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Home My WebLink About2011-03-24 BEDC Packet AGENDA CITY OF MAPLEWOOD BUSINESS AND ECONOMIC DEVELOPMENT COMMISSION Thursdav. March 24. 2011 5:15 P.M. 'Note time and date' Council Chambers - Maplewood City Hall 1830 County Road BEast 1. Call to Order 2. Roll Call 3. Approval of Agenda 4. Approval of Minutes: a. January 3, 2011 5. New Business: a. Minnesota Secretary of State Mark Ritchie Presentation (No Report) b. Tax Increment Financing [TIF] District No. 1- 11 for an Economic Development Tax Increment Financing Project as part of Maplewood Mall Improvements c. Tanner's Lake Update d. 2010 Annual Report 6. Unfinished Business: 7. Visitor Presentations: 8. Commission Presentations: 9. Staff Presentations: a. Upcoming Projects (No Report) 10. Adjourn , Next scheduled meeting for April 28, 2011 at 5:15 p.m. ' MINUTES CITY OF MAPLEWOOD BUSINESS AND ECONOMIC DEVELOPMENT COMMISSION 7:00 p.m., Monday, January 3, 2011 Council Chambers, Maplewood City Hall 1830 County Road BEast 1. CALL TO ORDER A meeting of the Commission was held in the City Hall Council Chambers and was called to order at 7:01 p.m. by Chairperson Jenkins. 2. ROLL CALL Commissioners David Hesley, Commissioner Mark Jenkins, Chairperson Christine Novak, Commissioner Shelly Strauss, Commissioner Beth Ulrich, Commissioner Warren Wessel, Commissioner Present Staff Michael Martin, Planner Michael Thompson, Deputy Public Engineer 3. APPROVAL OF AGENDA Commissioner Strauss Seconded by Ayes - All The motion passed. 4. APPROVAL OF MINUTES Approval of Minutes for November 1, 2010. Commissioner Strauss moved to approve the BEDC minutes for November 1. 2010. Seconded by Commissioner Hesley. Ayes - Chairperson Jenkins, Commissioners Hesley, & Strauss Abstentions - Commissioner Wessel & Commissioner Novak The motion passed. January 3, 2011 Business and Economic Development Commission Meeting Minutes 1 5. NEW BUSINESS a. New Member Introductions 1. Planner, Michael Martin asked that the commissioners to each identify themselves and state what they hope to gain from serving on the commission. The current and new commission members introduced themselves to one another and the two new commissioners were welcomed to the BEDC. b. City-Owned County Road D Property 1. Planner, Michael Martin gave the report and answered questions of the commission. 2. Deputy Public Works Director, City Engineer, Michael Thompson addressed and answered questions of the commission regarding the City-Owned County Road D property. c. Highway 36 and English Street Redevelopment Area 1. Deputy Public Works Director, City Engineer, Michael Thompson gave the report and answered questions of the commission regarding the Highway 36 and English Street redevelopment area. d. Rescheduling of BEDC Meetings 1. Planner, Michael Martin gave a brief report regarding rescheduling the BEDC meeting dates and start time. Commissioner Hesley moved to approve chari~lml themeetin~ days for the BEDC to meet the 4!h Thursdav of the month at 5: 15 p.m. startinQ FebrUarv 24, 2011. Seconded by Commissioner Wessel. Ayes - All e. Election of Officers 1. Planner, Michael Martin gave a brief report regarding electing officers on the BEDC. Commissioner Hesley moved to nominate Mark Jenkins to continue as Chairperson on the BEDC. Seconded by Commissioner Strauss. Ayes - All Abstention - Chairperson Jenkins The motion passed. Commissioner Hesley moved to nominate Commissioner Strauss as Vice Chair on the BEDC. Seconded by Commissioner Ulrich. Ayes - All Abstention - Commissioner Strauss The motion passed. 6. UNFINISHED BUSINESS None. January 3, 2011 Business and Economic Development Commission Meeting Minutes 2 7. VISITOR PRESENTATIONS a. Bill Voight, 2520 Larpenteur Avenue East, Maplewood. 8. COMMISSION PRESENTATIONS Chairperson Jenkins recognized 3M's abrasive division for winning an award for advanced manufacturing. 9. STAFF PRESENTATIONS a. Upcoming Projects (No Report) Planner, Michael Martin reviewed upcoming meetings and projects in the city in the near future. 10. ADJOURNMENT Chairperson Jenkins adjourned the meeting at 8:15 p.m. January 3, 2011 Business and Economic Development Commission Meeting Minutes 3 MEMORANDUM TO: FROM: DATE: James Antonen, City Manager Michael Martin, AICP, Planner Charles Ahl, Assistant City Manager Tax Increment Financing [TIF] District No. 1- 11 for an Economic Development Tax Increment Financing Project as part of Maplewood Mall Improvements March 14, 2011 SUBJECT: INTRODUCTION On March 1,2011, Simon Properties, managers of Maplewood Mall, announced plans for a major renovation of the mall's interior and exterior entrances. The proposed improvements are a substantial investment into one of the city's major taxpayers and certainly are a good reflection on the health of the mall area. In addition, this is a solid reflection on the council's decisions over the past 6 years to invest in the Maplewood Mall Area Transportation Improvements (MMA TI). Attached is an application from Simon Properties to consider Tax Increment Financing (TIF) for additional site improvements that will be added onto the planned $13.5 million in investment that Simon Properties will be making at Maplewood Mall. BACKGROUND In past years, TIF legislation has not allowed the capture of increment for improvements at commercial properties; generally restricting TIF to industrial and housing economic development or blighted areas. In 2010, due to the economic conditions, the state legislature authorized TIF uses for commercial areas to help create jobs within the state. This legislation expires on June 30, 2011; although the state legislature is considering a bill to extend this deadline. The TIF application from Simon Properties proposes up to $1,000,000 of improvements to the site. It would help provide pedestrian and bicycle access to the mall area businesses (see attachment) as well as proposed improvement to the access roads, including possibly street lighting improvements at the entrances. The final details on the TIF-financed improvements will be developed in the TIF Plan that the city council will consider at the public hearing on April 25, 2011. It should be noted that the interior improvements will proceed with or without the proposed TIF District. These TIF improvements are in addition to the proposed interior improvements and will not occur without the TIF District funding; thus, the basis of the "but-for" test that the city council will consider on April 25, 2011. RECOMMENDATION The business and economic development commission should review the attached documents and come to the March 24, 2011 meeting prepared to discuss this proposal. Tom Denaway of Springsted, the city's financial consultant, will present some project details and specifics at the March 24, 2011 meeting. Attachments 1. Simon Properties TIF Application 2. Site Improvement Map 3. TIF Concepts and Mechanics 4. Minnesota Jobs Bill TIF Information Attachment 1 APPLICATION AND AGREEMENT FOR TAX-INCREMENT FINANCING Return to: Community Development Dept. City of Maplewood 1830 County Road BEast Maplewood, MN 55109 651-249-2300 Fax: 651-249-2319 OFFICE USE Date received: By: Rec.#: Date APPLICANT 1. Applicant/business name: Maplewood Mall Associates Limited Partnership Contact person: Steve Kingsley, Regional Vice President Address: 225 West Washinqton Street, Indianapolis, IN Zip 46204 Telephone: (Work) 317-263-7653 (Home) Fax: 317-685-7299 Interest in the property: Owner 2. Applicant's legal counsel: Richard Rody, Associate General Counsel Address: 225 West Washington Street, Indianapolis, IN Zip 46204 Telephone: (Work) 317-263-7038 (Home) Fax: 317-685-7299 3. Applicant's architect: RSP Architects Address: 1220 Marshall Street NE Minneapolis, MN Zip 55413-1036 Telephone: (Work) 612-677-7100 Fax: 612-677-7499 (Home) 4. Applicant's contractor (if selected): Pepper Construction Address: 1850 W 15th Street Indianapolis, IN Telephone: (Work) 317-681-1000 (Home) Fax: 317-684-9694 Zip 46202 5. Property owner( s) of record: Maplewood Mall Associates Limited Partnership, a Delaware Limited Partnership Address: 225 West Washington Street, Indianapolis, IN 46204 Telephone: (Work) 317-263-7653 Fax: 317-685-7299 (Home) 6. Applicant's business form (corporation, partnership, sole proprietorship, etc.) and state of incorporation or organization: Delaware limited partnership 7. If the applicant is a corporation, list the officers, directors and stockholders holding more than 5% of the stock of the corporation. (State name, address, telephone and relationship to the applicant. If a