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MEETING DATE:
AGENDA #:
PREPARED BY:
AGENDA ITEM:
DISCUSSION:
CITY COUNCIL AGENDA REPORT
DECEMBER 17, 2001
SA
DONALD RYE, PLANNING DIRECTOR
CONSIDER APPROVAL OF RESOLUTION MODIFYING
DEVELOPMENT DISTRICT 1 AND ESTABLISHING TAX
INCREMENT FINANCING DISTRICT 1-3 (LAKEFRONT
PLAZA)
History On February 27, 2001, the Council adopted a resolution(copy
attached) approving in concept the use of tax increment financing
(TIP) to assist in the development of a mixed-use senior housing and
retail facility in the Downtown. The project, called Lakefront Plaza,
will contain 79 market rate condominium units for seniors 55 years of
age and older and 12,000 square feet of retail. In addition, significant
street and utility reconstruction is contemplated in the Downtown area
in conjunction with this project. On April 16, 2001, the Council
ordered the preparation of a TIF Plan and set a public hearing date of
June 4th on the Plan. The public hearing is required by statute before a
TIP Plan can be adopted and a TIF District created. The County and
school district have received a notice of the hearing and a copy of the
TIP Plan pursuant to state statutes. The hearing was held on June 4'\
2001. The hearing was closed at that time but no action was taken to
approve the TIP Plan and modifications to Development District 1
because of the uncertainty at the time over the effect of pending tax
law changes. A copy of the public hearing draft of the TIP Plan is
attached. Since the public hearing was held, more information has
become available regarding the project and these changes have been
incorporated in the TIF Plan. It was determined the changes in market
value that occurred as a result of adding a unit and increasing the price
did not constitute a material change in the TIP Plan and, consequently,
I the opinion of Bond Counsel Mary Ippel, another public hearing was
unnecessary .
Discussion It is necessary to expand the area of Development District
1 in order to allow for the expenditure of TIF revenues outside the TIP
District for street and utility reconstruction. TIF District 1-3, which
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AN EQUAL OPPORTUNITY EMPLOYER
will be established as a result, consists of seven parcels on Block 9,
Original Townsite, having an area of approximately 77,000 square
feet. The location of the District is shown on the graphic in the
attached TIF Plan. These parcels have been combined into one parcel
for development purposes.
The applicants have provided a detailed pro forma showing the total
cost of the project to be $12,146,058. The County Appraiser, based
upon the pro forma, has projected the value of the building and
property to be $11,750,000. The residential value is $10,550,000 and
the commercial value is $1,200,000. The TIF Plan has assumed an
annual increment of $149,720. The applicants have requested
assistance totaling $950,000 that will be used to assist in property
acquisition, site clearance and preparation and installation of utilities.
The TIF Plan also provides for City retention of 25% of the increment
to be generated by the project that will be used to assist in the cost of
street and utility reconstruction in the Downtown area. This will
generate $382,000 for City use. The increment available to the
developer will be approximately $945,000.
At the Planning Commission meeting on May 29, 2001, the
Commission adopted a resolution as required by statute stating that the
TIF Plan was consistent with redevelopment plans of the City as a
whole.
Current Circumstances In spite of the changes in the tax laws and the
effect on TIF districts, an up-to-date analysis of the project indicates.
that it is still feasible. It appears there will be less money available to
the City to assist in street and utility construction in the vicinity of the
project. Instead of the $606,647 initially thought to be available, it now
appears that there will be approximately $382,000 to assist in street
and utility construction.
Issues Aside from the policy issue as to whether a TIP district should
be formed, there is the issue of the actual design of the project. The
City Council has made it clear in the past it desired a high quality
project and will tonight consider an amendment to the Downtown
zoning district establishing detailed design standards for the
Downtown. If adopted, this project will need to comply with the
design standards contained in that ordinance.
Conclusion Staff has concluded the proposed project is feasible and
the amount of assistance being requested is the minimum amount
needed to implement the project. Staff also believes the project is
consistent with the City Council's policy of providing market rate
senior owner-occupied housing. The project is also consistent with the
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2
AL TERNA TIVES:
RECOMMENDED
MOTION:
REVIEWED BY:
Council's desire to redevelop the Downtown area as set forth in the
Downtown ordinance. This building will be the first in the Downtown
area to be constructed in conformance with the new Downtown
ordinance. The next step in the process will be preparation of a
development agreement for approval by the Council that will
memorialize the terms and conditions of this TIF project.
1. Approve the resolution modifying Development District 1 and
creating TIF District 1-3.
2. Deny the resolution
3. Continue the case for specific reasons.
Alternative 1
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3
RESOLUTION NO. 01~ / 3~
RESOLUTION ADOPTING A MODIFICATION TO THE DEVELOPMENT
PROGRAM FOR DEVELOPMENT DISTRICT NO.1; AND ESTABLISHING
TAX INCREMENT FINANCING DISTRICT NO.3 WITHIN DEVELOPMENT
DISTRICT NO.1 AND ADOPTING THE TAX INCREMENT FINANCING PLAN
THEREFOR.
MOTION BY:
J?
SECOND BY:
JAG
BE IT RESOLVED by the City Council (the "Council") of the City of Prior Lake, Minnesota
(the "City"), as follows:
Section 1.
Recitals.
1.01. The City Council (the "Council") of the City of Prior Lake (the "City") has heretofore
established Development District No. 1 and adopted the Development Program therefor. It has been
proposed that the City adopt a Modification to the Development Program for Development District No. 1
and establish Tax Increment Financing District No. 1-3 (the "District") therein and adopt the Tax
Increment Financing Plan therefor (collectively, the "Program Modification and Plan"); all pursuant to
and in conformity with applicable law, including Minnesota Statutes, 469.124 through 469.134 and
469.174 through 469.179, all inclusive, as amended, (the "Act") all as reflected in the Program
Modification and Plan, and presented for the Council's consideration.
1.02. The City has investigated the facts relating to the Program Modification and Plan and
has caused the Program Modification and Plan to be prepared.
1.03. The City has performed all actions required by law to be performed prior to the
establishment of the District and the adoption and approval of the proposed Program Modification and
Plan, including, but not limited to, notification of Scott County and Independent School District No. 719
having taxing jurisdiction over the property to be included in the District, a review of and written
comment on the Program Modification and Plan by the City Planning Commission, and the holding of a
public hearing upon published notice as required by law.
1.04. Certain written reports (the "Reports") relating to the Program Modification and Plan and
to the activities contemplated therein have heretofore been prepared by staff and submitted to the
Council and/or made a part of the City files and proceedings on the Program Modification and Plan. The
Reports include data, information and/or substantiation constituting or relating to the bases for the other
findings and determinations made in this resolution. The Council hereby confirms, ratifies and adopts
the Reports, which are hereby incorporated into and made as fully a part of this resolution to the same
extent as if set forth in full herein.
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1.5
The City is modifying the boundaries of Development District No.1.
Section 2.
Findings for the Adoption and Approval of the Program Modification and Plan.
2.01. The Council hereby finds that the Program Modification and Plan, are intended and, in
the judgment of this Council, the effect of such actions will be, to provide an impetus for development in
the public purpose and accomplish certain objectives as specified in the Program Modification and Plan,
which are hereby incorporated herein.
Section 3.
Findings for the Establishment of Tax Increment Financing District No. 1-3.
3.01. The Council hereby finds that the District is in the public interest and IS a
"redevelopment district" under Minnesota Statutes, Section 469.174, subd. 10 (a)(1).
3.02. The Council further finds that the proposed redevelopment would not Occur solely
through private investment within the reasonably foreseeable future and that the increased market value
of the site that could reasonably be expected to occur without the use of tax increment financing would
be less than the increase in the market value estimated to result from the proposed development after
subtracting the present value of the projected tax increments for the maximum duration of the District
permitted by the Tax Increment Financing Plan, that the Program Modification and Plan conform to the
general plan for the development or redevelopment of the City as a whole; and that the Program
Modification and Plan will afford maximum opportunity consistent with the sound needs of the City as a
whole, for the development or redevelopment of the District by private enterprise.
3.03. The Council further finds, declares and determines that the City made the above findings
stated in this Section and has set forth the reasons and supporting facts for each determination in writing,
attached hereto as Exhibit A.
3.04. The City of Prior Lake elects to calculate fiscal disparities for the District in accordance
with Minnesota Statutes, Section 469.177, subdivision 3, clause a, which means the fiscal disparities
contribution would be taken from outside the District.
Section 4.
Public Purpose
4.01. The adoption of the Program Modification and Plan conforms in all respects to the
requirements of the Act and will help fulfill a need to develop an area of the City which is already built
up, to provide employment opportunities, to improve the tax base and to improve the general economy of
the State and thereby serves a public purpose.
Section 5.
Approval and Adoption of the Program Modification and Plan.
5.01. The Program Modification and Plan, as presented to the Council on this date, including
without limitation the findings and statements of objectives contained therein, are hereby approved,
ratified, established, and adopted and shall be placed on file in the office of the City Clerk.
5.02. The staff of the City, the City's advisors and legal counsel are authorized and directed to
proceed with the implementation of the Program Modification and Plan and to negotiate, draft, prepare
and present to this Council for its consideration all further plans, resolutions, documents and contracts
necessary for this purpose.
5.03 The Auditor of Scott County is requested to certify the original net tax capacity of the
District, as described in the Program Modification and Plan, and to certify in each year thereafter the
amount by which the original net tax capacity has increased or decreased; and the City of Prior Lake is
authorized and directed to forthwith transmit this request to the County Auditor in such form and content
as the Auditor may specify, together with a list of all properties within the District, for which building
permits have been issued during the 18 months immediately preceding the adoption of this resolution.
5.04. The City Manager is further authorized and directed to file a copy of the Program
Modification and Plan with the Commissioner of Revenue.
Passed and adopted this 17th day of December, 2001.
MADER MADER
GUNDLACH GUNDLACH
ERICSON ERICSON
PETERSEN PETERSEN
ZIESKA ZIESKA
YES
NO
Dated: December 17, 2001
Frank Boyles, City Manager
(Seal)
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EXHIBIT A
RESOLUTION #
The reasons and facts supporting the findings for the adoption of the Tax Increment Financing Plan for
Tax Increment Financing District No. 1-3, as required pursuant to Minnesota Statutes, Section 469.175,
Subdivision 3 are as follows:
1. Finding that Tax Increment Financing District No. 1-3 is a redevelopment district as defined in M.S.,
Section 469.174, Subd. 10(a)(1).
The District consists of seven parcels, with plans to redevelop the area for senior housing and commercial
purposes. At least 70 percent of the area in the parcels in the District are occupied by buildings, streets,
utilities, or other improvements and more than 50 percent of the buildings in the District, not including
outbuildings, are structurally substandard to a degree requiring substantial renovation or clearance (See
Appendix D of the TIP plan).
2. Finding that the proposed development, in the opinion of the City Council, would not reasonably be
expected to occur solely through private investment within the reasonably foreseeable future and that the
increased market value of the site that could reasonably be expected to occur without the use of tax
increment financing would be less than the increase in the market value estimated to result from the
proposed development after subtracting the present value of the projected tax increments for the maximum
duration of Tax Increment Financing District No. 1-3 permitted by the Plan.
The proposed development, in the opinion of the City, would not reasonably be expected to occur solely
through private investment within the reasonably foreseeable future: This finding is supported by the fact
that the redevelopment proposed in this plan meets the City's objectives for redevelopment. Due to the
high cost of redevelopment on the parcels currently occupied by substandard buildings, the limited amount
of commerciallindustrial property for expansion adjacent to the existing project, the incompatible land
uses at close proximity, and the cost of financing the proposed improvements, this project is feasible only
through assistance, in part, from tax increment financing. The developer was asked for and provided a
letter and a proforma as justification that the developer would not have gone forward without tax
increment assistance (see attachment in Appendix E).
The increased market value of the site that could reasonable be expected to occur without the use of tax
increment financing would be less than the increase in market value estimated to result from the proposed
development after subtracting the present value of the projected tax increments for the maximum duration
of the TIF District permitted by the Plan: The City supported this finding on the grounds that the cost of
site and public improvements and utilities add to the total redevelopment cost. Historically, site and public
improvements costs in this area have made redevelopment infeasible without tax increment assistance.
Therefore, the City reasonably determined that no other redevelopment of similar scope is anticipated on
this site without substantially similar assistance being provided to the development.
A comparative analysis of estimated market values both with and without establishment of the District
and the use of tax increments has been performed as described above. If all development which is
proposed to be assisted with tax increment were to occur in the District, the total increase in market
value would be up to $10,151,600. The present value of tax increments from the District is estimated to
be $1,266,546. It is the Council's finding that no development with a market value of greater than
$8,885,054 would occur without tax increment assistance in this district within 25 years. This finding is
based upon evidence from general past experience with the high cost of acqmSItIon and public
improvements in the general area of the District(see Cashflow in Appendix C of the TIF Plan).
3. Finding that the Tax Increment Financing Plan for Tax Increment Financing District No. 1-3 conforms to
the general plan for the development or redevelopment of the municipality as a whole.
The Planning Commission reviewed the Plan and found that the Plan conforms to the general development
plan ofthe City.
4. Finding that the Tax Increment Financing Plan for Tax Increment Financing District No. 1-3 will afford
maximum opportunity, consistent with the sound needs of the City as a whole, for the development or
redevelopment of Development District No. 1 by private enterprise.
The project to be assisted by the District will result in increased employment in the City and the State of
Minnesota, the renovation of substandard properties, increased tax base of the State and add a high quality
development to the City.
Through the implementation of the Plan, the City will increase the availability of safe and decent senior
housing in the City.
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e
Modification of
DEVELOPMENT PROGRAM
for
DEVELOPMENT DISTRICT NO.1
and
TAX INCREMENT FINANCING PLAN
for the establishment of
TAX INCREMENT FINANCING DISTRICT NO. 1-3
(a redevelopment district)
CITY OF PRIOR LAKE
SCOTT COUNTY
STATE OF MINNESOTA
Public Hearing: June 4, 2001
Adopted:
EHLERS
Prepared by: EHLERS & ASSOCIATES. INC.
3060 Centre Pointe Drive, Roseville. Minnesota 55113-1105
(651) 697-8500 fax: (651) 697-8555 www.ehlers-inc.com
& ASSOCIATES INC
TABLE OF CONTENTS
(for reference purposes only)
SECTION I
MODIFICATION TO THE DEVELOPMENT PROGRAM FOR
DEVELOPMENT DISTRICT NO.1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 1-1
SECTION II
TAX INCREMENT FINANCING PLAN FOR
TAX INCREMENT FINANCING DISTRICT NO. 1-3 ............ .............. 2-1
Subsection 2-1. Foreword ............................................... 2-1
Subsection 2-2. Statutory Authority ........................................ 2-1
Subsection 2-3. Statement of Objectives. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 2-1
Subsection 2-4. Development Program Overview ............................. 2-2
Subsection 2-5. Description of Property in the District .......................... 2-2
Subsection 2-6. Property for Acquisition. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 2-3
Subsection 2-7. Classification of the District. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-3
Subsection 2-8. Duration of the District ..................................... 2-5
Subsection 2-9. Original Tax Capacity. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 2-5
Subsection 2-10. Original Tax Rate ........................................ 2-5
Subsection 2-11. Estimated Tax Increment .................................. 2-6
Subsection 2-12. Notification of Prior Planned Improvements .................... 2-6
Subsection 2-13. Use of Tax Increment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-6
Subsection 2-14. Sources of Revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-7
Subsection 2-15. Bonded Indebtedness. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-8
Subsection 2-16. Uses of Funds .......................................... 2-8
Subsection 2-17. Local Contribution (State Tax Increment Financing Aid) . . . . . . . . . .. 2-9
Subsection 2-18. Fiscal Disparities Election. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 2-10
Subsection 2-19. Business Subsidies ..................................... 2-10
Subsection 2-20. County Road Costs ..................................... 2-11
Subsection 2-21. Estimated Impact on Other Taxing Jurisdictions. . . . . . . . . . . . . . .. 2-11
Subsection 2-22. Modifications .......................................... 2-12
Subsection 2-23. Time Factors .......................................... 2-12
Subsection 2-24. Administration of the District. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 2-13
Subsection 2-25. Administrative Expenses ................................. 2-13
Subsection 2-26. Requirements for Agreements with the Developer . . . . . . . . . . . . .. 2-14
Subsection 2-27. Assessment Agreements .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 2-14
Subsection 2-28. Annual Disclosure Requirements . . . . . . . . . . . . . . . . . . . . . . . . . .. 2-15
Subsection 2-29. Reasonable Expectations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 2-15
Subsection 2-30. Summary .............................................. 2-15
APPENDIX A - PROJECT DESCRIPTION .... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A-1
APPENDIX B ............................................................ B-1
APPENDIX C ............................................................ C-1
APPENDIX D ............................................................ D-1
APPENDIX E
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . E-1
SECT/ON /
MOD/FICA TlON TO THE DEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRICT NO.1
Foreword
The creation of Tax Increment Financing District No. 1-3 represents a Modification to the Development
Program for Development District No.1. This modification represents a continuation of the goals and
objectives set forth in the Development Program for Development District No. I. In addition, the City
proposes to expand the boundaries of the Development District as indicated in the map below.
