062089 PlanningAGENDA
PLANNING COMMISSION MEETING OF JUNE 20, 1989
CITY OF NEW HOPE, MINNESOTA
7:30 p.m.
1. CALL TO ORDER
2. ROLL CALL
3. PUBLIC HEARINGS
3.1 Case 89-11 -
Request for Preliminary Plat Approval,
Rezoning, Planned Unit Development
Conditional Use Permit Development Stage
Approval
3540 Winnetka Avenue North
All American Storage, Petitioner
4 OLD BUSINESS
5. NEW BUSINESS
5.1 Review of Preliminary Redevelopment Plan for Redevelopment
Project 89--1 and Tax Increment Financing Plan for Tax
Increment Financing Project 89-1 (3540 Winnetka Avenue North
- Holy Nativity Church)
5.2 Review of Preliminary Redevelopment Plan.for Redevelopment
Project 89-2 and Tax Increment Financing Plan for Tax
Increment Project 89-2 (3900 Winnetka Avenue North-
Minnegasco Property, excluding the area proposed for
development by Holy Nativity Church which encompasses
approximately the westerly 4.0 acres)
6. ANNOUNCEMENTS
7. ADJOURNMENT
CITY OF NEW HOPE
PLANNING CASE REPORT
Planning Case: 89-11
Request: Preliminary
Location:
PID No.:
Zoning:
Petitioner:
Report Date:
Meeting Date:
Plat, Rezoning, Planned Unit Development
Conditional Use Permit Development Stage Approval
3540 Winnetka Avenue North
20-118-21 22 0001
R-0 (Residential Office)
All American Self Storage
June 16, 1989
June 20, 1989
Ne
CASE UPDATE
The Planning Commission reviewed the Development Stage Planned Unit
Development Conditional Use Permit, Rezoning, and Preliminary Plat
on June 5, 1989. The Planning Commission tabled the case until
June 20, 1989, so that the developer could provide the following
information:
A traffic impact analysis showing the adeqUacy of the interior
design and the impact of the project on public streets.
B. Revision in plans to accommodate 15 additional parking stalls.
Landscaping plan which sufficiently screens the residential
development to the east.
D. A project narrative for P.U.D development.
Attachment A is the Planner's Report on the revised plans.
Traffic Impact Analysis
The developer has completed a traffic impact analysis and the
city's Traffic Engineer is in the process of reviewing the
document. While the City's Traffic Engineer has not reviewed the
final document, early data suggests that without developing the
outlot, the shopping center is likely to experience problems with
left turns exiting the site on 36th Avenue.
A full review of the traffic analysis will be presented to the
Commission on Tuesday evening.
Planning Case 89-11
June 20, 1989
Page -2-
4. Parking
The Planner's Report addresses the parking issue. The developer
has created a sufficient number of stalls to meet the City's
parking standard. However, the Planner's Report discusses the
impact of the parking stalls on green space and cites some
deficiencies in location of the stalls.
Size of Structure
The shopping center has been reduced by 3000 square feet.
Drainage Issues
Please refer to the City Engineer's comments contained in
Attachment B. The ponding provided in the northwest corner as
proposed is not of adequate design. The City Engineer is
indicating that in order to create an adequate ponding area, a 45
foot drainage and utility easement should be provided on both
Winnetka and 36th Avenues in the vicinity of the outlot.
The drainage and ponding requirements of the site have an impact on
the development of the site. With adequate easements, the outlot
is reduced to a 148' x 150' parcel, or a 22,200 square foot parcel.
The City Engineer is also recommending the placement of catch
basin inlets on 36th Avenue.
Comprehensive Sign Plan
Staff is in the process of reviewing the comprehensive sign plan
which is contained in Attachment C. The plan appears to be in
compliance with City code. Staff needs clarification with
petitioner on some items prior to final approval.
Outlot
The outlot, with the required right-of-way and drainage and utility
easements, has been reduced to 22,000 square feet. Based on the
preliminary traffic information, and the drainage issue, it appears
that the site as proposed may be overdeveloped. In order to
maintain the right to review further development of the area, staff
recommends that it not be subdivided at this time.
P.U.D. Narrative
Attachment D consists of the developer,s narrative.
Planning Case 89-11
June 20, 1989
Page -3-
RECOMMENDATION
Staff recommends approval of the Rezoning from R-O (Residential-
office) to B-4 (Community Business), Preliminary Plat, and Development
Stage Planned Unit Development Conditional Use Permit subject to the
following conditions:
1. That the plat is revised to show one parcel.
That the plan restores the larger green areas along 36th and
Winnetka Avenues.
That a 45 foot drainage and utility easement be dedicated along the
outlot portion of Winnetka and 36th Avenues as described by the
City Engineer in Attachment B.
That the ponding area is developed per the comments of the City
Engineer set forth in Attachment B.
5. That catch basins be provided on the 36th Avenue driveways.
That a 5 foot wide concrete sidewalk be constructed along 36th and
Winnetka Avenues and located 1 foot from the right-of-way line.
That staff's recommendation is contingent upon the complete review
of the traffic impact analysis by the City's Traffic Engineer.
Attachments:
A - Planner's Report (June 16, 1989)
B - City Engineer's Comments (June 15, 1989)
C - Comprehensive Sign Plan
D - Developer's Narrative (June 14, 1989)
northwest associated consultants, inc.
MEMORANDUM
TO:
Jeannine Dunn
Dan Donahue
FROM:
DATE:
RE:
Alan Brixius
15 June 1989
New HOpe - Neighborhood convenience Center
36th and Winnetka
FILE NOi
131.01 - 89.11
This memo is to express our comments and reservations concerning
the 36th and Winnetka shopping center proposal. There has been
positive feedback to the project with regard to the rezoning and
the site design, however, we have some reservations with regard
to the project location, size and market strength with regard to
the City's commitment to its existing commercial areas.
LOCATION, The project can Compatibly co-exist with adjacent land
uses iR the area provided traffic concerns can be resolved. The
locational concerns stem from impacts on land uses away from the
site.
1. 36th Avenue is primarily a residential collector street.
'The introduction of a large scale co,mercia% facility at the
Winnetka and 36=h Avenue intersection will introduce new
traffic onto 36th Avenue attempting to enter or exit this
shopping destination. The City's Traffic Engineer indicates
that the proposed shopping center without the outlot
development will create internal site circulation traffic
problems when it opens. Traffic volumes existing on both
36th Avenue and Winnetka Avenue complicate the accessibility
of the site. The size and traffic generation forecasted
from the shopping center are projected to increase traffic
congestion and traffic safety problems on these two major
collector streets.
Additional concerns are raised with regard to additional
commercial traffic on 36th Avenue and how it may impact the
residential land uses that abut this street.
4601 excelsior blvd., ste. 410, minneapolis, mn 55416 .(612} 925-9420 f~x 925-2721
n~ ~ R. Rcl ~ Iq: 1 1 AM PO2
The proposed 40,000 square foot shopping facility is located
within one mile of three of' New Hope's existing commercial
areas. This arrangement further disperses the commercial
land use throughout the City.. This is contrary to the
City's objective to establish a unified and cohesive
commercial area.
PROJECT SIZE. The project is proposed to consist of a 42,933
sq?ar? foot shopping center and a 4,600 square foot free-standing
building on the outlot.
The proposed shopping center would be equivalent to the leasable
floor space of the New Hope Mall without U.S. Swim and Fitness.
This is a large commercial facility in an area of the City that
previous was served by small convenience retailers. The 1989
Market Study suggested that the novelty of a new commercial
facility of this intersection, may contribute to the success of
the new facility but at may be at the expense of the older
established retailers. The impact of a facility of this size
will impact retailers at both the City Center and Midland
Shopping Center.
The size of the facility also raises some concerns from a site
design perspective. These concerns include:
Green Space
The newest site plan shows a 13 percent green space allocation
plan. It should be noted, however, that the green space
increases include the planter on the sidewalk, landscaping in the
curb islands and narrow sodded areas on the south side of the
building.
In response to providing the required parking, the green space
has been re-distributed thro?ghout the site. As a result, the
concentrated area of landscaping proposed in original site plans
have been reduced. The landscape area along 36th Avenue has been
reduced from 22 feet in width to 14.5 feet in width. The western
side of ~he center was originally proposed to have a 60 foot
landscaped yard. This yard now contains parking and the
landscape area has been reduced to 30 feet.
The past planners report cited a parking deficiency. The most
recent site plan complies with the required amount of parking.
Compliance has occurred, with a reduction of the shopping center
size and the provision of more parking stalls. The provisions Of
the addition of parking stalls wherever possible, illustrate the
use intensity of the site. The parking arrangement p~esents
internal traffic circulation problems.
Additional parking has been located south of the building.
This introduces additional automobile traffic into an area
previously reserved for loading and deliveries. The loading
zone for tenant bay ! was reduced to 'accommodate additional
parking. These 90 degree parking spaces southwest of tenant
bay I must perform accessing movement via south drive aisle.
The east tier of parking on the outlot concept offers two-
way access. This arrangement is not desirable in that it
does not channelize traffic to internal driveways· This
could result in traffic conflicts and congestion in one of
the main internal drive aisles.
Traffic
The most critical element suggesting that the site is being over-
utilized is the traffic study that indicates that the site will
present traffic problems when it opens without developing the
outlot. Future development of the outlot will only contribute to
the anticipated traffic congestion and conflicts.
I~ARKET STRENGTH. The 1985 and 1989 Market Studi~s for the City
of NeW Hop? reveal t~at Jew Hope's trade 9rea ~S beipg reduced
by competitive fa~ilitaes an Maple Grove, .Plymouth, 9nd Crystal.
Also,'population an.New Hope's trade ar~a as not growing, 9s such
the market support an New Hope is a £inite resource that the
City must be careful in its use and distribution.
Due to the competitive influence of th? regional shopping
centers, it is anticipated that the majority of the proposed
shopping center will compete in the convenience good markets.
The 1985 and 1989 Market Studies indicated a limit expansion
potential for convenience goods. Since 1985, New Hope has
already added 32,000 square feet of retail space. This suggests
that the retail market has tightened since 1985.
The City of New Hope has worked hard to redevelop.and reinforce
the commercial/retail image of the City's existing commercial
areas. Involved in this work, has been major investments from
both the private and public sectors. Past planning efforts
suggested that the introduction of this new shopping center may
have a detrimental impact on other established commercial areas
in New Hope by further dividing a constant market.
The project has generated enthusias~ with regard to site design
and buildang appearance. The attractiveness of a large project
can generate a fervor that tends to discourage negative comment.
While changing market conditions may prove the conclusions of the
previous market studies inaccurate, we have reservations with
regard to the use of tax increment financing to assist a retail
oroJect that is currently outside of the City commercial local
~reas and designated redevelopment districts.
The basis for these reservations are as follows~
The proposed project site is not located within any of the
City redevelopment or economic development districts· This
has not been earmarked as a priority for redevelopment.
The City Market Studies reflect a weak retail market. The
introduction of a new facility of this type may not be
successful or may be detrimental to existing retail centers.
The applicant has not provided any evidence to contradict
the City's studies. Under these circumstances, the use of
public assistance to support the project may not be
appropriate.
The City has aggressively planned and redeveloped.the City
Center/42nd Avenue area o~ New ~ope. The Clty must
carefully evaluate any pro]ect that may be contrary or
detrimengal to these planning efforts.
CONCLUSIO~
There remains several issues pertaining to this project including
the traffic, project size and market support. The applicant has
requested subdivision, rezoning and PUD approval. In addition,
the applicant is .seeking .TIF support to redevelop the site.
