HomeMy WebLinkAbout9.c. Resolution of Approval for Redevelopment Incentive GrantAGENDA ITEM: Resolution of Approval for
Redevelopment Incentive Grant
AGENDA SECTION:
New Business
PREPARED BY: Kim Lindquist, Community Development
Director
AGENDA NO.
ATTACHMENTS: Resolution, Application
APPROVED BY:
RECOMMENDED ACTION: Motion to Approve Draft Resolution.
4 ROSEMOUNT
CITY COUNCIL
City Council Regular Meeting: December 5, 2006
EXECUTIVE SUMMARY
DISCUSSION
The CDA recently implemented a grant program for redevelopment within the County. The first
applications were due on December 1, 2006. Staff has applied for acquisition of the car wash
property within the Core Block East The application amount is $100,000
As part of the application process, the City is required to pass a resolution m support. The attached
is the format requested. If the Council approves the resolution it will be forwarded to the CDA for
inclusion m the application packet.
CONCLUSION
Motion to approve the attached resolution.
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CITY OF ROSEMOUNT
DAKOTA COUNTY, MINNESOTA
RESOLUTION 2006
A RESOLUTION APPROVING THE APPLICATION FOR FUNDING
FROM THE DAKOTA COUNTY CDA
REDEVELOPMENT INCENTIVE GRANT PROGRAM
WHEREAS, the City of Rosemount has identified a proposed project with the City that meets
the Dakota County Community Development Agency (CDA) Redevelopment Incentive Grant
program's purposes and criteria; and
WHEREAS, the City of Rosemount has established a Redevelopment Plan of which the
proposed project is a component; and
WHEREAS, the City of Rosemount has the capability and capacity to ensure the proposed
project be completed and administered within the Redevelopment Incennve Grant program
guidelines; and
WHEREAS, the City of Rosemount has the legal authority to apply for financial assistance;
and
WHEREAS, the City of Rosemount is supportive of the CDA's mission and of affordable
housing.
NOW THEREFORE BE IT RESOLVED that the City Council of the City of Rosemount
approves the apphcation for funding from the Dakota County CDA Redevelopment Incennve
Grant program.
BE IT FURTHER RESOLVED that upon approval of its application by the Dakota County
CDA, \Vilham H. Droste, the Mayor of the City of Rosemount, is hereby authonzed to execute
such agreements as are necessary to receive and use the funding for the proposed project.
ADOPTED this 5'h day of December, 2006, by the City Council of the City of Rosemount.
ATTEST:
Amy Domeier, City Clerk
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William H. Droste, Mayor
4ROSEMOUNT
December 1, 2006
Dakota County CDA
Attn: Mehssa Carnicelli, Project Manager
1228 Town Centre Dnve
Eagan, MN 55123
Re: Application for Funding
Dear Ms. Carnicelli:
COMMUNITY DEVELOPMENT
Please find enclosed one original and two copies of the City of Rosemount's Application for
funding from the Dakota County CDA Redevelopment Incentive Grant Program.
If you have any questions, please contact me accordingly at 651- 322 -2020. Thank you for your
consideration.
Sincer5yy,
Kim Lundquist
Community Development Director
651- 322 -2020
kin lmdqutst a,ci rosemount mn.us
SPIRIT OF PRIDE AND PROGRESS
Packetl$egee200ol11222 City Hall 2875 145th Street West Rosemount, MN 55068 -4997
651- 423 -4411 TDD /TTY 651- 423 -6219• Fax 651- 423 -5203
www.ci.rosemount.mn.us
Packet page 204 of 222
CDA
Dakota County
Commumcy Development Agency
Redevelopment Incentive Grant Application
General Information
Project Name: Core Block East; Rosemount Downtown Redevelopment
Applicant City: City of Rosemount
Applicant Address: 2875 145 Street West, Rosemount MN 55068
Application /Project Contact: Kim Lindquist, Community Development Director
Contact Email Address: Kim Lindquist @ci.rosemount.mn.us
Phone Number: 651- 322 -2020 Fax Number: 651 423 4424
Authorized Officials) for Execution of Contracts (name and title). Mayor Bill Droste, City
Administrator Jamie Verbrugge
How much funding are you requesting? $100,000
Project Site Information
Site Address (es): 14670 Burma Avenue
Acreage of Site: 0.24 acres Number of Parcels: 2
Is the site publicly or privately owned? Privately
Current Site Owner(s): Jerome Clark
Current Appraised or Assessed Value of the Site: $91,200 assessed value
Projected appraised or Assessed Value of the Site after redevelopment: This work has not been
completed at this time.
Attach the appraisal or assessor's current and projected values.
