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HomeMy WebLinkAboutCC PACKET 08102010H.R.A. Meeting immediately Following regular meeting CITY OF ST. ANTHONY VILLAGE CITY COUNCIL MEETING AGENDA August 10, 2010 8:00 p.m. Call to Order. Pledge of Allegiance. Roll Call. Consideration. Discussion, mild Possible Action on All of the following items: I. Approval of the August 10, 2010, City Council Meeting Agenda. (actio,! requested.) II. Proclamations and Recognitions. III. Consent Agenda. These items are considered routine and will be enacted by one motion. Thete u411 be no separate &se assion of these items unless a Coutnihnember or eiti.Zeit so :requests, in which event the item wid be removed fmm the Consent Agenda and placed elsewhere on the agenda. A. Approval of July 27, 2010, Council Meeting Minutes. (pp. 1-8) B. Licenses and Permits. (pp. 9-10) C. Claims. (pp. 11-12) D. Resolution 10-054; Electing to Continue Participating in. the Local Housing Incentives Account Program Under the Metropolitan Livable Communities Act for Calendar Years 2011 through 2020. (pp 13-26) IV. Public Hearing. V. Reports from Commission and Staff. VI. General Business of Council. A. Resolution 10-055; Accepting the Feasibility Report and Ordering Final Plans £or the 2011 Street Improvement Project. Todd Hubmer, WSB & Associates, presenting. (pp. 27-28 & booklet) B. Resolution 10-056; Resolution Relating to Phase III Redevelopment Agreement By and Among the City of St. Anthony, Minnesota, The Housing and Redevelopment Authority of the City of St. Anthony, Minnesota and Apache Redevelopment, LLC. ("The Developer") Stacie I-vilvang, Ehlers & Associates, presenting. (pp. 29-37) VII. Reports from City Manager and Council members. VIII. Community Forum. Individuals miry address the City Coitticil about aty iiei:r riot ineliided on the i-egielar agenda. Speakers are requestedto collie to the podium, sign their name and address on the foiwu at the podium, state their uaure and address far the Clerks record, and limit their temarks to five minutes. Generally, the City Council hill not take o f nal action 011 11B/rrJ d1JCnSJed at this tune, brit Ar1lJy ypically 1 refer the matter to staff, for a f ltn7e repo1Y or dit'ea the matter to be sebeduled on an upcoming agelad[l. IX. Information and Announcements. X. Adjournment. Our Mission is to be a progressive and livable community, a walkable village, which is safe and secure, FACouncil Yleetings\2010\08102010\agcnda.doc 1 1 CITY OF ST. ANTHONY 2 CITY COUNCIL REGULAR MEETING MINUTES 3 JULY 27, 2010 4 5 CALL TO ORDER. 6 7 Mayor Faust called the meeting to order at 7:00 p.m. 8 9 PLEDGE OF ALLEGIANCE. 10 11 Mayor Faust invited the Council and audience to join him in the Pledge of Allegiance. 12 13 ROLL CALL. 14 15 Present: Mayor Faust; Councilmembers Gray, Jenson, Roth, and Stille 16 Absent: None 17 Also Present: City Manager Mike Mornson. 18 19 20 CONSIDERATION, DISCUSSION, AND POSSIBLE ACTION ON ALI, OF THE FOLLOWING 21 ITEMS. 22 23 I. APPROVAL OF JULY 27, 2010 CITY COUNCIL MEETING AGENDA. 24 25 Motion by Councilmember Stille, seconded by Councilmember Roth, to approve the City 26 Council Meeting Agenda of July 27, 2010. 27 28 Motion carried unanimously. 29 30 IL PROCLAMATIONS AND RECOGNITIONS. 31 32 Councilmember Roth recited the Proclamation for the 2" d Annual Night to Unite in Minnesota on 33 August 3, 2010. 34 35 Mayor Faust stated that the Night to Unite event is a good opportunity for residents to get to 36 know their neighbors and encouraged residents to participate on August 3'(1. 37 38 III. CONSENT AGENDA. 39 40 A. Consider June 22, 2010 Council meeting minutes. 41 B. Consider licenses and permits. 42 C. Consider payment of claims. 43 D. Resolution 10-047; Authorizing Execution of Sub -Grant Agreement for the St Anthony 44 Fire Department. 45 E. Resolution 10-048; Acccoting Grant from Ramsey County for the 800MHz Radios for 46 the St. Anthony Police Department. 47 F. Resolution 10-049; Accepting a Grant from the Minnesota Twins Community Fund 48 Partnering with the St. Anthony -New Brighton school District 11282 for the 49 Improvements of Central Park Softball Fields_ 2 0 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 City Council Regular Meeting Minutes July 27, 2010 Page 2 G. Resolution 10-050; Authorizing the Mayor and City Manager to Execute the Assessment Agreement between the City of St Anthony and Hennepin County for the fears 2011 through 2014. H. Resolution 10-051; Accepting a Grant form the Mississippi Watershed Mana ement Organization (MWMO) Stewardship Fund Program for the St. Anthony Public Works Department. Motion by Councilmember Gray, seconded by Councilmember Jenson, to approve the Consent Agenda items. Motion carried unanimously. IV. PUBLIC HEARING. None. V. REPORTS FROM COMMISSION AND STAFF. A. Resolution 10-052; Approving a Conditional Use Permit for a Restaurant located within 250 feet from a Residential Structure or District for the property located at 3701 Stinson Boulevard. Mr. Don Jensen, Planning Commission Chair, reported that the Planning Commission held a public hearing last week to consider IHOP's request for a Conditional Use Permit to allow the location of an IHOP restaurant within 250 feet from a residential district. He stated that the applicant's plans as submitted were not amended by the Planning Commission and the Commission voted unanimously to recommend approval of the Conditional Use Permit with four conditions noted. He advised that the Planning Commission also reviewed the applicant's request for a Conditional Use Permit to operate a drive-thru window and explained that this will not be a drive-thru window typical of a fast food restaurant because the drive-thru window will only offer coffee, smoothics, and pastries. He added that the drive-thru window concept represents a new business enhancement being offered by IHOP. He indicated that the Planning Commission added a fifth condition with respect to exiting maneuvering and after discussion, the Planning Commission felt that because the IHOP is the sole use in that quadrant, it would take a "wait and see" attitude regarding repositioning the curb cut if it can be determined that a vehicular accident is directly related to the drive-thru facility. He stated that access to the drive- thru window could be moved further to the north to remove any type of traffic conflict and the applicant was amenable to that condition. Councilmember Stille asked if the Planning Commission discussed the possibility of setting hours for operation of the drive -thio window versus limiting the hours from opening to an hour before closing. Mr. Jensen stated that it is not the intent of the restaurant to be open 24 homy and, therefore, did not feel it was necessary to clarify specific hours of operation of the drive-thru window. City Council Regular Meeting Minutes July 27, 2010 Page 3 Councilmember Stille questioned a driver's ability to make the turn after exiting the drive-thru window because it is a fairly sharp turn and may be difficult to maneuver. Mr. Jensen stated that the Planning Commission agreed that this is a tight turn, but felt that because there is no competing traffic in the immediate vicinity, drivers would be able to make the turn. He reiterated that if the existing maneuver is determined to be hazardous to the community or IHOP clientele, the City retains the ability to require that the driveway be repositioned to the curb cut located in the northwest corner of the property. 10 Councilmember Jenson asked if this type of configuration has been used in other locations. 11 12 Mr. Jensen replied that tight turning movements have often occurred in various sites for pickup 13 and delivery and is really a question of how attentive drivers are. He stated that the applicant 14 offered to place an additional stop sign to make sure it is clear to drivers to come to a complete 15 stop after exiting the drive-thru window before moving forward. 16 17 City Manager Morrison stated that three accidents in five years have been reported at this 18 location. He pointed out that the hours of operation are set by City Ordinance and businesses are 19 not currently allowed to be open 24 hours. 20 21 Councilmember Gray asked if the Planning Commission considered requiring the entire parking 22 lot to be a one-way, similar to the Wendy's lot. He stated that he felt this might minimize traffic 23 conflicts coming out of the drive-thru window. 24 25 Mr. Jensen replied that the drive-thru window will only be a one-way and the Planning 26 Commission did not feel the entire parking lot should be a one-way. He added there is an island 27 that separates vehicles in the drive-thru lane from vehicles circulating the parking lot. 28 29 Mr. Terry Abney, Abney Development Services, Inc., project manager for IHOP, appeared 30 before the City Council and stated that he is working with Tammy Smith who currently operates 31 seven IHOP restaurants and will be operating this IHOP location. He stated that IHOP currently 32 has approximately 1,450 restaurants located in every state in the union and restaurant 33 conversions like this have become commonplace. He indicated that they are able to comply with 34 all the recommendations of the Planning Commission, including the limitation regarding hours 35 of operation, with the caveat that if they determine they would like to be a 24-hour operation, 36 that they can come back to the City and request that. He stated that the drive-thrtii window is a 37 new concept so it is unclear how well the concept will be received, but it is intended to have a 38 limited menu, with a menu board located next to the drive-thru window, and will be available 39 only during limited hours. He advised that on the site layout, there is an existing northerly 40 driveway that they will use and a curb will be installed along the last 75-80' of the property. He 41 stated that an enclosed trash container will be located on the north side, along with a concrete 42 approach. He discussed the current parking at 81 spaces, but based on last week's Planning 43 Commission meeting, they intend to remove a couple of parking spots along the southwest 44 corner to make it a little safer, resulting in parking for 79 vehicles. I -Ie presented the landscaping 45 plan, lighting plan, proposed signage, and a rendering of the building, showing earth tones except 46 for the blue roof. He stated that they anticipate beginning construction in approximately three 3 City Council Regular Meeting Minutes July 27, 2010 Page 4 1 weeks. He noted that one of the concerns they have is the poor condition of the sidewalks, 2 especially next to the sign where the last 20-30' of sidewalk is in bad shape. He stated that they 3 would like to replace those sidewalks now, rather than wait until the City's planned 4 reconstruction in 2012, and requested that the sidewalk replacement either be accelerated by the 5 City or to allow them to do the work and get some reimbursement from the City. 6 7 Councilmember Stille requested clarification regarding how someone would place an order at the 8 drive-thru window. 9 10 Mr. Abney stated that drivers will place their order face to face after viewing the menu board 11 located within six feet of the drive-thru window. 12 13 Councilmember Gray stated that this restaurant will be a great addition to the City. He expressed 14 continuing concern about the two-way driving into the parking lot, especially coming out of the 15 drive-thru window, and felt this represented too much risk instead of having people come in on 16 the south end and exiting on the north side to avoid conflicts. 17 18 Mr. Abney stated if this were a typical drive-thru with a significant amount of business, perhaps 19 they would be more concerned, but they do not anticipate that the drive-thru window will be 20 used enough to create traffic conflicts. 21 22 Mayor Faust stated that the City Ordinance is clear regarding hours of operation and businesses 23 are not allowed to be open from 1:00 a.m. to 5:00 a.m.; as a result, if the applicant later requests 24 a 24-hour operation, it is unlikely that the request will be granted based on current Ordinance. 25 He advised that staff will discuss the sidewalk replacement issue with the applicant, and added 26 that he is not aware of the City ever having provided reimbursement to a developer for sidewalk 27 replacement. 28 29 Councilmember Stille stated that he would like to add a sixth condition requiring only face -to - 30 face ordering at the drive-thru window, with no electronic enhancement or speaker system, to 31 avoid any negative impact to the residential properties planned near this location in the future. 