HomeMy WebLinkAbout2005.06.20 EDA Packet AGENDA
CITY OF HUGO ECONOMIC DEVELOPMENT AUTHORIZTY
MONDAY, JUNE 209 2005 — 8:30 AM
HUGO CITY HALL
8:30 am 1. Call to Order
8:31 am 2. Roll Call
8:32 am 3. Approval of Minutes
• EDA Meeting of May 16,2005
8:35 am 4. Discussion of RFP's for Lot 1,Block 1, BEIP 511
Addition
9:00 am 5. Discussion of Rink-Tec Property
9:20 am 6. Discussion of Egg Lake Redevelopment Plan
• Senior Housing
• Powell Residence
• Old Antique Store
9:45 am 7. Discussion of Downtown Redevelopment
• Potential Redevelopment Ideas
• Design Guidelines
• Market Study
• TIF Subcommittee
10:15 am 8. Update of East Metro Economic Development Forum
10:30 am 9. Adjournment
3. EDA MEETING OF MAY 16, 2005
City staff recommends the Board approve the minutes for the May 16, 2005
meeting as presented.
4. DISCUSSION OF RFP'S FOR LOT1,BLOCK 1,BEIP 5TH ADDITION
With direction from the EDA and City Council, staff prepared an RFP and sent it
to over 50 developers,posted it on the City's website,the League of Minnesota
Cities website, and listed it on the Minnesota Commercial Realtors Property
Database. The staff has received numerous promising phone calls in response to
the RFP,however,by the May 27, 2005 deadline, staff had only received two
formal responses. The BEIP subcommittee(Granger, Skarich, Klein)has not
reviewed the information so far. Staff will present the information to the EDA,
and request direction for how to proceed with the sale of the property.
5. DISCUSSION OF RINK-TEC PROPERTY
The so-called "Rink-Tec"property is Lot 3,Block 1, of the Bald Eagle Industrial
consisting of approximately one acre of land. A company known as"Rink-Tec"
bought the property from the City,however the contract required that that
building be under construction by May 30, 2004. At the request of Rink-Tec, the
City Council extended the construction date for one year, which has now expired
as of May 30, 2005. At the June 6, 2005 City Council meeting, the Council
directed the staff to buy the property back from Rink-Tec, a process which is
currently under way. The staff has been in contact with two businesses who have
expressed interest in the property. Staff will present information related to the
two businesses to the EDA. Staff requests direction from the EDA for proceeding
with the re-sale of this property.
6. DISCUSSION OF EGG LAKE REDEVELOPMENT PLAN
The City staff will provide the EDA with an update of progress toward the
purchase of the Powell Residence and the old antique store. In addition, the staff
has been working with three companies who are interested in constructing senior
housing as a part of the Egg Lake Plan. The staff will present this information to
the EDA.
7. DISCUSSION OF DOWNTOWN REDEVELOPMENT
The staff has had recent discussions with key property owners in the downtown
area and is ready to proceed with direction from the EDA to initiate a TIF District
for areas near the downtown. The staff will update the EDA with the latest
information related to the Downtown Design Guidelines. The staff also is
prepared to initiate a Market Study for the downtown. In addition the staff will
present redevelopment ideas to the EDA for input.
8. UPDATE ON EAST METRO ECONOMIC DEVELOPMENT FORUM
On June 16, 2005, City Administrator Mike Ericson, CD Director Bryan Bear
EDA members, Klein, Miron, Bever and Arcand as well as Council members and
HBA members attended the forum at the Machine Shed Restaurant in Lake Elmo.
Staff and EDA members will share information from the meeting.
MINUTES FOR THE EDA MEETING OF MAY 16, 2005
EDA President Fran Miron called the Economic Development Authority to order at 8:30 am.
PRESENT: Miron, Arcand, Granger, Klein, Charpentier, Skarich, and Bever
City Administrator Mike Ericson and CD Director Bryan Bear
APPROVAL OF MINUTES
Granger made motion, Klein seconded, to approve the minutes from the EDA meeting of April
18, 2005 as presented.
All aye. Motion Carried.
GUEST SPEAKER(DAVE DOBOSENSKI
Dave Dobosenski is the Chief Operating Officer for Fairview Lakes Hospital in Wyoming,
MN. He presented the EDA with their plans to open a four-doctor clinic in the Victor Gardens
Commercial Center. They will lease space and plan to open in November 2005. Long-term
plans of the clinic are to buy land and build a 20,000 sq ft facility. EDA members expressed
their strong support to Fairview on their decision to locate a clinic in Hugo.
MAY 5,2005 TIF SUBCOMMITTEE REPORT
CD Director Bryan Bear reported that the committee held its first meeting on May 5, 2005.
The downtown plan was reviewed and members agreed that the southwest comer of TH61 and
CSAH 8 should be office condominiums.
Bever made motion, Arcand seconded, to recommend this to the City Council for approval of
the final draft.
All aye. Motion Carried.
The committee also laid out a proposed tax increment financing district in downtown Hugo.
The geographic area is defined as along TH61 south from 147`t' Street to 140th Street, including
the old End Zone property, and adjacent parcels south of it on the east side.
Klein made motion, Granger seconded, to schedule an EDA joint meeting with the Council and
Planning Commission on Friday, May 20,2005 at 8:30 am,to review the downtown design
standards.
All aye. Motion Carried.
Miron made motion, Granger seconded, to request Council to hold a workshop with City
Attorney and LMC officials regarding the Open Meeting Law.
All aye. Motion Carried.
EDA Meeting of May 16, 2005
Page 2
UPDATE OF RFP ON CITY LOT IN BEIP 5TH ADDITION
CD Director Bryan Bear reported that the deadline for receipt of RFP's is May 27, 2005. More
than 50 proposals were sent out.
UPDATE OF FUTURE EDA/HBA ACTIVITIES (KIDZ & BIZ FEST)
City Administrator Mike Ericson reported that the event was very successful. Approximately
260 children were in attendance with more than 100 parents. Five EDA members were in
attendance to work and support the City's connection with local business.
DISCUSSION OF MARKETING PLAN
CD Director Bryan Bear presented Theresa Charpentier's outline for a marketing plan that she,
Bryan, Phil Klein, and former intern Tom Denaway had previously met to develop ideas.
Work will continue on the plan.
DISCUSSION OF WEB SITE UPDATES
Bryan reported that City staff will work on updating the EDA section of the City's web site.
Charpentier made motion, Klein seconded, to create a web site committee on which Jan
Arcand, Phil Klein, Theresa Charpentier, Mike Ericson, and Bryan Bear will serve.
All aye. Motion Carried.
EAST METRO ECONOMIC DEVELOPMENT FORUM ON JUNE 16, 2005
City Administrator Mike Ericson reminded EDA Commissioners of the forum which a number
of EDA members will be attending.
Granger made motion, Charpentier seconded, to invite members from the Hugo Business
Association to attend.
All aye. Motion Carried.
ADJOURNMENT
Granger made motion, Arcand seconded, to adjourn at 10:56 am.
All aye. Motion Carried.
Michael A. Ericson
City Administrator
CITY OF HUGO
COMMUNICATIONS LIST
JUNE 2005
Economic Development Authority
Name Term Expires Fax Number Home Phone
Address E-Mail Address Office Phone
Fran Miron, President
15250 Homestead Ave. 12-31-2006
Hugo, MN 55038 (651)429-5961
Michael E. Granger (651)426-8171(home)
12715 Ethan Ave. N 12-31-2008 (651)653-4631 (651)653-4648(work)
White Bear Lake, MN 55110 megranger usinternet.com (612)805-5751 (cell)
Jan Arcand, Treasurer
1850 Cedar Avenue, € ,12-31-2006 (651)653-6402 (651)429-2930
White Bear Lake, MN 55110
&'�'��,ii g,i1 - 2 •+ �.� ,.Vis.,' ��:.r:.,v� /�'GxG9. ,.. ...,, ... .::mss.•'.
Jim Bever (651)426-2240 (home)
7131 132nd St. N 12-31-2008 (651)426-5809 (651)307-3578(cell)
White Bear Lake, MN 55110
Theresa Charpentier (651)426-6725(home)
5925 Freeland Court North 12-31-2007 Theresa.Charpentier(a)toro.com (952)887-8814(office)
Hugo, MN 55038 (651)245-1193(cell)
Phil Klein, Vice President
6760165 th St. 12-31-2009 philklein7(a)aol.com (651)653-7152
Hugo, MN 55038
Nick Skarich
6265 Egg Lake Rd. N 12-31-2010 (612) (651)429-3463
Hugo, MN 55038 nskarich(a�northianandsecuecurities.com
CITY STAFF: Community Development Director Bryan Bear— Executive Director
City Administrator Mike Ericson — Secretary
Finance Director Ron Otkin —Assistant Treasurer
\windows\TEMP\EDA Communication List.doc
Page 1 of 1
Mike Ericson
From: Theresa Charpentier[Theresa.Charpentier@toro.com]
Sent: Wednesday, June 15, 2005 3:21 PM
To: phillip.klein@northstarfinancial.com; nskarich@northlandsecurities.com;
megranger@usinternet.com; bbear@cf.hugo.mn.us; Mike Ericson
Subject: Update
I just wanted to give you all an update that I will not be able to attend the event this Thursday. I have started a
new position at Toro this week in Commercial Customer Care as the new Technical Services, Customer Care
Manager and I just can't break away. I thought that I might be able to and it is not happening.
The EDA meeting scheduled next week will be a problem due to a product training session that I must attend.
I'll follow up with Bryan next week for an update. In addition, I have found my FrontPage training disc and will
plan on reviewing this next week so that we can move forward with our web site objectives.
My new email address is above.
My office line is 952.887.8814. Cell: 651.245.1193.
Thank you.
Theresa Charpentier
6/15/05
I believe that the first test of a truly great man is his humility. I do not
mean by humility, doubt of his own powers. But really great men have
a curious feeling that the greatness is not in them, but through them.
And they see something divine in every other man.
—John Ruskin
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May 24, 2005
Bryan Bear
Community Development Director
City of Hugo
14669 Fitzgerald Avenue North
Hugo, MN 55038
Dear Bryan:
Thank you for meeting with me and discussing our service business, Oneka Pet Resort
in the Bald Eagle Industrial Park.
We would be interested in the property currently owned by Rink-Tec, should it become
available. Attached is a drawing of a space plan for a 6,400 square foot building that
could be constructed on that site, which would be owned and operated by C.G. LaBarre
L.L.C., C.G. Pet Resort Inc. dba. Oneka Pet Resort. Oneka Pet Resort would employ
22 Pet Technicians, a full-time Manager, an Assistant Manager, my wife Cindy and
myself.
Attached is some general information, including a "Mission Statement", "Corporate
Structure", and "Management Team". I understand that the property is Zone 13 and
would need to be amended to include our type of business. Construction could start on
the building once the land was purchased, zoning change was complete and building
was approved.
Please let me know if the property is available and if our service business would be
accepted in this location.
Sincerely,
�-�-y a c�
Guy L. LaBarre
GLL/mt
Enclosure
Mission Statement: The mission of Oneka Pet Resort is to provide
a safe, healthy and fun environment where pets and family stress is
kept to a minimum while pets and their families are apart.
Corporate Structure
Principles: Cynthia J. LaBarre
Guy L. LaBarre
Joint ownership
C.G.LaBarre LLC. would be setup to own the real property.
C.G. Pet Resort Inc. dba Oneka Pet Resort would be setup to operate the
boarding facility.
Management Team/Operations
Cynthia J. LaBarre, President C.G. Pet Resort Inc., C.G.LaBarre LLC. Cindy is
the on-site administrator and contact for pet owners. She is in the process of
completing ABKA (America Boarding Kennels Association) designation "Certified
Pet Care Technician". Cindy has banking, bookkeeping, collections and
customer service experience. She has lived and worked in the community all of
her career and raised a son, age 26 and daughter, age 24, both completing their
last semester in college. Quarterly salary will be based on business
performance.
Guy L. LaBarre, Treasurer C.G. Pet Resort Inc., C.G.LaBarre LLC. Upon
retirement Guy shall be on site for customer contact and marketing events. He is
a Commercial Real Estate Broker licensed in Minnesota, has an RPA
designation (Real Property Administrator) from Building Owner Managers
Association, B.S. Bachelor of Social Science secondary education University of
Wisconsin, has two golden retrievers trained for hunting, and has provided
training at Northland Kennels. Currently President of Minnesota Street
Associates, Inc., a property management company for 956,000 square foot office
complex in St. Paul, Minnesota with approximately 80 employees. He has
attended ABKA seminars, "How to Establish and Operate a Boarding Kennel",
"Kennel Building Design", "How to Get Financing", "How to Establish and
Operate a Dog Day-Care", and "How to Establish and Operate an All Suites
Facility". Quarterly salary will be based on business performance.
Nikki L. LaBarre, Management Trainee. Upon completion of her teaching degree
from St. Catherian College Nikki will supplement on-site management and is in
the process of completing ABKA (American Boarding Kennel Association)
designation "Certified Pet Care Technician". Hourly wage —paid on hours.
Summary
Corporate Managers —Salary/unless otherwise designated shall be responsible
for all corporate compliance, including accounting, finance, regulatory (Federal,
State, local) personnel policies, payroll, personnel records, emergency
procedures. Will assume operation manager duties, depending on client
occupancy.
Operation Manager (Salary)
Shall be responsible for day-to- day operations.
