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Home My WebLink About6.i. Minnesota Department of Employment and Economic Development Redevelopment Grant Application ROSEMOUNTEXECUTIVE SUMMARY CITY COUNCIL City Council Meeting Date: January 21, 2014 AGENDA ITEM: Minnesota Department of Employment AGENDA SECTION: and Economic Development Consent Redevelopment Grant Application PREPARED BY: Kim Lindquist, Community Development AGENDA NO. (0.1, Director ATTACHMENTS: Resolution, Draft Application APPROVED BY: RECOMMENDED ACTION: Motion to Approve a Resolution Authorizing Submittal of the Steeple Center Senior Housing for the Minnesota Department of Employment and Economic Development. SUMMARY The Minnesota Department of Employment and Economic Development (DEED) offers a Redevelopment Grant to assist in redeveloping underutilized sites. The grant funds must be used on public infrastructure to support or assist a private development, and cannot be used for private construction or infrastructure. The grants are offered in February and August to provide grant funds when development is imminent. DEED staff suggests that if construction would not commence until after October 2014, then DEED recommends that the City wait until the August grant funding cycle. When evaluating the grant requirements, staff believes there are few opportunities that would comply with the possible except being the public parking lot jointly serving the Steeple Center, and the future Activity Center, and private senior housing building a the former St.Joseph school site.The grant funds can only be used to finance that portion of the parking lot that is publically owned. BACKGROUND DEED has a Redevelopment Grant program to assist cities in constructing public infrastructure to redevelopment underutilized sites into a new and different use. The City of Rosemount is working with Wally Johnson and Mark Appelbaum to construct a new memory care and assisted living senior building on the former St.Joseph's school site. The grant funds are limited to public infrastructure and cannot be used for private infrastructure,public or private building construction. The City is planning on constructing an activity center and public parking to provide parking to the Steeple Center and the future activity center and would be available for library users also. The construction costs of the activity center are ineligible but the public parking would be eligible for the Redevelopment Grant. The City has previously received a variety of grant funds to assist in the redevelopment of the former St. Joseph school site. The Dakota County Environmental Management department conducted a Phase I and Phase II environmental review using funds from the Environmental Protection Agency. In 2011, the Dakota County Community Development Agency awarded the City$120,000 in Redevelopment Incentive Grant (RIG) funds that were used for the demolition and hazardous material removal of the former school building and relocation of some utilities.Also in 2011, the Metropolitan Council awarded the City $440,000 in Livable Communities Demonstration Account (LCDA) grant funds as matching funds to remove the Minnesota Energy substation and to install sidewalks, a public plaza with benches,bury the overhead power lines,install additional decorative streetlights and construct underground stormwater retention. Reviewing these grants and other public funds, the only public infrastructure remaining without already receiving financial assistance is the public parking lot for the joint use of the adjoining public facilities. The grant application is due at the DEED offices on Monday, February 3 at 4 pm. Staff is working to determine the anticipated cost and ownership of the shared parking lot. It is unclear how much of the parking lot will be considered public as the private senior housing owners may want to "own" some of the surface parking. Staff is continuing discussions with the developer regarding the parking arrangement,but depending upon the outcome, the project may not be eligible for the grant. Because the January 21 City Council meeting is the last opportunity to approve the resolution of support before the 4 pm February 3 deadline, staff is recommending adopting the resolution with the understanding that the application may not ultimately be submitted. RECOMMENDATION Staff recommends the City Council authorize submission of the Steeple Center Senior Housing Redevelopment Grant application to the Minnesota Department of Employment and Economic Development. 