Loading...
HomeMy WebLinkAbout1989-06-12 CPC PacketZoning Zone •/* Ater THE BIRTHPLACE OF MINNES0TA June 7, 1989 THE STILLWATER PLANNING COMMISSION WILL MEET ON MONDAY, JUNE 12, 1989 AT 7 00 P M IN THE COUNCIL CHAMBERS OF CITY HALL, 216 NORTH FOURTH STREET AGENDA Approval of Minutes - May 8, 1989 PUBLIC HEARINGS 1 Case No V/89-32 - Variance to the side yard and rear yard setback requirements for the construction of a bedroom addition at 1010 North Fourth Street in the RB, Two Family Residential District Billy Jo Elliott, Applicant 2 Case No V/89-33 - Variance request for the placement of an awning over a deck at Popeye's on the River (Stillwater Yacht Club), 422 East Mulberry Street The property is located in the RB, Two Family Residential District, Flood Plain, and the Bluffland/Shoreland District Greg Lindow and Bob Marois, Applicants 3 Case No SUB/89-35 - Preliminary Plat approval to subdivide an 8 68 acre lot into two lots of 2 87 and 5 81 acres at the corner of the Northwest corner of the intersection of Washington Avenue and Curve Crest Boulevard in the Industrial Park Industrial District Curve Crest Properties, Applicant 4 Case No SV/89-34 - Street Vacation request for the remaining portion of Oak Street between Grove and Hemlock Streets in the RA, Single Family Residential District Gerald Cadwell and John Doyle, Applicants OTHER ITEMS - Review of modification of Development Program and Development District No 1 and the modification to the Tax Increment Financing District to include the Brick Pond Project Economic Development District CITY HALL 216 NORTH FOURTH STILLWATER MINNESOTA 55082 PHONE 612 439 6121 e • STILLWATER PLANNING COMMISSION MINUTES Date May 8, 1989 Time 7 00 p m Members Present Gerald Fontaine, Chairman Glenna Bealka Judy Curtis Rob Hamlin Steve Russell, Comm Dev Members Absent Mark Ehlenz Jean Jacobson Jay Kimble Don Valsvik Director Nancy Putz Chairman Fontaine called the meeting to order APPROVAL OF MINUTES Motion by Jean Jacobson, seconded by Glenna Bealka to approve the minutes of April 10, 1989 as submitted All in favor PUBLIC HEARINGS • Case No. V/89-29 - Variance to the sideyard setback requirement (ten feet required, five feet six inches proposed) for the construction of a three season porch and deck on top of an existing garage at 1415 North Second Street in the RA, Single Family Residential District Angus MacDonald, owner of the property, presented the application Mr MacDonald addressed the possible run-off problem and stated that the run-off would be controlled either with gutters and downspout, or by adding dirt and sod to the hill There were no comments from the audience Members of the Commission felt the project would enhance the property Motion by Don Valsvik, seconded by Judy Curtis to approve the variance request subject to two conditions Motion carried 7-0 Case No. SUP/V/89-30 - Special Use Permit and Variance for the renovation of a Carriage House into personal living quarters with two Bed and Breakfast guest rooms, a deck, and carport at 306 West Olive Street in the RCM, Medium Density Residential District Charles and Judy Dougherty, owners, presented the request They explained that four additional parking spaces are planned Two of • the existing rooms on the third floor of the Bed and Breakfast will be combined, therefore the number of guest rooms will only be increased by one The Carriage House will also be made into the owners' living quarters There will be a deck on the front, and two decks on the sides for the guest rooms 1 r ;tillwittt Plannitiq Cc>>wul--:jnjj Minutes May 8, 1989 There were a number of comments from audience members Mary Weber, 205 West Chestnut, commented on the increase in traffic over the past five years in the neighborhood She and other neighbors have signed a petition requesting rezoning of the area from multi -family to duplex in order to keep the area a family - type neighborhood Leo Lohmer, 303 West Olive, stated that Ordi- nance 681 allows only five units for a Bed and Breakfast Miller Weeda, 220 S 4th Street, stated that there has been an increase in on -street parking in the area Joan See, 318 West Olive, felt that the Bed and Breakfast enhances the neighborhood, and stated that the Bed and Breakfast is preferable over rental property George Schmitt, 208 West Chestnut, felt that there is no problem at this time, but an expansion of the Bed and Breakfast would create a parking problem and is opposed to the request Barb Flo, 225 West Chestnut, stated that her home shares a sewer line with the Bed and Breakfast and in the past there has been sewer backup She has a serious concern regarding adding volume to the sewer line John Oertel, 118 S 5th Street, stated that the neighborhood is already saturated, and his home had low gas • pressure this past winter on cold days Richard Kilty, 118 West Oak, questioned the need for additional rooms John Paquette, 225 West Chestnut, stated his concern regarding the sewer, and the population density Mr Dougherty aaddressed several of the concerns of the audience The renovation is planned in order to provide better living conditions for himself and his wife The additional guest room will help to finance the renovation The Carriage House will be used as his family's home when they have children The Carriage House has a different sewer line from the main house, therefore, sewage from the main house will actually be reduced He again stated that four additional parking spaces are planned to reduce on street parking Steve Russell reminded the Commission that in addition to the variance for 10 guest rooms, a variance is required for the setbacks (25 ft and 45 ft required, 3 ft and 5 ft proposed) The Chairman closed the public hearing and the Commission discussed the request Commissioners felt because of the effort made in writing the Bed and Breakfast ordinance, and the strong neighborhood opposition, the request should be denied Motion by Don Valsvik, seconded by Rob Hamlin to deny the variance request Motion to deny carried 7-0 • The Commission continued to discuss the rezoning petition Motion by Don Valsvik, seconded by Jean Jacobson to recommend that the City Council take a serious look at the Chestnut Hill residents' request that zoning be changed from Multi -family to Duplex Motion carried 7-0 2 • Stillwater Minutes May 8, 1989 Planning Commission Case No. V/89-28 - Variance to the twenty-five foot height limit requirement (twenty-nine feet proposed) for a free standing sign in the IP-C Industrial Park Commercial District The sign will be located at the Stillwater Inn Motel, 1750 West Frontage Road Gunnar Balstad, Applicant The applicant was not present at the meeting The variance is requested because of the low elevation at,the location of the sign In addition to height variance, the request is also for size variance The "Best Western" sign proposed will be larger than the existing "Motel" sign Motion by Rob Hamlin, seconded by Jean 29 foot height of sign (or 25 feet elevation), and to deny the variance to area not to exceed Sign Ordinance limit Motion carried 7-0 OTHER ITEMS Jacobson to approve the above nominal average sign size (total surface of 100 square feet) • Annual Review - Case No SUP/88-6 - One year review of a Special Use Permit for a five room Bed and Breakfast and to conduct special events at the Overlook Inn located at 210 East Laurel Street in the RB, Two Family Residential District David and Janel Belz, Applicants The applicants were not present at the meeting The Commission reviewed the staff report and found no problems There are two conditions to be met 1) The parking spaces shall be signed with an approved plan 2) Results of the inspection of the septic system shall be submitted to the City Case No 89-31 - Request for a portable ticket booth located in Hooley's parking lot A representative of the Minnesota Transportation Museum presented the request He stated that the area along the tracks will be cleaned up from the parking lot north to the trestle The plan also calls for directional sandwich board signs The Commission informed the applicant that such signs would not be allowed on public property, but private property owners may allow signs to be placed on their property The signs would require a variance from the City Motion by Judy Curtis, seconded by Glenna Bealka to approve the location of the Minnesota Transportation Museum ticket booth with two conditions clean-up of the tracks, and no free-standing signs Motion carried 7-0 Motion by Rob Hamlin, seconded by Glenna Bealka to adjourn the meeting at 8 25 p m All in favor 3 e • PLANNING APPLICATION REVIEW CASE NO V/89-33 Planning Commission Meeting June 12, 1989 Project Location 422 East Mulberry Street Comprehensive Plan District Two Family Duplex COMPREHENSIVE PLAN DISTRICT Parks, Recreation and Open Space SHORELAND/BLUFFLAND Yes Zoning District RB Applicant's Name Greg Lindow and Bob Marois Type of Application Variance Project Description Variance request for the placement of a temporary retractable awning over a deck at Popeye's on the River (Stillwater Yacht Club) Discussion The request is to place a retractable awning over a deck located on the North side of the restaurant, Poyeye's on the River This is a modification of a variance granted for the construction of the deck on the North side of the building The awning, which will be constructed of a durable cloth material, will extend completely over the whole deck It will not be screened, therefore, not be fully enclosed A variance was granted to the Stillwater Yacht Club by the City Council on June 5, 1986 to construct the present deck The deck is constructed on an existing building that has a substandard setback A Findings of Fact hearing was held previous to the variance on November 1, 1985 It was determined that the North side of the building was the only functional place for the deck and that it would create exceptional hardship to the property if the variance sought would be denied The Findings of Fact is on file in Case No 603 This request does not affect that case except for the temporary awning The original variance was granted with the following conditions 1 The owner must be in compliance with all Minnesota Department of Natural Resources requirements 2 The deck shall be an earth tone color • 3 The deck not be roofed or enclosed 4 The construction not exceed the deck proposed in documents now on file in Case File No 603 CONDITIONS OF APPROVAL • The following are additional conditions which modify the previous variance 1 The awning shall be of a color that blends with the marina environment 2 The awning shall be removed at the end of the summer season 3 The awning shall be in place on a temporary basis when rain showers would prohibit use of the deck 4 The