➢ Scheduling of Pet Technicians.
➢ Job descriptions for each Pet Technician.
➢ Training of all Pet Technicians.
➢ Ensure pets care, health, safety and minimize stress.
➢ Billing procedures followed by staff.
➢ Opening/closing.
➢ Communications between Pet Resort, Pet, Pet owners and family.
➢ Report to Corporate Managers.
➢ Reporting to Operation Manager is Assistant Manager and all employees.
➢ Entrance exams of all pets.
Assistant Manager (Salary)
➢ Has all of the same duties of Manager in their absence.
➢ Direct contact to Pet Technician.
➢ Training Pet Technicians.
➢ Makes daily assignment for staff, including cleaning, food preparation,
medical needs, laundry services and bathing assignments.
➢ Report to Operations Manager
➢ Entrance exam of all pets.
Pet Technicians (hourly staff, full and part-time)
➢ Cleaning facilities and grounds.
➢ Laundry services for Pets.
➢ Handling of Pets.
➢ Food preparation and delivery.
➢ Understands emergency procedures.
➢ Pet pickup/delivery.
➢ Pet cleaning and bathing.
➢ Providing care if special needs are required, such as medication or
mobility assistance.
➢ Keep equipment in good order.
➢ Provide inventory needs for supplies to manager.
➢ Reports directly to Assistant Manager or Operations Manager as
necessary.
➢ Not to communicate with Pet owners.
Daily Schedule
PET TECHNICIANS
7:00 a.m.
➢ Check cattery, water, litter boxes
➢ Remove upper level dogs to outside area
➢ Remove all items for laundry
➢ Clean, pressure clean, sanitize upper level
➢ Replace floor rug, bedding, replace water dish
➢ Return upper level dogs inside
➢ Remove lower level dogs to outside area
➢ Remove all items for laundry
➢ Clean, pressure clean, sanitize lower level
➢ Replace floor rugs, bedding, replace water dish
➢ Return lower level dogs from outside, feed dogs that are scheduled for
twice a day
9:00 a.m.
➢ Dispense medication to dogs as required
➢ Provide walks, playtime to dogs schedule
➢ Start laundry
➢ Provide schedule bath or provide if needed
➢ Take 15 minute break
➢ Start water bowl cleaning in dishwasher
➢ Clean litter boxes
➢ Feed cats
➢ Start swimming time (Summer) for dogs permitted
12:00 p.m.
➢ Start 1 hour lunch break
➢ Finish laundry, fold and store fresh rugs, bedding
2:00 p.m.
➢ Finish water dishes
➢ Bring dogs in to rest
3:00 p.m.
➢ Start feeding, second feeding to dogs scheduled
5:00 p.m.
➢ Clean play area inside and outside
➢ Start last outside walk before night
➢ Shut down, older and smaller dogs last
➢ Ready dogs that are to be pick-upped
➢ Finish last walks outside
7:00 — 9:00 p.m.
➢ Clean laundry, kitchen, bath area, ready for next day
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WHITE BEAR BOAT WORKS
DEVELOPMENT PROPOSAL
FOR
DEVELOPMENT OF CITY OWNED PROPERTY
IN BALD EAGLE INDUSTRIAL PARK
Submitted to:
City of Hugo
Attention: Bryan Bear
14669 Fitzgerald Avenue North
Hugo, MN 55038
Submitted by:
White Bear Boat Works
4495 Lake Avenue South
White Bear Lake, MN 55110
651-429-7221
Fax 651-429-3248
MAY 279 2005
TABLE OF CONTENTS
Pa<ue
Introduction ............. .. ....................... 1
Development Team ............................ 2
Proposal ................. ..... .... .. . . ........... ;-4
Timeline .............. . . . . . . . ....... ............ 5
Conceptual Site Plan .......................... 6
INTRODUCTION
City of Hugo
Attention: Mr. Bryan Bear
14669 Fitzgerald Ave. N.
Hugo, MN
For your consideration the White Bear Boat Works Development Team is
pleased to submit a proposal for the full development of the City owned property
in Bald Eagle Industrial Park, described as Lot One of Woods of Bald Eagle
Lake. If selected, and to the satisfaction of the City of Hugo and White Bear
Boat Works, a full development of the 3.3 acre site is proposed as follows:
Construct a one story, approximately 19,909 sq. ft. building with approximately
11,687 sq. ft. of outdoor storage for the operation of White Bear Boat Works.
Construct a one story approximately 16,795 sq. ft. Office Warehouse building,
Construct a one story approximately 12, 546 sq. ft. Town Office Building.
1
DEVELOPMENT TEAM
Jason and Angie Brown, Owners of White Bear Boat Works
Steve Jensen, Architect of Record
Terry Thompson, Development Manager
White Bear Boat Works
Bringing fun on the water to people of all ages and experience levels, White Bear
Boat Works is a continuation of the historic Johnson Boat Works, former
manufacturer of the scow racing sailboat since 1896. As the great-grandson of
J.O. Johnson, inventor of the scow sailboat, Jason Brown managed the 102-year-
old Johnson Boat Works for 12 years before starting the White Bear Boat Works
with his wife, Angie in 1998. Specializing in new and used sailboats, wooden
boat restoration, fiberglass and rigging repair, and parts and accessories, the Boat
Works draws customers from all over the country. Currently employing 15
people, including 2 Hugo residents, the Boat Works has been a family-owned and
operated business since its inception. By moving into the proposed larger
building, White Bear Boat Works will be able to expand the business, and would
look to hire additional employees from the surrounding community.
Steve Jensen
Steve has been a registered architect for 22 years, with extensive experience in
commercial, industrial and marine design. He also has 35 years of construction
experience.
Terry Thompson
Terry has 28 years of construction and development experience. He is a graduate
of Iowa State University in Construction Engineering, and has worked for Kmart
Corporation as a Construction Manager and Regional Development Manager. As
a Development Manager he has been responsible for project budgets, conceptual
site plan, site planning and development, due diligence, engineered drawings,
administrating construction contracts, and oversight of project construction of
$10 to $22 million Kmart developed properties throughout the United States.
PROPOSAL
We propose splitting the 3.3 acres into three lots. Lot A would be 1.3 acres and
would have a 19,909 sq. ft. building to house the White Bear Boat Works. Lot B
would be 1 acre in size and have a 16,795 sq. ft. building. Lot C would be 1 acre
in size and have a 12,546 sq. ft. Office Condo building. Site landscaping would
be designed to enhance the site.
Lot A White Bear Boat Works 19,909 Sq. Ft.
The building would be pre-cast concrete or masonry with a glass entrance
showroom to display sailboats and for a retail sales area. The building design
will include shop areas for fiberglass repair, boat rigging, painting and boat
restoration. Outdoor storage of 11,687 sq. ft. will be fenced and screened per
code.
Lot B Building 16,795 Sq. Ft.
We are proposing a warehouse office building that can be leased out and divided
by the number of tenants (to be determined). We are seeking tenants that would
fulfill a need in the community. Potential tenants could be day care services,
learning services, engineers, recreational sports showroom, to name a few. The
building would be pre-cast concrete or masonry to complement Building A.
Lot C Office Condo Building 12,546 Sq. Ft.
We will be marketing these offices for sale. The proximity of residential housing
to the site should create an interest for professional services that can be utilized
by the residents. This concept allows residents to live and work in their own
community and eliminates the need to travel outside the City for both work and
to obtain services. The proposed building would be a combination of masonry,
stucco or exterior insulated finish system, in earthtone colors to complement
Buildings A and B.
Sail la Vie, a sail and canvas repair business, is a proposed owner for an 1,800 sq.
ft. unit.
3
Financing
Financial Information will be available if this Development Proposal is accepted
by the City of Hugo.
If accepted, this proposal is subject to satisfactory completion of Property
Inspection and Due Diligence Investigation.
ka" �;-) -7- W 10-5-
Ja on Brown, President Date
White Bear Boat Works
4495 Lake Avenue South
White Bear Lake, MN 55110
651-429-7221
Fax 651-429-324
4
TIMELINE
July 2005 Due Diligence, Marketing and Leasing
January 2006 Prepare engineered civil drawings and architectural drawings.
Plan Approval Process
May 2006 Start Site Work on entire site
June 2006 Start Construction on Building A. Buildings B & C would
also start construction contingent upon Tenant Commitments
with an approximate four month construction period.
September 2006 Occupy White Bear Boat Works Building
5
N01�5;
PULPING A 19,909 SQ. Ff. W/
3,030 5Q, Pr, OU1b00p POprIC0
ournoop Lor 51Z� 13 ACIT,S
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11,689 5Q.Fr
1 %LPING P, 16,795 5Q Ff
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I
Revision/Issue Dote
Firm Nome and Address
MPW
® ® i 4495 I.AKI AVS 50UTM
_ MITE PW I Arf,MN 55110
651-429--7221
Project Name and Address
MP �A6LF
i
INnUS�IA�. PAf?K
Project Sheet
MlfT DW GOAT WOKKS
Oct" O
05-23-05
ae
W5
Public Sector Advisors
K` Hugo City Council and
W, Economic Development
Authority Meeting
Apnits,1005
Downtown Redevelopment
Springsted
Overview Next Steps—Resources
• Planned re-route of CSAR a Redevelopment likely to require some form of
• Downtown top priority for policy makers public participation
• Completed downtown plan -Acquisition,demolition,relocation
• Acquisition of parcels •Redevelop substandard buildings
- Must complete interfund loan resolution to reimburse with TI -Infrastructure improvements
• Application for CDBG funds •Street,storm sewer,signalization
• Interested developers Tax Increment Financing
-Senior Housing -Redevelopment District
- Other components of downtown plan -Create a source of funds
Redevelopment District Redevelopment District(cont.)
• Identification of District Boundaries Term
• Qualifications - 25 years after the date of receipt of first increment(26 years maximum).
- Improved parcels make up at least 701/6 of the district.To be Restrictions
considered improved,at least 15%of the parcel's area must - At least 90%of the increment must be used to finance the costs of correcting
contain improvements. elude but that
not lilowmited to tan of redevelopment districts.These costs
- More than 50%of the buildings(excluding outbuildings)are Acquiring propedies containing substandard improvements or hazardous
structurally substandard to a degree requiring substantial substances;
• Acquiring adjacent parcels necessary to provide a she of sufficient size
renovation or clearance. to permit development;
•
- A building isnot considered substandard if it could be brought up Demolition and rehabilitation of structures,clearing of land;Removal or remediation of hazardous substances;and
to code at a cost of less than 15%of a comparable new building Installation of utilities,mads,sidewalks and parking facilities.
on that parcel.
- . 5fi;inq;re;; ... s SprinVstea
1
Eligible TIF Expenditures Financing
• Specified purposes permitted in the underlying Bond Financing
development statutes for cities,HRAs,EDAs,and Port Bonds may be issued without election if at least 20%of debt
Authorities, service is reasonably expected to be paid with increment.
•
Pay-As-You-Go
Administrative expenditures are limited to 10%of the Financing
Dev
expenditures authorized in the TIF Plan or 10%of actual Develloper finnances TIF-eligible costs as they are incurred,
increment expenditures,whichever is less. and authority promises to reimburse the developer from
tax increment over time,if and when it is generated.
• Increment may not be used to finance buildings that are Typically structured as a revenue note issued to the
used"primarily and regularly for conducting the
business"of any unit of government. developer,with an interest component to compensate the
developer for costs of upfront financing.
.. . Springsi_=C
Adopting a TIF Plan Time Limit#1: 3 Year Rule
• Notice to County Board and School District,at least 30 Within three years of certification,one of three things must
days prior to City Council public hearing. occur for district to remain alive:
• For redevelopment districts,the individual county
commissioner representing the site must also receive a — Bonds are issued to aid the project,
notice at least 30 days before the publication of the hearing — Authority acquires property within the district,or
notice(40 days prior to public hearing). —Authority causes public improvements to be constructed
• Published notice,10-30 days prior to public hearing. within the district.
• Review by the Planning Commission.
• Public hearing before City Council and EDA.
• Request for Certification to County Auditor.
Sprin0ste0 -. . Sprinasted
Time Limit#2:4 Year Rule(Knock Down) Time Limit#3: 5 Year Rule
• Increment will not be collected from a particular parcel For increment to be considered a spent expenditure within
the TIF District,one of the following must occur within five
unless,within four years of certification,demolition, �
rehabilitation or renovation of property or other site years after certification of the district:
improvements has occurred in accordance with TIF plan. —TI is paid to a 3rd party for a TIF eligible expenditure,
— Bonds are sold to a 3rd party and proceeds expected to be
spent within 5 years,
• If a parcel is"knocked-down"and later improved,it can be — Binding contracts are entered into with a 3rd party for
reinstated in the district,but at the market value at the time performance of an activity and increment is spent under the
of reinstatement. contract,or
— Costs are incurred by a"party"and revenues are spent to
reimburse that party.
Next Steps-Considerations Questions?
• Approve interfund ban resolution
• Identify geographic boundary of District
Poul SY•i--Ph.(651)2233066 W.W.HM.Ph.(651)2233036
• Complete blight examination/substandard test E—d: ®gid E--R mhuotdwrtpsle—
• Create/certify redevelopment TIF District plan
►I
Article by Bruce Chamberlian of Hoisington Koegler Group, scheduled for
print in Finance and Commerce on Thursday, Aug 4, 2005.
