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Home My WebLink AboutJuly 20, 1998 PRIOR LAKE ECONOMIC DEVELOPMENT AUTHORITY MEETING Monday, July 20, 1998 5:30 p.m. Fire Station City Council Chambers 1. Call to Order 2. Pledge of Allegiance 3. Approval of Minutes - June 15, 1998 4. Consent Agenda 5. Presentations 6. Public Hearings 7. Old Business a) Consider status of Northland Products Development Proposal: . Noise readings . Storm damage tree removal . Purchase Agreement 8. New Business a) Consider approval of Downtown Redevelopment Task Force Report and Recommendations. b) Status of application for Business and Community Development Loan Application for NBC Products. 9. Other Business a) Review 1998 EDA Goals and Objectives 10. Announcements or Correspondence 11. Adjournment, 7:00 p.m. L:\98FILES\98EDA \EDAAGEND\EDA n098.DOC 16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER MINUTES OF THE PRIOR LAKE ECONOMIC DEVELOPMENT AUTHORITY MONDAY, JUNE 15, 1998,5:30 p.m. FIRE STATION CITY COUNCIL CHAMBERS 1. Call to Order: Vice President Underferth called the meeting to order at 5:30 p.m. Present were: Vice President Underferth, Commissioners Gresser, Kedrowski, and Schenck, City Attorney Pace, City Manager Boyles, Assistant City Manager Woodson, Planning Director Rye, Planner Tovar, and Recording Secretary Oden. President Barsness was absent. 2. Pledge of Allegiance: Vice President Underferth led the Pledge of Allegiance and welcomed everyone to the meeting. 3. Approval of Minutes a) April 20, 1998 MOTION BY SCHENCK SECOND BY GRESSER TO APPROVE THE MINUTES OF THE APRIL 20, 1998 ECONOMIC DEVELOPMENT AUTHORITY MEETING. Upon a vote, ayes by Gresser, and Schenck, abstention Underferth, the motion carried. 4. Consent Agenda a) none 5. Presentations aJ none 6. Public Hearings a) none 7. Old Business: aJ Status Report on Downtown Loan Brochure Distribution . Executive Director Boyles said Jim Sherack who had presented the program to the EDA prepared a loan brochure for distribution. 16200 &@1iE6A:ook Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 417-4245 AN EQUAL OPPORTUNITY EMPLOYER . Planning Director Rye said it had not been distributed yet. . Vice President Underferth said it should be held until the downtown redevelopment plan is finalized, distributed, and implementation is underway. . Commissioner Gresser asked how close is the downtown redevelopment report to having criteria established for redevelopment? . Vice President Underferth said it will be presented at the next EDA meeting. . Commissioner Schenck said perhaps brochures should be mailed out in advance so businesses are notified before they seek financing on their own. It would be prudent to consider a double mailing, earlier and then when the plan is finalized. . Vice President U nderferth said if one was mailed out now and then the downtown redevelopment plan is sent out in a month, businesses may take immediate use of the program and then when the downtown redevelopment plan is done they would still be assessed. It should be used as a tool for the redevelopment. . Commissioner Gresser suggested a notice in the paper regarding the program. . Executive Director Boyles said if it is run as a public service announcement, there is no charge. It is run on a space available basis. . Planning Director Rye said there were perhaps thirty affected businesses. . Vice President U nderferth said the downtown redevelopment committee will have recommendations for the EDA. One recommendation will be for the EDA to visit downtown businesses encouraging their support for downtown redevelopment. b) Status Report on Distribution of TIF Policy 61598EDA.DOC 2 . Executive Director Boyles said the TIF Policy has been distributed through the Chamber of Commerce list in an effort to make businesses aware that there is now a written policy. . Commissioner Schenck asked about those who are not on the Chamber list. . Vice President U nderferth said there were some on the mailing list, about 20, that were not chamber members. 8. New Business a) Vacant Parcel Inventory . Executive Director Boyles said the EDA has as one of its goals to have staff provide a list of vacant parcels. That has been done through the Planning Department. A list has been supplied including zoning, status of sewer and water, etc. . Commissioner Schenck asked whether 4.5 acres in business park is included. . Executive Director Boyles said it was not. . Commissioner Schenck asked about the parcel marketed to the City for the library. . Planning Director Rye said it was included. . Commissioner Schenck said the southwest corner of 42 and 83 is shown as section 28 but is not in the list. . Planner Tovar said the report is missing a page. The staff will supply the entire report at the next meeting. . Vice President Underferth asked whether the Vierling and Jeffers property were both in ag preserve. . Planning Director Rye said the Jeffers property and Vierling property south of CSAH 42 is in green acres but not ag preserve. The Vierling property north of CSAH 42 is still in ag preserve. The difference is green acres confers tax status as agricultural which establishes the tax 61598EDA.DOC 3 rate as agricultural preserve imposes a prohibition on the development of the property, the minimum is eight years. · Commissioner Schenck asked if the property is still farmed, after eight years what is its tax status? · Planning Director Rye said it can then continue as green acres but can be developed. · Executive Director Boyles asked is there further information the EDA would like regarding vacant properties? · Commissioner Schenck said properties which are under green acres and ag preserve should be identified. Since the only property the City holds is 4.5 acres, is it involved in marketing the property? · Consultant Guenette said if asked he assists with redevelopment information, contacts, system for paying for appraising, mall property, property adjacent to it. Beyond that he has not been approached to assist in any way. · Commissioner Gresser asked about hiring a broker on a commission basis. · Consultant Guenette said the City does not need to at the present time. Information on the property has been sent to a mailing list of commercial Realtors and developers, to reinform them of the availability of the parcel. · Commissioner Schenck said looking at current and future inventory coming out of the ag preserve, is annexation a solution to the shortage of property? · Consultant Guenette said the Mesenbrink property is more commercial industrial. The EDA should see how the downtown redevelopment committee report is received. · Commissioner Gresser asked, related to annexation, will there be commercial industrial demand at that time? · Vice President Underferth said as inventory relates to number five, the City will have a lot more inventory. 61598EDA.DOC 4 ------r;--- . Consultant Guenette said the population has increased. There are many different factors. The whole area will have a lot more traffic. If there are specific areas that need to be attended to they should be looked at now. . Commissioner Gresser asked under each category of zoning, what category falls under that for proposed zoning? . Vice President Underferth said it is hard to deal with a list and map. Staff should blow it up. . Executive Director Boyles said there could be a key on a larger map which shows status with respect to Agricultural Preserve, and green acres, and identifies what can be developed by zoning district. . Planning Director Rye said they will need a document to go with it. 9. Other Business a) Review 1998 EDA Goals and Objectives . Executive Director Boyles said the TIF policy is done. They can review and comment on the County Finance policy; and local effort TIF from cities. The business park is nearly done and the Council will be dealing with the utility extension request tonight. . Executive Director Boyles said the Downtown Redevelopment Committee will meet with two developers to review the plan. In the Prior dale mall site, Boderman continues to attempt to lease. . Nothing has been done regarding Goal 4. Goal 5 was just discussed and Goal 6 is no longer relevant at Priordale. . Commissioner Kedrowski said the goals should be revisited and updated for 1998/1999. 10. Announcements or Correspondence a) . Consultant Guenette said Northland Forest Projects, Dick Pyle, wants EDA members to see his operation. He wants to make sure his facility would conform to city ordinances and land use requirements. He does not want to be confronted with nuisance issues. Don Rye, Bob 61598EDA.DOC 5 Barsness, and Roger Guenette went through the facility. There is noise. With a residential subdivision south through the business park, he does not want complaints. The purchase agreement stipulates $1.00 square foot. He will take soil borings but will not pay for soil correction. . Executive Director Boyles said the EDA may wish to give the existing tenants of the business park an opportunity to see Northland as well. However, they do not want to give them the impression that they have approval authority. . City Attorney Pace said there are ordinances and code provisions pertaining to operation and uses and whether or not the uses are permitted. . Consultant Guenette said what if the businesses don't like the Northland operation? . Executive Director Boyles said they have the opportunity to participate in the public process. . City Attorney Pace asked whether the Northland project was contingent upon TIF financing. . Executive Director Boyles said yes. · City Attorney Pace asked was it his idea to have the EDA come look at his business? . Consultant Guenette said Mr. Pyle wants to know if his investment will be secure from complaints. . Councilmember Kedrowski said he is trying to be a good neighbor. . City Attorney Pace asked is the sound study going to provide any assurances? . Vice President Underferth said Mr. Pyle is not looking for written assurances. Whoever has contact with him should suggest he invite potential neighbors. 