enclosed area shall not be screened 5 The variance is not valid until the DNR has reviewed and certified the variance RECOMMENDATION Approval FINDINGS No increase in flooding would incur if the variance is granted, nor would the variance result in an increased flood height, or any other threat to the public safety The variance sought is the minimum variance allowable to accomplish the purpose ATTACHMENT Plan 0 t tr STATE OF •DEPARTMENT OF NATURAL RESOURCES METRO REGION WATERS - 1200 WARNER ROAD, ST PHONE NO 296-7523 April 24, 1989 Mr Bob Marois Popeye's on the River P 0 Box 463 Stillwater, MN 55082 RE AWNING FOR THE DECK Dear Mr Marois ,t INNEMYTA \\1990 PAUL, MN 55106 �'' FILE NO I have reviewed your drawing for the proposed removable awning to protect your diners during rain showers As we discussed, the color should blend with the marina environment You said that blue and white to match the covered slips won't be practical Therefore, blue might be your best color choice The City would have to modify the conditions of the variance which 16 was originally given for the deck construction We would not have concerns for the awning if its use can be conditioned on a temporary placement If the awning was used strictly for rain showers, and removed at all other times, we could consider it temporary roofing If field inspections show that the temporary status is being abused, we would initiate action through the City to seek a remedy Our approval would be conditioned on the temporary nature of the awning If you have any further questions, please contact me at 296-7523 Sincerely, Molly lodeen Area Hydrologist cc Steve Russell, City of Stillwater Dan McGuiness, MWBAC M239 kap • AN EQUAL OPPORTUNITY EMPLOYER PLANNING APPLICATION REVIEW CASE NO V/89-32 City Council Meeting June 12, 1989 Project Location 1010 North Fourth Street Comprehensive Plan District Two Family Zoning District RA Applicant's Name Billy Jo Elliott Type of Application Variance Project Description Variance to the side yard and rear yard setback requirements for the construction of a bedroom addition Ili crimci nn The request is to construct a bedroom on the second story of an existing home No expansion of the first story is proposed The home faces at a Northeast angle to the corner of a lot wnich creates confusion in considering what are the side and rear yard The lot is also a corner lot The home presently does not meet any side and rear yard setback requirements for the RB district nor • does it meet lot area or lot depth requirements The four foot and five foot setbacks are the rear yard setbacks considering the home faces Fourth Street The rear yard setback requirement is twenty five feet Therefore, a twenty one foot and twenty foot variance is being sought The ten foot six inch setback is considered a side yard setback On the corner lot, a tnirty foot side yard setback is required Therefore, a nineteen foot six inch variance is being sought * Now that you are completely confused The neighbor's garage to the rear of the property is approximately thirty nine feet from the home The neighbor's home to the South is approximately twenty two feet six inches There won't be any conflict in aistance from other structures after the addition is completed Also, the addition is not a safety problem to traffic on the corner of Fourth and Wilkin Streets CONDITIONS OF APPROVAL 1 Run-off from the roof shall remain on site 2 The home be sided or painted in one color within six months of issuance of the building permit 3 The yard shall be cleaned up RECOMMENDATION Approval for the twenty one foot and twenty foot side yard variance Approval for a nineteen foot six inch side yard variance FINDINGS • The granting of the variance is necessary for the reasonable use of the land and building and that the same is the minimum variance that will accomplish such purpose ATTACHMENTS Three sets of plans 2�C 100 Case Number Fee Paid Dale Filed PLANNING ADMIN1S ► : 1VF FORM y/ J Street Location of Property __1Q /D ____�--------------------- - - -- - Lagal Doscriphon of Property: Owner Ncr;,e low----------- — ----- �- ---------- Address _1_�10 "� o Lr �j J ^ S 3 ------------------------- Phone------------ crh,u, l Applicant (if other than owner) Name _��±����'__ /"VriAr°°�--'�£=�J-- ---- Y-1/1 _ 3,'5607 Address ------------ Phone ------------ Type of Request ___ Rezoning ___ Approval of Preliminary Plat __/$pecial Use Permit _-- Approval of Final Plat _Ve_ Variance ___ Other __----------------- Descrspt,on of Request -r£% ''` K U�g, �.'-9 = :5 —5--- ---- i------------------------------------------------------------------ --------------------------------------- i------------ -- ---- Signature of Applicant Date of Public Hearing ----------------------_------------ \--------- r NOTE Sketc'i of proposed property and structure to be drawn on back of dorm or at- tacnea, showing the following I 1 North direction 2 Locat.on of proposed str.-ctsre or. lot. 001��f��"y lb 3 Dimensions of front and side set -backs,,® �'�" 4 Dimensions or proposed structure ke, 5 Street names 6 Location or ad]acent e-isting buildings 7 Other iruormation as may be requested. i Z Approved _-_ Denied ___ by the Planning Commission on ___________ (date) subject to the following conditions ------------------------------------ ----------------------------------------------------------- Approved __- Denied ___ by the Council on ________________ subject to the ifollowing conditions------------------------------------------------ ------- ----- Comments. (Use other side), • APPLICATION REVIEW CASE NO SUB/89-35 Planning Commission Meeting June 12, 1989 Project Location Northwest corner of the intersection of Washington Avenue and Curve Crest Boulevard Applicant's Name C R Hackworthy COMPREHENSIVE PLAN DISTRICT Industrial Park -Industrial ZONING DISTRICT IP-I TYPE OF APPLICATION Minor Subdivision Project Description Preliminary Plat approval for the subdivision of an 8 68 acre site into two lots of 2 8 acres (24,886 sq f t ) and 5 81 acres (253,176 sq ft ) at the Northwest corner of the intersection of Washington Avenue and Curve Crest Blvd Discussion The request is to subdivide a large Outlot in the Stillwater Industrial Park into two smaller lots One lot of 5 81 acres will remain vacant A 35,238 sq f t office/warehouse/retail building will be constructed on the 2 87 acre parcel with parking for approximately 50 vehicles The proposed lots meet the lot size depth and width requirements The lot coverage meets City requirements It also meets City requirements for parking and parking lot accessibility CONDITIONS OF APPROVAL 1 The Final Plat shall include the City Engineer's comments regarding drainage, easements, and other requirements RECOMMENDATION Approval FINDINGS The proposed land division is consistent with the use and lot size requirements of the Zoning Ordinance and Comprehensive Plan ATTACHMENTS - Certificate of Survey - Site plan for subdivision 11 • PLANNING APPLICATION REVIEW CASE NO SV/89-34 Planning Commission Meeting June 12, 1989 Project Location Oak Street between Hemlock and Grove Streets Zoning District Single Family Comprehensive Plan District RA Applicant's Name Gerald Cadwell and John Doyle Type of Application Street Vacation PROJECT DESCRIPTION Street Vacation request for the remaining portion of Oak Street between Grove and Hemlock Streets DISCUSSION The request is to vacate the remaining portion of Oak Street between Grove and Hemlock Streets On October 19, 1982, the Southwest quarter portion of this section of Oak Street was vacated The adjacent property owners would like the remaining portions vacated so the whole section of the street between Grove and Hemlock will be vacated Gerald Cadwell would like to build a garage and driveway and the extra property from the street vacation would allow him the extra property to build CONDITIONS OF APPROVAL 1 A 12 foot utility easement be maintained over the water main line RECOMMENDATION ATTACHMENTS Approval Location of Street Vacation ,%C AG i Case Number-2#_ 5 _ ,Y Fee Paid _ !�L o� ------ Date Filed _1 ����------- PLANNING ADMINIS T 2A T IVE FORM Street Location of Property---------------f-Y° y S Lecal Doscripttion of Property:�Q �� �o� df i,'rl"t ,sf�y ►Sp, ey /./fI��eP/ qt owner Dame Je Elo�1L__la_le -------------- - ---- -32,Z G o✓e Sf SGv a s hone Address __--------------- Applicant ("; other than ownerName ______-- ------------------------- Address ___ Phone _______________ Type e of Request ___ Rezoning ___ Approval of Preliminary Plat ___ Special Use Permit ___ Approval of Final Plat _-_ Variance X Other Desc-ipt,on of Request Zia-- ------------------------------------------------------------- � --- i olicant��� --/- -- -� S�gna,ure of Ap, Data of Public Hearing ___________________ -------------------------- KOTy Stcetcl% of proposed property and structure to be drawn on back o= t7us f ��,,, N, tacnea, showing the following 1 North direction. 2. Locawon or proposed structure on lot. 1 3 Dimensions of front and side set -backs 4 Dimensions or proposea structure 5 Street nary es 6 Location or ad]acent e�cisting buildings 7 Other iruornation as may be requested J � 10 w Atop Approved ___ Denied ___ by the Planning Commission on _-____----- subject to the following conditions __----------------- ---------------- Approved ___ Denied ___ by the Council on ---------------- sublet. to the ,ollowing conditions 't� ------------------------------ Comments (Use other side), • • PETITION TO VACATE PUBLIC STREET THE UNDERSIGNED HEREBY PETITION THAT ALL THAT PORTION OF �� /� -Sf�"e e/ ABUTTING LOTS9. J C ) BLOCK 0 ADDITION, IN THE CITY OF STILLWATER, HEREBY BE VACATED NAME 9 � t ADDRESS 0 `1 04 qp I o - �-7.5 3St3 /La R C P 2,5 Q Y 3 rF R t - 33 a • l cn 50� 3 J 5O 50 50 5v s d 50 t V / J in m `l �n t �I 5 � 3 m Z (In 1' JS5 l Aso x / z i 7 C° y\ t P¢ n `p - - -- - --- - A orlL stti� LJ U, VV t1 yG N 1) c. d /3c 2 c h a �GQo� of S CJ2 z 7e4 6 rZ _ �1 \ __ _ _ � � 2�.Z9 9/L - ���J�_f`��8�/.mod '� h i 12,7 J' F/ �p Q 2 a /7 p� n 0 IL fo a � a i, � / V5r n / v � 2 en / 1 r C i � / o f � � i J err y 3�2 z s • 0 • �3 h tj oe h t r,2 h %L ` -T O {{{{ o alt) qD 15 ae i - • 35-8 /LQ c P o _ � � warE'e .r�,oiv i 9Z 6 f � H/y TGri� AqA/�1/ / c,- _3 i h � _ b IN �I m Nk ! ,/ I` d Is41' 90 lit I t i 60' God 3S8 I /P" /2C P 5 G " q/ATEE "A/N / 9Z 6 • cir 174A/N I D6 9 L yR cA rc AD?