After redevelopment is complete, will the site be publicly or privately owned? Privately
Post redevelopment Site Owner(s): Stonebridge Group
When has /will the acquisition be completed? Grant request is for land acquisition
Legal Description of Site: Lot 4 Block 4 Rosemount and Lot 5 Block 4 Rosemount except north 35 feet
and part of vacated Hayes Avenue.
Provide a location map, photos, and current and projected site plans. Maps should include property
boundaries, north arrow, and bar scale.
Attach a brief history of the site including previous uses, activities, prior or existing contamination, and
other attempts at redevelopment,
How many residential buildings are on site? N/A Commercial buildings? One
How many residential buildings are vacant? N/A Commercial buildings? None
Project Information
Describe the city's goals and need for this project.
The City of Rosemount has attempted repeatedly in the last 40 years to rejuvenate its Downtown.
Although recognized as the City's heart since the 1860s, previous attempts at revitalization either
ended after early phases were complete, or failed before any construction was attempted. Need
to alleviate blighted or near blighted properties intensified as commercial growth began to
expand along the County Road 42 corridor. In 1993 the Rosemount City Council committed to a
wide ranging review of the prospects for Downtown, including creation of a citizen task force to
consider planning options for the area included in a new tax increment financing district. The
task force created (and in 2004 the Rosemount Port Authority and City Council approved) the
Development Framework for Downtown. Guiding Principals that shaped the Framework and
lead the redevelopment activities include:
Maintain Downtown as a place of commerce
Use housing to keep Downtown vital
Keep the heritage and identity of Rosemount
Use public places to attract and define
Balance the needs of cars and people
The Council has consistently held Downtown Redevelopment as one of its primary
responsibilities, adopting this as a City goal in 2004 and 2005. In 2005 the Authority and Council
selected a developer for the first phase of the project. lts location, designated Core Block East, is
centrally located in Downtown. The location permits enhancements that the project will bring to
serve as a springboard for subsequent phases of redevelopment.
Has an end user committed to redevelopment of site?
The City has entered into a preliminary redevelopment agreement with CPDC. It in turn is
negotiating an agreement with the Stonebridge Group to construct the residential portion of the
project. The agreement is not complete at the time of this application but is in process. The
Stonebridge Group concept plan is the basis for the grant application request. A copy of the
preliminary redevelopment agreement is attached to illustrate the City's and developer's
commitment.
Attach preltmanary redevelopment agreement.
Describe how the project will make more efficient use of the site.
The current site development within Core Block East is underutilized for an urban density
development. Many of the properties on the block were single- family homes that do not
adequately make use of the land available. A traditional single family development pattern is
less appropriate for Downtown development. Current commercial properties along Highway 3
were often created from existing residential structures or reused from other commercial uses.
Properties on the eastern edge of the block are primarily commercial but are lower- valued
establishments given the lack of visibility and commercial traffic, By combining the properties
into one holistic development, the project will be more commanding. make better use of the site,
and increase the visibility and vitality of the area. The plan envisioned will combine higher
density residential development with commercial opportunities along Highway 3. Given its
Packet page 205 of 222
prominent location within the community and Downtown, this compact, dense development will
create a more appropriate development pattern that the City will attempt to emulate elsewhere.
Describe the larger redevelopment project to which this project will be a part. Include details of
anticipated businesses. housing units, and other proposed components.
The 59 -page Development Framework anticipates redevelopment of many of the blocks within
Rosemount's Downtown. The Framework indicates higher density residential development than
the current single family development pattern. Consistent with the goals of the City Council, the
end plan will result in significantly more commercial opportunities than at present.
The anticipated redevelopment of Downtown would be comprised of approximately 215 -220 for
sale units, 210 -215 rental units, and neighborhood and specialty retail uses. Additional
commercial square footage in the short term is projected between 53,000 and 86,000 square feet.
Approximately one -third of the new space would be primarily office space. Retail uses
anticipated would be smaller retail establishments such as floral or hardware stores and personal
services such as hair and nail salons.
Based upon the tenets of the Framework, the redevelopment projects will embrace sustainable
development goals. Projects will be more compact and walkable, providing alternate lifestyle
opportunities not typically found in a suburban setting. Downtown's location and proximity to
City Hall will allow the adjoining Central Park to be the civic open space for new residents and
retail customers. The reuse of the former St. Joe's church will bring additional entertainment
opportunities into Downtown, allowing for a place for people to live, shop, and play.
Attach copy of Redevelopment Plan
Describe redevelopment phase(s) already completed and /or other adjacent development /redevelopment.
