HomeMy WebLinkAboutCC PACKET 05152000 Meeting Sheet
IIIIII VIII VIII VIII VIII VIII IIII IIII
100565
BOX: 17
Folder: CC PACKETS 1999-2001
Document: CC PACKET 05152000
. ain tho
illa e
CITY OF ST. ANTHONY
CITY COUNCIL WORK SESSION AGENDA
Monday, May 15, 2000
10:00 A.M. - 2:30 P.M. (Working-Lunch)-
City Hall
Pa e
I. 10:00 A.M. REVIEW PLANNED UNIT DEVELOPMENT
ORDINANCE AND HILLCREST SCHEDULE WITH JOHN
SHARDLOW OF DSU . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1 - 14 .
oil. REVIEW TIF ISSUES AND SCHEDULE WITH JERRY
GILLIGAN -OF DORSEY & WHITNEY AND BOB THISTLE
OF SPRINGSTED, INC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15 - 28
III. DISCUSS ST. ANTHONY SHOPPING CENTER LEASE
PROPOSAL IDEA. . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . 29 - 30
IV. REVIEW PROPOSAL FROM SEH/RCM ON BUILDING
NEEDS ASSESSMENT. LETTER WILL BE AVAILABLE ON
FRIDAY (5/12) AND WILL BE PLACED IN COUNCIL'S
MAIL BOXES.
V.- REVIEW PROPOSAL FROM JIM LYNN ON CITY
MANAGER REVIEW. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 - 33
VI. DISCUSS PROPOSAL FROM EHLERS.
VII. OTHER BUSINESS.
VIII. ADJOURNMENT.
I. REVIEW OF PLANNED UNIT DEVELOPMENT
ORDINANCE AND HILLCREST SCHEDULE WITH
JOHN SHARDLOW OF DSU.
. --- MEMORANDUM
DATE: 5/4/00
TO: City Manager Morrison.
FROM: Assistant City Manager Isom
RE: UPDATE OF THE CRITICAL PATH FOR PLANNED UNIT DEVELOPMENT (PUD)
ORDINANCE/PROCESS AND HILLCREST DEVELOPMENT'S REDEVELOPMENT OF
APACHE PLAZA PROPERTY
To date the"Critical Path"is amended as follows:
Critical Path/Important Dates
Target Complete Task
4/18/00 4/18/00 Planning Commission meeting. Commission approved an amendment to the.
Comprehensive Plan. Commission to ask Hillcrest to withdraw their request for
zoning map change and zoning code amendment.
4/25/00 4/25/00 City Council meeting. Council to consider an amendment to the Comprehensive Plan.
4/27/00 4/26/00 Planning Consultant. Consultant to submit "Application for Comprehensive Plan
Amendment"to Metropolitan Council. Planning Consultant to facilitate the approval
of said amendment.
5/2/00 5/2/00 Planning Commission work session. Commission to hold work session with Planning
Consultant,staff,and Hillcrest to discuss the draft PUD ordinance and process.
5/9/00 ---- Planning Consultant. Consultant to submit final PUD ordinance and related forms,
applications,etc.to staff. Said ordinance and related documents shall be"approved
as to form"by City Attorney Soth. Additionally,Consultant to work with Hillcrest to
prepare them for the PUD process.
5/15/00 ---- City Council work session. Council to hold work session with Planning Commission
Representative,Planning Consultant,staff,and Hillcrest to discuss PUD ordinance and
process.
5/16/00 ---- Planning Commission meeting. Commission to hear PUD ordinance. Commission,
Consultant,and staff to hold/hear Hillcrest Development's"Application Conference"
and"Sketch Plan."
5/23/00 ---- City Council meeting. City Council to hear the PUD ordinance(one reading).
6/6/00 ---- Planning Commission work session. Commission to hold work session with Planning
Consultant,staff,and Hillcrest.
-- ---- 2
6/20/00 Planning Commission meeting. Commission to hear'Preliminary Development Plan"
(PUD/site specific)and make recommendations for approval or denial of said plan.
Commission to hear "Final Development Plan" for the Apache Plaza (building
specific). Commission also to hear plan for Tax Increment Financing(TIF).
6/27/00 ---- City Council meeting. Council to hear Preliminary Development Plan (PUD/site
specific) and Final Development Plan (building specific). Council to direct
staff/Consultant to prepare findings of fact consistent with approval/denial and to
return with a final PUD agreement.
7/11/00 ---- City Council meeting. Council to approve findings of fact and PUD agreement.
John Shardlow is the point of contact for this project and is working with City Attorney Soth,Hillcrest,and staff to meet all
target dates. It should be noted that the"Critical Path/Important Dates"may change depending on the outcomes of the
Council and Commission meetings. The above has been reviewed by the City Attorney Soth and Planning Consultant
Shardlow.
Note: Hillcrest seeks the assistance of staff in identifying alternative funding sources for this project. Staff views this as
a separate process and does not intend to include funding in this Critical Path.
Cc: City Clerk Kroeplin
Planning Consultant Shardlow
City Attorney Soth
3
. 5/5/00
CITY OF ST. ANTHONY
ORDINANCE 2000-006
AN ORDINANCE RELATING TO ZONING AND
PLANNED UNIT DEVELOPMENTS; AMENDING SECTION 1655 OF THE
ST. ANTHONY CODE OF ORDINANCES IN ITS ENTIRETY
The City Council of the City of St. Anthony hereby ordains:
Section 1. Section 1655 of the City Code is amended to read in full as follows:
1655.01 Purpose. The purpose of this Section 1655 is to provide for planned unit developments within
the City.
1655.02 Definitions.
Subd. 1. PUD. A PUD is a zoning district and development plan which may include single or
mixed uses, and one or more lots or parcels, and which is intended to create a more flexible,
creative and efficient approach to the use of land. Any PUD shall be subject to the procedures,
standards and regulations contained in this Section 1655. A PUD site must be at least 3 acres
in size, and applications for PUD approval will not be considered for sites of less than 3 acres.
Subd. 2 Development Review Committee. The Development Review Committee shall be a
committee as appointed by the City Manager from time to time to conduct a review of all
development plans for any PUD.
Subd. 3 Sketch Plan. A Sketch Plan means an informal development plan presented by a PUD
applicant as provided in Section 1655.10, Subd. 2.
Subd. 3 Preliminary Development Plan. A Preliminary Development Plan means a formal
development plan in preliminary form presented by a PUD applicant as provided in Section
1655.10, Subd. 3, and including the requirements set forth in Section 1655.10, Subd. 5(b).
Subd. 4 Final Development Plan. A Final Development Plan means a final development plan
based upon the Preliminary Development Plan and presented by a PUD applicant as provided
in Section 1655.10, Subd. 4, and including the requirements set forth in Section 1655.10,
Subd. 5(b)(4).
