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H:\BONDS\Agenda - Council Redevelopment Plan Process.doc
16200 Eagle Creek Avenue S.E.
Prior Lake, MN 55372-1714
MEETING DATE:
AGENDA #:
PREPARED BY:
AGENDA ITEM:
INTRODUCTION:
DISCUSSION:
STAFF AGENDA REPORT
MARCH 7, 2005
10 B
RALPH TESCHNER, FINANCE DIRECTOR
CONSIDER APPROVAL OF A RESOLUTION INITIATING
PROCESS FOR APPROV AL OF REDEVELOPMENT PROJECT
AREA AND CALLING A PUBLIC HEARING
Prior Lake Economic Development Authority (EDA) adopted a
resolution on February 22, 2005 that proposes the creation of a
Redevelopment Plan for the downtown that will: 1.) Continue to
encourage private development and redevelopment of the downtown
and 2.) Assure the construction of a new city hall and police station
within the Redevelopment Area.
The process the City is considering to finance the city hall/police
station would involve having the Prior Lake Economic Development
Authority (EDA) sell lease-purchase bonds that would be paid by
the City over a 20 year time period. In order to facilitate this
financing it is necessary for the City Council to also approve a
similar resolution to initiate the process for approval of a
Redevelopment Project Area and call for a public hearing on the
Redevelopment Plan.
Under the Redevelopment Plan the City would lease both the city
hall and police buildings from the EDA with an option to purchase
pursuant to a lease with option to purchase agreement. Revenue
bonds in the principal amount of $10,000,000 are proposed to be
sold by the EDA to finance the redevelopment costs.
The Redevelopment Project Area encompasses a larger area than
just the project site as identified by the attached map entitled Exhibit
A. In the remainder of the Redevelopment Area the EDA would
propose to facilitate, as appropriate, private development by
negotiated sale of city owned property or acquiring land and
preparing it for private development and by constructing public
infrastructure improvements. Specifically both the fayade
improvement program and the downtown renovation are also active
components that would contribute toward these oyerall goals.
Also attached is a proposed schedule that outlines all the remaining
steps and required action by the EDA, Planning Commission and the
City Council over the course of the next two months with respect to
the Redevelopment Plan. At the conclusion of this process, the City
would receive bond proceeds by no later than May 1, 2005.
www.cityofpriorlake.com
Phone 952.447.4230 / Fax 952.447.4245
ECONOMIC DEVELOPMENT AUTHORITY
OF THE CITY OF PRIOR LAKE, MINNESOTA
PROPOSED ESTABLISHMENT OF A REDEVELOPMENT PROJECT
AREA AND THE REDEVELOPMENT PLAN THEREFOR
(CITY HALL/POLICE STATION PROJECT)
SCHEDULE AS OF FEBRUARY 2005
The pertinent dates in connection with the above-referenced matter are listed below:
February 22
EDA adopts Resolution Initiating Process for Adoption of a
Redevelopment Plan.
March 7
City adopts Resolution Initiating Process for Approval of Redevelopment
Project Area and Calling a Public Hearing (Redevelopment Plan must be
on file 10 days prior to public hearing).
March 12
Publish Notice of Public Hearing on Redevelopment Plan (City's
responsibility) not less than 10 nor more than 30 days before hearing date.
March 14
Planning Commission adopts Resolution Concerning Redevelopment
Project Area and recommends approval to City.
March 21
EDA adopts Resolution Approving Redevelopment Project Area and Plan.
April 4
April 4
City holds a public hearing on Redevelopment Plan.
City adopts Resolution Approving Redevelopment Project Area and Plan.
April 18
April 18
EDA adopts Revenue Bond Resolution authorizing issuance of the Bonds.
City adopts Resolution Authorizing Execution and Delivery of a Lease
and Allocating Small Issuer Rebate Exception Authority.
CITY OF PRIOR LAKE, MINNESOTA
Member
adoption:
introduced the following resolution and moved its
RESOLUTION #05-XX
RESOLUTION INITIATING PROCESS FOR
APPROV AL OF REDEVELOPMENT PROJECT AREA
AND CALLING A PUBLIC HEARING
BE IT RESOLVED by the City Council (the "Council") of the City of Prior Lake,
Minnesota (the "City"), as follows: .
1. Recitals.
Pursuant to Minnesota Statutes, Sections 469.090 through 469.1082, the
Economic Development Authority of the City of Prior Lake, Minnesota (the
"Authority"~, is authorized to exercise development and redevelopment powers;
and
It has been proposed that the Authority establish a Redevelopment Project
Area as described herein (the "Redevelopment Project Area"), in connection with
the acquisition and construction of a new city hall/police station facility and adopt
a Redevelopment Plan for the Redevelopment Project Area (the "Plan"); all
pursuant to and in conformity with applicable law; and
The Authority has requested that the Council hold a public hearing on the
Plan, as required by Minnesota Statutes, Section 469.028, Subdivision 1.