32 33 Ms. Tammy Smith appeared before the City Council and stated the drive-thru window concept is 34 a new concept intended to compensate for the smaller seating capacity in the restaurant and to 35 provide a new service to customers that allows them to order limited items without having to 36 leave their car. She indicated that the drive-thru window will only serve coffee, smoothies, 37 bagels, or cinnamon rolls, and is intended to get customers in and out in less than two minutes. 38 She added that this service will always be face to face and she did not foresee a lot of business 39 with this limited menu. 40 41 Motion by Councilmember Roth, seconded by Councilmember Gray, to adopt Resolution 10- 42 052, Approving a Conditional Use Permit for a Restaurant located at 3701 Stinson Boulevard 43 and that is within 250 feet of a Residential Structure of District. 44 45 Motion carried unanimously. 46 rd City Council Regular Meeting Minutes July 27, 2010 Page 5 B. Resolution 10-053; Approving a Conditional Use Permit for a Drive-Thru in a Permitted Use for the property located at 3701 Stinson Boulevard. 4 Motion by Councilmember Stille, seconded by Councilmember Jenson, to adopt Resolution 10- 5 053, Approving a Conditional Use Permit for a Drive -Through Facility, with the addition of a 6 sixth condition requiring that no speaker system or microphone system shall be used in which to 7 place orders at the drive-thru window. 9 Councilmember Stille explained that he would like this condition added because the CUP runs 10 with the property and the property may be sold in the future. He stated he would rather be more 11 constraining now than later. 12 13 Mayor Faust stated that he felt condition #5 was vague, nebulous, and unenforceable and 14 requested that this condition be removed. 15 16 Councilmember Stille agreed to the friendly amendment to the motion. 17 18 Councilmember Jenson seconded the friendly amendment to the motion. 19 20 Mayor Faust clarified for the record that condition numbers 1-4 in Resolution 10-053 will 21 remain, condition 45 is deleted and replaced with the condition that no speaker system or 22 microphone system shall be used in which to place orders at the drive-thru window. 23 24 Motion carried unanimously. 25 26 VI. GENERAL BUSINESS OF COUNCIL. 27 28 A. VillageFest Update 29 30 Julianne Hunter, VillageFest Chairperson, presented an update of VillageFest and events planned 31 for Thursday, August 5t", through Sunday, August 8"'. She stated that information is posted on 32 the new website, www.stanthonyvillagefest.org. She advised that the golf tournament has been 33 moved this year to Columbia Golf Course and has also been moved to Thursday to accommodate 34 people involved in the tournament and to avoid conflicting with the parade on Friday. She stated 35 that the St. Anthony Lions will be collecting items for the food shelf during the parade. She 36 reported that the 5K run has been changed back to Saturday and will kick off at 8:00 a.m. She 37 noted that there will be a lot of activities for smaller children, including a petting zoo, games and 38 art work, and this year the inflatables have been expanded to include a climbing wall and 39 obstacle course; there will also be a tent set up in the middle of the inflatables for the teens and 40 tweens to have as their own area and will include a free guitar hero from 2:00-8:00 p.m. She 41 advised that the Village Pub will not be sponsoring a chili cook -off but instead will sponsor a 42 patio cookout from 12:00-5:00 p.m. on Saturday and a bocce throw off from 1:00-3:00 p.m. She 43 stated they are still in need of volunteers for bingo. She stated that the Kiwanis pancake 44 breakfast will close out the event on Sunday from 8:00 a.m. to 12:30 p.m.; tickets are available 45 from the Kiwanis. She expressed the organizing committee's thanks to the City Council, City 46 staff including fire, police, and public works, the St. Anthony shopping center tenants, St. 5 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 City Council Regular Meeting Minutes July 27, 2010 Page 6 Anthony Mobil, Culver's, Jack & Jill, the Chamber of Commerce, Kiwanis, Lions and all the volunteers and sponsors involved in making VillageFest a successful event every year. She directed residents to the website for current information regarding the event and questions may be directed to stanthon iw llagefest@gmail.com. She added that cash donations, gift baskets or gift cards for silent auction can be dropped off at City Hall or at Annona Gourmet in the shopping center. Mayor Faust expressed the City Council thanks to Ms. Hunter and all the committees involved in VillageFest. B. Quarterly Goals Update. Mr. Mornson presented his second quarter update on goals and stated there are 62 action items listed and progress has been made on 31 items during the second quarter and nine items have been completed. He reported that Goal #I- Environmental Stewardship has included several meetings regarding the clean-up of Silver Lake, and work continues on the ponds at Silver Lake Village; in addition, Congressman Ellison and Senator Klobuchar are working with staff to obtain funding for the clean up. He advised that a meeting was also held regarding the public gardens and soil testing is being conducted; this item will come to Council in August regarding the type of soil corrections needed and whether the desired site should be pursued. He indicated that with respect to Goal #2 -Maintain and Enhance Infrastructure, staff continues to monitor utility rates after adoption of the tiered water rate system. He added it is difficult to measure this after only two quarters, especially since there has been a lot of rain this year. He discussed Goal #3 -Foster and Encourage Civic Engagement, and stated that the new website design has been completed and staff attended a League -sponsored loss control seminar in April. He indicated that work on Goal #4 -Create & Maintain Healthy Neighborhoods included meeting with Pratt on the co-op proposal at Silver Lake Village and a new development agreement will be presented to the Council on August 10°i for Phase 2 of the project. He noted that renewal opportunities include the IHOP restaurant approved earlier this evening, and interest has been expressed regarding other developments that might be coming to the Council in the near future. He stated that Goal #5 -Communicate Effectively included completion of a story on tax savings published in the summer newsletter as well as a meeting with Community Services in April. He discussed Goal #6 -Increase & Maintain Fiscal Strength, noting that several of the items listed were approved earlier in the Consent Agenda, including the police grant, OSHA grant and I&I grant. He stated that the finance department completed its survey regarding street light utility fees, the Council previously discussed 20 year amortization versus 15 year amortization for bonds, the City just received a Ramsey County grant for police radios, and the Fire Department received a grant from Homeland Security for hazard mitigation. He added that a fitness week was held as part of the wellness program, as well as a `Biggest Loser" challenge at the liquor store, and finally, John Ohl and John Malenick attended a meeting with the County regarding the mass dispensing plan. 11 City Council Regular Meeting Minutes July 27, 2010 Page 7 VII. REPORTS FROM CITY MANAGER AND COUNCIL MEMBERS. 3 City Manager Morrison reported on the following: 4 • The August 10th City Council meeting will be held at 8:00 p.m. due to the primary 5 election and will include consideration of the development agreement with Pratt as well 6 as the feasibility report for the 2011 street project. 7 • A neighborhood meeting on the 2011 street project will be held next week. 8 • The deadline for the Council to pass a resolution to continue in the Met Council's livable 9 communities program is September 1st. Staff recommends the Council approve this 10 resolution to continue participating in the Met Council's funding programs. 11 • A workers' compensation audit was completed last week. 12 • The 2011 budget will be presented to the City Council on August 24th and September 10h 13 and will include approval of the levy. 14 • The State of Minnesota recently approved the City's compliance with the Local 15 Government Equity Act. 16 17 Councilmember Gray: No report. 18 19 Councilmember Jenson: No report. 20 21 Councilmember Roth: No report. 22 23 Councilmember Stille: No report. 24 25 Mayor Faust reported on the following: 26 27 • On June 23-25, he and Councilmembers Jenson and Gray attended a League of 28 Minnesota Cities conference. 29 • He presented the 2010 Law Summaries book and stated this summary provides useful 30 information on laws recently enacted and how those laws affect cities. 31 • June 291h Mississippi Watershed Management Organization meeting. 32 • June 29th Senior Citizen 2010 volunteer appreciation meeting. He expressed the City 33 Council's thanks to all the volunteers who perform work on behalf of the City. 34 • July 8°i informational meeting with Rice Creek Watershed District and Minnesota 35 Pollution Control Agency regarding water quality. He stated this meeting was open to all 36 residents and was well -attended. He noted that the City is close to TMDL and a request 37 has been placed with Senator Klobuchar to see if the City can obtain funding. 38 • July 12°i farmers market kick-off at the shopping center. The farmers market has a 39 website: www.thevillagefarmersmarket.ora. 40 • July 13th Mississippi Watershed Management Organization meeting. 41 • On July 21st, turf maintenance with reduced environmental impacts program was kicked 42 off, sponsored by the Minnesota Pollution Control Agency and MWMO. The program 43 provides information on how to use fewer pesticides, proper mowing and fertilizing 44 techniques, as well as ways to protect lakes, streams, and rivers. The program is a free 4- 45 t/2 day event intended to provide information on reversing the negative environmental 46 impacts of turf maintenance. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 City Council Regular Meeting Minutes July 27, 2010 Page 8 • July 13`" meeting with the Historical Society. The books are going to the printers on July 30" and will be ready in the fall. The Historical Society may have a shared booth at VillageFest. • The City received the Governor's Award today from the Minnesota Pollution Control for its water reuse program; this is the fifth award the City has received. The awards program will be aired on Channel 16 and further information is available on the Pollution Control Agency's website. • Another meeting with the Mississippi Watershed Management Organization will be scheduled regarding the building in Minneapolis. VIII. COMMUNITY FORUM. Mayor Faust invited residents to come forward at this time and address the Council on items that are not on the regular agenda. Hearing none, Mayor Faust moved forward with the agenda. IX. INFORMATION AND ANNOUNCEMENTS. Mayor Faust stated that a group of folk dancers from Finland will be performing at VillageFest and several other locations during their visit to Minnesota; further information is available on the City's website. X. ADJOURNMENT. Mayor Faust adjourned the meeting at 8:10 p.m. Respectfully submitted, Barbara Hughes TimeSaver Off Site Secretarial, Inc. ATTEST: City Clerk Mayor Saint Anthony Village DATE: August 10, 2010 Approved: TO: Mayor and Councilmembers FROM: License Clerk ITEM: License and Permits for Approval: Blacktop, Maple Grove, MN Dave's Heating & Air Conditioning, Columbia Heights, MN River City Sheet Metal, Fridley, MN St Marie Sheet Metal, Fridley, MN Multiple Dwelling License: Applicant: The Landings Location: 2551 38th Ave D & J Properties 3721 Chandler Dr Equinox Properties 2808 Silver Ln Applicant: Walter Sentyrz Location: 2604 27th Ave Applicant: Nikki Mason Location: 2702 37°i Ave Travis Killoren 3404 37th Ave Mark & Julie Toboll 2407 39°i Ave #413 Applicant: Donald Doeksen Location: 3226 — 3228 Roosevelt St F, Temporary 3.2 Beer Permit: Applicant: Sharon Poland Date: August 14, 2010 Location: Central Park 10 U S BANK ST. ANTHONY VILLAGE 11 CHECK REGISTER VENDOR# PAYEE CHECK# DATE AMOUNT 8964 ACCLAIM BENEFITS 12809 8/11/2010 $120.00 8712 ADVANCED GRAPHIX, INC. 12810 8/11/2010 $497.50 8621 ALLIANCE MECHANICAL 12811 8/11/2010 $1,164.50 8450 ANIMAL CONTROL SERVICES, 12812 8/11/2010 $373.65 8237 ASPEN MILLS 12813 8/11/2010 $344.10 3714 B & F FASTENER SUPPLY 12814 8/11/2010 $4.55 9809 BATTERIES PLUS 12815 8/11/2010 $94.01 8939 BEARCOM 12816 8/11/2010 $742.09 4293 BELLBOY CORP. 12817 8/11/2010 $15,133.86 9797 BERTELSON 12818 8/11/2010 $22.57 7157 BROCK WHITE COMPANY, LLC 12819 8/11/2010 $40.08 4231 CAPITOL BEVERAGE SALES 12820 8/11/2010 $22,786.05 9100 CAT & FIDDLE BEVERAGE 12821 8/11/2010 $846.99 4065 CENTRAL LOCK & SAFE CO 12822 8/11/2010 $239.75 4080 CHISAGO LAKES DISTRIBUTI 12823 8/11/2010 $1,508.16 9056 CITY OF ROSEVILLE 12824 8/11/2010 $214.24 8275 CITY OF ST. PAUL 12825 8/11/2010 $85.50 9209 CLOSE LANDSCAPE ARCHITEC 12826 8/11/2010 $334.50 