61598EDA.DOC 6 . Consultant Guenette said his concern is the residential subdivision in south. Planers and saws run in the summer with the doors open. the question is will the noise carry off the property line. . Commissioner Schenck said Regency Coffee is a direct correlation. . Consultant Guenette said that use was not identified in the front end throughout that facility. This person is prepared to make a major investment. . Commissioner Schenck said businesses expect certain activities to take place. Current businesses in the park are willing to put up with noise and smells in the park. It is bordered by a residential area. He thought the residents complained about Regency. . City Attorney Pace said the point is disturbances at a property line. If Mr. Pyle wants assurances himself, he has to have determined decibel levels. A business with nuisance potential may have buffering requirements added. . Consultant Guenette asked is there a decibel level requirement at the property line? . Planning Director Rye said there are state standards which are adopted by the City. . Consultant Guenette said noise should be measured at the existing Northland operation to see if it complies with state requirements. . Executive Director Boyles acknowledged that the current Northland operation is smaller than the proposed operation in Prior Lake. However, Pyle indicates that most of the additional space will be used for warehousing. . Vice President Underferth said he wants to go in knowing this is a business that conforms, not worry about having complaints and upset people. . Executive Director Boyles said Thursday at 10:00 a.m. the EDA will meet at 12400 Portland, Suite 115 to tour the Northland plant in Burnsville. 61598EDA.DOC 7 · Vice President Underferth said the next meeting would be July 20th at 5:30 in the Fire Station. 11. Adjournment: The meeting adjourned at 6:45 p.m. Executive Director Recording Secretary 61598EDA.DOC 8 JUL-09-1998 14:03 FROM ADVANCE INC. TO [12] PRIOR LAKE-CITY P.02 Business and Community Development Application Part I Applicant Information Section I (for stale use only) Section n: Scz: instrUctions for completion oh the reverse side of this form. Applicant: On behalf of: ' Communities served; Ci~Y of.Prio~ Lake NBC Produces, Inc. Prior Lake Region: 11 Leg.: 36A Cong.: 3 "Init. Fund.:z:t:etro County: Seo1:t Ser::1ion m Contact Person Name: Title: Address:. Don Rve Plann~n2 Director 16200 Ea~le Creek Ave Prior Lake'. MN 55372 Fax' ft; w.l) ~ -4245 Phone" (.!g) !!.!il.. 4230 lA JUL-09-1998 14:04 FROM RDVRNCE INC. TO [12] PRIOR LRKE-CITY P.03 - Busin"ess and Community Development Application Part I Community Needs Statement Name. of Community/Applicant Prior Lake is loeated in Scott County on the southern edge of the metro area. Due to the proximity of the community they have been fortunate to experience su'bstantial activity in residential developrru~nt and bOast strong economic demographics. The community has invested a substantial amount of time identlfying planning needs and opportunities. The results of the analysis and planning proeesses which the City has implemented identify two primary development needs within the community: 1) The aequisition of property and development of infrastructure required to attract business expansion; and, 2) the ne~d to provide additional employment opportunities for local residents. At the present time there ate very few industrial/mamifactl.lring employment opportunities within the . community and this is primarily due to the fact that until recently thete was nO property appropriate~)' :. zon9cl and containing the infrastrueture improvements necessary to support industrial development. Until . 1994, the only 8rea within the community which was industrially zoned and "occupied by manufacturing tenants was not served by municipal sewer and water. In 1994, the City established WaterFront Passage Bu~iness Park; this development is a 33 aere tract served by a complete network of municipal utilities and Zoned for commereialfindustrial use. The development of this area was undertaken after a lengthy planning process through which tne City ha~ sought and received input from a number of sources including the general publio, the business community, Metro Couneil, County officials, local school district, Prior Lake Economio Development Commission and the Economic Development Authority. In 1990, the City aU'thorized a study on the "Need For and Location of a Business/Office Pa'rk". This report utilized survey research, statistical analysis and key'informant input to develop conclusions and recommendations resulling in the development by the City of the WaterFront Passage Business Park. Now that the industrial park has been established it is imperative to identify and promote private development, The City has expended $1..3 million on land acquisition and infrastructure for the industrial park. lhe City COl,meil has pledged tax increment financing in support of thl!J project along with reserve funds from various city accounts. If privatQ firms expand in the park and create jobs the investment on the part 01 the city will be successful. . (Al1ach adiiirion.al sheers if1ltccssQ.r')') 2A JUL-09-1998 14:04 FROM ADVANCE INC. TO [12] PRIOR LRKE-CITY P.104 Business and Commu.nity Development Application Part 1 Project. Purpose Nam~ ofCommunity/Ap,plicant PJ'ojec:t # 1: NBC Products, Inc. was established in 1976 by Walt Bishop. Steve Tolvstad, David Shaefer, and Ted Zubeck. The company is currently owned ~ Anthony Shanks who has been with the company since 1977. The company manufactures EJectronic Air Cleaners which it sells almost exclusively to Honeywell. The borrower currently OWhS a 19,600 SF facility in Prior Lake and leases approximately 9,000 additional SF of offsite. space. The project entails the construction of a 17,100 SF addition to tbe current building in Prior Lake, Minnesota. . USES OF FUNDS Original site and improvements Existing debt . Land Building Professional fees Contingency TOTAL $281,009 644,000 50,000 5951000 30,000 42.000 $1,642,000 SOURCE OF FUNDS Bank MnDTED Equity TOTAL 1st REM 2nd REM $1,237,500 75,000 329.500 $1,642,000 Anthony E. Shanks will own the real estate personally. Mr. Shanks is 100 percent owner of NBC Products, Inc. Mr. Shanks is active in managing all aspects of the business. Fifteen new jobs will be created and eighteen jobs retained over the next two years as a result of this . project. The minimum wages for the jobs to be created '.is $iO/hr plus fringe benefits. NBC Products~ Inc. has had tremendous grQWth in the past year. Revenues over the last six months of .1997 nearly matched revenues for the year ended 6/30/97. Due to the explosive .growth, the company is planning to expand its existing facility. Financial ratios appear solid. Proforma debt to worth is 2.3:1, cash flow coverage is adequate based on six months historical earnings. The company has had small losses in 1995 and 1996 while sales were flat. The company has a significant concentration of sales to one customer (Honeywell). Prospects for continued growth appear likely. .. A TOTAL P.04 ECONOMIC DEVELOPMENT AUTHORITY PRIOR LAKE, MINNESOTA MISSION STATEMENT PROMOTE THE BUSINESS ASSETS OF PRIOR LAKE AND FACILITATE A DIVERSIFIED TAX BASE. GOALS 1. Prepare Tax Increment Finance Policy statement, and review and comment on County TIF, Local Effort TIF and Economic Development policies. 2. Expand Business Office Park.(On going) Develop incentives to encourage Prior Lake residents to establish and maintain their businesses within the City. Continue to market existing business park properties. Develop recommendation on extension of Adelman Street and utilities to the Deerfield property. 3. Meet with downtown property and business owners to explore redevelopment opportunities. Develop a culture which encourages and supports business acquisition and retention 4. Develop a plan to capitalize on traffic generated by Shakopee Mdewakanton Dakota Community and The Wilds. Develop promotional materials. Explore economic development linkages with Shakopee, Savage and the Dakota Community. 5. Inventory and review existing commercial and industrial properties and develop a position on development possibilities Develop a recommendation on extension of utilities to old industrial park Explore the relationship between housing availability and business development Prepare list of vacant property currently zoned for commercial and industrial development Identify potential commercial and industrial properties currently under Green Acres or Agricultural Preserve provisions 6. Prepare redevelopment plan and policy for Priordale Mall/Park Nicollet site to facilitate expeditious redevelopment. Revised April 20, 1998 16200 BagkL~0GIDR. S.E., Prior Lake. Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER . ,,~ 1# .~ AGENDA #: PREPARED BY: SUBJECT: DATE: BACKGROUND: DISCUSSION: STAFF AGENDA REPORT 8A JANE KANSIER, PLANNING COORDINATOR CONSIDER APPROVAL OF DOWNTOWN REDEVELOPMENT TASK FORCE REPORT JULY 20,1998 On July 14, 1998, the EDA reviewed the draft report prepared by the Downtown Redevelopment Task Force. This report makes several recommendations for the redevelopment of the downtown area, including land uses, design guidelines, streetscaping and other public improvements. The report also recommends an implementation plan and potential funding sources. Following discussion on this report, it was the consensus of the EDA members to accept and approve the report and forward it to the City Council. The attached resolution declares the EDA approval of the Task Force Report and recommends the Council also approve this report. The resolution also recommends specific action the City Council may take in order to implement this report. These recommendations include: 1. A statement of the project intent should be developed which identifies intended customers, desired outcomes and a timetable for major actions. 