment
to providing affordable housing in the Village of St. Anthony PUD is subject to receiving an
allocation of tax-exempt bonds, tax increment financing, and grants and/or deferred loans from
state and local sources.
The Planning Commission is also being asked to consider the Final Development Plan and Plat
for the retail portion of the property and to make a recommendation of approval to the City
Council. The Final PUD documents include a site plan showing site access, roadways, building
location and parking spaces for the retail properties, and a detailed landscape plan showing plant
locations, typical planting sections, typical planting details, and planting types. The Final PUD
also includes the watermain and sanitary sewer plan, stormwater plan, and finished grade plan.
The developer has not yet submitted the Erosion Control plan, which we are recommending be a
condition of approval of the PUD.
The developer will provide additional information to the Planning Commission at the public
45
City of St. Anthony Village Planning Commission
September 8, 2003
Page 4
hearing. This will include a presentation of a drawing which shows a straight line view, from
Silver Lake Road, toward the parking lot edge and on to the Discount Retail building, as
requested by the Planning Commission. This will include a realistic representation of the parking
lot landscaping in the short term. The developer will also present additional elevations of typical
retail building clusters.
EROSION CONTROL
• 1
The City is concerned about water quality of Silver Lake, and the developer proposes to take
steps as a part of the site construction to prevent erosion and the discharge of sediment off--site
and into the lake. As a condition of approval, the developer will be required to obtain a National
Pollution Discharge Elimination System (NPDES) permit and a Rice Creek Watershed District
(RCWD) permit. The NPDES is regulated by the Minnesota Pollution Control Agency and
includes guidelines and requirements that the developer will follow to reduce sediment discharge
off the construction site. The RCWD reviews development and grading plans through their
permitting process. The developer will be detailing the erosion control plans for the site through
these permitting processes.
The developer will use Best Management Practices (BMP's) to prevent sediment discharge,
include the following:
• The construction and maintenance of on-site temporary sedimentation basins to intercept
storm water runoff before discharge off-site. In particular, the treatment of runoff prior to
discharge into the existing pond between Cub Foods and the Equinox apartments will be key
in reducing the off-site discharge of sediment. The site work schedule will include the
construction of temporary stormwater ponds at the beginning or construction before major
areas are exposed.
• Expanding the existing sedimentation basin and the addition of another stormwater pond will
compensate for the new construction on the site.
• Perforated riser pipe outlets in temporary sedimentation basins will help reduce the amount of
sediment leaving the site.
• Restoration and turf establishment through seeding and mulching and other BMP's according
to the NPDES schedule.
• Limiting the exposed soil area of the site.
• Silt fence installation around the perimeter of the site and around permanent ponds as they
are completed.
• Inlet protection for storm sewer inlets as they are installed.
Rock construction entrance(s) will be used to help prevent sediment from tracking onto
adjacent streets.
• Routine street cleaning and sweeping of adjacent streets to collect sediment tracking.
As construction plans are developed, the BMPs listed above, and potentially other BMPs, will be
City of St. Anthony Village Planning Commission 46
September 8, 2003
Page 5
used as needed to prevent sediment discharge. At that time, the developer will work closely with
the City of St. Anthony Village, the RCWD and the MPCA to confirm that they are meeting or
exceeding erosion control standards for the site.
ATTACBU* ENTS
Final Development Plan:
G Existing Conditions
C Site Plan -
a Watermain and Sanitary Sewer Plan
c Storm Sewer Plan
c Finish Grade Plan
C Landscape Plan
Final Plat
To assist the Planning Commission in its review of this application, we have drafted the
following Findings of Fact for your consideration.
1. Consistency with the Comprehensive Plan
The proposed PUD is consistent with the City's Comprehensive Plan. The Comprehensive Plan
identifies the Apache Plaza area as a commercial redevelopment opportunity and states that the
City desires to take an active role in guiding its design. The Comprehensive Plan includes a
Commercial Mixed Use land use plan category, which is applied to all property in the PUD
area. This designation. allows for retail uses as well as light industrial, office, warehouse, and
residential uses and maintains the maximum amount of flexibility that an outmoded site such as
Apache Plaza requires for.redevelopment.
2. Consistency with Zoning
The subject property is currently zoned Commercial. The application for PUD approval requests
a change in zoning from Commercial to a PUD District. At the most basic level, the
Comprehensive Plan designates commercial mixed use, so the PUD zoning provides the means
by which to approve,the mixed use. The Planned Unit Development section of the Zoning
Ordinance allows for the implementation of a flexible development program, including the
following aspects:
a. Variety: Within a comprehensive site design concept, a mixture of land uses, housing
types and densities.
47
City of St.Anthony Village Planning Commission
September 8,2003
Page 6
The proposed PUD contains this variety of elements.
b. Sensitivity: Through the departure from the strict application of required setbacks, yard
areas, lot sizes, minimum house sizes, minimum requirements and other performance
standards associated with traditional zoning, a PUD can maximize the development
potential of land while remaining sensitive to its unique and valuable natural
characteristics.
The PUD District will allow the development of a mixed-use urban village that departs
from the strict application of dimensional and'performance standards found in
traditional zoning districts. As a result, the PUD will restore natural features and open
space into the subject property and creates links to the surrounding community, through
opportunities for trail and transit connections.
c. Efficiency: The consolidation of areas for recreation and reductions in street lengths and
other utility-related expenses.
The redevelopment will boast an impressive central park facility that will act as the focal
Point of the development and a strong amenity for the whole St. Anthony community.
This integrated system of open space throughout the development will fulfills both
aesthetic and functional purposes. The network will serve to connect the various elements
of the development to each other and will also help foster connections at the edges of the
development with the rest of the community.
d. Density Transfer: The project density may be clustered, basing density on a number of
units per acre in place of specific lot dimensions.
The subject property contains approximately 45.05 acres of land. The proposed PUD
includes approximately 662 dwelling units,for an overall density of 14.69 dwelling units
per acre. This density is being clustered in the western portion of the property, in the
form of townhomes, apartments and urban flats.
e. District Integration: The combination of uses which are allowed in separate zoning
districts, such as mixed residential uses to allow densities and unit types to be varied
within the project; mixed residential uses with increased density based upon the greater
sensitivity of PUD projects to regulation; and mixed land uses with the integration of
compatible land uses within the project.
The proposed PUD includes a mix of residential density and unit types, in proximity to
open space, retail uses, and transit opportunities. The inhabitants of the residential
portion of the property, along with the.citizens of St. Anthony in general, will be able to
take advantage of the commercial, transit, and open space uses on the site.
48
City of St.Anthony Village Planning Commission
September 8, 2003
Page 7
3. Consistency with NW Quadrant Redevelopment Plan
In 2000, the City of St. Anthony Village began to proactively pursue a planning process for the-
redevelopment of the "Northwest Quadrant" of the City, an area of approximately 250 acres
extending from Silver Lane on the north, Silver Lake Road on the east, the railroad tracks north
of 37h Avenue on the south and Stinson Road on the west. The city appointed a twenty-six
member project steering committee comprised of local residents to meet regularly with the city
and its planning consultants and provide input and direction to the process. The role of the
steering committee was to:
• Represent a broad cross-section of community opinion;
• Serve as the primary working group for the.Northwest Quadrant planning project;
• Serve as the sounding board and reaction panel for the consultants and the City Council;
• Review, comment and advise the Planning Commission and City Council on key issues, plan
alternatives, and policy questions.
The City hired planning, redevelopment, and fiscal consultants to assist in the creation of a plan
and selection of'a qualified developer. In July 2001, the City adopted the Northwest Quadrant
Redevelopment Plan for the entire 250 acres that incorporated the planning goals. The goals of
the planning process included:
• Involving the community in determining the best type of redevelopment for the northwest
section of the city;
• Redeveloping a mostly vacant,market-obsolete, first generation regional mall facility;
• Determining the most cost effective method of redevelopment for Apache Plaza: demolition,
clean-up and site preparation versus adaptive reuse;
• Exploring innovative and watershed-wide techniques for surface water management to
improve Silver Lake's condition;
• Providing additional employment opportunities for residents within walking distance of
transit and other uses;
• Determining the housing needs of the city, in particular, for life cycle and affordable housing;
• Increasing opportunities for transit use and providing more amenities to encourage walking
and biking;
• Working cooperatively with adjacent and/or affected units of government;
• Developing a trail system around Silver Lake to provide public open space.
The Plan included a Master Framework Plan to illustrate the overall vision for redevelopment of
the area and to provide acceptable site planning and design principles and standards to guide the
design of all features of the site and create a consistent character for the site that would be
compatible with surrounding development.
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City of St.Anthony Village Planning Commission
September 8, 2003
Page 8
Planning for the NW Quadrant culminated in a developer selection process in early 2002. This
development team has created the Village at St. Anthony Preliminary Development Plan for the
subject area. The PUD Plan as been guided by the NW Quadrant Master Framework_Plan and
complies with its guiding principles, as described below.
a. Identity, Character and Diversity: The Northwest Quadrant should develop with
extraordinary identity, character and diversity. It should create places and uses that are
known throughout the community and region as outstanding and interesting examples of
planning and design.
The Village at St. Anthony creates a village character by establishing a main street
commercial area, complete with ornamental lighting and pedestrian friendly streets and
sidewalks; and by including high quality residential buildings flanked by trees and placed
adjacent to narrow streets.
b. Integration with Community: The new development conceived for the site is unlike most
of the existing building stock in the village and the redevelopment area is physically
separated from the community to a significant degree. Each of these factors will make it
challenging to physically integrate the new development into the community. Creating the
feeling that the new neighborhood is part of the community will be an important
consideration.
A development of the size and nature of the Village at St. Anthony benefits greatly from
possessing a number of governing design elements that identify each component of the
project as being part of the same new neighborhood. These common features come in the
form of related architectural treatments, streetscape elements, and site planning
guidelines. The Village at St. Anthony Design Framework Manual sets forth the vision for
the overall design and character of the Village at St. Anthony. The Manual contains
guidelines for site design, architecture, streetscape, signs, lighting and landscaping that
have guided the design of the Preliminary Development and will continue to steer the
implementation phases of development. The Manual should be used as a tool by the City
to evaluate design elements and as a resource for landowners to achieve a consistent
design character and level of quality; it is not the intent of the Manual to require future
improvements to be exactly like the samples shown.
Another way of integrating the PUD into the community will be through the use of the
retail and open space elements by citizens that don't work or live in the development.
The PUD will encourage residents from other parts of St. Anthony to frequent the new
development to take advantage of the new commercial opportunities and the new open
space connections.
c. Integration of Uses Remaining In and Around Development Area: In order to maximize
50
City of St. Anthony Village Planning Commission
September 8, 2003
Page 9
the potential for redevelopment on the mall site certain additional properties will need to
be included in the project.
Not all of the properties included in the Preliminary Development Plan will necessarily
be included in the final redevelopment, .as depicted. The Plan shows redevelopment
occurring on sites adjacent to the Apache Mall property itself. All uses along the west
side of Silver Lake Rd from the railroad tracks north to Silver Lane are shown as being
redeveloped. The Plan also shows those uses located on the east side of Stinson Blvd
from 37th Ave NE to 39th Ave NE and along both sides of 39th east of Stinson, which in
fact may not be immediately developed. Uses that would not be redeveloped include the
Apache office building at the corner of Stinson Blvd and Silver Lane, the Equinox
apartment complex and the Cub food store.
The Cub food store serves as the focal point for a commercial,hub north of the new east-
west roadway. The new discount retail store will serve as the focal point for a
commercial hub south of the new east-west roadway. These uses will be grouped to
create a sense of closure and space, rather than a strip of separate buildings and parking
lots.
Access to the existing Equinox apartment complex may ultimately tie into the street grid
pattern, and attempts will be made to connect and,integrate these apartments with the
rest of the development, although the existing garage structures effectively fence them in,
providing a stark edge rather than an inviting opening. The garages may be able to be
screened or softened with extensive landscaping or other elements of the streetscape.
All other businesses and buildings that will not be redeveloped will be integrated into the
overall development plan through the use of landscaping, lighting, coordinated access
points, signage, and other means.
I Use of Existing Access Points: The regional mall heritage of the site has provided it with
two signalized and two non-signalized entrances. In reforming the interior automotive
circulation system first consideration should be given to maintaining these four entrances
as the primary and secondary access points to the site.
The redevelopment area currently has a very poor circulation pattern. In order to
maximize the potential for the core area of the site, a new central roadway has been
designed, traversing the site east-west. This new street links the existing signalized
intersections of Silver Lake Rd and Stinson Blvd with 39th Avenue NE. It also maintains .
access along Silver Lake Rd north of the Taco Bell, and along Stinson Blvd at 38`h
Avenue (for the residential portion, only).
e. Development of Roadway Spine Through Site (39th Avenue Extension): In order to
51
City of St. Anthony Village Planning Commission
September 8,2003
Page 10
maximize the potential for the core land-locked area of the site a new major east-west
roadway traversing the site will be required. This new street can begin and end at the
signalized intersections of both Silver Lake Rd and Stinson Blvd with 39th Avenue NE.
As stated in item d, a new central roadway has been designed, traversing the site east-
west. This new street links the existing signalized intersections of Silver Lake Rd and
Stinson Blvd with 39th Avenue NE and will connects commercial, residential, and park
uses and provides access into commercial parking lots and residential streets. The
roadway will also have an important symbolic value providing a gateway entrance point
in the new development, and will visually tie together the various land uses along it.
f. Reintroduction of Grid Within Site: The site is large enough to require an internal
network of streets to provide sufficient access to residents and visitors. A network or grid
will insure numerous alternatives for automobile traffic throughout the site and provide
convenient spacing for pedestrian movement.
