HomeMy WebLinkAbout03-63 Speiker Tax AbatementSPEIKER & COMPANY LTD.
16186 MAIN AVENUE SE
PRIOR LAKE, MN 55372
(952) 440-6500
July 2, 2003
To: Don Rye ,
From: Jim Spei/k6i- "
'Re: Meet'~hg (6/30/0J)- Spei' er Building
1. First, thank you for co o our meeting yesterday and please extend
my thanks to the rest of y'ofir staff and city employees for working us into
their schedules.
My understanding is:
· The demolition permit will be issued as soon as the building
department gets our right of way permit application and the $250 fee.
· The building permit will be issued following receipt of the civil
engineer print and other engineering requirements.
3. Based upon the above we are confident our timeline for construction will
be met.
We are still quit concerned about "tax abatement" and if we can go ahead
with the type of building we desire; accordingly, please advise us of the
"tax abatement" status. I have enclosed our best guess as to building cost
and anticipated real estate tax.
5. Again, thank you for your continued assistance-it is nice being treated
like a customer.
Speiker Building
Downtown Prior Lake
New Construction 16174 Main Ave SE
$579,160 Building
$90,000 Lot
New Building
(New and old)
16174 & 16186 Main Ave Se
$1,200,000
Estimated Market Value
Total (Land & Building)
Taxable Market Value
(Rate 3.5%) Annual Taxes
(Property Class) Professional Commercial
$1,200,000
$1,200,000
$35,000
The above represents my best guess.
Please note real estate taxes on new building and lot would be $23,421 (best
guess).
JUL
SPEIKER & COMPANY, LTD,
P O BOX 130 ~ '~ .................
PRIOR LAKE, MN 55372
(952) 440-6500
July 29, 2003
City of Prior Lake
16200 Eagle Creek Blvd
Prior Lake, MN 55372
Attn: Don Rye
Re: Partnership
Dear Don,
This letter is in reference to our downtown development project, in which you have been
supportive, to date.
Thank you for your past encouragement - it has been appreciated - truly. Your letter to
me of December 2, 2002 was a significant boost to my confidence, you noted, "...we
believe we can find a way to assist in the cost of demolition of the existing structure,
whether through the fagade improvement program or some other means. There are some
alternatives we can explore as your plans are firmed up."
Clearly, the tax abatement avenue isn't the route we wish to travel. However, let's revisit
the fully funded fagade improvement program. Simply stated:
· The old 1909 Prior Lake State Bank building was historic but very tired.
· Our new structure will be the crowning jewel to downtown redevelopment.
· A worn fagade will be replaced with a beautiful, esthetic pleasing, landmark
quality facade.
This partnership, the partnership between the city and Speiker, should not die - the City
of Prior Lake and Speiker & Co. have too much to lose to stop now. Let's move forward
with full fimding of the faqade improvement of $25,000. Done now and forever between
faithful partners!
I await your thoughts on the above.
JJS/lm /J
Cc. Mayor 5ffck Haugen
Jerome Lofms
Maria Belden
CITY OF PRIOR LAKE
PRE-APPLICATION
FOR FINANCIAL ASSISTANCE
Legal name of applicant:
Address:
Telephone number:
Name of contact person: JAMES
REQUESTED INFORMATION:
JAMES & ELIZABETH SPEIKER
16174 MAIN AVE SE
952-440-6500
SPEIKER
Addendum shall be attached hereto addressing in detail the following:
1. Type of financial assistance requested:
Tax Increment Financing
X Tax Abatement
Cash Contribution
Low Interest Loan
Other:
2. A map showing the exact boundaries of proposed development.
3. Give a general description of the project including estimated cost, size and
location of building(s); business type or use; traffic information including
parking, projected vehicle counts and traffic flow; timing of the project; estimated
market value following completion. Indicate why and for what purpose the
financial assistance is requested.
4. The existing Comprehensive Guide Plan Land Use designation and zoning of the
property. Include a statement as to how the proposed development will conform
to the land use designation and how the property is or will be zoned.
5. A statement identifying how the assistance will be used and why it is necessary to
undertake the proj eot.
6. A statement identifying the public benefits of the proposed project including
estimated increase in property valuation, new jobs to be created and other
community assets.
L:\TIl~tifpre-applieation.doc
SIGNATURE:
Applicant's Signature:
Date:
A written perspective of the developer's company or corporation, including
principals, history and past projects. ~
L:\TIF~ti fpre-applicafion.doc 2
City of Prior Lake: Pre- Application for Financial Assistance
1. Tax Abatement
2. See Attached (sheet A-1 of architectural blueprints)
3. I intend to build a 55'x 44' addition to my existing office building located on Main
Avenue and Dakota Street. The addition to the existing building will provide 12,500
square feet of business offices, retail, and support space.
Traffic flow and parking issues are addressed by attached sheet A-1.
My hope is to be able to begin demolition on the old bank building on July 1 st 2003
and occupy the new building on November 15th the same year.