4
Subd-. 5 Developer. Developer means the owner of the Property, or a person or entity
authorized in writing by the owner of the Property to file the applications for the PUD and who
will become the owner of the Property prior to any development of the Property.
Subd. 6 Pro e . Property means all land included within the PUD.
Subd. 7 PUD Agreement. The PUD Agreement is the agreement to be entered into between
the Developer and the City to incorporate all term, requirements and conditions of the PUD
approval.
1655.03 Authorization. A PUD approval may allow the following:
Subd. 1. Vane . Within a comprehensive site design concept, a mixture of land uses, housing
types and densities.
Subd. 2. 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.
Subd. 3. Efficiency. The consolidation of areas for recreation and reductions in street lengths
and other utility-related expenses.
Subd. 4. Density Transfer. The project density may be clustered, basing density on a number of
units per acre in place of specific lot dimensions.
Subd. 5. District Inteizration. The combination of uses which are allowed in separate zoning
districts such as:
(a) Mixed residential uses to allow both densities and unit types to be varied within
the project.
(b) Mixed residential uses with increased density based upon the greater sensitivity
of PUD projects to regulation.
(c) Mixed land uses with the integration of compatible land uses within the project.
1655.04 Allowed Uses. Uses within a PUD may include only those uses generally considered
associated with the general land use category shown for the area on the official Comprehensive Land
Use Plan. However, in some unique situations,the PUD may allow the approval of use or uses that are
not listed as either permitted or conditional uses in any underlying zoning district. The specific allowed
-2-
5
uses and performance standards for each PUD shall be delineated in an ordinance and development
plan. The PUD development plan shall identify all the proposed land uses, which shall become
permitted uses if the Final Development Plan is approved. Any change in the uses presented in the Final
Development Plan will be considered an amendment to the PUD and must follow the procedures
specified in this Section 1655.
1655.05 Required Standards. The City shall consider a proposed PUD from the point of view of all
standards and purposes of the Comprehensive Land Use Plan to achieve a maximum coordination
between the proposed development and the surrounding uses, the conservation of woodlands and
wetlands, and the protection of health, safety and welfare of the community and residents of the PUD.
To these ends, the City Council shall consider the location of the buildings, compatibility,parking areas
and other features with respect to the topography of the area and existing natural features such as
streams and large trees; the efficiency, adequacy and safety of the proposed layout of internal streets
and driveways; the adequacy and location of green areas; the adequacy, location and screening of
parking areas; and such other matters as the City Council may find to have a material bearing upon the
stated standards and objectives of the Comprehensive Land Use Plan.
1655.06 Coordination With Subdivision Regulations. If a PUD involves the subdivision of land,then
the subdivision review shall be carried out under Chapter 15 of this Code simultaneously with the
review of the PUD. The plans required under this Section 1655 shall be submitted in a form which will
satisfy the requirements of Chapter 15 for the preliminary plat and final plat.
1655.07 Revisions and/or Changes.
Subd. 1. Minor Changes in Location, Placement and Heiaht. Minor changes in the location,
placement and height of structures may be authorized by the Development Review Committee if
required by engineering or other circumstances not foreseen at the time the final plan was
approved and filed with the Zoning Administrator.
Subd. 2. Significant Changes in Use, Location, Size and Height. Changes in uses, significant
changes in location, size, or height of structures, any rearrangement of lots, blocks and building
tracts, changes in provision of common open spaces and all other changes to the approved
Final Development Plan may be made only after a public hearing conducted by the Planning
Commission. Upon determination by the Development Review Committee that a major change
has been proposed,the Developer shall apply for an amended PUD. The application to amend
the PUD shall be treated as a new zoning application. Upon acceptance of a complete
application,the Planning Commission shall hold a hearing as set forth in Section 115 of this
Code. Any changes shall be recorded as amendments to the recorded copy of the Final
Development Plan
r -3-
6
Sub&. 3. Provisions of Original District Apply. All of the provisions of the zoning district within
which the PUD is established shall apply to the amended PUD except as otherwise provided in
approval of the Final Development Plan. The effective date of the PUD shall be after:
(a) Approval of the PUD amendment and text and Final Development Plan.
(b) Publication of the ordinance.
Subd. 4. Review. If substantial development has not occurred within a reasonable time after
approval of the PUD,the City Council may instruct the Planning Commission to initiate rezoning
to the original zoning district. It shall not be necessary for the City Council to find that the
rezoning was in error.
Subd. 5. Formal Review Periods. Within the PUD Agreement,the City may schedule formal
City Council review periods on an annual or less frequent basis to ascertain that actual
development on the site meets the conditions of the approved PUD.
1655.08 Phasing and Guarantee of Performance.
Subd. 1. Comparison with Approved Development Schedule. The Planning Commission shall
compare the actual development accomplished in the various portions of the PUD with the
approved development schedule.
Subd. 2. Extension of Limits of Development Schedule. Upon recommendation of the Planning
Commission and for good cause shown by the Developer, the City Council may extend the
limits of the development schedule.
Subd. 3. Construction Rates of Dwelling and Open Space. The construction and provision of
all of the-common open space and public and recreational facilities which are shown on the. ....
Final Development Plan must proceed at the same rate as the construction of dwelling units, if
any. The Development Review Committee shall review all of the building permits issued for the
PUD and examine the construction which has taken place on the site. If they find that the rate of
construction of dwelling units is greater than the rate at which common open spaces and public
and recreational facilities have been constructed and provided, they shall forward this.
information to the City Council for action.
Subd. 4. Securijy. A letter of credit in form acceptable to the City shall be required to
guarantee performance by the Developer. The amount of the letter of credit and the specific
elements of the development program that it is intended to guarantee will be stipulated in the
PUD Agreement.
-4-
7
1655.09 Control of PUD Following Completion.
Subd. 1. Final Development Plan Governs. After a certificate of occupancy has been issued for
all or any portion of a PUD,the use of the land covered by the certificate of occupancy and the
construction, modification and alteration of any buildings or structures within the PUD shall be
governed by the Final Development Plan.
Subd. 2. Changes After Issuance of Certificate of Occupancy. After a certificate of occupancy
has been issued for all or any portion of a PUD, no changes shall be made in the approved
Final Development Plan except upon application as provided below:
(a) Any minor extensions, alterations or modifications of existing buildings or
structures may be authorized by the Development Review Committee if they
are consistent with the purposes and intent of the Final Development Plan.No
change authorized by this Section may increase the mass or volume of any
building or structure by more than 10%.
(b) Any building or structure that is totally or substantially destroyed may be
reconstructed only in compliance with the Final Development Plan unless an
amendment to the Final Development Plan is approved under this Section
1655.