corporation is not formed, set forth as much data as possible concerning the potential officers, directors and stockholders): 8. If applicant is a general partnership, list general partners and if a limited partnership, list general partners and limited partners with more than 5% interest in the limited partnership: (If the partnership is not formed, set forth as much data as possible concerning the potential partners): SPG Maplewood, LLC, a Delaware limited liability company, qeneral partner Simon Property Group, LP, a Delaware limited partnership, limited partner 9. List any other cities that you have applied to for tax-increment financing within the last five years: NA 10. Has the applicant ever been in bankruptcy? If yes, describe circumstances: No 11. Have you ever defaulted on any bond or mortgage commitment? If yes, describe the circumstances: No PROJECT 1. Project name: Maplewood Mall 2. Legal description ofthe site: See Attached 2 3. Describe the project as proposed, i.e. how many housing units, type (rental or owner occupied), how much commercial square footage, etc.: Exterior and interior renovation of Maplewood Mall, including common areas of 164,276 square feet. 4. Will the applicant occupy the project after completion? If not, state name offuture lessees and status of commitments or lease agreements: This is a shopping center operated by Maplewood Mall Associates, LP, and is leased to individual retail tenants 5. Estimated proj ect costs: a. Land acquisition: $ $ 1,970,941 $ 7,730,709 $ 1,595,230 $ 390,000 $ b. Site development: c. Building cost: d. Equipmcnt: TENANT COSTS e. Architectural and engineering fees: f. Legal fees: g. Bond discount, fees to underwriter and brokerage fees: Total $ $ 358,678 $ $ $ $ 1,512,973 $ 13,539,973 h. Interest during construction: 1. Off-site development cost: J. Initial bond reserve fund: k. Contingencies: 1. Other (please specify): 1 3 1 Permits, testing & inspections - $99,952, general conditions - $402,473, contractor fees -$302,319, insurance - $74,104, leasing expenses - $171,554 and project administrative costs - $461,973. 6. Financing: a. Industrial revenue bonds: $ b. Tax-increment: $ 1,000,000 c. Equity: $ 12,479,973 d. Other, i.e. bank financing, tax credit (nlease specify): (Reba~es for energy efflClent llg}ftlng) $ 60,000 7. How will you use tax-increment funds? Repavinq and upqradinq of orol ect rinq road, entrance maqazines and testinq, inspection, and insurance Construction - $982,100, and allowance for permits, testinq, & inspections $10,300, and insurance - $7,600. Design and engineering to be provided by the City in consultation with Maplewood Mall. 8. Current real estate taxes assessed for the project site: $2,949,980 (2009 pay 2010) 9. Estimated real estate taxes for the project site upon completion of project: $145,000 (Incremental taxes for 2013 pay 2014) . 10. Date that the applicant expects tax-increment bond proceeds to be available to pay project expenses: Summer 2011 11. Estimated date of construction: May 2011 Completion: Summer 2012 12. Will any public official of the City, directly or indirectly, benefit from the tax-increment financing for this project within the meaning of Minnesota Statutes, Section 412.311 or 471.87? If so, specify: No 13. Is this a tax increment bond issue or pay-as-you-go financing? Anticipate that a TIF bond will be issued. However, a pay-as-you TIF Note could also be used. The net TIF revenue would support a TIF Note payable to Maplewood Mall Associates for 9 years at 6.25%. 4 FILING REQUIREMENTS You must provide all of the following items with your application: 1. An application fee of $6,760. Make your check out to the City of Maplewood. This fee is not refundable and is separate from the bond counsel's, City attorney's or closing fees. 2. A written opinion, with supporting justification, from an expert acceptable to the Director of Community Development, to document that the development will not adversely effect similar, existing developments. The Director of Community Development may waive this requirement ifthere are no similar developments in your area. 3. A written statement supporting the statutory requirement that "but-for" the use of TIF on this project, it will not proceed as planned. NOTES 1. The City charges an administrative fee of 5% ofthe annual tax-increment revenue. 2. If the project requires zoning or Community Design Review Board approvals, you must make these applications before or concurrently with this request. PROCEDURES 1. Return this application to the Community Development Department. 2. The Director will schedule a public hearing with the City Council after preparing a report and recommendation. The Housing and Redevelopment Agency will meet on this application first if it is a housing project. The HRA will make a recommendation to the City Council. 3. Concept approval by the City Council. 4. Preparation ofthe tax-increment plan by the City's financial advisor and bond counsel. The City will not start preparing the tax-increment plan until we have completed all zoning and Community Design Review Board approvals. 5. City Council decision on the tax-increment plan, following a public hearing. 6. The applicant enters into development and assessment agreements. The development agreement will include a requirement that the applicant must guarantee debt service on any tax-increment bonds if the tax-increments are not enough for such purpose. The assessment agreement will include a minimum market value for the project after its completion. 7. Issuance ofthe bonds, if any. 5 The City will notify you of all meetings. AGREEMENT I, by signing this application, agree to the following: 1. I have read and will abide by all the requirements ofthe City for tax-exempt financing. I will commit all contractors, subcontractors and any other major contributors to the project to all segments applicable to them. I am aware that failure to comply by myself or any of the above can result in cancellation ofthe resolution. 2. The above information is correct. 3. I agree to pay all costs involved in the legal and fiscal review ofthis project. These costs include the bond counsel and City Attorney, and all costs involved in the issuance of the bonds to finance the project. 4. I understand that the City reserves the right to deny final approval, regardless of preliminary approval or the degree of construction completed before application for final approval. Authorized Representative Date Form Revised: 12/06 p/com _ dvpt/word/app and agreement for tax-increment financing2007 6 ent 2 ~ ~ ~ " ~ '" t: t: " " ~ ~ ~ w 0 0 S'5 S'5 0 '" w Z ~ a: u.; "' S'5 '" " ?;< i.fJ ~ Minnesota Office Corporate Headquarters 380 Jackson Street, Suite 300 St. Paul, MN 55101-2887 651.223.3000 651.223.3002 Fax Colorado Office 8400 E. Prentice Avenue Suite 500 Greenwood Village, CO 80111 303.893.5800 303.771.1334 Fax advisors@springsted.com Attachment 3 Tax Increment Financing (T1F) in Minnesota Concepts and Mechanics May 2010 Des Moines Office 300 Walnut Street Suite 215 Des Moines, IA 50309-2258 515.244.1358 515.244.1508 Fax Richmond Office 1564 East Parham Road Richmond, VA 23228-2360 804.726.9748 804.726.9752 Fax Missouri Office 9229 Ward Parkway Suite 104N Kansas City, MO 64114-3311 816.333.7200 816.333.6899 Fax Wisconsin Office 1110 North Old World 3rd Street Suite 218 Milwaukee, WI 53203-1100 414.220.4250 414.220.4251 Fax www.springsted.com Table of Contents INTRODUCTION............................................................................................ 1 A. PARTICIPANTS .................................................................................. 3 B. THE MECHANiCS................................................................................ 4 Project Area........................................................................................ 4 Types ofTax Increment Financing Districts ................................................ 5 Examples ofTlF Eligible Project Costs ...................................................... 7 The Increment..................................................................................... 7 Financing of Project Costs ................................................................... 10 Pooling............................................................................................ 12 Time Restrictions............................................................................... 13 C. THE DOCUMENTS ............................................................................14 Development District Program............................................................... 