4095 COCA COLA BOTTLING COMPA 12827 8/11/2010 $2,377.68 4101 COMMERS CONDITIONED WATE 12828 8/11/2010 $105.65 4107 COMPTON'S COMMERCIAL CLN 12829 8/11/2010 $3,823.99 9820 CRYSTAL SPRINGS ICE 12830 8/11/2010 $730.49 8834 DEMPSEY'S STUMP SERVICE 12831 8/11/2010 $180.00 807 DIAMOND VOGEL PAINTS 12832 8/11/2010 $95.97 820 DORSEY & WHITNEY 12833 8/11/2010 $16,568.75 .0304 DRIVER & VEHICLE SERVICE 12834 8/11/2010 $20.00 8411 DRIVER & VEHICLE SERVICE 12835 8/11/2010 $20.00 8634 DRIVER & VEHICLE SERVICE 12836 8/11/2010 $20.00 .0308 DRIVER & VEHICLE SVCS 12837 8/11/2010 $20.00 .0309 DRIVER & VEHICLE SVCS 12838 8/11/2010 $20.00 9604 EMERGENCY VEHICLE SERVIC 12839 8/11/2010 $3,631.61 8697 EXTREME BEVERAGE 12840 8/11/2010 $67.00 9798 FERGUSON WATERWORKS 12841 8/11/2010 $181.70 9824 FIRE SAFETY USA, INC. 12842 8/11/2010 $400.00 9667 FLAT EARTH BREWING CO 12843 8/11/2010 $227.94 9055 FREEWAY TOWING 12844 8/11/2010 $273.15 1030 G & K SERVICES INC 12845 8/11/2010 $827.23 8127 GRAFIX SHOPPE 12846 8/11/2010 $885.00 1250 GRAINGER 12847 8/11/2010 $12.79 8813 HEALTHPARTNERS 12848 8/11/2010 $2,648.12 8221 HEDBACK, ARENDT, KOHL 12849 8/11/2010 $5,000.00 9808 HEUN ENTERPRISES, INC 12850 8/11/2010 $1,845.00 4207 HOHENSTEIN'S, INC 12851 8/11/2010 $7,878.25 8252 HOME DEPOT CREDIT SERVIC 12852 8/11/2010 $410.52 9346 INFRASTRUCTURE TECHNOLOG 12853 8/11/2010 $1,025.00 4125 JJ TAYLOR DISTRIBUTING 12854 8/11/2010 $31,622.18 4220 JOHNSON BROTHERS LIQUOR 12855 8/11/2010 $38,249.48 9755 L.T.G. POWER EQUIPMENT 12856 8/11/2010 $300.70 2040 LILLIE SUBURBAN NEWSPAPE 12857 8/11/2010 $288.75 2160 MARSHALL CONCRETE PROD 12858 8/11/2010 $966.68 U S BANK ST. ANTHONY VILLAGE 12 CHECK REGISTER VENDOR # PAYEE CHECK # DATE AMOUNT 2240 METROPOLITAN COUNCIL 12859 8/11/2010 $41,854.62 2280 MIDWEST ASPHALT CORP 12860 8/11/2010 $45.77 8850 MINNESOTA HIGHWAY SAFETY 12861 8/11/2010 $732.00 9827 MINNESOTA SHERIFFS ASSOC 12862 8/11/2010 $600.00 9020 MINNESTALGIA WINERY 12863 8/11/2010 $180.00 9523 NORTHSTAR INSPECTION SER 12864 8/11/2010 $6,349.79 45 OFFICE DEPOT 12865 8/11/2010 $1,143.67 .0305 OLSON/GRANT & LISA 12866 8/11/2010 $50.00 7226 OLSON'S PLUMBING 12867 8/11/2010 $3,241.41 8528 PACE ANALYTICAL SERVICES 12868 8/11/2010 $336.00 9615 PAETEC 12869 8/11/2010 $182.36 4354 PAUSTIS & SONS 12870 8/11/2010 $1,637.51 4360 PHILLIPS WINE & SPIRITS 12871 8/11/2010 $14,842.06 4372 PLUNKETT'S 12872 8/11/2010 $72.25 9139 PROPERTY KEY, INC. 12873 8/11/2010 $50.00 4385 QUALITY WINE CO 12874 8/11/2010 $20,685.22 9550 RAMSEY COUNTY 12875 8/11/2010 $231.14 .0306 RICHMOND/JIM 12876 8/11/2010 $50.00 8344 SPIESS/JEFF 12877 8/11/2010 $285.00 9801 SPOSITO'S SERVICES, INC. 12878 8/11/2010 $100.00 9259 SPRINT 12879 8/11/2010 $120.10 4782 ST ANTHONY VILLAGE CENTE 12880 8/11/2010 $1,899.61 8665 ST. CROIX RECREATION CO. 12881 8/11/2010 $4,260.04 8872 SUCIU/BARB 12882 8/11/2010 $86.00 4780 SURLY BREWING CO 12883 8/11/2010 $2,410.00 5273 TESSMAN SEED INC. 12884 8/11/2010 $308.33 3560 TRACY PRINTING 12885 8/11/2010 $188.10 9410 TRUCK UTILITIES INC 12886 8/11/2010 $44.75 9791 UNCORKED BEVERAGE CO 12887 8/11/2010 $1,200.00 8336 UNITED ELECTRIC COMPANY 12888 8/11/2010 $123.04 8270 UNITED STATES POSTAL SER 12889 8/11/2010 $700.00 8227 VERIZON WIRELESS 12890 8/11/2010 $920.91 4451 VINOCOPIA 12891 8/11/2010 $661.16 4494 WASTE MANAGEMENT - BLAIN 12892 8/11/2010 $605.00 9497 WATER CONSERVATION SERVI 12893 8/11/2010 $215.00 8316 WINE COMPANY/THE 12894 8/11/2010 $533.25 8310 WINE MERCHANTS INC 12895 8/11/2010 $2,115.83 4175 WIRTZ BEVERAGE - (GRIGGS 12896 8/11/2010 $12,623.09 9734 WIRTZ BEVERAGE MINNESOTA 12897 8/11/2010 $18,000.05 4499 WORLD CLASS WINES, INC. 12898 8/11/2010 $540.80 2680 XCEL ENERGY 12899 8/11/2010 $7,336.31 9711 Z WINES USA LLC 12900 8/11/2010 $887.00 TOTAL $313,722.90 3 STAFF REPORT To: Mayor and City Council Michael J. Morrison, City Manager From: Kim Moore -Sykes, Assistant City Manager 0J J Date: August 10, 2010 Subject: City Participation in the Local Housing Incentives Account Program under the Metropolitan Livable Communities Act. Background: Since 1996, the City of St. Anthony has voluntarily elected to participate in the Metropolitan Livable Communities Act - Local Housing Incentives Account (LCM - LHIA). The City's participation has provided opportunities for the City to be eligible to compete for LHIA grants and loans to support the City's efforts in meeting its ongoing affordable and life -cycle housing goals. The City of St. Anthony is again being asked by the Metropolitan Council to continue its participation in the Livable Communities Act, thereby preserving the City's future funding eligibility. As such, the City is being asked to pass a resolution to continue it's participation for another ten (10) years, through the calendar year of 2020. Additionally, if the City agrees to continue it's participation with the Metropolitan Council's LCA - LHIA, the City must develop a Housing Action Plan that outlines the steps the City will take to meet its LCA goals by December 1, 2010. Much of this housing plan already exists as a part of the City's Comprehensive Plan Update completed and submitted to the Metropolitan Council in 2009. This information is part of the City's Comp Plan in the housing implementation section. The attachments are included to provide additional information about the Livable Communities Act and the related programs. Attachment: • Resolution 10-054 - RESOLUTION ELECTING TO CONTINUE PARTICIPATION INTI -IE LOCAL HOUSING INCENTIVES ACCOUNT PROGRAM UNDER THE METROPOLITAN LIVABLE, COMMUNITIES ACT FOR THE PERIOD FROM 2011 To 2020. City of St. Anthony's Housing Plan, 2010 Comprehensive Plan Update and Land Use Analysis, Chapter 2, Page 2-32 & 2-33. Letter from the Metropolitan Council with Enclosures A, B and E Email from Paul Burns, Manager, Livable Communities Program Regarding ALHOA 2010 City Participation in Livable Communities 2011 2020-doc 14 CITY OF ST ANTHONY RESOLUTION No. 10-054 A RESOLUTION ELECTING TO CONTINUE PARTICIPATING IN THE LOCAL HOUSING INCENTIVES ACCOUNT PROGRAM UNDER THE METROPOLITAN LIVABLE COMMUNITIES ACT FOR CALENDAR YEARS 2011 THROUGH 2020. WHEREAS, the Metropolitan Livable Communities Act (Minnesota Statutes sections 473.25 to 473.255) establishes a Metropolitan Livable Communities Fund which is intended to address housing and other development issues facing the metropolitan area defined by Minnesota Statutes section 473.121; and WHEREAS, the Metropolitan Livable Communities Fund, comprising the Tax Base Revitalization Account, the Livable Communities Demonstration Account, the Local Housing Incentive Account and the Inclusionary Housing Account, is intended to provide certain funding and other assistance to metropolitan - area municipalities; and WHEREAS, the City of St. Anthony, a metropolitan -area municipality, is not eligible to receive grants or loans under the Metropolitan Livable Communities Fund or eligible to receive certain polluted sites clean-up funding from the Minnesota Department of Employment and Economic Development (DEED) unless St. Anthony is participating in the Local Housing Incentives Account Program under Minnesota Statutes section 473.254; and WHEREAS, the Metropolitan Livable Communities Act requires the Metropolitan Council to negotiate with each municipality to establish affordable and life -cycle housing goals for that municipality that are consistent with and promote the policies of the Metropolitan Council as provided in the adopted Metropolitan Development Guide; and WHEREAS, previously negotiated affordable and life -cycle housing goals for municipalities participating in the Local Housing Incentives Account Program expire in 2010; and WHEREAS, St. Anthony as a metropolitan -area municipality can participate in the Local Housing ,Incentives Account Program under Minnesota Statutes, section 473.254 if: (a) the City of St. Anthony elects to participate in the Local Housing Incentives Program; (b) the Metropolitan Council and the City of St. Anthony successfully negotiated new affordable and life -cycle housing goals for the City of St. Anthony; (c) the Metropolitan Council adopts by resolution the new negotiated affordable and life -cycle housing goals for the City of St. Anthony; and (d) the City of St. Anthony establishes it has spent or will spend or distribute to the Local Housing Incentives Account the required Affordable and Life -Cycle Housing Opportunities Amount (ALHOA) for each year the City of St. Anthony participates in the Local Housing Incentives Account Program. NOW, THEREFORE, BE IT RESOLVED THAT the City of St. Anthony: Elects to participate in the Local Housing Incentives Program under the Metropolitan Livable Communities Act for calendar years 2011 through 2020. 2. Agrees to the following affordable and life -cycle housing goals for calendar years 2011 through 2020: Affordable Housing Goals Range Life -Cycle Housing Goals Range 203 to 312 310 to 800 Will prepare and submit to the Metropolitan Council a plan identifying the actions it plans to take to meet its established housing goals. Adopted this 10`x' day of August. 2010 ATTEST: City Clerk Review for Administration: Mayor City Manager 15 16 Zand.Use Analysis and Plan Housing Plan Total New Housing The Metropolitan Council has forecast an increase of approximately 900 housing units between the years 2000 and 2030. The 798 housing units constructed or approved at Silver Lake Village will, when complete by 2010, have moved the City most of the way toward that number. As discussed above, the current mix of housing includes a relatively high number of rental apartments across the city. However, the community could probably absorb a more owner -occupied townhouses and luxury condominium apartments. These should be in small, well-designed projects that complement nearby single-family homes and create walkable districts. The city's fine image and convenient location support the demand for new, upscale housing units. Because the city is fully developed, additional housing would have to occur through redevelopment. Potential locations for such change may include the vicinity of Silver Lake Village (6.5 acres planned for higher density housing), the Kenzie Terrace corridor (22.5 acres for higher density housing), the northeast industrial area (3 acres of higher density housing), and smaller sites along arterial roads such as Stinson Boulevard, 37"' Avenue or 39"' Avenue east of Silver Lake Road (approximately one acre for higher density housing). As noted in Table 2-6, the anticipated density for this higher density housing development is 25 to 40 units per acre. New Affordable Housing Objective: The Twin Cities Metropolitan Council has set a numeric objective of 312 new affordable housing units for St. Anthony between the years 2011 and 2020.° Thi; objective was based on three factors: Proximity of low-wage jobs compared to the number of low-income workers The community's percentage of affordable housing units The community's level of transit service. All of the additional housing units forecast by the City are expected to be attached units, which may aid affordability. The City of St. Anthony acknowledges its share of the regional need for low- and moderate -income housing. And, as a participant in the Metropolitan Livable 4 Source: "2011 — 2020 Allocation of Affordable Housing Need by City," Twin Cities Metropolitau Council, July 2006. City of St. Anthony Village 2.32 17 Land Use Analysis and Plan Communities Act program, the City of St. Anthony is committed to achieving the objective stated above. Tools: The City of St. Anthony Village will seek to achieve that objective by watching for redevelopment opportunities in which investors may use local, county, regional, state agency or private non-profit corporate assistance to reduce the cost of some new units, or to rehabilitate existing rental housing units and regulate their rental rates to affordable levels. Applicable fiscal tools or incentives may include but are not limited to: • Zoning and land use plan incentives such as higher allowable densities or the use of flexible design mechanism such as the planned -unit development provisions of the zoning ordinance. • Site redevelopment assistance through tax increment financing, local tax abatement or general obligation bonds. • Rent assistance through the federal Section 8 program available through either the Hennepin County HRA or the Metropolitan Council HRA. • Housing rehabilitation loans funded by local Community Development Block Grant funds, the Hennepin County HRA, the Greater Metropolitan Housing Corporation, the Minnesota Housing Finance Agency or the Housing Resource Center Northeast. First-time homebuyer assistance funded by the Hennepin County HRA, the Greater Metropolitan Housing Corporation or the Minnesota Housing Finance Agency. Rental housing development programs sponsored by the Minnesota Housing Finance Agency, the Greater Metropolitan Housing Corporation or the Hennepin County HRA, or local housing development revenue bonds. Cooperating with a non-profit housing development corporation to develop or preserve affordable housing opportunities. A variety of indirect assistance through the Hennepin Community Works program such as site assembly, site preparation, or streetscape and park improvements. Extending along Kenzie Terrace the design concepts employed for the Lowry Avenue Corridor Project (which presently terminates at Stinson Boulevard) could support redevelopment activities in that district, which could include affordable housing units, market -rate housing and retail or office buildings. As in the example of Silver Lake Village, the City will strive to ensure that new affordable housing units be blended into market -rate housing so there is no major or apparent exterior difference in appearance. City of St. An(hony Village ____- 2-33 Au ii u litan Council June 25, 2010 Mr. Michael Mornson City Manager City of St. Anthony . 