�c T�9i98z — r ti � t l �V 00, h 4 �5oyy G �3_0 , _Y SD 7. . f r t 33 4 • /* i ter smlw��� E BIRTHPLACE OF MINNESOTA TH TO PLANNING COMMISSION FROM COMMUNITY DEVELOPMENT DIRECTOR DATE JUNE 8, 1989 SUBJECT MODIFICATION TO DEVELOPMENT PROGRAM AND DEVELOPMENT DISTRICT #1 REGARDING BRICK POND ECONOMIC DEVELOPMENT DISTRICT BACKGROUND Minnesota Statutes require that the Development Program for use of Tax Increment Financing be reviewed by the Planning Commission for conformity with the City Comprehensive Plan In the case of Stillwater, the Development District Land Use and Zoning Policy are the same as the City Comprehensive Plan and Zoning so they are consistent (Because there are usually questions about TIF, I have included in your packet a brief overview of what TIF is and how it works ) • BRICK POND ECONOMIC DEVELOPMENT TIF • This particular modification to the TIF Development Program will include the Brick Pond Special Plan Area into the TIF program (The Brick Pond Land Use Plan is attached ) TIF funds are budgeted to be used for purchasing and developing the neighborhood park site off the end of Harriet Street, landscaping the Green Belt Buffer, assisting in public improvement and encourage superior design A map showing the Brick Pond Economic Development Area and Development Program is attached The use of TIF should act as a catalyst to encourage development, improve the quality of development and provide the neighborhood park and other public amenities as planned for in the Brick Pond Special Area Plan RECOMMENDATION Approval of resolution ATTACHMENTS - Mo ification to Development Program for Brick Pond Project - TIF description - Brick Pond Land Use Plan CITY HALL 216 NORTH FOURTH STILLWATER MINNESOTA 55082 PHONE 612 439 6121 J 0 TAX INCREMENT FINANCING May 1984 Department of Energy & Economic Development Community Development Division in cooperation with League of Minnesota Cities Consultation Service Relating to Statute Compliance Provided By The Law Firm of Holmes and Graven Minneapolis • INTRODUCTION Many Minnesota cities contain areas suf- fering from the problems of obsolescence, deter- ioration, and ultimately, physical and economic decay Buildings and the public infrastructure go through a process of aging and natural deterior ation, and in many cases, the private sector is unable or unwilling to maintain or replace buildings and to bear assessments for public improvements As property in the city ages and deteriorates, private enterprise invests in peri- pheral parts of the metropolitan area When investment activity shifts outward, a ripple effect follows Often businesses and households leave the central city and become part of this ripple effect, raising the service costs of the city and compounding the damaging effects on an already eroding tax base In non -metropolitan sties, a similar ripple effect occurs as invest- ent activity shifts outward from the center of he city to peripheral or unincorporated areas, often encroaching on valuable agricultural land in the process To stem the tide of deterioration and aban- donment of the city, municipal officials seek to encourage reinvestment Attracting private investment and eradicating blight in the down- town or central business district demands avail- ability of adequate amounts of open land at a competitive price Providing sufficient open land may require the acquisition of property, the demolition of structures, and the relocation of owners or tenants Developers can avoid these costs ^ f—nge areas where open land is rela- tively abundant Therefore, to attract developers to reinvest downtown, the public sector must attempt to eliminate these costs for developers in order to reduce, at least from a fiscal point of view, the comparative advantage of fringe areas Federally Financed Redevelopment If the public sector is to provide developable sites that will lead to private reinvestment in 0 deteriorated parts of the city, the local governing body must find a source of revenue to cover acquisition, clearance, and site prepara- tion costs Federal urban renewal matching grants, available through the passage of the U S Housing Act of 1949, were the prevalent source of financing public redevelopment costs through the 1960s However, the conventional urban renewal program and the 1968 Neighborhood Development Program (NDP) were essentially terminated when the Office of Management and Budget executed a White House edict and discon- tinued the funding of the NDP and other federal programs in 1974 Their replacement, the Community Development Block Crarrt program (Housing and Community Development Act of 1974), was not as comprehensive or as well funded as the former urban renewal and NDP programs During the late 1960s and early 1970s city officials in Minnesota began to look for another source of redevelopment funding Tax increment financing became the alternative funding used to finance urban renewal and rede- velopment Tax increment financing is a funding technique that takes advantage of the increases in assessed valuation and property taxes attributed to redevelopment to pay for public redevelopment costs. Tax increment financing may be used to provide public funds for (1) redeveloping or rehabilitating deteriorated areas of the city, (2) facilitating the construction of low -moderate income howling; and (3) promoting economic development and providing employ- ment opportunities. The difference in the assessed valuation and tax revenues generated by the property in the district after new construc- tion has occurred, compared with the assessed valuation and tax revenues generated by the property before, is the tax increment This difference in assessed valuation and tax revenues, determined annually, is used to repay indebtedness or current redevelopment costs 1 � TAX INCREMENT FINANCING A Local Approach to Redevelopment Introduction to the Minnesota Tax Increment Finanaa Act In 1979, the Minnesota Legislature passed a comprehensive tax increment financing law This law amended six statutory provisions enacted from 1947 to 1974, which provided for tax increment financing The 1979 Minnesota Tax Increment Financing Act, Minn Stat 5273 71-78 (Chapter 322, Laws of Minnesota 1979), is designed to provide a uniform set of procedures and standards for planning, imple- menting, and managing tax increment financing districts The legislature has not eliminated any of the statutes that previously embodied tax increment financing, but simply repealed the statutory provisions dealing with tax increment ancing The 1979 Tax Increment Financing t, is now used in conjunction with the previous statutes including Minn Stat S362A, 458, 462, 472A, and 474 when a tax increment financing district is established Legal Authority Before the 1979 Minnesota Tax Increment Financing Act, six statutory provisions, found in five statutes, authorized tax increment financing These five statutes continue to remain effective except for the provisions auth- orizing tax increment financing which have been incorporated in the Minnesota Tax Increment Financing Act The five statutes include (1) The Rural Development Financing Authority Act, Minn Stat 5362A, empowers county governments to create Rural Development Financing Authorities to provide public assistance in developing agricultural food processing facilities (2) The Minnesota Port Authorities Act, Minn Stat S458 09- 199, directs municipal port authorities to deal with decaying industrial areas and improve "marginal land" in the city for industrial and port facilities development • (3) The Minnesota Housing and Redevelop- ment Authority Act, Minn Stat S462 411- '2 et seq, authorizes cities to create Housing and Redevelopment Authorities (HRAs) charged with improving "substandard conditions, unsafe and unsanitary housing and buildings and structures" characterized by such conditions as "dilapidation, obsolescence, overcrowding and faulty arrangement or design of buildings and improvements " Minn Stat S462 415, Subd 1 HRAs may initiate redevelopment projects or low -moderate income housing projects to correct the conditions outlined above (4) The Municipal Development Fircrrct Act, Minn Stat 5472A, allows cities to establish development districts for providing employment opportunities, improving the tax base, and encouraging new development in areas that are already built up (5) The Municipal Industrial Development Act, Minn Stat S474, is designed to prevent deterioration and accompanying unemployment through "promotion, attraction, encouragement, and development of economically sound industry " Minn Stat S474 01, Subd 2 Local units of government, or authorities or agencies they create, may exercise the powers provided under this act to encourage existing revenue - producing entities to remain in the city or encourage new revenue -producing entities to relocate there to the ultimate benefit of the State of Minnesota These five statutes continue to be viable redevelopment tools by themselves if a city plans to undertake a redevelopment project with revenue sources other than tax increment financing With the repeal of Minn Stat S362A 05, 458 191, 462,545, 462,585, 472A 08, and 474 10, all tax increment financing projects must use M S Section 273 71-78 to authorize a tax increment financing plan and district Minnesota Statute(s) 362A, 458, 462, 472A, or 3 .474 must be used for defining the public purpose and making the necessary findings and declara- tions to establish the overall project area where the tax increment district is located Any project usingr tax increment financing as a source of revenue requires the utilization of two statutes the statute creating the project area and specifying its public purpose and the statute establishing the means to finance the project by creating a tax increment financing district Public Purpose A city may use tax increment financing as a fiscal tool to satisfy various municipal needs determined by the Minnesota Legislature to be in the public interest as the Minnesota Rural Development Finance Authority Act, Minn Stat S362A, authorizes any county or combination of counties to establish a rural development financing authority as a public non-profit corpor- ation for the purpose of assisting projects "used or useful for processing or producing of agricultural commodities including, but not limited to, assembling, fabricating, manufacturing, mixing, stirring, warehousing, distributing, selling or any one or more of these processes IF Minn Stat 5362A 01, Subd 2(a) A Rural Development Finance Authority may also engage in projects that "promote agricultural, industrial and scientific research in cooperation with state institutions of higher learning and profit or nonprofit private corporations," Minn Stat S362A 01, Subd 2(d), and help promote new job opportunities by developing natural resources and agricultural industry While Minn Stat S362 01 declares that it is a public purpose for counties to use financial resources for agricultural development, cities may encourage industrial development in harbor or port areas along navioRhlP lakes and rivers Minn Stat S458, the Minnesota Port Authorities