14 Tax Increment Financing Plan ............................................................... 14 Development Agreement..................................................................... 14 D. PROCESS FOR ESTABLISHMENT .......................................................15 E. BENEFITS AND COSTS ..................................................................... 16 City's Perspective.............................................................................. 16 Landowner(s) Perspective.................................................................... 17 F. POLICY QUESTIONS ......................................................................... 18 "But For" Tesl.................................................................................... 18 Project Area...................................................................................... 18 Level of Assistance ............................................................................ 19 Fiscal Disparities................................................................................ 20 City Security Guarantees ..................................................................... 23 City Admi nistrative Costs..................................................................... 24 ~ SPRINGSTED Introduction Tax Increment Financing In Minnesota Tax Increment Financing (TIF) uses the increased property taxes generated by new real estate development within a tax increment financing district to pay for certain eligible costs associated with the development. The value that is "captured" (i.e., the increase in value over the year the TIF district was established) generates property taxes. These "incremental" taxes go to the development authority or the city authority rather than to the city, county, school district, or other taxing jurisdictions that normally share in the total property tax bill. The captured taxes are used to subsidize eligible project costs such as land acquisition, demolition, public and site improvements, and related consulting and administrative costs. The value of the property prior to development (i.e., the "non-captured" portion) continues to generate property taxes which are distributed to all appropriate taxing jurisdictions. The justification for use ofTIF rests solely with the "But For" test. A simple way to express this test is that the development or redevelopment would not occur without a tax increment subsidy. Critics of TIF often point to the "But F or" test as the weakness in the actual use of TIF. Such critics often claim that the development would have occurred anyway, and local officials are not rigorously applying this test. The net result in such cases is an overuse of tax increment financing at the expense of the tax base of the county, school district, and other taxing jurisdictions. While there have been limited abuses, this financing tool has helped to reshape and revitalize many communities. In addition to assisting core development and redevelopment, residual growth outside of the established TIF districts provides a direct benefit to all taxing jurisdictions. In response to the potential misuse oftax increment financing, each year the State Legislature further refines the use ofthis financing tool. Each amendment to the statutes has, in recent years, resulted in a more complicated and restrictive financing vehicle. The purpose ofthis document is to outline the basic concepts and mechanics of using tax increment financing within the statutory guidelines and parameters. This report outlines the participants involved in TIF, mechanics, documents, process, a discussion of benefits and costs, and policy questions associated with the use of TIF. ~ SPRINGSTED Page 1 Tax Increment Financing In Minnesota The material included in this report is intended to be used as an informational guideline for the use of TIF. The complete Tax Increment Financing Act can be found in Minnesota Statutes, Section 469.174 - 469.1799. Springsted Incorporated has a proven track record in working with communities in the use of tax increment financing as an economic development and redevelopment tool. Please feel free to contact us if you need further information or would like to discuss in more detail the concepts contained in the following materials. ~ SPRINGSTED Page 2 Tax Increment Financing In Minnesota A. Participants Participants Elected Officials Advisory Commissions City Staff Fiscal Consultant: Springsted Incorporated Bond Counsel Landowner or Developer Attorney Other Governmental Jurisdictions County School District Other T axing Jurisdictions Federal Government State Government Metropolitan Council, etc. County Other Municipalities Bordering Project Area ~ SPRINGSTED Page 3 Tax Increment Financing In Minnesota B. The Mechanics Project Area (Le., Development District) and Tax Increment Financing (TIF) District A. Financial difference between the two ~ Project Area: Area in which TIF funds can be spent (with certain restrictions). ~ TIF District: Area from which TIF funds are generated. B. Geographical difference between the two ~ Project Area and TIF District can be the same, or Project Area TIF District ~ Project Area can be larger than the TIF District Project Area ~ SPRINGSTED Page 4 Tax Increment Financing In Minnesota Types ofTax Increment Financing Districts A. Redevelopment District ~ Generally a blighted area containing substandard buildings, sometimes having inadequate streets and incompatible land uses. ~ Requires documentation to evaluate occupied land area and estimated costs of rehabilitation versus new construction. ~ Additional conditions include railroad uses or tank facilities or a qualified disaster area. ~ Maximum duration ofTIF district is 25 years from receipt ofthe first tax increment. B. Renewal and Renovation District ~ Blight and obsolescence tests must be met, which are slightly less restrictive than for redevelopment TIF distri cts. ~ Maximum duration of TIF district is 15 years from receipt ofthe first tax increment. C. Housing District ~ Provides housing opportunities for persons and families oflow to moderate income. ~ Maximum duration ofTIF district is 25 years from receipt ofthe first tax increment. D. Soils Condition District ~ Where there exists the presence of hazardous substances, pollution or contaminants requiring removal or remedial action. Such costs must exceed the fair market value of the land. ~ Maximum duration ofthe TIF district is 20 years from receipt ofthe first tax increment. ~ SPRINGSTED Page 5 Tax Increment Financing In Minnesota E. Economic Development District ~ May be used only for manufacturing, production, processing, warehousing, storage, distribution (excluding retail sales), research and development, telemarketing, tourism facilities (in certain cases), qualified border retail facilities, and small city commercial facilities. ~ Prohibits establishment if more than 15% of the square footage of such facilities are used for other purposes. The allowable percentage of non-qualifying square footage can be increased when such uses are directly related to or in support of the qualifying activity. ~ Must demonstrate retention oflocal business, increased employment and enhancement of the state tax base. ~ Maximum duration of TIF district is 8 years from receipt ofthe first tax increment. F. Other TIF Districts ~ Includes hazardous substance subdistrict. ~ SPRINGSTED Page 6 Tax Increment Financing In Minnesota Examples of TIF Eligible Project Costs ~ Public improvements for street, sewer, water, etc. ~ Land acquisition ~ Soil correction ~ Site preparation/demolition ~ Relocation ~ Financing fees and capitalized interest ~ Administrative costs up to 10% of the tax increment The Increment A. Prior to forming the TIF district ~ "Estimated Market Value" of properties in the proposed TIF district Estimated Market Value ~ Translated into "Net Tax Capacity" through statutory classifications Estimated Market Value Net Tax Capacity ~ "Net Tax Capacity" times "Tax Capacity Rate" equals property taxes Net Tax Capacity Tax X Capacity = Rate Property Taxes - City - County - School District - Other ~ SPRINGSTED Page 7 Tax Increment Financing In Minnesota B. When a TIF district is established ~ The "Net Tax Capacity" is given the term "Original Net Tax Capacity (ONTC)", and is certified for the previous assessment year, provided that the request for certification was made by June 30. The ONTC of a district for which requests are filed after June 30 is based on the current assessment year. ~ Property taxes generated by the ONTC ofthe TIF