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HomeMy WebLinkAbout2010-07-20 PC Packet AGENDA MAPLEWOODPLANNING COMMISSION Tuesday, July 20,2010 7:00 PM City Hall Council Chambers 1830 County Road BEast 1. Call to Order 2. RollCall 3. Approv~1 of Agenda 4. Approval of Minutes 5. Public Hearings a. 7:00 pm or Later: Vacations of Edgemont Street and the Alley to the East, North of Roselawn Avenue. Request by DeSoto Associates Limited Partnership LLP b. 7:00 pm or Later: Rezoning of the Vacant Parcel South of the New Horizon Building from R3 (multiple-family residential) to LBC (limited business commercial) c. 7:00 pm or Later: Rezoning of the Multi-Family Housing on Van Dyke Street from BC (business commercial) to R3 (multi-family residential) 6. New Business a. Tax-Increment Financing (TIF) Request for the Shores Senior Housing Development. (Consideration of this item is a joint review with the HRA.) 7. Unfinished Business 8. Visitor Presentations 9. Commission Presentations a. Commissioner Report: City Council Meeting of July 12, 2010: Commissioner Martin was scheduled to attend. The item for review was the Shores Senior Housing Development proposal. That item was postponed, however, so there were no PC items to consider. b. Upcoming City Council Meeting of July 26,2010: Commissioner Boeser is scheduled to attend. A possible item for review will be the rescheduling of the Shores Senior Housing proposal. 10. Staff Presentations a. August 3rd is National Night Out. Does the Planning Commission wish to meet? (no report) 11. Adjournment MEMORANDUM TO: FROM: SUBJECT: LOCATION: Votes Required: DATE: Jarnes Antonen, City Manager Torn Ekstrand, Senior Planner Vacations of Edgemont Street and Nearby Alley North side of Roselawn Avenue, East of McMenemy Street A super majority vote is required for approval July 13, 2010 INTRODUCTION Request The DeSoto Associates Lirnited Partnership LLP is requesting that the city council approve the vacation of the one-block-long portion of Edgemont Street north of Roselawn Avenue and the alley to the east. Refer to the attachments. Reason for the Request The applicant has two potential ideas for the development of this property if this street and alley are vacated. . One is to increase their lot width in order to build two single dwellings. Code requires that a single-dwelling lot be at least 75 feet in width. With the land gained by half of the street and half of the alley, the applicant would have a total of 158 feet of frontage for house sites. . Second is to incorporate these properties into a senior housing development like the nearby Rosoto Senior Apartments at Roselawn Avenue and DeSoto Street. To pursue this idea, the applicant would also need to gain land area by buying some of the abutting City of Maplewood property to the east. BACKGROUND May 24, 2004: The city council approved the Toenjes Hills Estates single-dwelling subdivision to the north of Edgemont Street. They also approved the vacation of the westerly half of Edgemont Street which abutted Toenjes Hills Estates. The easterly half would have accrued to the city and remained as a half-width right-of-way. Findings for Approval of a Right-Of-Way Vacation To vacate street and alley right-of-way, the city council must find that it is in the public interest. 1 DISCUSSION Comments from the Abutting Land Owner to the West The vacation of Edgemont Street would affect the lot to the west. That property owner, Kathleen Delaney, opposes the proposed street vacation since it would hinder the future development of her property. (Please refer to the letter from Mark Jacobson, Ms. Delaney's attorney.) Ms. Delaney has plans to eventually subdivide her property with single-dwelling lots like Toenjes Hills Estates to the north. This would require cooperation with the owner of the lot to the east, whether it is DeSoto Associates or a future owner. The applicant has considered this development option and feels that it is not financially feasible to build a cul-de-sac on the Edgemont Street alignment to gain two home sites more. Please refer to the applicant's breakdown for new street construction. The applicant is basing his calculations on the fact that, with the street and alley vacations, each owner could build two homes. The applicant makes a point that the cost of building a cul-de-sac to gain one more lot each would be too expensive to make it worthwhile, given that each home owner could have two home sites directly accessible from Roselawn Avenue without any street construction costs. Additional Comments from Neighbors Staff also heard from an abutting land owner to the north, David Li, and from Herb Toenjes, developer of the Toenjes Hills Estates plat to the north. Mr. Li wrote the followinq (also see his attached email transmittal): Given that no actual development plan has been provided, the City of Maplewood really has no basis for making a decision that benefits the community. It does not make sense to take action because of a non-specific proposal. Mr. Toenies states I am opposed to multi-family housing to the south of Toenjes Hills Estates should that be proposed. I have no problem with the vacation of Edgemont Street, but am opposed to rezoning for multi- family housing. Engineering Department Comments Steve Love, the assistant city engineer, has the following comments about the proposed vacations: . There is no sanitary sewer, storm sewer or water mains located within the Edgemont Street or the alley rights-of-way. . Currently, it is unknown if there are any private utilities located within the rights-of-way of Edgemont Street or the alley. If there are any private utilities, this would have to be determined and easements would be required. . This vacation request has the potential of land-locking the remaining half-width piece of Edgemont Street right-of-way to the north. 2 . There is storm sewer located in the Edgemont Street right-of-way north of the vacation-request portion of Edgemont. . Question: Would this vacation of Edgemont Street diminish the potential ability to develop the parcel to the west? Conclusion Staff cannot make the determination that it would be in the best interest of the public to vacate Edgemont Street. Vacating the alley is no issue, but by itself it would only gain the applicant ten more feet of lot width. RECOMMENDATION Deny the request by DeSoto Associates Limited Partnership LLP, for the vacation of Edgemont Street north of Roselawn Avenue and the alley to the east. Denial is based on the following findings: 1. It would not be in the public interest to approve the vacation of Edgemont Street since the abutting land owner to the west has future plans to utilize the Edgemont Street right-of-way for the development of her property. 2. The city council should consider these vacations when they would be part of a specific development proposal that may justify the vacation of these public rights-of-way. 3. The vacation of the alley would serve no purpose at this time and should be considered when the applicant has a specific development proposal for their property. 3 REFERENCE INFORMATION PLANNING Land Use Plan: Edgemont Street and the alley rights-of-way, and the areas abutting them, are planned LDR (low density residential). The exception is the land east of the alley which is planned as P (park). Zoning: Edgemont Street and the alley rights-of-way, and the areas abutting them, are zoned R1 (single dwelling residential). APPLICATION DATE The city received the complete application for this request on June 7, 2010. State law requires that the city take action within 60 days of receiving complete applications for a land use proposal. City council action is required on this proposal by August 6, 2010. Since the council will not review this request until August 9, 2010, at the soonest, staff has extended the review period an additional 60 days. The new deadline for city action is now October 5,2010. P:\sec17/Edgemont Street and Alley Vacation 7 10 te Attachments: 1. Land Use Plan Map 2. Zoning Map/Location Map 3. Applicant's Letter of Request 4. Applicant's Street Construction Cost Analysis 5. Letter from Mark Jacobsen 6. Email Transmittai from David Li 4 ~~ ~ ~~P.< ~~~ ~Q~i ~ ~II ~ u." 8 Attachment 1 J ~ c.. <C :JE c.. w CO en :2: ~ ::J Ql ~ ~ @ c u ~ G) <( U Ql ~ <( ~ z en Ql ~ ~ U Ql <( <C Cl. ~ Ql ;::) (/) u Cl. ~ ...J :t::: <( Ql (/) Cl. C ~ :t::: ~ Ql c (/) "C Cl. ~ :t::: l!) C C (/) ~ ~ ~ :t::: C 0 0 Q) ~ , - CO l!) ~ ~ ~ <D l!) U <Do ....J o~ , N <( "-0 ~ '" ::::-CD ~ '" <Il , CD ~ Ql ~ ~ Cl. :;:: CD 0 c m ~ (/) Ql N :;:: ~ :t::: ::J -0 ~ c c 'w <Il Ql <Il ~ >- ..... Ql :;:: -0 :;:: ::J 0:: c 'w c 0 W Ql >>~ Ql -0 ~ ....l u... - .- 0:: 'w (") o....l(/) 'w (/) >> Ql w<(z 0 c Ql - 0:: 0 (/)00 '" . Ql 0:: 'w ....- 0 c >>CD - Ql ozi= ~ .2:- Ql - ~ <Il c m u G) :;: 'w 0 'w Ql 'u Ql <Il 0..