Through these varzous appllcations and requests, the applicant is
not only requesting the City to approve the project but also to
invest an the project. Under these circumstances, it is vital
that the City evaluate t~e project from both a site and City-wide
basis. Also as being anvolved in the redevelopment financing,
the City must assure itself that they will get the highest
quality design possible. In this regard, we make the following
suggestions:
The Traffic Engineer suggests that the shopping center by
atself, without the outlot development, will create traffic
problems for 36~h Avenue. These traffic concerns, along
with site revaew concerns, suggest that the site may be
over-developed. In this regard, the City may wish the
project be scaled down to allow the development to
demonstrate that it will not overburden the adjacent
streets. The Traffic Engineer suggests that the outlot
development be discouraged at this time. upon review of the
Engineer's comments, we would share his concern and would
recommend that the subdivision of the property creating the
outlot be denied at this time. While the outlot would
require final platting prior to development, the outlot
could be sold and the City may be dealing with a different
developer in the future. In the event that~traffic problems
would prevent the future development of the outlot, it would
be better to have this land area under the shopping center
ownership and incorporated into the shopping center design.
Based on our review, it is recommended that the proposed
subdivision not be approved at this time, but the PUD be
approved to al%ow for the future lot split if warranted By
existing traffic conditions. In the meantime, at Ks
reconl~ended that the site remain as one lot and the shopping
center design incorporate the land area, to provide a
greater amount of green space, a more uniform parking
arrangement and a less congested internal traffic pattern.
In evaluating the need for TIF assistance, the City must
consider if this project conforms with City planning
objectives, and whether public assistance will provide an
unfair competitive advantage over similar facilities in the
City. The City should request the applicant to provide a
market analysis that may refute the conclusions of the
City's Market Studies.
Bonestroo
Rosene
Ander!ik &
Associates
Engineers 8, Architects
Otto G. Bonestroo. RE.
Robert 'dF Rosene, RE.
Joseph C ^nderlik. RE.
Bradford ^. Lemberg, RE.
Richard E. Turner, RE.
James C. O[son, RE.
Glenn R. Cook, RE.
Thomas E. No,ves. RE.
Robert G. 5chunicht, RE.
Marvin L. SorvaIa, RE.
Keith A. Gordon, RE.
Richard ~ Foster, RE.
Donald C. Burgardt RE.
Jerry A. Bourdon. RE.
Mark ^. Hanson, RE.
Ted K. Field, RE.
Michael T Rautmann. RE.
Robert R. Pfefferle, RE.
David O. Loskota, RE.
Thomas V,/. Peterson. RE.
Michael C. Lynch. RE.
James R. Maland. RE.
Kenneth P Anderson,
Keith A. Bachmann. RE.
Mark R. Rolls. RE.
Robert C. Russek. AI.A.
Thomas E. Angus, RE.
Howard A. Sanford, RE.
Daniel J. Edgerton, RE.
Mark A. Seip, RE.
Philip J. Caswell, PE.
Mark D. ~v'allis, RE.
Thomas R. Anderson, AJ.A.
Gary E Rylander, RE.
Charles A. Erickson
Leo M. pawelsky
Harlan M. Olson
Susan M. Ebeflin. CRA.
June 15, 1989
City of New Hope
4401 Xylon Avenue North
Minneapolis, MN 55428
Attn: Jeannine Dunn
Re: New Shopping Center
Our File 34-Gen.
Dear Jeannine:
We have reviewed the above plat based on our previous letter dated May 18,
1989.
1) Drainage on the site is all directed to the ponding area in the north west
corner of the site as previously recommended. The ponding area shall have
maximum 3:1 side slopes not 2:1 or 1 1/2:1 as sho%rn on the plan. In addition
the pond shall be 10' wide at the 884 contour and be excavated to elevation
882. The existing storm sewer outlet for the ponding area shall be extended
to conform with the 3:1 side slope. The side slopes for the pond shall not be
constructed in the 41' half street right-of-way for 36th Avenue nor in the
existing street right-of-way for Winnetka Ave. Catch basins inlets shall be
constructed over the storm sewer located in the middle driveway onto 36th
Avenue. A 45' wide drainage and utility easement shall be dedicated over the
ponding area as shown on the attached sketch. In addition the site plan shall
be reviewed and conform to the requirements of the Basset Greek Watershed.
Page 1
2335 West Highway 36 · St. Paul, Minnesota SSl13 · 612-636-4600
City of New Hope
New Shopping Center
2) The right-of-way dedication along 36th Avenue shall be 8' providing a total
41' half street right-of-way. The right-of-way dedication on Winnetka Ave.
shall be in accordance with Hennepin Co. The traffic study recently done by
the traffic engineers for the developers does not indicate a need at this time
to upgrade 36th Ave. with left turn lanes and medians. However in the near
future it's recommended the City of New Hope and Crystal initiate a project
upgrading a short distance of 36th Ave. each side of Winnetka Ave. with left
turn lanes and medians. This site shall be financially responsible for it's
share in upgrading 36th Ave. in the future.
3) A 5' wide concrete sidewalk shall be constructed along both Winnetka Ave.
and 36th Ave. and shall be located 1' in from the right-of-way line.
4) The location and number of driveway accesses from the site have been
reviewed in detail by the developer's traffic engineer and ours. The 3 lane
width for the ~middle driveway onto 36th Ave. is required to provide proper
access from the site to 36th Ave. The trip generations and additional traffic
concerns will be commented on by separate letter.
If you have any questions please contact this office.
Yours very truly,
BONEST~O0, ~{OSENE, ANDERLIK & ASSOCIATES,
Mark ~. 'Hanson
MAH:df
INC.
Page 2
I!
OUTLOT A
.SO.FT. {0.85 Ac:.)
THE RUNYAN/VOGEL GROUP
The Runyan/Vo~gel G~oup, Inc.
Archilects/Planners
1300 Godward
Minneapolis, Minnesota 55413
Tel: 612-379-4100 Fax: 612-379-4847
May 26, 1989
Neighborhood Convenience Center
Winnetka & 36th Avenue North, New Hope
Proj. No. 89-27
COMPREHENSIVE SIGN PLAN INFORMATION
I
Sign locations for building wall mounted signs and pylon
signs shall be as shown on the site plan and elevation
drawings and as hereafter described.
II Sign Area
A. The aggregate total sign area shall be approximately
1,309 or approximately 8% of the total building street
frontage area.
III Sign Design
A. The pylon sign shall be approximately 200 s.f. area with
dimensions of approximately 16'-0" long x 12'-6" high.
The bottom of the pylon will be 10'-0" above grade and
will be supported on two concrete block piers to match
the concrete block on the building. The face of the sign
panel shall be a synthetic plaster finish material
identical to the facade at the anchor tenant areas. The
top and bottom of the signage panel shall have a red neon
detail similar to the neon on the building.
Pylon signs shall be located as shown on the site plan
and shall not be closer than 20'-0" from the property
line. The'attached detail SP-1 shows the proposed
elevation of the pylon sign. ~
B. Ail tenant wall signage shall meet the following
criteria:
1. No tenant wall sign shall exceed 100 ~.f% in area.
Such area is defined as the smallest geometric figure
which can be made to circumscribe the message, logo or
symbol attached directly to the building.
Neighborhood Convenience Center - Sign Plan Information
May 26, 1989
Page Two
2. Tenant wall signage shall consist of the store
identification only. Copy is restricted to the
tenants proper name and/or major product or service
offered. Corporate logos, emblems, shields and
similar identifying devices are permitted, provided
they are Confined within the signage area and approved
by the landlord.
3. Sign lettering shall be individually illumined channel
letters. Painted or cabinet signs shall be
prohibited. Illumination shall be by neon tubes.
4. Lettering face shall be 1/8" thick "plexiglas"
material. Color shall be as selected by tenant and
approved by landlord.
5. The returns and backs shall be min. .032 aluminum shop
painted to match the signage panel. The attached
Detail SP-2 shows the proposed sign letter
construction.
Additionally, tenant wall signage criteria is
regulated based upon the type of tenant. Two types of
tenants are: 1) anchor tenants whose gross floor area
exceeds 5,000 s.f.; 2) minor tenants whose gross floor
area is less than 5,000 s.f.
The following is the additional criteria for anchor
tenants:
1. Sign lettering height cannot exceed 4'-0" high for any
single letter.
2. Sign lettering shall not exceed 1'-0" from face of
lettering to face of building wall.
3. Lettering shall be confined to areas as shown on the
drawings.
4. Tenants with two street frontages shall be permitted
to have one sign not exceeding 100 s.f. per frontage.
The following is additional criteria for minor t~hants:
1. Single letters shall not exceed 36" in height. If
stacked, words no higher than 36" total. No single
letter shall exceed 16" if words are stacked. A
single row name of equal height may be 30" high.
2. Sign lettering shall be exactly 6" thick from face of
letter to sign board wall.
3. Signs shall be centered on the horizontal center line
of the sign band area.
Neighborhood Convenience Center - Sign Plan Information
May 26, 1989
Page Three
4. Overall signage length shall not exceed 80% of the
tenant storefront width.
C. Window Signs
Window signs shall conform to the City of New Hope Sign
Code.
Interior window signs shall not exceed the lesser of 20%
of the entire window area side of the building upon which
said signs shall be displayed or one hundred twenty five
square feet.
Permanent interior window illuminated signs shall be
prohibited.
D. Plaque Signs
In addition to the wall sign we propose the use of tenant
plaque signs. Such signs shall only be visible to
pedestrian traffic below the canopies. We propose this
because it is difficult to clearly identify the
individual tenant entry. If accepted, the area of the
plaque sign will be reduced from the maximum allowable
wall sign.
The following is the proposed criteria for the plaque signs:
1. Plaques shall be 1'-0" high x 2'-0" long painted
aluminum.
2. Plaque lettering style and background shall be a
uniform color. A white background with black letter
is proposed. Lettering shall not exceed 9" high for a
single letter or 4" high if stacked.
3. Plaques shall be suspended from brackets mounted in
the wall directly above the centerline of the
tenant/entry door.
If approved, the area of four square feet shall be deducted
from the maximum allowable area.
The attached Detail SP-3 indicates the proposed plaque
signs.
End of Plan
' THE RUNYAN/VOGEL GROUP ~
XRCHITECTS -PLANNERS '1]00 GODWARD STREET'SUITE $]00 .MINNEAPOLIS'MINNESOTA' SS4,]
~Jjj~J~ IBI,, ]7~4100 'FAX (61~, 37~4847
'RO~ECT: N~ H~ ~ COMM. NO: ~'~g SHEET NO:~'j
HEET TITLE: J:~)~J
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DATE:
DR AWN BY':
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THE RUNYAN/VOGEL GROUP
' ARCHITECTS 'PLANNERS · 1300 GODWARD STREET · SUITE 6200 · MINNEAPOLIS · MINNESOTA · 55413
(612) 379'4100 ·FAX (612) 379'4847
,ROJECT:.~/ ~ /~t/.,~ COMM. NO: ~'¢'7 SHEET NO:
H£ET TITLE: ~-.~:~N~T ~-'~'~ ~.;'~-~'AIL,x DATE: ~/~(~[~ DRAWN
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j THE RUNYAN/VOGEL GROUP
' ARCHITECTS · PLANNERS · 1300 GODWARD STREET · SUITE 6200 · MINNEAPOLIS · MINNESOTA · 55413
16121 379-4100 'FAX (6121 379'4847
SHI~'ET TITLE: T~NANF ~t6N {~,'[~J~,, DATE: ~-~/~/~ DRAWN BV:_~
June 14, 1989
MARC
0 R Properties
lHC.
Ms. Jeannine Dunn, Ccm~unity Development Coordinator
City of New Hope
4401 Xylon Avenue North
New Hope, MN 55428
Re:
Neighborhood Center
36th & Winnetka
Planning Case: 89-11
Dear Jeannine:
On behalf of the petitioner, Ail American Self Storage, we are re-sukmitting
plans for the above-referenced project. The plans have been modified in
response to the Planning Co~mission's coments made at the June 6, 1989
meeting. Specifically, tb~modifications include:
The plans indicate that the northern 8 feet of the property along 36th
Avenue will he dedicated to the City to accommodate future road
improvements on 36th.
The retail center building has been decreased in size from 45,935 sq. ft.
to 42,933 sq. ft. Applying the City's 90~rule we now meet the city parking
requirements in that 232 spaces are required and 233 spaces are provided.
Ail of the 233 spaces are on the shopping center parcel.
e
The amount of greenspacehas been increased from 11.5%to 13.1%. While
there is no greenspace requirement for the B-4 zoning district, we have
reviewed other projects in the City and it is our conclusion that the
amount of greenspace we are providing is equal to or greater than several
similarly zoned and developed property.