2 CITY OF ROSEMOUNT DAKOTA COUNTY, MINNESOTA RESOLUTION NO. 2014 - A RESOLUTION AUTHORIZING THE SUBMITTAL OF THE STEEPLE CENTER SENIOR HOUSING FOR THE MINNESOTA DEPARTMENT OF EMPLOYMENT AND ECONOMIC DEVELOPMENT REDEVELOPMENT GRANT WHEREAS, the City Council of the City of Rosemount acts as the legal sponsor for project contained in the Redevelopment Grant Program to be submitted on February 3, 2014 and that William H. Droste,Mayor,and Amy Domeier, City Clerk,are hereby authorized to apply to the Department of Employment and Economic Development for funding of this project on behalf of the City of Rosemount; and WHEREAS, the City of Rosemount has the legal authority to apply for financial assistance, and the institutional,managerial, and financial capability to ensure adequate project administration; and WHEREAS, the sources and amounts of the local match identified in the application are committed to the project identified; and WHEREAS,that City of Rosemount has not violated any Federal, State or local laws pertaining to fraud, bribery,graft, kickbacks, collusion, conflict of interest or other unlawful or corrupt practice;and WHEREAS, that upon approval of its application by the state,the City of Rosemount may enter into an agreement with the State of Minnesota for the above referenced project(s), and that the City of Rosemount certifies that it will comply with all applicable laws and regulation as stated in all contract agreements. NOW,THEREFORE, BE IT RESOLVED, that William H. Droste,Mayor, and Amy Domeier,City Clerk, are hereby authorized to execute such agreements as are necessary to implement the project on behalf of the applicant. ADOPTED this 21st day of January, 2014,by the City Council of the City of Rosemount. William H. Droste,Mayor ATTEST: Amy Domeier, City Clerk FY 14 N Department of Ernpioyment �- and Economic Develoriment innesota- 1st National Bank Building 332 Minnesota Street,Suite E200 St.Paul,MN 55101-1351 Redevelopment Grant Application Cover Page Applicant(Public Entity): City of Rosemount Head of Applicant Agency (e.g. Mayor): William H. Droste Applicant Address: 2875 145th Street West City: Rosemount Zip Code: 55068 If the applicant is a city, what form of government? Home Rule Charter X Statutory City For reference,please give the State Statute number which gives the applicant authority to carry out the activities for which you are requesting grant funds. Project Contact for the Public Entity Kim Lindquist, Community Development Director Phone: 651 - 322 - 2020 E-mail: kim.lindquist @ci.rosemount.mn.us Mailing Address: 2875 145th Street West, Rosemount, MN 55068 Project Manager for this project from the Public Entity,in the event of an award Kim Lindquist Project Manager's Phone & email 651-322-2020- kim.lind•uist ! ci.rosemount.mn.us Application Author Eric Zweber, Senior Planner Author's Phone & email 651-322-2052- eric.zweber • ci.rosemount.mn.us Provide a written executive summary of the project, including the applicant's involvement in the project to date and how the applicant intends to manage the project should a grant be awarded. Redevelopment Page 1 FY 14 I. SITE IDENTIFICATION AND HISTORY SITE INFORMATION 1. Name of Site: Steeple Center Senior Housing Site Address:14305 South Robert Trail City, County or Township: Rosemount Zip Code: 55068 Acreage of Site: 3.16 acres Sq. Ft. of Site: 137,750 sq ft Minnesota Legislative District# A 57 B (Note: The Minnesota Legislature has a tool to look up legislative district numbers. You must have a precise address and know the zip code of the site. Go to: http://www.gis.legann/mapserver/districts/index.html Is the site located within a designated Transit Improvement Area(TIA?) *Yes X No *If yes,please provide Station Area name: 2. A. Current property owner(s): City of Rosemount and Rosemount Port Authority When was the property purchased? St. Joe's was purchased in 2004 and the five homes were purchase in 2007 and 2008. For what amount? Total cost of$3,635,725 From whom was the property purchased? St. Joseph's Catholic Church and Five Individual Homeowners B. Who will develop the site? Rosemount Senior Living Will the developer own the property at any time? Yes X No When was/will the property be purchased? 2014 For what amount? $1 C. Are eminent domain proceedings necessary to acquire the property on which the redevelopment will occur? If so, explain any difficulties anticipated in accomplishing the project. All the properties necessary are owned by the City of Rosemount or the Rosemount Port Authority. Eminent domain was not used to acquire the properties. D. Who will own the site after development? Rosemount Senior Living and the City of Rosemount When was/will the property be purchased? 