F or further infonnation, a review of the complete Development Program for Development District No.1 is
recommended. It is available from the City of Prior Lake. Other relevant infonnation is contained in the
Tax Increment Financing Plans for the Tax Increment Financing Districts located within Development
District No. I.
City of Prior LCik~
MLJn icipal D~\I~lopment DistrictNo. 1
res
City of Prior Lake
Tax Increment Financing Plan for Tax Increment Financing District No. 1-3
2-1
SECTION /I
TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. 1-3
Subsection 2-1. Foreword
The City of Prior Lake (the "City"), City staff, and consultants have prepared the following information to
expedite the establishment of Tax Increment Financing District No. 1-3 ("the District"), a redevelopment tax
increment financing district, located within Development District No.1.
Subsection 2-2. Statutory Authority
Within the City, there exist areas where public involvement is necessary to cause development or
redevelopment to occur. To this end, the City has certain statutory powers pursuant to Minnesota Statutes
("MS. ''), 469.124 through 469.134, inclusive, as amended, and MS., Sections 469.174 through 469.179,
inclusive, as amended (the "Tax Increment Financing Act" or "TIF Act"), to assist in financing public costs
related to this project.
This section contains the Tax Increment Financing Plan (the "TIF Plan") for Tax Increment Financing
District No. 1-3. Other relevant information is contained in the Modification to the Development Program
for Development District No.1.
Subsection 2-3. Statement of Objectives
The City has prepared a plan for the redevelopment property in and around the downtown area. The
Downtown Plan provides a framework for guiding public and private development decisions. The
development activities contemplated by the TIF Plan are consistent with the Downtown Plan.
The development proposed in the District would result in approximately 79 housing units intended for
occupancy by senior citizens and approximately 12,000 square feet of retail uses. The proposed development
helps to achieve several development objectives, including:
Bringing permanent residents to the Downtown area with the potential to support existing and future
businesses.
Redeveloping substandard and underutilized properties.
. Providing a catalyst for additional private investment in the Downtown area.
Providing a catalyst for public improvements identified in the Downtown Plan.
. Increasing housing opportunities in the City.
The District is being created to facilitate the redevelopment of property in the downtown area with a mix of
senior housing and retail development (the Lakefront Plaza Project) in the City of Prior Lake. Contracts for
this have not been entered into at the time of preparation of this Plan, but the date when development is likely
to occur is in the Spring of 2002 This Plan is expected to achieve many of the objectives outlined in the
Development Program for Development District No. I.
The activities contemplated in the Modification to the Development Program and the Plan do not preclude
the undertaking of other qualified development or redevelopment activities. These activities are anticipated
to occur over the life of Development District No. I and the District.
City of Prior Lake
Tax Increment Financing Plan for Tax Increment Financing District No. 1-3
2-2
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Subsection 2-4. Development Program Overview
Activities to be undertaken by the City to further the Development Program for Development District No.
1 include, but are not limited to, the following:
1. Property to be Acquired - Selected property located within the District may be acquired by
the City and is further described in this Plan.
2. Relocation - Relocation services, to the extent required by law, are available pursuant to
MS., Chapter 117 and other relevant state and federal laws.
3. Upon approval ofa developer's plan relating to the project and completion of the necessary
legal requirements, the City may sell to a developer selected properties that they may
acquire within the District or may lease land or facilities to a developer.
4. The City may perform or provide for some or all necessary acquisition, construction,
relocation, demolition, and required utilities and public streets work within the District.
Subsection 2-5. Description of Property in the District
The property to be included in the District includes the following seven parcels and the adjacent rights-of
way, which prior to the establishment of the District will be combined into a single parcel. The proposed
development requires the reconfiguration of the property into a common site and single parcel.
Current Parcel Numbers
25-001062-0 25-001068-0
25-001063-0 25-001069-0
25-001066-0 25-001070-0
25-001067-0
Subsection 2-6. Property for Acquisition
The City may acquire any parcel within the Tax Increment Financing District and the Development Distrct
City of Prior Lake
Municipal Development District No.1
City of Prior Lake
Tax Increment Financing Plan for Tax Increment Financing District No. 1-3
2-3
including interior and adjacent street rights of way. Any properties identified for acquisition will be acquired
by the City only in order to accomplish one or more of the following: storm sewer improvements; provide
land for needed public streets, utilities and facilities; carry out land acquisition, site improvements, clearance
and/or development to accomplish the uses and objectives set forth in this plan. The City may acquire
property by gift, dedication, condemnation or direct purchase from willing sellers in order to achieve the
objectives of this Plan. Such acquisitio.ns will be undertaken only when there is assurance of funding to
finance the acquisition and related costs.
Subsection 2-7. Classification of the District
The City finds that the District meets the criteria for the establishment of the redevelopment district pursuant
to M.S., Section 469.174, Subd. 10. The statutory criteria for a redevelopment district are as follows:
(a) "Redevelopment district" means a type of tax increment financing district consisting of a project,
or portions of a project, within which the authority finds by resolution that one or more of the
following conditions, reasonably distributed throughout the district, exists:
(1) parcels consisting of 70 percent of the area in the district are occupied by buildings, streets,
utilities, paved or gravel parking lots or similar structures and more than 50 percent of the
buildings, not including outbuildings, are structurally substandard to a degree requiring
substantial renovation or clearance; or
(2) The property consists of vacant, unused, underused, inappropriately used, or infrequently
used rail yards, rail storage facilities or excessive or vacated railroad rights-of-way; or
(3) tank facilities, or property whose immediately previous use was for tank facilities, as
defined in Section lI5e, Subd. 15, if the tank facility:
have or had a capacity of more than one million gallons;
are located adjacent to rail facilities; or
have been removed, or are unused, underused, inappropriately used or infrequently
used.
(b) For purposes of this subdivision, "structurally substandard" shall mean containing defects in
structural elements or a combination of deficiencies in essential utilities andfacilities, light and
ventilation, fire protection including adequate egress, layout and condition of interior partitions,
or similar factors, which defects or deficiencies are of sufficient total significance to justify
substantial renovation or clearance.
(c) A building is not structurally substandard ifit is in compliance with the building code applicable
to new buildings or could be modified to satisfy the building code at a cost of less than 15
percent of the cost of constructing a new structure of the same square footage and type on the
site. The municipality may find that a building is not disqualified as structurally substandard
under the preceding sentence on the basis of reasonably available evidence, such as the size,
type, and age of the building, the average cost ofplumbing, electrical, or structural repairs or
other similar reliable evidence. The municipality may not make such a determination without
an interior inspection of the property, but need not have an independent, expert appraisal
prepared of the cost of repair and rehabilitation of the building. An interior inspection of the
property is not required, if the municipality finds that (1) the municipality or authority is unable
to gain access to the property after using its best efforts to obtain permission from the party that
owns or controls the property; and (2) the evidence otherwise supports a reasonable conclusion
City of Prior Lake
Tax Increment Financing Plan-for Tax Increment Financing District No. 1-3
2-4
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that the building is structurally substandard...
(d) A parcel is deemed to be occupied by a structurally substandard building for purposes of the
finding under paragraph (a) if all of the following conditions are met."
(1) the parcel was occupied by a substandard building within three years of the filing of the
request for certification of the parcel as part of the district with the county auditor;
(2) the substandard building was demolished or removed by the authority or the demolition or
removal was financed by the authority or was done by a developer under a development
agreement with the authority;
(3) the authority found by resolution before the demolition or removal that the parcel was
occupied by a structurally substandard building and that after demolition and clearance the
authority intended to include the parcel within a district; and
,
(4) uponfiling the request for certification of the tax capacity of the parcel as part of a district,
the authority notifies the county auditor that the original tax capacity of the parcel must be
adjusted as provided by 9 469. J 77, subdivision J, paragraph (h).
(e) For purposes of this subdivision, a parcel is not occupied by buildings, streets, utilities, paved
or gravel parking lost or other similar structures unless J 5 percent of the area of the parcel
contains buildings, streets, utilities, paved or gravel parking lost or other similar structures.
(f) For districts consisting of two or more noncontiguous areas, each area must qualify as a
redevelopment district under paragraph (a) to be included in the district, and the entire area of
the district must satisfy paragraph (a).
In meeting the statutory criteria the City relies on the following facts and findings:
· The District consists of one parcel.
· 100% of the District area is occupied by buildings, streets, utilities, paved or gravel parking lots or other
similar structures within the statutory definition.
· An inspection of the property shows that 16% of the area of the parcel is occupied by buildings, utilities
paved or gravel parking lots or other similar structures. These buildings, utilities paved or gravel parking
lots or other similar structures exceed the 15% minimum required by statute to determine that the parcel
is occupied.
Four buildings - one house with an attached garage, one house with an unattached garage and a shed-
are located within the District. The City has undertaken inspections to determine that the buildings, not
including outbuildings, are structurally substandard to a degree requiring substantial renovation or
clearance pursuant to the statutory criteria. In addition to the houses, the District contains several out
buildings and additional improvements: one detached garage, one shed, a large patio, gravel driveways
and parking spaces, sidewalks and utility easements.
A more complete explanation of the redevelopment findings are contained in Appendix D.
Pursuant to 469.176 Subd. 7, the District does not contain any parcel or part of a parcel that qualified under
the provisions of Section 273.111 or 273.112 of Chapter 473H for taxes payable in any of the five calendar
years before the filing of the request for certification of the District.
City of Prior Lake
Tax Increment Financing Plan for Tax Increment Financing District No. 1-3
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Subsection 2-8. Duration of the District
Pursuant to MS., Section 469.175, Subd. 1, and Section 469.176, Subd. 1, the duration of the District must
be indicated within the Plan. Pursuant to MS., Section 469.176, Subd. 1b, the duration of the District will
be 25 years after receipt of the first increment by the City (a total of 26 years). The date of receipt by the
City of the first tax increment is expected to be 2004. Thus, it is estimated that the District, including any
modifications of the Plan for subsequent phases or other changes, would terminate after 2029, or when the
Plan is satisfied. If increment is received in 2003, the term of the District will be 2028. The City reserves
the right to decertify the District prior to the legally required date.
Subsection 2-9. Original Tax Capacity
PursuanttoMS., Section 469. 174, Subd. 7 andMS., Section 469.177, Subd.1, the Original Net Tax Capacity
(ONTC) as certified for the District will be based on the market values placed on the property by the assessor
in 2001 for estimated taxes payable 2002. The TIF Plan estimates the ONTC to be $3,984.
Pursuant to MS., Section 469.177, Subds. 1 and 2, the County Auditor shall certify in each year (beginning
in the payment year 2002) the amount by which the original value has increased or decreased as a result of:
1. change in tax exempt status of property;
2. reduction or enlargement of the geographic boundaries of the district;
3. change due to adjustments, negotiated or court-ordered abatements;
4. change in the use of the property and classification;
5. change in state law governing class rates; or
6. change in connection with previously issued building permits.
In any year in which the current Net Tax Capacity value of the District declines below the ONTC, no value
will be captured and no tax increment will be payable to the City.
Subsection 2-10. Original Tax Rate
The amount of tax increment is calculated by multiplying the total local tax rate (excluding market value
rates) by the Captured Tax Capacity v2alue of the District. If the current total local tax rate exceeds the
Original Tax Rate (OTR), the amount of tax increment produced by the tax rate above the OTR is distributed
to the taxing jurisdictions as excess tax increment.
The OTR for the District will be the local tax rate for estimated taxes payable 2002, assuming the request
for certification is made before June 30, 2002. The local tax rate for estimated taxes payable 2002 is
120.0000%
Subsection 2-11. Estimated Tax Increment
The City estimates that the total tax capacity value of property within the District upon completion of the
proposed development will be $149,720. The amount of annual tax increment revenue is shown in the table
below.
City of Prior Lake
Tax Increment Financing Plan for Tax Increment Financing District No. )-3
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_'. ....~".~.".M_~_~_k.,~'.""...,.~......_,____,_........_~-""-'--""^..."_"."__~"'~.._~,______~.....".._, e..._.,.,'."_
Project Estimated Tax Capacity upon Completion (PTC)
Original Estimated Net Tax Capacity(ONTC)
Estimated Captured Tax Capacity (CTC)
Original Local Tax Rate (OTR)
Estimated Annual Tax Increment (CTC x Local Tax Rate)
Percent Retained by the City
$128,750
(3,984)
$124,766
120.0000% Pay 2002 est,
$149,720
100%
The City requests 100 percent of the available increase in tax capacity for repayment of its obligations and
current expenditures, beginning in the tax year payable 2004.
The following factors will detennine the actual amount of tax increment received by the City:
Actual market value of property within the District as detennined by the Assessor.
· Statutory rates for setting tax capacity values.
· Actual total local tax rate.
The cash flow projections in Appendix C show the potential tax increment revenues collected by the City.
Subsection 2-12. Notification of Prior Planned Improvements
Pursuant to MS., Section 469.177, Subd 4, the City shall, after due and diligent search, accompany its
request for certification to the County Auditor or its notice of the District enlargement pursuant to MS.,
Section 469.175, Subd 4, with a listing of all properties within the District or area of enlargement for which
building penn its have been issued during the eighteen (18) months immediately preceding approval of the
Plan by the municipality pursuant to MS., Section 469.175, Subd. 3. The County Auditor shall increase the
original net tax capacity of the District by the net tax capacity of improvements for which a building penn it
was issued. The City is reviewing the area to be included in the District to determine if any building
permits have been issued during the 18 months immediately preceding approval of the Plan by the
City.
Subsection 2-13. Use of Tax Increment
Pursuant to M.S. Section 469.176, Subd. 4j, at least 90% of the revenues derived from tax increments from
the District must be used to finance the cost of correcting conditions that allow the redevelopment
designation. These costs include, but are not limited to, acquiring properties containing structurally
substandard buildings or improvements, or hazardous substances, pollution, or contaminants, acquiring
adjacent parcels necessary to provide a site of sufficient size to pennit development, demolition and
rehabilitation of structures, clearing of the land, the removal of hazardous substances or remediation
necessary to development of the land, and installation of utilities, roads, sidewalks, and parking facilities for
the site. Within this limitation, the City hereby detennines that it will use 100 percent of the captured net
tax capacity oftaxable property located in the District for the following purposes:
I . to pay the principal of and interest on bonds issued to finance a project;
2. to finance, or otherwise pay the public development costs of Development District No. I pursuant
to the MS. Sections 469.124 to 469.134;
City of Prior Lake
Tax Increment Financing Plan for Tax Increment Financing District No. 1-3
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3. to pay for project costs as identified in the budget set forth in the TIF Plan;
4. to finance, or otherwise pay for other purposes as provided in MS, Section 469.176, Subd. 4;
5. to pay principal and interest on any loans, advances or other payments made to or on behalf the City
or for the benefit of Development District No. I by a developer;
6. to finance or otherwise pay premiums and other costs for insurance or other security guaranteeing
the payment when due of principal of and interest on bonds pursuant to the TIF Plan or pursuant to
MS, Chapter 462C. MS, Sections 469.152 through 469.165, and/or MS, Sections 469.178; and
7. to accumulate or maintain a reserve securing the payment when due of the principal and interest on
the tax increment bonds or bonds issued pursuant to MS, Chapter 462C, MS, Sections 469.152
through 469.165, and/or MS, Sections 469.178.
These revenues shall not be used to circumvent any levy limitations applicable to the City nor for other
purposes prohibited by MS., Section 469.176, subd. 4.
Tax increments generated in the District will be paid by Scott County to the City for the Tax Increment Fund
of said District. The City will pay to the developer(s) annually an amount not to exceed an amount as
specified in a developer's agreement to reimburse the costs of land acquisition, public improvements,
demolition and relocation, site preparation, and administration. Remaining increment funds will be used for
City administration (up to 10 percent) and the costs of public improvement activities.
Pursuantto MS, Section 469.1763, (1) At least 75% ofthe tax increment derived from the District must be
expended on Public Costs incurred within said district, and up to 25% of said tax increments may be spent
on Public Costs incurred outside of the District but within Development Distrct No. I; provided that in the
case of a housing district, a housing project, as defined in MS., Section 469.174, Subd. 11 is deemed to be
an activity in the District, and (2) pubic costs within the District shall be limited to reimbursement of public
costs paid before or within five years after certification of said district by the County Auditor and interest
on all such unreimbursed expenditures.