The landscape plan has been modified to provide for screening the
apartment complex to the east. Our proposal calls for a combination of a
staggered fence, bushes and over-story trees. We believe this will
provide a very good "edge" for our property. However, we are still.
willing to consider alternatives if the Planning Co~mission would like to
see a different type of species. ~
A complete traffic impact analysis has been completed and is enclosed.
The study was compiled by the firm of Orr, Schelen, Mayeron & Associates
(OSM) under the direction of Mr. Robert Morast, P.E. OSMprovides
5775 Wayzatq Boulevard
Suite 820
St. Louis Park Minnesota 55416
612.545.2102
June 14, 1989
Jeannine Dunn
Page Two
engineering and traffic engineering services to private businesses and
acts as a consulting engineer to several municipalities. The report
enclosed is the final product from our meeting on June 13th which was also
attended by tb~ City Staff and its consulting traffic engineer.
From our discussion on the 13th and as seen in the report, the traffic
generated by our shopping center will have no adverse impact on either
36th Avenue or Winnetka Avenue. The one issue we all discussed w~s the
impact caused by the development of tb~ outlot. The traffic analysis
suggests that, depending on the type of development on the proposed outlot,
there could possibly be some congestion for a left turning movement on to
36th Avenue from our eastern main driveway on 36th Avenue. This possible
congestion would affect a ~11 number of vehicles for a 1-hour period
during the p.m. peak period. We have modified that eastern access to
acconlnodate a left turn lane to improve this situation.
In sun, nary, we believe we have addressed all of the issues raised at the June 6
Planning Conmission meetiD~. We believe the traffic study supports our
project, that all parking ordinances are satisfied and that our screening to
the east has been greatly improved.
Overall, the project will be of very high quality and is a good example of a
good redevelo~ent project. We believe that the project is compatible with
surrounding land uses and we are requesting approval of our rezoning and P.U.D.
requests. We hope that we have addressed all outstanding issues. If you would
like additional clarification, please call me at 545-2102. Thank you very much
for your patience and help in working through this process. It has been
appreciated.
incerely,
Winkels
ive Vice President
JFW:gk
Enc.
Dick Curry
Dick Kauffmann
Rick Martens
Robert Morast
Runyan/Vogel Group
Mike Scott
PROJECT NARRATIVE FOR THE NEW HOPE SHOPPING CENTER
LOCATION
3540 Winnetka Avenue, 220,095 square feet of land. The shopping center
proposed is located on the southeast quadrant of 36th Avenue and Winnetka
Avenue.
PROJECT
To erect a shopping center of approximately 46,000 square feet, and create
an outlot of 36,720 square feet. The shopping center construction would
begin late summer 1989. The outlot would be constructed at a future date
which currently is unknown. Developer estimates within three years. The
access to the shopping center and outlot would be shared with cross ease-
ments created.
Holy Nativity Church which currently occupies the site will relocate to
3900 Winnetka Avenue North.
SHAPE AND SIZE
The retail facility proposed is L shaped, approximately 46,000 square
feet on one level, with all tenants having direct outside access and ex-
posure. The plans submitted show the orientation of the storefronts to the
northwest directed at the intersection.
ANCHOR TENANTS
Two major anchors are proposed, one at each end. The exterior treatment
would be different than the typical small tenant storefront, although of
matching materials.
COVERED WALKWAY
A continuous covered walkway, partially glazed at the roof, will extend
from anchor to anchor to afford customers easy access to all tenants.
PARKING AND SERVICE
Parking for 221 cars (based on 6 cars per 1,000 net sq.ft.) is required.
Parking for 228 is provided with the majority at the front of the building
and 25 at the rear for employees. The entire rear area of the building is
accessible for service and truck loading and some employee parking.
LANDSCAPING
Landscaping is provided in groupings at several locations. Please refer to
plan for those areas. We have also shown additional screening by using alter-
nating plantings and wood fencing along the east side property line adjacent
to the apartments. The landscaping also shows existing plantfngs on the
adjacent properties to the east and south which will help enhance and screen
this property. The new plantings shown will equate to 2-3% of the con-
struction cost.
UTILITIES AND DRAINAGE
Utiiities are shown on the respective plan submitted. The storm water will
be directed directly to the pond area north of 36th Avenue. Please see
attached letter from Probe Engineering Co. The water retention pond will
be maintained by the owner or owners of the property in a direct relationship
of percent of land owned and overall % of land as applied to cost of such
maintenance.
page 2
NEW HOPE SHOPPING CENTER
EXTERIOR DESIGN
The materials used on the exterior will consist of the following
major elements:
e
Permanently colored light grey rock face and smooth
scored concrete block alternately used to soften and
break up the anchors and rear of building.
The covered walk way will be made of prefinished light
grey metal roofing material. The glazing inserts in the
sloping metal roof will be in red frames with gray tinted
glass, and the support columns will be of a gloss red
metal material.
0
e
Se
e
Tenant signage will be mounted on the light grey masonry
vertical face above the sloping covered walkway. The
tenants will be allowed their choice of color and style for
their signs. They will be limited to a signage area and
all signs must be individually illuminated with neon
through plexiglass faces.
The major anchors and the inside corner spaces will have
unique separate entry units with large triangular sloping
glass skylights above.
Ail storefronts will have ample glass area for maximum ex-
posure.
A continuous red neon band in a recessed reveal will extend
from anchor to anchor across to the top of the front para-
pet wall. The neon will glow red at night and the recess
will be finished in red for a similiar day time effect.
o
The underside of the walkway will be illuminated with con-
tinuous uplit flourescent strips which will also cast a
beautiful glow at night through the glass areas in the sloping
roof.
SITE ACCESS
We have proposed a total of five access points to the site,
two off Winnetka and three off 36th Avenue. The plan shows
two of the entries are to provide access to the service area
at the rear of the building only.
The other entry points access the main parking lot, two of which
link the main access drive and one provides a convenient shared
access to the proposed outlot.
page 3
NEW HOPE SHOPPING CENTER
OUTLOT
The extreme northwest corner is set aside as an outlot for a
future development. No determination is made as to its pro-
posed use. Possibilities include, but are not limited to, a
bank drive through facility, restaurant, stand alone retail,
etc.
Ail city requirements regarding setbacks, parking, landscape,
signage, etc. for this outlot would apply at the time of its
development.
Cross easements and shared expense and maintenance agreements
will be drafted. Access will be with common driveways with the
shopping center. No separate entrances will be used.
NOISE AND EMISSIONS
The addition of parking spaces provided will have a minimal
effect to the area regarding noise pollution and auto emissions.
We believe that since there is such a high concentration of
vehicular traffic on 36th and Winnetka, that traffic will be
very minimally increased due to the addition of this facility.
Secondly, unlike an office or manufacturing use, there is not
major traffic movement at one time relative to "rush hour".
Traffic at a retail facility comes and goes all day long with
a slight increase during the evening rush hour.
ADJACENT USES
The current use of immediately adjacent properties are:
South - Industrial
East - Multi-family
The other three corners of Winnetka Avenue north and 36th
Avenue North are:
Se
be
Southwest corner: Retail, Service station.
West and South of corner is multi-family.
Northwest corner: Retail, Service station.
West: Second retail use, then multi-family.
Northeast corner: Retail (Super America)
East - Multi family
North - Vacant, but sign says proposed retail.
The use of the southeast corner of Winnetka Avenue North and
36th Avenue as retail is consistent with the other three
corners,.and single family uses are for the most part two to
three blocks away.
There would appear to be no conflicts with the proposed use.
page 4
NEW HOPE SHOPPING CENTER
MANAGEMENT
The property will be managed by Jackson, Scott & Associates, who are
one of the Twin Cities larger commercial management companies. Currently
they manage in excess of 1,500,000 square feet of retail space.
Ail common area services will contracted by Jackson, Scott & Associates.
All common area charges will be billed to the tenants by Jackson, Scott
& Associates by a formula based on fairness. Trash collection is one
of the common area services and is based on need, usually three to four
times a week.
CONCLUSION
We believe that we have designed a facility which will appropriately
utilize this high profile intersection. To the best of our knowledge,
we have complied with all city requirements regarding setbacks, parking,
landscaping, signage, etc.
The building elements and choice of materials will present an eye-
catching, yet quietly elegant retail facility for the City of New Hope.
JACKSON-SCO'I-F <~ ASSOCIATES, INC.
3433 Broadway Street N.E., Suite 150
Minneapolis, Minnesota 55413
(612) 623-0153 FAX # (612) 623-4813
Shopping Center Management, Leasing and Development
June 6, 1989
Ms. Jeannine Dunn
Management Assistant
City of New Hope
4401 Xylon Avenue North
New Hope, MN 55428
RE:
Retail Market Study and Proposed Tenant Mix
Convenience Center - 36th & Winnetka, New Hope
Dear Ms. Dunn:
We have conducted an informal study of the surrounding retail
shopping centers in the trade area of approximately 1-1½ miles
from the proposed convenience center at 36th & Winnetka.
It is our findings that very few vacancies exist in the existing
centers at the present time. In fact, of the four centers
surveyed, two appear to have no vacancies at all, with one
vacancy existing in one center and two vacancies existing
in the fourth center. Those centers are larger centers generally
anchored by a supermarket and hardware store or K-Mart, and
thus have a larger trade area attraction.
It appears that there has not been much retail growth in the
City for several years. The surrounding trade area enjoys
an average household income of approximately $42,000, but
the per capita income of $3717 is below the statewide average
of $7300 and below that of surrounding suburban communities.
Thus, it would appear the demand for retail services is not
being met~within the City and residents are leaving the City
to make purchases.
A shopping center plan we propose of approximately 45,000
square feet of building area will be anchored by 2-3 larger
tenants. The proposed tenant mix will be designed to service
the surrounding community in a trade area of approximately 1-1½
miles. We hope for 20-25 stores to include categories similar
to those found on the attached list of possible tenants.~
International Council of
ShoppincJ Centers
Ms. Jeannine Dunn
June 6, 1989
Page two
In conclusion, it is our opinion that a market exists for
a convenience center within New Hope at this location, and
our early pre-leasing efforts seem to support this position.
If there is anything else I can do, please let me know.
Yours very truly,
MLS:al
Enc.
bc: Dick Curry
Rick Martens
6- 5- [~9
PROPOSED CENTER - 36th & Winnetka
S.Fo
11,140
1,200
1,200
1,200
1,200
1,200
1,200
900
900
9OO
900
9OO
9O0
9O0
90O
9OO
2,670
2,840
1,400
1,400
1,400
1,400
8,214
Possible Tenants
Drug Store
Financial Services
Hair Cutter
Dry Cleaners
Yogurt Shop
Florist
Card Shop
Dental Office
Bakery
Insurance Office
Oriental Take Out
Print Shop
Frame Shop
Travel Agency
Deli
Photo
Auto Parts
Video Store
Pet Shop
Party Good-.Store
Pizza
Home Decorating
Day Care /
Restaurant
City of New Hope
Memorandum
Date:
To:
From:
subject:
March 13, 1989
Planning Commission
M. Jeannine Dunn, Management Assistant/Community
Development Coordinator
Review of Tax Increment Financing and Redevelopment Plans
Please be advised that Minnesota Statutes 469.027 require that
redevelopment plans be reviewed by the Planning Commission for
consistency with the comprehensive plan and land use goals of the
city. This review takes place prior to public hearings held by the
City Council and Economic Development Authority.
On June 26, 1989, the New Hope Economic Development Authority and
the City Council will consider the following projects:
-Preliminary Redevelopment Plan for Redevelopment Project
89-1 and Tax Increment Financing Plan for Tax Increment
Financing Project 89-1 (3540 Winnetka Avenue North - Holy
Nativity Church)
-Preliminary Redevelopment Plan for Redevelopment Project
89-2 and Tax Increment Financing Plan for Tax Increment
Financing Project 89-2 (3900 Winnetka Avenue North -
Minnegasco Property, excluding the area proposed for
development by Holy Nativity Church which encompasses
approximately the westerly 4.0 acres.)