(c) Changes in the use of the common open spaces may be authorized by an
amendment to the Final Development Plan by the City Planning Commission
after a public hearing as provided in Section 115 of this Code and without all
the documents necessary for the original application.
(d) Any other changes in the Final Development Plan must be authorized by an
amendment of the Final Development Plan under this Section 1655.
1655.10 Procedure for Processin ate.
Subd. 1. Application Conference. Upon filing of an application fora PUD, the Developer shall
arrange for and attend a conference with the Development Review Committee. The primary
purpose of the conference shall be to provide the Developer with an opportunity to gather
information and obtain guidance as to the general suitability of Developer's proposal for the
area for which it is proposed and its conformity to the provisions of this Section 1655 before
incurring substantial expense in the preparation of plans, surveys and other data.
Subd. 2. Sketch Plan. The sketch plan provides an opportunity for an applicant to submit an
informal plan to the City showing the applicant's basic intent and general nature of the
-5-
. development. The sketch plan is optional and is intended to provide feedback from the Planning
Commission before the applicant incurs substantial cost in the preparation of formal plans. The
Sketch Plan shall be considered a partial, incomplete application prior to formal submittal of the
complete application and scheduling of hearings.
Subd. 3. Preliminary Development Plan. The purpose of a Preliminary Development Plan is to
formally present a PUD application, and a preliminary plat application if subdivision of land is a
part of the PUD, in a public hearing before the Planning Commission as set forth in Section 115
of this Code. The plan shall include the following:
(a) Overall maximum PUD density range.
(b) General location of major streets and pedestrian ways.
(c) General location and extent of public and common and open space.
(d) General location of residential and nonresidential land uses with approximate
type of intensities of development.
(e) Staging and time schedule of development.
(f) Other special criteria for development.
Subd. 4. Final Development Plan. Following approval of the Preliminary Development Plan,the
applicant shall submit an application for the Final Development Plan, and a final plat if
subdivision of land is a part of the PUD. The application shall proceed and be acted upon in
accordance with 1655.03 for zoning district changes. If appropriate, because of the limited
scale of the proposal, the Development Review Committee may permit the Preliminary
Development Plan and Final Development Plan to proceed through the review.and approval_
processes simultaneously.
Subd. 4. Procedures. The procedures to be followed by the applicant with respect to a PUD, shall be
as follows:
(a) Schedule:
(1) Developer shall meet with the Development Review Committee to discuss the
proposed developments.
(2) The Developer shall file the Preliminary Development Plan application and
preliminary plat, if any,together with all supporting data.
r
-6-
9
. -- (3) Within 30 days after verification by the City Manager that the required plan and
supporting data is adequate,the Planning Commission shall hold a public
hearing as provided for in Section 1.15 of this Code.
(4) The Planning Commission shall conduct the hearing and report its findings and
make recommendations to the City Council. The procedure shall be that set
forth in Section 115 of this Code.
(5) The City may request additional information from the Developer concerning
operational factors or retain expert testimony at the expense of the Developer
concerning operational factors.
(6) If the Planning Commission fails to take action on the matter on or before a
date 14 days after the initial hearing,then the City Council may proceed as
provided for in Section 115 of this Code without the Planning Commissions
recommendation. The City Council shall assign an ordinance numerical
reference to each Final Development Plan and PUD Agreement text approved.
The City Council may attach such additional conditions as it deems reasonable.
Approval shall require a four-fifths (4/5) vote of the entire City Council. After
approval by the City Council,the PUD zoning ordinance map amendment shall
be published,with reference made to the PUD Agreement text. The Developer
. shall be responsible for recording the ordinance and PUD agreement in the
office of the Hennepin or Ramsey County Recorder and/or Registrar of Titles
prior to issuance of any building permit or within 60 days, whichever is less.
The official PUD ordinance and PUD Agreement shall also be filed in the City
Manager's office.
(b) Application: Ten copies of the Preliminary Development Plan, including all of the
following exhibits, analyses and plans,.shall,be submitted to the City:
(1) Preliminary plat for any land being subdivided and information required by
Chapter 15 of this Code.
(2) General Information:
A. The landowner's name and address and the landowner's interest in the
Property.
B. The Developer's name and address if different from the landowner.
-7-
1®
® C. The names and addresses of all professional consultants who have
contributed to the development of the PUD plan'being submitted,
including attorney, land planner, engineer and surveyor.
D. Evidence that the Developer has sufficient control over the Property to
effectuate the proposed PUD, including a statement of all legal,
beneficial,tenancy and contractual interests held in or affecting the
Property and including an up-to-date certified abstract of title or
registered property report and such other evidence as the City Attorney
may require to show the status of title or control of the Property.
E. Evidence that the Property is not less than 3 acres in area.
(3) Present Status:
A. The address and legal description of the Property.
B. The existing zoning classification and present use of the Property and
all lands within 1,000 feet of the Property.
C. A map depicting the existing development of the Property and all land
within 1,000 feet thereof and indicating the location of existing streets,
property lines, easements,water mains and storm and sanitary sewers,
with invert elevations on and within 100 feet of the Property.
D. A written statement generally describing the proposed PUD and the
market which it is intended to serve and its demand showing its
relationship to the City's Comprehensive Plan and how the proposed
_ PUD is to be designed, arranged.and operated in order to permit the
development and use of neighboring property in accordance with the
applicable regulations of the City.
E. Site Conditions: Graphic reproductions of the existing site conditions at
a scale of one inch equals 100 feet.
1. Contours; minimum two-foot intervals.
2. Area devoted to residential use by building type.
3. Area devoted to common open space.
11
• — 4. Area devoted to public open space.
5. Approximate area devoted to streets.
6. Approximate area devoted to, and number of, off-street
parking and loading spaces and related access.
7. Approximate area and floor area devoted to commercial uses.
8. Approximate area and floor area devoted to industrial or office
use.
9. Total area of the Property.
F. When the PUD is to be constructed in stages during a period of time
extending beyond a single construction season, a schedule for the
development of such stages or units shall be submitted stating the
approximate beginning and completion date for each stage or unit and
the proportion of the total PUD public or common open space and
dwelling units to be provided or constructed during each stage and
overall chronology of development to be followed from stage to stage.
G. When the proposed PUD includes provisions for public or common
open space or service facilities, a statement describing the provision
that is to be made for the care and maintenance of such open space or
service facilities.
H. Any restrictive covenants that are to be recorded with respect to
Property included in the proposed PUD. .
I. Schematic utilities plans indicating.placement of water, sanitary and
storm sewers.
J. The City may-excuse a Developer from submitting any specific item of
information or document required in this stage which it finds to be
unnecessary to the consideration of the specific proposal.
