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HomeMy WebLinkAboutRevised Design Plan for Downtown 7/16/98 A CONCEPTUAL DESIGN PLAN FOR THE CITY OF PRIOR LAKE DOWNTOWN Prepared by THE DOWNTOWN REDEVELOPMENT TASK FORCE REVISED July 16, 1998 - - --- - --- - -- -.-- -- - -- -- - SECTION I INTRODUCTION HISTORY The City of Prior Lake has considered the redevelopment of the downtown area several times in the past. One ofthe first efforts was in 1984, when the Governor's Design Team prepared the Prior Lake Design Study. The report contained an overview of the regional setting, including transportation facilities, shopping, parks and open spaces, and land use. The report suggested a number of actions which could be taken to enhance the City. These actions were grouped under six general headings. These were: 1) County Road 21 extension, 2) Recreational trail system, 3) Gateway and Priordale Mall access, 4) Lakefront Park, 5) Image and identity improvements, and 6) Downtown Redevelopment. Most of the report recommendations focused on the Downtown area as the central core of Prior Lake and included a large civic center complex which included a Community Center and City offices. The concept also included provisions for medium density and elderly housing. In 1991, several business owners in the downtown area came together to form the Towncenter Association. This association petitioned the City to redevelop the area they identified as the town center, which included all of Main Avenue from Pleasant Street to the last commercial property north of Dakota Street. The City, in cooperation with the Towncenter Association, developed more detailed redevelopment plans for the downtown area. These plans did not include recommendations for the redevelopment of specific properties. However, they did include extensive treatment ofthe streetscape, consisting of sidewalk improvements, lighting, storm sewer and street improvements, re- establishment of diagonal, on-street parking and a fountain. The total cost for these improvements was estimated at $780,000. In order to implement this proposal, the City proposed a 50/50 cost sharing arrangement. That is, the business owners, at least those who signed the petition, would agree to pay 50% ofthe cost, and the City would agree to pay the remainder. However, the petition was signed by only 41.7% of the owners of the linear frontage. That, coupled with the fact that the City owned 28.9% ofthe affected frontage, brought the City's share to well over 50% of the project cost. The City proposed to assess the costs to the property owners, which would have resulted in an average assessment of$II,300.00 per 50' wide lot. Once again, probably due to the costs, this plan was not implemented. Since the Design Team report and the work in 1991, a number of the recommendations have been accomplished. These include the following: . Improvement of the County Road 21/Highway 13 intersection . Extension of Pleasant Street to Highway 13 l:\econdev\eda\steercom\taskrpt.doc July 16, 1998 . Removal of the dump site from Lakefront Park . Installation of the traffic signal at Highway 13 and County Road 44 (Main Avenue) . Construction of the new County Road 21 bridge to allow boat passage, and to provide for decorative lights and railings . Some new commercial development in the downtown area . Completion ofthe Lakefront Park Master Plan . The passage of the referendum to allow for the construction of the Library/Community Resource Center . Establish the Economic Development Authority . Establish the Downtown Redevelopment Task Force . The installation of traffic signals at County Road 21 and Main Avenue are scheduled for installation in 1998 On May 21, 1997, the Prior Lake Economic Development Authority (EDA) hosted a workshop to discuss issues and opportunities relating to the proposed redevelopment of the Priordale Mall. Twenty-four (24) members of the community, representing businesses and citizens, participated in the workshop. A copy ofthe results of this workshop are attached to this report as Appendix A. There were some dominant themes which emerged as a result of these discussions. These included a desire for more diverse retail facilities and a need for a community gathering place that can be used for community events and activities. The EDA later determined the timing was not right for the Priorda1e Mall redevelopment. However, the prevailing themes can and should be incorporated into a the redevelopment of the downtown area. DOWNTOWN REDEVELOPMENT TASK FORCE In November, 1996, voters approved a referendum which called for the construction of a Library/Community Resource Center, improvements to Lakefront Park, and the purchase and development of a community recreational complex. The Economic Development Authority (EDA) recognized that the construction ofthe new library/resource center and the improvements to Lakefront Park offered the City a unique opportunity to create a redevelopment plan for the downtown area in concert with the design of the new buildings and park improvements. Based on this opportunity, the EDA established the Downtown Redevelopment Task Force. The Downtown Redevelopment Task Force is made up often members representing the EDA, the Parks Advisory Commission (PAC), the Planning Commission (PC), the Friends of the Library (FOL), and downtown business owners. The members of the Task Force are: Robert Barsness (EDA) Ron Ceminsky (PAC) Karl Dingman (Business Owner) Dawn Glatzel-Beck (FOL) 2 I:\econdev\eda\steercom\taskrpt.doc July 16, 1998 Tom Kedrowksi (EDA) Dick Kuykendall (PC) Jim Speiker (Business Owner) Coco Tremaine (Business Owner) Dick Underferth (EDA) Paul Viereck (Business Owner) Pat Heaney (pAC Alternate) Bill Criego (pC Alternate) The Task Force focused on traditional downtown Prior Lake. This area is generally considered the area adjacent to Main Avenue and bounded by Pleasant Street on the south, Lakefront Park on the north, Highway 13 on the east, and City Hall on the west. The map attached as Figure 1, illustrates the downtown area. The EDA asked the Downtown Redevelopment Task Force to submit written recommendations on the following topics: 1. Recommend a theme or "Look'; for the Prior Lake Downtown area. 2. Recommend the device or devices which should be used to create a visual connection between the Downtown areas. 