If the Planning Commission recommends approval of rezoning the
property at 3540 Winnetka Avenue from R-O to B-4 under the planning
case, staff would recommend that the Commission approve the tax
increment and redevelopment plans for consistency with land use
objectives.
The redevelopment plan for the Minnegasco property identifies the
intended use of the property as I-1. This is consistent with the
current zoning and the land use objectives of the city. Staff
recommends approval of Redevelopment Plan 89-2 and T.I.F. Plan
89-2.
It should be noted that the Planning Commission's approval only
indicates that the Commission feels that the projects are
consistent with the land use objectives of the City. It does not
provide any comment on the use of tax increment financing to
facilitate the developments.
PLANNING COHHISSION
CITY OF NEW HOPE, HINNESOTA
The New Hope Planning Commission met on June 20, 1989 to review the City's
Preliminary Redevelopment Plan for Redevelopment Project No. 89-1 and Tax
Increment Financing Plan for EDA Tax Increment Financing (Redevelopment)
District No. 89-1.
The following members were present:
The following members were absent:
The following motion was made by
seconded by
and
The Tax Increment Financing Plan is in compliance with local land use regula-
tions and with the City's overall plans for development.
Chairman of the Planning Commission
DRAFT
REDEVELOPHENT PLAN FOR
REDEVELOPNENT PROJECT NO. 89-1
TAX INCRENENT F]NANCiNG PLAN FOR
EDA TAX INCRENENT FiNANCiNG (REDEVELOPNENT) DiSTRiCT N0.89-1
CiTY OF NEW HOPE, MINNESOTA
JUNE 26, 1989
TABLE OF CONTENTS
SECTION I REDEVELOPMENT PLAN FOR REDEVELOPMENT PROJECT NO. 89-1
1.1
1.2
1.3
1.4
1.5
1.6
1.7
1.8
1.9
1.10
1.11
1.12
1.13
1.14
Definitions ............................................... 1-1
Statement of Authority .................................... 1-2
Statement of Public Purpose ............................... 1-2
Statement of Objectives ................................... 1-3
Project Area .............................................. 1-3
Project Activities ........................................ 1-5
Payment of Public Cost .................................... 1-5
Estimated Public Cost ..................................... 1-5
Agreements ................................................ 1-6
Relocation ................................................ 1-6
Proposed Reuse of Property ................................ 1-6
Land Acquisition .......................................... 1-6
Administration and Maintenance ............................ 1-7
Amendments ................................................ 1-7
SECTION II TAX INCREMENT FINANCING PLAN FOR
EDA TAX INCREMENT FINANCING (REDEVELOPMENT) DISTRICT NO. 89-1
2.1
2.2
2.3
2.4
2.5
2.6
2.7
2.8
2.9
2.10
2.11
2.12
2.13
2.14
2.15
2.16
2.17
Statement of Objectives ................................... 2-1
Statement of Authority .................................... 2-1
Statement of Findings and Public Purpose .................. 2-1
Tax Increment Financing District .......................... 2-2
Calculation of Tax Increment .............................. 2-2
Estimated Public Cost ..................................... 2-4
Duration of District ...................................... 2-4
Use of Tax Increment ...................................... 2-4
Planned Prior Improvements ................................ 2-5
Activities Governed by Contracts .......................... 2-5
Other Planned Development ................................. 2-5
Bonded Indebtedness ....................................... 2-5
Sources of Revenue ........................................ 2-6
Relationship to Future Tax Increment Districts ............ 2-6
Limitation on Use of Tax Increment .................... J... 2-6
Impact of Tax Increment Financing ......................... 2-6
Financial Feasibility Analysis ............................ 2-7
2.18 Administration of Tax Increment Plan ...................... 2-8
Proposed June 26, 1989 Page 1-i
SECTION I
REDEVELOPMENT PLAN FOR REDEVELOPMENT PROJECT NO. 89-1
1.1 Definitions.
Each of the words and terms defined in this Section shall for the
purposes of this Redevelopment Plan have the meanings given to them in this
Section:
.Bonds: Tax increment bonds or any other obligation issued by
the City or EDA, for which the principal and interest is payable
wholly or in part from the Tax Increment, to finance or provide for
the payment of the Public Cost of the Project.
Captured Tax Capacity: The amount by which the current tax capacity
value of the Tax Increment District exceeds the original tax
capacity value.
City: The City of New Hope, Hennepin County, a municipal corpora-
tion and political subdivision of the State of Minnesota.
Council: The City Council of New Hope, the governing body of the
City.
Be
Developer: A person undertaking development, redevelopment, or
housing activities pursuant to this Redevelopment Plan.
e
Development Aqreement: Any and all agreements between the EDA
and/or the City and the Developer with respect to the Project.
EDA: The Economic Development Authority in and for the City New
Hope.
Oriqinal Mill Rate: The mill rate certified by the County for the
property located within the tax increment district. After 1988 the
"Original Mill Rate" becomes the "Original Tax Extension Rate"
Oriqinal Tax Capacity: The tax capacity value of all taxable real
property within the Tax Increment District as most recently cer-
tified by the Commissioner of Revenue as of the date of certifica-
tion thereof by the County Auditor pursuant to Minnesota Statutes
469.177, or as thereafter adjusted and certified by the County
Auditor pursuant to Minnesota Statutes 469.177.
10.
11.
Project: Redevelopment Plan No. 89-1, the Project Area and all
activities to be undertaken with respect thereto.
Project Area: Redevelopment Project No. 89-1 in the City, otherwise
referred to as the project area, which is created and established
hereto pursuant to and in accordance with State Law, and is geo-
graphically described in Section I, Subsection 1.5 of the Redevelop-
ment Plan.
Proposed June 26, 1989 Page 1-1
12.
13.
14.
15.
16.
17.
18.
Public Cost: The total amount expended and to be expended by
the City and/or the EDA on activities as provided in this Redevelop-
ment Plan.
Redevelopment Plan: The statement of objectives and activi-
ties to be undertaken in the Project Area to facilitate redevelop-
ment, development, and housing activities in accordance with
Minnesota Statutes Chapter 469.
State: The State of Minnesota.
Tax Increment: That portion of ad valorem taxes levied on all
taxable property in the Tax Increment District which is allocable to
the Captured Tax Capacity of such property.
Tax Increment District: Any tax increment district presently
established or to be established in the future in the Project Area.
Tax Increment Financinq Act: The statutory provisions of Minnesota
Statutes Sections 469.174 to 469.179, inclusive as amended.
Tax Increment Financinq Plan: The respective Tax Increment Financing
Plan for each Tax Increment District located within the Project
Area.
1.2 Statement of Authority.
This Redevelopment Plan and Project are established by the Commissioners
of the New Hope Economic Development Authority and the New Hope City Council,
pursuant to the authority granted by Minnesota Statutes Section 469.001
through 469.047. In accordance with applicable statutes, the Council hereby
establishes Redevelopment Project No. 89-1, as described herein, for the
purposes of enhancing the development environment and encouraging the con-
tinued redevelopment of the City by promoting new and on-going development in
Redevelopment Project No. 89-1. These actions will provide employment and
housing opportunities, improve the tax base of the City and contribute
positively to the economy of the State.
Minnesota Statutes, Sections 469.174 through 469.179, inclusive, as
amended (the "Tax Increment Financing Act"), provided the procedure for the
establishment of tax increment districts for the use of tax increment financ-
ing for the funding of qualified public activities and improvements.
1.3 Statement and Findinq of Public Purpose.
The Council and the EDA find a need for public participation in develop-
ment, redevelopment and housing activities within the corporate limits of the
City to provide a healthful environment, to provide employment opportunities,
to provide affordable housing opportunities, to improve the tax base, and to
improve the general economy of the City and the State. The Council and the
EDA have determined that there are certain areas within the City that are
potentially more useful and valuable than has been realized under existing
Proposed June 26, 1989 Page 1-2
development, are less productive because ofthe lack of proper utilization and
lack of investment, and are not contributing to the tax base to its full
potential. It has further been determined that these public purpose goals
cannot be obtained in the foreseeable future without the intervention of the
City and the EDA in the normal development process.
1.4 Statement of Objectives.
The City and the EDA intend to satisfy the following objectives through
the establishment of this Redevelopment Plan and Tax Increment Financing Plan
and the implementation of the Project:
0
Be
To provide a catalyst for development in the community by the
private sector in a manner consistent with the goals and policies of
the City.
To promote the expansion of the tax base of the City, Hennepin
County and Independent School District No. 281.
To remove structurally substandard and functionally obsolete
buildings.
To selectively provide financial and technical assistance and advice
to individual property owners and developers in order that they may
develop their properties with maximum benefit to themselves and the
City.
To provide adequate storm sewer and drainage, off-street parking,
utilities, and other public improvements and facilities to enhance
the area for both new and existing development.
Promote and secure additional employment opportunities within the
Project Area and the City for residents of the City and the sur-
rounding area, thereby improving living standards and preventing
unemployment and the loss of skilled and unskilled labor and other
human resources.
Create areas that have a desireable and unique character by en-
couraging and providing maximum opportunity for private redevelop-
ment which is compatible with the objectives of the Redevelopment
Plan.
1.5 Project Area.
The Project Area includes all or a portion of an area located at the
southeast corner of the intersection of 36th Avenue North and Winnetka Avenue
North on which is presently located Holy Nativity Lutheran Church.
This area includes parcel number 20-118-21-22-0001.
The project area is illustrated in Figure 1-1.
Proposed June 26, 1989 Page 1-3
FIGURE I 1
PROJECT AREA - REDEVELOPMENT PLAN NO. 8g-1
3540 Winnetka Av.N.
Proposed June 26, 1989 Page 1-4
1.6 Pro~ect Activities.
The Project includes the following Activities by the City or the EDA,
directly or pursuant to a Development Agreement with the Developer:
(1) The making of studies, planning, and informal activities relating to
the Project.
(2) The implementation and administration of the Project.
(3) The acquisition of land and the preparation of sites for develop-
ment.
(4) The construction of streets, watermain, sanitary sewer, storm
sewer, sidewalks, parks, and other public improvements.
(5) The issuance of Bonds to finance the Public Cost of the Development
Program or to evidence the City's obligation to reimburse the
Developer for all or part of the Public Cost of the Project incurred
or to be incurred by it pursuant to a Development Agreement.
(6) The use of the Tax Increment derived from the Redevelopment Area
to pay debt service on such Bonds, or otherwise pay the Public
Cost of the Project.
(7) The financing or reimbursement of the Developer for the cost of
demolition of buildings and site preparation.
(8) The provision of credit enhancements including, financing or
otherwise paying premiums for insurance or other security guarante-
eing the payment when due of principal and interest on bonds issued
pursuant to Minnesota Statutes Chapters 462C, 474, or both or
accumulating or maintaining a reserve securing the payment when due
of the principal and interest on the bonds issued pursuant to
Chapters 462C, 474, or both.
1.7 Payment of Public Cost.
It is anticipated that the Public Cost of the Project will be paid from
Tax Increment to be derived from the Project Area and other available revenue
sources, either directly or indirectly by payment of project eligible expen-
ses, by reimbursement of the Developer for items of Public Cost paid directly
by the Developer, or by some combination of these methods. The City reserves
the right to utilize special assessments, general property taxes, utility
revenues, and other sources of revenue which the City may legally apply to pay
the Public Cost.
1.8 Estimated Public Cost.
[TO BE DETERMINED]
Proposed June 26, 1989 Page 1-5
1.9 Agreements.
Activities will be undertaken pursuant to one or more Development
Agreements. Under these Agreements, the Developer may be required, among
other things, to:
(1) Complete construction by a specified date.
(2) Agree to specified minimum number of square feet, a specified
minimum cost and a specified minimum Assessor's Market Value.
(3) Complete certain percentages of the work by specified dates
pursuant to plans and specifications submitted to and building
permits issued by or on behalf of the City, pursuant to and in
accordance with all other applicable governmental regulations.
(4) Provide payment to the City in cases when the amount of property
taxes paid does not generate the amount of estimated Tax Increment.