2. Staff should proceed with the development of a visual representation of the proposed improvement project. 3. A marketing plan should be developed which sets forth a strategy for presenting the proposed project to the appropriate groups which have a stake in the implementation of the project. 4. The improvement project be undertaken in its entirety using the funding sources proposed in the report. Finally, the resolution authorizes the expenditure of no more than $5,000 from the EDA budget for the development of the visual representation of the project and the marketing plan. 1:\econdev\eda\edarepts\OnOrp8a.doc 1 16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER In its discussion on the project, the EDA members agreed the project should be completed in its entirety. In order to achieve this, some of the improvements must be assessed to the adjoining property owners. In order to levy assessments, the City must utilize the process set forth in Minnesota Statutes, Chapter 429. Attached for your information is a flow chart summarizing the steps and the timelines involved in this process. Please note that the timelines discussed in this flowchart are averages, and may vary significantly based on the scope and complexity of the project, meeting schedules, City Council action and so on. The EDA also inquired about the use of decorative traffic lights at the intersection of CSAH 21 and Main Avenue. The staff is continuing to explore this possibility. Hopefully, we will be able to provide the EDA members with some definitive information at the meeting. RECOMMENDATION: Adopt the attached resolution. REVIEWED BY: Frank Boyles, City Manager 1: \econdev\eda\edarepts\OnOrp8a.doc 2 RESOLUTION 98-01EDA A RESOLUTION OF THE PRIOR LAKE ECONOMIC DEVELOPMENT AUTHORITY .fROViBIU3 A RECOMME~m.A&TION TO TilE CITY COUNCIITON THE REDEVELOPMENT OF THE DOWNTOWN AREA MOTION BY: ~61O~ SECOND BY: WHEREAS: the Economic Development Authority (EDA) appointed a Downtown Redevelopment Task Force to analyze redevelopment opportunities in the Downtown area of Prior Lake and to make recommendations, and WHEREAS: the Task Force met on several occasions and reviewed various issues and proposals, and WHEREAS: the Task Force developed a report and recommendations concerning Downtown redevelopment, including a recommended method of financing the necessary improvements, and WHEREAS: the EDA has considered the report of the Task Force and has concluded the recommendations are acceptable and the entire improvement project as recommended by the Task Force should be implemented. NOW THEREFORE, BE IT HEREBY RESOLVED BY THE ECONOMIC DEVELOPMENT AUTHORITY OF PRIOR LAKE: Task Force Report nt Task J.,:\ECQNDEV\J;DA \98.EDARES\98-01 EDA.DOC L 16200 t.agle Creek Ave. ::'.t.., Prior Lake, Minnesota 553/2-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER 0. A statement of the project intent should be developed which identifies intended customers, desired outcomes and a timetable for major actions. ~. Staff should proceed with the development of a visual representation of the proposed improvement proj ect. ~ A marketing plan should be developed which sets forth a strategy for presenting the proposed project to the appropriate groups which have a stake in the implementation ofthe project. ~ The improvement project be undertaken in its entirety using the funding sources . proposed in the report. Passed and adopted this 20th day ofJuly, 1998. YES NO BARSNESS BARSNESS - GRESSER GRESSER --"- KEDROWSKI KEDROWSKI - SCHENCK SCHENCK UNDERFERTH UNDERFERTH - Frank Boyles, City Manager City of Prior Lake {Seal} L:\ECONDEV\EDA \98EDARES\98-01 EDA.DOC 2 429 PROCESS AND TIMELlNE City Council orders feasibility study Staff determines if feasibility study should be prepared in house, or if a consultant engineer should be hired. 1 90+ days Feasibility study is completed. City Council accepts feasibility study and calls for a public hearing. Staff schedules the hearing and publishes and mails notices as required. 1 30 days City Council conducts the public hearing. The City Council approves the plans and specifications and orders advertisements for bids. 1 30 days Staff receives and opens bids. 345 days Total City Council reviews bids, and authorizes amount to be assessed. Staff schedules an assessment hearinq. 1 30-45 days City Council conducts assessment hearing and adopts the assessment roll. The Council accepts the bids and awards the construction contract. 1 2-4 weeks, depending on weather I Begin construction. I NOTE: The estimated timelines are based on average projects. These timelines may vary significantly, depending on the complexity of the project, meeting dates, Council action, etc. A CONCEPTUAL DESIGN PLAN FOR THE CITY OF PRIOR LAKE DOWNTOWN Prepared by THE DOWNTOWN REDEVELOPMENT TASK FORCE REVISED July 16, 1998 SECTION I INTRODUCTION HISTORY The City of Prior Lake has considered the redevelopment of the downtown area several times in the past. One of the first efforts was in 1984, when the Governor's Design Team prepared the Prior Lake Design Study. The report contained an overview of the regional setting, including transportation facilities, shopping, parks and open spaces, and land use. The report suggested a number of actions which could be taken to enhance the City. These actions were grouped under six general headings. These were: 1) County Road 21 extension, 2) Recreational trail system, 3) Gateway and Priordale Mall access, 4) Lakefront Park, 5) Image and identity improvements, and 6) Downtown Redevelopment. Most of the report recommendations focused on the Downtown area as the central core of Prior Lake and included a large civic center complex which included a Community Center and City offices. The concept also included provisions for medium density and elderly housing. In 1991, several business owners in the downtown area came together to form the Towncenter Association. This association petitioned the City to redevelop the area they identified as the town center, which included all of Main Avenue from Pleasant Street to the last commercial property north of Dakota Street. The City, in cooperation with the Towncenter Association, developed more detailed redevelopment plans for the downtown area. These plans did not include recommendations for the redevelopment of specific properties. However, they did include extensive treatment of the streetscape, consisting of sidewalk improvements, lighting, storm sewer and street improvements, re- establishment of diagonal, on-street parking and a fountain. The total cost for these improvements was estimated at $780,000. In order to implement this proposal, the City proposed a 50/50 cost sharing arrangement. That is, the business owners, at least those who signed the petition, would agree to pay 50% of the cost, and the City would agree to pay the remainder. However, the petition was signed by only 41.7% of the owners of the linear frontage. That, coupled with the fact that the City owned 28.9% of the affected frontage, brought the City's share to well over 50% of the project cost. The City proposed to assess the costs to the property owners, which would have resulted in an average assessment of$II,300.00 per 50' wide lot. Once again, probably due to the costs, this plan was not implemented. Since the Design Team report and the work in 1991, a number of the recommendations have been accomplished. These include the following: . Improvement of the County Road 21/Highway 13 intersection . Extension of Pleasant Street to Highway 13 1 I:\econdev\eda\steercom\taskrpt.doc July 16, 1998 . Removal of the dump site from Lakefront Park . Installation of the traffic signal at Highway 13 and County Road 44 (Main Avenue) . Construction of the new County Road 21 bridge to allow boat passage, and to provide for decorative lights and railings . Some new commercial development in the downtown area . Completion ofthe Lakefront Park Master Plan . The passage of the referendum to allow for the construction of the Library/Community Resource Center . Establish the Economic Development Authority . Establish the Downtown Redevelopment Task Force . The installation of traffic signals at County Road 21 and Main Avenue are scheduled for installation in 1998 On May 21, 1997, the Prior Lake Economic Development Authority (EDA) hosted a workshop to discuss issues and opportunities relating to the proposed redevelopment ofthe Priordale Mall. Twenty-four (24) members ofthe community, representing businesses and citizens, participated in the workshop. A copy of the results of this workshop are attached to this report as Appendix A. There were some dominant themes which emerged as a result of these discussions. These included a desire for more diverse retail facilities and a need for a community gathering place that can be used for community events and activities. The EDA later determined the timing was not right for the Priordale Mall redevelopment. However, the prevailing themes can and should be incorporated into a the redevelopment of the downtown area. DOWNTOWN REDEVELOPMENT TASK FORCE In November, 1996, voters approved a referendum which called for the construction of a Library/Community Resource Center, improvements to Lakefront Park, and the purchase and development of a community recreational complex. The Economic Development Authority (EDA) recognized that the construction ofthe new library/resource center and the improvements to Lakefront Park offered the City a unique opportunity to create a redevelopment plan for the downtown area in concert with the design ofthe new buildings and park improvements. Based on this opportunity, the EDA established the Downtown Redevelopment Task Force. The Downtown Redevelopment Task Force is made up often members representing the EDA, the Parks Advisory Commission (PAC), the Planning Commission (PC), the Friends ofthe Library (FOL), and downtown business owners. The members of the Task Force are: Robert Barsness (EDA) Ron Ceminsky (PAC) Karl Dingman (Business Owner) Dawn Glatzel-Beck (POL) 2 I:\econdev\eda\steercom\taskrpt.doc July 16, 1998 Tom Kedrowksi (EDA) Dick Kuykendall (PC) Jim Speiker (Business Owner) Coco Tremaine (Business Owner) Dick Underferth (EDA) Paul Viereck (Business Owner) Pat Heaney (pAC Alternate) Bill Criego (pC Alternate) The Task Force focused on traditional downtown Prior Lake. This area is generally considered the area adjacent to Main Avenue and bounded by Pleasant Street on the south, Lakefront Park on the north, Highway 13 on the east, and City Hall on the west. The map attached as Figure 1, illustrates the downtown area. The EDA asked the Downtown Redevelopment Task Force to submit written recommendations on the following topics: 1. Recommend a theme or "Look" for the Prior Lake Downtown area. 2. Recommend the device or devices which should be used to create a visual connection between the Downtown areas. 