<(<( c (/) E c Cl. Ol-U 0 c ~ <Il 0 "C E Ql ~ Ql (J) II> O::W<( -' Ql 'c c :;:: ~"C - 0 ::l 0 -0 E - ~ ::l C Ql 0 o..w> (/) Ql .- m '5 .J:: Ql E - -'" Ql _ 00 0::: en ~ :;: Ol ,~ ::l > :;:: ~ ~ -E c; ::l Ql 0 -0 0 (/) <Il Cl. I- ~ 0 2 2 U c <.9 c [L 0 ON 0:: -' I """' (Jl L... D III I .:::N ""~ CO '(fi ~ 0 a.. Z-"l Z <Oil( c'l PROPOSED 0 STREET AND ALLEY VACATIONS 2dli2 f2001 197i':J~ 1967 .~r 1961 \UJ 17 j n r- ~1 ~ <>: n 0 '''3 ~ D "' Dc M SE:.lLWOOD AVE @l5 @)71 SKILLMAN AVE b~ o o ~ M Ef7 r- :: (j) r- [1g19 a a: fl ~ ~11O::: <>: VERNON AVE r- "' >- '" w z w '" u '" f 1870 186.0 r1 RIPLEY AVE D 1770 ~ I r- "' " a: :S u DU7'3 on oC;] ;; ~1855 o clflTh 1835 D ;; CJ 'II bdJ~~ . D l:J [] l7'f'1 ZONING MAP J LOCATION MAP t 2 Edgerton Park f in i2 o '" w o ''Ei 19i;J o o o o o o o[? m 51 :il ~ ~ ~o o :ill] 00 o ~ f D '~ 1843 1860 DeSoto Associates Limited Partnership LLP 95 South Owasso Blvd, W. Little Canada, MN 55117 Attachment 3 651.484.0070 Fax 651.486,3444 Public Vacation Application requirement #1 Vacate Edgemont St and alley easterly of Edgemont St Replat existing forty foot (40') lots to two (2) lots facing Roselawn Avenue If Edgemont St and alley are vacated, and additional land is acquired, a senior housing project will be explored for this site, The C05t to build Edgemont St, to add more lots, is more expensive than the value of the extra lot5 created. May 17, 2010 New street 7 lots No street 4 lots Gain 3 lots New street, etc, Grading $114,391 $122,840 $227,231.00 Engineering $18,900,00 Testing, wetland, city (est) $12,100,00 Gain 3 lots Selling costs Net Value $258,231,00 $240,000,00 $24,000,00 ($216,000,00) Net Loss After Street Cost ($42,231,00) APPLICANT'S STREET CONSTRUCTION COST ANALYSIS Attachment 4 Attachment 5 LEONARD STREET AND DEINARD ISO SOUTH FIFTH STREET SUITE 2300 MINNEAPOLIS1 MINNESOTA 55402- 6I2-335~I500 MAIN 612-335-1657 FAX MARK E. JACOBSON 612-335-1450 DIRECT MARK.JACOBSON@LEONARD.COM June 14,2010 Mr. Tom' Ekstrand, Senior Planner City of Maplewood Office of Community Development 1830 County Road BEast Maplewood, MN 55109 Re: Proposal to Vacate Edgemont Street Right-of-Way and Alley to the East of Edgemont Sh'eet Dear Mr. Ekstrand: You wrote a letter to Kathleen Delaney on June 11 regarding the above referenced proposal to vacate the Edgemont Street right-of-way and alley to the east. You requested Ms, Delaney's opinion on the proposal by DeSoto Associates to vacate undeveloped Edgemont Street north of Roselawn Avenue and the alley to the east ofEdgemoht Street. Out Firm represents Kathleen Delaney, Please direct all future communications regarding this matter (or copies of any such communications) to the undersigned. Ms, Delaney will strongly oppose the proposal by DeSoto Associates to vacate the undeveloped Edgemont Street north of Roselawn Avenue and the alley to the east of Edgemont Street. Both the proposal to vacate this right-of-way property and alley as well as the plans by DeSoto Associates to develop the property which is sitnated immediately east ofMs, Delaney's property for purposes of senior housing would have an extremely deleterious effect on the value of Ms, Delaney's property, At the present time, Ms. Delany's propeliy has the potential for being developed for the construction of up to three single family residences using the portion of Edgemont Street, which is proposed to be vacated, as access to those residential propeliies, If this street were to be vacated, that would restrict access to Ms, Delaney's property exclusively from Roselawn A venue, leaving the property developable only for one single residential construction. Moreover, Ms, Delaney's property and the property immediately to the east of her property, which DeSoto Associates proposes to develop, is currently zoned low density for 2,6 to 6 units per acre (i,e, single family, detached townhouse and/or duplex construction), In fact, most of the properties surrounding Ms, Delaney's propeliy in viliually every direction (other than the church property immediately to the south) are similarly zoned for single family, detached townhouse and/or duplex construction, Development of high density senior housing property on the property to theeast ofMs, Delaney's property as proposed byDeSoto Associates 6972536vl LAW OFFICES IN MINNEAPOLIS. MANKATO . ST. CLOUD. WASHINGTON, D.C. A Professional Association WWW.LEONARD.CQM June 14, 2010 Page 2 would require rezoning as well a change in the Maplewood Comprehensive Plan, Ms, Delaney will strenuously oppose any such zoning change or change in the comprehensive plan, and she will enlist the suppOli of the residential property owners surrounding these properties for similar support in opposition to the proposed development by DeSoto Associates. I would be happy to discuss with you any proposed recommendation that you would be preparing to submit to the Planning Commission and the City Counsel. I will also appreciate receiving notice of any public hearing by the Planning Commission and/or the City Council on this propo~ed vacation of the Edgemont Street right-of-way and the alley to the east as well as any proposed development of the property to the east ofMs, Delaney's property for high density residential purposes, Thank you for your consideration, Sincerely, LEONARD, STREET AND DEINARD Professional Association ~,~ /beh cc: Duane Konewko, Community Development Director Kathleen R, Delaney 6972536v I ~~.<> Attachment 6 , . Together *' Can. June 11,.2010' . D~vid Li 364-Toenjes Place 'Maplewood MN 55117 PROPOSAL TQVACA TE 'THE EQGEMONT STREET RIGHT-OF-WAY AND THE ALLEY TO THE EAST . T!1isletter is to get your opinion on a proposal by DeSoto Associates to' vacate undeveljJj:led Epgemont StrElet north of Roselawn Avenue and the alley to the e?st of Edgemont street, The,applicantwistles.,tovacate these rights-of-way to gain (otwidth to potentially either build homes on the north side of Roselawil Avenue or to possibly gain <lQditional property to build a senior housing development, Refer to the attachments. I would like Y9ur' opinion to help me prepare a recommendatiC?n to the planning commisSion and . city council. Please write your opinion and comments below and return this letter and any .attachments on which you have written commerits by June~, 2010, - . . ~ If you would like'further information, please ca"1I me at 651-249~2302 between 8 a,m, and 4:30 p,m, You .can also email meattom.ekStrand@ci.mapjewood.mn.us.. I will send you notices 9f the public hearing on this requesf when it is scheduled, ThanK you for your comments. 1 will give them ca"reful consideration, . I ~tiwL TOM EKSTRAND - SENIOR PLANNER I have ho, comments: . Comments: .d - Tl>M t+. w..; vu-' M'u. I.. '"" cter<4 '~t '1i\o-cr"M"rlI'~ ~.i-h' ! J MI"" -.-.....- . ',( .m.t- d@ "'\ i ~~oc..r"'+R..< ~pos...1 ".. V"'tU"i:t~ fu i;:"d'P.-w<!Wi\+t-u.:r-' e..~.A/i--f?- Wa.<1 ' . G,;~;" ~ M. ~. ,Lev-erof'~ pw",.../'I(.l.) b4 p~fi ~ e.~ &f ~t<!~ M~ kt-$ "'" pt<.Sr! fiy f1',...Ii:.<AJ It.. kdJ;">fIV -f.-wf ~-t.J rM C61','-.........:.,~ ' . ~t-&~~ ""t-~~ P ~,tJt.t-tr""" ~{;<.. *~ ~-s~~.c fIl"4''If~,. PftM.t..f.et1M--' ~ ~ ~ Mt-'rl"q w;(( ~ pb<<. . ~1lV~~J . . . r \f>.ufiJ C It {'/.-d 1'> . . OFFICE: ,OF CoMMUNITY DEVELOPMENT 65 r -249-2300 CITY OF MAPLEWOOP ,. 830 COUNTY ROAD B EAST FAX,651-249-2319 . MAPLE WOOD, MN 551 09 MEMORANDUM SUBJECT: James Antonen, City Manager Michael Martin, AICP, Planner DuWayne Konewko, Community Development and Parks Director Rezoning of the Vacant Parcel south of the New Horizon Building from R3 (multi-family residential) to LBC (limited business commercial) West side of Van Dyke Street, south of Castle Avenue Simple Majority Required for Approval July 12, 2010 TO: FROM: LOCATION: VOTE REQUIRED: DATE: INTRODUCTION On January 25, 2010, the city council adopted the 2030 Comprehensive Plan. This is the update of the city's comprehensive land use plan required of all metro area cities every ten years, By approving this plan, the city council reestablished the long-range land use guide for the city. State law requires that the city now revise our zoning map and zoning ordinance controls to be in conformance with the newly approved land use classifications throughout the city. The city has nine months (by October 25, 2010) to make all necessary zoning map and zoning ordinance changes to coincide with the land use policies and land use maps in the approved 2030 Comprehensive Plan, Proposal One such rezoning would be for the undeveloped property located on the west side of Van Dyke Street, south of the New Horizon Child Care building, Currently, this parcel is used as a playground for the child care facility. The reason for this rezoning is to bring the zoning of this property into conformance with the C (commercial) comprehensive land use plan designation specified in the city's comprehensive land use plan, This property is currently zoned