3. Recommend the types of businesses desirable for inclusion and addition to the area. 4. Recommend standards (landscaping, exterior composition, parking, etc.) to be incorporated into the Downtown Redevelopment Plan. 5. Recommend what public financing incentives (if any) should be used to acquire land and buildings, encourage building construction and reimburse for compliance with the additional standards contemplated for the Downtown area. 6. Recommend modifications in pedestrian and vehicular traffic patterns to enhance development. The written recommendations developed by the Task Force will be used to undertake actual redevelopment efforts. THE DOWNTOWN TASK FORCE REPORT This report includes the recommendations of the Downtown Redevelopment Task Force. It is intended as a design guide for development in the downtown area. These guidelines apply to public improvements, such as streets, sidewalks, lighting and landscaping, as well as to private improvements, such as building facades, awnings and slgnage. This report differs from previous efforts in a number of ways. First of all, unlike the Prior Lake Design Study, this report focuses on the downtown geographical area. The EDA and the Task Force recognized there are limited funding sources available for redevelopment. The more narrow focus provides a realistic and obtainable goal. Secondly, this report incorporated much of the design work which was completed in 3 1:\econdev\eda\steercom\taskrpt.doc July 16, 1998 1991. The report goes further to define available funds, and to set up a phasing plan for the completion of this redevelopment. The report makes several recommendations for the development of the downtown area. These recommendations are divided into five categories, each of which will be discussed in later sections. The five categories include: . Land Uses . Design Guidelines . Streetscape Amenities and Public Improvements . Implementation of the plan . Funding Sources Finally, the report concludes by outlining the necessary approval process. 4 I: \econdev\eda\steercom\taskrpt.doc July 16,1998 FIGURE 1 \1 ~( ~! H .' ~~ r. I. ....crra ~ .' !s a. ..-. " ---. ~i I i ~ ., f ; , i : I ~S Ii . . . " ~~: I', :; = C. R. 21 ;1 ~ I I --- I,; I : I ~ A \fd.~.:: .~ ~. /, \ t J! 5 I:\econdev\eda\steercom\taskrpt.doc July 16, 1998 L\ l? - ... ~ SECTION II LAND USES The land uses allowed in an area generally dictate the character of the area. There are a wide variety of existing uses in the downtown area. These uses include offices, service uses (barber shops, beauty shops, etc.), retail, restaurants and bars, motor fuel stations, motor vehicle sales lots and motor vehicle repair lots. Also included within the downtown are City Hall, the library, and a day care center. A list of the existing land uses in the downtown area is included in Appendix B ofthis report. In order to determine the types of land uses which should be allowed in the downtown area, the following questions should be asked: . What type of traffic do the uses attract to the downtown area? . What type of storefront or curb appeal do these uses have? . How do these uses fit into your "vision" of the downtown area? The Task Force identified a vision for the downtown area as an identifiable town center. Through the design guidelines, they hope to establish a sense of place, and to personify a traditional small town "Main Street". The land uses which will promote this vision include those which encourage pedestrian activity, and which utilize open storefronts. Land uses are generally determined by the Zoning provisions. The Task Force reviewed a list of land uses and determined which uses should be permitted, which should be permitted with specific conditions, which should be permitted only after public review through the conditional use permit process, and which uses should not be permitted at all. The following table identifies the uses the Task Force believes are appropriate to the downtown area. Uses are identified by an "X" in the appropriate column. Multiple Family Dwellings X ot on Main Av. X (Not on street level X (Not on street level X X Elderly Housing Adult Day Care Group Day Care/Nursery School Medical/Dental Office Community Centers X X 6 l:\econdev\eda\steercom\taskrpt.doc July 16, 1998 Library X Museums/Art Galleries X Parks/Open Space X (passive parks permitted with limitations on SIze PolicelFire Stations X Public Service Structures (water X towers, etc. Animal Handling X (Small animals only, no outdoor activi Appliance, Small Engine and Bicycle X Repair (Limitations on outdoor use Banks X (No drive-up facilities Restaurants (with and without liquor) X Bed & Breakfast Establishments X Business/Trade Schools X Business Services X Clubs/Lodges X Convention & Exhibition Centers X Dry CleaninglLaundering X (Drop off and pick u facilities onl Food Service X Home Occupations X (Accessory to residential uses Hotel/Motel X Motor Fuel Stations X Offices X Printing Process/Supply X Private Entertainment Retail X Service Uses X Studios X Wholesale Uses Showrooms X 7 1:\econdev\eda\steercom\taskrpt.doc July 16, 1998 SECTION III DESIGN GUIDELINES PURPOSE The goal of the Downtown Design Plan is to create an identifiable town center, emphasizing a diversity of uses and creating a sense of "place" for the citizens of Prior Lake. The design of the downtown is intended to personify a traditional small town "Main Street". The scale and architectural qualities of the buildings are comfortable an inviting to pedestrian activities. The location of City Hall and the new library/community resource center can be used to facilitate the creation of a public square, which can accommodate a variety of uses in all seasons, such as Lakefront Days activities, small concerts, and informal gathering places for employees, patrons and residents of the downtown area. The street frontages in downtown, specifically along Main Avenue, should be pedestrian friendly, which would include wider sidewalks, narrower streets, and on-street parking. The design of this area should include streetscaping concepts such as banners, lighting, street furniture and landscaping or plantings. There are two components to the Downtown Design Plan. The first component involves improvements to the public right-of-way, often known as the "streetscape" component of the plan. Elements of the streetscape component include streets, trees, lighting and parking. Figure 2 illustrates these elements. The second component of the plan involves the design of buildings. This component includes building location, building materials, architectural features and signage. Each of these components is discussed below. STREETSCAPING The term "streetscape" generally refers to elements of the public domain, such as streets, trees, sidewalks, parking and lighting. A typical streetscape has four distinct elements. These elements are: 1. Traffic lanes 2. Parking lanes 3. Streetscape amenities 1 4. Pedestrian lanes The design of the traffic lanes must be primarily determined by engineering standards; however, the area along Main Avenue should typically provide two driving lanes and angled parking. The angled parking provides convenient, short term stalls, helps reduce traffic speeds, and provides a buffer between vehicular traffic and pedestrians. 