Subsection 2-14. Sources of Revenue
The estimated sources of revenue for the District are contained in the table below.
SOURCES OF FUNDS
TOTAL
$3,000,000
$3,000,000
$110,000
$3,110,000
Tax Increment
PROJECT REVENUES
Interfund Loans/Transfers
TOTAL PROJECT AND FINANCING REVENUES
The costs outlined in the Uses of Funds will be financed primarily through the annual collection of tax
increments. The City reserves the right to use other sources of revenue legally applicable to the City and the
TIF Plan, including, but not limited to, special assessments, general property taxes, state aid for road
maintenance and construction, proceeds from the sale of land, other contributions from the developer and
investment income, to pay for the estimated public costs.
In addition to the actual tax increment collected by the City, the TIF Act (MS. Section 469.174, Subd. 25)
places restrictions on the use of revenues derived from the following sources:
. the proceeds from the sale or lease of property, tangible or intangible, purchased by the City with tax
increments;
City of Prior Lake
Tax Increment Financing Plan for Tax Increment Financing District No. 1-3
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._~_._.~.~----~~_.,_..~~~._._._------~.,~~._-_....~_._.~-.....
· repayments of loans or other advances made by the City with tax increments; and
· interest or other investment earnings on or from tax increments.
Subsection 2-15. Bonded Indebtedness
It is anticipated that the City will use a pay-as-you-go note to reimburse the Developer for eligible expenses
and interest on the unpaid balance. The City may use an interfund loan or a transfer of funds to pay for
public costs. Tax increment revenues may be used to repay an interfund loan or transfer.
The City reserves the right to incur bonded indebtedness or other indebtedness as a result of the TIP Plan.
The City may issue bonds to finance public improvements or other eligible costs of the TIF Plan. The
amount of the bonded indebtedness may not exceed $1,000,000 without a modification to the TIF Plan
pursuant to applicable statutory requirements. This provision does not obligate the City to incur debt. The
City will issue bonds or incur other debt only upon the determination that such action is in the best interest
of the City.
Subsection 2-16. Uses of Funds
Currently under consideration for the District is a proposal to facilitate construction of senior housing. The
City has determined that it will be necessary to provide financial assistance to the project. To facilitate the
proposed development, this TIF Plan authorizes the use of tax increment financing to pay for the cost of
certain eligible expenses. The estimate of public costs and uses of funds associated with the District is
outlined in the following table.
USES OF FUNDS
TOTAL
Site ImprovementslPreparation
Streets and Sidewalks
Other Public Improvements
Interest on Pay-as-you-go Note
Administrative Costs (up to 10%)
$950,000
565,000
100,000
1,315,000
70,000
PROJECT COSTS TOTAL
$3,000,000
$110,000
$3,000,000
Interfund Loans/Transfers
TOTAL FINANCING AND PROJECT COSTS
Estimated costs associated with the District are subject to change among categories without a modification
to this TIF Plan. The cost of all activities to be considered for tax increment financing will not exceed the
Total Project Costs in the table above without formal modification of this Plan pursuant to the applicable
statutory requirements.
Subsection 2-17.
Local Contribution (State Tax Increment Financing Aid)
The 2001 Legislature eliminated the provisions for a reduction in state tax increment financing aid
(RISTIF A) or the alternative qualifying local contribution. Ifrequired by future legislation, it is the City's
intention to consider taking the steps necessary to preserve state-paid local government aid.
City of Prior Lake
Tax Increment Financing Plan for Tax Increment Financing District No. 1-3
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Subsection 2-18. Fiscal Disparities Election
Pursuant to MS., Section 469.177, Subd. 3, the City may elect one of two methods to calculate fiscal
disparities. If the calculations pursuant to MS., Section 469.177, Subd. 3, clause a, (outside the District) are
followed, the following method of computation shall apply:
(1) The original net tax capacity and the current net tax capacity shall be determined before the
application of the fiscal disparity provisions of Chapter 276A or 473F. Where the original net
tax capacity is equal to or greater than the current net tax capacity, there is no captured net tax
capacity and no tax increment determination. Where the original net tax capacity is less than
the current net tax capacity, the difference between the original net tax capacity and the current
net tax capacity is the captured net tax capacity. This amount less any portion thereof which
the authority has designated, in its tax increment financing plan, to share with the local taxing
districts is the retained captured net tax capacity of the authority.
(2) The county auditor shall exclude the retained captured net tax capacity of the authority from the
net tax capacity of the local taxing districts in determining local taxing district tax rates. The
local tax rates so determined are to be extended against the retained captured net tax capacity
of the authority as well as the net tax capacity of the local taxing districts. The tax generated
by the extension of the lesser of (A) the local taxing district tax rates or (B) the original local
tax rate to the retained captured net tax capacity of the authority is the tax increment of the
authority.
The City shall submit to the County Auditor at the time of the request for certification which method of
computation of fiscal disparities the City elected.
The City will choose to calculate fiscal disparities by clause a.
According to MS., Section 469.177, Subd. 3:
(c) The method of computation of tax increment applied to a district pursuant to paragraph (a) or
(b) shall remain the same for the duration of the district, except that the governing body may
elect to change its election from the method of computation in paragraph (a) to the method in
paragraph (b).
Subsection 2-19. Business Subsidies
Pursuant to MS. Statutes 116J.993, Subdivision 3, assistance for housing is not considered a business
subsidy. The assistance to the developer will be structured in a manner to be targeted solely at the housing
or to qualify for other exemptions from a business subsidy.
Subsection 2-20.
County Road Costs
Pursuant to MS., Section 469.175, Subd. la, the county board may require the City to pay for all or part of
the cost of county road improvements if the proposed development to be assisted by tax increment will, in
the judgement of the county, substantially increase the use of county roads requiring construction of road
improvements or other road costs and if the road improvements are not scheduled within the next five years
under a capital improvement plan or within five years under another county plan.
In the opinion of the City and consultants, the proposed development outlined in this TIF Plan will have little
or no impact upon county roads. If the county elects to use increments to improve county roads, it must
City of Prior Lake
Tax Increment Financing Plan for Tax Increment Financing District No. 1-3
2-10
notify the City within forty-five days of receipt of this TIF Plan.
Subsection 2-21.
Estimated Impact on Other Taxing Jurisdictions
The estimated impact on other taxingjurisdictions assumes that the redevelopment contemplated by the TIP
Plan would occur without the creation of the District. However, the City has determined that such
development or redevelopment would not occur "but for" tax increment financing and that, therefore, the
fiscal impact on other taxing jurisdictions is $0. The estimated fiscal impact of the District would be as
follows if the "but for" test was not met:
IMPACT ON TAX BASE
Scott County
City of Prior Lake
Prior Lake ISD No. 719
200112002 est.
Total Net
Tax Caoacity
64,152,757
10,930,196
10,930,196
Estimated Captured
Tax Capacity (CTq
Upon Completion
124,766
124,766
124,766
Percent of CTC
to Entity Total
0.1945%
1.1415%
1.1415%
IMPACT ON TAX RATES
200112002 est.
Extension Rates
Scott County
City of Prior Lake
Prior Lake ISD No. 719
Other
Total
0.401650
0.397440
0.3 16620
0.084290
1.200000
Percent
of Total
33.47%
33.12%
26.39%
7.02%
100.00%
CTC
124,766
124,766
124,766
124.766
Potential
Taxes
50,112
49,587
39,503
10.517
149,719
The estimates listed on the previous page display the captured tax capacity when all construction is
completed. The tax rate and total net tax capacities used for calculations is for estimated taxes payable in
2002.
Subsection 2-22. Modifications
The City reserves the right to make future modifications to the TIF Plan and District. In accordance with the
TIF Act (MS. Section 469.175, Subd 4) the following modifications may be made only upon the notice and
after the discussion, public hearing and findings required for approval of the original TIF Plan:
1. reduction or enlargement of the geographic area of Development District No. I or the District;
2. increase in amount of bonded indebtedness to be incurred, including a determination to capitalize
interest on debt if that determination was not a part of the original plan, or to increase or decrease
the amount of interest on the debt to be capitalized;
3. increase in the portion of the captured net tax capacity to be retained by the City;
4. increase in total estimated tax increment expenditures; or
5. designation of additional property to be acquired by the City,
City of Prior Lake
Tax Increment Financing Plan for Tax Increment Financing District No. 1-3
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Subsection 2-23. Time Factors
1. District Enlargement
Pursuant to M S. Section 469.175 Subd. 4 (b), the geographic area of the District may be reduced, but
shall not be enlarged after five years following the date of certification of the original net tax
capacity by the county auditor. If a redevelopment district is enlarged, the reasons and supporting
facts for the determination that the addition to the district meets the criteria of MS., Section 469.174,
Subd. 10 must be documented. The requirements of this paragraph do not apply if (1) the only
modification is elimination ofparcel(s) from Development District No.1 or the District and (2) (A)
the current net tax capacity of the parcel(s) eliminated from the District equals or exceeds the net
tax capacity of those parcel(s) in the District's original net tax capacity or (B) the City agrees that,
notwithstanding MS., Section 469.177, Subd. 1, the original net tax capacity will be reduced by no
more than the current net tax capacity of the parcel(s) eliminated from the District. The City must
notify the County Auditor of any modification that reduces or enlarges the geographic area of
Development District No.1 or the District. Modifications to the District in the form of a budget
modification or an expansion of the boundaries will be recorded in the TIF Plan.
2. Activity Within 3 Years
No tax increment shall be paid to the City for the District after three (3) years from the date of
certification of the Original Net Tax Capacity value of the taxable property in the District by the
County Auditor (MS. Section 469.176, Subd. 1a) unless:
(a) bonds have been issued in aid of the project containing the district pursuant to MS.
Section 469.178, or any other law, except revenue bonds issued pursuant to MS.,
Sections 469.152 to 469.165, or
(b) the City has acquired property within the District, or
(c) the City has constructed or caused to be constructed public improvements within the
District.
The bonds must be issued, or the City must acquire property or construct or cause public
improvements to be constructed by approximately June, 2004 and report such actions to the County
Auditor.
3. 4- Year Knockdown
Parcels without "qualifying activity" will be knocked out of the District after four years from the
date of certification of the original nettax capacity. MS. Section 469.176, Subd. 6 defines qualifying
activities as " demolition, rehabilitation or renovation of property or other site preparation, including
qualified improvement of a street adjacent to a parcel but not installation of utility service including
sewer or water systems" in accordance with the TIF Plan. For purposes of the knock down
requirements, qualified improvements of a street are limited to (I) construction or opening of a new
street, (2) relocation of a street, and (3) substantial reconstruction or rebuilding of an existing street.
Knock down means that the original net tax capacity of that parcel is excluded from the original net
tax capacity of the District and no tax increment may be collected from that parcel. If the City or
the owner of the parcel subsequently commences a qualifying activity in accordance with the TIF
Plan, the City shall certify to the county auditor that the activity has commenced and the county
auditor shall certify the net tax capacity thereof as most recently certified by the commissioner of
revenue and add it to the original net tax capacity of the tax increment financing district. The City
must submit to the county auditor evidence that the required activity has taken place for each parcel
in the district. The evidence for a parcel must be submitted by February 1 of the fifth year following
City of Prior Lake
Tax Increment Financing Plan for Tax Increment Financing District No, 1-3
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~,~,__,,,_,----,,,~_,,,,,~,,',.~_"w"'"""""_"_~"_';'"""'~'",,~"._~"_'_~W'_' ,,,. "'_....'~."~_"___.h.,~'~..~.....__.."'->,.,_~.,,~"......._._..._.-,.,..
the year in which the parcel was certified as included in the district.
The City or a property owner must improve parcels within the District by approximately June, 2005
and report such actions to the County Auditor.
4. 5- Year Limit
After five years from the date of certification of the TIP District, tax increment may only be used to
(1) repay existing bonds the proceeds of which must be used to finance the activity, are issued and
sold to a third party before or within five years after certification, the revenues are spent to repay the
bonds, and the proceeds of the bonds either are, on the date of issuance, reasonably expected to be
spent before the end of the later of (a) the five-year period, or (b) a reasonable temporary period
within the meaning of the use of that term under ~ 148( c)( I) of the Internal Revenue Code, or are
deposited in a reasonably required reserve or replacement fund; (2) reimburse a developer or other
third party for eligible expenses paid before or within five year period, including interest on
unreimbursed costs; (3) eligible administrative expense; and (4) eligible expenses under M.S.
Section 469.1763, Subd. 2 (Pooling).
Subsection 2-24. Administration of the District
Administration of the District will be handled by the City Manager.
Subsection 2-25. Administrative Expenses
In accordance with MS., Section 469.174, Subd 14, and MS., Section 469.176, Subd. 3, administrative
expenses means all expenditures of the City, other than:
I. amounts paid for the purchase of land;
2. amounts paid to contractors or others providing materials and services, including architectural and
engineering services, directly connected with the physical development of the real property in the
project;
3. relocation benefits paid to or services provided for persons residing or businesses located in the
project; or
4. amounts used to pay principal or interest on, fund a reserve for, or sell at a discount bonds issued
pursuant to MS., Section 469.178; or
5. amounts used to pay other financial obligations to the extent those obligations were used to finance
costs described in sections I to 3.
For districts for which the request for certification were made before August I, 1979, or after June 30, 1982,
administrative expenses also include amounts paid for services provided by bond counsel, fiscal consultants,
and planning or economic development consultants. Tax increment may be used to pay any authorized and
documented administrative expenses for the District up to but not to exceed 10 percent of the total tax
increment expenditures authorized by the Plan or the total tax increment expenditures for Development
District No. I, whicbever is less.
Pursuant to MS., Section 469.176, Subd. 4h, tax increments may be used to pay for the county's actual
administrative expenses incurred in connection with the District. The county may require payment of those
expenses by February IS ofthe year following the year the expenses were incurred.
Pursuant to MS., Section 469. 177, Subd II, the county treasurer shall deduct an amount equal to 0.25
percent of any increment distributed to the City and the county treasurer shall pay the amount deducted to
the state treasurer for deposit in the state general fund. For taxes payable in 2002 and thereafter, the
City of Prior Lake
Tax Increment Financing Plan for Tax Increment Financing District No. 1-3
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commissioner of revenue shall increase the percent to a percent equal to the product of the percent and the
amount that statewide tax increment levy for taxes payable in 2002 would have been without the class rate
change in this act and the elimination of the general education levy in this act divided by the statewide tax
increment levy for taxes payable in 2002.
Subsection 2-26. Requirements for Agreements with the Developer
The City will review any proposal for private development to determine its conformance with the
Development Program and with applicable municipal ordinances and codes. To facilitate this effort, the
following documents may be requested for review and approval: site plan, construction, mechanical, and
electrical system drawings, landscaping plan, grading and storm drainage plan, signage system plan, and any
other drawings or narrative deemed necessary by the City to demonstrate the conformance of the
development with City plans and ordinances. The City may also use the Agreements to address other issues
related to the development.
Pursuant to MS, Section 469.176, Subd 5, no more than 25 percent, by acreage, of the property to be
acquired in the District as set forth in the Plan shall at any time be owned by the City as a result of
acquisition with the proceeds of bonds issued pursuant to M.S., Section 469.178 to which tax increments
from property acquired is pledged, unless prior to acquisition in excess of25 percent of the acreage, the City
concluded an agreement for the development or redevelopment of the property acquired and which provides
recourse for the City should the development or redevelopment not be completed.
Subsection 2-27. Assessment Agreements
Pursuant to MS, Section 469.177, Subd 8, the City may enter into a written assessment agreement in
recordable form with the developer of property within the District which establishes a minimum market value
of the land and completed improvements for the duration of the District. The assessment agreement shall
be presented to the assessor who shall review the plans and specifications for the improvements to be
constructed, review the market value previously assigned to the land upon which the improvements are to
be constructed and, so long as the minimum market value contained in the assessment agreement appears,
in the judgment of the assessor, to be a reasonable estimate, the assessor shall also certify the minimum
market value agreement.
Subsection 2-28. Annual Disclosure Requirements
Pursuant to MS, Section 469.175, Subd 5, 6 and 6a the City must undertake financial reporting for all tax
increment financing districts to the Office of the State Auditor, County Board, County Auditor and School
Board on or before August 1 of each year. MS, Section 469.175, Subd 5 also provides that an annual
statement shall be published in a newspaper of general circulation in the City on or before August 15.
If the City fails to make a disclosure or submit a report containing the information required by MS. Section
469.175 Subd 5 and Subd. 6, the Office of the State Auditor will direct the County Auditor to withhold the
distribution of tax increment from the District.