R3 (multi- family residential), The R3 zoning must be changed to LBC (limited business commercial) to be consistent with the commercial comprehensive land use plan designation. Please refer to the attached maps. Request Rezone the above property from R3 to LBC. BACKGROUND On December 9, 2009, the Metropolitan Council gave final approval to the 2030 Comprehensive Plan, On January 25, 2010, the city council adopted the 2030 Comprehensive Plan, DISCUSSION Statutory Requirement Section 473,865 subdivision 3 of the Minnesota State Statutes requires that cities amend their official zoning controls within nine months of their adopting their revised comprehensive land use plan. As stated above, the city council has until October 25, 2010 to amend all applicable zoning maps and zoning ordinances, Why thCil Proposed Revision to Limited Business Commercial? During the city council's review of the 2030 Comprehensive Plan update, staff reviewed the zoning map looking for inconsistencies with the comprehensive plan and this site was identified. The 2030 Comprehensive Plan guides this site as C and the zoning needs to match this designation. The limited business commercial zoning district will bring the parcel into compliance with the comprehensive plan as well as match the current zoning on the parcel that holds the New Horizon's building just to the north, This rezoning is a result of the efforts by staff and the planning commission to ensure zoning matches the comprehensive plan throughout the city. This request is not associated with any development proposals, Property Tax Impact Property owners have asked what would happen to their property taxes if their zoning changed. The Ramsey County Tax Assessor's office stated that: "Zoning has no affect on property tax, Tax classifications are based on the current use of the property, not on the zoning, The tax classification, along with the market value is used to calculate taxes, If the current use is continued, the tax classification will not change, So, zoning changes will not affect taxes," Conclusion State statute requires that the city revise the zoning map to LBC to match the adopted C classification on the comprehensive plan, Therefore, staff is recommending the city council revise the zoning map accordingly, RECOMMENDATION Approve the rezoning of the vacant, playground property along with the west side of Van Dyke Street, from R3 (multiple dwelling residential) to LBC (limited business commercial). This rezoning is based on Minnesota Statute 473,865 subdivision 3, requiring the city to bring the zoning of these properties into conformance with the adopted comprehensive land use plan classification, REFERENCE SITE DESCRIPTION Site Size: 0.42 acres Existing Uses: Vacant, playground SURROUNDING LAND USES North: New Horizon Child Care Center South: Multi-Family Housing East: Single Family Dwellings West: Commercial properties fronting White Bear Avenue PLANNING Land Use Plan Designation: Commercial Zoning: Current: R3; Proposed: LBC p:Compplanlzoning follow-up to 2030 Planlrezoning to LBC NewHorizon_PC_071210 Attachments: 1. Land Use Map 2. Zoning Map 3. Rezoning Resolution ~~ ~ ~~ ~ ~~~ ~Q~~ o fII\ II ~ 5." ~ c.. co :2: G) en ;::) "C C co ....J ~ ::J ..... ::J u... I C) C .- C o N CD a:: c o N .- L... o :c ~ z Attachment 1 .LS13Zl/H u r Iii .~ <D E E o () "C Q) "C '" " ~~-I ~ Q ~ 0 ~ ~ ~ ~ ~ ~ 0 Ql ~ 0 .... Ql U ~ ~ <( u @ ~ <( Ql ~ ~ ~ Cl. Ql (/) U Cl. .... :t::: <( (/) Ql c ~ :t::: Cl. ~ Ql c (/) Cl. ~ :t::: l!) C (/) 0 ~ ~ :t::: , C 0 ~ Q) l!) ~ ~ l!) ~ u 0 0 N <( ~ CD ~ .... tii CD ~ Ql :;:: ~ Cl. CD 0 c tii ~ (/) Ql N :;:: ~ :t::: -0 ~ C c 'in <Il Ql Cii ~ Ql :;:: -0 :;:: 0:: c 'in c 0 Ql ~ Ql Ql -0 ~ :'Q 0:: 'in (") (/) (/) .2:- Ql c Ql 0:: 0 Ql 0:: 'in ~ 0 .2:- c >> Cii - Ql Ql - c Cii u :;: 'in 0 'in Ql 'u Ql c <Il 0 c c (/) ~ <Il E 0 Cl. E Q) ~ Ql (J) "' -' Ql '': c :;:: ~"O 0 E - ~ :::, 0 ,2 -0 (/) Ql ::l C Ql 0 - -'" <Il -0 .J:: Ql E ::l > :;:: Ql _ 0 ~ :;: ,~ ~ ~~ ::l Ql ,Ql 0 -0 0 (/) <Il Cl. 0 0:: 0 2 I 2 () c <.9 c [L 0 ;; -' "" N 00 I 101 0 ..<: ~ "'~ Z <Oil( 'a; w ~ Z-=l New Horizon Rezoning Attachment 2 -~ ~- -~----- -...... "'"'--, ""~"".\." ' .. /,./ ""<" // ",. """'-," / " -?.,/",,^~ / Proposed to rezone entire parcel to LBC r1 IdU r1 Co L J:J 0" ~ a q " [J YJ ~~ T ;;VlltrTl'~O~I)'" cili ~ ~ [ [] 0 . c, f nO n " OJ ~La.-, I n Attachment 3 REZONING RESOLUTION WHEREAS, the City of Maplewood city staff proposed a change to the city's zoning map from R3 (multiple dwelling residential) to LBC (limited business commercial); WHEREAS, this zoning map change applies to the vacant, playground property located on the west side of Van Dyke Street, south of Castle Avenue. The property identification number identifying the affected property is: PIN 11-29-22-33-006 WHEREAS, On January 25,2010, the city council adopted the 2030 Comprehensive Plan that classified the land use plan for the above referenced properties to C, WHEREAS, Section 473.865 subdivision 3 of the Minnesota State Statutes requires that cities amend their official zoning map within nine months of their adopting their revised comprehensive land use plan to match the new land use classification. WHEREAS, the history of this change is as follows: 1. On July 20, 2010, the planning commission held a public hearing to consider this rezoning. The city staff published a hearing notice in the Maplewood Review and sent notices to the surrounding property owners, The planning commission gave everyone at the hearing a chance to speak and present written statements prior to their recommendation, 2. On , 2010, the city council discussed the proposed zoning map change, They considered reports and recommendations from the planning commission and city staff, NOW, THEREFORE, BE IT RESOLVED that the city council the above- described change in the zoning map based on Minnesota Statute 473.865 subdivision 3, requiring the city to bring the zoning of this property into conformance with the adopted comprehensive land use plan classification. The Maplewood City Council this resolution on ,2010. MEMORANDUM TO: FROM: James Antonen, City Manager Michael Martin, AICP, Planner DuWayne Konewko, Community Development and Parks Director Rezoning of the Multi-Family Housing on Van Dyke Street from BC (business commercial) to R3 (multi-family residential) West side of Van Dyke Street, north of County Road BEast Simple Majority Required for Approval July 12, 2010 SUBJECT: LOCATION: VOTE REQUIRED: DATE:' INTRODUCTION On January 25, 2010, the city council adopted the 2030 Comprehensive Plan. This is the update of the city's comprehensive land use plan required of all metro area cities every ten years. By approving this plan, the city council reestablished the long-range land use guide for the city. State law requires that the city now revise our zoning map and zoning ordinance controls to be in conformance with the newly approved land use classifications throughout the city, The city has nine months (by October 25, 2010) to make all necessary zoning map and zoning ordinance changes to coincide with the land use pOlicies and land use maps in the approved 2030 Comprehensive Plan. Proposal One such rezoning would be for the developed properties located on the west side of Van Dyke Street. These parcels are developed as multi-family housing, The reason for this rezoning is to bring the zoning of these properties into conformance with the MDR (Medium Density Residential) comprehensive land use plan designation specified in the city's comprehensive land use plan. These properties are currently split zoned BC (business commercial district) on the west half and R3 (multi-family residential) on the east half. The BC zoning must be changed to R3 (multiple dwelling residential) to be consistent with the medium density residential comprehensive land use plan designation, The R3 zoning classification is equivalent to MDR land use plan designation, Please refer to the attached maps, Request Rezone the above property from BC to R3, BACKGROUND On December 9, 2009, the Metropolitan Council gave final approval to the 2030 Comprehensive Plan. On January 25,2010, the city council adopted the 2030 Comprehensive Plan, DISCUSSION Statutory Requirement Section 473.865 subdivision 3 of the Minnesota State Statutes requires that cities amend their official zoning controls within nine months of their adopting their revised comprehensive land use plan. As stated above, the city council has until October 25, 2010 to amend all applicable zoning maps and zoning ordinances. Why thlil Proposed Revision to MUltiple Dwelling? During the city council's review of the 2030 Comprehensive Plan update, staff reviewed the zoning map looking for inconsistencies with the comprehensive plan and these sites were identified, The 2030 Comprehensive Plan guides the entire parcels as MDR and the zoning