HomeMy WebLinkAbout1993/06/21 - ADMIN - Agenda Packets - Economic Development Authority - RegularA G E N D A
E C O N OM I C D E V E L O P M EN T A UT H O R I T Y
ST . L O U I S P AR K , M I NN E SO T A
June 21, 1993
7:00 p.m.
1. Call to order
2. Roll call
3. Approval of minutes of June 7, 1993 meeting
4. Approval of agenda for June 21, 1993
A/GH5-0
Cu/CH 5-0
5. Reports
)
6. Unfinished Business
a. Resolution approving Hazardous Substance, Subdistrict
and making findings' \/GHt (hcr ta) 5-O
Action: Motion to adopt resolution l
Plan
7. New business
a. Oak Park Village parking issue
8. Communications and bills
None
[/AF lea 1p
5-0
9. Adjournment
R E Q U E S T F O R E D A A C T IO N
DATE ----------
June 21 , 199 3
AGENDA SECTION@finished Business
NO. 6
ORIGINATING DEPARTMENT:
Community Development
[TEMResolution Approving Hazardous
Substance Subdistrict Plan and
No. Making Findings
APPROVE}:
/} David Hagen, Director
BACKGROUND
At the June 7 Economic Development Authority meeting application was
made to the City Council for approval of the hazardous substance tax
increment financing subdistrict plan. A copy of the proposed plan is
included with the Council resolution contained in the Council agenda
package for the June 21 meeting. As required by State Statute, the
EDA has provided members of the County Board and School Board an
opportunity to meet with the Authority to discuss the plan after
having provided estimates of the fiscal and economic implications to
those boards. According to State Statute the EDA is required to make
certain findings as it approves the plan. Attached is a resolution
that approves the plan and makes those findings.
) RECOMMENDATION
Approve the resolution attached.
4167:GEN41
PUBLIC WORKS FINANCE COMMUNI I Y UEVtLUH.
APPROVAL APPROVAL APPROVAL APPROVAL
-FAINED OBTAINED OBTAINED OBTAINED J
ACTION: MOTION BY 2ND BY
Executive Director
APPROVAL /)• a..
OBTAINED JZT
TO ----------- ------
- .
EDA
RESOLUTION NO. -----
A RESOLUTION APPROVING PARK NICOLLET HAZARDOUS
SUBSTANCE TAX INCREMENT FINANCING SUBDISTRICT PLAN FOR
AN AREA WITHIN EXCELSIOR BOULEVARD TAX INCREMENT
FINANCING DISTRICT AND MAKING FINDINGS RELATED THERETO
)
WHEREAS, the St. Louis Park Economic Development Authority ("Authority") has
prepared a proposed hazardous substance tax increment financing subdistrict plan ("Plan")
for creation of a hazardous substance subdistrict within an area within the Excelsior
Boulevard Tax Increment Financing District pursuant to Minnesota Statutes; Section
469.17 4 to 469.179 and 1992 session laws, Chapter 511, Article 9, Section 29; and
WHEREAS, the Authority has made application to the City of St. Louis Park for
approval of the Plan, and
WHEREAS, the Authority estimated the fiscal and economic implications of the Plan
and forwarded those estimates to the County and School District boards at least thirty days
before a public hearing was held to consider adoption of the Plan, and
WHEREAS, the Authority provided an opportunity to members of the Hennepin
County Board and St. Louis Park School Board to meet with the Authority to discuss the
Plan, and
WHEREAS, Staff has discussed the fiscal and economic implications of the Plan with
representatives of the School District and County, and
NOW THEREFORE BE IT RESOLVED, that the St. Louis Park Economic
Development Authority hereby approves and adopts the Plan and approves the creation of a
hazardous substance subdistrict and makes the following findings based on reasons and
supporting facts set forth in the Plan:
1. Development or redevelopment of the site in the opinion of the Authority would not
reasonably be expected to occur solely through private investment and tax increment
otherwise available and therefore the Hazardous Substance Subdistrict is deemed
necessary.