An internal network of streets has been designed to provide sufficient access to residents
and visitors. The primary route through the site is the site is the parkway along 39`h
Avenue NE. This boulevard will provide connections between commercial, residential
and park uses for vehicles, pedestrians, and bicyclists. It will serve as the principal
village street, encouraging pedestrian movement and calmed traffic. Gateways into the
development and access roadways leading to parking lots and service areas will include
landscaping, lighting and pedestrian amenities. Connections into the residential areas
will be made through Parkway. Secondary residential streets will provide access to the
residential parking lots and underground garages.
g. Sidewalks and Pedestrian/Bicycle Paths: Integral to the function of this new
neighborhood is the development of an integrated system of sidewalks, pedestrian paths
and bicycle paths.
Bicycles will be accommodated on the network of neighborhood and village type streets
that will be created as part of the redevelopment. Bicycle racks will be provided at key
locations. All streets will accommodate pedestrian movement either with sidewalks,
trails, or wide village-type streetscape areas. In addition, pedestrian connections to the
existing Cub Foods store and to the proposed discount retailer will also be provided.
h. Transit Linkages: The site should offer the opportunity to enhance existing transit service
in a number of ways. The addition of a significant number of residents to the site has the
potential to increase ridership over current levels if adequate facilities are provided, while
the extension 39th Avenue as a new central parkway will offer a cleaner, more direct
route through the site.
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City of St.Anthony Village Planning Comm_ ission
September 8, 2003
Page 11
The Apache Plaza site is currently served by MetroTransit bus routes 4, 25, and 801.
Routes 4 and 25 connect the site to downtown Minneapolis and to the City of New
Brighton and Northtown Mall (respectively). Route 801 connects the site by limited stop
to Rosedale Mall and to the Brookdale Transit Center, which serves cities west of the
river. The Village at St. Anthony will continue to accommodate these three routes with
stops along 39th Avenue, which will provide an easier crossing of the site for routes 4
and 25.
i. Development of Key Central Open Space/Network of Open Spaces: The development of
a high amenity central open space approximately in the center of the redevelopment site is
considered to be a key early implementation step. The creation of a key central open
space is just one of the elements required to assure a high level of pedestrian friendliness
and an inviting atmosphere.
The redevelopment will boast an impressive central park facility that will act as the focal
point of the development and a strong amenity for the whole St. Anthony community. In
addition to the new east-west parkway, it is a major organizing element of the interior of
'the site. Removal of the shopping center will alter the current image of the site and the
development of the park facility will be a focal point for the new development. Leading
away from the park will be a series of trails, sidewalks and connected open spaces that
will link the site internally and enhance connections with the surrounding neighborhoods.
This integrated system of open spaces throughout the development fulfills both aesthetic
and functional purposes. The network will serve to -connect the various elements of the
development to each other and will also help foster connections at the edges of the
development with the rest of the community.
j. Silver Lake Water Quality: The water quality of Silver Lake is a critical issue to the
neighborhoods surrounding the lake and redevelopment-on this site should do its part to
preserve and improve that water quality through careful handling of storm water and
enhancements to the surface water management system.
The development will directly contribute to the improvement of water quality in nearby
Silver Lake. Currently, a portion of the Apache Plaza Mall roof and parking lot drains
directly into pipes and into Silver Lake without treatment. Some of the ponds on site
right now are too small to offer very much treatment. As proposed in the PVD, all of the
drainage will be directed into ponds that are redesigned and expanded to meet the Rice
Creek Watershed District's standard of 60% phosphorus removal. The City has also
submitted a grant application to Rice Creek to fund a chemical treatment cell in a
segment of the pond that would remove almost all of the phosphorus. (This grant is
pending.)
The park and open space system is also designed to function as a storm water treatment
53
City of St. Anthony Village Planning Commission
September 8, 2003
Page 12
and retention basin. This pond will be surrounded by green spaces which will provide
additional treatment of stormwater routed from parking lot areas through the buffer and
into the stormwater treatment basins.
As a condition of approval, the developer will be required to obtain a National Pollution
Discharge Elimination System (NPDES) permit and a Rice Creek Watershed District
(RCWD) permit. The NPDES is regulated by the Minnesota Pollution Control Agency
and includes guidelines and requirements that the developer will follow to reduce
sediment discharge off the construction site. The RCWD reviews development and
grading plans through their permitting process. The developer will be detailing the
erosion control plans for the site through these permitting processes.
k. Integration of Stormwater Management into Open Space Network: The open space
network will serve as the location of an integrated stormwater management system that
will connect through the site, which can be built up during the different phases of the
redevelopment, as long as it is planned and well integrated as a whole.
The redevelopment area will include an open space that will function as an integrated
stormwater management system connected through the site. The network is not planned
as an upfront implementation step, as is the central parr but rather will be phased and
integrated as the site develops. Where possible, stormwater will be kept above ground
and open to the air, in ponds, fountains, and other water features that will allow for
maximum penetration of surface water into the ground and maximum benefit as an
amenity to existing and future development.
1. Site Planning/Building Characteristics: The NW Quadrant Redevelopment Plan included
a Master Framework Plan to illustrate the overall vision for redevelopment of the area
and-to provide acceptable site planning and design principles and standards to guide the
design of all features of the site and create a consistent character for the site that would be
compatible with surrounding development.
Building on the Master Framework Plan, the Village at St. Anthony includes a Design
Framework Manual specific to this development site. A development of the size and
nature of the Village at St. Anthony benefits greatly from possessing a number of
governing design elements that identify each component of the project as being part of
the same new neighborhood. These common-features come in the form of related
architectural treatments, streetscape elements, and site planning guidelines.
This Manual sets forth the vision for the overall design and character of the Village at St.
Anthony. The Manual contains guidelines for site design, architecture, streetscape,
signs, lighting and landscaping that have guided the design of the Preliminary
Development Plan and will continue to steer the implementation phases of development.
City of St. Anthony Village Planning Commission
September 8,2003
Page 13
The intent of the guidelines is to establish a level of quality for the all of the design
elements within the development. The Manual provides representative photos and
graphics of landscaping, lighting, signage, and other design elements, based on local and
national sources that illustrate the quality that is to be achieved at the Village at St.
Anthony. This manual should be used as a tool by the City to evaluate design elements
and as a resource for landowners to achieve a consistent design character and level of
quality. It is not the intent of this manual to require future improvements to be exactly
like the samples shown.
4. Consistency with Livable Communities Objectives
This project directly complies with the following Livable Communities objectives:
• The development creates connected places that support auto, pedestrian, and bike travel, are
linked to transit, and will build capacity for future transit.
• The development balances residential, commercial, workplace, and public/green spaces
within and adjacent to the site.
The development maximizes the potential of existing infrastructure, buildings, facilities and
development centers,particularly along existing transportation corridors.
• The development expands housing options, especially close to jobs.
• The development fosters distinctive community places and promotes community identity.
• The development considers the natural environment, including restoring natural features and
managing stormwater.
5. Consistency with Smart Growth Objectives
The overall NW Quadrant area was selected as one of six Opportunity Sites for the Metropolitan
Council's Smart Growth Twin Cities initiative to promote a new and sustainable model for
growth in the metropolitan area. The principles upon which the smart growth initiative are based
include planning for compact and mixed land use patterns that are sensitive to the environment
and that offer greater transportation choices, designing human scale communities with people's
needs and preferences foremost in mind, and creating community-based plans and designs using
innovative public involvement methods. The City of St. Anthony Village opportunity site was
selected because it offers the potential to develop a mixed-use community of neighborhood scale
and to serve as a regional model for redirecting obsolete retail sites to meet contemporary needs.
The Village at St. Anthony PUD meets these objectives.
That the Planning Commission recommend that the City Council approve the application for the
55
City of St.Anthony Village Planning Commission
September 8, 2003
Page 14
Village at St. Anthony PUD Preliminary Development Plan and Preliminary Plat, as well as the
Final Development Plan and Final Plat of Subdivision for the retail portion of the PUD, subject
to the following conditions of approval:
1. The PUD shall be developed in accordance with the following exhibits, which are
incorporated by reference to the Village at St. Anthony PUD:
a. PUD General Concept Plan and Preliminary Plat Submission, dated August 8, 2003
b. Design Framework Manual, dated August 19, 2003
c. Final Development Plan Site Plan, dated September 3, 2003
d. Final Development Plan Watermain and Sanitary Sewer Plan, dated September 3, 2003
e. Final Development Plan Storm Sewer Plan, dated September 3, 2003
f. Final Development Plan Finish Grade Plan, dated September 3, 2003
g. Final Landscape Plan, dated September 3, 2003
h. Final Plat, dated September 3, 2003
2. The PUD shall be developed in accordance with a Planned Unit Development Agreement, to
be entered into by the City and the developer.
3. The'developer shall provide an Erosion Control Plan, subject to the review and approval by
the City Engineer,prior to recordation of the Final Plat.
4. The developer shall secure an NPDES Permit,prior to recordation of the Final Plat.
5. The developer shall secure a Rice Creek Watershed District Permit, prior to recordation of
the Final Plat.
09/16/2003 TUE 14;28 FAX 612 344 1414 MGM LLP
56
M A. LKERSON GILLIL .A. ND MARTIN L L P
1 750 P I L L S B U R Y G r N T E R SOUTH
220 SOUTH SIXTH STREET
MINNEAPOLIS, MINN6sOTA 55402-4502
TELEPHONE 612.344. 1 1 1 1
FACSIMILE 612-344- 1414
Bruce D.Malkerson
Direct Dial No.(612)344-1699
E-Mail: bdm @mgmllp.com
September 16,2003
VIA,FACSIMILE (612.781.9323)
Michael J. Mornson
City Manager, Saint Anthony Village
3301 Silver Lake Road
St. Anthony, MN 5.5418-1699
RE: St. Anthony Village/Apache Redevelopment
Scheduled for Planning Commission Review on September 16,2003
Our File No. 1526.001
Dear Mr. Mornson:
As you may recall, Pratt-Ordway Inc., through a related company St. Anthony Retail
Development, LLC, entered into a purchase agreement to buy what is known as the Cub Foods
property from SBT,LLC. As part of that purchase agreement,it was agreed that Pratt-Ordway,Inc.
would:
"Buyer's Development Covenants. Buyer acknowledges,covenants,and represents
in connection with the Project the following:
(a) That each and every Development Agreement for the Project,or any portion
thereof,between Buyer and EDA/HRA shall,subject to the EDA/HRA bond
counsel's approval,condition the Project on Buyer's purchase of the Property
from Seller, a copy of each and all such agreements shall be provided to
Seller within ten(10) days following its execution.
(b) The Planned Unit Development Agreement between the Buyer and the City
shall be expressly conditioned upon Buyer's purchase of the Property from
Seller. A copy of such agreement shall be provided to Seller within five(5)
days following its execution."
On behalf of my client,Pratt-Ordway,Inc., we ask that the above provisions be included in
the documents noted when they are drafted and we ask that if the Planning Comrission recommends
79472.DOC
09/16/2003 TUB 14;28 FAX 612 344 1414 MGM LLP
57
Michael J.Mozmson
City Manager, Saint Anthony Village
September 16,2003
Page 2
approval of the Project to the City Council,that a recommendcd condition be"that the applicant or a
related entity purchase the property known as the Cub Foods Store property." We ask the City
Council to Add the same language as a condition of approval of the PUD if the Council votes to
approve the PUD.
Thank you.
Very truly yours,
1 J.
Bruce D. Malkerson
BDM/apj
cc: Susan Hall, Assistant City Manager—VIA FACSIMILE
Gery Gilligan, City Attorney-VIA FACSIMILE
John Shardlow,DSU—'VIA FACSIMILE
Stacie Kilvang, Ehlcrs &Associates—VIA FACSIMILE
Len Pratt—VIA FACSIMILE
Kclly Doran--VIA FACSIMILE
Paul Anderson, Attorney for St. Anthony Retail Development,LLC—VIA FACSIMILE
Anthony Gleekel,Attorney for SBT, LLC—VIA FACSIMILE
79472.DOC
0 EHLERS 58
& ASSOCIATES IN (
® To: Mike Mornson—City Manager
C From: Stacie Kvilvang—Associate Financial Advisor
G Sid Inman—Executive Vice President
W
Date: September 16,2003
Subject: Creation of Tax Increment District#3-5 and decertification of parcels from Apache
Tax Increment District#3-3 by the City Council
Overview:
The City is considering establishing Tax .Increment Financing District 3-5 to facilitate the
redevelopment of the Apache Plaza Shopping Center and surrounding area (commonly referred to as
the Northwest Quadrant), in accordance with the Redevelopment Plan. TIF District 3-5 consists of 24
parcels of land and adjacent and internal rights-of-way and is approximately 65 acres in size (see
attached map). The duration of District #3-5 will be 25 years from the date of receipt of the first
increment, which will be approximately 2006. Thus, it is estimated that District #3-5, including any
modifications of the Plan for subsequent phases or other changes, would terminate in 2031.
