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Home My WebLink AboutAdoption of Redevelopment Plan 16200 Eagle Creek Avenue S.E. Prior Lake, MN 55372-1714 Economic Development Authority Agenda Regular Meeting February 22, 2005, 6:45 p.m. Prior lake Fire Station I I. Call to Order. II. Consider Approval of a Resolution Initiating a Process for Adoption of a Redevelopment Plan. III. Adjourn. www.cityofpriorlake.com Phone 952.447.4230 / Fax 952.447.4245 H:\BONDS\EDA Agenda - Redevelopment Plan Process.doc 16200 Eagle Creek Avenue S.E. Prior Lake, MN 55372-1714 MEETING DATE: AGENDA #: PREPARED BY: AGENDA ITEM: FEBRUARY 22, 2005 II RALPH TESCHNER, FINANCE DIRECTOR CONSIDER APPROVAL OF A RESOLUTION INITIATING PROCESS FOR ADOPTION OF REDEVELOPMENT PLAN INTRODUCTION: Minnesota Statutes empower Housing and Redevelopment Authorities (HRA) and Economic Development Authorities (EDA) with powers to facilitate economic redevelopment. In the case of Prior Lake, our EDA has been granted the powers of an HRA by its enabling resolution. As part of the city's continuing effort to facilitate the development and redevelopment of the downtown, we have been successful in encouraging private developers to build new buildings, existing business to improve their buildings and improve infrastructure of the downtown replacing streets, utilities and landscaping. To continue this effort Staff is proposing the creation of a Redevelopment Plan for the downtown that will: 1.) Continue to encourage private development and redevelopment of the downtown and 2.) Assure the construction of a new city hall and police station within the Redevelopment Area. The process the City is considering to finance the city hall/police station would involve having the Prior Lake Economic Development Authority (EDA) sell lease-purchase bonds that would be paid by the City over a 20 year time period. In order to facilitate this financing it is necessary for the EDA to approve a resolution to initiate the process for adoption of a redevelopment plan. DISCUSSION: Since the EDA is underwriting the financing of the city hall/police station project it is necessary for the EDA to establish both a Redevelopment Project Area and a Redevelopment Plan that would specifically address the acquisition and construction of this municipal project. Under the Redevelopment Plan the City would lease both the city hall and police buildings from the EDA with an option to purchase pursuant to a lease with option to purchase agreement. Revenue bonds in the principal amount of $10,000,000 are proposed to be sold by the EDA to finance the redevelopment costs. The Redevelopment Proj ect 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 www.cityofpriorlake.com Phone 952.447.4230 / Fax 952.447.4245 H:\BONDS\EDA Agenda - Redevelopment Plan Process.doc ISSUES: AL TERNATIVES: RECOMMENDED MOTION: REVIEWED BY: -".. .-....-,.............-.. ~I" propose to facilitate, as appropriate, private development by negotiated sale of city owned property or acquiring land and preparing it for private development and by constructing public infrastructure improvements. Specifically both the fayade improvement program and the downtown renovation are initiatives that also contribute to this end. Also attached is a proposed schedule that outlines all the steps and required action by the EDA, Planning Commission and the City Council over the course of the next two months with respect to the Redevelopment Plan. At the conclusion of this process, the City would receive bond proceeds by no later than May 1, 2005. The legislature has given cities very few tools to finance development and redevelopment. Most people are familiar with tax increment financing which is one of the available resources. Another is the lease purchase financing of capital building projects that we have outlined in this report. Mary Ipple, the city's bond counsel has advised that our project meets the legislative intent for this financing tool by virtue of the fact that the city hall/police station project is a critical part of our downtown renovation. The construction of this municipal project is complementary to other private and public efforts including new building construction, fa<;ade improvements and the downtown reconstruction project. The process and timeline for the approval of this funding method is very public. There are seven (7) separate meetings at which this question will be discussed. As stated above the Economic Development Authority, Planning Commission and City Council are all involved in the approval process. The following alternatives are available to the Prior Lake Economic Development Authority: 1. Approve a Resolution