HomeMy WebLinkAbout1984/01/09 - ADMIN - Minutes - City Council - Study SessionMINUTES
CITY COUNCIL STUDY SESSION
ST. LOUIS PARK MINNESOTA
January 9, 1984
1. Call to Order - The study session was called to order at 6:40 p.m. by
Mayor Lyle Hanks.
2. Roll Call - The following Council members were present for the study
T
session:
Ronald Backes
Thomas Duffy
Jerrold Martin
Keith Meland
Larry Mitchell
Lyle Hanks
Also present were the City Manager, Bill Weber of BRW and Don Keysser of
Evenson-Dodge.
3. Highway 7 Redevelopment Plan - Bill Weber of BRW summarized the
Highway 7 Redevelopmentan. One of the assumptions made in the
development of this plan anticipates the availability of technical
financial and legal solutions to the Taracorp and Reilly Tar and
Chemical sites. The redevelopment plan did not take the development
of light rail transit into consideration, but Mr. Weber said that
light rail transit would provide further impetus to redevelopment
of the Highway 7 corridor.
Major design elements of the redevelopment plan include: (1) creation
of a Xenwood Ave. railroad crossing to serve elderly housing at
the present site of the Burdick elevators; (2) realignment of the
Wooddale/TH 7 intersection; (3) completion of an at -grade intersection
of Louisiana Ave. and TH 7 (to be financed with funds other than
those generated by the tax increment district); (4) extending Hampshire
Ave. across Highway 7; (5) eliminating the traffic signal at Quebec
and Highway 7 as well as the access to Quebec south of Highway
7; (7) realignment of the Texas/Highway 7 intersection; and (8)
landscaping throughout the Highway 7 corridor.
Councilman Meland asked Mr. Weber if the MTC had been contacted
regarding the routing of buses if access to Quebec south of Highway
7 were to be eliminated. Mr. Weber said that he had not contacted
the MTC.
Councilman Martin questioned the number of properties that would
be served by convenient access from the Highway 7 corridor. The
City Manager noted that frontage roads served much of the land slated
for office and industrial use. Mr. Weber said that revisions to
the frontage road system balanced access needs and traffic safety.
Don Keysser of Evenson-Dodge presented the financing plan for the
Highway 7 redevelopment project. He said that creation of a tax
Minutes
City Council study session -2-
January 9, 1984
increment district was recommended•Tax itself Eby rement using financing tax increments
allows
private development to leverage
to finance public improvements. Mr. Keysser noted that tax increment
financing would become more attractive as Congress continues to
consider placing restrictions on the use of industrial revenue
bonds.
Mr. Keysser identified the boundaries of the proposed redevelopment
district. He said that the tax increment district located within
the redevelopment district need not be contiguous. He added that
the tax increments could be used to finance public improvements
within the redevelopment district even if the public improvements
did not fall within the boundaries of the tax increment district.
The tax increment financing plan is being proposed in three separate
phases, each of which would be self-supporting. Each phase involves
a bond issue. Tax increment financing would not preclude the use
of general obligation funds, special assessments and industrial
revenue bonds.
Councilman Martin asked about the payback periods on the tax increment
bonds. Mr. Keysser said that in accordance with the Comprehensive
Plan, the payback period would be less than 12 years. The bonds
would also include call features at 5-6 years.
The City Manager said that the question Council needs to address
is whether the development outlined in the Highway 7 corridor plan
would occur without the creation of a tax increment district.
If Council believes that a tax increment district is needed, the
final plan document should be prepared and presented to the Council
at a meeting in February.
Councilman Backes said that Council needs to give some direction
on how staff should proceed with the Highway 7 redevelopment plan.
He said that he does not foresee the HRA taking on a redevelopment
project of this scope. He also said that a financial impetus must
be established to promote development and that business people
in this area must be involved in the redevelopment.
Mayor Hanks suggested that discussion of this issue be continued
at the Jan. 16, 1984 meeting.
The study session was adjourned at 7:28 p.m.
Sharon G. Kl mJpP4__1_14_r
Recording Secretary