Currently, four (4) parcels that are to be included in District #3-5, are located within Apache TIF
District#3-3, a Redevelopment District created in 1993. These parcels are:IN � T
3 ,: 4 q ,3,S;.Y M A Y.:
acr f� SID_w_ AE
Pond by Cub 31-30-23-31-0028
Pond Behind Mini Mall 31-30-23-31-0033
Vacant Land—Between SAV II& Conoco 31-30-23-34-0014
Vacant Land -Next to Taco Bell 31-30-23-34-0015
The proposed action before you this evening requests approval of the tax increment financing plan for
District 43-5 and approval of the decertification of the foregoing parcels from Apache TIF District#3-3.
in order to include them in the newly created District#3-5.
Primary issues/alternatives to consider:
Why are the City and HRA creating TIF District#3-57
TIF District 3-5 (Northwest Quadrant) is located within the boundaries of Silver Lane on the North,
37`h Avenue NE on the south, Silver Lake Road on the east and Stinson Boulevard on the West.
Currently the Northwest Quadrant is underutilized, with obsolete structures and physical arrangements,
substantial vacant areas and high building vacancies, inconsistent legal restrictions on redevelopment
and outdated and inadequate public infrastructure and circulation. Redevelopment has been impeded
by fragmentation of ownership and the difficulty of redevelopment without a consistent overall plan
ensuring compatible adjacent uses. Due to these issues, the redevelopment of the Northwest Quadrant
has been a priority redevelopment goal for the City for the past ten (10) years and creation of TIF
District#3-5 will assist in offsetting the high costs associated with the redevelopment.
Does District#3-5 meet the qualifications of a Redevelopment District? 59
District #3-5 consists of 24 parcels to be redeveloped for retail, office, residential and come
purposes. An inventory completed by LHB Architects for the parcels concluded that parcels cons sang
of 70 percent of the area in the District are occupied by buildings, streets, utilities or other
improvements. LHB also conducted an interior and exterior inspection of all the parcels/properties and
concluded that more than 50 percent of the buildings in the District, not including outbuildings, are
structurally substandard to a degree requiring substantial renovation or clearance (meaning the
buildings could not be modified to satisfy the building code at a cost of less than 15 percent of the cost
of constructing a new structure of the same square footage and type on the site....see attached report).
What is being developed within TIFDistrict#3-5?
The Development Team that was selected by the City in 2002 to undertake the redevelopment of the
Northwest Quadrant has submitted a Development Plan for the area that consists of the construction of
a 142,000 sq/ft big box retailer, 56,000 sq/ft of smaller retail, 25,000 sq/ft of office, 220 market rate
apartments, 336 urban flats, 26 three-story town homes, 80 senior Co-Op units and potentially 44
condominiums. In addition significant public improvements will be completed which consist of the
construction of a new east/west collector street (39ffi Avenue —new 4-lane divided roadway), new and
increased storm water ponding to address poor water quality issues in Silver Lake due to the current
development, reconstruction of a lift station at Foss Road, reconfiguration of the existing trunk water
main on the site and the creation of public open spaces and.water features.
What will the Tax Increment be used for?
Tax Increment will be utilized for qualified costs such as, but not limited to, land acquisition,
demolition, relocation, public utilities, infrastructure, site improvements, landscaping, rehabilitation,
any financing cost, etc. The amount and use of TIF by private developers will be outlined in the
individual development agreements and approved by the City Council and the City's Housing and
Redevelopment Authority (HRA).
Does the TIFPIan for District#3-5 conform to the Comprehensive Plan for the development or
redevelopment of the City as a whole?
The Plan was reviewed by the Planning Commission on September 16, 2003. The Commission found
that the Development Plan for TIF District#3-5 is consistent with the City's Comprehensive Plan.
Attachments:
Resolution
Exhibit A
TIF District Location Map
Tax Increment District #3-5 Plan
Substandard Inspection Report
60
CITY OF ST. ANTHONY
RESOLUTION 03 - 082
RESOLUTION ADOPTING A MODIFICATION TO THE REDEVELOPMENT PLAN FOR
REDEVLEOPMENT PROJECT AREA NO 3; AND 'ESTABLISHING TAX INCREMENT
FINANCING DISTRICT NO. 3-5 WITHIN REDEVELOPMENT PROJECT AREA NO. 3
AND APPROVING THE REMOVAL OF CERTAIN PARCELS FROM THE HRA'S TAX
INCREMENT FINANCING DISTRICT NO. 3-3 FOR INCLUSING IN DISTRICT NO. 3-5
AND ADOPTING A TAX INCREMENT FINANCING PLAN THREFOR
BE IT RESOLVED by the City Council (the "Council") of the City of St. Anthony,
Minnesota(the "City"), as follows:
Section 1. Recitals.
1.01. The City Council of the City of St. Anthony previously approved the establishment of
Apache Tax Increment Financing District No. 3-3 (District No. 3-3) within Redevelopment Area No. 3
and approved the Tax Increment Financing Plan therefor, and approved the establishment of
Redevelopment Project No. 3 by the St. Anthony Housing and Redevelopment Authority (the "HRA")
and approved the Redevelopment Plan for Redevelopment Project Area No 3. (the "Redevelopment
Plan") therefor. The HRA has requested approval by the Council of(i) the tax increment financing
plan for the HRA's proposed Tax Increment Financing District No. 3-5 ("District No. 3-5") to be
located within the HRA's Redevelopment Project Area No. 3 and (ii) the modification of the tax
increment-financing plan for District No. 3-3 providing for the removal of certain parcels from District
No. 3-3 to be included within the newly established District No. 3-5 (collectively, the "Plans"); all
pursuant to and in conformity with applicable law, including Minnesota Statutes, Sections 469.090
through 469.1081, 469.001 through 469.047, and 469.174 through 469.1799, all inclusive, as
amended, (the "Act") and as reflected in the Plans that have been presented for the Council's
consideration.
1.02. The HRA and Council have investigated the facts relating to the Plans and have caused
the Plans to be prepared.
1.03. The HRA and City have performed all actions required by law to be performed prior to
the establishment of the District and the adoption and approval of the proposed Plans, including, but
not limited to, notification of Ramsey County and Independent School District No. 282 having taxing
jurisdiction over the property to be included in the District,.a review of and written comment on the
Plans by the City Planning Commission, and the holding of a public hearing upon published notice as
required by law.
1.04. Certain written reports (the "Reports") relating to the Plans and to the activities
contemplated therein have heretofore been prepared by staff and consultants and submitted to the
Council and/or made a part of the City files and proceedings on the Plans. The Reports include data,
information and/or substantiation constituting or relating to the basis for the other findings and
determinations made in this resolution. These reports include the- Summary of the Inspections and
Findings, prepared by LHB and Environmental and Asbestos Reports prepared by Braun Intertec. The
Council hereby confirms, ratifies and adopts the Reports, which are hereby incorporated into and made
as fully a part of this resolution to the same extent as if set forth in full herein.
1.05 The City is modifying the boundaries of Redevelopment Project Area No. 3. 61
Section 2. Findings for the Adoption and Approval of the Plans.
2.01. The Council hereby finds that the Plans, are intended and, in the judgment of this
Council, the effect of such actions will be: (i) to provide an impetus-for the redevelopment of blighted,
obsolete, substandard, or deteriorating areas of the City in order to remove or prevent such conditions;
(ii) to increase employment opportunities in the City; and (iii) to provide such other facilities and
improvements as shall further the objectives in the Plans and Minnesota Statutes 469.001 through
469.047
Section 3. Findings for the Establishment of Tax Increment Financing District No. 3-5.
3.01. The Council hereby finds that Tax Increment Financing District No. 3-5 is in the public
interest and is a "redevelopment district" under Minnesota Statutes, Section 469.174, subd. 10 (a)(1).
3.02. The Council further finds that the proposed redevelopment would not occur solely
through private investment within the reasonably foreseeable future and that the increased market value
of the site that could reasonably be expected to occur without the use of tax increment financing would
be less than the increase in the market value estimated to result from the proposed development after
subtracting the present value of the projected tax increments for the maximum duration of the District
permitted by the Tax Increment Financing Plan, that the Plans conform to the general plan for the
development or redevelopment of the City as a whole; and that the Plans will afford maximum
opportunity consistent with the sound needs of the City as a whole, for the development or
redevelopment of the District by private enterprise.
3.03. The Council further finds, declares and determines that the City made the above findings
stated in this Section and has set forth the reasons and supporting facts for each determination in
writing, attached hereto as Exhibit A.
3.04. The Housing and Redevelopment Authority of St. Anthony elects to calculate fiscal
disparities for the District in accordance with Minnesota Statutes, Section 469.177, Subd. 3, clause b,
which means the fiscal disparities contribution would-be taken from inside the District.
Section 4. Public Purpose.
4.01 The adoption of the Plans conforms in all respects to the requirements of the Act and will
help fulfill a need to develop an area of the City which is already built up, to provide employment
opportunities, to improve the tax base and to improve the general economy of the State and thereby
serves a public purpose.
Section 5. Approval and Adoption of the Plans.
5.01. The Plans, as presented to the Council on this date, including without limitation the
findings and statements of objectives contained therein, are hereby approved, ratified, established, and
adopted and shall be placed on file in the office of the City Clerk.
5.02. The staff of the City, the City's advisors and legal counsel are authorized and directed to
proceed with the implementation of the Plans and to negotiate, draft, prepare and present to this
Council for its consideration all further plans, resolutions, documents and contracts necessary for this
purpose.
62
5.03 The City's staff shall take such action as is necessary to (i) cause the County "i La
Ramsey County to decertify the above-mentioned parcels from District No. 3-3 and to no lonE, nit.
tax increment from these parcels within District No. 3-3 to the City and HRA and (ii)notify the County
Auditor of the reduction in the geographic area of District No. 3-3 caused by the decertification of such
parcels.
5.04 The Auditor of.Ramsey County is requested to certify the original net tax capacity of the
District, as described in the Plans, and to certify in each year thereafter the amount by which the
original net tax capacity has increased or decreased; and the Housing and Redevelopment Authority of
St. Anthony is authorized and directed to forthwith transmit this request to the County Auditor in such
form and content as the Auditor may specify, together with a list of all properties within the District,
for which building permits have been issued during the 18 months immediately preceding the adoption
of this resolution.
5.05. The City Clerk is further authorized and directed to file a copy of the Plans with the
Commissioner of the Minnesota Department of Revenue pursuant to Minnesota Statutes 469.175,
Subd. 4a.
Adopted this day of 12003.
Mayor
ATTEST:
City Clerk
Reviewed for Administration:
City Manager
63
EXHIBIT A
RESOLUTION#
The reasons and facts supporting the findings for the adoption of the Tax Increment Financing
Plan for Tax Increment Financing District No. 3-5, as required pursuant to Minnesota Statutes,
Section 469.175, Subdivision 3 are as follows:
1. Finding that Tax Increment Financing District No. 3-5 is a redevelopment district as defined in
M.S., Section 469.174, Subd. 10(a)(1).
The District consists of 24 parcels, with plans to redevelop the area for mixed-use redevelopment
purposes. At least 70 percent of the area in the parcels in the District are occupied by buildings,
streets,utilities, paved or gravel parking lots or other similar structures and more than 50 percent
of the buildings in the District, not including outbuildings, are structurally substandard to a degree
requiring substantial renovation or clearance (See Appendix F of the TIF plan).
2. Finding that the proposed development, in the opinion of the City Council, would not reasonably
be expected to occur solely through private investment within the reasonably foreseeable future
and that the increased market value of the site that could reasonably be expected to occur without
the use of tax increment financing would be less than the increase in the market value estimated to
result from the proposed development after subtracting the present value of the projected tax
increments for the maximum duration of Tax Increment Financing District No. 3-5 permitted by
the Plan.
The proposed development, in the opinion of the City, would not reasonably be expected to occur
solely through private investment within_ the reasonably foreseeable future: This finding is
supported by the fact that the redevelopment proposed in this plan meets the City's objectives for
redevelopment. Due to the high cost of redevelopment on the parcels currently occupied by
substandard buildings, the limited amount of commercial property for expansion adjacent to the
existing project, the incompatible land uses at close proximity, and the cost of financing the
proposed improvements, this project is feasible only through assistance, in part, from tax
increment financing. The developer was asked for and provided a letter and a proforma as
justification that the developer would not have gone forward without tax increment assistance (see
attachment in Appendix G).
The increased market value of the site that could reasonably.be expected to occur without the use
of tax increment financing would be less than the increase in market value estimated to result
from the proposed development after subtracting the present value of the projected tax increments
for the maximum duration of the TIF District permitted by the Plan: This finding is justified on
the grounds that the cost of site and public improvements and utilities add to the total
redevelopment cost. Historically, site and public improvements costs in this area have made
redevelopment infeasible without tax increment assistance. Therefore, the City reasonably
determines that no other redevelopment of similar scope is anticipated on this site without
substantially similar assistance being provided to the development.
A comparative analysis of estimated market values both with and without establishment of the
District and the use of tax increment has been performed as described above. If all development
which is proposed to be assisted with tax increment were to occur in the District, the total
64
increase in market value would be up to $126,326,500. The present value of tax increments from
the District is estimated to be $18,971,728. It is the Council's finding that no development with a
market value of greater than $107,354,772 would occur without tax increment assistance in this
district within 25 years. This finding is based upon evidence from general past experience with
the high cost of acquisition and public improvements in the general area of the District (see
Cashflow in Appendix D of the TIF Plan).
3. Finding that the Tax Increment Financing Plan for Tax Increment Financing District No. 3-5
conforms to the general plan for the development or redevelopment of the municipality as a
whole.