(5) Agree not to take any action to challenge or to otherwise cause the
Assessor's Market Value to be reduced at any time while the Bonds
remain outstanding.
(6) Demonstrate its financial capability for so doing.
1.10 Relocation.
The City accepts its responsibility for providing any relocation pursuant
to State Law. Provision will be made in accordance with Minnesota Statutes
117.50 to 117.56 for all persons who would be displaced and, if necessary, an
advisory board will be created in accordance with State Law.
1.11 Proposed Reuse of Property.
The activities needed to bring about development may include the acquisi-
tion of land, relocation of existing improvements, demolition of structures,
improvement of sites, and construction of public improvements. The specific
activities and the estimated public costs are summarized in the tax increment
financing plans.
If property is to be acquired by the City, the Redevelopment Plan does
not contemplate the transfer of property until such time as a Developer
presents an economically feasible program for the reuse of that property. In
considering the acquisition of property the City shall:
(1) Require such contracts, performance bonds, and other such agreements
and securities as deemed necessary to guarantee that sufficient tax
increments or other funds will be available to repay the public cost
associated with property acquisition.
(2) Determine that the proposal is economically feasible and meets
the objectives of the Redevelopment Plan.
(3) Apply appropriate restriction regarding the reuse and redevelopment
of property to contracts for land sale.
1.12 Land Acquisition.
As part of the Redevelopment Plan, the City may acquire parcel number 20-
118-21-22-0001.
Proposed June 26, 1989 Page 1-6
1.13 Administration and Haintenance.
The Project and the Redevelopment Plan shall be implemented on behalf of
the City by the City Council and the EDA. If necessary, the City and EDA
shall enter into a cooperation agreement for the purpose of specifying the
duties and responsibilities of each with respect to the implementation of the
Project and the Redevelopment Plan, and application of the Tax Increment to be
derived from the District.
1.14 Amendments.
The City and EDA reserve the right to alter the Project and amend or
modify this Redevelopment Plan and Tax Increment Financing Plan by their joint
action, subject to the provisions of applicable Minnesota Law regulating such
action. The City and the EDA specifically reserve the right to change the
size District and the Project Area, the Public Cost of the Project and the
amount of Bonds to be issued to finance the Public Cost of the Project by
following the procedures specified in Minnesota Statutes Section 469.175,
Subdivision 4.
Proposed June 26, 1989 Page 1-7
SECTION II
TAX INCREMENT FINANCING PLAN FOR
EDA TAX INCREMENT FINANCING (REDEVELOPMENT) DISTRICT NO. 89-1
2.1 Statement of Objectives.
See Section I, Subsection
Project No. 89-1.
1.4, Redevelopment
Plan for Redevelopment
2.2 Statement of Authority.
See Section I, Subsection
Project No. 89-1.
1.2, Redevelopment
Plan for Redevelopment
2.3 Statement of Findings and Public Purpose.
This Tax Increment Financing Plan is being created as the result of a
private developer's request of the City and EDA to assist in the development
of a retail shopping center. This development has been made possible, in
part, by the use of tax increment financing as presented in this Tax Increment
Financing Plan.
'In creating this Tax Increment Financing Plan, the City finds that:
The proposed development could not reasonably be expected to,occur
through private investment within the reasonably foreseeable future.
The City's involvement in the process of promoting new development
in the community and a careful review of the plans for the facility
has indicated that the use of tax increment financing as described
in this Plan is necessary to make the project occur in New Hope.
Through the negotiations with the Developer, it has been determined
that the use of tax increment financing either to pay debt service
on Bonds or to reimburse the Developer is needed for the proposed
development to occur. The Developer's finance plan is contingent
upon the public participation as described in this Tax Increment
Financing Plan.
The Tax Increment Financing Plan is in compliance with the general
plans for development of the City as a whole. The Tax Increment
Financing Plan was reviewed by the Planning Commission on June 20,
1989 and was found to be in compliance with local land use regula-
tions and with the City's overall plans for development.
The Tax Increment Financing Plan will afford the maximum oppor-
tunity, consistent with the sound needs of the City as a whole, for
the development of the Project by private enterprise.
Additional determinations of public purpose made by the City are contained in
Section I, Subsection 1.3, Redevelopment Plan for Redevelopment Project No.
89-1.
Proposed June 26, 1989 Page 2-1
2.4 Tax Increment Financing District.
To implement the tax increment financing plan, the City hereby creates
and establishes a tax increment financing district. The Tax Increment
District includes:
All or a portion of an area located at the southeast corner of the inter-
section of 36th Avenue North and Winnetka Avenue North which includes
parcel number 20-118-21-22-0001 and which also includes the current
location of Holy Nativity Lutheran Church.
Pursuant to Section 469.174, Subdivision 10, of the Tax Increment
Financing Act, the City finds that the Tax Increment District qualifies as a
"redevelopment district":
(2)
"70 percent of the parcels in the district are occupied by
buildings, streets, utilities or other improvements and 20
percent of the buildings are found to be structurally substan-
dard and an additional 30 percent of the buildings are found to
require substantial renovation or clearance in order to remove
such existing conditions as: inadequate street layout,
incompatible uses or land use relationships, overcrowding of
buildings on the land, excessive dwelling unit density,
obsolete buildings not suitable for improvement or conversion,
or other identified hazards to the health, safety and general
well being of the community; or"
The City therefore designates this Tax Increment District as "EDA Tax Incre-
ment Financing(Redevelopment) District No. 89-1." (see Figure 2-1).
2.5 Calculation of Tax Increment.
Before 1988, tax increment was determined using 'assessed values and mill
rates. Changes in the property tax system made by the State Legislature in
1988 now make it necessary to use gross tax capacity and tax capacity rates.
There are no assurances preventing further tax system changes in 1990 which
would impact tax increment due in 1991.
The method of computing tax increment shall be calculated based on M.S.
469.177, subdivision 3(b).
Since the buildings presently located on this site are tax-exempt, we
have asked the Hennepin County Assessor's office to establish a current
Estimated Market Value for the land and buildings. As of this draft, we have
not received the above requested information. We have made the assumption the
Estimated Market Value of the land and church is $1,200,000 which would result
in a Gross Tax Capacity of $61,050. We anticipate we will have a firm number
by the public hearing date. This amount is expected to be the initial
Oriqinal Gross Tax Capacity of such property as defined in Section 469.]74,
Subdivision 7 of the Tax Increment Financing Act. If the classification of
the property in the Tax Increment District under M.S. 273.13 changes to a
classification that has a different tax capacity ratio, the Original Tax Gross
Capacity shall be redetermined using the new tax capacity ratio.
Proposed June 26, 1989 Page 2-2
FIGURE 2-1
EDA TAX INCREMENT FINANCING (REDEVELOPMENT) DISTRICT NO. 89-1
3540 Winnetka Av.N.
Proposed Oune 26, 1989 Page 2-3
It is estimated that the building and improvements to be added, upon
completion, will have an Estimated Market Value of approximately $3,307,619.
Based on current statutory formulas for calculating Tax Capacity, this
development equals a gross tax capacity of $169,750 and will be the estimated
Gross Tax Capacity of all taxable property in the Tax Increment District upon
completion of the development thereof in accordance with this Tax Increment
Financing Plan. Fiscal disparities contributions will account for 40 percent
of the total captured tax capacity. Based on these assumptions, the Captured
Gross Tax Capacity would then be $65,220.
Based on the tax extension rate for taxes payable 1989 of 97.3430, the
annual Tax Increment is estimated to be $63,487. This tax extension rate is
anticipated to be certified as the Original Tax Extension Rate for the Tax
Increment District. It is assumed that the new taxable value will be added to
the Tax Increment District by January 1, 1991, and that the initial Tax
Increment will be received by July, 1992.
2.6 Estimated Public Cost.
See Section I, Subsection 1.8, Redevelopment Plan for Redevelopment
Project No. 89-1.
2.7 Duration of Tax Increment District.
The Tax Increment Financing Act allows "redevelopment districts" to
remain in existence for a period of 25 years from the collection of the
initial.tax increment. Based on this limitation, it is anticipated that the
Tax Increment District will remain in effect until no later than June, 2017.
If the obligations for the use of Tax Increments are discharged prior to this
date, then the City reserves the right to terminate the Tax Increment District
earlier.
2.8 Use of Tax Increment.
The City hereby determines that it will use 100% of the Captured Gross
Tax Capacity of taxable property located in the Tax Increment District, and
100% of the Tax Increments to be derived from the Tax Increment District, for
the entire duration of the Tax Increment District. The Tax Increments derived
from the Tax Increment District may be used for the following activities:
To finance or to reimburse the Developer for the cost of land
acquisition, building removal and clearance, site preparation,
infrastructure, and other allowable project expenses. ~
To pay principal and interest on the Bonds.
To finance or otherwise pay the capital and administrative costs of
the Plan.
To finance or otherwise pay premiums for insurance or other security
guaranteeing the payment when due of principal and interest on bonds
issued pursuant to Minnesota Statutes Chapter 462C, Section 469.152-
469.165, or both.
To accumulate or maintain a reserve securing the payment when due of
Proposed June 26, 1989 Page 2-4
the principal and interest on the bonds issued pursuant to Chapter
462C, M.S. Section 469.152-469.165, or both.
To finance project costs described in this Plan.
To finance other purposes as may be allowed by the Tax Increment
Financing Act.
These revenues shall not be used to circumvent levy limitations applica-
ble to the City nor for other purposes prohibited by Section 469.176, Subdivi-
sion 4 of the Tax Increment Financing Act.
2.9 Prior Planned Improvements.
The City shall, after due and diligent search, accompany its request for
certification to the County Auditor or its notice of district enlargement with
a listing of all properties within the Tax Increment District or area of
enlargement for which building permits have been issued during the eighteen
(18) months immediately preceding approval of the Tax Increment Financing Plan
by the City. The County Auditor shall increase the original Gross Tax
Capacity of the Tax Increment District by the gross tax capacity of each
improvement for which a building permit was issued.
2.10 Activities Covered by Contracts.
The following development activities that have occurred or are proposed
to take place within the project are covered by contracts with the City that
have been entered into at the time of the preparation of this Tax Increment
Financing Plan. As this Tax Increment Financing Plan is amended and as other
contracts are created, information will be inserted into this Subsection.
Parties to Activity Stated Completion
Contract Governed Cost Date
None
2.11 Other Planned Development.
Based on existing information, no development other than the activities
identified in the Redevelopment Plan is anticipated to occur within Redevelop-
ment Project No. 89-1 in the foreseeable future. The City has identified the
following development opportunities that may occur at a future date:
Type of Anticipated Anticipated
Development Location Date
None
2.12 Bonded Indebtedness.
The City does plan to incur bonded indebtedness as a direct result of the
Tax Increment Financing Plan. The City also reserves the right to use the Tax
Increment to pay debt service on other debt outstanding against the Redevelop-
ment Project Area.
Proposed June 26, 1989 Page 2-5
2.13 Sources of Revenue.
The City anticipates primarily using Tax Increments to pay for the
Estimated Public Costs of the Development Plan as they relate to the Tax
Increment District. The City reserves the right to use other sources of
revenue legally applicable to the Redevelopment Plan, including, but not
limited to, special assessments, contributions from the Developer and invest-
ment income, to pay for the Estimated Public Costs.
2.14 Relationship to Other Tax Increment Districts.
This Tax Increment (Redevelopment) District constitutes the first Tax
Increment District created by the City in the Redevelopment Project Area 89-1.
The City does not anticipate that other tax increment districts may be created
in Redevelopment Project No. 89-1.
2.15 Limitation on Use of Tax Increment.
Development on a parcel located within the Tax Increment District by the
City or by the owner of the parcel in accordance with this Plan shall occur
within four (4) years of the date of certification of the Original Gross Tax
Capacity. For the purposes of this section the term "development" includes
demolition, rehabilitation, or renovation of property, or other site prepara-
tion, including improvement of a street adjacent to the parcel. The term
"development" does not include the installation of utility service including
sewer and water systems. If development has not commenced within this period
no additional Tax Increment shall be taken from that parcel and the Original
Gross Tax Capacity of that parcel shall be excluded from the Original Gross
Tax Capacity of the Tax Increment District. If the City or the owner of the
parcel subsequently commences development, the City shall certify the gross
tax capacity thereof as most recently certified by the Commissioner of Revenue
and add it to the Original Gross Tax Capacity of the Tax Increment District.