8 l:\econdev\eda\steercom\taskrpt.doc July 16, 1998 FIGURE 2 . ~~r:':ed=:":atlSIl!3~c~at Uni:=~ s;:e-=~s . C.:::.si3:~!":~ s;:ac::::; S~ec:at =_~~e:-:s: . ViI1ar;~ :C~~=nC3tiC:": d I:"" S~-g~!: F....:l7':it:..:r:= . :el'l::.-:es . ll"2s:: .~~:::;c:~ . Sc!3s.:::::ai .::ar::e:-s , 'I " I ,I I' , 'I I' ,1 I' .=ar:<:~:; L.ar:e SL;~!S.:::Icel ~t:':er.:=-/ Z:~e: :- -~. :,:,::r::r:-::.::7': .=~~s::::;ti Z:::a: .:~::.. ":-::~::'7::':::"': 9 l:\econdev\eda\steercom\taskrpt.doc July 16, 1998 Streetscape amenities provide an additional buffer between vehicles and pedestrians. These amenities include street trees, planters and other landscaping, benches, lighting and banners. Plant materials can enhance the image and contribute to the visual continuity of the streetscape. A primary consideration in choosing street trees includes identifying trees with high branching characteristics that will not screen signage and building entrances. Seasonal and ornamental plantings should be used in decorative planters that can be easily maintained. Benches and other street furniture should be both functional and appropriate to the overall design of the area. Benches, for example, may be appropriate near restaurants or other similar uses. It is important that the placement of street furniture does not obstruct either the pedestrian or vehicular traffic. The design of street furniture should maintain the traditional feel ofthe area. Lighting in the downtown area should provide adequate levels of illumination but should not be of an intensity that provides obtrusive glare. The lighting standards should also reflect a more traditional style. If possible, this theme should be utilized for the traffic control lights at the intersection of CSAH 21 (Eagle Creek Avenue) and Main Avenue. Banners are an additional feature which can be used to enhance the downtown area. These banners may be seasonal or may promote the City or City events. The banners should not be used for commercial advertising, Banners should be located, if possible, on the light standards. The pedestrian lane is the area that facilitates the movement of pedestrians in the downtown area. This lane should remain free of obstruction, but may be enhanced through the use of decorative pavers. The design of the pavers can also be carried throughout the City. BUILDING DESIGN Building design involves not only architectural features and materials, but location and size of the building. Building design also includes accessory features such as signage and awnings. Figure 3 illustrates some of the elements of building design. To promote the pedestrian friendly atmosphere, buildings may be located with a 0' front yard setback, and a 0' side yard setback. The scale of the buildings should maintain the traditional Main Street character, and be no more than 2-3 stories in height. 10 I: \econdev\eda\steercom\taskrpt.doc July 16, 1998 FIGURE 3 Gwtlet:ll =_i;:: .:~r::::;:les . :,;omcle:s: J,.r:::iblc--:.-:;j C:-:at'3c:::t:"-: .=~~.:l===:: .':':a:O:::"'l SOl!!. :-:===::::;J. :-:i::-...:::::::::.::iicas. J.r.i=:.:l:::cn: lltc:.:::!:! .;rc::~-::t ~~!3iis. f'e'e:!S,:S~ .tt:::.-:=~ I!::' J.wninc;: and C4r.=cias: .=~c:~ "He3:'~at' ~r:3C::: fc: ::r-=:s~r..s :r:: .-a:~::::=:: at f::= amen; ::.::i:::.-:;:s. t 1 MocuL3dcn: Att::.:taacn of ;'ac::c~s. ...:~::t:=n of :aasLs. m~-:m ~f .:rc;:r:r:cn:s (re.r:;:.~ at !:C:::C3. 'NinCQW3. ~:. f ~( -f ?~~er.icn: Slr..::::.::e =~;:!er.':~.r:::s ac:;.anc ':::iic:::;:s :.., ;-:a:;:::. / ~n'-:;. ~"lC cuer:" -=- ct ~;;;;n~ au . U .. .. L" En I / ~ -!- :. !!: - r-:= O~~I .. I'''' -JiI' ~ -. ':------:1 ...~' Ali~:e~C__ _ __.._,.. _~ I ~i ~rnc::.::::~ ..c.__.cu ..rr::..-,_....e....... .. t "'1,.. ~ec;ri:s.. s:t::::: a.s JC::::::: ':.(::::'-::;. I ':: "NlnC:=NS. ;Wr.u:;:s. :l!:. ~ \ ~,:;-. \ ':"ne:s:.-=ac::::: 'j:4ns;:;ra~:"l' :f .=;c:::~ l::~~~:::;i: ~e'/ei (lar;:! 'Nir.::=.v ~==~ir:;~j. ,=t.::::C~~ 'NIr::::"N :::=a~:r:;.$. !~:: L c:;..r:et'4l ':es:;:: .=~::=:;:~a:s- :":2m~ie:s: ~:':::::-..::::aJ :: ::;~::~. ;~::~ :: :::-:e II ~ :::: ;:r:::-:;("/ Si;~. !~:. ~ ;~ r = ! t 11 I: \econdev\eda\steercom\taskrpt.doc July 16, 1998 The architectural style of the buildings should also continue the traditional theme and maintain the pedestrian friendly atmosphere. Preferred building materials include brick and stone, especially those varieties native to the area. Other commercial grade materials are allowed only as accent features in the design of the building. The buildings should also provide a diversity of form, such as concave entrances, detailing materials and fixtures, and other treatments that architecturally distinguish a building. Pitched and flat roofs are also allowed. Flat roofs must incorporate a parapet along the facades facing any public streets. Pitched roofs must complement the overall style and scale of the building. Any rooftop equipment must be screened. Buildings should not provide long expanses of blank, nonarticulated facades. The street level, or pedestrian level, of the buildings should be predominantly transparent, with storefront windows. Punched windows are strongly encouraged. The windows should incorporate a clear glazing; reflective glass is discouraged in any portion of the building. Awnings may be permitted on facades that face public streets. Fabric awning awnings are encouraged. Plastic, wood, or metal awnings should not be permitted. Awnings should have a consistent color and pattern scheme, and should complement awnings on adjacent buildings. Signage should be limited to one sign per primary facade of the building. The total area of the signage may not exceed 20% of the building facade. The sign may be distinctive, but must complement the overall architectural character of the building. Roof mounted signs are not permitted. 