The Planning Commission reviewed the Plan and found that the Plan conforms to the general
development plan of the City.
4. Finding that the Tax Increment Financing Plan for District No. 3-5 will afford maximum
opportunity, consistent with the sound needs of the City as a whole, for the development or
redevelopment of Redevelopment Project Area No. 3 by private enterprise.
The redevelopment to be assisted by District No. 3-5 will result in increased employment in the
City and the State of Minnesota, the renovation of substandard properties, increased tax base of
the State and add high quality development to the City. In furtherance of these objectives, the
HRA intends to enter into development agreements with private developers, which agreements
will obligate such developers to construct, operate, and maintain the facilities contemplated under
the Redevelopment Plan for Redevelopment Project Area No. 3. Therefore, the planned
redevelopment will be consistent with the sound needs of the City as a whole and will be
accomplished,to the maximum extent possible, by private enterprise
65
Proposed TIF District 3-5
Location Map
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M .a a�s�ayJ9
Parcel to be decertified 'a'E
M .
£ i-0 rxxsjrmxx i �`T'r august 2003
from District 9G
w{
s MAP OF PROPOSED TIF DISTRICT
as
s s. �
a 3motz t� a
� .� s �� �� ������3_y i _ Parcel to be decertified
from District 9G
qp
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Parcels to be decertified
'€ x om District 9G
313M I
}a q 15 aBf K fA u
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xlr �. St Anthony,Minnesota
-._ 10°0100..200 Feet
66
CITY OF ST. ANTHONY VILLAGE
PLANNING COMMISSION
PLANNING COMMISSION RESOLUTION 03 - 01
A RESOLUTION OF THE CITY OF ST. ANTHONY PLANNING COMMISSION
FINDING THAT A MODIFICATION TO THE REDEVELOPMENT PLAN
FOR REDEVELOPMENT PROJECT AREA NO. 3 AND A TAX INCREMENT
FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. 3-5
CONFORM TO THE GENERAL PLANS FOR THE DEVELOPMENT
AND REDEVELOPMENT OF THE CITY
WHEREAS, the City Council of the City of St. Anthony, Minnesota, (the"City") has proposed
to adopt a Modification to the Redevelopment Plan for Redevelopment Project
Area No. 3 (the"Redevelopment Plan Modification") and a tax increment
financing Plan for Tax Increment Financing District No. 3-5 (the"TIF Plan")
therefor(the Redevelopment Plan Modification and the TIF Plan are referred to
collectively herein as the "Plans") and has submitted the Plans to the City
Planning Commission (the"Commission")pursuant to Minnesota Statutes,
Section 469.175, Subd. 3; and
WHEREAS, the Commission has reviewed the Plans to determine their conformity with the
general plans for the development and redevelopment of the City as described in
the comprehensive plan for the City.
NOW, THEREFORE,BE IT RESOLVED,by the Commission that the Plans conform with the
general plans for the development and redevelopment of the City as a whole.
Adopted this day of 2003.
P annin ommi ion Chair
Planning mmissio Vice Chair
67
THE CITY OF ST. ANTHONY
RESOLUTION NO.03-085
RESOLUTION RELATING TO THE REDEVELOPMENT OF PROPERTY IN
REDEVELOPMENT PROJECT AREA NO. 3 AND AUTHORIZING THE PREPARATION,
EXECUTION AND DELIVERY OF A CONTRACT FOR PRIVATE REDEVELOPMENT
THEREOF
WHEREAS, the City of St. Anthony (the "City") and the St. Anthony Housing and Redevelopment
Authority (the "HRA") have identified an area located in the northwest portion of the City (the "Northwest
Quadrant")for study regarding the area's decline and opportunities for potential redevelopment; and
WHERAS, the City's HRA hired consultants,and appointed a citizen-based task force to develop a
planning framework for redevelopment of the Northwest Quadrant; and
WHEREAS, the consultants and task force developed the Northwest Quadrant Redevelopment Plan
("Northwest Quadrant Plan"), dated July 2001, which describes the planning process, the existing conditions
and provides redevelopment options for the Northwest Quadrant; and
WHEREAS, the City and HRA reviewed the Northwest Quadrant Plan and agreed with the findings
contained therein; and
WHEREAS, a portion of the property in the Northwest Quadrant is included in Redevelopment
Project Area No. 3 established by the Redevelopment Plan for Redevelopment Area No. 3 of the HRA as
modified(as so modified the"Redevelopment Plan"); and
WHEREAS, the City and HRA have been proceeding with plans and discussions concerning the
redevelopment of a portion of the property in Redevelopment Project Area No. 3 ;and
WHEREAS, on April 23, 2002 the City Council ("Council") approved Resolution #2002- 042
authorizing the City to enter into a Pre-Redevelopment Contract with Pratt-Ordway-Dominium (Developer
Limited Partnership)("the Developer")for such redevelopment; and
WHEREAS, the Developer is proposing to construct approximately 211,000 sq/ft of retail and office
space, 220 market rate rental units, 336 owner-occupied flats, 26 three story town homes and 80 senior
cooperative units on a portion of the property in Redevelopment Project Area No. 3; and
WHEREAS, the City and HRA believe that such proposed redevelopment of the Redevelopment
Property will result in increased housing units to meet the demands of the marketplace, the increase of
employment opportunities for residents of the city, the increase of the value of property subject to taxation by
the City and other local government units, and the increase of general economic activity in the City, all of
which will reduce unemployment, improve living conditions, promote desirable redevelopment of land,
remove blight and prevent the emergence of additional blighted property and areas, and encourage and
enhance the general health and welfare of the residents of the City; and
WHEREAS, representatives of the Developer and of the City and HRA have been discussing the
proposed terms of such development by the Developer on the Redevelopment Property and the means by
which such development will be undertaken and the extent of public assistance required for such development,
which proposed terms are contained in a Term Sheet (the "Term Sheet") negotiated by such parties, a
summary of which has been presented to and reviewed and discussed by.this Council.
r
NOW,THEREFORE, BE IT RESOLVED,by the City Council of St.Anthony as follows:
1. The Council believes that the redevelopment of the Redevelopment Property as proposed by the
Developer, are in the vital and best interests of the City and the proposed tax increment and other public
assistance to be provided by the City and HRA to such redevelopment primarily serve a public purpose and are
in the public interest by permitting the redevelopment of property in the City in a manner that meets the goals
and objectives of the Redevelopment Plan and is in accordance with the provisions of applicable federal, state
and local laws.
2., The City Manager is hereby authorized and directed on behalf of the City to negotiate a Contract
for Private Development, by and among the City, the HRA and the Developer and related agreements (the
Contract for Private Redevelopment and related agreements are herein together referred to as the
"Redevelopment Agreement") the terms of which shall not, in his opinion, substantially alter or impair the
rights and obligations of the City and HRA as set forth in the Term Sheet, and the form of which shall be
approved by the City Attorney.
3. The Mayor and City Manager are hereby authorized to execute and deliver on behalf of the City the
Redevelopment Agreement subject to the conditions set forth in paragraph 2.
4. Neither the adoption of this resolution nor the Term Sheet shall constitute a contract or agreement
on behalf of the City, and the Redevelopment Agreement shall not be deemed effective or legally enforceable
against the City until executed and delivered on behalf of the City by the Mayor and City Manager.
Adopted this day of , 2003.
Mayor
ATTEST:
City Clerk
Reviewed for Administration:
City Manager
EHLER .;p
& ASSOCIATES INC
To: Mike Morrison—City Manager
O City Council
5
G From: Stacie Kvilvang—Associate Financial Advisor
CW Sid Inman—Executive Vice President
c Date: September 17,2003
Subject: Northwest Quadrant Redevelopment -Development Proposal and Terms of
Development Agreement
The Development Team has refined their concept for redevelopment of the above referenced project
area. This concept includes the acquisition and subsequent redevelopment of the following properties:
I—Commercial
Apache Plaza 31-30-23-34-0016 IB—For Sale Housing
I—Rental Housing
Vacant New Market Site 31-30-23-33-0002 I—Rental Housing
Taco Bell 31-30-23-34-0018 I—Commercial
SAV H/Tires Plus 31-30-23-34-0017 1—Commercial
2 Vacant HRA Parcels 31-30-23-34-0014 1—Commercial
31-30-23-34-0019
Vacant Parcel around Taco Bell 31-30-23-34-0015 I-Commercial
Pond behind Cub Foods 31-30-23-31-0028 1-Commercial
Pond Behind Mini Mall 31-30-23-31-0033 I-Commercial
Cub Foods I-Commercial
Apache Squares 31-30-23-33-0001 IA—For Sale Housing
Apache Office 31-30-23-33-0011 IA—For Sale Housing
JA Cadwallader Office 31-30-23-33-0012 IA—For Sale Housing
Bakers Square&Parking Lot 31-30-23-33-0013 HA—Housing
31-30-23-33-0014
Don's Car Wash 31-30-23-33-0005 IIA-Housing
Firestone 31-30-23-33-0006 IIB—Town Homes
Ed's Carwash 31-30-23-33-0010 IIB—Town Homes
Vacant parcel on Stinson Blvd IIB—Town Homes
Fuel Mart 31-30-23-33-0003 IIC—Housing
Carwash on Stinson Blvd 31-30-23-33-0004 HC -Housing
LEADERS IN PUBLIC FINANCE
3060 Centre Pointe Drive Phone: 651-697-8506 Fax: 651-697-8555
Roseville, MN 55113-1105 skvilvang @ehlers-inc.com
70
Mike Morrison—Northwest Quadrant Redevelopment
September 17, 2003
Page 2
The Development will be divided into the following three phases:
r
es MOVIon n '
De elo men 0
am 044
IM-A
Phase I Big Box 142,000 Sq/Ft 2004-2005 Spring 2004 June 1,2005
Phase I Retail 56,000 Sq/Ft 2004-2005 Spring 2004 June 1,2005 $18.81
Phase I Office 25,000 Sq/Ft 2004-2005 Spring 2004 June 1,2005 Million
Phase I SAV H 8,800 Sq/Ft 2004-2005 Spring 2004 June 1,2005
Phase I Market Rate
Apartments 220 Units 2004-2006 Fall 2004 July 1,2005 $19.8 Million
Phase IA Urban Flats 128 Units 2004-2006 Fall 2004 July 1,2005 $30.72
Million
Phase IB Urban Flats 128 Units 2005-2007 Fall 2005 July 1,2006 $30.72
Million
Phase IIA 80 Units 2005-2007 Fall 2005 July 1,2006 $16 Million
Senior Co-Op
Phase IIB 26 Units 2005-2006 Fall 2005 July 1, 2006 $9.75 Million
3-Story Town Homes
Phase 111C Urban Flats 80 Units 2006-2007 Fall 2006 July 1,2007 $19.2 Million
TOTAL N/A N/A N/A N/A $145 Nfifflon
Based upon these options,Ehlers and the Development Team have estimated that the cost to acquire all
the land, relocate existing businesses, demolish the structure and complete the public improvements
will cost approximately $16 million for Phase I and $4 million for phase 11. To assist in offsetting this
cost, the Developer has proposed the following payment for land and special assessments for the Phase
I Development:
3fi� hey Ur au 3a �xm ar
dents,ts, ;�raw
Cost
7 $1,705,000
rLand Cost $2,779,360 $960,000 $1,600,000 $2,249,940 $7,589,300
($3.54 sq/ft) ($7,500/unit) ($12,500/unit) ($10,227/Unit)
Special . $325,000 $0 $0 $2,030,000
Assessment ($2.17 sq/ft) ($2,539/Unit) I i
Total $4,484,360 $1,285,000 $1,600,000 $2,249,940 $9,619,300
$5.71 sq/ft) — I
The for sale urban flats will be paying an average of$10,000 per unit, but it is divided among the two
phases to allow the initial phase to pay less for land up front to allow the Developer the flexibility to
address any market issues. It should be noted that Phase H land prices have not been submitted yet and
will be reviewed and compared to industry standards when our office receives them.
Based upon the above referenced development program, following is a listing of the proposed business
terms for the final Development Agreement:
1. General
a. Parties. The Redeveloper will be one or more single asset entities created by Pratt Ordway
LLC to act as the Redeveloper. Pratt Ordway will assign its purchase agreement for the
Ste. Marie Property and any other property it obtains purchase agreements upon,to this
71
Mike Mornson -Northwest Quadrant Redevelopment
September 17, 2003
Page 3
entity. The Redeveloper will subdivide the redevelopment area and sell various portions of
the property to other entities (in which Pratt Ordway, its principals or affiliates may be
participants,with the exception of the rental housing portion).
2. Tax Increment.
a. Creation of a Redevelopment TIF District. The City and HRA are required to create a
Redevelopment TIF District by September 30, 2003, to assist in offsetting the high costs
associated with redevelopment. It is understood that the City and HRA will be holding
public hearings on the creation of the District prior to this date, but that the City will not
request certification of the District until a Development Agreement is executed.
b. Amount of Increment: Based upon the latest Sources and Uses from the Development
Team, it is anticipated that the Phase I development will generate approximately $13.3
million in present value tax increment. Of this increment, it is anticipated that the
Commercial and For Sale Housing Development Team will require approximately $6.5 to
$8 million to complete the redevelopment and the Rental Housing Developer will require
approximately$2.7 million.