3301 3301 Silver Lake Road St. Anthony MN 55418 Dear Mr. Mornson: The City of St. Anthony previously elected to be a participant in the Metropolitan Livable Communities Act Local Housing Incentives Account (LCA LHIA). Participation in the voluntary LCA LHIA provides the City with the opportunity to compete for grants and loans to support activities that help the City meet its affordable and life cycle housing goals, clean up polluted sites, and support demonstration projects linking jobs, housing and transit. The City's previously adopted LCA LHIA affordable and life cycle housing goals were negotiated with the Metropolitan Council for the period 1996 — 2010. Those goals are indicated in Enclosure A. If the City elects to continue its participation in the LCA, it must establish new affordable and life -cycle housing goals for the next decade (2011 through 2020). As part of the City's recently submitted 2030 Comprehensive Plan Update, it acknowledged its fair share of the region's affordable housing need. For the City of St. Anthony the fair share number is 312 units over the next 10 years. Although the Council fully supports the need for this total number of new affordable units over the next decade, it also acknowledges the reality of limited funding available to create new affordable housing opportunities. For this reason, the Council asks the City establish its LCA affordable housing goal as a range of 203 to 312 units for the period 2011 to 2020 with the low end of the range representing the number of units that can be accomplished at currently available funding levels region -wide. Regarding the City's life -cycle housing goal to diversify the type and density of housing to meet residents' changing housing needs and preferences, the Council asks the City establish a goal range of 310 to 800 units over the next decade. The low end of the range represents the community's total share of the region's affordable housing need and the high end is the potential number of units permitted by the land use guiding in the City's 2030 Plan Update for medium, high, mixed use, redevelopment, TOD or similarly named residential development, or the total forecasted household growth for the community to 2020, whichever number is less. www.inetrocouncil.orp :390 Robert SCiret NOI-t)1 • St. Paul, NIN 55101-1805 • (651) 602-1000 • FaX (651) 602-15:50 • 'I"rY (651) 291-0904 Ar, Ggiml OPPmtinlln, Cnyfln�er em 19 City of St. Anthony, Cont. Enclosed with this letter is a listing of the grants awarded to the City of St. Anthony through the LCA and a list of projects the City applied for, but where funding was not awarded. See Enclosure B. To make official the City's decision to continue participation in the LCA, the Metropolitan Council is asking the City to adopt these new affordable and life -cycle housing goal ranges, by passing a resolution that incorporates the numbers described above. A sample resolution is enclosed; however, the City may craft the resolution in the manner that best meets its needs as long as the affordable and life -cycle goals are part of the resolution. The Council asks that the City pass a resolution and provide a copy to the Council no later than September 1, 2010. See Enclosure C. Additional y, 2�r?iJt94�;,gpl? gltjlltl the steps the City will ty to lie�p meet its LCA goals. Much, if not all of this Action Plan can betaken from the housing implementation section of the City's Comprehensive Plan Update. A checklist to assist in the development of the Housing Action Plan is attached as Enclosure D. We have also attached an information item about the LCA, (Enclosure E), and additional information is available on the Council's website at http://www.metrocouncil,org/i)lanning/index.htm The LCA emphasizes cooperation and incentives to achieve goals. The Metropolitan Council looks forward to continuing to work with the City through its continued voluntary participation in the LCA to continue to meet the affordable and life -cycle housing needs of the City and the region. If you have any questions or need additional information please feel free to contact you Council staff Sector Representative, Denise Engen, at (651) 602-1513 or denise.engen@metc.state.mn.us. Sincerely, Guy Peterson, Director, Community Development Division Metropolitan Council Enclosures for the City of St. Anthony: A: 1996 to 2010 LCA Goals B: Funded and unfunded LCA projects/grants C: Sample city resolution D: Ilousing Action Plan checklist E: Information on the LCA cc: Denise Engen, Sector Representative 20 Enclosure A City of St. Anthony Livable Communities Act (LCA) Goals* 1996-2010 New Affordable Ownership Units: 76 New Affordable Rental Units: 15 New Rental Units - All: 33 * When communities established LCA goals in 1995, the goals were expressed as percentages of the communities' housing stock (ownership and rental). The numbers above represent the unit numbers extrapolated from the percentages. 21• Enclosure B Funded and Unfunded Projects/Grants Funded LCA Grants 1996 - 2009 for the City of St. Anthony 2003 $585,600 Apache Plaza Unfunded LCA Grants 1996 - 2009 for the City of St. Anthony 2002 $5,050,000 Apache Plaza/Northwest Quadrant 2000 $150,000 St. Anthony Village Northwest Redevelopment ON Enclosure E The Livable Communities Act (LCA) The Minnesota Legislature created the Livable Communities Act (LCA) in 1995. The LCA is a voluntary, incentive -based approach to address the Metropolitan Area's affordable and lifecycle housing needs while providing funds to communities to assist them in carrying out their development plans. LCA funds have leveraged millions of additional dollars in private and public investment that has provided new jobs, housing choices, and business growth. The Legislature established the Metropolitan Livable Communities Fund, including three on-going accounts from which eligible communities could apply for funding: The Tax Base Revitalization Account (TBRA) helps cities clean up contaminated urban land and buildings for subsequent redevelopment that could include commercial, industrial, or housing opportunities. Supporting redevelopment opportunities that restore the tax base, create or retain jobs, or add affordable housing to the region are the primary objectives of this account. Projects funded through the TBRA foster increased reinvestment and infill near existing housing and services and help clean up the environment and protect water quality in the region's urban communities. From 1996 through 2009, $69.3 million in Tax Base Revitalization Account grants (238 grants in 38 communities) have assisted projects which are expected to: • Leverage $3.68 billion in private investment • Increase annual net tax capacity by $62.5 million • Create or retain over 31,000 jobs • Redevelop over 1,600 acres of former brownfields The Livable Communities Demonstration Account (LCDA) funds public infrastructure and land assembly for development and redevelopment projects that achieve connected development patterns that link housing, jobs and services, maximize the development potential of existing or planned infrastructure and regional facilities, and expand affordable and life -cycle housing options in the region. LCDA awards have been used to revitalize communities and establish new neighborhoods as places for living, working, meeting daily shopping needs and recreation. The LCDA program is a popular funding source to help achieve regional and local community development objectives in the region's communities. Funded project elements have included land acquisition, street infrastructure, pedestrian connections, stormwater management infrastructure, and public -use structured parking to support additional density. LCDA funding is a catalyst that enables cities and developers to implement replicable models that expand development options in the market. From 1996 through 2009, $81.8 million in Demonstration Account funds (155 grants to 49 communities and three multi -city coalitions) have assisted projects which are expected to: • Leverage nearly $2.95 billion in private development investment • Leverage over $1.1 billion in other public investment • Provide over 21,500 new housing units • Rehabilitate over 600 housing units - single-family houses, townhouses, condominiums, rental apartments for families and seniors, and live -work housing • Offer replicable examples of: The Livable Communities Act 23 In 2000 & 2004 the Council awarded Inclusionary Housing Account (IHA) grants totaling almost $4.6 million (13 grants to 8 communities) to assist with gap financing for projects that were expected to: • Include $125 million in total development investment • Help develop 134 new affordable condominiums and townhomes • Help develop 578 new rental units -271 of which are affordable to lower income households Total LCA Awards From 1996 through 2009, the Metropolitan Council awarded a total of $198,731,459 in 578 grants and loans. Over 90% of these LCA awards have been used to move forward to completion projects that have leveraged over $9 billion in private and other public investment, created over 24,000 housing units and nearly 31,000 jobs while adding over $62 million to the metro area tax base. During this timeframe, 52 awards have been relinquished in full or in the majority, for a net award total of $175,682,248 in 526 grants. Applicant Eligibility In order to be eligible to compete for this funding, the LCA requires interested communities to: negotiate long-term affordable and lifecycle housing goals with the Metropolitan Council; have in place an LCA Housing Action Plan to identify and give direction to the city's use of programs, official controls and fiscal devices to help accomplish these negotiated goals; and contribute toward or expend locally a specified amount of local resources for affordable housing each year they participate in the program. This contribution, or expenditure, is called the Affordable and Life -Cycle Housing Opportunities Amount (ALHOA) and is an amount equal to the community's Livable Communities Demonstration Account levy. Communities must expend or contribute at least 85% of their annual ALHOA obligation annually. Communities have some flexibility in determining which local expenditures fulfill the ALHOA contribution. Examples of ALHOA-qualifying expenditures include housing assistance, development or rehabilitation efforts, the costs of local housing inspection and code enforcement, and local taxes to support a local or county Housing and Redevelopment Authority. Conclusion The Livable Communities Act funding has been a valuable tool to help metropolitan area communities: Build stronger communities through infill redevelopment of brownfields, tax base growth, and new jobs Provide neighborhoods throughout the region with more housing opportunities linked to a mix of neighborhood retail and commercial services, and public spaces Increase public/private investment to develop, improve, and preserve affordable and lifecycle housing (This document was adapted by Livable Communities staff on 6-21-10 from a document prepared for the 2009 American Planning Association Conference entitled Twin Cities Livable Communities Projects) The Livable Communities Act Saint Anthony Metropolitan Council ALHOA Calculation for 2011 ALHOA--required expenditure/ contribution for taxes payable"in 2010 24,718 24 Metropolitan Council - Communities participating in the Livable Communities program Page I of I 1j," Metropolitan Council > Planning+Development > Livable Communities program LCA Participating Communities Twin Cities communities participating in the Metropolitan Livable Communities Act (LCA) by county, as of January 2009. More about the LCA. - .__... Anoka .._.._._,._. Carver .._.._ .._._......