2014 For what amount? $1 3. Provide a legal description of the site. Lot 1, Block 1, Kilcumreragh; Lot 1 through Lot 6, School Addition Redevelopment Page 2 FY 14 SITE VALUATION 4. What is the current appraised or assessed value of the Site? $2,057,200 Attach the appraisal or assessor's value. 5. What is the projected appraised or assessed value after the redevelopment activities have been completed (prior to development)? $2,078,800 Attach the appraisal or assessor's value. 6. What is the projected value after the proposed development is complete? $14,000,000 MAPS AND SITE FEATURES 7. Attach an accurate and legible site and location map indicating the site showing locations of prominent and relevant site features such as buildings, retaining walls, etc. (NOTE: maps shall include property boundaries, a north arrow and bar scale). The map(s) should show the following: a) The current condition of the site including labeled structures; b) The proposed development of the site including labeled structures; and c) Specifically where and for what activities DEED money will apply. 8. Please provide current and historic photographs of the site if available. HISTORY 9. Please attach a synopsis on the history and general background of the site. This includes, but is not limited to, a description of the former and current uses of the site, as well as an explanation of what has occurred on the site, leading to its current dilapidated condition. CURRENT AND FUTURE SITE USE 10. Zoning/Land Use: A. Current: Industrial_ Commercial Residential: Homes are R-1A: Low Density Res_ Mixed-use: Former School is DT: Downtown Other(Specify) B. After Redevelopment: Industrial Commercial Residential Mixed-use DT: Downtown Other(Specify) 11. Current economic condition: Vacant lot Mostly Developed site Other Former St. Joseph Church 12. How many buildings are currently on site? Industrial How many are occupied? If vacant, for how long? Commercial How many are occupied? If vacant, for how long? Residential How many are occupied? If vacant, for how long? Institutional 1 How many are occupied? 1 Redevelopment Page 3 FY 14 13. Year building(s) was/were built: Church was built in 1924, Demolished School was built in 1954, Demolished Homes were 1950s and 1960s. 14. Please describe the condition of the buildings on the site. The Steeple Center (former St. Joseph's Church) is being used as an arts and community rental space and is in good condition. The City has invested significant funds since its purchased in 2004, including maintenance and upgrades to the roof, accessibility, fire suppression and HVAC equipment. 15. Describe plans for existing buildings as redevelopment occurs. The Steeple Center will remain. The activity center will be constructed as an addition to the Steeple Center and have a connected hallway to the senior assisted living/memory care building. 16. Please attach a detailed narrative of the proposed new development plan for the site. Please include information such as the number and size of buildings and any known future tenants, etc. PLEASE NOTE: A statutory change has been made to the Redevelopment Grant Program. If your redevelopment project fails to substantially provide the public benefits listed in this application within 5 years of the grant award date,the Commissioner may require that 100 percent of the grant amount be repaid to DEED. 17. Is the proposed new development related to the bioscience field? Describe. No 18. Is the new development part of an expansion of an existing Minnesota bioscience business? No 19. Describe the specific activities for which DEED funds are being requested. The DEED funds would be used for the joint public parking lot to support the Robert Trail Library, Steeple Center and future activity center. II. COST ANALYSIS 20. What are the total redevelopment costs as defined on Page iii? $505,000 21. How much money are you seeking from DEED? $140,000 (Up to 50% of the total redevelopment cost is eligible) 22. Fill out the budget table on the following page indicating the sources, uses, and amounts of all funds (including TIF, DEED requests, etc.)that will be used for eligible redevelopment costs as defined on Page iii. The table should indicate the total project budget, including any costs that have already been incurred. Note: The 50% local match can come from any source. Money paid for eligible work completed up to 12 months prior to the application due date can constitute local match. If costs have been incurred, please submit the invoices for which you will be seeking to use as matching costs. Public acquisition is eligible as a match cost only. Redevelopment Page 4 FY 14 Redevelopment Sources and Uses of Funds for the Project (Budget Table) Use of Funds Public or Amount Costs Date