3. Recommend the types of businesses desirable for inclusion and addition to the area. 4. Recommend standards (landscaping, exterior composition, parking, etc.) to be incorporated into the Downtown Redevelopment Plan. 5. Recommend what public financing incentives (if any) should be used to acquire land and buildings, encourage building construction and reimburse for compliance with the additional standards contemplated for the Downtown area. 6. Recommend modifications in pedestrian and vehicular traffic patterns to enhance development. The written recommendations developed by the Task Force will be used to undertake actual redevelopment efforts. THE DOWNTOWN TASK FORCE REPORT This report includes the recommendations of the Downtown Redevelopment Task Force. It is intended as a design guide for development in the downtown area. These guidelines apply to public improvements, such as streets, sidewalks, lighting and landscaping, as well as to private improvements, such as building facades, awnings and slgnage. This report differs from previous efforts in a number of ways. First of all, unlike the Prior Lake Design Study, this report focuses on the downtown geographical area. The EDA and the Task Force recognized there are limited funding sources available for redevelopment. The more narrow focus provides a realistic and obtainable goal. Secondly, this report incorporated much of the design work which was completed in 3 l:\econdev\eda\steercom\taskrpt.doc July 16, 1998 1991. The report goes further to define available funds, and to set up a phasing plan for the completion of this redevelopment. The report makes several recommendations for the development of the downtown area. These recommendations are divided into five categories, each of which will be discussed in later sections. The five categories include: . Land Uses . Design Guidelines · Streetscape Amenities and Public Improvements · Implementation ofthe plan . Funding Sources Finally, the report concludes by outlining the necessary approval process. 4 l:\econdev\eda\steercom\taskrpt.doc July 16, 1998 ..i.' ~- 11 ....0'1'.. ~ 11 I ...J ! -. I I ! ,.. J ~;1 n j: : '- - C. R. 21 ---- l:\econdev\eda \steercom\taskrpt.doc July 16, 1998 FIGURE 1 l \ ~I ~i 1i ~~ p. I. ! .. .. I .. . !~ a. ..-- ~,-_.... I: I i! -. ., r ; i - ~ n - ...J I,; I : I ~ -1 I I i. ,I J! 5 SECTION II LAND USES The land uses allowed in an area generally dictate the character of the area. There are a wide variety of existing uses in the downtown area. These uses include offices, service uses (barber shops, beauty shops, etc.), retail, restaurants and bars, motor fuel stations, motor vehicle sales lots and motor vehicle repair lots. Also included within the downtown are City Hall, the library, and a day care center. A list of the existing land uses in the downtown area is included in Appendix B ofthis report. In order to determine the types of land uses which should be allowed in the downtown area, the following questions should be asked: . What type of traffic do the uses attract to the downtown area? . What type of storefront or curb appeal do these uses have? . How do these uses fit into your "vision" of the downtown area? The Task Force identified a vision for the downtown area as an identifiable town center. Through the design guidelines, they hope to establish a sense of place, and to personify a traditional small town "Main Street". The land uses which will promote this vision include those which encourage pedestrian activity, and which utilize open storefronts. Land uses are generally determined by the Zoning provisions. The Task Force reviewed a list of land uses and determined which uses should be permitted, which should be permitted with specific conditions, which should be permitted only after public review through the conditional use permit process, and which uses should not be permitted at all. The following table identifies the uses the Task Force believes are appropriate to the downtown area. Uses are identified by an "X" in the appropriate column. Elderly Housing X ot on Main Av. X (Not on street level X (Not on street level X X Multiple Family Dwellings Adult Day Care Group Day Care/Nursery School MedicaL1)ental()ffice Community Centers X X 6 l:\econdev\eda\steercom\taskrpt.doc July 16, 1998 Library X Museums/Art Galleries X Parks/Open Space X (Passive parks permitted with limitations on SIze PolicelFire Stations X Public Service Structures (water X towers, etc. Animal Handling X (Small animals only, no outdoor activi Appliance, Small Engine and Bicycle X Repair (Limitations on outdoor use Banks X (No drive-up facilities Restaurants (with and without liquor) X Bed & Breakfast Establishments X Businessrrrade Schools X Business Services X Clubs/Lodges X Convention & Exhibition Centers X Dry Cleaning/Laundering X (Drop off and pick u facilities onl Food Service X Home Occupations X (Accessory to residential uses HotellMotel X Motor Fuel Stations X Offices X Printing Process/Supply X Private Entertainment Retail X Service Uses X Studios X Wholesale Uses Showrooms X 7 I:\econdev\eda\steercom\taskrpt.doc July 16, 1998 SECTION III DESIGN GUIDELINES PURPOSE The goal of the Downtown Design Plan is to create an identifiable town center, emphasizing a diversity of uses and creating a sense of "place" for the citizens of Prior Lake. The design of the downtown is intended to personify a traditional small town "Main Street". The scale and architectural qualities of the buildings are comfortable an inviting to pedestrian activities. The location of City Hall and the new library/community resource center can be used to facilitate the creation of a public square, which can accommodate a variety of uses in all seasons, such as Lakefront Days activities, small concerts, and informal gathering places for employees, patrons and residents of the downtown area. The street frontages in downtown, specifically along Main Avenue, should be pedestrian friendly, which would include wider sidewalks, narrower streets, and on-street parking. The design of this area should include streetscaping concepts such as banners, lighting, street furniture and landscaping or plantings. There are two components to the Downtown Design Plan. The first component involves improvements to the public right-of-way, often known as the "streetscape" component of the plan. Elements of the streetscape component include streets, trees, lighting and parking. Figure 2 illustrates these elements. The second component of the plan involves the design of buildings. This component includes building location, building materials, architectural features and signage. Each of these components is discussed below. STREETSCAPING The term "streetscape" generally refers to elements of the public domain, such as streets, trees, sidewalks, parking and lighting. A typical streetscape has four distinct elements. These elements are: 1. Traffic lanes 2. Parking lanes 3. Streetscape amenities 4. Pedestrian lanes The design of the traffic lanes must be primarily determined by engineering standards; however, the area along Main Avenue should typically provide two driving lanes and angled parking. The angled parking provides convenient, short term stalls, helps reduce traffic speeds, and provides a buffer between vehicular traffic and pedestrians. 8 1:\econdev\eda\steercom\taskrpt.doc July 16, 1998 FIGURE 2 Sgec:;at =Gr:~ers: . "ii1.aC;~ ic=~::::Ci::::::": . ;::-:;m::::::::atl::~:1~::::al S~-:~~ .=.-::"":,,,,:it~r;: . :.er.:::..-:es . j'"i23.~ .~~::4C~ . S~3S.:::.t:~4~:~:"S ,) I' .= ::r:(;~:; !_~r:.e I:\econdev\eda\steercom\taskrpt.doc July 16, 1998 n ~ I:"" I 'I i' ~~-~11)' I ~.~ 'i-"/: I --- /, I " I' I , \ -'; ---- I \ -=! II , 'I I' SL-~-=~':.::i:e! ~~a~::"! !:.",::!: =.~. :':"::r.:r:-::.:::-: .=~-:~s:::c;r: !::':~: ~.:. .-. ..- ,.........-... 9 Streetscape amenities provide an additional buffer between vehicles and pedestrians. These amenities include street trees, planters and other landscaping, benches, lighting and banners. Plant materials can enhance the image and contribute to the visual continuity of the streetscape. A primary consideration in choosing street trees includes identifying trees with high branching characteristics that will not screen signage and building entrances. Seasonal and ornamental plantings should be used in decorative planters that can be easily maintained. Benches and other street furniture should be both functional and appropriate to the overall design of the area. Benches, for example, may be appropriate near restaurants or other similar uses. It is important that the placement of street furniture does not obstruct either the pedestrian or vehicular traffic. The design of street furniture should maintain the traditional feel ofthe area. Lighting in the downtown area should provide adequate levels of illumination but should not be of an intensity that provides obtrusive glare. The lighting standards should also reflect a more traditional style. If possible, this theme should be utilized for the traffic control lights at the intersection of CSAH 21 (Eagle Creek Avenue) and Main Avenue. Banners are an additional feature which can be used to enhance the downtown area. These banners may be seasonal or may promote the City or City events. The banners should not be used for commercial advertising, Banners should be located, if possible, on the light standards. The pedestrian lane is the area that facilitates the movement of pedestrians in the downtown area. This lane should remain free of obstruction, but may be enhanced through the use of decorative pavers. The design of the pavers can also be carried throughout the City. BUILDING DESIGN Building design involves not only architectural features and materials, but location and size of the building. Building design also includes accessory features such as signage and awnings. Figure 3 illustrates some ofthe elements of building design. To promote the pedestrian friendly atmosphere, buildings may be located with a 0' front yard setback, and a 0' side yard setback. The scale of the buildings should maintain the traditional Main Street character, and be no more than 2-3 stories in height. 