K. The City may require the submission of any additional information or
documentation which it may find necessary.
12
. (4) The Final Development Plan submission should depict and outline the proposed
implementations of the Preliminary Development Plan for the PUD. Information
from the Preliminary Development Plan may be included for background and to
provide a basis for the submitted plan. The Final Development Plan submissions
shall include, but not be limited to:
A. A final plat for any land to be subdivided and information required by
the Chapter 15 of this Code.
B. Ten sets of preliminary plans drawn to a scale of not less than one inch
equals 100 feet(or other scale requested by the City Manager)
containing at least the following information:
1. Proposed name of the development, which shall not duplicate
nor be similar in pronunciation to the name of any plat
previously recorded in the county where the Property is
situated.
2. Property boundary lines and dimensions of the Property and
any significant topographical or physical features of the
Property.
3. The location, size use and arrangement including height in
stories and feet and total square feet of ground area coverage
and floor area of proposed buildings, including mobile homes,
and existing buildings which will remain, if any.
4. Location, dimensions of all driveways, entrances, curb cuts,
parking stalls, loading spaces and access aisles, and all other. .
circulation elements including bike and pedestrian; and the total
site coverage of all circulation elements.
5. Location, designation and total area of all common open space.
6. Location, designation and total area proposed to be conveyed
or dedicated for public open space, including parks,
playgrounds, school sites and recreational facilities.
7. Proposed lots and blocks, if any and numbering system.
• -10-
13°
. — 8. The location, use and size of structures and other land uses on
adjacent properties.
9. Detailed sketches and provisions of proposed landscaping.
10. General grading and drainage plans for the developed PUD.
11. Any other information that may have been required by the
Planning Commission or County Board in conjunction with the
approval of the Preliminary Development Plan.
C. An accurate legal description of the entire area within the PUD for
which Final Development Plan approval is sought.
D. A tabulation indicating the number of residential dwelling units and
expected population.
E. A tabulation indicating the gross square footage, if any, of commercial
and industrial floor space by type of activity(e.g. drug store, dry
cleaning, supermarket).
F. Preliminary architectural "typical" plans indicating use, floor, plan,
elevations and exterior wall finishes of proposed building, including
mobile homes.
G. A detailed site plan, suitable for recording, showing the physical layout,
design and purpose of all streets, easements,rights of way, utility lines
and facilities, lots, block, public and common open space, general
landscaping plan, structure, including mobile homes, and uses.
H. Preliminary grading and site alteration plan illustrating changes to
existing topography and natural site vegetation. The Final Development
Plan should clearly reflect the site treatment and its conformance with
the approved Preliminary Development Plan.
I. A final plat prepared in accordance with Chapter 15 if land is being
subdivided.
J. A soil erosion control plan acceptable to watershed districts,
Department of Natural Resources, Soil Conservation Service, or any
-11-
14
. - other agency with review authority clearly illustrating erosion control
measures to be used during construction and as permanent measures.
Section 2. This ordinance shall be in effect as of the date of its publication.
First Reading:
Second Reading:
Adopted:
Mayor
® ATTEST:
City Clerk
Published: St. Anthony Bulletin:
-12-
j .
II. REVIEW TIF ISSUES AND SCHEDULE WITH
JERRY GILLIGAN OF DORSEY & WHITNEY 1
AND BOB THISTLE OF SPRINGSTED, INC.
15
MEMORANDUM
DATE: May 9, 2000
TO: Mayor and Councilmembers
Spencer Isom, Assistant City Manager
FROM: Michael Morrison, City Manager
ITEM: CRITICAL PATH/IMPORTANT DATES FOR APACHE TAX
INCREMENT FINANCING - UPDATE
Target Complete Task
4/27/00 4/27/00 City Manager meets with Jerry Gilligan, Dorsey & Whitney, and
Bob Thistle, Springsted, Inc., to review tax increment financing
(TIF) request from Hillcrest Development.
2 City Manager,er Gilli an Thistle meet with development 5/2/00 5/ /00 g team to
discuss TIF request with Hillcrest.
5/15/00 Work session with City Council.
Letter sent to Ramsey County on TIF plan.
5/23/00 City Council/Housing and Redevelopment Authority (HRA) calls
for a public hearing on new TIF District and decertify old TIF
District.
5/24/00 City notifies School Board and County Boards about new TIF
District.
6/9/00 Notice of 6/27 hearing faxed to St. Anthony Bulletin.
6/14/00 Notice of 6/27 hearing published in Bulletin.
6/20/00 Planning Commission reviews TIF plan and makes
recommendation to Council.
. 6/27/00 Public hearing on new TIF District by City Council. Both
Council and HRA approve new plans.
16
6/27/00 Public hearing to adopt business subsidy policy.
6/28/00 TIF District certified to Counties.
7/11/00 HRA enters into a redevelopment agreement with Hillcrest on
TIF terms.
7/11/00 Enter into a Business Subsidy Agreement with Hillcrest
Development.
17
85 E.SEVENTH PLACE,SUITE 100
SAINT PAUL,MN 55101-2887
651-223-3000 FAX:651-223-3002 SPRINGSTED
Public Finance Advisors
MEMORANDUM
TO: Mike Mornson, City Administrator, City of St. Anthony
Jerome P. Gilligan, Dorsey &Whitney LLC
CC: Robert Thistle, Senior Vice President, Springsted
FROM: Paul T. Steinman, Client Representative
DATE: April 27, 2000
SUBJECT: Hillcrest Redevelopment Proposal
• mo is to outline the responsibilities of Springsted and Dorse & Whitney
The purpose of this me PY
related to the Hillcrest Redevelopment Proposal:
• Tax Increment District establishment/creation process Dorsey
• Established TIF District decertification Dorsey
• Write TIF plan Dorsey
• Put together redevelopment agreement Dorsey
• Outline critical issues and deal points Springsted
• Complete comparative analysis of Hillcrest TIF#'s Springsted
• Verify proposed redevelopment TIF District
meets qualification criteria . Springsted
• Complete budget/cash flows for TI plan Springsted
This covers the major issues related to the proposed project. If you have any additional issues
please feel free to make the appropriate changes and copy me on them.
r
SAINT PAUL,MN 9 MINNEAPOLIS,MN • MILWAUKEE,WI • OVERLAND PARK,KS • WASHINGTON,DC • DES MOINES.IA
05/08/00 MON 14:55 FAX 18123402844 DORSEY WHITNEY
18
— MEMORANDUM
TO:. Mike Morrison
City Manager
City of St. Anthony
FROM: Jerry Gilligan
DATE: May 8, 2000
RE: Hillcrest Development/Apache Plaza TIF Proposal
The St. Anthony HRA has received a proposal from Hillcrest Development that it
provide tax increment assistance in connection with its proposed acquisition and rehabilitation of
Apache Plaza shopping center. Presently the shopping center is contained within an existing TIF district
which includes the CUB Foods Store and it is being proposed that the shopping center and certain
adjacent parcels be removed from the existing TIF district and a new TIF district be established by the
HRA.