2.16 Impact of Tax Increment Financing.
Figure 2-2 illustrates the estimated tax impact of the establishment and
the implementation of this Tax Increment Financing Plan. Based on the
projected captured gross tax capacity for payable 1992 taxes of $65,220, or
tax increment of $63,487, only a slight effect on other governmental jurisdic-
tions is indicated. The projections in Figure 2-2 do not take into account
the likely increase in gross tax capacity due to other development and
inflation. No property taxes will be lost to the governmental units due to
the establishment of the Tax Increment District and the use of Tax Increments
to be derived from the Tax Increment District, since without this*action and
the use of Tax Increment as proposed no development or redevelopment would
occur in the Tax Increment District.
Proposed June 26, 1989 Page 2-6
Projected
FIGURE 2-2
ESTIMATED IMPACT OF TAX INCREMENT FINANCING
ON RELATED TAXING JURISDICTIONS
Captured Tax Capacity: 65,220
Statement 1
Captured Gross Tax Capacity Available to Taxing
DISTRICT
Jurisdictions
Unit of
1988/89 Tax Estimated
Gross Extension New Gross Adjusted
Government Tax Capacity Rate Tax Capacity Tax Rate
City of New Hope $22,827,669 13.8680% $22,892,889 13.8285%
Hennepin County 1,365,722,149 27.1010% 1,365,787,369 27.0997%
I.S.D. No. 281 102,016,127 49.1890% 102,081,347 49.1576%
Vo-Tech No. 287 875,916,139 1.2230% 875,981,359 1.2229%
Storm Sewer Dist. I 7,934,990 0.1060% 8,000,210 0.1051%
Miscellaneous 2,158,188,786 5.7970% 2,158,254,006 5.7968%
TOTAL $4,547,498,539 97.3430% $4,547,955,079 7.2694%
Statement 2
Tax Increment Not Available
Unit of Government
Tax Impact Tax Rate
Current Rate of Tax
and Values Increment
City of New Hope
Hennepin County
I.S.D. No. 281
Vo-Tech No. 287
Storm Sewer Dist.
Storm Sewer Dist.
Miscellaneous
TOTAL
$9,045 0.0396%
17,675 0.0013%
32,081 0.0314%
798 0.0001%
69 0.0009%
38 0.0003%
3,781 0.0002%
$63,487 0.0738%
2.17
Financial Feasibility Analysis.
[TO BE DETERMINED]
Proposed June 26, 1989 Page 2-7
2.18 Administration of Tax Increment Plan.
Upon adoption of the Tax Increment Plan by the City Council, the City
Manager shall submit a copy of the Plan to the Minnesota Department of Trade
and Economic Development. The City Manager shall also request that the county
auditor certify the original gross tax capacity of the Tax Increment District
as described in the Tax Increment Plan. To assist the county auditor in this
process, the City shall submit copies of the Tax Increment Plan, the resolu-
tion creating the Tax Increment District and adopting the Tax Increment Plan,
and a listing of any prior planned improvements as required in the Tax
Increment Plan. The City shall also send the county assessor any agreement
establishing the minimum market value upon completion of the improvements.
The City shall request that the assessor review and certify the value in the
agreement.
The County shall pay the City the amount of Tax Increment as it becomes
available. The amount of Tax Increment in any year represents the amount of
property taxes generated by the difference in the Original Gross Tax Capacity,
as adjusted, and the total gross tax capacity of the Tax Increment District.
The total gross tax capacity can increase due to development anticipated by
the Tax Increment Plan, other development, inflation of property values, or
changes in property classification formulas.
In administering and implementing the Tax Increment Plan, the following
actions should occur on an annual basis:
Prior to October 1, the City should notify the county assessor of any new
development that has occurred in the Tax Increment District during the
year to insure that the new value will be captured by the Tax Increment
District in a timely manner.
(2)
If the county auditor receives the request for certification of the Tax
Increment District or for modification of an existing increment district
on or before October 10, the request shall be recognized in determining
tax capacity rates for the current and subsequent levy years. Requests
received after October 10 shall be used to determine mill rates in
subsequent years.
(3)
Each year the county auditor shall certify the amount of the Original
Gross Tax Capacity. The amount certified shall reflect any changes that
occur as a result of the following:
The value of property that changes
from tax exempt to taxable shall
be added to the Original Gross Tax
Capacity. The reverse ~hall also
apply.
The Original Gross Tax Capacity
may be modified by any approved
enlargement or reduction of the
Tax Increment District.
Proposed June 26, 1989 Page 2-8
If laws governing the classifica-
tion of real property change and
cause the percentage of market
value to be assessed for property
taxation changes, then the
resulting increase or decrease in
gross tax capacity shall be
applied proportionately to the
Original Gross Tax Capacity and
the Captured Gross Tax Capacity of
the Tax Increment District.
The County Auditor shall notify the City of all changes made to the Original
Gross Tax Capacity.
On or before July 1 of each year, the City shall submit to the County
Board, the School Board and the State Auditor a report on the status of the
Tax Increment District. The Act requires that the report contain the follow-
ing information:
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
Amount and source of revenue in the tax increment account.
Amount and purpose of expenditures from the account.
Amount of any pledge of revenues, including principal and
interest payable on outstanding bonds.
Current original gross tax capacity.
Current captured gross tax capacity.
Gross tax capacity available, but not captured by the City.
Tax increment received.
For the reporting period and for the duration of the Tax
Increment District, the amount budgeted in the Tax Increment
Plan and the amount actually expended for a minimum of the
following:
(a) acquisition of land and buildings;
(b) site preparation or improvements;
(c) public improvements;
(d) administrative costs.
(9) For properties sold to developers, the total cost of the
property to the City and the price paid by the developer.
(10) The amount of tax exempt obligations, not reported above, that
were issued on behalf of private entities for facilities
located in the Tax Increment District.
(11) Any other information needed to indicate compliance with the
Tax Increment Plan.
The City shall publish an annual statement that shows the information about
the Tax Increment District and Plan as it deems necessary, but the statement
shall include a minimum of the Original Gross Tax Capacity, Captured Gross Tax
Capacity, amount of bonds outstanding, and amount of tax increment received
and expended.
Proposed June 26, 1989 Page 2-9
PLANNING COMMISSION
CITY OF NEW HOPE, MINNESOTA
The New Hope Planning Commission met on June 20, 1989 to review the City's
Preliminary Redevelopment Plan for Redevelopment Project No. 89-2 and Tax
Increment Financing Plan for EDA Tax Increment Financing {Economic Develop-
ment) District No. 89-2.
The following members were present:
The following members were absent:
The following, motion was made by
seconded by
and
The Tax Increment Financing Plan is in compliance with local land use regula-
tions and with the City's overall plans for development.
Chairman of the Planning Commission
DRAFT
REDEVELOPMENT PLAN FOR
REDEVELOPMENT PROJECT NO. 89-2
TAX INCREMENT FINANCING PLAN FOR
EDA TAX INCREMENT FINANCING (ECONOMIC DEVELOPMENT) DISTRICT N0.89-2
CITY OF NEW HOPE, MINNESOTA
JUNE 26, 1989
TABLE OF CONTENTS
SECTION I REDEVELOPMENT PLAN FOR REDEVELOPMENT PROJECT NO. 89-2
1.1
1.2
1.3
1.4
1.5
1.6
1.7
1.8
1.9
1.10
1.11
1.12
1.13
1.14
Definitions ............................................... 1-1
Statement of Authority .................................... 1-2
Statement of Public Purpose ............................... 1-2
Statement of Objectives ................................... 1-3
Project Area .............................................. 1-3
Project Activities ........................................ 1-5
Payment of Public Cost .................................... 1-5
Estimated Public Cost ..................................... 1-5
Agreements ................................................ 1-6
Relocation ................................................ 1-6
Proposed Reuse of Property ................................ 1-6
Land Acquisition .......................................... 1-6
Administration and Maintenance ............................ 1-7
Amendments ................................................ 1-7
SECTION II TAX INCREMENT FINANCING PLAN FOR
EDA TAX INCREMENT FINANCING (ECONOMIC DEV.) DISTRICT NO. 89-2
2.1 Statement of Objectives ................................... 2-1
2.2 Statement of Authority .................................... 2-1
2.3 Statement of Findings and Public Purpose .................. 2-1
2.4 Tax Increment Financing District .......................... 2-2
2.5 Calculation of Tax Increment .............................. 2-2
2.6 Estimated Public Cost ..................................... 2-4
2.7 Duration of District ...................................... 2-4
2.8 Use of Tax Increment ...................................... 2-4
2.9
2.10
2.11
2.12
2.13
2.14
2.15
2.16
2.17
2.18
Planned Prior Improvements ................................ 2-5
Activities Governed by Contracts .......................... 2-5
Other Planned Development ................................. 2-5
Bonded Indebtedness ....................................... 2-5
Sources of Revenue ........................................ 2-5
Relationship to Future Tax Increment Districts ............ 2-6
Limitation on Use of Tax Increment .................... ~ ....2-6
Impact of Tax Increment Financing ......................... 2-6
Financial Feasibility Analysis ............................ 2-7
Administration of Tax Increment Plan ...................... 2-8
Proposed June 26, 1989 Page 1-i
SECTION I
REDEVELOPMENT PLAN FOR REDEVELOPMENT PROJECT NO. 89-2
1.1 Definitions.
Each of the words and terms defined in this Section shall for the
purposes of this Redevelopment Plan have the meanings given to them in this
Section:
Bonds: Tax increment bonds or any other obligation issued by
the City or EDA, for which the principal and interest is payable
wholly or in part from the Tax Increment, to finance or provide for
the payment of the Public Cost of the Project.
Captured Tax Capacity: The amount by which the current tax capacity
value of the Tax Increment District exceeds the original tax
capacity value.
City: The City of New Hope, Hennepin County, a municipal corpora-
tion and political subdivision of the State of Minnesota.
Council:
City.
The City Council of New Hope, the governing body of the
Developer: A person undertaking development, redevelopment, or
housing activities pursuant to this Redevelopment Plan.
Development Aqreement: Any and all agreements between the EDA
and/or the City and the Developer with respect to the Project.
e
EDA: The Economic Development Authority in and for the City New
Hope.
Oriqinal Mill Rate: The mill rate certified by the County for the
property located within the tax increment district. After 1988 the
"Original Mill Rate" becomes the "Original Tax Extension Rate".
Oriqinal Tax Capacity: The tax capacity value of all taxable real
property within the Tax Increment District as most recently cer-
tified by the Commissioner of Revenue as of the date of certifica-
tion thereof by the County Auditor pursuant to Minnesota Statutes
469.177, or as thereafter adjusted and certified by the County
Auditor pursuant to Minnesota Statutes 469.177.
10.
Project: Redevelopment Plan No. 89-2, the Project Area and all
activities to be undertaken with respect thereto. ~
11.
Project Area: Redevelopment Project No. 89-2 in the City, otherwise
referred to as the project area, which is created and established
hereto pursuant to and in accordance with State Law, and is geo-
graphically described in Section I, Subsection 1.5 of the Redevelop-
ment Plan.
Proposed June 26, 1989 Page 1-1
12.
13.
14.
15.
16.
17.
18.
Public Cost: The total amount expended and to be expended by
the City and/or the EDA on activities as provided in this Redevelop-
ment Plan.
Redevelopment Plan: The statement of objectives and activi-
ties to be undertaken in the Project Area to facilitate redevelop-
ment, development, and housing activities in accordance with
Minnesota Statutes Chapter 469.
State: The State of Minnesota.
Tax Increment: That portion of ad valorem taxes levied on all
taxable property in the Tax Increment District which is allocable to
the Captured Tax Capacity of such property.
Tax Increment District: Any tax increment district presently
established or to be established in the future in the Project Area.
Tax Increment Financinq Act: The statutory provisions of Minnesota
Statutes Sections 469.174 to 469.179, inclusive as amended.