_ Dakota Hennepin Ramsey Scott i W; • Anoka • Carver • Apple . Bloomington Arden Hills Belle • Blaine • Chanhassen Valley I • Brooklyn • Falcon Plaine • Centerville . Chaska • Burnsville Center Heights I • Elko New • Circle . Cologne Eagan . Brooklyn Lauderdale Market Pines . Hamburg • Empire ! Park . Little Jordan • Columbia • Mayer Township • Champlin j Canada Prior Heights • New Germany Farmington ! Crystal Maplewood Lake • Columbus • Norwood/Young • Hastings • Dayton • Mounds ' • Savage Coon America • Inver • Eden Prairie View Shako pee i Rapids Victoria Grove ( . Edina • New • Fridley Hgts. Brighton • Hilltop • Waconia • Lakeville • I Excelsior I . North St. • Lexington • Watertowni j . Mendota • Golden I Valley Paul Lino Lakes Hgts. • Hopkins j • Roseville j • Oak Grove l • Rosemount Long Lake St. Paul Ramsey 1 So. St. Loretto • Shoreview • -St. Francis Paul vadnais I • Sunfish I • Ma le Grove p Heights • Spring Lake Park t Lake • Maple Plain White Bear • W, St. Paul • Medina I Twp. r • Minneapolis . White Bear • Minnetonka Lake • Minnetonka i Beach • Mound • New Hope • Orono • Osseo • Plymouth _ I . Richfield • Robbinsdale I • Rogers I • St. Anthony j • St. Bonifacius �i, • St. Louis Park Wayzata'. Nome I About Us I Contact Us I Site Map I Privacy I Accessibility I I"hursday May 20 2010 © 2010 Metropolitan Council. All Rights Reserved, , 390 Robert St. N., St. Paul, MN 55101 Phone: 651-602-1000 - TTY: 651-291-0904 1ittp://www.metrocouncit.org/services/liveomm/LCAcommunities.litIn 7/30/2010 25 Kim Moore -Sykes 26 From: Burns, Paul (Paul.Burns@metc.state. mn.us] Sent: Monday, August 02, 2010 2:54 PM To: Kim Moore -Sykes Cc: Engen, Denise; Reetz, Beth; Milashius, Linda Subject: RE: ALHOA figure? Ms Moore -Sykes: Below is a description of the Affordable and Life -Cycle Housing Opportunity Amount (ALHOA): ALHOA Contribution The Affordable and Life -Cycle Housing Opportunities Amounts (ALHOA) represents the minimum amount of local discretionary expenditures or contributions a community must spend to assist the development or preservation of affordable and life -cycle housing for that participation year. The ALHOA is not a grant from the LCA. It is a required local contribution or expenditure of local dollars on affordable housing. In order to continue to participate in the program, communities must expend or contribute at least e5 percent of their ALHOA obligation for the applicable year. Communities have some flexibility in determining which local expenditures fulfill the ALHOA contribution. Examples .include local dollars contributed to housing assistance, development or rehabilitation efforts, the costs of local housing inspection and code enforcements, or local property taxes to support a local. or county HRA. In checking on the amounts for a few communities, the dollar amount does not appear to be difficult to achieve and I have not been able to identify any community that: has been forced to drop out of the program because they could not come up with their ALHOA contribution. It appears the ALHOA amount for. St. Anthony in 201.1 will. be $24,718. Please let us know if you have any additional. questions. Paul Burns, AICI? Manager, Livable Communities Program Motropol.itan Council --- 390 Robert Street North St. Paul., MN 56101-1.£30' (651) 602-1.106 -- fax: (651.) 602-1.442 paul..burns@metc.state.mn.us From: Engen, Denise Sent: Monday, August 02, 2010 9:25 AM To: Burns, Paul Cc: Kim Moore -Sykes, City of St. Anthony Subject: ALHOA figure? A WSB Ls.mcinMs. lan. Engineering ■ Planning ■ Environmental ■ Construction August 3, 2010 The Honorable Mayor, City Council and Staff c/o Michael Morrison City of St. Anthony Village 3301 Silver Lake Road NE Minneapolis, MN 55418-1603 Re: Resolution 10-055 2011 Street and Utility Improvement Project Feasibility Project St. Anthony Village, MN WSB Project No. 1626-53 Dear Honorable Mayor, City Council, and Staff: 701 Xenia Avenue South Suite 300 Minneapolis, MN 55416 Tel: 763-5414800 Fax: 763.541.1700 We are pleased to present to you the attached 2011 Street and Utility Improvements feasibility report for the reconstruction of the following streets: 1. Belden Drive NE from 37`I' Avenue NF, to 36°i Avenue NE 2. Coolidge Street NE from 37°i Avenue NE to 36t1i Avenue NE 3. Harding Street NE from 37°i Avenue NE to 36t" Avenue NE 4. Edward Street NE from 37°i Avenue NE to 36'I' Avenue NE Attached for your consideration is a resolution accepting the feasibility report and authorizing preparation of final plans and specifications. I will be available to answer your questions at your August 10, 2010, Council Meeting, or you may call me at (763) 287-7182. Sincerely, WSB & Associates, Inc Todd E. Hubmer, PE City Engineer Attachments Minneapolis ■ St. Cloud Equal Opportunity Employer K1053MUN-Linro00210.,1- 27 CITY OF ST. ANTHONY RESOLUTION 10-055 A RESOLUTION RECEIVING FEASIBILITY REPORT AND ORDERING PLANS AND SPECIFICATIONS FOR 2011 STREET RECONSTRUCTION WHEREAS, pursuant to resolution of the Council adopted June 8, 2010, a report was prepared by WSB & Associates, Inc. with reference to the improvement of: 1. Belden Drive NE from 371h Avenue NE to 36th Avenue NE 2. Coolidge Street NE from 37th Avenue NE to 36°i Avenue NE 3. Harding Street NE from 37°1 Avenue NE to 36°' Avenue NE 4. Edward Street NE from 37t1' Avenue NE to 36`h Avenue NE WHEREAS, the report provides information regarding whether the proposed project is necessary, cost effective, and feasible. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of St. Anthony that: 1) The Council will consider the improvement of such streets in accordance with the report at an estimated total cost of the improvement of $1,890,000. 2) WSB & Associates, Inc. is hereby designated as the engineer for this improvement. They shall prepare plans for making such improvement. Adopted this day of 2010. Mayor ATTEST: City Clerk Reviewed for administration: City Manager K:10(626-531AdminlResoLtlionsl2eso(ulion 10-055- decept Feos.doer W 29 Memo To: Mike Mornson — City Manager From: Stacie Kvilvang Date: August 10, 2010 Subject: Development Agreement — Phase III Silver Lake Village Redevelopment Back in 2003, the City and HRA entered into various Development Agreements with third parties to redevelop the Northwest Quadrant in accordance with the Master Plan approved by the City. To date the following developments have been completed: 777 D;eyelo went Square Footage/# .of Units: Develo tw Valuation Phase I WalMart 143,000 Sq/Ft $28.3 Million Phase I Retail 59,000 Sq/Ft Phase I Office 27,000 Sq/Ft Phase I Market Rate Apartments 261 Units $31.7 Million Phase IA Condos 130 Units $31.4 Million Phase IIA Town Homes 26 Units $5.8 Million TOTAL N/A $97.2 Million The total property value of the parcels these developments were placed upon when the TIF district was created back in 2005 was $5.9 million. The new property valuations are $91.3 million greater than before or over a 1,500% increase in property valuation. In addition, the new developments have brought retail and restaurant opportunities to the community, medical offices and various housing opportunities that were not available before. In 2008, the condominium market declined due to oversaturation in the market. Development in the Silver Lake Area was further impacted by the overall economic downturn and inability of people to sell their homes and developers to obtain capital. Due to this, the remaining phases in Silver Lake Village have not moved forward. Apache Redevelopment LLC approached the City to enter into a new development agreement to finish out certain portions of the Silver Lake Redevelopment. These include the following: Parcel New Phase Development Development Valuation Vacant Apache Office Site Phase IIIA 80 to 100 Senior Apt $5.6 to $7 Million -- — ---- JA Cadawallader Office Site --- --- 40 Senior Co -Op $4.8 Million Baker's Square Parking Phase 111111Commercial 5,000 to 10,000 Sq/Ft $4.2 to $5.6 Million Vacant Don's Car Wash Site Fuel Mart and Fuel Mart Car Wash Phase IIIC 80 to 100 Unit Senior Continuum of Care $5.6 to $7 Million TOTAL. N/A N/A $20.2 to $24.4 Million E H L E RS 3060 Centre Pointe Drive Roseville, MN 55113-1105 ---- — Phone: 651-697-8506 LEADERS IN PUBLIC FINANCE Fax: 651-697-8555 skvilvang@ehlers-inc.com 30 Mike Morrison Development Agreement— Phase III Silver Lake Village Redevelopment August 10, 2010 Page 2 They requested an 18 -month timeframe to commence development on the two (2) phases. Based upon the above referenced development program, following is a listing of the proposed business terms for the new Phase III Development Agreement: 1. General a. Parties. The Agreement is between the City, IIRA and Apache Redevelopment LLC, the Master Redeveloper for Phase I and Phase II. The Redeveloper is acting more as a land Redeveloper in hying to find third parties to develop the Phase IIIA site (former Apache Office site which is currently vacant and the 7A Cadwallader site), the Phase IIIB site (former Don's Car Wash site which is currently vacant and the Baker's Square parking sites) and the Phase IIIC site (former Fuel Mart and Fuel Mart Carwash sites). b. Past claimed Defaults. The City/HRA and the Redeveloper will each waive all claims of past defaults and the relationship will be governed by the new Phase III contract going forward. 2. Surviving Provisions of the Phase I Development Agreement a. Below Market Profit Tax Increment Assistance Increase. Following the final cost and profit certification process for the Phase IA condos if the return to the Redeveloper is less than 12% of the Total Development Cost (TDC) the HRA was to provide the Redeveloper a note in a principal amount necessary for them to realize a 12% Profit. For Phase IA, the Redeveloper profit was expected to be $3,192,382. Due to the downturn in the condominium market and economy in general, sales slowed to level that wasn't expected. The TDC for the project rose due to holding costs associated with unsold units. The TDC were approximately $37.6 million. After paying the bank loan and other development related costs, the Redeveloper received no profit and actually has a loss of $635,095. In order to get to their desired 12% profit, the HRA would need to provide them with a subordinate TIF note for $5,080,000. This note is subordinate to the outstanding TIF revenue bonds that were sold for the project. These bonds have a "sinking" provision which means that any unused discount that isn't needed to pay debt service is used for prepayment on the bonds. Since these bonds do not have a call date until February 1, 2014, the first opportunity for the Redeveloper to receive any payment on this subordinate note is 2014, if the City is able to refinance these bonds at better rates. If the City is unable to finance the bonds with better rates, then the Redeveloper's payments will not be made until the bonds are paid in full. Overall, it is estimated at this time that there will only be approximately $980,000 available for payment on this subordinate note, which would only provide the Redeveloper with less than a 1% profit (conservative estimate based upon no inflation). 3. Surviving Provisions of the Phase II Development Agreement a. Shot_ Fall Note. The Redeveloper has finalized Phase IIA (town homes). Under the prior agreement, if the City sold tax-exempt TIF revenue bonds at the request of the Redeveloper and there were insufficient proceeds from this sale to repay the qualified costs, then the Redeveloper would get a subordinate, short fall note. The original PAYGO TIF note was for $937,520. Based upon preliminary sizing for tax-exempt TIF bonds completed in late 2009, it was estimated that the net proceeds would be approximately $610,000. Since the Redeveloper did expend the $937,520, they would get a subordinate TIF note in the amount of $327,520. '['his note would be payable from TIF generated from the town home 31 Mike Morrison Development Agreement — Phase III Silver Lake Village Redevelopment August 10, 2010 Page 3 development that is not needed to pay principle and interest on the tax-exempt revenue bonds (basically unused coverage on an annual basis). Current estimates show that this principle amount would be repaid over the term of the district. 