needs to match this designation, The west half of the parcels are zoned BC which is not consistent with the comprehensive plan, This rezoning is a result of the efforts by staff and the planning commission to ensure zoning matches the comprehensive plan throughout the city. This request is not associated with any development proposals. Property Tax Impact Property owners have asked what would happen to their property taxes if their zoning changed, The Ramsey County Tax Assessor's office stated that: "Zoning has no affect on property tax, Tax classifications are based on the current use of the property, not on the zoning. The tax classification, along with the market value is used to calculate taxes. If the current use is continued, the tax classification will not change, So, zoning changes will not affect taxes." Conclusion State statute requires that the city revise the zoning map to R3 to match the adopted MDR classification on the comprehensive plan. Therefore, staff is recommending the city council revise the zoning map accordingly, RECOMMENDATION Approve the rezoning of the multi-family properties along with the west side of Van Dyke Street, north of County Road B East from BC (business commercial) to R3 (multiple dwelling residential), This rezoning is based on Minnesota Statute 473.865 subdivision 3, requiring the city to bring the zoning of these properties into conformance with the adopted comprehensive land use plan classification, REFERENCE SITE DESCRIPTION Site Size: 5.82 acres (two parcels) Existing Uses: Multi-family housing SURROUNDING LAND USES North: New Horizon Child Care Center South: County Road B East and City of Maplewood Campus East: Single Family Dwellings West: Commercial properties fronting White Bear Avenue PLANNING Land Use Plan Designation: Medium Density Residential Zoning: Current: BC and R3; Proposed: R3 p:Compplanlzoning follow-up to 2030 Planlrezoning to R3 VanDykeMultiFamiiv-PC_071210 Attachments: 1. Land Use Map 2. Zoning Map 3. Rezoning Resolution Attachment 1 ~~ ~ ~~r>.; ~~~ ~~ ~ ~~ ~ ~fI\lI ~ u'" g 13ZlfH m '" C <D "C 'iij w 0:: i?> 'iij C <D o E :J '0 <D ::;; "C <D "C '5 C> I m C) q ~ 0 ~ C ~ '3 .- ~ 0 c: Ql ~ 0 ~ Ql 0 ~ ..... ~ u @ ~ <( N Ql ~ ~ @ ~ Q) Cl. Ql (/) U Cl. ~ :t::: <( Ql a:: (/) Cl. C ~ :t::: ~ Ql c (/) Cl. ~ :t::: ~ l!) c (/) 0 ::> c.. ~ :t::: - , c 0 0 ~ .- m ~ ~ Ql E l!) LCi ~ u 00 , N <( ~ :::--0 ~ ..... m <Il , CD ~ Ql :;:: ~ Cl. u... G) c CD Cii 0 ~ (/) Ql N :;:: ~ :t::: I en -0 ~ C C -- 'in <Il Ql Cii ~ ..... ;::) Ql :;:: -0 :;:: - 0:: c 'in c 0 Ql ::J >>~ Ql -0 ~ 0:: (") :2: "C - ,- 'in ,- (/) (/) Ql .2:- Ql 0 c: a; 0:: 'in 0:: cO 0 c z;. - Ql G) m >> ~ iii c - Ql 'in iii u :;: 'in 0 Ql 'C::; (I) c <Il ~ ....J 0 c c (/) ~ Cii E 0 Cl. -' E Ql ~ Ql (J) "' ~ Ql 0 E 'c c :;:: ~'U - 0 ::l -0 - ..... ::l ~ (/) Ql c Ql 0 Cii .J:: Ql E - -'" _0 0 ~ :;: -0 ,~ ::l > :;:: ~ Ql ~-E ::l 0 Ql ,21 0 -0 0 (/) <Il Cl. 0:: 2 I 2 u c <.9 c [L 0 0;'< ::J -' -"~ C 00 I 101 0 J: . ..... <n:<J Z <Oil( '(ii m ~ ::J c Z-'l u... i~ I Van Dyke Multi-Family Rezoning Attachment 2 ~- -------- -, ....., ""'......,,, "'\.. // '-" / ~ / ""'~/ ~/ / ,.,.,.-./ Proposed to rezone entire parcels to R3 ~ a q 0 [] qJ ~~ ~ ':;Q.:"n""..Wl ~La.., I n ~ [ o ['.n Attachment 3 REZONING RESOLUTION WHEREAS, the City of Maplewood city staff proposed a change to the city's zoning map from BC (business commercial) to R3 (multiple dwelling residential); WHEREAS, this zoning map change applies to the multi-family properties located on the west side of Van Dyke Street, north of County Road B East. The property identification numbers identifying the affected property are: PIN 11-29-22-33-0054 and PIN 11-29-22-33-0056 WHEREAS, On January 25,2010, the city council adopted the 2030 Comprehensive Plan that classified the land use plan for the above referenced properties to MDR. WHEREAS, Section 473,865 subdivision 3 of the Minnesota State Statutes requires that cities amend their official zoning map within nine months of their adopting their revised comprehensive land use plan to match the new land use classification. WHEREAS, the history of this change is as follows: 1, On July 20, 2010, the planning commission held a public hearing to consider this rezoning. The city staff published a hearing notice in the Maplewood Review and sent notices to the surrounding property owners, The planning commission gave everyone at the hearing a chance to speak and present written statements prior to their recommendation, 2, On , 2010, the city council discussed the proposed zoning map change. They considered reports and recommendations from the planning commission and city staff, NOW, THEREFORE, BE IT RESOLVED that the city council the above- described change in the zoning map based on Minnesota Statute 473.865 subdivision 3, requiring the city to bring the zoning of this property into conformance with the adopted comprehensive land use plan classification, The Maplewood City Council this resolution on ,2010, MEMORANDUM LOCATION: DATE: James Antonen, City Manager DuWayne Konewko, Community Development and Parks Director The Shores at Lake Phalen-Tax Increment Financing Request Link Wilson of Kaas Wilson Architects, representing the owners and developers, Jack Rajchenbach and Albert Miller of Maplewood Senior Living, LLC 940 Frost Avenue July 14, 2010 TO: FROM: SUBJECT: APPLICANTS: INTRODUCTION Project Description Jack Rajchenbach and Albert Miller of Maplewood Senior Living, LLC are proposing to redevelop the 7.02 acre former St. Paul Tourist Cabin site (940 Frost Avenue) with a senior housing development to be called The Shores at Lake Phalen. The development will consist of 105 units of senior housing in a three-story building with underground parking. The Shores at Lake Phalen development would be the first redevelopment project within the Gladstone Neighborhood Redevelopment area, This building would be 85,894 square feet in area. There would be 32 memory care apartments with secure common areas for people with light dementia. There will be 73 assisted living units with kitchens in each apartment. City council review is pending for the following issues: 1. A conditional use permit for a planned unit development. 2. Wetland buffer variance 3. Lot division 4. Design review approval Request The applicant's are requesting approval of tax increment financing (TIF) for this project. Please refer to the attached report by Springsted Incorporated who evaluated this proposal for the city, PISec161St Paul Tourist Cabin SitelMay24, 2010 SubmittallShores TIF cover memo Maplewood, Minnesota Ta,x Increment Financing Plan for Tax Increment Financing District No. 1-10 Within Development (The Shores of Maplewood Prepared by: SPRINGSTED INCORPORATED 380 Jackson Street, Suite 300 St. Paul, MN 55101-2887 (651) 223-3000 TABLE OF CONTENTS Section A. B. C, D, E, F. G. H. I. J, K. L. M, N. 0, P. Q. R. S. T. U. V. W X. Y. Z. AA. AB, Definitions...,..,.."..".."..,..............,...".",.......,...,."..........,.",."..".,......,.,..,..".",."."..".., ,."."."..,...,.,..".". Statutory Authorization"..............,..,...".,.........,.",.".........".",.".,.,........,.,.".",."..".,.."."..,.",.,...... ,.".".", Statement of Need and Public Purpose Statement of Objectives Designation of Tax Increment Financing District as a Housing District Duration of the TIF District Property to be Included in the TIF District Property to be Acquired in the TIF Specific Development Expected to Occur Within the TIF Findings and Need for Tax Increment Estimated Public Costs Estimated Sources of Revenue Estimated Amount of Bonded Original Net Tax Capacity Original Tax Capacity Rate Projected Retained Captured Net Tax Use ofTax Excess Tax Tax Increment Limitation on Limitation on Rule...........,......................................... Financial Plan.,..........,..",."..,..............,...".,...,."."."..,..,...,.".",.,..", Financing Plan"..,..".........",.".",.".",.",..,........,..".",.".,.."."."....", e Req uirements.....,..".."."..........,..",.".",.".",.".......,...,...,."..,."..,....., Map of the Tax I1g District....................................................................................... Assumptions Report Projected Tax Increment Report ......................................................................................................... Estimated Impact on Other Taxing Jurisdictions Report...................................................................... Market Value Analysis Report..........."..,...".,.....,..,."...........",.".",.,......",.."..".",.".",.,.........,..,.",.". Projected Pay-Go Note Report.....,..".."..,.........,.,.."........,.",.,..".......,.",.".",..,.,.".,........."."