Tax Increment Financinq Plan: The respective Tax Increment Financing
Plan for each Tax Increment District located within the Project
Area.
1.2 Statement of Authority.
This Redevelopment Plan and Project are established by the Commissioners
of the New Hope Economic Development Authority and the New Hope City Council,
pursuant to the authority granted by Minnesota Statutes Section 469.001
through 469.047. In accordance with applicable statutes, the Council hereby
establishes Redevelopment Project No. 89-2, as described herein, for the
purposes of enhancing the development environment and encouraging the con-
tinued redevelopment of the City by promoting new and on-going development in
Redevelopment Project No. 89-2. These actions will provide employment and
housing opportunities, improve the tax base of the City and contribute
positively to the economy of the State.
Minnesota Statutes, Sections 469.174 through 469.179, inclusive, as
amended (the "Tax Increment Financing Act"), provided the procedure for the
establishment of tax increment districts for the use of tax increment financ-
ing for the funding of qualified public activities and improvements.
1.3 Statement and Findinq of Public Purpose.
The Council and the EDA find a need for public participation in develop-
ment, redevelopment and housing activities within the corporate limits of the
City to provide a healthful environment, to proVide employment opportunities,
to provide affordable housing opportunities, to improve the tax base, and to
improve the general economy of the City and the State. The Council and the
EDA have determined that there are certain areas within the City that are
potentially more useful and valuable than has been realized under existing
development, are less productive because of the lack of proper utilization and
Proposed June 26, 1989 Page 1-2
lack of investment, and are not contributing to the tax base to its full
potential. It has further been determined that these public purpose goals
cannot be obtained in the foreseeable future without the intervention of the
City and the EDA in the normal development process.
1.4 Statement of Objectives.
The City and the EDA intend to satisfy the following objectives through
the establishment of this Redevelopment Plan and Tax Increment Financing Plan
and the implementation of the Project:
Be
e
To provide a catalyst for development in the community by the
private sector in a manner consistent with the goals and policies of
the City.
To promote the expansion of the tax base of the City, Hennepin
County and Independent School District No. 281.
To remove structurally substandard and functionally obsolete
buildings.
To selectively provide financial and technical assistance and advice
to individual property owners and developers in order that they may
develop their properties with maximum benefit to themselves and the
City.
To provide adequate storm sewer and drainage, off-street parking,
utilities, and other public improvements and facilities to enhance
the area for both new and existing development.
Promote and secure additional employment opportunities within the
Project Area and the City for residents of the City and the sur-
rounding area, thereby improving living standards and preventing
unemployment and the loss of skilled and unskilled labor and other
human resources.
Create areas that have a desireable and unique character by en-
couraging and providing maximum opportunity for private redevelop-
ment which is compatible with the objectives of the Redevelopment
Plan.
1.5 Project Area.
The Project Area includes a 2.3 acre site located at 3900 Winnetka Avenue
North which was formerly used by Minnegasgo. -
This area includes parcel number 17-118-21-32-0002.
The project area is illustrated in Figure 1-1.
Proposed June 26, lg8g Page 1-3
FIGURE 1-1.
PROJECT AREA - REDEVELOPNENT PLAN NO. 89-2
N
Minnegasco Proper:
3900 Winnetka Av.N.
(]except that area
to be occupied by
church-approxi-
mately 4.0 acres)
Proposed June 26, 1989 Page 1-4
~.~ Pro~ect Activities.
The Project includes the following Activities by the City or the EDA,
directly or pursuant to a Development Agreement with the Developer:
(1) The making of studies, planning, and informal activities relating to
the Project.
(2) The implementation and administration of the Project.
(3) The acquisition of land and the preparation of sites for develop-
ment.
(4) The construction of streets, watermain, sanitary sewer, storm
sewer, sidewalks, parks, and other public improvements.
(5) The issuance of Bonds to finance the Public Cost of the Development
Program or to evidence the City's obligation to reimburse the
Developer for all or part of the Public Cost of the Project incurred
or to be incurred by it pursuant to a Development Agreement.
(6) The use of the Tax Increment derived from the Redevelopment Area
to pay debt service on such Bonds, or otherwise pay the Public
Cost of the Project.
(7) The financing or reimbursement of the Developer for the cost of
demolition of buildings and site preparation.
(8) The provision of credit enhancements including, financing or
otherwise paying premiums for insurance or other security guarante-
eing the payment when due of principal and interest on bonds issued
pursuant to Minnesota Statutes Chapters 462C, 474, or both or
accumulating or maintaining a reserve securing the payment when due
of the principal and interest on the bonds issued pursuant to
Chapters 462C, 474, or both.
1.7 Payment of Public Cost.
It is anticipated that the Public Cost of the Project will be paid from
Tax Increment to be derived from the Project Area and other available revenue
sources, either directly or indirectly by payment of project eligible expen-
ses, by reimbursement of the Developer for items of Public Cost paid directly
by the Developer, or by some combination of these methods. The City reserves
the right to utilize special assessments, general property taxes, utility
revenues, and other sources of revenue which the City may legally apply to pay
the Public Cost.
1.8 Estimated Public Cost.
[TO BE DETERMINED]
Proposed June 26, 1989 Page 1-5
1.9 Agreements.
Activities will be undertaken pursuant to one or more Development
Agreements. Under these Agreements, the Developer may be required,
other things, to:
among
(1) Complete construction by a specified date.
(2) Agree to specified minimum number of square feet, a specified
minimum cost and a specified minimum Assessor's Market Value.
(3) Complete certain percentages of the work by specified dates
pursuant to plans and specifications submitted to and building
permits issued by or on behalf of the City, pursuant to and in
accordance with all other applicable governmental regulations.
(4) Provide payment to the City in cases when the amount of property
taxes paid does not generate the amount of estimated Tax Increment.
(5) Agree not to take any action to challenge or to otherwise cause the
Assessor's Market Value to be reduced at any time while the Bonds
remain outstanding.
(6) Demonstrate its financial capability for so doing.
1.10 Relocation.
The City accepts its responsibility for providing any relocation pursuant
to State Law. Provision will be made in accordance with Minnesota Statutes
117.50 to 117.56 for all persons who would be displaced and, if necessary, an
advisory board will be created in accordance with State Law.
1.11 Proposed Reuse of PropertY.
The activities needed to bring about development may include the acquisi-
tion of land, relocation of existing improvements, demolition of structures,
improvement of sites, and construction of public improvements. The specific
activities and the estimated public costs are summarized in the tax increment
financing plans.
If property is to be acquired by the City, the Redevelopment Plan does
not contemplate the transfer of property until such time as a Developer
presents an economically feasible program for the reuse of that property. In
considering the acquisition of property the City shall:
(1) Require such contracts, performance bonds, and other such agreements
and securities as deemed necessary to guarantee that sufficient tax
increments or other funds will be available to repay the public cost
associated with property acquisition.
(2) Determine that the proposal is economically feasible and meets
the objectives of the Redevelopment Plan. -~
(3) Apply appropriate restriction regarding the reuse and redevelopment
of property to contracts for land sale.
1.12 Land Acquisition.
As part of the Redevelopment Plan, the City may acquire parcel number 17-
118-21-32-0002.
Proposed June 26, 1989 Page 1-6
1.13 Administration and Naintenance.
The Project and the Redevelopment Plan shall be implemented on behalf of
the City by the City Council and the EDA. If necessary, the City and EDA
shall enter into a cooperation agreement for the purpose of specifying the
duties and responsibilities of each with respect to the implementation of the
Project and the Redevelopment Plan, and application of the Tax Increment to be
derived from the District.
1.14 Amendments.
The City and EDA reserve the right to alter the Project and amend or
modify this Redevelopment Plan and Tax Increment Financing Plan by their joint
action, subject to the provisions of applicable Minnesota Law regulating such
action. The City and the EDA specifically reserve the right to change the
size District and the Project Area, the Public Cost of the Project and the
amount of Bonds to be issued to finance the Public Cost of the Project by
following the procedures specified in Minnesota Statutes Section 469.175,
Subdivision 4.
Proposed June 26, 1989 Page 1-7
SECTION II
TAX INCREMENT FINANCING PLAN FOR
EDA TAX INCREMENT FINANCING (ECONOMIC DEVELOPMENT) DISTRICT NO. 89-2
2.1 Statement of Objectives.
See Section I, Subsection
Project No. 89-2.
1.4, Redevelopment
Plan for Redevelopment
2.2 Statement of Authority.
See Section I, Subsection
Project No. 89-2.
1.2, Redevelopment
Plan for Redevelopment
2.3 Statement of Findings and Public Purpose.
This Tax Increment Financing Plan is being created as the result of a
private developer's request of the City and EDA to assist in the development
of an industrial park. This development has been made possible, in part, by
the use of tax increment financing as presented in this Tax Increment Financ-
ing Plan.
In creating this Tax Increment Financing Plan, the City finds that:
The proposed development could not reasonably be expected to occur
through private investment within the reasonably foreseeable future.
The City's involvement in the process of promoting new development
in the community and a careful review of the plans for the facility
has indicated that the use of tax increment financing-as described
in this Plan is necessary to make the project occur in New Hope.
Through the negotiations with the Developer, it has been determined
that the use of tax increment financing either to pay debt service
on Bonds or to reimburse the Developer is needed for the proposed
development to occur. The Developer's finance plan is contingent
upon the public participation as described in this Tax Increment
Financing Plan.
e
The Tax Increment Financing Plan is in compliance with the general
plans for development of the City as a whole. The Tax Increment
Financing Plan was reviewed by the Planning Commission on June 20,
1989 and was found to be in compliance with local land use regula-
tions and with the City's overall plans for development.
The Tax Increment Financing Plan will afford the maximum oppor-
tunity, consistent with the sound needs of the City as a whole, for
the development of the Project by private enterprise.
Additional determinations of public purpose made by the City are contained in
Section I, Subsection 1.3, Redevelopment Plan for Redevelopment Project No.
89-2.
Proposed June 26, 1989 Page 2-1
2.4 Tax Increment Financing District.
To implement the tax increment financing plan, the City hereby creates
and establishes a tax increment financing district. The Tax Increment
District includes:
All or a portion of a acre site located at 3900 Winnetka Avenue North
which includes parcel number 17-118-21-32-0002 and which also includes
the former location of a Minnegasco propane gas tank farm.
Pursuant to Section 469.174, Subdivision 10, of the Tax Increment
Financing Act, the City finds that the Tax Increment District qualifies as a
"economic development district":
"(b) it will result in increased employment within the munici-
pality; or
(c) it will result in the preservation and enhancement of the tax
base of the municipality."
The City therefore designates this Tax Increment District as "EDA Tax Incre-
ment Financing (Economic Development) District No. 89-2." (see Figure 2-1).
2.5 Calculation of Tax Increment.
Before 1988, tax increment was determined using assessed values and mill
rates. Changes in the property tax system made by the State Legislature in
1988 now make it necessary to use gross tax capacity and tax capacity rates.
There are no assurances preventing further tax system changes in 1990 which
would impact tax increment due in 1991.
The method of computing tax increment shall be calculated based on M.S.
469.177, subdivision 3(b).
The Gross Tax Capacity of the parcels contained in the Tax Increment
District as most recently certified by Commissioner of Revenue of the State of
Minnesota., being the certification made in 1988 with respect to the Gross Tax
Capacity Of such property as of January 2, 1988, for taxes payable in 1989 is
estimated to be $21,040. This amount is expected to be the initial Original
Gross Tax Capacity of such property as defined in Section 469.174, Subdivision
7 of the Tax Increment Financing Act. If the classification of the property
in the Tax Increment District under M.S. 273.13 changes to a classification
that has a different tax capacity ratio, the Original Tax Gross Capacity shall
be redetermined using the new tax capacity ratio.
It is estimated that the building and improvements to be aUded, upon
completion, will have an Estimated Market Value of approximately $4,645,715.
Based on current statutory formulas for calculating Tax Capacity, this
development equals a gross tax capacity of $240,000 and will be the estimated
Gross Tax Capacity of all taxable property in the Tax Increment District upon
completion of the development thereof in accordance with this Tax Increment
Financing Plan. Fiscal disparities contributions will account for 40 percent
of the total captured tax capacity. Based on these assumptions, the Captured
Gross Tax Capacity would then be $131,376.