10 I:\econdev\eda\steercom\taskrpt.doc July 16, 1998 It FIGURE 3 G.r:et"3J ':~iC;:: .=~r::::~!e~ .. E.::::tr.-.::le:s: Cr ~r:~itac=.:::l C:-:~r:C--3:"':' .=~~~==:: .':":.:e:::!y S=le. =-===:::::it ~i$::::=: :~:;i=.e~. ).r::::.:t.a:Q~: rr.c::~:::::s ;:~~...::::t ~~!:;ii:s. ~e-:: .e:-:=:.-::::=$. ~!=- ).wnj~.;:s :z~c: C:r.:c,a:s: P:-::vi~ 'Ne~t.~~ ::=~=~ !c:- .:~~:s::::r.3 ::::: ."'a~~=:::: ct fo:~ zme::; :::.::1C:::::;3. ."1c:c:~t2tiQn: Ar::::.:i:dc:n :f ~<<=c:s. .--e=~~:=n ~t :::oii.:s. my~-:'~ of ;::::::r::::: (Ie,.,;:.,,: of ;';c:::c:=. "Nine:....:. ?~;:cr::Qn: t I 'I St:-..:::.::e =~;:!e!'::~::::i aq.c:::::: ::::!c::..-:::;= ~"1 ::.ei;.-::. ~:;. at::: ::'/e:-:all 3:=:a :f e!~~::= ~=..:. f __ <;;;:f ,. .. , a.........4&. J. _Ir== - -f---~ I '11"'ICI.tll...tll.....R'i"i:.' ~~~ ~ _.-..:..:..~~.. ~--=- II ,~./ ""'lic;::me~t: 111....,...1.".....'fll..~ :1 . ~ .;1 ~!n.~.-:~ .~===::::l ;~~~~:::: ::t .1 /1", ~__lCS. r...__ u 1~.. _.r.__.,. ,,/ 'N1ne:::'"N~. ;wr::r:;.:$.. !!:.. I "-- II En I / ,~ / ..,.- I "~ .- ,,~ ~' " .il 'I... '1 \ ,~ne:s:.-:a::=::: - .. I :;i:::S::4:a~-::!. :: ::;c:.:~ ;: :~~~~::;;."': ~e'lef ~r.r;~ oNtroe:.', -::.::-:::-:;::, ~:..:::::a-:~ .....,tr::::.N ::=~~::,:;.:. !~: < , @- L ~ r G'I!r.enJ ':as:;:: .=~:'::::=:as~ =-=::ilm~:es: '-~ - ~ J ~ ... Si~:,:.a<;~: .. J -= I ~ r- "".__.._s__"'. '-a -....~._- --.--.~. ....c:; ~,......... __..._....._...~...- "'- --..-....., _.4' oa__. --~ 'I ~ - :::=:~';=~;J :: .4C:~. .-...".... '- --Q ......-- .- ,...- j:5l I:lICI2:iIlI;;g 7 _..~:.. S ~ - .~:..I ~ ";-~ ; ~ "t~ II .-; .!.....F~~Ci ii Fe:: ~ ::= r ~ ~1..a..~ '::-:~4(".' 1.':;~. e~:' ~ E '" ! ~ 11 I: \econdev\eda\steercom\taskrpt.doc July 16, 1998 The architectural style of the buildings should also continue the traditional theme and maintain the pedestrian friendly atmosphere. Preferred building materials include brick and stone, especially those varieties native to the area. Other commercial grade materials are allowed only as accent features in the design of the building. The buildings should also provide a diversity of form, such as concave entrances, detailing materials and fixtures, and other treatments that architecturally distinguish a building. Pitched and flat roofs are also allowed. Flat roofs must incorporate a parapet along the facades facing any public streets. Pitched roofs must complement the overall style and scale of the building. Any rooftop equipment must be screened. Buildings should not provide long expanses of blank, nonarticulated facades. The street level, or pedestrian level, of the buildings should be predominantly transparent, with storefront windows. Punched windows are strongly encouraged. The windows should incorporate a clear glazing; reflective glass is discouraged in any portion of the building. Awnings may be permitted on facades that face public streets. Fabric awning awnings are encouraged. Plastic, wood, or metal awnings should not be permitted. Awnings should have a consistent color and pattern scheme, and should complement awnings on adjacent buildings. Signage should be limited to one sign per primary facade of the building. The total area of the signage may not exceed 20% of the building facade. The sign may be distinctive, but must complement the overall architectural character of the building. Roof mounted signs are not permitted. 12 l:\econdev\eda\steercom\taskrpt.doc July 16, 1998 SECTION IV STREETS CAPE AMENITIES AND PUBLIC IMPROVEMENTS THE DOWNTOWN SKETCH PLAN The Downtown Sketch Plan, as proposed, consists of two major components. The first is the Schematic Land Use Plan for Downtown. This plan borrows from the Design Study and the conceptual work done for the Library by the library architects. Its' key features are the Library, the City Hall complex, potential housing development on the north side of Dakota Street, additional commercial development on the site of the current library and, in the future, redevelopment of the lumber yard property for commercial purposes. The second element of the Downtown Sketch Plan is the streetscape improvement proposed for Main Avenue. Again, this plan borrows from the work done in 1991 and incorporates many of the same design elements. The plan retains the idea of installing islands on Main Avenue to create angle parking, brick crosswalks, decorative street lighting, benches, trash containers, street trees and decorative sidewalks. Figures 4-9 illustrate the proposed design elements of this redevelopment plan. ASSUMPTIONS UPON WHICH IT IS BASED The sketch plan is the same plan previously drafted in 1991. Various elements of the 1991 plan have been combined on a single draft. Assumptions include: . The area of improvements covers both sides of Main Avenue from Pleasant Street to the lots 200' north of Dakota Street . Cost of the improvements was not a consideration in the design . Angle parking is incorporated onto Main Avenue INTENDED IMPROVEMENTS Intended improvements include angle parking with islands, new sidewalks, new light fixtures, landscaping, ornamental trees, banners, benches, trash receptacles and paved crosswalks. USE OF SKETCH PLAN The sketch plan is to serve as the base for determining what improvements are to be done as part of this project. It is intended to be modified as deemed by the Downtown Redevelopment Task Force. The sketch plan is to provide preliminary costs for determining the feasibility ofthe project. 13 I:\econdev\eda\steercom\taskrpt.doc July 16, 1998 FIGURE 4 EJ i I I I 14 I:\econdev\eda\steercom\taskrpt.doc July 16, 1998 FIGURE 5 I , ~ -, 0'" , ,,' -: .: .. ~ ~::' ~ 15 l:\econdev\eda\steercom\taskrpt.doc July 16, 1998 ~ - . ... . JS;E I~ i T !. i I .1. .: I:.. .::1::: :: .r". '.:.r." I I I I I I r , . -- ., r :/:": J.: ....y.... ..r.... I r .1.... Glf-( .l;~ ~ -~ if .-. ~ ....! , . i I i -.-- FIGURE 6 C. R. 21 ... ...... .''O" ~i I :J , ~ \ . DAKOTA STREET I:\econdev\eda\steercom\taskrpt.doc July 16, 1998 16 ----,.---- FIGURE 7 ,J...~..,,' 0/):; " ,..."", I .(~y ;' ~~i:2'" " ~~.J " ?,.,. " '~'n'Y. ' "'{:.:'~" " ("-<'!'.7f!J " ,>.~~ " iff,'/ '::J c.'1:;; , r.,,-~; " <:1}rIg " '"~~~ , [Pr .. '!Jt I 'l.....,)~,' fI:'.~' ho, - I -.,,_ur) · t I 11'1J I If I I j ! i ~~ : ,: ~t / ~i : i a : Iff;' , ~ ' . , i o-~~-! 1--~--Tll ! r~~J"~i' *' i ~ ~:~ .~;..: i '11 "Ri} ..~.~ 0 i lr,~ i ij j 1 I r~...l . ! ~J r-iil1 ~j ',1.,_ 1) ~ jgJ...J i <) J.t .... :-.-- f I J J ::~ \\ : : ,.j ~( ";I~" , i I 5ii ~'. .,':::; f[ "', _"_"_ >.:.~:,::.,:.::._:~~-;~~~Y'\ ,,"- "- ,'~;:'~:;~~~:~.i;,;:'ii<..~' I i , , , , , , , , , , ..' --~- / --___-&. . ! i I l- I .. '" '1!F~ I"*~ q;i=!i-... :::/::::: . ..../..... : <i::,Hi ......,..... . ...... ..... . ...... ..... .. ...... ..... .. ~. . . .. ..... .. . . . .. ..... :=:!iiIH: " -r.. .. ''1: i. I: :.: I: I \ .\ ~ \ 1.33t:l.S ~ l.O>l'1G 17 I: \econdev\eda\steercom\taskrpt.doc July 16, 1998 ---il) i~' !~'d ___$ d ----p i~ W I I ---~) FIGURE 8 - ~ II (j\ a ---~ l"1AII\J AVE I.H, 13 '1 I:\econdev\eda\steercom\taskrpt.doc July 16, 1998 ~ '--' J> ^ o J> C/) L___ 1--- I I , I I I I I l L___ ( I i 18 FIGURE 9 - . II C" c (/) I ~ ~ -c r rI 2> (/) J> Z ~ [ I I I I I ~ /vJAIN . AV~ - I I I I / / ---_ / I ---., I / ~/;<; ( y ~! 1..(';; \ SI T. f-.;, 1 3 '--------- 19 I:\econdev\eda\steercom\taskrpt.doc July 16, 1998 LIST OF IMPROVEMENTS BASED ON SKETCH PLAN The spreadsheet below details possible improvements and associated 1998 cost estimates. Improvements include lighting, landscaping, street and sidewalk improvements, and street furniture. Data sources for these costs include industry pamphlets for each of the individual elements, and engineer's estimates for the physical improvements. A very conservative approach was used in establishing these estimates. Rather than underestimating the cost of the project, it is more likely we have overestimated each cost. It is important to remember that the total cost is based on the quality and the quantity of each element. The cost may change if, for example, a more expensive light standard or a fewer number of benches is desired. Benches Decorative Light Fixtures Ornamental Trees Angle Parking Islands Decorative Crosswalk 32 Gallon Trash Receptacles (at each bench) Tree Guards (Tree Grates separate) Banners Nondecorative (cobra head) Lights Sidewalks (1,940 linear feet X 15' wide) Downtown Redevelopment Plan* Street & Utility Improvements (1,000 linear feet) 6 29 29 24 11 6 29 29 5 29,100 1 1,000 $760.00 $100.00/unit $4,000.00 included $600.00 $200.00/unit $10,000.00 included $5,000.00 included $478.00 $100.00/unit $150.00 $50.00/unit $150.00 $10.00/unit $3,500.00 included $5.00 included $50,000.00 included $175.00 included Total Cosmetic Improvements $5,160.00 $116,000.00 $23,200.00 $240,000.00 $55,000.00 $3,468.00 $5,800.00 $4,640.00 $17,500.00 $145,500.00 $50,000.00 $175,000.00 $841,268.00 * The Downtown Redevelopment Plan is a more comprehensive plan which will provide more detailed redevelopment plans and final cost estimates. Not included in the cost estimate: Acquisition of property Other Landscaping/Flowers/Sod/Rock Banner Fixtures (needed to attach banners to light poles) Fountains ($70,000 and $34,000, based on 1991 estimates) PLAN ELEMENTS Liehtine: Figure 10 is an example of decorative lighting. NSP will install the lights, and, for a monthly fee, will also maintain and repair the fixtures. A total of twenty-nine decorative light fixtures are shown on the plan. There are also cobra head fixtures located at the intersection of County Road. 21 and Main Avenue, at the intersection of Dakota Street and Main Avenue and at the intersection of Pleasant Street and Main Avenue. 