Act, authorizes municipal port authorities to create, if proper and desirable, development districts in the port district and to define the boundaries The port authority may use the power of eminent domain to acquire marginal properties and expend public morues to redevelop these properties These marginal properties present difficulties which are being remedied and controlled solely by regulatory processes in the exercise of the police power 0 Cities or counties plagued by insufficient amounts of adequate, safe, and sanitary dwelling accommodations or by areas with substandard residential, commercial, or industrial buildings or structures may use the Minnesota Housing and Redevelopment Act, Minn Stat 5462 411 et seg, to facilitate the correction of such condi- tions Unlike Rural Finance Development Autk- orities which deal with agricultural development and port authorities, which deal with industrial development in port areas, HRAs may use their Powers to provide housing for low -moderate income persons and families and to deal with areas characterized by substandard, dilapidated, or overcrowded and obsolete buildings and blighted properties HR-Is may own or manage low -moderate inccme housing or make sites available to the private sector for constructing, owning, and managing low -moderate income housing HRAs may also acquire blighted property and encourage private enterprise to redevelop these areas th1h '„pportive commercial and industrial development in accor- dance with a comprehensive community plan Cities may deal with non -blighted areas through Minn Stat 5472A , the Municipal Development District Act (MDDA) The MDDA empowers the governing body to establ»h ana administer development programs designed to pro%nde employment opportunities and improve the tax base and general economy of the state The law was originally intended to be used in "built up" areas of cities and the "development program was to encourage commercial development Such a program was "to provide off-street parking to serve shoppers and employees of the district, to provide the necessary linkage between peripheral parking facilities and places of employment or shopping, (to provide) facilities to protect pPHPcrrians from vehicle traffic and inclement weather, to provide open space relief and to provide other facilities as are outlined in the development Program adopted by the governing body " Minn Stat S472A 01 The MDDA has been used for many other development projects, such as providing housing and developing areas that are not "already built up " This law offers the city council or governing body the greatest degree of involvement and supervision in planning and administering a project • The Municipal Development District Act is the only underlying statute that has been modified by amendments to the Tax Increment Act Through a 1982 amendment, any reduction or enlargement of geographic area of the project (meaning the development district project) requires public hearings and findings Wtule the original intent of the legislature was not to alter underlying development and redevelopment laws, the amendment was probably a response to the 1982 authorization to use tax increment revenues outside the tax increment district if inside an associated "project " A final statute defining a public purpose for public intervention in the development process is the Minnesota 'Municipal Industrial Development Act, Minn Stat 5474 Designed to promote commerce and industry in the state, this act is a means for "prevent(►ng) economic deterioration of areas to the point where the detenoration process can be reversed only by total redevelop- ment through the use of local, state and federal funds derived from taxation, with the attendant necessity of relocating displaced persons and of duplicating public services in other areas " Minn Stat 5474 01, Subd 2 The device utilized to attract commerce or industry is the industrial development revenue bond (IDRB), issued by the city on behalf of a company to finance the expansion of old, or the construction of new, facilities IDRBs are issued under the name of the city in order to take advantage of the tax-exempt status of municipa' bonds The bonds are backed by the revenues of the corporation using them and their accompanying below -market interest rate, not by the full faith and credit of the city The city's involvement is minimal, and unless it leases the land or structure and collects rents to repay the bonds, the company owns the land and structure and is responsible for the principal ano interest payments If the city does lease either the land or structure to the company, it may use tax increments (1) "to pay premiums for insurance guaranteeing the payment of net rentals when due under the project lease, of (2) to accumulate and maintain a reserve securing the payment when due of the principal and interest on the bonds" Minn Stat 5474 10, Subdivision 3 5 I yae-, of 1)istricts 0 Three general types of tax increment development districts The tern "district' financing districts are per ni,,aible according to identifies a parcel or set of parcels tha, the 1979 Minnesota Tax Increment Financing constitute the essential tax increment district Act redevelopment, housing, and economic A. Redevelopment District ti^ edevelopment districts involve removing blighted structures or improving blighted land to L ake it buildable Minn Stat S273 73, Subd 10(a), requires that (1) 70 percent of the parcels in the district are occupied by buildings, streets, utilities or other improvements and more than 50 percent of the buildings, not including outbuildings, are structurally substandard to a degree requiring substantial renovation or clearance, or (2) 70 percent of the parcels in the district are occupied by buildings, streets, utilities or other improvements and 20 percent of the buildings are structurally substandard and an additional 30 percent of the buildings are found to require substantial renovation or clearance in order to remove such existing conditions as inadequate street layout, incompatible uses or land use relationships, overcrowding of buildings on the land, excessive dwelling unit density, obsolete buildings not suitable for improvement or conversion, or other identified hazards to the health, safety and general well being of the community, or (3) Less than 70 percent of the parcels in the district are occupied by buildings, streets, utilities or other improvements, but due to unusual terrain or soil deficiencies requiring substantial filling, grading or other physical preparation for use at least 80 percent of the total acreage of such land has a fair market value upon inclusion in the redevelopment district which, when added to the estimated cost of preparing that land for development, excluding costs directly related to roads as defined in section 160 01 and local improvements as described in section 429 021, subdivision 1, clauses 1 to 7, 11 and 12, and section 420 01, if any, exceeds its anticipated fair market value after completion of said preparation, provided that no parcel shall be included within a redevelopment district pursuant to this paragraph (3) unless the authority has concluded an agreement or agreements for the development of at least 50 percent of the acreage having the unusual soil or terrain deficiencies, which agreement provides recourse for the authority should the development not be completed, or (4) The property consists of underutilized air rights existing over a public street, highway or right-of-way, or (5) The property consists of vacant, unused, underused, inappropriately used or infrequently used railyards, rail storage facilities or excessive or vacated railroad rights -of -way Minn Stat S273 73, Subd 10(b)states struct- urally substandard shall mean "contairung defects in structural elements or a combination of deficiencies in essential utilities and facilities, light and ventilation, fire protection including adequate egress, layout and condition of interior partitions, or similar factors, which defects or deficiencies are of sufficient total significance to justify substantial renovation or clearance Parcel shall mean a tract or plat of land established prior to the certification of the district as a single unit for purposes of assessment " As might be surmised from the above definitions, the condition of the property beforr the initiation of the redevelopment district., a opposed to what is constructed on the property, ultimately determines if it is a redevelopment district A redevelopment district may thu- involve residential, commercial, or industry construction to replace blighted land and/o, improvements B. Housing District A housing district includes "a project or a portion of a project, intended for occupancy, in part, by persons or families of low and moderate income, as defined in Chapter 462A, True II of the National Housing Act of 1934, the National Housing Act of 1959, the United States Housing Act of 1937, as amended, Title V of the Housing Act of 1949, as amended, any other similar present or future federal, state, or municipal legislation, or the regulations promulgated under any of those acts " Minn Stat S273 73, Subd 11 With the inclusion of housing districts in the 1979 Minnesota Tax Increment Financing Act, authorities and cities are provided with a leveraging tool to "write down" the cost of land or public improvements —thereby enhancing the feasibility of the housing project Housing districts may be developed regardless of the condition of the proper y before the initiation of the housing project Vacant land with no adverse soil, drainage, or water table conditions or depth- to-bedroc'< problems may be used for a housing district In addition, property blighted by the condition of the land or improvements may constitute a housing district Where blighted conditions exist, the housing district can. be interchangeably classified as a redevelopment distract if it meets the tests of blight outlined in the definition of a redevelopment dtstnct C. Economic Development District The final type of project which qualifies for tax increment financing is the economic development district, which includes any project or portions of a project, rot meeting the regwrements of a redevelopment or housing district, but that is in the public interest because it will (a) Discourage commerce, industry, or manufact..:.:.g from moving their operations to another state, or (b) Result in increased employment in the city, or (c) Result in preservation or enhancement of the tax base of the city Minn Stat S273 73, Subd 12 Tradr tionally, economic development districts have used tax increment financing to help develop industnal parks or commercial - industrial sites generated 4y . industrial— t