Subsection 2-29. Reasonable Expectations
As required by the Tax Increment Financing Act, in establishing the District, the determination has been
made that the anticipated development would not reasonably be expected to occur solely through private
investment within the reasonably foreseeable future and that the increased market value of the site that could
reasonably be expected to occur without the use oftax increment financing would be less than the increase
in the market value estimated to result from the proposed development after subtracting the present value of
City of Prior Lake
Tax Increment Financing Plan for Tax Increment Financing District No. )-3
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the projected tax increments for the maximum duration of the District permitted by the Plan. In making said
determination, reliance has been placed upon written representations made by the developer to such effects
and upon City staff awareness of the feasibility of developing the project site. A comparative analysis of
estimated market values both with and without establishment of the District and the use of tax increments
has been performed as described above. Such analysis is included with the cashflow in Appendix E, and
indicates that the increase in estimated market value of the proposed development (less the indicated
subtractions) exceeds the estimated market value of the site absent the establishment of the District and the
use of tax increments.
Subsection 2-30. Summary
The City of Prior Lake is establishing the District to preserve and enhance the tax base, redevelop
substandard areas, and provide employment opportunities in the City. The Tax Increment Financing Plan
for the District was prepared by Ehlers & Associates, Inc., 3060 Centre Pointe Drive, Roseville, Minnesota
55113, telephone (651) 697-8500.
City of Prior Lake
Tax Increment Financing Plan for Tax Increment Financing District No, 1-3
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APPENDIX A
PROJECT DESCRIPTION
The Lakefront Plaza project is proposed to be built on Block 9 on the northern edge of downtown Prior
Lake. The Development will consist of approximately 79 units of housing for purposes 55 years of age
or older and 12,000 square feet of retail uses. The residential component would consist of one- and two-
bedroom condominium units with various support facilities and amenities. The retail element could
contain office and small stores compatible with the residential use. The City plans to undertake
improvements on adjacent streets.
APPENDIX
A-I
.~".._".__,__,..~,~,...... ......... .._ ^'"""""_'"""""'''''_''~~'_~~ ..W",._.,.,.".._..~____,__,,_.."."'_._".u.._____~_~'__~__~b._.~p"
.,' ..,...__..____.__ .~'... __"_,_",_,,,u___,~__"'_____'~_'N'~__~'__-'~-'-
APPENDIX B
DESCRIPTION OF PROPERTY TO BE INCLUDED IN THE DISTRICT
The District encompasses all property and adjacent rights-of-way identified by the parcels listed below.
These parcels have been combined prior to the establishment of the District by the City Council into a single
parcel. This parcel has not received a parcel identification number as of the date of the establishment of the
District.
Current Parcel Numbers
25-001062-0 25-001068-0
25-001063-0 25-001069-0
25-001066-0 25-001 070-0
25-001067-0
APPENDIX
B-1
APPENDIX C
ESTIMA TED CASH FLOW FOR THE DISTRICT
APPENDIX
C-I
12/12/01
TIF DISTRICT NO. 1-3
T.I.F. CASH FLOW ASSUMPTIONS
Page 1 of 4
Inflation Rate:
Present Value Rate Pay As You Go Note:
Present Value Rate City Internal Rate:
Note Issue Date:
Tax Extension Rate Frozen: (from City)
Tax Extension Rate Current: (from City)
Assumes First T ax Increment
Years of Tax Increment
Amount of increment will vary depending upon market value, tax rates. class rates.
construction schedule, and inflation on market value. Inflation on tax rates
cannot be captured.
0,0000%
8.000%
6.000%
February 1, 2002
1,200000 est. Pay 2002
1.200000 est. Pay 2002
2004
26
BASE VALUE INFORMATION
PID Market Class Tax Date
Value Rate Capacity Pavable
25-001062-0 45,000 1.00% 450 2002
25-001063-0 152,700 1.00% 1,527 2002
25-001066-0 35,000 1.00% 350 2002
25-001067-0 90,700 1.00% 907 2002
25-001066-0 35,000 1.00% 350 2002
25-001069-0 25,000 1.00% 250 2002
25-001070-0 15.000 1.00% 150 2002
Total 398,400 3,984
PROJECT INFORMATION
Number MV Per Tax Class Market Date
Units - Sq. Ft. Units - Sq. Ft. Capacity Rate Value Payable
Commerical 12,000 100 23,250 1.5% - 2.0% 1,200,000
Housing 79 133,544 105,500 1.00% 10,550,000 2004
Total 128,750 11,750,000
Prepared by Ehlers
Plan-zoo1-1
Base Project Captured Semi-Annual State Aud. Pooling Admin Semi-Annual Semi-Annual PAYMENT DATE
PERIOD BEGINNING Tax Tax Tax Tax at At at Net Tax Present Pay
Yrs. Mth. Yr. Capacity Capacijy Capacity Increment 0.50% 15.00% 10.00% Increment Value Yrs. Mth. Yr.
0.0 02-01 2002 3,984 3,984 0 0 0 0 0 0 0 0.0 OB-Ol 2002
0.0 OB-Ol 2002 3,984 3,984 0 0 0 0 0 0 0 0.0 02-01 2003
0,0 02-01 2003 3,984 3,984 0 0 0 0 0 0 0 0.0 OB-Ol 2003
0.0 OB-Ol 2003 3,984 3,984 0 0 0 0 0 0 0 0.0 02-01 2004
0.0 02-01 2004 3,984 128,750 124,766 74,860 (374) (11,173) (7,449) 55,884 45,916 0.5 OB-Ol 2004
0.5 OB-Ol 2004 3,984 128,750 124,766 74.860 (374) (11,173) (7,449) 55,864 90,066 1,0 02-01 2005
1.0 02-01 2005 3.984 128,750 124,766 74,860 (374) (11,173) (7,449) 55,864 132,518 1.5 08-01 2005
1.5 0B-01 2005 3,984 128,750 124,766 74,860 (374) (11,173) (7,449) 55,864 173,338 2.0 02-01 2006
2.0 02-01 2006 3.984 128.750 124.766 74,860 (374) (11,173) (7,449) 55,864 212,587 2.5 0B-01 2006
2.5 0B-01 2006 3,964 128,750 124.766 74.860 (374) (11,173) (7,449) 55,864 250,327 3.0 02-01 2007
3.0 02-01 2007 3.984 128,750 124,766 74,860 (374) (11,173) (7.449) 55,864 286,615 3.5 0B-01 2007
3.5 0B-01 2007 3,964 128,750 124,766 74,860 (374) (11,173) (7,449) 55.864 321,507 4.0 02-01 2008
4.0 02-01 2008 3,984 128.750 124,766 74,860 (374) (11,173) (7,449) 55,864 355,058 4.5 0B-01 2008
4.5 OB-Ol 2008 3,964 128,750 124,766 74,860 (374) (11.173) (7,449) 55,864 387,318 5.0 02-01 2009
5.0 02-01 2009 3,984 128,750 124,766 74.860 (374) (11.173) (7,449) 55,864 418,337 5.5 08-01 2009
5.5 OB-Ol 2009 3,984 128,750 124,766 74,860 (374) (11,173) (7,449) 55,864 448,163 6.0 02-01 2010
6.0 02-01 2010 3,984 128,750 124,766 74,860 (374) (11,173) (7,449) 55,864 476,842 6.5 0B-01 2010
6.5 06-01 2010 3,984 128.750 124.766 74,860 (374) (11.173) (7,449) 55,864 504,418 7.0 02-01 2011
7.0 02-01 2011 3,984 128,750 124,766 74,860 (374) (11,173) (7,449) 55,864 530.934 7.5 0B-01 2011
7.5 08-01 2011 3,984 128,750 124.766 74,860 (374) (11,173) (7,449) 55,864 556,429 8.0 02-01 2012
8.0 02-01 2012 3,984 128,750 124,766 74,860 (374) (11,173) (7,449) 55,864 580,944 8.5 08-01 2012
8.5 08-01 2012 3,984 128,750 124,766 74,860 (374) (11,173) (7,449) 55,864 604,516 9.0 02,01 2013
9.0 02-01 2013 3,984 128,750 124.766 74,860 (374) (11,173) (7,449) 55,864 627,182 9.5 08-01 2013
9.5 08-01 2013 3,984 128,750 124,766 74,860 (374) (11,173) (7,449) 55,864 648,976 10.0 02-01 2014
10.0 02-01 2014 3,984 128,750 124,766 74,860 (374) (11,173) (7,449) 55,864 669,931 10.5 08-01 2014
10,5 08-01 2014 3,984 128,750 124,766 74.860 (374) (11,173) (7,449) 55,864 690,081 11.0 02-01 2015
11.0 02-01 2015 3,984 128,750 124,766 74,860 (374) (11,173) (7,449) 55,864 709,455 11.5 08-01 2015
11.5 08-01 2015 3,984 128,750 124.766 74,860 (374) (11,173) (7,449) 55,864 728,085 12.0 02-01 2016
12.0 02-01 2016 3,984 128,750 124,766 74,860 (374) (11,173) (7,449) 55,864 745,997 12.5 08-01 2016
12.5 08-01 2016 3,984 128,750 124.766 74,860 (374) (11,173) (7,449) 55,864 763,221 13.0 02-01 2017
13.0 02-01 2017 3,984 128,750 124,766 74,860 (374) (11,173) (7,449) 55,864 779,783 13.5 08-01 2017
13.5 08-01 2017 3,984 128,750 124.766 74,860 (374) (11,173) (7,449) 55,864 795,707 14.0 02-01 2018
14.0 02-01 2018 3,984 128,750 124,766 74.860 (374) (11,173) (7.449) 55.864 811,019 14.5 08-01 2018
14.5 08-01 2018 3,984 128,750 124,766 74,860 (374) (11,173) (7.449) 55,864 825,742 15.0 02-01 2019
15.0 02-01 2019 3,984 128,750 124,766 74,860 (374) (11,173) (7,449) 55,864 839,899 15.5 08-01 2019
15.5 08-01 2019 3,984 128,750 124,766 74,860 (374) (11,173) (7,449) 55,864 853,511 16.0 02-01 2020
16.0 02-01 2020 3,984 128.750 124.766 74,860 (374) (11,173) (7,449) 55,864 866.600 16.5 08-01 2020
16.5 08-01 2020 3,984 128.750 124,766 74.860 (374) (11,173) (7,449) 55,864 879,186 17.0 02-01 2021
17.0 02-01 2021 3,984 128,750 124,766 74.860 (374) (11,173) (7,449) 55,864 891.287 17.5 08-01 2021
17.5 08-01 2021 3.984 128,750 124.766 74,860 (374) (11,173) (7,449) 55,864 902,923 18.0 02-01 2022
18.0 02-01 2022 3,984 128,750 124,766 74,860 (374) (11.173) (7,449) 55,864 914.111 18.5 08-01 2022
18.5 08-01 2022 3,984 128.750 124.766 74,860 (374) (11,173) (7,449) 55,864 924,869 19.0 02-01 2023
19.0 02-01 2023 3,984 128,750 124,766 74,860 (374) (11,173) (7,449) 55,864 935,213 19.5 08-01 2023
19.5 08-01 2023 3,984 128,750 124,766 74,860 (374) (11,173) (7.449) 55,8641 945,160 20.0 02-01 2024
20.0 02-01 2024 128,750 128,750 0 0 0 0 0 0 945,160 20.5 08-01 2024
20.5 06-01 2024 128,750 128,750 0 0 0 0 0 0 945,160 21.0 02-01 2025
21,0 02-01 2025 128,750 128,750 0 0 0 0 0 0 945,160 21.5 08-01 2025
21.5 08-01 2025 128,750 128,750 0 0 0 0 0 0 945,160 22.0 02-01 2026
22.0 02-01 2026 128,750 128,750 0 0 0 0 0 0 945,160 22.5 08-01 2026
22.5 .08-01 2026 128,750 128.750 0 0 0 0 0 0 945,160 23.0 02-01 2027
23.0 02-01 2027 128,750 128,750 0 0 0 0 0 0 945.160 23.5 08-01 2027
23.5 08-01 2027 128.750 128,750 0 0 0 0 0 0 945,160 24.0 02-01 2028
24.0 02-01 2028 128.750 128,750 0 0 0 0 0 0 945,160 24.5 08-01 2028
24.5 08-01 2028 128,750 128,750 0 0 0 0 0 0 945,160 25.0 02-01 2029
25.0 02-01 2029 128,750 128,750 0 0 0 0 0 0 945,160 25.5 08-01 2029
25.5 06- 0 1 2029 128.750 128,750 0 0 0 0 0 0 945,160 26.0 02-01 2030
Totals 2,994,384 (14,972) (446,912) (297.941) 2,234,559
Present Value 1.266,546 (229458) (1529721 945,160
12112101
Present Value Rate
Page 2 of 4
TIF DISTRICT NO. 1-3
T.l.F. CASH FLOW ASSUMPTIONS
8.0000/.
6.000%
6.000%
8.000%
Prepared by Ehlers
Plan-2001-1
APPENDIX D
REDEVELOPMENT QUALIFICATIONS FOR THE DISTRICT
The parcel contains four buildings - one house with an attached garage and one house with an unattached
garage and a shed. The unattached garage and the shed are outbuildings. The two houses are determined
to be structurally substandard based on the findings of the City's Building Inspector contained in the
attached memorandum. The District consists of one parcel and 100% of the area of the District is
occupied because the parcel meets the occupied test as set forth in the attached.
APPENDIX
D-I
City of Prior Lake, Minnesota - TIF District No. 1-3 Qualifications
12-Dec-01
Parcel
Name
Combined Parcel
Parcel
Number
TBD
Occupied Type
Sq. Ft. (Approx.) Occupied
12,376 Improvemer
Percent
Occupied
16%
Greater Than
15%
77,508
Total
77,508
12,376
77,508
PERCENT OCCUPIED. =
100.00%
Occupied can include buildings, parking lots, and utilities.
Parcel
Name
Combined Parcel
Parcel
Number
TBD
Total
2
2
PERCENT BLIGHTED =
100.00%
re qualif. 123
APPENDIX E
BUT FOR QUALIFICA nONS FOR THE DISTRICT
Difference
$398,400
] 0,550.000
$10,]5],600
] .266,546
$8,885,054
$8,885,054
Current Market Value Est.
New Market Value Est.
Difference
Present Value of Tax Increment
Value Likel to Occur Without TIF is Less Than:
APPENDIX
D-2
The reasons and facts supporting the findings for the adoption of the Tax Increment Financing Plan for Tax
Increment Financing District No. 1-3, as required pursuant to Minnesota Statutes, Section 469.175,
Subdivision 3 are as follows:
1. Finding that Tax Increment Financing District No. 1-3 is a redevelopment district as defined in M.S.,
Section 469.174, Subd. 10(a)( 1).
The District consists of seven parcels, with plans to redevelop the area for senior housing and
commercial purposes. At least 70 percent of the area in the parcels in the District are occupied by
buildings, streets, utilities, or other improvements and more than 50 percent of the buildings in the
District, not including outbuildings, are structurally substandard to a degree requiring substantial
renovation or clearance (See Appendix D of the TIF plan).
2. Finding that the proposed development, in the opinion of the City Council, would not reasonably be
expected to occur solely through private investment within the reasonably foreseeable future and that
the increased market value of the site that could reasonably be expected to occur without the use of tax
increment financing would be less than the increase in the market value estimated to result from the
proposed development after subtracting the present value of the projected tax increments for the
maximum duration of Tax 1ncrement Financing District No. 1-3 permitted by the Plan.
The proposed development, in the opinion of the City, would not reasonably be expected to occur solely
through private investment within the reasonably foreseeable future: This finding is supported by the
fact that the redevelopment proposed in this plan meets the City's objectives for redevelopment. Due
to the high cost of redevelopment on the parcels currently occupied by substandard buildings, the limited
amount of commerciallindustrial property for expansion adjacent to the existing project, the incompatible
land uses at close proximity, and the cost of financing the proposed improvements, this project is feasible
only through assistance, in part, from tax increment financing. The developer was asked for and
provided a letter and a proforma as justification that the developer would not have gone forward without
tax increment assistance (see attachment in Appendix E).
The increased market value of the site that could reasonable be expected to occur without the use of tax
increment financing would be less than the increase in market value estimated to result from the
proposed development after subtracting the present value of the projected tax increments for the
maximum duration of the TIF District permitted by the Plan: The City supported this finding on the
grounds that the cost of site and public improvements and utilities add to the total redevelopment cost.
3
D-3
Historically, site and public improvements costs in this area have made redevelopment infeasible without
tax increment assistance. Therefore, the City reasonably determined that no other redevelopment of
similar scope is anticipated on this site without substantially similar assistance being provided to the
development.