..,..,.",." PaGers) 1 1 1 1 1 2 2 3 3 3 4 5 5 5 6 6 7 7 8 8 8 8 9 10 10 10 10 11 EXHIBIT I EXHIBIT II EXHIBiT III EXHIBIT IV EXHIBIT V EXHIBIT VI City of Map/ewood Minnesota Section A Definitions The terms defined in this section have the meanings given herein, unless the context in which they are used indicates a different meaning: "Citv" means the City of Maplewood, Minnesota; also referred to as a "Municipalitv", "City Council" means the City Council of the City of Maplewood; also referred to as the "Governinq Bodv". "Countv" means Ramsey County, Minnesota, is described in the "DeveloP.ment District" means Municipal Development District No.1 corresponding Development Program. "Development Proqram" means the Development Program for the "Proiect Area" means the geographic area of the Development "School District" means Independent School District No. "State" means the State of Minnesota, "TIF Act" means Minnesota Statutes, "TIF District" means Tax Increment Financing "TIF Plan" means the tax increment Section B District. See the Development District. See Section 1,5 for the Development District. Section E of Tax Increment Financing District as a District Housing districts are a type of tax increment financing district which consists of a project intended for occupancy, in part, by persons or families of low and moderate income. Low and moderate income is defined in federal, state, and municipal legislation, A project does not qualify if the square footage of the improvements, constructed for uses other than low and moderate income housing are more than 20% of the total square footage of all the planned Improvements. In addition, housing districts are subject to various income limitations and requirements for residential property, For owner occupied residential property, 95% of the housing units must be initially purchased and occupied by individuals whose family income is iess than or equal to the income requirements for qualified mortgage bond projects under SPRINGSTED Page 1 City of Maplewood Minnesota section 143(f) of the Internal Revenue Code, For residential rental property, the property must satisfy the income requirements for a qualified residential rental project as defined in section 142(d) of the Internal Revenue Code, The TIF District meets the above qualifications for these reasons: 1. The planned improvements consist of the following: a, 162 senior rental units, for which one of the following will apply: o at least 20% (32 units) of the rental units will be occupied by 50% of county median income, with incomes no greater than o at least 40% (65 units) of the rental units will be occupied 60% of county median income, s with incomes no greater than 2. No improvements are planned other than housing, 3. The City will require in the development apply to at least the initial buyers; and will duration of the TIF District. for all units for the the cost of housing projects as defined projects and the allocated administrative Section F Duration of the TIF District Housing districts may remain in existence 25 years anticipates that the TIF District will remain in existence the year 2038). Modifications of this pia Section taxes payable in the year the TIF Di . Section 469.175 subdivision 1 (b), the Aut Included in the TIF District of of the first tax increment. The City duration allowed by law (projected to be through not extend these limitations. All tax increments from to the Authority, Pursuant to MN Statutes, of first increment until 2013 6,16'agi~.area of land located within the Project Area, A map showing the in Exhibfll. The boundaries and area encompassed by the TIF District are LeGal Description Existing Legal Description: That part of Government Lot 2, Sec. 16, T. 29, R. 22, Ramsey County, Minnesota which lies S' of Frost Avenue as described in Document NO.1 999021, W' of Frost Avenue Connection as described in Document No. 1999021, N' of East Shore Drive as described in Document No. 367903, and NE' of a line described as commencing at the center of said Section 16, thence S 89 degrees 32 minutes 38 seconds W, assumed bearing, along the N line of said Government Lot 2, 1130.00 feet, to the point of beginning: thence South 27 degrees 23 minutes 03 seconds East, 1121.18 feet to an angle in the north line of said East Shore Drive, said angle point being 658.66 SPRINGSTED Page 2 City of Maplewood Minnesota feet westerly of the East line of said government lot 2 as measured along the N line of said East Shore Drive and said line there terminating. * The area encompassed by the TIF District shall also include all street or utility right-of-ways located upon or adjacent to the property described above. *The property is in the process of being replatted. The PID and legal description are representative of the property prior to the re-platting. Section 1;1 Property to be Acquired in the TIF District However, the City does not The City may acquire and sell any or all of the property located within anticipate acquiring any such property at this time. Section I .. Specific Development Expected to Occur,Y!lit~iri the TIF District The proposed development is expected to be constructedXl~RtW? phases..~.m~~e 1 will senior housing facility including 74 assisted living and 32 memory car1'ypits, ~q~~\3:2 will add an units to the project, though it has not yet been determined the split between~~Ti'T1~9.;living and memory care units for phase 2, The total number of units created by both phaT~~dT162, The deveI08[1')~nt will also include common areas including two dining rooms, a beauty shop and spa, a clllPf08mic!llibrary, compiJ!~r..genter, craft room and an exercise/fitness room, ,......:....'.... ....:..".:.:,.:"::::..: :'.',' ,',',',',::::',.:. ..,....,.,..,..:.::.::.:,.,:.:.',.._. <'.i),','i:":. '<:".,:. -':,:::'''',''',''''-''" ',".:-'-:," ':,':::;::;,'::,. :'.::':i/:,:',::\:;:-::::i',',,;,. ""\'):'i',:,,:\, The City anticipates using tax increment to finance a portion of \h(J .Iand aCquisition, special assessments, public utility, site improvement and other eligible improvements associated with the development, as well as related administrative expenses and pooling for affordable housing: In establishing Siii':F "'::". pr~p~feg there were no signed construction contracts with regards to the above At the Section J Tax Increment Financing makes the following findings: (1) qualifies as a housing district; See Section E of this document for the reasons and facts supporting this finding. (2) The proposed development, in the opinion of the City, would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future. The proposed development is a senior rental housing project consisting of up to 162 assisted living, memory care and independent living units in the City of Maplewood. The City has reviewed information submitted by the proposed developer, showing that the cost of providing low to moderate income housing makes the proposed development infeasible without public financial assistance. Without the improvements the City has no reason to expect that significant development of this type would occur without assistance similar to that provided in this plan, SPRINGSTED Page 3 City of Maplewood, Minnesota Therefore the City has no reason to believe the development would occur but-for tax increment assistance, The increased market value of the site that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in market value estimated to result from the proposed development after subtracting the present vaiue of the projected tax increments for the maximum duration of the TIF District permitted by the TIF Plan: Without the improvements the City has no reason to expect that significant redevelopment would occur without assistance similar to that provided in this plan, Therefore, the City concludes as follows: a, The City's estimate of the amount by which the ma without the use of tax increment financing is $0 (ex ' appreciation of land value), . alue of the site will increase or a small amount for annual '.'.""''''''..,''''.''''';'''''.'''' .'-'.,'.'i'.;.':,'.',.-.....':,,".'_,_,:.,i. b. If all development which is proposed to be assisted with tax,increment were to occur in the District, the total increase in market value would be approximately $27,849,945, ....:.i}_',:,',. ':>',',-',;"", "',:!':,."...", ""i...:",:: -:\-\' ';:"""';',:. c, The present value of tax increments from the District for the maxi um duration of the district permitted by the TIF Plan is estimated to be $2,518,057, (See Exhi I) """':':":':". ::"""".'.'",,:., ,',",::.,.:..::,',<. ':',:',',',',',:",',',:.':.:.':. 'i':,' ':_. '" ,.::..;",,:,:;,; ""':"':':';::::"';'" :,:':'::_:::i:i'..:.:'" d, Even if some development other than the proposed development were to occur, the Council finds that no alternative would occur that would produce a market value increase greater than $25,331,888 (the amount in clause b less the amounts in clauses a and c) without tax increment assistance, ':i.',_':' ""::'.:,'.'.ii'" i,XV.:.,;, '-::.':':"" -.-:,..:,.,...."