12 1: \econdev\eda\steercom\taskrpt.doc July 16, 1998 SECTION IV STREETS CAPE AMENITIES AND PUBLIC IMPROVEMENTS THE DOWNTOWN SKETCH PLAN The Downtown Sketch Plan, as proposed, consists of two major components. The first is the Schematic Land Use Plan for Downtown. This plan borrows from the Design Study and the conceptual work done for the Library by the library architects. Its' key features are the Library, the City Hall complex, potential housing development on the north side of Dakota Street, additional commercial development on the site of the current library and, in the future, redevelopment of the lumber yard property for commercial purposes. The second element of the Downtown Sketch Plan is the streetscape improvement proposed for Main Avenue. Again, this plan borrows from the work done in 1991 and incorporates many of the same design elements. The plan retains the idea of installing islands on Main Avenue to create angle parking, brick crosswalks, decorative street lighting, benches, trash containers, street trees and decorative sidewalks. Figures 4-9 illustrate the proposed design elements ofthis redevelopment plan. ASSUMPTIONS UPON WHICH IT IS BASED The sketch plan is the same plan previously drafted in 1991. Various elements of the 1991 plan have been combined on a single draft. Assumptions include: . The area of improvements covers both sides of Main Avenue from Pleasant Street to the lots 200' north of Dakota Street . Cost ofthe improvements was not a consideration in the design . Angle parking is incorporated onto Main Avenue INTENDED IMPROVEMENTS Intended improvements include angle parking with islands, new sidewalks, new light fixtures, landscaping, ornamental trees, banners, benches, trash receptacles and paved crosswalks. USE OF SKETCH PLAN The sketch plan is to serve as the base for determining what improvements are to be done as part of this project. It is intended to be modified as deemed by the Downtown Redevelopment Task Force. The sketch plan is to provide preliminary costs for determining the feasibility of the project. 13 I:\econdev\eda\steercom\taskrpt.doc July 16, 1998 FIGURE 4 tJ I ' ',: J1:/I.~-:-:7:~ I , '. -. , I I f f~ I I ,-,- ,T,....r; I , , ~.:...:;-......-:.~rT' 14 I: \econdev\eda \steercom\taskrpt.doc July 16, 1998 FIGURE 5 c. R 21 i - . i i. <II 4:j,E In- ,j i ,I::.::; /,';' 1: ---'- I I .1: :1::: I .... ":: ..:::: .../...... .- ...... . ...... ::: :;:::: :" :::::: ""/ ... .: . . ~ . :: :::::: ...... .... ":-: :.;;:: t, .... I I 1 ! I ::I )O~_ 'iJ' . f . ~..,.. ;:;'J 21.:,:1.:))) ') ~ [l:~~ . :V~.;'.' ~.. l:\econdev\ d \ July 16, 19~8 a steercom\taskrpt.doc 15 r ~- '1 ... r :::j:::, : <:k:: . .....1....... . . . .. . .. ... ..r..... ::. 'j I.... .. ./.: ': . ..1.:.. .. ca"., .l:~ $ -~ 'f" .-- ,t ..... i I . i I i -~_. FIGURE 6 C. R. 21 : .. o. '.. .' ~.J ii I :J , ~ \ ) I . DAKOTA STREET l:\econdev\eda\steercom\taskrpt.doc July 16, 1998 16 FIGURE 7 ~,,~~ ,," ./') ~ " , ....,1/ , -/.."?' ;' , l1.....J , ~? /' ~1 " '~"ly. , ~;",." " r-r:..~ ,/ .,s... , .;t1 ' $~/ '" 1:-1:;:;; , r.:,-A.....~; " t:f1ri'l') I . '-i#J ' \~..o;"'I:.ou1 , ' ~~= / t.')) I l'r.. I ;;~... I -.._ur;- '" ; I ll'~ I fit ' i J / i & i . ..es , " ~t : ii:;:' . , I ~J ! , ~ I JJ; , ... ' . , 1 0----1 1---'11 ' ..- I'! : J ' ~,. I ... I ~~ 1. ., 1: ; ~:~~. J<: i }]J .....~.. .' 0 I , -:-1_' ; : 1...~.... , . , .. ," , .: ' . , . , . , . . . .. I ~ r i , , , , , , ,'/ ..I--~- / i .. \ . ! I I l- I '1lt- "'1" I'" '." I:'::: :<~;r;;; :::!:i~~I~:i~~ ..::;:::: ::::: ......... ..... ....... ..... ......... ..... ':::::=/::::= .I.... 'l L .. 1': I ! I ./ / .1- ~ \ ---__...L ! ,....= : .~, ",\, 133C:!J.S ~ lO>i'tO 17 I: \econdev\eda\steercom\taskrpt.doc July 16, 1998 FIGURE 8 - '" II G'> o ---~ I"JAII\J AV~ ---It? :~I !~ ___JJ I ~ -----p I i~'1 lP I I ---~) I.H. 13 '" ( ! ! I: \econdev\eda\steercom\taskrpt.doc July 16, 1998 t:; J> ^ o J> (/) ---1 L___ 1--- I I I I I I l L___ 18 - ~ II (J'\ c T. H, 1 J I: \econdev\eda\steercom\taskrpt.doc July 16, 1998 FIGURE 9 u r n J> C/) J> Z -1 C/) -1 I I I I I I ~ I I I I I I , .. I I I /vfAIN A V r-- E: I ----- ---- --- -- 'l'r-- '.J, I 19 LIST OF IMPROVEMENTS BASED ON SKETCH PLAN The spreadsheet below details possible improvements and associated 1998 cost estimates. Improvements include lighting, landscaping, street and sidewalk improvements, and street furniture. Data sources for these costs include industry pamphlets for each of the individual elements, and engineer's estimates for the physical improvements. A very conservative approach was used in establishing these estimates. Rather than underestimating the cost of the project, it is more likely we have overestimated each cost. It is important to remember that the total cost is based on the quality and the quantity of each element. The cost may change if, for example, a more expensive light standard or a fewer number of benches is desired. Benches Decorative Light Fixtures Ornamental Trees Angle Parking Islands Decorative Crosswalk 32 Gallon Trash Receptacles (at each bench) Tree Guards (Tree Grates separate) Banners Nondecorative (cobra head) Lights Sidewalks (1,940 linear feet X 15' wide) Downtown Redevelopment Plan* Street & Utility Improvements (1,000 linear feet) 6 29 29 24 11 6 29 29 5 29,100 1 1,000 Total Cosmetic Improvements $760.00 $100.00/unit $4,000.00 included $600.00 $200.00/unit $10,000.00 included $5,000.00 included $478.00 $100.00/unit $150.00 $50.00/unit $150.00 $10.00/unit $3,500.00 included $5.00 included $50,000.00 included $175.00 included $5,160.00 $116,000.00 $23,200.00 $240,000.00 $55,000.00 $3,468.00 $5,800.00 $4,640.00 $17,500.00 $145,500.00 $50,000.00 $175,000.00 $841,268.00 * The Downtown Redevelopment Plan is a more comprehensive plan which will provide more detailed redevelopment plans and final cost estimates. Not included in the cost estimate: Acquisition of property Other Landscaping/Flowers/Sod/Rock Banner Fixtures (needed to attach banners to light poles) Fountains ($70,000 and $34,000, based on 1991 estimates) PLAN ELEMENTS Li!!htine: Figure 10 is an example of decorative lighting. NSP will install the lights, and, for a monthly fee, will also maintain and repair the fixtures. A total of twenty-nine decorative light fixtures are shown on the plan. There are also cobra head fixtures located at the intersection of County Road. 21 and Main Avenue, at the intersection of Dakota Street and Main Avenue and at the intersection of Pleasant Street and Main Avenue. 20 I:\econdev\eda\steercom\taskrpt.doc July 16, 1998 FIGURE 10 Maximum Spacing Re<::::Immendations ).<:::Im St"Jle Wactac:eIP':lle Heiant Hi~n ?\!rlOcmar.C3 11 CCW/~ 5FT 70W/15FT 1CQW/1SFT 1 sown SFT RE!':~3tion 60Fi SOFi 60Fi 75FT Ar!!:! of Usa Resicential 20:::-:- .lCFi SuFi C..:mmerc:aJ SOFi 20Fi" ....ll:-. ~_rl 3CFi' 'Usa different wattagelP,:le c::mbinations or iixrura :yr:;es for oecer !l~nting Cenotes cest :ecommencacicn O~O ~ ~ V 'r~LC7""-:"' Price Ust Lic:nt C.:Jst I :~' :1 :, Cesigner 70 Watt Acom 1 CO Watt Acom 1S0 Watt Acom 1 CO HP Acom saai.ao SSS.CO 670.CO i ,OSOeCO 'Ii .;!~ , :11 :/1' ,.'~~ ,II' il11 J , di@", P':lle 15 ,=T. Fil::ergiass 1 S FT. Aluminum 1,3S<l.,QO 1,3CO.00 Mast Arm 2 '=:xrure 364..00 ease P ~9-c3St C':lic:e!: Sc:a'"..ln 5- ssa.ac 332.aO .