A comparative analysis of estimated market values both with and without establishment of the District
and the use of tax increments has been performed as described above. If all development which is
proposed to be assisted with tax increment were to occur in the District, the total increase in market value
would be up to $10,151,600. The present value of tax increments from the District is estimated to be
$1,266,546. It is the Council's finding that no development with a market value of greater than
$8,885,054 would occur without tax increment assistance in this district within 25 years. This finding
is based upon evidence from general past experience with the high cost of acquisition and public
improvements in the general area of the District(see Cashflow in Appendix C of the TIP Plan).
3. Finding that the Tax Increment Financing Planfor Tax Increment Financing District No. 1-3 conforms
to the general plan for the development or redevelopment of the municipality as a whole.
The Planning Commission reviewed the Plan and found that the Plan conforms to the general
development plan of the City.
4. Finding that the Tax Increment Financing Planfor Tax Increment Financing District No. 1-3 will afford
maximum opportunity, consistent with the sound needs of the City as a whole, for the development or
redevelopment of Development District No.1 by private enterprise.
The project to be assisted by the District will result in increased employment in the City and the State
of Minnesota, the renovation of substandard properties, increased tax base of the State and add a high
quality development to the City.
Through the implementation of the Plan, the City will increase the availability of safe and decent senior
housing in the City.
4
D-4
RESOLUTION 01-24
A RESOLUTION APPROVING IN CONCEPT THE USE
OF TAX INCREMENT FINANCING TO FUND A SENIOR CITIZEN
HOUSING PROJECT AS PART OF THE
DOWNTOWN REDEVELOPMENT EFFORT
Motion By: ERICSON
Second By: ZIESKA
RECIT ALS
WHEREAS, the City has undertaken a comprehensive study of the downtown area of the City of Prior
Lake ("City"); and
WHEREAS, pursuant to this study the City has developed and adopted a Downtown Redevelopment
Guide; and
WHEREAS, qualified senior housing is an integral part of the City's vision for the redevelopment of its
downtown; and
WHEREAS, the City has been approached by Messrs. Randy Simpson and Ken Beske (collectively
"Developer") with a project to construct 78 market-rate owner-occupied senior housing units
and 12,000 square feet of retail space (hereinafter "Project"); and
WHEREAS, the aforementioned Project is known as LAKE FRONT PLAZA; and
WHEREAS, the Developer maintains that the Project is not economically viable without the assistance of
public financing; and
WHEREAS, to encourage and facilitate the redevelopment of downtown the City is eager to work with
responsible developers on qualifying projects; and
WHEREAS, where appropriate and permissible the City is prepared to use available tax increment
financing tools, as provided by Minnesota statutes to facilitate development of qualifying
projects; and
WHEREAS, the City and Developer understand that the City's ability to establish a tax increment
financing district, the ability to collet tax increments and the operation of the property tax
system are controlled by the State Legislature and that the use and/or availability of tax
increment financing is subject to changes by the State Legislature during the 2001
legislative session, which changes are beyond the power or purview of the City Council;
and
WHEREAS, the Developer agrees to bear all risks associated with legislative changes or resulting from
statutory requirements which the Developer is unable to meet; and
WHEREAS, both the City and Developer understand that both time and costs are associated with the
preparation and evaluation of plans and related documents necessary to develop and
16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (952) 447-4230 / Fax (952) 447-4245
AN EQUAL OPPORTUNITY EMPLOYER
~. "......".....----.., "'............"..._"..,..w____._..._w____.___~ ""_'__..".".."~._,...,...u.._.~__..,._w._.._.~. ......... ".".. _.....__.............___..". "0 .~.__..._'~'___.....,~.._._.__~.__~._"'_..~_.._.__,.
analyze the proposed Project and determine whether the Project meets the statutory
requirements and City criteria for the issuance of tax increment financing; and
WHEREAS, both the City and Developer wish to avoid the unnecessary expenditure of time and money
on projects that are not of interest to the City.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA that:
1. The Recitals set forth above are incorporated herein as if fully set forth.
2. The Developer is encouraged to submit to the City an application for Tax Increment Financing for the
Project referred to as Lakefront Plaza. Along with the application the Developer will deposit with the
City the amount of $12,000 which monies will be used by the City solely to pay for legal, financial and
staff costs associated with the analysis, review and facilitation of the Project.
3. The Developer will design the Project to be compatible with the City's Downtown Redevelopment
Plan. The City Council shall be the final arbiter of whether the Project, as designed, is compatible
with the City's Downtown Redevelopment Plan. The Project shall also be designed to comply with all
applicable zoning, subdivision and other land use regulations of the City and other governmental
entities having jurisdiction.
4. The Developer will provide the City with a plan for financing the Project which includes a minimum
equity contribution by the Developer of 25% of the total Project costs.
5. The Developer must demonstrate to the City that it has the capacity to successfully complete the
Project and that the City's financial assistance is necessary for the proposed Project to occur.
6. All determinations regarding the suitability of the site for the proposed Project are the sole
responsibility of the Developer to determine for itself. The City makes no representations or
warranties that the site under consideration by the Developer is suitable or will sustain the proposed
Project.
7. The City will analyze the documents, plans, materials and data supplied by the Developer (the
"Application") and determine if the Project qualifies for TIF.
8. If the Project meets all the criteria discussed herein the City will negotiate a tax Increment Financing
Agreement with the Developer. The City Council will act reasonably in determining whether the
Project meets applicable criteria, including but not limited to financing, TIF statutory requirements
and zoning requirements.
9. Notwithstanding Paragraphs 1 through 8 above, nothing in this Resolution is intended to bind the
Council to provide the Developer with tax increment financing. This Resolution is intended to
demonstrate the City's interest in moving forward with the Developer.
PASSED AND ADOPTED THIS 27TH DAY OF FEBRUARY, 2001.
Mader X Mader
Ericson X Ericson
Gundlach X Gundlach
Petersen X Petersen
Zieska X Zieska
YES
NO
R:\RESOLUTI\ADMINRES\200 1 \0 1-24. DOC
MEETING DATE:
AGENDA #:
PREPARED BY:
AGENDA ITEM:
DISCUSSION:
AL TERNATIVES:
CITY COUNCIL AGENDA REPORT
DECEMBER 17, 2001
8B
DONALD RYE, PLANNING DIRECTOR
CONSIDER APPROVAL OF ORDINANCE AMENDING
SECTION 1102.1100 OF THE CITY CODE RELATING TO
THE DOWNTOWN BUSINESS DISTRICT AND APPROVING
SUMMARY PUBLICATION
History The City Council has considered this issue at the November 5th
and December 3rd City Council meetings. At both meetings, the
Council directed staff to make changes to the text of the ordinance.
The most recent request for modification dealt with expansion of non-
conforming uses.
Issues As noted, staffwas asked to modify the language regarding non-
conforming uses. Consequently, the following language has been
added to the non-conforming language of the C-3 District.
Such land uses may expand their size, provided that the expansion
occurs on the parcel of record occupied by the use as of the effective
date of this ordinance. Expansion on properties acquired after the
effective date of this ordinance is prohibited.
This language will allow existing uses to expand on their existing
property but not on property acquired after this ordinance becomes
effective.
The other issue is publication. The Code allows summary publication
of ordinances. Attached is a summary of the Downtown ordinance.
Staff is requesting approval of summary publication.
Conclusion The attached language should accomplish the Council's
goals concerning non-conforming uses.
1. Approve Ordinance OI-xx and authorize summary publication
2. Deny Ordinance OI-xx
162~(jlt!'Mg'I~~1Jd.\?eJ!l~~"iDWffil\B!i~;tM:h~~a 55372-1714 / Ph. (952) 447-4230 / Fax (952) 447-4245
AN EQUAL OPPORTUNITY EMPLOYER
3. Continue this case for specific reasons
REVIEWED BY:
L:\O I files\O I ordamend\Zoning\downtown \ccreportl2170 I.doc 2
ORDINANCE 01-XX
AN ORDINANCE AMENDING SECTION 1102.1100 OF THE CITY CODE
RELATED TO ZONING BY REPEALING SECTION 1102.1100 IN ITS ENTIRETY
AND ADOPTING SECTION 1102.1100 IN THE DOCUMENT ENTITLED PUBLIC
HEARING DRAFT DATED OCTOBER 22,2001 AS AMENDED
THE CITY OF PRIOR LAKE DOES ORDAIN:
1. The City Council has considered the advice and recommendations of the Planning
Commission, staff reports and other pertinent materials in Planning Case Number
01-045 as well as the testimony of interested persons at the public hearing on
October 22,2001.
2. Section 1102.1100 of the City Code is hereby repealed.
3. The City Council hereby makes the following Findings of Fact:
. On October 22, 2001, the Planning Commission held a public
hearing following published notice as required by State statute on
the draft ordinance for the Downtown area and considered the staff
report and testimony from interested individuals.
. Following the public hearing, the Planning Commission adopted
three amendments to the draft ordinance and an amendment to the
zoning map, which amendments are highlighted in the attached
Exhibits A and B.
. This ordinance is consistent with, and aids in the implementation
of, the City's Comprehensive Plan, as amended, adopted April,
1999 and is rationally related to promoting necessary and
legitimate City purposes.
. This ordinance advances the ability of the City to guide the future
development and redevelopment of the Downtown area.
. This ordinance directly supports and implements Goal B, Objective
No.2, Policy d. (1) of the Comprehensive Plan (Chapter 2, page 28)
that states "courage and provide for the revitalization of the City
through the development or redevelopment of existing and new
commercial and industrial areas."
. This ordinance directly supports and implements Goal B,
Objective No.2, Policy e. that states "Establish a theme for
positive identification for redevelopment of existing commercial
areas in focal locations including.. . Downtown."
16200 &~ ffi~OO,grd:afu,efid~4mmgM~5\QW~1\1N,C1P~C\'9B~~'f230 / Fax (952) 447-4245
AN EQUAL OPPORTUNITY EMPLOYER
_,,"~__~_.._........~"_~_....~_._._..,._,.,~.__~"~.n"'+_"_'__.,~_",_,~"~,,_~__,_,,,~,'>...._~'4-A_'__.~_""~__'__"''''
· This ordinance directly supports and implements Goal b. Objective
4, Policy a. of the Comprehensive Plan that states "Encourage,
regulate and promote non-polluting and aesthetically pleasing
commercial and industrial development."
1. The document entitled Public Hearing Draft-lO/22/0l as modified by adopted
motion of the Planning Commission at its meeting of October 22, 200 1 and as
further modified by the City Council at it's November 19th meeting and attached
hereto as Exhibit A, Downtown Zoning District 12/03/01 and the amended zoning
map attached hereto as Exhibit B are hereby adopted and hereby replaces Section
1102.1100 in its' entirety.
2. The contents of Planning case file 01-045 are herby entered into and made part of
the public hearing record and the record of decision for the case.
3. This ordinance shall take effect upon its' passage and publication. Summary
publication is hereby authorized.
Passed by the City Council of the City of Prior Lake, Minnesota this 17th day of
December, 2001.
Wesley M. Mader, Mayor
ATTEST:
Frank Boyles, City Manager
L:\O 1 files\O 1 ordamend\Zoning\downtown\ORDINANCE adopting.doc
EXHIBIT A
DOWNTOWN ZONING DISTRICT 12/17/01
1102.1100: "C-3" Specialty Business Use District. The purpose of the "C-3" Specialty
Business Use District is intended to provide for a variety of commercial
and residential uses within the framework of a traditional downtown area.
The district also contemplates and provides for pedestrian circulation,
urban and civic design and the creative reuse of existing buildings.
The C-3 Specialty Business District is designed to express the City's
commitment to maintain and enhance the vitality of the Downtown area by
establishing minimum criteria for the development and redevelopment of
commercial, residential and public buildings while promoting amenities
intended to attract business, residents and visitors. Specific objectives
include:
. To improve the visual quality of Downtown.
. To reinforce the physical character of Downtown by focusing on
the design context.
. To expand the employment base and residential population of
Downtown.
. To preserve and reuse older buildings as appropriate while
establishing standards for the construction of new ones.
. To reinforce and enhance a compact development pattern.
. To accommodate and promote commercial, residential,
educational, cultural and governmental uses within the Downtown.
. To establish clear development and redevelopment guidelines in
order to provide effective responses to typical development issues.
1102.1101
Permitted Uses. The following uses are permitted in the "C-3" Specialty
Business Use District if the use complies with the Commercial
Restrictions and Performance Standards of subsection 1102.1300.
16200 EWI~OB'kek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (952) 447-4230 / Fax (952Ylf.f1-4245 1
AN EQUAL OPPORTUNITY EMPLOYER
11 02.11 02
12/10/01
(1) MedicallDental Offices
(2) Retail - The following types of retail use are considered
appropriate for the Downtown area. Retail ~:lo]'e~: shall n01 c:;cccd
5,0(\0 square feel in Do:)]' area. c:;C'.::pl :lS ~t conditional LIse.
· Antique stores
· Bakeries, delicatessens, bagel shops, ice cream shops and
other specialty food stores, not including drive-in or
drive-through facilities.
· Bicycle sales and repair
· Bookstores
· Camera stores
· Clothing or shoe stores
· Drugstores
· Florists
· Jewelry stores
· News stands
· Hardware stores
· Liquor stores
· Tobacco stores
· Toy stores
· Video sales and rental
· Cafe or coffee shop
· Printing Process/Supplies
(3) Showrooms for merchandise such as home furnishing,
appliances, floor coverings and similar large items, not including
motor vehicles, with a maximum floor area of 10,000 square feet.
(4) Offices
(5) Services
(6) Libraries
(7) Police and Fire Stations
(8) Business Services
(9) HoteLn\1otel
(10) Schools and studios for arts, crafts, photography, music, dance,
exercise or similar courses of study
(11) Museums/art galleries
(12) Clubs and Lodges With and Without Liquor Licenses.
(13) Private Entertainment (Indoor).
Uses Permitted With Conditions. A structure or land in a "C-3" Specialty
Business Use District may be used for one or more of the following uses if
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its use complies with conditions stated in subsection 1102.1300 and those
specified for the use in this subsection.
(1) Adult Day Care. Conditions:
a. A minimum of 150 square feet of outdoor seating or exercise area
shall be provided for each person under care.
b. The facility shall not be located fronting Main Avenue, Dakota
Street or C.R. 21.
(2) Dry Cleaning, Laundering with route pick-up and delivery. Conditions:
a. The use shall not exceed 5,000 square feet in area.
b. Outside storage and parking of trucks involved in the operation of
the business is limited to trucks and vans with a manufacturer's rated cargo
capacity of 1 ton or less.
c. Outside vehicle storage shall be screened from any "R" Use District
by a bufferyard, as determined by subsection 1107.2003.
(3) Group Day Care/Nursery School. Conditions:
a. Outside play space must be provided consistent with the
requirements of State statutes and such space shall be screened with
a bufferyard Type C as defined in subsection 1107.2005.
b. An off-street pedestrian loading area shall be provided in order to
maintain vehicular and pedestrian safety.
c. Outdoor play areas shall be located a minimum of 200 feet from any
roadway designated to the Comprehensive Plan as a principal
arterial.
d. The facility shall not be located fronting Main Avenue, Dakota
Street or c.R. 21.
(4) Park/Open Space. Conditions:
a. The principal structure shall be located a minimum of 50 feet from a
lot in an "R" Use District.
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12/10/01
b. Areas designated for group activities shall be located a minimum of
25 feet from a lot in an "R" Use District.
c. The entire site other than that taken up by structures, required buffer
yards, or other landscaped areas shall be surfaced with a material to
control dust and drainage.
(5) Public Service Structures. Conditions:
a. All exterior building faces shall comply with subsection 1107.2200.
b. All structures shall be located a minimum of 10 feet from any
abutting property located in an "R" Use District.
c. All service drives shall be paved.
(6) Multiple Family Dwellings. Conditions:
a. Multiple family dwellings with their primary frontage on Main
Avenue or Dakota Street must be in combination with another
permitted use, as specified in Section 1102.1103. Residential units
shall not be located on the ground level or street level of the
development. This is in keeping with the objective of promoting
commercial pedestrian traffic on the primary commercial streets.
b. Safe and adequate pedestrian access to open space, plazas and
pedestrian ways shall be provided.
(7) Elderly Housing. Conditions:
a. The building design and placement provide a residential
environment with limited exposure to noise and traffic.
b. Safe and adequate pedestrian access to open space, plazas and
pedestrian ways shall be provided.
c. Site access shall be located so that access can be provided without
generating significant traffic on local residential streets.
d. The site shall contain a minimum of 200 square feet of usable open
space per dwelling unit, and no more than half of the usable open
space shall be located in the front yard. Alternatively, public parks
or plazas within 300 feet of the site may be used to meet this
requirement.