Mound calls on its past to shape its future
The train pulls into the depot of this village known as Mound, named for its collection
of Native American burial knolls and known for its family resorts and the best fishing
on renowned Lake Minnetonka. Eager passengers step onto the platform into a
different world from the one they left in downtown Minneapolis. Visitors pick up a
few essentials at the grocer, walk to the pier and board a small steamer waiting to
carry them to cabins and resorts.
That was the scene in downtown Mound during Lake Minnetonka's thriving resort era
in the teens and twenties. While the resorts are gone, replaced by homes, the scene
is being rebuilt. In a monumental effort of public/private partnerships totaling more
than $200 million of reinvestment and years of work, downtown Mound is once again
becoming a destination.
The effort is called Mound Visions and the vision grew out of need. Despite its rich
history, Mound's downtown had fallen on hard times by the mid 1980s. The resort
era abruptly ended long ago with black Tuesday. More recently, shopping patterns
had changed to the decline of places like Mound. Famed Tonka Toys was sold and
moved from its Mound genesis to Mexico. And that canal from Lake Minnetonka to
the Mound depot? It was all but forgotten; overgrown behind dumpsters, a gravel
alley and piles of road salt.
The community, however, desired a different fate. The City completed a strategic
downtown plan in 1990 that, among other things, suggested an organized downtown
revitalization effort. That effort, soon known as Mound Visions, took root with the
adoption of the downtown master plan in 1992. The master plan was aggressive
with the suggestion to essentially tear down the entire downtown and rebuild it with
mixed-use buildings, reroute a county road, build a new main street, transit center
and farmer's market, rehabilitate the canal to Lake Minnetonka and build a public
marina. The strategy was (and still is) to create extremely compelling public
amenities and pedestrian spaces as a framework for private redevelopment. The
City learned quickly that flipping Mound's tarnished image and attracting private
investment would require bold moves and public "seed" investments in key amenities
like the canal and main street.
At the time it was unveiled in 1992, the idea of building a traditional downtown was
semi-radical. Urban designer Bruce Chamberlain, Vice President with Hoisington
Koegler Group, remembers a prominent area developer warning him that such an
aggressive plan would never be realized. But the community had unwavering
dedication; especially to a plan that focused on its Lake Minnetonka heritage.
The hurdles were at times daunting says Kandis Hanson, Mound City Manager. "Soil
contamination, county road and post office relocation, utility undergrounding, rail
abandonment, new street rights-of-way, not to mention that the permits required to
dredge a canal and build sixty boat slips has kept us focused and savvy." With the
expertise of a top notch City staff, legal and financial council from Kennedy & Graven
and Ehlers & Associates, Environmental consulting from Earth Tech as well as
engineering from MFRA and urban design, landscape architecture and Mound Visions
coordination from Hoisington Koegler Group, the public-realm team of this effort has
accomplished feats.
Enter the development community. Early skepticism turned to passive curiosity and
ultimately to financial commitment with Mound's establishment of a downtown tax
increment financing district and completion of early infrastructure projects. The
catalyst redevelopment project by a local hardware retailer in 2000 was quickly
followed by a mixed-use retail/housing project by MetroPlains Development and a
new downtown post office. These early projects were critical in demonstrating
market success and establishing the flavor for the important"main street" projects
to come.
Mound Harbor Renaissance, LLC (MHR), consisting of a consortium of development
interests was selected by the City in 2001 as the redeveloper of three high-visibility
main street districts in downtown. MHR and their consultants including Maxfield
Research, Landform Engineering, Barr Engineering, Fagre & Benson, Krass Monroe
and Edina Realty has embraced Mound's vision for a traditional downtown and
proven to be a wise and highly professional development partner in the effort.
MHR's proposal for mixed-use development embraces public space and pushes the
envelope in quality design and innovative stormwater systems. Tom Stokes,
president of Brenshell Townhomes, one of the development partners, says that"the
intense market interest of their downtown units prove the sophistication of today's
home buyers who are interested in a full package of high quality amenities that flow
from interior details to building architecture to site design to inviting public spaces."
The public/private teamwork of MHR and the City is gaining wide recognition and
support. In the 2005 calendar year alone the team has secured nearly $5 million in
grant funds and received large awards from Hennepin County's Transit-Oriented
Development grant and Minnesota Department of Employment and Economic
Development environmental grant. The project has also been recognized with
significant financial support from the Minnehaha Creek Watershed District as an
innovative model for stormwater treatment.
The Mound Visions effort will be complete in 2008. All told, over 350 housing units
within a five-minute walk from a downtown transit center and 150,000 square feet of
commercial space will have been built. The effort will result in roughly $40 million in
public investment and another $160 million in private investment. Property taxes
generated from this small downtown will increase by over 25 times their pre-
development levels. When asked if the effort has been worth it Mayor Pat Meisel
says, "We have reconnected with our heritage, set the stage for a generation of
success and transformed attitudes from defeatist to confidence. I'd say it's been
worth it".
Sponsored by the Washington County Workforce Investment Board
a a
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it
Matt Kramer Jim Schug
Commissioner,Department of Washington County
Employment and Economic Administrator
Development
State perspective on economic development County outlook on economic development
in Minnesota,12:3opm and the state of the county
Please join us for the
East Metro Economic Development
Forum
June 16, 2005 11am — 1pm
Machine Shed Restaurant
Lake Elmo, MN
Join your Local Elected Officials, Chambers of Commerce, Economic
Development Officials and the Washington County Workforce
Investment Board to learn about the State's business climate.
➢ Network with peers regarding Economic Development for Business.
➢ Reports on local economic development from the following cities:
Woodbury Cottage Grove Stillwater Hugo
Oakdale Forest Lake Newport
East Metro Economic De velopment Forum
Name Area Code Phone
Street Address City, State, ZIP Area Code Phone
Business or Organization E-mail
PAYMENT METHOD Check(s) Enclosed
Payable to Washington County
Forum &Lunch$10.00 (in advance) Please charge to my:
$15.00 at the door (if space available) VISA MasterCard Discover
Account # - -
---- ---- ---- ----
East Metro Economic Development Forum Cardholder's Name
June 16, 2005 l lam- 1pm Exp. Date
Machine Shed Restaurant Limited seating,please respond early
8515 Hudson Boulevard
Lake Elmo MN Rachel.Oconnel](c�co.washington.mn.us
' Rachel O'Connell
Washington County WFC
94 East to Radio Drive/Inwood Ave. Exit 2150 Radio Drive
North on Inwood Avenue Woodbury, MN 55125
Right on Hudson Boulevard Phone: (651) 275-8686
Fax: (651) 275-8682
- - - - - - - - - - - - - - --- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
East Metro Economic Development Forum
Name Area Code Phone
Street Address City, State,ZIP Area Code Phone
Business or Organization E-mail
PAYMENT METHOD Check(s) Enclosed
Payable to Washington County
Forum & Lunch $10.00 (in advance) Please charge to my:
$15.00 at the door (if space available) VISA MasterCard Discover
Account # - - -
---- ---- ---- ----
East Metro Economic Development Forum Cardholder's Name
June 16, 2005 Ilam- 1pm Exp. Date
Machine Shed Restaurant Limited seating,please respond early
8515 Hudson Boulevard
Lake Elmo, MN Rachel.Oconnell(a�co.washington.mn.us
Rachel O'Connell
Washington County WFC
94 East to Radio Drive/Inwood Ave. Exit 2150 Radio Drive
North on Inwood Avenue Woodbury, MN 55125
Right on Haedson Boulevard Phone: (651) 275-8686
Fax: (651) 275-8682
--------------------------- -------------
-------- - ----- ----
Return To:
Gregory G. Galler
A
Eckberg, Lammers, Briggs, Wolff �
& Vierling, P.L.L.P.
1835 Northwestern Avenue
Stillwater, MN 55082
4:57
CITY OF HUGO
WASHINGTON COUNTY, MINNESOTA
DEVELOPMENT AGREEMENT
THIS AGREEMENT, made and entered into this day of
, 199 by and between the CITY OF HUGO, a
Minnesota municipality organized under the laws of the State of
Minnesota (hereinafter referred to as "City") ; and OAKWOOD LAND
DEVELOPMENT, INC. (hereinafter referred to as "Developer") .
WITNESS:
WHEREAS, the City Council of the City has, by
Resolution on July 19, 1999, approved the Preliminary Plat for a
major subdivision as proposed by the Developer to be known as
Rev. 06/11/05
"Beaver Ponds 5th Addition, " ("The Plat") ; and,
WHEREAS, the Plat proposes a development of an
approximately 22 . 74 acre parcel of land into forty-one (41) single
family lots; and,
WHEREAS, the Plat is the further development of Outlot
A of Beaver Ponds 3rd Addition; and,
WHEREAS, it is the policy of the City to enter into
development contracts as contemplated in Minnesota Statutes
0462 . 358, Subd. 2 (a) ; and,
WHEREAS, the parties hereto desire to set forth their
respective rights and obligations of the parties to this
Agreement.
NOW, THEREFORE, in consideration of the premises and of
the mutual promises and conditions contained herein, it is agreed
by the parties hereto as follows:
1. Escrow for City Costs and Fees. Developer shall,
contemporaneously with the execution of this Agreement, deposit
with the City an escrow of Ten Thousand Dollars ($10, 000. 00) to
cover the cost of legal fees, engineering fees, administrative
expenses, and other costs related to this development.
All fees and costs incurred by the City in
connection with the development shall be charged against said
escrow account which shall remain in effect until the completion
Rev. 06/11/05
of the development. Any funds remaining in the escrow accounts
after the completion of the development shall be refunded to the
Developer. In the event that the escrow account herein is
depleted, Developer agrees to post additional sums of money to
replenish the account and to cover projected City costs.
Specifically, Developer agrees that the escrow account shall
always have a balance of no less than Two Thousand Five Hundred
Dollars ($2, 500 . 00) . Developer shall be entitled, upon request,
to an itemized statement of all costs and fees charged against
this escrow account.
2 . Road Dedication. The Final Plat shall dedicate to
the City for roadway and utility purposes all land within the
development located within thirty (30) feet from the centerlines
of the following roads:
a. Flay Road
b. 128th Street North
C. Fondant Trail North
d. Foxhill Avenue North
e. Foxhill Court North
3. Improvements. In accordance with the policies and
Ordinances of the City, the Developer shall conduct the
following described improvements hereinafter collectively called
"improvements. " All improvements shall be constructed and
installed pursuant to the terms and conditions herein set forth.
a) The property lines which are identified on
Rev. 06/11/05
the plat must be monumented with iron surveyor' s pipes by the
Developer to assure proper setbacks within the lots.
b) Developer shall construct sanitary sewer,
water mains, storm sewer systems, and bituminous streets, with
concrete curb and gutter. This work shall including all necessary
grading, road preparation and drainage work.
c) Developer shall provide adequate off-street
parking on all lots abutting on cul-de-sacs, or termination
turnarounds, such that the City could prohibit on-street parking
if necessary for safety and maintenance purposes.
d) On site watermains shall be looped, as
required by the City.
e) Drainage easements shall be given so as to
cover ponding based upon 100-year high water levels.
f) Soils inspection and compaction testing by a
registered professional engineer shall be accomplished on all lots
where filling is required, in accordance with the approved Grading
Plan. A minimum of one (1) compaction test shall be obtained for
every -two (2) foot increment of fill that is placed. A summary of
all inspections and compaction tests shall be provided to the City
upon completion of the grading.
g) Developer shall install trees within the Plat
per City Subdivision Ordinance 290-10, Subd. M.
Rev. 06/11/05
h) All utilities, including electricity,
telephone, natural gas and cable television, shall be installed
underground where possible.
i) Developer shall identify mailbox locations,
provide as-built drawings to the City, and install all trees and
surface water drainage systems within the development as required
by the City.
j ) Soil stabilization shall be employed
throughout the Plat on an "as needed" basis (as determined by the
City) to insure the integrity of the soils. Developer shall use
top soil, seeding, silt fence, and such other means as are
approved by the City to prevent erosion of the soils. Developer
shall submit a grading and erosion control plan to the City for
this purpose.
k) Developer shall construct storm sewer, berms,
swales, and/or such other storm water drainage devices as shall be
necessary to control drainage within the Plat. A storm water
drainage plan must be submitted to the City and approved by the
City, the City' s Engineer, ani or the City' s Water Resource
Engineer before any work is done within the Plat.
1) Developer agrees not to commence any utility
or street work within the plat until first receiving a written
"Notice to Proceed" from the City.
Rev. 06/11/05
M) Street lights shall be installed within the
plat according to a street lighting plan which will first be
approved by the City Engineer. Developer shall also submit its
street lighting plan to Northern States Power Company for its
review, comment and approval. The installation of the street
lights shall be coordinated with Northern States Power Company so
that the street light system is installed, constructed and
operated in such a manner as will harmoniously exist with other
street lights within the area.
n) The Developer shall construct a ten (10) foot
wide bicycle path along the west and south side of Flay Road. The
trail shall also continue south on the west side of Fondant Trail
(south of Flay Road) .
o) The Developer shall construct a temporary
cul-de-sac at the east end of 128th Street North.
All work for these public improvements, including
street, sanitary sewer, storm sewer, and municipal water, shall be
done subject to the approval of the City in accordance with City
standards and requirements. All improvements shall be fully
completed to the reasonable satisfaction and approval of the City
on or before November 1, 2000. The Developer shall be excused
from the strict completion date set forth herein if written notice
is received from the Developer of the existence of causes over
Rev. 06/11/05
which the Developer has no control which will delay the completion
of the work. In that event, the City may extend the date or dates
herein specified.