Public Hearing. The Council will hold a public hearing on the Plan at a meeting
of the Council to be held on April 4, 2005, commencing at 7:00 p.m. The staff of the
City is hereby authorized and directed to cause the Notice of Public Hearing which is
attached as Exhibit A to this Resolution to be published in the City's official newspaper
not more than 30 and not less than 10 days prior to the scheduled hearing date.
Passed and adopted this 7th day of March, 2005.
YES
NO
Haugen
Fleming
LeMair
Petersen
Zieska
Haugen
Fleming
LeMair
Petersen
Zieska
{S eal }
City Manager
City of Prior Lake
H:\BONDS\CounciJ public hearing resolution.doc
REDEVELOPMENT PLAN
FOR
CITY HALL/POLICE STATION PROJECT
DATED MARCH 7, 2005
ECONOMIC DEVELOPMENT AUTHORITY OF THE
CITY OF PRIOR LAKE, MINNESOTA
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TABLE OF CONTENTS
Page
I. INTRODUCTION AND LEGAL BASIS ......................................................................... 1
A. Intent.......................................................................................:.............................. 1
B. Statement...... ..... ..... .. ..... .. ..................... .................. ... .. ... ......... ......... .................. . ... 1
C. Redevelopment Area Boundaries .......................................................................... 1
D. Statement of Authority........................................................................................... 2
E. Findings and Declaration....................................................................................... 2
II. RED EVELO PMENT PROGRAM .................................................................................... 2
A. Redevelopment Plan Obj ectives ............................................................................ 2
B. Land Use................................................................................................................ 3
C. Redevelopment Activities...................................................................................... 3
D. Financing Plan....................................................................................................... 4
E. Development Standards......................................................................................... 4
F. Environment Controls............................................................................................ 4
G. Administration of Municipal Proj ect ..................................................................... 5
H. Modification of Redevelopment Plan .....................................;.............................. 5
Exhibit A - Description of Redevelopment Area and Boundary Map
Exhibit B - Budget
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1. INTRODUCTION AND LEGAL BASIS
A. Intent
The Economic Development Authority of the City of Prior Lake,
Minnesota (the "EDA"), proposes to establish a Redevelopment Project
Area as described herein (the "Redevelopment Area"), in connection with
the acquisition of property and construction of a new city hall/police
station facility (the "Municipal Project"). The City of Prior Lake,
Minnesota (the "City"), will lease the building from the EDA with an
option to purchase pursuant to a lease with option to purchas~ agreement.
Revenue bonds in the principal amount not to exceed approximately
$10,000,000 are proposed to be sold by the EDA to finance the
redevelopment project costs. The revenue bonds will be secured by the
payments to be made by the City under the lease with option to purchase
agreement.
In the remainder of the Redevelopment Area the EDA proposes to
facilitate, as appropriate, private development by acquiring land and
preparing it for private development and by constructing public
infrastructure improvements.
B. Statement
The City and EDA have determined that conditions exist within the
Redevelopment Area which have prevented further development of land
by private enterprise and/or public entities. It has been found that the
Redevelopment Area is potentially more useful and valuable for
contributing to the public health, safety and welfare than has been realized
under existing development.
The development of these parcels are not attainable in the foreseeable
future without the intervention of the EDA in the development process.
The EDA has prepared this Redevelopment Plan, which provides for the
elimination of conditions which preclude redevelopment, thereby making
the land useful and valuable for contributing to the public health, safety
and welfare.
C. Redevelopment Area Boundaries
The boundaries of the Redevelopment Area are outlined on the
Redevelopment Area Boundary Map, Exhibit A., incorporated herein and
made part of.
All land included in the Redevelopment Area is within the legal
boundaries of the City.
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D. Statement of Authority
Minnesota Statutes Section 469.001-469.047 (Housing and
Redevelopment Authority Act) grants municipalities the authority to
designate redevelopment areas within the boundaries of the municipalities.
Within these areas, the municipality may adopt a redevelopment plan and
establish a project consistent with the municipality's public purpose. The
Municipal Project as contemplated by this Redevelopment Plan consists of
a redevelopment project as defined in Section 469.002, Subdivision 14.
The lease with option to purchase agreement is authorized under
Minnesota Statutes, Section 465.71.
E. Findings and Declaration
The City and the EDA make the following findings:
1. The land in the Redevelopment Area would not be made available for
redevelopment without the financial aid sought.
2. The Redevelopment Plan for the Redevelopment Area in the City will
afford maximum opportunity consistent with the needs of the locality as a
whole, for the redevelopment of the area by private enterprise and/or
public entities.
3. The Redevelopment Plan conforms to the general plan for development of
the City as a whole.