..,..:::.....:.,... ",'::-:'.',',::::".' The comparative analysis outlined above of the estimated market values both with and witho . blishment of the TIF District and. the use of tax increments assumes no dev t will occur on the site because of, 'the extraordinary costs associated with con ructing affordable housing units. We assume the estimated market value without creation of the District would only increase at most by an incremental inflationary amount. The increase in estimated market value of the proposed development (Jess the indicated subtractions) exceeds the estimated market value of the site absent the establishment of the TIP District and the use of tax increments. ',',.",-"',::,'.'",.',,,' conforms to the general plan for development or redevelopment of the City as a (4) and facts supporting this finding are that the TIF District is properly zoned, Plan has been approved by the City Planning Commission and will generally and serve to implement policies adopted in the City's comprehensive plan. II afford maximum opportunity, consistent with the sound needs of the City as a development of the Project Area by private enterprise, The reasons and facts supporting this finding are that the development activities are necessary so that development and redevelopment by private enterprise can occur within the Project Area. Section K Estimated Public Costs The estimated public costs of the TIF District are listed below, Such costs are eligible for reimbursement from tax increments of the TIF District. Land/Building acquisition, Special Assessments, Public Utilities, Site Improvements/Preparation $2,200,000 SPRINGSTED Page 4 City of Map/ewood, Minnesota Costs, and other Eligible Improvements The but reserves issuance). Bond principal payments Bond interest payments Loan Principal payments Loan Interest payments Capitalized I nterest payments Pooling for Affordable Housing Administrative expenses Total o o 2,200,000 2,961,024 567,446 575,478 700,438 $9,204,386 The City ,reserves the right to administratively adjust the amount of any of additional eligible items, so long as the total estimated public cost is not incre. Section L Estimated Sources of Revenue Tax Increment revenue Interest on invested funds Bond roceeds Loan proceeds Grants Other Total o 2,200,000 o o $9,204,386 The reserves the internal also through the use of a pay-as-you-go in years, a portion of these taxes will be costs incurred (see Section K). the TIF District using pay-as-you-go assistance, financing mechanism authorized by law, The City ces of applicable to the Project Area to pay for such costs s$~~sments, utility revenues, federal or state funds, and investment income, The City anticipates technique. As tax distributed to the /'.'.. of Bonded Indebtedness tax increment bonds to finance the estimated public costs of the TIF District, in an amount not to exceed $2,420,000 ($2,200,000 + 10% cost of Section N The County Auditor shall certify the original net tax capacity of the TIF District. This value will be equal to the total net tax capacity of all property in the TIF District as certified by the State Commissioner of Revenue. For districts certified between January 1 and June 30, inclusive, this value is based on the previous assessment year. For districts certified between July 1 and December 31, inclusive, this value is based on the current assessment year. The Estimated Market Value of all property within the TIF District as of January 2, 2010, for taxes payable in 2011, is $1,600,000, and the property is classified as rental. Upon establishment of the TIF District, it is estimated that the original net tax capacity of the TIF District will be approximately $20,000, based on an EMV of $1,600,000 as set by the assessment as of January 2, 1010. SPRINGSTED Page 5 City of Map/ewood Minnesota Each year the County Auditor shall certify the amount that the original net tax capacity has increased or decreased as a result of: (1) (2) (3) (4) changes in the tax-exempt status of property; reductions or enlargements of the geographic area of the TIF District; changes due to stipulation agreements or abatements; or changes in property classification rates. , Section 0 Original Tax Capacity Rate The County Auditor shall also certify the original tax capacity rate of local tax rates that apply to property in the TIF District. This original net tax capacity. is rate shall be the sum of all es payable year as the In future years, the amount of tax increment generated sum of the current local tax rates at that time or (b) the of (a) the apply to property in the TIF District, for is total becomes available, the County For purposes of estimating the tax in 2009 and payable in 2010, is Final 2009/2010 Local Tax Rate 33,354% 50.248% 25.359% 8.817% 119.778% Captured Net Tax Capacity and project will be completed by December 31, 2011, creating a total tax capacity for phase 1 of TIF Dist "10 of $125,000 as of January 2,2012. The captured tax capacity as of that date is estimated to be $105,000 aNd the first year of tax increment is estimated to be $125,767 payable in 2013, The City anticipates that phase 2 of the project will be completed by December 31, 2018, creating a total maximum tax capacity for phases 1 & 2 of $216,234 as of January 2, 2019, The captured tax capacity as of that date is estimated to be $196,234, and the first year of increment from phases 1 & 2 is estimated to be $235,045 payable in 2010. A complete scheduie of estimated increment from the TIF District is shown in Exhibit Ill. The estimates shown in this TIF Plan assume that the housing development will be designated as rental property, and that the class rate will be 1.25%, and assume 3% annual increases in market values. Each year the County Auditor shall determine the current net tax capacity of all property in the TIF District. To the extent that this total exceeds the original net tax capacity, the difference shall be known as the captured net tax capacity of the TI F District. SPRINGSTED Page 6 City of Map/ewood Minnesota The County Auditor shall certify to the City the amount of captured net tax capacity each year. The City may choose to retain any or all of this amount. It is the City's intention to retain 100% of the captured net tax capacity of the TIF District. Such amount shall be known as the retained captured net tax capacity of the TIF District. Exhibit II gives a listing of the various information and assumptions used in preparing a number of the exhibits contained in this TIF Plan, including Exhibit III which shows the projected tax increment generated over the anticipated life of the TIF District. used by the TIF District and pay State Auditor for the cost of Exhibit III shows the Section Q Use of Tax Increment .. Each year the County Treasurer shall deduct 0.36% of the annual tax such amount to the State's General Fund. Such amounts will be financial reporting and auditing of tax increment financing projected deduction for this purpose over the anticipated life of the The City has determined that it will use 100% of the the following purposes: (1) Pay for the estimated public costs of the costs associated with the TIF District (see administrative (2) pay principal and interest public costs of the TIF (3) accumulate a finance the or other bonds issued to (4) as may be required by the County Board under M,S. (5) for redistribution to the City, County and School Tax county must be expended for the direct and primary benefit of a project boards involved waive this requirement. Tax increments shall not be City, Tax building to be other local unit facility used for renovation of a parking the acquisition, construction, renovation, operation, or maintenance of a for conducting the business of a municipality, county, school district, or any or federal government, or for a commons area used as a public park, or a or conference purposes. This prohibition does not apply to the construction or or of a privately owned facility for conference purposes, Section R Excess Tax Increment In any year in which the tax increments from the TIF District exceed the amount necessary to pay the estimated public costs authorized by the TIF Plan, the City shall use the excess tax increments to: (1) prepay any outstanding tax increment bonds; (2) discharge the pledge of tax increments thereof; SPRINGSTED Page 7 Section S (3) (4) City of Maplewood, Minnesota pay amounts into an escrow account dedicated to the payment of the tax increment bonds; or return excess tax increments to the County Auditor for redistribution to the City, County and School District. The County Auditor must report to the Commissioner of Education the amount of any excess tax increment redistributed to the School District within 30 days of such redistribution, Tax Increment Pooling and the Five Year Rule As permitted under Minnesota Statutes, Section 