has been used to help finance the cost of public impro vem sueh-as- roads and the-Tnstalration ater, or other utilities As new buildings are constructed in an industrial park, the assessed valuation they generate is captured by the city; the tax increments derived from this captured assessed value may be used to defray the public improvement costs associated with the development of the industrial park Economic development districts may involve the construction of market -atc housing and other commercial or industrial land uses on rave land with no impairments affecting the economic feasibility of development These districts could also involve development in an area predominantly occupied by buildings, streets, utilities, and other improvements if less than 50 percent of the structures need substantial renovation or clearance Economic development districts are intended as an immediate, short- term source of tax increment leveraging to spun private development, as opposed to redevelopment or housing districts where a long- term public sector commitment is assumed Elsomic development districts are therefore limited to an eight -year period for capturing assessed value, compared to redevelopment or housing districts which are each limited to a twenty-five year term for capturing assessed value and tax increments Economic development districts may encompass a number of public improvements associated with development However, cities and authorities are advised to be judicious in establishing economic development districts Some communities have been known to use tax increment financing as an incentive to encourage a business or company to abandon facilities in another city in favor of relocating in the new community The restrictions associated with tax increment economic development districts are general and subject to liberal interpretations However, care should be taken to insure conformance with the limitations imposed by the 1979 Act and the implied restrictions. Determining the Increment Tax increment financing captures the increase in property valuation attributed tc redevelopment in a specific district to pay for public redevelopment costs The assessed value of the tax increment financing district at the time it is established continues to be allocated to the respective taxing jurisdictions (county school district, municipality) as though no district existed Applying the mill rate to the current assessed value provides the jurisdictions with a level of property taxes currently derived from the property As redevelopment occurs and property values increase, the assessed value of property in the tax increment financing district increases above the original assessed value Applying the mill rate to the increase in assessed value of property produces the tax increment The tax increment is placed in a special redevelopment fund of the city or authority to pay for the public costs of redevelopment In this manner, redevelopment is used to pay for all or some of the public costs associated with the FIGURE 1 Tax Increment Flnancin9 District In 1983 District Assessed Value = $500,000 (January 2, 1983) Payable 1984 Mill Rate = 135 (Determined October 1983) *operty Tax = $67,500 (Payable 1984) 0 PARCEL A New Construction Begins • process The following example illustrates the process A city designates a tax increment financing district as illustrated below in Figure 1 The original assessed value (OAV) of the district in 1983 is $500,000 and the mill rate is 135, generating a tax of $67,500 The city acquires a parcel of land (Parcel A), relocates the occupants, clears the building, and sells it to a developer who in 1984 completes construction of a new building Two years later in January 1985, the completed and occupied new building and land are assessed at $200,000 At the same time, other properties in the district have increased in value so the assessed value of the tax increment financing district including Parcel A is now $525,000 Therefore, the total assessed value of the tax increment district including Parcel A, is $725,000 -- with $200,000 of the increase due to new construction and land in Parcel A and $25,000 attributable to adjustments to property values by the assessor The difference between 0 the value of the property of the tax increment financing district in 1983, when the original assessed value was $500,000, and the total assessed value of $725,000 in the district in 1985 is $225,000 (see Figure 2 below) The different between the total assessed value (TAV) in 198b and the OAV in 1983 is the captured assessed value (CAV) Applying the 1985 mill rate of 12 ; for taxes payable in 1986 to the January 1981 captured assessed value provides the tax increment attributed to the district in 1986 CAV x Mill Rate = Tax Increment $225,000 x 135 = $30,375 The tax increment sum of $30,375 would be remitted by the county auditor to the local governing body or authority for its redevelcp- ment fund in July and December • The OAV of $500,000 continues to generate property taxes of $67,500 (OAV x Mill Rate) which are allocated to the respective taxing jurisdictions in proportion to their mill levies FIGURE 2 Tax Increment Financing District, January 2, 1985 Assessed Value $525,000 Total Assessed Value (TAV) = $725,000 (January 2, 1985) Original Assessed Value (OAV) = $500,000 (January 2, 1983) Captured Assessed Value (CAV) = $225,000 (January 2, 1985) TAV - OAV = CAV $725,000 - $500,000 = $225,000 New Construction Completed Assessed value $200,000 1985 Payable 1986 Mill Rate = 135 (Mill rate is same in 1983,184,'85) (Mill rate is determined by county auditor based upon budgetary needs of each taxing jurisdiction for the following year ) 'Delinquent taxes collected after the October 31 collection date are remitted in February of the following year 9 PLANNING city considering the use of tax increment i ancing should begin the process by identifying areas where this technique may be viable for development or redevelopment proposals The city may consult the marketing studies compre- hensive plan and zoning ordinance to determine what activities or types of development are compatible with existing land uses and consistent with municipal plans and ordinances The city, or a local public agency such as the housing and redevelopment authority or port authority, should next review the economic feasibility of each development or redevelopment proposal if one or more of the proposals appears to be economically feasible, the city may proceed, or direct the housing and redevelopment authority or port authority to proceed, with establishing a tax increment financing district The initial step is to delineate the project area and the tax increment financing district(s) in that project area As mentioned in the Legal Authority section above, the project area must be established in accordance with one of the statutes that empower the city or authority to become involved in the redevelopment process nn Stat Ch 362A, 458, 462 411, 472A, 474) is only within the boundaries of this project area that the city or authority is authorized to carry out the public purpose embodied in the respective community development statute Within the project area, the city or authority designates the tax increment financing district A tax increment financing district may have the same boundaries as'the project area, or it may be composed of scattered or non-contiguous parcels within it. Only those parcels identified in the finance plan will be considered to compose the tax increment financing district and generate tax increments (See Appendix I for a geographic representation of project areas and tax increment financing districts ) Redevelopment and Tax Increment Financing Plan After designating a site for the project area and analyzing the economic feasibility of proposals for the tax increment financing district(s), the city or authority must prepare the redevelopment plan and the tax increment finance plan 0 The need for a redevelopment (or develop- ment) plan is not specified in the 1979 Tax Increment Financing Act However, most of the base laws used with tax increment financing do have a statutory requirement for a general rede- velopment plan The Minnesota Housing and Redevelopment Authority Act, Minn Stat 5462 411 et seq , establishes the requirement for a redevelopment plan to be transmitted by the housing and redevelopment authority to the city's planning agency for study (Minn Stat 5462 515) The Municipal Development District Act, Minn Stat Ch 472A, requires the city establishing the development district to adopt a development program (Minn Stat S472A 03) or plan to guide improvements (Minn Stat 5474A 03) The Port Authorities Act, Minn Stat 5458 09, instructs the port authority to complete a comprehensive plan for the regu- lation, future development, and improvement of the port district that is consistent with the comprehensive plan of the community (Minn Stat 5458 16, Subd 2) The Municipal Industrial Development Act, Minn Stat Ch 474, subjects the property acquired by a housing and rede- velopment authority to a redevelopment plan (Minn Stat 5474 15) Each project is subject to the approval of the Minnesota Commissioner of Economic Development, and some documen- tation of the proposal if necessary The Minnesota Rural Development Finance Authority Act, Minn Stat Ch 362A, also requires the approval of the Commissioner of Economic Development for any contemplated project, and may require preliminary documentation (Minn Stat S362A 06) The redevelopment plan is a legal guide for planrung and implementing a redevelopment, development, port, industrial development, or rural development district/project area The plan entinciates the "powers" or the legal authority for the involvement of the city or authority in the development process Besides being a guide for the physical development and the continual management of property in the project area, the plan offers the city or authority an opportunity to express its social goals in facilitating the scheduled redevelopment The plan is also a way to relate the redevelopment district/project area to existing comprehensive plans or design frame- 10 I � works of neighborhood, municipal, regional, or other geographic entities The tax increment financing plan is separate from, but designed to complement, the rede- velopment plan by analyzing the economic con- -sequences of tax increment financing The tax increment financing plan must contain a state- ment of objectives for improving a project and a development program for the project, including the property in the project that the authority or city intends to acquire An amendment to the Act in 1982 requires a list of any development activities which the plan proposes