II. REDEVELOPMENT PROGRAM
A. Redevelopment Plan Obj ectives
The EDA, through implementation of this Redevelopment Plan, seeks to
achieve the following objectives:
1.
To provide for the least costly and most efficient Municipal Project for the
City required to provide adequate City services to the region.
2.
To promote and seek the orderly and harmonious development of the
Redevelopment Area.
3.
To provide logical and organized land use for the entire Redevelopment
Area consistent with the Comprehensive Land Use Plan and the Zoning
Ordinance of the City.
4.
To promote the prompt development of property in the Redevelopment
Area with a minimal adverse impact on the environment.
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2
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5. To provide general design guidance in conjunction with downtown design
standards as set forth in the zoning ordinance in order to enhance the
physical environment of the area.
6. To provide adequate utilities and other public improvements and facilities,
to enhance the Redevelopment Area and the City for new and existing
development.
7. To assist the financial feasibility of private projects and/or public entities
to the extent necessary and where there is a corresponding level of public
benefit.
8. To enhance the overall economy of the City and surrounding area by
retaining current, and providing additional employment opportunities for
the residents of the City and surrounding community.
9. To increase the City's tax base by providing critical public infrastructure
improvements for the City.
10. To stimulate development and investment within the Redevelopment Area
by private interests and/or public entities.
B. Land Use
The proposed land use for the Redevelopment Project Area shall be City
owned and operated. Public owned and operated facilities necessary for
the public health, safety and welfare are permitted uses in th~
Redevelopment Area.
C. Redevelopment Activities
1. Acquisition
The City will own the property in the Redevelopment Area on which the
Municipal Project will be located. Other than that property, other property
in the Redevelopment Area will be acquired by the EDA if and when
required to facilitate development or redevelopment within the
Redevelopment Area.
2. Relocation
It is not expected that any persons will be displaced as a result of this
Redevelopment Plan.
3.
Municipal Project and Other Public Improvements.
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3
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The EDA proposes to cause the Municipal Project and private projects to
be constructed and, as appropriate, other public improvements within the
Redevelopment Area.
The Municipal Project will be leased to the City under a lease with option
to purchase agreement.
D. Financing Plan
1. Project Budget
Attached hereto as Exhibit B is a budget which details estimated
development costs associated with constructing and equipping the
Municipal Project as currently contemplated. The items of cost and the
costs thereof shown in the budget are estimated to be necess~ry based
upon information now available. It is anticipated that the items of cost and
the costs thereof shown in each category in the budget may decrease or
increase, but that the total proj ect cost will not exceed the amount shown
above.
2. Source of Funds and Security
The City is entering into the lease with option to purchase agreement with
the EDA pursuant to Minnesota Statutes, Section 465.71. The lease with
option to purchase agreement is payable from general sources including
taxes, and its payment is not limited to a specific fund or specific source of
revenues. Sources of funds for any other public improvements include
rates and charges, assessments and other available funds of the EDA or the
City.
3. Bond Issue Details
The EDA will issue approximately $10,000,000 in public project revenue
bonds to finance the construction and equipping of the Municipal Proj ect.
No bonding has currently been structured to finance costs o(any public
improvements.
E. Development Standards
The EDA will consider among other things, the following factors when
evaluating development proposals for projects within the Redevelopment
Area seeking public assistance and support:
1.
Degree to which redevelopment objectives are provided for or enhanced.
2.
Consistency with this Redevelopment Plan and the City's Comprehensive
Plan.
4
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F. Environmental Controls
It is presently anticipated that the proposed development in the
Redevelopment Area will not present major environmental problems. All
municipal actions and public improvements will be carried out in a
manner that will comply with applicable environmental standards. The
environmental controls to be applied within the area are contained within
the codes and ordinances of the City.
G. Administration of Municipal Project
The City Council has authorized the EDA to be responsible for seeing that
the contents of this Redevelopment Plan are promoted, implemented and
enforced.
H. Modification of Redevelopment Plan
A Redevelopment Plan may be modified at any time. The modification
must be adopted by the EDA and the City, upon notice and after the public
hearing required for the original adoption of the Redevelopment Plan.
Changes that do not alter or affect the exterior boundaries and do not
substantially alter or affect the general land use established in the
Redevelopment Plan, shall not constitute a modification of the
Redevelopment Plan, nor require approval by the City.
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5
EXHIBIT A
Description of the Redevelopment Area and Boundary Map
See attached
1733185vl
A-I
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EXHIBIT B
Budget
Estimated construction and related expenses
Discount Factor
Costs of Issuance
Debt Service Reserve
Capitalized Interest
Rounding
Total Issue (Rounded)
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B-1
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$ 9,792,000
$ 196,000
$ 12,000
City contribution
City contribution
$10.000.000