469,1763, subdivision 2(b) of increment from the TIF District to pay the cost of a "housing project" 469,174, subd, 11 will be treated as an expenditure within the district "five year rule", The City does not currently anticipate that tax (except allowable administrative expenses), but such expenditures 3(a)(5), any expenditures in Minnesota Statutes, Section of the "pooling rules" and the outside the TIF District this TIF Plan, Section T Limitation on Administrative (1) (2) amounts paid for the amounts paid for materials connected with the proposed and engineering services directly (3) or businesses residing or located (4) for, or sell at a discount, tax increment bonds, by bond counsel, fiscal consuitants, planning or by the County in administering the TIF District. Tax strative the TIF District up to the lesser of (a) 10% of the total J,IF Plan or (b) 10% of the total tax increment expenditures for the project. ~~kSUbjectto Improvements - F our Year Rule If after four of the TIF District no demolition, rehabilitation, renovation, or qualified improvement commenced on a parcel located within the TIF District, then that parcel shall be excluded from and the original net tax capacity shall be adjusted accordingly, Qualified improvements of a stre >.,ited to construction or opening of a new street, relocation of a street, or substantial reconstruction or rebuildingdf an existing street. The City must submit to the County Auditor, by February 1 of the fifth year, evidence that the required activity has taken place for each parcel in the TIF District. If a parcel is exciuded from the TIF District and the City or owner of the parcel subsequently commences any of the above activities, the City shall certify to the County Auditor that such activity has commenced and the parcel shall once again be included in the TIF District. The County Auditor shall certify the net tax capacity of the parcel, as most recently certified by the Commissioner of Revenue, and add such amount to the original net tax capacity of the TIF District. Section V Estimated Impact on Other Taxing Jurisdictions SPRINGSTED Page 8 City of Maplewood Minnesota Exhibit IV shows the estimated impact on other taxing jurisdictions if the maximum projected retained captured net tax capacity of the TIF District was hypothetically available to the other taxing jurisdictions, The City believes that there will be no adverse impact on other taxing jurisdictions during the life of the TIF District, since the proposed development would not have occurred without the establishment of the TIF District and the provision of public assistance. A positive impact on other taxing jurisdictions will occur when the TIF District is decertified and the development therein becomes part of the general tax base. The fiscal and economic implications of the proposed tax increment financing district, as pursuant to Minnesota Statutes, Section 469.175, Subdivision 2, are listed below. 1. The total maximum amount of tax increment that will be generated over tb~jJifl. of the district is estimated to be $7,029,692, . 2. To the extent the housing project in the proposed TIF District<~< ~~%ilnY public cost impacts on city- provided services such as police and fire protection, public infra~!tu ,an~;;~Prrowing costs attributable to the district, such costs will be levied upon the taxable capacity onh~%cC;;!ty, excluding that portion captured by the District. . Section W Prior 3. The maximum amount of tax increments over district levies, assuming the school district's remained the same, is estimated to be $1,488,303. that would be attributable to school rate for all taxing jurisdictions 4. The maximum amount of tax levies, assuming the county's share estimated to be $2,949,022. that would be attributable to county jurisdictions remained the same is 5, TIF Auditor (or notice of district enlargement), with a permits have been issued during the 18 months shall increase the original net tax capacity of the a building permit was issued. the last 18 months in conjunction with any of the properties within the The City shall of all properties SPRINGSTED Page 9 City of Maplewood Minnesota Section X Development Agreements If within a project containing a housing district, more than 10% of the acreage of the property to be acquired by the City is purchased with tax increment bonds proceeds (to which tax increment from the property is pledged), then prior to such acquisition, the City must enter into an agreement for the development of the property. Such agreement must provide recourse for the City should the development not be completed. The City anticipates entering into an agreement for development, but does not anticipate acquiring any property located within the TIF District. Section Y Assessment Agreements tI%~~sessment agreement with the vement~,'fQr each year during the life of ,,"'--"-.':'-.) The City may, upon entering into a development agreement, also ent developer, which establishes a minimum market value of the land and i the TIF District. The assessment agreement shall be presented to the specifications for the improvements to be constructed, so long as the minimum market value contained in the shall certify the assessment agreement as reasonable. office of the County Recorder of each county where the termination of this agreement must first be appr9V~q by the City, The City does anticipate entering into an asse;~~~~;:~gt~$ment. Assessor who sRil"lJc;!t~xiew the plans and valy~ previously assigqilJ:l,to the land, and agree~~mf;appears to be anassurate estimate, ~~reement shall be filed for record in the cated, Any modification or premature School District. Section Z ,.... i\';"'}",';,';-' ;":~":";':/?:_: ,:' ,',',.- .-,.- )'Y);".!:'\:::~';:'_':" .. .... ,', (1) the only modification is elimination of parcels from the TIF District; and (2) the current net tax capacity of the parcels eliminated equals or exceeds the net tax capacity of those parcels in the TIF District's original net tax capacity, or the City agrees that the TIF District's original net tax capacity will be reduced by no more than the current net tax capacity of the parcels . eliminated. "" ' The City must noti;'iW~ii~8Vnt 'ditor of any modification that reduces or enlarges the geographic area of the TIF District. The geographicat@i3;., the TIF District may be reduced but not enlarged after five years following the date of certification. . Section AA Administration of the Tax Increment Financing Plan Upon adoption of the TiF Plan, the City shall submit a copy of such plan to the Minnesota Department of Revenue, The City shall also request that the County Auditor certify the original net tax capacity and net tax capacity rate of the TIF District. To assist the County Auditor in this process, the City shall submit copies of the TIF Plan, the resolution establishing the TIF District and adopting the TIF Plan, and a listing of any prior planned improvements. The City shall also send the County Assessor any assessment agreement establishing the minimum market value of land and improvements in the TIF District, and shall request that the County Assessor review and certify this assessment agreement as reasonable. SPRINGSTED Page 10 City of Maplewood Minnesota The County shall distribute to the City the amount of tax increment as it becomes available, The amount of tax increment in any year represents the applicable property taxes generated by the retained captured net tax capacity of the TIF District. The amount of tax increment may change due to development anticipated by the TIF Plan, other development, inflation of property values, or changes in property classification rates or formulas, In administering and implementing the TIF Plan, the following actions should occur on an annual basis: (1) prior to July 1, the City shall notify the County Assessor of any new development that has occurred in the TIF District during the past year to insure that the new value will be recorded in a timely manner. (a) the value of property that changes from tax-exempt to taxable original net tax capacity of the TIF district. The rev~rse shall also apply; IF District, or for modification of d in determining local tax rates after July 1 shall be used to (2) if the County Auditor receives the request for certification of a an existing TIF District, before July 1, the request shall be for the current and subsequent levy years, RequestsJl'rl, determine local tax rates in subsequent years. . . . (3) each year the County Auditor shall certify th~,~~otint of the District. The amount certified shall reflect apy,qpariges that occur as a to the (b) "\:,i,\'\,......._..;//"i:',.\;:{,<::. the original net tax capacity may be modified by any approved enlargement or reduction of the TIF District: '.':.''