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HomeMy WebLinkAbout2012/01/17 - ADMIN - Agenda Packets - City Council - RegularAGENDA JANUARY 17, 2012 6:30 p.m. SPECIAL STUDY SESSION – Council Chambers Discussion Items 1. 6:30 p.m. Review Applicants for Community Recreation Facility Task Force Written Reports 2. Outdoor Recreational Lighting Study 7:15 p.m. ECONOMIC DEVELOPMENT AUTHORITY -- Council Chambers 1. Call to Order 2. Roll Call 3. Approval of Minutes 3a. Economic Development Authority Minutes December 19, 2011 3b. Economic Development Authority Minutes January 3, 2012 4. Approval of Agenda 5. Reports -- None 6. Old Business -- None 7. New Business 7a. Establishment of the Oak Hill II Tax Increment Financing District Recommended Action: • Motion to Adopt Resolution establishing the Oak Hill II Tax Increment Financing District within Redevelopment Project No. 1 and approving the related TIF Plan. • Motion to Adopt EDA Resolution authorizing an Interfund Loan for advance of certain costs in connection with the administration of the Oak Hill II TIF District. 8. Communications 9. Adjournment 7:30 p.m. CITY COUNCIL MEETING -- Council Chambers 1. Call to Order 1a. Pledge of Allegiance 1b. Roll Call 2. Presentations -- None 3. Approval of Minutes 3a. Special City Council/Closed Executive Session Minutes of January 3, 2012 3b. City Council Meeting Minutes of January 3, 2012 Meeting of January 17, 2012 City Council Agenda 4. Approval of Agenda and Items on Consent Calendar NOTE: The Consent Calendar lists those items of business which are considered to be routine and/or which need no discussion. Consent items are acted upon by one motion. If discussion is desired by either a Councilmember or a member of the audience, that item may be moved to an appropriate section of the regular agenda for discussion. The items for the Consent Calendar are listed on the last page of the Agenda. Recommended Action: Motion to approve the Agenda as presented and items listed on the Consent Calendar; and to waive reading of all resolutions and ordinances. (Alternatively: Motion to add or remove items from the agenda, or move items from Consent Calendar to regular agenda for discussion.) 5. Boards and Commissions -- None 6. Public Hearings 6a. Public Hearing and Resolution Approving the Establishment of the Oak Hill II Tax Increment Financing District and Related TIF Plan Recommended Action: Conduct the public hearing and adopt the resolution establishing the Oak Hill II Tax Increment Financing District within Redevelopment Project No. 1 and approving the related TIF Plan. 7. Requests, Petitions, and Communications from the Public -- None 8. Resolutions, Ordinances, Motions and Discussion Items 8a. Community Recreation Facility Task Force Members Recommended Action: Motion to Approve the participants on the Community Recreation Facility Task Force. 8b. Ellipse II on Excelsior (e2) Final Plat and Final PUD and Ellipse on Excelsior PUD Major Amendment Recommended Action: • Motion to adopt a resolution approving the Final Plat for ELLIPSE II ON EXCELSIOR, subject to conditions. • Motion to adopt a resolution approving the Final Planned Unit Development (PUD) for e2, subject to conditions. • Motion to adopt a resolution approving the major amendment to the Final Planned Unit Development (PUD) for Ellipse on Excelsior, subject to conditions. 9. Communication Auxiliary aids for individuals with disabilities are available upon request. To make arrangements, please call the Administration Department at 952/924-2525 (TDD 952/924-2518) at least 96 hours in advance of meeting. Meeting of January 17, 2012 City Council Agenda CONSENT CALENDAR 4a. Waive second reading, Adopt Ordinance vacating a landscaping easement, and approve the summary ordinance for publication 4b. Adopt a Resolution approving the Final Plat for six single-family lots known as Fretham Twelfth Addition 4c. Grant the City Manager authority to administratively approve work extras (change orders and minor extra work) for an additional $100,000 limit for City Projects 2008-3001 and 2008-3002 (Fire Stations Replacement), in accordance with the City Council’s existing policy 4d. Human Rights Commission Minutes October 18, 2011 4e. Approve for Filing Planning Commission Minutes November 2, 2011 4f. Approve for Filing Planning Commission Minutes November 16, 2011 St. Louis Park Economic Development Authority and regular City Council meetings are carried live on Civic TV cable channel 17 and replays are frequent; check www.parktv.org for the schedule. The meetings are also streamed live on the internet at www.parktv.org, and saved for Video on Demand replays. The agenda is posted on Fridays on the official city bulletin board in the lobby of City Hall and on the text display on Civic TV cable channel 17. The agenda and full packet are available by noon on Friday on the city’s website. Meeting Date: January 17, 2012 Agenda Item #: 1 Regular Meeting Public Hearing Action Item Consent Item Resolution Ordinance Presentation Other: EDA Meeting Action Item Resolution Other: Study Session Discussion Item Written Report Other: TITLE: Review Applicants for Community Recreation Facility Task Force. RECOMMENDED ACTION: Staff requests direction from the City Council on those people it desires to appoint to sit on the Community Recreation Facility Task Force. POLICY CONSIDERATION: Who does the City Council wish to appoint to sit on the task force? BACKGROUND: At the November 28, 2011 Study Session the City Council provided feedback on the recently conducted tours of three community centers and the makeup and formation of a task force to assist the City Council with this initiative. At the December 12, 2011 Study Session Council authorized staff to advertise and accept applications from persons interested in sitting on the task force. Applications were received from 17 persons and these applications are attached. SELECTION OF A TASK FORCE: Based on input from the Council, the task force will include one or two members from each of the following: the Parks and Recreation Advisory Commission (PRAC), Planning Commission, Community Education Advisory Committee (CEAC), one or two youth associations, Lenox Community Center, the business community and/or Convention & Visitors Bureau (CVB), the school district, a youth member, and a resident or representative from each ward. Staff will provide a list of potential task force members at the meeting on the 17th for Council to consider. The following applicants have volunteered to represent the commissions and organizations: Parks & Recreation Advisory Commission: Tom Worthington and Jim Beneke Planning Commission: Claudia Johnston-Madison Youth: Sophia Flummerfelt Community Education Advisory Committee: Gregg Lindberg Lenox/Older adults: Shirley Zimmerman Business/Financial: Chuck Souvignier Youth Associations: Laurie Hynes (Girls Fastpitch softball) School District: Andy Ewald (Athletic Director) and Lisa Greene (Community Ed Director) CVB: possibly John Basill (Mr. Basill is requesting direction from his board of directors) MISSION OF THE TASK FORCE: The mission of the Community Recreation Facility Task Force is to consider community input that was received from previous surveys, gather additional information and input, and make recommendations to the City Council regarding the addition of future recreation facilities or programs. As a part of this process, the Task Force will also look at possible partnerships and locations. City Council Meeting of January 17, 2012 (Item No. 1) Page 2 Subject: Review Applicants for Community Recreation Facility Task Force PROCESS: The Task Force will meet 7 to 9 times, typically monthly although on some occasions they meet more frequently. In addition to Task Force meetings, they will be asked to participate and assist in leading focus groups and public meetings to help further define what the community would like to see in future facilities or programs. FINANCIAL OR BUDGET CONSIDERATION: None as related to this action. VISION CONSIDERATION: This topic is directly related to the results of Vision St. Louis Park and one of the adopted Strategic Directions that “St. Louis Park is committed to being a connected and engaged community” and the related Focus Area of “Exploring creation of a multi-use civic center, including indoor/winter use”. Attachments: Applications Prepared by: Cindy S. Walsh, Director of Parks and Recreation Approved by: Tom Harmening, City Manager Special Study Session Meeting of January 17, 2012 (Item No. 1) Subject: Review Applicants for Community Recreation Facility Task Force Page 3 Special Study Session Meeting of January 17, 2012 (Item No. 1) Subject: Review Applicants for Community Recreation Facility Task Force Page 4 Special Study Session Meeting of January 17, 2012 (Item No. 1) Subject: Review Applicants for Community Recreation Facility Task Force Page 5 Special Study Session Meeting of January 17, 2012 (Item No. 1) Subject: Review Applicants for Community Recreation Facility Task Force Page 6 Special Study Session Meeting of January 17, 2012 (Item No. 1) Subject: Review Applicants for Community Recreation Facility Task Force Page 7 Special Study Session Meeting of January 17, 2012 (Item No. 1) Subject: Review Applicants for Community Recreation Facility Task Force Page 8 Special Study Session Meeting of January 17, 2012 (Item No. 1) Subject: Review Applicants for Community Recreation Facility Task Force Page 9 Special Study Session Meeting of January 17, 2012 (Item No. 1) Subject: Review Applicants for Community Recreation Facility Task Force Page 10 Special Study Session Meeting of January 17, 2012 (Item No. 1) Subject: Review Applicants for Community Recreation Facility Task Force Page 11 Special Study Session Meeting of January 17, 2012 (Item No. 1) Subject: Review Applicants for Community Recreation Facility Task Force Page 12 Special Study Session Meeting of January 17, 2012 (Item No. 1) Subject: Review Applicants for Community Recreation Facility Task Force Page 13 Special Study Session Meeting of January 17, 2012 (Item No. 1) Subject: Review Applicants for Community Recreation Facility Task Force Page 14 Special Study Session Meeting of January 17, 2012 (Item No. 1) Subject: Review Applicants for Community Recreation Facility Task Force Page 15 Special Study Session Meeting of January 17, 2012 (Item No. 1) Subject: Review Applicants for Community Recreation Facility Task Force Page 16 Special Study Session Meeting of January 17, 2012 (Item No. 1) Subject: Review Applicants for Community Recreation Facility Task Force Page 17 Special Study Session Meeting of January 17, 2012 (Item No. 1) Subject: Review Applicants for Community Recreation Facility Task Force Page 18 Special Study Session Meeting of January 17, 2012 (Item No. 1) Subject: Review Applicants for Community Recreation Facility Task Force Page 19 Special Study Session Meeting of January 17, 2012 (Item No. 1) Subject: Review Applicants for Community Recreation Facility Task Force Page 20 Special Study Session Meeting of January 17, 2012 (Item No. 1) Subject: Review Applicants for Community Recreation Facility Task Force Page 21 Special Study Session Meeting of January 17, 2012 (Item No. 1) Subject: Review Applicants for Community Recreation Facility Task Force Page 22 Special Study Session Meeting of January 17, 2012 (Item No. 1) Subject: Review Applicants for Community Recreation Facility Task Force Page 23 Special Study Session Meeting of January 17, 2012 (Item No. 1) Subject: Review Applicants for Community Recreation Facility Task Force Page 24 Special Study Session Meeting of January 17, 2012 (Item No. 1) Subject: Review Applicants for Community Recreation Facility Task Force Page 25 Meeting Date: January 17, 2012 Agenda Item #: 2 Regular Meeting Public Hearing Action Item Consent Item Resolution Ordinance Presentation Other: EDA Meeting Action Item Resolution Other: Study Session Discussion Item Written Report Other: TITLE: Outdoor Lighting Ordinance Study. RECOMMENDED ACTION: No action at this time. This report is being provided for informational purposes. POLICY CONSIDERATION: Does Council have questions or concerns about staff’s intent to undertake a process of updating our Zoning Ordinance regarding the city’s lighting regulations? BACKGROUND: The purpose of this report is to provide the Council with information regarding a study being initiated to review exterior lighting and its regulation under the Zoning Ordinance. The need to update our light rules was made apparent by concerns raised by neighbors about the lighting at the new BSM athletic fields. LIGHTING REGULATIONS: Exterior lighting is regulated under Section 36-363 of the Zoning Ordinance. The purpose of the section is to: “…minimize the adverse effect of light and glare on operators of motor vehicles, pedestrians, and on residential and other land uses in the vicinity of a light source in order to promote traffic safety and to prevent the nuisances associated with the intrusion of spillover light and glare.” The ordinance has two categories: “General Provisions,” and “Outdoor Recreational Lighting,” recognizing that there are differences between lighting types. For example, a soccer field used intermittently during fall evenings requires a different lighted environment in comparison to an automobile fuel station, which might be lit 24 hours a day throughout the year. Based on concerns raised by citizens living in proximity to the new Benilde St-Margaret’s athletic field, a field survey was completed of athletic fields throughout the City including those operated by the City and the St. Louis Park School District. The field survey looked primarily at two aspects of lighting regulations: 1. The requirement to limit foot-candle levels to 0.5 foot-candles at the property line. 2. A requirement that “lighting equipment shall not be placed or permitted to remain on a site if the light source or its reflected image can be viewed directly from a location off the site…” Special Study Session Meeting of January 17, 2012 (Item No. 2) Page 2 Subject: Outdoor Lighting Ordinance Study The survey found that the foot-candle requirement often cannot be met at sporting facilities with outdoor recreational lighting within the City, depending on the layout of the fields, lighting and the location of the property line. The necessary light level for outdoor recreational activities is determined by a variety of factors, including the type of sport being played, equipment used, and safety of the athletes. Lighting must cover fields appropriately and evenly, which makes fully shielding and directing the light more difficult than for other uses, such as commercial businesses or parking lots. The level of light used (generally between 30-40 FC on the playing field) means that in situations where athletic fields are located adjacent to residential properties, it is challenging to bring light levels down to the 0.5 FC level over what is sometimes a relatively short distance. The second requirement, related to the visibility of “the light source or its reflected image,” was not met at any of the outdoor recreational lighting installations reviewed during the field survey, and may be difficult to meet in other lighting situations. It will need to be addressed in this study as well. NEXT STEPS: The proposed review of the outdoor lighting regulations will take the following approach: 1. Identify and summarize the critical issues. For example, a review of current outdoor lighting in the community, the current ordinance, and new lighting technologies. 2. Research and summarize best practices for outdoor lighting standards and other cities’ ordinances. 3. Determine how to address the lighting needs while not causing an undue burden for neighboring property owners. 4. Propose revisions to regulations. 5. Present draft ordinance revisions to PC and CC at study sessions. 6. Finalize ordinance for public comment and possible adoption. The first step is already underway. A consultant has been engaged and is currently reviewing the work completed to date. It is expected that this item will be back before the City Council within a two to three month timeframe for an update. The process to compose the ordinance revisions is expected to take three to four months. FINANCIAL OR BUDGET CONSIDERATION: The consulting contract is for $5,200 and will be paid for from the Development Fund. VISION CONSIDERATION: N/A. Attachments: None Prepared by: Adam Fulton, Planner Meg McMonigal, Planning and Zoning Supervisor Reviewed by: Kevin Locke, Community Development Director Approved by: Tom Harmening, City Manager Meeting Date: January 17, 2012 Agenda Item #: 3a UNOFFICIAL MINUTES ECONOMIC DEVELOPMENT AUTHORITY ST. LOUIS PARK, MINNESOTA DECEMBER 19, 2011 1. Call to Order President Finkelstein called the meeting to order at 7:15 p.m. Commissioners present: President Phil Finkelstein, Jeff Jacobs, Anne Mavity, Julia Ross, Susan Sanger, and Sue Santa. Commissioners absent: Paul Omodt. Staff present: Executive Director (Mr. Harmening), Controller (Mr. Swanson), Finance Supervisor (Mr. Heintz), Director of Community Development (Mr. Locke), Economic Development Coordinator (Mr. Hunt), and Recording Secretary (Ms. Hughes). 2. Roll Call 3. Approval of Minutes 3a. Economic Development Authority Minutes of December 5, 2011 The minutes were approved as presented. 4. Approval of Agenda The agenda was approved as presented. 5. Reports 5a. Economic Development Authority Vendor Claims It was moved by Commissioner Jacobs, seconded by Commissioner Santa, to accept for filing Vendor Claims for the period November 25, 2011, through December 9, 2011. The motion passed 6-0 (Commissioner Omodt absent). 6. Old Business - None 7. New Business 7a. 2012 Final HRA Levy Certification. EDA Resolution No. 11-19 Mr. Heintz presented the staff report and explained that on September 6th, the EDA adopted a Preliminary HRA Levy of $983,574, representing the maximum amount EDA Meeting of January 17, 2012 (Item No. 3a) Page 2 Subject: EDA Meeting Minutes of December 19, 2011 allowable under State statute based on a percentage of the City’s previous year’s taxable market value. He stated that this amount is an approximate $45,000 decrease from 2011, or approximately 4.41%. He noted that the 2012 HRA budget lists no expenditures; however, the City has budgeted approximately $3.4 million in capital expenditures for 2013-2015, including such projects as Highway 7/Louisiana Avenue, Wooddale Avenue reconstruction, and/or Highway 100 reconstruction. It was moved by Commissioner Ross, seconded by Commissioner Sanger, to approve EDA Resolution No. 11-19 Authorizing the HRA Levy for 2012 and Approval of the EDA Budget for Fiscal Year 2012. The motion passed 6-0 (Commissioner Omodt absent). 7b. Approve Fund Closings. EDA Resolution No. 11-20 Mr. Heintz presented the staff report and proposed fund closings. He stated that three EDA funds have been identified to be closed at the end of 2011, including the 2009A GOTI Refunding Bonds, 2006-2007 Hoigaard Village TIF notes, and Trunk Highway 7 TIF District. It was moved by Commissioner Mavity, seconded by Commissioner Sanger, to approve EDA Resolution No. 11-20 Authorizing Fund Closings. The motion passed 6-0 (Commissioner Omodt absent). 7c. Sixth Amendment to the Redevelopment Contract with Union Land II LLC, et al. EDA Resolution No. 11-21 Mr. Hunt presented the staff report and the proposed Sixth Amendment to the Redevelopment Contract with Union Land II LLC. He stated that the Sixth Amendment allows the final two components of Hoigaard Village to be constructed, including the Adagio, a 100-unit market rate apartment building and Medley Row, 22-unit market rate townhouses. He indicated the proposed buildings will initially be rental but will be constructed in such a way that would allow the units to be sold when market conditions improve. He stated that construction would commence by July 1, 2012, and be completed by December 31, 2013. He advised that the Sixth Amendment also allows Union Land II LLC to continue to lease the Harmony Vista units until such time as the Redeveloper concludes that the market has recovered and Redeveloper is able to sell the units. He indicated the Sixth Amendment also changes the form of the TIF Notes provided for Stages 2 and 3 and anticipates issuing two pay-as-you -go TIF Notes totaling $1,020,000. He added that this is the EDA’s preferred financing method and is less complicated and less expensive means of providing the TIF assistance to the Redeveloper. Commissioner Sanger stated she was in agreement with extending the construction deadlines and would reluctantly agree to allowing the developer to continue to lease the Harmony Vista units until the developer could sell them. She expressed concern EDA Meeting of January 17, 2012 (Item No. 3a) Page 3 Subject: EDA Meeting Minutes of December 19, 2011 regarding the developer’s insistence on changing the unit mix within the Adagio to include smaller units that will not accommodate families and did not feel this was in the best interest of the community. She stated the developer has changed the unit mix to include additional apartments that are smaller, resulting in more studio sized apartments and fewer one bedroom/one bedroom + den units. She indicated the developer is claiming that this is what the current market is demanding, but felt this was short term thinking and the City needs to think longer term about the housing mix needed in the City. She stated that since the City is providing TIF financing, this is not a market driven project and the City should have a say regarding the unit sizes. She added that the question of housing unit sizes needs to be addressed on an overall basis in the community, particularly given the City’s demographics. Commissioner Mavity stated that she was surprised to see the shift in unit types, particularly after the discussions that took place with the developer and the concerns that were raised at the Nov. 14th Study Session. She agreed that the TIF financing should go forward and she wanted to see the project move forward, but was troubled that the developer would come back with a proposal that moves in the opposite direction of what the EDA was asking for. She asked if there were time sensitive issues related to the EDA’s action on the Sixth Amendment. Mr. Hunt explained that the developer is looking to secure financing with his partners, that the EDA’s approval was needed for that financing approval to occur and noted there are two separate resolutions before the EDA. Commissioner Jacobs questioned the impact on the developer if the EDA approved the TIF financing but did not approve the Sixth Amendment as it relates to the proposed housing mix. Mr. Hunt stated that the developer currently has approval with his financial backers based on the proposed unit mix. Mr. Frank Dunbar, 5000 Glenwood Avenue, Golden Valley, appeared before the EDA and explained that he inadvertently presented outdated housing mix information at the November 14th Study Session and the current proposal is close to what was presented on November 14th. He stated that the current market is driving the demand for smaller-sized units and this mix was approved by his investor; if a change in the housing mix is required, he would have to get approval from his investor. Commissioner Sanger requested the developer comment on the timing of the project if the EDA said it was not comfortable with the proposed housing mix. Mr. Dunbar stated he would immediately contact his lender and he would also want to revisit the market research. He indicated that his investor sees the rent rolls generated every week to see which units are renting and they are finding that two bedroom units have to be discounted. He added that they tried to get as close as they could to the earlier version while still maintaining the amenity package. EDA Meeting of January 17, 2012 (Item No. 3a) Page 4 Subject: EDA Meeting Minutes of December 19, 2011 Commissioner Mavity indicated that the City is an investor in this project and has a great interest in seeing the project move forward and succeed. She reiterated her support for providing the TIF financing but wanted to see the developer take another look at the Adagio’s unit mix. It was moved by Commissioner Santa, seconded by Commissioner Jacobs, to approve EDA Resolution Approving a Sixth Amendment to the Contract for Private Redevelopment by and between the St. Louis Park Economic Development Authority and Union Land II LLC, Medley Row, LLC, Webster Group, LLC, and Camerata, LLC. The motion failed 3-3 (Commissioners Mavity, Ross, and Sanger opposed; Commissioner Omodt absent). It was moved by Commissioner Mavity, seconded by Commissioner Ross, to approve EDA Resolution No. 11-21 Awarding the Sale of, and Providing the Form, Terms, Covenants and Directions for the Issuance of its Tax Increment Revenue Notes to Webster Group, LLC, and Medley Row, LLC. Commissioner Sanger asked if the EDA can approve the TIF financing without a current amended contract for private redevelopment. Mr. Locke advised that the TIF financing can be approved conditioned on the project moving forward. President Finkelstein requested a friendly amendment to approve the TIF financing conditioned upon approval of the Sixth Amendment to the Contract for Private Redevelopment. Commissioner Mavity agreed with the friendly amendment. Commissioner Ross seconded the friendly amendment. The motion passed 5-1 (Commissioner Sanger opposed; Commissioner Omodt absent). 8. Communications - None 9. Adjournment The meeting adjourned at 7:40 p.m. ______________________________________ ______________________________________ Secretary President Meeting Date: January 17, 2012 Agenda Item #: 3b UNOFFICIAL MINUTES ECONOMIC DEVELOPMENT AUTHORITY ST. LOUIS PARK, MINNESOTA JANUARY 3, 2012 1. Call to Order Treasurer Santa called the meeting to order at 7:46 p.m. Commissioners present: Treasurer Sue Santa, Steve Hallfin, Jeff Jacobs, Anne Mavity, Susan Sanger, and Jake Spano. Commissioners absent: Julia Ross. Staff present: Executive Director (Mr. Harmening) and Recording Secretary (Ms. Hughes). 2. Roll Call 3. Approval of Minutes - None 4. Approval of Agenda The agenda was approved as presented. 5. Reports 5a. Economic Development Authority Vendor Claims It was moved by Commissioner Jacobs, seconded by Commissioner Sanger, to accept for filing Vendor Claims for the period December 10, 2011 through December 30, 2011. The motion passed 6-0 (Commissioner Ross absent). 6. Old Business – None 7. New Business 7a. 2012 Economic Development Authority Officers It was moved by Commissioner Sanger, seconded by Commissioner Jacobs, to elect Sue Santa as President, Anne Mavity as Vice President, and Julia Ross as Treasurer to the Economic Development Authority for the 2012 term. The motion passed 6-0 (Commissioner Ross absent). 8. Communications – None 9. Adjournment The meeting adjourned at 7:50 p.m. ______________________________________ ______________________________________ Secretary Treasurer Meeting Date: January 17, 2012 Agenda Item #: 7a Regular Meeting Public Hearing Action Item Consent Item Resolution Ordinance Presentation Other: EDA Meeting Action Item Resolution Other: Public Hearing Study Session Discussion Item Written Report Other: TITLE: Establishment of the Oak Hill II Tax Increment Financing District. RECOMMENDED ACTION: - Motion to Adopt Resolution establishing the Oak Hill II Tax Increment Financing District within Redevelopment Project No. 1 and approving the related TIF Plan. - Motion to Adopt EDA Resolution authorizing an Interfund Loan for advance of certain costs in connection with the administration of the Oak Hill II TIF District. POLICY CONSIDERATION: Does the EDA support the establishment of the Oak Hill II Tax Increment Financing District to facilitate the construction of an office building of approximately 21,450 SF at 3340 Republic Avenue? Does the EDA support authorizing an Interfund Loan for advance of certain costs in connection with the administration of the Oak Hill II TIF District? Anderson-KM Builders’ application for tax increment financing assistance was reviewed at the October 24, 2011 Study Session where it was favorably received. At its December 5th meeting, the City Council set a public hearing date of January 17th for the creation of the proposed TIF district. A report on the potential business terms that would serve as the basis for a development contract with Anderson-KM Builders was submitted at the January 9th Study Session. It is now time to take the final step in the TIF process which is to formally authorize the creation of the TIF district. S uch authorization enables the EDA to use tax increment generated from the proposed Oak Hill II project to Anderson-KM Builders as reimbursement for qualified costs incurred in the construction of the proposed office building. Establishment of TIF districts also requires a public hearing and the approval of the City Council. Thus, during the City Council meeting this evening the City Council will hold a public hearing on this topic, after which it will likewise be asked to approve the establishment of the Oak Hill II TIF District. BACKGROUND: Anderson Builders was a real estate development, design management, and construction company based in St. Louis Park since 1999. In addition to the Oak Hill office building located at 3501 Louisiana Ave. (near the intersection of Louisiana Ave and Walker St.) the firm built a variety of office, industrial and retail facilities as well as churches and health care clinics throughout the Twin Cities area. The subject property is located in the Lenox Neighborhood at the northwest corner of Walker Street and Republic Avenue; immediately east of Anderson Builders’ Oak Hill office building. The subject property posed several development challenges as the site is small (¾-acre), EDA Meeting of January 17, 2012 (Item No. 7a) Page 2 Subject: Establishment of the Oak Hill II Tax Increment Financing District triangular in shape, required demolition of an old 6,400 SF commercial building, and has a 13 foot elevation change across the site. In 2007 Anderson Builders purchased the property and planned to construct a 2-story, 15,000 SF office building in its place. The next year it removed the former office building on the site. The EDA previously agreed to provide financial assistance to the project but due to economic conditions and Anderson’s inability to obtain project financing, the proposed office project was unable to proceed and the agreement with Anderson was terminated. This past July it was announced that Anderson Builders and Minneapolis-based KM Building Company, led by Greg Anderson and Steven Faber, respectively, had joined with real estate and construction executives Kent M. Carlson and Arne Cook to form a new firm called: Anderson- KM Builders. Carlson was formerly a senior executive with Ryan Companies. Cook is a real estate development consultant who held senior management positions with CSM Corporation, First Industrial Realty Trust and The Opus Group. Carlson is the new company's chief executive. The four partners established Anderson-KM Builders to provide comprehensive building and development services to local and regional clients. The new company employs 30 people. Proposed Project Anderson-KM Builders is currently operating from Anderson Builder's location on Park Glen Rd in St. Louis Park as well as KM Building's offices in Minneapolis. The firm plans to build a new facility and consolidate its operations within a single location. The proposed office site is the property owned by Anderson Builders at 3340 Republic Avenue. The proposed office building would be approximately 21,450 SF; approximately 6,430 SF larger than the office building Anderson previously planned to construct on the site. Like the former building, the new Oak Hill II would be a multi-tenant, professional office building. Because the proposed new building would be constructed into the side of the hill facing Republic Avenue it will appear as one story off Republic and two stories off Walker Street (see attached Building Renderings). Oak Hill II will be an attractive brick structure designed to complement the original Oak Hill office building next door. Under this latest proposal, Anderson-KM Builders will occupy approximately half the new building (6,001 SF of office and 4,715 SF of storage). The remaining 10,716 SF will be built out as office space and leased to one or more tenants. Oak Hill II will be marketed to general office users and specialty medical users given its proximity to Methodist Hospital. Project Schedule Anderson-KM Builders plans to commence construction on the office building in spring 2012 and have it completed by the end of the year. Current/Proposed Market Value The subject property’s current assessed value is $700,000. Once the new building is complete and fully occupied, the property would be assessed for $3.5 million by 2013. Job Creation As noted earlier, Anderson-KM Builders plans to consolidate its operations within the proposed Oak Hill II building. Anderson Builders with its 15 employees would relocate from its Park Glen location and KM Builders with its 15 employees would relocate from Minneapolis. In addition, 25 jobs are anticipated to result from tenants filling the 2nd floor office space. Thus, a EDA Meeting of January 17, 2012 (Item No. 7a) Page 3 Subject: Establishment of the Oak Hill II Tax Increment Financing District total of 15 jobs are expected to be retained and up to 40 jobs are expected to be created in St. Louis Park if the proposed project proceeds. Request for Tax Increment Assistance In order to pursue the above project Anderson-KM Builders applied for up to $300,000 in tax increment assistance from the EDA to offset a small portion of the construction costs associated with the proposed building. As a percentage of total project cost the requested amount of financial assistance is approximately 7%. The project is not economically feasible without some public financial assistance. Anderson’s request for TIF assistance is considered reasonable given the complexity, quality, projected total value, and other economic benefits derived from the proposed redevelopment. T he EDA’s participation would leverage approximately $4.3 million in new investment. TIF District Approvals The EDA/City Council reviewed Anderson-KM Builders’ TIF application at the October 24, 2011 Study Session. The proposed project and application were favorably received and staff was directed to work further with the company to negotiate business terms that would enable the proposed project to move forward. At its December 5th meeting, the City Council set a public hearing date of January 17, 2012 f or consideration of the proposed Oak Park II Economic Development TIF District. The Planning Commission reviewed the Oak Hill II Tax Increment Financing Plan on January 4th, as required by state law, and determined it was in conformance with the City’s Comprehensive Plan. Synopsis of the Proposed TIF District In order to provide the Redeveloper with the proposed tax increment assistance a new TIF district must be formed. The proposed Oak Hill II Tax Increment Financing District (an economic development district) is detailed in the attached TIF Plan. The TIF Plan was prepared by the EDA’s TIF consultant, Ehlers & Associates. In a general sense, TIF plans may be viewed as enabling legislation. They establish the proposed TIF district’s classification, geographic boundaries, maximum duration, maximum budget authority for tax increment revenues and expenditures, fiscal disparities election as well as estimated impact on various taxing jurisdictions along with findings which statutorily qualify the district. The specific mutual obligations between the EDA and the Redeveloper as well as the precise terms of the financial assistance are contained in the separate Contract for Private Redevelopment between the parties (to be considered February 6th). Both the TIF Plan and the Redevelopment Contract need to be approved in order for economic development or redevelopment projects involving tax increment to proceed. The proposed Oak Hill II TIF District consists of a single property: 3340 Republic Avenue along with adjacent rights-of-way. The proposed TIF District is within the city’s Redevelopment Project Area as is statutorily required. Inclusion of the proposed project within a designated Redevelopment Project Area gives the EDA/Council the authority to assist with all the redevelopment actions necessary to implement the Oak Hill II project. Feasibility and Duration of the Oak Hill II TIF District The financial assistance to be provided to Anderson-KM Builders to facilitate the proposed office project meets the requirements necessary to create an Economic Development TIF District EDA Meeting of January 17, 2012 (Item No. 7a) Page 4 Subject: Establishment of the Oak Hill II Tax Increment Financing District as allowed under the 2010 State of Minnesota Jobs Act. It is estimated that upon completion the proposed project will generate approximately $300,000 in tax increment (present value) over the 9-year term of the district. TIF District Revenue Uses of Funds It should be noted that the project costs reflected within the Uses of Funds (Section 2-10) of the proposed TIF Plan is a not-to-exceed budget and not the actual expected project budget. Fiscal Disparities Election In keeping with the City’s TIF Policy, the Oak Hill II TIF District will contribute to fiscal disparities as opposed to the tax base of the City making the contribution. FINANCIAL OR BUDGET CONSIDERATION: Authorizing the establishment of the Oak Hill II TIF District does not, in itself, commit the EDA/City to any specific level of financial assistance for the proposed project. Procedurally it simply creates the funding vehicle to reimburse Anderson-KM Builders for a portion of its qualified project costs. The terms and amount of TIF assistance are specified within the Development Contract with Oak Hill II 7100 L LC (Anderson-KM Builders) which is to be considered at the February 6th EDA meeting. VISION CONSIDERATION: The proposed project is consistent with elements of Vision St. Louis Park as it facilitates and promotes environmental stewardship and green development. Attachments: Resolution Adopting TIF Plan Resolution Authorizing Interfund Loan Oak Hill II Tax Increment Financing Plan Summary Tax Increment Financing Plan for Oak Hill II TIF District Prepared by: Greg Hunt, Economic Development Coordinator Reviewed by: Kevin Locke, Community Development Director Approved by: Tom Harmening, EDA Executive Director and City Manager EDA Meeting of January 17, 2012 (Item No. 7a) Page 5 Subject: Establishment of the Oak Hill II Tax Increment Financing District ST. LOUIS PARK ECONOMIC DEVELOPMENT AUTHORITY CITY OF ST. LOUIS PARK HENNEPIN COUNTY STATE OF MINNESOTA RESOLUTION NO. 12 - ____ RESOLUTION ADOPTING A MODIFICATION TO THE REDEVELOPMENT PLAN FOR REDEVELOPMENT PROJECT NO. 1, ESTABLISHING THE OAK HILL II TAX INCREMENT FINANCING DISTRICT THEREIN AND ADOPTING A TAX INCREMENT FINANCING PLAN THEREFOR WHEREAS, it has been proposed by the Board of Commissioners (the "Board") of the St. Louis Park Economic Development Authority (the "EDA") and the City of St. Louis Park (the "City") that the EDA adopt a Modification to the Redevelopment Plan (the "Redevelopment Plan Modification") for Redevelopment Project No. 1 (the "Project Area") and establish the Oak Hill II Tax Increment Financing District (the "District") and adopt a Tax Increment Financing Plan (the "TIF Plan") therefor (the Redevelopment Plan Modification and the TIF Plan are referred to collectively herein as the "Plans"), all pursuant to and in conformity with applicable law, including Minnesota Statutes, Sections 469.090 t o 469.1082, a nd Sections 469.174 t o 469.1799, inclusive, as amended (the "Act"), all as reflected in the Plans and presented for the Board's consideration; and WHEREAS, the EDA has investigated the facts relating to the Plans and has caused the Plans to be prepared; and WHEREAS, the EDA has performed all actions required by law to be performed prior to the adoption of the Plans. The EDA has also requested the City Planning Commission to provide for review of and written comment on Plans and that the Council schedule a public hearing on the Plans upon published notice as required by law. NOW, THEREFORE, BE IT RESOLVED by the Board as follows: 1. The EDA hereby finds that the District is in the public interest and is an "economic development district" under Minnesota Statutes, Section 469.174, Subd. 12, and finds that the Plans conform in all respects to the requirements of the Act and will help fulfill a need to develop an area of the State of Minnesota which is already built up and that the adoption of the proposed development will create jobs in the State of Minnesota. The proposed development would not commence prior to July 1, 2012, w ithout the tax increment financing to be provided. 2. The EDA further finds that the Plans will afford maximum opportunity, consistent with the sound needs for the City as a whole, for the development or redevelopment of the Project Area by private enterprise in that the intent is to provide only that public assistance necessary to make the private developments financially feasible. EDA Meeting of January 17, 2012 (Item No. 7a) Page 6 Subject: Establishment of the Oak Hill II Tax Increment Financing District 3. The boundaries of the Project Area are not being expanded. 4. The reasons and facts supporting the findings in this resolution are described in the Plans. 5. The EDA elects to calculate fiscal disparities for the District in accordance with Minnesota Statutes, Section 469.177, Subd. 3, clause b, which means the fiscal disparities contribution would be taken from inside the District. 6. Conditioned upon the approval thereof by the City Council following its public hearing thereon, the Plans, as presented to the EDA on this date, are hereby approved, established and adopted and shall be placed on file in the office of the Executive Director of the EDA. 7. Upon approval of the Plans by the City Council, the staff, the EDA's advisors and legal counsel are authorized and directed to proceed with the implementation of the Plans and for this purpose to negotiate, draft, prepare and present to this Board for its consideration all further plans, resolutions, documents and contracts necessary for this purpose. Approval of the Plans does not constitute approval of any project or a Development Agreement with any developer. 8. Upon approval of the Plans by the City Council, the Executive Director of the EDA is authorized and directed to forward a copy of the Plans to the Minnesota Department of Revenue and the Office of the State Auditor pursuant to Minnesota Statutes 469.175, Subd. 4a. 9. The Executive Director of the EDA is authorized and directed to forward a copy of the Plans to the Hennepin County Auditor and request that the Auditor certify the original tax capacity of the District as described in the Plans, all in accordance with Minnesota Statutes 469.177. Reviewed for Administration: Adopted by the Economic Development Authority January 17, 2012 Executive Director President Attest Secretary EDA Meeting of January 17, 2012 (Item No. 7a) Page 7 Subject: Establishment of the Oak Hill II Tax Increment Financing District ST. LOUIS PARK ECONOMIC DEVELOPMENT AUTHORITY CITY OF ST. LOUIS PARK HENNEPIN COUNTY STATE OF MINNESOTA RESOLUTION NO. 12 - ____ RESOLUTION AUTHORIZING AN INTERFUND LOAN FOR ADVANCE OF CERTAIN COSTS IN CONNECTION WITH THE OAK HILL II TAX INCREMENT FINANCING DISTRICT BE IT RESOLVED by the Board of Commissioners (the "Board") of the St. Louis Park Economic Authority (the "EDA") of the City of St. Louis Park, Minnesota, as follows: WHEREAS, the City Council for the City of St. Louis Park, Minnesota (the "City"), intends to establish the Oak Hill II Tax Increment Financing District (the "TIF District") within Redevelopment Project No. 1 (the "Project"), and will adopt a Tax Increment Financing Plan (the "TIF Plan") for the purpose of financing certain improvements within the Project. WHEREAS, the EDA has determined to use tax increments from the TIF District to pay for certain costs identified in the TIF Plan, which may include land/building acquisition, site improvements/preparation and construction costs, public utilities, streets and sidewalks, interest and administrative costs (collectively, the "Qualified Costs"), which costs may be financed on a temporary basis from EDA funds available for such purposes. WHEREAS, under Minnesota Statutes, Section 469.178, Subd. 7, the EDA is authorized to advance or loan money from the EDA's general fund or any other fund from which such advances may be legally authorized, in order to finance the Qualified Costs. WHEREAS, the EDA intends to reimburse itself for the Qualified Costs from tax increments derived from the TIF District in accordance with the terms of this resolution (which terms are referred to collectively as the "Interfund Loan"). NOW THEREFORE BE IT RESOLVED by the Board as follows: 1. The EDA hereby authorizes the advance of up to $500,000 from any legally authorized EDA fund or so much thereof as may be paid as Qualified Costs. T he EDA shall reimburse itself for such advances together with interest at the rate stated below. Interest accrues on the principal amount from the date of each advance. The maximum rate of interest permitted to be charged is limited to the greater of the rates specified under Minnesota Statutes, Section 270C.40 or Section 549.09 as of the date the loan or advance is authorized, unless the written agreement states that the maximum interest rate will fluctuate as the interest rates specified under Minnesota Statutes, Section 270C.40 or Section 549.09 are from time to time adjusted. The interest rate shall be 4% and will not fluctuate. 2. Principal and interest ("Payments") on the Interfund Loan shall be paid semi-annually on each August 1 a nd February 1 ( each a "Payment Date"), commencing on t he first Payment Date on which the EDA has Available Tax Increment (defined below), or on EDA Meeting of January 17, 2012 (Item No. 7a) Page 8 Subject: Establishment of the Oak Hill II Tax Increment Financing District any other dates determined by the Executive Director of the EDA, through the date of last receipt of tax increment from the TIF District. 3. Payments on this Interfund Loan are payable solely from "Available Tax Increment," which shall mean, on each Payment Date, tax increment available after other obligations have been paid, or as determined by the Executive Director of the EDA, generated in the preceding six (6) months with respect to the property within the TIF District and remitted to the City by Hennepin County, all in accordance with Minnesota Statutes, Sections 469.174 to 469.1799, all inclusive, as amended. Payments on this Interfund Loan may be subordinated to any outstanding or future bonds, notes or contracts secured in whole or in part with Available Tax Increment, and are on parity with any other outstanding or future interfund loans secured in whole or in part with Available Tax Increment. 