4. Conveyance of Vacant Apache Office Site (North portion of Phase IIIA) a. Conveyance to the City/HRA. Apache Redevelopment LLC will deed this portion of Phase IIIA to the City/HRA for $1.00. They are required to deed the land free and clear of all monetary liens, and subject only to those encumbrances currently listed (prior lien from an architect that did drawings for a Redeveloper that was looking to develop the site). b. Repurchase of the Vacant Apache Office Site (North portion of Phase IIIA). Apache Redevelopment LLC or another third party Redeveloper can purchase this property from the City/HRA for Fair Market Value (FMV) determined by the City (based upon the proposed development) or a lesser amount if the City/HRA deem appropriate. In order for any Redeveloper to purchase the parcel they have to have approved plans by the City/HRA and have proof of financing for the project. If Apache Redevelopment LLC fails to meet the December 31, 2011 commencement of construction date, the rights to purchase this parcel terminate. At this time, it is anticipated that the site will be sold to a senior cooperative housing developer to construct approximately 40 units beginning in the spring/summer of 2011. Apache Redevelopment LLC has received a purchase agreement for the site in the amount of $400,000 and is working with the cooperative developer to finalize the purchase agreement. This purchase price and the corresponding development make this the FMV for the property and these proceeds would be paid to the City for reimbursement on the Fannie Mae loan. It should be noted that it is anticipated that the senior cooperative will only need to utilize 75 to 80 percent of the site. The remaining portion of the site will be made available for sale to the senior apartment developer who will be purchasing the south '/2 of the Phase IIIA property (JA Cadawallader site). The land sale proceeds will be divided between the City and Apache Redevelopment LLC on a prorated basis (based upon square footage of the site). The City's portion will be to reimburse them for the Fannie Mae loan and the Redeveloper's portion will be pay off the bank loan. 5. Phase III Tax Increment a. Use and Amount of Increment: Phase IIIA. All the tax increment generated from Phase IIIA (former Apache Office site which is currently vacant and the JA Cadwallader site) will go to repay the City for payment on the Fannie Mae Loan. It is currently estimated that Phase IIIA will be developed as two separate elements. The first development will be a 40 -unit senior cooperative with development commencing in the first quarter of 2011. A Redeveloper has been identified and Apache Redevelopment LLC, is reviewing the purchase agreement for the site. The second development will consist of 80 to 100 units of senior apartments. Currently no developer or timeline has been identified, but Apache Redevelopment LLC is 32 Mike Morrison Development Agreement — Phase Ill Silver Lake Village Redevelopment August 10, 2010 Page 4 actively meeting and pursuing third party developers. It is currently estimated that the amount of present value tax increment that will be generated from these two (2) developments is approximately $1.7 million (see attached site plan). Phase IHB. The increment generated from Phase IIIB (Baker's Square parking and Don's Car Wash) will be made available to Apache Redevelopment LLC or a third party Redeveloper, dependent upon who develops the site. If there is any increment that is not needed by Apache Redevelopment LLC or a third party to develop the project, the excess amount will go first to the City to reimburse it for repayment of the Fannie Mae loan, second to the City to reimburse it for the five percent administrative costs it has been carrying and next to Apache to reimburse them for redevelopment costs they have not been paid for in Phase I (approximately $2 million). If the repayment to Fannie Mae and the City's administrative costs utilizes some or all the TIP not needed by the development, then Apache Redevelopment LLC will receive a subordinate note to have that amount paid out of TIF from Phase I that isn't needed for the various obligations. Phase II1C. The increment generated from Phase IIIC (Fuel Maim. and Fuel Mart Car Wash) will be made available to a third party developer. If there is any increment that is not needed by the third party to develop the project, the excess amount will go first to the City to reimburse it for repayment of the Fannie Mae loan, second to the City to reimburse it for the five percent administrative costs it has been carrying and next to Apache to reimburse them for redevelopment costs they have not been paid for in Phase I (approximately $2 million). If the repayment to Fannie Mae and the City's administrative costs utilizes some or all the TIF not needed by the development, then Apache Redevelopment LLC will receive a subordinate note to have that amount paid out of TIF from Phase I that isn't needed for the various obligations. 6. Redeveloper Obligations a. Outstanding Consultant Costs. The Redeveloper is required to pay the outstanding consultant costs through April 30, 2010. These costs total $161,877. The Redeveloper will pay the City $15,000 at the time of execution of the Agreement and the remaining $146,877 balance will begin to be paid to the City at the time the Phase TA Revenue bonds are refinanced (anticipated in 2014). The City will receive 50% of the increment not needed to pay debt service on the new bonds, until such time the outstanding consultant costs are paid in full. After that, any increment not needed to pay debt service on the bonds will go to pay the TIF obligation outlined in #2 above. b. moment of Taxes. The Redeveloper is required to pay any unpaid taxes and all future taxes as they become due. Failure to pay taxes in a timely fashion is an event of default and is not subject to a cure period (cause for immediate termination of the Agreement). 33 Mike Mornson Development Agreement — Phase III Silver Lake Village Redevelopment August 10, 2010 Page 5 7. Payment of Special Assessments a. Existing Assessments. Currently there are existing assessment payments due and owing on the Phase IIIA parcels. The Redeveloper is required to become current in their tax payments, including currently due installments assessments. It is anticipated that at the time of sale of one or both portions of Phase IIIA, the outstanding special assessments will be paid in full (currently $59,583.32 for each parcel for a total of approximately $120,000). 8. Development Timeframe a. Commencement of Construction. The Redeveloper has until December 31, 2011 to commence construction on any element in Phase III. The Agreement will automatically terminate on December 31, 2011 as regards Phase III rights on any element not under construction. The termination will not affect TIF payments on Phases IA and IIB as set forth in section 2 9. Reporting Requirements a. Monthly Reports. The Redeveloper agrees to provide the City/HRA with monthly updates on the progress of developing Phase III in a form acceptable to the City/HRA. Failure to provide monthly updates shall be an Event of Default. 10. Events of Default a. Development Dates. Failure to commence construction on any Phase III element by December 31, 2011 is an event of default. If the Redeveloper fails to commence any portion of Phase III, then their right to develop that particular phase terminates and their right to any tax increment for Phase III terminates. Please contact me at 651-697-8500 with any questions. cc: File Phase IIIA Site Plan Sr. Cooperative Sr. 35 ter -- 36 CITY OF ST. ANTHONY RESOLUTION NO. 10-056 RESOLUTION RELATING TO A PHASE III REDEVELOPMENT AGREEMENT BY AND AMONG THE CITY OF SAINT ANTHONY, MINNESOTA, THE HOUSING AND REDEVELOPMENT AUTHORITY OF THE CITY OF SAINT ANTHONY, MINNESOTA, AND APACHE REDEVELOPMENT, LLC (THE "DEVELOPER"). WHEREAS, the City of St. Anthony (the "City") and the St. Anthony Housing and Redevelopment Authority (the "Authority") entered into a Phase I Redevelopment Agreement, dated December 19, 2003, as amended (the "Phase I Agreement"), under which the Developer agreed to construct, among other things, the Commercial Element, Rental Housing Element, Phase IA For Sale Housing Element, and Phase IB For Sale Housing Element; and WHEREAS, the Developer or its assignee, as applicable, satisfied Developer's obligations to construct the Commercial Element, Rental Housing Element and Phase IA Element, and the Authority issued tax increment notes to the Developer or its assignee, as applicable, on the Commercial Element and Phase IA Element and those notes remain outstanding; and WHEREAS, Developer assigned its rights and obligations to construct Phase IB, but Developer's assignee has failed to commence construction on Phase IB and the Developer will commence action to terminate that portion of the assignment relating to Phase IB and has agreed to facilitate development of Phase IB as part of a Phase III Development; and WHEREAS, pursuant to the Phase I Agreement and the Phase II Redevelopment Agreement, dated November 9, 2005, between the City, Authority and Developer (the "Phase II Agreement"), the Developer agreed to construct the Phase IIA Patio Homes Development, the Phase IIB Senior IIousing Development and the Phase IIC Development; and WHEREAS, the Developer completed the Phase IIA Patio Homes Development, but has not commenced construction of Phase IIB Senior Housing Development or the Phase IIC Development in accordance with the default dates in the development timeline in the Phase II Agreement; and WHEREAS, the Parties have agreed to cancel all rights and obligations under the Phase I Agreement and Phase II Agreement related to the Phase IIB Senior Housing Development; and WHEREAS, the Parties have agreed to renegotiate the terms related to the Phase 113 Element and the Phase IIC Development; and WHEREAS, the City borrowed Three Million Three Hundred and Fifty Thousand Dollars ($3,350,000) from Fannie Mae to finance certain costs and expenses incurred in connection with the acquisition of various parcels of land in the Project Area (the "Authority Loan"); and WHERF,AS, the Developer has failed to make payments to the City for the Authority Loan as required under the Mortgage, Assignment of Leases and Rents and Fixture Financing Statement, dated September 10, 2004, and the City and the Developer have negotiated a new plan for the timely repayment of the Authority Loan; and WHEREAS, the Developer has agreed to transfer a portion of Phase IB property to the City and, provided that certain conditions are met, the City has agreed to sell that portion of Phase IB property back to the Developer at a later date; and WHEREAS, the Developer currently owes the City certain funds for reimbursement of City consultant costs under the Phase I Agreement; and WHEREAS, the Parties agreed to waive the events of default under the Phase I Agreement and the Phase II Agreement prior to the date of the Phase III Redevelopment Agreement; and WHEREAS, the Phase III Redevelopment Agreement will identify the remaining obligations of the Parties under the Phase I Agreement and the Phase II Agreement and also outline the rights, responsibilities and obligations of the Parties related to the Phase III Development. NOW, THEREFORE, BE IT RESOLVED, by the City of St. Anthony, Minnesota as follows: That the Mayor and City Manager are authorized to enter into a Phase III Redevelopment Agreement by and among the City of Saint Anthony, Minnesota, the Housing and Redevelopment Authority of the City of Saint Anthony, Minnesota, and Apache Redevelopment, LLC. Adopted this 10th day of August, 2010. City Clerk Review for Administration: Mayor City Manager 37 FUTURE COUNCIL AGENDA ITEMS 8/10/2010 Meeting Date Meeting Type Staff Items/Issues August 24 Regular Planning Commission items from August 17 Cit Manager City Finance Director Proposed 2011 Budget August 31 Special City Council Joint Meeting With ISD #282 School Board August 31 Worksession presenting the tobacco proposed ordinance Amendment to the Housing Code to include of the State Building Code September 14 Regular City Manager Finance Director Setting the 2011 Levy Proclamation KIWan15 Peanut Day Proclamation September 28 Regular Planning Commission items from September 21 Consent Agenda Appointment of Election Judges for the November State General Election October 12 Regular October 26 Regular Planning Commission items from October 16 November s Regular November 23 Regular Planning Commission items from November 16 December 14 Regular Consent Agenda Appoint Parks & Planning Commission Members December 28 Regular Planning Commission items from December 21 ** WORKSESSIONS - 1ST MONDAY OF THE MONTH AS NEEDED August 2010 Monthly Planner rnnteu oy Calenciar Creator Tor vvin(tows on 6141VU I U Monday Tuesday Wednesday ThursdaySunday 1 2 3 4 5 6 7 MN Night to Villagefest Villagefest Villagefest Unite 8 9 10 11 12 13 14 Villagefest City Council Mtg S pm PRIMARY ELECTION 15 16 17 18 19 20 21 Planning Commission Mtg 7 pm 22 23 24 25 26 27 28 City Council Mtg 7 pm 29 30 31 Jul 2010 Sep 2010 Joint Meeting S M T W T F S S M T W T F S with School Board 1 2 3 1 2 3 4 4 5 6 7 8 9 10 5 6 7 8 9 10 11 Worksession following school 11 12 13 14 15 16 17 12 13 14 15 16 17 18 board meeting 18 19 20 21 22 23 24 19 20 21 22 23 24 25 25 26 27 28 29 30 31 26 27 28 29 30 rnnteu oy Calenciar Creator Tor vvin(tows on 6141VU I U September 2010 Monthly Planner Monday Tuesday Wednesday ThursdaySunday 1 2 3 4 Aug 2010 Oct 2010 S M T W T F S S M T W T F S 1 2 3 4 5 6 7 1 2 8 9 10 11 12 13 14 3 4 5 6 7 8 9 15 16 17 18 19 20 2I 10 11 12 13 14 15 16 22 23 24 25 26 27 28 17 18 19 20 21 22 23 29 30 31 24 25 26 27 28 29 30 31 5 6 7 8 9 10 11 HOLIDAY -- Labor Day 12 13 14 15 16 17 18 City Council Mtg 7 pm 19 20 21 22 23 24 25 Planning Commission Mtg 7 pm 26 27 28 29 30 City Council Mtg 7 pm Frinted by Ualendar Creator for Windows on 8/412010 Apr 2010 S M 'I' W '1' F S 1 2 4 P 6 7 8 9 itl 1 I go 14 15 16 17 18 19 ; 0 21 22 23 24 25 26, 28 29 30 S Jan 20TO Feb 2010 F S M 'I' W T F S 6 1 2 3 1 2 3 4 5 6 7 8 9 10 111 13 IA IS 16 17 1820 21 22 23 24 2527 28 29 30 31 29 29 30 31 Apr 2010 S M 'I' W '1' F S 1 2 4 P 6 7 8 9 itl 1 I go 14 15 16 17 18 19 ; 0 21 22 23 24 25 26, 28 29 30 S M Feb 2010 F S M T W 'T F s 6 1 2 3 4 5 6 7 � 10 11 12 13 14 15.. 