4 . Construction Warranty and Financing of
Improvements. The Developer agrees to construct the improvements
described herein at its own expense and in accordance with City
specifications. The Developer shall engage at its own expense a
registered, professional civil engineer to prepare plans and
specifications for the improvement projects and shall submit the
same to the City for review and approval. The Developer
represents and warrants that all of the improvements made as a
part of this development shall be guaranteed to be properly
functioning as designed for a period of not less than one (1) year
following acceptance of the entire project by the City.
In the case of any material or labor that is
supplied and that is reasonably rejected by the City as defective
or unsuitable, then the rejected materials shall be removed and
replaced with approved material, and the rejected labor shall be
done anew—to the reasonable satisfaction and approval of the City
at the sole cost and expense of the Developer.
In any event, none of the warranty periods
expressed herein shall begin to run until all of the improvements
within the plat have been approved and accepted by the City.
Rev. 06/11/05
Developer shall provide a financial guarantee to
the City, in the form of a cash escrow or letter of credit, in the
amount equal to one hundred twenty-five percent (1250) of the
estimated amount of the required improvements to be installed to
serve the development. This amount has been calculated by the
City' s Engineer to be Five Hundred Forty Five Thousand Two Hundred
Twenty Four Dollars ($545, 224 . 00) . The City shall have the right
to retain the financial guarantee until the improvements have been
completed to the satisfaction of the City.
Developer shall provide an additional financial
guarantee to the City in the form of a cash escrow or letter of
credit in the amount equal to one hundred twenty-five percent
(1250) of the estimated amount of the required improvements for
the lift station, easements and attendant piping. This amount has
been calculated by the City' s Engineer to be $313, 300. 00 . The
City shall have the right to retain this financial guarantee until
the improvements have been completed to the satisfaction of the
City.
Developer has a right to request reduction of the
letters of credit amount. Specifically, Developer shall send a
written request to the City' s Engineer for a specific reduction in
the amount of the letters of credit. The City Engineer shall
review that request and make a recommendation to the City as to
Rev. 06/11/05
whether or not the letters of credit should be reduced, and if so,
to what amount. The City Council shall then decide whether or not
to reduce the letter of credit. The letter of credit, however,
will not be reduced below twenty-five percent (25%) of the total
construction cost of the project until one (1) year following
acceptance of the entire project by the City. At that point, the
letter of credit shall be refunded, assuming no warranty work
:remains to be done.
5. Signs, Signals, & Markings. Pursuant to Minnesota
Statutes 0169. 06, Subd. 3, the City has the authority to place and
maintain traffic-control devices upon its roadways as the City
deems necessary. The City Engineer shall supply the City with a
list of traffic-control devices and street signs which will be
necessary in the Development. The City Public Works Department
shall erect said traffic-control devices and street signs within
the Development. The cost of said signs and labor shall be
charged against the Developer' s escrow account which was
established within paragraph one (1) of this Agreement.
6. Drainage -Easements.
a) No improvements, landscaping, or grading
shall be permitted in defined drainage easements without the prior
written permission of the City and the Rice Creek Watershed
District.
Rev. 06/11/05
b) The Developer and its successors in interest,
including all individual homeowners, shall be responsible for
maintenance of all drainage areas within the easements on their
property.
7 . Wetland Boundaries . The property contained within
the proposed development is partially composed of wetlands.
Developer shall provide competent "before and after" topographical
surveys to the City delineating the exact elevation of land within
the wetlands . The topographical surveys shall show the elevations
before any work has been done on the site and after the site has
been landscaped.
Developer agrees to comply with all requirements
and restrictions applicable to each of the wetlands upon the
property.
8 . Lowest Floor Elevations. No building shall be
constructed on any of the lots herein unless the lowest floor
elevation is at least two (2) feet above the 100-year flood
elevation or four (4) feet above the high groundwater elevation,
whichever is--greater, for the subject property. Additionally, the
lowest floor elevation shall be specifically referenced and
designated, for each lot, on a certificate of survey, which survey
shall be provided to the City before any building permits are
issued for any lots within the Plat .
Rev. 06/11/05
9. Park Fee. The City has a policy to build up a
capital account for future park acquisition by means of a park
dedication fee. The Developer has already satisfied the park
dedication requirements through a land dedication which was made
as part of the Development Agreement for Beaver Ponds 1st
Addition. As part of the park dedication requirement, the
Developer shall rough grade the park area. In addition, the City
shall reimburse the Developer for that part of the final grading
in the park area to create a soccer field. Final grading shall
include the addition of topsoil and seed in accordance with City
standards.
10. Agency Approval. Developer agrees to submit a
plan for drainage and water quality management to the Rice Creek
Watershed District (for its review and approval) , prior to the
final approval of the Plat. Developer acknowledges that no final
plat approval will be given unless the City receives a written
confirmation from the Rice Creek Watershed District that approval
has been given. In addition, Developer agrees to submit the Plat,
or any portions thereof, to all appropriate federal, state, county
or local governing agencies or bodies for their written approval.
11. Incorporation by Reference. All general and
special conditions, plans, special provisions, proposals,
specifications and contracts for the plat and for any improvements
Rev. 06/11/05
furnished and let pursuant to this Agreement shall be and hereby
are made a part of this Agreement by reference as if fully set out
herein in full.
12 . Miscellaneous Provisions. Developer specifically
understands that this subdivision approval is given subject to the
following requirements:
a) The final plat documents must be submitted to
the City Council within ninety (90) days of preliminary plat
approval or else the preliminary plat approval shall be null and
void.
b) The final plat must be recorded with the
Washington County Recorder (and the mylar "hardshells" must be
fully executed) within one hundred twenty (120) days of the
Council motion giving final plat approval or else said approval
shall be null and void.
c) Final plat approval shall be contingent upon
compliance with grading, storm water drainage, and utility plan
approval by the City.
d) All applicable conditions of plat approval
must be met before any deeds are stamped for recording and prior
to the recording of the final plat at the Washington County
Recorder' s Office.
f) No building or other permits shall be issued
Rev. 06/11/05
until the final plat has been recorded with the Washington County
Recorder, and utility/road improvements are substantially
completed (as determined by the City) . This provision
specifically requires that the surface water drainage system must
be substantially completed and functioning to the satisfaction of
the City.
g) All fees relating to this subdivision shall
be paid by the Developer, including the cost of recording
documents with Washington County.
h) Plat approval shall be contingent upon full
compliance with this Development Agreement.
i) Any exterior lighting or advertising
activities on the site must be approved by the City.
j ) Drainage and erosion control methods for this
development shall be completed prior to the City accepting the
roadway or the public improvements serving this Development. All
work shall be inspected by the City to insure that it complies
with City standards.
--k) The Developer shall permit access to the land
herein for periodic inspections to assure conformance with the
conditions herein.
1) The Developer shall post a cash escrow with
the City in the amount of Six Thousand Thirteen and 50/100 Dollars
Rev. 06/11/05
($6, 013. 50) to cover the cost of the first sealcoating of the
streets in the Plat. This sum is calculated to be $1. 90 per foot
for the three thousand one hundred sixty-five (3, 165) feet of
streets within the Plat.
M) All temporary soil stabilization and erosion
control devices, such as silt fencing, shall be removed by the
Developer before the escrow held by the City is returned to the
Developer.
n) No material deviations from the approved
final plat shall be allowed unless approved in writing by the
City.
o) Developer shall provide the City with legal
descriptions of all parcels of land that are to be subdivided as a
part of this project.
P) A certificate of survey shall be provided to
the Building Inspector for each lot at the time a building permit
is requested for the lot.
q) The Developer shall provide on-site a
sufficient number of portable outhouses—to be available for the
persons who will be working on-site.
r) Developer shall remove all tree waste, junk,
miscellaneous debris, junk vehicles, and any other personal
property from the land which does not comply with the City Zoning
Rev. 06/11/05
Ordinance.
S) Approval herein is also given subject to ful:L
compliance with the Findings of Fact as adopted by the Planning
Commission and City Council.
t) Deed restrictions shall advise owners of all
lots of the requirements of this Development Agreement as follows :
THE LAND WITHIN THIS PLAT, INCLUDING THE LAND CONVEYED HEREIN, IS
BOUND BY RESTRICTIONS IN A DEVELOPMENT AGREEMENT. SAID
DEVELOPMENT AGREEMENT IS ON FILE AT THE OFFICE OF THE WASHINGTON
COUNTY RECORDER.
U) The Developer shall seed the soccer field and
the park area in accordance with the plans and specifications
prepared by the City Engineer for $4, 500 . 00 paid to the Developer
by the City and the seeding shall be complete no later than May 1,
2000 .
13. Special Provisions.
a) Developer agrees to pay liquidated damages to
the City if any lot, upon which a home has been built, has a real
estate closing occur before a certificate of occupancy has been
issued for that lot and/or before all public improvements within
the Plat are certified as being substantially completed by the
City. Specifically, Developer agrees to immediately pay to the
City liquidated damages in the amount of $10, 000 . 00 for each lot
Rev. 06/11/05
closing which occurs in violation of this paragraph. The City
shall be authorized to retain an appropriate percentage of the
financial guarantee referred to in paragraph 4 as security for
payment of any liquidated damages owed to the City.
b) Developer agrees to pay liquidated damages to
the City, in the amount of Five Thousand Dollars ($5, 000 . 00) , if
the Developer encroaches upon any City road right-of-way or
utility easement without first obtaining a written permit from the
City expressly authorizing said encroachment. The City shall be
authorized to retain an appropriate percentage of the financial
guarantee referred to in paragraph 4 as security for payment of
any liquidated damages owed to the City.
C) Snow Plowing. Developer agrees to pay a cash
escrow to the City to cover the cost of snowplowing the roads
within the plat, during the first snow season, before the roads
are formally accepted by the City. Specifically, the City has
determined that it costs $0 . 095 per lineal foot to plow roads
during a snow season. Consequently, the Developer shall post a
cash escrow with --the City in the amount of Three Hundred and
68/100 Dollars (i.e. , $0 . 095 x 3, 165 = $300 . 68) . Said escrow
shall be considered to be part of the escrow referenced within
Paragraph 4 of this Agreement, and the City may retain the
appropriate percentage of that escrow until it is needed to pay
Rev. 06/11/05
for the snow removal costs as per the City' s contract with
Washington County for snow removal services.
d) Lift Station. The City shall prepare plans
and specifications for the construction of gravity sanitary sewer,
force main and a regional lift station that will serve the
Development and areas outside the Development. These facilities
will be located outside of the Development along the south side of
130th Street North, and are considered to be public improvements
that will provide service to areas other than the development and
the Development itself. The City shall contract separately for
the construction of these improvements. The Developer shall be
responsible for providing wetland mitigation related to these
improvements.
e) Developer shall provide to the City proof that
it has obtained written consent from the Minnesota Pipeline
Company to construct on the Minnesota Pipeline Easement prior to
improvements on the Development.
f) Developer shall be allowed building permits
for no more than six (6) model homes td--be built within the
Development. These homes shall not be built until the Final Plat
has been filed with Washington County. No Certificates of
Occupancy, no other Building Permits (or any other permits) , shall
be issued until the Final Plat for the Development has been
Rev. 06/11/05
recorded with the Washington County Recorder, and all improvements
are substantially completed (as determined by the City) . This
provision specifically requires that the surface water drainage
system must be substantially completed and functioning to the
satisfaction of the City.
All costs associated with these improvements shall
initially be paid by the Developer, pursuant to the City of Hugo' s
"Private Development Cost Sharing Policy" adopted by the Hugo City
council on May 18, 1998 and a City Ordinance providing the means
by which the City' s share of costs will be reimbursed to
Developer. The Ordinance shall provide a means by which the City
can collect connection charges from property owners as they
connect to the lift station and subsequently reimburse the
Developer. The connection charges shall be determined by City
Staff and reflect the difference between the final project costs
for the improvements and the Developer' s share of the costs. The
Ordinance shall also address yearly inflationary increases for the
connection charges based on the ordinances and policy. All
reimbursement shall be conducted pursuant to the Cost Sharing
Policy approved by the City. The Developer shall pay 60% of the
final project costs in connection with the lift station and 21% of
the final project costs in connection with the 6 inch force main.
Said final costs shall include engineering, legal and
Rev. 06/11/05
administration expenses.
h) The parties understand and agree that this
agreement is contingent upon the City acquiring all necessary
easements for the construction of the lift station and the
Developer acknowledges that it proceeds with improvements at its
own risk. The City will use reasonable efforts to acquire said
easements .
14 . Record Information Requirements. Following
completion of all development activities, the Developer shall
provide to the City "as-built" plans for all public improvements
and land within the plat. This information shall be provided to
the City by two (2) printed copies and in an electronic GIS file
format acceptable to the City Engineer. As-built information
shall include:
A. Topography in two-feet contour intervals.
B. Water system facility information, including:
1. Location, size and depth of all mains;
2. Location and type of all valves; and,
3. Location of all hydrants.
C. -Sanitary sewer facilities information,
including: ---
1. Location, size and depth of all mains;
2 . Location and invert elevations of all
manholes; and,
3. Location, size and depth of all lift
stations.