Proposed June 26, 1989 Page 2-2
FIGURE 2-1
EDA TAX INCREMENT FINANCING (ECONOMIC DEVELOPMENT) DISTRICT NO. 8g-2
Minnegasco Proper.
3900 Winnetka Av.N
(~xcept that area
to be occupied by
the church-approxi
mately 4.0 acres)
~roposed June 26, 1989
Page 2-3
Based on the tax extension rate for taxes payable 1989 of 97.3430, the
annual Tax Increment is estimated to be $127,885. This tax extension rate is
anticipated to be certified as the Original Tax Extension Rate for the Tax
Increment District. It is assumed that the new taxable value will be added to
the Tax Increment District in two phases, beginning in January 1, 1993, that
the initial Tax Increment will be received by July, 1994, and the full incre-
ment by 1995.
2.6 Estimated Public Cost.
See Section I, Subsection 1.8,
Project No. 89-2.
Redevelopment Plan for
Redevelopment
2.7 Duration of Tax Increment District.
The Tax Increment Financing Act allows "economic development districts"
to remain in existence for a period of 8 years from the collection of the
initial tax increment, or ten years from approval of the Tax Increment
Financing Plan, whichever is less. Based on this limitation, it is an-
ticipated that the Tax Increment District will remain in effect until no later
than June, 1999. If the obligations for the use of Tax Increments are
discharged prior to this date, then the City reserves the right to terminate
the Tax Increment District earlier.
2.8 Use of Tax Increment./
The City hereby determines that it will use 100% of the Captured Gross
Tax Capacity of taxable property located in the Tax Increment District, and
100% of the Tax Increments to be derived from the Tax Increment District, for
the entire duration of the Tax Increment District. The Tax Increments derived
from the Tax Increment District may be used for the following activities:
To finance or to reimburse the Developer for the cost of land
acquisition, building removal and clearance, site preparation,
infrastructure, and other allowable project expenses.
To pay principal and interest on the Bonds.
To finance or otherwise pay the capital and administrative costs of
the Plan.
To finance or otherwise pay premiums for insurance or other security
guaranteeing the payment when due of principal and interest on bonds
issued pursuant to Minnesota Statutes Chapter 462C, Section 469.152-
469.165, or both.
To accumulate or maintain a reserve securing the payment when due of
the principal and interest on the bonds issued pursuant to Chapter
462C, M.S. Section 469.152-469.165, or both. ~
To finance project costs described in this Plan.
To finance other purposes as may be allowed by the Tax Increment
Financing Act.
These revenues shall not be used to circumvent levy limitations applica-
ble to the City nor for other purposes prohibited by Section 469.176, Subdivi-
sion 4 of the Tax Increment Financing Act.
Proposed June 26, 1989 Page 2-4
2.9 Prior Planned Improvements.
The City shall, after due and diligent search, accompany its request for
certification to the County Auditor or its notice of district enlargement with
a listing of all properties within the Tax Increment District or area of
enlargement for which building permits have been issued during the eighteen
(18) months immediately preceding approval of the Tax Increment Financing Plan
by the City. The County Auditor shall increase the original Gross Tax
Capacity of the Tax Increment District by the gross tax capacity of each
improvement for which a building permit was issued.
2.10 Activities Covered by Contracts.
The following development activities that have occurred or are proposed
to take place within the project are covered by contracts with the City that
have been entered into at the time of the preparation of this Tax Increment
Financing Plan. As this Tax Increment Financing Plan is amended and as other
contracts are created, information will be inserted into this Subsection.
Parties to Activity Stated Completion
Contract Governed Cost Date
None
2.11 Other P1 anned Development.
Based on existing information, no development other than the activities
identified in the Redevelopment Plan is anticipated to occur within Redevelop-
ment Project No. 89-2 in the foreseeable future. The City has identified the
following development opportunities that may occur at a future date:
Type of Anticipated Anticipated
Development Location Date
None
2.12 Bonded Indebtedness.
The City does not plan to incur bonded indebtedness as a direct result of
the Tax Increment Financing Plan. The City also reserves the right to use the
Tax Increment to pay debt service on other debt outstanding against the
Redevelopment Project Area.
2.13 Sources of Revenue.
The City anticipates primarily using Tax Increments to pay for the
Estimated Public Costs of the Development Plan as they relate to the Tax
Increment District. The City reserves the right to use other sources of
revenue legally applicable to the Redevelopment Plan, including, but not
Proposed June 26, 1989 Page 2-5
limited to, special assessments, contributions from the Developer and invest-
ment income, to pay for the Estimated Public Costs.
2.14 Relationship to Other Tax Increment Districts.
This Tax Increment (Redevelopment) District constitutes the first Tax
Increment District created by the City in the Redevelopment Project Area 89-2.
The City does not anticipate that other tax increment districts may be created
in Redevelopment Project No. 89-2.
2.15 Limitation on Use of Tax Increment.
Development on a parcel located within the Tax Increment District by the
City or by the owner of the parcel in accordance with this Plan shall occur
within four (4) years of the date of certification of the Original Gross Tax
Capacity. For the purposes of this section the term "development" includes
demolition, rehabilitation, or renovation of property, or other site prepara-
tion, including improvement of a street adjacent to the parcel. The term
"development" does not include the installation of utility service including
sewer and water systems. If development has not commenced within this period
no additional Tax Increment shall be taken from that parcel and the Original
Gross Tax Capacity of that parcel shall be excluded from the Original Gross
Tax Capacity of the Tax Increment District. If the City or the owner of the
parcel subsequently commences development, the City shall certify the gross
tax capacity thereof as most recently certified by the Commissioner of Revenue
and add it to the Original Gross Tax Capacity of the Tax Increment District.
2.16 Impact of Tax Increment Financing.
Figure 2-2 illustrates the estimated tax impact of the establishment and
the implementation of this Tax Increment Financing Plan. Based on the
projected captured gross tax capacity for payable 1992 taxes of $131,376, or
tax increment of $127,885, only a slight effect on other governmental juris-
dictions is indicated. The projections in Figure 2-2 do not take into account
the likely increase in gross tax capacity due to other development and
inflation. No property taxes will be lost to the governmental units due to
the establishment of the Tax Increment District and the use of Tax Increments
to be derived from the Tax Increment District, since without this action and
the use of Tax Increment as proposed no development or redevelopment would
occur in the Tax Increment District.
Proposed June 26, 1989 Page 2-6
ESTIMATED
FIGURE 2-2
IMPACT OF TAX INCREMENT FINANCING DISTRICT
ON RELATED TAXING JURISDICTIONS
Projected Captured Tax Capacity: 131,376
Statement 1
Captured Gross Tax Capacity Available to Taxing
Jurisdictions
Unit of Government
1988/89 Tax Estimated
Gross Extension New Gross Adjusted
Tax Capacity Rate Tax Capacity Tax Rate
City of New Hope
Hennepin County
I.S.D. No. 281
Vo-Tech No. 287
Storm Sewer Dist.
Storm Sewer Dist.
Miscellaneous
TOTAL
$22,827,669 13.8680% $22,959,044 3.7886%
1,365,722,149 27.1010% 1,365,853,524 27.0984%
102,016,127 49.1890% 102,147,502 49.1257%
875,916,139 1.2230% 876,047,514 1.2228%
7,934,990 0.1060% 8,066,365 0.1043%
14,892,679 0.0590% 15,024,054 0.0585%
2,158,188,786 5.7970% 2,158,320,161 5.7966%
$4,547,498,539 97.3430% $4,548,418,164 97.1950%
Statement 2
Tax Increment Not Available
Unit of Government
Tax Impact Tax Rate
Current Rate of Tax
and Values Increment
City of New Hope
Hennepin County
I.S.D. No. 281
Vo-Tech No. 287
Storm Sewer Dist.
Storm Sewer Dist.
Miscellaneous
$18,219 0.0798%
35,604 0.0026%
64,622 0.0633%
1,607 0.0002%
139 0.0018%
78 0.0005%
7,616 0.0004%
TOTAL
$127,885 0.1486%
2.17 Financial Feasibility Analysis.
[TO BE DETERMINED]
Proposed June 26, 1989 Page 2-7
2.18 Administration of Tax [ncrement Plan.
Upon adoption of the Tax Increment Plan by the City Council, the City
Manager shall submit a copy of the Plan to the Minnesota Department of Trade
and Economic Development. The City Manager shall also request that the county
auditor certify the original gross tax capacity of the Tax Increment District
as described in the Tax Increment Plan. To assist the county auditor in this
process, the City shall submit copies of the Tax Increment Plan, the resolu-
tion creating the Tax Increment District and adopting the Tax Increment Plan,
and a listing of any prior planned improvements as required in the Tax
Increment Plan. The City shall also send the county assessor any agreement
establishing the minimum market value upon completion of the improvements.
The City shall request that the assessor review and certify the value in the
agreement.
The County shall pay the City the amount of Tax Increment as it becomes
available. The amount of Tax Increment in any year represents the amount of
property taxes generated by the difference in the Original Gross Tax Capacity,
as adjusted, and the total gross tax capacity of the Tax Increment District.
The total gross tax capacity can increase due to development anticipated by
the Tax Increment Plan, other development, inflation of property values, or
changes in property classification formulas.
In administering and implementing the Tax Increment Plan, the following
actions should occur on an annual basis:
(1)
Prior to October 1, the City should notify the county assessor of any new
development that has occurred in the Tax Increment District during the
year to insure that the new value will be captured by the Tax Increment
District in a timely manner.
(2)
If the county auditor receives the request for certification of the Tax
Increment District or for modification of an existing increment district
on or before October 10, the request shall be recognized in determining
tax capacity rates for the current and subsequent levy years. Requests
received after October 10 shall be used to determine mill rates in
subsequent years.
(3)
Each year the county auditor shall certify the amount of the Original
Gross Tax Capacity. The amount certified shall reflect any changes that
occur as a result of the following:
The value of property that changes
from tax exempt to taxable shall
be added to the Original Gross Tax
Capacity. The reverse 'shall also
apply.
The Original Gross Tax Capacity
may be modified by any approved
enlargement or reduction of the
Tax Increment District.
'Proposed June 26, 1989 Page 2-8
If laws governing the classifica-
tion of real property change and
cause the percentage of market
value to be assessed for property
taxation changes, then the
resulting increase or decrease in
gross tax capacity shall be
applied proportionately to the
Original Gross Tax Capacity and
the Captured Gross Tax Capacity of
the Tax Increment District.
The County Auditor shall notify the City of all changes made to the Original
Gross Tax Capacity.
On or before July i of each year, the City shall submit to the County
Board, the School Board and the State Auditor a report on the status of the
Tax Increment District. The Act requires that the report contain the follow-
ing information:
(1)
(3)
(4)
(5)
(6)
(7)
(8)
Amount and source of revenue in the tax increment account.
Amount and purpose of expenditures from the account.
Amount of any pledge of revenues, including principal and
interest payable on outstanding bonds.
Current original gross tax capacity.
Current captured gross tax capacity.
Gross tax capacity available, but not captured by the City.
Tax increment received.
For the reporting period and for the duration of the Tax
Increment District, the amount budgeted in the Tax Increment
Plan and the amount actually expended for a minimum of the
following:
(a) acquisition of land and buildings;
(b) site preparation or improvements;
(c) public improvements;
(9)
(lO)
(11)
(d) administrative costs.
For properties sold to developers, the total cost of the
property to the City and the price paid by the developer.
The amount of tax exempt obligations, not reported above, that
were issued on behalf of private entities for facilities
located in the Tax Increment District.
Any other information needed to indicate compliance with the
Tax Increment Plan.
The City shall publish an annual statement that shows the information about
the Tax Increment District and Plan as it deems necessary, but the statement
shall include a minimum of the Original Gross Tax Capacity, Captured Gross Tax
Capacity, amount of bonds outstanding, and amount of tax increment received
and expended.
Proposed June 26, 1989 Page 2-9