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e. A minimum of 25% of the usable open space provided on the site
shall be developed as outdoor recreation or garden areas.
f. A minimum of 900 square feet of lot area is provided for each
dwelling unit.
g. The minimum spacing between buildings shall be at least equal to
the average heights of the buildings except where dwellings shall
common walls.
h. Buildings shall be located a minimum of 15 feet from the back of the
curb line of internal private roadways or parking lots.
1. Covenants running with the land in a form approved by the City
Attorney that restricts the use of the property for occupancy by the
elderly shall be recorded against the property.
J. The development shall provide a lounge or other inside community
rooms amounting to a minimum of 15 square feet for each unit.
(8) Community Centers. Conditions:
a. An off-street passenger loading area shall be provided in order to
maintain vehicular and pedestrian safety.
b. Outdoor areas intended for group activities shall be located at least
25 feet from any lot in an "R" Use District and shall be buffered
from such residential lot with a bufferyard Type C as defined in
subsection 1107.2005.
(9) Bed and Breakfast Establishments. Conditions:
a. The required parking shall be screened with a bufferyard.
b. The total number of guests shall be limited to 6.
c. Not more than 50% of the gross floor area of the residence shall be
used for the guest room operation.
d. Only exterior alterations, which do not alter the exterior appearance
from its single-family character, will be allowed.
e. Accommodations may be provided to a guest for a period not
exceeding 14 days.
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f Food service shall be limited to breakfast and afternoon tea.
g. Rented rooms shall not contain cooking facilities.
h. Rooms used for sleeping shall be part of the primary residential
structure and shall not have been constructed specifically for rental
purposes.
1. Parking shall not be located within the front yard. No more than
50% of the rear yard may be paved Qr used for parking.
(10) Banks. Conditions:
a. The use shall not include any drive-through or drive-up windows or
facilities.
(11) Wholesale sales, in combination with retail or office use. Conditions:
a. The use shall be limited to 50% of the floor area ofthe structure.
b. Total floor area of the structure shall not exceed 10,000 square feet.
(12) Restaurants With and Without Liquor Licenses. Conditions
a. Access shall be located so as to avoid generating significant
traffic on local residential streets.
b. Drive-through, drive-in and outdoor pick-up facilities are not
permitted.
1102.1103 Uses in Combination. In keeping with the purpose of the "C-3" Specialty
Business Use District, combinations of the following uses on a single parcel and/or within a
single building are encouraged.
· Multiple family dwellings
. Retail
· Offices
. Services
· Studios
· Coffee shops or restaurants
12/10/01
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1102.1104 Accessory Uses. The following uses shall be permitted accessory uses in a
"C-3" Specialty Business Use District:
(1) Parking Lots, in compliance with the Design Standards of Section
1102.1106(5).
(2) Incidental repair or processing which is necessary to conduct a permitted
principal use, provided that it shall not exceed 25% of the gross floor area.
(3) Outdoor seating and service of food and beverages by a restaurant is
permitted as an accessory use to a restaurant if:
a. The use is separated from any adjacent residential use by a building
wall or fence. This provision will not apply if the residential use is
located in an upper story above a restaurant.
b. No speakers or other electronic devices, which emit sound are
permitted outside of the principal structure if the use is located
within 500 feet of a residential district.
c. Hours of operation shall be limited to 7 a.m. to 10 p.m. if located
within 500 feet of a residential district.
d. Additional parking will not be required if the outdoor seating area
does not exceed 500 square feet or 10% of the gross floor area of the
restaurant, whichever is less. Parking will be required at the same
rate as the principal use for that portion of outdoor seating area in
excess of 500 square feet or 10% of the gross building area,
whichever is less.
(4) Outdoor seating and service of food and alcoholic beverages is permitted
as an accessory use if:
a. All the requirements of subsection 3a-d listed above are met.
b. Access to and from the outdoor area shall be through the indoor
seating area. There shall be no direct access to the outdoor seating
area from the parking lot or street.
c. Food service to the outdoor area shall be provided during all hours of
operation.
d. No bar shall be located in the outdoor area, except a service bar for
the exclusive use of the employees.
12/10/01
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(5) Awnings and signs extending over the public right-of-way may be
permitted subject to approval of a "Private Use of Public Property"
agreement in a form authorized by the City Attorney, and the provisions of
subsection 11 07.801.
(6) Outdoor Sales is permitted as an accessory use with the following
conditions:
· The items displayed must be related to the principal use.
· The area allowed for outdoor sales is limited to 30% of the gross floor
area of the principal use.
· The area must be landscaped and fenced or screened with a Bufferyard
Type D from view of neighboring residential uses or abutting any "R"
district.
· A decorative fence or wall a minimum. of 3 feet in height shall be
located between the sales area and any public street or pedestrian way.
· All lighting must be hooded and so directed that the light source shall
not be visible from the public right-of-way or from neighboring
residential properties and compliant with subsection 1107.1800.
· Areas must be hardsurfaced with asphalt, concrete, decorative concrete
interlocking pavers, or other equivalent material approved by the City.
1102.1105 Dimensional Standards
These are the lot requirements for lots in the C-3 District.
· Minimum lot width - 30 feet
· Front yard - minimum setback - 0, maximum setback - 20 feet, measured
from the right-of-way
· Side yard - no minimum setback - maximum setback - 10 feet, unless parking
is located within the side yard
· Rear yard - minimum 10 feet
· Maximum floor area ratio - 3.0
· Minimum floor area ratio- 0.5
· Build-to line. Along Main Avenue, a build-to line is established a distance of
5 feet from the inner edge of the street right-of-way (in most cases, this is the
inner edge of the sidewalk). At least 70 percent of the building fa9ade that
fronts Main Avenue must be built out to this line.
· Maximum height - 35 feet or three stories, whichever is greater. Multiple-use
structures with residential uses on the upper floors may be a maximum of 45
feet.
1102.1106 Design Standards in the "C-3" Specialty Business District
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(1) Purpose of standards. The purpose of this section is to provide guidance
and direction in the development and redevelopment of the Downtown
business district in a manner that reinforces the role of Downtown as the
community focus of government, culture and social interaction. This
section is also intended to assist in the implementation of the guidelines
and recommendations contained in the report entitled Prior Lake
Downtown Streetscape dated August, 2001 as well as the graphics entitled
Main Street Design Guidelines, Main Street Hardscape Design Elements,
Main Street Softscape Design Elements and the Main Street Master Plan.
The City will follow these reports and graphics in designing and
developing the public elements of the streetscape and private owners are
encouraged to follow the recommendation in these documents that are not
expressly spelled out in these regulations when developing or
redeveloping private property.
(2) Applicability. The design standards and the design review process shall
apply to the following activities:
a. All new construction.
b. Any renovation, expansion or other exterior changes to existing
nonresidential and/or multifamily buildings, including repainting.
c. Any development or expansion of parking areas.
d. Any other exterior alteration that requires a building permit.
The standards shall apply only to the building or site elements being
developed or altered. That is, changes to a building shall comply with
those standards that pertain to buildings, while changes to a parking area
shall comply with standards for parking areas, but not for buildings. The
Planning Director will make the initial determination as to which
standards are applicable.
There are many ways to achieve the same design objective. The City may
permit alternative approaches that, in its determination, meet the
objective(s) of the design standard(s) equally well.
(3) Application for Design Review. An application for Design Review shall
be on a form provided by the City, and shall include the following
information, in addition to any information required for site plan review
under Section 1108.903.
a. Elevations. Complete exterior elevations of all proposed buildings and
existing buildings if they are joined to new development. Elevations
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12/10/01
should be drawn at an appropriate scale (usually l;4" = I') and should
show:
· All signs to be mounted on the building(s) or erected on the site;
· Designations of materials and colors to be used on all exterior
facades
b. Materials sample. Material samples shall be presented, including color
and material type for walls and roof.
c. Color samples. Samples of all principal and secondary colors to be
used.
d. Context. Photographs of surrounding buildings on the same block or
street, to address issues of context.
(4) Administration and Review Procedures. The following design standards
shall supplement the standards and process outlined in Section
1108.900, Site Plan Review. After receipt of a complete application, the
Planning Department will refer the application to City Departments and
to other parties having jurisdiction. The Planning Department will then
review the proposed development for compliance with the guidelines in
this Section and other applicable ordinances. Within 60 days of receipt
of a complete application, the Planning Staffwill take action to approve
or deny the application. If a site plan review is needed, the two
processes will be conducted concurrently.
(5) Design Standards
The following design standards shall supplement the standards and process
outlined in Section 1108.900, Site Plan Review.
a. Compatibility with lake theme. Site elements, including landscaping,
lighting, signage, etc. should be compatible with the lake theme for public
improvements within the downtown, as expressed in the Design Theme
Standards and Criteria.
b. Renovation of Existing Buildings. Inappropriate fayade additions should
be removed to the extent feasible during building renovation. These may
include, but are not limited to, wood or plastic shake mansard roofs, plastic or
oddly shaped awnings, window opening infills or surrounds designed to reduce
the size of window openings, modern siding materials inconsistent with the
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original fa<;ade, and light fixtures inconsistent with the building's original style
or the downtown lake theme.
. Masonry buildings should be cleaned as necessary to lighten the
overall color.
. New masonry work should match the color and materials or the
original fa9ade.
. Wherever practical, fa9ade renovations should not destroy or cover
original details on a building. Brick and stone facades should not be
covered with artificial siding or panels.
. Original window and door openings should be maintained wherever
practical. New window and door openings should maintain a similar
horizontal and vertical relationship as the original.
c. General in fill principles. Infill buildings should reflect the original design
of surrounding storefront buildings in scale and character. This can be
achieved by maintaining similar setbacks, building height and proportions,
cornice lines, horizontal lines of windows and openings, and compatible
building materials and colors. Where such original buildings are missing or
have been extensively altered, the other design standards in this section shall'
be applied.
d. Building faf;ade width and articulation. Buildings should be oriented with
the primary axis perpendicular to the primary fronting street. A building width
of 40 feet or less is encouraged. Buildings of more than 40 feet in width shall
be divided into smaller increments (between 20 and 40 feet) through
articulation of the fa9ade. This can be achieved through combinations of the
following techniques, and others that may achieve the same purpose.
. Fa9ade modulation - stepping back or extending forward a portion of
the fa9ade
. Vertical divisions using different textures or materials (although
materials should be drawn from a common palette)
. Division into storefronts, with separate display windows and entrances
. Variation in roof lines by alternating dormers, stepped roofs, gables, or
other roof elements to reinforce the modulation or articulation interval
. Arcades, awnings, window bays, arched windows and balconies at
intervals equal to the articulation interval
e. Building faf;ade articulation - horizontal
. Most traditional storefront commercial buildings have a strong pattern
of base, middle and top, created by variations in detailing, color and
materials. New buildings should respond to this pattern.
. New buildings should have articulated tops. This articulation might
consist of pitched roofs, dormers, gable ends or cornice detailing.
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· The ground level of any multi-story structure should be visually
distinct from the upper stories. This can be achieved through the use of
an intermediate cornice line, a sign band, larger window openings,
projections, awnings and canopies, changes in materials or detailing,
or similar techniques.
· While diversity is encouraged, materials, colors and textures on all
levels of a building's facade should be drawn from a common palette,
and should be visually compatible with each other.
f. Two-story expression. One-story buildings should be designed to convey
an impression of greater height through the use of pitched roofs with dormers
or gables facing the street, or the use of an intermediate cornice line to separate
the ground floor and the upper level.
g. Entrances. The main entrance should always face the primary street, with
secondary entrances to the side or rear, and should be placed at sidewalk grade.
Entrances should be emphasized and made more obvious through the use of the
following techniques or similar ones:
· Canopy, portico, overhang, arcade or arch above the entrance
· Recesses or projections in the building facade surrounding the entrance
· Peaked roof or raised parapet over the door
· Display windows surrounding the entrance
· Architectural detailing such as tile work or ornamental moldings
· Permanent planters or window boxes for landscaping
h. Windows and doors. Windows and doors should comprise at least 40
percent of the area of any ground floor fa9ade facing a public street (defined as
extending from ground level to 12 feet in height). Windows should have a
generally vertical orientation.
Windows and doors should comprise at least 10 percent of the ground level
side or rear fa9ade facing a public right of way, parking area or open space.
Qualifying windows or doors must be transparent, allowing views into and
out of the interior, or may include display windows set into the wall.
Reflective glass is not permitted.
i. Awnings. When awnings are used, they should extend only across individual
storefronts, not across more than one storefront or building. Awnings should be
a simple shed form; rounded awnings are prohibited. Canvas or other fabric
awnings are most desirable; metal, wood shake and plastic should not be used.
Internally-illuminated awnings are prohibited.
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j. Side and rear facades. Side and rear facades that contain customer entrances
or that adjoin off-street parking areas should be treated as extensions of the
storefront or front fa9ade. Building materials should be of similar quality as
those on front facades, although detailing may be simpler. Entrances should be
clearly delineated using the techniques mentioned above.
k. Mechanical equipment screening
Utility service structures such as utility meters, transformers, above ground
tanks, refuse handling, loading docks, maintenance structures and other
ancillary equipment must be inside a building or be entirely screened from off-
site views by a decorative fence, wall or screen of plant material of sufficient
height. Fences and walls shall be architecturally compatible with the primary
structure. Loading docks or doors should always be located on a side or rear
elevation.
I. Colors. Building colors should consist predominantly of subtle, neutral or
muted colors, with low reflectance. Recommended colors include browns,
grays, tans, beiges, and dark or muted greens, blues and reds. No more than
two principal colors may be used on a fa9ade. Accent colors not to exceed 10%
of the area of the building fa9ade shall be from the same color palette as the
principal colors. This standard does not apply to murals or other approved
public art.
m. Signs
Within the "C-3" District, maximum sign area per property shall not exceed 1 square foot
of sign area per linear foot of street fayade at the front yard. One sign is allowed for each
usable public entry to a building. Wall signs and projecting signs are permitted. Free-
standing signs are permitted only in an existing front yard.
Projecting signs: Projecting signs shall not exceed 8 square feet in area and may project
no more than 4 feet from the building face. Signs must maintain a minimum clearance of
9 feet above a sidewalk and 15 feet above driveways or alleys. No projecting sign shall be
located within 25 feet of another projecting sign.
Sign design guidelines
Signs should be architecturally compatible with the style, composition, materials, colors
and details of the building, and with other signs on nearby buildings.
Signs should be positioned so they are an integral design feature of the building, and to
complement and enhance the building's architectural features. Signs should not obscure
or destroy architectural details such as stone arches, glass transom panels, or decorative
brickwork
12/10/01
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Sign Colors. Sign colors shall be compatible with the building fa9ade to which the sign
is attached. No more than three colors should be used per sign, unless part of an
illustration. A combination of soft/neutral shades and dark/rich shades within the palette
of the building colors shall be used.
Materials. Sign materials shall be compatible with the original construction materials
and architectural style of the building facade on which they are to be displayed. Natural
materials such as wood, stone and metal are preferred but other materials that are equally
durable and replicate the appearance of natural materials are acceptable.
Illumination. External illumination of signs is permitted by incandescent, metal halide
or fluorescent light that emits a continuous white light. Light shall not shine directly onto
the ground or adjacent buildings. Neon signs are permitted in windows. Internally lit box
signs and awnings are not permitted, with the exception of theater marquees.
n. Parking
Parking location. If off-street parking is provided within the "C-3" District, it shall be
located to the side or rear of the principal building, not between the building and the
street. Parking may not occupy a corner location.
Parking lot screening. Parking lots adjoining the sidewalk or a walkway shall be
separated from it by a landscaped yard at least 4 feet wide, containing a decorative fence
or wall between 2 ~ and 3 feet in height. One canopy tree shall be provided for each 25
linear feet of parking lot frontage on a public street or accessway.
Parking lot landscaping. The corners of parking lots and all other areas not used for
parking or vehicular circulation shall be landscaped with turf grass, native grasses or other
perennial flowering plants, vines, shrubs and trees. Such spaces may include architectural
features such as benches, kiosks or bicycle parking.
The interior of parking lots containing 20 or more spaces shall contain landscaped areas
equal to at least 15% of the total parking lot area, including a minimum of one deciduous
shade tree per 10 parking spaces. Lawns or landscaped areas within 10 feet of the perimeter
of the parking lot may be counted toward the required landscaping.
1102.1106 NON-CONFORMITIES: The adoption of this ordinance is not intended to
create non-conforming uses within the C-3 Specialty Business District. All land uses within
the C-3, Specialty Business District existing as of the effective date of this ordinance shall
be allowed to continue in operation and are allowed to remodel or upgrade their property
pursuant to the applicable provisions of this section. Such land uses may expand their size,
provided that the expansion occurs on the parcel of record occupied by the use as of the
effective date of this ordinance. Expansion on properties acquired after the effective date of
this ordinance is prohibited.