17 18 1cl 20 21 22 24 25 26 27 28 22 24 25 26 Apr 2010 S M 'I' W '1' F S 1 2 4 P 6 7 8 9 itl 1 I go 14 15 16 17 18 19 ; 0 21 22 23 24 25 26, 28 29 30 S M Mar 2010 F S SMTWTFS F ,l 5 6 7 I R 0 2 3 4 5 6 7 8 t0 11 12 13 14 15 " 3 17 18 19 20 21 22 24 25 26 27 29 29 30 31 Apr 2010 S M 'I' W '1' F S 1 2 4 P 6 7 8 9 itl 1 I go 14 15 16 17 18 19 ; 0 21 22 23 24 25 26, 28 29 30 S M May 2010 T W T F S 2 F ,l 5 6 7 I R 9 q 9 12 13 14 IS 16 17 -1B 19 20 21 22 23 24 23 26 27 28 29 30 31 2010 City Meetings Calendar "Ail dates and times of meeting are subject to change** 12 - City Council. Meeting 19 - Planning Commission 26 - City Council Meeting 8 - Joint Meeting with Parks Commission - Parks Commission Mtg. 9 - City Council Meeting 16 - Planning Commission 23 - City Council Meeting 1 - Worksession 9 - City Council Meeting 16 - Joint Meeting with Planning Commission - Planning Commission Meeting - Joint Meeting with TSD #282 -7pm 23 - City Council Meeting 5 - Work session (tenative) 13 - City Council Meeting 20 - Planning Commission 27 - City Council Meeting 3 - Work session (tenative) 11 - City Council Meeting 18 - Planning Com-nission 25 - City Council Meeting S Jul 2010 Sep 2010 T W 'I' 1= S S M T W T F S 1 1 2 3 4 5 6 7 8 9 10 11 124014 15 16 17 18 19 •. . 21 22 23 24 25 26 qP 28 29 30 31 S Aug 2010 Sep 2010 T W 'I' 1= S S M 'T W 'r F S 1 T 3 4 5 6 7 8 40 11 12 13 14 15 16 lff. 18 19 20 21 22 23 41D 25 26 27 28 29 3040. 29 30 S M Sep 2010 T W 'I' 1= S S M T W 1 2 3 4 5 6 7 8 9 10 11 12 13 1,0 15 16 17 18 19 20 .' 1 22 23 24 25 26 27 2; , 29 30 Jun 2010 7 - Work session (tenative) Duc 2010 S M 'T W 'T' F S 8- City Council Meeting S M '1' W T F S 1 2 3 4 5 14 - Parks Commission 1 2 3 4 6 ❑ 9 10 II 12 .4 fa 7 8 9 10 11 13 lT 16 17 18 T 9 15 - Planning Cominlssion 12 13 4,or 15 16 17 18 20 21. 0 23 24 25 26 22 - City Council Meeting I y '.() 21 22 23 24 25 27 28 ?9 34}29 joint Meeting NP# 20 2"7 i ' 29 30 31 cancelled 13 - City Council Meeting 20 - Planning Commission 27 - City Council Meeting 2 - Work session (tenative) 10 - City Council Meeting 17 - Planning Commission 24 - City Council Meeting 31- Joint Meeting I5D#282 13 - Parks Commission 14 - City Council Meeting 21 - Planning Conunission 28 - City Council Meeting 4 - Work session (tenative) 12 - City Council Meeting 19 - Planning Commission 26 - City Council Meeting 1 - Work session (tenative) 9 - City Council Meeting 16 - Planning Commission 23 - City Council Meeting 30 - Joint Meeting ISD#282 6 - Work session (tenative) 13 - Parks Commission 14 - City Council Meeting 21 - Planning Commission 28 - City Council Meeting Oct 2010 S M T W T 1= S 1 2 3 4 1 2 3 E]5 6 7 R 9 10 1140 13 14 15 16 17 IS 1,9 20 21 22 23 24 254627 28 29 30 31 Jun 2010 7 - Work session (tenative) Duc 2010 S M 'T W 'T' F S 8- City Council Meeting S M '1' W T F S 1 2 3 4 5 14 - Parks Commission 1 2 3 4 6 ❑ 9 10 II 12 .4 fa 7 8 9 10 11 13 lT 16 17 18 T 9 15 - Planning Cominlssion 12 13 4,or 15 16 17 18 20 21. 0 23 24 25 26 22 - City Council Meeting I y '.() 21 22 23 24 25 27 28 ?9 34}29 joint Meeting NP# 20 2"7 i ' 29 30 31 cancelled 13 - City Council Meeting 20 - Planning Commission 27 - City Council Meeting 2 - Work session (tenative) 10 - City Council Meeting 17 - Planning Commission 24 - City Council Meeting 31- Joint Meeting I5D#282 13 - Parks Commission 14 - City Council Meeting 21 - Planning Conunission 28 - City Council Meeting 4 - Work session (tenative) 12 - City Council Meeting 19 - Planning Commission 26 - City Council Meeting 1 - Work session (tenative) 9 - City Council Meeting 16 - Planning Commission 23 - City Council Meeting 30 - Joint Meeting ISD#282 6 - Work session (tenative) 13 - Parks Commission 14 - City Council Meeting 21 - Planning Commission 28 - City Council Meeting Nov 2.010 S M 't' W T 1: S 1 2 3 4 5 6 7 , 10 11 12 13 14 15 t 17 IS 19 20 21 22 24 25 26 27 28 29 .ap Jun 2010 7 - Work session (tenative) Duc 2010 S M 'T W 'T' F S 8- City Council Meeting S M '1' W T F S 1 2 3 4 5 14 - Parks Commission 1 2 3 4 6 ❑ 9 10 II 12 .4 fa 7 8 9 10 11 13 lT 16 17 18 T 9 15 - Planning Cominlssion 12 13 4,or 15 16 17 18 20 21. 0 23 24 25 26 22 - City Council Meeting I y '.() 21 22 23 24 25 27 28 ?9 34}29 joint Meeting NP# 20 2"7 i ' 29 30 31 cancelled 13 - City Council Meeting 20 - Planning Commission 27 - City Council Meeting 2 - Work session (tenative) 10 - City Council Meeting 17 - Planning Commission 24 - City Council Meeting 31- Joint Meeting I5D#282 13 - Parks Commission 14 - City Council Meeting 21 - Planning Conunission 28 - City Council Meeting 4 - Work session (tenative) 12 - City Council Meeting 19 - Planning Commission 26 - City Council Meeting 1 - Work session (tenative) 9 - City Council Meeting 16 - Planning Commission 23 - City Council Meeting 30 - Joint Meeting ISD#282 6 - Work session (tenative) 13 - Parks Commission 14 - City Council Meeting 21 - Planning Commission 28 - City Council Meeting HOUSING AND REDEVELOPMENT AUTHORITY AGENDA CITY OF ST. ANTHONY VILLAGE August 10, 2010 Call to Order. Roll Call. I. Approval of August 10, 2010, 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 July 27, 2010, H.R.A. Minutes. (pp. 1-2) III. Public Hearings. IV. General Policy of Business of the H.R.A. A. Resolution 10-006; Resolution Relating to Phase III Redevelopment Agreement By and Among the City of St. Anthony, ,Minnesota, The Housing and Redevelopment Authority of the City of St. Anthony, Minnesota and Apache Redevelopment, LLC. ("The Developer") Stacie K vilvang, Ehlers & Associates, presenting. (pp. 3 —11) V. Staff Reports. VI. H.R.A. Commissioner Comments. VII. Information and Announcements. VIII. Adjournment. FACoLimiI Meetings\2010\08102010\HRA agendapg#.doc 1 1 CITY OF ST. ANTHONY 2 HOUSING AND REDEVELOPMENT AUTHORITY MEETING 3 JULY 27, 2010 4 5 CALL TO ORDER. 6 Chair Faust called the meeting to order at 8:10 p.m. 7 8 ROLL CALL. 9 Commissioners present: Chair Faust; Commissioners Gray, Jenson, Roth, and Stille. 10 Commissioners absent: None. 11 Also present: Executive Director Michael Mornson. 12 13 14 I. APPROVAL OF JULY 27, 2010 H.R.A. AGENDA. 15 16 Motion by Commissioner Gray, seconded by Commissioner Stille, to approve the July 27, 2010 17 Housing and Redevelopment Authority Agenda as presented. 18 19 Motion carried unauimously. 20 21 II. CONSENT AGENDA. 22 23 Motion by Commissioner Roth, seconded by Commissioner Gray, to approve the Consent 24 Agenda, which consisted of: 25 26 A. H.R.A. Meeting Minutes of June 22,2010; and 27 B. Claims. 28 29 Motion carried unanimously. 30 31 HL PUBLIC HEARINGS. 32 33 None. 34 35 IV. GENERAL, POLICY BUSINESS OF THE H.R.A. 36 37 None.. 38 39 V. STAFF REPORTS. 40 41 None. 42 43 VI. H.R.A. COMMISSIONER COMMENTS. 4.4. 45 None. 46 47 VII. INFORMATION AND ANNOUNCEMENTS. 48 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Housing and Redevelopment Authority Meeting Minutes July 27, 2010 Page 2 None. VIII. ADJOURNMENT. Chair Faust adjourned the meeting at 8:11 p.m. Respectfully submitted, Barbara Hughes TimeSaver Off Site Secretarial, Inc. ATTEST: City Clerk Chair 2 3 Memo To: Mike Morrison — Executive Director From: Stacie Kvilvang Date: August 10, 2010 Subject: Development Agreement — Phase III Silver Lake Village Redevelopment Back in 2003, the City and HRA entered into various Development Agreements with third parties to redevelop the Northwest Quadrant in accordance with the Master Plan approved by the City. To date the following developments have been completed: Develo" Ment S `uare FogtO' e/# of Units Develo merit Valuation Phase I WalMart 143,000 Sq/rt $28.3 Million Phase I Retail 59,000 Sq/Ft Phase I Office 27,000 Sq/Ft Phase I Market Rate Apartments 261 Units $31.7 Million Phase IA Condos 130 Units $31.4 Million Phase IIA Town Homes 26 Units $5.8 Million TOTAL N/A $97.2 Million The total property value of the parcels these developments were placed upon when the TIF district was created back in 2005 was $5.9 million. The new property valuations are $91.3 million greater than before or over a 1,500% increase in property valuation. In addition, the new developments have brought retail and restaurant opportunities to the community, medical offices and various housing opportunities that were not available before. In 2008, the condominium market declined due to oversaturation in the market. Development in the Silver Lake Area was further impacted by the overall economic downturn and inability of people to sell their homes and developers to obtain capital. Due to this, the remaining phases in Silver Lake Village have not moved forward. Apache Redevelopment LLC approached the City to enter into a new development agreement to finish out certain portions of the Silver Lake Redevelopment. These include the following: Parcel New Phase Development Development Valuation Vacant Apache OfficeSite 1 hal IIIA 80 to 100 Senior Apt $5.6 to $7 Million JA Cadawallader Office Site 40 Senior Co -Op $4.8 Million Baker's Square Parking Phase IIIB 5,000 to 10,000 Sq/Ft $4.2 to $5.6 Million Vacant Dons Car Wash Site Commercial Fuel Mart and Fuel Mart Car Phase IIIC 80 to 100 Unit Senior $5.6 to $7 Million Wash Continuum of Care TOTAL N/A N/A $20.2 to $24.4 Million E H L E RS 3060 Centre Pointe Drive Roseville, MN 55113-1105 LEADERS IN PUBLIC FINANCE Phone: 651-697-8506 Fax: 651-697-8555 skviIvang@ehlers-ino.com 0 Mike Morrison Development Agreement — Phase III Silver Lake Village Redevelopment August 10, 2010 Page 2 They requested an 18 -month timeframe to commence development on the two (2) phases. Based upon the above referenced development program, following is a listing of the proposed business terms for the new Phase III Development Agreement: 1. General a. Parties. The Agreement is between the City, HRA and Apache Redevelopment LLC, the Master Redeveloper for Phase I and Phase II. The Redeveloper is acting more as a land Redeveloper in hying to find third parties to develop the Phase IIIA site (former Apache Office site which is currently vacant and the JA Cadwallader site), the Phase IIIB site (former Don's Car Wash site which is currently vacant and the Baker's Square parking sites) and the Phase IIIC site (former Fuel Mart and Fuel Mart Carwash sites). b. Past claimed Defaults. The City/HRA and the Redeveloper will each waive all claims of past defaults and the relationship will be governed by the new Phase III contract going forward. 2. Surviving Provisions of the Phase I Development Agreement a. Below Market Profit Tax Increment Assistance Increase. Following the final cost and profit certification process for the Phase IA condos if the return to the Redeveloper is less than 12% of the Total Development Cost (TDC) the IIRA was to provide the Redeveloper a note in a principal amount necessary for them to realize a 12% Profit. For Phase IA, the Redeveloper profit was expected to be $3,192,382. Due to the downturn in the condominium market and economy in general, sales slowed to level that wasn't expected. The TDC for the project rose due to holding costs associated with unsold units. The TDC were approximately $37.6 million. After paying the bank loan and other development related costs, the Redeveloper received no profit and actually has a loss of $635,095. In order to get to their desired 12% profit, the HRA would need to provide them with a subordinate TIF note for $5,080,000. This note is subordinate to the outstanding TIF revenue bonds that were sold for the project. These bonds have a "sinking" provision which means that any unused discount that isn't needed to pay debt service is used for prepayment on the bonds. Since these bonds do not have a call date until February 1, 2014, the first opportunity for the Redeveloper to receive any payment on this subordinate note is 2014, if the City is able to refinance these bonds at better rates. If the City is unable to finance the bonds with better rates, then the Redeveloper's payments will not be made until the bonds are paid in full. Overall, it is estimated at this time that there will only be approximately $980,000 available for payment on this subordinate note, which would only provide the Redeveloper with less than a 1% profit (conservative estimate based upon no inflation). Surviving Provisions of the Phase II Development Agreement a. Short fall Note. The Redeveloper has finalized Phase IIA (town homes). Under the prior agreement, if the City sold tax-exempt TIF revenue bonds at the request of the Redeveloper and there were insufficient proceeds from this sale to repay the qualified costs, then the Redeveloper would get a subordinate, short fall note. The original PAYGO TIF note was for $937,520. Based upon preliminary sizing for tax-exempt TIF bonds completed in late 2009, it was estimated that the net proceeds would be approximately $610,000. Since the Redeveloper did expend the $937,520, they would get a subordinate TIF note in the amount of $327,520. This note would be payable from TIi� generated from the town home 5 Mike Morrison Development Agreement — Phase III Silver Lake Village Redevelopment August 10, 2010 Page 3 development that is not needed to pay principle and interest on the tax-exempt revenue bonds (basically unused coverage on an annual basis). Current estimates show that this principle amount would be repaid over the term of the district. 