2. Parcels not designated hazardous substance sites are expected to be developed
together with a designated hazardous substance site.
3. The subdistrict is not larger than and the period of time during which increments are
likely to be received is not longer than that which is necessary in the opinion of the
Authority to provide for the additional cost due to the designated hazardous
substance site.
)
1
The St. Louis Park Economic Development Authority also hereby directs the Executive
Director to certify to the County Auditor that the Authority has entered into a
Redevelopment Agreement for the removal or remedial actions specified in a development
response action plan and to request certification as to the original net tax capacity of the
Hazardous Substance Tax Increment Financing Subdistrict.
Approved by the St. Louis Park Economic
Development Authority on June 21, 1993
Keith Meland, President
ATTEST:
Charles W. Meyer, Executive Director
4164:RES7
)
MEMORAND UM
To: Economic Development Authority &
City Council
THROUGH: Charles W. Meyer, Executive Director & City Manager /)r]
FROM: David Hagen, Community Development Director@,
DATE: June 21, 1993
SUBJECT: Comments from County Relative to Hazardous Substance
Subdistrict Plan
Attached is a memo from the Deputy Hennepin County Administrator
to members of the Hennepin County Board relating to the creation
of the proposed Park Nicollet Hazardous Substance Tax Increment
Financing Subdistrict. The County has requested that this memo
be made part of the public hearing record relative to creation of
the subdistrict.
Recommendation: By motion acknowledge receipt of the memo after
the public hearing in front of the City Council has opened.
)
4173:GEN4 O
H C P R DDP T A X & P U B R E C TE L :6 1 2 -5 4 8 -9 7 1 6 Jun 21.95 15:11 N0.006 P.02
HENNEPIN
DATE:
TO:
FROM:
SUBJECT:
June 18, 1993 ~
Members of the Hennepin County Board
Robert L. Hanson, Deputy County Administrator
Proposed Park Nicollet TIF Project in St. Louis Park
Crossroads To Service
)
I. PROPOSED ACTION
The city of St. Louis Park, through its Economic Development Authority, proposes to
create a "Hazardous Substance" tax increment financing (TIF) subdistrict to facilitate
development by the Park Nicollet Medical Center. The proposed development is
located in the northeast quadrant of Highway 100 and Excelsior Boulevard.
The hazardous substance subdistrict would be situated within the existing Excelsior
Boulevard TIF district that was established in 1977. This TIF district currently collects
about $2.1 million per year and will legally terminate in 2009.
The discovery of hazardous substances, the residual effects of a city dump, have
blocked further redevelopment of sites in the subject area. Additional TIF revenue from
new development and from the base value within the hazardous substance subdistrict
would fund remedial actions specified in the Development Response Action Plan and
also would finance an environmental indemnity fund,
11. STATUTORY AUTHORITY
Although hazardous substance subdistricts have been authorized by general state TIF
law since 1988, none has been created in Hennepin County to date. In 1992 the
omnibus tax bill (chapter 511, article 9, section 29) authorized the city of St. Louis
Park to create this site • specific subdistrict, waiving certain restrictions in the general
law and imposing some offsetting safeguards. For instance, chapter 511 limits the
size of this subdistrict to 20 acres; general law sets no limitation. The proposed
subdistrict is 18 acres.
Hazardous substance subdistricts are unique because TIF can be captured on the
property value existing at the time the district was created. In all other cases, TIF is
captured only on the growth in property valus arising after the district is created. Ir
this case, tax increment of approximately $240,000 per year will be diverted from
existing tax base, to be spent only for remediation and the environmental indemnity
fund.