4. The principal sum and all accrued interest payable under this Interfund Loan are pre- payable in whole or in part at any time by the EDA without premium or penalty. No partial prepayment shall affect the amount or timing of any other regular payment otherwise required to be made under this Interfund Loan. 5. This Interfund Loan is evidence of an internal borrowing by the EDA in accordance with Minnesota Statutes, Section 469.178, Subd. 7, and is a limited obligation payable solely from Available Tax Increment pledged to the payment hereof under this resolution. This Interfund Loan and the interest hereon shall not be deemed to constitute a general obligation of the State of Minnesota or any political subdivision thereof, including, without limitation, the EDA. N either the State of Minnesota, nor any political subdivision thereof shall be obligated to pay the principal of or interest on this Interfund Loan or other costs incident hereto except out of Available Tax Increment, and neither the full faith and credit nor the taxing power of the State of Minnesota or any political subdivision thereof is pledged to the payment of the principal of or interest on t his Interfund Loan or other costs incident hereto. The EDA shall have no obligation to pay any principal amount of the Interfund Loan or accrued interest thereon, which may remain unpaid after the final Payment Date. 6. The EDA may amend the terms of this Interfund Loan at any time by resolution of the Board, including a determination to forgive the outstanding principal amount and accrued interest to the extent permissible under law. Reviewed for Administration: Adopted by the Economic Development Authority January 17, 2012 Executive Director President Attest Secretary Tax Increment Financing District Overview City of St. Louis Park Oak Hill II Tax Increment Financing District The following summary contains an overview of the basic elements of the Tax Increment Financing Plan for the Oak Hill II Tax Increment Financing District. More detailed information on each of these topics can be found in the complete TIF Plan. Proposed action: Establishment of the Oak Hill II Tax Increment Financing District ("District") and the adoption of a Tax Increment Financing Plan. ("TIF Plan") Modification of the Redevelopment Plan for Redevelopment Project No. 1, which includes the establishment of the Oak Hill II TIF District. Type of TIF District: An economic development district Parcel Numbers: 17-117-21-42-0072 Proposed Development: The District is being created to facilitate construction of an approximately 21,400 square foot office facility in the City. Please see Appendix A of the TIF Plan for a more detailed project description. Maximum duration: Pursuant to M.S., Section 469.175, Subd. 1, and M.S., Section 469.176, Subd. 1, the duration of the District must be indicated within the TIF Plan. Pursuant to M.S., Section 469.176, Subd. 1b, the duration of the District will be 8 years after receipt of the first increment by the EDA or City. The date of receipt by the City of the first tax increment is expected to be 2014. Thus, it is estimated that the District, including any modifications of the TIF Plan for subsequent phases or other changes, would terminate after 2023, or when the TIF Plan is satisfied. If increment is received in 2013, the term of the District will be 2022. The EDA or City reserves the right to decertify the District prior to the legally required date. Estimated annual tax increment: Up to $70,258 EDA Meeting of January 17, 2012 (Item No. 7a) Subject: Establishment of the Oak Hill II Tax Increment Financing District Page 9 Page 2 Authorized uses: The TIF Plan contains a budget that authorizes the maximum amount that may be expended: Land/Building Acquisition ....................................................... $20,000 Site Improvements/Preparation .............................................. $150,000 Utilities ..................................................................................... $75,000 Other Qualifying Improvements ............................................ $172,556 Administrative Costs (up to 10%) ............................................ $55,029 PROJECT COSTS TOTAL ................................................... $472,585 Interest ................................................................................... $132,738 PROJECT COST AND INTEREST COST TOTAL ....... $605,323 See Subsection 2-10, page 2-5 of the TIF Plan for the full budget authorization. Form of financing: The project is proposed to be financed by a pay-as-you-go note. Administrative fee: Up to 10% of annual increment, if costs are justified. It is estimated that the City will only utilize 5% of annual increment. Interfund Loan Requirement: If the City wants to pay for administrative expenditures from a tax increment fund, it is recommended that a resolution authorizing a loan from another fund be passed PRIOR to the issuance of the check. 4 Year Activity Rule (§ 469.176 Subd. 6) After four years from the date of certification of the District one of the following activities must have been commenced on each parcel in the District: • Demolition • Rehabilitation • Renovation • Other site preparation (not including utility services such as sewer and water) If the activity has not been started by approximately January 2015, no additional tax increment may be taken from that parcel until the commencement of a qualifying activity. 5 Year Rule (§ 469.1763 Subd. 3) Within 5 years of certification revenues derived from tax increments must be expended or obligated to be expended. Any obligations in the District made after approximately January 2016, will not be eligible for repayment from tax increments. The reasons and facts supporting the findings for the adoption of the TIF Plan for the District, as required pursuant to M.S., Section 469.175, Subd. 3, are included in Exhibit F of the TIF Plan EDA Meeting of January 17, 2012 (Item No. 7a) Subject: Establishment of the Oak Hill II Tax Increment Financing District Page 10 Page 3 MAPS OF REDEVELOPMENT PROJECT NO. 1 AND THE HARDCOAT TAX INCREMENT FINANCING DISTRICT EDA Meeting of January 17, 2012 (Item No. 7a) Subject: Establishment of the Oak Hill II Tax Increment Financing District Page 11 Page 4 EDA Meeting of January 17, 2012 (Item No. 7a) Subject: Establishment of the Oak Hill II Tax Increment Financing District Page 12 As of January 11, 2012 Draft for Public Hearing Modification to the Redevelopment Plan for Redevelopment Project No. 1 and the Tax Increment Financing Plan for the establishment of the Oak Hill II Tax Increment Financing District (an economic development district) within Redevelopment Project No. 1 St. Louis Park Economic Development Authority City of St. Louis Park Hennepin County State of Minnesota Public Hearing: January 17, 2012 Adopted: Prepared by: EHLERS & ASSOCIATES, INC. 3060 Centre Pointe Drive, Roseville, Minnesota 55113-1105 651-697-8500 fax: 651-697-8555 www.ehlers-inc.com EDA Meeting of January 17, 2012 (Item No. 7a) Subject: Establishment of the Oak Hill II Tax Increment Financing District Page 13 Table of Contents (for reference purposes only) Section 1 - Modification to the Redevelopment Plan for Redevelopment Project No. 1 Foreword ............................................................. 1-1 Section 2 - Tax Increment Financing Plan for the Oak Hill II Tax Increment Financing District Subsection 2-1. Foreword............................................... 2-1 Subsection 2-2. Statutory Authority........................................ 2-1 Subsection 2-3. Statement of Objectives ................................... 2-1 Subsection 2-4. Redevelopment Plan Overview .............................. 2-1 Subsection 2-5. Description of Property in the District and Property To Be Acquired . 2-2 Subsection 2-6. Classification of the District................................. 2-2 Subsection 2-7. Duration and First Year of Tax Increment of the District ........... 2-3 Subsection 2-8. Original Tax Capacity, Tax Rate and Estimated Captured Net Tax Capacity Value/Increment and Notification of Prior Planned Improvements .... 2-3 Subsection 2-9. Sources of Revenue/Bonds to be Issued ...................... 2-4 Subsection 2-10. Uses of Funds ........................................... 2-5 Subsection 2-11. Fiscal Disparities Election.................................. 2-5 Subsection 2-12. Business Subsidies....................................... 2-6 Subsection 2-13. County Road Costs ....................................... 2-7 Subsection 2-14. Estimated Impact on Other Taxing Jurisdictions................. 2-7 Subsection 2-15. Supporting Documentation ................................. 2-9 Subsection 2-16. Definition of Tax Increment Revenues ........................ 2-9 Subsection 2-17. Modifications to the District................................ 2-10 Subsection 2-18. Administrative Expenses .................................. 2-10 Subsection 2-19. Limitation of Increment ................................... 2-11 Subsection 2-20. Use of Tax Increment .................................... 2-12 Subsection 2-21. Excess Increments ...................................... 2-12 Subsection 2-22. Requirements for Agreements with the Developer .............. 2-12 Subsection 2-23. Assessment Agreements ................................. 2-13 Subsection 2-24. Administration of the District ............................... 2-13 Subsection 2-25. Annual Disclosure Requirements ........................... 2-13 Subsection 2-26. Reasonable Expectations ................................. 2-13 Subsection 2-27. Other Limitations on the Use of Tax Increment................. 2-14 Subsection 2-28. Summary.............................................. 2-14 Appendix A Project Description ...................................................... A-1 Appendix B Maps of Redevelopment Project No. 1 and the District .......................... B-1 Appendix C Description of Property to be Included in the District ............................ C-1 Appendix D Estimated Cash Flow for the District ........................................ D-1 Appendix E Minnesota Business Assistance Form ....................................... E-1 EDA Meeting of January 17, 2012 (Item No. 7a) Subject: Establishment of the Oak Hill II Tax Increment Financing District Page 14 Appendix F Findings Including But/For Qualifications..................................... F-1 EDA Meeting of January 17, 2012 (Item No. 7a) Subject: Establishment of the Oak Hill II Tax Increment Financing District Page 15 St. Louis Park Economic Development Authority Modification to the Redevelopment Plan for Redevelopment Project No. 1 1-1 Section 1 - Modification to the Redevelopment Plan for Redevelopment Project No. 1 Foreword The following text represents a Modification to the Redevelopment Plan for Redevelopment Project No. 1. This modification represents a continuation of the goals and objectives set forth in the Redevelopment Plan for Redevelopment Project No. 1. Generally, the substantive changes include the establishment of the Oak Hill II Tax Increment Financing District. For further information, a review of the Redeve lopment Plan for Redevelopm ent Project No. 1 is recommended. It is available from the City Clerk at the City of St. Louis Park. Other relevant information is contained in the Tax Increment Financing Plans for the Tax Increment Financing Districts located within Redevelopment Project No. 1. EDA Meeting of January 17, 2012 (Item No. 7a) Subject: Establishment of the Oak Hill II Tax Increment Financing District Page 16 St. Louis Park Economic Development Authority Tax Increment Financing Plan for the Oak Hill II Tax Increment Financing District 2-1 Section 2 - Tax Increment Financing Plan for the Oak Hill II Tax Increment Financing District Subsection 2-1. Foreword The St. Louis Park Economic Development Authority (the "EDA"), the City of St. Louis Park (the "City"), staff and consultants have prepared the following information to expedite the establishment of the Oak Hill II Tax Increment Financing District (the "District"), an economic development tax increment financing district, located in Redevelopment Project No. 1. Subsection 2-2. Statutory Authority Within the City , there exist areas where public involvement is necessary to cause developm ent or redevelopment to occur. To this end, the EDA and City have certain statutory powers pursuant to Minnesota Statutes ("M.S."), Sections 469.090 to 469.1082, inclusive, as am ended, and M.S., Sections 469.174 to 469.1799, inclusive, as amended (the "Tax Increment Financing Act" or "TIF Act"), to assist in financing public costs related to this project. This District is being created pursuant to M.S. Section 469.174, Subd. 12, as modified by, M.S., Section 469.176, Subd. 4c(d). This section contains the Tax Increm ent Financing Plan (the "TIF Plan") for the District. Other rel evant information is contained in the Modification to the Redevelopment Plan for Redevelopment Project No. 1. Subsection 2-3. Statement of Objectives The District currently consists of one parcel of land and adjacent and internal rights-of-way. The District is being created to facilitate construction of an approxi mately 21,400 square foot office facility in the City. Please see Appendix A for further District information. The EDA expects to enter into a developm ent agreement with Anderson-KM Builders at the time of approval of the TIF Plan and development is expected to occur in 2012. This TIF Plan is expected to achieve many of the objectives outlined in the Redevelopment Plan for Redevelopment Project No. 1. The activities contemplated in the Modification to the Redevelopment Plan and the TIF Plan do not preclude the undertaking of other qualified development or redevelopment activities. These activities are anticipated to occur over the life of Redevelopment Project No. 1 and the District. Subsection 2-4. Redevelopment Plan Overview 1. Property to be Acquired - Selected property located within the District may be acquired by the EDA or City and is further described in this TIF Plan. 2. Relocation - Relocation services, to the extent required by law, are available pursuant to M.S., Chapter 117 and other relevant state and federal laws. 3. Upon approval of a developer's plan relating to the project and completion of the necessary legal requirements, the EDA or City may sell to a developer selected properties that it may acquire within the District or may lease land or facilities to a developer. 4. The EDA or City may perform or provide for some or all necessary acquisition, construction, EDA Meeting of January 17, 2012 (Item No. 7a) Subject: Establishment of the Oak Hill II Tax Increment Financing District Page 17 St. Louis Park Economic Development Authority Tax Increment Financing Plan for the Oak Hill II Tax Increment Financing District 2-2 relocation, demolition, and required utilities and public street work within the District. 5. The City proposes both public and private infrastructure within the District. The proposed reuse of private property within the District will be for a office building, and there will be continued operation of Redevelopment Project No. 1 after the capital improvements within Redevelopment Project No. 1 have been completed. Subsection 2-5. Description of Property in the District and Property To Be Acquired The District encompasses all property and adjacent right s-of-way and abutting roadways identified by the parcels listed in Appendix C of this TIF Plan. Please also see the map in Appendix B for further information on the location of the District. The City or EDA may acquire any parcel within the District including interior and adjacent street rights of way. Any properties identified for acquisition will be acquired by the City or EDA only in order to accomplish one or more of the following: storm sewer improvements; provide land for needed public streets, utilities and facilities; carry out land acquisition, site improvements, clearance and/or developm ent to accomplish the uses and objectives set forth in this plan . The City of EDA may acquire property by gift, dedication, condemnation or direct purchase from willing sellers in order to achieve the objectives of this TIF Plan. Such acquisitions will be undertaken only when there is assurance of funding to finance the acquisition and related costs. Subsection 2-6. Classification of the District The District is an economic development district as defined in M.S. 469.174, Subd. 12, as modified by M.S., Section 469.176, Subd. 4c(d). In order to create an economic development district under general law (M.S., Section 469.174 Subd. 12), the EDA or City must find that the Di strict is in the public interest because: (1) it will discourage commerce, industry, or manufacturing from moving their operations to another state or municipality; or (2) it will result in increased employment in the state; or (3) it will result in preservation and enhancement of the tax base of the state. In addition, M.S., Section 469.176, Subd. 4c provides that assist ance from a general law econom ic development district may not be used to provide assistance to development if more than 15 percent of the buildings and ancillary facilities (d etermined on a square footage basis), are used for other than certain specified purposes (largely manufacturing, warehousing and distribution facilities). However, M.S., Section 469.176, Subd. 4c(d) provides a limited-time exception to these general law rules. Under this provision (originally enacted in 2010 legisl ature and extended in 2011 legislature), a City may provide assistance to economic development districts, notwithstanding the normal findings required under M.S., Section 469.174, Subd. 12, and notwithstanding the limitation on types of assisted development under M.S., Section 469.176, Subd. 4c, subject to certain conditions. To satisfy the requirement of M.S., Section 469.176, Subd. 4c(d), the City finds that the following conditions are satisfied: (1) the project will create or retain jobs in this state, including construction jobs, and construction of the project would not have commenced before July 1, 2012, without the authority providing assistance under the provisions of this paragraph; EDA Meeting of January 17, 2012 (Item No. 7a) Subject: Establishment of the Oak Hill II Tax Increment Financing District Page 18 St. Louis Park Economic Development Authority Tax Increment Financing Plan for the Oak Hill II Tax Increment Financing District 2-3 (2) construction of the project will begin no later than July 1, 2012; (3) the request for certification of the district will be made no later than June 30, 2012; and (4) the assistance will not be used for the development of housing. In meeting the statutory criteria the EDA and City rely on the following facts and findings: The City is creating the District is pursuant to M.S. Sections 469.176, Subd. 4c(d) in order to assist in the construction of an approximately 21,400 square foot office facility. If construction does not commence by July 1, 2012, the City and EDA will not grant assistance unless the proposed facility meets the criteria in M.S., Section 469.176, Subd. 4c(a), and satisfies the findings required under M.S., Section 469.174, Subd. 12. Pursuant to M.S., Section 469.176, Subd. 7, the District does not contain any parcel or part of a parcel that qualified under the provisions of M.S., Sections 273.111 or 273.112 or Chapter 473H for taxes payable in any of the five calendar years before the filing of the request for certification of the District. Subsection 2-7. Duration and First Year of Tax Increment of the District Pursuant to M.S., Section 469.175, Subd. 1, and M.S., Section 469.176, Subd. 1, the duration of the District must be indicated within the TIF Plan. Pursuant to M.S., Section 469.176, Subd. 1b., the duration of the District will be 8 years after receipt of the first increment by the EDA or City. The date of receipt by the City of the first tax increm ent is expected to be 2014. Thus, it is estim ated that the District, including any modifications of the TIF Plan for subsequent phases or other changes, would terminate after 2023, or when the TIF Plan is satisfied. If increment is received in 2013, the term of the District will be 2022. The EDA or City reserves the right to decertify the District prior to the legally required date. Subsection 2-8. Original Tax Capacity, Tax Rate and Estimated Captured Net Tax Capacity Value/Increment and Notification of Prior Planned Improvements Pursuant to M.S., Section 469.174, Subd. 7 and M.S., Section 469.177, Subd. 1, the Original Net Tax Capacity (ONTC) as certified for the District will be based on the market values placed on the property by the assessor in 2011 for taxes payable 2012. Pursuant to M.S., Section 469.177, Subds. 1 and 2, the County Auditor shall certify in each year (beginning in the payment year 2013) the amount by which the original value has increased or decreased as a result of: 1. Change in tax exempt status of property; 2. Reduction or enlargement of the geographic boundaries of the district; 3. Change due to adjustments, negotiated or court-ordered abatements; 4. Change in the use of the property and classification; 5. Change in state law governing class rates; or 6. Change in previously issued building permits. In any year in which the current Net Tax Capacity (NTC) value of the District declines below the ONTC, no value will be captured and no tax increment will be payable to the EDA or City. The original local tax rate for the District will be the local tax rate for taxes pay able 2012, assuming the request for certification is made before June 30, 2012. The ONTC and the Original Local Tax Rate for the District appear in the table below. EDA Meeting of January 17, 2012 (Item No. 7a) Subject: Establishment of the Oak Hill II Tax Increment Financing District Page 19 St. Louis Park Economic Development Authority Tax Increment Financing Plan for the Oak Hill II Tax Increment Financing District 2-4 Pursuant to M.S., Section 469.174 Subd. 4 and M.S., Section 469.177, Subd. 1, 2, and 4, the estimated Captured Net Tax Capacity (CTC) of the District, within Redevelopment Project No. 1, upon completion of the projects within the District, will annually approximate tax increment revenues as shown in the table below. The EDA and City request 100 percent of the available increase in tax capacity for repayment of its obligations and current expenditures, beginning in th e tax year payable 2013. The Project Tax Capacity (PTC) listed is an estimate of values when the projects within the District are completed. Project Estimated Tax Capacity upon Completion (PTC)$95,023 Original Estimated Net Tax Capacity (ONTC)$13,250 Fiscal Disparities Contribution $28,213 Estimated Captured Tax Capacity (CTC)$53,560 Original Local Tax Rate 1.31176 EstimatedPay 2012 Estimated Annual Tax Increment (CTC x Local Tax Rate)$70,258 Percent Retained by the EDA 100% Tax capacity includes a 3% inflation factor for the duration of the District. The tax capacity included in thischart is the estimated tax capacity of the District in year 8. The tax capacity of the District in year one isestimated to be $75,012. Pursuant to M.S., Section 469.177, Subd. 4, the EDA shall, after a due and diligent search, accompany its request for certification to the County Auditor or its notice of the District enlargem ent pursuant to M.S., Section 469.175, Subd. 4, with a listing of all properties within the District or area of enlargement for which building permits have been issued during the eighteen (18) months immediately preceding approval of the TIF Plan by the municipality pursuant to M.S., Section 469.175, Subd. 3. The County Auditor shall increase the original net tax capacity of the District by the net tax capacity of improvements for which a building permit was issued. The City has reviewed the area to be included in the District and determined that no building permits have been issued during the 18 months immediately preceding approval of the TIF Plan by the City. Subsection 2-9. Sources of Revenue/Bonds to be Issued The costs outlined in the Uses of Funds will be fina nced primarily through the annual collect ion of tax increments. The EDA or City reserves the right to incur bonds or other indebtedness as a result of the TIF Plan. As presently proposed, the projects within the District will be financed by a pay-as-you-go note. Any refunding amounts will be deemed a budgeted cost without a formal TIF Plan Modification. This provision does not obligate the EDA or City to incur debt. The EDA or City will issue bonds or incur other debt only upon the determination that such action is in the best interest of the City. The total estimated tax increment revenues for the District are shown in the table on the following page: EDA Meeting of January 17, 2012 (Item No. 7a) Subject: Establishment of the Oak Hill II Tax Increment Financing District Page 20 St. Louis Park Economic Development Authority Tax Increment Financing Plan for the Oak Hill II Tax Increment Financing District 2-5 SOURCES OF FUNDS TOTAL Tax Increment $550,294 Interest $55,029 TOTAL $605,323 The EDA or City may issue bonds (as defined in the TIF Act) secured in whole or in part with tax increments from the District in a maximum principal amount of $472,585. Such bonds may be in the form of pay-as-you- go notes, revenue bonds or notes, general obligation bonds, or interfund loans. This estimate of total bonded indebtedness is a cumulative statement of authority under this TIF Plan as of the date of approval. Subsection 2-10. Uses of Funds Currently under consideration for the District is a pr oposal to facilitate construction of an approximately 21,400 square foot office facility. The EDA and City have determined that it will be necessary to provide assistance to the project(s) for certain District costs, as described. The EDA has studied the feasibility of the development or redevelopment of property in and around the District. To facilitate the establishment and development or redevelopment of the District, this TIF Plan authorizes the use of tax increment financing to pay for the cost of certain eligible expenses. The estimate of public costs and uses of funds associated with the District is outlined in the following table. USES OF TAX INCREMENT FUNDS TOTAL Land/Building Acquisition $20,000 Site Improvements/Preparation $150,000 Utilities $75,000 Other Qualifying Improvements $172,556 Administrative Costs (up to 10%)$55,029 PROJECT COST TOTAL $472,585 Interest $132,738 PROJECT AND INTEREST COSTS TOTAL $605,323 The total project cost, including financing costs (interest) listed in the table above does not exceed the total projected tax increments for the District as shown in Appendix D. Estimated capital and adm inistrative costs listed above are subject to change am ong categories by modification of the TIF Plan without hearings and notices as required for approval of the initial TIF Plan, so long as the total capital and administrative costs combined do not exceed the total listed above. Further, the EDA or City may spend up to 20 percent of the tax increments from the District for activities (described in the table above) located outside the boundaries of the District but within the boundaries of the Project (including administrative costs, which are considered to be spend outside the District), subject to all other terms and conditions of this TIF Plan. EDA Meeting of January 17, 2012 (Item No. 7a) Subject: Establishment of the Oak Hill II Tax Increment Financing District Page 21 St. Louis Park Economic Development Authority Tax Increment Financing Plan for the Oak Hill II Tax Increment Financing District 2-6 Subsection 2-11. Fiscal Disparities Election Pursuant to M.S., Section 469.177, Subd. 3, clause b, the EDA or City must calculate fiscal disparities using the following method of computation: (b) The following method of computation applies to any economic development district for which the request for certification was made after June 30, 1997, and to any other district for which the governing body, by resolution approving the tax increment financing plan pursuant to M.S., Section 469.177, Subd. 3, elects: (1) The original net tax capacity shall be determined before the application of the fiscal disparity provisions of Chapter 276A or 473F. The current net tax capacity shall exclude any fiscal disparity commercial-industrial net tax capacity increase between the original year and the current year multiplied by the fiscal disparity ratio determined pursuant to M.S., Section 276A.06, subdivision 7 or M.S., Section 473F.08, subdivision 6. Where the original net tax capacity is equal to or greater than the current net tax capacity, there is no captured tax capacity and no tax increment determination. Where the original tax capacity is less than the current tax capacity, the difference between the original net tax capacity and the current net tax capacity is the captured net tax capacity. This amount less any portion thereof which the authority has designated, in its tax increment financing plan, to share with the local taxing districts is the retained captured net tax capacity of the authority. (2) The county auditor shall exclude the retained captured net tax capacity of the authority from the net tax capacity of the local taxing districts in determining local taxing district tax rates. The local tax rates so determined are to be extended against the retained captured net tax capacity of the authority as well as the net tax capacity of the local taxing districts. The tax generated by the extension of the less of (A) the local taxing district tax rates or (B) the original local tax rate to the retained captured net tax capacity of the authority is the tax increment of the authority. Subsection 2-12. Business Subsidies Pursuant to M.S., Section 116J.993, Subd. 3, the following forms of financial assistance are not considered a business subsidy: (1) A business subsidy of less than $150,000; (2) Assistance that is generally available to all businesses or to a general class of similar businesses, such as a line of business, size, location, or similar general criteria; (3) Public improvements to buildings or lands owned by the state or local government that serve a public purpose and do not principally benefit a single business or defined group of businesses at the time the improvements are made; (4) Redevelopment property polluted by contaminants as defined in M.S., Section 116J.552, Subd. 3; (5) Assistance provided for the sole purpose of renovating old or decaying building stock or bringing it up to code and assistance provided for designated historic preservation districts, provided that the assistance is equal to or less than 50% of the total cost; (6) Assistance to provide job readiness and training services if the sole purpose of the assistance is to provide those services; (7) Assistance for housing; (8) Assistance for pollution control or abatement, including assistance for a tax increment financing hazardous substance subdistrict as defined under M.S., Section 469.174, Subd. 23; EDA Meeting of January 17, 2012 (Item No. 7a) Subject: Establishment of the Oak Hill II Tax Increment Financing District Page 22 St. Louis Park Economic Development Authority Tax Increment Financing Plan for the Oak Hill II Tax Increment Financing District 2-7 (9) Assistance for energy conservation; (10) Tax reductions resulting from conformity with federal tax law; (11) Workers' compensation and unemployment compensation; (12) Benefits derived from regulation; (13) Indirect benefits derived from assistance to educational institutions; (14) Funds from bonds allocated under chapter 474A, bonds issued to refund outstanding bonds, and bonds issued for the benefit of an organizati on described in section 501 (c) (3) o f the Internal Revenue Code of 1986, as amended through December 31, 1999; (15) Assistance for a collaboration between a Minn esota higher education institution and a business; (16) Assistance for a tax increment financing soils condition district as defined under M.S., Section 469.174, Subd. 19; (17) Redevelopment when the recipient's investment in the purchase of the site and in site preparation is 70 percent or more of the assessor's current year's estimated market value; (18) General changes in tax increment financing law and other general tax law changes of a principally technical nature; (19) Federal assistance until the assistance has been repaid to, and reinvested by , the state or local government agency; (20) Funds from dock and wharf bonds issued by a seaway port authority; (21) Business loans and loan guarantees of $150,000 or less; (22) Federal loan funds provided through the United States Department of Commerce, Economic Development Administration; and (23) Property tax abatements granted under M.S., Section 469.1813 to property that is subject to valuation under Minnesota Rules, chapter 8100. The EDA will comply with M.S., Sections 116J.993 to 116J.995 to the extent the tax increment assistance under this TIF Plan does not fall under any of the above exemptions. Subsection 2-13. County Road Costs Pursuant to M.S., Section 469.175, Subd. 1a, the county board may require the EDA or City to pay for all or part of the cost of county road improvements if the proposed development to be assisted by tax increment will, in the judgment of the county, substantially increase the use of county roads requiring construction of road improvements or other road costs and if the road improvements are not scheduled within the next five years under a capital improvement plan or within five years under another county plan. If the county elects to use increments to improve county roads, it must notify the EDA or City within forty- five days of receipt of this TIF Plan. In the opinion of th e EDA and City and consultants, the proposed development outlined in this TIF Plan will have little or no impact upon county roads, therefore the TIF Plan was not forwarded to the county 45 days prior to the public hearing. The EDA and City are aware that the county could claim that tax increment should be used for county roads, even after the public hearing. Subsection 2-14. Estimated Impact on Other Taxing Jurisdictions The estimated impact on other taxing jurisdictions assumes that the redevelopment contemplated by the TIF Plan would occur without the creation of the District. However, the EDA or City has determined that such development or redevelopment would not occur "but fo r" tax increment financing and that, therefore, the fiscal impact on other taxing jurisdictions is $0. The estim ated fiscal impact of the District would be as follows if the "but for" test was not met: EDA Meeting of January 17, 2012 (Item No. 7a) Subject: Establishment of the Oak Hill II Tax Increment Financing District Page 23 St. Louis Park Economic Development Authority Tax Increment Financing Plan for the Oak Hill II Tax Increment Financing District 2-8 IMPACT ON TAX BASE Estimated 2011/Pay 20112 Total Net Tax Capacity Estimated Captured Tax Capacity (CTC) Upon Completion Percent of CTC to Entity Total Hennepin County 1,253,423,199 53,560 0.0043% City of St. Louis Park 49,781,486 53,560 0.1076% St. Louis Park ISD No. 283 47,211,090 53,560 0.1134% IMPACT ON TAX RATES Estimated Pay 2012 Extension Rates Percent of Total CTC Potential Taxes Hennepin County 0.487770 37.18% 53,560 26,125 City of St. Louis Park 0.455430 34.72% 53,560 24,393 St. Louis Park ISD No. 283 0.254800 19.42% 53,560 13,647 Other 0.113760 8.67%53,560 6,093 Total 1.311760 100.00%70,258 The estimates listed above display the captured tax capacity when all construction is completed. The tax rate used for calculations is the estimated Pay 2012 rate. The total net capacity for the entities listed above are based on estimated Pay 2012 figures. The District will be certified under the actual Pay 2012 rates, which were unavailable at the time this TIF Plan was prepared. Pursuant to M.S. Section 469.175 Subd. 2(b): (1) Estimate of total tax increment. It is estimated that the total amount of tax increment that will be generated over the life of the District is $550,294; (2) Probable impact of the District on city provided services and ability to issue debt. An impact of the District on police protection is expected to be m inimal. The City does track all calls for service including property-type calls and crimes. With any addition of new businesses, police calls for service will likely be increased. The City does not expect that the proposed development, in and of itself, will necessitate new capital investm ent in ve hicles or require that the City hire additional officers. The probable impact of the District on fire protection is not expected to be significant. Typically new buildings generate few calls, if any , and are of superior construction. A building constructed to current safety standards with autom atic fire detection and suppression sy stems, such as the one proposed, will significantly reduce service calls and protect human life and safety. The impact of the District on public infrastructure is expected to be minimal. The development is not expected to significantly impact any traffic movements in the area. The current infrastructure for sanitary sewer, storm sewer and water will be able to handle the additional volume generated from the proposed development. Based on the development plans, there are no additional costs associated EDA Meeting of January 17, 2012 (Item No. 7a) Subject: Establishment of the Oak Hill II Tax Increment Financing District Page 24 St. Louis Park Economic Development Authority Tax Increment Financing Plan for the Oak Hill II Tax Increment Financing District 2-9 with street maintenance, sweeping, plowing, lighting and sidewalks. The development in the District is not expected to contribute to sanitary sewer (SAC) and water (WAC) connection fees. The probable impact of any District general obligation tax increment bonds on the ability to issue debt for general fund purposes is expected to be minimal. It is not anticipated that there will be any general obligation debt issued in relation to this project, therefore there will be no im pact on the City's ability to issue future debt or on the City's debt limit. (3) Estimated amount of tax increment attributable to school district levies. It is estim ated that the amount of tax increments over the life of the District that would be attributable to school district levies, assuming the school district' s share of the total local tax rate for all taxing jurisdictions remained the same, is $106,867; (4) Estimated amount of tax increment attributable to county levies. It is estimated that the amount of tax increments over the life of the District that would be attributable to county levies, assuming the county's share of the total local tax rate for all taxing jurisdictions remained the same, is $204,599; (5) Additional information requested by the county or school district. The City is not aware of any standard questions in a county or school district written policy regarding tax increment districts and impact on county or school district services. The county or school district must request additional information pursuant to M.S. Section 469.175 Subd. 2(b) within 15 days after receipt of the tax increment financing plan. No requests for additional information from the county or school district regarding the proposed development for the District have been received. Subsection 2-15. Supporting Documentation Pursuant to M.S. Section 469.175, Subd. 1 (a), clause 7 the TIF Plan m ust contain identification and description of studies and analyses used to make the determination set forth in M.S. Section 469.175, Subd. 3, clause (b)(2) and the findings are required in the resolution approving the District. Following is a list of reports and studies on file at the City that support the EDA and City's findings: • A list of applicable studies will be listed here prior to the public hearing. Subsection 2-16. Definition of Tax Increment Revenues Pursuant to M.S., Section 469.174, Subd. 25, tax increment revenues derived from a tax increment financing district include all of the following potential revenue sources: 1. Taxes paid by the captured net tax capacity, but excluding any excess taxes, as computed under M.S., Section 469.177; 2. The proceeds from the sale or lease of property, tangible or intangible, to the extent the property was purchased by the Authority with tax increments; 3. Principal and interest received on loans or other advances made by the Authority with tax increments; 4. Interest or other investment earnings on or from tax increments; 5. Repayments or return of tax increm ents made to the Authority under agreements for districts for which the request for certification was made after August 1, 1993; and 6. The market value homestead credit paid to the Authority under M.S., Section 273.1384. EDA Meeting of January 17, 2012 (Item No. 7a) Subject: Establishment of the Oak Hill II Tax Increment Financing District Page 25 St. Louis Park Economic Development Authority Tax Increment Financing Plan for the Oak Hill II Tax Increment Financing District 2-10 Subsection 2-17. Modifications to the District In accordance with M.S., Section 469.175, Subd. 4, any: 1. Reduction or enlargement of the geographic area of the District, if the reduction does not meet the requirements of M.S., Section 469.175, Subd. 4(e); 2. Increase in amount of bonded indebtedness to be incurred; 3. A determination to capitalize interest on debt if that determination was not a part of the original TIF Plan; 4. Increase in the portion of the captured net tax capacity to be retained by the EDA or City; 5. Increase in the estimate of the cost of the District, including administrative expenses, that will be paid or financed with tax increment from the District; or 6. Designation of additional property to be acquired by the EDA or City, shall be approved upon the notice and after the discussion, public hearing and findings required for approval of the original TIF Plan. Pursuant to M.S., Section 469.175 Subd. 4(f), the geographic area of the District may be reduced, but shall not be enlarged after five years following the date of certification of the original net tax capacity by the county auditor. If an economic development district is enlarged, the reasons and supporting facts for the determination that the addition to the district meets the criteria of M.S., Section 469.174, Subd. 12 must be documented in writing and retain ed. The requirements of this paragraph do not apply if (1) the only modification is elimination of parcel(s) from the Dist rict and (2) (A) the current net tax capacity of the parcel(s) eliminated from the District equals or exceeds the net tax capacity of those parcel(s) in the District's original net tax capacity or (B) the EDA agrees that, notwithstanding M.S., Section 469.177, Subd. 1, the original net tax capacity will be reduced by no more than the current net tax capacity of the parcel(s) eliminated from the District. Subsection 2-18. Administrative Expenses In accordance with M.S., Section 469.174, Subd. 14, administrative expenses means all expenditures of the EDA or City, other than: 1. Amounts paid for the purchase of land; 2. Amounts paid to contractors or others providing materials and services, including architectural and engineering services, directly connected with the physical development of the real property in the District; 3. Relocation benefits paid to or services provide d for persons residing or businesses located in the District; or 4. Amounts used to pay principal or interest on, fund a reserve for, or sell at a discount bonds issued pursuant to M.S., Section 469.178; or 5. Amounts used to pay other financial obligations to the extent those obligations were used to finance costs described in clauses (1) to (3). For districts for which the request for certification were made before August 1, 1979, or after June 30, 1982, and before August 1, 2001, administrative expenses also include amounts paid for services provided by bond counsel, fiscal consultants, and planning or economic development consultants. Pursuant to M.S., Section 469.176, Subd. 3, tax increment may be used to pay any authorized and documented administrative expenses for the District up to but not to exceed 10 percent of the total estimated tax increment expenditures authorized by the TIF Plan or the total tax increments, as defined by M.S., Section 469.174, Subd. 25, clause (1), from the District, whichever is less. EDA Meeting of January 17, 2012 (Item No. 7a) Subject: Establishment of the Oak Hill II Tax Increment Financing District Page 26 St. Louis Park Economic Development Authority Tax Increment Financing Plan for the Oak Hill II Tax Increment Financing District 2-11 For districts for which certification was requested after July 31, 2001, no tax increment may be used to pay any administrative expenses for District costs which exceed ten percent of total estimated tax increment expenditures authorized by the TIF Plan or the total tax increments, as defined in M.S., Section 469.174, Subd. 25, clause (1), from the District, whichever is less. Pursuant to M.S., Section 469.176, Subd. 4h, tax increments may be used to pay for the County's actual administrative expenses incurred in connection with the District and are not subject to the percentage limits of M.S., Section 469.176, Subd. 3. The county may require payment of those expenses by February 15 of the year following the year the expenses were incurred. Pursuant to M.S., Section 469. 