The Sources and Uses Statements and the amount of TIF for Phase II development are in
the process of being compiled.
c. Fiscal Disparities. Fiscal Disparities will be paid inside the district.
d. Administration Expense Allocation. Currently all TIF calculations show 5% of available
Tax Increment being available for administration. To the extent that the development will
require more than 95% of the TIF for actual redevelopment costs or coverage of bonds, the
City may elect to subordinate its 5% administration until the entire development comes on
line (it is anticipated that this will not be required at this time). In the alternative, if there is
excess increment, the City may increase its administration amount to the statutory limit of
10%.
e. TIF Notes. It is anticipated that the Development Team will finance their development
costs up front and that they will request the City to "take them out" after the development
is completed through the issuance of Tax Exempt TIF bonds. This is a tool that is used in
many of the metropolitan communities to assist developers with development and is a low
risk proposition for the City, since the developments will be constructed and paying taxes
when the City is issuing these bonds.
3. Public Improvements.
a. Roadway and Sanitary Sewer Improvements. 391h Avenue will be reconstructed from
Silver Lake Road to Stinson Boulevard and upgrades will be made to the sanitary sewer
lines as well. It is anticipated that it will cost approximately $2.205 million to complete
these improvements and the cost will be assessed to and paid for by the development and
other benefiting properties within the TIF District as follows:
72
Mike Morrison -Northwest Quadrant Redevelopment
September 17, 2003
Page 4
Large Retailer: $1,200,000 Paid up front or completion of roadway
Small Commercial: $500,000 Assessed over term of bonds
Phase IA For Sale Housing: $325,000 Paid at sale of units
Benefiting properties: $175.000 Assessed over term of bonds
TOTAL $2,205,000
The City will most likely be required to sell temporary bonds (1-year call date) to pay for
the construction up front then refinance the bonds once any prepaid special assessments are
received. Any amount in excess of the anticipated amount of$2.05 million will be paid
through Tax Increment generated from the project.
b. Site Improvements/Open Space. The Redeveloper will pay for the open space/ponding
and site improvements, which are estimated to cost approximately $1,430,000. They will
be reimbursed by the City and HRA for a portion or all of the site/ponding improvements
through Park Dedication Fees generated from the development (estimated at $205,000),
any grants the City may receive and from Tax Increment. The site improvements may be
phased over a three (3) year period if the City does not receive the $900,000 in LCDA
funds it requested from the Metropolitan Council. The phasing of the site improvements
will allow the Development Team to pay for the improvements as cash becomes available.
The Development will be responsible for the costs associated with maintaining the storm
water ponds and the City will be responsible for maintaining the open space around the
storm water ponds. The City and Redeveloper are currently discussing coordination and
responsibility for the maintenance,etc.
4. Miscellaneous.
a. City Liquor Store. The Redeveloper will construct and furnish a new Municipal Liquor
Store within the commercial development. It is anticipated that the Liquor Store will be
constructed prior to demolition of the existing store so as to cause minimal disruption to
the City's Liquor operation. Since Tires Plus will be required to relocate their business,the
City will work with them to find a suitable site to relocate to. It should be noted that the
City may need to condemn the Tires Plus lease if deemed necessary by the City Attorney.
The Redeveloper will pay the cost to relocate the existing Tires Plus building and the cost
to construct the new Liquor Store, up to an amount not to exceed$1,700,000.
b. Cub Foods. The Redeveloper has a signed purchase agreement for the existing Cub Foods
store for $10,850,000, inclusive of the restrictive property covenants. The Redeveloper
intends to rehabilitate the store to upgrade its appearance to the quality of the new
commercial development. It is estimated the cost of this "face lift" will be $580,000. The
agreed upon purchase price of the store does not allow the Redeveloper to obtain any more
debt on the property. Therefore, the City will provide the Developer TIF assistance for the
Store's rehabilitation as a qualified redevelopment costs. The funds will be pooled from
the newly created TIF District 3-5 to District 3-3.
73
Mike Morrison -Northwest Quadrant Redevelopment
September 17,2003
Page 5
In addition, the City agrees that absent this sale, the property was "under threat of
condemnation" and would consider taking all necessary actions to acquire the site if the
acquisition had not been negotiated.
c. Commercial Propertycquisition. The Redeveloper has requested assistance in acquiring
the three commercial properties that the Phase IA For Sale housing units will be located
upon (Apache Squares, Apache Office and JA Cadawallader Office). The Development
Team has had discussions with Fannie Mae to assist in providing the "up front" money
needed to acquire these properties. Fannie Mae is willing to provide this assistance but
will require, as collateral, the land, Developer Guarantee and a pledge funds from the City.
It is anticipated that the City will utilize funds from the Water Filtration Fund to utilize as
collateral for the loan and will not be required to provide its General Obligation Taxing
Authority. The terms of the collateral are still be discussed with Fannie Mae and terms of a
revolving fund for future property acquisitions is still being discussed with the
Redeveloper. Any final loan agreement will be brought before the City Council and HRA
for approval.
The Redeveloper will be required to have 20% of the units in the first Phase IA building
sold prior to the City considering advancing the loan funds from Fannie Mae. In addition
the Redeveloper will need to have obtained the construction financing for the land prior to
advancement of the loan.
d. Profit Sharing on For Sale Urban Flats. The Developer of the For Sale Housing units
anticipates a twelve (12) percent profit on the development. Once the Developer obtains
this profit margin, they will provide a prorated "pay back" to the City and HRA of 25% of
the excess profit. If the project profit exceeds fifteen (15) percent, then the City and
HRA's prorated share of the profit will be increased to 50%. It should be noted that the
profit calculations exclude any unit"upgrades"requested by homeowners.
e. Below Market Profit TIF Assistance Increase. Provided the For Sale Developer is not in
default, in the event the return to the For Sale Developer is less than 12%, the City and
HRA shall provide the For Sale Developer a subordinated Pay-As-You-Go (PAYG) Tax
Increment Note in the amount needed to attain a 12%return. The Subordinated TIF Note
shall be payable solely from the amounts of Available Tax Increment on the For Sale
Element not utilized to pay the Tax Exempt TIF Refinancing or the City/HRA 5%
administration, on the For Sale Element (i.e. coverage, inflation or excess TIF). We are
still finalizing negotiations on when the subordinated TIF note would be paid to the
Developer and anticipate we will have it finalized by the September 23,2003 meeting.
f. Look Back Provision. As an Exhibit to the Development Agreement, a mutually agreed
upon preliminary development proformas for the For Sale Housing and Commercial
Development will be attached. This will be the basis for determination of assistance for the
developments. When the developments are completed the actual development proformas
will be compared with the preliminary development proformas. If the projects perform
better than anticipated and the For Sale Developer receives their required profit amount of
12% and the Commercial Developer meets their construction and lease goals then the
excess proceeds will be disbursed to the City and HRA as excess TIF and will be made
available for Phase II developments within the TIF District.
74
Mike Morrison -Northwest Quadrant Redevelopment
September 17,2003
Page 6
g. Rental Housing Development. The City and HRA will enter into a separate redevelopment
contract with the Rental Housing Developer. A separate But-For analysis will be
completed for this portion.
h. Condemnation. The Redeveloper will utilize reasonable efforts to acquire all property
privately prior to requesting the City to initiate.condemnation, including use, where
appropriate of City sponsored mediation. The City.will agree to undertake condemnation
of all real properties located within the Redevelopment District, including any leaseholds,
easements, restrictive covenants or other or other legal or equitable interest that encumber
the Redevelopment District and would restrict redevelopment as contemplated.
Condemnation shall be undertaken on a schedule mutually agreed to between the
Redeveloper and the City.
All costs of condemnation proceedings, including, but not limited to legal fees, filing fees,
costs, appraisal fees and title work, shall be paid by the Redeveloper, subject to
reimbursement of certain costs as a public redevelopment cost from Tax Increment in
accordance with the Redevelopment Agreement. The Redeveloper shall enter into a
Reimbursement Agreement with the City to reimburse the costs of condemnation proceeds,
condemnation awards and relocation as incurred for acquisition of the Phase I property.
i. Advancement and Reimbursement to Redeveloper. The Redeveloper has reimbursed and
agrees it will in the future continue to promptly reimburse the City and HRA for all costs
of the City and Authority in advancement of the Project, including but not limited to the
costs of the City Consultants, financial analysis of the Project and the Tax Increment Plan,
Redevelopment and TIF District analysis and creation, legal fees, survey and title costs,
environmental review costs, environmental site investigation costs and other similar costs.
The Redeveloper will be reimbursed for these costs and costs associated with acquiring and
holding the Apache Plaza property and other overhead as a qualified Tax Increment cost in
an amount that is currently estimated to be$2,645,000 and individually listed as follows:
Predevelopment Costs(Public/Private): $1,250,000
Apache Mall Holding Costs $355,000
Apache Capitalized Interest: $100,000
Developer Overhead/Administration $590,000
Redeveloper Capitalized Interest—Project Costs: $350,000
TOTAL $2,645,000
The Redeveloper shall cost certify all such private third party costs and expenses of the
developer to the reasonable satisfaction of the City and HRA. Any cost savings will be
considered available Tax Increment for other qualified costs in the Redevelopment District.
j. Redeveloper Incentive Payment. Any costs savings by the Redeveloper on negotiating the
purchase, relocation (only due to non statutory payments) and demolition of the three
commercial properties for the Phase IA For Sale Housing component will be used to first
cover any overruns in any other Redeveloper category and second shall be paid one-half to
the Redeveloper and one-half shall be available to the City and HRA for other public
75
Mike Mornson -Northwest Quadrant Redevelopment
September 17, 2003
Page 7
redevelopment costs. The Incentive Fee will not be payable to the Redeveloper if he is in
default under the Redevelopment Contract.
k. Grants. The City and HRA will provide the Redeveloper with the $586,000 grant it
received from the Metropolitan Council for the Asbestos Abatement at Apache Plaza. The
City and HRA will use it's best efforts to obtain LCDA and Tax Base Revitalization grant
funding and any other available funding from Metropolitan, Sate and Federal Sources.
1. Master Redeveloper Fee. The Master Redeveloper will be paid a $1 million fee for the
Phase I development. The fee will be paid as follows:
Rental Housing Sale: $500,000
Commercial Sale: $300,000
For Sale Housing Sale: $200,000
The Redeveloper will be paid at the time of the closing of the land sale to each project
element. At the land sale closing, one-half of the fee will be paid to the Developer and one-
half of the fee shall be deposited with the City/HRA, until the City/HRA has received
$250,000 as security against defaults and for Phase II of the project. The City/HRA may
use this $250,000 to fund public redevelopment costs on an interim basis until payable to
the Redeveloper. No interest shall be paid by the City/HRA on this fee. If the Redeveloper
defaults in any fashion of the Redevelopment contract, all Redeveloper Fee Hold Back shall
be forfeited to the City/HRA. The Redeveloper shall be paid back the Hold Back Fee upon
the earlier to occur of the following: a City/HRA decision not to proceed with Phase II, a
determination by the City/HRA to proceed with Phase II with a developer other than
Redeveloper or as follows: $100,000 upon commencement of construction of the Phase IIA
and$100,000 upon commencement of the Construction of Phase IIB by the Redeveloper.
m. Default. In the event that the Redeveloper fails to commence an Element of the Project by
the default dates set forth in the chart on page 2 of this memorandum, the City and HRA
may terminate its obligations under the Redevelopment Contract as regards that Element of
the Project.
Upon any termination, Tax Increment from portions of the Project, which have not been
commenced, shall, at the election of the City and HRA,no longer be pledged and available
to repayment of any "pay as you go" tax increment. As part of the underwriting process,
the parties and the underwriters, shall establish the terms of any Tax Increment obligations
to both recognize this provision and allow effective issuance of the debt. Tax Increment
from completed and under construction Elements of the Project shall remain available for
outstanding Tax Increment debt. A default shall not prevent refinancing with Tax Exempt
Take-out Debt on completed Elements of the Project.
n. Assignment. The Redeveloper may create and assign its development rights and the right
to enter into the Redevelopment Contract to a single purpose entity to undertake the
Project, without the consent of the City and HRA, provided Len Pratt and John Ordway
continue to hold a majority voting interest in the new entity. The Redeveloper may
thereafter assign portions of the rights and obligations under the Redevelopment Contract
to the Commercial,Rental and For Sale Developers, with the consent of the City and BRA,
which shall not be unreasonably withheld.
76
Mike Mornson -Northwest Quadrant Redevelopment
September 17, 2003
Page 8
o. Land Purchase Price. Purchase price of land for each use will be reviewed and must be
shown to be at market and similar to what other projects are paying.
p. "But For"Analysis. Ehlers recommends that prior to final determination of Tax Increment
assistance that will be provided that a "But For" analysis be preformed to ascertain
appropriate level of assistance.