20 l:\econdev\eda\steercom\taskrpt.doc July 16, 1998 FIGURE 10 M.a.ximum Spacing rle<c~mmen~t:Qns ~C~~ S~/le WactacefFl-:Jle Heieht Hi<;n ?9r.ermanc:a /1 CCW/~ 5r- I 70W/1 5t=1 1 COWI15t=1 150W/1 St=l Ree~3tjon SOFT :OFT SOFT 7~t=7 .\ re3 of Usa .=!es;centiai C.:mmerc:al 50FT 2"':=-:- .LCFT :GFI 2C!F7. 2SFl" ~CFl 'Usa different wattage/Pele c:mcinations or fix:ura :y!=es ~or ':et:er !lg.'1ting Denotes bes: :ee::mmenc:ation - - - 0 0 ... 0 ~ '1 'ii ~ 'r- '"---,,,-c:;r -:- PTlce List Wcht C.:st ,m a~ fli ]1 I mi .~~ '~I! ;1~'l 'Ii 11 Jif.! Cesig:1er 70 Wact Ac::m 1 CO Wact Ac::m 1 SO War! Ac::m 1CO ~F Ac::m S027.00 Sa9.CO S70.CO i .~=.J.CO ?:--a-r..as: C.:r:c:a!E ::O.CC :;:2.:0 '~1 I' ',I" ml r~.; "II 1~ln, .II '.',1'1, Ii' ,I Ii! ;~ ffl, ira. ::= P-:Jle 1: .=T. Fi::er<;;!as:3 15 Fl. Aluminum 1 .3S~.CO i .3CO.:0 Mast ~rm 2 .=;x:t:re 364...=0 2ase Sc:a1f1~fn 5- P,::yc:u::cnat: lenSeS ar: a'laiia~ia ;n betn :::ear ana wnice. i\:r- Nc~-:er;'t S~t:!s ?~wer C.:m~any 4.1 J. Nic::llet .'AaJl Minneacclis. ,"IN ::.La1 :is: 2:11 ~~ ,---::::ec :n rec;c!!C :ac ~r 1 O~~ :cst--....::ns~er '.va;s:~ 21 I:\econdev\eda\steercom\taskrpt.doc July 16, 1998 Landscapine: Landscaping includes finishing any disturbed areas with sod or decorative plantings. Ornamental trees are located between every light fixture. Planter boxes and shrubs could be used but are not included in the sketch plan. The cost estimates include prices for tree guards as illustrated in Figure 11. Not included in the plan are tree grates, placed along the ground. Furniture: Street furniture includes six benches and trash receptacles to be spaced along Main Avenue. The sample designs, shown in Figures 12 and 13, are finished or coated metal for durability and long wear. Prices vary depending on materials and style. Banners: Street banners, which will be attached to the light fixtures, are included in the costs. No design has been selected at this early stage. Several banner styles may be desired for various events or times of the year within the community. Banner fixtures will also be necessary to affix the banners to the light poles. Pedestrian Features: Sidewalk enhancements include paved decorative crosswalks and reconstruction of existing sidewalks. Other: The original 1991 plan identified other amenities, including fountains and sculptures. The two fountains shown on the 1991 redevelopment plan were estimated to cost $70,000 and $34,000. A sculpture was also discussed in the past, but no cost estimates or location is indicated on the 1991 plan. These items have not been included in the current plan or cost estimates. 22 I: \econdev\eda\steercom\taskrpt.doc July 16, 1998 FIGURE 11 TGi J~W~~~;i~i~.,j:j~~.jOlC:i:i)-m~w ,~ Tree guarcs at-C c:mrr:cr.iy 'J~::c '.'Iim ictmq tRes to provice proC&.::fcn ana Stlcoort ~ravlU"i. 'Na::::a::.r. 'lalIEY (litc~ cNO S'i1es at \ice gUGJ'ds. Tne Jim is maiiuiac:'l.!r::c :rcm ;/d' :( i ,12: tJar ja; st::e! end stJoporr2!i ':.'1 iC-JG!.!~e sr.e:! SeC:! 3UCCCrl .~r.~s. Trie sec:nc ~pe :s iiia:iuiac::.:r2!i from ~/2. a/ame!::: :CC. '.'Inic:: ;s ~so Si.iccarrec ~y ~C-;=!.!~e st.ee! SLee! StlCCCrl ,1n(,;s. 3cui S,j1CS ci:: scic :n ~Nc-:Jiec= scc::cns '.'Iiiic:i jclt tcge~har ;or ::Zj :lis~:I~ricr: ~;G .-ascvai. The TC: '~Gr:3 ~ave ~ haf~~l at live ,'ee! ~iC ci:: c',aiiac:e ;n ci!:iaIi:e ::icrs:r. :Ja~:: ,i O. .'/lodel iGi Oes::::a:ion Wgr. ?hca Si .1S.:0 I~a~ :Gj :- rse I~:..:a;c Ii.. 'Gs. i";abash Valley 1998 Catalog 23 I: \econdev\eda\steercom\taslapt.doc July 16, 1998 FIGURE 12 ~~-_.:~ -~""",.~ IIIW.. . --~.~~. -~ ." -'~::"'~~. '- .:s~~ i?~~?~~t)~~~:':'~ '.;c.~---' . -~~ - - ..-- ~:~ ' ....~--. . .-- '., .~'...~ ~~:,.. t -, -~. BENCH 93 . SHIPPED I<.'iOC:<:ED DowN . SUPPORTS OF I-VS" SQ!JARE SOUD m=L . S:E.~T SURFACE ONE-[,[ECE CONST:tUCTION ,vv..TE?JALS Seating Surface: 1/4" x 1-1/2" so:e~I ;;;ar ar.d 2-3/8" 0.0. so:e~~ ;:;l';:e. SuccortS: 1-1/S" SQUare so:~l oar. FaS.aners: Stainless st~!. Finisn: See page cwo for c.'1oice of ;:;oiyeso:e:- powde:- fir.i.Sh. (D~;: Red shown) 93-3iJ 6' 101""..g, 2 su.~por~, 239 lbs. SldJ 9:XO S' 10r..g. 2 suppor~. 301 Il:::s. $3:J 1 DuMor, Inc. Site Furnishings 1998 Cacalog 24 I:\econdev\eda\steercom\taskrpt.doc July 16, 1998 ,I FIGURE 13 .~._~ riirlj1 L..;iif! . -u =--__- TR2 HANDCRAFTED fP'=WOEE.'? C.=A",i:) F!N1SHJ Moofl. .i Sa% T?2 32 <:::allon T?i 22 Gallon o~ 2=~ Dia. x 36~ Hign 2::" Oia. x 36- Hiqn 'NI': t..;sr~ 120 <1==.00 g= <1:lS.00 D~7e=5~=~=~ ~=cal Fao=~caCQ=S 1998 CacalQg 25 l:\econdev\eda\steercom\taskrpt.doc July 16, 1998 SECTION V IMPLEMENTATION -:. ,,_.. This report suggests the implementation of the Redevelopment Plan occur in two phases as follows. PHASE 1 The major activities in this phase include completion of planning for the Library and the actual construction of the facility. It also contemplates the preparation of a Redevelopment Plan for the Downtown. The Redevelopment Plan should be done at a sufficient level of detail to address individual properties and to provide a basis for detailed cost estimates. The Redevelopment Plan would also include specific requirements and regulations unique to the Downtown area which would be intended to achieve specific redevelopment objectives. Upon completion of the Redevelopment Plan, the major infrastructure improvements, including street and sidewalk reconstruction, crosswalk pavers and islands for angle parking, improvements would be completed. At the same time, the cosmetic improvements, including landscaping, street lights, banners, benches and trash receptacles, would be completed. The timing for the completion of this phase is approximately 18 to 24 months. The total costs associated with this phase are itemized in the table below: Benches Decorative Light Fixtures Ornamental Trees Angle Parking Islands Decorative Crosswalk 32 Gallon Trash Receptacles (at each bench) Tree Guards (Tree Grates separate) Banners Nondecorative (cobra head) Lights Sidewalks (1,940 linear feet X 15' wide) Downtown Redevelopment Plan* Street & Utility Improvements (1,000 linear feet) 6 29 29 24 11 6 29 29 5 29,100 1 1,000 Total Cosmetic Improvements PHASE 2 $760.00 $4,000.00 $600.00 $10,000.00 $5,000.00 $478.00 $150.00 $150.00 $3,500.00 $5.00 $50,000.00 $175.00 $100.00/unit included $200.00/unit included included $100.00/unit $50.00/unit $10.00/unit included included included included $5,160.00 $116,000.00 $23,200.00 $240,000.00 $55,000.00 $3,468.00 $5,800.00 $4,640.00 $17,500.00 $145,500.00 $50,000.00 $175,000.00 $841,268.00 This phase includes the potential acquisition and redevelopment of properties in the Downtown area which do not reflect the goals and objectives of the Downtown Redevelopment Plan. The Downtown Redevelopment Plan would specify which 26 l:\econdev\eda\steercom\taskrpt.doc July 16, 1998 properties were intended for redevelopment and suggest timelines, budgets and funding sources for such action. The completion of Phase 1 will provide the impetus for private redevelopment by creating an atmosphere which will attract developers and redevelopment proposals. While the Redevelopment Plan will elaborate on redevelopment potential, some of the properties which should be considered for redevelopment are: . Monnens Supply (lumber yard) . Conoco Station . Lutheran Brotherhood Building . City property, including the existing library and the parking lot . Merten's property on the north end of Main Avenue . Day Care Center . Single family dwelling at 16154 Main Avenue (north of Co no co Station) . Single family dwelling located at 16323 Main Avenue (south ofradiator shop) 27 1: \econdev\eda\steercom\taskrpt.doc July 16, 1998 SECTION VI FUNDING SOURCES The section discusses financial options and development incentives and the various methods available to finance the Downtown Redevelopment improvements. This section will outline what financial resources are immediately and potentially available for use in the Downtown area. CASH Currently, there are two funds which have cash balances available for use. The first is an EDA fund which has a current balance of $51,892. The second is the Downtown TIF account which has a current balance of $87,438. The total of these two funds is $139,331. ANNUAL INCREMENT In 1996, the increment collected from the Downtown TIP district was $45,507 and in 1997, it was $41,278. Even if we assume that the average amount of increment available remains fixed at $40,000, this dollar amount could finance a TIF bond with a 5% interest rate in the amount of$310,000. ASSESSMENTS In 1991, the City conducted an extensive analysis of potential Downtown improvements based on an improvement plan developed by the City in conjunction with representatives from the Downtown business community which included detailed cost estimates. The improvements were broken down by two separate areas: the first was from Pleasant Avenue to the south side of Lakefront Park and the second was from that point north to the Kop farm. The project improvements which were contemplated included street reconstruction, landscaping, exposed aggregate sidewalks, islands, a fountain and decorative crosswalks. The total estimated cost of this project in 1991 was $780,000. At that time, it appears that the intent was to assess 60% of the street improvement cost and 100% of the landscaping and sidewalk costs. The projected front foot assessment was $226 per assessable foot. The assessment for a 50 foot lot would have been $11,300. One of the issues the Downtown Redevelopment Task Force needs to address is a recommendation concerning the role of assessments in financing whatever improvements are finally installed. In 1991, it appears that no consideration was given to utilizing TIP funds, probably due to the fact that the annual TIP increment was still dedicated to debt service at that time. The annual increment, as noted above, is now conservatively estimated at $40,000 per year which is available for eligible activities in the Downtown district. 