177, Subd. 11, the County Treasurer shall deduct an amount (currently .36 percent) of any increment distributed to the EDA or City and the County Treasurer shall pay the amount deducted to the State Commissioner of Management and Budget for deposit in the state general fund to be appropriated to the State Auditor for the cost of financial reporting of tax increment financing information and the cost of examining and auditing authorities' use of tax increment financing. This amount may be adjusted annually by the Commissioner of Revenue. Subsection 2-19. Limitation of Increment The tax increment pledged to the payment of bonds and interest thereon may be discharged and the District may be terminated if sufficient funds have been irrevocably deposited in the debt service fund or other escrow account held in trust for all outstanding bonds to pr ovide for the paym ent of the bonds at maturity or redemption date. Pursuant to M.S., Section 469.176, Subd. 6: if, after four years from the date of certification of the original net tax capacity of the tax increment financing district pursuant to M.S., Section 469.177, no demolition, rehabilitation or renovation of property or other site preparation, including qualified improvement of a street adjacent to a parcel but not installation of utility service including sewer or water systems, has been commenced on a parcel located within a tax increment financing district by the authority or by the owner of the parcel in accordance with the tax increment financing plan, no additional tax increment may be taken from that parcel and the original net tax capacity of that parcel shall be excluded from the original net tax capacity of the tax increment financing district. If the authority or the owner of the parcel subsequently commences demolition, rehabilitation or renovation or other site preparation on that parcel including qualified improvement of a street adjacent to that parcel, in accordance with the tax increment financing plan, the authority shall certify to the county auditor that the activity has commenced and the county auditor shall certify the net tax capacity thereof as most recently certified by the commissioner of revenue and add it to the original net tax capacity of the tax increment financing district. The county auditor must enforce the provisions of this subdivision. The authority must submit to the county auditor evidence that the required activity has taken place for each parcel in the district. The evidence for a parcel must be submitted by February 1 of the fifth year following the year in which the parcel was certified as included in the district. For purposes of this subdivision, qualified improvements of a street are limited to (1) construction or opening of a new street, (2) relocation of a street, and (3) substantial reconstruction or rebuilding of an existing street. The EDA or City or a property owner must improve parcels within the District by approximately January 2015 and report such actions to the County Auditor. EDA Meeting of January 17, 2012 (Item No. 7a) Subject: Establishment of the Oak Hill II Tax Increment Financing District Page 27 St. Louis Park Economic Development Authority Tax Increment Financing Plan for the Oak Hill II Tax Increment Financing District 2-12 Subsection 2-20. Use of Tax Increment The EDA or City hereby determines that it will use 100 percent of the captured net tax capacity of taxable property located in the District for the following purposes: 1. To pay the principal of and interest on bonds issued to finance a project; 2. to finance, or otherwise pay the cost of redevelopment of the Redevelopment Project No. 1 pursuant to M.S., Sections 469.090 to 469.1082; 3. To pay for project costs as identified in the budget set forth in the TIF Plan; 4. To finance, or otherwise pay for other purposes as provided in M.S., Section 469.176, Subd. 4; 5. To pay principal and interest on any loans, advances or other payments made to or on behalf of the EDA or City or for the benefit of Redevelopment Project No. 1 by a developer; 6. To finance or otherwise pay premiums and other costs for insurance or other security guaranteeing the payment when due of principal of and interest on bonds pursuant to the TIF Plan or pursuant to M.S., Chapter 462C. M.S., Sections 469.152 through 469.165, and/or M.S., Sections 469.178; and 7. To accumulate or maintain a reserve securing the payment when due of the principal and interest on the tax increment bonds or bonds issued pursuant to M.S., Chapter 462C, M.S., Sections 469.152 through 469.165, and/or M.S., Sections 469.178. These revenues shall not be used to circum vent any levy limitations applicable to the City nor for other purposes prohibited by M.S., Section 469.176, Subd. 4. Tax increments generated in the District will be paid by Hennepin County to the EDA for the Tax Increment Fund of said District. The EDA or City will pay to the developer(s) annually an amount not to exceed an amount as specified in a developer's agreement to reim burse the costs of land acquisition, public improvements, demolition and relocation, site preparation, and administration. Remaining increment funds will be used for EDA or City administration (up to 10 percent) and for the costs of public im provement activities outside the District. Subsection 2-21. Excess Increments Excess increments, as defined in M.S., Section 469.176, Subd. 2, shall be used only to do one or more of the following: 1. Prepay any outstanding bonds; 2. Discharge the pledge of tax increment for any outstanding bonds; 3. Pay into an escrow account dedicated to the payment of any outstanding bonds; or 4. Return the excess to the County Auditor for redistribution to the respective taxing jurisdictions in proportion to their local tax rates. The EDA or City must spend or return the excess increments under paragraph (c) within nine months after the end of the year. In addition, the EDA or City may, subject to the limitations set forth herein, choose to modify the TIF Plan in order to finance additional public costs in Redevelopment Project No. 1 or the District. Subsection 2-22. Requirements for Agreements with the Developer The EDA or City will review any proposal for private development to determine its conformance with the Redevelopment Plan and with appli cable municipal ordinances and codes. To facilitate this effort, the EDA Meeting of January 17, 2012 (Item No. 7a) Subject: Establishment of the Oak Hill II Tax Increment Financing District Page 28 St. Louis Park Economic Development Authority Tax Increment Financing Plan for the Oak Hill II Tax Increment Financing District 2-13 following documents may be requested for review and approval: site plan, construction, mechanical, and electrical system drawings, landscaping plan, grading and storm drainage plan, signage system plan, and any other drawings or narrative deemed necessary by the EDA or City to demonstrate the conformance of the development with City plans and ordinances. The EDA or City may also use the Agreements to address other issues related to the development. Pursuant to M.S., Section 469.176, Subd. 5, no more than 10 percent, b y acreage, of the property to be acquired in the District as set forth in the TIF Plan shall at any time be owned by the EDA or City as a result of acquisition with the proceeds of bonds issued pursuant to M.S., Section 469.178 to which tax increments from property acquired is pledged, unless prior to acquisition in excess of 10 percent of the acreage, the EDA or City concluded an agreement for the development of the property acquired and which provides recourse for the EDA or City should the development not be completed. Subsection 2-23. Assessment Agreements Pursuant to M.S., Section 469.177, Subd. 8, the EDA or City may enter into a written assessment agreement in recordable form with the developer of property within the District which establishes a minimum market value of the land and completed improvements for the duration of the District. The assessment agreement shall be presented to the County Assessor who shall review the plans and specifications for the improvements to be constructed, review the market value previously assigned to the land upon which the improvements are to be constructed and, so long as the minimum market value contained in the assessment agreement appears, in the judgment of the assessor, to be a reasonable estimate, the County Assessor shall also certify the minimum market value agreement. Subsection 2-24. Administration of the District Administration of the District will be handled by the Economic Development Coordinator. Subsection 2-25. Annual Disclosure Requirements Pursuant to M.S., Section 469.175, Subds. 5, 6, and 6b the EDA or City must undertake financial reporting for all tax increment financing districts to the Office of the State Auditor, County Board and County Auditor on or before August 1 of each year. M.S., Section 469.175, Subd. 5 also provides that an annual statement shall be published in a newspaper of general circulation in the City on or before August 15. If the City fails to make a disclosure or submit a report containing the information required by M.S., Section 469.175 Subd. 5 and Subd. 6, the OSA will direct the County Auditor to withhold the distribution of tax increment from the District. Subsection 2-26. Reasonable Expectations As required by the TIF Act, in establishing the District, the determination has been made that the anticipated development would not reasonably be expected to o ccur solely through private investm ent within the reasonably foreseeable future and that the increased market value of the site that could reasonably be expected to occur without the use of tax increm ent financing would be less than the increase in the m arket value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the m aximum duration of the District perm itted by the TIF Plan. In m aking said determination, reliance has been placed upon written repr esentation made by the developer to such effects and upon EDA and City staff awareness of the feasibility of developing the project site(s) within the District. A comparative analysis of estimated market values both with and without establishment of the District and EDA Meeting of January 17, 2012 (Item No. 7a) Subject: Establishment of the Oak Hill II Tax Increment Financing District Page 29 St. Louis Park Economic Development Authority Tax Increment Financing Plan for the Oak Hill II Tax Increment Financing District 2-14 the use of tax increments has been performed as described above. Such analysis is included with the cashflow in Appendix D, and indicates that the increase in estimated market value of the proposed development (less the indicated subtractions) exceeds the estimated market value of the site absent the establishm ent of the District and the use of tax increments. Subsection 2-27. Other Limitations on the Use of Tax Increment 1. General Limitations. All revenue derived from tax increment shall be used in accordance with the TIF Plan. The revenues shall be used to finance, or otherwise pay the cost of redevelopm ent of the Redevelopment Project No. 1 pursuant to M.S., Sections 469.090 to 469.1082.Tax increments may not be used to circumvent existing levy limit law. No tax increment may be used for the acquisition, construction, renovation, operation, or maintenance of a building to be used primarily and regularly for conducting the business of a municipality, county, school district, or any other local unit of government or the state or federal government. This provision does not prohibit the use of revenues derived from tax increments for the construction or renovation of a parking structure. 2. Pooling Limitations. At least 80 percent of tax i ncrements from the District m ust be expended on activities in the District or to pay bonds, to the extent that the proceeds of the bonds were used to finance activities within said district or to pay, or secure payment of, debt service on credit enhanced bonds. Not more than 20 percent of said tax increments may be expended, through a development fund or otherwise, on activities outside of the District except to pay, or secure payment of, debt service on credit enhanced bonds. For purposes of applying this restriction, all administrative expenses must be treated as if they were solely for activities outside of the District. 3. Five Year Limitation on Commitment of Tax Increments. Tax increments derived from the District shall be deemed to have satisfied the 80 percent test set forth in paragraph (2) above only if the five year rule set forth in M.S., Section 469.1763, Subd. 3, has been satisfied; and b eginning with the sixth y ear following certification of the District, 80 percent of said tax increments that remain after expenditures permitted under said five year rule must be used only to pay previously committed expenditures or credit enhanced bonds as more fully set forth in M.S., Section 469.1763, Subd. 5. Subsection 2-28. Summary The St. Louis Park Economic Development Authority is establishing the District to preserve and enhance the tax base, and provide employment opportunities in the City. The TIF Plan for the District was prepared by Ehlers & Associates, Inc., 3060 Centre Pointe Drive, Roseville, Minnesota 55113-1105, telephone (651) 697- 8500. EDA Meeting of January 17, 2012 (Item No. 7a) Subject: Establishment of the Oak Hill II Tax Increment Financing District Page 30 Appendix A-1 Appendix A Project Description Newly-formed Anderson-KM Builders is currently operating from office locations in St. Louis Park and in Minneapolis. The full-service real estate development, design management, and construction company plans to build a new office facility and c onsolidate its operations there. The proposed office site is the property owned by former Anderson Builders at 3340 Republic Avenue. The proposed Oak Hill II office building will be approximately 21,450 SF and two stories. Oak Hill II will be an attractive brick structure designed to complement the original Oak Hill office building next door. Anderson-KM Builders will occupy approximately half the new building (6,001 SF of office and 4,715 SF of storage). The remaining 10,716 SF will be built out as office space and leased to one or more tenants. Oak Hill II will be marketed to general office users and specialty medical users given its proximity to Methodist Hospital. EDA Meeting of January 17, 2012 (Item No. 7a) Subject: Establishment of the Oak Hill II Tax Increment Financing District Page 31 Appendix B-1 Appendix B Maps of Redevelopment Project No. 1 and the District EDA Meeting of January 17, 2012 (Item No. 7a) Subject: Establishment of the Oak Hill II Tax Increment Financing District Page 32 EDA Meeting of January 17, 2012 (Item No. 7a) Subject: Establishment of the Oak Hill II Tax Increment Financing DistrictPage 33 EDA Meeting of January 17, 2012 (Item No. 7a) Subject: Establishment of the Oak Hill II Tax Increment Financing DistrictPage 34 Appendix C-1 Appendix C Description of Property to be Included in the District The District encompasses all property and adjacent right s-of-way and abutting roadways identified by the parcel listed below. Parcel Number Address Owner 17-117-21-42-0072 3340 Republic Ave.Oak Hill 7100, LLC EDA Meeting of January 17, 2012 (Item No. 7a) Subject: Establishment of the Oak Hill II Tax Increment Financing District Page 35 Appendix D-1 Appendix D Estimated Cash Flow for the District EDA Meeting of January 17, 2012 (Item No. 7a) Subject: Establishment of the Oak Hill II Tax Increment Financing District Page 36 12/16/2011Base Value Assumptions - Page 1Oak Hill IICity of St. Louis Park21,432 Sq/Ft OfficeASSUMPTIONS AND RATESDistrictType:Economic DevelopmentMaximum/Frozen Local Tax Rate: 131.176% Pay 2012 PrelimDistrict Name/Number:Current Local Tax Rate: (Use lesser of Current or Max.)131.176% Pay 2012 PrelimCounty District #:State-wide Tax Rate (Comm./Ind. only used for total taxes)52.0000% Pay 2012 PrelimFirst Year Construction or Inflation on Value2012Market Value Tax Rate (Used for total taxes)0.17684% Pay 2012 PrelimExisting District - Specify No. Years RemainingInflation Rate - Every Year:3.00%PROPERTY TAX CLASSES AND CLASS RATES:Interest Rate:5.00%Exempt Class Rate (Exempt)0.00%Present Value Date:1-Aug-12Commercial Industrial Preferred Class Rate (C/I Pref.)First Period Ending1-Feb-13First $150,0001.50%Tax Year District was Certified:Pay 2012Over $150,0002.00%Cashflow Assumes First Tax Increment For Development:2014Commercial Industrial Class Rate (C/I)2.00%Years of Tax Increment9Rental Housing Class Rate (Rental)1.25%Assumes Last Year of Tax Increment2022Affordable Rental Housing Class Rate (Aff. Rental)0.75%Fiscal Disparities Election [Outside (A), Inside (B), or NA]Inside(B)Non-Homestead Residential (Non-H Res.)1.25%Incremental or Total Fiscal DisparitiesIncrementalHomestead Residental Class Rate (Hmstd. Res.)Fiscal Disparities Contribution Ratio34.5021% Pay 2012 PrelimFirst $500,0001.00%Fiscal Disparities Metro-Wide Tax Rate141.9450% Pay 2012 PrelimOver $500,0001.25%Agricultural Non-Homestead1.00%PercentageTax Year Property CurrentClassAfterLandBuildingTotal Of Value Used Original Original Tax OriginalAfter ConversionMap # PIDOwner Address Market Value Market Value Market Value for District Market Value Market Value Class Tax Capacity Conversion Orig. Tax Cap. Area/Phase1711721420072 City3340 Republic Ave 700,0000700,000100% 700,000 Pay 2012 C/I Pref.13,250 C/I Pref.13,250 700,0000700,000700,000 13,25013,250Note:1. Base value is for pay 2012 based upon review of County website on 9-13-11.2. Development is located in SD #283 and WS #3 BASE VALUE INFORMATION (Original Tax Capacity)Prepared by Ehlers & Associates, Inc. - Estimates OnlyN:\Minnsota\St. Louis Park\Housing - Economic - Redevelopment\TIF\TIF Districts\Oak Hill II\TIF Runs\TIF Run - 12-6-11 -FINAL FOR TIF PLANEDA Meeting of January 17, 2012 (Item No. 7a) Subject: Establishment of the Oak Hill II Tax Increment Financing DistrictPage 37 12/16/2011Base Value Assumptions - Page 2Oak Hill IICity of St. Louis Park21,432 Sq/Ft OfficeEstimated Taxable Total Taxable PropertyPercentage Percentage Percentage Percentage First YearMarket Value Market Value TotalMarketTaxProject Project Tax Completed Completed Completed Completed Full TaxesArea/Phase New Use Per Sq. Ft./Unit Per Sq. Ft./Unit Sq. Ft./UnitsValueClass Tax CapacityCapacity/Unit 2012201320142015PayableOffice175175 21,432 3,750,600C/I75,012100% 100%100%100%2014TOTAL3,750,60075,012 Subtotal Residential000 Subtotal Commercial/Ind.21,432 3,750,60075,012 Note:1. Market values are based upon estimates from Assessor.Total Fiscal Local Local Fiscal State-wide MarketTax Disparities Tax PropertyDisparities PropertyValueTotal Taxes PerNew UseCapacityTax CapacityCapacityTaxesTaxes TaxesTaxesTaxes Sq. Ft./UnitOffice 75,012 25,881 49,13164,44836,736 39,0066,633 146,824 6.85TOTAL 75,012 25,881 49,13164,44836,736 39,0066,633 146,824Note: 1. Taxes and tax increment will vary signficantly from year to year depending upon values, rates, state law, fiscal disparities and other factors which cannot be predicted.2. If tax increment in received in 2013,then the district will be one year shorter.Total Property Taxes146,824less State-wide Taxes(39,006)less Fiscal Disp. Adj.(36,736)less Market Value Taxes(6,633)less Base Value Taxes(11,384)Annual Gross TIF 53,064 WHAT IS EXCLUDED FROM TIF?TAX CALCULATIONSPROJECT INFORMATION (Project Tax Capacity)Prepared by Ehlers & Associates, Inc. - Estimates OnlyN:\Minnsota\St. Louis Park\Housing - Economic - Redevelopment\TIF\TIF Districts\Oak Hill II\TIF Runs\TIF Run - 12-6-11 -FINAL FOR TIF PLANEDA Meeting of January 17, 2012 (Item No. 7a) Subject: Establishment of the Oak Hill II Tax Increment Financing DistrictPage 38 12/16/2011Tax Increment Cashflow - Page 3Oak Hill IICity of St. Louis Park21,432 Sq/Ft OfficeTAX INCREMENT CASH FLOWProject Original Fiscal CapturedLocalAnnual Semi-Annual StateAdmin. Semi-Annual Semi-Annual PERIOD% ofTaxTax Disparities TaxTax Gross Tax Gross Tax AuditoratNet Tax Present ENDING Tax PaymentOTC CapacityCapacityIncremental CapacityRate Increment Increment 0.36%10% IncrementValueYrs.YearDate- - - - 02/01/13- - - - 08/01/13- - - - 02/01/14100% 75,012 (13,250) (21,309) 40,453 131.176% 53,064 26,532 (96) (2,644) 23,793 21,555 0.5 2014 08/01/14100% 75,012 (13,250) (21,309) 40,453 131.176% 53,064 26,532 (96) (2,644) 23,793 42,585 1 2014 02/01/15100% 77,262 (13,250) (22,086) 41,927 131.176% 54,998 27,499 (99) (2,740) 24,660 63,849 1.5 2015 08/01/15100% 77,262 (13,250) (22,086) 41,927 131.176% 54,998 27,499 (99) (2,740) 24,660 84,595 2 2015 02/01/16100% 79,580 (13,250) (22,885) 43,445 131.176% 56,989 28,495 (103) (2,839) 25,553 105,567 2.5 2016 08/01/16100% 79,580 (13,250) (22,885) 43,445 131.176% 56,989 28,495 (103) (2,839) 25,553 126,028 3 2016 02/01/17100% 81,968 (13,250) (23,709) 45,009 131.176% 59,040 29,520 (106) (2,941) 26,473 146,708 3.5 2017 08/01/17100% 81,968 (13,250) (23,709) 45,009 131.176% 59,040 29,520 (106) (2,941) 26,473 166,884 4201702/01/18100% 84,427 (13,250) (24,557) 46,619 131.176% 61,153 30,577 (110) (3,047) 27,420 187,272 4.5 2018 08/01/18100% 84,427 (13,250) (24,557) 46,619 131.176% 61,153 30,577 (110) (3,047) 27,420 207,163 5 2018 02/01/19100% 86,959 (13,250) (25,431) 48,278 131.176% 63,329 31,665 (114) (3,155) 28,396 227,260 5.5 2019 08/01/19100% 86,959 (13,250) (25,431) 48,278 131.176% 63,329 31,665 (114) (3,155) 28,396 246,866 6 2019 02/01/20100% 89,568 (13,250) (26,331) 49,987 131.176% 65,571 32,785 (118) (3,267) 29,401 266,671 6.5 2020 08/01/20100% 89,568 (13,250) (26,331) 49,987 131.176% 65,571 32,785 (118) (3,267) 29,401 285,993 7 2020 02/01/21100% 92,255 (13,250) (27,258) 51,747 131.176% 67,879 33,940 (122) (3,382) 30,436 305,507 7.5 2021 08/01/21100% 92,255 (13,250) (27,258) 51,747 131.176% 67,879 33,940 (122) (3,382) 30,436 324,546 8 2021 02/01/22100% 95,023 (13,250) (28,213) 53,560 131.176% 70,257 35,129 (126) (3,500) 31,502 343,770 8.5 2022 08/01/22100% 95,023 (13,250) (28,213) 53,560 131.176% 70,257 35,129 (126) (3,500) 31,502 362,526 9 2022 02/01/23 Total552,282 (1,988) (55,029) 495,264 Present Value From 08/01/2012 Present Value Rate 5.00%404,262 (1,455) (40,281) 362,526 Prepared by Ehlers & Associates, Inc. - Estimates OnlyN:\Minnsota\St. Louis Park\Housing - Economic - Redevelopment\TIF\TIF Districts\Oak Hill II\TIF Runs\TIF Run - 12-6-11 -FINAL FOR TIF PLANEDA Meeting of January 17, 2012 (Item No. 7a) Subject: Establishment of the Oak Hill II Tax Increment Financing DistrictPage 39 Appendix E-1 Appendix E Minnesota Business Assistance Form (Minnesota Department of Employment and Economic Development) A Minnesota Business Assistance Form (MBAF) should be used to report and/or update each calendar year's activity by April 1 of the following year. Please see the Minnesota Dep artment of Employment and Economic Development (DEED) website at http://www.deed.state.mn.us/Community/subsidies/MBAFForm.htm for information and forms. EDA Meeting of January 17, 2012 (Item No. 7a) Subject: Establishment of the Oak Hill II Tax Increment Financing District Page 40 Appendix F-1 Appendix F Findings Including But/For Qualifications The reasons and facts supporting the findings for the adoption of the Tax Increment Financing Plan for Oak Hill II Tax Increment Financing District as required pursuant to M.S., Section 469.175, Subd. 3 are as follows: 1. Finding that the Oak Hill II Tax Increment Financing District is an economic development district as defined in M.S., Section 469.174, Subd. 12. Oak Hill II Tax Increment Financing District is a contiguous geographic area within the City's Redevelopment Project No. 1, delineated in th e TIF Plan, for the purpose of financing econom ic development in the City through the use of tax increment. The District is in the public interest because it will facilitate construction of an approximately 21,400 square foot office facility which will increase employment in the state, and preserve and enhance the tax base of the state. Furthermore, the assistance being provided meets the requirements for assistance under M.S. Section 469.176, subd. 4c(d) of the Act, because: • The private development to be assisted pursuant to the TIF Plan will create or retain jobs in the state, including construction jobs; • the development consists of c onstruction of an approximately 21,400 square foot office facility in the City, and construction will commence no later than July 1, 2012; • construction of the proposed development would not have commenced before July 1, 2012, without the tax increment financing assistance to be provided pursuant to the TIF Plan; and • the City will file the request for certification of the District by June 30, 2012. 2. Finding that the proposed development, in the opinion of the City Council, would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future and that the increased market value of the site that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in the market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of the Oak Hill II Tax Increment Financing District permitted by the TIF Plan. The proposed development, in the opinion of the City, would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future: This finding is supported by the fact that for several years the redeveloper has desired to build an office facility on this site that meets the City's objectives for economic development, but has previously been unable to obtain financing for the project. The location of the proposed development presents several geographic challenges, which elevate costs of construction. The redeveloper has provided the City with a pro forma and other evidence that without assistance, the redeveloper would be unable to construct the proposed development. The increased market value of the site that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of the TIF District permitted by the TIF Plan: The City supported this finding on the grounds that the cost of construction, the difficulty in obtaining financing in today's credit market, and the fact that 50% of the building will be built without a tenant make it unlikely that an office building will be constructed in the next 9 years without public assistance of som e kind. The City further determines that these sam e challenges suggest that no other development of similar scope could reasonably be expected to occur on this site without similar assistance being provided to the development. EDA Meeting of January 17, 2012 (Item No. 7a) Subject: Establishment of the Oak Hill II Tax Increment Financing District Page 41 Appendix F-2 Therefore, the City concludes as follows: a. The City's estimate of the amount by which the market value of th e entire District will increase without the use of tax increment financing is $0. b. If the proposed development occurs, the total increase in market value will be $3,050,600 (see Appendix D and the table below) c. The present value of tax increm ents from the District for th e maximum duration of the district permitted by the TIF Plan is estimated to be $404,262 (see Appendix D and the table below). d. Even if some development other than the proposed development were to occur, the Council finds that no alternative would occur that would produce a market value increase greater than $2,646,338 (the amount in clause b less the am ount in clause c) wit hout tax increment assistance. But-For Analysis Current Market Value 700,000 New Market Value - Estimate 3,750,600 Difference 3,050,600 Present Value of Tax Increment 404,262 Difference 2,646,338 Value Likely to Occur Without TIF is Less Than: 2,646,338 3. Finding that the TIF Plan for the Oak Hill II Tax Increment Financing District conforms to the general plan for the development or redevelopment of the municipality as a whole. The Planning Commission reviewed the TIF Plan and found that the TIF Plan conform s to the general development plan of the City. 4. Finding that the Tax Increment Financing Plan for Oak Hill II Tax Increment Financing District will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the development of Redevelopment Project No. 1 by private enterprise. The project to be assisted by the District will result in increased employment in the City and the State of Minnesota, increased tax base of the State, and the developm ent of currently vacant and underutilized land by a private business. EDA Meeting of January 17, 2012 (Item No. 7a) Subject: Establishment of the Oak Hill II Tax Increment Financing District Page 42 Meeting Date: January 17, 2012 Agenda Item #: 3a UNOFFICIAL MINUTES SPECIAL CITY COUNCIL MEETING ST. LOUIS PARK, MINNESOTA JANUARY 3, 2012 1. Call to Order Mayor Jacobs convened the meeting at 6:35 p.m. Councilmembers present: Mayor Jeff Jacobs, Phil Finkelstein, Anne Mavity, Paul Omodt, Susan Sanger, and Sue Santa. Councilmember absent: Julia Ross. Staff present: City Manager (Mr. Harmening), Director of Community Development (Mr. Locke), City Attorney (Mr. Scott). 1a. Roll Call 2. Freight Rail Relocation Project - Closed Executive Session The City Council met in closed executive session with the City Attorney to discuss pending litigation relating to the City’s appeal of Mn/DOT’s negative declaration regarding the need for an Environmental Impact Statement for the MN&S Freight Rail Relocation Project. 3. Freight Rail Relocation Project It was moved by Councilmember Finkelstein, seconded by Councilmember Santa, to direct the City Attorney to affirmatively dismiss the E.A.W.’s appeal of the lawsuit. The motion passed 4-2 (Councilmembers Omodt and Sanger opposed; Councilmember Ross absent). 4. Adjournment The meeting adjourned at 7:10 p.m. ______________________________________ ______________________________________ Nancy Stroth, City Clerk Jeff Jacobs, Mayor Meeting Date: January 17, 2012 Agenda Item #: 3b UNOFFICIAL MINUTES CITY COUNCIL MEETING ST. LOUIS PARK, MINNESOTA JANUARY 3, 2012 1. Call to Order Mayor Jacobs called the meeting to order at 7:30 p.m. Councilmembers present: Mayor Jeff Jacobs, Steve Hallfin, Anne Mavity, Susan Sanger, Sue Santa, and Jake Spano. Councilmember absent: Julia Ross. Staff present: City Manager (Mr. Harmening), City Attorney (Mr. Scott), Director of Community Development (Mr. Locke), Communications Coordinator (Mr. Zwilling), and Recording Secretary (Ms. Hughes). 1a. Elected Officials Oath of Office Judge Allen Oleisky performed the swearing in of the following elected officials of the City of St. Louis Park for four year terms commencing January 3, 2012: Jeffrey Jacobs – Mayor Steve Hallfin – Councilmember At Large A Jack Spano – Councilmember At Large B 1b. Pledge of Allegiance 1c. Roll Call 2. Presentations - None 3. Approval of Minutes 3a. Study Session Meeting Minutes December 12, 2011 Councilmember Mavity requested that a paragraph be added after the eighth paragraph on page 4 that states “It was the consensus of the City Council to pursue improvements at the Beltline crossing that include (1) making crossing rules at this location consistent with those at the Wooddale crossing, (2) creating or painting a pedestrian crosswalk at this location, and (3) exploring the feasibility of additional safety features at this location including a raised crosswalk and HAWK signaling.” The minutes were approved as amended. 3b. Special City Council Meeting/Closed Executive Session Minutes December 19, 2011 The minutes were approved as presented. City Council Meeting of January 17, 2012 (Item No. 3b) Page 2 Subject: City Council Meeting Minutes of January 3, 2012 3c. City Council Meeting Minutes December 19, 2011 The minutes were approved as presented. 4. Approval of Agenda and Items on Consent Calendar NOTE: The Consent Calendar lists those items of business which are considered to be routine and/or which need no discussion. Consent items are acted upon by one motion. If discussion is desired by either a Councilmember or a member of the audience, that item may be moved to an appropriate section of the regular agenda for discussion. 4a. Adopt Resolution No. 12-001 declaring 2012 City Council Meeting Dates. 4b. Approve Resolution No. 12-002 designating the St. Louis Park Sun Sailor as the City’s Official Newspaper for year 2012. 4c. Designate Magne y Construction, Inc. the lowest responsible bidder and authorize execution of a contract with the firm in the amount of $708,000.00 for Water Project – Water Treatment Plant No. 6 – Project No. 2010-1300. 4d. Adopt Resolution No. 12-003 authorizing execution of an Agenc y Agreement with the Minnesota Department of Transportation providing for the Commissioner of Transportation to act as the City’s agent in accepting federal aid funds for transportation related projects. 4e. Approve for filing Telecommunications Advisory Commission Minutes October 6, 2011. 4f. Approve for filing Parks & Recreation Advisory Commission Minutes October 19, 2011. 4g. Approve for filing Vendor Claims. It was moved by Councilmember Mavity, seconded by Councilmember Santa, to approve the Agenda and items listed on the Consent Calendar; and to waive reading of all resolutions and ordinances. The motion passed 6-0 (Councilmember Ross absent). 5. Boards and Commissions - None 6. Public Hearings - None 7. Requests, Petitions, and Communications from the Public – None 8. Resolutions, Ordinances, Motions and Discussion Items 8a. Designating 2012 Mayor Pro Tem Resolution No. 12-004 It was moved by Councilmember Mavity, seconded by Councilmember Santa, to adopt Resolution No. 12-004 Appointing Susan Sanger to the Office of Mayor Pro Tem for the Year 2012. The motion passed 6-0 (Councilmember Ross absent). City Council Meeting of January 17, 2012 (Item No. 3b) Page 3 Subject: City Council Meeting Minutes of January 3, 2012 8b. Second Reading of Zoning Ordinance Amendment for Variances. Ordinance No. 2409-12 Mr. Locke presented the staff report and explained that at the First Reading of the proposed amendments, Council requested that staff work with the City Attorney to clarify Section (3)(a). He advised that it was determined that the language contained in the First Reading should not be amended because it reflects precisely what is contained in the State Statute. He added that Council’s concern was the proposed amendment would vary uses and the kinds of activities that could happen in a given zone, but as the City Attorney pointed out, there is language in State law as well as the City’s Ordinance that specifically states this cannot be done. Councilmember Mavity asked if all of the conditions outlined in subparagraphs (a), (b), (c), and (d) in each of Sections (3) and (4) must be met before granting a variance request or whether an applicant need only meet one condition in order to be granted a variance. Mr. Scott advised that all of the conditions outlined in subparagraphs (a) (b), (c), and (d) in each of Sections (3) and (4) must be met before granting a variance request. He stated that the word “and” should be added at the end of subparagraphs in each of these sections to make it clear that all these conditions must be met. He added that Council can approve the Second Reading with direction to staff to revise subparagraphs (a) (b), (c), and (d) in both Sections (3) and (4) by adding semicolons and the word “and”. It was moved by Councilmember Sanger, seconded by Councilmember Santa, to adopt Second Reading of Ordinance No. 2409-12 Amending the St. Louis Park Ordinance Code Relating to Zoning by Amending Sections 36-4 Definitions and 36-33(d) Variances and to direct staff to revise subparagraphs (a) (b), (c), and (d) in both Sections (3) and (4) by adding semicolons and the word “and” at the end of each subparagraph. The motion passed 6-0 (Councilmember Ross absent). 9. Communications Mayor Jacobs welcomed Councilmembers Steve Hallfin and Jake Spano. Councilmember Santa reminded residents of the Vision Community Check-in on Thursday, January 12th, from 6:00-9:00 p.m. taking place in Council Chambers and encouraged everyone interested to take part in the meeting. Councilmember Hallfin stated he visited Jack Jablonski, the Benilde-St. Margaret’s hockey player who was injured on Friday night. He indicated that a gentleman who suffered a similar injury 12 years ago also visited with Jack and is able to walk and went on to play college hockey, and this lifted the spirits of everyone. 10. Adjournment The meeting adjourned at 7:45 p.m. ______________________________________ ______________________________________ Nancy Stroth, City Clerk Jeff Jacobs, Mayor Meeting Date: January 17, 2012 Agenda Item #: 4a Regular Meeting Public Hearing Action Item Consent Item Resolution Ordinance Presentation Other: EDA Meeting Action Item Resolution Other: Study Session Discussion Item Written Report Other: TITLE: Ordinance Vacating a Landscaping Easement (Second Reading). RECOMMENDED ACTIONS: Motion to waive second reading, Adopt Ordinance vacating a landscaping easement, and approve the summary ordinance for publication. POLICY CONSIDERATION: Is there a need to maintain the easement? BACKGROUND: Bader Development requests vacation of a landscaping easement to accommodate the Ellipse II on Excelsior (e2) development plan. Easement vacations are approved by ordinance. The City Council held a public hearing and the first reading of the ordinance on December 19, 2011. The City acquired an easement for landscaping purposes on the property at 3924 Excelsior Boulevard in 1997 as part of the Excelsior Boulevard streetscape improvements. The easement is 8 feet wide and 54 feet long and lies between the sidewalk and the parking lot. A raised planter lies within the easement and helps buffer the parking lot from the sidewalk. The easement gives the City the right to maintain the landscaping. The St. Louis Park Economic Development Authority now owns the property, so the easement is not currently necessary for the City to access the property. The proposed Ellipse II on Excelsior (e2) redevelopment will change the character of the site, screen surface parking from the street, place building entrances close to the sidewalk, and provide privately maintained landscaping between the building and sidewalk. With construction of the e2 project the landscaping easement is no longer needed. FINANCIAL OR BUDGET CONSIDERATION: Not applicable. VISION CONSIDERATION: Not applicable. City Council Meeting of January 17, 2012 (Item No. 4a) Page 2 Subject: Ordinance Vacating a Landscaping Easement (Second Reading) Attachments: Ordinance and Summary for Publication Prepared by: Sean Walther, Senior Planner Reviewed by: Meg McMonigal, Planning & Zoning Supervisor Kevin Locke, Community Development Director Approved by: Tom Harmening, City Manager City Council Meeting of January 17, 2012 (Item No. 4a) Page 3 Subject: Ordinance Vacating a Landscaping Easement (Second Reading) ORDINANCE NO.____-12 AN ORDINANCE VACATING LANDSCAPING EASEMENT 3924 Excelsior Boulevard THE CITY OF ST. LOUIS PARK DOES ORDAIN: Section 1. A petition in writing signed by a majority of all of the owners of all property abutting upon both sides of the landscaping easement proposed to be vacated has been duly filed. The notice of said petition has been published in the St. Louis Park Sailor on December 8, 2011 and the City Council has conducted a public hearing upon said petition and has determined that the easement is not needed for public purposes, and that it is for the best interest of the public that said easement be vacated. Section 2. The following described landscaping easement as now dedicated and laid out within the corporate limits of the City of St. Louis Park, is vacated: That particular perpetual easement for landscaping purposes originally dedicated in Document Number 6743421, Office of the County Recorder, Hennepin County, Minnesota, and now to be vacated, described as follows: A strip of land 8.00 feet in width over that part of the following described tract of land, the Southeasterly line of which is a line drawn parallel with and distant 52.00 feet Northwesterly of the centerline of Excelsior Ave., as delineated on the plat of “Minikahda Oaks, Hennepin County, Minnesota,” said tract being described as follows: That part of the Northeast Quarter of the Southeast Quarter of Section 6, Township 28, Range 24 described as commencing at the intersection of the southwesterly line of the plat of MINIKAHDA OAKS, HENNEPIN COUNTY, MINNESOTA” with a line drawn parallel with and 50 feet northwesterly from the centerline of Excelsior Ave., as delineated on said plat; thence southwesterly parallel with said centerline and its southwesterly extension 170 feet to the actual point of beginning; thence continuing southwesterly along said parallel line 166.30 feet; thence northwesterly at right angles 190 feet; thence northeasterly at right angles 166.30 feet; thence southeasterly at right angles to the point of beginning. Said strip of land is to extend by its full width from a line drawn parallel with and distant 44.77 feet Northeasterly of the Southwesterly line of the above described tract of land to a line drawn parallel with and distant 90.77 feet Northeasterly of said Southwesterly line of the above described tract. City Council Meeting of January 17, 2012 (Item No. 4a) Page 4 Subject: Ordinance Vacating a Landscaping Easement (Second Reading) reserving, however, to the City of St. Louis Park any and all easements that may exist in, over, and across the described property for storm sewer, sanitary sewer, water main, and public utility purposes. Section 3. The City Clerk is instructed to record certified copies of this ordinance in the Office of the Hennepin County Register of Deeds or Registrar of Titles as the case may be. Sec.4. This Ordinance shall take effect fifteen days after its publication. Reviewed for Administration Adopted by the City Council January 17, 2011 City Manager Mayor Attest: Approved as to Form and Execution: City Clerk City Attorney First Reading December 19, 2011 Second Reading January 17, 2012 Date of Publication January 26, 2012 Date Ordinance takes effect February 10, 2012 City Council Meeting of January 17, 2012 (Item No. 4a) Page 5 Subject: Ordinance Vacating a Landscaping Easement (Second Reading) SUMMARY ORDINANCE NO.____-12 AN ORDINANCE VACATING A LANDSCAPING EASEMENT ELLIPSE II ON EXCELSIOR This ordinance states that a landscaping easement will be vacated for the Ellipse II on Excelsior redevelopment. This ordinance shall take effect 15 days after publication. Adopted by the City Council January 17, 2012 Jeffrey W. Jacobs /s/ Mayor A copy of the full text of this ordinance is available for inspection with the City Clerk. Published in St. Louis Park Sailor: January 26, 2012 Meeting Date: January 17, 2012 Agenda Item #: 4b Regular Meeting Public Hearing Action Item Consent Item Resolution Ordinance Presentation Other: EDA Meeting Action Item Resolution Other: Study Session Discussion Item Written Report Other: TITLE: Fretham Twelfth Addition – Final Plat. RECOMMENDED ACTION: Motion to Adopt Resolution approving the Final Plat for six single-family lots known as Fretham Twelfth Addition. POLICY CONSIDERATION: Is the Final Plat consistent with the Preliminary Plat and conditions of approval? BACKGROUND: Comprehensive Plan: Low Density Residential Zoning: R-1 Single Family Residential Description of Request: Requested is approval of the Final Plat to allow for the subdivision of two lots at 8910 and 8920 Minnetonka Blvd into six (6) new lots. Four lots would be serviced by Ensign Ave, and two lots would share an access to Minnetonka Blvd. Background: The proposed subdivision involves two existing lots of 53,748 square feet and 22,691 square feet for a total of 76,435 square feet (approximately 1.75 acres). The lots would be subdivided into six lots ranging from 9,356 square feet to 14,480 square feet in size. Each proposed lot exceeds the minimum lot size of 9,000 square feet and the minimum lot width requirements in the R-1 Zoning District. The minimum lot width requirement in the R-1 Zoning District is 75 feet measured at the front yard setback; for corner lots, the minimum width is 85 feet. The lots meet, or exceed, the minimum lot width requirements. Location: The proposed subdivision is located north of Minnetonka Blvd in the western part of the City, and is fully within the Cobblecrest neighborhood. City Council Meeting of January 17, 2012 (Item No. 4b) Page 2 Subject: Fretham Twelfth Addition – Final Plat Public Process: The applicant held a neighborhood meeting on Tuesday, September 13, 2011. A public hearing was held at the Planning Commission on September 21, 2011. The Planning Commission recommended unanimously (4-0) approving the preliminary plat with conditions. The City Council approved the preliminary plat on November 21, 2011 with conditions. The conditions approved by the Council have been attached as recommended conditions of the final plat. On January 4, 2012, the Planning Commission recommended unanimously (6-0) approving the final plat with conditions. Subdivision Analysis The proposed final plat meets the conditions required by the preliminary plat approval, and of the general requirements of the Zoning Ordinance related to minimum required lot size (9,000 square feet), and minimum required lot width (75 feet for interior lot, 85 feet for corner lots). However, other issues addressed in the application are reviewed below. Lot Lot Area Lot Width Lot Depth 1 14,480 sf 75 ft 145 ft 2 14,279 sf 75 ft 205 ft 3 12,595 sf 75 ft 170 ft 4 11,144 sf 86 ft 132 ft 5 9,103 sf 79 ft 121 ft 6 9,850 sf 100 ft 135 ft Lot 1 A condition of preliminary plat approval is that Lot 1 shall have a minimum side yard setback of 7.5 feet along the west property line, and that it shall not have a walk-out basement. This condition is included in the recommendation for final plat approval. Street Access: Lots 1-3 are proposed to front on Ensign Ave. Lots 4-6 are proposed to front on Minnetonka Blvd. As conditions of the final plat, Lot 4 will be required to have a driveway access to Ensign Ave only, and Lots 5 and 6 will be required to have a shared driveway access to Minnetonka Blvd. Street Dedication: The final plat shows an additional seven foot right-of-way dedication to Minnetonka Blvd. Sidewalk: The Subdivision Ordinance requires the construction of a sidewalk along public streets included in the subdivision. Construction of sidewalks are included as a condition of approval of the final plat. City Council Meeting of January 17, 2012 (Item No. 4b) Page 3 Subject: Fretham Twelfth Addition – Final Plat Tree Replacement & Landscaping: Tree Removal Summary There are 33 significant trees totaling 506 caliper inches on the site. 12 significant trees will be removed totaling 212 caliper inches. 70 caliper inches of trees are required by city code to be replanted. The applicant is proposing to plant the required trees in the following manner: • Along Minnetonka Blvd to provide screening from the road. • One boulevard tree will be planted in the front yard of each lot as required by city code. • Along the east property line to provide screening between the subdivision and the existing lot to the east and to provide vegetation around the storm water pond to enhance the aesthetics. Drainage and Utility Easements: The final plat shows all required drainage and utility easements. Stormwater Management: Conditions of approval are included to require all necessary city and watershed permits for stormwater management and erosion control. Park Dedication / Trail dedication: A condition of approval is included in the final plat for payment of park and trail dedication in the following amounts: • Park dedication: $9,000 • Trail dedication: $1,350 Recommendation: The Planning Commission and staff determined that the final plat meets the conditions of approval of the preliminary plat, and the requirements of the Subdivision and Zoning Ordinance requirements for the R-1 Zoning District, and therefore, recommend the City Council adopt a Resolution approving the final plat of Fretham 12th Addition with conditions. Attachments: Final Plat Draft Resolution Excerpt of Unofficial Planning Commission Minutes Prepared by: Gary Morrison, Assistant Zoning Administrator Reviewed by: Meg McMonigal, Planning and Zoning Supervisor Kevin Locke, Community Development Director Approved by: Tom Harmening, City Manager City Council Meeting of January 17, 2012 (Item No. 4b) Page 4 Subject: Fretham Twelfth Addition – Final Plat Final Plat City Council Meeting of January 17, 2012 (Item No. 4b) Page 5 Subject: Fretham Twelfth Addition – Final Plat Expanded View of Final Plat City Council Meeting of January 17, 2012 (Item No. 4b) Page 6 Subject: Fretham Twelfth Addition – Final Plat RESOLUTION NO. 12-____ RESOLUTION GIVING APPROVAL FOR FINAL PLAT OF FRETHAM TWELFTH ADDITION BE IT RESOLVED BY the City Council of St. Louis Park: Findings 1. Lakewest Development Company, LLC, owner and subdivider of the land proposed to be platted as Fretham Twelfth Addition has submitted an application for approval of final plat of said subdivision in the manner required for platting of land under the St. Louis Park Ordinance Code, and all proceedings have been duly had thereunder. 