III. DESCRIPTION OF PROPOSED DEVELOPMENT
The TIF plan indicates that substantial redevelopment contracts have been executed,
C PROP TRX & PUB REC TEL:612-548-9716 Jun 21,95 15:12 No.006 P.05
Members of the Hennepin County Board
Page 2
June 18, 1993
but these contracts are contingent upon the establishment of the hazardous substance
subdistrict. Park Nicollet Medical Center proposes to develop at least 250,000 square
feet of medical office space, building in two phases.Phase I construction of
$10 ,9 0 0 ,0 0 0 would occur in 1995. Phase Il would be completed in 2004 at an
investment of about $15,100,000. Frauenshuh Companies would construct a
restaurant/retail/cinema development in 1995 at a cost of $3.8 million. Other
development may follow, but timing and nature are indefinite at this time.
IV. ESTIMATED PUBLIC COSTS
The following public costs are identified in the new TIF plan:
)
Consultant costs
Road and utility costs
Parking ramp costs
Land cost of failed prior project
Remedial action, removal and
indemnification costs (gross)
Administration costs
Total costs
$ 325,000
1,500,000
4,500,000
12,000,000
9,000,000
900,900
$28,225,000
The roadway and utility improvement costs will be specially assessed to the medical
project. The public parking ramp costs of $4.5 million are cited as necessary to make
this site competitive with alternative sites under consideration by the developers. The
developers have agreed to assume $2.0 million in remediation costs. The remaining
$7.0 million of remediation and indemnification costs will be financed through TIF.
The land costs of $12.0 million for the failed prior project have already been paid for
by TIF collected in prior years.
V. DURATION OF HAZARDOUS SUBSTANCE SUBDISTRICT
Under terms of the special enabling legislation, the subdistrict must be decertified after
sufficient TIF revenues have been received to pay all remediation costs, deposits to an
indemnification fund or insurance premiums and administrative costs. It is estimated
in the plan that TIF will be collected through 2006 in order to pay these costs. The
subdistrict would be terminated at tho end of 2006 although the Excelsior Boulevard
T IF district in w hich it is located will not terminate until 2009.
Vt. FISCAL IMPACT
Assuming the worst case scenario that this or similar development would occur in the
subdistrict without a subsidy, county tax base of $1.5 million in tax capacity each year
is lost until 2006. The county tax rate increase is .18 of one percent, producing a
IC PROP TAX & PUB REC TEL:612-548-9716 Jun 21,95 15:12 No.006 P.04
Members of the Hennepin County Board
Page 3
Tune 18, 1993
county tax increase of less than one dollar each year on a $100,000 homestead in the
county.
VII. DISCUSSION AND RECOMMENDATION
The history of failed and stalled projects in the Excelsior Boulevard TIF district indicates
that further desirable development will not occur unless the contamination issues are
addressed by public subsidy. The "but for" test has been met in the opinion of staff.
Although counties generally view ground contamination as a state problem to be
financed ideally with state money, no state money will be available for this project in
the foreseeable future. Accordingly, under the circumstances, Hennepin County should
not oppose this proposal to create the Park Nicollet Hazardous Substance Subdistrict.
As provided in county resolution 92-10-917 RT, a copy of this report has been mailed
to David Hagen, Director of Community Development for the city of St. Louis Park, to
be entered as a comment at the hearing scheduled for June 21, 1993 by the City
Council when adoption of the tax increment financing plan will be considered.
Questions on this report may be referred to Jerry Pahl at 348-5668.
)
R E Q U E S T- F O R E D A A C T I O N
DATE June 21, 1993
AGENDA SECTION:
NO. 7
New business- ORIGINATING DEPARTMENT:
Parks and Recreation
ITEM:
NO. 7 a
Oak Park Village parking issue
APPROVED:
BACKGROUND
BACKGROUND: For more than a dozen years, the City has operated and maintained two full sized soccer fields
on EDA property at Oak Park Village. The fields are used primarily by fee-paying adult groups during the summer
and by High School and Recreation soccer teams during the fall.
Due to increased popularity in soccer, the existing parking accommodations at the south end of Oak Park Village
are inadequate. At various times throughout the summer and fall, cars are parked on the turf along both sides of
the parking lot as well as along the gravel driveway leading to the monitoring well adjacent to Louisiana Avenue.