The elements of this transaction are within industry standards that Ehlers and Associates have seen
within the Metropolitan Area on these types of developments. At this time, we anticipate that a final
Development Agreement will be brought before the City Council and HRA in October for
consideration and approval. Please contact Sid Inman or I at 651-697-8500 with any questions.
cc: Jerry Gilligan—City Attorney
File
September 19, 2003
honv
ills eC:% FUTURE.COUNCIL AGENDA ITEMS
Meeting Date Meeting Type Staff Present Items/Issues
September 30 Work Session 7:00 pm Joint meeting with ISD#282
October 2 Special 5:00 pm Res. approve bid package for Public
Works/Fire Station
October 14 Regular Commendation for 2 firefighters
Consent-Ord., sac&wac (3rd reading)
C. Ranallo Cable Commission report
Presentation by Kay Andrews,Northwest Youth&
Family Services
Quarterly review of goals
• Ord.,re: Amend regular Council meeting schedule
(1"reading)
Ord.,re: Amend license ord. (heating)
October 28 Regular Planning Commission issues of October 21
November 4 Regular 8:00 pm
Canvass Election Hennepin County Assessor
November 25 Regular Planning Commission issues of November 18
Monday, 5:00 pm- Interview Commissioners
December 8
Monday, Regular&Truth
• December 8 in Taxation
Monday, Continuation of
December 15 Truth in •
Taxation, if
needed
•
September 2003
Monthly Planner
1 2 3 4 5 6
LABOR DAY
7 8 9 10 11 12 13
7:00 PM Parks 7:00 PM Council
Commission Meeting
meeting
-5:30 pm Fire
Department
Groundbreaking:
-5:00 pm-Public
Works
14 15 16 17 18 19 20
7:00 PM
Planning
Commission
Meeting
Groundbreaking
at Stonehouse
21 22 23 24 25 26 27
5:30 PM Council
Work Session in
lunch room
7:00 PM Council
Meeting
28 29 30
7:00 PM COL ncil Aug 2003 Oct2003
Joint Meeting S M T W T F S S M T W T F S
wilh School 1 2 1 2 3 4
Board 3 4 5 6 7 8 9 5 6 7 8 9 10 11
10 11 12 13 14 15 16 12 13 14 15 16 17 IS
17 18 19 20 21 22 23 19 20 21 22 23 24 25
24 25 26 27 28 29 30 26 27 28 29 30 31
31
October 2003
Monthly Planner
1 2 3 4
Sep 2003 Nov 2001
5:00 PM Special
S M T W T F S S M T W T F S Council Meeting
1 2 3 4 5 6 I
7 8 9 10 11 12 13 2 3 4 5 6 7 8
14 15 16 17 18 19 20 9 10 11 12 13 14 15
21 22 23 24 25 26 27 16 17 18 19 20 21 22
28 29 30 23 24 25 26 27 28 29
30
5 6 7 8 9 10 11
12 13 14 15 16 17 18
7:00 PM Parks 7:00 PM
Commission Regular Council
Meeting Meeting
19 20 21 22 23 24 25
7:00 PM
Planning
Commission
Meeting
26 27 28 29 30 31
7:00 PM
Regular Council
Meeting
CITY OF ST. ANTHONY
HOUSING AND REDEVELOPMENT AUTHORITY AGENDA
September 23, 2003
Call to Order
Roll Call
I. Approval of September 23, 2003 H.R.A. Agenda.
11. Consent Agenda.
These items are considered routine and will be enacted by one motion. There will be no
separate discussion of these items unless a Councilmember or citizen so requests, in which
event the item will be removed from the Consent Agenda and placed elsewhere on the agenda.
A. Approve September 9, 2003 H.R.A. Minutes. (pp. 1 - 2)
B. Claims. (p. 3)
Ill. Public Hearings.
IV. General Policy Business of the H.R.A.
A. Resolution HRA 03-016, re: Modify Redevelopment Plan for Redevelopment
Project Area No. 3, Establish Tax Increment Financing District No. 3-5 Within
Redevelopment Project Area No. 3 & Approve Removal of Certain Parcels from
HRH's TIF District No: 3-3 for Inclusion in District No. 3-5 and Adopt a TIF Plan
Therefor. Action requested. (pp. 4 - 8)
B. Resolution HRA 03-017, re: Redevelopment of Property in Redevelopment
Project Area No. 3 and Authorizing the Preparation, Execution and Delivery of a
Contract for Private Redevelopment Thereof. Action requested. (pp. 9 - 18)
V. Staff Reports.
VI. H.R.A. Commissioner Comments.
VII. Information and Announcements.
VIII. Adjournment.
I CITY OF ST. ANTHONY 01
2
3 HOUSING AND REDEVELOPMENT AUTHORITY MEETING
4
5 SEPTEMBER 9, 2003
6
7 CALL TO ORDER.
8 Chair Hodson called the meeting to order at 8:42 p.m.
9
10 ROLL CALL.
11 Commissioners present: Chair Hodson; Commissioners Sparks, Thuesen, Horst, and Faust.
12 Commissioners absent: None.
13 Also present: Executive Director Michael Mornson.
14
15
16 I. APPROVAL OF SEPTEMBER 9, 2003, H.R.A. AGENDA.
17 Motion by Commissioner Sparks to approve the September 9, 2003, Housing and
18 Redevelopment Authority Agenda as presented.
19
20 Motion carried unanimously.
21
22 II. CONSENT AGENDA.
23 Motion by Commissioner Sparks to approve the Consent Agenda, which consisted of:
24
25 A. H.R.A. Meeting Minutes of August 12, 2003; and
26 B. Claims.
27
28 Motion carried unanimously.
29
30 III. PUBLIC HEARINGS.
31 None.
32
33 IV. GENERAL POLICY BUSINESS OF THE H.R.A.
34 None.
35
36 V. STAFF REPORTS.
37 Executive Director Mornson noted Autumn Woods would have a rehearing on October 21, 2003.
38
39 V. H.R.A. COMMISSIONER COMMENTS.
40 None.
41
42 VI. INFORMATION AND ANNOUNCEMENTS.
43 None.
44
45 VII. ADJOURNMENT.
46 Chair Hodson adjourned the meeting at 8:43 p.m.
47
48
®2
Housing and Redevelopment Authority Meeting Minutes
September 9, 2003
Page 2
1 Respectfully submitted,
2
3 Marjorie R. Jenkins
4 TimeSaver Off Site Secretarial, Inc.
5
ACS FINANCIAL SYSTEM ST. ANTHONY VILLAGE
09/16/2003 11: Check Register GL540R-V06.55 PAGE 1
BANK VENDOR CHECK# DATE AMOUNT
HRA1 HOUSING & REDEV CHECKING
007256 BELAIR BUILDERS, INC. 5260 09/24/03 1,778.00
008985 C70 ASSOCIATES 5261 09/24/03 10,000.00
008667 DAHLGREN, SHARDLOW AND U 5262 09/24/03 2,085.75
000820 DORSEY & WHITNEY 5263 09/24/03 10,305.80
008698 EHLERS & ASSOCIATES, INC 5264 09/24/03 22,556.25
008961 OERTEL ARCHITECTS 5265 09/24/03 115,000.00
.00001 RED PINE INDUSTRIES, INC 5266 09/24/03 4,800.00
.00002 RETROFIT RECYLCLING 5267 09/24/03 8,425.00
HOUSING & REDEV CHECKING 174,950.80 ***
w
04
HOUSING AND REDEVELOPMENT AUTHORITY OF ST.ANTHONY
CITY OF ST. ANTHONY
RAMSEY COUNTY
STATE OF MINNESOTA
H.R.A. RESOLUTION NO. 03-016
RESOLUTION ADOPTING A MODIFICATION TO THE REDEVELOPMENT PLAN FOR
REDEVLEOPMENT. PROJECT AREA NO 3; AND ESTABLISHING TAX INCREMENT
FINANCING DISTRICT NO. 3-5 WITHIN REDEVELOPMENT PROJECT AREA NO. 3 AND
APPROVING THE REMOVAL OF CERTAIN PARCELS FROM THE HRA'S TAX INCREMENT
FINANCING DISTRICT NO.3-3 FOR INCLUSING IN DISTRICT NO.3-5 AND ADOPTING A TAX
INCREMENT FINANCING PLAN THREFOR
WHEREAS,The City Council and Housing and Redevelopment Authority(the"HRA") of the City of
St.Anthony previously approved the establishment of Tax Increment Financing District No.3-Ramsey County
("District No. 3-3") within Redevelopment Area No. 3 and approved the Tax Increment Financing Plan
therefor and approved the establishment of Redevelopment Project No. 3 and approved the Redevelopment
Plan for Redevelopment Project Area No 3. (the"Redevelopment Plan")therefor. It has been proposed by the
Board of Commissioners (the "Board") of the HRA and the City of St. Anthony that (i) the HRA adopt a
Modification to the Redevelopment Plan for Redevelopment Project Area No. 3 (the "Redevelopment Plan
Modification")and establish Tax Increment Financing District No.3-5 and adopt a Tax Increment Financing
Plan (the "TIF Plan") therefor (the Redevelopment Plan Modification and the TIF Plan are referred to
collectively herein as the "Plans"), and (ii)modify the tax increment financing plan for District No. 3-3 by
removing from District 3-3 the parcels in District No. 3-3 which are to be included within the newly
established District No. 3-5; all pursuant to and in conformity with applicable law, including Minnesota
Statutes,Sections 469.090 through 469.1081, 469.001 through 469.047,and 469.174 through 469.1799,all
inclusive,as amended, (the"Act")and as reflected in the Plans and presented for the Board's consideration;
and
WHEREAS,the HRA has investigated the facts relating to the Plans and has caused the Plans,to be
prepared; and
WHEREAS,the HRA has performed all actions required by law to be performed prior to the adoption
of the Plans.The HRA has also requested the City Planning Commission to provide for review of and written
comment on Plans and that the Council schedule a public hearing on the Plans upon published notice as
required by law.
NOW,THEREFORE,BE IT RESOLVED by the Board as follows:
1. The HRA hereby finds that Tax Increment Financing District No.3-5 is in the public interest
and is a"redevelopment district"under Minnesota Statutes,Section 469.174,Subd. 10(a)(1),and finds that the
adoption of the proposed Plans conform in all respects to the requirements of the Act and will help fulfill a
need to develop an area of the State of Minnesota which is already built up and that the adoption of the
proposed Plans will help provide employment opportunities in the State and in the preservation and
enhancement of the tax base of the City and the State because it will discourage commerce and industry from
moving their operations to another state or municipality and thereby serves a public purpose.
2. The HRA further finds that the Plans will afford maximum opportunity,consistent with the
sound needs for the City as a whole, for the development or redevelopment of the project area by private
os
enterprise in that the intent is to provide only that public assistance necessary to make the private developments
financially feasible.
3. Conditioned upon the approval thereof by the City Council following its public hearing
thereon, the Plans, as presented to the HRA on this date, are hereby approved, established and adopted and
shall be placed on file in the office of the City Clerk.
4. Upon approval of the Plans by the City Council, the staff, the HRA's advisors and legal
counsel are authorized and directed to proceed with the implementation of the Plans and for this purpose to
negotiate,draft,prepare and present to this Board for its consideration all further plans,resolutions,documents
and contracts necessary for this purpose. Approval of the Plans does not constitute approval of any projector a
Development Agreement with any developer.
5. Upon approval of the Plans by the City Council,the City Clerk is authorized and directed to
forward a copy of the Plans to the Minnesota Department of Revenue pursuant to Minnesota Statutes 469.175,
Subd. 4a.
6. The HRH's staff shall take such action as is necessary to (i) cause the County Auditor of
Ramsey County to decertify from District 3-3 the parcels in District No. 3-3 which are to be included in
District 3-5 and (ii) notify the County Auditor of the reduction in the geographic area of District No. 3-3
caused by the decertification of such parcels.
7. The City Clerk is authorized and directed to forward a copy of the Plans to the Ramsey
Counties Auditor and request that the Auditor certify the original tax capacity of the District as described in the
Plans, all in accordance with Minnesota Statutes 469.177.
Approved by the Board of Commissioners of the Housing and Redevelopment Authority of St.
Anthony this 23rd day of September, 2003.
Chair
ATTEST:
Executive Director
06
Proposed TIF District 3-5
Location Map
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250 3r A 8 Wti:SM 4M
Parcel to be decertifieds, W01
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from Di strict 9G
MAP OF PROPOSED TIF DISTRICT
�Vk Parcel to be decertified
� r � y �,� � from District 9G
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f om District 9G
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r�z77s' &-.ca �r ..�� F° ' 26 y' Ilk
t:a+'.... Northwest Quadrant
� >s TIF 3-5
St.Anthony,Minnesota
.. -- .' ... 100. 0 100,200 Feet
EHLERS
& ASSOCIATES INC 07
To: Mike Morrison—City Manager
o
From: Stacie Kvilvang—Associate Financial Advisor
2
Sid Inman—Executive Vice President
Date: September 16,2003
Subject: Creation of Tax Increment District#3-5 and decertification of parcels from Apache
Tax Increment District#3-3 by the City Council
Overview:
The City is considering .establishing Tax Increment Financing District 3-5 to facilitate the
redevelopment of the Apache Plaza Shopping Center and surrounding area (commonly referred to as
the Northwest Quadrant), in accordance with the Redevelopment Plan. TIF District 3-5 consists of 24
parcels of land and adjacent and internal rights-of-way and is approximately 65 acres in size (see
attached map). The duration of District #3-5 will be 25 years from the date of receipt of the first
increment, which will be approximately 2006. Thus, it is estimated that District #3-5, including any
modifications of the Plan for subsequent phases or other changes, would terminate in 2031.
Currently, four (4) parcels that are to be included in District #3-5, are located within Apache TIF
District#3-3, a Redevelopment District created in 1993. These parcels are:
P t I. ME", _4 W
Pond by Cub 31-30-23-31-0028
Pond Behind Mini Mall 31-30-23-31-0033
Vacant Land—Between SAV U& Conoco 31-30-23-34-0014
Vacant Land -Next to Taco Bell 31-30-23-34-0015
The proposed action before you this evening requests approval of the tax increment financing plan for
District#3-5 and approval of the decertification of the foregoing parcels from Apache TIF District#3=3
in order to include them in the newly created District#3-5.