2. The proposed final plat has been found to be in all respects consistent with the City Plan and the regulations and requirements of the laws of the State of Minnesota and the ordinances of the City of St. Louis Park. 3. The proposed plat is situated upon the following described lands in Hennepin County, Minnesota, to-wit: That part of Section 18, Township 117, Range 21, Hennepin County, Minnesota described as follows: commencing on the North line of said Section 18, at a point 920.53 feet West of the North Quarter corner of said section; thence deflecting left 47 degrees, 11 minutes a distance of 54.55 feet in the Southwesterly direction, thence deflecting left 82 degrees a distance of 288.36 feet to the Northerly line of Minnetonka Boulevard as the same is laid out and traveled; thence deflecting right 120 degrees 05 minutes a distance of 109.79 feet along said Northerly line; thence deflecting right 59 degrees 55 minutes a distance of 362.49 feet to a point in the North line of said Section 18; thence deflecting to the right 120 degrees 11 minutes a distance of 192.30 feet along said North line to the point of beginning. Also that part of Section 7, Township 117, Range 21, described as follows: Commencing on the South line of said Section 7 at a point 920.53 feet West of the South Quarter corner of said section; thence deflecting right 132 degrees 49 minutes a distance of 97.33 feet in the Northeasterly direction; thence deflecting left 129 degrees 13 minutes a distance of 72.50 feet; thence deflecting right 36 degrees 24 minutes a distance of 60 feet; thence deflecting left 6 degrees 03 minutes a distance of 170 feet; thence deflecting left 73 degrees 08 minutes a distance of 131.82 feet; thence deflecting left 90 degrees a distance of 162.72 feet to the South line of said Section 7; thence deflecting left 50 degrees 49 minutes along said South line 192.30 feet to the point of beginning, which lies Southeasterly of the Southeasterly boundary line of the following described tract: All that part of Section 7, and Section 18, Township 117, Range 21, described as follows: Commencing on the South line of said Section 7, and Section 18, Township 117, Range 21, described as follows: Commencing on the South line of said Section 7 at a point 920.53 feet West of the South Quarter corner of said City Council Meeting of January 17, 2012 (Item No. 4b) Page 7 Subject: Fretham Twelfth Addition – Final Plat section; thence deflecting right 132 degrees and 49 minutes a distance of 97.33 feet in a Northeasterly direction; thence deflecting left 129 degrees and 13 minutes a distance of 72.50 feet; thence deflecting right 36 degrees and 24 minutes a distance of 60.0 feet; thence deflecting left 6 degrees and 03 minutes a distance of 51.85 feet; which is the actual point of beginning of the land to be described, thence continuing Northwesterly on last described line 118.15 feet; thence deflecting left 73 degrees and 08 minutes a distance of 131.82 feet; thence deflecting left 90 degrees a distance of 162.72 feet to the South line of said Section 7; thence continuing in Southeasterly direction along last described line 12.0 feet; thence Northeasterly in a straight line 177.5 feet more or less to the point of beginning. and That part of the Northeast Quarter of the Northwest Quarter (NE ¼ of NW ¼) of Section 18, Township 117, Range 21, Hennepin County, Minnesota, described as follows: Commencing at a point in the North line of Minnetonka Boulevard as the same is located and travelled across said NE ¼ of NW ¼, which point is 388.7 feet West at right angles from the East line of the Southwest Quarter of Section, Township 117, Range 21, produced South; thence Southwesterly along said Northerly line of Minnetonka Boulevard 509.79 feet to point of beginning of the parcel of land to be described; thence Southwesterly along said North line continued 181.16 feet; thence right 98 degrees 08 minutes parallel to the West line of said NE ¼ of NW ¼ of said Section 18, a distance of 253.2 feet; thence in a direct line 289.50 feet to point of beginning; said direct line making an angle of 59 degrees 55 minutes with the Northerly line of Minnetonka Boulevard. Conclusion 1. The proposed final plat of Fretham Twelfth Addition is hereby approved and accepted by the City as being in accord and conformity with all ordinances, City plans and regulations of the City of St. Louis Park and the laws of the State of Minnesota, provided, however, that this approval is made subject to the opinion of the City Attorney and Certification by the City Clerk subject to the following conditions: a. All conditions for stormwater management shall be met. The pond shall be shaped in a natural manner, and include landscaping. b. The stormwater catch basin located at the north end of the Ensign Ave S cul-de- sac shall be replaced by the applicant as required by the City Engineering Department. c. Prior to starting any site work, the following conditions shall be met: i. Assent form and official exhibits must be signed by the applicant and owner. ii. All necessary permits must be obtained. iii. All Minnehaha Creek Watershed Management permits must be issued. iv. A minimum three foot tall orange construction fence shall be installed along the top edge of the slope to protect the slope and vegetation. The fence shall remain during the construction of the subdivision, and may be removed from a lot after a house is constructed on the lot. d. The applicant shall comply with the following conditions during construction: City Council Meeting of January 17, 2012 (Item No. 4b) Page 8 Subject: Fretham Twelfth Addition – Final Plat i. All City noise ordinances shall be complied with, including that there be no construction activity between the hours of 10:00 PM and 7:00 AM. ii. Loud equipment shall be kept as far as possible from residences at all times. iii. The site shall be kept free of dust and debris that could blow onto neighboring properties. iv. Public streets shall be maintained free of dirt and shall be cleaned as necessary. v. The Zoning Administrator may impose additional conditions if it becomes necessary in order to mitigate the impact of excavation on surrounding properties. e. Lot 1 shall have a minimum side yard setback of 7.5 feet along the west property line. f. Lot 1 shall not have a walk-out basement. g. Lot 4 shall have a driveway access to Ensign Ave S only. h. Lots 5 and 6 shall have a shared driveway access. i. Lots 1 and 2 shall have a drainage and utility easement that extends over the entire slope, and encompasses the existing power line. j. The pond shall be planted with water tolerant grasses, shrubs and trees. k. All electrical and phone utilities servicing the new homes are to be placed underground. l. Sidewalks shall be installed along Minnetonka Blvd and Ensign Ave per City Engineer’s requirements. m. Park dedication fees must be received by the City prior to filing a final plat. n. Trail dedication fees must be received by the City prior to filing a final plat. o. Applicant shall submit financial security in the form of a cash escrow or letter of credit in the amount of $1,000 to insure that a signed Mylar copy of the final plat is provided to the City. p. Applicant shall submit a financial security in the form of cash escrow or letter of credit in the amount of 125% of the costs of tree replacement, public improvements, landscaping, repair/cleaning of public streets and utilities, and to guarantee the provision of as-built drawings for all new public infrastructure to the City. q. The applicant shall pay an administrative fine of $750 per violation of any condition of this approval. 2. The City Clerk is hereby directed to supply two certified copies of this Resolution to the above-named owner and subdivider, who is the applicant herein. 3. The Mayor and City Manager are hereby authorized to execute all contracts required herein, and the City Clerk is hereby directed to execute the certificate of approval on behalf of the City Council upon the said plat when all of the conditions set forth in Paragraph No. 1 above and the St. Louis Park Ordinance Code have been fulfilled. 4. Such execution of the certificate upon said plat by the City Clerk, as required under Section 26-123(1)j of the St. Louis Park Ordinance Code, shall be conclusive showing of proper compliance therewith by the subdivider and City officials charged with duties above described and shall entitle such plat to be placed on record forthwith without further formality. City Council Meeting of January 17, 2012 (Item No. 4b) Page 9 Subject: Fretham Twelfth Addition – Final Plat The City Clerk is instructed to record certified copies of this resolution in the Office of the Hennepin County Register of Deeds or Registrar of Titles as the case may be. Reviewed for Administration: Adopted by the City Council January 17, 2012 City Manager Mayor Attest: City Clerk City Council Meeting of January 17, 2012 (Item No. 4b) Page 10 Subject: Fretham Twelfth Addition – Final Plat Excerpt of Unofficial Planning Commission Minutes January 4, 2012 B. Final Plat Fretham Twelfth Addition Location: 8910 and 8920 Minnetonka Boulevard Applicant: Lakewest Development Case No.: 11-18-S Gary Morrison, Assistant Zoning Administrator, presented the staff report. He said the final plat is virtually identical to the preliminary plat which was approved by the City Council on November 21, 2011. The only change is the size of the easement which lies across the back half of Lots 1 and 2. A condition of approval of the preliminary plat was that the easement encompasses the entire slope along the back half of those lots. That change is reflected on the final plat. Mr. Morrison noted that all other conditions of approval of the preliminary plat have been incorporated into the final plat approval. Commissioner Kramer asked for details about the walk-out basement. Mr. Morrison responded that there is about a 30 ft. grade change from the lake up to the house. If they had to excavate for a walk-out basement it would cut into that slope, and erosion would become a concern. It was decided it would best to keep it as a standard basement and not interfere with the slope at all. Commissioner Carper spoke about the location map on page 6 saying on the west side the lot lines appear to continue into the lake as if the property owner does have ownership of the lake bed at that area. Nothing similar to that appears on the east side of the lake. Mr. Morrison said that the existing parcel does extend a little out into the lake so it’s property lines are defined as shown on the plat. The parcel that is in the lake is actually a separate parcel from the final plat. There was some discussion about whether there should be a meandering property line along the shore of the lake as opposed to platting out the small section that juts out into the lake. He added that it is pretty normal for lake property to be platted out into the lake. It doesn’t mean anything substantial. DNR still has jurisdiction over it. Commissioner Morris made a motion recommending approval of the Final Plat, subject to conditions included by staff. Commissioner Robertson seconded the motion, and the motion passed on a vote of 6-0. Date: January 17, 2012 Agenda Item #: 4c Regular Meeting Public Hearing Action Item Consent Item Resolution Ordinance Presentation Other: EDA Meeting Action Item Resolution Other: Study Session Discussion Item Written Report Other: TITLE: Project Administration – Fire Stations Replacement (Project Nos. 2008-3001 and 2008-3002). RECOMMENDED ACTION: Motion to grant the City Manager authority to administratively approve work extras (change orders and minor extra work) for an additional $100,000 limit for City Projects 2008-3001 and 2008-3002 (Fire Stations Replacement), in accordance with the City Council’s existing policy. POLICY CONSIDERATION: Does the City Council wish to grant the City Manager the change order authority requested? The project will continue to be administered in accordance with the City’s existing policy. BACKGROUND: The overall Fire Stations construction is now 74% complete. The project is currently on schedule and on budget. The Fire Department will likely move operations into the new Fire Station No. 2 building (near Cedar Lake Road/Louisiana Ave.) the first week of February and the new Fire Station No. 1 building (Wooddale Ave. /Oxford St.) in March. The project will be substantially complete in May 2012. A more detailed written report to City Council on the work schedule and budget was provided on December 12, 2011. The City Charter states that the City Manager is the chief purchasing agent of the City and is allowed to approve and execute contracts in compliance with State Law. The City’s internal procedure/policy allows the City Manager to approve general purchasing up to a cumulative maximum of $100,000. In the event the $100,000 amount is exceeded, City Council approval is required. The City Manager is authorized to approve change orders on contracts up to a cumulative total of $100,000. On September 19, 2011, the City Council approved an increase in the City Manager’s authority for the Fire Stations project from $100,000 to $200,000. Staff requests the City Council give the City Manager authority to administratively approve up to an additional $100,000 (for a total of $300,000) in order to expedite pending change orders. Fire Station change orders costs to date: Approved: $138,263 Pending: $161,316 Total: $299,579 Change order costs are paid from the contingency budget, which will still have $278,771 remaining if all the pending costs above are approved. City Council Meeting of January 17, 2012 (Item No. 4c) Page 2 Subject: Project Administration – Fire Stations Replacement (Project Nos. 2008-3001 & 2008-3002) Attached is a letter from the construction manager, Kraus-Anderson Construction, which provides a list and general description of approved and pending change orders that have occurred since September 2011. Please note that the list excludes changes that were cost neutral or credits to the project. The list also excludes change orders reported to City Council previously. The attached list adds up to $211,749. The previous report listed $87,830 worth of change orders. The total approved and pending change orders is $299,579. Change orders and orders for additional work items and quantity adjustments are typical for any construction project. The Fire Stations Replacement project has been no exception. The magnitude of the project simply amplifies the number of changes and associated costs beyond those of smaller projects. Examples of the changes include structural detail adjustments, changes to materials, revised architectural details, ductwork and piping modifications, amounts and quantities of specific items (most notably contaminated and unsuitable soils), etc. The issues have been addressed with the contractors by Kraus Anderson with City concurrence and approval in accordance with City policy. Approval of this item allows the City Manager to authorize up to an additional $100,000 for necessary changes on this project for a cumulative total of $300,000. FINANCIAL OR BUDGET CONSIDERATION: This project is in the City’s adopted Capital Improvement Program (CIP). The project budget for constructing both stations is $15.5 million. The sources of funds include $12.5 million in Build America bonds issued in December 2010. The remaining portion will be paid with approximately $3 million from the Fire portion of the Police and Fire Pension Fund. Staff anticipates the actual project costs will be approximately $15.1 million based on the construction bids received in March and the construction progress to date. The project continues to be constructed within the original budgeted amount and costs continue to be monitored in accordance with State and City regulations. VISION CONSIDERATION: Not applicable. Attachment: Change Order Summary (Kraus-Anderson Construction) Prepared by: Sean Walther, Senior Planner Reviewed by: Luke Stemmer, Fire Chief Approved by: Tom Harmening, City Manager City Council Meeting of January 17, 2012 (Item No. 4c) Subject: Project Administration - Fire Stations Replacement (Project Nos. 2008-3001 & 2008-3002)Page 3 City Council Meeting of January 17, 2012 (Item No. 4c) Subject: Project Administration - Fire Stations Replacement (Project Nos. 2008-3001 & 2008-3002)Page 4 Date: January 17, 2012 Agenda Item #: 4d City of St. Louis Park Human Rights Commission Minutes – October 18, 2011 Westwood Room, City Hall I. Call to Order Vice Chair Mueller called the meeting to order at 7:02 p.m. A. Roll Call Commissioners Present: Darla Aman, Lordia Fok, Joseph Glaab, Brian Johnson, Jeff Mueller, Emily Goldstein Staff: Marney Olson, Lt. Lori Dreier and Amy Stegora-Peterson Guests: Rashmi Seneviratne, PAC Representative, McKay Johnson B. Approval of Agenda It was moved by Commissioner Johnson, seconded by Commissioner Fok, to approve the agenda as presented. The motion passed 7-0. C. Approval of Minutes It was moved by Commissioner Glaab, seconded by Commissioner Fok, to approve the minutes of September 20, 2011, as presented. The motion passed 7-0. II. Commissioner and Committee Reports A. Individual commissioner and staff reports - None III. Human Rights Award Ms. Olson passed out the guidelines and nomination forms for the Human Rights award. It will be advertised in the Park Perspective. The Commission needs to decide on a deadline for nominations. Commissioner agreed to a December 16th deadline and would review nominations at the December meting. IV. Film Committee Update & Recap of “The Bully Project” Commissioner Johnson indicated he attended a showing of The Bully Project that was held at West End. It is definitely something that the Commission should pursue. It will be released in City Council Meeting of January 17, 2012 (Item No. 4d) Page 2 Subject: Human Rights Commission Minutes of October 8, 2011 theaters on March 12, 2012. The Director wanted the DVD out shortly thereafter and will have corresponding packets for schools and groups like us. For more information, the web site is thebullyproject.com. He has been looking into other films as well and considering spring or summer film showings. V. Lecture Subcommittee Update Ms. Olson noted that Chair Tomback sent an Email to the School Board about working with them and they are working to schedule a meeting. She contacted CEAC and is also working with the Youth Development Committee, made up of High School students, who are interested in meeting and brainstorming ideas. VI. MBA Bullying Project: Lordia Fok Commissioner Fok indicated she is enrolled in an MBA program at the University of Chicago and working on Power and Influence in Organizations. Their final project is to work with an organization or person trying to implement a campaign where they can influence a group of people and she thought it was a good fit to work with the HRC. Her team would talk with commissioners and others and interview them and then run the data. The goal would be to provide them with recommendations for what an interesting campaign would look like. A concern had been expressed that they wouldn’t be able to get anything executed before the end of her class, but that wasn’t a part of the final project. Ms. Olson stated she sent an Email to the Deputy City Manager and she was OK with this if the HRC was interested and asked the HRC to update council. Commissioner Fok added it would be focused a lot on schools, because that is where the most data is available. It would be a campaign proposal and they hope to come up with a kit that the Commission could implement. Commissioners felt it would be a good idea to get guidelines and direction. Commissioner Fok stated the next step would be to put together questions and do an outline. VII. New Business Ms. Olson noted the West End was starting to do larger events and in December they are doing a cultural and diversity celebration event. There will be more information to follow. VIII. Adjournment The meeting was adjourned at 7:44 p.m. Respectfully submitted, Amy L. Stegora-Peterson Recording Secretary Meeting Date: January 17, 2012 Agenda Item #: 4e OFFICIAL MINUTES PLANNING COMMISSION ST. LOUIS PARK, MINNESOTA November 2, 2011 – 6:00 p.m. COUNCIL CHAMBERS MEMBERS PRESENT: Lynne Carper, Claudia Johnston-Madison, Robert Kramer, Dennis Morris, Richard Person, Carl Robertson MEMBERS ABSENT: Larry Shapiro STAFF PRESENT: Adam Fulton, Gary Morrison, Meg McMonigal, Nancy Sells 1. Call to Order – Roll Call 2. Approval of Minutes of November 2, 2011 Commissioner Morris made a motion to approve the minutes of November 2, 2011. Commissioner Robertson seconded the motion, and the motion passed on a vote of 4-0. (Commissioner Kramer abstained. Commission Person arrived at 6:01.) 3. Hearings A. Amendment to Planned Unit Development Location: 5200 Excelsior Boulevard Applicant: Park Village LLC and Reprise Design Case No.: 11-24-PUD Adam Fulton, Planner, presented the staff report. He explained the request is for a major amendment to the Park Village Center Planned Unit Development for a new restaurant building, overall site modifications within the PUD, and modifications to the McDonald’s site. The PUD encompasses Granite City, the Mann Theater building which has a number of restaurants on the south side, a Boston Market and Caribou Coffee building, and a McDonald’s building. Mr. Fulton discussed the two access points to the PUD site. He spoke about the shared parking agreement with Park Nicollet. Commissioner Robertson asked how new signage will work with the overall allowed signage for the PUD. Mr. Fulton responded that signage is regulated on a site with multiple tenants based on the frontage of the buildings. The applicant is proposing a new monument sign. Signage plans are typically approved outside of PUD approval. Commissioner Carper asked if there are sidewalks adjacent to the west side of the Mann Theater and on the east side of Granite City that would facilitate movement to the back parking lot. City Council Meeting of January 17, 2012 (Item No. 4e) Page 2 Subject: Planning Commission Minutes of November 2, 2011 Mr. Fulton said there is currently a sidewalk on the west side of the theater building which is service oriented. The primary north-south pedestrian sidewalk is to the east side. Commissioner Carper described evening rush hours at Granite City when the lot in front of the restaurant is full and begins to move out to the east. With the loss of 56 parking spaces, he said he would think there will be more pressure north of the Granite City building. He said he was concerned about adequate pedestrian walkways. Mr. Fulton said that concern will be raised with the applicant. The Planning Commission could elect to add that as a condition of the recommendation. Commissioner Carper asked about deliveries for the new building. Mr. Fulton said the applicant could address that question. Commissioner Carper asked if there would be a passageway on the east side of the McDonald’s building which would allow traffic to flow freely adjacent to the ordering lanes. Mr. Fulton responded that was correct. He said it is expected there will be sufficient circulation space at that location. He added there wouldn’t be an option to exit via the drive-thru area. Commissioner Person asked about pedestrian access to McDonald’s from the north. Mr. Fulton said staff discussed this with the applicant and the City Engineer. He indicated where pedestrian options will be added. Meg McMonigal, Planning and Zoning Supervisor, added that McDonald’s will be adding new sidewalk to the north of their building. She said that improvement will help pedestrians and lead people away from crossing at the drive-thru exit. Commissioner Kramer asked about potential uses of the theater upper floor and how that would affect parking. He asked about issues related to having a vacant building in the area. Mr. Fulton said the upper floor of the theater building would be required to be fully secured, closed off and not accessible. The upper floor has no windows. The applicant has stated it doesn’t have a practical re-use if it isn’t a theater and flattening out the sloped floors isn’t practical either. The most practical use for the building itself would be to fully re-use the first with the second floor remaining vacant. Nick Sperides, Sperides Reiners Architects, said no specific tenant for the theater building has been identified at this time. The second floor couldn’t be used for warehousing or storage of any kind due to floor loads and the structure of the building. Deliveries wouldn’t be any more intense than they are currently at the site. If deliveries were made during business hours they would occur off to the side. City Council Meeting of January 17, 2012 (Item No. 4e) Page 3 Subject: Planning Commission Minutes of November 2, 2011 Mr. Sperides spoke about Granite City parking. He said the intent of the developer of the theater building is to keep Granite City’s parking as whole as it is currently. Mr. Sperides said they propose to have the sidewalk connect to the east side of the building as the grade change on the west side of the building is significant. The east side sidewalk would also bring pedestrians to the landscaped area. Brian Johnson, Reprise Design, architect for the McDonald’s building, spoke about the truck service vehicle. He said it would come in from the south. Goods are conveyored into the building close to the entrance. Going out, the truck template works so the truck can continue forward and circulate all the way around the parking lot and out the same wide entrance they entered, heading north. The truck driver could also back out the way they came in. Typically services arrive at McDonalds at 3:00 a.m. or 4:00 a.m. Mr. Johnson stated that pedestrian traffic from the north will be directed around the intersection to bring pedestrians to the west side to cross the street. Chair Johnston-Madison opened the public hearing. Sonja Almlie, 3924 Webster Ave. S., said her property faces directly toward Granite City. She said she is one of the few residents on the west side of Hwy. 100 who was notified of the proposed changes. Ms. Almlie stated that when the original development was done by Frauenshuh and Park Nicollet there quite a few issues with the original plan about the design of several buildings and facilities as well as the landscaping in the area. Ms. Almlie stated she had grave concerns regarding landscaping because trees have died and have not been replaced. They’ve either been cut down or left dead. There is significant landscaping that has not been replaced. She said when the original plan for landscaping came in it was sub-code or substandard to what the city had required in the plan. When residents started asking questions it was identified that it didn’t meet city standards and so significant changes had to be made and there were some accommodations to reduce it. Ms. Almlie said she is very excited about the new plan for additional greenery in that area but she is also concerned as the existing landscaping along Granite City and Park Center Blvd. is substandard. Ms. Almlie said the lighting fixture on the west side of Granite City brings very high luminescence to her side of the roadway, is very obvious and quite a deterrent to the community. What concerns her about suggestions of changes on all of these properties is increased luminescence. She said there is also a challenge with noise from garbage pick- up at Granite City during times of less noise in the area. She’s concerned that the theater property might have a restaurant or retail with a high degree of garbage and delivery service. If there are more services at 3 and 4 in the morning towards Hwy. 100 there is likely to be noise and problems there. Ms. Almlie said when the original development was proposed there was concern about lighting at Park Nicollet ramps with high luminescence that would affect the neighborhood. Changes were made. She stated that other neighborhoods may have concerns as well. The access to the theater building concerns her as there isn’t a City Council Meeting of January 17, 2012 (Item No. 4e) Page 4 Subject: Planning Commission Minutes of November 2, 2011 walkway designed between the theater building and the Granite City Brewery. There are some challenges for people transferring through the different areas of the development. Commissioner Kramer asked Ms. Almlie where her house is located. Ms. Almlie responded that it is five houses north of the former Pawn America site. Commissioner Kramer asked when Ms. Almlie could hear noise over Hwy. 100 traffic. Ms. Almlie responded at about 3 and 4:00 in the morning the neighborhood can hear garbage pick-ups in the development as Hwy. 100 traffic is light at that time. Commissioner Kramer asked how the development lighting stands out from Highway 100 lighting. Ms. Almlie said the location of the light, direction of the light and type of lighting towards the homes makes it stand out. It is very visible light as it does not have a cover over it to focus light down. Ms. McMonigal said staff will look into all of the issues. The Chair closed the public hearing as no one else was present wishing to speak. Commissioner Person asked if landscaping on the plans was existing landscaping or proposed landscaping. Mr. Fulton said there is new landscaping associated with the proposal. He added that staff will review the existing landscape plan for the site and make sure that any trees that have died will be replaced and the site is in compliance with the approved landscaping plan. Commissioner Person asked if Granite City would be adding any signage. Mr. Fulton said he didn’t believe any new signage was proposed for Granite City as part of the current application. Commissioner Person asked about ordinances regarding delivery time. Mr. Fulton responded under a PUD or Conditional Use Permit there is the ability to include that as a condition. Generally, the City has some noise standards that are different for evening and daylight hours. Commissioner Robertson said overall he likes the proposal. He remarked that comments about it have been very clear. Information about landscaping and lighting was very eye opening and he recommends that it be included in the conditions that all existing landscaping be brought up to compliance. All existing and new lighting should be brought into compliance. He remarked it is a tough site and it’s very clear that a lot of work has been done to make it work as well as it seems to work, and it has to be done carefully. City Council Meeting of January 17, 2012 (Item No. 4e) Page 5 Subject: Planning Commission Minutes of November 2, 2011 Commissioner Morris spoke about notification of the public hearing. He said he assumed a 350 ft. radius notification was done, but the site is pretty sheltered in its commercial nature. He suggested being more diligent in the future about notifying neighborhood associations surrounding these types of developments. He commented that the Planning Commission may want to include expanding notification areas as an agenda item in the future. Chair Johnston-Madison remarked that because Ms. Almlie’s neighborhood is elevated well above Hwy. 100, the impact from noise in the development does carry forward to that neighborhood. Ms. McMonigal commented that staff will review compliance with original approvals on the site. Additional landscaping can be added through the PUD amendment. Staff can check on the lighting. Commissioner Kramer stated the design is good. He said the comments from the resident should be taken into consideration. Commissioner Carper stated it’s a nice development being added to the site. He said he is still concerned about the pedestrian access. Commissioner Robertson made a motion to recommend approval of the Major Amendment to the PUD subject to conditions included by staff and subject to review of existing conditions on the site meeting original approvals. Commissioner Kramer seconded the motion, and the motion passed on a vote of 6-0. Ms. McMonigal stated that staff will review the comments that came up at the public hearing, will respond to the citizen who brought up issues, and will address the issues in the staff report and City Council meeting. Commissioner Robertson suggested expanding the notification list for the City Council meeting. B. Zoning Change, Conditional Use Permit and Variance Location: 3901 and 3921 Excelsior Boulevard Applicant: Alberto Bertomeu Case Nos.: 11-19-Z, 11-20-CUP, 11-21-VAR Adam Fulton, Planner, presented the staff report. He explained the request is a rezoning from C-1 Neighborhood Commercial to C-2 General Commercial, a Conditional Use Permit to allow motor vehicle service with a carwash, and a variance to reduce the distance requirement between the carwash and adjacent residential property. Staff has recommended approval of the rezoning and Conditional Use Permit subject to conditions. Staff has recommended denial of the variance request as it does not meet the criteria of the Zoning Ordinance. Mr. Fulton explained that the project could move forward without approval of the variance. The carwash would need to be modified to meet the setback requirements. City Council Meeting of January 17, 2012 (Item No. 4e) Page 6 Subject: Planning Commission Minutes of November 2, 2011 Commissioner Carper asked if it was feasible to relocate the carwash on the site. Mr. Fulton replied that question could best be addressed to the applicant. Alberto Bertomeu, applicant, distributed a handout of plans and drawings. He provided background on his applications. He explained that his hardship concerns the storm sewer pipe. He said there is no mention of the pipe in the property Abstract. It was discovered by his engineer. He cannot build over the pipe. It limits the use of the site entirely. Mr. Bertomeu said his choices are to try to find a compromise through his current plans, sell the property, or use legal remedies. Mr. Bertomeu spoke about the setback. He said he doesn’t know how else to develop the site other than by the requested variance. Mr. Bertomeu spoke about the carwash design which keeps cars and noise inside the building throughout the whole process. He discussed the high efficiency dryers that will be used in the carwash. He said he has held lengthy conversations about his proposal with Bader Development and the management staff of the Ellipse on Excelsior development across the street from his property. Commissioner Kramer asked if there was a Plan B that would be satisfactory. Mr. Bertomeu replied that there is no Plan B. Plan B would be to take legal action and try to find a remedy to the pipe. Another option is that a chain store would buy the property. Commissioner Person asked if the applicant was proposing a second floor addition. Mr. Bertomeu said he was not proposing a second floor. Commissioner Carper asked if there was a similar type of carwash in the Twin Cities. Mr. Bertomeu said there are similar carwashes that have multiple lanes, but no one locally has the equipment. The equipment would be imported from Finland. Because everything is very small in Finland noise is a very big issue. They have technology which reduces noise and water. Detroit is the only city in the Upper Midwest where there might be similar equipment. Chair Johnston-Madison opened the public hearing. John Miller, 3550 France Ave. S., said he’s lived in his home for 58 years, has had a lot of business with the City Council and has never had any problem with a staff report. Chair Johnston-Madison acknowledged e-mails included in the staff report received from Robb Bader, Ellipse on Excelsior; Adrianne Lebow, 3540 & 3544 France Ave.; Esta Miller, 3947 Excelsior Blvd.; Paul Brown, 4500 Morningside Rd., and Martin Fowler, 3601 Huntington Ave. As no one else was present wishing to speak, the Chair closed the public hearing. City Council Meeting of January 17, 2012 (Item No. 4e) Page 7 Subject: Planning Commission Minutes of November 2, 2011 Commissioner Robertson said historically we look at distance in protecting residential from certain uses. He said technology changes and the applicant has a proposal for a different kind of carwash which eliminates noise through technology and design. He said he didn’t feel a precedent would be set by granting the variance. He said the applicant has met the intent of the Zoning Ordinance which is to protect the adjacent property. Commissioner Robertson stated he supported approval of all three applications. Chair Johnston-Madison asked about the driveway easement. Mr. Fulton responded that the driveway easement provides access for the residential garage and also to a parking lot behind the office building west of the applicant’s parking lot. Chair Johnston-Madison said she supported the variance request because of the reasons stated by Commissioner Robertson and also related to the residential garage. She said she hoped more screening could be added for more privacy. Commissioner Morris said the variance is about sight line and noise abatement. It involves one property owner with the orientation of the house and the garage. He supported the variance with the condition of a green fence or trees which would screen and create a noise abatement barrier to the residential property. We want commercial development, we want economic development and we want to protect residents from unnecessary light, noise and activity. Commissioner Kramer stated he was in favor of providing the variance. He asked about the possibility of a variance that was conditioned on actual decibel reading of the finished project. Commissioner Morris responded that the investment in the structure would already be in place. Commissioner Kramer said he agreed and understood but he was saying that the owner is willing to make the investment and at the end prove that it is quiet. He said he wouldn’t do it and he wouldn’t expect the applicant to do it but it would show his degree of confidence about how serious he is about the project. Commissioner Carper asked about decibel level standards. Mr. Fulton responded that the standard is about 65 decibels. He added that it’s not a measurement taken at the property line, it’s a measurement taken at any adjacent houses immediately outside the house. It’s governed by state law. Ms. McMonigal said it is a complicated measurement which has to be a constant amount during a certain amount of time per day in order to be a violation. She said in this case it would probably be difficult to get to that violation stage. Commissioner Robertson asked Mr. Bertomeu if he had engineering specification sheets regarding decibel output. He asked if there was any modeling of decibel level at different distances from the building. City Council Meeting of January 17, 2012 (Item No. 4e) Page 8 Subject: Planning Commission Minutes of November 2, 2011 Mr. Bertomeu said he didn’t have that information but could provide it. He remarked the points raised are valid. He stated that when the doors are closed the decibel noise cannot escape the building. The issue is when carwashes open their doors prematurely with the blowers going. He said he will not allow doors to open until the blowers are shut off. Mr. Bertomeu showed a drawing of an internal structure inside the carwash with two doors at the end where the blowers are located. It is like a garage within the carwash with the noise going backward, not out. Ms. McMonigal reviewed the proposed conditions for the Conditional Use Permit. Commissioner Morris said he would recommend approval of the variance based on the new interpretation of hardship. There is a reasonable use of the property, the actual residence is further back from the property line, and since it is private property we can’t mandate this. But it’s conditional on the applicant making a reasonable effort to offer the property additional landscaping or fencing screening. If a reasonable offer is made to abate those issues, he thinks the applicant is in compliance with what the new ordinance is saying about uniqueness and hardship. Commissioner Morris made a motion recommending approval of the Rezoning from C-1 to C-2, approval of the Conditional Use Permit subject to conditions, and approval of the Variance; adding a condition of reasonable effort of the applicant, monitored by city staff, to supply additional screening to the resident subject to the variance. Commissioner Robertson seconded the motion, and the motion passed on a vote of 6-0. 4. Other Business 5. Communications 6. Adjournment The meeting was adjourned at 7:55 p.m. A study session followed. Meeting Date: January 17, 2012 Agenda Item #: 4f OFFICIAL MINUTES PLANNING COMMISSION ST. LOUIS PARK, MINNESOTA November 16, 2011 – 6:00 p.m. COUNCIL CHAMBERS MEMBERS PRESENT: Lynne Carper, Claudia Johnston-Madison, Robert Kramer, Richard Person, Carl Robertson, Larry Shapiro, MEMBERS ABSENT: Dennis Morris STAFF PRESENT: Meg McMonigal, Sean Walther, Nancy Sells 1. Call to Order – Roll Call 2. Approval of Minutes: None 3. Hearings A. Preliminary and Final Plat, Amendment to PUD, Variances Ellipse II (e2) on Excelsior Location: 3924 Excelsior Boulevard Applicant: Bader Development Case Nos.: 11-28-S, 11-27-PUD, 11-29-VAR Sean Walther, Senior Planner, presented the staff report. He explained that a second phase to the Ellipse on Excelsior development is being proposed. The “e2” redevelopment is a five-story, 58-unit apartment building with structured underground and at-grade parking. Commissioner Carper said he was concerned about parking. He asked how many spaces were in the leased area and how many spaces were being used there. Mr. Walther said there are approximately 50 parking stalls available at the American Inn site. The use fluctuates with 50 in use at peak. He explained that area has been designated as valet parking only. Traffic counts by the parking consultant and the owner indicate that when the valet lot is well used there are still spaces available on the surface parking lot that could of have been used by customers. Mr. Walther said that neighbors have noted that people are parking on France Ave. He commented that isn’t necessarily because there isn’t parking available on the lot. Commissioner Carper spoke about 28 spaces too few and not knowing what the occupancy is of other parking available. He said he was concerned that there would be more parking in the neighborhood with e2. Scott Froemming, Walker Parking Consultants, said on the day he counted there were a maximum of 45 cars on the surface lot. At that time there were approximately 80 cars parked in the Ellipse parking lot, leaving 20 empty stalls in the Ellipse lot, as well as 17 City Council Meeting of January 17, 2012 (Item No. 4f) Page 2 Subject: Planning Commission Minutes of November 16, 2011 empty stalls underground. An overage on the surface lot could be accommodated on the Ellipse property. Mr. Walther spoke about numbers from the parking study for the peak hour, peak day, peak month (mid-December) which indicated parking provided is over the peak demand projected and counted on the site. Commissioner Kramer asked about the tandem spots in the basement. He spoke about problems often encountered with tandem parking. Robb Bader, Bader Development, said the tandem spaces will be reserved for couples and roommates. He said they haven’t encountered problems with tandem parking in their other properties, and wouldn’t expect any in a 58-unit building. On-site management is always available should problems occur. Dean Dovolis, DJR Architecture, spoke about the success of the project and now getting the whole parcel pulled together with the second phase. He discussed valet parking and the policy to park those cars at far spaces, leaving spaces around the restaurant available. He said the neighbors have suggested signs indicating parking around the corner at the development. Chair Johnston-Madison opened the public hearing. Wayne Kesti, 3332 France Ave. S., mentioned positive benefits of the development. He said the challenge has been integration into the neighborhood. He said where there is development adjacent to existing single family homes it is an issue for the entire city, not just Minikahda Oaks and Minikahda Vista. He said this is a suburban community, not an urban community. There are 75 kids within 77 homes in the neighborhood. He stated he was concerned that the city wasn’t providing move-up housing and equity amongst all homeowners and property taxpayers, though it professed to do so in its strategic documents and Vision. Mr. Kesti stated that people are parking on France when they don’t see available parking or don’t want to pay for valet parking. He said these are encroachment issues the neighborhood was concerned about from the beginning and these are issues on a regular basis. Mr. Kesti said 8-10 vehicles parked on France Ave. on a night is very common. There are discussions with city staff about expanding permit parking which is really the only option. He stated these are urban issues that have been created in St. Louis Park, a suburban community. Commissioner Robertson asked Mr. Kesti if Ellipse residents are becoming part of the neighborhood and if there were any other issues besides parking. Mr. Kesti said the residents are great. He said his point was as the city continues to look at development opportunities in St. Louis Park, it shouldn’t just talk about the developer, the development and the code for number of parking spaces per unit. He said discussion should include how it will impact and integrate with the existing community. He continued by saying residents are speaking because parking was an issue with Phase I. The ratio is the same for Phase II. One night was chosen to look at overflow parking. City Council Meeting of January 17, 2012 (Item No. 4f) Page 3 Subject: Planning Commission Minutes of November 16, 2011 He said he doesn’t think there is enough parking in Phase II. The residents of the single family homes and adjacent neighborhood have been impacted negatively by excess parking whether it is overflow or choice. Frank Steck, 4121 Randall, Minikahda Oaks neighborhood association president, said he’s been a neighborhood resident for 20 years. The association is the oldest association in the city. He said Mr. Kesti has been the neighborhood association liaison with the Ellipse and the city. He spoke about the expanded parking permit process which will be coming up in December. Mr. Steck spoke about St. Louis Park being an inner ring suburb. Neighbors moved to St. Louis Park because they love the community and they don’t want to see the integrity of St. Louis Park compromised. Mr. Steck said he likes the Ellipse, but it hasn’t worked from a parking standpoint. He said Ellipse residents have told him they have parking issues. They have told him they have one parking spot per unit and they would like a second spot. Visitor parking is an issue. Some Ellipse residents have told him that visitors or residents with a second car have parked at Excelsior & Grand. Mr. Steck spoke about parking and traffic issues and the lack of sidewalk on France Ave. He said he is very concerned about the experience of the neighborhood for all the residents. He wondered how the Ellipse will function five years from now when it is no longer the new kid on the block. He said he believes parking spaces will be about 35 spaces short for the entire development once Ellipse II is completed. He said he is also concerned about traffic and parking during the winter season. He suggested, as an experiment, closing off the surface lot in December so that only 22 cars could park there, as that is the expected overflow at Ellipse II. At the same time 8-10 cars won’t be parking on France Ave. due to permit parking. See how that works. Mr. Steck said the numbers show a certain amount of parking spaces/unit. A few spaces can be removed because of transit and bike trail. Mr. Steck stated that the reality shows there is not enough parking even though the numbers meet the requirement. Commissioner Kramer asked what timeframe cars are parking on the street. Mr. Kesti responded that in the last month, typically Thursday through Saturday between 5 p.m. and 10 p.m. is the heaviest, with 8 to 15 cars parked on France Ave. Commissioner Kramer asked staff how many parking spots per unit are allowed. Mr. Walther replied that there is one parking spot per bedroom, not one parking spot per unit. Alan Floyd, 3400 Glenhurst, spoke about light intrusion into the neighborhood. He said the original drawings showed densely planted, mature evergreen trees from the corner of the development on France Ave. all the way around which would have provided very effective barrier landscaping to light intrusion. He said currently light comes into his living room from headlights of traffic coming into the Ellipse. The solution is to plant trees as were agreed upon. Mr. Floyd said the existing trees are very sparsely planted, immature evergreens, and small deciduous trees in front of a 6 ft. fence leaving a lot of open space at the gap. He said it’s been exacerbated by the fact the boulevard was clear cut all the way down to the park which now allows a clear, unobstructed view of the City Council Meeting of January 17, 2012 (Item No. 4f) Page 4 Subject: Planning Commission Minutes of November 16, 2011 backside of the Ellipse. The 6 ft. fence ends right at the point where cars turn in. There’s a gap. Mr. Floyd spoke about lighting on the building which intrudes on his property. Stairwell lighting of bare bulbs is exposed by clear windows. This light glares down on the park. When it snows this light is accentuated and the whole park glows from the development. He said he often doesn’t need lights in his living room because the light glow is so bright. Mr. Floyd spoke about noise issues. He said snowplowing has occurred in the middle of the night. Parking lot maintenance occurred at 1:00 a.m. last spring. He remarked that management at the building is not effective. He heard people yelling and screaming in the parking lot. He asked an Ellipse resident what he thought of the noise and the resident said the Ellipse is becoming a dormitory. Chairperson Johnston-Madison asked staff and the developer to address light and noise issues. Mr. Walther said lighting was a concern prior to the development and immediately following the development. He said the lighting ordinance applies only to exterior lighting. There were issues with parking lot lights. The wrong type of fixture was put it and the developer changed out those lights, and provided guards to eliminate glare coming from individual lights. Testing has been done along the perimeter and it does meet ordinance requirements. He said the only lighting which was added subsequent to the development is down lighting near the sidewalk at the back of the building due to security issues. As regards landscaping, Mr. Walther said the Ellipse development did plant exactly what they said they would plant. The only changes that did happen were along the very north property line next to the fence with cooperation of the adjacent property owners, as directed by the City Council when the development was approved. Mr. Walther said most of the lighting issues either have been resolved to the extent of the ordinance or are not regulated by the ordinance. Chair Johnston-Madison asked if it was time to review plantings and make adjustments. Robb Bader discussed the parking on France Ave. He spoke about guest parking which is available. Mr. Bader said he met with Mr. Floyd and Nancy Rosen on November 15th. He said the developer is willing to relook at the plantings. He said they have not heard any complaints about noise. Commissioner Person asked if shields could be put on the interior stairwell lights. Mr. Bader said he will discuss design and safety issues for stairwell lighting with an interior designer. Nancy Rose, 3402 Huntington, said she finds the building to be an improvement for the neighborhood but there are some integration issues. She is concerned about lighting. She would like to look again at the present design for the drive coming into the new building. She said it appears there is no planting at the end of that driveway at all. City Council Meeting of January 17, 2012 (Item No. 4f) Page 5 Subject: Planning Commission Minutes of November 16, 2011 Mr. Walther spoke about a proposed retaining wall and a transformer that will be placed in that area. He said there is landscaping on this portion of the driveway but it isn’t clear what the species are. Ms. Rose said Ellipse I architectural drawings indicated heavy plantings screening the driveway coming into the underground garage, but that differed from the planting plans. Residents were surprised that the planting did not have the effect shown in the architect’s drawings. She said she currently gets lights in her windows from the parking lot as it is currently being used, and assumes it will increase after Ellipse II is built. She stated there should be some kind of screening, whether it is plants or a physical screen. Chair Johnston-Madison closed the public hearing as no one else was present wishing to speak. Commissioner Shapiro commented that the developer can be asked to make improvements to the interior lighting but the code won’t allow the city to mandate interior lighting changes. He said the developer has expressed a willingness to look at it but he didn’t think it could be a condition of approval. Commissioner Robertson said the Commission should address what can be addressed. He spoke about his own neighborhood which includes light from security lighting, traffic, and cars parking in front of his house. This will occur in a suburban setting. He said some screening is based on mature vegetation. Perhaps screening should be overplanted at the start. He said interior lighting is not in the Commission’s purview. Architecturally it is very hard to deal with glass, lights, and multiple stories, and this is life in the suburbs. Commissioner Kramer said he agreed with the comments made about lighting. He said he is concerned about inadequate parking and wants to continue the dialogue about parking. Commissioner Robertson said he’s concerned about the tandem parking numbers. Commissioner Shapiro said he has been to the restaurant at peak times and has noted empty parking spots when he went in and empty spots when he left. Some of the parking on France may just be human nature to park where it appears to be closer to the restaurant. Even if there were 30 extra parking spots people may decide to park on France Ave. He spoke about his neighborhood where extra cars are parked in front of his house and neighbors’ houses in the summer. He said that a suburb isn’t protection from cars. Commissioner Carper said he wasn’t comfortable with the parking but it does meet the zoning code. The only alternative would be in the future to change the zoning to require more parking. He suggested using the tandem parking spots for valet parking. He spoke about the effectiveness of permit parking. Commissioner Carper said it is a very good development. He recommended that the developer come forward to City Council with changes that have been discussed. Commissioner Robertson made a motion recommending approval of a preliminary and final plat with two subdivision variances, a PUD Major Amendment, a side yard variance, and a rear yard variance; subject to conditions including modifying screening for headlamps and looking more closely at how headlamps affect adjacent properties. Commissioner Person seconded the motion, and the motion passed on a vote of 6-0. City Council Meeting of January 17, 2012 (Item No. 4f) Page 6 Subject: Planning Commission Minutes of November 16, 2011 B. Zoning Ordinance Amendments relating to Variances Applicant: City of St. Louis Park Case No.: 11-15-ZA Meg McMonigal, Planning and Zoning Supervisor, presented the staff report. She said the State statute was changed in 2011 with the revision to essentially change the variance language from requiring an undue hardship to requiring that a variance address a practical difficulty. The amendments are being proposed to be more consistent with the State statute. Many of the provisions are unchanged and it’s been rearranged for clarity. Recommended language from the League of MN Cities has been used. She spoke about the modified definition of a variance which provides clarity. The proposed ordinance keeps the existing evaluation criteria to preserve the ordinance and the standards in the ordinance. Ms. McMonigal spoke about a provision in the State law regarding a variance for the temporary use of a one family dwelling as a two family dwelling. She said the City Attorney has recommended that we keep that language in the ordinance but staff has asked for some more research on that. She distributed a hand-out with some more wording changes from the City Attorney. Staff recommends including these changes in the proposed ordinance. Chair Johnston-Madison asked about language regarding use in Section 36-33(d) items (a)(1) and (c)(1) on page 6 of the staff report. Ms. McMonigal replied that perhaps (a)(1) could read any land use rather than any use. Ms. McMonigal and Commissioner Robertson suggested clarifying item (c)(1). Commissioner Robertson asked if there was a definition of temporary use in the family dwelling provision in state law. Ms. McMonigal said staff will look into that. Chair Johnston-Madison opened the public hearing. She closed the public hearing as no one was present wishing to speak. Commissioner Robertson made a motion recommending approval of the draft zoning ordinance amendment pertaining to variances with changes to Section 36-33(d) Items (a)(1) and (c)(1) as discussed, and that temporary use be defined. Commissioner Kramer seconded the motion, and the motion passed on a vote of 6-0. 