=-::yc:u:cnac: lensas are a'laiiatie ;n (;cc/'1 c:aar ane whice. o J Iii' :~j ::;1.1 'iI :nI :Ini :1 :1 ,il :11'i .1 ;~!" .1 * ./~ ~ i\:,. Ncr..":em S~tas ?':lwer C.::mc;any 4. ~ 4. ,'.lic:;tle! ,'./lad Minneacctis. ,"IN 5S.LG~ :;g~ 1;'11 G ~"":r:tac :n :e!C/c:ac :ac!!f' 10% :cst......:nsl.lmer ',vas:e 21 l:\econdev\eda\steercom\taskrpt.doc July 16, 1998 Landscapine: Landscaping includes finishing any disturbed areas with sod or decorative plantings. Ornamental trees are located between every light fixture. Planter boxes and shrubs could be used but are not included in the sketch plan. The cost estimates include prices for tree guards as illustrated in Figure 11. Not included in the plan are tree grates, placed along the ground. Furniture: Street furniture includes six benches and trash receptacles to be spaced along Main Avenue. The sample designs, shown in Figures 12 and 13, are finished or coated metal for durability and long wear. Prices vary depending on materials and style. Banners: Street banners, which will be attached to the light fixtures, are included in the costs. No design has been selected at this early stage. Several banner styles may be desired for various events or times of the year within the community. Banner fixtures will also be necessary to affix the banners to the light poles. Pedestrian Features: Sidewalk enhancements include paved decorative crosswalks and reconstruction of existing sidewalks. Other: The original 1991 plan identified other amenities, including fountains and sculptures. The two fountains shown on the 1991 redevelopment plan were estimated to cost $70,000 and $34,000. A sculpture was also discussed in the past, but no cost estimates or location is indicated on the 1991 plan. These items have not been included in the current plan or cost estimates. 22 I: \econdev\eda\steercom\taskrpt.doc July 16, 1998 FIGURE 11 iGi '-~?l1~>t;~i~.,ijWC4;>.(i1i'1W' _ ire! gt.:ardS are c::mmcnly !.ls~ with yeung trees to pre'lida prccec:fen and supoerrgrcwrh. Waca:.h '/ailey oiTers (We sL'jfes at tree gtr"d'dS. Tne lirsc is manuiac:urEc :icm lid" ;( i 1/2" !Jar jar stee! a:1d suepol'(~ 0'1 10-~uge she::! steel succor. ~ngs. Tne sec:nd ~pe is ma:1ufac::.:ree from 1/2" aiame:=: :00. '.'In!o:: is also sucporrc:c jy 10-;E!.!!;e she;: SLa:! supcer. ,ings. 3ou'1 SL'j1es arE sela :n~"e-:JiecE sec::ens ','/iiie:. jelt tege!Jie: :or 'fa:::y :nsralfa~ien ;'-:C ,'esevaL The tree ';uares ..a'le a heigr.r of ~'1e :e;: ana aie avariaei: ;n ail 'iame::iers ,:n:lagE i i O. Mode! iGi Oesc::otion Wgt. P~ica rz :bs. Si Jg,CO I~ar:a; :- ICe f;~a-C r";abash Valley 1998 Catalog 23 1:\econdev\eda\steercom\taskrpt.doc July 16, 1998 FIGURE 12 DuMor, Inc. Site Furnishings 1998 Catalog l:\econdev\eda\steercom\taskrpt.doc July 16, 1998 ill. BENCH 93 . SHIPl'ED I<..'iOG<ED DOWN . SUPPORTS OF 1-1/8" SQ!.JARE SOUD STI~L . SE.-\T SURFACE ONE-P!ECE CONSTitUCTION .\MTERlALS J. SeatingSurtaca: 1/4" x: 1-1/2" stel oar and 2-~/8" 0.0. steel :;;t;:e. ~ Succorts: 1-1/8" SQUare ste! bar. FaSteners: Stainless steL Finish: See page i:NO for c.'1oice of polyeste:- po\vde:- firjsh., (Dee? Red shown) 93-50 6' lor.g. 2 sU1J!=or..s. 239 Ibs. Sid) 9xO S' long, 2 supportS. 301 Ibs. SS3:J 24 FIGURE 13 -~-- ~.:. -~."'=-'-r~-.---'~ rr ~[ ~~_I_~ _ .r!'.f"~' ..-- - -.-..:---- :1 nrr ;1 I I if~. . . · · - f. "~ ~.I R i IJ, -~ - Tn2 HANDCRAFlc:'!) fP'=WOE,:; C:JA7Ei:J FINISH) jWcoa i SlZ6 Tr\2 32 Gallon TIll 2Z Gallon 0_ Z:~ Dia.x 3S~ Hign Z:Z~ Dia. x 3S~ i-iign 'N\': (.:sf' P-.a 120 4.:::.00 gS 439.00 Dive=si=i:ci Metal Fao=icato=s 1998 Catalog 25 I: \econdev\eda\steercom\taskrpt.doc July 16, 1998 SECTION V IMPLEMENTATION This report suggests the implementation of the Redevelopment Plan occur in two phases as follows. PHASE 1 The major activities in this phase include completion of planning for the Library and the actual construction of the facility. It also contemplates the preparation of a Redevelopment Plan for the Downtown. The Redevelopment Plan should be done at a sufficient level of detail to address individual properties and to provide a basis for detailed cost estimates. The Redevelopment Plan would also include specific requirements and regulations unique to the Downtown area which would be intended to achieve specific redevelopment objectives. Upon completion of the Redevelopment Plan, the major infrastructure improvements, including street and sidewalk reconstruction, crosswalk pavers and islands for angle parking, improvements would be completed. At the same time, the cosmetic improvements, including landscaping, street lights, banners, benches and trash receptacles, would be completed. The timing for the completion of this phase is approximately 18 to 24 months. The total costs associated with this phase are itemized in the table below: Benches Decorative Light Fixtures Ornamental Trees Angle Parking Islands Decorative Crosswalk 32 Gallon Trash Receptacles (at each bench) Tree Guards (Tree Grates separate) Banners Nondecorative (cobra head) Lights Sidewalks (1,940 linear feet X 15' wide) Downtown Redevelopment Plan* Street & Utility Improvements (1,000 linear feet) 6 29 29 24 11 6 29 29 5 29,100 1 1,000 Total Cosmetic Improvements PHASE 2 $760.00 $4,000.00 $600.00 $10,000.00 $5,000.00 $478.00 $150.00 $150.00 $3,500.00 $5.00 $50,000.00 $175.00 $100.00/unit included $200.00/unit included included $100.00/unit $50.00/unit $10.00/unit included included included included $5,160.00 $116,000.00 $23,200.00 $240,000.00 $55,000.00 $3,468.00 $5,800.00 $4,640.00 $17,500.00 $145,500.00 $50,000.00 $175,000.00 $841,268.00 This phase includes the potential acquisition and redevelopment of properties in the Downtown area which do not reflect the goals and objectives of the Downtown Redevelopment Plan. The Downtown Redevelopment Plan would specify which 26 I:\econdev\eda\steercom\taskrpt.doc July 16, 1998 properties were intended for redevelopment and suggest timelines, budgets and funding sources for such action. The completion of Phase 1 will provide the impetus for private redevelopment by creating an atmosphere which will attract developers and redevelopment proposals. While the Redevelopment Plan will elaborate on redevelopment potential, some of the properties which should be considered for redevelopment are: · Monnens Supply (lumber yard) · Conoco Station · Lutheran Brotherhood Building · City property, including the existing library and the parking lot · Merten's property on the north end of Main Avenue · Day Care Center · Single family dwelling at 16154 Main Avenue (north of Co no co Station) · Single family dwelling located at 16323 Main Avenue (south of radiator shop) 27 l:\econdev\eda\steercom\taskrpt.doc July 16, 1998 SECTION VI FUNDING SOURCES The section discusses financial options and development incentives and the various methods available to finance the Downtown Redevelopment improvements. This section will outline what financial resources are immediately and potentially available for use in the Downtown area. CASH Currently, there are two funds which have cash balances available for use. The first is an