.. if laws governing the classification of real property cause changes to the percentage of estimated market value to be applied for property tax purposes, then the resulting increase or decrease in net tax capacity shall be applied proportionately to the original net tax capacity and the retained captured net tax capacity of the TIF District. The County Auditor shall notify the City of all changes made tq the original net tax capacity of the TIF District. (c) Section AB ,:-":,:,:,:,_".:.,,.-,;,.-"""i':-:"'.."':-:.,';:.,:,'/""""'_":::' ",-::,":.::'--_..-::-,":-','.':':':)',,".,.:,',-:::-:',-:::-':.-.:-::-',':---,-,,'._._'.'. Reporting and Disclosure Requirements The ":::-'i anY$Y;97equent amendments thereto, with the Commissioner of Revenue and the to Minp@'7pta Statutes, Section 469,175, subdivision 4A. The City will comply TIF Di$lt!ol under Minnesota Statutes, Section 469.175, subdivisions 5 and 6. with SPRINGSTED Page 11 Exhibit I Map of Proposed TIF Plan within Development District Proposed Gladstone Development Tax Increment Financing Area .Q> SPRINGSTED Page 12 Exhibit /I Assumptions Report City of Maplewood, Minnesota Tax Increment Financing (Housing) District No, 1 -1 0 The Shores of Maplewood Project Scenario 4 - $15M Both Phases - 5% Admin - 3% Inflation Factor Type of Tax Increment Financing District Maximum Duration ofTlF District Projected Certification Request Date Decertification Date Base Estimated Market Value Original Net Tax Capacity Base Estimated Market Value Increase in Estimated Market Total Net Tax City of ISO Rate Fiscai Administrative Pooling Percent Bonds Bonds Dated Bond Issue @ 0.00% (N1C) Eligible Project Costs Present Value Date & Rate Housing 25 years from 1 st increment Years of Increment) Year $1,600,000 10,000,000 $125,000 10,609,000 $132,613 10,300,000 $128,750 35.354% 50.248% 25.359% 119.778% 2009/2010 District -10%) 0.0000% 17,50% 0.00% 02/01/11 $0 $0 Note (Pav-As-You-Go\ Note Dated Note Rate Note Amount 02/01/11 6.00% $2,200,000 02/01/11 6.00% Notes Projections assume no future changes to tax and class rates, and a 3% market value inflator. Base Value of $1.6M provided by Ramsey County. Projections are based on a $10M Total Value for Pay2013 and $15M Total Value for Pay 2020 Tax rates and Taxable Net Tax Capacity are based on Final 2010 rates and market values. SPRINGSTED Page 13 - - - ..... :.Q ~ tb ~ 0 - " .. u.. " 0 '" .. 0 '" ';' .E ~ ;f'. c:i '" z - ,", .g E - .. ." 1:: is <( 0 0;_ ;f'. Q. '" '" " " , ,- Q) c:: U/......Ul .l!I " 0 Q) - o ~ .. !: 0 "a... .. '" Q) -.,,-" E " ClOa. E ,", "0-" .- :: .... " :E g Q) 0 ..5 ~ ctl - Ol -g .!: g.:E >< Ou..:!:U) .. 3:...._~ I- /1)1::0$ - Q) . 't:l g.e$o;t (]) - :E ~ Jo. 0 " ~ o 0._ (]) t:,.l: i '0- 0 -(/)" ~>< Q) Q) ~ ,- .. -" " 0.. UI- I-(/) .... ~ <ll 0) CO 0.. 0 0 " .... '" "' ;;; .... ro " ~ ;X; '" '" "' '" '" ~ '" '" 0 N ro ro 0 0 0 .... 0 "' ro .... .... 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(I) Cl ~ _ ffi !:!::mg~O) 1-~'~.3~ .... .!: ~ " ~:g " 1ii ~o OLL F .~,. .,,~ Z- '13 " " 0. /ll.\'ll,":-:':' .!%';FR,,-' )~,:::-,,~ '-'I- '" :0 N '" cri :: '#. '" " N o '" <D <D "'- <D <D N "' '" .... .... '" ::; "' c5 '" ~ - c " E S " en . z- c " o U >- " '" E " 0:: N N <D .. o ~ f]: ID "" o '" ro -0 I- N - c " E S " en oj Q) :on; '" ~ ,g lij 0._ 0.- '" .l'! .- .9 c " .Q = 5'0 ~~ e<D 0'" ~r...: ;t:~ i'l.o .~ 1: "0 " ~ ~ ~ c. <<= ~ .!!l '" c o QjU c ~ ro _ :8 .:!, II g> ~.~ u _ ~?h ~~ x- .l] :5 "1:> c " " c. ~ .~ "''''' 1-1- C I..LJ l- V) c.:l z 1:2 c.. V) s~ Exhibit V Market Value Analysis Report City of Maplewood, Minnesota Tax Increment Financing (Housing) District No, 1-10 The Shores of Maplewood Project Scenario 4 " $15M Both Phases - 5% Admin - 3% Inflation Factor Assumptions Present Value Date p.v. Rate - Gross T.!. Increase in EMV With TIF District Less: p.v of Gross Tax Increment Subtotal Less: Increase in EMV Without TIF Difference 110,313 107,786 105,296 1 102,845 144,558 100,434 149,614 98,063 154,821 95,732 235,045 137,111 242,815 133,626 2022 250,819 130,218 2023 259,062 126,884 2024 267,552 123,625 2025 276,298 120,440 2026 285,305 117,326 2027 294,583 114,285 16 2028 304,139 111,313 17 2029 313,982 108,411 18 2030 324,120 105,577 19 2031 334,562 102,809 20 2032 345.318 100,108 21 2033 356,396 97,471 22 2034 367,807 94,898 23 2035 379,560 92,387 24 2036 391,665 89,938 25 2037 404,134 87,548 26 2038 416,976 85,217 $7,029,692 $2,799,661 SPRINGSTED Page 16 Exhibit VI Projected Pay-As-You~Go Note Report City of Maplewood, Minnesota Tax Increment Financing (Housing) District No. 1w10 The Shores of Maplewood Project Scenario 4 w $15M Both Phases - 5% Admin w 3% Inflation Factor Note Dale: 02f01l11 Note Rate: 6.00% Amount: $2,200,000 Semi-Annual loan Net Capitalized Balance Date P& I Revenue Interest Outstanding 2,200,000,00 02f01/12 0.00 0.00 0.00 2,332,000.00 08f01f12 0.00 0,00 0.00 2,401,960.00 02/01/13 0.00 0.00 0.00 2,474,018.80 08/01113 0.00 51,692.00 51,692.00 2,496,547.36 02/01/14 0.00 51,692.00 51,692.00 2,519,751.78 08/01/14 0.00 53,538.50 53,538.50 2,541,805.83 02/01/15 0.00 53,538.50 53,538.50 2,564,521.50 08/01115 0,00 55,439.50 02/01116 0,00 55,439.50 22,141.03 08/01/16 0.00 57,398.00 20,846.76 02/01/17 0.00 57,398.00 21,472.16 08/01/17 0.00 59,415.50 20,098.83 02/01/18 0.00 59,415.50 20,701.79 2,691,278.22 08/01/18 0.00 61,493.50 19,244.85 2,710,523.07 02/01/19 0.00 19,822.19 2,730,345.26 08/01/19 0.00 18,276.36 2,748,621.62 02/01/20 0.00 18,824.65 2,767,446.27 08/01/20 13,583.61 83,023.39 0.00 2,753,862.66 02/01/21 13,991.12 82,615.88 0.00 2,739,871.54 08/01121 17,604.35 82,196.15 0.00 2,722,267.19 02/01/22 0.00 2,704,134.71 08/01122 103,09.. 0.00 2,682,168.25 02/01/23 103,090.50 0.00 2,659,542.80 08/01/23 106,478.00 0.00 2,632,851.08 02/01/24 106,478.00 0.00 2,605,358.61 08/01/24 109,968.00 0.00 2,573,551.37 02/01/25 109,968.00 0.00 2,540,789.91 08/01/25 113,562.50 0.00 2,503,451.11 113,562.50 0.00 2,464,992.14 117,264.50 0.00 2,421,677.40 117,264.50 11"7,264.50 0.00 2,377,063.22 121,078.00 121,078.00 0.00 2,327,297.12 121,078.00 121,078.00 0.00 2,276,038.03 125,005.50 125,005.50 0.00 2,219,313.67 125,005.50 125,005.50 0.00 2,160,887.58 129,051.50 129,051.50 0.00 2,096,662.71 021 62,899.88 129,051.50 129,051.50 0.00 2,030,511.09 08/01/ 60,915.33 133,218.00 133,218.00 0.00 1,958,208.42 02/01/31 58,746.25 133,218.00 133,218.00 0.00 1,883,736.67 08/01/31 56,512.10 137,510.00 137,510.00 0.00 1,802,738.77 02/01/32 54,082.16 137,510.00 137,510.00 0.00 1,719,310.93 08/01/32 51,579.33 141,931.00 141,931.00 0.00 1,628,959.26 02/01/33 2 48,868.78 141,931.00 141,931.00 0.00 1,535,897.04 08/01/33 100,407.09 46,076.91 146,484.00 146,484.00 0.00 1,435,489.95 02/01/34 103,419.30 43,064.70 146,484.00 146,484.00 0.00 1,332,070.65 08/01134 111,211.88 39,962.12 151,174.00 151,174.00 0.00 1,220,858.77 02/01135 114,548.24 36,625.76 151,174.00 151,174.00 0.00 1,106,310.53 08/01/35 122,815.68 33,189.32 156,005.00 156,005.00 0.00 983,494.85 02/01136 126,500.15 29,504.85 156,005.00 156,005.00 0.00 856,994.70 08/01f36 135,270.16 25,709.84 160,980.00 160,980.00 0.00 721,724.54 02/01/37 139,328.26 21,651.74 160,980.00 160,980.00 0.00 582,396.28 08/01/37 148,633.11 17,471.89 166,105.00 166,105.00 0.00 433,763.17 02/01138 153,092.10 13,012.90 166,105.00 166,105.00 0.00 280,671.07 08/01138 162,963.37 8,420.13 171,383.50 171,383.50 0.00 117,707.70 02/01/39 117,707.70 3,531.23 121,238.93 121,238.93 0.00 0.00 $2,767,446 $2,961,024.16 $5,728,470.43 $5,728,470.43 $567,446.27 Surplus Tax Increment 50,144.57 Total Net Revenue $5,778,615.00 SPRINGSTED Page 16 RESOLUTION OF THE PLANNING COMMISSION FINDING THE DEVELOPMENT PROGRAM FOR MUNICIPAL DEVELOPMENT DISTRICT NO, I AND THE TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING (HOUSING) DISTRICT NO, 1-10 CONFORM TO THE CITY PLANS FOR DEVELOPMENT OF THE CITY AS A WHOLE WHEREAS, the City of Maplewood, Minnesota (the "City"), has prepared a Development Plan for Development District No, 1 (the "Program") and a Tax Increment Financing Plan (the "Plan") for Tax Increment Financing (Housing) District No, 1-10 therein and has submitted the Program and the Plan to the City Planning Commission pursuant to Minnesota Statutes, Sections 469,027 and 469,126, and WHEREAS, the Planning Commission has reviewed said Program and Plan to deterrnli1e conformity of said Program and Plan to the general plan for the development or redevelopment of the City as a whole, and WHEREAS, the Planning Commission is in agreement with the Program and Plan, NOW, THEREFORE, BE IT RESOLVED by the Planning Commission of the City of Maplewood that the proposed Program and Plan conform to the general plan for the development or redevelopment of the City as a whole and the Commission recommends the Program and Plan to the City Council of the City of Maplewood for its approval. Adopted by the Planning Commission of the City of Maplewood, this 20th day of July, 2010, Chair Planning Commission of the City of Maplewood 2582908v1