4. Other Business 5. Communications 6. Adjournment The meeting was adjourned at 7:55 p.m. Respectfully submitted, Nancy Sells Adm. Secretary Meeting Date: January 17, 2012 Agenda Item #: 6a Regular Meeting Public Hearing Action Item Consent Item Resolution Ordinance Presentation Other: EDA Meeting Action Item Resolution Other: Public Hearing Study Session Discussion Item Written Report Other: TITLE: Public Hearing and Resolution Approving the Establishment of the Oak Hill II Tax Increment Financing District and Related TIF Plan. RECOMMENDED ACTION: Conduct the public hearing and adopt the resolution establishing the Oak Hill II Tax Increment Financing District within Redevelopment Project No. 1 and approving the related TIF Plan. POLICY CONSIDERATION: Does the City Council support the establishment of the Oak Hill II Tax Increment Financing District to facilitate the construction of an office building of approximately 21,450 SF at 3340 Republic Avenue? (The EDA will have considered the above action earlier in the evening.) Anderson-KM Builders’ application for tax increment financing assistance was reviewed at the October 24, 2011 Study Session where it was favorably received. At its December 5th meeting, the City Council set a public hearing date of January 17th for the creation of the proposed TIF district. A report on the potential business terms that would serve as the basis for a development contract with Anderson-KM Builders was submitted at the January 9th Study Session. It is now time to take the final step in the TIF process which is to formally authorize the creation of the TIF district. Such authorization enables the EDA to use tax increment generated from the proposed Oak Hill II project to Anderson-KM Builders as reimbursement for qualified costs incurred in the construction of the proposed office building. BACKGROUND: Anderson Builders was a real estate development, design management, and construction company based in St. Louis Park since 1999. In addition to the Oak Hill office building located at 3501 Louisiana Ave. (near the intersection of Louisiana Ave and Walker St.) the firm built a variety of office, industrial and retail facilities as well as churches and health care clinics throughout the Twin Cities area. The subject property is located in the Lenox Neighborhood at the northwest corner of Walker Street and Republic Avenue; immediately east of Anderson Builders’ Oak Hill office building. The subject property posed several development challenges as the site is small (¾-acre), triangular in shape, required demolition of an old 6,400 SF commercial building, and has a 13 foot elevation change across the site. In 2007 Anderson Builders purchased the property and planned to construct a 2-story, 15,000 SF office building in its place. The next year it removed the former office building on the site. The EDA previously agreed to provide financial assistance to the project but due to economic conditions and Anderson’s inability to obtain project financing, the proposed office project was unable to proceed and the agreement with Anderson was terminated. City Council Meeting of January 17, 2012 (Item No. 6a) Page 2 Subject: Public Hearing & Resolution Approving Establishment of Oak Hill II Tax Increment Financing District This past July it was announced that Anderson Builders and Minneapolis-based KM Building Company, led by Greg Anderson and Steven Faber, respectively, had joined with real estate and construction executives Kent M. Carlson and Arne Cook to form a new firm called: Anderson- KM Builders. Carlson was formerly a senior executive with Ryan Companies. Cook is a real estate development consultant who held senior management positions with CSM Corporation, First Industrial Realty Trust and The Opus Group. Carlson is the new company's chief executive. The four partners established Anderson-KM Builders to provide comprehensive building and development services to local and regional clients. The new company employs 30 people. Proposed Project Anderson-KM Builders is currently operating from Anderson Builder's location on Park Glen Rd in St. Louis Park as well as KM Building's offices in Minneapolis. The firm plans to build a new facility and consolidate its operations within a single location. The proposed office site is the property owned by Anderson Builders at 3340 Republic Avenue. The proposed office building would be approximately 21,450 SF; approximately 6,430 SF larger than the office building Anderson previously planned to construct on the site. Like the former building, the new Oak Hill II would be a multi-tenant, professional office building. Because the proposed new building would be constructed into the side of the hill facing Republic Avenue it will appear as one story off Republic and two stories off Walker Street (see attached Building Renderings). Oak Hill II will be an attractive brick structure designed to complement the original Oak Hill office building next door. Under this latest proposal, Anderson-KM Builders will occupy approximately half the new building (6,001 SF of office and 4,715 SF of storage). The remaining 10,716 SF will be built out as office space and leased to one or more tenants. Oak Hill II will be marketed to general office users and specialty medical users given its proximity to Methodist Hospital. Project Schedule Anderson-KM Builders plans to commence construction on the office building in spring 2012 and have it completed by the end of the year. Current/Proposed Market Value The subject property’s current assessed value is $700,000. Once the new building is complete and fully occupied, the property would be assessed for $3.5 million by 2013. Job Creation As noted earlier, Anderson-KM Builders plans to consolidate its operations within the proposed Oak Hill II building. Anderson Builders with its 15 employees would relocate from its Park Glen location and KM Builders with its 15 employees would relocate from Minneapolis. In addition, 25 jobs are anticipated to result from tenants filling the 2nd floor office space. Thus, a total of 15 jobs are expected to be retained and up to 40 jobs are expected to be created in St. Louis Park if the proposed project proceeds. Request for Tax Increment Assistance In order to pursue the above project Anderson-KM Builders applied for up to $300,000 in tax increment assistance from the EDA to offset a small portion of the construction costs associated with the proposed building. As a percentage of total project cost the requested amount of financial assistance is approximately 7%. City Council Meeting of January 17, 2012 (Item No. 6a) Page 3 Subject: Public Hearing & Resolution Approving Establishment of Oak Hill II Tax Increment Financing District The project is not economically feasible without some public financial assistance. Anderson’s request for TIF assistance is considered reasonable given the complexity, quality, projected total value, and other economic benefits derived from the proposed redevelopment. The EDA’s participation would leverage approximately $4.3 million in new investment. TIF District Approvals The EDA/City Council reviewed Anderson-KM Builders’ TIF application at the October 24, 2011 Study Session. The proposed project and application were favorably received and staff was directed to work further with the company to negotiate business terms that would enable the proposed project to move forward. At its December 5th meeting, the City Council set a public hearing date of January 17, 2012 for consideration of the proposed Oak Park II Economic Development TIF District. The Planning Commission reviewed the Oak Hill II Tax Increment Financing Plan on January 4th, as required by state law, and determined it was in conformance with the City’s Comprehensive Plan. Synopsis of the Proposed TIF District In order to provide the Redeveloper with the proposed tax increment assistance a new TIF district must be formed. The proposed Oak Hill II Tax Increment Financing District (an economic development district) is detailed in the attached TIF Plan. The TIF Plan was prepared by the EDA’s TIF consultant, Ehlers & Associates. In a general sense, TIF plans may be viewed as enabling legislation. They establish the proposed TIF district’s classification, geographic boundaries, maximum duration, maximum budget authority for tax increment revenues and expenditures, fiscal disparities election as well as estimated impact on various taxing jurisdictions along with findings which statutorily qualify the district. The specific mutual obligations between the EDA and the Redeveloper as well as the precise terms of the financial assistance are contained in the separate Contract for Private Redevelopment between the parties (to be considered February 6th). Both the TIF Plan and the Redevelopment Contract need to be approved in order for economic development or redevelopment projects involving tax increment to proceed. The proposed Oak Hill II TIF District consists of a single property: 3340 Republic Avenue along with adjacent rights-of-way. The proposed TIF District is within the city’s Redevelopment Project Area as is statutorily required. Inclusion of the proposed project within a designated Redevelopment Project Area gives the EDA/Council the authority to assist with all the redevelopment actions necessary to implement the Oak Hill II project. Feasibility and Duration of the Oak Hill II TIF District The financial assistance to be provided to Anderson-KM Builders to facilitate the proposed office project meets the requirements necessary to create an Economic Development TIF District as allowed under the 2010 State of Minnesota Jobs Act. It is estimated that upon completion the proposed project will generate approximately $300,000 in tax increment (present value) over the 9-year term of the district. TIF District Revenue Uses of Funds It should be noted that the project costs reflected within the Uses of Funds (Section 2-10) of the proposed TIF Plan is a not-to-exceed budget and not the actual expected project budget. City Council Meeting of January 17, 2012 (Item No. 6a) Page 4 Subject: Public Hearing & Resolution Approving Establishment of Oak Hill II Tax Increment Financing District Fiscal Disparities Election In keeping with the City’s TIF Policy, the Oak Hill II TIF District will contribute to fiscal disparities as opposed to the tax base of the City making the contribution. FINANCIAL OR BUDGET CONSIDERATION: Authorizing the establishment of the Oak Hill II TIF District does not, in itself, commit the EDA/City to any specific level of financial assistance for the proposed project. Procedurally it simply creates the funding vehicle to reimburse Anderson-KM Builders for a portion of its qualified project costs. The terms and amount of TIF assistance are specified within the Development Contract with Oak Hill II 7100 LLC (Anderson-KM Builders) which is to be considered at the February 6th EDA meeting. VISION CONSIDERATION: The proposed project is consistent with elements of Vision St. Louis Park as it facilitates and promotes environmental stewardship and green development. Attachments: Resolution Adopting TIF Plan Oak Hill II TIF Plan Summary (see 011712 EDA Item 7) Oak Hill II TIF Plan (see 011712 EDA Item 7) Prepared by: Greg Hunt, Economic Development Coordinator Reviewed by: Kevin Locke, Community Development Director Approved by: Tom Harmening, City Manager and EDA Executive Director City Council Meeting of January 17, 2012 (Item No. 6a) Page 5 Subject: Public Hearing & Resolution Approving Establishment of Oak Hill II Tax Increment Financing District CITY OF ST. LOUIS PARK HENNEPIN COUNTY STATE OF MINNESOTA RESOLUTION NO. 12 -____ RESOLUTION ADOPTING A MODIFICATION TO THE REDEVELOPMENT PLAN FOR REDEVELOPMENT PROJECT NO. 1; AND ESTABLISHING OAK HILL II TAX INCREMENT FINANCING DISTRICT THEREIN AND ADOPTING A TAX INCREMENT FINANCING PLAN THEREFOR. BE IT RESOLVED by the City Council (the "Council") of the City of St. Louis Park, Minnesota (the "City"), as follows: Section 1. Recitals. 1.01. The Board of Commissioners of the St. Louis Park Economic Development Authority (the "EDA") has heretofore established Redevelopment Project No. 1 and adopted the Redevelopment Plan therefor. It has been proposed by the EDA and the City that the City adopt a Modification to the Redevelopment Plan (the "Redevelopment Plan Modification") for Redevelopment Project No. 1 (the "Project Area") and establish the Oak Hill II Tax Increment Financing District (the "District") therein and adopt a Tax Increment Financing Plan (the "TIF Plan") therefor (the Redevelopment Plan Modification and the TIF Plan are referred to collectively herein as the "Plans"); all pursuant to and in conformity with applicable law, including Minnesota Statutes, Sections 469.090 to 469.1082 and Sections 469.174 to 469.1799, all inclusive, as amended, (the "Act") all as reflected in the Plans, and presented for the Council's consideration. 1.02. The EDA and City have investigated the facts relating to the Plans and have caused the Plans to be prepared. 1.03. The EDA and City have performed all actions required by law to be performed prior to the establishment of the District and the adoption and approval of the proposed Plans, including, but not limited to, notification of Hennepin County and Independent School District No. 283 having taxing jurisdiction over the property to be included in the District, a review of and written comment on the Plans by the City Planning Commission on January 4, 2012, approval of the Plans by the EDA on January 17, 2012, and the holding of a public hearing upon published notice as required by law. 1.04. Certain written reports (the ''Reports") relating to the Plans and to the activities contemplated therein have heretofore been prepared by staff and consultants and submitted to the Council and/or made a part of the City files and proceedings on the Plans. The Reports include data, information and/or substantiation constituting or relating to the basis for the other findings and determinations made in this resolution. The Council hereby confirms, ratifies and adopts the Reports, which are hereby incorporated into and made as fully a part of this resolution to the same extent as if set forth in full herein. City Council Meeting of January 17, 2012 (Item No. 6a) Page 6 Subject: Public Hearing & Resolution Approving Establishment of Oak Hill II Tax Increment Financing District 1.05 The Council recognizes that, pursuant to Minnesota Statutes, Section 469.177, Subd. 3, clause b, there is a mandatory fiscal disparities contribution for the District, an economic development district. 1.06. The City is not modifying the boundaries of the Project Area, but is however, modifying the Redevelopment Plan therefor. Section 2. Findings for the Adoption and Approval of the Redevelopment Plan Modification. 2.01. The Council approves the Redevelopment Plan Modification, and specifically finds that: (a) the land within the Project area would not be available for redevelopment without the financial aid to be sought under this Redevelopment Plan; (b) the Redevelopment Plan, as modified, will afford maximum opportunity, consistent with the needs of the City as a whole, for the development of the Project by private enterprise; and (c) that the Redevelopment Plan, as modified, conforms to the general plan for the development of the City as a whole. Section 3. Findings for the Establishment of the Oak Hill II Tax Increment Financing District. 3.01. The Council hereby finds that the District is in the public interest and is an "economic development district" under Minnesota Statutes, Section 469.174, Subd. 12 of the Act. 3.02. The Council further finds that the proposed development would not occur solely through private investment within the reasonably foreseeable future and that the increased market value of the site that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in the market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of the District permitted by the Tax Increment Financing Plan, that the Plans conform to the general plan for the development or redevelopment of the City as a whole; and that the Plans will afford maximum opportunity consistent with the sound needs of the City as a whole, for the redevelopment or development of the District by private enterprise. 3.03. The Council further finds, declares and determines that the City made the above findings stated in this Section and has set forth the reasons and supporting facts for each determination in writing, attached hereto as Exhibit A. Section 4. Findings for Use of the District to Provide Assistance Pursuant to Section 469.176, Subd. 4c(d) of the Act. 4.01. The Council further expects that the District will meet the requirements of Minnesota Statutes, Section 469.476, Subd. 4c(d) (exempting the District from manufacturing/warehouse/distribution use restrictions), because: (i) the proposed development will create or retain jobs in the State (including construction jobs), and construction of the project would not have commenced before July 1, 2012 without the assistance provided through tax increment under the TIF Plan; City Council Meeting of January 17, 2012 (Item No. 6a) Page 7 Subject: Public Hearing & Resolution Approving Establishment of Oak Hill II Tax Increment Financing District (ii) construction of the project will begin no later than July 1, 2012; and (iii) the City and EDA will request certification of the District by no later than June 30, 2012. Section 5. Public Purpose. 5.01. The adoption of the Plans conforms in all respects to the requirements of the Act and will result in increased employment in the state, and will result in preservation and enhancement of the tax base of the State and thereby serves a public purpose. For the reasons described in Exhibit A, the City believes these benefits directly derive from the tax increment assistance provided under the TIF Plan. A private developer will receive only the assistance needed to make this development financially feasible. As such, any private benefits received by a developer are incidental and do not outweigh the primary public benefits. Section 6. Approval and Adoption of the Plans. 6.01. The Plans, as presented to the Council on this date, including without limitation the findings and statements of objectives contained therein, are hereby approved, ratified, established, and adopted and shall be placed on file in the office of the Economic Development Director. 6.02. The staff of the City, the City's advisors and legal counsel are authorized and directed to proceed with the implementation of the Plans and to negotiate, draft, prepare and present to this Council for its consideration all further plans, resolutions, documents and contracts necessary for this purpose. 6.03 The Auditor of Hennepin County is requested to certify the original net tax capacity of the District, as described in the Plans, and to certify in each year thereafter the amount by which the original net tax capacity has increased or decreased; and the St. Louis Park Economic Development Authority is authorized and directed to forthwith transmit this request to the County Auditor in such form and content as the Auditor may specify, together with a list of all properties within the District, for which building permits have been issued during the 18 months immediately preceding the adoption of this resolution. 6.04. The Economic Development Director is further authorized and directed to file a copy of the Plans with the Commissioner of Revenue and the Office of the State Auditor pursuant to Minnesota Statutes 469.175, Subd. 4a. Reviewed for Administration Adopted by the City Council January 17, 2012 City Manager Mayor Attest: City Clerk City Council Meeting of January 17, 2012 (Item No. 6a) Page 8 Subject: Public Hearing & Resolution Approving Establishment of Oak Hill II Tax Increment Financing District EXHIBIT A RESOLUTION NO. 12 - ____ The reasons and facts supporting the findings for the adoption of the Tax Increment Financing Plan for Oak Hill II Tax Increment Financing District as required pursuant to M.S., Section 469.175, Subd. 3 are as follows: 1. Finding that the Oak Hill II Tax Increment Financing District is an economic development district as defined in M.S., Section 469.174, Subd. 12. Oak Hill II Tax Increment Financing District is a contiguous geographic area within the City's Redevelopment Project No. 1, delineated in the TIF Plan, for the purpose of financing economic development in the City through the use of tax increment. The District is in the public interest because it will facilitate construction of an approximately 21,400 square foot office facility which will increase employment in the state, and preserve and enhance the tax base of the state. Furthermore, the assistance being provided meets the requirements for assistance under Section 469.176, subd. 4c(d) of the Act, because: • The private development to be assisted pursuant to the TIF Plan will create or retain jobs in the state, including construction jobs; • the development consists of construction of an approximately 21,400 square foot office facility in the City, and construction will commence no later than July 1, 2012; • construction of the proposed development would not have commenced before July 1, 2012, without the tax increment financing assistance to be provided pursuant to the TIF Plan; and • the City will file the request for certification of the District by June 30, 2012. 2. Finding that the proposed development, in the opinion of the City Council, would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future and that the increased market value of the site that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in the market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of the Oak Hill II Tax Increment Financing District permitted by the TIF Plan. The proposed development, in the opinion of the City, would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future: This finding is supported by the fact that for several years, the Redeveloper has desired to build an office facility on this site that meets the City's objectives for economic development, but has previously been unable to obtain financing for the project. The location of the proposed development presents several geographic challenges, which elevate costs of construction. The Redeveloper has provided the City with a pro forma and other evidence that without assistance, the Redeveloper would be unable to construct the proposed development. City Council Meeting of January 17, 2012 (Item No. 6a) Page 9 Subject: Public Hearing & Resolution Approving Establishment of Oak Hill II Tax Increment Financing District The increased market value of the site that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of the TIF District permitted by the TIF Plan: The City supported this finding on the grounds that the cost of construction, the difficulty in obtaining financing in today's credit market, and the fact that 50% of the building will be built without a tenant make it unlikely that an office building will be constructed in the next 9 years without public assistance of some kind. The City further determines that these same challenges suggest that no other development of similar scope could reasonably be expected to occur on this site without similar assistance being provided to the development. Therefore, the City concludes as follows: a. The City's estimate of the amount by which the market value of the entire District will increase without the use of tax increment financing is $0. b. If the proposed development occurs, the total increase in market value will be $3,050,600 (see Appendix D and F of the TIF Plan) c. The present value of tax increments from the District for the maximum duration of the district permitted by the TIF Plan is estimated to be $404,262 (see Appendix D and F of the TIF Plan). d. Even if some development other than the proposed development were to occur, the Council finds that no alternative would occur that would produce a market value increase greater than $2,646,338 (the amount in clause b less the amount in clause c) without tax increment assistance. 3. Finding that the TIF Plan for the Oak Hill II Tax Increment Financing District conforms to the general plan for the development or redevelopment of the municipality as a whole. The Planning Commission reviewed the TIF Plan and found that the TIF Plan conforms to the general development plan of the City. 4. Finding that the Tax Increment Financing Plan for Oak Hill II Tax Increment Financing District will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the development of Redevelopment Project No. 1 by private enterprise. The project to be assisted by the District will result in increased employment in the City and the State of Minnesota, increased tax base of the State, and the development of currently vacant and underutilized land by a private business. Tax Increment Financing District Overview City of St. Louis Park Oak Hill II Tax Increment Financing District The following summary contains an overview of the basic elements of the Tax Increment Financing Plan for the Oak Hill II Tax Increment Financing District. More detailed information on each of these topics can be found in the complete TIF Plan. Proposed action: Establishment of the Oak Hill II Tax Increment Financing District ("District") and the adoption of a Tax Increment Financing Plan. ("TIF Plan") Modification of the Redevelopment Plan for Redevelopment Project No. 1, which includes the establishment of the Oak Hill II TIF District. Type of TIF District: An economic development district Parcel Numbers: 17-117-21-42-0072 Proposed Development: The District is being created to facilitate construction of an approximately 21,400 square foot office facility in the City. Please see Appendix A of the TIF Plan for a more detailed project description. Maximum duration: Pursuant to M.S., Section 469.175, Subd. 1, and M.S., Section 469.176, Subd. 1, the duration of the District must be indicated within the TIF Plan. Pursuant to M.S., Section 469.176, Subd. 1b, the duration of the District will be 8 years after receipt of the first increment by the EDA or City. The date of receipt by the City of the first tax increment is expected to be 2014. Thus, it is estimated that the District, including any modifications of the TIF Plan for subsequent phases or other changes, would terminate after 2023, or when the TIF Plan is satisfied. If increment is received in 2013, the term of the District will be 2022. The EDA or City reserves the right to decertify the District prior to the legally required date. Estimated annual tax increment: Up to $70,258 City Council Meeting of January 17, 2012 (Item No. 6a) Subject: Public Hearing & Resolution Approving Establishment of Oak Hill II TIF District Page 10 Page 2 Authorized uses: The TIF Plan contains a budget that authorizes the maximum amount that may be expended: Land/Building Acquisition ....................................................... $20,000 Site Improvements/Preparation .............................................. $150,000 Utilities ..................................................................................... $75,000 Other Qualifying Improvements ............................................ $172,556 Administrative Costs (up to 10%) ............................................ $55,029 PROJECT COSTS TOTAL ................................................... $472,585 Interest ................................................................................... $132,738 PROJECT COST AND INTEREST COST TOTAL ....... $605,323 See Subsection 2-10, page 2-5 of the TIF Plan for the full budget authorization. Form of financing: The project is proposed to be financed by a pay-as-you-go note. Administrative fee: Up to 10% of annual increment, if costs are justified. It is estimated that the City will only utilize 5% of annual increment. Interfund Loan Requirement: If the City wants to pay for administrative expenditures from a tax increment fund, it is recommended that a resolution authorizing a loan from another fund be passed PRIOR to the issuance of the check. 4 Year Activity Rule (§ 469.176 Subd. 6) After four years from the date of certification of the District one of the following activities must have been commenced on each parcel in the District: • Demolition • Rehabilitation • Renovation • Other site preparation (not including utility services such as sewer and water) If the activity has not been started by approximately January 2015, no additional tax increment may be taken from that parcel until the commencement of a qualifying activity. 5 Year Rule (§ 469.1763 Subd. 3) Within 5 years of certification revenues derived from tax increments must be expended or obligated to be expended. Any obligations in the District made after approximately January 2016, will not be eligible for repayment from tax increments. The reasons and facts supporting the findings for the adoption of the TIF Plan for the District, as required pursuant to M.S., Section 469.175, Subd. 3, are included in Exhibit F of the TIF Plan City Council Meeting of January 17, 2012 (Item No. 6a) Subject: Public Hearing & Resolution Approving Establishment of Oak Hill II TIF District Page 11 Page 3 MAPS OF REDEVELOPMENT PROJECT NO. 1 AND THE HARDCOAT TAX INCREMENT FINANCING DISTRICT City Council Meeting of January 17, 2012 (Item No. 6a) Subject: Public Hearing & Resolution Approving Establishment of Oak Hill II TIF District Page 12 Page 4 City Council Meeting of January 17, 2012 (Item No. 6a) Subject: Public Hearing & Resolution Approving Establishment of Oak Hill II TIF District Page 13 As of January 11, 2012 Draft for Public Hearing Modification to the Redevelopment Plan for Redevelopment Project No. 1 and the Tax Increment Financing Plan for the establishment of the Oak Hill II Tax Increment Financing District (an economic development district) within Redevelopment Project No. 1 St. Louis Park Economic Development Authority City of St. Louis Park Hennepin County State of Minnesota Public Hearing: January 17, 2012 Adopted: Prepared by: EHLERS & ASSOCIATES, INC. 3060 Centre Pointe Drive, Roseville, Minnesota 55113-1105 651-697-8500 fax: 651-697-8555 www.ehlers-inc.com City Council Meeting of January 17, 2012 (Item No. 6a) Subject: Public Hearing & Resolution Approving Establishment of Oak Hill II TIF District Page 14 Table of Contents (for reference purposes only) Section 1 - Modification to the Redevelopment Plan for Redevelopment Project No. 1 Foreword ............................................................. 1-1 Section 2 - Tax Increment Financing Plan for the Oak Hill II Tax Increment Financing District Subsection 2-1. Foreword............................................... 2-1 Subsection 2-2. Statutory Authority........................................ 2-1 Subsection 2-3. Statement of Objectives ................................... 2-1 Subsection 2-4. Redevelopment Plan Overview .............................. 2-1 Subsection 2-5. Description of Property in the District and Property To Be Acquired . 2-2 Subsection 2-6. Classification of the District................................. 2-2 Subsection 2-7. Duration and First Year of Tax Increment of the District ........... 2-3 Subsection 2-8. Original Tax Capacity, Tax Rate and Estimated Captured Net Tax Capacity Value/Increment and Notification of Prior Planned Improvements .... 2-3 Subsection 2-9. Sources of Revenue/Bonds to be Issued ...................... 2-4 Subsection 2-10. Uses of Funds ........................................... 2-5 Subsection 2-11. Fiscal Disparities Election.................................. 2-5 Subsection 2-12. Business Subsidies....................................... 2-6 Subsection 2-13. County Road Costs ....................................... 2-7 Subsection 2-14. Estimated Impact on Other Taxing Jurisdictions................. 2-7 Subsection 2-15. Supporting Documentation ................................. 2-9 Subsection 2-16. Definition of Tax Increment Revenues ........................ 2-9 Subsection 2-17. Modifications to the District................................ 2-10 Subsection 2-18. Administrative Expenses .................................. 2-10 Subsection 2-19. Limitation of Increment ................................... 2-11 Subsection 2-20. Use of Tax Increment .................................... 2-12 Subsection 2-21. Excess Increments ...................................... 2-12 Subsection 2-22. Requirements for Agreements with the Developer .............. 2-12 Subsection 2-23. Assessment Agreements ................................. 2-13 Subsection 2-24. Administration of the District ............................... 2-13 Subsection 2-25. Annual Disclosure Requirements ........................... 2-13 Subsection 2-26. Reasonable Expectations ................................. 2-13 Subsection 2-27. Other Limitations on the Use of Tax Increment................. 2-14 Subsection 2-28. Summary.............................................. 2-14 Appendix A Project Description ...................................................... A-1 Appendix B Maps of Redevelopment Project No. 1 and the District .......................... B-1 Appendix C Description of Property to be Included in the District ............................ C-1 Appendix D Estimated Cash Flow for the District ........................................ D-1 Appendix E Minnesota Business Assistance Form ....................................... E-1 City Council Meeting of January 17, 2012 (Item No. 6a) Subject: Public Hearing & Resolution Approving Establishment of Oak Hill II TIF District Page 15 Appendix F Findings Including But/For Qualifications..................................... F-1 City Council Meeting of January 17, 2012 (Item No. 6a) Subject: Public Hearing & Resolution Approving Establishment of Oak Hill II TIF District Page 16 St. Louis Park Economic Development Authority Modification to the Redevelopment Plan for Redevelopment Project No. 1 1-1 Section 1 - Modification to the Redevelopment Plan for Redevelopment Project No. 1 Foreword The following text represents a Modification to the Redevelopment Plan for Redevelopment Project No. 1. This modification represents a continuation of the goals and objectives set forth in the Redevelopment Plan for Redevelopment Project No. 1. Generally, the substantive changes include the establishment of the Oak Hill II Tax Increment Financing District. For further information, a review of the Redevelopment Plan for Redevelopment Project No. 1 is recommended. It is available from the City Clerk at the City of St. Louis Park. Other relevant information is contained in the Tax Increment Financing Plans for the Tax Increment Financing Districts located within Redevelopment Project No. 1. City Council Meeting of January 17, 2012 (Item No. 6a) Subject: Public Hearing & Resolution Approving Establishment of Oak Hill II TIF District Page 17 St. Louis Park Economic Development Authority Tax Increment Financing Plan for the Oak Hill II Tax Increment Financing District 2-1 Section 2 - Tax Increment Financing Plan for the Oak Hill II Tax Increment Financing District Subsection 2-1. Foreword The St. Louis Park Economic Development Authority (the "EDA"), the City of St. Louis Park (the "City"), staff and consultants have prepared the following information to expedite the establishment of the Oak Hill II Tax Increment Financing District (the "District"), an economic development tax increment financing district, located in Redevelopment Project No. 1. Subsection 2-2. Statutory Authority Within the City, there exist areas where public involvement is necessary to cause development or redevelopment to occur. To this end, the EDA and City have certain statutory powers pursuant to Minnesota Statutes ("M.S."), Sections 469.090 to 469.1082, inclusive, as amended, and M.S., Sections 469.174 to 469.1799, inclusive, as amended (the "Tax Increment Financing Act" or "TIF Act"), to assist in financing public costs related to this project. This District is being created pursuant to M.S. Section 469.174, Subd. 12, as modified by, M.S., Section 469.176, Subd. 4c(d). This section contains the Tax Increment Financing Plan (the "TIF Plan") for the District. Other relevant information is contained in the Modification to the Redevelopment Plan for Redevelopment Project No. 1. Subsection 2-3. Statement of Objectives The District currently consists of one parcel of land and adjacent and internal rights-of-way. The District is being created to facilitate construction of an approximately 21,400 square foot office facility in the City. Please see Appendix A for further District information. The EDA expects to enter into a development agreement with Anderson-KM Builders at the time of approval of the TIF Plan and development is expected to occur in 2012. This TIF Plan is expected to achieve many of the objectives outlined in the Redevelopment Plan for Redevelopment Project No. 1. The activities contemplated in the Modification to the Redevelopment Plan and the TIF Plan do not preclude the undertaking of other qualified development or redevelopment activities. These activities are anticipated to occur over the life of Redevelopment Project No. 1 and the District. Subsection 2-4. Redevelopment Plan Overview 1. Property to be Acquired - Selected property located within the District may be acquired by the EDA or City and is further described in this TIF Plan. 2. Relocation - Relocation services, to the extent required by law, are available pursuant to M.S., Chapter 117 and other relevant state and federal laws. 3. Upon approval of a developer's plan relating to the project and completion of the necessary legal requirements, the EDA or City may sell to a developer selected properties that it may acquire within the District or may lease land or facilities to a developer. 4. The EDA or City may perform or provide for some or all necessary acquisition, construction, City Council Meeting of January 17, 2012 (Item No. 6a) Subject: Public Hearing & Resolution Approving Establishment of Oak Hill II TIF District Page 18 St. Louis Park Economic Development Authority Tax Increment Financing Plan for the Oak Hill II Tax Increment Financing District 2-2 relocation, demolition, and required utilities and public street work within the District. 5. The City proposes both public and private infrastructure within the District. The proposed reuse of private property within the District will be for a office building, and there will be continued operation of Redevelopment Project No. 1 after the capital improvements within Redevelopment Project No. 1 have been completed. Subsection 2-5. Description of Property in the District and Property To Be Acquired The District encompasses all property and adjacent rights-of-way and abutting roadways identified by the parcels listed in Appendix C of this TIF Plan. Please also see the map in Appendix B for further information on the location of the District. The City or EDA may acquire any parcel within the District including interior and adjacent street rights of way. Any properties identified for acquisition will be acquired by the City or EDA only in order to accomplish one or more of the following: storm sewer improvements; provide land for needed public streets, utilities and facilities; carry out land acquisition, site improvements, clearance and/or development to accomplish the uses and objectives set forth in this plan. The City of EDA may acquire property by gift, dedication, condemnation or direct purchase from willing sellers in order to achieve the objectives of this TIF Plan. Such acquisitions will be undertaken only when there is assurance of funding to finance the acquisition and related costs. Subsection 2-6. Classification of the District The District is an economic development district as defined in M.S. 469.174, Subd. 12, as modified by M.S., Section 469.176, Subd. 4c(d). In order to create an economic development district under general law (M.S., Section 469.174 Subd. 12), the EDA or City must find that the District is in the public interest because: (1) it will discourage commerce, industry, or manufacturing from moving their operations to another state or municipality; or (2) it will result in increased employment in the state; or (3) it will result in preservation and enhancement of the tax base of the state. In addition, M.S., Section 469.176, Subd. 4c provides that assistance from a general law economic development district may not be used to provide assistance to development if more than 15 percent of the buildings and ancillary facilities (determined on a square footage basis), are used for other than certain specified purposes (largely manufacturing, warehousing and distribution facilities). However, M.S., Section 469.176, Subd. 4c(d) provides a limited-time exception to these general law rules. Under this provision (originally enacted in 2010 legislature and extended in 2011 legislature), a City may provide assistance to economic development districts, notwithstanding the normal findings required under M.S., Section 469.174, Subd. 12, and notwithstanding the limitation on types of assisted development under M.S., Section 469.176, Subd. 4c, subject to certain conditions. To satisfy the requirement of M.S., Section 469.176, Subd. 4c(d), the City finds that the following conditions are satisfied: (1) the project will create or retain jobs in this state, including construction jobs, and construction of the project would not have commenced before July 1, 2012, without the authority providing assistance under the provisions of this paragraph; City Council Meeting of January 17, 2012 (Item No. 6a) Subject: Public Hearing & Resolution Approving Establishment of Oak Hill II TIF District Page 19 St. Louis Park Economic Development Authority Tax Increment Financing Plan for the Oak Hill II Tax Increment Financing District 2-3 (2) construction of the project will begin no later than July 1, 2012; (3) the request for certification of the district will be made no later than June 30, 2012; and (4) the assistance will not be used for the development of housing. In meeting the statutory criteria the EDA and City rely on the following facts and findings: The City is creating the District is pursuant to M.S. Sections 469.176, Subd. 4c(d) in order to assist in the construction of an approximately 21,400 square foot office facility. If construction does not commence by July 1, 2012, the City and EDA will not grant assistance unless the proposed facility meets the criteria in M.S., Section 469.176, Subd. 4c(a), and satisfies the findings required under M.S., Section 469.174, Subd. 12. Pursuant to M.S., Section 469.176, Subd. 7, the District does not contain any parcel or part of a parcel that qualified under the provisions of M.S., Sections 273.111 or 273.112 or Chapter 473H for taxes payable in any of the five calendar years before the filing of the request for certification of the District. Subsection 2-7. Duration and First Year of Tax Increment of the District Pursuant to M.S., Section 469.175, Subd. 1, and M.S., Section 469.176, Subd. 1, the duration of the District must be indicated within the TIF Plan. Pursuant to M.S., Section 469.176, Subd. 1b., the duration of the District will be 8 years after receipt of the first increment by the EDA or City. The date of receipt by the City of the first tax increment is expected to be 2014. Thus, it is estimated that the District, including any modifications of the TIF Plan for subsequent phases or other changes, would terminate after 2023, or when the TIF Plan is satisfied. If increment is received in 2013, the term of the District will be 2022. The EDA or City reserves the right to decertify the District prior to the legally required date. Subsection 2-8. Original Tax Capacity, Tax Rate and Estimated Captured Net Tax Capacity Value/Increment and Notification of Prior Planned Improvements Pursuant to M.S., Section 469.174, Subd. 7 and M.S., Section 469.177, Subd. 1, the Original Net Tax Capacity (ONTC) as certified for the District will be based on the market values placed on the property by the assessor in 2011 for taxes payable 2012. Pursuant to M.S., Section 469.177, Subds. 