1. Removal of Parcels from Existing Apache Plaza TIF District and Establishment of
New TIF Distjet. Under Minnesota Statutes, Section 469.1763, at least 75% of the increment from
the existing Apache Plaza TIF district must be expended on activities in the district or to pay bonds
issued to finance improvements in the district. This section provides that expenditures made 5 years
after the district was originally certified are considered to be expenditures outside the district for
purposes of the 75% test, subject to certain exceptions that do not apply to the Hillcrest Development
proposal. The existing Apache Plaza TIF-district was certified by the County more than 5 years ago.
Consequently, new expenditures for improvements to Apache Plaza may only be made from tax
increment from the existing district to the extent that they do not cause the75%requirement to be
violated. Administrative expenses do not count as "in-district"expenditures for purposes of the 75%
test. Therefore, in order to provide significant tax increment assistance for the rehabilitation of Apache
Plaza shopping center anew TIF district needs to be established.
To establish a new TIF district it will be necessary to remove the parcels to be included
in the new TIF district for the existing TIF district. -Minnesota Statutes, Section 469.175, subdivision 4,
permits the HRA to modify a TIF plan to reduce the geographic area of a tax increment financing
district. Such reduction must be approved upon the notice and after.the discussion, public hearing and
findings required for approval of the original plan. Therefore, a public hearing will need to be held by
the City Council to remove the parcels from the existing TIF district. This hearing can be held in
conjunction with the hearing on establishing the new TIF district.
.r A•� n •.�► r. •r r r • T \T Ttr • f h
05/08/00 MON 14:55 FAX 16123402644 DORSEY VMIMY 19
2. Establishment of New TIF District and Termination of Assessment Aareemen on
Apache Plaza: For the proposed new TEF district to qualify as a redevelopment district(i)parcels
consisting of at least 70% of the area of the new TIF district must be occupied by buildings, streets,
utilities or other improvements (a parcel is not considered occupied by such improvements unless 15%
of the area of the parcel contains improvements), and(ii) more than 50% of the buildings located in the
district must be"structurally substandard"to a degree requiring substantial renovation or clearance.
The HRA must make this finding in the resolution approving the financing plan for the district and the
establishment of the TIF district. It is my understanding that there are two buildings in the proposed
new district, the shopping center building and a building containing Taco Bell. Since the requirement is
that more than 50% of the buildings must be structurally substandard, both of the buildings will need to
be found structurally substandard.
Minnesota Statutes, Section 469.174, subdivision 10 contains a definition of structurally
substandard and provides that the HRA may not make a determination that a building is structurally
substantial without undertaking an interior inspection of the building unless it is unable to gain access to
such building. The HRA should obtain a report of an independent engineer to evidence that the
buildings are "structurally substandard" and use this report as the basis for its determinations.
The duration limit of the new redevelopment district is 25 years from the date of first
receipt of tax increment. This district will result in a reduction of LGA/HACA for the City pursuant to
Minnesota Statutes, Section 273.1399. This reduction is phased in beginning 6 years after the
assessment year for the original tax capacity of the district. The developer may not reimburse the City
for any such reduction since any developer payments will be treated as tax increment revenue under
Minnesota Statutes, Section 469.1766.
Hillcrest Development has requested that the HRA terminate the existing Assessment
Agreement entered into with St. Marie Company for Apache Plaza shopping center. The Agreement
establishes a minimum market value for the shopping center and provides that it terminates when_
general obligation bonds issued by the City for the CUB Store are paid in full: The Assessment
Agreement was required by the City to preserve the City's tax base and to protect against a reduction
in market value for the shopping center which would have a negative impact on the tax increment
revenue to pay the general obligation bonds.
Minnesota Statutes, Section 469.177, subdivision 8 provides that an assessment
agreement may be terminated by mutual consent of the current parties to the agreement. Such
termination must be approved by the City. If the estimated market value for the property for the most
recent available assessment is less than the minimum market value established by the assessment
agreement for that year or an later year it must also be approved by the governing body of the county
Y Y
and school district in which such property is located. It is my understanding that the estimatedmarket
value of the shopping center is not less than the minimum market value contained in the Assessment
-2-
05/08/00 MON 14:55 FAX 16123402644 DORSEY WHITNEY
20
'Agreement, so it will not be necessary to obtain the consent of the Ramsey County Board and the St.
Anthony School Board to terminate the assessment agreement.
3. Process for Establishing New TIF District. A number of steps must be followed to
establish a new TEF district and eliminate parcels for the existing TIF district. The City Council must
hold a public hearing on the new TIF plan and elimination of the parcels from the existing TIF district.
Notice of hearing is required to be published once not less than 10 nor more than 30 days prior to the
date of the hearing and not less than 30 days prior to the date of publication of the notice the HRA must
deliver written notice of proposed district to the Ramsey County Commissioner who represents the
area to be included in the district. At least 30 days prior to the hearing an estimate of the fiscal and
economic implications of the tax increment financing plan must be provided to the County and School
District. The HRA also needs to obtain the written opinion of the Planning Commission as to the
proposed redevelopment.
4. Use of TIF for Public Space, Minnesota Statutes, Section 469.176,subdivision 4g,
was amended in 1999 to provide that no revenue derived from tax increment from any district may be
used fora facility used for social,recreational or conference purposes. Consequently,tax increment
may not be used to acquire,construct or improve public space to be owned or leased by the City. If
the City desires to have some public space in Apache Plaza the costs of such space will need to be
paid from funds that are not derived from tax increment .
JPG:cmn
_3_
.. ... .. .. ..., n •.r.• • -r ► wr r r n
21
85 E. SEVENTH PLACE,SUITE 100
SAINT PAUL,MN 55101-2887
651-223-3000 FAX:651-223-3002 SPRINGSTED
. + — Public Finance Advisors
'MEMORANDUM
TO: Michael J. Mornson, City Manager
Mayor and City Council, St. Anthony Village
FROM: Paul T. Steinman, Vice President, Springsted
Robert Thistle, Executive Vice President, Springsted
DATE: May 8, 2000
SUBJECT: Hillcrest/Apache Redevelopment Proposal
The purpose of this letter is to provide an outline of primary discussion points of the
Hillcrest/Apache proposal for the City Council worksession on May 15, 2000.