Core Block East is part of a larger redevelopment plan for Downtown Rosemount. The adopted
Framework depicts six individual sites for other redevelopment opportunities. Another area to be
included is the St. Joe's block. That site, recently purchased by the City, will house the new
Dakota County library. The City is also looking at reuse of the St. Joe's church building and has
initiated a citizens' task force to begin that study.
Describe how owners, tenants, and businesses will be temporarily or permanently relocated. Attach
relocation plan, f applicable
The City's goal is to relocate within the community as many of the existing businesses as
possible. The City has acquired the Genz -Ryan building to allow for temporary relocation of
businesses should the need arise. Further, the City has acquired from Mn/DOT and Dakota
County excess property associated with the Highway 3 road construction project which will
allow permanent relocation of some businesses should they choose to build and own their own
building. Staff has discussed various options with individual tenants for relocation into the
community in similar sized or similar style buildings to maintain the character of the businesses.
Packet page 206 of 222
Itemized Use of Funds/Expenses
Amount
Costs
Funding
Source
Land acquisition
To be determined
2.5 million
Residential construction
To be determined
16 million
Commercial construction
2.9 million
Utility work
.5 million
El
Fl
n
Total:
21.9 million
Source of Funds
Amount
Committed
Pending
Developer
To be determined
I 1
City TIF
To be determined
1 1
n
El
Fl
n
Itemize all tuii
funding sources.
Itemize project expenses.
Are any zoning amendments or variances needed? It is anticipated that the property will be rezoned as a
PUD to facilitate proposed site development.
What is the status? A formal application has not been made but is expected in January 2007.
Is a comprehensive plan amendment required? No
What is the status? N/A
Is an environmental review required? No
What is the status? N/A
Will a market or feasibility study be performed? The City completed a market study in 2003 with an
updated conducted by the CPDC in 2005
What is the status? N/A
Attach a project timeline with all actions, phases and anticipated dates.
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Indicate the number of housing units planned in the project. Attach separate sheet if necessary.
Will any existing affordable housing be demolished?
Some of the pre- existing single family homes would have been considered affordable under the Met
Council threshold.
Will there be any mechanisms to ensure long -term affordability? The developer intends to use tax
credits which will ensure units remain affordable for a minimum of 15 years.
What are the current property taxes for the project site? $2,295 for individual Clarke property; $23,411
for Core Block East Year Payable 2006
What will the estimated property tax be after redevelopment? $145,600 Pay Year 2009
How was this figure determined? Based upon similar project in Dakota County
Who determined it? Developer
Project the number of new jobs created after redevelopment. Total new jobs 40 FTEs.
Number of new jobs with wages greater than $15.00 per hour 5
Project the number of jobs retained after redevelopment. Total retained jobs =N/A FTEs.
Number of retained jobs with wages greater than $15.00 per hour N/A
Has the project site been found or suspected to be contaminated? No
Does your project include the clean up of contaminated soils, hazardous waste or materials? No, it is not
expected that clean up will be necessary.
Attach detailed information on the type of clean up, what measures have been taken to address the
contamination, consultant reports, and/or Response Action Plan.
Describe other positive environmental impacts the project will have.
The entire Core Block East was developed over time and does not comply with current
stormwater and NURP standards. Redevelopment of the site will allow the City to bring the site
into compliance with current environmental stormwater standards for water quality and quantity.
Due to the previous development pattern on the Block, the new project is projected to have equal
or Tess hard surface than the previous condition. Green space will be centralized into larger, more
usable spaces and will provide more environmental benefit. The intended land uses for the
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Total of
Units
of Owner
Units
of Rental
Units
Proposed Rents/ Sales
Prices
Single Family
Townhouse
Apartments /Condominiums
112
112
Duplexes
Other:
Indicate the number of housing units planned in the project. Attach separate sheet if necessary.
Will any existing affordable housing be demolished?
Some of the pre- existing single family homes would have been considered affordable under the Met
Council threshold.
Will there be any mechanisms to ensure long -term affordability? The developer intends to use tax
credits which will ensure units remain affordable for a minimum of 15 years.
What are the current property taxes for the project site? $2,295 for individual Clarke property; $23,411
for Core Block East Year Payable 2006
What will the estimated property tax be after redevelopment? $145,600 Pay Year 2009
How was this figure determined? Based upon similar project in Dakota County
Who determined it? Developer
Project the number of new jobs created after redevelopment. Total new jobs 40 FTEs.
Number of new jobs with wages greater than $15.00 per hour 5
Project the number of jobs retained after redevelopment. Total retained jobs =N/A FTEs.