Approximately two years ago the City Council agreed to allow head-in parking on Oak Leaf Court (the cul-de-sac
west of Louisiana Avenue which lies adjacent to 3300 On The Park). However, the additional spaces which were
provided through this action have failed to solve the existing problem.
PROPOSAL: Staff members from Parks and Recreation, Public Works and Community Development have worked
jointly to create a proposal which should resolve the existing parking and traffic problems associated with the
soccer use at Oak park Village. Under this plan, a new gravel-surfaced parking lot would be constructed by City
forces at the south end of Oak Park Village (see attached site plan).
Though not a permanent installation, the new parking facility would be designed with proper specifications so that it
could serve as a suitable base for a permanent parking facility if one is desired in the future. The staff proposal
involves little capital expenditure (less than $5000 for materials) and the work would be performed primarily by City
forces. In addition, the project would provide improvements to the area in the following ways:
1. Parking requirements for all adult and youth soccer activities would be met by nearly doubling the existing
capacity.
2. The proposed set-back and landscaping design would bring the site into compliance with the City's new
zoning ordinance.
3. Controlled ingress and egress would direct traffic away from the Louisiana AvenuejWalker Street
intersection, reducing congestion and improving safety conditions in that area.
4. The parking lot would be properly graded to improve drainage in the southern end of Oak Park Village.
5. The site plan calls for a future trail connection which would provide pedestrian access along the north side
of Walker Street from Louisiana Avenue to the trail connection south of Oak Lake.
RECOMMENDATION: Staff recommends that the EDA approve this project as proposed and authorize City forces
to begin construction this summer. It is proposed that funding for the gravel-surfaced parking lot be provided from
the Park Improvement Fund.
PUBLIC WORKS FINANCE COMMUN1 I 1 UEVtELUH. MANAGER'S
APPRO VAL APPRO VAL APPROVAL APPROVAL APPROVAL tr » TAIN E D OBTAINED OBTAINED OBTAINED OBTAINED
a
COUNCIL ACTION: MOTION BY 2ND BY TO
" )
M inu te s
Ec o n o m ic Dev elo pm e n t Au thor ity
s t . L o u is Park, M in neso ta
June 21 , 19 93
1. Call to order
President Meland called the meeting to order at 7:00 p.m.
2. Roll call
The following Commissioners were present at roll call: George
Haun, Allen Friedman, Lyle Hanks, Gail Dorfman and Keith Meland.
Also present were the Executive Director (Mr. Meyer),
Attorney (Mr. Steilen), Director of Community Development
Hagen) and Director of Parks and Recreation (Mr. Gears) .
3. Approval of minutes of June 7, 1993 meeting
City
(Mr.
It was moved by Commissioner Hanks, seconded by Commissioner
Dorfman, to approve the minutes. The motion passed 5-0.
4. Approval of agenda
It was moved by Commissioner Dorfman, seconded by Commissioner
Haun, to approve the agenda. The motion passed 5-0.
5. Reports - None
6. Unfinished business
a. Resolution approving Hazardous Substance Subdistrict Plan and
making findings - Resolution EDA 4-93
President Meland said input had been requested from the School
District and County Commissioners. A letter has been received
from the Commissioners approving creation of the subdistrict.
Nothing has been received from the School District and it is
assumed no comment being received constitutes approval.
It was moved by Commissioner Hanks, seconded by Commissioner
Haun, to adopt Resolution EDA 4-93 entitled "A resolution
approving Park Nicollet Hazardous Substance Tax
Financing Subdistrict Plan for an area within Excelsior
increment financing district and making findings
Increment
Blvd. tax
related
thereto."
Mr. Hagen noted that the County requested the
acknowledge receipt of its memo and make it part of
for the public hearing.
Authority
the record
Commissioner Hanks added that to the motion; Commissioner Haun
agreed.
1
T h e m o t i o n p a s s e d 5 -0 .