to take place within the project, for which contracts have been entered into at the time of the preparation of the plan and the identification of any other specific development reasonably expected to take place within the project The plan must also contain the most recent assessed value of taxable property in the tax increment financing district, the estimated captured assessed value of the district at completion, the duration of the district's existence, an estimate of the impact of tax increment financing on the assessed values of all taxing jurisdictions in which the tax increment financing district is located in whole or in part, the sources of revenue to be used to finance or otherwise pay public costs, the amount of bonded indebtedness to be incurred, and an estimate of the cost of the project This last element should be incorporated in the plan in the form -of -a line item budget, which usually includes the following costs 1 Acquisition 2 Relocation 3 Demolition and Clearance 4 Site Preparation S. Public Improvements 6 Planning 7 Legal 8 Engineering 9 Administrative 10 Bonding 11 Capitalized Interest 12 Contingency Once the redevelopment and tax increment financing plans are prepared, the authority or city transmits them to the local planning commission to insure conformance with the local land use or comprehensive plan In addition, the authority or city must provide an opportunity to meet with the members of the county board of commissioners of any county in which any portion of the proposed tax increment financing district is located, and the members of the school board of any school district in which any portion of the proposed district Is located, depending upon which body will administer the proposed district The authority or city must present to the members of the county board of commissioners and the school board its estimate of the fiscal and economic impact of the proposed district The members of the county board of commissioners and the school board may review and comment upon, but may not prevent the city or authority from approving the creation of, the tax increment financing district However, the county auditor may not certify the original assessed value of a district until the county board has presented its written comment on the proposal to the city or authority, or 30 days has passed since transmittal to the board of the fiscal implications, whichever occurs first Closely related to the budgetary line items, which reflect the public costs of redevelopment through tax increment financing, is " the determination of revenue and revenue sources required to pay for these public costs Foi example, assume the authority or city will acquire three deteriorated properties, relocate residents or businesses, demolish the structures, and clear and sell the site to a developer for constructing a new commercial facility The total budget will be $150,000 ($105,000 in capital costs and $45,000 in capitalized interest costs) and the new commerical facility will generate an annual tax increment of $19,720 The authority could enter into an agreement with the city whereby it would issue $150,000 in general obligation bonds at an interest rate of ten per- cent (10%) on behalf of the authority The authority would then use the bond proceeds to finance the public redevelopment costs The initial three years of the debt retirement schedule involves paying interest but no principal on the general obligation bond These three years, referred to as the capitalized interest period, represent a portion of the bond proceeds used to make the initial three payments when no tax increment revenue is yet available The capitalized interest amount of $45,000 is part of the $150,000 general obligation bond proceeds Once the new construction is completed and 11 joessed (usually a two to three year period), a x increment will be generated and the principal and interest payments may be financed from the annual tax increments received by the authority or city Use in Conlunchon With Other Federal and State Redevelopment Incentives Tax increment revenue may also be supple- mented by additional sources such as the Minnesota Department of Energy and Economic Development (DEED) Small Cities Development Grant Funds, State Aid for Highway reconstruction, and Iron Range Resource and Rehabilitation Board public works money Use of such supplemental funding will reduce local autonomy in project administration, but may often provide the necessary revenue to render a project economically feasible While tax increment financing is strictly a tool for meeting public redevelopment costs, it may be used with other federal and state programs offering private sector incentives for development Tax increment financing may provide a source of revenue to "write down" the �fost of land when used with Minnesota Housing nance Agency construction and mortgage loans for low -moderate income housing or HUD Title II housing Tax increment financing may also be used to finance land acquistion, relocation, and public improvements in conjunction with commercial -industrial projects receiving financial assistance through industrial revenue bonds or the HUD Urban Development Action Grant program Public Hearin A city must review and approve the tax increment financing plan at or after a public hearing before the county auditor will certify the original assessed value of the tax increment financing district If an authority which proposes to establish a tax increment financing district is different from the city (as in the case of an HRA), it must apply to the city where the proposed district will be located for approval of its tax increment financing plan Notice of the public hearing should be published at least once in a newspaper of general circulation in the city not less than 10 days nor more than 30 days before the hearing r_7 L_..A Findin Before establishing the tax increment finan- cing district, the municipal governing body must find that (1) The proposed tax increment financing district is a redevelopment district, e housing district, or an economic develop- ment district, (2) The proposed development or redevelop- ment district would not reasonably be expected to occur solely through private investment withi i the reasonably fore- seeable future and therefore the use of tax increment financing is deemed necessary, (3) The tax increment financing plan conforms to the general plan for developing or redeveloping the city as a whole, (4) The tax increment financing plan will afford maximum opportunity, consistent with sound needs of the city as a whole, for developing or redeveloping the project by private enterprise, (5) The tax increment computation, for the purpose of contributing to the fiscal disparities pool, will either be removed from the commercial -industrial property in the tax increment financing district or will come from outside the district to use maximum tax increments to retire project debt (only applicable in the seven -county Twin Cities metropolitan area) Minn Stat S273 74, Subd 3 12 These findings should be included in the resolution establishing the tax increment finan- cing district Upon adoption of this resolution, the city or authority should transmit the tax increment f:.a -ig plan to the office of the county auditor and request certification of the properties or tax parcels which constitute the tax increment financing district The effective certification date will be the date the certified copy of the resolution approving the tax incre- ment financing district and the tax increment financing plan is received by the office of the county auditor Upon being notified that the tax increment financing district has been certified, the city or authority may begin implementation r] 0 LJ IMPLEMENTATION Implementation consists of actually securing the means to finance the public costs associated with acquiring property, demolishing structures, clearing land, preparing and grading sites, installing public improvements, and making sites available to private enterprise for development Additionally, implementation involves coordina- ting new construction and rehabilitation with the construction of public improvements such as streets, curb and gutter, sidewalks, storm and sanitary sewers, and utilities The planning and implementation phases may be expected to consume 10-20% of the time of the overseeing city staff member Implementa- tion begins with negotiating an agreement between the city and the private developer This agreement implies shared risk between the city and the developer and provides recourse to the city pursuant to Minn Stat 5273 75, Subd 5, in the event the developer does not commence or complete construction Upon completing the agreement with the developer, the city may finish issuing general obligation or revenue bonds to finance public planning and implementation costs (which involve reimbursing the city or authority treasury for plan preparation, property options or appraisals, and any legal costs of completing resolutions required to designate and create the tax increment financing district) The bond proceeds may be invested at a more favorable rate of interest within the arbitrage regulations established by the U S Internal Revenue Service and withdrawn in order to finance capital costs (i e , property acquisition, relocation benefits, demolition and site clear- ance work, and public improvement materials) and installation and non -capital costs (i e , administration, legal and engineering fees, and interest payments on bonds during the capitali- zation period before any tax increments accrue) Negotiating with property owners to acquire property and initiating condemnation proceedings— through the powers of eminent domain authorized in the Port Authority Act (Minn Stat 5458 192, Subd 2), the Municipal housing and Redevelopment Authority Act (Minn Stat S462 445, Subd 2), and the ffu cipaTIsevelopment District Act (Minn Stat 5472 08, Subd 1}— will be the likely initial implementation steps once the bond proceeds are available Similarly, if appraisals were not prepared during the planning phase, the city should consult a relocation appraiser to determine what figure to base negotiations or and whether any property should be included it the negotiation as part of the acquisition price Some machinery and other personal property it commercial or industrial structures may be considered immovable fixtures and therefore part of the real property acquisition price The relocation appraiser will meet with business owners, whether property owners or tenants, to determine moving expenses and items that may be relocated as movable fixtures The relocation appraiser may also determine moving expenses and settlements for owners or tenants moved