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16200 Eagle Creek Avenue S.E.
Prior Lake, MN 55372-1714
MEETING DATE:.
AGENDA #:
PREPARED BY:
AGENDA ITEM:
INTRODUCTION:
DISCUSSION:
ALTERNATIVES:
STAFF AGENDA REPORT
APRIL 4, 2005
7C
RALPH TESCHNER, FINANCE DIRECTOR
CONSIDER APPROVAL OF A RESOLUTION APPROVING
REDEVELOPMENT PROJECT AREA AND PLAN
This is the 5th step in the Redevelopment Plan process 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. On March 14th the
Planning Commission adopted a resolution stating that the Plan is
consistent with the City's Comprehensive Plan and the Commission
recommends approval of the Plan to the Prior Lake City Council.
Similarly on March 21st the Prior Lake Economic Development
Authority approved a resolution establishing both the redevelopment
project area and plan.
The attached Redevelopment Plan includes specific objectives
within the overall Redevelopment Plan, establishes the
redevelopment activities that will occur and lays out the financing
plan of the Municipal Project (acquisition of property and
construction of a new city hall and police station). Also a
redevelopment project area is identified which includes the site of
the Municipal Project.
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.
Under the Redevelopment Plan the City would lease both the city
hall and police buildings from the EDA 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 following alternatives are available to the Prior Lake Economic
Development Authority:
1. Approve a Resolution Approving Redevelopment Project Area
and Plan. .
www. cityofpriorlake, corn
Phone 952.447.4230 / Fax 952.447.4245
H:\BONDSXAgenda - Council Redevelopment Plan Approval.doc
RECOMMENDED
'MOTION:
REVIEWED BY:
Attachments:
2. Defer action if additional information is required.
Alternative #1. The next steps will involve the EDA adopting a
Revenue Bond Resolution and the City Council adopting a
Resolution Authorizing E .~cution and Delivery of a Lease and
Allocjlting Small Issuer~ebate Exception Authority. Both are
sche~ed to ~ccur ~o~~ril 18,2005.'
1. Resolution ~/ppr~inJRedevelopment Project Area and Plan
2. "Redeveloi~ Plan"
3. Exhibit A "Redevelopment Area Boundary Map"
16200 Eagle Creek Avenue S.E.
Prior Lake, MN 55372-1714
CITY OF PRIOR LAKE, MINNESOTA
Member
introduced the following resolution and moved its adoption:
RESOLUTION APPROVING REDEYELOPMENT
PROJECT AREA AND PLAN
BE IT RESOLVED by the City Council (the "Council") of the City of Prior Lake,
Minnesota (the "City"), as follows:
Section 1. Recitals.
(a) It has been proposed by the Economic Development Authority of the City
of Prior Lake, Minnesota (the "Authority"), 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 adopting the
Redevelopment Plan for the Redevelopment Project Area (the "Plan;'); all pursuant to and
in conformity with applicable law, including Minnesota Statutes, Sections 469.001
through 469.047 and 469.090 through 469.1082; all as reflected in that certain document
entitled in part "Redevelopment Plan for City Hall/Police Station Project" dated March
21, 2005, and presented for the Council's consideration.
(b)
The Council has investigated the facts relating to the Plan.
(c) The City has performed all actions required by law to be performed prior
to the adoption and approval of the Plan, including, but not limited to, a review of and
written comment on the Plan by the City Planning Commission, and the holding of a
public hearing thereon following at least 10 but not more than 30 days' prior published
notice thereof, as required by law.
Section 2.
Findings for the Adoption and Approval of the Plan.
(a)
The Council hereby makes the following findings:
,
.
The land in the Redevelopment Project Area would not be made available
for redevelopment without the financial aid to be sought.
The Plan for the Redevelopment Project 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.
o
The Plan conforms to the general plan .for development of the City as a
whole.
www. cityofpriorlake, com
Phone 952.447.4230 / Fax 952.447.4245
(b) The Council further finds that the Plan is intended and, in the judgment of
this Council, its effect will be, to promote the public purposes and accomplish the
objectives specified in the Plan.
Section 3. Approval and Adoption of the Plan, The 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 Manager.
Passed and adopted this 4th day of April, 2005.
YES NO
Haugen Haugen
Fleming Fleming .
LeMair LeMair
Petersen Petersen
Zieska Zieska
{Seal}
City Manager
City of Prior Lake
1733185vl 2
REDEVELOPMENT PLAN
FOR
CITY HALL/POLICE STATION PROJECT
DATED MARCH 7, 2005
ECONOMIC DEVELOPMENT AUTHORITY OF THE
CITY OF PRIOR LAKE, M1NNI2SOTA
1733185vl
TABLE OF CONTENTS
II.
INTRODUCTION AND LEGAL BASIS
A.
B.
C.
D.
E.
Page
Intent
Statement.
Redevelopment Area Boundaries
Statement of Authority ........................................................................................... 2
Findings and Declaration
. "'"'"'" ...... '---. ........... · ...... ..-.--............................... ...... .... 2
REDEVELOPMENT PROGRAM
· '"""-"-'"-...-.. .............. · ......... ..... .... · ..... ....................... 2
A. Redevelopment Plan Objectives , 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 Project ..................................................................... 5
H. Modification of Redevelopment Plan .................................................................... 5
Exhibit A- Description of Redevelopment Area and Boundary Map
Exhibit B - Budget
1733185vl i
I. INTRODUCTION AND LEGAL BASIS
Bo
Co
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 purchase 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.
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.
Redevel'opment 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.
1733185vl
II.
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 4[69.002, 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:
o
The land in the Redevelopment Area would not be made available for
redevelopment without the financial aid sought.
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.
o
The Redevelopment Plan conforms to the general plan for development of
the City as a whole.
REDEVELOPMENT PROGRAM
A. Redevelopment Plan Objectives
The EDA, through implementation of this Redevelopment Plan, seeks to
achieve the following objectives:
o
.
To provide for the least costly and most efficient Municipal Project for the
City required to provide adequate City services to the region.
To promote and seek the orderly and harmonious development of the
Redevelopment Area.
o
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.
o
To promote the prompt development of property in the Redevelopment
Area with a minimal adverse impact on the environment.
1733185vl 2
Be
Ce
o
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.
o
To provide adequate utilities and other public improvements and facilities,
to enhance the Redevelopment Area and the City for new and existing
development.
o
To assist the financial feasibility of private projects arid/or public entities
to the extent necessary and where there is a corresponding level of public
benefit.
o
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.
o
To increase the City's tax base by provi, ding critical public infrastructure
improvements for the City.
10.
To stimulate development and investment within the Redevelopment Area
by private interests and/or public entities.
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 the
Redevelopment Area.
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 R&development Area will be acquired by the EDA if and when
required to facilitate development or redevelopment within the
Redevelopment Area. r
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.
1733185vl 3
De
Eo
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.
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 necessary 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 project 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 Project.
No bonding has currently been structured to finance costs of any public
improvements.
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:
o
,
Degree to which redevelopment objectives are provided for or enhanced.
Consistency with this Redevelopment Plan and the City's Comprehensive
Plan.
1733185vl 4
F. Environmental Controls
Go
Ho
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.
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.
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.
1733185vl 5
EXHIBIT B
Budget
Estimated constructi.on and related expenses
Discount Factor
Costs of Issuance
Debt Service Reserve
Capitalized Interest
Rounding
Total Issue (Rounded)
$ 9,792,000
$ 196,000
$ 12,000
City contribution
City contribution
$10,000,000
1733185vl
B-1