1 and 2, the County Auditor shall certify in each year (beginning in the payment year 2013) the amount by which the original value has increased or decreased as a result of: 1. Change in tax exempt status of property; 2. Reduction or enlargement of the geographic boundaries of the district; 3. Change due to adjustments, negotiated or court-ordered abatements; 4. Change in the use of the property and classification; 5. Change in state law governing class rates; or 6. Change in previously issued building permits. In any year in which the current Net Tax Capacity (NTC) value of the District declines below the ONTC, no value will be captured and no tax increment will be payable to the EDA or City. The original local tax rate for the District will be the local tax rate for taxes payable 2012, assuming the request for certification is made before June 30, 2012. The ONTC and the Original Local Tax Rate for the District appear in the table below. City Council Meeting of January 17, 2012 (Item No. 6a) Subject: Public Hearing & Resolution Approving Establishment of Oak Hill II TIF District Page 20 St. Louis Park Economic Development Authority Tax Increment Financing Plan for the Oak Hill II Tax Increment Financing District 2-4 Pursuant to M.S., Section 469.174 Subd. 4 and M.S., Section 469.177, Subd. 1, 2, and 4, the estimated Captured Net Tax Capacity (CTC) of the District, within Redevelopment Project No. 1, upon completion of the projects within the District, will annually approximate tax increment revenues as shown in the table below. The EDA and City request 100 percent of the available increase in tax capacity for repayment of its obligations and current expenditures, beginning in the tax year payable 2013. The Project Tax Capacity (PTC) listed is an estimate of values when the projects within the District are completed. Project Estimated Tax Capacity upon Completion (PTC)$95,023 Original Estimated Net Tax Capacity (ONTC)$13,250 Fiscal Disparities Contribution $28,213 Estimated Captured Tax Capacity (CTC)$53,560 Original Local Tax Rate 1.31176 EstimatedPay 2012 Estimated Annual Tax Increment (CTC x Local Tax Rate)$70,258 Percent Retained by the EDA 100% Tax capacity includes a 3% inflation factor for the duration of the District. The tax capacity included in thischart is the estimated tax capacity of the District in year 8. The tax capacity of the District in year one isestimated to be $75,012. Pursuant to M.S., Section 469.177, Subd. 4, the EDA shall, after a due and diligent search, accompany its request for certification to the County Auditor or its notice of the District enlargement pursuant to M.S., Section 469.175, Subd. 4, with a listing of all properties within the District or area of enlargement for which building permits have been issued during the eighteen (18) months immediately preceding approval of the TIF Plan by the municipality pursuant to M.S., Section 469.175, Subd. 3. The County Auditor shall increase the original net tax capacity of the District by the net tax capacity of improvements for which a building permit was issued. The City has reviewed the area to be included in the District and determined that no building permits have been issued during the 18 months immediately preceding approval of the TIF Plan by the City. Subsection 2-9. Sources of Revenue/Bonds to be Issued The costs outlined in the Uses of Funds will be financed primarily through the annual collection of tax increments. The EDA or City reserves the right to incur bonds or other indebtedness as a result of the TIF Plan. As presently proposed, the projects within the District will be financed by a pay-as-you-go note. Any refunding amounts will be deemed a budgeted cost without a formal TIF Plan Modification. This provision does not obligate the EDA or City to incur debt. The EDA or City will issue bonds or incur other debt only upon the determination that such action is in the best interest of the City. The total estimated tax increment revenues for the District are shown in the table on the following page: City Council Meeting of January 17, 2012 (Item No. 6a) Subject: Public Hearing & Resolution Approving Establishment of Oak Hill II TIF District Page 21 St. Louis Park Economic Development Authority Tax Increment Financing Plan for the Oak Hill II Tax Increment Financing District 2-5 SOURCES OF FUNDS TOTAL Tax Increment $550,294 Interest $55,029 TOTAL $605,323 The EDA or City may issue bonds (as defined in the TIF Act) secured in whole or in part with tax increments from the District in a maximum principal amount of $472,585. Such bonds may be in the form of pay-as-you- go notes, revenue bonds or notes, general obligation bonds, or interfund loans. This estimate of total bonded indebtedness is a cumulative statement of authority under this TIF Plan as of the date of approval. Subsection 2-10. Uses of Funds Currently under consideration for the District is a proposal to facilitate construction of an approximately 21,400 square foot office facility. The EDA and City have determined that it will be necessary to provide assistance to the project(s) for certain District costs, as described. The EDA has studied the feasibility of the development or redevelopment of property in and around the District. To facilitate the establishment and development or redevelopment of the District, this TIF Plan authorizes the use of tax increment financing to pay for the cost of certain eligible expenses. The estimate of public costs and uses of funds associated with the District is outlined in the following table. USES OF TAX INCREMENT FUNDS TOTAL Land/Building Acquisition $20,000 Site Improvements/Preparation $150,000 Utilities $75,000 Other Qualifying Improvements $172,556 Administrative Costs (up to 10%)$55,029 PROJECT COST TOTAL $472,585 Interest $132,738 PROJECT AND INTEREST COSTS TOTAL $605,323 The total project cost, including financing costs (interest) listed in the table above does not exceed the total projected tax increments for the District as shown in Appendix D. Estimated capital and administrative costs listed above are subject to change among categories by modification of the TIF Plan without hearings and notices as required for approval of the initial TIF Plan, so long as the total capital and administrative costs combined do not exceed the total listed above. Further, the EDA or City may spend up to 20 percent of the tax increments from the District for activities (described in the table above) located outside the boundaries of the District but within the boundaries of the Project (including administrative costs, which are considered to be spend outside the District), subject to all other terms and conditions of this TIF Plan. City Council Meeting of January 17, 2012 (Item No. 6a) Subject: Public Hearing & Resolution Approving Establishment of Oak Hill II TIF District Page 22 St. Louis Park Economic Development Authority Tax Increment Financing Plan for the Oak Hill II Tax Increment Financing District 2-6 Subsection 2-11. Fiscal Disparities Election Pursuant to M.S., Section 469.177, Subd. 3, clause b, the EDA or City must calculate fiscal disparities using the following method of computation: (b) The following method of computation applies to any economic development district for which the request for certification was made after June 30, 1997, and to any other district for which the governing body, by resolution approving the tax increment financing plan pursuant to M.S., Section 469.177, Subd. 3, elects: (1) The original net tax capacity shall be determined before the application of the fiscal disparity provisions of Chapter 276A or 473F. The current net tax capacity shall exclude any fiscal disparity commercial-industrial net tax capacity increase between the original year and the current year multiplied by the fiscal disparity ratio determined pursuant to M.S., Section 276A.06, subdivision 7 or M.S., Section 473F.08, subdivision 6. Where the original net tax capacity is equal to or greater than the current net tax capacity, there is no captured tax capacity and no tax increment determination. Where the original tax capacity is less than the current tax capacity, the difference between the original net tax capacity and the current net tax capacity is the captured net tax capacity. This amount less any portion thereof which the authority has designated, in its tax increment financing plan, to share with the local taxing districts is the retained captured net tax capacity of the authority. (2) The county auditor shall exclude the retained captured net tax capacity of the authority from the net tax capacity of the local taxing districts in determining local taxing district tax rates. The local tax rates so determined are to be extended against the retained captured net tax capacity of the authority as well as the net tax capacity of the local taxing districts. The tax generated by the extension of the less of (A) the local taxing district tax rates or (B) the original local tax rate to the retained captured net tax capacity of the authority is the tax increment of the authority. Subsection 2-12. Business Subsidies Pursuant to M.S., Section 116J.993, Subd. 3, the following forms of financial assistance are not considered a business subsidy: (1) A business subsidy of less than $150,000; (2) Assistance that is generally available to all businesses or to a general class of similar businesses, such as a line of business, size, location, or similar general criteria; (3) Public improvements to buildings or lands owned by the state or local government that serve a public purpose and do not principally benefit a single business or defined group of businesses at the time the improvements are made; (4) Redevelopment property polluted by contaminants as defined in M.S., Section 116J.552, Subd. 3; (5) Assistance provided for the sole purpose of renovating old or decaying building stock or bringing it up to code and assistance provided for designated historic preservation districts, provided that the assistance is equal to or less than 50% of the total cost; (6) Assistance to provide job readiness and training services if the sole purpose of the assistance is to provide those services; (7) Assistance for housing; (8) Assistance for pollution control or abatement, including assistance for a tax increment financing hazardous substance subdistrict as defined under M.S., Section 469.174, Subd. 23; City Council Meeting of January 17, 2012 (Item No. 6a) Subject: Public Hearing & Resolution Approving Establishment of Oak Hill II TIF District Page 23 St. Louis Park Economic Development Authority Tax Increment Financing Plan for the Oak Hill II Tax Increment Financing District 2-7 (9) Assistance for energy conservation; (10) Tax reductions resulting from conformity with federal tax law; (11) Workers' compensation and unemployment compensation; (12) Benefits derived from regulation; (13) Indirect benefits derived from assistance to educational institutions; (14) Funds from bonds allocated under chapter 474A, bonds issued to refund outstanding bonds, and bonds issued for the benefit of an organization described in section 501 (c) (3) of the Internal Revenue Code of 1986, as amended through December 31, 1999; (15) Assistance for a collaboration between a Minnesota higher education institution and a business; (16) Assistance for a tax increment financing soils condition district as defined under M.S., Section 469.174, Subd. 19; (17) Redevelopment when the recipient's investment in the purchase of the site and in site preparation is 70 percent or more of the assessor's current year's estimated market value; (18) General changes in tax increment financing law and other general tax law changes of a principally technical nature; (19) Federal assistance until the assistance has been repaid to, and reinvested by, the state or local government agency; (20) Funds from dock and wharf bonds issued by a seaway port authority; (21) Business loans and loan guarantees of $150,000 or less; (22) Federal loan funds provided through the United States Department of Commerce, Economic Development Administration; and (23) Property tax abatements granted under M.S., Section 469.1813 to property that is subject to valuation under Minnesota Rules, chapter 8100. The EDA will comply with M.S., Sections 116J.993 to 116J.995 to the extent the tax increment assistance under this TIF Plan does not fall under any of the above exemptions. Subsection 2-13. County Road Costs Pursuant to M.S., Section 469.175, Subd. 1a, the county board may require the EDA or City to pay for all or part of the cost of county road improvements if the proposed development to be assisted by tax increment will, in the judgment of the county, substantially increase the use of county roads requiring construction of road improvements or other road costs and if the road improvements are not scheduled within the next five years under a capital improvement plan or within five years under another county plan. If the county elects to use increments to improve county roads, it must notify the EDA or City within forty- five days of receipt of this TIF Plan. In the opinion of the EDA and City and consultants, the proposed development outlined in this TIF Plan will have little or no impact upon county roads, therefore the TIF Plan was not forwarded to the county 45 days prior to the public hearing. The EDA and City are aware that the county could claim that tax increment should be used for county roads, even after the public hearing. Subsection 2-14. Estimated Impact on Other Taxing Jurisdictions The estimated impact on other taxing jurisdictions assumes that the redevelopment contemplated by the TIF Plan would occur without the creation of the District. However, the EDA or City has determined that such development or redevelopment would not occur "but for" tax increment financing and that, therefore, the fiscal impact on other taxing jurisdictions is $0. The estimated fiscal impact of the District would be as follows if the "but for" test was not met: City Council Meeting of January 17, 2012 (Item No. 6a) Subject: Public Hearing & Resolution Approving Establishment of Oak Hill II TIF District Page 24 St. Louis Park Economic Development Authority Tax Increment Financing Plan for the Oak Hill II Tax Increment Financing District 2-8 IMPACT ON TAX BASE Estimated 2011/Pay 20112 Total Net Tax Capacity Estimated Captured Tax Capacity (CTC) Upon Completion Percent of CTC to Entity Total Hennepin County 1,253,423,199 53,560 0.0043% City of St. Louis Park 49,781,486 53,560 0.1076% St. Louis Park ISD No. 283 47,211,090 53,560 0.1134% IMPACT ON TAX RATES Estimated Pay 2012 Extension Rates Percent of Total CTC Potential Taxes Hennepin County 0.487770 37.18% 53,560 26,125 City of St. Louis Park 0.455430 34.72% 53,560 24,393 St. Louis Park ISD No. 283 0.254800 19.42% 53,560 13,647 Other 0.113760 8.67%53,560 6,093 Total 1.311760 100.00%70,258 The estimates listed above display the captured tax capacity when all construction is completed. The tax rate used for calculations is the estimated Pay 2012 rate. The total net capacity for the entities listed above are based on estimated Pay 2012 figures. The District will be certified under the actual Pay 2012 rates, which were unavailable at the time this TIF Plan was prepared. Pursuant to M.S. Section 469.175 Subd. 2(b): (1) Estimate of total tax increment. It is estimated that the total amount of tax increment that will be generated over the life of the District is $550,294; (2) Probable impact of the District on city provided services and ability to issue debt. An impact of the District on police protection is expected to be minimal. The City does track all calls for service including property-type calls and crimes. With any addition of new businesses, police calls for service will likely be increased. The City does not expect that the proposed development, in and of itself, will necessitate new capital investment in vehicles or require that the City hire additional officers. The probable impact of the District on fire protection is not expected to be significant. Typically new buildings generate few calls, if any, and are of superior construction. A building constructed to current safety standards with automatic fire detection and suppression systems, such as the one proposed, will significantly reduce service calls and protect human life and safety. The impact of the District on public infrastructure is expected to be minimal. The development is not expected to significantly impact any traffic movements in the area. The current infrastructure for sanitary sewer, storm sewer and water will be able to handle the additional volume generated from the proposed development. Based on the development plans, there are no additional costs associated City Council Meeting of January 17, 2012 (Item No. 6a) Subject: Public Hearing & Resolution Approving Establishment of Oak Hill II TIF District Page 25 St. Louis Park Economic Development Authority Tax Increment Financing Plan for the Oak Hill II Tax Increment Financing District 2-9 with street maintenance, sweeping, plowing, lighting and sidewalks. The development in the District is not expected to contribute to sanitary sewer (SAC) and water (WAC) connection fees. The probable impact of any District general obligation tax increment bonds on the ability to issue debt for general fund purposes is expected to be minimal. It is not anticipated that there will be any general obligation debt issued in relation to this project, therefore there will be no impact on the City's ability to issue future debt or on the City's debt limit. (3) Estimated amount of tax increment attributable to school district levies. It is estimated that the amount of tax increments over the life of the District that would be attributable to school district levies, assuming the school district's share of the total local tax rate for all taxing jurisdictions remained the same, is $106,867; (4) Estimated amount of tax increment attributable to county levies. It is estimated that the amount of tax increments over the life of the District that would be attributable to county levies, assuming the county's share of the total local tax rate for all taxing jurisdictions remained the same, is $204,599; (5) Additional information requested by the county or school district. The City is not aware of any standard questions in a county or school district written policy regarding tax increment districts and impact on county or school district services. The county or school district must request additional information pursuant to M.S. Section 469.175 Subd. 2(b) within 15 days after receipt of the tax increment financing plan. No requests for additional information from the county or school district regarding the proposed development for the District have been received. Subsection 2-15. Supporting Documentation Pursuant to M.S. Section 469.175, Subd. 1 (a), clause 7 the TIF Plan must contain identification and description of studies and analyses used to make the determination set forth in M.S. Section 469.175, Subd. 3, clause (b)(2) and the findings are required in the resolution approving the District. Following is a list of reports and studies on file at the City that support the EDA and City's findings: • A list of applicable studies will be listed here prior to the public hearing. Subsection 2-16. Definition of Tax Increment Revenues Pursuant to M.S., Section 469.174, Subd. 25, tax increment revenues derived from a tax increment financing district include all of the following potential revenue sources: 1. Taxes paid by the captured net tax capacity, but excluding any excess taxes, as computed under M.S., Section 469.177; 2. The proceeds from the sale or lease of property, tangible or intangible, to the extent the property was purchased by the Authority with tax increments; 3. Principal and interest received on loans or other advances made by the Authority with tax increments; 4. Interest or other investment earnings on or from tax increments; 5. Repayments or return of tax increments made to the Authority under agreements for districts for which the request for certification was made after August 1, 1993; and 6. The market value homestead credit paid to the Authority under M.S., Section 273.1384. City Council Meeting of January 17, 2012 (Item No. 6a) Subject: Public Hearing & Resolution Approving Establishment of Oak Hill II TIF District Page 26 St. Louis Park Economic Development Authority Tax Increment Financing Plan for the Oak Hill II Tax Increment Financing District 2-10 Subsection 2-17. Modifications to the District In accordance with M.S., Section 469.175, Subd. 4, any: 1. Reduction or enlargement of the geographic area of the District, if the reduction does not meet the requirements of M.S., Section 469.175, Subd. 4(e); 2. Increase in amount of bonded indebtedness to be incurred; 3. A determination to capitalize interest on debt if that determination was not a part of the original TIF Plan; 4. Increase in the portion of the captured net tax capacity to be retained by the EDA or City; 5. Increase in the estimate of the cost of the District, including administrative expenses, that will be paid or financed with tax increment from the District; or 6. Designation of additional property to be acquired by the EDA or City, shall be approved upon the notice and after the discussion, public hearing and findings required for approval of the original TIF Plan. Pursuant to M.S., Section 469.175 Subd. 4(f), the geographic area of the District may be reduced, but shall not be enlarged after five years following the date of certification of the original net tax capacity by the county auditor. If an economic development district is enlarged, the reasons and supporting facts for the determination that the addition to the district meets the criteria of M.S., Section 469.174, Subd. 12 must be documented in writing and retained. The requirements of this paragraph do not apply if (1) the only modification is elimination of parcel(s) from the District and (2) (A) the current net tax capacity of the parcel(s) eliminated from the District equals or exceeds the net tax capacity of those parcel(s) in the District's original net tax capacity or (B) the EDA agrees that, notwithstanding M.S., Section 469.177, Subd. 1, the original net tax capacity will be reduced by no more than the current net tax capacity of the parcel(s) eliminated from the District. Subsection 2-18. Administrative Expenses In accordance with M.S., Section 469.174, Subd. 14, administrative expenses means all expenditures of the EDA or City, other than: 1. Amounts paid for the purchase of land; 2. Amounts paid to contractors or others providing materials and services, including architectural and engineering services, directly connected with the physical development of the real property in the District; 3. Relocation benefits paid to or services provided for persons residing or businesses located in the District; or 4. Amounts used to pay principal or interest on, fund a reserve for, or sell at a discount bonds issued pursuant to M.S., Section 469.178; or 5. Amounts used to pay other financial obligations to the extent those obligations were used to finance costs described in clauses (1) to (3). For districts for which the request for certification were made before August 1, 1979, or after June 30, 1982, and before August 1, 2001, administrative expenses also include amounts paid for services provided by bond counsel, fiscal consultants, and planning or economic development consultants. Pursuant to M.S., Section 469.176, Subd. 3, tax increment may be used to pay any authorized and documented administrative expenses for the District up to but not to exceed 10 percent of the total estimated tax increment expenditures authorized by the TIF Plan or the total tax increments, as defined by M.S., Section 469.174, Subd. 25, clause (1), from the District, whichever is less. City Council Meeting of January 17, 2012 (Item No. 6a) Subject: Public Hearing & Resolution Approving Establishment of Oak Hill II TIF District Page 27 St. Louis Park Economic Development Authority Tax Increment Financing Plan for the Oak Hill II Tax Increment Financing District 2-11 For districts for which certification was requested after July 31, 2001, no tax increment may be used to pay any administrative expenses for District costs which exceed ten percent of total estimated tax increment expenditures authorized by the TIF Plan or the total tax increments, as defined in M.S., Section 469.174, Subd. 25, clause (1), from the District, whichever is less. Pursuant to M.S., Section 469.176, Subd. 4h, tax increments may be used to pay for the County's actual administrative expenses incurred in connection with the District and are not subject to the percentage limits of M.S., Section 469.176, Subd. 3. The county may require payment of those expenses by February 15 of the year following the year the expenses were incurred. Pursuant to M.S., Section 469. 177, Subd. 11, the County Treasurer shall deduct an amount (currently .36 percent) of any increment distributed to the EDA or City and the County Treasurer shall pay the amount deducted to the State Commissioner of Management and Budget for deposit in the state general fund to be appropriated to the State Auditor for the cost of financial reporting of tax increment financing information and the cost of examining and auditing authorities' use of tax increment financing. This amount may be adjusted annually by the Commissioner of Revenue. Subsection 2-19. Limitation of Increment The tax increment pledged to the payment of bonds and interest thereon may be discharged and the District may be terminated if sufficient funds have been irrevocably deposited in the debt service fund or other escrow account held in trust for all outstanding bonds to provide for the payment of the bonds at maturity or redemption date. Pursuant to M.S., Section 469.176, Subd. 6: if, after four years from the date of certification of the original net tax capacity of the tax increment financing district pursuant to M.S., Section 469.177, no demolition, rehabilitation or renovation of property or other site preparation, including qualified improvement of a street adjacent to a parcel but not installation of utility service including sewer or water systems, has been commenced on a parcel located within a tax increment financing district by the authority or by the owner of the parcel in accordance with the tax increment financing plan, no additional tax increment may be taken from that parcel and the original net tax capacity of that parcel shall be excluded from the original net tax capacity of the tax increment financing district. If the authority or the owner of the parcel subsequently commences demolition, rehabilitation or renovation or other site preparation on that parcel including qualified improvement of a street adjacent to that parcel, in accordance with the tax increment financing plan, the authority shall certify to the county auditor that the activity has commenced and the county auditor shall certify the net tax capacity thereof as most recently certified by the commissioner of revenue and add it to the original net tax capacity of the tax increment financing district. The county auditor must enforce the provisions of this subdivision. The authority must submit to the county auditor evidence that the required activity has taken place for each parcel in the district. The evidence for a parcel must be submitted by February 1 of the fifth year following the year in which the parcel was certified as included in the district. For purposes of this subdivision, qualified improvements of a street are limited to (1) construction or opening of a new street, (2) relocation of a street, and (3) substantial reconstruction or rebuilding of an existing street. The EDA or City or a property owner must improve parcels within the District by approximately January 2015 and report such actions to the County Auditor. City Council Meeting of January 17, 2012 (Item No. 6a) Subject: Public Hearing & Resolution Approving Establishment of Oak Hill II TIF District Page 28 St. Louis Park Economic Development Authority Tax Increment Financing Plan for the Oak Hill II Tax Increment Financing District 2-12 Subsection 2-20. Use of Tax Increment The EDA or City hereby determines that it will use 100 percent of the captured net tax capacity of taxable property located in the District for the following purposes: 1. To pay the principal of and interest on bonds issued to finance a project; 2. to finance, or otherwise pay the cost of redevelopment of the Redevelopment Project No. 1 pursuant to M.S., Sections 469.090 to 469.1082; 3. To pay for project costs as identified in the budget set forth in the TIF Plan; 4. To finance, or otherwise pay for other purposes as provided in M.S., Section 469.176, Subd. 4; 5. To pay principal and interest on any loans, advances or other payments made to or on behalf of the EDA or City or for the benefit of Redevelopment Project No. 1 by a developer; 6. To finance or otherwise pay premiums and other costs for insurance or other security guaranteeing the payment when due of principal of and interest on bonds pursuant to the TIF Plan or pursuant to M.S., Chapter 462C. M.S., Sections 469.152 through 469.165, and/or M.S., Sections 469.178; and 7. To accumulate or maintain a reserve securing the payment when due of the principal and interest on the tax increment bonds or bonds issued pursuant to M.S., Chapter 462C, M.S., Sections 469.152 through 469.165, and/or M.S., Sections 469.178. These revenues shall not be used to circumvent any levy limitations applicable to the City nor for other purposes prohibited by M.S., Section 469.176, Subd. 4. Tax increments generated in the District will be paid by Hennepin County to the EDA for the Tax Increment Fund of said District. The EDA or City will pay to the developer(s) annually an amount not to exceed an amount as specified in a developer's agreement to reimburse the costs of land acquisition, public improvements, demolition and relocation, site preparation, and administration. Remaining increment funds will be used for EDA or City administration (up to 10 percent) and for the costs of public improvement activities outside the District. Subsection 2-21. Excess Increments Excess increments, as defined in M.S., Section 469.176, Subd. 2, shall be used only to do one or more of the following: 1. Prepay any outstanding bonds; 2. Discharge the pledge of tax increment for any outstanding bonds; 3. Pay into an escrow account dedicated to the payment of any outstanding bonds; or 4. Return the excess to the County Auditor for redistribution to the respective taxing jurisdictions in proportion to their local tax rates. The EDA or City must spend or return the excess increments under paragraph (c) within nine months after the end of the year. In addition, the EDA or City may, subject to the limitations set forth herein, choose to modify the TIF Plan in order to finance additional public costs in Redevelopment Project No. 1 or the District. Subsection 2-22. Requirements for Agreements with the Developer The EDA or City will review any proposal for private development to determine its conformance with the Redevelopment Plan and with applicable municipal ordinances and codes. To facilitate this effort, the City Council Meeting of January 17, 2012 (Item No. 6a) Subject: Public Hearing & Resolution Approving Establishment of Oak Hill II TIF District Page 29 St. Louis Park Economic Development Authority Tax Increment Financing Plan for the Oak Hill II Tax Increment Financing District 2-13 following documents may be requested for review and approval: site plan, construction, mechanical, and electrical system drawings, landscaping plan, grading and storm drainage plan, signage system plan, and any other drawings or narrative deemed necessary by the EDA or City to demonstrate the conformance of the development with City plans and ordinances. The EDA or City may also use the Agreements to address other issues related to the development. Pursuant to M.S., Section 469.176, Subd. 5, no more than 10 percent, by acreage, of the property to be acquired in the District as set forth in the TIF Plan shall at any time be owned by the EDA or City as a result of acquisition with the proceeds of bonds issued pursuant to M.S., Section 469.178 to which tax increments from property acquired is pledged, unless prior to acquisition in excess of 10 percent of the acreage, the EDA or City concluded an agreement for the development of the property acquired and which provides recourse for the EDA or City should the development not be completed. Subsection 2-23. Assessment Agreements Pursuant to M.S., Section 469.177, Subd. 8, the EDA or City may enter into a written assessment agreement in recordable form with the developer of property within the District which establishes a minimum market value of the land and completed improvements for the duration of the District. The assessment agreement shall be presented to the County Assessor who shall review the plans and specifications for the improvements to be constructed, review the market value previously assigned to the land upon which the improvements are to be constructed and, so long as the minimum market value contained in the assessment agreement appears, in the judgment of the assessor, to be a reasonable estimate, the County Assessor shall also certify the minimum market value agreement. Subsection 2-24. Administration of the District Administration of the District will be handled by the Economic Development Coordinator. Subsection 2-25. Annual Disclosure Requirements Pursuant to M.S., Section 469.175, Subds. 5, 6, and 6b the EDA or City must undertake financial reporting for all tax increment financing districts to the Office of the State Auditor, County Board and County Auditor on or before August 1 of each year. M.S., Section 469.175, Subd. 5 also provides that an annual statement shall be published in a newspaper of general circulation in the City on or before August 15. If the City fails to make a disclosure or submit a report containing the information required by M.S., Section 469.175 Subd. 5 and Subd. 6, the OSA will direct the County Auditor to withhold the distribution of tax increment from the District. Subsection 2-26. Reasonable Expectations As required by the TIF Act, in establishing the District, the determination has been made that the anticipated development would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future and that the increased market value of the site that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in the market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of the District permitted by the TIF Plan. In making said determination, reliance has been placed upon written representation made by the developer to such effects and upon EDA and City staff awareness of the feasibility of developing the project site(s) within the District. A comparative analysis of estimated market values both with and without establishment of the District and City Council Meeting of January 17, 2012 (Item No. 6a) Subject: Public Hearing & Resolution Approving Establishment of Oak Hill II TIF District Page 30 St. Louis Park Economic Development Authority Tax Increment Financing Plan for the Oak Hill II Tax Increment Financing District 2-14 the use of tax increments has been performed as described above. Such analysis is included with the cashflow in Appendix D, and indicates that the increase in estimated market value of the proposed development (less the indicated subtractions) exceeds the estimated market value of the site absent the establishment of the District and the use of tax increments. Subsection 2-27. Other Limitations on the Use of Tax Increment 1. General Limitations. All revenue derived from tax increment shall be used in accordance with the TIF Plan. The revenues shall be used to finance, or otherwise pay the cost of redevelopment of the Redevelopment Project No. 1 pursuant to M.S., Sections 469.090 to 469.1082.Tax increments may not be used to circumvent existing levy limit law. No tax increment may be used for the acquisition, construction, renovation, operation, or maintenance of a building to be used primarily and regularly for conducting the business of a municipality, county, school district, or any other local unit of government or the state or federal government. This provision does not prohibit the use of revenues derived from tax increments for the construction or renovation of a parking structure. 2. Pooling Limitations. At least 80 percent of tax increments from the District must be expended on activities in the District or to pay bonds, to the extent that the proceeds of the bonds were used to finance activities within said district or to pay, or secure payment of, debt service on credit enhanced bonds. Not more than 20 percent of said tax increments may be expended, through a development fund or otherwise, on activities outside of the District except to pay, or secure payment of, debt service on credit enhanced bonds. For purposes of applying this restriction, all administrative expenses must be treated as if they were solely for activities outside of the District. 3. Five Year Limitation on Commitment of Tax Increments. Tax increments derived from the District shall be deemed to have satisfied the 80 percent test set forth in paragraph (2) above only if the five year rule set forth in M.S., Section 469.1763, Subd. 3, has been satisfied; and beginning with the sixth year following certification of the District, 80 percent of said tax increments that remain after expenditures permitted under said five year rule must be used only to pay previously committed expenditures or credit enhanced bonds as more fully set forth in M.S., Section 469.1763, Subd. 5. Subsection 2-28. Summary The St. Louis Park Economic Development Authority is establishing the District to preserve and enhance the tax base, and provide employment opportunities in the City. The TIF Plan for the District was prepared by Ehlers & Associates, Inc., 3060 Centre Pointe Drive, Roseville, Minnesota 55113-1105, telephone (651) 697- 8500. City Council Meeting of January 17, 2012 (Item No. 6a) Subject: Public Hearing & Resolution Approving Establishment of Oak Hill II TIF District Page 31 Appendix A-1 Appendix A Project Description Newly-formed Anderson-KM Builders is currently operating from office locations in St. Louis Park and in Minneapolis. The full-service real estate development, design management, and construction company plans to build a new office facility and consolidate its operations there. The proposed office site is the property owned by former Anderson Builders at 3340 Republic Avenue. The proposed Oak Hill II office building will be approximately 21,450 SF and two stories. Oak Hill II will be an attractive brick structure designed to complement the original Oak Hill office building next door. Anderson-KM Builders will occupy approximately half the new building (6,001 SF of office and 4,715 SF of storage). The remaining 10,716 SF will be built out as office space and leased to one or more tenants. Oak Hill II will be marketed to general office users and specialty medical users given its proximity to Methodist Hospital. City Council Meeting of January 17, 2012 (Item No. 6a) Subject: Public Hearing & Resolution Approving Establishment of Oak Hill II TIF District Page 32 Appendix B-1 Appendix B Maps of Redevelopment Project No. 1 and the District City Council Meeting of January 17, 2012 (Item No. 6a) Subject: Public Hearing & Resolution Approving Establishment of Oak Hill II TIF District Page 33 City Council Meeting of January 17, 2012 (Item No. 6a) Subject: Public Hearing & Resolution Approving Establishment of Oak Hill II TIF DistrictPage 34 City Council Meeting of January 17, 2012 (Item No. 6a) Subject: Public Hearing & Resolution Approving Establishment of Oak Hill II TIF DistrictPage 35 Appendix C-1 Appendix C Description of Property to be Included in the District The District encompasses all property and adjacent rights-of-way and abutting roadways identified by the parcel listed below. Parcel Number Address Owner 17-117-21-42-0072 3340 Republic Ave.Oak Hill 7100, LLC City Council Meeting of January 17, 2012 (Item No. 6a) Subject: Public Hearing & Resolution Approving Establishment of Oak Hill II TIF District Page 36 Appendix D-1 Appendix D Estimated Cash Flow for the District City Council Meeting of January 17, 2012 (Item No. 6a) Subject: Public Hearing & Resolution Approving Establishment of Oak Hill II TIF District Page 37 12/16/2011Base Value Assumptions - Page 1Oak Hill IICity of St. Louis Park21,432 Sq/Ft OfficeASSUMPTIONS AND RATESDistrictType:Economic DevelopmentMaximum/Frozen Local Tax Rate: 131.176% Pay 2012 PrelimDistrict Name/Number:Current Local Tax Rate: (Use lesser of Current or Max.)131.176% Pay 2012 PrelimCounty District #:State-wide Tax Rate (Comm./Ind. only used for total taxes)52.0000% Pay 2012 PrelimFirst Year Construction or Inflation on Value2012Market Value Tax Rate (Used for total taxes)0.17684% Pay 2012 PrelimExisting District - Specify No. Years RemainingInflation Rate - Every Year:3.00%PROPERTY TAX CLASSES AND CLASS RATES:Interest Rate:5.00%Exempt Class Rate (Exempt)0.00%Present Value Date:1-Aug-12Commercial Industrial Preferred Class Rate (C/I Pref.)First Period Ending1-Feb-13First $150,0001.50%Tax Year District was Certified:Pay 2012Over $150,0002.00%Cashflow Assumes First Tax Increment For Development:2014Commercial Industrial Class Rate (C/I)2.00%Years of Tax Increment9Rental Housing Class Rate (Rental)1.25%Assumes Last Year of Tax Increment2022Affordable Rental Housing Class Rate (Aff. Rental)0.75%Fiscal Disparities Election [Outside (A), Inside (B), or NA]Inside(B)Non-Homestead Residential (Non-H Res.)1.25%Incremental or Total Fiscal DisparitiesIncrementalHomestead Residental Class Rate (Hmstd. Res.)Fiscal Disparities Contribution Ratio34.5021% Pay 2012 PrelimFirst $500,0001.00%Fiscal Disparities Metro-Wide Tax Rate141.9450% Pay 2012 PrelimOver $500,0001.25%Agricultural Non-Homestead1.00%PercentageTax Year Property CurrentClassAfterLandBuildingTotal Of Value Used Original Original Tax OriginalAfter ConversionMap # PIDOwner Address Market Value Market Value Market Value for District Market Value Market Value Class Tax Capacity Conversion Orig. Tax Cap. Area/Phase1711721420072 City3340 Republic Ave 700,0000700,000100% 700,000 Pay 2012 C/I Pref.13,250 C/I Pref.13,250 700,0000700,000700,000 13,25013,250Note:1. Base value is for pay 2012 based upon review of County website on 9-13-11.2. Development is located in SD #283 and WS #3 BASE VALUE INFORMATION (Original Tax Capacity)Prepared by Ehlers & Associates, Inc. - Estimates OnlyN:\Minnsota\St. Louis Park\Housing - Economic - Redevelopment\TIF\TIF Districts\Oak Hill II\TIF Runs\TIF Run - 12-6-11 -FINAL FOR TIF PLANCity Council Meeting of January 17, 2012 (Item No. 6a) Subject: Public Hearing & Resolution Approving Establishment of Oak Hill II TIF DistrictPage 38 12/16/2011Base Value Assumptions - Page 2Oak Hill IICity of St. Louis Park21,432 Sq/Ft OfficeEstimated Taxable Total Taxable PropertyPercentage Percentage Percentage Percentage First YearMarket Value Market Value TotalMarketTaxProject Project Tax Completed Completed Completed Completed Full TaxesArea/Phase New Use Per Sq. Ft./Unit Per Sq. Ft./Unit Sq. Ft./UnitsValueClass Tax CapacityCapacity/Unit 2012201320142015PayableOffice175175 21,432 3,750,600C/I75,012100% 100%100%100%2014TOTAL3,750,60075,012 Subtotal Residential000 Subtotal Commercial/Ind.21,432 3,750,60075,012 Note:1. Market values are based upon estimates from Assessor.Total Fiscal Local Local Fiscal State-wide MarketTax Disparities Tax PropertyDisparities PropertyValueTotal Taxes PerNew UseCapacityTax CapacityCapacityTaxesTaxes TaxesTaxesTaxes Sq. Ft./UnitOffice 75,012 25,881 49,13164,44836,736 39,0066,633 146,824 6.85TOTAL 75,012 25,881 49,13164,44836,736 39,0066,633 146,824Note: 1. Taxes and tax increment will vary signficantly from year to year depending upon values, rates, state law, fiscal disparities and other factors which cannot be predicted.2. If tax increment in received in 2013,then the district will be one year shorter.Total Property Taxes146,824less State-wide Taxes(39,006)less Fiscal Disp. Adj.