Initiating Process for Adoption of Redevelopment Plan. 2. Defer action if additional information is required. Alternative #1. Staff would recommend that the Prior Lake Economic Development Authority approve a R~solution Initiating Process for Adoption of Redevelopment Plan. This resolution basically authorizes the preparation of both the Redevelopment Project Area and Redevelopment Plan. Subject to the EDA's approval of the plan proce , the next step for the EDA would occur on March 21, 2005 0 consider formal approval of the Rede I pme Proj ct ea and Redevelopment Plan. H:\BONDS\EDA Agenda - Redevelopment Plan Process. doc Attachments: 1. Resolution Initiating Process for Adoption of Redevelopment Plan 2. Exhibit A "Redevelopment Area Boundary Map" (draft form) 3. Proposed timetable schedule ",,,,,~._~-,,,,,,""',,~",,,,,~-_~.._.._.,,....~,.~_.,~,-."..-,.,~,,~,.,._~"-,. .... "..~--- .",~..,.._,--~-.,,-~.. -_...-..0.....-. .........-~l.."..~.,.._~.~._'....t-- -,.,","'<-~"-- .", ,.,..."-~~"-~."- .~-~,,,-~-,-<~--.. """<e'__ ..,........~...~_.- --..,' ". T ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF PRIOR LAKE, MINNESOTA introduced the following resolution and moved its adoption: Member RESOLUTION #05-XX RESOLUTION INITIATING PROCESS FOR ADOPTION OF REDEVELOPMENT PLAN BE IT RESOLVED by the Board of Commissioners of the Economic Development Authority of the City of Prior Lake, Minnesota (the "Authority"), as follows: 1. Recitals. (a) The Authority is authorized to exercise redevelopment powers under Minnesota Statutes, Sections 469.090 through 469.1082, among other statutory powers; and (b) It has been proposed that the Authority establish a Redevelopment Project Area as described herein (the "Redevelopment Project Area"), in connection with the acquisition and construction of a new city hall/police station facility and adopt a Redevelopment Plan for the Redevelopment Project Area (the "Plan~'); all pursuant to and in conformity with applicable law. 2. City Council Public Hearing; Planning Commission Written Comment. Under applicable law, it is necessary for the City Council of the City of Prior Lake, Minnesota to hold a public hearing on the Plan, and the Authority hereby requests the Council to hold the public hearing, following notice thereof having been published not less than 10 and not more than 30 days prior thereto, and to consider thereafter the Plan for approval at a meeting of the Council on April 4, 2005. The Authority also requests the City of Prior Lake's Planning Commission to provide written comment on the Plan. Adopted by the Board on February 22,2005. Chair Its Executive Director The motion for the adoption of the foregoing resolution was duly seconded by Member , and upon vote being taken thereon, the follow:ing voted in favor thereof: and the following voted against the same: Whereupon the resolution was declared passed and adopted. ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF PRIOR LAKE, MINNESOTA PROPOSED ESTABLISHMENT OF A REDEVELOPMENT PROJECT AREA AND THE REDEVELOPMENT PLAN THEREFOR (CITY HALL/POLICE STATION PROJECT) SCHEDULE AS OF FEBRUARY 2005 The pertinent dates in co~ection with the above-referenced matter are listed below: February 22 EDA adopts Resolution Initiating Process for Adoption of a Redevelopment Plan. March 7 City adopts Resolution Initiating Process for Approval of Redevelopment Project Area and Calling a Public Hearing (Redevelopment Plan must be on file 10 days prior to public hearing). March 12 Publish Notice of Public Hearing on Redevelopment Plan (City's responsibility) not less than 10 nor more than 30 days before hearing date. March 14 Planning Commission adopts Resolution Concerning Redevelopment Project Area and recommends approval to City. March 21 EDA adopts Resolution Approving Redevelopment Project Area and Plan. April 4 City holds a public hearing on Redevelopment Plan. April 4 City adopts Resolution Approving Redevelopment Proj ect Area and Plan. April 18 April 18 EDA adopts Revenue Bond Resolution authorizing issuance of the Bonds. City adopts Resolution Authorizing Execution and Delivery of a Lease and Allocating Small Issuer Rebate Exception Authority. ....~~___"~._.'"u_"_v,.,,'~~,....,~,.,,...,,w_~_,..""*....~_____._.,~_""t.-.,._..~"~.-..t......,.,..,-"-",_...~~.._,..,,,~_.,v...~ r LAKEFRONT PARK City of Prior lake ~~~i::::Olaw. E '~4~~,t;,..... S EXHIBIT A REDEVELOPMENT AREA BOUNDARY MAP [~-~] CITY HALL / POLICE PROJECT SITE REDEVELOPMENT PROJECT AREA Lasl UPUdleJ f-dJlu&y lOGS Lily of f'ri{lll.J.c EllgutoJt:lIng DepalllUtllll X"\AlkllllllSll aliOlI\Ndw l;ily _HiJU\...:lly ,"holl., silll~ drea ,,,,pr 120 0 120 Feet lJ LJ [JIU J 1_ L__)