28 l:\econdev\eda\steercom\taskrpt.doc July 16, 1998 ------or 1998 FUNDING OPTIONS The following table summarizes the potential source of funds for the improvements and the proposed uses. $87,438.00 $40,000.00 $310,000.00 $68,000.00 .. $505,438.00 DIFFERENCE $615,500.00 $133,500.00 $42,268.00 $50,000.00 $841,26$mO The table shows that the available funds are not sufficient to accomplish all of the improvements called for in the Sketch Plan. The dollar amount for the TIP bond is a conservative estimate and assumes only modest growth in the increment received from the District over the 10 year life of the bond. The cost estimates for the improvements are either based on catalog prices, costs of comparable projects or staff estimates based on experience. These are also intended to be conservative and staff has attempted to err on the high side. There are three main alternatives available to address this funding gap: (1) the scale of the project could be reduced to the point where the funds are adequate; (2) the City could pursue a Demonstration Grant from the Metropolitan Council through the Livable Communities Program; and (3) the differential amount could be assessed to benefiting properties Downtown. Additional financial options and development incentives are addressed in Appendix C to this report. If the third alternative is chosen, there are 1,905 linear feet of assessable frontage. This is the total frontage of 2,678 feet less the 773 feet owned by the City. The total assessment amount would be $177.00 per front foot, or $8,850.00 for an average 50' wide lot. Street assessments are generally spread out over a 10 year period with 8% interest. Based on these figures, the average monthly cost (principal and interest) to a business owner on a 50' wide lot would be $120.95. This assessment represents 40% of the total cost of the project. Through the use of TIF funds, CIP funds and bonding, the City will pay 60% of the total costs. In a commercial area, 100% of the cost of public improvements are generally assessed to the property owners. In residential areas, the City will pay 60% of the cost of public improvements, and assess 40% to the benefiting properties. The assessment of 40% of the project costs represents a substantial reduction from the standard assessment policy in commercial areas, and is similar to the assessment cost of a street improvement project in a residential area. l:\econdev\eda\steercom\taskrpt.doc July 16, 1998 29 SECTION VII CONCLUSION APPROVAL PROCESS Following approval of this report by the Downtown Redevelopment Task Force, this report shall be transmitted to the Economic Development Authority for review and approval. While not required, the EDA may wish to conduct public hearings to receive input from downtown business owners and Prior Lake residents on the design proposals and the funding alternatives. Once the EDA has approved the report, it must be transmitted to the City Council for review and approval. IMPLEMENTATION Once the City Council has approved the report, the following steps must be taken in order to implement the actual improvements. 1) The EDA should engage a consultant to assist in the preparation of the Downtown Redevelopment Plan. · Formal approval of the Redevelopment Plan, a process similar to the approval of this report, will also be required. Council approval will classify this report as one of the City's official documents, which can then be referenced in the City's Capital Improvements Program, the Comprehensive Plan, and the Zoning and Subdivision Ordinances. · The elements of this report, and the Downtown Redevelopment Plan may also be incorporated into the City Zoning Ordinance. This action will require a public hearing and review by the Planning Commission, and approval by the City Council. 2) The City Council may authorize the design and installation of the physical improvements. The Downtown Redevelopment Plan will be used to design the specific public improvements required to implement this plan. 30 I:\econdev\eda\steercom\taskrpt.doc July 16, 1998 APPENDIX A RESULTS OF THE PRIORDALE MALL WORKSHOP TO: Prior Lake EDA & Workshop Participants FROM: Roger Guenette DATE: June 28, 1997 RE: Results Of Workshop On Commercial Redevelopment On Tuesday, May 21, 1997, the Prior Lake EDA hosted a workshop to discuss issues and opportUnities relating to the proposed redevelopment of the Priordale Mall and adjacent property. There were 24 community members present who participated. The participants broke into four work groups each seeking to address the following questions: 1) What type of commercial/retail development should exist at this location (Specify types of uses, structures or design)? 2) What issues must be addressed to assure the implementation of this redevelopment concept (Le. preferred design. relationship to other commercial areas)? 3) To what extent should the City be a financial participant? ParticipantS were asked to use vision and be ~free thinking" in suggesting development options. The summary results from each of the four work groups are listed as follows: GROl.TP 1 To develop as a retail center with mi.'{ed uses and anchor, preferably a Target-type store. IssueslLimitations - Lack of critical population - Proximity to existing residential development - Image configuration, parking facades, cold dead feeling, access - Lack of articulated long term vision for community to develop - Money issues GROUP 2 Type of commercial development - Anchor tenant - No grocery - Movie/entertainment - Banquet facility - Mass merchandise (Wal-MarttTarget) - Accommodate existing businesses 31 I: \econdev\eda\steercom\taskrpt.doc July 16, 1998 Secondary tenants - Bagel shop - Coffee shop - Cleaners - Specialty shops - Sporting goods Central or Core Design - Community events - City holiday tree - Community garden - Internal court yard Issues - Smooth transition for current businesses - Easy access to property - Cost to community GROUP 3 Type of Commercial Development - Variety store - Sporting goods - Jewelry store - Appliance store - Movie theater - Restaurant/Bar - BarberlBeauty shop - Card shop Incorporate existing businesses in development - Bakery - Quality antiques - Entertainment uses - Coffee shop - Youth or related teenslbusiness center - Bike shop/E:tercise equipment - Unique craft shops - Small scale factory outlet shops (youth oriented) - Major anchor to attract larger volume clothing stores Public open spaces throughout center - Patio tables - Ice rink. warming house - Fountains - Gardens - Gazebo 32 I:\econdev\eda\steercom\taskrpt.doc July 16, 1998 '"" GROUP 4 - Smaller retail outlets - Medium size building which concentrates businesses - Mixed use business - theater - Multi-purpose restaurant - Applebee's - Multi-story first floor - retail, second floor office or municipal government office - Dime store - gifts, etc. - Area for professional office - first level retail - second level office - Anchor - Big Box Priorities - Mixed use/theater - Anchor - Professional office - Small outlets - Housing Issues - Access - Design - Tenant demand - Community support/political attitude - People mover/traffic - Dealing with existing businesses so they stay - Impact of downtown - Community identity Priority Issues - Design - Tenant demand - Financial - Community support - Access In viewing these results and listening to the ensuing discussion that occurred when the four groups reconvened into the general meeting the following themes became apparent: . There is a desire to have better quality retail facilities with a greater diversity of retail businesses (e.g. specialty shops). . The redevelopment concept should offer options for residents of all ages. Facilities such as a health club, teen center, pool hall were specifically mentioned. There was a desire to have the retail complex encompass mixed uses and serve as a meeting place for community events/activities. . Regarding an anchor tenant, it was recommended that a department store ala Target be included. When the participants were asked about a supermarket serving as the anchor tenant there were several vocal objections and the prevailing sentiment was that a grocery store would be a poor 33 I: \econdev\eda \steercom\taskrpt.doc July 16, 1998 choice for the development. · There was a concern that the existing retailers not be .pushed out" as a result of the redevelopment. · The existing road network and parking must be upgraded to make the area more accessible and user friendly. · Entertainment options such as a movie theater, additional restaurants and book store were recommended to be included. · There was general consensus that the City should be a financial participant in order to promote quality redevelopment. Although one panicipant believed that the entire process should be privately financed. I have attempted to provide an accurate and objective summary of the proceedings as they occurred. If anyone in attendance believes that this information is not representative of what transpired. please contact City Manager Frank Boyles (612) 447-4230 and relate your objection. 34 I:\econdev\eda\steercom\taskrpt.doc July 16, 1998 APPENDIX B LIST OF EXISTING BUSINESSES IN THE DOWNTOWN AREA AS OF NOVEMBER, 1997 ii ADDRESS NAMKORBUSINESS LOCATION 4590 COLORADO ST SINGLE FAMILY DWELLING L 13-14, B 13, PLAT OF PRIOR LAKE 4616 COLORADO ST SINGLE FAMILY DWELLING L 13-14, B 13, PLAT OF PRIOR LAKE 4636 COLORADO ST SINGLE FAMILY DWELLING L 11 & 12, B 13, PLAT OF PRIOR LAKE 4646 COLORADO ST BRUCE CAPRA INSURANCE L 8-10, B 13, PLAT OF PRIOR LAKE 4671 COLORADO ST COLORADO STREET STATION L 3-5, B 15, PLAT OF PRIOR LAKE 4690 COLORADO ST SCOTT-RICE TELEPHONE CO Ll-7, B 13, PLAT OF PRIOR LAKE .......)