(36,736)less Market Value Taxes(6,633)less Base Value Taxes(11,384)Annual Gross TIF 53,064 WHAT IS EXCLUDED FROM TIF?TAX CALCULATIONSPROJECT INFORMATION (Project Tax Capacity)Prepared by Ehlers & Associates, Inc. - Estimates OnlyN:\Minnsota\St. Louis Park\Housing - Economic - Redevelopment\TIF\TIF Districts\Oak Hill II\TIF Runs\TIF Run - 12-6-11 -FINAL FOR TIF PLANCity Council Meeting of January 17, 2012 (Item No. 6a) Subject: Public Hearing & Resolution Approving Establishment of Oak Hill II TIF DistrictPage 39 12/16/2011Tax Increment Cashflow - Page 3Oak Hill IICity of St. Louis Park21,432 Sq/Ft OfficeTAX INCREMENT CASH FLOWProject Original Fiscal CapturedLocalAnnual Semi-Annual StateAdmin. Semi-Annual Semi-Annual PERIOD% ofTaxTax Disparities TaxTax Gross Tax Gross Tax AuditoratNet Tax Present ENDING Tax PaymentOTC CapacityCapacityIncremental CapacityRate Increment Increment 0.36%10% IncrementValueYrs.YearDate- - - - 02/01/13- - - - 08/01/13- - - - 02/01/14100% 75,012 (13,250) (21,309) 40,453 131.176% 53,064 26,532 (96) (2,644) 23,793 21,555 0.5 2014 08/01/14100% 75,012 (13,250) (21,309) 40,453 131.176% 53,064 26,532 (96) (2,644) 23,793 42,585 1 2014 02/01/15100% 77,262 (13,250) (22,086) 41,927 131.176% 54,998 27,499 (99) (2,740) 24,660 63,849 1.5 2015 08/01/15100% 77,262 (13,250) (22,086) 41,927 131.176% 54,998 27,499 (99) (2,740) 24,660 84,595 2 2015 02/01/16100% 79,580 (13,250) (22,885) 43,445 131.176% 56,989 28,495 (103) (2,839) 25,553 105,567 2.5 2016 08/01/16100% 79,580 (13,250) (22,885) 43,445 131.176% 56,989 28,495 (103) (2,839) 25,553 126,028 3 2016 02/01/17100% 81,968 (13,250) (23,709) 45,009 131.176% 59,040 29,520 (106) (2,941) 26,473 146,708 3.5 2017 08/01/17100% 81,968 (13,250) (23,709) 45,009 131.176% 59,040 29,520 (106) (2,941) 26,473 166,884 4 2017 02/01/18100% 84,427 (13,250) (24,557) 46,619 131.176% 61,153 30,577 (110) (3,047) 27,420 187,272 4.5 2018 08/01/18100% 84,427 (13,250) (24,557) 46,619 131.176% 61,153 30,577 (110) (3,047) 27,420 207,163 5 2018 02/01/19100% 86,959 (13,250) (25,431) 48,278 131.176% 63,329 31,665 (114) (3,155) 28,396 227,260 5.5 2019 08/01/19100% 86,959 (13,250) (25,431) 48,278 131.176% 63,329 31,665 (114) (3,155) 28,396 246,866 6 2019 02/01/20100% 89,568 (13,250) (26,331) 49,987 131.176% 65,571 32,785 (118) (3,267) 29,401 266,671 6.5 2020 08/01/20100% 89,568 (13,250) (26,331) 49,987 131.176% 65,571 32,785 (118) (3,267) 29,401 285,993 7 2020 02/01/21100% 92,255 (13,250) (27,258) 51,747 131.176% 67,879 33,940 (122) (3,382) 30,436 305,507 7.5 2021 08/01/21100% 92,255 (13,250) (27,258) 51,747 131.176% 67,879 33,940 (122) (3,382) 30,436 324,546 8 2021 02/01/22100% 95,023 (13,250) (28,213) 53,560 131.176% 70,257 35,129 (126) (3,500) 31,502 343,770 8.5 2022 08/01/22100% 95,023 (13,250) (28,213) 53,560 131.176% 70,257 35,129 (126) (3,500) 31,502 362,526 9 2022 02/01/23 Total552,282 (1,988) (55,029) 495,264 Present Value From 08/01/2012 Present Value Rate 5.00%404,262 (1,455) (40,281) 362,526 Prepared by Ehlers & Associates, Inc. - Estimates OnlyN:\Minnsota\St. Louis Park\Housing - Economic - Redevelopment\TIF\TIF Districts\Oak Hill II\TIF Runs\TIF Run - 12-6-11 -FINAL FOR TIF PLANCity Council Meeting of January 17, 2012 (Item No. 6a) Subject: Public Hearing & Resolution Approving Establishment of Oak Hill II TIF DistrictPage 40 Appendix E-1 Appendix E Minnesota Business Assistance Form (Minnesota Department of Employment and Economic Development) A Minnesota Business Assistance Form (MBAF) should be used to report and/or update each calendar year's activity by April 1 of the following year. Please see the Minnesota Department of Employment and Economic Development (DEED) website at http://www.deed.state.mn.us/Community/subsidies/MBAFForm.htm for information and forms. City Council Meeting of January 17, 2012 (Item No. 6a) Subject: Public Hearing & Resolution Approving Establishment of Oak Hill II TIF District Page 41 Appendix F-1 Appendix F Findings Including But/For Qualifications The reasons and facts supporting the findings for the adoption of the Tax Increment Financing Plan for Oak Hill II Tax Increment Financing District as required pursuant to M.S., Section 469.175, Subd. 3 are as follows: 1. Finding that the Oak Hill II Tax Increment Financing District is an economic development district as defined in M.S., Section 469.174, Subd. 12. Oak Hill II Tax Increment Financing District is a contiguous geographic area within the City's Redevelopment Project No. 1, delineated in the TIF Plan, for the purpose of financing economic development in the City through the use of tax increment. The District is in the public interest because it will facilitate construction of an approximately 21,400 square foot office facility which will increase employment in the state, and preserve and enhance the tax base of the state. Furthermore, the assistance being provided meets the requirements for assistance under M.S. Section 469.176, subd. 4c(d) of the Act, because: • The private development to be assisted pursuant to the TIF Plan will create or retain jobs in the state, including construction jobs; • the development consists of construction of an approximately 21,400 square foot office facility in the City, and construction will commence no later than July 1, 2012; • construction of the proposed development would not have commenced before July 1, 2012, without the tax increment financing assistance to be provided pursuant to the TIF Plan; and • the City will file the request for certification of the District by June 30, 2012. 2. Finding that the proposed development, in the opinion of the City Council, would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future and that the increased market value of the site that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in the market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of the Oak Hill II Tax Increment Financing District permitted by the TIF Plan. The proposed development, in the opinion of the City, would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future: This finding is supported by the fact that for several years the redeveloper has desired to build an office facility on this site that meets the City's objectives for economic development, but has previously been unable to obtain financing for the project. The location of the proposed development presents several geographic challenges, which elevate costs of construction. The redeveloper has provided the City with a pro forma and other evidence that without assistance, the redeveloper would be unable to construct the proposed development. The increased market value of the site that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of the TIF District permitted by the TIF Plan: The City supported this finding on the grounds that the cost of construction, the difficulty in obtaining financing in today's credit market, and the fact that 50% of the building will be built without a tenant make it unlikely that an office building will be constructed in the next 9 years without public assistance of some kind. The City further determines that these same challenges suggest that no other development of similar scope could reasonably be expected to occur on this site without similar assistance being provided to the development. City Council Meeting of January 17, 2012 (Item No. 6a) Subject: Public Hearing & Resolution Approving Establishment of Oak Hill II TIF District Page 42 Appendix F-2 Therefore, the City concludes as follows: a. The City's estimate of the amount by which the market value of the entire District will increase without the use of tax increment financing is $0. b. If the proposed development occurs, the total increase in market value will be $3,050,600 (see Appendix D and the table below) c. The present value of tax increments from the District for the maximum duration of the district permitted by the TIF Plan is estimated to be $404,262 (see Appendix D and the table below). d. Even if some development other than the proposed development were to occur, the Council finds that no alternative would occur that would produce a market value increase greater than $2,646,338 (the amount in clause b less the amount in clause c) without tax increment assistance. But-For Analysis Current Market Value 700,000 New Market Value - Estimate 3,750,600 Difference 3,050,600 Present Value of Tax Increment 404,262 Difference 2,646,338 Value Likely to Occur Without TIF is Less Than: 2,646,338 3. Finding that the TIF Plan for the Oak Hill II Tax Increment Financing District conforms to the general plan for the development or redevelopment of the municipality as a whole. The Planning Commission reviewed the TIF Plan and found that the TIF Plan conforms to the general development plan of the City. 4. Finding that the Tax Increment Financing Plan for Oak Hill II Tax Increment Financing District will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the development of Redevelopment Project No. 1 by private enterprise. The project to be assisted by the District will result in increased employment in the City and the State of Minnesota, increased tax base of the State, and the development of currently vacant and underutilized land by a private business. City Council Meeting of January 17, 2012 (Item No. 6a) Subject: Public Hearing & Resolution Approving Establishment of Oak Hill II TIF District Page 43 Meeting Date: January 17, 2012 Agenda Item #: 8a Regular Meeting Public Hearing Action Item Consent Item Resolution Ordinance Presentation Other: EDA Meeting Action Item Resolution Other: Study Session Discussion Item Written Report Other: TITLE: Community Recreation Facility Task Force Members. RECOMMENDED ACTION: Motion to approve the participants on the Community Recreation Facility Task Force. POLICY CONSIDERATION: Is Council ready to appoint the selected members to the Community Recreation Facility Task Force? BACKGROUND: At the November 28, 2011 Study Session the City Council provided feedback on the tour recently conducted of three community centers and the makeup and formation of a task force to assist the City Council with this item. At the December 12, 2011 Study Session Council authorized staff to advertise and accept applications from persons interested in sitting on the task force. Applications were received from 17 persons. At a special study session prior to this meeting the Council will be reviewing the applications of the persons who have volunteered to serve on the task force. Attachments: None Prepared by: Cindy S. Walsh, Director of Parks and Recreation Approved by: Tom Harmening, City Manager Meeting Date: January 17, 2012 Agenda Item #: 8b Regular Meeting Public Hearing Action Item Consent Item Resolution Ordinance Presentation Other: EDA Meeting Action Item Resolution Other: Study Session Discussion Item Written Report Other: TITLE: Ellipse II on Excelsior (e2) Final Plat and Final PUD and Ellipse on Excelsior PUD Major Amendment. RECOMMENDED ACTION: • Motion to adopt a resolution approving the Final Plat for ELLIPSE II ON EXCELSIOR, subject to conditions. • Motion to adopt a resolution approving the Final Planned Unit Development (PUD) for e2, subject to conditions. • Motion to adopt a resolution approving the major amendment to the Final Planned Unit Development (PUD) for Ellipse on Excelsior, subject to conditions. POLICY CONSIDERATION: • Are the final plat and final PUD for e2 consistent with the approved preliminary plat and preliminary PUD? • Does the City Council support the modifications to the Ellipse on Excelsior PUD that facilitate the e2 redevelopment? BACKGROUND: Ellipse on Excelsior is a five-story, mixed-use building with 132 residential apartments and 16,394 square feet of commercial uses on the ground floor located at 3900 Excelsior Boulevard. The development opened in 2010 and replaced Anderson Cleaners and Al’s Bar. Both the residential and commercial spaces are fully leased. Adjacent to Ellipse on Excelsior is the former American Inn hotel property located 3924 Excelsior Boulevard. The St. Louis Park Economic Development Authority (EDA) purchased the American Inn hotel and demolished the building in 2009 in preparation for redevelopment. The EDA currently leases the lot to Bader Development for parking purposes. Bader Development proposes a second phase to the Ellipse on Excelsior redevelopment at 3924 Excelsior Boulevard. The proposed Ellipse II on Excelsior (“e2”) redevelopment is a five-story, 58-unit apartment building with structured underground and at-grade parking. The proposed second phase does not include commercial uses. The e2 redevelopment will be a separate project and separate PUD from the neighboring Ellipse on Excelsior development. However, the two developments need to be coordinated to present a unified environment. The two developments will share a driveway access and e2 will include excess parking stalls for the Ellipse on Excelsior commercial uses. City Council Meeting of January 17, 2012 (Item No. 8b) Page 2 Subject: Ellipse II on Excelsior (e2) Final Plat & PUD & Ellipse on Excelsior PUD Major Amendment Process: On December 19, 2011, the City Council approved a preliminary plat, subdivision variance, two setback variances, and a preliminary PUD for e2 that included modifications to the density, ground floor area, floor area ratio, and building setbacks. The Planning Commission recommended approval of the Ellipse on Excelsior PUD major amendment on November 16, 2011. The Planning Commission recommended approval of the final plat and final PUD for the e2 development on January 4, 2012. To accommodate the e2 redevelopment, an 11-foot strip of land along the common lot line will be transferred from the Ellipse on Excelsior lot to the e2 lot. This results in a reduced lot size for Ellipse on Excelsior, which increases the density and reduces the building setback. A major amendment to the Ellipse on Excelsior PUD is required to allow changes to the approved plan. Also, the Ellipse on Excelsior PUD will be amended to acknowledge the 22 off-site parking spaces provided in the e2 redevelopment for the Ellipse on Excelsior commercial uses. Existing Conditions: Current Zoning: High Density Multiple Family Residential (RC) Comprehensive Plan: High Density Multiple Family (RH) Parcel Size: 0.725 acres Adjacent Uses: West: Minikahda Court Apartments North: Minikahda Court Apartments, Bass Lake Park East: Ellipse on Excelsior, France Av. South: Excelsior Blvd., gas station, offices The existing property is nearly 100% paved. The hotel building was built up to the north, east, and west property lines and the remainder of the lot was surface parking. Modest improvements to landscaping in the front of the property were made by the City through the Excelsior Boulevard streetscape project with above ground planters in the late 1990s. The site has contaminated soils due to fill material imported for a previous development and petroleum from underground fuel tank(s). The underground tanks have since been removed. FINAL PLAT ANALYSIS: The proposed ELLIPSE II ON EXCELSIOR final plat is consistent with the approved preliminary plat. The Planning Commission and city staff recommend approval of the final plat with conditions. The proposed e2 site is unplatted property. In order to redevelop the property, the City Code requires the lot to be platted. The ELLIPSE II ON EXCELSIOR plat satisfies this requirement. The final plat also proposes to transfer an 11-foot wide strip of land from the Ellipse on Excelsior property to the e2 parcel. This increases the area of the e2 parcel from 0.725 acres to 0.773 acres, and it decreases the area of the Ellipse on Excelsior parcel from 2.216 acres to 2.168 acres. City Council Meeting of January 17, 2012 (Item No. 8b) Page 3 Subject: Ellipse II on Excelsior (e2) Final Plat & PUD & Ellipse on Excelsior PUD Major Amendment E2 FINAL PUD ANALYSIS: The proposed final PUD is consistent with the approved preliminary PUD. The Planning Commission and city staff recommend approval of the final PUD with conditions. Zoning Analysis: The following table provides a zoning compliance summary for the new apartment building at 3924 Excelsior Boulevard based on the RC – High Density Multiple Family Residence zoning district standards and eligible modifications from the zoning standards that may be approved with a PUD. Zoning Compliance Table. Factor Allowed/Required Proposed Met? Use High Density Multiple Family Residence 58-unit apartment building Yes Lot Area 2.0 acres, unless it is a project of superior design or achieves greater compliance with comprehensive plan goals and policies 0.773 acres Yes Density 75 units/acre with a PUD 75 units/acre Yes Height 6 stories or 75 feet 5 stories, 60 feet Yes Off-Street Parking 62 stalls (e2) 108 stalls, including 22 stalls designated for Ellipse on Excelsior commercial use Yes Front Yard None required with a PUD 10 feet (4 feet to stairs/accessible ramp) Yes Rear Yard Variance granted by Resolution No. 11-142 5.5 feet Yes Side Yard (East) None required with a PUD 30 feet Yes Side Yard (West) Variance granted by Resolution No. 11-142 6 feet Yes Floor Area Ratio None with a PUD 2.1 Yes Ground Floor Area Ratio In RC, 0.30 with a PUD 0.30 Yes D.O.R.A. 4,041 square feet (12%) 4,188 square feet or 12.4% Yes Landscaping 58 trees 48 trees Yes 559 shrubs 231 shrubs, 479 perennials Alternative landscaping Rooftop patio (615 square feet) and an at-grade flagstone patio off lounge/lobby that partially screened by a stone wall. Stormwater Required city and watershed standards Stormwater management is provided underground Yes City Council Meeting of January 17, 2012 (Item No. 8b) Page 4 Subject: Ellipse II on Excelsior (e2) Final Plat & PUD & Ellipse on Excelsior PUD Major Amendment Architectural Design Description: The proposed building is five stories (60 feet) tall. On the Excelsior Boulevard elevation, the second through fifth floors step back from the first floor elevation to improve the pedestrian-scale of the building. The building materials and design are consistent with Ellipse on Excelsior. Five units on the along Excelsior Boulevard elevation are loft units spanning the fourth and fifth floors. The mix includes 13 studio units, 26 one-bedroom units, 12 one-bedroom with den units, 3 two- bedroom units, and a two-bedroom with den unit. The average unit is approximately 720 square feet. Materials: Building materials include stone, brick, stucco, glass, stucco panel veneer, and cast stone. The ratio varies on each building elevation, but every elevation has at least 60% class I materials as required by City Code. The front elevation has the highest percentage of class I materials (99%). Overall the building provides 71% class I materials, and 29 percent class II materials. The development meets and exceeds the City Code requirements. Parking The applicant amended the plan to provide four more parking stalls on the site. A car wash bay in the underground garage was eliminated and converted to a parking stall. A change to the slope of the underground garage driveway and revised striping increased the number of parking stalls in the covered, at-grade parking area from 22 to 25 (22 of the 25 parking stalls will be used for commercial/valet parking). Access: Access to the site will be directly from Excelsior Boulevard. This is a shared driveway with the Ellipse on Excelsior development. The shared driveway has full access to Excelsior Boulevard (left and right turns are allowed. There is a dedicated left turn lane from eastbound Excelsior Boulevard. An existing driveway on the west side of the site will be closed as part of the redevelopment. Design: The plan provides a combination of underground garage parking, surface parking covered by the building (“commercial parking”), and uncovered surface parking. A summary of the parking supplied in both the e2 and Ellipse on Excelsior developments is attached for your information. The underground garage contains 74 parking stalls. Sixteen of the 74 parking stalls are tandem stalls. Ten of the 74 stalls are designated compact parking stalls. Three of the 74 stalls are ADA accessible, including one van accessible stall. The parking garage would be used by e2 apartment residents. Tandem parking would be assigned to roommates/couples. Nine uncovered surface parking stalls are provided near e2’s north lobby entrance, including one ADA accessible stall. These stalls are intended to be used primarily by e2 visitors and guests. There are 25 parking stalls provided in a covered surface parking area. Twenty-two of these stalls are being built to mitigate the peak parking demand generated by commercial uses in the neighboring Ellipse on Excelsior development. Of the 25 parking stalls, there are 6 pairs configured as tandem parking stalls. Similar to current operations, Bader Development anticipates a valet parking service for the restaurant would park customer vehicles in the covered surface parking area. City Council Meeting of January 17, 2012 (Item No. 8b) Page 5 Subject: Ellipse II on Excelsior (e2) Final Plat & PUD & Ellipse on Excelsior PUD Major Amendment Quantity: The zoning code requires 1 parking stall per bedroom for multiple family residential buildings. The e2 development has 62 bedrooms. The plan provides a total of 108 parking stalls. Even without the 22 commercial parking stalls and without the 16 tandem parking stalls in the underground garage, the e2 plan supplies more than the 62 parking stalls required by the zoning code. Therefore, staff finds the plan meets and exceeds the zoning code requirements. Staff also finds that the 22 commercial parking stalls are genuinely surplus parking that can alleviate the pressure on parking during peak hours of demand at Ellipse on Excelsior. Walker Parking Study: An update to the Ellipse on Excelsior parking demand study was required by the City as part of the application. Parking counts were taken on the evening of Friday, October 28, 2011. The Walker Parking Consultants report concludes that the proposed parking supply at Ellipse on Excelsior and e2 developments together will satisfy the peak demand of the two developments. Easement and Parking Management Plan: It is important to ensure that the 22 parking stalls on the e2 site remain available for use by the Ellipse on Excelsior commercial uses. The proposed off-site parking, ingress and egress agreements will be protected by permanent and recorded easements. Bader Development has also submitted a Parking Management Plan for e2 that will be included as an Official Exhibit to the planning case file. Amendments to the Parking Management Plan will require City approval. Designed Outdoor Recreation Area (DORA) The plan provides 12.4% DORA, which meets and exceeds the zoning code requirement. The DORA includes a rooftop patio, a surface patio off of the lobby/lounge area, sidewalk connections and adjacent landscaped areas. Landscaping The landscaping plan provides 45 of the 58 trees required on the site. It provides 226 of the 559 shrubs required. Also, there are 479 perennial plantings. The plan provides dense landscaping in the available area. Plantings are concentrated along the perimeter of the site and around the designed outdoor recreation areas. The plan includes the use of alternative landscaping features, including a rooftop patio and a patio area off of the lobby/lounge. Staff finds the plan meets the landscaping requirements. As recommended by the Planning Commission, the landscaping plan was amended to add five Black Hills Spruce trees at the north end of the driveway to help mitigate light impacts from vehicle headlights. Utilities The City Engineer reviewed the plans. The grading and utility plans are acceptable. Stormwater from the site will be stored underground. The proposed system meets the City’s rate control requirements. The plan requires review and approval by the Minnehaha Creek Watershed District (MCWD). Export of Soils An estimated 18,270 cubic yards of contaminated and organic soils must be removed for the construction. Approximately 1,074 trucks loads will be needed over the course of 30 work days. The truck route would be from Excelsior Boulevard to Hwy 100. City Council Meeting of January 17, 2012 (Item No. 8b) Page 6 Subject: Ellipse II on Excelsior (e2) Final Plat & PUD & Ellipse on Excelsior PUD Major Amendment PUD Objectives: The Zoning Code requires that applicants for a Planned Unit Development demonstrate how the proposal will “enhance, support, and further the following objectives”: 1. Provide for integrated pedestrian facilities to and within the project: The building siting, massing, orientation, façade entrances, sidewalks connections and landscape features provide integrated pedestrian facilities to and within the project. 2. Enhance linkages to mass transit facilities: The site is served by Metro Transit routes 12 and 114. Route 12 is classified a “frequently operating transit line” under the Zoning Code. The development maintains the pedestrian- scale streetscape and character of Excelsior Boulevard. The new building will approach and frame the public realm along Excelsior Boulevard and enhance the links to nearby bus stops. 3. Incorporate implementation of travel demand management strategies as part of the PUD. The purpose of a travel demand management strategy is to spread the number of automobile trips throughout the day, reducing the negative impacts that occur during peak travel times. The mixed-use character of the Ellipse on Excelsior and e2 development as a whole satisfies the travel demand strategies requirement. 4. Provide public plazas and designed outdoor recreation area which exceeds minimum chapter requirements: The e2 plan meets the designed outdoor recreation area (DORA) requirement to provide 12% of the lot area. 5. Provide a high degree of aesthetics through overall design and display of public art: The e2 development includes a site plan that provides enhanced gathering spaces, streetscape elements, upscale apartments, attractive mostly class I building materials, and interesting architectural features. E2 PUD modifications: The e2 application includes the following PUD modifications: • Increased residential density from 50 units per acre to 75 units per acre. • Increased Ground Floor Area Ratio from 0.25 to 0.30. • Increased Floor Area Ratio from 1.2 to 2.1 • Reduced front (south) yard to 10 feet from the front line; and four feet for the stairways and ADA accessible ramp. • Reduced side (east) yard setback to 30 feet. ELIIPSE ON EXCELSIOR PUD MAJOR AMENDMENT: Bader Development requests two adjustments to previously approved Ellipse on Excelsior PUD. Both changes result from the lot line moving 11 feet to the east. First, the yard between the Ellipse on Excelsior building and the west lot line will be reduced from 29 feet to 18 feet. Second, the slight decrease in lot area technically increases the residential development density. The original approval allowed an increase in the residential density from 50 units per acre to 59.2 units per acre. The proposed change in the lot area will increase the density to 61 units per acre. The Planning Commission and city staff recommend approval of the major amendment to the Ellipse on Excelsior PUD, with the conditions listed in the attached resolution. City Council Meeting of January 17, 2012 (Item No. 8b) Page 7 Subject: Ellipse II on Excelsior (e2) Final Plat & PUD & Ellipse on Excelsior PUD Major Amendment FINANCIAL OR BUDGET CONSIDERATION: Not applicable. VISION CONSIDERATION: Not applicable. ATTACHMENTS: • Unofficial Minutes Planning Commission January 4, 2012 • Resolution $pproving the Final Plat for ELLIPSE II ON EXCELSIOR • Resolution $pproving the Final PUD for e2 • Resolution $pproving the Major Amendment to Final PUD for Ellipse on Excelsior • Ellipse on Excelsior o Ellipse on Excelsior Landscape Plan Amendment o The Ellipse on Excelsior Parking Management Plan • Ellipse II on Excelsior (e2) o The e2 Parking Management Plan o Artist Renderings of e2 o e2 Architectural Plans § G000 Cover Sheet § AS100 Site Plan § AS101 Site Uses Plan § A100 Garage Plan § A110 First Floor Plan § A120 Second Floor Plan § A130 Third Floor Plan § A140 Fourth Floor Plan § A150 Fifth Floor Plan § A200 Exterior Elevations § A201 Exterior Elevations o e2 Civil Engineering Plans § Final Plat § C201 Site Plan § C300 Grading Plan § C301 Erosion Control Plan § C400 Utility Plan § L100 Landscape Plan § L200 Landscape Plan Prepared by: Sean Walther, Senior Planner Reviewed by: Kevin Locke, Community Development Director Meg McMonigal, Planning and Zoning Supervisor Approved by: Tom Harmening, City Manager City Council Meeting of January 17, 2012 (Item No. 8b) Page 8 Subject: Ellipse II on Excelsior (e2) Final Plat & PUD & Ellipse on Excelsior PUD Major Amendment Unofficial Minutes Planning Commission Meeting January 4, 2012 C. Final Plat and Final Planned Unit Development Ellipse II on Excelsior Location: 3924 Excelsior Boulevard Applicant: Bader Development Case No.: 11-28-S and 11-27-PUD Sean Walther, Senior Planner, presented the staff report. He said the final plat is consistent with the approved preliminary plat. He noted two small changes since the Planning Commission public hearing: one of the subdivision variances has been eliminated; and, rather than providing no easement along Excelsior Blvd. it will provide a 4-foot easement. Mr. Walther spoke about the landscape plan. There was a condition generated from the Planning Commission based on neighbor comments for additional landscaping at the end of the driveway in an effort to reduce or eliminate headlight spillage from cars that are entering the underground garage or coming into the site. He said the applicant has provided additional evergreen plantings at the end of the driveway. Mr. Walther spoke about similar screening which will be provided to Ellipse on Excelsior. These five additional evergreen plantings will be put in at a 10 ft. height which is taller than the minimum requirement of 6 ft. Mr. Walther reviewed the PUD modifications. Mr. Walther stated that the 22 commercial parking spaces on the site that will serve the Ellipse property will be protected by an easement and a parking management plan. Commissioner Kramer asked if there is a city or developer contact person who can address resident concerns about parking, headlights and screening. Mr. Walther responded that Robb Bader, developer, has ongoing conversations with the neighborhood. Residents can also contact the Community Development Dept. for follow- up on issues. He said the neighborhood is working with the Public Works Department on permit parking. Commissioner Carper asked how the proposed landscaping meets the requirements. Mr. Walther explained that the plan also includes alternative landscaping measures. He said those are not trees or shrubs but they do relate to the landscape and the designed outdoor recreation area (DORA). He said that includes the patio space provided off of the main lounge on the ground level as well as the rooftop patio area. Those count as alternative landscaping measures. Meg McMonigal, Planning and Zoning Supervisor, commented that for dense, multi- story buildings the ordinance is almost impossible to meet since the sq. footage of each floor is used, not just site coverage. City Council Meeting of January 17, 2012 (Item No. 8b) Page 9 Subject: Ellipse II on Excelsior (e2) Final Plat & PUD & Ellipse on Excelsior PUD Major Amendment Commissioner Morris said it appears that a significant amount of landscaping is taking place in the DORA which makes it unusable. He asked if that eliminates the DORA function. Mr. Walther said as the DORA requirement has been applied it includes things like patio spaces, sidewalk connections through and around the site, trail connections, and landscaped areas that provide the amenity to those pedestrian connections. DORA and landscaping are meant to work together and not be mutually exclusive. Commissioner Morris said he thought DORA was an outdoor green space for picnics, games, movement, etc. Mr. Walther spoke about opportunities on the west side of the building and rooftop space designed for both passive and active recreation. Commissioner Carper asked if the intention of landscaping is to make a building more amenable to the public or to provide green space. Mr. Walther said landscaping could serve either purpose and there is flexibility in the code as to how that is provided. Typically there is a balanced approach. Commissioner Morris said he may want to restudy DORA. He said he is in favor of approving the project. Ms. McMonigal said a DORA discussion could be a study session item. Commissioner Morris made a motion to recommend approval of the Final Plat and Final Planned Unit Development, subject to conditions. Commissioner Carper seconded the motion, and the motion passed on a vote of 6-0. City Council Meeting of January 17, 2012 (Item No. 8b) Page 10 Subject: Ellipse II on Excelsior (e2) Final Plat & PUD & Ellipse on Excelsior PUD Major Amendment RESOLUTION NO. 12-____ RESOLUTION APPROVING A FINAL PLAT OF ELLIPSE II ON EXCELSIOR BE IT RESOLVED by the City Council of St. Louis Park: Findings 1. Bader Development, subdivider, has submitted an application requesting approval of a final plat in the manner required for platting of land under the St. Louis Park Ordinance Code, and all proceedings have been duly had thereunder. 2. The land owners include St. Louis Park Economic Development Authority (3924 Excelsior Boulevard, PIN 06-028-24-41-0003) and Ellipse on Excelsior LLC (3900 Excelsior Boulevard, PIN 06-028-24-41-0072). 3. St. Louis Park City Council Resolution No. 11-141 granted a variance from Subdivision Code Section 26-154 “Easements” to reduce the required width of a drainage and utility easement. The standard width for easements along public right-of-way is 10 feet. The final plat provides drainage and utility easement that is four feet wide along public right-of-way. 4. The proposed plat is situated upon the following described lands in Hennepin County, Minnesota, to-wit: That part of the Northeast Quarter of the Southeast Quarter of Section 6, Township 28, Range 24, described as commencing at the intersection of the Southwesterly line of the plat of "Minikahda Oaks, Hennepin County, Minnesota" with a line drawn parallel with and 50 feet Northwesterly from the centerline of Excelsior Avenue, as delineated on said plat; thence Southwesterly parallel with said centerline and its Southwesterly extension 170 feet to the actual point of beginning; thence continuing Southwesterly along said parallel line 166.30 feet; thence Northwesterly at right angles 190 feet; thence Northeasterly at right angles 166.30 feet; thence Southeasterly at right angles to the point of beginning, Hennepin County, Minnesota. AND The Southwesterly 11.00 feet of Lot 1, Block 1, ELLIPSE ON EXCELSIOR, Hennepin County, Minnesota. 5. The final plat is in all respects consistent with preliminary plat approval granted by Resolution No. 11-141, the City Plan, the regulations and requirements of the laws of the State of Minnesota, and the ordinances of the City of St. Louis Park. City Council Meeting of January 17, 2012 (Item No. 8b) Page 11 Subject: Ellipse II on Excelsior (e2) Final Plat & PUD & Ellipse on Excelsior PUD Major Amendment Conclusion 1. The proposed final plat of ELLIPSE II ON EXCELSIOR is hereby approved and accepted by the City as being in accord and conformity with all ordinances, City plans and regulations of the City of St. Louis Park and the laws of the State of Minnesota, subject to the following conditions: a. City Council approval of a request to vacate an existing landscape easement (Doc. No. 6743421); b. Park and trail dedication fees shall be paid prior to the City signing the Final Plat. c. All utility service structures shall be buried. If any utility service structure cannot be buried (i.e. electric transformer), it shall be integrated into the building design and 100% screened from off-site. 2. The City Clerk is hereby directed to supply two certified copies of this Resolution to the above-named owners and subdivider, who are the applicants herein. 3. The Mayor and City Manager are hereby authorized to execute all contracts required herein, and the City Clerk is hereby directed to execute the certificate of approval on behalf of the City Council upon the said plat when all of the conditions set forth in Paragraph No. 1 above and the St. Louis Park Ordinance Code have been fulfilled. 4. Such execution of the certificate upon said plat by the City Clerk, as required under Section 26-123(1)j of the St. Louis Park Ordinance Code, shall be conclusive showing of proper compliance therewith by the subdivider and City officials charged with duties above described and shall entitle such plat to be placed on record forthwith without further formality. The developer or owner shall pay an administrative fee of $750 per violation of any condition of this approval. The City Clerk is instructed to record certified copies of this resolution in the Office of the Hennepin County Register of Deeds or Registrar of Titles as the case may be. Reviewed for Administration: Adopted by the City Council January 17, 2012 City Manager Mayor Attest: City Clerk City Council Meeting of January 17, 2012 (Item No. 8b) Page 12 Subject: Ellipse II on Excelsior (e2) Final Plat & PUD & Ellipse on Excelsior PUD Major Amendment RESOLUTION NO. 12-____ RESOLUTION APPROVING A FINAL PLANNED UNIT DEVELOPMENT (PUD) AT 3924 EXCELSIOR BOULEVARD FOR ELLIPSE II ON EXCELSIOR (“e2”) WHEREAS, Bader Development proposes to construct a 58-unit apartment building at 3924 Excelsior Boulevard named Ellipse II on Excelsior (“e2”); and WHEREAS, the subject property is located within the RC High Density Multiple Family Residential zoning district; and WHEREAS, a complete application for approval of a Final Planned Unit Development (PUD) under Section 36-367 of the St. Louis Park Ordinance Code was received on October 18, 2011 from the applicant, and WHEREAS, notice of a public hearing on the application was mailed to all owners of property within 350 feet of the subject property, and WHEREAS, the Planning Commission reviewed the concept plans at the meeting of September 21, 2011, and WHEREAS, notice of public hearing on the Preliminary PUD was published in the St. Louis Park Sailor on November 3, 2011, and WHEREAS, the Planning Commission held the public hearing at the meeting of November 16, 2011, and recommended approval of the Preliminary PUD, and WHEREAS, the Planning Commission reviewed the Final PUD at the meeting of January 4, 2012, and recommended approval of the Final PUD, and WHEREAS, the City Council has considered the staff reports, Planning Commission minutes and testimony of those appearing at the public hearing or otherwise including comments in the record of decision. BE IT RESOLVED BY the City Council of the City of St. Louis Park: Findings 1. Bader Development has made application to the City Council for a Planned Unit Development to construct a 58-unit apartment building on property at 3924 Excelsior Boulevard, and legally described as follows: That part of the Northeast Quarter of the Southeast Quarter of Section 6, Township 28, Range 24, described as commencing at the intersection of the Southwesterly line of the plat of "Minikahda Oaks, Hennepin County, Minnesota" with a line drawn parallel with and 50 feet Northwesterly from the centerline of Excelsior Avenue, as delineated on said plat; thence Southwesterly parallel with said centerline and its Southwesterly extension 170 feet to the actual point of beginning; thence continuing Southwesterly along said parallel line 166.30 feet; thence Northwesterly at right angles 190 feet; thence City Council Meeting of January 17, 2012 (Item No. 8b) Page 13 Subject: Ellipse II on Excelsior (e2) Final Plat & PUD & Ellipse on Excelsior PUD Major Amendment Northeasterly at right angles 166.30 feet; thence Southeasterly at right angles to the point of beginning, Hennepin County, Minnesota. AND The Southwesterly 11.00 feet of Lot 1, Block 1, ELLIPSE ON EXCELSIOR, Hennepin County, Minnesota. 2. The City Council has considered the advice and recommendation of the Planning Commission (Case No. 11-27-PUD) and the effect of the proposed PUD on the health, safety and welfare of the occupants of the surrounding lands, existing and anticipated traffic conditions, the effect on values of properties in the surrounding area, the effect of the use on the Comprehensive Plan, and compliance with the intent of the Zoning Ordinance. 3. The City Council has determined that the PUD will not be detrimental to the health, safety, or general welfare of the community nor will it cause serious traffic congestion or hazards, nor will it seriously depreciate surrounding property values. The Council has also determined that the proposed PUD is in harmony with the general purpose and intent of the Zoning Ordinance and the Comprehensive Plan and that the requested modifications comply with the requirements of Section 36-367(b)(5). The specific modifications include: a. Increased residential density from 50 units per acre to 75 units per acre. b. Increased Ground Floor Area Ratio from 0.25 to 0.30. c. Increased Floor Area Ratio from 1.2 to 2.1 d. Reduced front yard to allow a 10-foot building setback, and five-foot setback for the exterior stairways and ADA accessible ramp. e. Reduced side (east) yard setback to 30 feet. 4. The contents of Planning Case File 11-27-PUD are hereby entered into and made part of the public hearing record and the record of decision for this case. Conclusion The Final Planned Unit Development for a 58-unit apartment building at 3924 Excelsior Boulevard is approved based on the findings set forth above and subject to the following conditions: 1. The site shall be developed, used and maintained in accordance with the Final PUD official exhibits. The Official Exhibits shall include a Parking Management Plan. 2. The following requirements, as indicated in the official exhibits, shall apply to the PUD: a. A maximum residential density of 75 units per acre. b. A maximum of 58 residential units. c. A minimum of 108 parking spaces. d. A maximum building height of 60 feet. e. A maximum ground floor area ratio of 0.30. f. A maximum floor area ratio of 2.1. g. A minimum front yard of 10 feet for the building and 4 feet for exterior stairs and ramps (from southerly property line along Excelsior Boulevard). h. A minimum side yard (from the easterly property line) of 30 feet. i. Any amendments to the e2 Parking Management Plan shall require the approval of City of St. Louis Park. City Council Meeting of January 17, 2012 (Item No. 8b) Page 14 Subject: Ellipse II on Excelsior (e2) Final Plat & PUD & Ellipse on Excelsior PUD Major Amendment 3. Pursuant to Section 36-367(e)6) of the Zoning Ordinance, the City will require execution of a development agreement as a condition of approval of the Final PUD. The development agreement shall address those issues which the City Council deems appropriate and necessary. The following issues have been identified as appropriate to include in the PUD development agreement: a. A list of all PUD modifications. b. A list of public improvements to be installed at Developer’s expense. c. An irrevocable covenant in a form approved by the City Attorney protecting the 22 parking stalls to be used by the Ellipse on Excelsior commercial development at 3900 Excelsior Boulevard. d. A requirement for a performance guarantee in the form of cash or letter of credit for 125% of the estimated cost of all public improvements, including fire hydrants, on-street loading bay, street signs, and streetscape improvements along Excelsior Boulevard, and for the required site landscaping. e. A maintenance agreement for the Developer to maintain adjacent public improvements, including the proposed on-street loading bay and streetscape along Excelsior Boulevard. f. An agreement for the Developer to continue to pay annual services charges for the special services district in an amount equal to what would be the amount payable by the property if it remained a commercial property. g. A requirement that all trash handling and storage facilities shall be located inside the building. h. A requirement that utility service structures shall be buried; and if any utility service structure cannot be buried (i.e. electric transformer), it shall be integrated into the building design and 100% screened from off-site. 4. The following conditions shall be met prior to starting any land disturbing activities on the site: a. Proof of Recording the Final Plat shall be submitted to the City. b. Building material samples and colors shall be submitted to the City for review. c. The assent form and official exhibits shall be signed by the applicant and owner. d. A preconstruction conference shall be held with the appropriate development, construction and City representatives. e. A staging plan for construction shall be filed with the City. f. A plan to manage parking during construction shall be submitted to the City for review and approval. g. All necessary permits must be obtained. 5. Prior to issuance of building permits: a. The Developer shall sign the City’s Assent Form and the Official Exhibits. b. Final plans shall be reviewed by the City Engineer and Zoning Administrator to ensure that all proposed utilities, public improvements, and construction documents conform to the requirements of the City Code of Ordinances and City policies. c. The Developer shall provide the required performance guarantee. d. The proposed 22 shared commercial parking stalls shall be protected by an irrevocable covenant in a form approved by the City Attorney. A certified copy of the recorded document shall be provided to the Zoning Administrator within 60 days of the Final PUD approval. City Council Meeting of January 17, 2012 (Item No. 8b) Page 15 Subject: Ellipse II on Excelsior (e2) Final Plat & PUD & Ellipse on Excelsior PUD Major Amendment 6. The Developer shall comply with the following conditions during construction: a. Construction shall comply with all City noise ordinances. Construction activity will be limited to 7 a.m. through 10 p.m. Monday through Friday, and 9 a.m. and 10 p.m. Saturdays. There shall be no construction on Sundays or national holidays. b. The site shall be kept free of dust and debris that could blow onto streets and neighboring properties. c. Public streets shall be maintained free of dirt and shall be cleaned as necessary. d. The City shall be contacted a minimum of 72 hours prior to any work in a public street. Work in a public street shall take place only upon the determination by the Director of Public Works that appropriate safety measures have been taken to ensure motorist and pedestrian safety. 7. Prior to the issuance of a certificate of occupancy the following shall be completed: a. Fire lanes shall be signed and striped in accordance with the Official Exhibits. b. Landscaping and irrigation shall be installed in accordance with the Official Exhibits. c. Exterior building improvements shall be completed in accordance with the Official Exhibits. d. All mechanical equipment shall be installed and it shall be demonstrated that all such equipment is fully screened from off-site views. Painting of mechanical equipment shall not be considered screening. 8. No outside storage is permitted. Incidental outside storage shall be removed within 48 hours. In addition to any other remedies, the developer or owner shall pay an administrative fee of $750 per violation of any condition of this approval. The City Clerk is instructed to record certified copies of this resolution in the Office of the Hennepin County Register of Deeds or Registrar of Titles as the case may be. Reviewed for Administration: Adopted by the City Council January 17, 2012 City Manager Mayor Attest: City Clerk City Council Meeting of January 17, 2012 (Item No. 8b) Page 16 Subject: Ellipse II on Excelsior (e2) Final Plat & PUD & Ellipse on Excelsior PUD Major Amendment RESOLUTION NO. 12-___ Amends and Restates Resolution Nos. 09-028 and 10-083 A RESOLUTION AMENDING AND RESTATING RESOLUTION NOS. 09-028 AND 10-083 AND APPROVING A MAJOR AMENDMENT TO THE FINAL PLANNED UNIT DEVELOPMENT UNDER SECTION 36-367 OF THE ST. LOUIS PARK ORDINANCE CODE RELATING TO ZONING FOR PROPERTY ZONED MX – MIXED USE LOCATED AT 3900 EXCELSIOR BOULEVARD WHEREAS, the Ellipse on Excelsior is a 5-story tall, mixed-use development that includes 132 residential apartments and 16,394 square feet of commercial space that is located at 3900 Excelsior Boulevard within the MX – Mixed Use Zoning District having the following legal description: Lot 1, Block 1, ELLIPSE ON EXCELSIOR, Hennepin County, Minnesota. WHEREAS, a Final PUD was approved regarding the subject property pursuant to Resolution No. 09-028 of the St. Louis Park City Council dated February 2, 2009, which contained conditions applicable to said property; and WHEREAS, a major amendment to the Final PUD and conditions were approved regarding the subject property pursuant to Resolution No. 10-083 of the St. Louis Park City Council dated August 16, 2010, which reduced the cumulative parking requirement of 313 parking stalls by 33 stalls (10.5%) to 280 parking stalls in order to accommodate a larger restaurant and medical/dental clinic uses; and WHEREAS, due to changed circumstances, amendments to the PUD conditions are now necessary, requiring the amendment of that Final PUD; and WHEREAS, Ellipse on Excelsior, LLC made application to the City Council for a major amendment to a Final Planned Unit Development (Final PUD) under Section 36-367 of the St. Louis Park Ordinance to allow an increase in the residential density and reduced rear yard setback due to a proposed change to the lot size; and WHEREAS, the City Council has considered the information related to Planning Case Nos. 08-36-PUD, 10-21-PUD, and 11-27-PUD and the effect of the applications on the health, safety, and welfare of the occupants of the surrounding lands, existing and anticipated traffic conditions, the effect on values of properties in the surrounding area and the effect of the use on the Comprehensive Plan and compliance with the intent of the Zoning Ordinance; and WHEREAS, the City Council has considered the staff reports, Planning Commission minutes and testimony of those appearing at the public hearing or otherwise including comments in the record of decision. City Council Meeting of January 17, 2012 (Item No. 8b) Page 17 Subject: Ellipse II on Excelsior (e2) Final Plat & PUD & Ellipse on Excelsior PUD Major Amendment WHEREAS, it is the intent of this resolution to continue and restate the conditions of the permit granted by Resolution Nos. 09-028 and 10-083, to add the amendments now required, and to consolidate all conditions applicable to the subject property in this resolution; and WHEREAS, the contents of Planning Case Files 08-36-PUD, 10-21-PUD, and 11-27- PUD are hereby entered into and made part of the public hearing and the record of decision for this case. CONCLUSION NOW THEREFORE BE IT RESOLVED that Resolution Nos. 09-028 and 10-083 are hereby restated and amended by this resolution which continues and amends a Final Planned Unit Development to the subject property for the purpose of permitting a mixed-use development at the location described above based on the following conditions: 1. The site shall be developed, used and maintained in conformance with the Final PUD official exhibits. 