Primary issues/alternatives to consider:
Why are the City and HRA creating TIF District#3-5?
TIF District 3-5 (Northwest Quadrant) is located within the boundaries of Silver Lane on the North,
37th Avenue NE on the south, Silver Lake Road on the east and Stinson Boulevard on the West.
Currently the Northwest Quadrant is underutilized, with obsolete structures and physical arrangements,
substantial vacant areas and high building vacancies, inconsistent legal restrictions on redevelopment
and outdated and inadequate public infrastructure and circulation. Redevelopment has been impeded
by fragmentation of ownership and the difficulty of redevelopment without a consistent overall plan
ensuring compatible adjacent uses. Due to these issues, the redevelopment of the Northwest Quadrant
has been a priority redevelopment goal for the City for the past ten (10) years and creation of TIF
District#3-5 will assist in offsetting the high costs associated with the redevelopment.
Does District#3-5 meet the qualifications of a Redevelopment District? 08
District #3-5 consists of 24 parcels to be redeveloped for retail, office, residential and comn
purposes. An inventory completed by LHB Architects for the parcels concluded that parcels consisting
of 70 percent of the area in the District are occupied by buildings, streets, utilities or other
improvements. LHB also conducted an interior and exterior inspection of all the parcels/properties and
concluded that more than 50 percent of the buildings in the District, not including outbuildings, are
structurally substandard to a degree requiring substantial renovation or clearance (meaning the
buildings could not be modified to satisfy the building code at a cost of less than 15 percent of the cost
of constructing a new structure of the same square footage and type on the site....see attached report).
What is being developed within TIF District#3-5?
The Development Team that was selected by the City in 2002 to undertake the redevelopment of the
Northwest Quadrant has submitted a Development Plan for the area that consists of the construction of
a 142,000 sq/ft big box retailer, 56,000 sq/ft of smaller retail, 25,000 sq/ft of office, 220 market rate
apartments, 336 urban flats, 26 three-story town homes, 80 senior Co-Op units and potentially 44
condominiums. In addition significant public improvements will be completed which consist of the
construction of a new east/west collector street (39ffi Avenue —new 4-lane divided roadway), new and
increased storm water ponding to address poor water quality issues in Silver Lake due to the current
development, reconstruction of a lift station at Foss Road, reconfiguration of the existing trunk water
main on the site and the creation of public open spaces and water features.
What will the Tax Increment be used for?
Tax Increment will be utilized for qualified costs such as, but not limited to, land acquisition,
demolition, relocation, public utilities, infrastructure, site improvements, landscaping, rehabilitation,
any financing cost, etc. The amount and use of TIF by private developers will be outlined in the
individual development agreements and approved by the City Council and the City's Housing and
Redevelopment Authority(HRA).
Does the TIF Plan for District#3-5 conform to the Comprehensive Plan for the development or
redevelopment of the City as a whole?
The Plan was reviewed by the Planning Commission on September 16, 2003. The Commission found
that the Development Plan for TIF-District-075-is consistent with the City's Comprehensive Plan.
Attachments:
Resolution
Exhibit A
TIF District Location Map
Tax Increment District #3-5 Plan
Substandard Inspection Report
09
HOUSING AND REDEVELOPMENT AUTHORITY OF ST.ANTHONY
CITY OF ST.ANTHONY
H.R.A.RESOLUTION NO.03-017
RESOLUTION RELATING TO THE REDEVELOPMENT OF PROPERTY IN
REDEVELOPMENT PROJECT AREA NO. 3 AND AUTHORIZING THE PREPARATION,
EXECUTION AND DELIVERY OF A CONTRACT FOR PRIVATE REDEVELOPMENT
THEREOF
WHEREAS, the Housing and Redevelopment Authority of the City of St. Anthony (the "HRA") and
the City of St. Anthony (the "City") have identified an area located in the northwest portion of the City (the
"Northwest Quadrant") for study regarding the area's decline and opportunities for potential redevelopment;
and
WHERAS, the City's HRA hired consultants and appointed a citizen-based task force to develop a
planning framework for redevelopment of the Northwest Quadrant;and
WHEREAS, the consultants and task force developed the Northwest Quadrant Redevelopment Plan
("Northwest Quadrant Plan"), dated July 2001, which describes the planning process, the existing conditions
and provides redevelopment options for the Northwest Quadrant; and
WHEREAS, the City and HRA reviewed the Northwest Quadrant Plan and agreed with the findings
contained therein; and
WHEREAS, a portion of the property in the Northwest Quadrant is included in Redevelopment
Project Area No. 3 established by the Redevelopment Plan for Redevelopment Area No. 3 of the HRA as
modified(as so modified the "Redevelopment Plan"); and
WHEREAS, the City and HRA have been proceeding with plans and discussions concerning the
redevelopment of a portion of the property in Redevelopment Project Area No. 3 ; and
WHEREAS, on April 23, 2002 the City Council ("Council") approved Resolution #2002- 042
authorizing the City to enter into a Pre-Redevelopment Contract with Pratt-Ordway-Dominium (Developer
Limited Partnership)("the Developer") for such redevelopment; and
WHEREAS, the Developer is proposing to construct approximately 211,000 sq/ft of retail and office
space, 220 market rate rental units, 336 owner-occupied flats, 26 three story town homes and 80 senior
cooperative units on a portion of the property in Redevelopment Project Area No. 3; and
WHEREAS, the City and HRA believe that such proposed redevelopment of the Redevelopment
Property will result in increased housing units to meet the demands of the marketplace, the increase of
employment opportunities for residents of the city, the increase of the value of property,subject to taxation by
the City and other local government units, and the increase of general economic activity in the City, all of
which will reduce unemployment, improve living conditions, promote desirable redevelopment of land,
remove blight and prevent the emergence of additional blighted property and areas, and encourage and
enhance the general health and welfare of the residents of the City; and
WHEREAS, representatives of the Developer and of the City and HRA have been discussing the
proposed terms of such development by the Developer on the Redevelopment Property and the means by
which such development will be undertaken and the extent of public assistance required for such development,
which proposed terms are contained in a Term Sheet (the "Term Sheet") negotiated by such parties, a
summary of which has been presented to and reviewed and discussed by this Council.
10
r
NOW, THEREFORE,BE IT RESOLVED,by the Board as follows:
1. The HRA and Council believes that the redevelopment of the Redevelopment Property as proposed
by the Developer,'are in the vital and best interests of the City and the proposed tax increment and other public
assistance to be provided by the City and HRA to such redevelopment primarily serve a public purpose and are
in the public interest by permitting the redevelopment of property in the City in a manner that meets the goals
and objectives of the Redevelopment Plan and is in accordance with the provisions of applicable federal, state
and local laws.
2. The Executive Director is hereby authorized and directed on behalf of the HRA to negotiate a
Contract for Private Development, by and' among the City, the HRA and the Developer and related
agreements (the Contract for Private Redevelopment and related agreements are herein together referred to as
the"Redevelopment Agreement") the terms of which shall not, in his opinion, substantially alter or impair the
rights and obligations of the City and HRA as set forth in the Term Sheet, and the form of which shall be
approved by the City Attorney.
3. The Chair and Executive Director are hereby authorized to execute and deliver on behalf of the
HRA the Redevelopment Agreement subject to the conditions set forth in paragraph 2.
4. Neither the adoption of this resolution nor the Term Sheet shall constitute a contract or agreement
on behalf of the HRA, and the Redevelopment Agreement shall not be deemed effective or legally
enforceable against the HRA until executed and delivered on behalf of the HRA by the Chair and Executive
Director.
Adopted this day of , 2003.
Chair
Executive Director
11
EHLERa
& ASSOCIATES INC
To: Mike Momson—City Manager
®
HRA
2 From: Stacie Kvilvang—Associate Financial Advisor
�jW Sid Inman—Executive Vice President
Date: September 17, 2003
Subject: Northwest Quadrant Redevelopment - Development Proposal and Terms of
Development Agreement
The Development Team has refined their concept for redevelopment of the above referenced project
area. This concept includes the acquisition and subsequent redevelopment of the following properties:
I—Commercial
Apache Plaza 31-30-23-34-0916 IB—For Sale Housing
I—Rental Housing
Vacant New Market Site 31-30-23-33-0002 I—Rental Housing
Taco Bell 31-30-23-34-0018 1—Commercial
SAV Inires Plus 31-30-23-34-0017 I—Commercial
2 Vacant HRA Parcels 31-30-23-34-0014 I—Commercial
31-30-23-34-0019
Vacant Parcel around Taco Bell 31-3023-34-0015 I-Commercial
Pond behind Cub Foods 31-30-23-31-0028 1-Commercial
Pond Behind Mini Mall 31-30-23-31-0033 I-Commercial
Cub Foods I-Commercial
-A ache Squares 31-30-23-33-000.1 IA—For Sale Housing
Apache Office 31-30-23-33-0011 IA—For Sale Housing
JA Cadwallader Office 31-30-23-33-0012 IA—For Sale Housing
Bakers Square &Parking Lot 31-30-23-33-0013 11A—Housing
31-30-23-33-0014
Don's Car Wash 31-30-23-33-0005 IIA-Housing
Firestone 31-30-23-33-0006 IIB—Town Homes
Ed's Carwash 31-30-23-33-0010 IIB—Town Homes
Vacant parcel on Stinson Blvd IIB—Town Homes
Fuel Mart 31730-23-33-0003 IIC—Housing
Carwash on Stinson Blvd 31-30-23-33-0004 IIC -Housing
LEADERS IN PUBLIC FINANCE
3060 Centre Pointe Drive Phone: 651-697-8506 Fax: 651-697-8555
Roseville, MN 55113-1105 skvilvang @ehlers-inc.com
12
Mike Morrison—Northwest Quadrant Redevelopment
September 17,2003
Page 2
The Development will be divided into the following three phases:
. �
Develo menuDesu ed �,� a lopm n
ent� 2toota e/#uof _ a°� Defau'1 ate
x,- �.rg slue on
Phase I Big Box 142,000 S /Ft 2004 -2005 Spring 2004 June 1,2005
Phase I Retail 56,000 S /Ft 2004-2005 Spring 2004 June 1,2005 $18.81
Phase I Office 25,000 S /Ft 2004-2005 Spring 2004 June 1,2005 Million
Phase I SAV 11 8,800 S /Ft 2004-2005 Spring 2004 June 1,2005
Phase I Market Rate 220 Units 2004-2006 Fall 2004 July 1,2005' $19.8 Million
Apartments
Phase IA Urban Flats 128 Units 2004-2006 Fall 2004 July 1,2005 $30.72
Million
Phase IB Urban Flats 128 Units 2005-2007 Fall 2005 July 1, 2006 $30.72
Million
Phase IIA 80 Units 2005-2007 Fall 2005 July 1, 2006 $16 Million
Senior Co-Op
Phase 11B 26 Units 2005-2006 Fall 2005 July 1, 2006 $9.75 Million
3-Story Town Homes
Phase IIC Urban Flats 80 Units 2006-2007 Fall 2006 July 1, 2007 1 $19.2 Million
TOTAL N/A N/A N/A N/A 1 $145 Million
Based upon these options,Ehlers and the Development Team have estimated that the cost to acquire all
the land, relocate existing businesses, demolish the structure and complete the public improvements
will cost approximately $16 million for Phase I and $4 million for phase II. To assist in offsetting this
cost, the Developer has proposed the following payment for land and special assessments for the Phase
I Development:
Q�F -_&—_sa.'ass.e` `QF r ban c��Y{v 4. bbaan Elats ;.� se �4r �a,'
Land Cost $2,779,360 $960,000 $1,600,000 $2,249,940
-._.$7�T,r5a o 8�9
...
,300
$3.54 s /ft $7,500/unit $12,500/unit $10,227/Unit
Special $1,705,000 $325,000
$0 $0 $2,030,000
Assessment ($2.17 sq/ft) ($2,539/Unit)
Total $4,484,360 $1,285,000 $1,600,000 $2,249,940 $9,619,300
$5.71 s /ft)
The for sale urban flats will be paying an average of$10,000 per unit, but it is divided among the two
phases to allow the initial phase to pay less for land up front to allow the Developer the flexibility to
address any market issues. It should be noted that Phase H land prices have not been submitted yet and
will be reviewed and compared to industry standards when our office receives them.
Based upon the above referenced development program, following is a listing of the proposed business
terms for the final Development Agreement:
1. General
a. Parties. The Redeveloper will be one or more single asset entities created by Pratt Ordway
LLC to act as the Redeveloper. Pratt Ordway will assign its purchase agreement for the
Ste.Marie Property and any other property it obtains purchase agreements upon,to this
13
Mike Morrison -Northwest Quadrant Redevelopment
September 17,2003
Page 3
entity. The Redeveloper will subdivide the redevelopment area and sell various portions of
the property to other entities (in which Pratt Ordway, its principals or affiliates may be
participants,with the exception of the rental housing portion).
2. Tax Increment.
a. Creation of a Redevelopment TIF District. The City and HRA are required to create a
Redevelopment TIF District by September 30, 2003, to assist in offsetting the high costs
associated with redevelopment. It is understood that the City and HRA will be holding
public hearings on the creation of the District prior to this date, but that the City will not
request certification of the District until a Development Agreement is executed.
b. Amount of Increment: Based upon the latest Sources and Uses from the Development
Team, it is anticipated that the Phase I development will, generate approximately $13.3
million in present value tax increment. Of this increment, it is anticipated that the
Commercial and.For Sale Housing Development Team will require approximately $6.5 to
$8 million to complete the redevelopment and the Rental Housing Developer will require
approximately$2.7 million.