Source of Funds Date Funds (Activity) Private Incurred Incurred Committed land? (Y/N) Public Parking Lot Public $140,000 N DEED Redevelopment Grant 04/01/2014 Under Parking Lot Private $200,000 N Metropolitan Council LCDA 02/06/2012 Stormwater Management Street Lights and Public $95,000 N Metropolitan Council LCDA 02/06/2012 burying electrical lines Public sidewalks Public $70,000 N Metropolitan Council LCDA 02/06/2012 Activity Center Public $1,500,000 N City of Rosemount 04/01/2014 Senior Assisted Living Private $10,500,000 N Developer Private Financing 04/01/2014 and Memory Care Building Use of Funds (Activity)—See page iii for a list of eligible program costs. May include activities such as demolition, infrastructure improvements, etc. Be specific. Please also indicate if this activity will be performed on public or privately owned land. Amount—Total cost of the budget line item. Costs incurred—Has work on this activity started? Date Incurred—When was this work done? Be specific, give a time range if necessary. Source of Funds—Who is paying for this activity? If it will be DEED's portion,please note. Date Funds Committed—When were the funds secured from this source? Please attach any written funding commitments. Construction Sources and Uses of Funds for the Project (Budget Table) Construction Activity Cost Source of Funds Commitment Date Construction Activity—May include building construction or other non-Redevelopment costs. Commitment Date—If your construction financing is pending, please list the date you expect to close on your financing. 23. Is all of the financing in place for the final development of the site? If yes, you must attach evidence that the funds are secure. If funds are not secure, what is the process to secure the funds and its timeline? Note: These tasks must be reflected on the Project Schedule. Redevelopment Page 5 FY 14 III. TAX INCREMENT FINANCING (TIF) ANALYSIS 24. Does the redevelopment project meet current tax increment financing requirements for a redevelopment district? 25. If the redevelopment project meets TIF requirements for a redevelopment district, describe how the site meets the requirements. 26. Check the following TIF criteria that the site meets. A. Parcels consisting of 70% of the area of the tax increment financing district must be occupied by buildings, streets, utilities, or other improvements, and more than 50% of the buildings (excluding outbuildings)must be structurally substandard to a degree requiring substantial renovation or clearance; or B. Parcels must consist of vacant,unused, under used, inappropriately used, or infrequently used rail yards, rail storage facilities or excessive or vacated railroad rights-of-way; or C. Tank facilities (see criteria in Minn. Stat. § 469.174 Subd. 10(a)(3)) D. A qualifying disaster area. 27. How much TIF will be used for the project? 28. Attach a cash flow analysis that indicates how much TIF will be used towards this project. (Note: TIF should be used at maximum levels available). 29. What is the maximum amount of TIF that can be generated? 30. Is TIF being used for this development project at maximum levels available? 31. If TIF is not being used fully, or at all, describe why. 32. Is there a gap in financing after applying TIF? If there is a gap in financing,how much is the gap? If there is a gap in financing, would DEED funding remove the gap? Redevelopment Page 6 FY 14 IV. ANALYSIS OF REDEVELOPMENT POTENTIAL 33. Describe the current conditions of the site. 34. Describe how redevelopment of the site will improve conditions in the vicinity and/or spur adjacent development. 35. Describe the relative adequacy of the infrastructure at the site. 36. By providing hard data on current crime rates, and in a narrative, depict how the redevelopment of the site will reduce crime. 37. Has the site been found or suspected to be contaminated? If so, what measures have been taken to address the contamination? 38. What will be the costs of the final development? Of these costs,how much will be private? public? Please discuss the source of these funds and whether or not the sources are committed. Redevelopment Page 7 FY 14 39. Have all of the required local/city approvals necessary for this project to proceed been obtained(planning commission, zoning, etc.) If not, what remains to be done and what is the process for completing the process of obtaining approvals? Include this information in the project timeline (Item#51). 