12/10/01
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1102.1107 MODIFICATIONS: Any person seeking to remodel an existingbui1ding in
the C-3, Specialty Business District may seek a modification of the Design Standards
contained in Section 1102.1106 when it can be demonstrated the application of the
Design Standards will result in undue hardship or practical difficulties to the owner or
developer of the affected property. An application for such modifications shall
accompany the building permit application and shall state the rationale for each such
request. The rationale shall include an estimate of any financial costs resulting from full
compliance with the Design Standards. The request for modification of the Design
Standards shall be processed under the procedural requirements for a conditional use as
outlined in Section 1108.206 of this Ordinance.
12/10/01
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SUMMARY OF ORDINANCE 01-XX AMENDING THE ZONING ORDINANCE BY
REPEALING SECTION 1102.1100 OF THE ZONING ORDINANCE AND
ADOPTING A NEW SECTION 1102.1100
On November 5,2001, the City Council adopted Ordinance 01-XX amending the zoning
ordinance by repealing Section 1102.1100 which is the Downtown zoning district and
adopting a new Section 1102.1100. Minnesota Statutes permit the publication of a
summary of this ordinance and the City Council has found that summary publication of
this ordinance will meet the intent of the statute.
Summary of Ordinance 01-XX
, This ordinance creates new regulations for the C-3 Specialty Business District which is
the zoning district covering the Downtown Business District. The ordinance consists of
six major sections as follows:
Section 1102.1101 Permitted Uses
Section 1102.1102 Uses permitted with conditions
Section 1102.11 03 Uses in combination
Section 1104.1104 Accessory uses
Section 1102.1105 Dimensional standards
Section 1102.1106 Design standards
Section 11 02.11 01 Permitted uses-This section enumerates the uses that are permitted in
the district as a matter of right. It places restrictions on the type and size of retail uses
allowed in the district and further restricts the establishment of heavier commercial uses.
Section 1102.1102 Uses permitted with conditions-This section enumerates the uses are
permitted in the district subject to compliance with conditions in the ordinance. These
uses do not require review by the Planning Commission or City Council
Section 1102.1103 Uses in combination-This is a new section that encourages the
combination of certain uses on a single parcel or building. The uses include multiple
family dwellings, retail, offices, services, studios and restaurants.
Section 1102.1104 Accessory uses-This section enumerates the uses that are allowed as
accessories to principal uses allowed in the district.
Section 1102.1105 Dimensional standards- This section lists the requirements for lot
sizes, building height and setbacks, floor area ratios and establishes a build-to line for
16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (952) 447-4230 / Fax (952) 447-4245
AN EQUAL OPPORTUNITY EMPLOYER
buildings fronting on Main Avenue. This requires at least 70 per cent of a buildings
fa<;ade to be located within 5 feet of the sidewalk or lot line.
Section 1102.1106 Design standards-This section contains design standards to be applied
to new developments or renovations of existing structures. The standards include
requirements for architectural and site design elements including building orientation,
fa9ade treatments, entrances, windows and doors, awnings, mechanical equipment
screening, colors, signs, building materials, lighting and parking lots.
CITY COUNCIL AGENDA REPORT
December 17, 2001 ~
~~ank Boyles, City Manag~
AGENDA ITEM: CONSIDER APPROVAL OF FINAL REPORT ON PRIVATE USE OF PUBLIC
RIGHT-OF-WAY.
DISCUSSION: Historv: At the December 3, 2001 meeting, the City Council received and
discussed a report regarding private use of public property for parking purposes.
A copy of that report is attached. At the meeting, the Council made revisions to
guidelines and directed that this item be placed upon the December 17th agenda
for final action.
Current Circumstances: I have attached a one-page document entitled
Guidelines Regarding Enforcement of Private Use of Public Right-of-Way.
believe the guidelines reflect the direction provided by the City Council.
One clarification is in order. There are within the community, lots which because
of their typography have no other place to park except on an improved right-of-
way parking area and the typography of the lot precludes a driveway. In these
instances we would not seek removal of the parking area if common sense
confirms that no other option is available - even if a public improvement project is
contemplated. We would be satisfied with an executed private use of public right-
of-way agreement.
Conclusion: The Council should review the proposed guidelines, amend and
approve them if appropriate.
ALTERNATIVES: (1) Approve the guidelines as proposed or as amended.
(2) Take no action.
RECOMMENDED
MOTION: As determined by the Council
16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (952) 447-4230 / Fax (952) 447-4245
1:\COUNCTL\AGNRPTS\2001\1217 _8CDOC AN EQUAL OPPORTUNITY EMPLOYER
Guidelines Reaardina.Enforcement of Private Use
of Public RiQht-of-Wav ParkinQ Area
adopted December 17, 2001
1. Articles will be prepared tor the Prior Lake American and Wavelength. At least one cable program will be done on the
topic. The intormation will also be posted on the web page.
2. Letters will be sent to each ot the 81:t homeowners advising them ot this policy and the reasons tor it.
3. For all existing right-ot-way drives and parking areas, the property owner will be asked to enter into a Private Use ot
Public Right-ot-Way agreement with the City. Homeowners will be contacted in writing twice, it need be, 15 days apart.
It after 30 days and a tollow-up telephone call, we do not have an executed Private Use ot Public Property agreement,
or progress toward receiving one, staff will proceed to litigate through the prosecutor's office.
4. Right-ot-Way drives which are included in a road reconstruction project will not be re-built by the City unless the City
determines that this is the only teasible parking spot tor the property because ot steep slopes, lot configuration, etc..
Homeowners in the project area will be advised ot this tact in advance.
5. Right-ot-Way permits will not be issued tor improvement ot drive or parking areas in the right-at-way which are initiated
after the City Council approves these guidelines. Right-ot-Way drives or parking areas will be removed by the property
owner or the City will initiate criminal litigation.
16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (952) 447-4230 / Fax (952) 447-4245
AN EQUAL OPPORTUNITY EMPLOYER
CITY COUNCIL AGENDA REPORT
December 3, 2001
9C
Frank Boyles, City Manager
AGENDA ITEM: CONSIDER APPROVAL OF REPORT REGARDING PRIVATE USE OF
PUBLIC RIGHT-OF-WAY FOR PARKING PURPOSES.
DISCUSSION: History: The City obtains right-of-way for neighborhood streets through the
platting process. In addition to providing the actual location for City streets,
sidewalks, trails, sewer and water, right-of-way provides property on each side of
the road for snow storage, sign installation and utilities
Over time, people have made improvements to the right-of-way areas in front of
their homes to afford greater parking space than may be available in their
driveway or on the street. Such usage can interfere with the placement and
repair of small utilities. It can also interfere with snow plowing and snow storage.
As residents observe their neighbors installing parking areas in the right-of-way,
they consider doing the same. In this way, the problem grows.
In 1999, the City Council received a complaint about an individual who excavated
the right-of-way area, installed landscape boulders and a concrete parking area
to provide an additional parking for his vehicles and recreation equipment.
The City Council directed that an inventory be accomplished and a report
prepared regarding what could be done to address this issue. That is the purpose
of this agenda item.
Current Circumstances: From May 3rd to June 28, 2000, Steve Horsman
surveyed about 95% of the residential properties in Prior Lake. His inventory
focused upon parking areas separate from driveways within the right-of-way.
A total of 81 parking areas were identified. The greatest percentage of parking in
the right-of-way was found in older established areas of the community and
particularly lakeshore properties with steep slopes, bluffs or irregular-shaped lots.
This is not surprising since these are likely to be the lots with the least parking
available off-street. In some instances, the streets themselves may also be
narrow, undermining available on-street parking.
I do not recommend that the City initiate removal of these drives. The fact that 59
of them are bituminous increases the cost of removal. The City may have had a
hand in creating the problem as previous staff members have advised me that
the City actually installed some of these in street reconstruction areas in an effort
to be resident friendly.
16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (952) 447-4230 / Fax (952) 447-4245
I :\COU NCI L \AGN RPTS\200 1 \ROW. DOC AN EQUAL OPPORTUNITY EMPLOYER
STAFF
RECOMMENDED
ACTION: I recommend a three-fold approach for dealing with this issue:
1. For New Drive / Parkinq Areas: The City has developed a driveway permit.
Persons who wish to accomplish any construction work in the right-of-way
require a permit to do so. Since the permit requires conformance with City Code
which prohibits right-of-way drives and parking areas, we should be able to stop
those which we are asked about. An information campaign is needed to address
those who do not ask the City. Periodic articles in the Wavelength, Prior Lake
American and the web page should help. Once this campaign takes place it
would be my intent to have the property owner remove any new improvements
accomplished without a permit.
2. For Existinq Drives Which Are Part of the Five-Year Capital Improvement
Proqram: For properties which will be part of the five-year street reconstruction
program, we will not re-build the right-of-way drives and/or parking areas. This
will be part of our on-going policy. Next year, for example, Pixie Point Circle will
be reconstructed. Several right-of-way parking areas have been identified in this
area. Staff would propose that these parking areas be eliminated as part of this
project.
3. For Drives Which Are Not Yet Part of the Capital Improvement Proqram: We
would mail a notice to each property owner to arrange to execute a Private Use
of Public Property Agreement. This action will indemnify the City, authorize
removal of the structure if any City or utilities work is required in the right-of-way,
and prohibit the expansion of the existing facilities. General public information
efforts will supplement our mailings.
FISCAL IMPACT: Initiation of this effort will require additional staff time. By initiating the notification
process this winter, we can attempt to take advantage of non-peak time. For
practical purposes, there will not be any CIP related improvements in the right.,of-
way for the remainder of this construction season, nor do we anticipate at this
time any demolition work in any of the improved right-of-ways.
ISSUES: The Council should determine if they wish the staff to pursue this program. If so,
the staff should be directed to follow this approach or any modification the
Council deems appropriate.
ALTERNATIVES: (1) Pursue this program as recommended by staff.
(2) Pursue this program with modification.
(3) Take no action.
RECOMMENDED
MOTION: As the Council may determine.
I :\COUNCIL \AGN RPTS\200 1 \ROW. DOC
DATE:
AGENDA #:
PREPARED BY:
AGENDA ITEM:
DISCUSSION:
CITY COUNCIL AGENDA REPORT
DECEMBER 17, 2001
80
SUE MCDERMOTT, CITY ENGINEER
CONSIDER APPROVAL OF A RESOLUTION EXTENDING THE
PROFESSIONAL SERVICES CONTRACT TO PROVIDE CONSTRUCTION
OBSERVATION SERVICES FOR DEVELOPER INSTALLED
IMPROVEMENTS WITH WSB & ASSOCIATES, INC.
HISTORY
With each development agreement, the City of Prior Lake collects a
construction observation fee equal to 6% of the developer-installed
improvements. This fee pays for the cost of construction observation provided
primarily by a consulting engineer with support from the City staff. At the
October 2, 2000 meeting, the City Council approved Resolution 00-99
authorizing the consulting firm of WSB & Associates, Inc. to provide these
services for a period ending December 31, 2001 with the understanding that
the contract may be extended at the City's option pending Council
consideration of this report.
CURRENT CIRCUMSTANCES
During the year 2001, WSB has provided construction observation services for
Deerfield, Wensmann 15t and 2nd Additions, Wilds 5th Addition, Wilds South,
Woods at the Wilds, Regal Crest, Meadow View and Creekside Estates.
All of the projects are substantially complete with only the final lift of
bituminous and varying punch list items left to be completed at each site. With
85% to 95% of the work complete, the projects have been invoiced from
approximately 60% to 80% of the amount allocated for construction
observation. At the completion of each project, we project that the costs will
be approximately 6% of the construction observation fee. All of the projects
will carry over to 2002 when punch list items and final lift of bituminous will be
completed. At the time it is expected that the construction observation fee will
be reviewed and modified (in construction with the new developer's
agreement).
In addition, the WSB staff member has provided construction observation
services in accordance with the requirements outlined in the contract and in
accordance City staff expectations.
~oo Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (952) 447-4230 / Fax (952) 447-42451
AN EQUAL OPPORTUNITY EMPLOYER
FISCAL IMPACT:
ALTERNATIVES:
RECOMMENDED
MOTION:
WSB3
ISSUES
In addition to completion of the above-mentioned developments, the
Development Review Committee has reviewed or met with developers on
several potential projects for 2002. These developments will require ongoing
construction observation services. For consistency in construction observation
over time and to have only one repository for related records, the staff is
suggesting a multiyear contract with W.S.B.
CONCLUSION
Staff recommends extending the construction observation contract with WSB
& Associates through December 31, 2004. Staff will continue to monitor the
contract for project costs and consultant services.
A fee for construction observation is required with each Development Contract.
These services would be paid from the 6% fee. Staff will continue monitor the
construction observation budget for each development project to ensure the
budget is not exceeded and that the 6% fee is commensurate with actual city
expenses.
There are three alternatives for the City Council to consider:
1. Approve a Resolution extending the Standard Professional Services
Contract with WSB & Associates, Inc. to provide construction
observation services for developer-installed improvements through
December 31,2004.
2. Deny this item for a specific reason and provide staff with direction.
3. Table this item until some date in the future.
A motion and second to approve a Resolution extending the Standard
Professional Services Contract with WSB & Associates, Inc. to provide
construction observation services for developer installed improvements.
REVIEWED BY:
2
RESOLUTION01P ;ijD
RESOLUTION AUTHORIZING WSB & ASSOCIATES, INC. TO PROVIDE
CONSTRUCTION OBSERVATION SERVICES FOR DEVELOPER.INSTALLED IMPROVEMENTS
SECOND BY:~
WHEREAS, there is development occurring in the City of Prior Lake and this development requires
construction observation, and
MOTION BY:
sc
WHEREAS, the City can not cost effectively provide these services at its current staffing level, and
WHEREAS, the City adopted Resolution 00-99 entering into a Standard Professional Services
Contract with WSB & Associates, Inc. to provide construction observation services on
October 2, 2000 for a period ending December 31, 2001 which may be extended at the
City's option.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA,
WSB & Associates, Inc. is hereby authorized to provide Construction Observation Services for
developer installed improvements in accordance with their proposal dated February 24, 2000, through
December 31, 2004, and
BE IT FURTHER RESOLVED, that funding for these engineering services will be drawn from the fee
collected by the City in conjunction with Development Contracts and the Mayor and City Manager are
authorized to execute said agreement on behalf of the City.
Passed and adopted this 17th day of December, 2001.
YES NO
Mader " Mader
Ericson ~ Ericson A
Gundlach , Gundlach
Petersen \ Petersen
Zieska \ Zieska
1
{Seal}
Frank Boyles
City Manager
City of Prior Lake
16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (952) 447-4230 / Fax (952) 447-4245
AN EQUAL OPPORTUNITY EMPLOYER
G:\resolutionO 1 \ W S 83. DOC
~
WSB
2002 Rate Schedule
& Associates, Inc.
Billing
Rate/Hour
Principal
Associate
Sr. Projec~ Manager
Project ManagerlEngineering Specialist III
Registered EngineerlEngineering Specialist II
..... Project EngineerlEngineering Specialist I/Sr. Construction Observer
-"'Graduate Engineer
Construction Observer
Engineering Technician IV/Scientist III
-
Engineering Technician III/Scientist II
Engineering Technician II/Scientist I
Engineering Technician I
Office TeChnician II
Office Technician I
Registered Land Surveyor
Survey (Two-Person Crew)
Survey (Three-Person Crew)
GPS Equipment
$108.00
$102.00
$94.00
$86.00
$77.00
$69.00
$60.00
$62.00
$57.00
$53.00
$47.00
$41.00
$50.00
$28.00
$97.00
$115.00
$135.00
$38.00
All costs associated with word processing, vehicle mileage, cell phones, reproduction
of common correspondence and mailing are included in the above hourly rates.
Reimbursable expenses include costs associated with plan, specification and report
reproduction.
Rate Schedule is adjusted annually.
P:\Marker;nii\Templare Texr\2002 Fee Schedule. doc
RESOLUTION 00-99
A RESOLUTION AUTHORIZING WSB & ASSOCIATES, INC. TO PROVIDE
CONSTRUCTION OBSERVATION SERVICES FOR DEVELOPER INSTALLED IMPROVEMENTS
MOTION BY: GUNDLACH
SECOND BY: ERICSON
WHEREAS, there is development occurring in the City of Prior Lake and this development requires
construction observation, and
WHEREAS, the City can not cost effectively provide these services at its current staffing level, and
WHEREAS, the City adopted Resolution 00-19 entering into a Standard Professional Services
Contract with WSB & Associates, Inc. to provide construction observation services on
March 21, 2000 for a six-month period which may be extended at the City's option.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA,
WSB & Associates, Inc. is hereby authorized to provide Construction Observation Services for
developer installed improvements in accordance with their proposal dated February 24, 2000, through
December 31, 2001, and
BE IT FURTHER RESOLVED, that funding for these engineering services will be drawn from the fee
collected by the City in conjunction with Development Contracts and the Mayor and City Manager are
authorized to execute said agreement on behalf of the City.