2. The following requirements, consistent with the official exhibits, shall apply to the PUD: A. The maximum number of residential units shall be 132. B. The minimum number of parking spaces shall be 280. C. The maximum gross floor area used for restaurant shall be 5,050 square feet. D. The maximum building height shall be 60 feet. E. The majority of the first floor shall be used for commercial purposes. F. The plan shall meet the MX District setbacks from the adjacent R2 zoning district. G. All trash handling and storage facilities shall be located inside the building. H. All utility service structures shall be buried. If any utility service structure cannot be buried (i.e. electric transformer), it shall be integrated into the building or landscaping design and 100% screened from off-site. 3. Before starting any land disturbing activities on the site (excluding demolition of existing buildings): A. The developer and owner shall sign the assent form and official exhibits. B. The developer shall submit to the City proof of recording the final plat with Hennepin County. C. The developer shall submit building material samples and colors to the City for administrative review and approval. D. The developer or developer’s engineer shall schedule pre-construction meetings at mutually agreeable times with all parties concerned, including City staff, to review the program for the construction work. 1. The developer’s general contractor shall present a parking plan for construction equipment and vehicles, and workers’ vehicles, at the preconstruction conference that minimizes or eliminates parking in the surrounding residential neighborhoods. 2. The developer shall involve a neighborhood representative in the preconstruction conference relating to the parking plan. E. The developer shall obtain all required permits for the proposed work, including but not necessarily limited to: City Council Meeting of January 17, 2012 (Item No. 8b) Page 18 Subject: Ellipse II on Excelsior (e2) Final Plat & PUD & Ellipse on Excelsior PUD Major Amendment 1. City right-of-way permits (required for any work within the right-of-way, including utility work, curb and gutter, sidewalk, driveway aprons, parking bays, road closures and sidewalk closures. 2. Hennepin County permits for all work within the County right-of-way. 3. NPDES permit. 4. Minnehaha Creek Watershed District permits. 5. City erosion control permit (the City will require a copy of the watershed district and NPDES permits prior to issuance). 4. Prior to issuance of building permits, the developer shall enter into a Planning Development Contract with the City that addresses, at a minimum, the following: A. Installation and on-going maintenance at Developer’s expense of on-street loading and streetscape improvements along all public streets, including the proposed landscaped median in France Avenue. Construction plans for said improvements shall be submitted to the City Engineer for review and approval. B. Installation at Developer’s expense of relocating and abandoning public sanitary and storm sewer mains in accordance with City approved design and materials. C. Participation by the property owner in the special service district relating to maintenance of streetscape improvement within the public right-of-way along Excelsior Boulevard. D. Installation and on-going maintenance of public artwork that will be located in the plaza area at the corner of Excelsior Boulevard and France Avenue. The minimum financial contribution shall be finalized before the City Council takes action on the Final PUD. E. Performance guarantee (financial securities) in the form of cash or letter of credit for 1.25 times the estimated cost of installing public improvements, development landscaping, and survey monuments. F. Developer or owner cooperation, but not necessarily financial contribution, to consolidate driveway accesses onto Excelsior Boulevard should the site at 3924 Excelsior Boulevard (American Inn) redevelop and provides an opportunity for a full driveway access (not right-in, right-out only) to Excelsior Boulevard for both properties. 5. The developer or owner shall reimburse City attorney’s fees in drafting/reviewing such documents as required in the Planned Unit Development approval. 6. During construction the developer, general contractor and subcontractors shall comply with the following requirements: A. Construction activities involving the use of power equipment, manual tools, movement of equipment, or similar activities shall be limited to between the hours of 7:00 a.m. and 10:00 p.m. on weekdays and between the hours of 9:00 a.m. and 10:00 p.m. on Saturdays. No construction activity shall occur on Sundays and holidays. Limited exceptions to these construction hours may be permitted if the City issues a noise permit. B. The developer and general contractor shall implement and enforce a parking plan for construction equipment and vehicles, and workers’ vehicles, which minimizes or eliminates parking in the surrounding residential neighborhoods. C. The developer shall install and maintain chain link security fencing that is at least six feet tall along the perimeter of the site. All gates and access points shall be locked during non-working hours. City Council Meeting of January 17, 2012 (Item No. 8b) Page 19 Subject: Ellipse II on Excelsior (e2) Final Plat & PUD & Ellipse on Excelsior PUD Major Amendment D. Temporary electric power connections shall not adversely impact surrounding neighborhood service. E. Construction vehicles and equipment shall not line up, park or idle on neighborhood streets. F. Vehicular traffic access on France Avenue shall be maintained at all times. G. Pedestrian access along Excelsior Boulevard and to the existing bus stop shall be maintained during construction. Any expected disruptions shall be limited in duration and scope, and communicated to the City and County well in advance. 7. Before the City issues a final certificate of occupancy: A. The Developer shall provide the City with a complete set of reproducible "as constructed" plans and an electronic file of the "as constructed" plans, all prepared in accordance with City standards. 8. The following façade design guidelines shall be applicable to all ground floor non- residential facades located in the Mixed-Use building facing Excelsior Boulevard and France Avenue: A. Façade Transparency. Windows and doors shall meet the following requirements: 1. For street-facing facades, no more than 10% of total window and door area shall be glass block, mirrored, spandrel, frosted or other opaque glass, finishes or material including window painting and signage. The remaining 90% of window and door area shall be clear or slightly tinted glass, allowing views into and out of the interior. 2. Visibility into the space shall be maintained for a minimum depth of three feet. This requirement shall not prohibit the display of merchandise. Display windows may be used to meet the transparency requirement. B. Awnings. 1. Awnings must be constructed of heavy canvas fabric, metal and/or glass. Plastic and vinyl awnings are prohibited. 2. Backlit awnings are prohibited. C. Use of Sidewalk. A business may use that portion of a sidewalk extending a maximum of five feet from the building wall for the following purposes, provided a six-foot minimum horizontal clearance along Excelsior Boulevard and France Avenue is maintained between obstructions on public sidewalks and provided that all activity is occurring on private property: 1. Display of merchandise. 2. Benches, planters, ornaments and art. 3. Signage, as permitted in the zoning ordinance. 4. Dining areas may extend beyond five feet of the building, provided eight feet minimum horizontal clearance along Excelsior Boulevard and France Avenue is maintained between the obstructions on the sidewalk. D. All wall vents and assorted fixtures shall be painted to match the color of the wall to which they are attached. 9. The development shall comply with the following Fire Department requirements: A. New on-site fire hydrants shall meet City specifications. B. An existing hydrant is shown remaining at the corner of Excelsior and France. The condition of this hydrant (and overall fire protection needs for the site) must be reviewed and approved by the Fire Department. C. Fire standpipes shall be provided in east and northwest stairways. City Council Meeting of January 17, 2012 (Item No. 8b) Page 20 Subject: Ellipse II on Excelsior (e2) Final Plat & PUD & Ellipse on Excelsior PUD Major Amendment D. The fire sprinkler system shall be an NFPA 13 system zoned by the floor level. Zone valves shall be in a location approved by the Fire Marshal. E. The elevator shall have a back up generator per State of Minnesota elevator code. F. Floor levels for the elevator shall be designated/labeled garage (-1), ground floor (1), second floor (2) and etc. G. The make up and exhaust fans in the garage level shall have fire department override switches at a location approved by the Fire Marshal. 10. The development shall comply with the following Public Works Department requirements: A. The developer shall cap all existing water services to be removed. B. The underlying soil conditions of the proposed relocation area for sanitary and storm sewer mains shall be verified for adequacy. C. The utility relocation construction work area extends into Excelsior Boulevard, and it is expected that lane closures will be necessary. Work within the Excelsior Boulevard right-of-way, or any lane closures, shall occur only with the permission of Hennepin County. Hennepin County will likely require full restoration standards to all roadway and other disturbances. D. The proposed relocation of the sanitary sewer lift station wall panel shall be reviewed and approved by the Public Works Utility Division. E. The developer shall be responsible for all bypass pumping as needed during the course of constructing the relocated sanitary and storm sewer mains. F. The property owner shall be responsible for long term maintenance of the proposed landscaped median in France Avenue. G. The minimum sidewalk clearance width between obstructions (i.e. landscaping, light poles, bollards, stairways, building, etc.) shall be six feet at all locations. H. The plan shall comply with the recommendations of the traffic study prepared by SRF Consulting Engineers and dated 10-30-08, including: 1. Provision of sufficient space for temporary vehicle parking in the proposed Excelsior Boulevard loading area to prevent queuing onto Excelsior Boulevard. 2. Installation of proper signage to clearly identify the ramp as “Resident Parking Only,” in order to prevent unfamiliar vehicles from entering the below ground parking garage area. 3. Installation and use of secure access (i.e. card key) to the below ground parking garage located at the garage entrance. 4. Installation of signage such as “stop” or “yield” signs, in accordance with MUTCD, shall be provided on-site to prevent internal conflicts amongst vehicles, as well as vehicular and pedestrian conflict areas. 5. Provision of adequate clearance and installation of proper signage for service and emergency vehicles at the west end of the development where the surface parking lot passes under the proposed building. 6. Installation and maintenance of neighborhood identification sign in the proposed France Avenue median. 7. Installation of “No Outlet” sign(s) on northbound France Avenue. 8. Location and design of the proposed France Avenue landscaped median shall provide sufficient clearance for all traffic on France Avenue to easily enter and exit the development’s driveway (i.e., offset distance of the median and design of median nose) and shall not restrict access into or out of the adjacent home north of the proposed redevelopment. City Council Meeting of January 17, 2012 (Item No. 8b) Page 21 Subject: Ellipse II on Excelsior (e2) Final Plat & PUD & Ellipse on Excelsior PUD Major Amendment 9. Consideration shall be given of vehicle and pedestrian sight distance and potential for damage by vehicles and snow plows with respect to the design and location of France Avenue gateway treatments. 10. Provision of at least 14 feet wide travel lanes on France Avenue (curb face to curb face) in the vicinity of the proposed landscaped median in France Avenue to provide adequate space for large semi-trucks and on-street bicycle traffic. 11. Installation of “No Parking” signs along France Avenue for the entire length of the proposed France Avenue median. I. All maintenance in the boulevard area (including streetscape and snow removal) shall be provided by the property owner, or through the Excelsior Boulevard special service district. J. Street lighting units on Excelsior Boulevard must be identical to existing Excelsior Boulevard units for uniformity and maintenance purposes. K. Proper traffic control and safety in accordance with MUTCD (in addition to specific County and City permit requirements for all work within the public right of way). L. The developer shall maintain adequate separation between boulevard trees and underground utilities. Boulevard landscaping plans and small utility plans are subject to City Engineer review and approval. 11. The property owner(s) shall be responsible for obtaining a City license for the underground parking structure. 12. Future commercial tenants shall be responsible for obtaining all City licenses (i.e. restaurant), sign permits, and building permits to finish interior spaces. 13. Commercial and office tenants shall provide customer entrances from the plaza. 14. The plaza design and features shall maintain an open connection to the public sidewalk. Temporary or permanent barriers that restrict access to commercial and office customer entrances onto the plaza and connections to the public sidewalk shall be prohibited. Limited use of temporary fencing surrounding tenant outdoor seating areas may be approved administratively by the Zoning Administrator or his/her designee provided convenient access to the commercial and office building entrances onto the plaza are maintained. 15. The developer shall submit a sign plan for the entire development to the City for administrative review and approval by the Zoning Administrator or his/her designee prior to City issuance of sign permits. 16. The Planned Unit Development shall be amended on August 16, 2010 to incorporate the preceding conditions and add the following conditions: A. The developer and owner shall sign the assent form and official exhibits. B. The site shall be developed, used and maintained in accordance with the Official Exhibits; such documents incorporated by reference herein. C. The owner shall designate at least 19 parking stalls in the underground garage for shared use by any combination of guests, employees or customers and manage parking on the property to ensure on-site parking is fully utilized in order to avoid overflow parking on public streets. D. A lease agreement for potential overflow parking from the Ellipse on Excelsior project shall be executed between the St. Louis Park Economic Development City Council Meeting of January 17, 2012 (Item No. 8b) Page 22 Subject: Ellipse II on Excelsior (e2) Final Plat & PUD & Ellipse on Excelsior PUD Major Amendment Authority and Ellipse on Excelsior, LLC for at least a one year term (September 1, 2010 – September 1, 2011). 17. The Planned Unit Development shall be amended on January 17, 2012 to incorporate the preceding conditions and add the following conditions: A. The developer and owner shall sign the assent form and official exhibits. B. The site shall be developed, used and maintained in accordance with the Official Exhibits; such documents incorporated by reference herein. C. An irrevocable covenant in a form approved by the City Attorney protecting an additional 22 off-site parking stalls for use by the Ellipse on Excelsior commercial development at 3924 Excelsior Boulevard. D. Any amendments to the Ellipse on Excelsior Parking Management Plan shall require the approval of the City of St. Louis Park. In addition to any other remedies, the developer or owner shall pay an administrative fee of $750 per violation of any condition of this approval. Assent form and official exhibits must be signed by applicant (or applicant and owner if applicant is different from owner) prior to issuance of building permit. The City Clerk is instructed to record certified copies of this resolution in the Office of the Hennepin County Register of Deeds or Registrar of Titles as the case may be. Reviewed for Administration: Adopted by the City Council January 17, 2012 City Manager Mayor Attest: City Clerk City Council Meeting of January 17, 2012 (Item No. 8b) Page 23 Subject: Ellipse II on Excelsior (e2) Final Plat & PUD & Ellipse on Excelsior PUD Major Amendment Ellipse on Excelsior Landscape Plan Amendment City Council Meeting of January 17, 2012 (Item No. 8b) Page 24 Subject: Ellipse II on Excelsior (e2) Final Plat & PUD & Ellipse on Excelsior PUD Major Amendment December 2011 The Ellipse on Excelsior Parking Management Plan Commercial Parking 1. The parking demand generated by Ellipse commercial uses and other guests and visitors at times exceeds the parking supply on the Ellipse surface lot. Therefore, City of St. Louis Park requires 17 parking spaces in the underground garage to be designated for commercial uses and/or residential guests in order to ensure parking availability on the surface lot and avoid overflow parking on City streets. 2. Upon completion of the e2 building at 3924 Excelsior Boulevard, there will be 22 parking spaces in an enclosed garage on the e2 site that the commercial users of the Ellipse have the non-exclusive right to use. The 22 off-site parking spaces will be available for Ellipse commercial users during their business hours. 3. No overnight Ellipse commercial employee parking will be allowed on the Ellipse or e2 properties. 4. An on-site manager will be available 24 hours a day and seven days a week to assist commercial tenants, residents, and neighbors with parking needs/questions and monitor the parking rules and regulations. Residential Parking 1. All residents must park in underground garage 2. All vehicles will be registered with management and given parking ID to display 3. No inoperable or storage vehicles allowed. General Parking Plan 1. On site management required to enforce parking policies in garage and on the surface lot. 2. Site and garage signs to designate parking for limited periods of time and specific uses to help manage parking 3. Commercial “Parking” sign is installed at west entry of property to help direct commercial traffic into the Ellipse parking lot. 4. Signs stating “Additional parking around the corner,” or language to that effect, will be provided in the Ellipse lot to direct self-parkers around the corner from the busy restaurant entrance. 5. Amendments to this Parking Management Plan require approval of City of St. Louis Park. The Zoning Administrator may approve changes as an administrative amendment to the planned unit development or refer the request to the City Council as a minor amendment to the planned unit development. City Council Meeting of January 17, 2012 (Item No. 8b) Page 25 Subject: Ellipse II on Excelsior (e2) Final Plat & PUD & Ellipse on Excelsior PUD Major Amendment December 2011 The e2 Parking Management Plan Commercial Parking 5. Upon completion of the e2 building, there will be 22 parking spaces in an enclosed garage on the e2 site that the commercial users of the neighboring Ellipse property at 3900 Excelsior Boulevard will have a non-exclusive right to use. 6. These 22 parking spaces will be managed to give first priority to meeting the parking needs of Ellipse commercial users during their business hours. 7. An on-site manager will be available 24 hours a day and 7 days a week to assist commercial tenants, residents, and neighbors with parking needs/questions and monitor the parking rules and regulations. Residential Parking 4. All residents must park in underground garage 5. All vehicles will be registered with management and given parking ID to display 6. No inoperable or storage vehicles allowed. General Parking Plan 1. On site management required to enforce parking policies in garage and on the surface lot. 2. Amendments to this Parking Management Plan require approval of City of St. Louis Park. The Zoning Administrator may approve changes as an administrative amendment to the planned unit development or refer the request to the City Council as a minor amendment to the planned unit development. City Council Meeting of January 17, 2012 (Item No. 8b) Page 26 Subject: Ellipse II on Excelsior (e2) Final Plat & PUD & Ellipse on Excelsior PUD Major Amendment e3924 Excelsior Boulevard, St. Louis Park, MN 55416Project TeamOWNERCONTRACTORFrana Companies633 Second Avenue SouthHopkins, MN 55343Contact: Mike BenedictPhone: 952.935.8600Fax: 952.935.8644E-mail mike@frana.comARCHITECTDJR Architecture, Inc.333 Washington Avenue NUnion Plaza, Suite 210Minneapolis, MN 55401Contact: Sheldon Berg612.676.2700612.676.2796 (fax)sberg@djr-inc.comSTRUCTURALMECHANICAL & ELECTRICALCIVILSite MapProject Notes1.2.3.All work shall comply with all applicable state andlocal codes and ordinances.Work is to be completed in accordance with alldocuments including drawings, specifications andconditions of contract for work.Refer to complete set of issued contract documentsincluding drawings and specifications of alldisciplines for applicable notes, abbreviations andsymbols. Contractor is responsible for coordinationof work. Notify Architect of any discrepancies beforeproceeding with work.Bader Development5402 Parkdale Drive, #200Minneapolis, MN 55416Contact: Scott BaderPhone: 952.540.8600Fax: 952.540.8601E-mail sbader@stevenscott.comHanuschak Consultants Inc26 Edmonton StreetWinnipeg, Manitoba R3C 1P7CanadaContact: Bill HanuschakPhone: 204.956.2200(fax): 204.956.1671E-mail hci@hanuschak.comSteen Engineering5430 Douglas Drive NorthCrystal, MN 55429Contact: Mark Brengman (HVAC) / Steve Youngs (E)Phone: 763.585.6742Fax: 763.585.6757E-mail: markbr@steeneng.com / stevey@steeneng.comEVS, Inc.10250 Valley View Rd, Suite 123Eden Prairie, MN 55344-3534Contact: Dave NashPhone: 952.646.0253E-mail: dnash@evs-eng.comSITE2LANDSCAPE ARCHITECTLANDMatters, LLCContact: Kathleen O'ConnellPhone: 612.598.5706E-mail: kathyaoconnell@gmail.comCIVIL DRAWING INDEXC100 EXISTING CONDITIONS & DEMOLITION PLANC200 PRELIMINARY PLATC300 SITE PLANC301 EROSION CONTROL PLANC400 UTILITY PLANC500 CONSTRUCTION DETAILSC501 CONSTRUCTION DETAILSPARKING & BIKE RACK CALCULATIONSPARKING REQUIRED - 1 PER BEDROOMPARKING PROVIDEDADDITIONAL RETAIL PARKINGSTUDIO131 BEDROOM412 BEDROOM4__UNITS5874962 BEDROOMS = 62 SPACESREQUIREDBELOW GRADEON-GRADE (VISITOR)TOTAL RESIDENTAIL PARKING PROVIDED83 (INCLUDING 4 HC SPACES)UNITS25 SPACES (VALET)GRAND TOTAL PARKING PROVIDED108BIKE RACKS REQUIRED: 1/UNIT + 1/10 PARKING SPACES58UNITSPARKING SPACES108TOTAL REQUIRED69 SPACES (58 + 108/10)TOTAL PROVIDED120 SPACES (116 BELOWGRADE + 4 ON-GRADE)ARCHITECTURE,INCCopyright2008DJRArchitecture,IncA6333 Washington Ave N, Suite 210Minneapolis, Minnesota 55401612.676.2700 www.djr-inc.comI hereby certify that this plan, specification,or report was prepared by me or under mydirect supervision and that I am a dulyLicensed Architect under the laws of theState of Minnesota.PRINT NAMESIGNATUREREGISTRATION NUMBER DATECLIENT:BADER DEVELOPMENT5402 Parkdale Drive, #200Minneapolis, MN 55416Issue:Date:Project#:Date:Drawnby:Checkedby:CONTRACTORFRANA COMPANIES633 Second Avenue SouthHopkins, MN 55343STRUCTURALHANUSCHAK CONSULTANTS, INC26 Edmonton StreetWinnipeg, Manitoba R3C 1P7CanadaCIVILEVS, INC.10250 Valley View Rd, Suite 123Eden Prairie, MN 55344-3534BCDE54321MECHANICAL & ELECTRICALSTEEN ENGINEERING5430 Douglas Drive NorthCrystal, MN 55429NOT FOR CONSTRUCTION3924ExcelsiorBoulevard,St.LouisPark,MN55416G000COVER SHEETApprover09.19.2011111-000809.19.2011AuthorCheckere2UNIT COUNTUNIT TYPEFLOORSTOTALFIRST SECOND THIRD FOURTH FIFTHUNIT A11 BEDROOM0554418UNIT A21 BEDROOM111115UNIT A2a 1 BEDROOM 10000 1UNIT A2b 1 BEDROOM 01100 2UNIT B11 BEDROOM +111003UNIT B2 1 BEDROOM + 01110 3UNIT B31 BEDROOM +000101UNIT B41 BEDROOM +000101UNIT B51 BEDROOM +011114UNIT C12 BEDROOM011002UNIT C22 BEDROOM000101UNIT D12 BEDROOM +000101UNIT S1STUDIO011114UNIT S2 STUDIO01111 4UNIT S3STUDIO011114UNIT V1CONVERTIBLE011103UNIT V2 CONVERTIBLE 10000 14151515958AREA-GROSS BUILDINGLevel AreaGARAGE 24220 SF1ST FLOOR 16855 SF2ND FLOOR 13702 SF3RD FLOOR 13697 SF4TH FLOOR 13675 SF5TH FLOOR 11266 SF93417 SFGENERAL DRAWING INDEXG000 COVER SHEETLANDSCAPE DRAWING INDEXL100 LANDSCAPE PLANL101 LANDSCAPE DETAILSELECTRICAL DRAWING INDEXE000 PARKING LOT PHOTOMETRIC PLAN1 Planning Submittal10.17.113 Planning Resubmittal12.1.114 Staff Review Comments12.21.11ARCHITECTURAL DRAWING INDEX - STAFFREVIEW COMMENTSAS100 SITE PLANAS101 ARCHITECTURAL SITE PLAN - PROP USESA100 GARAGE PLANA110 FIRST FLOOR PLANA120 SECOND FLOOR PLANA130 THIRD FLOOR PLANA140 FOURTH FLOOR PLANA150 FIFTH FLOOR PLANA200 EXTERIOR ELEVATIONSA201 EXTERIOR ELEVATIONSCity Council Meeting of January 17, 2012 (Item No. 8b) Subject: Ellipse II on Excelsior (e2) Final Plat & PUD & Ellipse on Excelsior PUD Major Amendment Page 27 UPDNUPDNDNDNDNDNRAMP UPCONCRETE PADLOADING/TEMP PARKING ZONELSLSCCBALCONYSHARED DRIVEWAY1BRUNIT1BR+UNIT1BRUNITFITNESS STUDIOFITNESSLOBBY/LOUNGEWMSTORAGERETAIL/VALETPARKING25 SPACESRAMP DOWN9 GUEST PARKING SPACESBALC92' - 7 3/16"108' - 9 5/8"6'-4 5/8"14'-8 3/4"STUDIOUNIT11'-0"20'-11"6'-2"5'-11"5'-6"24'-1"20'-10"27'-5"213459876LINE OF SECONDFLOOR WALL ABOVEPREVIOUSPROPERTY LINEREVISEDPROPERTY LINE4 BIKES5% MAX. RAMPAREA WAYVANTRANSFORMER, CTCABINET &EMERGENCYGENERATOREXCELSIOR BOULEVARDTYP.8'-6"TYPICAL18'-0"9'-0"9'-0"1'-4"8'-0"8'-0"18'-0"8'-6"8'-6"1'-4"8'-0"8'-0"22'-0"18'-0"9'-0"9'-0"1'-43/8"8'-6"8'-6"8'-6"18'-0"18'-0"8'-0"8'-0"8'-0"KNOX FDKEY BOXKNOX FDKEY BOXKNOX FDKEY BOXN18'-0"18'-0"8'-6"8'-6"16'-0"8'-0"5% RAMP DOWN100'-4"FDFDFD99'-8"99'-8"99'-10"99'-10"99'-10"99'-10"STAMPED /STAINEDCONCRETEPATIOFDC020304010GRAPHIC SCALE17% RAMP DOWNFIRST FLOOR GROSS AREASITE AREAPARKING BELOW GRADEALLOWABLE AREA PER SPACEEQUATIONTOTAL EQUIVALENT SITE AREAGROUND FLOOR AREA RATIOGROUND FLOOR AREA RATIO16,799 SF33,687 SF74 SPACES300/SPACE300 SF X 74 = 22,200 SF33,687 SF + 22,200 SF =55,887 SF16,799 / 55,887 = .300NAME AREAARCHITECTURE,INCCopyright 2008 DJR Architecture, IncA6333 Washington Ave N, Suite 210Minneapolis, Minnesota 55401612.676.2700 www.djr-inc.comI hereby certify that this plan, specification,or report was prepared by me or under mydirect supervision and that I am a dulyLicensed Architect under the laws of theState of Minnesota.PRINT NAMESIGNATUREREGISTRATION NUMBER DATECLIENT:BADER DEVELOPMENT5402 Parkdale Drive, #200Minneapolis, MN 55416Issue:Date:Project#:Date:Drawnby:Checkedby:CONTRACTORFRANA COMPANIES633 Second Avenue SouthHopkins, MN 55343STRUCTURALHANUSCHAK CONSULTANTS, INC26 Edmonton StreetWinnipeg, Manitoba R3C 1P7CanadaCIVILEVS, INC.10250 Valley View Rd, Suite 123Eden Prairie, MN 55344-3534BCDE54321MECHANICAL & ELECTRICALSTEEN ENGINEERING5430 Douglas Drive NorthCrystal, MN 55429NOT FORCONSTRUCTION3924ExcelsiorBoulevard,St.LouisPark,MN55416AS100SITE PLANApprover09.19.2011111-000809.19.2011AuthorCheckere2 1" = 10'-0"1Site1 Planning Submittal10.17.113 Planning Resubmittal12.1.114 Staff Review Comments12.21.11City Council Meeting of January 17, 2012 (Item No. 8b) Subject: Ellipse II on Excelsior (e2) Final Plat & PUD & Ellipse on Excelsior PUD Major Amendment Page 28 UPDNUPDNDNDNDNNotEnclosedDORA252 SFDORA136 SFDORA2677 SFDORA1649 SFRESIDENTIAL6989 SFCOMMERCIALPARKING210 SFRESIDENTIAL9192 SFRESIDENTIAL7243 SFSURFACE PARKING195 SFMISCELLANEOUSAREA34 SFMISCELLANEOUSAREA979 SFMISCELLANEOUSAREA71 SFMISCELLANEOUSAREA68 SFMISCELLANEOUSAREADoraCOMMERCIAL PARKINGDORAMISCELLANEOUS AREARESIDENTIALSURFACE PARKING118 SFMISCELLANEOUSAREA1270 SFMISCELLANEOUSAREA2099 SFMISCELLANEOUSAREA308 SFDORA199 SFDORACOMMERCIAL PARKINGDESIGNED OUTDOORRECREATION AREA (DORA),INCLUDES 615 SF ROOFDECKMISCELLANEOUSGREENSPACERESIDENTIAL BUILDINGSURFACE PARKINGTOTAL SITE AREADORA / SITE USES6,989 SF4,188 SF4,833 SF11,051 SF7,243 SF33,690 SF20%12%15%32%21%NAME AREA % OF TOTAL SITEARCHITECTURE,INCCopyright 2008 DJR Architecture, IncA6333 Washington Ave N, Suite 210Minneapolis, Minnesota 55401612.676.2700 www.djr-inc.comI hereby certify that this plan, specification,or report was prepared by me or under mydirect supervision and that I am a dulyLicensed Architect under the laws of theState of Minnesota.PRINT NAMESIGNATUREREGISTRATION NUMBER DATECLIENT:BADER DEVELOPMENT5402 Parkdale Drive, #200Minneapolis, MN 55416Issue:Date:Project#:Date:Drawnby:Checkedby:CONTRACTORFRANA COMPANIES633 Second Avenue SouthHopkins, MN 55343STRUCTURALHANUSCHAK CONSULTANTS, INC26 Edmonton StreetWinnipeg, Manitoba R3C 1P7CanadaCIVILEVS, INC.10250 Valley View Rd, Suite 123Eden Prairie, MN 55344-3534BCDE54321MECHANICAL & ELECTRICALSTEEN ENGINEERING5430 Douglas Drive NorthCrystal, MN 55429NOT FORCONSTRUCTION3924ExcelsiorBoulevard,St.LouisPark,MN55416AS101ARCHITECTURAL SITE PLAN - PROP USESApprover09.19.2011111-000809.19.2011AuthorCheckere2 1/8" = 1'-0"1Site Dora1 Planning Submittal10.17.112 Planning Corrections11.09.113 Planning Resubmittal12.1.114 Staff Review Comments12.21.11City Council Meeting of January 17, 2012 (Item No. 8b) Subject: Ellipse II on Excelsior (e2) Final Plat & PUD & Ellipse on Excelsior PUD Major Amendment Page 29 UPUPUPA201FA201GA200D4A200D11234567ABCDEFGH2A3001A301140' - 0"173' - 0"1A3002A301RAMPUPPROPERTY LINEN STAIR031S STAIR0308ELECTRICALMECHEXHAUSTWALL MOUNTED BIKERACK, TYPICAL OF 40TRASH /RECYCLING024ELEVATORLOBBY022PARKING001WATER003MAINTENANCE002BIKE STORAGE00410 BIKES18'-0"18'-0"24'-0"18'-0"18'-0"24'-0"18'-0"8'-6"8'-6"8'-6"8'-0"8'-0"16'-0"8'-0"8'-0"8'-0"4'-0 7/8"8'-0"8'-6"9'-2"8'-6"123456789MAKE UPAIR UNIT1011121314151617181920212223242526272830313233343536373839404129VAN64666870725860625254564648504749515355575961636567697173424443451A3122A3103A3104A3102A3122A311AREA WELL8'-0"7'-8"8'-0"8'-0"8'-0"CEILING MOUNTEDBIKE RACK, TYPICALOF 1324' - 0"27' - 8"27' - 0"27' - 0"27' - 0"27' - 0"13' - 4"3A3121/8"5"8'-6"8'-6"9'-2"16'-0"18'-0"746" BOLLARDS6" BOLLARDS8'-6"8'-1"8'-10 7/8"8'-6"ARCHITECTURE,INCCopyright2008DJRArchitecture,IncA6333 Washington Ave N, Suite 210Minneapolis, Minnesota 55401612.676.2700 www.djr-inc.comI hereby certify that this plan, specification,or report was prepared by me or under mydirect supervision and that I am a dulyLicensed Architect under the laws of theState of Minnesota.PRINT NAMESIGNATUREREGISTRATION NUMBER DATECLIENT:BADER DEVELOPMENT5402 Parkdale Drive, #200Minneapolis, MN 55416Issue:Date:Project#:Date:Drawnby:Checkedby:CONTRACTORFRANA COMPANIES633 Second Avenue SouthHopkins, MN 55343STRUCTURALHANUSCHAK CONSULTANTS, INC26 Edmonton StreetWinnipeg, Manitoba R3C 1P7CanadaCIVILEVS, INC.10250 Valley View Rd, Suite 123Eden Prairie, MN 55344-3534BCDE54321MECHANICAL & ELECTRICALSTEEN ENGINEERING5430 Douglas Drive NorthCrystal, MN 55429NOT FORCONSTRUCTION3924ExcelsiorBoulevard,St.LouisPark,MN55416A100GARAGE PLANApprover09.19.2011111-000809.19.2011AuthorCheckere2 1/8" = 1'-0"1GARAGE1 Planning Submittal10.17.113 Planning Resubmittal12.1.114 Staff Review Comments12.21.11City Council Meeting of January 17, 2012 (Item No. 8b) Subject: Ellipse II on Excelsior (e2) Final Plat & PUD & Ellipse on Excelsior PUD Major Amendment Page 30 UPDNUPDNDNDNDNDNA201FA201GA200D4A200D11234567ABCDEFGH2A3001A301A201EA201DA201C658 SFCONVERTIBLE106UNIT V2715 SF1 BEDROOM104UNIT A2Not Enclosed1 BEDROOM +103UNIT B1735 SF1 BEDROOM102UNIT A2a6936 SFPARKING1501095 SFSTORAGE140413/16"2'-7"2'-0"11'-0"39'-83/4"11'-25/8"25'-111/4"65'-11"66'-95/8"39'-103/8"1A3002A301A200D5TRASH124N STAIR131ELEC123640 SFFITNESS125486 SFSTUDIO1268139'-8"1701 SFLOUNGE/LOBBY120177 SFCONFERENCE121CORRIDOR127ELEVATORLOBBY122WOMEN128MEN129S STAIR130PROPERTY LINEPROPERTY LINE15'-0"5'-0"9'-11 3/4"8'-9 1/4"14'-7 1/2"11'-3 1/4"5'-4 3/8"52'-11 7/8"16'-6 5/8"234WALL ABOVEWALL ABOVEGARAGE DOORENTRY TORESIDENTIALPARKINGGARAGE DOORENTRY TO RETAILPARKINGDASHED LINEINDICATES PERIMETEROF GARAGE BELOWDASHED LINEINDICATES PERIMETEROF GARAGE BELOW567891011121314151617181920212225 RETAILPARKINGSPACES18'-0"18'-0"40'-0"8'-0"8'-0"8'-0"9'-0"9'-0"1'-43/8"8'-6"8'-6"8'-6"8'-6"8'-6"1'-4"8'-0"19'-0"9'-0"8'-0"8'-3"20'-11"1A3122A3103A3104A3102A3122A3118'-0"3A312WALL ABOVEWALL ABOVEXS14"1'-73/4"2523248'-4"25'-0"STAND PIPESTAND PIPE35'-8 3/8"42'-0 13/16"19'-3 13/16"7'-8 5/16"33'-9 5/16"94'-0 3/8"42'-6 1/4"2'-0"136'-6 5/8"2'-0"94'-0 3/8"32'-3 9/16"10'-2 11/16"2'-0"10'-0"3'-3171/256"ARCHITECTURE,INCCopyright 2008 DJR Architecture, IncA6333 Washington Ave N, Suite 210Minneapolis, Minnesota 55401612.676.2700 www.djr-inc.comI hereby certify that this plan, specification,or report was prepared by me or under mydirect supervision and that I am a dulyLicensed Architect under the laws of theState of Minnesota.PRINT NAMESIGNATUREREGISTRATION NUMBER DATECLIENT:BADER DEVELOPMENT5402 Parkdale Drive, #200Minneapolis, MN 55416Issue:Date:Project#:Date:Drawnby:Checkedby:CONTRACTORFRANA COMPANIES633 Second Avenue SouthHopkins, MN 55343STRUCTURALHANUSCHAK CONSULTANTS, INC26 Edmonton StreetWinnipeg, Manitoba R3C 1P7CanadaCIVILEVS, INC.10250 Valley View Rd, Suite 123Eden Prairie, MN 55344-3534BCDE54321MECHANICAL & ELECTRICALSTEEN ENGINEERING5430 Douglas Drive NorthCrystal, MN 55429NOT FORCONSTRUCTION3924ExcelsiorBoulevard,St.LouisPark,MN55416A110FIRST FLOOR PLANApprover09.19.2011111-000809.19.2011AuthorCheckere2 1/8" = 1'-0"1FIRST FLOOR1 Planning Submittal10.17.113 Planning Resubmittal12.1.114 Staff Review Comments12.21.11City Council Meeting of January 17, 2012 (Item No. 8b) Subject: Ellipse II on Excelsior (e2) Final Plat & PUD & Ellipse on Excelsior PUD Major Amendment Page 31 UPDNUPDNA201FA201GA200D4A200D11234567ABCDEFGH2A3001A301A201EA201DA201CNot Enclosed1 BEDROOM +203UNIT B1705 SF1 BEDROOM202UNIT A2b1068 SF2 BEDROOM200UNIT C1714 SF1 BEDROOM204UNIT A2715 SF1 BEDROOM206UNIT A1494 SFSTUDIO207UNIT S2719 SF1 BEDROOM213UNIT A1719 SF1 BEDROOM208UNIT A1834 SF1 BEDROOM +210UNIT B2719 SF1 BEDROOM212UNIT A11 BEDROOM +214UNIT B5718 SF1 BEDROOM201UNIT A1N STAIR231S STAIR230ELEC22213'-3 5/16"20'-2 3/8"10'-3 5/16"78'-1 11/16"7'-0"84'-05/8"11'-25/8"39'-83/4"13'-45/8"117'-81/2"158'-0"121'-9 5/8"6'-10"107'-0"17'-9 5/8"124'-9 5/8"1A3002A301A200D5565 SFCONVERTIBLE211UNIT V1STORAGE22544'-4"ELEV LOBBY221D1A350TRASH223CORRIDOR2208CANOPY BELOWALUMINUMBALCONIES, TYPSTONE VENEERWALL BELOWPAVER PATIO,TYPROOFROOF1A312E1A3502A3103A3104A3102A3122A3113A312STAND PIPESTAND PIPE494 SFSTUDIO209UNIT S1989 SF428 SFSTUDIO205UNIT S326'-0"26'-5 1/2"3'-6"4 3/4"2'-0"ARCHITECTURE,INCCopyright 2008 DJR Architecture, IncA6333 Washington Ave N, Suite 210Minneapolis, Minnesota 55401612.676.2700 www.djr-inc.comI hereby certify that this plan, specification,or report was prepared by me or under mydirect supervision and that I am a dulyLicensed Architect under the laws of theState of Minnesota.PRINT NAMESIGNATUREREGISTRATION NUMBER DATECLIENT:BADER DEVELOPMENT5402 Parkdale Drive, #200Minneapolis, MN 55416Issue:Date:Project#:Date:Drawnby:Checkedby:CONTRACTORFRANA COMPANIES633 Second Avenue SouthHopkins, MN 55343STRUCTURALHANUSCHAK CONSULTANTS, INC26 Edmonton StreetWinnipeg, Manitoba R3C 1P7CanadaCIVILEVS, INC.10250 Valley View Rd, Suite 123Eden Prairie, MN 55344-3534BCDE54321MECHANICAL & ELECTRICALSTEEN ENGINEERING5430 Douglas Drive NorthCrystal, MN 55429NOT FORCONSTRUCTION3924ExcelsiorBoulevard,St.LouisPark,MN55416A120SECOND FLOOR PLANApprover09.19.2011111-000809.19.2011AuthorCheckere2 1/8" = 1'-0"1SECOND FLOOR1 Planning Submittal10.17.113 Planning Resubmittal12.1.114 Staff Review Comments12.21.11City Council Meeting of January 17, 2012 (Item No. 8b) Subject: Ellipse II on Excelsior (e2) Final Plat & PUD & Ellipse on Excelsior PUD Major Amendment Page 32 DNUPUPDNA201FA201GA200D4A200D11234567ABCDEFGH2A3001A301A201EA201DA201C833 SF1 BEDROOM +310UNIT B2719 SF1 BEDROOM308UNIT A1715 SF1 BEDROOM306UNIT A1714 SF1 BEDROOM304UNIT A2Not Enclosed1 BEDROOM +303UNIT B1718 SF1 BEDROOM301UNIT A11083 SF2 BEDROOM300UNIT C1719 SF1 BEDROOM312UNIT A1565 SFCONVERTIBLE311UNIT V1428 SFSTUDIO305UNIT S3ELEVATORLOBBY321990 SF1 BEDROOM +314UNIT B5N STAIR331S STAIR330705 SF1 BEDROOM302UNIT A2b719 SF1 BEDROOM313UNIT A1494 SFSTUDIO307UNIT S21A3002A301A200D5500 SFSTUDIO309UNIT S1D1A350TRASH323113 SFELEC322STORAGE3258CORRIDOR3201A312E1A3503A3104A3102A3122A3113A312STAND PIPESTAND PIPE26'-5 1/2"ARCHITECTURE,INCCopyright 2008 DJR Architecture, IncA6333 Washington Ave N, Suite 210Minneapolis, Minnesota 55401612.676.2700 www.djr-inc.comI hereby certify that this plan, specification,or report was prepared by me or under mydirect supervision and that I am a dulyLicensed Architect under the laws of theState of Minnesota.PRINT NAMESIGNATUREREGISTRATION NUMBER DATECLIENT:BADER DEVELOPMENT5402 Parkdale Drive, #200Minneapolis, MN 55416Issue:Date:Project#:Date:Drawnby:Checkedby:CONTRACTORFRANA COMPANIES633 Second Avenue SouthHopkins, MN 55343STRUCTURALHANUSCHAK CONSULTANTS, INC26 Edmonton StreetWinnipeg, Manitoba R3C 1P7CanadaCIVILEVS, INC.10250 Valley View Rd, Suite 123Eden Prairie, MN 55344-3534BCDE54321MECHANICAL & ELECTRICALSTEEN ENGINEERING5430 Douglas Drive NorthCrystal, MN 55429NOT FORCONSTRUCTION3924ExcelsiorBoulevard,St.LouisPark,MN55416A130THIRD FLOOR PLANApprover09.19.2011111-000809.19.2011AuthorCheckere2 1/8" = 1'-0"1THIRD FLOOR1 Planning Submittal10.17.113 Planning Resubmittal12.1.114 Staff Review Comments12.21.11City Council Meeting of January 17, 2012 (Item No. 8b) Subject: Ellipse II on Excelsior (e2) Final Plat & PUD & Ellipse on Excelsior PUD Major Amendment Page 33 UPDNUPUPUPUPDNA200D11234567BCDEFGH1A301A201EA201DA201C1A3002A301A200D5D1A35081A312E1A3503A3104A3102A3113A312714 SF1 BEDROOM404UNIT A2Not Enclosed2 BEDROOM403UNIT C2705 SF1 BEDROOM +402UNIT B3718 SF1 BEDROOM +401UNIT B41083 SF2 BEDROOM +UNIT D1990 SF1 BEDROOM +414UNIT B5494 SFSTUDIO407UNIT S2500 SFSTUDIO409UNIT S1428 SFSTUDIO405UNIT S3833 SF1 BEDROOM +410UNIT B2565 SFCONVERTIBLE411UNIT V1719 SF1 BEDROOM412UNIT A1719 SF1 BEDROOM408UNIT A1715 SF1 BEDROOM406UNIT A1719 SF1 BEDROOM413UNIT A1CORRIDOR420N STAIR431ELEVATORLOBBY421151 SFSTORAGE425ELEC422TRASH423S STAIR430STAND PIPESTAND PIPEARCHITECTURE,INCCopyright 2008 DJR Architecture, IncA6333 Washington Ave N, Suite 210Minneapolis, Minnesota 55401612.676.2700 www.djr-inc.comI hereby certify that this plan, specification,or report was prepared by me or under mydirect supervision and that I am a dulyLicensed Architect under the laws of theState of Minnesota.PRINT NAMESIGNATUREREGISTRATION NUMBER DATECLIENT:BADER DEVELOPMENT5402 Parkdale Drive, #200Minneapolis, MN 55416Issue:Date:Project#:Date:Drawnby:Checkedby:CONTRACTORFRANA COMPANIES633 Second Avenue SouthHopkins, MN 55343STRUCTURALHANUSCHAK CONSULTANTS, INC26 Edmonton StreetWinnipeg, Manitoba R3C 1P7CanadaCIVILEVS, INC.10250 Valley View Rd, Suite 123Eden Prairie, MN 55344-3534BCDE54321MECHANICAL & ELECTRICALSTEEN ENGINEERING5430 Douglas Drive NorthCrystal, MN 55429NOT FORCONSTRUCTION3924ExcelsiorBoulevard,St.LouisPark,MN55416A140FOURTH FLOOR PLANApprover09.19.2011111-000809.19.2011AuthorCheckere21 Planning Submittal10.17.113 Planning Resubmittal12.1.114 Staff Review Comments12.21.11 1/8" = 1'-0"1FOURTH FLOORCity Council Meeting of January 17, 2012 (Item No. 8b) Subject: Ellipse II on Excelsior (e2) Final Plat & PUD & Ellipse on Excelsior PUD Major Amendment Page 34 DNDNDNDNDNDNICEA201FA201GA200D4A200D11234567ABCDEFGH2A3001A301A201EA201DA201C438 SFCOMMUNITYROOM511990 SF1 BEDROOM +514UNIT B5494 SFSTUDIO507UNIT S2OUTDOORPATIO1A3002A301A200D5719 SF1 BEDROOM512UNIT A1715 SF1 BEDROOM506UNIT A1714 SF1 BEDROOM504UNIT A2428 SFSTUDIO505UNIT S3500 SFSTUDIO509UNIT S1719 SF1 BEDROOM513UNIT A1CORRIDOR520745 SFLOFT400UNIT D1406 SFLOFT403UNIT C2416 SFLOFT402UNIT B3424 SFLOFT401UNIT B4151 SFSTORAGE525N STAIR531724 SF1 BEDROOM508UNIT A1D1A350ELEV LOBBY520S STAIR322113 SFELEC521TRASH52281A312E1A3503A3104A3102A3113A312644 SFSTAND PIPESTAND PIPEARCHITECTURE,INCCopyright 2008 DJR Architecture, IncA6333 Washington Ave N, Suite 210Minneapolis, Minnesota 55401612.676.2700 www.djr-inc.comI hereby certify that this plan, specification,or report was prepared by me or under mydirect supervision and that I am a dulyLicensed Architect under the laws of theState of Minnesota.PRINT NAMESIGNATUREREGISTRATION NUMBER DATECLIENT:BADER DEVELOPMENT5402 Parkdale Drive, #200Minneapolis, MN 55416Issue:Date:Project#:Date:Drawnby:Checkedby:CONTRACTORFRANA COMPANIES633 Second Avenue SouthHopkins, MN 55343STRUCTURALHANUSCHAK CONSULTANTS, INC26 Edmonton StreetWinnipeg, Manitoba R3C 1P7CanadaCIVILEVS, INC.10250 Valley View Rd, Suite 123Eden Prairie, MN 55344-3534BCDE54321MECHANICAL & ELECTRICALSTEEN ENGINEERING5430 Douglas Drive NorthCrystal, MN 55429NOT FORCONSTRUCTION3924ExcelsiorBoulevard,St.LouisPark,MN55416A150FIFTH FLOOR PLANApprover09.19.2011111-000809.19.2011AuthorCheckere2 1/8" = 1'-0"1FIFTH FLOOR1 Planning Submittal10.17.113 Planning Resubmittal12.1.114 Staff Review Comments12.21.11City Council Meeting of January 17, 2012 (Item No. 8b) Subject: Ellipse II on Excelsior (e2) Final Plat & PUD & Ellipse on Excelsior PUD Major Amendment Page 35 1ST FLOOR100' - 0"2ND FLOOR112' - 0"3RD FLOOR122' - 6 1/8"4TH FLOOR133' - 0"5TH FLOOR143' - 5 7/8"BRICK VENEERFIBERGLASSWINDOWSSTONE VENEER3 COAT STUCCOSYTEMALUMINUM STOREFRONTCOPPER CANOPYBRICK VENEERALUMINUM SUNSHADEFIBERGLASSWINDOWSMETAL FASCIA& SOFFITMETAL REVEAL,TYP.ALUMINUMBALCONIES, TYPCAST STONE CAPMETAL PARAPETCAPELEVATOR & STAIROVERRUNPREFINISHED ALUMINUM RAILINGTRUSS BEARING152' - 5 3/4"T.O. PARAPET158' - 4 1/2"1ST FLOOR100' - 0"2ND FLOOR112' - 0"3RD FLOOR122' - 6 1/8"GARAGE88' - 8"4TH FLOOR133' - 0"5TH FLOOR143' - 5 7/8"METAL PARAPET,CAPBRICK VENEERFIBER GLASSWINDOWS3 COAT STUCCOSYSTEMALUMINUMSUNSHADESTUCCO PANELVENEERALUMINUMBALCONIES, TYPCAST STONEVENEERFIBERGLASSWINDOWSALUMINUMSTOREFRONT3 COAT STUCCOSYSTEMALUMINUMSTOREFRONTMETAL REVEALS,TYPALUMINUMRAILING @ PARAPET CAPMETAL FASCIA & SOFFITTRUSS BEARING152' - 5 3/4"T.O. PARAPET158' - 4 1/2"1ST FLOOR100' - 0"2ND FLOOR112' - 0"3RD FLOOR122' - 6 1/8"4TH FLOOR133' - 0"5TH FLOOR143' - 5 7/8"STONE VENEER3 COAT STUCCOSYSTEMFIBERGLASSWINDOWSALUMINUMSTOREFRONTALUMINUMBALCONIES, TYPCOPPER CANOPYTRUSS BEARING152' - 5 3/4"T.O. PARAPET158' - 4 1/2"AREA WELLPROJECTED 2'-0"ABOVE GRADEALUMINUM AWNINGCLASS 1 BRICK VENEER STONE VENEER 3 COAT STUCCO SYSTEM COPPER SIDING ALUMINUM STOREFRONT WINDOWSBUILDING MATERIAL RECAPCLASS 2 STUCCO PANEL VENEER CAST STONE VENEER71%29%ELEVATIONCLASS 1CLASS 2COMMENTSSOUTH99%1%WEST61%39%NORTH63%/60%37%/40%2ND NUMBER INCLUDES WALL AREA COVERED BY GARAGE ON ADJACENT PROPERTYEAST67%33%COMBINED ELEVATIONS 1/A200, 2/A201, & 4/A201SOUTH COURTYARD40%60%NORTH COURTYARD100%0%BUILDING MATERIAL BY ELEVATIONSBAHGFCDEARCHITECTURE,INCCopyright2008DJRArchitecture,IncA6333 Washington Ave N, Suite 210Minneapolis, Minnesota 55401612.676.2700 www.djr-inc.comI hereby certify that this plan, specification,or report was prepared by me or under mydirect supervision and that I am a dulyLicensed Architect under the laws of theState of Minnesota.PRINT NAMESIGNATUREREGISTRATION NUMBER DATECLIENT:BADER DEVELOPMENT5402 Parkdale Drive, #200Minneapolis, MN 55416Issue:Date:Project#:Date:Drawnby:Checkedby:CONTRACTORFRANA COMPANIES633 Second Avenue SouthHopkins, MN 55343STRUCTURALHANUSCHAK CONSULTANTS, INC26 Edmonton StreetWinnipeg, Manitoba R3C 1P7CanadaCIVILEVS, INC.10250 Valley View Rd, Suite 123Eden Prairie, MN 55344-3534BCDE54321MECHANICAL & ELECTRICALSTEEN ENGINEERING5430 Douglas Drive NorthCrystal, MN 55429NOT FORCONSTRUCTION3924ExcelsiorBoulevard,St.LouisPark,MN55416A200EXTERIOR ELEVATIONSApprover09.19.2011111-000809.19.2011AuthorCheckere2 1/8" = 1'-0"D4SOUTH EXTERIOR ELEVATION - A 1/8" = 1'-0"D1WEST EXTERIOR ELEVATION - H 1/8" = 1'-0"D5EAST ELEVATION @ SOUTH END OFBLDG - B1 Planning Submittal10.17.112 Planning Corrections11.09.113 Planning Resubmittal12.1.114 Staff Review Comments12.21.11City Council Meeting of January 17, 2012 (Item No. 8b) Subject: Ellipse II on Excelsior (e2) Final Plat & PUD & Ellipse on Excelsior PUD Major Amendment Page 36 1ST FLOOR100' - 0"2ND FLOOR112' - 0"3RD FLOOR122' - 6 1/8"GARAGE88' - 8"4TH FLOOR133' - 0"5TH FLOOR143' - 5 7/8"CAST STONEVENEERALUMINUM RAILING,TYP.METAL PARAPETCAPSTUCCO PANELVENEERFIBERGLASSWINDOWS3 COAT STUCCOSYSTEMTEXTURED CMU3 COAT STUCCOSYSTEMALUMINUMSTOREFRONTMETAL REVEALS,TYPMETAL FASCIA &SOFFITTRUSS BEARING152' - 5 3/4"LINE INDICATES OUTLINE OFGARAGE ON ADJACENTPROPERTY. AREA BELOW LINENOT COUNTED IN BUILDINGMATERIAL CALCULATIONT.O. PARAPET158' - 4 1/2"1ST FLOOR100' - 0"2ND FLOOR112' - 0"3RD FLOOR122' - 6 1/8"4TH FLOOR133' - 0"5TH FLOOR143' - 5 7/8"3 COAT STUCCOSYSTEMFIBERGLASSWINDOWSMETAL RAILING,TYP.STUCCO PANELVENEERTRUSS BEARING152' - 5 3/4"T.O. PARAPET158' - 4 1/2"1ST FLOOR100' - 0"2ND FLOOR112' - 0"3RD FLOOR122' - 6 1/8"4TH FLOOR133' - 0"5TH FLOOR143' - 5 7/8"FIBERGLASSWINDOWSSTUCCO PANELVENEERSTONE VENEERCAST STONE CAPMETAL PARAPETCAPTRUSS BEARING152' - 5 3/4"T.O. PARAPET158' - 4 1/2"METAL PANEL1ST FLOOR100' - 0"2ND FLOOR112' - 0"3RD FLOOR122' - 6 1/8"4TH FLOOR133' - 0"5TH FLOOR143' - 5 7/8"BRICK VENEERSTUCCO PANELVENEERSTONE VENEERFIBERGLASSPATIO DOORALUMINUMSTOREFRONTALUMINUMBALCONIES, TYPTRUSS BEARING152' - 5 3/4"T.O. PARAPET158' - 4 1/2"1ST FLOOR100' - 0"2ND FLOOR112' - 0"3RD FLOOR122' - 6 1/8"4TH FLOOR133' - 0"5TH FLOOR143' - 5 7/8"ALUMINUMSTOREFRONTSTONE VENEERCOPPER CANOPYFIBERGLASSWINDOWSFIBERGLASSWINDOWS3 COAT STUCCOSYSTEMMETAL PARAPETCAPTRUSS BEARING152' - 5 3/4"T.O. PARAPET158' - 4 1/2"CLASS 1 BRICK VENEER STONE VENEER 3 COAT STUCCO SYSTEM COPPER SIDING ALUMINUM STOREFRONT WINDOWSBUILDING MATERIAL RECAPCLASS 2 STUCCO PANEL VENEER CAST STONE VENEER71%29%ELEVATIONCLASS 1CLASS 2COMMENTSSOUTH99%1%WEST61%39%NORTH63%/60%37%/40%2ND NUMBER INCLUDES WALL AREA COVERED BY GARAGE ON ADJACENT PROPERTYEAST67%33%COMBINED ELEVATIONS 1/A200, 2/A201, & 4/A201SOUTH COURTYARD40%60%NORTH COURTYARD100%0%BUILDING MATERIAL BY ELEVATIONSBAHGFCDEARCHITECTURE,INCCopyright 2008 DJR Architecture, IncA6333 Washington Ave N, Suite 210Minneapolis, Minnesota 55401612.676.2700 www.djr-inc.comI hereby certify that this plan, specification,or report was prepared by me or under mydirect supervision and that I am a dulyLicensed Architect under the laws of theState of Minnesota.PRINT NAMESIGNATUREREGISTRATION NUMBER DATECLIENT:BADER DEVELOPMENT5402 Parkdale Drive, #200Minneapolis, MN 55416Issue:Date:Project#:Date:Drawnby:Checkedby:CONTRACTORFRANA COMPANIES633 Second Avenue SouthHopkins, MN 55343STRUCTURALHANUSCHAK CONSULTANTS, INC26 Edmonton StreetWinnipeg, Manitoba R3C 1P7CanadaCIVILEVS, INC.10250 Valley View Rd, Suite 123Eden Prairie, MN 55344-3534BCDE54321MECHANICAL & ELECTRICALSTEEN ENGINEERING5430 Douglas Drive NorthCrystal, MN 55429NOT FORCONSTRUCTION3924ExcelsiorBoulevard,St.LouisPark,MN55416A201EXTERIOR ELEVATIONSApprover09.19.2011111-000809.19.2011AuthorCheckere2 1/8" = 1'-0"GNORTH EXTERIOR ELEVATION 1/8" = 1'-0"FEAST EXTERIOR ELEVATION 1/8" = 1'-0"ESOUTH COURTYARD ELEVATION 1/8" = 1'-0"DEAST COURTYARD ELEVATI 1/8" = 1'-0"CNORTH COURTYARD ELEVATION1 Planning Submittal10.17.112 Planning Corrections11.09.113 Planning Resubmittal12.1.114 Staff Review Comments12.21.11City Council Meeting of January 17, 2012 (Item No. 8b) Subject: Ellipse II on Excelsior (e2) Final Plat & PUD & Ellipse on Excelsior PUD Major Amendment Page 37 ':%'.5+14$.8& %1706;41#&01 27$.+%&'&+%#6+10 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on Excelsior PUD Major Amendment Page 39 City Council Meeting of January 17, 2012 (Item No. 8b) Subject: Ellipse II on Excelsior (e2) Final Plat & PUD & Ellipse on Excelsior PUD Major Amendment Page 40 City Council Meeting of January 17, 2012 (Item No. 8b) Subject: Ellipse II on Excelsior (e2) Final Plat & PUD & Ellipse on Excelsior PUD Major Amendment Page 41 City Council Meeting of January 17, 2012 (Item No. 8b) Subject: Ellipse II on Excelsior (e2) Final Plat & PUD & Ellipse on Excelsior PUD Major Amendment Page 42 City Council Meeting of January 17, 2012 (Item No. 8b) Subject: Ellipse II on Excelsior (e2) Final Plat & PUD & Ellipse on Excelsior PUD Major Amendment Page 43 City Council Meeting of January 17, 2012 (Item No. 8b) Subject: Ellipse II on Excelsior (e2) Final Plat & PUD & Ellipse on Excelsior PUD Major Amendment Page 44