district continue to provide revenue to each individual taxing jurisdiction. ~ The local tax capacity rate is called "Original Local Tax Rate," and is certified for the previous assessment year, provided that the request for certification was made by June 30. The Original Local Tax Rate of a district for which requests are filed after June 30 is based on the current assessment year. ~ The Original Local Tax Rate is the sum of all local tax rates that apply to a property in a district or subdistrict. ~ The lesser of the Original Local Tax Rate or current local tax rate is used to calculate the annual tax increment. C. New development occurs within the TIF district ~ New market value is added to the existing estimated market value. Total Total Net Total Estimated Tax Property Market Value Capacity Taxes Increase in Increase in Estimated (Captured) Tax Market Net Tax Increment Value Capacity Revenue Tax X Capacity ~ Original Original Rate Taxes Estimated Net to Other Market Tax Taxing Value Capacity Jurisdiction (OM V) (ONTC) ~ SPRINGSTED Page 8 Tax Increment Financing In Minnesota D. Tax increment revenue generated by the increase in Net Tax Capacity. ~ Increment received over the duration of the TIF district. Property Taxes Tax Increment Revenue Taxes to Other Taxing Jurisdictions Time (Years) ~ ~ SPRINGSTED Page 9 Financing of Project Costs Tax Increment Financing In Minnesota ~ In some cases, the City is required to fund project costs prior to development occurring. ~ City issues general obligation tax increment bonds to finance the project costs. The possibility exists for non- general obligation revenue bonds to be issued. Taxable Bonds If Two Federally Imposed Tests Are Met A. "Private Business Use Test" - Are more than 10% of the expenditures made for a private purpose? ~ Types of expenditures for improvements available to everv resident: . Streets, sewer, water, etc., ~ Types of expenditures benefiting private parties, such as landowners/ deve I opers; . Land acquisition, soil corrections, site preparation, etc. B. "Private Security Interest Test" - Are more than 10% ofthe payments of taxes and/or debt service guaranteed by the landowner/developer? ~ A contract or guarantee requiring the landowner/developer to make tax payments and/or fund a debt service shortfall triggers the private security interest test. ~ Assessment agreements trigger the private security interest test. ~ City receives tax increment revenues over a period of years and uses them to pay debt service on the bonds. ~ Tax increment bonds may be repaid with: . Tax increment revenues. . Other pledged revenues. . General obligations: potential City-wide property tax levy. This situation can be dealt with through security guarantees by the landowner. ~ SPRINGSTED Page 10 Tax Increment Financing In Minnesota ~ Financial limits on the City's ability to fund project costs dictated by the amount and duration ofthe tax increment revenues available. ~ In some cases the developer will pay all costs upfront and be reimbursed for eligible project costs over a period of time. This is generally referred to as "pay-as- you-go" financing. . Reimbursements are made from tax increment revenues. . This financing approach significantly reduces City liability and risk. . If development does not occur or does not reach the levels forecasted, increment is reduced and less funds are available for reimbursement. ~ SPRINGSTED Page 11 Pooling Tax Increment Financing In Minnesota ~ Tax increment revenues may be spent outside of the TIF District but within the boundaries ofthe Project Area, subject to certain restrictions. ~ For redevelopment TIF districts (certified after June 30, 1995) the minimum in-district percentage is 75%. The maximum pooling percentage is 25%. ~ For all other TIF districts (certified after June 30, 1995) the minimum in-district percentage is 80%. The maximum pooling percentage is 20%. ~ All administrative costs are considered expended outside of the TIF district. ~ Pooled increment revenue must still be spent on TIF eligible project costs. ~ An additional 10% can be pooled for low-income housing (must meet statutory guidelines). ~ SPRINGSTED Page 12 Time Restrictions Tax Increment Financing In Minnesota A. Time Limit Number I: Four-Year Knock-Down Rule ~ Increment will not be collected from a particular parcel unless, within four years of certification, demolition, rehabilitation or renovation of property or other site improvements has occurred in accordance with TIF plan. ~ If a parcel is "knocked down" and later improved, it can be reinstated in the district, but at the market value at the time of reinstatement. B. Time Limit Number 2: Five-Year Rule ~ F or increment to be considered a spent expenditure within the TIF District, one of the following must occur within five years after certification ofthe district: + Increment is paid to a third party for a TIF eligible expenditure + Bonds are issued to a third party and proceeds are expected to be spent within five years. + Binding contracts are entered into with a third party for performance of an activity and increment is spent under the contract, or + Costs are incurred by a "party" and revenues are spent to reimburse that party. ~ SPRINGSTED Page 13 Tax Increment Financing In Minnesota C. The Documents Development District Program y This document (or equivalent document, i.e. Redevelopment Plan) establishes overall guidelines for the project area boundaries and the type and level of improvements to be constructed or acquired. y This document does not establish the TIF district. Tax Increment Financing Plan y This document establishes the boundaries of the TIF district, the expenditures and financing limitations, elects year to first receive tax increments (with limitation) and starts the process for collection of tax increment revenue by the City. y The Development District Program and the Tax Increment Financing Plan can be drafted either concurrently or the Development District Program can be drafted first and the TIF Plan later on. Development Agreement A. This document is a contract between the City and the landowner, stipulating the obligations of each party. The Development Agreement usually requires the landowner to: y Construct a development within a certain time frame with a specified minimum size and market value. y Provide guarantees ensuring the timely completion of the development, and may require prompt payment of property taxes and debt service shortfalls. y May require the City to construct public improvements and/or purchase land associated with the new development according to an agreed upon schedule using the expected tax increment revenue. B. Terms of this agreement may well dictate whether bonds are tax-exempt or taxable. C. Many cities currently require a Development Agreement on all new developments. ~ SPRINGSTED Page 14 Tax Increment Financing In Minnesota D. Process for Establishment In order to establish a TIF district, a specific process must be followed including the following. A. At the outset, a Development District Program (or equivalent document) must be prepared. This sets forth the general goals for development or redevelopment in the project area. B. A Tax Increment Financing Plan must be prepared. This sets forth the specific project(s) to be undertaken, costs involved, revenues projected and is the guiding document for the proposed proj ect. C. A public hearing on the TIF Plan and district must be conducted. Notification ofthe public hearing must be published 10-30 days prior to the hearing. D. A TIF district "fiscal and economic impact" letter, along with a draft TIF plan, must be received by the county and school district at least 30 days prior to the public hearing. For housing and redevelopment TIF districts a notification letter to the county commissioner must also be received at least 30 days prior to publication of the public hearing. E. The City planning commission must review the TIF Plan and Development Program prior to City approval. F. At the public hearing, all interested parties are invited to express their opinion( s). G. Subsequent to the public hearing, the City must approve or reject the TIF Plan and district. H. Upon approval, the City must request county certification of the TIF district which will begin the tax increment collection process. Selected information must also be filed with the State Department of Revenue and State Auditor. 