D. Storm sewer facilities information,
including:
Rev. 06/11/05
1 . Location, size and depth of all storm
sewers;
2 . Location and invert elevations of all
manholes; and,
3 . Location, type and outflow elevations of
all storm water control structures .
E. Flood plain boundaries .
F. Ordinary high water elevation for all water
bodies.
G. Location of all easements.
H. Location of all road right-of-ways.
I. Location of all streets, sidewalks and bike
paths.
J. Location and description of all surveying
monuments.
Developer shall also provide such other information regarding the
plat as is reasonable requested by the City.
15. Warranty of Title. Developer warrants and
represents to the City that it is the fee owner of the land
described herein and that it has authority to execute this
Development Agreement and agree to the conditions hereof.
Developer also represents and warrants that the
use for which this development is sought will not violate any
restrictive covenants applying to the property.
16. Binding Effect. This Agreement shall be deemed to
be a restrictive covenant and the terms and conditions hereof
shall run with the land described herein and be binding on and
Rev. 06/11/05
inure to the benefit of the heirs, representatives and assigns of
the parties hereto, and shall be binding upon all future owners of
all or any part of the subdivision, and shall be deemed covenants
running with the land. Reference herein to the Developers, if
there be more than one, shall mean each and all of them.
This Agreement shall be placed of record so as to
give notice hereof to subsequent purchasers, the cost of said
recording shall be borne by the Owner and charged against the
escrow account.
17 . Restrictions on Transfer/Indemnification.
a. Indemnification. Developers agree to defend
and hold the City, and its officials, employees and agents,
harmless against any and all claims, demands, lawsuits, judgments,
damages, penalties, costs and expenses, including reasonable
attorney' s fees, arising out of actions or omissions by
Developers, their employees and agents, in connection with the
Project.
b. Enforcement by City; Damages. The Developers
acknowledge the right of the City—to enforce the terms of this
Agreement against the Developers, by action for specific
performance or damages, or both, or by any other legally
authorized means. The Developers also acknowledge that their
failure to perform any or all of their obligations under this
Rev. 06/11/05
Agreement may result in substantial damages to the City; that in
the event of default by the Developers, the City may commence
legal action to recover all damages, losses and expenses sustained
by the City; and that such expenses may include, but are not
limited to, the reasonable fees of legal counsel employed with
respect to the enforcement of this Agreement.
18 . Events of Default.
a. Events of Default Defined. The following
shall be "Events of Default" under this Agreement and the term
"Event of
Default" shall mean, whenever it is used in this Agreement, any
one or more of the following events:
1 . Subject to unavoidable delays, failure by
Developers to commence and complete
construction of the Public Improvements
pursuant to the terms, conditions and
limitations of this Agreement .
2 . Failure by Developers to substantially
observe or perform any material covenant,
condition, obligation or agreement on their
part to be observed or performed under this
Agreement.
b. Remedies on Default. Whenever any Event of
Default occurs, the City, subject to any rights of third parties
agreed to by the City pursuant to this Agreement, or otherwise by
written, executed instrument of the City, may take any one or more
of the following:
1 . The City may suspend its performance under
Rev. 06/11/05
the Agreement until it receives assurances
from Developers, deemed adequate by the City,
that Developers will cure their default and
continue their performance under the
Agreement.
2 . The City may initiate such action, including
legal or administrative action, as is
necessary for the City to secure performance
of any provision of this agreement or recover
any amounts due under this Agreement from
Developers, or immediately draw on the
Letters of Credit, as set forth in this
Agreement.
IN WITNESS WHEREOF, the City and Developer have caused
this Agreement to be duly executed on the day and year first above
written.
CITY OF HUGO
By By
Walter L. Stoltzman, Mayor Mary Ann Creager, Clerk
Rev. 06/11/05
STATE OF MINNESOTA )
) ss.
COUNTY OF WASHINGTON)
On this day of 199_, before
me, a Notary Public, personally appeared WALTER L. STOLTZMAN and
MARY ANN CREAGER, of the City of Hugo, a Minnesota municipality
within the State of Minnesota, and that said instrument was signed
on behalf of the City of Hugo by the authority of the City Council
of the City of Hugo, and WALTER L. STOLTZMAN and MARY ANN CREAGER
acknowledge said instrument to be the free act and deed of said
City of Hugo.
Notary Public
Developer
Oakwood Land Development Company, Inc.
By
John R. Peterson, President
STATE OF MINNESOTA )
) ss. (Corporate Notary)
COUNTY OF )
On this day of 199 before
-me, a Notary Public, within and for said County and State,
personally appeared JOHN R. PETERSON,—to me personally known, who,
being by me duly sworn did say that he is the President of OAKWOOD
LAND DEVELOPMENT COMPANY, INC. , a Minnesota corporation, named in
the foregoing instrument, and that said instrument was signed on
behalf of OAKWOOD LAND DEVELOPMENT COMPANY, INC. , by authority of
its Board of Directors and said JOHN R. PETERSON acknowledged said
instrument to be the free act and deed of said corporation.
Notary Public
Rev. 06/11/05
DRAFTED BY:
Gregory G. Galler
ECKBERG, LAMMERS, BRIGGS, WOLFF
& VIERLING, P.L.L. P.
1835 Northwestern Avenue
Stillwater, MN 55082
(651) 439-2878
Rev. 06/11/05
arsness Consulring Services, Inc.
Memorandum
To: Mike Ericson, Brian Bear
From: Kirstin Barsness
Date: 6/19/05
Re: Consulting Services
As requested, I have outlined a menu of consulting services for the city of Hugo.
Services are defined by three broader categories: Project Management, Tax
Increment Financing District Coordination, and Project Marketing. All three areas
are inter-linked and some services could be defined in more than one category.
Project Mana eg ment
❖ Work with local businesses for retention within the downtown area.
❖ Respond to information requests and inquiries from businesses and
residents.
❖ Work with EDA and City Council to identify redevelopment priorities.
❖ Coordinate and manage communications of project progress both internally
and externally.
❖ Work with staff to create a timeline(Gantt Chart)that represents key
benchmarks in the projects development.
❖ Act as liaison between City representatives and prospective developers.
❖ Assist in negotiation of Letters of Intent, Pre-Development and
Development Agreements, and Tax Increment Agreements.
TIF District Coordination
June 19, 2005
❖ Draft criteria for financial assistance based on EDA input. Generate
application and evaluation tool.
❖ Develop and manage District Budget. Work with city staff to maintain files.
❖ Act as staff contact for establishing the TIF District; work with the City's
Financial Advisor on TIF Plan and coordinate inspections.
❖ Serve as point of contact for property owners within the District boundaries.
❖ Complete document and proforma analysis for projects requesting TIF
assistance.
Project Marketing
❖ Create background piece,possible RFQ, or RFP for potential developers.
❖ Identify real estate development companies to "shop" pieces of the project.
Receive feedback on marketability and gage level of interest in the project.
❖ Coordinate selection process including interviews, reference and financial
checks.
❖ Develop Promotional Plan for the entire project to generate project
awareness within the Market.
All consulting time billed will have prior authorization from the City of Hugo.
Ms. Barsness' bill rate is $100.00 per hour. Portions of the project maybe sub-
contracted or completed by another BCS employee with approval from the City
of Hugo. Hourly rates for sub-contracted work will be negotiated at the time of
engagement.
Expenses such as printing, postage, long-distance telephone, etc. are billed at
cost. All invoices are payable within fifteen (15) days of receipt of an invoice
showing the work completed and the direct costs for expenses.
Page 2
Follow up from EDA meeting Monday Page 1 of 1
Mike Ericson
From: Theresa Charpentier[theresa.charpentier@mdi.org]
Sent: Wednesday, May 18, 2005 3:41 PM
To: Mike Ericson
Subject: Follow up from EDA meeting Monday
<<Hugo Marketing Program.doc>>
Mike,
Here is the document that we discussed regarding the Hugo mktg plan draft. There was also a SWOT that
was completed with Tom, Phil and me that you will also want to track down. Talk to you soon.
Theresa Charpentier
Senior Account Executive
MDI - Government Business Development
1700 Wynne Avenue
St. Paul, MN 55108
651.999.8231
651.646-4215 fax
theresa.charpentier@mdi.org
www.mdi.org
5/27/05
' City of Rosemount -- City of Rosemount Page 1 of 2
" y°
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Min ties
Home
City of Rosemount Printer-frie
Council goals for 2004-05 City Mission Statement
Rosemount offers Water
Downtown Revitalization q' opportunities to live, work, flushing,
t shop, play and learn while Click here
42/52 study maintaining our unique precaution;
history. We continue to
Council/Commissions h, enhance our small town
character and pride through Can you
Agendas and minutes , ' neighborhood, Leprech;
City Departments .:` park, Click here
Presentation by CPDC's Homer Tompkins to downtown, c rrt r on how to C
Rosemount Port Authority Apr.5.The P.A. school and
City Services selected a development team including community
CPDC to negotiate an initial project for activities. Mayor sa
Forms and brochures Downtown revitalization. the City is
News/quarterly newsletter
Welcome to the official website of the City of Rosemount--a guide 'Click here
to city services and information. the 2005 at
Weekly Update
Street re
Events began l
News/quarterly newsletter Click here
Employment limit
Volunteers needed to evaluate wetland health �weight
About Rosemount Thursday,April 07, 2005
Help the community collect data to keep resources safe. � �n Cit
Read more...
Helpful Links now a
Disclaimer Click here
Water system flushing April 11-22 latest Park:
registration
Tuesday,March 29, 2005
Search Avoid doing laundry while water is brown
GO Read more... Rose
populat
Full Site N(
f Spring scavenger hunt 20
This Section Tuesday,March 29,2005
Up 5,539
Search Tips Sign up your team by April 22 to search the town for prizes What
Read more...
Survey says public satisfaction in Rosemount remains strong
Tuesday,March 22, 2005
2005 resident survey reveals high level of support for quality of life,
City services
Read more...
http://www.ci.rosemount.mn.us/ 4/11/05
Cify of Rosemount -- City of Rosemount Page 2 of 2
Nominate a Rosemount volunteer for honors
Monday,March 21, 2005
City Council is collecting nominations for volunteers to honor in
April
Read more...
City of Rosemount,2875-145th Street West,Rosemount,IVIN 55068-4997(651)423-4411,TTY(651)423-6219,FAX(651)42
Home I Council_g_oals for 2004-0.5 I Downtown_Revitalization 142/52 study I Council/Commissions_ I Agendas and minutes I WDepa
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PC
http://www.ci.rosemount.mn.us/ 4/11/05
City of Rosemount -- Downtown Revitalization update Page 1 of 4
- '
I
' .+f A
Home Downtown Revitalization update Printer-frie
Council goals for 2004-05
The Rosemount Port Get the k
Downtown Revitalization Authority voted April 5 to Downtc
Progress select a development team Click here
that the City will work with on City dev
42/52 study on Downtown revitalization. activities
Commissioners selected a
Council/Commissions team including Contractor �Progre:
Property Developers
Agendas and minutesCompany(CPDC)and ski
The Port Authority's board heard
presentations by three development teams Central Community Housing 1 Click here
City Departments Apr.s. Trust(CCHT). The motion Iphotos and
approved by the Port !smokestac
City services instructs City staff to begin discussions to develop a preliminary LZnan
the L
development agreement. The agreement will define roles, ng d
Forms and brochures responsibilities, and timing of performance. nefit
News/quarterly newsletter Last fall, the Rosemount Community Development Department I (dues
Weekly update issued a Request for Qualifications for developers who would like cum
to take part in the revitalization of Downtown Rosemount. (Click Email it by
Events here to see a PDF version of the document. Click here to read here
about an informational meeting held for developers.) Three
Employment development teams submitted proposals.
The Vi
About Rosemount The Rosemount City Council approved a development framework Dow
for Downtown Rosemount at its meeting July 6. By a 4-0 vote, The historic
Helpful Links Council members endorsed a vision for the rebirth of Downtown. in Rosemo
the comma
Disclaimer The framework is available for download at the bottom of this small town
page. Residents can still submit comments or questions about the Providing a
plan by clicking the link near the upper right of this page. of commml
Search oriented bu
GO In approving the framework, Council members emphasized that Downtown
r the document is a guide, not a detailed blueprint of what will professions
Full Site civic, and r+
develop Downtown. The future of individual properties and blocks
This Section is not known now, and will depend on proposals by private usesinto a
developers. The City will approve proposals based on how well dynamic that attract:
Search Tips they fit the vision and guidelines for Downtown. all ages. D,
the commu
The framework was created during nine months of work by the gathering p
Downtown Redevelopment Committee, a citizens group appointed scale and c
by the Council to include community and business developme
representatives. "I hope that everyone in the City of Rosemount traditional
and at this table knows this is not the end of the process," said small town
Committee Chair Mike Baxter as the group approved the streets. Do'
document. "It's the beginning of the process." Rosemoun
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City of Rosemount -- Downtown Revitalization update Page 2 of 4
for people t
The Council picked Downtown Revitalization as one of its top goals city ameniti
for 2004-05; click here for details. small town
Q: When will specific parts of the existing Downtown
change?
A: There is no set timetable for changes to any given part of
Downtown Rosemount, because there is no set blueprint for
redevelopment. The Framework approved by the City
Council sets out some possibilities for change. The project
depends on proposals that the City will solicit from private
developers. The City will review those proposals to make
sure they fit with the vision for Downtown. The first
proposals could come in late this summer or early fall.
Q: Will certain buildings be torn down?