7 . N e w b u s i n e s s
a . O a k P a r k V i l l a g e p a r k i n g i s s u e
M r . G e a r s r e l a t e d t h e p r o b l e m s w i t h p a r k i n g o v e r t h e y e a r s a t t h e
s o c c e r f i e l d s i t e i n O a k P a r k V i l l a g e . S t a f f 's s o l u t i o n i s f o r
c o n s t r u c t i o n o f a t e m p o r a r y g r a v e l -s u r f a c e d p a r k i n g l o t t o b e
c o n s t r u c t e d b y C i t y f o r c e s a t t h e s o u t h e n d o f O a k P a r k V i l l a g e .
C o m m i s s i o n e r H a n k s s a i d h e d i d n o t w a n t a n y o n e t o c o n s t r u e t h a t
t h e C i t y i s a l l o w i n g a g r a v e l -s u r f a c e d p a r k i n g l o t w i t h o u t m o v i n g
f o r w a r d t o m a k i n g i t p e r m a n e n t .
I t w a s m o v e d b y C o m m i s s i o n e r H a n k s , s e c o n d e d b y
F r i e d m a n , t h a t t h e p r o p o s e d p r o j e c t m o v e f o r w a r d
b r o u g h t b a c k t o t h e E D A a n d C o u n c i l r e g a r d i n g
p e r m a n e n t i n s t a l l a t i o n .
C o m m i s s i o n e r
a n d t h e n b e
m a k i n g i t a
C o m m i s s i o n F r i e d m a n a s k e d t h e m a k e r t o s p e c i f y a d a t e c e r t a i n f o r
p e r m a n e n t i n s t a l l a t i o n .
C o m m i s s i o n e r H a n k s s a i d i t w o u l d b e a p p r o p r i a t e a s s o o n a s s t a f f
c o m e s b a c k w i t h s p e c i f i c a t i o n s t o g o o u t t o b i d .
C o m m i s s i o n e r H a u n a s k e d w h a t s t a f f 's i n t e n t w a s i n n o t g o i n g t o a
p e r m a n e n t i n s t a l l a t i o n a t t h e o u t s e t .
M r . G e a r s r e s p o n d e d t h a t i n h i s d i s c u s s i o n s w i t h M r . H a g e n a n d
M r . G r u b e , a p e r m a n e n t i n s t a l l a t i o n w a s a g r e e d u p o n . T h e
o v e r r i d i n g c o n c e r n o f s t a f f i s t h a t n o l o n g -t e r m d e v e l o p m e n t p l a n
h a s b e e n s e t u p f o r t h a t s i t e a n d t h a t c o n s t r u c t i o n o f a
p e r m a n e n t p a r k i n g f a c i l i t y w i t h o u t d i s c u s s i o n a m o n g t h e E D A a n d
C o u n c i l m i g h t t e n d t o p r e d i s p o s e t h e E D A /C o u n c i l t o a p a r t i c u l a r
p l a n .
C o m m i s s i o n e r H a u n
i s s u e o f p e r m a n e n t
s e v e r a l p a r k s i t e s
P a r k V i l l a g e w a s a
f e l t i t w a s h i g h t i m e t h e C i t y a d d r e s s
p a r k i n g f a c i l i t i e s i n C i t y p a r k s -- t h e r e
w i t h u n i m p r o v e d p a r k i n g l o t s . H e b e l i e v e d
g o o d p l a c e t o s t a r t .
t h e
a r e
O a k
T h e m o t i o n p a s s e d 5 -0 .
8 . C o m m u n i c a t i o n s a n d b i l l s - N o n e
9 . A d j o u r n m e n t
T h e m e e t i n g a d j o u r n e d a t 7 :1 5 p .m .
P r e s i d e n t
E x e c u t i v e D i r e c t o r
2
M i n u t e s
E c o n o m i c D e v e l o p m e n t A u t h o r i t y
s t . L o u i s P a r k , M i n n e s o t a
J u n e 2 1 , 1 9 9 3
1. Call to order
President Meland called the meeting to order at 7:00 p.m.