EDA fund which has a current balance of $51,892. The second is the Downtown TIP account which has a current balance of $87,438. The total of these two funds is $139,331. ANNUAL INCREMENT In 1996, the increment collected from the Downtown TIP district was $45,507 and in 1997, it was $41,278. Even if we assume that the average amount of increment available remains fixed at $40,000, this dollar amount could finance a TIP bond with a 5% interest rate in the amount of $31 0,000. ASSESSMENTS In 1991, the City conducted an extensive analysis of potential Downtown improvements based on an improvement plan developed by the City in conjunction with representatives from the Downtown business community which included detailed cost estimates. The improvements were broken down by two separate areas: the first was from Pleasant Avenue to the south side of Lakefront Park and the second was from that point north to the Kop farm. The project improvements which were contemplated included street reconstruction, landscaping, exposed aggregate sidewalks, islands, a fountain and decorative crosswalks. The total estimated cost of this project in 1991 was $780,000. At that time, it appears that the intent was to assess 60% of the street improvement cost and 100% of the landscaping and sidewalk costs. The projected front foot assessment was $226 per assessable foot. The assessment for a 50 foot lot would have been $11,300. One of the issues the Downtown Redevelopment Task Force needs to address is a recommendation concerning the role of assessments in financing whatever improvements are finally installed. In 1991, it appears that no consideration was given to utilizing TIP funds, probably due to the fact that the annual TIP increment was still dedicated to debt service at that time. The annual increment, as noted above, is now conservatively estimated at $40,000 per year which is available for eligible activities in the Downtown district. I:\econdev\eda\steercom\taskrpt.doc July 16, 1998 28 1998 FUNDING OPTIONS The following table summarizes the potential source of funds for the improvements and the proposed uses. The table shows that the available funds are not sufficient to accomplish all of the improvements called for in the Sketch Plan. The dollar amount for the TIP bond is a conservative estimate and assumes only modest growth in the increment received from the District over the 10 year life of the bond. The cost estimates for the improvements are either based on catalog prices, costs of comparable projects or staff estimates based on experience. These are also intended to be conservative and staff has attempted to err on the high side. There are three main alternatives available to address this funding gap: (1) the scale of the project could be reduced to the point where the funds are adequate; (2) the City could pursue a Demonstration Grant from the Metropolitan Council through the Livable Communities Program; and (3) the differential amount could be assessed to benefiting properties Downtown. Additional financial options and development incentives are addressed in Appendix C to this report. If the third alternative is chosen, there are 1,905 linear feet of assessable frontage. This is the total frontage of 2,678 feet less the 773 feet owned by the City. The total assessment amount would be $177.00 per front foot, or $8,850.00 for an average 50' wide lot. Street assessments are generally spread out over a 10 year period with 8% interest. Based on these figures, the average monthly cost (principal and interest) to a business owner on a 50' wide lot would be $120.95. This assessment represents 40% of the total cost of the project. Through the use of TIP funds, CIP funds and bonding, the City will pay 60% of the total costs. In a commercial area, 100% of the cost of public improvements are generally assessed to the property owners. In residential areas, the City will pay 60% of the cost of public improvements, and assess 40% to the benefiting properties. The assessment of 40% of the project costs represents a substantial reduction from the standard assessment policy in commercial areas, and is similar to the assessment cost of a street improvement project in a residential area. 29 I: \econdev\eda\steercom\taskrpt.doc July 16, 1998 SECTION VII CONCLUSION APPROVAL PROCESS Following approval of this report by the Downtown Redevelopment Task Force, this report shall be transmitted to the Economic Development Authority for review and approval. While not required, the EDA may wish to conduct public hearings to receive input from downtown business owners and Prior Lake residents on the design proposals and the funding alternatives. Once the EDA has approved the report, it must be transmitted to the City Council for review and approval. IMPLEMENTATION Once the City Council has approved the report, the following steps must be taken in order to implement the actual improvements. I) The EDA should engage a consultant to assist in the preparation of the Downtown Redevelopment Plan. · Formal approval of the Redevelopment Plan, a process similar to the approval of this report, will also be required. Council approval will classify this report as one of the City's official documents, which can then be referenced in the City's Capital Improvements Program, the Comprehensive Plan, and the Zoning and Subdivision Ordinances. · The elements of this report, and the Downtown Redevelopment Plan may also be incorporated into the City Zoning Ordinance. This action will require a public hearing and review by the Planning Commission, and approval by the City Council. 2) The City Council may authorize the design and installation of the physical improvements. The Downtown Redevelopment Plan will be used to design the specific public improvements required to implement this plan. 30 I: \econdev\eda\steercom\taskrpt.doc July 16, 1998 APPENDIX A RESULTS OF THE PRIORDALE MALL WORKSHOP TO: Prior Lake EDA & Workshop Participants FROM: Roger Guenette DATE: June 28, 1997 RE: Results Of Workshop On Commercial Redevelopment On Tuesday, May 21, 1997, the Prior Lake EDA hosted a workshop to discuss issues and opportunities relating to the proposed redevelopment of the Priordale Mall and adjacent property. There were 24 community members present who participated. The participants broke into four work groups each seeking to address the following questions: 1) What type of commercial/retail development should exist at this location (Specify types of uses, structures or design)? 2) What issues must be addressed to assure the implementation of this redevelopment concept (Le. preferred design, relationship to other commercial areas)? 