from residential property Paying relo- cation benefits is required for all public sector displacements pursuant to the Minnesota Uniform Relocation Act, Minn Stat S117 52-56 After property has been acquired and pro- perty and household have been relocated, the city or authority may let contracts for demolition and clearance work Similarly, the city public works department or an engineering and construction firm may be retained to begin removing the existing public infrastructure and replacing it with new public improvements and utilities While public improvement replacement occurs, the city or authority should dispose of property for redevelopment All property acquired by the city or a local public agency may be disposed of without public bidding, but only after a public hearing if the agency handling the transaction is a municipal port authority (Minn Stat S458 196, Subd 4) or a municipal housing and redevelopment authority (Minn Stat S462 525, Subd 2) If the city council is disp%mit% of the property pursuant to Minnesota Statutes S472A.03, no public hearing is required among statutory cities, home rule cities are bound by the conditions of the local charter Once property disposition has taken place according to the terms and conditions of the agreement with the developer, the authority or city need only monitor the timing of new construction or substantial rehabilitation The timely completion of new construction or rehabilitation is important as the tax increments resulting from increases in assessed value will be used to amortize the debt service 13 9 MODIFIED DEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRICT NO 1 INCLUDING MODIFIED TAX INCREMENT FINANCING PLANS FOR TAX INCREMENT FINANCING DISTRICT NO 1, (Downtown and Industrial Park Scattered Site Redevelopment District) TAX INCREMENT FINANCING DISTRICT NO 2, (Nelle Pro3ect) TAX INCREMENT FINANCING DISTRICT NO 3, (Arkell Pro3ect) AND TAX INCREMENT FINANCING DISTRICT NO 4 (Woodland Lake Pro3ect) AND TAX INCREMENT FINANCING PLAN AX INCREMENT FINANCING DISTRICT NO 5 (BRICK POND PROJECT E CITY OF STILLWATER, MINNESOTA June 20, 1989 . SECTION VI TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO 5 Pro3ect Summary The tax increment revenues generated through new development in Tax Increment Financing District No 5 (Brick Pond Pro]ect) will be used to enhance the quality of public improvements and to reduce the extraordinary utility improvement costs caused by an inappropriate subdivision pattern and incompatible lana uses The Brick Pond Planning Area contains land -locked parcels (no street access) and commercial and multifamily residential development next to a stable, single family neighborhood Tax increment revenues can be used to reduce utility improvement costs in line with other competitive sites in the area This will increase the likelihood for the area to develop The need for a neighborhood park and greenbelt buffer was identified in the Comprehensive Plan for the area Tax increment revenues will be used to purchase land for the park and make park improvements and to establish a landscape buffer between incompatible land uses Remaining tax increment revenues will be used to upgrade and rehabilitate downtown Stillwater • Subsection 6 1 -je Statement of Obctives --See Sec- _ - - tion I, Modified Development -Program -for -Development—District No 1, Subsection 1 4, Statement of Ob]ectives_ Subsection 6 2 Development Program See Section I, Modified Development Program for Development District No 1, Subsection 1 1 through 1 15 Subsection 6 3 Parcels to be Included in Tax Increment Financing SDistrict- No 5 The llwater, County of Washington, g State eof Minnesota ls located n the City o C P I N Owner 9033-2360 Stillwater I S D NO 834 9033-2115 Robert Brackey 9033-2120 Robert Brackey 9033-2140 Rose Floral 9033-2356 Augustine Bros 9033-2357 Augustine Bros 9033-2354 Mexicale FURTHER INFORMATION REGARDING THE IDENTIFICATION OF THE PARCELS TO BE INCLUDED IN TAX INCREMENT FINANCING DISTRICT NO 5 CAN BE OBTAINED FROM THE OFFICE OF THE CITY CLERK is Subsection 6 4 Parcels in Acquisition Properties identified for acquisition will be acquired by the City in order 6-1 . to accomplish one or more of the following remove, prevent, or reduce blignt, blighting factors, causes of blight, or the spread of blight and deterioration, to eliminate unhealthful, unsafe, and unsanitary structures and conditions, reduce traffic hazards, provide land for needed public streets, utilities, and facilities, remove incompatible land use, eliminate obsolete or detrimental uses, assemble land for redevelopment, carry out clearance and/or redevelopment to accomplish the uses and objectives set forth in this plan The City may acquire and reconvey the parcels identified in Section I, Subsection 1 14 of the Development Program The following are conditions under which properties not designated to be acquired may be acquired at a future date (1) The City may acquire property by gift, dedication, condemnation or direct purchase from willing sellers in order to achieve the objectives of the tax increment financing plan, and (2) Such acquisitions will be undertaken only when there is assurance of funding to finance the acquisition and related costs Subsection 6 5 Development Activity in the Tax Incre- ment Financing District for which Contracts have been Signed The —_ following _ contracts _ have been —entered- 1 n.to__hy the pity —of - - Stillwater and the persons named below (As Contracts are entered into with the City of Stillwater, they will be inserted in this Subsection ) _ Subsection 6 6 Other Specific Development Expected to Occur within the Tax Increment Financing District The City anticipates that the following development will occur within Tax Increment Financing District No 5 (1) construction and equipping of an 81-unit multifamily housing facility, (2) construction and equipping of a 20-unit duplex residential facility, and (3) construction of an auto service center (As other specific development is expected to occur, it will be inserted into this Subsection ) Subsection 6 7 Estimated Cost of Protect See Sub- section 1.5 of the Development Program for estimated costs associ- ated with the Development District 6-2 •Subsection 6 8 Estimated Amount of Bonded Indebted- ness It is anticipated that bonded indebtedness may be incurred in an amount so that $616,000 in net proceeds will be available with respect to this portion of Development District No 1 Subsection 6 9 Sources of Revenue Public improvement costs, acquisition costs and other costs outlined in the Estimated Cost of Pro3ect (Subsection 5 7 above) will be financed through the annual collection of tax increments as described below It is anticipated that the City will retain all tax increment generated from Tax Increment Financing District No 5 to pay for costs outlined in Subsection 1 5 of the Development Program Subsection 6 10 Original Tax Capacity, Estimated Captured Tax Capacity Pursuant to Section 469 177, Subd 1 of the Tax Increment Financing Act, the original tax capacity for Tax Increment Financing District No 5 is estimated to be $109,804 for the year 1988 payable 1989, based on the tax capacity of all taxable real property within Tax Increment Financing District No 5 Pursuant to Section 469 177, Subds 1 and 4, of the Tax Increment Financing Act, the County Auditor of Washington County (the "County Auditor") shall certify in each year the amount by which the original tax capacity has increased or decreased as a result in a change in tax-exempt property within Tax Increment Financing District No 5, reduction or enlargement of Tax Increment Financing District No 5 or changes in connection with previously issued building permits In any year in which the current tax capacity of Tax Increment Financing _District No - 5 declines below the original tax capacity, no tax capacity will be captured and no tax increment will be payable to the City Pursuant to Section 469 175, Subd 1, and Section 469 177, Subd 2, of the Tax Increment Financing Act, the estimated captured tax capacity in Tax Increment Financing District No 5 at completion, 1991 paayble 1992, will be approximately $328,622 This estimated annual captured tax capacity value is determined in the following manner Estimated Tax Capacity at Completion, 1991/1992 $479,200 Original Tax Capacity* 150,578 Captured Tax Capacity $328,622 *Adjusted for inflation See Exhibit VI-C for the annual ad3ustment to the original tax capacity of Tax Increment Financing District No 5 Subsection 6 11 Type of Tax Increment Financing Dis- trict Tax Increment Financing District No 5 is, pursuant to • Section 469 174, Subdivision 12, an economic development as defined below 6-3 . "Economic development district" means a type of tax increment financing district which consists of any project, or portions of a project, not meeting the requirements found in the definition of redevelopment district, mined underground space development district or housing district, but which the authority finds to be in the public interest because (1) it will discourage commerce, industry of manufacturing from moving their operations to another state, or (2) it will result in increased employment in the municipality, or (3) it will result in preservation and enhancement of the tax base of the municipality Subsection 6 12 Duration of Tax Increment Financina District No 5 In accordance with Section 469 176, Subdivision 1, of Tax Increment Financing Act, the City, with this economic development district, may collect tax increment payments over a period of time ending eight (8) years from the date of the receipt of the first increment, or ten (10) years from approval of the tax increment financing plan, whichever is less • - The City will approve the Tax Increment Financing- Plan onJune 20, 1989 Therefore one defined termination date after which tax increment income cannot be received will be June 20, 1999 No current development on properties within Tax Increment Financing District No 5 will have taken place by January 2, 1990, the date on which the properties within the district were reassessed for tax purposes Therefore any increase in taxable assessed value over the original assessed value would be caused only by an inflation value on undeveloped properties Any captured value created by an inflationary value would produce an insignificant tax increment for collection in 1991 The City does not wish to accept any tax increment in 1991 and wishes to pass through any such increment which might be receivable to all other taxing jurisdictions within the district which would collect such increment in the same proportion as before establishment of the district If the City, through the tax increment district, is