2. Roll call
The following Commissioners were present at roll call: George
Haun, Allen Friedman, Lyle Hanks, Gail Dorfman and Keith Meland.
Also present were the Executive Director (Mr. Meyer),
Attorney (Mr. Steilen), Director of Community Development
Hagen) and Director of Parks and Recreation (Mr. Gears).
3. Approval of minutes of June 7, 1993 meeting
City
(Mr.
It was moved by Commissioner Hanks, seconded by Commissioner
Dorfman, to approve the minutes. The motion passed 5-0.
4. Approval of agenda
It was moved by Commissioner Dorfman, seconded by Commissioner
Haun, to approve the agenda. The motion passed 5-0.
) 5. Reports - None
6. Unfinished business
a. Resolution approving Hazardous Substance Subdistrict Plan and
making findings - Resolution EDA 4-93
President Meland said input had been requested from the School
District and County Commissioners. A letter has been received
from the Commissioners approving creation of the subdistrict.
Nothing has been received from the School District and it is
assumed no comment being received constitutes approval.
It was moved by Commissioner Hanks, seconded by Commissioner
Haun, to adopt Resolution EDA 4-93 entitled "A resolution
approving Park Nicollet Hazardous Substance Tax
Financing Subdistrict Plan for an area within Excelsior
increment financing district and making findings
thereto."
Increment
Blvd. tax
related
Mr. Hagen noted that the County requested the
acknowledge receipt of its memo and make it part of
for the public hearing.
Authority
the record
?
Commissioner Hanks added that to the motion; Commissioner Haun
agreed.
1
T h e m o t i o n p a s s e d 5-0 .
7 . N e w b u s i n e s s
a . O a k Pa r k V il l a g e p a r k in g i s s u e
M r . G e a r s r e l a t e d th e p r o b l e m s w it h p a r k in g ov e r th e y e a r s a t th e
so c c e r fi e l d si t e in Oa k Pa r k V il l a g e . St a f f 's so lu t i o n is fo r
co n s t r u c t i o n o f a te m p o r a r y g r a v e l -s u r f a c e d p a r k in g lo t to b e
co n s t r u c t e d b y C it y fo r c e s at th e so u t h en d o f O a k Pa r k V i l l a g e .
Co m m i s s i o n e r H an k s sa id h e d id n o t w a n t an y o n e to co n s t r u e th a t
th e C i t y is a l l o w in g a g r a v e l -s u r f a c e d p a r k in g lo t w it h o u t m o v in g
fo r w a r d to m a k in g it p e r m a n e n t .
It w a s m o v e d by Co m m is s i o n e r H a n k s , se c o n d e d b y
Fr i e d m a n , th a t th e p r o p o se d p r o je c t m o v e fo r w a r d
b r o u g h t b a c k to th e ED A an d Co u n c i l r e g a r d i n g
p e r m a n e n t in s t a l l a t i o n .
Co m m i s s i o n e r
an d th e n b e
m a k in g it a
)
Commission Friedman asked the maker to specify a date certain for
permanent installation.
Commissioner Hanks said it would be appropriate as soon as staff
comes back with specifications to go out to bid.
Commissioner Haun asked what staff's intent was in not going to a
permanent installation at the outset.
Mr. Gears responded that in his discussions with Mr. Hagen and
Mr. Grube, a permanent installation was agreed upon. The
overriding concern of staff is that no long-term development plan
has been set up for that site and that construction of a
permanent parking facility without discussion among the EDA and
Council might tend to predispose the EDA/Council to a particular
plan.
Commissioner Haun
issue of permanent
several park sites
Park Village was a
felt it was high time the City address
parking facilities in City parks -- there
with unimproved parking lots. He believed
good place to start.
the
are
Oak
The motion passed 5-0.
8. Communications and bills - None
9. Adjournment
The meeting adjourned at 7:15 p.m.
President
<O Executive Director
2