The Sources and Uses Statements and the amount of TIF for Phase II development are in
the process of being compiled.
c. Fiscal Disparities. Fiscal Disparities will be paid inside the district.
d. Administration Expense Allocation. Currently all TIF calculations show 5% of available
Tax Increment being available for administration. To the extent that the development will
require more than 95% of the TIF for actual redevelopment costs or coverage of bonds,the
City may elect to subordinate its 5% administration until the entire development comes on
line (it is anticipated that this will not be required at this time). In the alternative, if there is
excess increment, the City may increase its administration amount to the statutory limit of
10%.
e. TIF Notes. It is anticipated that the Development Team will finance their development
costs up front and that they will request the City to "take them out" after the development
is completed through the issuance of Tax Exempt TIF bonds. This is a tool that is used in
many of the metropolitan communities to assist developers with development and is a low
risk proposition for the City, since the developments will be constructed and paying taxes
when the City is issuing these bonds.
3. Public Improvements.
a. Roadway and Sanitary Sewer Improvements. 39"' Avenue will be reconstructed from
Silver Lake Road to Stinson Boulevard and upgrades will be made to the sanitary sewer
lines as well. It is anticipated that it will cost approximately $2.205 million to complete
these improvements and the cost will be assessed to and paid for by the development and
other benefiting properties within the TIF District as follows:
14
Mike Morrison -Northwest Quadrant Redevelopment
September 17,2003
Page 4
Large Retailer: $1,200,000 Paid up front or completion of roadway
Small Commercial: $500,000 Assessed over term of bonds
Phase IA For Sale Housing: $325,000 Paid at sale of units
Benefiting properties: $175,000 Assessed over term of bonds
TOTAL $2,205,000
The City will most likely be required to sell temporary bonds (1-year call date) to pay for
the construction up front then refinance the bonds once any prepaid special assessments are
received. Any amount in excess of the anticipated amount of$2.05 million will be paid
through Tax Increment generated from the project.
b. Site Improvements/Open Space. The Redeveloper will pay for the open space/ponding
and site improvements, which are estimated to cost approximately $1,430,000. They will
be reimbursed by the City and HRA for a portion or all of the site/ponding improvements
through Park Dedication Fees generated from the development (estimated at $205,000),
any grants the City may receive and from Tax Increment. The site improvements may be
phased over a three (3) year period if the City does not receive the $900,000 in LCDA
funds it requested from the Metropolitan Council. The phasing of the site improvements
will allow the Development Team to pay for the improvements as cash becomes available.
The Development will be responsible for the costs associated with maintaining the storm
water ponds and the City will be responsible for maintaining the open space around the
storm water ponds. The City and Redeveloper are currently discussing coordination and
responsibility for the maintenance, etc.
4. Miscellaneous.
a. City Liquor Store. The Redeveloper will construct and furnish a new Municipal Liquor
Store within the commercial development. It is anticipated that the Liquor Store will be
constructed prior to demolition of the existing store so as to cause minimal disruption to
the City's Liquor operation. Since Tires Plus will be required to relocate their business, the
City will work with them to find a suitable site to relocate to. It should be noted that the
City may need to condemn the Tires Plus lease if deemed necessary by the City Attorney.
The Redeveloper will pay the cost to relocate the existing Tires Plus building and the cost
to construct the new Liquor Store, up to an amount not to exceed$1,700,000.
b. Cub Foods. The Redeveloper has a signed purchase agreement for the existing Cub Foods
store for $10,850,000, inclusive of the restrictive property covenants. The Redeveloper
intends to rehabilitate the store to upgrade its appearance to the quality of the new
commercial development. It is estimated the cost of this "face lift" will be $580,000. The
agreed upon purchase price of the store does not allow the Redeveloper to obtain any more
debt on the property. Therefore, the City will provide the Developer TIF assistance for the
Store's rehabilitation as a qualified redevelopment costs. The funds will be pooled from
the newly created TIF District 3-5 to District 3-3.
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Mike Morrison -Northwest Quadrant Redevelopment
September 17, 2003
Page 5
In addition, the City agrees that absent this sale, the property was "under threat of
condemnation" and would consider taking all necessary actions to acquire the site if the
acquisition had not been negotiated.
c. Commercial Property Acquisition. The Redeveloper has requested assistance in acquiring
the three commercial properties that the Phase IA For Sale housing units will be located
upon (Apache Squares, Apache Office and JA Cadawallader Office). The Development
Team has had discussions with Fannie Mae to assist in providing the "up front" money
needed to acquire these properties. Fannie Mae is willing to provide this assistance but
will require, as collateral, the land,Developer Guarantee and a pledge funds from the City.
It is anticipated that the City will utilize funds from the Water Filtration Fund to utilize as
collateral for the loan and will not be required to provide its General Obligation Taxing
Authority. The terms of the collateral are still be discussed with Fannie Mae and terms of a
revolving fund for future property acquisitions is still being discussed with the
Redeveloper. Any final loan agreement will be brought before the City Council and HRA
for approval.
The Redeveloper will be required to have 20% of the units in the first Phase IA building
sold prior to the City considering advancing the loan funds from Fannie Mae. In addition
the Redeveloper will need to have obtained the construction financing for the land prior to
advancement of the loan.
d. Profit Sharing on For Sale Urban Flats. The Developer of the For Sale housing units
anticipates a twelve (12) percent profit on the development. Once the Developer obtains
this profit margin, they will provide a prorated "pay back" to the City and HRA of 25% of
the excess profit. If the project profit exceeds fifteen (15) percent, then the City and
HRH's prorated share of the profit will be increased to 50%. It should be noted that the
profit calculations exclude any unit"upgrades"requested by homeowners.
e. Below Market Profit TIF Assistance Increase. Provided the For Sale Developer is not in
default, in the event the return to the For Sale Developer is less than 12%, the City and
HRA shall provide the For Sale Developer a subordinated Pay-As-You-Go (PAYG) Tax
Increment Note in the amount needed to attain a 12%return. The Subordinated TIF Note
shall be payable solely from the amounts of Available Tax Increment on the For Sale
Element not utilized to pay the Tax Exempt TIF Refinancing or the City4M A 5%
administration, on the For Sale Element (i.e. coverage, inflation or excess TIF). We are
still finalizing negotiations on when the subordinated TIF note would be paid to the
Developer and anticipate we will have it finalized by the September 23, 2003 meeting.
f. Look Back Provision. As an Exhibit to the Development Agreement, a mutually agreed
upon preliminary development proformas for the For Sale Housing and Commercial
Development will be attached. This will be the basis for determination of assistance for the
developments. When the developments are completed the actual development proformas
will be compared with the preliminary development proformas. If the projects perform
better than anticipated and the For Sale Developer receives their required profit amount of
12% and the Commercial Developer meets their construction and lease goals then the
excess proceeds will be disbursed to the City and HRA as excess TIF and will be made
available for Phase H developments within the TIF District.
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Mike Morrison -Northwest Quadrant Redevelopment
September 17,2003
Page 6
g. Rental Housing Development. The City and HRA will enter into a separate redevelopment
contract with the Rental Housing Developer. A separate But-For analysis will be
completed for this portion.
h. Condemnation. The Redeveloper will utilize reasonable efforts to acquire all property
privately prior to requesting the City to initiate condemnation, including use, where
appropriate of City sponsored mediation. The City will agree to undertake condemnation
of all real properties located within the Redevelopment District, including any leaseholds,
easements, restrictive covenants or other or other legal or equitable interest that encumber
the Redevelopment District and would restrict redevelopment as contemplated.
Condemnation shall be undertaken on a schedule mutually agreed to between the
Redeveloper and the City.
All costs of condemnation proceedings, including, but not limited to legal fees, filing fees,
costs, appraisal fees and title work, shall be paid by the Redeveloper, subject to
reimbursement of certain costs as a public redevelopment cost from Tax Increment in
accordance with the Redevelopment Agreement. The Redeveloper shall enter into a
Reimbursement Agreement with the City to reimburse the costs of condemnation proceeds,
condemnation awards and relocation as incurred for acquisition of the Phase I property.
i. Advancement and Reimbursement to Redeveloper. The Redeveloper has reimbursed and
agrees it will in the future continue to promptly reimburse the City and HRA for all costs
of the City and Authority in advancement of the Project, including but not limited to the
costs of the City Consultants, financial analysis of the Project and the Tax Increment Plan,
Redevelopment and TIF District analysis and creation, legal fees, survey and title costs,
environmental review costs,environmental site investigation costs and other similar costs.
The Redeveloper will be reimbursed for these costs and costs associated with acquiring and
holding the Apache Plaza property and other overhead as a qualified Tax Increment cost in
an amount that is currently estimated to be$2,645,000 and individually listed as follows:
Predevelopment Costs(Public/Private): $1,250,000
Apache Mall Holding Costs $355,000
Apache Capitalized Interest: $100,000
Developer Overhead/Administration $590,000
Redeveloper Capitalized Interest—Project Costs: $350,000
TOTAL $2,645,000
The Redeveloper shall cost certify all such private third party costs and expenses of the
developer to the reasonable satisfaction of the City and HRA. Any cost savings will be
considered available Tax Increment for other qualified costs in the Redevelopment District.
j. Redeveloper Incentive Payment. Any costs savings by the Redeveloper on negotiating the
purchase, relocation (only due to non statutory payments) and demolition of the three
commercial properties for the Phase IA For Sale Housing component will be used to first
cover any overruns in any other Redeveloper category and second shall be paid one-half to
the Redeveloper and one-half shall be available.to the City and HRA for other public
17
Mike Mornson -Northwest Quadrant Redevelopment
September 17, 2003
Page 7
redevelopment costs. The Incentive Fee will not be payable to the Redeveloper if he is in
default under the Redevelopment Contract.
k. Grants. The City and HRA will provide the Redeveloper with the $586,000 grant it
received from the Metropolitan Council for the Asbestos Abatement at Apache Plaza. The
City and HRA will use it's best efforts to obtain LCDA and Tax Base Revitalization grant
funding and any other available funding from Metropolitan, Sate and Federal Sources.
1. Master Redeveloper Fee. The Master Redeveloper will be paid a $1 million fee for the
Phase I development. The fee will be paid as follows:
Rental Housing Sale: $500,000
Commercial Sale: $300,000
For Sale Housing Sale: $200,000
The Redeveloper will be paid at the time of the closing of the land sale to each project
element. At the land sale closing, one-half of the fee will be paid to the Developer and one-
half of the fee shall be deposited with the City/HRA, until the City/HRA has received
$250,000 as security against defaults and for Phase II of the project. The City/HRA may
use this $250,000 to fund public redevelopment costs on an interim basis until payable to
the Redeveloper. No interest shall be paid by the City/HRA on this fee. If the Redeveloper
defaults in any fashion of the Redevelopment contract,all Redeveloper Fee Hold Back shall
be forfeited to the City/HRA. The Redeveloper shall be paid back the Hold Back Fee upon
the earlier to occur of the following: a City/HRA decision not to proceed with Phase II, a
determination by the City/HRA to proceed with Phase II with a developer other than
Redeveloper or as follows: $100,000 upon commencement of construction of the Phase IIA
and$100,000 upon commencement of the Construction of Phase IIB by the Redeveloper.
m. Default. In the event that the Redeveloper fails to commence an Element of the Project by
the default dates set forth in the chart on page 2 of this memorandum, the City and HRA
may terminate its obligations under the Redevelopment Contract as regards that Element of
the Project.
Upon any termination, Tax Increment from portions of the Project, which have not been
commenced, shall, at the election of the City and HRA,no longer be pledged and available
to repayment of any "pay as you go" tax increment. As part of the underwriting process,
the parties and the underwriters, shall establish the terms of any Tax Increment obligations
to both recognize this provision and allow effective issuance of the debt. Tax Increment
from completed and under construction Elements of the Project shall remain available for
outstanding Tax Increment debt. A default shall not prevent refinancing with Tax Exempt
Take-out Debt on completed Elements of the Project.
n. Assignment. The Redeveloper may create and assign its development rights and the right
to enter into the Redevelopment Contract to a single purpose entity to undertake the
Project, without the consent of the City and HRA, provided Len Pratt and John Ordway
continue to hold a majority voting interest in the new entity. The Redeveloper may
thereafter assign portions of the rights and obligations under the Redevelopment Contract
to the Commercial, Rental and For Sale Developers, with the consent of the City and HRA,
which shall not be unreasonably withheld.
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Mike Morrison -Northwest Quadrant Redevelopment
September 17, 2003
Page 8
o. Land Purchase Price. Purchase price of land for each use will be reviewed and must be
shown to be at market and similar to what other projects are paying.
p. "But For" Analysis. Ehlers recommends that prior to final determination of Tax Increment
assistance that will be provided that a "But For" analysis be preformed to ascertain
appropriate level of assistance.
The elements of this transaction are within industry standards that Ehlers and Associates have seen
within the Metropolitan Area on these types of developments. At this time, we anticipate that a final
Development Agreement will be brought before the City Council and HRA in October for
consideration and approval. Please contact Sid Inman or I at 651-697-8500 with any questions.
cc: Jerry Gilligan—City Attorney
File