not paid any tax increment in 1991, then the first possible receipt would be in May, 1992, from any value captured based on assessor's reevaluation of the property on January 2, 1991 Under the second defined termination ate, eight years from May, 1991 would be May, 2000 • Since the June 20, 1999 limitation is less than the period ending May, 2000, it is assumed in the finance plan that no 6-4 •tax increments will be received after the final property tax settlement in 1999 Subsection 6 13 Estimated Imnact on Other Taxing Jurisdictions Test No 1 The estimated impact on other taxing jurisdictions assume construction would have occurred without the creation of Tax Increment Financing District No 5 If the construction is a result of tax increment financing, the impact is $0 to other entities Test No 2 Notwithstanding the fact that the fiscal impact on the other taxing jurisdictions is $0 due to the fact that the financing would not have occurred without the assistance of the City, the following estimated impact of Tax Increment Financing District No 5 would be as follows if Test No 1 (the "but for" test) was not met IMPACT ON TAX CAPACITY Original* Future Captured District 1988 Total** Tax Tax Tax % of Entity Tax Capacity Capacity Capacity Capacity Entity Washington •County $124,572,273 $150,578 $479,200 $328,622 0 264% Stillwater 11, 977, 402 150, 578 _ 4J9i2D0-328, 622 _ _ 2.744 I D S #834 41,116,738 150,578 479,200 328,622 0 799 * Adjusted for Inflation ** Before Fiscal Disparities IMPACT ON TAXES 1988/89 Tax Capacity Potential Entity Rate Taxes Washington County 20 931 $ 68,784 Stillwater 24 016 78,922 I S D #834 49 666 163,213 Other (1) 5 554 18,252 100 167 $329,171 (1) Other taxing Jurisdictions include AVTI, Metropolitan Mosquito Control District, Metropolitan Council, Metropolitan Transit Commission, HRA, RTB, and Watershed District. Subsection 6 14 Tax Increment Financing Account for Tax Increment Financing District No 5 The tax increment received with respect to Tax Increment Financing District No 5 • will be segregated by the City in a special account or accounts on its official books and records 6-5 • Subsection 6 15 Modification of Tax Increment Financ- ina Plan for Tax Increment Financina District No 5 As of June 20, 1989, no modifications to Tax Increment Financing District No 5 or the Tax Increment Financing Plan therefor have been made • _ 6-6 • • • ,8174 K 10oAi& Z`e on ooni . Ara rgfGf- 62 o9033 A e� I 3.29 AC ' I, 94033 - 2-/i / '+almYD- � I t L21 �403 AC TRUNK I FOREST HILLS FRON-TAGE ROAD a SOUTH GREELEY AREA i PARCEL MAP i 4 IA r-a �Jx H N � On + fi t (D G, � H � 62-09033 H �7. 2357 0 N 523 AC W � 62-09U133 d 2356 N 672 ac F rr a N 0 rr � Z w 62 _"- 0 2Wi to 0 76 Ac rJ. a u, rD W rr WAY NO 36 LT P x a �y� I STILLWATER MINNESOTA EXHIBIT VI-C CITY OF STILLWATER, MINNESOTA Prepared on 16-May-89 41STMENTS TO ORIGINAL TAX CAPACITY by SPRINGSTED Incorporated INCREMENT FINANCING DISTRICT NO 5 I Average Percent Increase Determination* A Established Date (Public Hearing) Jun-89 B Base Year Valuation Date 02-Jan-88 C Base Year Tax Capacity $109,804 D Fifth Preceding Year Valuation Date 02-Jan-83 E Fifth Preceding Year Tax Capacity $70,646 F Five Year Tax Capacity Increase (E - C) $39,158 G Five Year Total Tax Capacity Ratio (F / E) 0 5543 H Five Year Average Increase Ratio (G / 5) 0 1109 I Annual Base Year Adjustment Factor (1 00 + H) 1 ill * According to September 24, 1982 Department of Revenue memo to County Auditors II Adjustment Calculations for Original Tax Capacity (OTC) Adjustment Adjusted Year OTC Factor OTC Base 1988 109,804 1 000 109,804 1989 109,804 1 111 121,992 1990 121:992 1 111 135,533 1991 150,578 1 167,578 199Z 150,578 ill 1 111 167,292 292- 1993 167,292 1 ill 185,861 1994 185,861 1 ill 206,492 1995 206,492 1 111 229,412 1996 229,412 1 111 254,877 1997 254,877 1 ill 283,168 1998 283,168 1 ill 314,600 III Tax Capacity / Tax Increment Calculations (Assumes Adjustment to Original Tax Capacity) Projected Assumed Assess Adjusted Projected Captured TC Projected Collection Year OTC TC TC Rate Increment Year Base 1988 109,804 --- --- --- --- 1989 1989 121,992 121,992 (0) 100 167 (0) 1990 1990 135,533 135,533 (0) 100 167 1991 150,578 479,200 328,622 100 167 329,171 1992 1992 167,292 479,200 311,908 100 167 312,429 1993 1993 - 185,861 479,200 293,339 100 167 293,829 1994 1994 206,492 479,200 272,708 100 167 273,164 1995 1995 229,412 479,200 249,788 100 167 250,205 1996 1996 254,877 479,200 224,323 100 167 224,698 1997 1997 283,168 479,200 196,032 100 167 196,359 1998 • 1998 314,600 479,200 164,600 100 167 164,875 1999 • Landscaping 100,000 Electrical Power Distribution 380,000 Lighting/Traffic Controls 100,000 * Estimated on a 66% of total cost payable by Woodland Lakes Other Public Costs Engineering 380,000 Legal 25,000 Surveying 5,500 Contingency 410,000 Total Estimates $4,192,500** ** The total dollar amount does not include capitalized inter- est or other bonding costs These costs would need to be calcu- lated as part of a larger bond issue (AS MODIFIED JUNE 20, 1989) TAX INCREMENT FINANCING DISTRICT NO 5 BRICK POND PROJECT ESTIMATE Land Acquisition Park Improvements Green belt buffer and --- — landscaping - --- - - Utility Assessment Reduction Administrative - $ 60,000 50,000 250,000 - 200,000 - 56-, 000— - - $ 616,000* *The total dollar amount does not include capitalized interest or other bonding costs, if any These costs would need to be calculated as part of a larger bond issue Subsection 1 6 Environmental Controls (AS ORIGINALLY ADOPTED MAY 7, 1985) The proposed redevelopment pro3ects in the Development District do not present any permanent environmental problems All municipal actions, public improvements, and private develop- ment shall be carried out in a manner that will enhance, rather than detract from the natural environment. All necessary envi- ronmental permits and clearances will be obtained (AS MODIFIED FEBRUARY 21, 1989) The proposed development activities in the Development District do not present significant environmental concerns All municipal actions, public improvements and private development shall be carried out in a manner consistent with existing envi- ronmental standards 1-10 INut ) t vuc (vr 9nn1u) U15 7I(1(r i i 1f1 ogoii rrT> ti 013 62 fyo"1y ¢O m[L- - — -- -�— I NE'u6tr M 4jut 0 It I OS J u 1 l 1 I ui s;I r 96 95033 2100 I 111 I 41 �� 31; 95033 9503i ;I~ 91 -95033 2210 2100 Nl LL 1 1150 4 1 1 Vl �, I -- T H 36 .4w I PROPOSED ALIGNMENI mcw e+ .canto nw • 4 PROPOSE DETENTIO BASIN Y I NO SCALI1 L�eaSp���1 EDICATED R/W--' 1 7 i c� B[ uG 1 I u)Os3 u9u33 - 2354 2355QQ 6t 091113 """'CEGEND --�+— PROPOSED STORM SEWER +—s— PROPOSED SANITARY SEWER —<— EXISTING SANITARY SEWER _ CITY LIMITS STILLWATER, MN DATE 2/ 17/81 1 FILE 87068 1 1 • PLANNING APPLICATION REVIEW CASE NO V/89-37 PLANNING COMMISSION MEETING July 10, 1989 PROJECT LOCATION 306 West Olive Street COMPREHENSIVE PLAN DISTRICT RCM ZONING DISTRICT Medium Density APPLICANT'S NAME Charles and Judith Dougherty TYPE OF APPLICATION Variance PROJECT DESCRIPTION Variance to the rear and sideyard setback requirements to renovate an existing Carriage House DISCUSSION The application is to convert a Carriage House into personal living quarters At the present time, the structure on the property is a nine room Bed and Breakfast by a variance granted in September 1988 The conversion of the Carriage House into personal living quarters would allow the Dougherty's to have a private residence while maintaining a nine room Bed and Breakfast The Bed and Breakfast Ordinance states that "A Bed and Breakfast is an owner/manager occupied residential structure used as a lodging establishment • where a room, or rooms, are rented on a nightly basis and in which breakfast is included as part of the basic compensation " If the Dougherty's are granted this variance, they will not be occupying the Bed and Breakfast but they will remain on -site The variance is needed for setbacks A twenty foot sideyard setback and forty-five foot rearyard setback is required for the Carriage House The project proposes a five foot sideyard setback and three foot rearyard setback The design of the proposal is sensitive to the design of the existing Carriage House with lap siding and casement windows Decks are proposed on either ends of the building with two additional covered parking spaces In June, 1989, the City Council denied a request from the Dougherty's to convert the Carriage House into personal living quarters with an additional two Bed and Breakfast rooms The denial was based on an increase in rented rooms and its impact on the residential neighborhood due to parking, commercial activity and additional deliveries This request does not increase commercial activity of the Bed and Breakfast PROPOSED CONDITIONS OF APPROVAL 1 The Bed and Breakfast rooms will remain at nine and floor plan showing the room arrangement shall be submitted 2 All doors of the Bed and Breakfast shall be locked at 11 00 P M 3 No space in the Carriage House shall be rented, but used only by the owners of the Bed and Breakfast for their own personal use RECOMMENDATION Denial FINDINGS The proposal is not consistent with setback requirements of the Zoning Ordinance ATTACHMENT Project Plans PAC 100 Case Number o_G Fee Paid ___� _ _______ • 6 Data Filed _ _�3 ------ PLANNING ADMINIS T ZA T IVE FORM Street Location of Property ___________________ Leval Doscription of Property: -.it,___` 5 � b ____W11Son _&�_ Owner Nome ReLt� -------------------- Address F------- _-- Phone Acolicant (if other than owner) Name --------------------------------- Address ------------------------------ Phone --------------- Type of Request ___ Rezoning ___ Approval of Preliminary Plat Special Use Permit Approval of Final Plat Variance ___ Other___________________ Desc-ipt.on of Request 7A ��2a �_�'lt�._ e xis ►,z�_ Cc,�LiQ��.%ySQ-- qt_ • sste Sl.�l�G1wl�II�_t1_�$_ Irlj=—ou=--`=--l�v�_c�_4kc�c��r5__=14.�.y2�^Sl U - Signature of P. Date of Public Hearing ___________________________- NOT : S.cetch of proposed property and structure to be drawn on tacaea, snowing tre following I North direction. 2. Locat,on of proposed structure on Iot. 3 Dimensions of front and siae set -backs. 4 Dimensions or proposed structure 5 Street names 6 Location oz adjacent e-asting buildings 7 Other intormatioa as may be requested. 1' at - Approved ___ Denied ___ by tho Planning Commission on ___________ (date) subleci to the following conditions __—________________________________ ------------------------------------------------------------------ Aporoved ___ Denied ___ by the Council on ________________ sublee to the 10 following conditions. ----------------------- -------------------------------------- Comments. (Use other side),