/........... ..) i...... ...... ......... ........ ........ ..... >> ....... o DAKOTA ST PUBLIC UTILITY N30FEETOFE40FEETOF 11 &E 40 FEET 12-4 4667 DAKOTA ST DAKOTA PROFESSIONAL E 45 FEET LOTS 1,2 & 3 - 5 BUILDING. 4730 DAKOTA ST LITTLE LAKERS MONTESSORI W 84 FEET LOTS 5 & 6 - 9 SCHOOL 4769 DAKOTA ST "THE MAIN OFFICE" A) DAKOTA HOUSING B) FRANK 1. WICKER ASSOC. C) FOR RENT D) A.S.I. (USA) INC. 4772 DAKOTA ST (NORTH SIDE) 4773 DAKOTA ST PAT'S BEAUTY SHOP 4775 DAKOTA ST (SOUTH SIDE) OBERHAMER DEALER 4781 DAKOTA ST (SOUTH SIDE) RES. RENTAL 4785 DAKOTA ST (SOUTH SIDE) REMOTE EFFECTS SYSTEMS, INC. 4786 DAKOTA ST STORAGE BLDG.(TANKS) E ERL Y 45 FEET OF 7-10 4792 DAKOTA ST DENTIST DR. RM BLISS W 55 FEET OF 4,5,6-10 F AMIL Y DENTAL CARE 4805 DAKOTA ST AMOCO OIL STATION LOT 1, BLOCK 1 P.F. INC. ADDITION 4810 DAKOTA ST ROD DEHMLOW AUTO SALES EX W 55 FEET OF 4,5 & 6-10 /> /ii/ ... .... ....... .....<) ...........)./ ....... .......... ....... < . ...) <i. ..... ............. 16200 EAGLE CREEK AVE PRIOR LAKE CITY HALL W 100 FEET OF 1,2 & 3 ALL 4 TO 12-5 16268 EAGLE CREEK AVE CARLSON WAGON LIT TRAVEL ....../ ........ ..... ...... ...... ............. .... 16193 ERIE AVE SINGLE F AMIL Y DWELLING PIO LOTS 9 & 10, BLOCK 4, ORIGINAL PLAT .... ...... 16220 HASTINGS COUNTRY FEED STORE ............. .ii / .............. ........ /x. ... ...... ....... } 16290 HWY 13 S VIKING LIQUOR PIO 2-1 L.W'STERLY OF 5.8 FEET 35 I:\econdev\eda\steercom\taskrpt.doc July 16, 1998 ADDRESS .... NAME..OF.BUSINESS >.................. ...................... LANGHORST 16300 HWY 13 S 1 & E 5.8 OF 2-1 LANGHORST 1ST d........... .......... i>....... ....... ..... .........< .... ..........< .....>> .......>< i 16000 MAIN AVE SINGLE F AMIL Y 35 115 22 13.33 S 13.33 A OF 16095 MAIN AVE JIM GIBBISH CONDO 1014 MAIN ST PLAZA A A) DAN'S AUTO BODY B) STAR TRIBUNE 16111 MAIN AVE KUSTOM KOLOR I-CONDO 1014 MAIN ST PLAZA A PEARSONSAUTOBODY 16113 MAIN AVE PEARSONS AUTO BODY 2-CONDO 1014 MAIN ST PLAZA A GARY GIBBISH 16115 MAIN AVE PRIOR LAKE MOTORS 3-CONDO 1014 MAIN ST PLAZA A 16117 MAIN AVE GARY GIBBISH 4-CONDO 1014 MAIN ST PLAZA A PROFINISHERS AUTO BODY 16125 MAIN AVE SINGLE F AMIL Y LOTS 10-11, BLOCK 10, ORIGINAL PLAT 16151 MAIN AVE NELSON WOODCRAFT N'ERLY 2 FEET OF 8 ALL OF 9-10 VIERECK FIREPLACE SALES 16154 MAIN AVE RESIDENTIAL LOTS 3 & 4-9 16161 MAIN AVE J & B FURNITURE APT UNIT S'ERLY 48 FEET OF 8-10 16173 MAIN AVE 4 PLEX W 100 FEET OF 7-10 16174 MAIN AVE LEGAL SERVICES 25 FEET OF E 75 FEET OF 1-4 S 13 FEET OF N 38 FEET OF E 75 FEET OF 1-4 16176 MAIN AVE CONOCO STATION E 67 FEET OF 5 & 6-9 16186 MAIN AVE SPEIKER BLDG LOT 1 EX N 25 FEET OF E 75 FEET A) SPEIKER PL AGENCY ALL EX S 13 FEET OF N 38 FEET OF B) SPEIKER TAX SERVICE E 75 FEET OF 1 C) ANDERSON FAMILY E38 FEET OF S 15 FEET OF 3 &N 10 HOMES FEET OF E 38 FEET OF 4-4 D) ALLIED INSURANCE 16189 MAIN AVE CAR OUEST 12-3 16197 MAIN AVE LIFE EXTENSION, WEIGHT N 1/2 OF 11-3 LOSS & TRAINING CENTER 16203 MAIN AVE HAIRMA TE/TAN MATE S 1/2 OF 11-3 16211 MAIN AVE PUBLIC PARKING LOT S 1/2 OF 7-3 16211 MAIN AVE O'MALLEYS PARKING LOT 8-3 EX. N 1 FOOT 16211 MAIN AVE O'MALLEYS ON MAIN 9 & N 1 FOOT OF 8-3 16214 MAIN AVE MONNENS SUPPLY 4-4 LOT 3 EX E 38 FEET OF S 15 FEET 16220 MAIN AVE THE FRANKLIN COMPANIES (PRIOR LAKE PROF. BLDG.) 16224 MAIN AVE WILLOW GREEN NATURAL CRAFTS (PRIOR LAKE PROF. BLDG.) 16228 MAIN AVE LUTHERAN BROTHERHOOD S 40 FEET OF LOT 4 & N 1/2 OF 5-4 (PRIOR LAKE PROF. BLDG) 16244 MAIN AVE LIBRARY STRIP 50 FEET X 151 FEET LOT 6 BLK4&H&DRR S 1/2 OF 5 & N 35 FEET OF 6-4 S 15 FEET OF 6-4 S 27.5 FEET OF 7-4 EX 20 FEET X 20 FEET 36 l:\econdev\eda\steercom\taskrpt.doc July 16, 1998 ADDRESS NAMEORBUSINESS LOCATION 16244 MAIN AVE MINNEGASCO . 7-420 FEET X 20 FEET IN 16281 MAIN AVE CARLSON HARDWARE & N'ERL Y 1/2 OF 2 S'ERL Y 3-14 FRAMED IN GLORY OUT LOT A LANGHORST ADD 16292 MAIN AVE DAN'S AUTO REPAIR 16298 MAIN AVE SEBASTIAN AUTOMOTIVE 1-2 15 16299 MAIN AVE EXTRA INNINGS N'ERL Y 5 FEET OF 1- I CATES S'ERL Y 1/2 OF 2-14 16306 MAIN AVE VFW POST 6208 N 48 FEET OF 1-2 OF 2 CATES E 14 FEET OF 3-2 CATES LOT 3 & 4 & E 30 FEET OF 5-2 CATES 16309 MAIN AVE BODY SHOP RADIATOR & PI0 1-1 COM. SW COM OF 1 AUTO REPAIR 16318 MAIN AVE JOE'S PIZZA PARLOR 2-2 N 29.25 FEET OF S 81 FEET LOT 1 16323 MAIN AVE RESIDENCE & PARKING LOT N 1/2 LOT 2 BLK 1 CATES 16328 MAIN AVE DG SHOEMAKER & CO PIO 1 & 2 BLK 2 LYING SCATES ...... < i ...... /< .......................x <.........x ...... <...<> ............. ................... .....>--- ..... 4717 PLEASANT ST PRIOR LAKE FLORIST L 1 & E 40' L2, B 3, CATES ADDITION 4770 PLEASANT ST VIDEO UPDATE 4770 PLEASANT ST FONGS RESTAURANT 37 1:\econdev\eda\steercom\taskrpt.doc July 16, 1998 . APPENDIX C POTENTIAL FINANCIAL OPTIONS AND DEVELOPMENT INCENTIVES In any process where a City or Economic Development Authority provides assistance to a private developer in developing or redeveloping property, there are a variety of methods by which assistance can be provided, beyond simply writing the developer a check for some or all of his costs. Following is a summary of various methods which have been used by other communities. Tax Increment Fioancine (TIF): TIF is probably the most common form of assistance offered by communities. In general, TIP is a method of financing qualifying costs of the project from the increased property taxes generated from the project that would not occur "but for" the assistance provided by the City. The difference between the existing property taxes on a parcel of land which is divided among the City, county and school district and the increased property taxes which are used exclusively by the EDA or City for a term of years to finance qualifying costs is known as the tax increment. The taxes generated from the parcel before development continue to be distributed to the respective taxing authorities. Any increased property taxes beyond this base amount are available for assisting the project. Proceeds from the tax increments received can be used for a wide variety of activities including property acquisition, site clearance, streets and utilities, relocation, rehabilitation, appraisals, legal fees and so on. Tax Abatement: Tax Abatement is a relatively new tool for cities to use. It allows a city, county or school district to abate all or a portion of taxes levied against property by the governmental unit. This is an alternative for cities to use in place of TIP to allow assistance to occur without the restrictions imposed by the use of TIP. The amount of taxes abated may not exceed the greater of (a) 5% of the current levy, or (b) $100,000. The abatement may be based on (1) a specific dollar amount per year or in total, (2) the increase in taxes resulting from improvement of the property, (3) the increase in taxes resulting from increases in the market value or tax capacity of the property, or (4) in any other manner deemed appropriate. The City may grant abatements for a maximum of 10 years. Revolvine Loan Funds: Revolving funds are established with revenues from various sources, and loans are then made to assist various development activities. The City or EDA can determine criteria and eligibility for use of these funds. Typically, the loans are made at below-market interest rates. The fund is built up over time through repayment of the loans with interest. Reduction or Deferment of Assessments: The City can agree to either reduce assessments for project improvements or defer the time for repayment of the assessments to occur. This does require some other method of financing the unpaid or deferred assessments. 38 l:\econdev\eda\steercom\taskrpt.doc July 16, 1998 Reduction or Deferment of Fees: As above, the City can agree to reduce or defer fees charged by the City such as park dedication fees, sewer and water area charges, water tower fees and so on. Land Assembly: The City can undertake the assembly of land needed for a development and incur the costs associated with that activity. This eliminates the assembly cost for the developer and gives him one less thing to worry about. Annual Appropriation: The City can make an annual appropriation from City funds and dedicate that appropriation to specific development purposes. This reduces the availability of City dollars for other activities carried out by the City. Economic Development Authority Powers: EDA's have broad authority to undertake development activities under State law. In some cases, the exercise of one or more of these powers on behalf of a developer might remove an obstacle to the development which the developer would not otherwise be able to overcome. The land assembly process discussed above is an example. Structure of the Transaction: In some cases, the structure ofthe deal may be all the assistance required to make a project feasible. This can include modifications in payment schedules, deferral of fees and assessments, reduced developer equity participation and so on. Public or Private Utilities: In some cases, utility companies have assistance programs which are available to assist in industrial and commercial development. The company's motivation is to generate demand for their products and services. Floor Area Ratio: Allowing a developer to construct a project at a higher density may be all that is needed to reach feasibility. Phasin~ of Site Requirements: This involves deferring the provision of certain site improvements, such as landscaping, to a later date, thereby allowing the developer to concentrate expenditures on start-up activities essential to the business. Provision of Streets and Utilities: Normally, developers are responsible for financing and constructing infrastructure improvements such as streets and utilities. The City could provide these items through a public improvement project and assess the cost, thereby reducing the up-front costs to the developer. 39 l:\econdev\eda\steercom\taskrpt.doc July 16, 1998