3) To what extent should the City be a financial participant? Participants were asked to use vision and be wfree thinking" in suggesting development options. The summary results from each of the four work groups are listed as follows: GROUP 1 To develop as a retail center with mixed uses and anchor, preferably a Target-type store. IssueslLimitations - Lack of critical population - Proximity to existing residential development - Image configuration, parking facades, cold dead feeling, access - Lack of articulated long term vision for community to develop - Money issues GROUP 2 Type of commercial development - Anchor tenant - No grocery - Movie/entertainment - Banquet facility - Mass merchandise (Wal-MartlTarget) - Accommodate existing businesses 31 I: \econdev\eda\steercom\taskrpt.doc July 16, 1998 Secondary tenants - Bagel shop - Coffee shop - Cleaners - Specialty shops - Sporting goods Central or Core Design - Community events - City holiday tree - Community garden - Internal court yard Issues - Smooth transition for current businesses - Easy access to property - Cost to community GROUP 3 Type of Commercial Development - Variety store - Sporting goods - Jewelry Sto re - Appliance store - Movie theater - Restaurant/Bar - Barber/Beauty shop - Card shop Incorporate existing businesses in development - Bakery - Quality antiques - Entertainment uses - Coffee shop - Youth or related teenslbusiness center - Bike shop/Exercise equipment - Unique craft shops - Small scale factory outlet shops (youth oriented) - Major anchor to attract larger volume clothing stores Public open spaces throughout center - Patio tables - Ice rink, warming house - Fountains - Gardens - Gazebo 32 l:\econdev\eda\steercom\taskrpt.doc July 16, 1998 ." GROUP 4 - Smaller retail outlets - Medium size building which concentrates businesses - Mixed use business - theater . Multi-purpose restaurant. Applebee's . Multi-story first floor - retail. second floor office or municipal government office . Dime store - gifts. etc. . Area for professional office - first level retail - second level office - Anchor - Big Box Priorities . Mixed use/theater . Anchor - Professional office . Small outlets - Housing Issues - Access - Design - Tenant demand . Community support/political attitude . People mover/traffic - Dealing with existing businesses so they stay . Impact of downtown - Community identity Priority Issues - Design - Tenant demand - Financial . Community support - Access In viewing these results and listening to the ensuing discussion that occurred when the four groups reconvened into the general meeting the following themes became apparent: · There is a desire to have better quality retail facilities with a greater diversity of retail businesses (e.g. specialty shops). · The redevelopment concept should offer options for residents of all ages. Facilities such as a health club, teen center, pool hall were specifically mentioned. There was a desire to have the retail complex encompass mixed uses and serve as a meeting place for community events/activities. · Regarding an anchor tenant, it was recommended that a department store ala Target be included. When the participants were asked about a supermarket serving as the anchor tenant there were several vocal objections and the prevailing sentiment was that a grocery store would be a poor I: \econdev\eda\steercom\taskrpt.doc July 16, 1998 33 choice for the development. · There was a concern that the existing retailers not be ~pushed out" as a result of the redevelopment. · The existing road network and parking must be upgraded to make the area more accessible and user friendly. · Entertainment options such as a movie theater, additional restaurants and book store were recommended to be included. · There was general consensus that the City should be a financial participant in order to promote quality redevelopment. Although one participant believed that the entire process should be privately financed. I have attempted to provide an accurate and objective summary of the proceedings as they occurred. If anyone in attendance believes that this information is not representative of what transpired, please contact City Manager Frank Boyles (612) 447-4230 and relate your objection. I: \econdev\eda\steercom\taskrpt.doc July 16, 1998 34 APPENDIX B LIST OF EXISTING BUSINESSES IN THE DOWNTOWN AREA AS OF NOVEMBER, 1997 4590 COLORADO ST SINGLE FAMILY DWELLING L 13-14, B 13 PLAT OF PRIOR LAKE 4616 COLORADO ST SINGLE FAMILY DWELLING L 13-14, B 13, PLAT OF PRIOR LAKE 4636 COLORADO ST SINGLE F AMIL Y DWELLING L 11 & 12, B 13, PLAT OF PRIOR LAKE 4646 COLORADO ST BRUCE CAPRA INSURANCE L 8-10, B 13, PLAT OF PRIOR LAKE 4671 COLORADO ST COLORADO STREET STATION L 3-5, B 15, PLAT OF PRIOR LAKE 4690 COLORADO ST SCOTT-RICE TELEPHONE CO Ll-7 B 13 PLATOFPRIORLAKE o DAKOTA ST PUBLIC UTILITY N30FEETOF E40FEETOF 11 & E 40 FEET 12-4 4667 DAKOTA ST DAKOTA PROFESSIONAL E45 FEET LOTS 1,2 & 3 - 5 BUILDING. 4730 DAKOTA ST LITTLE LAKERS MONTESSORI W 84 FEET LOTS 5 & 6 - 9 SCHOOL 4769 DAKOTA ST "THE MAIN OFFICE" A) DAKOTA HOUSING B) FRANK 1. WICKER ASSOC. C) FOR RENT D A.S.!. USA INe. 4772 DAKOTA ST ORTH SIDE 4773 DAKOTA ST PAT'S BEAUTY SHOP 4775 DAKOTA ST (SOUTH SIDE) OBERHAMER DEALER 4781 DAKOTA ST (SOUTH SIDE) RES. RENTAL 4785 DAKOTA ST (SOUTH SIDE) REMOTE EFFECTS SYSTEMS, INC. 4786 DAKOTA ST STORAGE BLDG. TANKS E ERLY 45 FEET OF 7-10 4792 DAKOTA ST DENTIST DR. RM BLISS W 55 FEET OF 4,5,6-10 FAMILY DENTAL CARE 4805 DAKOTA ST AMOCO OIL STATION LOT 1, BLOCK 1 P.F. INC. ADDITION EX W 55 FEET OF 4 5 & 6-10 I:\econdev\eda\steercom\taskrpt.doc July 16, 1998 35 16111 MAIN AVE SINGLE F AMIL Y JIM GffiBISH A) DAN'S AUTO BODY B STAR TRmUNE KUSTOM KOLOR PEARSONS AUTO BODY PEARSONS AUTO BODY GARY GffiBISH PRIOR LAKE MOTORS GARY GffiBISH PROFINISHERS AUTO BODY SINGLE F AMIL Y 16113 MAIN AVE 16115 MAIN AVE 16117 MAIN AVE 16125 MAIN AVE 16151 MAIN AVE NELSON WOODCRAFT VIERECK FIREPLACE SALES RESIDENTIAL J & B FURNITURE APT UNIT 4 PLEX LEGAL SERVICES 16154 MAIN AVE 16161 MAIN AVE 16173 MAIN AVE 16174 MAIN AVE 16176 MAIN AVE 16186 MAIN AVE CONOCO STA nON SPEIKER BLDG A) SPEIKER PL AGENCY B) SPEIKER TAX SERVICE C) ANDERSON FAMILY HOMES D ALLIED INSURANCE CAR UEST LIFE EXTENSION, WEIGHT LOSS & TRAINING CENTER HAIRMATEITAN MATE PUBLIC PARKING LOT O'MALLEYS PARKING LOT O'MALLEYS ON MAIN MONNENS SUPPLY 16189 MAIN AVE 16197 MAIN AVE 16203 MAIN AVE 16211 MAIN AVE 16211 MAIN AVE 16211 MAIN AVE 16214 MAIN AVE 16220 MAIN AVE THE FRANKLIN COMPANIES PRIOR LAKE PROF. BLDG. WILLOW GREEN NATURAL CRAFTS (PRIOR LAKE PROF. BLDG. LUTHERAN BROTHERHOOD PRIOR LAKE PROF. BLDG LffiRARY 16224 MAIN AVE 16228 MAIN AVE 16244 MAIN AVE 1:\econdev\eda\steercom\taskrpt.doc July 16, 1998 36 35 1 22 13.33 S 13.33 A OF CONDO 1014 MAIN ST PLAZA A I-CONDO 1014 MAIN ST PLAZA A 2-CONDO 1014 MAIN ST PLAZA A 3-CONDO 1014 MAIN