1. Actual project expenditures may not be made until the TIF Plan is approved and adopted. ~ SPRINGSTED Page 15 E. Benefits and Costs City's Perspective Tax Increment Financing In Minnesota A. Benefits ~ TIF allows City to realize new development which would not otherwise occur without the use of TIF (the "But F or" test). ~ City can realize broader economic gains of new development in terms of employment, tax base enhancement and secondary spin-off effects. ~ City can facilitate the construction of related public improvements it wishes to achieve by coordinating a TIF project with more general public improvement projects. ~ City may have better control over the nature of the development. ~ City may be able to fund administrative and/or community development costs with revenue from the TIF district. ~ In some cases the quality of new development is enhanced by TIF financing. B. Costs ~ The City may assume the risk that property taxes might not be paid and/or changes in property tax laws or funding oflocal governments might cause tax increments to fall short of scheduled debt service payments. City may pledge to use other funds or general property tax levies to pay debt service. (Development Agreement guarantees.) ~ City and other overlapping taxing jurisdictions (county, school district, etc.) must wait until TIF district is terminated until the new development becomes part of the general tax base. ~ Depending on the magnitude and strategy for addressing fiscal disparities contribution on commercial properties, there can be an internal shift in property tax burdens (for communities in the Twin Cities Metropolitan Area only). ~ SPRINGSTED Page 16 Landowner(s) Perspective Tax Increment Financing In Minnesota A. Benefits ~ Development can proceed because TIF provides a funding source for public improvements where no other viable funding source exists. ~ Without TIF the landowner absorbs the development costs of either: . Special assessments for public improvements, and/or . Hard costs of land acquisition and site preparation. With TIF these costs are funded in whole or in part by increment revenues and the landowner pays only his property taxes, which are the same whether TIF exists or not. B. Costs ~ Usually a slightly extended development period required for the TIF process. ~ Usually landowner provides financial guarantees to City securing taxes and debt service on TIF bonds (if applicable). ~ Greater City monitoring of scope, quality and timing of new development. ~ SPRINGSTED Page 17 F. Policy Questions "But For" Test Project Area Tax Increment Financing In Minnesota ~ In order for the City to create a TIF district it must make a finding that the new development would not occur "But F or" the use oftax increment financing. ~ The critics of TIF state that the development would occur anyway and the City is simply giving funds to a private party. ~ Counties and school districts are particularly interested in this finding because they will not realize any enhancement to their general tax base until after the TIF district is terminated (up to 26 years). The project area, the parcels upon which TIF funds can be spent, can be the same as or greater than the TIF district. ~ Does the City intend to use TIF funds beyond the parcels from which TIF revenue will be generated? ~ Does the City envision numerous TIF districts created over time within a single project area? ~ Does the City have other improvement proj ects in other adjoining areas for which funding can be augmented with TIF? ~ Does the scope ofthe improvement proj ect benefit two or more TIF districts? ~ SPRINGSTED Page 18 Level of Assistance Tax Increment Financing In Minnesota A. How much funding does the City wish to commit to the project? ~ Demonstration by private parties of need for level of TIF assistance requested. B. Mandatory imposed limitations ~ Statutory duration ofthe TIF district ~ Tax capacity rate ceilings C. Discretionary imposed limitations ~ Term of TIF district shorter than maximum permitted ~ Nature of expenditures . Do they lead to taxability and therefore higher interest rates yielding lower net bond proceeds? ~ Pace of development . How soon will development occur? ~ Fiscal disparities option on commercial-industrial developments in the Twin Cities Metropolitan Area and Taconite Tax Relief Area. ~ SPRINGSTED Page 19 Tax Increment Financing In Minnesota Fiscal Disparities ~ State law requires new commercial-industrial properties in the Twin Cities Metropolitan Area and Taconite Tax Relief Area to contribute up to 40% of their valuation to an area wide pool for distribution back to all local taxing jurisdictions. ~ For TIF districts with new commercial-industrial development, the City must decide whether the fiscal disparities contribution will be made from valuation within the TIF district or from commercial-industrial properties located within the City but outside ofthe TIF distri ct. ~ New economic development TIF Districts must have fiscal disparity contribution made from within the TIF District (no option). ~ How does this affect the TIF district and related increment revenue? Without (Option A) With (Option B) (ONTC) Captured Net Tax Capacity (2 60%) Fiscal Disparities Contribution (S 40%) (ONTC) Captured Net Tax Capacity ~ SPRINGSTED Page 20 Net Tax Capacity Net Tax Capacity Tax Increment Financing In Minnesota ~ Over the life of the TIF district. Without Fiscal Disparities Contribution (Option A) Captured Net Tax Capacity Original Net Tax Capacity Time (Years) ~ With Fiscal Disparities Contribution (Option B) Captured Net Tax Capacity Fiscal Disparities Contribution Original Net Tax Capacity I I I I I I I I I I I Time (Years) ~ ~ SPRINGSTED Page 21 Tax Increment Financing In Minnesota Primary Impacts Ifthe fiscal disparities contribution comes from the TIF district, less increment revenue results, which restricts the level of funding for the project. Ifthe fiscal disparities contribution comes from outside the TIF district, the converse is true, that being an increase in the level of funding. Secondary Impacts With the fiscal disparities contribution being made from outside the TIF district, the amount ofthe contribution must come from other commercial-industrial properties within the City. ~ The potential exists for City tax rate increases dependent on the relative magnitude of the new development to the City's total tax capacity. With the fiscal disparities contribution coming from outside ofthe TIF district, the City's total gross tax capacity is reduced by both the TIF captured tax capacity and the fiscal disparities contribution. This can lead to a potentially higher City tax rate. ~ SPRINGSTED Page 22 City Security Guarantees Tax Increment Financing In Minnesota A. Usually when TIF bonds are sold they are general obligation bonds. General obligation TIF bonds require that if increment revenue is not sufficient to pay debt service at any time over the life ofthe bonds, then the City is ultimately required to levy City-wide property taxes to repay the bonds. B. How can this occur? ~ New development is constructed over a longer time frame and/or to a lesser market value than was represented to the City at the time of approval; ~ Property owners don't pay their taxes on time; ~ Property owners pay taxes on time, but with decreases in tax capacity rates caused by changes in the funding of local governments or tax structure changes, actual property tax payments are less than scheduled debt service. C. How does the City protect itself? ~ Assessment agreement stipulating the market value of new development and schedule of completion. ~ Withholding bond proceeds or delaying construction of public improvement until all or a portion of new development is completed. ~ Liquidity guarantees (letters of credit) provided by property owners ensuring timely payment of property taxes. ~ Liquidity guarantees (letters of credit) provided by property owners covering debt service shortfalls regardless if taxes are paid on time. ~ Pay-as-you-go: No debt is issued. The landowner finances his own improvements and is reimbursed over time by the City from the actual collection of increment revenue. D. The type of guarantees depends on the level of risk the City perceives itself to be exposed to. ~ SPRINGSTED Page 23 City Administrative Costs Tax Increment Financing In Minnesota The establishment of a TIF district and the negotiation of a thorough Development Agreement require substantial time commitments by City staff and its consultants. A large portion of that time is expended prior to the signing of the Development Agreement and before actual construction ofthe new development. Furthermore, additional City staff time is needed to monitor and report on the performance of the TIF district