A: There are no firm plans to remove a given building. The
concept shown in the Framework suggests that certain
structures may be replaced or refurbished. The final
decision rests with developers and the City. The Downtown
Redevelopment Committee indicated in its findings(section
1, page 5)that it believes several structures should be
preserved. Even if a building is replaced, the City will
attempt to relocate the business in Downtown or elsewhere
in Rosemount.
Q: What are some of the goals for revitalization?
A: We need to build on the historic character of Downtown
Rosemount to attract residents, shoppers, and visitors. For
more than a century, Downtown was the focus of life in
Rosemount. But development began to shift to open land
elsewhere in the community and nearby suburbs. Today
many Downtown businesses are successful. Others,
though, risk falling behind. If too many fall behind, it will hurt
Rosemount's image. And that could affect property values
and taxes reaching far beyond Downtown.
(See additional questions and answers about revitalization in a
brochure.)
Rosemount residents �I ,,.,,
indicated in a 2003 survey that
they favor by a 3-to-1 margin
making a priority out of
developing Downtown.
The Committee began its work
in summer 2003, reviewing
previous efforts to remake
Downtown Rosemount. (Click
here to read minutes of the Homer Tompkins of CPDC presented his
meetings.) Here's a summary team's ultimately successful concept to the
of what's been accomplished Port board
so far.
• August 2003: City Council appoints 13 people to the new
Downtown Redevelopment Committee, including
representatives from the City Council, standing City
commissions, residents, and business owners.
• Sentemher 2003• nrnani7atinnal mpatinn of nowntnwn
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City of Rosemount -- Downtown Revitalization update Page 3 of 4
Redevelopment Committee is held.
• October 2003: Downtown Committee hosts first open
house for the public to ask for guidance during the
Downtown revitalization process. The Committee receives
information about goals for the Downtown area, what people
like and don't like about the existing Downtown, and what
types of businesses they would want Downtown.
. October 2003: Committee members and other City officials
take a bus tour to see downtown development projects in
other Twin Cities metro area communities, including
Hopkins, St. Louis Park, and Maple Grove.
• November 2003: Committee meets to discuss a vision for
revitalization of Downtown. The Committee reviews results
from the first open house.
• December 2003: Committee hears consultant's report on
demand for retail, office, and residential development in the
Downtown Rosemount market area.
• December 2003: Business representatives on the
Committee meet with an ombudsman to discuss keeping
the business community involved in the revitalization
process.
• December 2003: City staff meets with planning consultant
to discuss constraints and opportunities within the
Downtown area. This information will be used to formulate
various alternatives for the Committee to review.
• February 2004: Second open house is hosted by the
Downtown Committee to ask for public feedback on the
alternatives for revitalization on a block by block basis
throughout Downtown. (Click here to read a summary of the
comments.)
• February 2004: Committee reviews public comments from
second open house and discusses further refinements to
the downtown concept framework.
• March 2004: Committee receives financial feasibility report
and first draft of a concept framework for revitalization.
(Click here to see a map of the latest concept.)
• April 2004: Committee hosts open forum to take public
questions and comments in preparation for final concept.
(Click here to download a sample of the public feedback
from the forum.)
• May 2004: Committee studies a draft of the
written revitalization framework.
• June 2004: Committee approves final version of the
framework. (The draft is available for download at the
bottom of this page.) Some committee members begin
work as a smaller group to consider more detailed
guidelines for design elements to be required for Downtown
projects.
• June 2004: Rosemount Port Authority approves
Framework.
• July 2004: City Council takes public comment and approves
Framework.
• September 2004: Port Authority issues request for
qualifications (RFQ)for Downtown projects.
• April 2005: Port Authority picks developer for negotiations
on first phase of Downtown Revitalization.
Questions or comments about the Downtown Redevelopment
Project should be directed to Kim Lindquist, Community
Development Director, at 651-322-2020.
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Cify of Rosemount -- Downtown Revitalization update Page 4 of 4
«+Federal publications on real estate_acquisition and
relocation
*+Dakota CDA_2004_rental market study
[Downtown revitalization newsletter-November 2004
[Request for Qualifications --September 2004
[Development Framework for Downtown(2.6 mb)
(FDowntown District Area
[Public comments summary from second open house
[Questions and answers about Downtown revitalization
(April 2004
Selection of questions and comments from April 12 Open
Foum
City of Rosemount.2875-145th Street West,Rosemount,MN 55468-4997(651)423-4411,TTY(651)423-6219.FAX(651)42
Home I Council goals for 2004-05 I Downtown Revitalization 142/52 study I Council/Commissions I Agendas and minutes I City De a
Services I Forms and brochures I News/quarterly newsletter I Weekly Update I Events I Employment I About Rosemount I Helpful Lin
pawtfed by
Oc
ItJI a
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Jun Z4 2BO5 17:01:46 Via Fax -> Administrator Page 082 Of 88Z
LMC
-Freda F ax-
c;u.ynn.u,Gnu•�w��tiy, A weekly legislative update from the League ofATinnesota Cities
June 24, 2005
Page 2
regular legislative session to include these economv. It found that the takings in this case
measures in their respective tax bills.With their were part of"a carefully considered
prominent presence on the working group, development plan, which was not adopted `to
there is no reason to doubt that the proposals benefit a particular class of individuals."'
could reemerge.
In its decision, the court reasserted that,
Since the end of the regular session and during "promoting economic development is a
the tax working group negotiations, Sen. traditional and long accepted governmental
Pogemiller had held strong to his desire to fully function."The justices also reaffirmed that
fund LGA, and he has connected the property local elected officials are in a better position
tax freeze to fully funding LGA. Late last than the judiciary to make decisions about what
w=eek, Rep. Krinkie indicated his strong desire public needs justify the use of eminent domain.
to couple any Senate LGA increase with a
property tax freeze. After this morning's vote, While the court recognizes economic
Sen. Pogemiller indicated to members of the development as a legitimate public purpose
working group these could both come up again when it comes to taking property through
for discussion. eminent domain, property rights groups are
likely continue the push at the state-level to
With less than a week before a partial state restrict local condemnation authority.
government shut down, the Tax Working
Group plans to meet again Saturday morning. The last two sessions, the Minnesota Auto
Stav tuned. Dealers Association has advocated for
sweeping changes to Minnesota's eminent
Questions? Contact either Jennifer O'Rourke domain statutes. Their legislation calls for two
at 651.281.1261 or 'carc�arlce iu.lm.�z.c:.c�r�,or significant changes to state law. First, their bill
Gary Carlson at 651.281.1255 or would allow the court to award payment of
�7'carisn;' 1m.nc.071,,, property owners' attorney fees in takings for
transportation purposes if the final award
U.S. Supreme Court reaffirms cities' exceeds the acquiring authority's last offer by
authority to take property for 20 percent. It also would require cities to prove
by a preponderance of evidence that a taking
economic development for redevelopment or economic development is
The U.S. Supreme Court issued a ruling on for a primarily public purpose.
Thursdav that reaffirms the longstanding power If enacted, this legislation would generate
of local governments to take property for expensive litigation, increase the cost of public
economic development. projects, and limit cities' use of eminent
domain to take property for critical economic
In a 5-4 decision, the court upheld the ability of development and redevelopment projects.
the City of New London, Connecticut to take
property to make way for a riverfront Questions? Contact Laura Offerdahl at
development project that would increase tax 651.281.1260 or Ic�i irczalai!i).lmnc;.c�r .
revenues, create jobs and improve the local
For more information on city legislative issues,contact any member of the League of Minnesota Cities Intergovernmental Relations team.
651.281.1200 or 800.925.1122
C,3rlson Comp,3nies
asks for Oakdale 's help
TWO properties are
holding up large
development project .
FUTURE DF,4ElDPMEHii .' '`
Aaron Sorenson FROPERir zoneo
_k�� s� �', � �•,`' � IkDUSTRUI OFFICE ' �` : � a ;.: y
news editor Fort�ownDru� � �
INFORM.... U
CNLPCT
UEVFl OPME�T DEPt t a 'c3. S 1 t z T'`
All that is standing in the way of
Carlson Companies developing a � t r 3 k
56-acre business park along Inter-
state 94 in Oakdale is two proper-
ties,along Hudson Boulevard that
Carlson has been unable to acquire
over the past year. ?,, � � F� �a « f
Citing a good faith effort by � r F i Ifi'i'i
Carlson Companies to negotiate a
purchase of those parcels, the Oak R� .�
dale City Council voted May 10 to Linda Baumeister/Review
begin eminent domain proceed- The Oaks Business Park,a future development being planned for the
area bordering Fourth Street to the north,Hudson Boulevard to the
ings. Such action means if Oakdale south, Helmo Avenue to the west and Ideal Avenue to the east,is
is unable to finalize a purchase tentatively scheduled to break ground in September or early October.
agreement on a 3.27-acre parcel
owned by the Haase family and a Carlson Companies' offer of city officials, he is confident that a
1.42-acre parcel owned by Adeline $302,000 was based on comparable purchase agreement can be reached
Rudeen, the city will go to the values for residential property. Con- without the use of eminent
courts in an attempt to force the sidering the land is being bought for domain.
property owners to sell the land to a commercial use, Rudeen said, the "It gets to be pretty expensive
the city. land should be valued as such. from both sides," he said: "I know
"It's so important in the big pic- "My mom has been a good mem- I don't want to litigate, and I don't
ture for Oakdale and the entire ber of this community, and it just think the city wants to either."
east metro for Carlson to come in doesn't seem right to let Carlson While the city attempts to
here,"Mayor Carmen Sarrack said. Companies come in and basically acquire the remaining two parcels,
"You're going to have over 2,000 just force her out of her home at Carlson Companies has been
jobs created by this project. Eco- however low a price they want." preparing plans for the Oaks Busi-
nomically, for the whole region, Stan Karwoski was the lone coun- ness Park, which will extend from
it's very important." cil member to vote against proceed- Helmo Avenue to the west to Ideal
Sarrack said he is hopeful the ing with eminent domain on the Avenue to the east, and from
city and the property owners will Rudeen property. He said Carlson Fourth Street to the north to Hud-
reach an agreement without Companies paid more than market son Boulevard to the south. Carl-
resorting to eminent domain. value for other pieces of land it son has completed an environmen-
"This is only a step that starts acquired for the business park and tal assessment worksheet, which
moving'this forward," Sarrack thought a similar offer should have includes noise, traffic and safety
said. been made to the Rudeens. studies.
Paul Rudeen, speaking on behalf "I really feel I work for the resi- The council is scheduled to
of his mother, Adeline, who was dents before I work for Carlson,"he review those studies at its July 26
also in attendance at the May 10 said. "I think we jumped too soon meeting. Construction on the site
council meeting, urged the City to go down this path. I think we could begin as early as September,
Council to vote against using emi- could have insisted that Carlson do City Administrator Craig Waldron
nent domain to acquire the home more to get the deal done them- said.
his mother has lived in for the past selves. Why should we be made to The proposed $86 million pro-
53 years. look like the bad guys?" ject, which will be built in phases,
"Frankly, my mom doesn't want The City Council was unani- is expected to include a mix of
to leave her home. She doesn't want mous in voting for eminent upscale office, industrial and ware-
to leave the home where she and domain proceedings to begin on house buildings. A multi-story
dad raised their seven kids,"he told the Haase property. Carlson origi- office building, serving as the head-
the City Council. "She doesn't want nally offered$474,500 for the land. quarters for a major regional or
to leave the house that's filled with The offer was later upped to national company,is also planned.
memories of her life with my dad $700,000. Daryl Haase and his sis- When the business park is fully
prior to his passing away." ter, Linda Pilgreen, who serve as developed over the next five to 10
Rudeen said his mother is willing trustees for their family's estate, years, it is expected to increase
to consider selling her property if a made a counter offer of$850,000. Oakdale's taxable market value by
fair market offer is made. He said Daryl Haase said after talking to $72 million.
iegisiatures across me county to _._ __a-_-_-_--
restrict the broad power of emi- struction of more expensive As the dissenting opinions should give citizens the right to
nent domain that exists under homes and the types of business- correctly surmised,the court has challenge a project's"public pur-
current law es favored by the City Council are essentially removed the require- pose"in court;it should set up a
In case you are one of the the City Council's plan for raising ment from the Constitution's Fifth system to give citizens back their
lucky individuals who have nev- more tax revenue for the city cof- Amendment that a government attorneys'fees if their challenge
er had your life,home or busi- Pers,then the city can condemn taking be for a"public use." is successful;and private proper-
ness devastated by the heavy any private property in order to "This cant happen in Amer- ty owners should be adequately
hand of government, you may make way for the new construc- ica,"you may say."Government compensated for these takings if
not know what the fuss is about. tion planned by another private can't just take from A and give to they occur. �p M
The U.S.Supreme Court recent- party. B,just because B will pay higher Minnesotans deserve protec
ly released its highly anticipated You can hear the chop-licking taxes. Well it can happen,it has tion from government run amok .
opinion on Kelo vs.New London, in city halls across the metro area. happened,and unless the Legis- The Legislature should pass emi-
Conn.,a decision that has deter- The decision essentially means lature acts,by the time you hear nent domain reform now.
mined the question of whether a that properties being condemned the knock on the door of your a :
government can use the power do not even need to be"blighted" friendly city administrator it will Scott lambert is the executive vice .:,
of eminent domain to condemn or harmful,as long as the new in- happen to you.And it will be too president andAlyssa Schlander is the
private property for private eco- tended use of the property by the late to do anything about it. director ofgovernment ajyWrsfor Dawn Villella/Bloomberg News
nomic development. new private party is generally Need more proof? Well, if the MinnesomAutomobileDealers The Best Buy headquarters building in Richfield: Homes and
The result is this:If the con- better/prettier/bigger. there was still any trace of them, Association. businesses were forced to make way.