Our recommendation of the primary discussion points is as follows:
• The Councils position on dropping certain parcels from the existing Tax
Increment District and creating a new Tax Increment District proposed to
include Apache Plaza and several surrounding parcels.
■ Early analysis indicates that dropping certain parcels from the existing District
will not have a negative impact on the increment generated and therefor
should not have a negative impact on the City's ability to pay its bonds
backed by increments received from this District.
■ Creating a new District will require the City to make findings regarding its
belief that the area proposed for the new District meets statutory tests for
"substandard" and "blight".
➢ Recommendation - that the developer -guarantee coverage of any
shortfall that may .occur in increment from the existing District thereby
affecting the City's ability to pay debt service on the bonds in this District
➢ Recommendation — that an outside firm be used to conduct a blight
analysis for statutory qualification of the proposed District.
• The Councils position, on the amount of increment to provide to the
developer for this project.
■ This is likely the most difficult public policy question that carries with it a very
challenging range of additional issues. These are as follows:
o Amount of increment relates to the quality of development.
SAINT PAUL,MN • MINNEAPOLIS,MN 9 MILWAUKEE,WI • OVERLAND PARK.KS 9 WASHINGTON,DC • DES MOINES,IA
22
Page 2
♦ Amount of increment requested by the developer is driven inpartby
the end user of the project.
♦ Amount of increment relates to the City's LGA/HACA penalty which is
further outlined below.
e Decisions regarding the amount of increment need to be made at an
early stage in. order to move ahead to finalize the development
agreement, TIF plan'budget, and final cash flows.
It is evident from our analysis that some level of increment is justified given
the various extraordinary costs of redevelopment and the curtent market for
the type of end users anticipated.
■ Springsted has completed preliminary analysis of the developers project
including their estimated budget and 10 year pro-forma. . Using the
developers assumptions we have concluded the following:
♦ Upon payment of increment in the year 2012 the developer will have
reached an approximate internal rate of return of 0% or"break-even"._
❑ The developers agreement could provide that if certain costs are
higher than originally estimated, i.e. environmental, that the
increment could be adjusted at the time the project is completed.
❑ The developer is taking a management fee of a certain percent of
revenues derived from the project including tax increment. This
fee is NOT included in the rate of return indicated above, however,
it would certainly be counted as having a net positive effect.
. o The City is not REQUIRED to see- that enough increment is
provided to bring the developer to a 12— 15% rate of return. What
needs to be balanced here is that just enough increment should
be provided to incent the developer to complete the project.
♦ Should increment be stopped after 2012, the developer has several
options to explore in order to gain an appropriate level of return
including selling the project or repositioning the rent structure.
o It is almost anyone's guess regarding what occurs next year let alone
after the year 2012. Therefor any attempt beyond 10 years to project
expenses, rent, taxes, maintenance costs, etc. is potentially invalid.
♦ The City's LGAMACA penalty, should the District decertify on
December 31, 2012, will occur as follows:
❑ Year 2002 0
Li Year 2003 . 0
o Year 2004 . 0
❑ Year 2005 0
❑ Year 2006 0
❑ Year 2007 9,761
❑ Year 2008 20,052
❑ Year 2009 30,887
o Year 2010 42,284
o Year 2011 54,260
o Year 2012 66,830
Total LGA/HACA penalty 304,087
LGA/HACA penalty estimate in a 25 year District is $3.2 million.
23
Page 3 _-
➢ Recommendation -that increment be provided through, and including. the
Year 2012 in an amount not to exceed $3.85 million gross.
• The Councils position on the use of Eminent Domain as a method of
gaining site control within the protect area.
➢ Recommendation — that prior to the City undertaking this process the
developer provide evidence that negotiations have been unsuccessful
and that all other methods of obtaining site control have been depleted.
➢ Recommendation — that the developer pay all costs up-front which are
associated in any way with the condemnation proceeding in addition to
reimbursing the City for the final cost of site acquisition and relocation.
• The Councils interest in purchasing "public space" within the
development.
➢ Recommendation-that the Council opt out of"public space" participation
due to potential conflicts with state law regarding the use of tax increment
to subsidize public space.
• The Councils intent to adopt a Business Subsidy Policy in compliance with
State Statute prior to approving a development agreement with Hillcrest.
Recommendation — that a public hearing be held to adopt a Business
Subsidy Policy at the time the public hearings are held regarding the Tax
. Increment District creation. A sample policy is attached for your
information.
24
BUSINESS SUBSIDY POLICY _
. The following business subsidy criteria are intended to satisfy the requirements of Minnesota
Statues, §§116J.993 through 116J.995 (the "Act"), in particular, §116J.994, subdivision 2;
thereof. Terms used but not defined herein have the meaning give them in the Act. The term
"City" means Saint Anthony Village. The term."project" means the property with respect to
which the business subsidy is provided.
A. Project Review and Evaluation Policy
The City recognizes that the creation of good paying jobs is a desirable goal which benefits
the community. Nevertheless, not all projects assisted with subsidies derive their public
purposes and importance solely by virtue of job creation. In addition, the imposition of high
job creation requirements and high wage level requirements may be unrealistic and counter-
productive in the face of larger economic forces and the financial and competitive
circumstances of an individual business.
With respect to business subsidies, the following principles and criteria will guide the
number of jobs to be created and the wages paid:
• Each project will be evaluated on a case by case basis, recognizing its importance
and benefit to the community from all perspectives, including created or retained
employment positions.
• If a particular project does not involve the creation of jobs, but is nonetheless found
to be worthy of support and subsidy, it may be approved without any specific job or
wage goals, as may be permitted by applicable law.
• In cases where the objective is the retention of existing jobs, the recipient of the
subsidy will be required to provide reasonably demonstrable evidence that.the loss of
those jobs is imminent.
• The setting of wage and job goals must be sensitive to prevailing wage rates, local
economic conditions, external economic forces over which neither the grantor nor the
recipient of the subsidy has control, the individual financial resources of the recipient
and the competitive environment in which the recipient's business exists.
Because it is not possible to anticipate every type of project which may, in its context and
time, present desirable community building or preservation goals and objectives, the
governing body must retain the right in its discretion to approve projects and subsidies which
may vary-from the principles and criteria of this Policy.
B. Project Review and Evaluation Criteria
The City will consider one or more of the criteria listed below in determining whether to
provide .financial or other assistance to a project as a business subsidy. In applying the
criteria to a specific project, the following will apply:
(i) The City may include any other business subsidy received, or to be received, from a
grantor other than the City.
(ii) If the business subsidy is guaranty, the amount of the business subsidy may be
valued at the principal amount of the guaranteed payment obligation.
(iii) If the business subsidy is property, the amount of the subsidy will be the fair market
value of the property as determined by the City.