over its life. The legislature has anticipated these City costs by providing for a reimbursement for administrative costs (interfund resolution required). This reimbursement is limited to the lesser of 10% of project costs or 10% of increment revenue, and is intended to cover all staff and consultant costs other than engineering. The City should consider two relevant policy questions. ~ Does the City wish to receive a guarantee of its costs from the landowner for the period from inception of the TIF process until signing ofthe Development Agreement? This guarantee covers the situation whereby the project terminates during the negotiation phase. ~ What is the appropriate level of administrative cost reimbursement? ~ SPRINGSTED Page 24 Attachment 4 Minnesota Jobs Bill Impacting TIF (HF 2695) Temporary authority to use existinq tax increment revenues Excess and surplus increments from any existing TIF districts can be used for any costs on any private development that includes new construction or substantial rehabilitation of buildinqs and ancillary facilities ("project") - anywhere in the city - provided that . The project will create or retain jobs in the state, including construction jobs, and . construction commences before July 1,2011; and . the construction would not have commenced without the assistance ("But For" test). The increment can be used to provide improvements, loans, interest rate subsidies or assistance in any form; or to make an equity or similar investment in a corporation, partnership or limited liability company that is necessary to make construction of a private development consisting of the new construction or substantial rehabilitation of buildings or ancillary facilities financially feasible. The authority to expend increments under this section expires December 31,2011 and does not extend to allow payment of bonds beyond this date. Critical finding - the use of the tax increments for the private development stimulates the construction to commence earlier than it otherwise would have - this will need to be properly documented Authority to spend increments under this law requires that the municipality adopt a written spending plan after a public hearing has been held. Depending on the type of TIF district that has funds available - care must be taken to ensure the projects selected will be able to meet this timing for expenditures of certain increments. For example, a soils condition district could otherwise not expend money if all remediation activities were completed. This temporary authority allows those funds to be redirected, but for a limited time. If funds are loaned for a project, the repayments will be restricted according to the TIF district from which the increments were generated. New TIF Districts Compact Development Districts New type of TIF district with a 25-year term that requires properties consisting of buildings as follows, compared to "Redevelopment District" Compact Development Districts Most similar to Redevelopment District Compact Development District Term 25 years after first collection Qualifications Existinq Status of Parcels in District Existinq Status of Parcels in District At least 50% of buildings qualify as sub- No substandard building test. Parcels standard. More than 70% of the area is consisting of 70% of the area of the occupied- occupied means 15% of the district are occupied by buildings parcel. classified as commercial/industrial - occupied means 15% of the parcel Post Development requirements None Post Development requirements - Planned redevelopment increases square Non-Contiquous Parcels footage of commercial-industrial buildings Required to individually meet by 3 times. qualifications Non-Contiquous Parcels Not required to individually meet qualifications, however, still must meet the 4-year knock down rule Use of increment. Tvpical TIF eliqible costs Limitations on use - Land acquisition, - Land acquisition within or abuttinq district - Demolition and removal of existing - Demolition and removal of existing buildings buildings on lands within or abuttinq - Site preparation and improvements, district - Public infrastructure improvements - Site preparation costs on lands within or - Streets and sidewalks abuttinq district - Parking/footings/foundations - Installation of public infrastructure, - Administrative costs excluding roads, streets, and parking that serve primarily serve passenger vehicles - Administrative costs Creation No sunset Ability to establish expires June 30,2012 New TIF Districts (continued) Economic Development Districts New language was added to the definition of economic development districts that temporarily expands the eligibility of developments. Existing law indicates that a building cannot be included in an economic development district if more than 15% of the square footage is for a use other than manufacturing, warehousing or distribution. Under the new law, there is no restriction on the use; therefore office, retail and residential could all be acceptable uses. The use of increment and term remains the same. Tax increments from an economic development can be used to provide improvements, loans, subsidies, grants, interest rate subsidies, or assistance in any form to developments consisting of buildings and ancillary facilities. Economic Development District Existing Law New Law Term. 8 years after first collection Qualifications at least 85% of the square footage of the No restrictions on use of building - may buildings is used for manufacturing, include commercial, office space, warehousing or distribution residential, any use Use of increment- typical TIF eligible costs - acquisition, Same uses of increment site preparation and improvements, infrastructure improvements In order to exercise the powers of the new law the following 3 conditions must be met . The municipality finds the project will create or retain jobs in the state, including construction jobs, and that construction of the project would not have commenced before July 1,2011, without the TIF assistance ("But For" test) . Construction of the project begins no later than July 1, 2011 . The request for certification is made no later than June 30, 2011 Temporary Authority applies to pre-existing districts, if the request for certification was made after June 30, 2009. MEMORANDUM TO: FROM: James Antonen, City Manager Michael Martin, AICP, Planner Charles Ahl, Assistant City Manager Potential Tanner's Lake Redevelopment March 11, 2011 SUBJECT: DATE: INTRODUCTION On January 10, 2011 the Maplewood city council held a joint meeting with the Oakdale city council regarding the future of the Tanner's Lake area. In Oakdale, this area ranks high on its redevelopment priority list. In Maplewood, this area has yet to be considered by the city as a priority redevelopment area. The city council directed staff to compile information in several areas before its February 4, 2011 council retreat. At this retreat the council considered if the Tanner's Lake area should be a city-led redevelopment area and if so, where does it rank amongst other already identified redevelopment areas in Maplewood. The city council directed staff to continue its discussion with the property owners and Oakdale staff. This potential redevelopment area is north of Interstate 94, east of Century Avenue North and west of Tanner's Lake. Attachment 1 of this report displays a map showing the Tanner's Lake area and the Oakdale and Maplewood municipal boundary. Three of the parcels in this area are located in the City of Maplewood. DISCUSSION Below is information in several areas regarding the Tanner's Lake area. Current Ownership On Attachment 2, parcels 4, 5 and 6 are in Maplewood. Parcel 4 is 2.15 acres in size and occupied by the Livlnn Suites. The land is owned by Roxmann Tanners Lake LLC, which according to Ramsey County is based in Burnsville. The market value for parcel 4 is $2,510,500. Parcel 5 is 1.13 acres in size and occupied by Denny's. The land is owned by Commercial Net Lease Realty, which according to Ramsey County is based in Orlando, Florida. The market value for parcel 5 is $1,021,900. Parcel 6 is 0.85 acres in size and occupied by a Precision Auto Tune. The land is owned by Dean and Barbara Johnson, which according to Ramsey County are in Minnetonka. The market value for parcel 6 is $804,800. The total market value for all three parcels is $4,337,200. Current Future Land Use Guide In the 2030 Comprehensive Plan, Maplewood has guided its portion of the Tanner's Lake area as Commercial. The 2030 Comprehensive Plan's definition of Commercial is below: Commercial The Commercial classification includes a wide variety of commercial land uses. The City may allow high-intensity uses in this area, subject to performance guidelines. This classification could also provide areas for offices and related uses together with supportive, low-intensity commercial uses, such as clinics, child care facilities, and smaller retail uses that cater to convenience shopping. This land use classification will also work to provide for a transition between high-intensity commercial uses and medium and high-density residential districts. Light industrial uses which accommodate manufacturing, processing, warehousing, and research and development are also allowed. In Oakdale's 2030 Comprehensive Plan, the city has guided the Tanner's Lake area within its border as Mixed Use. The Oakdale plan defines Mixed Use as the following: Mixed Use Mixed Use Land occurs in the form of a Planned Unit Development (PUD), where commercial, residential, and office uses all come together in the form of one cohesive development. In the City of Oakdale, Oakcrest Village is the only existing land use that is mixed use, however, many of the conceptual redevelopment plans incorporate a mixed use concept, so this category could increase in the future. Residential densities for mixed use projects should average four to eight (4-8) dwelling units per acre, however, densities may be adjusted by the City Council on a project specific basis and in accordance with detailed development plans. Densities may only be increased above eight (8) dwelling units per acre if the City Engineer determines that adequate excess infrastructure capacity exists to accommodate the increased density. Potential Uses The zoning for the Maplewood parcels is Heavy Manufacturing (M2) like that of the 3M campus to the west. The M2 zoning district is consistent with the Commercial designation because M2 allows all permitted and conditional uses in the Light Manufacturing (M1) zoning district, which in turn allows all permitted and conditional uses in the Business Commercial (BC) zoning district. The M2 zoning district has the largest range of permitted and conditional uses of any zoning district in Maplewood. Oakdale's parcels in this area are either zoned community commercial or low density residential. Oakdale's community commercial zoning district is similar to Maplewood's business commercial zoning district in terms of permitted uses. Oakdale's low density residential is also similar to Maplewood's single family residential (R1) district. In Oakdale's current comprehensive plan it has identified the Tanner's Lake area as a priority redevelopment area. The following language is from the Oakdale comprehensive plan and outlines potential uses: This redevelopment area along the shoreline of Tanners Lake includes multiple buildings extending from 1-94 to 4th St North on the East side of Century Avenue. This area currently contains the following restaurants: Blackie's, Donovan's, and Denny's as well as Harmon's Auto Glass, Uvlnn motel, and an automotive service. Many of these businesses are showing signs of decline as they age. Oakdale will need to work closely with the city of Maplewood on the development of this site as part of the land lies within Maplewood's city limits. Special zoning considerations will also have to be considered by the City to facilitate redevelopment. The proposed concept plan utilizes the shoreline and scenic views the property offers. Future uses can include retail, restaurant, office, and housing. Again, emphasizing the mixed use approach will create more activity on the site and provide destinations within walking distance. A large shoreline boardwalk is shown on the concept plan to allow visitors to stroll along the lake, host community-wide events, such as an art fair or farmer's market, and offer seating areas. Restaurant patios are planned along the boardwalk to provide out- door dining opportunities and encourage higher pedestrian use. Parking is tucked behind the buildings to optimize views and allow water runoff to collect in raingardens for treatment or an underground filtration system before running into the lake. Permeable pavements could further reduce the environmental impacts and pollutants draining into Tanners Lake. With the right design principles in place, this site could become a popular destination and an asset to the community. Since Maplewood has not identified this area as a redevelopment priority, no effort has been made to evaluate potential uses for this area. While the zoning code allows for a large range of uses staff would expect that if this area were to redevelopment a mix of the following uses would most likely be compatible: housing, an upscale hotel, restaurant and lounge, and compatible retail shops. Staff expects any future redevelopment to require extensive city council review, which could mean the current zoning designations might have little bearing on what types of uses a new development would include. Also, a comprehensive plan amendment could be required for this area, especially if any housing were to be proposed in Maplewood. Wetland and Shoreland Buffer Concerns Though Tanner's Lake and the adjacent wetland are completely in Oakdale its buffers would impact the Maplewood properties. Tanner's Lake is designated as a Class I water. Class I waters are those that the state department of natural resources has designated general development waters, and the city land use plan shows at least 75 percent of the shoreland for commercial or industrial use. The building setback from a class I water is 50 feet. The maximum impervious surface area is 50 percent, though there are opportunities to boost this maximum to 70 percent if certain stormwater management practices are implemented. The wetland that is adjacent to the Maplewood parcels and to Tanner's Lake is a class B wetland. The city's recently revised wetland ordinance states that a class B wetland adjacent to a lake must have a building setback of 50 feet. Code Consistency Between Oakdale and Maplewood Staff has reviewed both the cities of Oakdale and Maplewood zoning codes for consistency. The design standards; i.e. setbacks, lot dimensions, minimum areas, etc; for comparable zoning districts are similar but do not match exactly. In no case was there a huge discrepancy between the two cities but again the regulations do not exactly match each other. Oakdale's comprehensive plan guides this area as mixed use and in the definition it states a PU D would be required for development. Staff would also foresee a PUD being utilized in any redevelopment involving the Maplewood parcels. Maplewood's zoning code, as is Oakdale's, is setup to regulate traditional development. If this area were to be redeveloped it would not fall under the category of traditional development. Staff would recommend a PU D for this area to allow the council and potential developer flexibility with the required building setbacks, buffer setbacks, and any other relevant code requirements. This area currently is developed as individual commercial properties with little tying the parcels together. One of the main goals of redevelopment in this area should be to establish a unifying theme between the parcels, which would be best achieved though a PUD. If a redevelopment plan were to be implemented in this area, staff expects there would be extensive coordination and collaboration with the city of Oakdale staff and council to ensure a project that is successful and seamless regardless of the municipal boundary. Police Report Below is a table of number of police calls made to the three Maplewood parcels. Chief David Thomalla has stated the calls to the Livlnn Suites are typically of a more time consuming nature. As a point of comparison, the Emerald Inn on County Road D near White Bear Avenue, had a total of 273 calls for this 5+ year period. The Emerald Inn is the most comparable to the Livlnn in terms of the types of police calls being made. Livlnn Denny's Precision Tune 2011 2010 2009 2008 2007 go ~93 1 20 o 6 2006 2005 Total 749 215 20 117 145 134 61 89 27 43 60 27 37 2 4 3 4 1 City of Maplewood's Role If the city council were to decide to make the Tanner's Lake area a priority for redevelopment it must consider what role the city would have in facilitation. Oakdale thus far has taken a hybrid approach by purchasing a parcel of land but also working with one current property owner on a potential future restaurant to be located in this area. One option would be for the city to attempt a direct purchase of the parcels. As stated earlier