ST PLAZA A 4-CONDO 1014 MAIN ST PLAZA A LOTS 10-11, BLOCK 10, ORIGINAL PLAT N'ERL Y 2 FEET OF 8 ALL OF 9-10 LOTS 3 & 4-9 S'ERLY 48 FEET OF 8-10 W 100 FEET OF 7-10 25 FEET OF E 75 FEET OF 1-4 S 13 FEET OF N 38 FEET OF E 75 FEETOF 1-4 E 67 FEET OF 5 & 6-9 LOT 1 EX N 25 FEET OF E 75 FEET ALL EX S 13 FEET OF N 38 FEET OF E 75 FEET OF 1 E 38 FEET OF S 15 FEET OF 3 & N 10 FEET OF E 38 FEET OF 4-4 12-3 N 1/2 OF 11-3 S 1/2 OF 11-3 S 1/2 OF 7-3 8-3 EX. N 1 FOOT 9 & N 1 FOOT OF 8-3 4-4 LOT 3 EX E 38 FEET OF S 15 FEET S 40 FEET OF LOT 4 & N 1/2 OF 5-4 STRIP 50 FEET X 151 FEET LOT 6 BLK4&H&DRR S 1/2 OF 5 & N 35 FEET OF 6-4 S 15 FEET OF 6-4 S 27.5 FEET OF 7-4 EX 20 FEET X 20 FEET 16244 MAIN AVE MINNEGASCO 7-4 20 FEET X 20 FEET IN 16281 MAIN AVE CARLSON HARDWARE & N'ERLY 1/2 OF 2 S'ERLY 3-14 FRAMED IN GLORY OUT LOT A LANGHORST ADD 16292 MAIN AVE DAN'S AUTO REPAIR 16298 MAIN AVE SEBASTIAN AUTOMOTIVE 1-2 15 16299 MAIN AVE EXTRA INNINGS N'ERLY 5 FEET OF 1-1 CATES S'ERLY 1/2 OF 2-14 16306 MAIN AVE VFW POST 6208 N 48 FEET OF 1-2 OF 2 CATES E 14 FEET OF 3-2 CATES LOT 3 & 4 & E 30 FEET OF 5-2 CATES 16309 MAIN AVE BODY SHOP RADIATOR & PlO 1-1 COM. SW COM OF 1 AUTO REPAIR 16318 MAIN AVE JOE'S PIZZA PARLOR 2-2 N 29.25 FEET OF S 81 FEET LOT 1 16323 MAIN AVE RESIDENCE & PARKING LOT N 1/2 LOT 2 BLK 1 CATES 16328 MAIN AVE DG SHOEMAKER & CO PIO 1 & 2 BLK 2 LYING SCATES 4717 PLEASANT ST PRIOR LAKE FLORIST L 1 & E 40' L2, B 3, CATES ADDITION 4770 PLEASANT ST VIDEO UPDATE 4770 PLEASANT ST FONGS RESTAURANT 37 l:\econdev\eda\steercom\taskrpt.doc July 16,1998 APPENDIX C POTENTIAL FINANCIAL OPTIONS AND DEVELOPMENT INCENTIVES In any process where a City or Economic Development Authority provides assistance to a private developer in developing or redeveloping property, there are a variety of methods by which assistance can be provided, beyond simply writing the developer a check for some or all of his costs. Following is a summary of various methods which have been used by other communities. Tax Increment Financin~ (TIF1: TIP is probably the most common form of assistance offered by communities. In general, TIF is a method of financing qualifying costs of the project from the increased property taxes generated from the project that would not occur "but for" the assistance provided by the City. The difference between the existing property taxes on a parcel of land which is divided among the City, county and school district and the increased property taxes which are used exclusively by the EDA or City for a term of years to finance qualifying costs is known as the tax increment. The taxes generated from the parcel before development continue to be distributed to the respective taxing authorities. Any increased property taxes beyond this base amount are available for assisting the project. Proceeds from the tax increments received can be used for a wide variety of activities including property acquisition, site clearance, streets and utilities, relocation, rehabilitation, appraisals, legal fees and so on. Tax Abatement: Tax Abatement is a relatively new tool for cities to use. It allows a city, county or school district to abate all or a portion of taxes levied against property by the governmental unit. This is an alternative for cities to use in place of TIP to allow assistance to occur without the restrictions imposed by the use of TIP. The amount of taxes abated may not exceed the greater of (a) 5% of the current levy, or (b) $100,000. The abatement may be based on (1) a specific dollar amount per year or in total, (2) the increase in taxes resulting from improvement of the property, (3) the increase in taxes resulting from increases in the market value or tax capacity of the property, or (4) in any other manner deemed appropriate. The City may grant abatements for a maximum of 10 years. Revolvin~ Loan Funds: Revolving funds are established with revenues from various sources, and loans are then made to assist various development activities. The City or EDA can determine criteria and eligibility for use of these funds. Typically, the loans are made at below-market interest rates. The fund is built up over time through repayment of the loans with interest. Reduction or Deferment of Assessments: The City can agree to either reduce assessments for project improvements or defer the time for repayment of the assessments to occur. This does require some other method of financing the unpaid or deferred assessments. 38 I:\econdev\eda\steercom\taskrpt.doc July 16, 1998 Reduction or Deferment of Fees: As above, the City can agree to reduce or defer fees charged by the City such as park dedication fees, sewer and water area charges, water tower fees and so on. Land Assembly: The City can undertake the assembly of land needed for a development and incur the costs associated with that activity. This eliminates the assembly cost for the developer and gives him one less thing to worry about. Annual Appropriation: The City can make an annual appropriation from City funds and dedicate that appropriation to specific development purposes. This reduces the availability of City dollars for other activities carried out by the City. Economic Development Authority Powers: EDA's have broad authority to undertake development activities under State law. In some cases, the exercise of one or more of these powers on behalf of a developer might remove an obstacle to the development which the developer would not otherwise be able to overcome. The land assembly process discussed above is an example. Structure of the Transaction: In some cases, the structure of the deal may be all the assistance required to make a project feasible. This can include modifications in payment schedules, deferral of fees and assessments, reduced developer equity participation and so on. Public or Private Utilities: In some cases, utility companies have assistance programs which are available to assist in industrial and commercial development. The company's motivation is to generate demand for their products and services. Floor Area Ratio: Allowing a developer to construct a project at a higher density may be all that is needed to reach feasibility. Phasin2 of Site Requirements: This involves deferring the provision of certain site improvements, such as landscaping, to a later date, thereby allowing the developer to concentrate expenditures on start-up activities essential to the business. Provision of Streets and Utilities: Normally, developers are responsible for financing and constructing infrastructure improvements such as streets and utilities. The City could provide these items through a public improvement project and assess the cost, thereby reducing the up-front costs to the developer. 39 l:\econdev\eda\steercom\taskrpt.doc July 16, 1998