The market value of the completed project will be approximately 1 million dollars.
Obviously, a project this size and proportion is intimidating, even to an optimist like
me. Therefore, I am requesting the support of the city in the form of the abatement to
the degree that it is possible.
The proposed project should not change the zoning of the property and conforms to
the Comprehensive Guide Plan Land Use Designation.
Se
As alluded to above, the risk in a project of this scope is significant. To improve the
streetscape for the downtown area, we intend to have Excel bury overhead power-
lines in the area of our building and either pay for or share the cost of it. We are
attaching a 6'x 31/2' two-faced exterior clock that will turn Dakota Street and Main
Avenue into a "City Center" and a landmark. The 1903 Prior Lake State Bank
Building has an estimated market value of $52,000; accordingly we are looking at
least a ten-fold increase in the assessed value. Obviously, without abatement, we
could continue using the existing structure for another ten years without expending
any significant cash. Abatement is not a gift but an incentive. Every dollar of
savings will be reinvested into the new structure. The city's assistance through tax
abatement will contribute significantly to the financial viability of the project.
o
The public benefits from this project include doubling the property valuation, creation
of job opportunities in retail and office work, and of course, an important aesthetic
contribution to our efforts in redevelopment of downtown.
.7.
Speiker & co. was founded in 1987. As a result of business growth, in 1995, I
undertook the challenge of erecting a building in Prior Lake downtown area. It has
served me well. I believe that it contributes to the integrity of the growing area. It is
to this building that I wish to make the expansion.
As a closing note and testimony to the length and depth of my downtown Prior Lake
ties, this building in one block from the house in which I was raised.
IJauu!'l p-!~eo
M
/
/
CITY OF PRIOR LAKE
PRE-APPLICATION
FOR FINANCIAL ASSISTANCE
Legal name of applicant:
Address:
.I~MFR ,1_ RPFTKFR
16186 MAIN AVE SE
PRIOR LAKE, MN 55372
Telephone number:
E-mail address:
Name of contact person:
(952) 440-6500
JEROME LOFTUS
Type of financial assistance requested:
Tax Increment Financing
Tax Abatement
Cash Contribution
Low Interest Loan
Conduit Bonds
Other: FACADE IMPROVEMENT
PROJECT INFORMATION:
The following information must accompany this Pre-Application.
1. A map showing the location of proposed development.
General description of the project including estimated cost, size and location of
building(s); business type or use; traffic information including parking, projected
vehicle counts and traffic flow; timing of the project; estimated market value
following completion.
Indicate the purpose and need for the requested financial assistance.
The existing Comprehensive Guide Plan Land Use designation and zoning of the
property. Include a statement as to how the proposed development will conform
to the land use designation and how the property is or will be zoned.
L:\O 1 files\O 1 eda\tifpre-application.doc
16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (952) 447-4230 / Fax (952) 447-4245
AN EQUAL OPPORTUNITY EMPLOYER
5. A statement identifying the public benefits of the proposed project including
estimated increase in property valuation, new jobs to be created and other
community assets.
6. Background information on developer's company or
principals, history and past projects.
SIGNATURE:
Applicant'sTitle: Signatur~_~ ~
Date: ~/'2- '7/D _T
L:\0 l files\01 eda\tifpre-application .doc 2
'City of Prior Lake: Pre- Application for Financial Assistance
James J. Speiker
16186 Main Ave SE
Prior Lake, MN 55372
(952) 440-6500 speikerco~earthlink.net
Contact person: Jerome Loftus
Type of financial assistance:
Facade Improvement
1. See Attached (sheet A-1 of architectural blueprints)
o
I am building a 55'x 44' addition to my existing office building located on Main
Avenue and Dakota Street. The addition to the existing building will provide 12,500
square feet of business offices, retail, and support space.
Traffic flow and parking issues are addressed by attached sheet A-1.
Demolition began on the old bank building on July 1, 2003, and I hope to occupy the
new building on November 15, 2003.
The market value of the completed project will be approximately 1 million dollars.
o
Obviously, a project this size and proportion is intimidating, even to an optimist like
me. Therefore,.I am requesting the support of the city in the form of a fagade
improvement grant of $25,000.
The proposed project should not change the zoning of the property and conforms to
the Comprehensive Guide Plan Land Use Designation.
o
The public benefits from this project include doubling the property valuation, creation
of job opportunities in retail and office work, and of course, an important aesthetic
contribution to. our efforts in redevelopment of downtown.
o
Speiker & Co. was founded in 1987. As a result of business growth, in 1995, I
undertook the challenge of erecting a building in Prior Lake downtown area. It has
served me well. I believe that it has contributed to the integrity of the area. I want
that contribution to continue and grow with the city's assistance.
As a closing note and testimony to the length and depth of my downtown Prior Lake
ties, this building in one block from the house in which I was raised.
J~UUrl P!^eCl I-~.~1~
:INO.I. SA3EI9
/
Z
I
I
I
I
I
I
I
I
1
/
/