4. Conveyance of Vacant Apache Office Site (North portion of Phase IIIA) a. Conveyance to the City/IIRA. Apache Redevelopment LLC will deed this portion of Phase IIIA to the City/HRA for $1.00. They are required to deed the land free and clear of all monetary liens, and subject only to those encumbrances currently listed (prior lien from an architect that did drawings for a Redeveloper that was looking to develop the site). b. Repurchase of the Vacant Apache Office Site (North portion of Phase IIIA)_ Apache Redevelopment LLC or another third party Redeveloper can purchase this property from the City/HRA for Fair Market Value (FMV) determined by the City (based upon the proposed development) or a lesser amount if the City/HRA deem appropriate. In order for any Redeveloper to purchase the parcel they have to have approved plans by the City/HRA and have proof of financing for the project. If Apache Redevelopment LLC fails to meet the December 31, 2011 commencement of construction date, the rights to purchase this parcel terminate. At this time, it is anticipated that the site will be sold to a senior cooperative housing developer to construct approximately 40 units beginning in the spring/summer of 2011. Apache Redevelopment LLC has received a purchase agreement for the site in the amount of $400,000 and is working with the cooperative developer to finalize the purchase agreement. This purchase price and the corresponding development make this the FMV for the property and these proceeds would be paid to the City for reimbursement on the Fannie Mae loan. It should be noted that it is anticipated that the senior cooperative will only need to utilize 75 to 80 percent of the site. The remaining portion of the site will be made available for sale to the senior apartment developer who will be purchasing the south '/2 of the Phase IIIA property (JA Cadawallader site). The land sale proceeds will be divided between the City and Apache Redevelopment LLC on a prorated basis (based upon square footage of the site). The City's portion will be to reimburse them for the Fannie Mae loan and the Redeveloper's portion will be pay off the bank loan. 5. Phase III T ax Increment a. Use and Amount of Increment: Phase HIA. All the tax increment generated from Phase IIIA (former Apache Office site which is currently vacant and the JA Cadwallader site) will go to repay the City for payment on the Fannie Mae Loan. It is currently estimated that Phase IIIA will be developed as two separate elements. The 'first development will be a 40 -unit senior cooperative with development commencing in the first quarter of 2011. A Redeveloper has been identified and Apache Redevelopment LLC, is reviewing the purchase agreement for the site. The second development will consist of 80 to 100 units of senior apartments. Currently no developer or timeline has been identified, but Apache Redevelopment LLC is M Mike Morrison Development Agreement — Phase III Silver Lake Village Redevelopment August 10, 2010 Page 4 actively meeting and pursuing third party developers. It is currently estimated that the amount of present value tax increment that will be generated from these two (2) developments is approximately $1.7 million (see attached site plan). Phase IHB. The increment generated from Phase IIIB (Baker's Square parking and Don's Car Wash) will be made available to Apache Redevelopment LLC or a third party Redeveloper, dependent upon who develops the site. If there is any increment that is not needed by Apache Redevelopment LLC or a third party to develop the project, the excess amount will go first to the City to reimburse it for repayment of the Fannie Mae loan, second to the City to reimburse it for the five percent administrative costs it has been carrying and next to Apache to reimburse them for redevelopment costs they have not been paid form Phase I (approximately $2 million). If the repayment to Fannie Mae and the City's administrative costs utilizes some or all the TIF not needed by the development, then Apache Redevelopment LLC will receive a subordinate note to have that amount paid out of TIF from Phase I that isn't needed for the various obligations. Phase IIIC. The increment generated from Phase IIIC (Fuel Mart and Fuel Mart Car Wash) will be made available to a third party developer. If there is any increment that is not needed by the third party to develop the project, the excess amount will go first to the City to reimburse it for repayment of the Fannie Mae loan, second to the City to reimburse it for the five percent administrative costs it has been carrying and next to Apache to reimburse them for redevelopment costs they have not been paid for in Phase I (approximately $2 million). If the repayment to Fannie Mae and the City's administrative costs utilizes some or all the TIF not needed by the development, then Apache Redevelopment LLC will receive a subordinate note to have that amount paid out of TIF from Phase I that isn't needed for the various obligations. 6. Redeveloper Obligations a. Outstanding Consultant Costs. The Redeveloper is required to pay the outstanding consultant costs through April 30, 2010. 'These costs total $161,877. The Redeveloper will pay the City $15,000 at the time of execution of the Agreement and the remaining $146,877 balance will begin to be paid to the City at the time the Phase IA Revenue bonds are refinanced (anticipated in 2014). The City will receive 50% of the increment not needed to pay debt service on the new bonds, until such time the outstanding consultant costs are paid in full. After that, any increment not needed to pay debt service on the bonds will go to pay the "rIF obligation outlined in #2 above. b. Payment of Taxes. The Redeveloper is required to pay any unpaid taxes and all future taxes as they become due. Failure to pay taxes in a timely fashion is an event of default and is not subject to a cure period (cause for immediate termination of the Agreement). Mike Mornson Development Agreement — Phase III Silver Lake Village Redevelopment August 10, 2010 Page 5 7. Payment of Special Assessments a. Existing Assessments. Currently there are existing assessment payments due and owing on the Phase IIIA parcels. The Redeveloper is required to become current in their tax payments, including currently due installments assessments. It is anticipated that at the time of sale of one or both portions of Phase IIIA, the outstanding special assessments will be paid in full (currently $59,583.32 for each parcel for a total of approximately $120,000). 8. Development Timeframe a. Commencement of Construction. The Redeveloper has until December 31, 2011 to commence construction on any element in Phase III. The Agreement will automatically terminate on December 31, 2011 as regards Phase III rights on any element not under construction. The termination will not affect TIF payments on Phases IA and IIB as set forth in section 2 9. Reporting Requirements a. Monthly Reports. The Redeveloper agrees to provide the City/HRA with monthly updates on the progress of developing Phase III in a form acceptable to the City/HRA. Failure to provide monthly updates shall be an Event of Default. 10. Events of Default a. Development Dates. Failure to commence construction on any Phase III element by December 31, 2011 is an event of default. If the Redeveloper fails to commence any portion of Phase III, then their right to develop that particular phase terminates and their right to any tax increment for Phase III terminates. Please contact me at 651-697-8500 with any questions. cc: File i 1 V 1145 1 •. �r Y {1 d Nr i °i. Vim! l: .A 7 � A � :... .. - � u i Yi1 �_ YY� •. �, 0 Sr. Cooperative Phase IIIA Site Plan Sr. HOUSING AND REDEVELOPMENT AUTHORITY OF THE CITY OF ST. ANTHONY RESOLUTION NO. 10-006 RESOLUTION RELATING TO A PHASE III REDEVELOPMENT AGREEMENT BY AND AMONG THE CITY OF SAINT ANTHONY, MINNESOTA, THE HOUSING AND REDEVELOPMENT AUTHORITY OF THE CITY OF SAINT ANTHONY, MINNESOTA, AND APACHE REDEVELOPMENT, LLC (THE "DEVELOPER"). WHEREAS, the City of St. Anthony (the "City") and the St. Anthony Housing and Redevelopment Authority (the "Authority") entered into a Phase I Redevelopment Agreement, dated December 19, 2003, as amended (the "Phase I Agreement"), under which the Developer agreed to construct, among other things, the Commercial Element, Rental Housing Element, Phase IA For Sale housing Element, and Phase IE For Sale Housing Element; and WHEREAS, the Developer or its assignee, as applicable, satisfied Developer's obligations to construct the Commercial Element, Rental Housing Element and Phase IA Element, and the Authority issued tax increment notes to the Developer or its assignee, as applicable, on the Commercial Element and Phase IA Element and those notes remain outstanding; and WHEREAS, Developer assigned its rights and obligations to construct Phase IB, but Developer's assignee has failed to commence construction on Phase 113 and the Developer will commence action to terminate that portion of the assignment relating to Phase IB and has agreed to facilitate development of Phase IE as part of a Phase III Development; and WIIEREAS, pursuant to the Phase I Agreement and the Phase II Redevelopment Agreement, dated November 9, 2005, between the City, Authority and Developer (the "Phase II Agreement"), the Developer agreed to construct the Phase IIA Patio Homes Development, the Phase IIB Senior Housing Development and the Phase IIC Development; and WHEREAS, the Developer completed the Phase IIA Patio Homes Development, but has not commenced construction of Phase IIB Senior Housing Development or the Phase IIC Development in accordance with the default dates in the development timeline in the Phase II Agreement; and WHEREAS, the Parties have agreed to cancel all rights and obligations under the Phase I Agreement and Phase II Agreement related to the Phase IIB Senior Housing Development; and WHEREAS, the Parties have agreed to renegotiate the terms related to the Phase IB Element and the Phase IIC Development; and WHEREAS, the City borrowed Three Million Three Hundred and Fifty Thousand Dollars ($3,350,000) from Fannie Mae to finance certain costs and expenses incurred in connection with the acquisition of various parcels of land in the Project Area (the "Authority Loan"); and WHEREAS, the Developer has failed to make payments to the City for the Authority Loan as required under the Mortgage, Assignment of Leases and Rents and Fixture Financing Statement, dated September 10, 2004, and the City and the Developer have negotiated a new plan for the timely repayment of the Authority Loan; and WHEREAS, the Developer has agreed to transfer a portion of Phase IB property to the City and, provided that certain conditions are met, the City has agreed to sell that portion of Phase IB property back to the Developer at a later date; and WIIEREAS, the Developer currently owes the City certain funds for reimbursement of City consultant costs under the Phase f Agreement; and WHEREAS, the Parties agreed to waive the events of default under the Phase I Agreement and the Phase It Agreement prior to the date of the Phase III Redevelopment Agreement; and WHEREAS, the Phase III Redevelopment Agreement will identify the remaining obligations of the Parties under the Phase I Agreement and the Phase II Agreement and also outline the rights, responsibilities and obligations of the Parties related to the Phase III Development. NOW, TI-IEREPORE, BE IT RESOLVED, by the St. Anthony Housing and Redevelopment Authority as follows: That the Chair and Executive Director are authorized to enter into a Phase III Redevelopment Agreement by and among the City of Saint Anthony, Minnesota, the Housing and Redevelopment Authority of the City of Saint Anthony, Minnesota, and Apache Redevelopment, LLC. Adopted the 10`h day of Aust, 2010 Chair Executive Director 11