Passed and adopted this 2nd day of October, 2000.
YES NO
Mader X Mader
Ericson X Ericson
Gundlach X Gundlach
Petersen X Petersen
Zieska X Zieska
{Seal}
16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245
R:\RESOLUTI\ENGINRES\2000\OO-99.DOC AN EQUAL OPPORTUNITY EMPLOYER
CITY COUNCIL AGENDA REPORT
December 17, 2001 ~
~;ank Boyles, City Manage';X1/
AGENDA ITEM: CONSIDER APPROVAL OF PROPOSAL TO RESOLVE OUTSTANDING
CONSTRUCTION-RELATED ISSUES
DISCUSSION: Historv: Since construction of the Library Resource Center was completed, the
City, contractor and architect for the project (Fulco and Meyer, Scherer
Rockcastle, respectively) have been working to resolve issues related to the
entry floor. and interior painting. The entry flooring in the Library / City Perks has
four problems: (1) ridge caused by subfloor spackling; (2) seam separation; (3)
scratches and poor surface condition; and (4) heavy maintenace requirements.
The wall paint has several problems as well: (1) the paint used was not the paint
specified; (2) the paint type cannot be readily cleaned; and (3) drywall spackling,
sanding and preparation was not adequately cleaned leaving particles in the
painted finish.
Current Circumstances: For more than a year now, the parties have met
without identifying a common approach to resolving this matter. In September,
Mayor Mader and City Attorney Pace met with City staff members, the architect
and the contractor. At that meeting we explored the concept that the floor
replacement and repainting costs would be identified and split four ways between
the City, Fulco (contractor), MSR (architect) and the original installer.
Although Fulco expressed some reservations, the City indicated that it had
obtained two quotes of approximately $6000 to accomplish the repainting. The
City also received a quote of $15,269.36 to replace the entry floor. Both Fulco
and MSR objected to the floor replacement quote. We agreed that MSR would
prepare and distribute specifications to re-check the floor bid.
Three contractors bid. Two contractors quoted $13,300 and $13,660
respectively. The third quoted $9729. Because of the wide variance in the
estimates between the City's quote ($15,269.36) and the low quote received from
MSR ($9729), I suggested that the parties use an average of the two middle
quotes as the basis for the cost sharing. On November 9, 2001, I received a
letter from Fulco indicating that they believe that the low bid of $9729 should be
used.
The cost implications are as follows. If the $6000 paint bid is used with the
average of the flooring bids of $13,480, then the cost for each of the four parties
is $4870. If the $6000 paint bid is used with the low quote ($9729), then the cost
for each of the four parties is $3932.
16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (952) 447-4230 / Fax (952) 447-4245
1:\COUNCIL\AGNRPTS\2001\1217 _L1BRARY'~UAL OPPORTUNITY EMPLOYER
In a telephone call last week, Mr. Marquart indicated that they have been unable
to convince either of the original installers to participate in this settlement. In the
interest of getting this completed, I suggested that we split the total cost three
ways rather than four ways. This means that the three-way cost (City, contractor,
and architect) would be $6493 each (using the average floor cost approach).
Conclusion: Mr. Marquart indicated he would check with his boss. I also
contacted Mr. Petit with the same proposal. While I have not heard from either of
them at this writing, I am seeking the Council's approval to confirm for them that
the entire matter can be resolved based upon this proposal.
FINANCIAL
IMPACT:
Resolution of this issue has been very time consuming. I believe that the
permanent solution to the problem involves: (1) painting - $6000; (2) Wainscoting
the entry area ($15,000); and (3) $15,000 for ceramic tile for the entry area. If the
above settlement were reached, the City would receive $12,986 of the total costs
of $36,000 to permanently resolve these issues. The remaining funds would be
the City's responsibility and drawn from the Park Dedication account where the
remaining Referendum funds reside.
ISSUES:
The City could litigate this issue. Given the time which has transpired and the
change in personnel, I believe that there is uncertainty that we will prevail. A
better solution is to resolve the issue and install the permanent solutions for the
walls and floors so the building can be continued to be enjoyed by our residents
at minimum maintenance cost to the City.
ALTERNATIVES:
(1) Adopt a resolution approving the settlement as outlined herein and direct that
the staff implement the agreement and the permanent solutions to the paint
and floor issues drawing the funds from the Park Dedication Account.
(2) Take no action.
RECOMMENDED
MOTION: Alternative (1).
1:\COUNCIL\AGNRPTS\2001\1217 _L1BRARY.DOC
RESOLUTION 01-;&' I tJ I
~~ RESOLUTION APPROVING A PROPOSAL FOR RESOLVING ISSUES
TING TO THE CONSTRUCTION OF THE LIBRARY/RESOURCE CENTER AND
ALLOCATING FUNDING FOR THE CONSTRUCTION OF FLOOR, PAINT AND
WALL PROBLEMS.
Motion By:
JP
Second By:
fvtf1
WHEREAS, the City, the building contractor Fulco Construction, Inc. and the architect on the project,
Meyer, Scherer Rockcastle, have sought to correct construction related concerns relating
to wall paint and entry flooring; and
WHEREAS, the entry floor is affected by a ridge created from subfloor spackle, seam separation,
scratches and poor surface condition, and high maintenance costs; and
WHEREAS, the walls were painted with a non-specified product, the paint is not readily washable, and
the drywall spackling and surface preparation were inadequate; and
WHEREAS,
a settlement proposal has been developed between the three parties which would relieve
Fulco and Meyer, Scherer, Rockcastle of any further liability; and
5Zr~ 3.3
under the proposal, Fulco and Meyer, Scherer, Rockcastle would each pay the City ~.
WHEREAS,
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA
that:
1. The recitals set forth above are incorporated herein.
Sz.<l1..1,}
2. The settlement agreement of $~ each from Fulco and Meyer, Scherer, Rockcastle is accepted
as full and final payment.
S~~'t. >3
3. Upon receipt of the $62tS3 from Fulco, the staff is authorized to release the $5001 retainage as full
and final payment for the Library/Resource Center construction project.
4. Upon receipt of the above set forth amounts, the staff is directed to complete replacement of the
paint, entry floor and installation of wainscoting.
5. Funding for this work shall not exceed $30,000 to be drawn from the Park Dedication Fund.
b, J4ry'Y f- fl.i;~ ~J 10 ()(<<Mi{ 1i/U0( i C/~ ~,.;/,
16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (952) 447-4230 / Fax (952) 447-4245 .
AN EQUAL OPPORTUNITY EMPLOYER
PASSED AND ADOPTED THIS 17th DAY OF DECEMBER, 2001.
YES
NO
Mader Mader
Ericson Ericson
Gundlach Gundlach
Petersen Petersen
Zieska Zieska
R:\RESOLUTI\ADMI NRES\FORM.DOC
City Manager, City of Prior Lake
'" FULCO
CONSTRUCTION
General Contractors/Constuctlon Managers
November 9, 2001
Mr. Frank Boyles
City Manager
City of Prior Lake
Prior Lake City Hall
16200 Eagle Creek Avenue SE
Prior Lake, MN 55372
Fax: (952) 447-4245
Regarding: Prior Lake City Library
Dear Mr. Boyles:
Fulco Construction, Inc. is still in the process of working toward closure on the issues at the
library.
Frank, one area of concern that we have is the use of an average of the middle bids. In our last
meeting it was agreed that we were going to bid the job to establish the value of the reflooring.
Only certified and recommended installers were going to be invited to bid the job. Any four of
the bidders seleted are capable to complete the work; so the amount that should be used for the
value of the work is $9,729.00 as bid by St. Paul Linoleum and Capret. When projects are bid,
middle bids are not used to award pr' ts or to set their value. The lowest bidder is St. Paul
Lineolum and Carpet so that sur is e value of the work to be done.
DM/mms
F:\PROJECTS\Proj Clos\Prior Lake Library\Letters Memos Correspondence\Owner - Bids - Flooring Average _ II0901.doc
XL-z.z...
130 Peavey Circle. Chaska, Minnesota 55318. 952 448-3200. Fax 952 448-6948
October 18,2001
Mr. Douglas Marquart, Jr.
FULCO CONSTRUCTION
130 Peavey Circle
Chaska, MN 55318
Mr. Barry Petit
MSR, L TO.
325 Second Avenue North
Minneapolis, MN 55401-1601
Re: Library Resource Center Floor and Paint Issues
Dear Mr. Marquart and Mr. Petit:
We have received the three quotes you provided for the replacement of the marmoieum i100r in the Library Resource Center. As
you recall, the quotes were obtained to get a better idea of the appropriate cost of floor replacement. The three quotes are
shown below together with the quote we previously received.
,___.__.________~_0J1_tra~to~_______________,_____,,~i9_...__...___..;
._~l_E..aul J:l.~.oleu~.?<_ Carp~L______.__________':""___J~Z~~_.______
:_$_<?_~us 1~!en~~~S:_:_______________~_.J.l~"}..QQ._._____
._~chite~tural S~!~oLMin~_~_<?19..______.___.J___~g~60________,
U3e ~~_rt Floo I' C~~P-_~_~L_.._________________________~ 15, 2~9..:~_~_____:
After examining the quotes, I believe it is reasonable to discount the high bid we received of $15,269.36 from Gebert Floor
Company, and the low bid of $9729 from St. Paul Linoleum and Carpet. Averaging the quotes of Sonus and Architectural Sales
provides an estimated cost of $13,480. In accordance with our earlier discussions, this cost would be split four ways between
the City, Fulco, MSR and the original installer. Each party would be responsible for $3370. 7' l.1 3 z. . 1 S
The City is also prepared to resolve the paint issue in a similar fashion. Splitting the $6000 cost four ways between the City,
Fulco, MSR and the paint subcontractor would result in a total cost each of $1500. i 14 C' 0 (t 111
L. ..... ( 1'.,
ff '., ;,;;> (..
Considered together, we could resolve this issue permanently if each of the four parties is willing to invest $4870. If Fulco would
prefer, we could simply deduct their portion from the $5001 we have retained for the Library project. So that the City does not
have to be the collection agent, I would ask that Barry Petit collect and assure the 75% of the cost for flooring and painting
($14,610) is forwarded to the City by November 2nd. Such action would permanently release Fulco, MSR and the other
subcontractors from any further responsibility on these two issues. If you would like a settlement agreement to that effect, I
could have the City attorney prepare one. ~___~__. .. _~,:____' __-:;,
; i-, ': Jr~ '.,._',' :s
'I i ~
': ; r'.--.
~ . .. ". 1
Please confirm your acceptance of this settlement at your earliest convenience.
--------... :
I.
Sincerely,
i I
LJ' i '
. _.
;&f~~-L
L-...
.J
~ ~ ,",; ~. J
cc: Mayor and City Council
Jeff Scherer
Suesan Lea Pace
Susan Walsh
Bob Hutchins
1h2(J() LdLJle Crl:'l!k ;\w Sf. Prior L:lhe. MinncsotCl .5S:372-1714 / Ph. (9!)2) 447-4230 / FClX (%2) 447-4245
1\'. I (J; "'.1 ()I Ii '( H, 1l " :1 j'l I \1; '! II" . .
DATE:
AGENDA #:
PREPARED BY:
REVIEWED BY:
AGENDA ITEM:
DECEMBER 17, 2001
8F
LANOL LEICHTY, WATER RESOURCES COORDINATOR
SUE MCDERMOTT, CITY ENGINEER
CONSIDER APPROVAL OF A RESOLUTION AUTHORIZING
FULL AND FINAL PAYMENT TO LLOYD EXCAVATING, INC.
FOR CONSTRUCTION OF CATES STREET CHANNEL
IMPROVEMENT, CITY PROJECT 01-15.
DISCUSSION:
History
On October 15, 2001, the City adopted Resolution 01-116 entering
into a contract with Lloyd Excavating, Inc. to construct Cates Street
Channel Improvement, City Project 01-15. As the Council will
recall, we were able to reduce the anticipated price of this channel
improvement from an estimated $60,000 to $16,000 by maintaining
the channel in a more natural state rather than straightening it.
Trees were also saved because of this modification. All work under
the contract has been completed in accordance with the contract
and this agenda item requests full and final payment.
Current Circumstances
An additional length of channel banks was lined with fieldstone in
the residential portion of the channel adjacent to Green Heights
Trail to add erosion protection and provide uniformity with the
upstream portion of the project. The final contract amount is
$6,510.00 over the original contract amount, which is for the
additional channel lining.
Conclusion
It is staff's recommendation to approve the final payment as
requested.
FINANCIAL IMPACT:
The original contract for the Cates Street Channel Improvement
was $15,296.50. The final payment amount is $21.806.50, which is
$6,510.00 over the original awarded contract amount. The
budgeted amount for the Cates Street Channel Improvement
Project was $60,000.00.
ALTERNATIVES:
There are three alternatives for the City Council to consider:
16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (952) 447-4230 / Fax (952) 447-4245
AN EQUAL OPPORTUNITY EMPLOYER
1. Approve a Resolution authorizing full and final payment to Lloyd
Excavating, Inc.
2. Deny this item for a specific reason and provide staff with
direction.
3. Table this item for specific reason.
RECOMMENDED
MOTION:
A motion and second to approve a Resolution authorizing final
payment to Lloyd Excavating, Inc.
REVIEWED BY:
. REVIEWED BY:
RESOLUTION 01Jl 1'/ L
RESOLUTION AUTHORIZING FULL AND FINAL PAYMENT TO LLOYD EXCAVATING, INC.
FOR CATES STREET CHANNEL IMPROVEMENT PROJECT - CITY PROJECT #01-15
f^6
~j;>
SECOND BY:
MOTION BY:
WHEREAS, Lloyd Excavating, Inc. was awarded the contract for construction of Cates Street
Channel Improvement Project, City Project 01-15, and
WHEREAS, Lloyd Excavating, Inc. has in all respects completed the contract for construction
of Cates Street Channel Improvement Project, and
WHEREAS, The original contract for the Cates Street Channel Improvement Project is
$15,296.50, and
WHEREAS, Additional length of channel was lined with fieldstone, which caused an overrun in
quantities, and .
WHEREAS, The final contract amount is $21,806.50, which is $6,510.00 more than the original
awarded contract amount, and
WHEREAS, The City Engineer and Project Engineer recommend acceptance of the project and
Final Payment of the contract.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE,
MINNESOTA: Final payment is hereby authorized to be made to Lloyd Excavating, Inc. in the
amount of $21,806.50, for the contract to construct Cates Street Channel Improvement Project,
City Project 01-15.
Passed and adopt d h' 17th d
e t IS ayo ecem er
YES NO
Mader Mader
Ericson A Ericson A
Gundlach Gundlach
Petersen Petersen
Zieska Zieska
fD
b 2001
{Seal}
Frank Boyles
City Manager
City of Prior Lake
CONSTRUCTION PAYMENT VOUCHER
Estimate Voucher No.
For Period Ending:
November 30. 2001
Date: December 10.2001
Project Number:
01-15
Class of Work:
Cates Street Channel Improvement
Account: (cOl? -4f420- 530
For: City of Prior Lake
To:
Llovd Excavating. Inc.
P.O. Box 514
Prior Lake. MN 55372
A. Original Contract Amount
B. Total Additions
C. Total Deductions
D. Total Funds Encumbered
E. Total Value of Work Certified to Date
F. Less Retained Percentage --.illL %
G. Less Total Previous Payments
H. Approved for Payment, This Report
1. Total Payments Including This Voucher
J. Balance Carried Forward
$
$
$
$
21.806.50
$ 21.806.50
$ 0.00
$ 0.00
$ 21.806.50
$ 21.806.50
$ 0.00
APPROVALS
Pursuant to our field observation, as performed in accordance with our contract, we hereby certify that the materials
are satisfactory and the work properly performed in accordance with the plans and specifications and that the total
work is 100% completed as of, November 30, 2001, I hereby recommend payment of this voucher.
Pmj,e! Enginw APpmval~~7
This is to certify that to the best of my knowledge, information, and belief, the quantities and values of work certified
herein is a fair approximate estimate for the period covered by this voucher.
Contractor: ~ f: 'Fr.
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Signed By: .9t-~
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T 1 t1 e: '/tt..() ,
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Date:
CITY OF PRIOR LAKE
Date:
01
ApprovedA6f Payment:
^~~ /~.~. '-----
Authorized Representative
Date: , 2...1 12...\0 \
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