City's economic revitalization is a valid ` ublic p purpose'
By Jim Miller penses paid to the property own- in writing the majority opin- Eminent domain is a tool location assistance."Fair"com- local government,and of the fin-
er.As early as 1837,the Supreme ion Justice John Paul Stevens rarely used to achieve a city's pensation is determined by an tent of local elected officials.
Imagine that you live in a city Court recognized that eminent clarified the definition,finding redevelopment.Duluth,for ex- independent commission or a Responsible cities histori-
- roughly the size of Austin, domain could be used to promote that economic revitalization is ample,was able to revitalize its jury.Additionally, through the cally have,and will continue to
Owatonna or Shakopee—that "the public interest."Before emi- a long-accepted governmental downtown waterfront area with- Kelo decision,the court has re- judiciously balance the rights
recently experienced the closure nent domain is exercised,a for- function and furthers a valid out needing to exert eminent affirmed that cities must have a of private property owners with
of a major business and the loss mal process must be completed, "public purpose." domain.However, it isn't hard well-conceived plan for exercise the economic interests of the
of 1,500 jobs.Imagine that the including public meetings and a The principle of eminent to imagine a scenario where, of eminent domain—it cannot entire community.
city is in economic distress,with formal court action. domain is designed to achieve but for the ability to use this be administered in an unjust or As the National League of
double-digit unemployment. Though media accounts of the greater community good. tool,two or three homeowners haphazard fashion. Cities notes in its brief on the
Now,imagine the opportunity the recent U.S.Supreme Court Without eminent domain, an could have hindered the build- Locally,the League of Minne- Kelo vs. City of New London
to remedy that distress. decision in Kelo vs.City of New individual homeowner or busi- ing of tie beautiful and popular sota Cities has worked with state case, "Local governments do
The community leaders of London have cast a negative ness owner could stand in the Canal Park District.What reper- lawmakers to draft legislation not exist to enrich a few,but to
New London,Conn.,saw such light on cities' use of eminent way of, or demand unreason- cussions would that have had that would make procedural solve problems and provide ser-
an opportunity and,thanks to domain, the court was simply able compensation to permit, for the economy of Duluth?How changes to further improve the 'vices that all citizens need and
a Supreme Court affirmation of reaffirming, not expanding, a project that could lift a neigh- many then-existing jobs would acquisition and eminent do- demand."
a long-standing legal precedent powers that local governments borhood or an entire city out of have been lost and new jobs un- main process for all involved. To deny local governments
that permits cities to exercise in Minnesota and throughout economic distress. realized—not only among retail The legislation would retain a the tool of eminent domain is
eminent domain,those leaders the nation have had,and exer- This is particularly impor- and hospitality businesses,but city's obligation to construct a to deny cities the opportunities
will have a chance to revitalize cised,for decades—the power tant for those cities needing in the construction industry? sound plan through a process to survive and flourish,to deny
the economy,steer their com- to acquire property for develop- to increase jobs or strengthen Displacing residents from of citizen involvement. jobs for citizens of economically
• munity in a positive direction ment if that development fulfills property tax bases,where a sin- their homes is serious business Those who assert that public depressed cities and towns,and
and improve the quality of life a public purpose. gle project—a factory,a retail and is exercised only as a last officials will be newly embold- to deny quality of life to our na-
for all New London residents. While petitioners in the case and housing center,a business resort.When eminent domain ened to indiscriminately"seize" tion's city-dwellers.
Eminent domain involves a argued that economic devel- complex—could make the dif- is used, the law requires cities property for the economic gain
city acquiring property with just opment.is. not a "public use" ference between economic re- to provide fair compensation of private interests have a fun- Jim Miller is executive director ofthe
compensation and relocation ex- under the Fifth Amendment, covery or austerity. for acquired property and re- damental misunderstanding of league ofMinnesota cities.
tegisiatures across me county to _..., ...... __ __o____-_--
restrict the broad power of emi- struction of more expensive As the dissenting opinions should give citizens the right to
nent domain that exists under homes and the types of business- correctly surmised,the court has challenge a project's"public pur-
current law es favored by the City Council are essentially removed the require- pose"in court;it should set up a
In case you are one of the the City Council's plan for raising ment from the Constitutions Fifth system to give citizens back their
lucky individuals who have nev- more tax revenue for the city cof- Amendment that a government attorneys'fees if their challenge
er had your life,home or busi- fers,then the city can condemn taking be for a"public use." is successful;and private proper-
ness devastated by the heavy any private property in order to "This can't happen in Amer- ty owners should be adequately
hand of government, you may make way for the new construc- ica,"you may say."Government compensated for these takings if
not know what the fuss is about. tion planned by another private can't just take from A and give to they occur.
The U.S.Supreme Court recent- party. B,just because B will pay higher Minnesotans deserve protec-
ly released its highly anticipated You can hear the chop-licking taxes."Well it can happen,it has tion from government run amok � k X74
opinion on Kelo vs.New London, in city halls across the metro area. happened,and unless the Legis- The Legislature should pass emi-
Conn.,a decision that has deter- The decision essentially means lature acts,by the time you hear nent domain reform now.
mined the question of whether a that properties being condemned the knock on the door of your ".
government can use the power do not even need to be"blighted" friendly city administrator it will Scott Lambert is the executive vice
of eminent domain to condemn or harmful,as long as the new in- happen to you.And it will be too president andAlyssa Schlander is theN>"= -
private property for private eco- tended use of the property by the late to do anything about it. director ofgovernment affairsfor Dawn Villella/Bloomberg News
nomic development. new private party is generally Need more proof? Well, if the MinnesotaAuwmobileDealers The Best Buy headquarters building in Richfield: Homes and
The result is this:If the con- better/prettier/bigger. there was still any trace of them, Association. businesses were forced to make way.
City's economic revitalization is a valid ` ublic p purpose'
By Jim Miller penses paid to the property own- in writing the majority opin- Eminent domain is a tool location assistance."Fair"com- local government,and of the fin-
er.As early as 1837,the Supreme ion Justice John Paul Stevens rarely used to achieve a city's pensation is determined by an tent of local elected officials.
Imagine that you live in a city Court recognized that eminent clarified the definition,finding redevelopment.Duluth,for ex- independent commission or a Responsible cities histori-
- roughly the size of Austin, domain could be used to promote that economic revitalization is ample,was able to revitalize its jury.Additionally, through the cally have,and will continue to
Owatonna or Shakopee—that "the public interest."Before emi- a long-accepted governmental downtown waterfront area with- Kelo decision,the court has re- judiciously balance the rights
recently experienced the closure nent domain is exercised,a for- function and furthers a valid out needing to exert eminent affirmed that cities must have a of private property owners with
of a major business and the loss mal process must be completed, "public purpose." domain. However,it isn't hard well-conceived plan for exercise the economic interests of the
of 1,500 jobs.Imagine that the including public meetings and a The principle of eminent to imagine a scenario where, of eminent domain—it cannot entire community.
city is in economic distress,with formal court action. domain is designed to achieve but for the ability to use this be administered in an unjust or As the National League of
double-digit unemployment. Though media accounts of the greater community good. tool,two or three homeowners haphazard fashion. Cities notes in its brief on the
Now,imagine the opportunity the recent U.S.Supreme Court Without eminent domain, an could have hindered the build- Locally,the League of Minne- Kelo vs. City of New London
to remedy that distress. decision in Kelo vs.City of New individual homeowner or busi- ing of tie beautiful and popular sota Cities has worked with state case, "Local governments do
The community leaders of London have cast a negative ness owner could stand in the Canal Park District.What reper- lawmakers to draft legislation not exist to enrich a few,but to
New London,Conn.,saw such light on cities' use of eminent way of, or demand unreason- cussions would that have had that would make procedural solve problems and provide ser-
an opportunity and,thanks to domain, the court was simply able compensation to permit, for the economy of Duluth?How changes to further improve the 'vices that all citizens need and
a Supreme Court affirmation of reaffirming, not expanding, a project that could lift a neigh- many then-existing jobs would acquisition and eminent do- demand."
a long-standing legal precedent powers that local governments borhood or an entire city out of have been lost and new jobs un- main process for all involved. To deny local governments
that permits cities to exercise in Minnesota and throughout economic distress. realized—not only among retail The legislation would retain a the tool of eminent domain is
eminent domain,those leaders the nation have had,and exer- This is particularly impor- and hospitality businesses,but city's obligation to construct a to deny cities the opportunities
will have a chance to revitalize cised,for decades—the power tant for those cities needing in the construction industry? sound plan through a process to survive and flourish,to deny
the economy, steer their com- to acquire property for develop- to increase jobs or strengthen Displacing residents from of citizen involvement. jobs for citizens of economically
munity in a positive direction ment if that development fulfills property tax bases,where a sin- their homes is serious business Those who assert that public depressed cities and towns,and
and improve the quality of life a public purpose. gle project—a factory,a retail and is exercised only as a last officials will be newly embold- to deny quality of life to our na-
for all New London residents. While petitioners in the case and housing center,a business resort.When eminent domain ened to indiscriminately"seize" tion's city-dwellers.
Eminent domain involves a argued that economic devel- complex—could make the dif- is used,the law requires cities property for the economic gain
city acquiring property with just opment.is not a "public use" ference between economic re- to provide fair compensation of private interests have a fun- Jim Miller is executive director ofthe
compensation and relocation ex- under the Fifth Amendment, covery or austerity. for acquired property and re- damental misunderstanding of League of Minnesota Cities.
iegislatures across me county to
restrict the broad power of emi- struction of more expensive As the dissenting opinions should give citizens the right to
nent domain that exists under homes and the types of business- correctly surmised,the court has challenge a project's"public pur-
current law es favored by the City Council are essentially removed the require- pose"in court;it should set up a
In case you are one of the the City Council's plan for raising ment from the Constitution's Fifth system to give citizens back their
lucky individuals who have nev- more tax revenue for the city cof- Amendment that a government attorneys'fees if their challenge
er had your life,home or busi- fers,then the city can condemn taking be for a"public use." is successful;and private proper-
ness devastated by the heavy any private property in order to "This can't happen in Amer- ty owners should be adequately
hand of government, you may make way for the new construc- ica,"you may say."Government compensated for these takings if
not know what the fuss is about. tion planned by another private cant just take from A and give to they occur. ` k 10
The U.S.Supreme Court recent- PahB,just because B will pay higher Minnesotans deserve rotec a
ly released its highly anticipated You can hear the chop-licking taxes."Well it can happen,it has tion from government run amok-
opinion
mokopinion on Kelo vs.New London, in city halls across the metro area. happened,and unless the Legis- The Legislature should pass emi-
Conn.,a decision that has deter- The decision essentially meAns lature acts,by the time you hear nent domain reform now. :.
mined the question of whether a that properties being condemned the knock on the door of your
government can use the power do not even need to be"blighted" friendly city administrator it will Scott Lambert is the executive vice
of eminent domain to condemn or harmful,as long as the new in- happen to you.And it will be too president andAlyssa Schiander is the
private property for private eco- tended use of the property by the late to do anything about it. director ofgovernmentapairs for Dawn Villella/Bloomberg News
nomic development. new private party is generally Need more proof? Well, if the MinnesotaAutomobileDealers The Best Buy headquarters building in Richfield: Homes and
The result is this:If the con- better/prettier/bigger. there was still any trace of them, Association. businesses were forced to make way.
City's economic revitalization is a valid ` ublic p purpose'
By Jim Miller penses paid to the property own- in writing the majority opin- Eminent domain is a tool location assistance."Fair"com- local government,and of the fin-
er.As early as 1837,the Supreme ion Justice John Paul Stevens rarely used to achieve a city's pensation is determined by an tent of local elected officials.
