Loading...
HomeMy WebLinkAbout05 20 2013 EDA 7A Downtown Redev and So Study Report\�NNE5 4646 Dakota Street SE Prior Lake. MN 55372 ECONOMIC DEVELOPMENT AUTHORITY AGENDA REPORT MEETING DATE: May 20, 2013 AGENDA #: 7A PREPARED BY: Dan Rogness, Community & Economic Development Director AGENDA ITEM: DOWNTOWN REDEVELOPMENT AND DOWNTOWN SOUTH STUDY STATUS REPORT DISCUSSION: Introduction The purpose of this agenda item is to discuss, 1) a proposal with respect to the old Sinclair Gas Station site, and 2) whether the city should financially support the completion of a study to foster Downtown Redevelopment and an amendment to the Comprehensive Plan. History Significant public and private investments have occurred in downtown Prior Lake over the past ten years, It is important for the city to continue investing in a strategic way in order to maintain and enhance this vibrant and attractive focal area of the city. Current Circumstances Old Sinclair Gas Station - A private party is interested in upgrading and renovating the for- mer Sinclair building for office purposes. He discussed potential TIF assistance that fits with the eligibility standards in the city's TIF Policy. Rather than providing direct assistance to a project, one option surfaced whereby the city would acquire the vacant corner of the proper- ty not needed by the new owner. The estimated lot area for city acquisition is 2,500 square feet, or a lot size of 38 x 67 feet. This land area closely matches the most recent Speiker Building at 44 x 53 feet (2,300 square feet), By owning and controlling this key corner, the city can sell the lot to someone at a discount that is willing to build another multi -level " Speiker" building. The estimated acquisition cost of this 2,300 square foot area is $50,000. It was some time ago that this request was made to the city but staff has contacted the po- tential buyer and learned a purchase agreement has been entered into for the parcel, Digger's Property - TOLD Development is considering acquisition of the Diggers site to de- velop a Walgreens of 14,000 square feet and three additional retail /support buildings of 7,000 square feet. Staff has asked TOLD Development to pay the $9,505 which resulted in a negative response. TOLD indicated that other cities would have paid this fee and they are concerned that even the engineer has some concerns about the likelihood of success. In addition to the Told proposal, any future redevelopment of the Digger's site that achieves the highest and best commercial use requires a new signalized intersection at Franklin Trail and TH 13. In order to obtain MnDOT's support for this type of intersection spacing and corresponding improvements, further study is needed to evaluate this TH 13 area. On Mon- day, May 13« the City Council was asked to consider approval of a resolution amending the professional services contract with Bolton and Menk for the completion of the south down- town traffic study in the amount of $50,000. The study is intended to answer questions previously posed by the council and evaluate: • Access Management Plan along Highway 13 — The access management plan evaluates and determines access and a supporting roadway network vision for the corridor through the City of Prior Lake from CSAH 42 to CR 81. MNDOT requires this information to provide any approvals for an additional signal on Highway 13. This information will also be useful in guiding future access points along the corridor. • Subarea: Traffic Study of Highway 13 and Duluth Avenue -- As the City has undertaken the Downtown South Study; issues at the intersection of Highway 13 and Duluth Avenue were identified. The State is planning to reconstruct the signal at Highway 13 and Duluth in 2015. This task studies the configura- tion of the intersection including access and geometry of the roadway in antic- ipation of the 2015 project. • Subarea: Hiahway 13 and Franklin Trail — This traffic impact study reviews the trip generation of the Arcadia connection to Franklin trail as well as the uses at the intersection to determine if or when a signal would be "warranted" in the fu- ture. • Downtown South Study Update - The Downtown South Study did not incorpo- rate a signal at the intersection of Franklin Trail and Highway 13. The study update reviews two additional concept plans. This will provide a text amend- ment to the study report and will include meetings with the public, Citizen Business Group, Technical Evaluation Panel, and the City Council. The two options to be studied further include: 6B: Addition of a full access at Highway 13 and Franklin Trail ➢ 6C: Addition of a full access on Highway 13 and Franklin Trail and con- version of Duluth and Highway 13 to a % access. A total of $9,505 of the study is related to specifically examining the Digger's site and the likelihood that a fully signaled intersection could be justified to MnDOT as the approving agency. The City Council deferred action approving the amendment to the professional services contract and instead directed staff to identify the key tasks for further evaluation and explore efforts to reduce the scope of the study. This matter is scheduled for City Council action on May 28. The EDA should consider whether it supports the completion of this study, whether it sup- ports the TOLD proposal, and ultimately allows the city to amend its comprehensive plan to show this intersection and a roadway downtown for future development. Attached are esti- mates of the number of jobs the Told project could add. Also included is the estimated valu- ation added and the potential taxes generated. Tom Evenson indicates that he also has a company interested who would buy the property and use it as is. That would mean if at some future time the city wanted to build the roadway it would have to pay for demolition of the building and the road right of way. Conclusion Staff is asking for some direction from the EDA on the purchase of the Sinclair property and support for further study to achieve a new signalized intersection on TH 11 ISSUES: The EDA has limited resources available to assist with downtown redevelopment, including $200,000 in TIF 1 -1 funds, and some budget authority related to professional services, Smaller projects or initiatives could be undertaken with existing resources. A larger rede- velopment project would likely require the establishment of new TIF or Tax Abatement dis- tricts /agreements, Assisting the redevelopment of the Sinclair site would likely fit the smaller category while redevelopment of the Digger's site and the new associated roadway would require new TIF or Abatement resources. FINANCIAL The potential use of existing financial resources and/or the approval of new resources used IMPACT: for redevelopment. On the other hand, successful development or redevelopment can bring new city service fees as well as corresponding jobs and property tax receipts, ALTERNATIVES: 1, Motion and second to direct the staff to prepare the documents necessary to acquire approximately 2,500 square feet on the Sinclair site utilizing funding from the expired tax increment district, 2. Motion and second to direct staff to recommend that the City Council authorize the completion of the downtown study, or relevant parts thereof, to assess whether or not a fully signalized intersection at Franklin Trail and TH13 can be justified to MnDOT and included in the city's comprehensive plan to stimulate short term and long term devel- opment of the downtown area. 3. Table one or both issues and provide the staff with direction. RECOMMENDED As directed by the EDA. MOTION: ATTACHMENTS: 1, Sinclair site survey, Speiker site plan 2. South Downtown plan for signalized intersection at TH 13 and Franklin Trail 3, Digger's site redevelopment concept and redevelopment estimates � Mai'l«b °t Va111atiC7ti Low High Low High Pharmacy 50 75 Pharmacy $4 M $7 M Small Shops 50 125 Small Shops $2.25 M $5 M C -Stare 10 25 G -Store $1.5 M $2.5 M Quick - Service 25 50 Quick- Service $1 M $2M TOTAL 135 275 TOTAL $8.75 M $16.5 M F ° ARr QCrS - ,� 'a v �Ar 8ip0 YN Adt 0 ,y k r ..' 8� � � � hJ• 'r . IllypU�,,R r U • vtr.rr sv= .h . rip kg23 h . V ! ne�`� r .. . U© c i � r fl�GRPH F ° ARr QCrS - ,� 'a v �Ar 8ip0 YN Adt 0 ,y k r ..' 8� � � � hJ• 'r . IllypU�,,R r U • vtr.rr sv= .h . rip kg23 h . V ! ne�`� r .. . U© c i � ip