40. What are the current property taxes (as determined by the County or City Assessor) for the site? 41. What are the projected property taxes after final development? How was this figure determined? JOB CREATION 42. Project the number of new jobs created after redevelopment and final development of the site. (Jobs that did not exist in Minnesota prior to development) Total New Jobs: 32 FTEs NEW JOBS TABLE Position Title Total# of Total# of Part-time Expected Full-Time Part-Time Hours Per Hiring Date Jobs Jobs Week Assisted Living 30 Attendants Activity Center 2 Attendants Redevelopment Page 8 FY 14 JOB RETENTION 43. Project the number of retained jobs after redevelopment and final development of the site. (Jobs that existed either on-site or elsewhere in Minnesota prior to development) Total Retained Jobs: FTEs RETAINED JOBS TABLE Position Title Total#of Total # of Part-time Former Full-Time Part-Time Hours Per Location of Jobs Jobs Week Retained Jobs HOUSING DATA 44. If the site will be redeveloped for residential use, provide the following data: RENTAL: Total number of units 90 Monthly rental cost per unit $ Number of affordable units* None Level of affordability N/A Construction cost per unit $ 166,666 OWNER OCCUPIED: Total number of units Purchase price per unit$ Number of affordable units/homes* Level of affordability Construction cost per unit$ * Housing developments should include an affordability component Redevelopment Page 9 FY 14 OTHER PUBLIC BENEFITS 45. Is this a multi jurisdictional project(a joint application,joint powers agreement,joint development agreement, etc.)? If so, attach a narrative and any joint agreements if appropriate. Note: Projects with other state agencies and Metropolitan Council do not constitute multi- jurisdictional projects. 46. Is there a positive environmental impact associated with this project, such as ponding or other environmental infrastructure? 47. If yes, what is the positive environmental infrastructure associated with this project? Attach excerpts from an environmental authority such as the MPCA, environmental engineers, etc. that indicate the positive impact of these environmental developments. 48. Does the project advance or promote the growth of the green economy as defined in Minn. Stat. § 116J.437 (see https://www.revisor.mn.gov/pubs/and enter the statute number)? If yes,please describe. PROXIMITY TO PUBLIC TRANSIT 49. Attach a local transit schedule, and highlight the lines that serve the project site or surrounding area. If a regularly scheduled route does not serve the area,please provide information about other forms of transit that serve the community. DEVELOPER/THIRD PARTY/COMPANY COMMITMENT If there is a commitment from a developer or third party owner/tenant for on the site after redevelopment, please complete the following and attach a letter(s) of commitment. 50. Third Party/Company Name: Contact Person: Title: Phone Number(include area code): If there is an end-user commitment, please complete the following: 51. Third Party/Company Name: Contact Person: Title: Phone Number(include area code): Redevelopment Page 10 FY 14 V. PROJECT SCHEDULE 52. Provide a detailed project schedule outlining the individual tasks and schedules of the overall project including redevelopment tasks and activities necessary to complete the subsequent development. Indicate on this form the individual tasks involved in the project and the expected completion date (month and year) of the activity. The last task on the project schedule should indicate the date upon which construction of the subsequent development will be complete. PLEASE NOTE: A statutory change has been made to the Redevelopment Grant Program. If your redevelopment project fails to substantially provide the public benefits listed in the application within 5 years of the grant award date,the Commissioner may require that 100 percent of the grant amount be repaid to DEED. SCHEDULED TASKS BY YEAR AND MONTH YEAR 2013 YEAR 2014 YEAR 2015 TASK J F M A M J J A S O N D J F M A M J J A S L O LN D J F M A M J J A S O N D Redevelopment Activities Completion date Construction Completion date 53. Please list any factors which would change or delay this schedule. Redevelopment Page 11 FY 14 VI. PAYMENT INFORMATION Most grant payments take place through electronic funds transfer(EFT). To ensure proper payment, a Vendor Number assigned by Minnesota Management & Budget is required. Financial Contact Person: Telephone Number or e-mail: State of Minnesota Vendor Number: If a Minnesota Vendor Number does not exist,please supply: Minnesota Identification Number: and Federal Employer Identification Number: State Vendor info may be found at: https://supplier.swift.state.mn.us/psp/fmssupap/SUPPLIER/ERP/h/?tab=SUP GUEST Vendor number conversions from the old system to the new SWIFT may be found at: - http://www.swift.state.mn.ustvendors Redevelopment Page 12