Imagine that you live in a city Court recognized that eminent clarified the definition,finding redevelopment.Duluth,for ex- independent commission or a Responsible cities histori-
- roughly the size of Austin, domain could be used to promote that economic revitalization is ample,was able to revitalize its jury.Additionally, through the cally have,and will continue to
Owatonna or Shakopee—that "the public interest."Before emi- a long-accepted governmental downtown waterfront area with- Kelo decision,the court has re- judiciously balance the rights
recently experienced the closure nent domain is exercised,a for- function and furthers a valid out needing to exert eminent affirmed that cities must have a of private property owners with
of a major business and the loss mal process must be completed, "public purpose." domain. However, it isn't hard well-conceived plan for exercise the economic interests of the
of 1,500 jobs.Imagine that the including public meetings and a The principle of eminent to imagine a scenario where, of eminent domain—it cannot entire community.
city is in economic distress,with formal court action. domain is designed to achieve but for the ability to use this be administered in an unjust or As the National League of
double-digit unemployment. Though media accounts of the greater community good. tool,two or three homeowners haphazard fashion. Cities notes in its brief on the
Now, imagine the opportunity the recent U.S.Supreme Court Without eminent domain, an could have hindered the build- Locally,the League of Minne- Kelo vs. City of New London
to remedy that distress. decision in Kelo vs.City of New individual homeowner or busi- ing of tlhe beautiful and popular sota Cities has worked with state case, "Local governments do
The community leaders of London have cast a negative ness owner could stand in the Canal Park District.What reper- lawmakers to draft legislation not exist to enrich a few,but to
New London,Conn.,saw such light on cities' use of eminent way of, or demand unreason- cussions would that have had that would make procedural solve problems and provide ser-
an opportunity and,thanks to domain, the court was simply able compensation to permit, for the economy of Duluth?How changes to further improve the 'vices that all citizens need and
a Supreme Court affirmation of reaffirming, not expanding, a project that could lift a neigh- many then-existing jobs would acquisition and eminent do- demand."
a long-standing legal precedent powers that local governments borhood or an entire city out of have been lost and new jobs un- main process for all involved. To deny local governments
that permits cities to exercise in Minnesota and throughout economic distress, realized—not only among retail The legislation would retain a the tool of eminent domain is
eminent domain,those leaders the nation have had,and exer- This is particularly impor- and hospitality businesses,but city's obligation to construct a to deny cities the opportunities
will have a chance to revitalize cised,for decades—the power tant for those cities needing in the construction industry? sound plan through a process to survive and flourish,to deny
the economy,steer their com- to acquire property for develop- to increase jobs or strengthen Displacing residents from of citizen involvement. jobs for citizens of economically
munity in a positive direction ment if that development fulfills property tax bases,where a sin- their homes is serious business Those who assert that public depressed cities and towns,and
and improve the quality of life a public purpose. gle project—a factory,a retail and is exercised only as a last officials will be newly embold- to deny quality of life to our na-
for all New London residents. While petitioners in the case and housing center,a business resort.When eminent domain ened to indiscriminately"seize" tion's city-dwellers.
Eminent domain involves a argued that economic devel- complex—could make the dif- is used,the law requires cities property for the economic gain
city acquiring property with just opment.is. not a "public use" ference between economic re- to provide fair compensation of private interests have a fun- Jim Miller is executive director of the
compensation and relocation ex- under the Fifth Amendment, covery or austerity. for acquired property and re- damental misunderstanding of League ofMinnesota Cities.
iegisiatures across me county to
restrict the broad power of emi- struction of more expensive As the dissenting opinions should give citizens the right to
nent domain that exists under homes and the types of business- correctly surmised,the court has challenge a project's"public pur-
current law es favored by the City Council are essentially removed the require- pose"in court;it should set up a
In case you are one of the the City Council's plan for raising ment from the Constitution's Fifth system to give citizens back their
lucky individuals who have nev- more tax revenue for the city cof- Amendment that a government attorneys'fees if their challenge
er had your life,home or busi- fers,then the city can condemn taking be for a"public use." is successful;and private proper-
ness devastated by the heavy any private property in order to "This can't happen in Amer- ty owners should be adequately
hand of government, you may make way for the new construc- ica,"you may say."Government compensated for these takings if
not know what the fuss is about. tion planned by another private cant just take from A and give to they occur. 10
The U.S.Supreme Court recent- party. B,just because B will pay higher Minnesotans deserve protec-
ly released its highly anticipated You can hear the chop-licking taxes."Well it can happen,it has tion from government run amok. -----
opinion on Kelo vs.New London, in city halls across the metro area. happened,and unless the Legis- The Legislature should pass emi-
Conn.,a decision that has deter- The decision essentially means lature acts,by the time you hear nent domain reform now
mined the question of whether a that properties being condemned the knock on the door of your
government can use the power do not even need to be"blighted" friendly city administrator it will Scott Lambert is the executive viae � �i�
of eminent domain to condemn or harmful,as long as the new in- happen to you.And it will be too presidentandnlyssa Schlander is the �»
private property for private eco- tended use of the property by the late to do anything about it. director ofgammmentajfairsfor Dawn Villella/Bloomberg News
nomic development. new private party is generally Need more proof? Well, if the Minnesota Automobile Dealers The Best Buy headquarters building in Richfield: Homes and
The result is this:If the con- better/prettier/bigger. there was still any trace of them, Association. businesses were forced to make way.
purpose'
Cit 's economic revitalization is a valid ` ublic
y a
By Jim Miller penses paid to the property own- in writing the majority opin- Eminent domain is a tool location assistance."Fair"com- local government,and of thefin-
er.As early as 1837,the Supreme ion Justice John Paul Stevens rarely used to achieve a city's pensation is determined by an tent of local elected officials.
Imagine that you live in a city Court recognized that eminent clarified the definition,finding redevelopment.Duluth,for ex- independent commission or a Responsible cities histori-
- roughly the size of Austin, domain could be used to promote that economic revitalization is ample,was able to revitalize its jury.Additionally, through the cally have,and will continue to
Owatonna or Shakopee—that "the public interest."Before emi- a long-accepted governmental downtown waterfront area with- Kelo decision,the court has re- judiciously balance the rights
recently experienced the closure nent domain is exercised,a for- function and furthers a valid out needing to exert eminent affirmed that cities must have a of private property owners with
of a major business and the loss mal process must be completed, "public purpose." domain.However,it isn't hard well-conceived plan for exercise the economic interests of the
of 1,500 jobs.Imagine that the including public meetings and a The principle of eminent to imagine a scenario where, of eminent domain—it cannot entire community.
city is in economic distress,with formal court action. domain is designed to achieve but for the ability to use this be administered in an unjust or As the National League of
double-digit unemployment. Though media accounts of the greater community good. tool,two or three homeowners haphazard fashion. Cities notes in its brief on the
Now,imagine the opportunity the recent U.S.Supreme Court Without eminent domain, an could have hindered the build- Locally,the League of Minne- Kelo vs. City of New London
to remedy that distress. decision in Kelo vs.City of New individual homeowner or busi- ing of the beautiful and popular sota Cities has worked with state case, "Local governments do
The community leaders of London have cast a negative ness owner could stand in the Canal Park District.What reper- lawmakers to draft legislation not exist to enrich a few,but to
New London,Conn.,saw such light on cities' use of eminent way of, or demand unreason- cussions would that have had that would make procedural solve problems and provide ser-
an opportunity and, thanks to domain, the court was simply able compensation to permit, for the economy of Duluth?How changes to further improve the 'vices that all citizens need and
a Supreme Court affirmation of reaffirming, not expanding, a project that could lift a neigh- many then-existing jobs would acquisition and eminent do- demand."
a long-standing legal precedent powers that local governments borhood or an entire city out of have been lost and new jobs un- main process for all involved. To deny local governments
that permits cities to exercise in Minnesota and throughout economic distress, realized—not only amongretail The legislation would retain a the tool of eminent domain is
eminent domain,those leaders the nation have had,and exer- This is particularly impor- and hospitality businesses,but city's obligation to construct a to deny cities the opportunities
will have a chance to revitalize cised,for decades—the power tant for those cities needing in the construction industry? sound plan through a process to survive and flourish,to deny
the economy,steer their com- to acquire property for develop- to increase jobs or strengthen Displacing residents from of citizen involvement. jobs for citizens of economically
munity in a positive direction ment if that development fulfills property tax bases,where a sin- their homes is serious business Those who assert that public depressed cities and towns,and
and improve the quality of life a public purpose. gle project—a factory,a retail and is exercised only as a last officials will be newly embold- to deny quality of life to our na-
for all New London residents. While petitioners in the case and housing center,a business resort.When eminent domain ened to indiscriminately"seize" tions city-dwellers.
Eminent domain involves a argued that economic devel- complex—could make the dif- is used,the law requires cities property for the economic gain
city acquiring property with just opment.is not a "public use" ference between economic re- to provide fair compensation of private interests have a fun- Jim Miller isexecutivedirector ofthe
compensation and relocation ex- under the Fifth Amendment, covery or austerity. for acquired property and re- damental misunderstanding of League ofMinnesota Cities.
legislatures across the county to ......... ... ..b. ...�.
restrict the broad power of emi- struction of more expensive As the dissenting opinions should give citizens the right to
nent domain that exists under homes and the types of business- correctly surmised,the court has challenge a project's"public put-
current law es favored by the City Council are essentially removed the require- pose"in court;it should set up a
In case you are one of the the City Council's plan for raising ment from the Constitution's Fifth system to give citizens back their
lucky individuals who have nev- more tax revenue for the city cof- Amendment that a government attorneys'fees if their challenge
er had your life,home or busi- fers,then the city can condemn taking be for a"public use." is successful;and private proper-
ness devastated by the heavy any private property in order to "This can't happen in Amer- ty owners should be adequately
hand of government, you may make way for the new construc- ica,"you may say."Government compensated for these takings if .
not know what the fuss is about. tion planned by another private cant lust take from A and give to they occur.
10' ,
The U.S.Supreme Court recent- party. B,just because B will pay higher Minnesotans deserve protec a � u
1 released its hi anticipated You can hear the chop-licking lickin taxes."Well it can happen,it has tion from government run amok `
Y highly P P-� g PP g
opinion on Kelo vs.New London, in cityhalls across the metro area. happened,and unless the Legis- The Legislature should pass emi-
Conn.,a decision that has deter- The decision essentially mems lature acts,by the time you hear nent domain reform now.
mined the question of whether a that properties being condemned the knock on the door of your
government can use the power do not even need to be"blighted" friendly city administrator it will Scott Lambert is the executive vice
of eminent domain to condemn or harmful,as long as the new in- happen to you.And it will be too presidmtandAlyssa Schkmder is the
private property for private eco- tended use of the property by the late to do anything about it. director ofgovernment affairsfor Dawn Villella/Bloomberg News
nomic development. new private party is generally Need more proof? Well, if the MinnesomAutomobileDealers The Best Buy headquarters building in Richfield: Homes and
The result is this:If the con- better/prettier/bigger. there was still any trace of them, Associatiom businesses were forced to make way.
City's economic revitalization is a valid ` ublicpurpose'
a
By Jim Miller penses paid to the property own- in writing the majority opin- Eminent domain is a tool location assistance."Fair"com- local government,and of the in-
er.As early as 1837,the Supreme ion Justice John Paul Stevens rarely used to achieve a city's pensation is determined by an tent of local elected officials.
Imagine that you live in a city Court recognized that eminent clarified the definition,finding redevelopment.Duluth,for ex- independent commission or a Responsible cities histori-
- roughly the size of Austin, domain could be used to promote that economic revitalization is ample,was able to revitalize its jury.Additionally, through the cally have,and will continue to
Owatonna or Shakopee—that "the public interest"Before emi- a long-accepted governmental downtown waterfront area with- Kelo decision,the court has re- judiciously balance the rights
recently experienced the closure nent domain is exercised,a for- function and furthers a valid out needing to exert eminent affirmed that cities must have a of private property owners with
of a major business and the loss mal process must be completed, "public purpose." domain. However,it isn't hard well-conceived plan for exercise the economic interests of the
of 1,500 jobs.Imagine that the including public meetings and a The principle of eminent to imagine a scenario where, of eminent domain—it cannot entire community.
city is in economic distress,with formal court action. domain is designed to achieve but for the ability to use this be administered in an unjust or As the National League of
double-digit unemployment. Though media accounts of the greater community good. tool,two or three homeowners haphazard fashion. Cities notes in its brief on the
Now,imagine the opportunity the recent U.S.Supreme Court Without eminent domain, an could have hindered the build- Locally,the League of Minne- Kelo vs. City of New London
to remedy that distress. decision in Kelo vs.City of New individual homeowner or busi- ing of the beautiful and popular sota Cities has worked with state case, "Local governments do
The community leaders of London have cast a negative ness owner could stand in the Canal Park District.What reper- lawmakers to draft legislation not exist to enrich a few,but to
New London,Conn.,saw such light on cities' use of eminent way of, or demand unreason- cussions would that have had that would make procedural solve problems and provide ser-
an opportunity and,thanks to domain, the court was simply able compensation to permit, for the economy of Duluth?How changes to further improve the 'vices that all citizens need and
a Supreme Court affirmation of reaffirming, not expanding, a project that could lift a neigh- many then-existing jobs would acquisition and eminent do- demand."
a long-standing legal precedent powers that local governments borhood or an entire city out of have been lost and new jobs un- main process for all involved. To deny local governments
that permits cities to exercise in Minnesota and throughout economic distress, realized—not only among retail The legislation would retain a the tool of eminent domain is
eminent domain,those leaders the nation have had,and exer- This is particularly impor- and hospitality businesses,but city's obligation to construct a to deny cities the opportunities
will have a chance to revitalize cised,for decades—the power tant for those cities needing in the construction industry? sound plan through a process to survive and flourish,to deny
the economy,steer their com- to acquire property for develop- to increase jobs or strengthen Displacing residents from of citizen involvement. jobs for citizens of economically
munity in a positive direction ment if that development fulfills property tax bases,where a sin- their homes is serious business Those who assert that public depressed cities and towns,and
and improve the quality of life a public purpose. gle project—a factory,a retail and is exercised only as a last officials will be newly embold- to deny quality of life to our na-
for all New London residents. While petitioners in the case and housing center,a business resort.When eminent domain ened to indiscriminately"seize" tion's city-dwellers.
Eminent domain involves a argued that economic devel- complex—could make the dif- is used,the law requires cities property for the economic gain
city acquiring property with just opment is not a "public use" ference between economic re- to provide fair compensation of private interests have a fun- Jim Miller is executive director ofthe
compensation and relocation ex- under the Fifth Amendment, covery or austerity. for acquired property and re- damental misunderstanding of League of Minnesota Cities.