Number of retained jobs with wages greater than $15.00 per hour N/A
Has the project site been found or suspected to be contaminated? No
Does your project include the clean up of contaminated soils, hazardous waste or materials? No, it is not
expected that clean up will be necessary.
Attach detailed information on the type of clean up, what measures have been taken to address the
contamination, consultant reports, and/or Response Action Plan.
Describe other positive environmental impacts the project will have.
The entire Core Block East was developed over time and does not comply with current
stormwater and NURP standards. Redevelopment of the site will allow the City to bring the site
into compliance with current environmental stormwater standards for water quality and quantity.
Due to the previous development pattern on the Block, the new project is projected to have equal
or Tess hard surface than the previous condition. Green space will be centralized into larger, more
usable spaces and will provide more environmental benefit. The intended land uses for the
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redevelopment will vary from the current condition and will promote businesses that have the
potential for fewer environmental impacts on the site. Site design will be more dense and the
project will provide services needed in the area, leading to a more walkable Downtown and
reduced reliance on the automobile.
Describe how the project incorporates smart growth concepts, including proximity to public transit,
pedestrian- friendly design, maximizing green space, mixed land uses, and community building
elements.
The design of the project along with the programmatic goals will lead to a more environmentally
sensitive project. Goals for Downtown include attracting residents who will be able to obtain
needed services within walking distance. For those who will drive to Downtown, the presence of
a variety of retail and service opportunities will reduce total trips as they undertake multiple
tasks in one vehicle trip.
Presently the City has minimal access to public transit. The goal of increasing residential density
in Downtown will assist in attracting more transit opportunities. For the City of Rosemount, the
Downtown location is perfectly suited for public transit and will be a destination for transit users.
The site plan for Core Block East and the Development Framework for Downtown anticipate
mixed use projects that incorporate "green" elements while accomplishing fiscal, economic, and
market goals. The goal is to recreate the vibrant, compact nature of a true Downtown, consistent
with the Downtown development character that once was the center of Rosemount's community.
Redevelopment of Downtown will begin to turn the focus of community life back to the area.
Along with the additional residential and commercial opportunities, Downtown is the epicenter
of civic activities. City Hall and soon to be constructed Dakota County Library will be sited on
the edges of Downtown. City ownership of the St. Joe's church and remaining site will mean
additional public events and programmed activities.
Packet page 209 of 222
Detailed Description of the Redevelopment Project.
The grant request is to purchase one commercial property within the greater Core Block East
area. Acquisition of all properties within Core Block East is imperative to allow redevelopment
as envisioned by the community and the adopted Framework to proceed. The Port Authority has
previously obtained six properties within the Block on a willing seller basis. The City has also
acquired other properties in the immediate area. The developer, CPDC, has also purchased one
of the lots within the Block and has a purchase agreement with the owner of another.
Negotiations continue on the remaining privately held properties.
In the City's Framework, Core Block East is proposed for Mixed Use development along
Highway 3 /South Robert Trail, with residential development on the eastern half of the site. The
current concept is consistent with the Framework. The concept plan includes 112 rental
apartment units, of which 20% will be affordable. Unit styles anticipated include two studios, 41
one bedroom. 57 two- bedroom, and 12 three bedroom apartments. On the west side of the Block,
there will be approximately 26,000 square feet of commercial development with shared parking
central to the site.
Attach a site plan, vu intty mcgi, told elevations or drawings of proposed redevelopment
Packet page 210 of 222
Attach a brief history of the sae including previous uses, activities, prior or existing contamination, and other
attempts at redevelopment
The parcels that currently hold the Rosemount Car Wash are on a city block cut through by
a rail line in the mid 1800s Ten or more freight trains continue to use the line daily. In the
late 1800s the land was part of a school property in the town of Rosemount. Plat maps from
the 1920s show the area divided into small lots. The current structure, a 1,664- square foot
concrete building, was built in 1960 The lot adjacent to the south holds a Quonset hut
installed a few years before the car wash by the grain elevator further south Single family
homes nearby, some of which have already been demohshed, had been built in the late
1940s or earher An American Legion hall was built on the block to the north m the mid
1960s.
The car wash property is in or near the area that was repeatedly targeted for redevelopment
beginning in the nud -`60s The City recognized that the nature of its Downtown was
changing as the community felt the effects of suburban growth and competition from nearby
commercial areas. The redevelopment efforts, however, were hmited and focused on blocks
to the west that fronted on State Highway 3 The nearest redevelopment that resulted in
construction was on the property immediately to the northwest of the car wash block, where
an apartment building was created in 1982 and a condominium building went up m 1988.
The City has not assessed the property for pollunon, but is not aware of any previous uses
likely to have contaminated the land.
Packet page 211 of 222
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