in this report, the county's 2010 market value for the three parcels is near $4.4 million. Given the city's budget constraints any purchase of property would most likely require several alternative funding sources. The city could work with the current property owners in order to make them partners in the redevelopment. At this time, staff cannot completely gauge the willingness of the current land owners or the current business operators to be part of any redevelopment. Another consideration the city must weigh is assistance in relocating the existing businesses. Staff primarily thinks of the Precision Tune, which most likely would not fit with any vision of redevelopment. However, the other two businesses could potentially be partners in the redevelopment, relocate or cease operation. RECOMMENDATION Review this report and be prepared to discuss the potential redevelopment of the Tanner's Lake area. Attachments: 1. Location Map 2. Property Ownership Map 3. Maplewood and Oakdale Future Land Use Map 4. Maplewood and Oakdale Zoning Map 5. Tanner's Lake Redevelopment Conceptual Drawing (Oakdale only) 6. Tanners Lake Proposed Redevelopment Plan, Oakdale 2030 Comprehensive Plan Potential Tanner's Lake Redevelopment Location Map Municipal Boundary Maplewood to the west, Oakdale to the east Attachment 2 Tanner's Lake Area Future Land Use Industrial D o o Commercial CJ G:: Attachment 3 ! Tanner's t tJ.x $ Tanner's Lake Area Zoning Map Attachment 4 Veryl!ow Density Residential / ! [,sn er '$ f e G:: :; r: '" ;;0 '" 00 ~~ 0.", "-,- 1'>0 "''' ,. s: ~'" ~:z ~~ '-I )> :z z '" ;;0 Vi - = o o g rr ~ N Q Q 00 II' w '" g z Attachment 5 z ~ o '1 I i" \i .C; Figure 7.10 Tanners Lake Proposed Redevelopment Plan Attachment 6 A " Building 1: Retail-9,OOOSq,Ft Building 2: Retail/Restaurant-5,OOOSq.FI. Building 3: Rft;liIIRfstallrant- 5,OOOS'l_Ft Building 4: lSloryRelail-14,OOOSq.Fl lStory(undos-28Units Building 5: lStoryOffice 16,0005'1. Ft. Building 6: Retail/Restaurant- 8,OOOSq,Ft Parking Provided: 278 Tanners Lake Redevelopment City of Oakdale, I.,AN j,.,,-cor62,joj) <""''''O'-OS''""k,\-,-",_,','', "':C"p" 7-25 MEMORANDUM TO: FROM: SUBJECT: DATE: Mark Jenkins, Business and Economic Development Commission Michael Martin, AICP, Planner 2010 Annual Report March14, 2011 INTRODUCTION Attached to this memo is the draft of the business and economic development's (BEDC) 2010 Annual Report. This is the BE DC's first annual report. This report will be produced every year and then forwarded on to the city council for its review of the BE DC's work throughout the previous year. DISCUSSION The format of the 2010 Annual Report is similar to other city commissions. Staff has included a section for 2011 activities. This was done with the intention of the BEDC having a discussion at its March 24, 2011 meeting to develop its goals for the upcoming year. Staff included the in- service training opportunities and the continued development of the economic development action plan as a starting point. Staff will be looking for feedback from the BEDC as to what it would like to accomplish in 2011. RECOMMENDATIONS Please review the attached draft 2010 Annual Report and come to the March 24, 2011 meeting prepared to discuss. Attachments: 1. 2010 BEDC Annual Report I Attachment 1 MEMORANDUM TO: FROM: SUBJECT: DATE: James Antonen, City Manager Mark Jenkins, Business and Economic Development Commission Chair Business and Economic Development Commission's 2010 Annual Report March 22, 2011 INTRODUCTION Annually the business and economic development commission (BEDC) is required to report the BE DC's actions and activities for the city council for the previous year. In 2010, the BEDC reviewed the following 17 items during its seven meetings: Type of Proposal Introductory Commission Reviews # Reviewed 6 1. Introductions and Goals (March 1, 2010) 2. Member Orientation and Commission Handbook (April 5, 2010) 3. Rules of Procedure (April 5, 2010) 4. Election of Officers (April 5, 2010) 5. Mission and Vision Statement (April 5, 2010) 6. May Maplewood Monthly Article (April 5, 2010) Business Retention Efforts 3 1. Business Retention Tour (March 1,2010, June 7, 2010, and August 2,2010) 2. Business Baseline Survey (March 2, 2010, June 7, 2010, and August 2,2010) 3. Maplewood Economic Development Action Plan (October 5, 2010) Economic Development Reviews and Actions 1 1. Fish Creek Estates, Review and Discuss Proposed Concept Plan and Related Costs and Recovery of Costs Phase I (June 7, 2010) Miscellaneous Reviews and Actions 3 1. Sign Ordinance Amendments (March 3, 2010, April 5, 2010, and May 3, 2010) 2. Economic Development City Website (April 5, 2010) 3. Capital Improvement Plan (June 7, 2010) Type of Proposal, continued # Reviewed Special Proiects and Presentations 4 1. Upcoming Public Works Projects (May 3, 2010) 2. 2030 Comprehensive Plan Vision (August 2,2010) 3. Saint Paul Area Chamber of Commerce (October 5, 2010) 4. Green Building Program, Nick Carver (November 1, 2010) Total 17 COMPARATIVE INFORMATION Year Number of Items Reviewed 2010 2011 17 N/A MEMBERSHIP The BEDC consists of seven members appointed by the city council. Membership terms are for two years, with extensions for additional terms approved by the city council. The current membership is as follows: Board Member Membership BeQan Term Expires David Hesley Mark Jenkins Christine Novak Shelly Strauss Beth Ulrich Warren Wessel (OPEN) 1/25/10 1/25/10 12/13/10 1/25/10 1/25/10 12/13/10 9/30/12 9/30/13 9/30/11 9/30/13 9/30/12 9/30/11 On January 25 2010, the city council appointed the seven inaugural members of the BEDC. At the October 5, 2010 BEDC meeting three resolutions of appreciation were acted up to recognize the efforts of Mark Koppen, David Sherrill and Laurie Van Dalen. Mr. Koppen resigned from the BEDC because of his election to the city council. Mr. Sherrill resigned because he moved out of state. Ms. Van Dalen resigned due to a job promotion. On December 25,2010, the city council appointed Christine Novak and Warren Wessel to two of the BE DC's open seats. Both Ms Novak and Mr. Wessel's seats will be up for reappointment in the fall of 2011. At the time of this report, the seventh BEDC position is still open. 2 DISCUSSION 2010 Actions/Activities In 2010, the city council made a commitment to development and redevelopment in the city of Maplewood by creating the BEDC. The BEDC began its work in March and many of the items worked on in 2010 were related to the formation of the commission itself and to establish itself in the Maplewood business community. One of the highlights of the BEDC's work was the business retention tour. Several commission members volunteered additional time to meet with business owners in Maplewood during normal working hours. Commission members and staff met with several businesses that ranged across all business sectors. The businesses included national chains and local businesses of various sizes. The commission found the tour very helpful in promoting the BE DC's work and by hearing directly from business leaders in Maplewood. The commission will continue this tour later in 2011 and will become a regular function of the commission. Another important piece the BEDC effort is working with staff to conduct a business survey. The initial stages of this survey are complete. The commission will be looking at and analyzing this data later in 2011. The intent of this survey is to provide a regular check-in with the same businesses to help gauge over time the business climate in Maplewood. This past year was an important first step in the city's efforts to be more involved with economic development and business retention in Maplewood. The BEDC looks forward to seeing additional projects come before its review as the economy picks up. The BEDC is also hopeful for additional funding opportunities in order to be more involved in the development process in Maplewood. The BEDC is committed to the health and vitality of the business community in Maplewood and looks forward to assisting in future efforts. 2011 Activities In addition to its design review duties, the BEDC lists these potential activities for 2011: 1. Continue having in-service training sessions for the BEDC. 2. Continue developing an economic development action plan. 3. Continue to meet with business leaders in the Maplewood community. CONCLUSION In 2011, the BEDC will continue its dedication to the development and enhancement of the business community in the city of Maplewood. RECOMMENDATION Approve the BE DC's 2010 annual report. P:\BEDC\Agenda Reports\2011\032411\Annual Report (2010) 3