(iv) If the business subsidy is received over time, the City may value the subsidy at its
present value based on a discount rate equal to the interest rate which the City
determines is fair and reasonable under the circumstances.
25
.The review and evaluation criteria are the following:
1. Jobs-and Wages
a. New Jobs. The minimum net number of direct full time equivalent fobs to be created
or retained by the proposed project for a period of at least two years from the
estimated benefit date.
b. Payroll. The minimum annual net payroll (including employer contributions for health
benefits) to be.generated at the end of the third anniversary date of the estimated
benefit date.
2. Tax Base
a. Increase in Tax Base. The net increase in property taxes estimated to be generated
by the project in the first full year of operation.
3. Land Use
a. Compliance with Comprehensive or Other Plans Whether, apart from any needed
services to the community described in section 5 below, the project is more
compatible with the comprehensive plan than other permitted uses for the property. .
For example, the project may involve a "clean" industry such as a technology or
service business which is preferred over other permitted uses.
b. Marginal Property, Whether the project is located on property which needs but is not
likely to be developed or redeveloped because of blight or other adverse conditions
of the property.
For example property may be so blighted that the cost of making land ready for
redevelopment exceeds the property's fair market value.
. c. Design and/or Other Amenities: Whether, as a result of the business subsidy, the
project will include design and/or amenity features not otherwise required by law.
For example, the project may, at the request of the City, include landscaping, open
space, public trails, employee work out facilities or day care facilities which serve a
public purpose but are not required by law.
4. Impact on Existing and Future Public Investment
a. Utilization of Existing Infrastructure Investment Whether and to what extent (a) the
project will utilize existing public infrastructure capacity and (b) the project will require
additional publicly funded infrastructure investments.
b. Direct Monetary Return on Public Investment Arrangement§ made or to be made
for the City to receive a direct monetary return on its investment in the project. For
example, the business subsidy may be in the form of an interest bearing loan or may
involve a project sharing arrangement.
5. Economic Development
a. Leveraged Funds. For every dollar of business subsidy to be provided for the
project, the minimum amount of private funds which will be applied towards the
capital cost of the project.
b. Spin Off Development. The dollar amount of non-subsided development the project . .
is expected to generate in the surrounding area and the need for and likelihood of
such spin off development.
. c. Growth Potential. Based on recipient's market studies and plans for expansion,
whether and to what extent, the project is expected within five years of its completion
126
to be expanded to produce a net increase of full time equivalent jobs and payi ull,
over and above the minimum net increase in jobs and payroll described in-section 1
-above.
6. Quality of Life
a. Community Services. Whether the project will provide services in the community
and the -need for. such services. For example, the project may provide health
services, retail convenience services such as a nearby grocery store, or social
services needed in the community.
7. Other
a. Other Factors. Depending on the nature of the project, such other factors as the City
may deem relevant in evaluating the project and business subsidy proposed for it.
C. Project Review and Evaluation Criteria
All projects must comply with the following criteria:
1. But For Test. There is a substantial likelihood that the project would not go forward
without the business subsidy. This criterion may be met based solely on representations
of the recipient of the business subsidy.
2. Wage Policy. If the project results in the creation of any jobs, the wage for each part-
time and full-time job created must be, within two years of the date assistance is
received (as defined in the Act), at least $ [INSERT MINIMUM WAGE REQUIRED BY
'CITY] per hour or such'greater amount as the City may require for a specific project.
. 3. Economic Feasibility. The recipient must demonstrate to the satisfaction of the City that
it has adequate financing for the project and that the project will be completed in a timely
fashion.
4. Compliance with Act. The business subsidy from the City must satisfy all requirements
of the Act.
Adopted by:
Date of adoption:
Date of public hearing:
SUGGESTED PROVISIONS—
BUSINESS SUBSIDY AGREEMENT -_
Sale of Land, Tax Increment Financing Assistance
(1) In order to satisfy the provisions of Minnesota Statutes, §§116J.993 through 166J.995 (the
"Act"), the Developer acknowledges and agrees as follows:
(a) the amount of the "Business Subsidy" granted to the Developer under this Agreement.is .
$ which is the. difference between $ the fair market value of the
property to be sold to the Developer (the "Development Property") and $ the
purchase price paid by the Developer for the Development Property;
(b) the Business Subsidy is needed because the Project is not economically feasible for the
Developer to undertake without the Business Subsidy;
(c) the Tax Increment District is in which the Development Property is located is a
"redevelopment district" within the meaning of the Tax Increment Financing Act,
Minnesota Statutes §§469.174 through 469.179; and
(d) the public purpose of the Business Subsidy is to encourage the construction of
necessary public improvements and to redevelop blighted areas and replace structurally
substandard buildings.
(2) The Developer agrees that it will meet the following goals (the "Goals"):
(a) It will create at least full-time jobs in connection with the development of the
Development Property;
(b) the hourly wage of the new jobs will be at least $ per hour; and
(c) the Goals set forth in (a) and (b).above will be met within two years from the "Benefit
. Date", which is the date the Development Property is conveyed to the Developer.
(3) The Developer agrees that if the Goals are not met the Developer will repay all or a part of
the Business Subsidy to the [LOCAL GOVERNMENT AGENCY] plus interest ("Interest") set
at the implicit price deflator defined in Minnesota Statutes, §275.70, Subdivision 2, accruing
from and after the Benefit Date, compounded semiannually.
(4) If the Goals are met in part; the Developer agrees to repay a portion of the Business
Subsidy (plus Interest) determined by multiplying the Business Subsidy by a fraction, the
numerator of which is the number of jobs in the Goals which were not created at the wage
level set forth above and the denominator of which is , the number of jobs set forth in
the Goals.
(5) The Developer agrees to.continue its operations on the Development Property for at least
five years after the Benefit Date.
(6) The Developer agrees to:
(a) report its progress on achieving the Goals to the [LOCAL GOVERNMENT AGENCY]
until the Goals are met, or the Business Subsidy is repaid, whichever occurs earlier;
(b) include in the report the information required in §116J.994, Subdivision 7 of the Act on
forms developed by the Minnesota Department of Trade and Economic Development;
and
(c) send completed reports to the Commissioner of the Department of Trade and Economic
. Development and to the [LOCAL GOVERNMENT AGENCY] no later than March 1 of
each year commencing March 1, 2000, and within 30 days after the deadline for meeting .
the Goals.
28
(7).If the [LOCAL GOVERNMENT AGENCY] does not receive the reports, it will mail the
Developer a warning within one week of the required filing date. If within 14 days ofthe post
. marked—date of the warning the reports are not made, the Developer agrees to pay the City
a penalty of $100 for each subsequent day until the report is filed up to a maximum of
$1,000.
•
1
III. ST. ANTHONY SHOPPING CENTER LEASE
PROPOSAL IDEA.
•
29
ST.ANTHONY SHOPPING CENTER LLC Post Office Box 555,Wayzata,Minnesota 55391
Phone:(612)333-1663 Fax: (612)333-1877
April 21, 2000
Mike Morenson
City of St. Anthony
3301 Silver Lake Rd.
Minneapolis, MN 55418
Re: Marketing Proposal
Dear Mike:
After our discussion with the Mayor regarding what we might do to help find a key tenant for
either the City's site or St. Anthony Shopping Center, I came up with a concept that I believe
would be beneficial to all concerned with a minimum of upfront money.
Background
If either the City or the Shopping Center hired a leasing agent, we would probably have to pay
the agent a$3/square foot commission if the leasing agent found a suitable tenant and
$4.50/square foot if the leasing agent had to split the commission with a second broker who
found the tenant. The leasing agent may or may not absorb the initial marketing costs. In our case.
. a leasing agent probably would not want to absorb the cost because the number of square feet
available to be leased is small. The leasing agent would want us to front the costs of collateral
materials. Also, because the number of square feet to be leased is so small,there is little incentive
for an agent to spend significant time marketing the property. In reality,the agent would send out
brochures, set up a sign on the property and hope that another agent shows up with a tenant and
that they can split the $4.50/square foot commission. At best, the leasing agent can get a
$3/square foot commission, but in the vast majority of cases two agents will be splitting a
$4.50/square foot commission with each of them getting less than$3.00/square foot.
Proposal
My thought is that the City and the Shopping Center should jointly market our properties, split
the marketing cost, and send out brochures to the retail brokers in the Twin City area promoting
our properties and offering any broker who brings in a suitable tenant a$4/square foot
commission. The advantage is that by splitting the marketing cost we reduce the cost of
marketing relative to marketing our properties independently. We offer brokers who have retail
clients above market commissions while reducing what we would have to pay if we hired a
leasing agent. Lastly,we can coordinate our marketing/leasing to optimize our chances of landing
a prime tenant.
A couple of thoughts: First, I would be happy to coordinate the effort,prepare a marketing
plan/budget for prior approval by the City(I think the entire budget should be under$5000,but
that is a function of layout/printing quality/quantity)and handle phonecalls from brokers/tenants.
. Second, no one in our organization will get any fees or compensation for our participation;
everything would be done at cost. Third,we will use our memberships in the Minnesota
morenson lenc.d« 1
421/00 12:52 PM
so
Shopping-Center Association and Organization of Commercial Realtors to obtain mailing lists
• and access to Internet marketing. Fourth, if we get the tenant, we pay the commission; if the City
gets the tenant, the City pays the commission.
Please let me know any thoughts you, the Mayor, or Council members may have.
Very truly yours,
Al Esther
Principal
Direct Phone: (612) 741-6469
Direct Fax: (612) 249-0493
CAMy Downem\Goldmine Doa nemAmoreawn lener.doc 2
4121100 12:52 PM
•
V. LYNN & ASSOCIATES PROPOSAL ON
CITY MANAGER REVIEW.
•
•
31
March 14, 2000
Mr. Michael Momson, City Manager
City of St. Anthony
3301 Silver Lake Road
St. Anthony, MN 55418
Dear Mr. Mornson:
Proposal for Services: City Manager Performance Management Process
Introduction:
St. Anthony wishes to examine and improve the Performance Management Process for the City
Manager. Lynn & Associates, consulting psychologists who specialize in public service strategy
and performance management issues, proposes to assist the city in improving the Performance
. Management Process.
Goal and Objectives:
The general goal of this proposal is to review, revise and create an improved Performance
Management Process for the City.Manager. The process must be aligned with.the culture and
style of the Mayor, Council and the city organization. Is the city run more like, the military, a
family, a university, or a church? The appraisal process for the City Manager needs to be
aligned with this culture, or it will ultimately fail. The objectives of this proposal are:
• To discover the "pain" why are you even doing this now?
• To clarify your current culture and process, what works and what does not work
• To revise and create when necessary a process that will match the culture, goals, and
needs of the stakeholders in this process
• To assist in the implementation of this process for the first year
Method of Implementation:
Dr. Lynn will personally perform the duties in this proposal. The following steps are proposed:
1. Review and if acceptable, sign this Letter of Agreement.
2. Meet with key stakeholders, the Mayor, and City Manager to discover the current culture and .
process, what is working, and what is not working.
32
• 3. Based on-the meetings in Step 2 above, develop an Interview Guide for the Council with
current Position Description and Process for evaluating the City Manager along with
alternative methods (Straw Man Examples to shoot arrows at).
4. Conduct Individual Interviews with the Mayor and each Council Member and the City
Manager to discover any specific concerns and discuss alternative solutions to the Review
Process.
5. Revise the current Review Process and create a new one for the City Manager.
6. Present the proposed Management Review Process Solution to the Council for approval.
Check the "Four Questions"test for performance management.
7. Help implement the process to ensure its success during the first year. Quarterly meetings.
Timeline and Fees
This proposal can be implemented immediately after signing this Letter of Agreement. Dr.
Lynn's city consulting rate is $150.00/hr. An estimate of the following tasks shows:
• Problem determination and creating the Interview Guide — 6 hours
• Individual one hour interviews with the Council/City Manager — 8 hours
• Review and revise the Process,create a new one and present it - 8 hours
• Help implement the Process and coach the City Manager and Mayor - 10 hours
A total of four to six days of consulting or is estimated for the first year. Services are billed on
the first day of the month following the month during which services were performed.
Respectfully submitted, Accepted by,
James J. Lynn, Ed.D., LP Michael Morrison
Lynn & Associates City Manager
33
April 20, 2000
How do other cities do the City Manager's performance review?
Cities:
New Brighton and Ramsey:
Each Councilmember (including Mayor) fills out an individual evaluation form and then
they go over them at a work session with the City Manager. A composite is made of
all the evaluations and filed in the City Manager's personnel file. (Forwarding a copy
of an evaluation form)
Columbia Heights:
On the City Manager's anniversary the City Council and Mayor have an informal
meeting with the City Manager and go over review. (Forwarding a copy of an
evaluation form)
Roseville:
It is handled two different ways. 1) Each member of the Council fills out a form and
turns it into the Mayor and then he goes over it with the City Manager.
2) Each Councilmember (Mayor included) individually goes over their evaluation with
City Manager.
Fridley:
The Mayor and City Council do review. The Council has department managers fill out
an evaluation form and then they compile them_and review with the City Manager. (The
HR person said she would try and get a blank form from the Mayor to forward to us.)