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HomeMy WebLinkAbout5.a. Commercial Enhancement Plan `/ CITY OF ROSEMOUNT EXECUTIVE SUMMARY FOR ACTION CITY COUNCIL MEETING DATE: May 20, 1997 AGENDA ITEM: Commercial Enhancement Plan AGENDA SECTION: Dept. Heads Report PREPARED BY: Dan Rogness, Community Development Director AGEN���i.lYl � J A � ATTACHMENTS: Memo dated 5/14/97 APPROVED BY: / The Mayor has requested that staff provide a status report on the Commercial Plan for the City of Rosemount in order to determine"where to go from here". This item will also be discussed at the Council's goal setting meeting on May 16. Based on a meeting that was held a week ago between the Mayor, myself and other community persons, the general consensus of the group was to get something started before the Plan goes through any more review steps. The group felt strongly that some commitment by the City(and businesses) was needed in order to gain support for the long-range plan. Please review the attached information for further discussion. RECOMMENDED ACTION: Discussion Only COUNCIL ACTION: � MEMO CITY OF ROSMEOUNT, MINNESOTA TO: Mayor and City Councii FROM: Dan Rogness, Community Development Director DATE: May 14, 1997 RE: COMMERCIAL CENTER ENHANCEMENT PLAN I am providing you a status report on this topic: • The city's contract with RLK Associates requires them to be involved in the following additional meetings: (1) one more with the Focus Committee; (2) one with the general public; and (3) two with the Planning Comm. & City CounciL • The RLK contract requires them to complete a Preliminary Streetscape Plan (substantially completed) and a Final Streetscape & Urban Design Plan. • Four"action items" were identified for 1997 by the Focus Committee at its last meeting in December of 1996: (1) a pedestrian connection from the Community Center and High School to the downtown area; (2) landscaping along TH 3 south of Kwik Trip to CSAH 42; (3) decorative lighting expansion from 145th into the commercial area; and (4) sign ordinance improvements. • City staff met with NSP representatives recently to review lighting options. We have sent additional information to them in order that a feasibilitylcost proposal can be submitted to the City. It may be possible to replace the 1985 decorative lighting along 145th Street with the "acorn" style light (double globes) by the end of this year. • City staff is evaluating funding sources (see attachment) to complete the lighting, walkway from the Community Center to the downtown, and the landscaping south of Kwik Trip. Short and long-term funding sources must be reviewed and approved as the key to implementation. • Staff's goal woultl be to develop a 5-10 year"action plan" for streetscape improvements; however, funding sources will be the challenge more than the design plan itself. For example, a similar corridor plan in Inver Grove Heights , resulted in a $2.2 million project estimate. However, they are proceeding with ' one phase this year totaling $370,000 with four financing sources: (a) $200,000 ' from special assessments, (b) $100,000 from a Host Community Fee; (c) $50,000 from community fund raising; and (d) $20,000 from citizen in-kind work. d Commercial Plan Page 2 • At a minimum, I expect that streetscape improvements that relate primarily to lighting and landscaping would require $100,000/year to be allocated for the next five years. However, the cost for completing all components of the draft Streetscape & Urban Design Plan would probably be closer to $3-$5 million. • An additional key component of new streetscape along TH 3 and CSAH 42 is whether MnDOT and Dakota County have resources to assist in streetscape projects. Ideally, these types of improvements go hand-in-hand with highway reconstruction projects. Sidewalk reconstruetion and new sidewalks may be , necessary as part of a lighting/landscaping project. , • Finally, we need to clarify the process in which a final plan can be reviewed and �I approved to complete RLK's contract. Support for short and long range � improvements will be a key part of exploring all possible sources of revenue (since some property owners will likely be asked to pay a portion of the cost). More information on this subject will likely be available as a result of Friday's goal setting meeting. � � FINANCING SOURCES FOR COMMERCIA� ENHANCEMENTS Rosemount, Minnesota The City Council should ask itself the following questions as it considers sources of financing for public streetscape improvements: • - � What sources of revenue are viewed as short-term vs. lon term. Exam le: tax 9 � p levies are subject more to legislative changes than are fees) • What sources are most realistic and fair to adjacent property owners and to citywide taxpayers? (Example: assessments for 50% of the project's cost may actually not be proven to benefit the property owner that much) • What sources of revenue most closely match the expenditure of funds? (Example: a port authority levy for public streetscape may not match its primary purpose) • What will be the "opportunity cost" for spending city funds on commercial streetscape? (Example: spending $100,000/year from Street CIP will take away from other street projects) 1. C.I.P. LEVY. This source is part of the annual tax levy of the city, which is divided into three categories: (a) buildings, (b) streets, and (c) equipment. The total amount levied for 1997 was $720,800. 2. ASSESSMENTS. This source is normally part of all public improvement projects, which is a direct payment from the benefiting property owner. Most assessments in Rosemount, unless part of a newly developed area, have been less than '/4 the total project cost. 3. TAX INCREMENT FINANCING. This source can be used for commercial enhancements only if the following takes place: (1) the TIF Plan for the corresponding District specifically budgets for this type of expenditure, and (2) tax increments are sufficient to pay for some or all of project costs. 4. FRANCHISE FEE. This source is a percent of each customer's electric and/or gas bill with a cap per customer. A franchise fee must be allowed in the corresponding franchise agreement and then approved annually by the city counciL 5. PORT AUTHORITY. The city's port authority has the ability to levy �'�� approximately $100,000 annually for operations and/or projects, which is not subject to I, the city's levy/bonding limitations. ! 6. OTHER. Grants and donations are other sources of revenue for this type of project, ranging from national to local organizations. _ t Rosemount Commercial Enhancements Page 2 FINANCING CONCLUSIONS: • The city council added $150,000 to the CIP in 1997 that would be available for streetscape projects starting this year. Future CIP designations for this would compete against other street/building/equipment projects. • Assessments for streetscape improvements along highways tend to benefit the larger community (beautification) rather than the adjacent property owners ... unless new sidewalks and other municipal utilities are part of the project. • The downtown redevelopment TIF District expires year-end 2000 with increments committed to existing debt through 1999. Since the TIF Plan, including all modifications, did not show expenditure budgets for this type of improvement, a Plan amendment may provide nearly $400,000 in 2000. • The franchise fee is often seen as "another tax" that is not supported by the ', general public. However, an electric fee can be viewed as most directly tied to ', lighting improvements. I • Again, a levy for the port authority ma not be supported by the general public III Y unless it has significant benefits relating to jobs and tax base (which is not i directly evident in streetscape improvements. '� • Grants and donations usually sound good, but many grant programs are not established for beautification, and many strings can be attached to those dollars. STAFF'S PRELIMINARY RECOMMENDATIONS: • The city council must identify how high of a priority commercial center enhancements (public streetscape) are compared to other municipal needs. • The city council must give some sense of direction to city staff in relationship to completing short- and/or long-term plans (i.e., make incremental improvements each year or plan for a major facelift in the future). • The city council must provide initial support for certain funding sources and direct staff to further evaluate specific ones, if necessary. • The city council must direct staff to initiate specified improvements in 1997, if desired, based on available funding resources (i.e., CIP balance). • The city council must consider how much public and how much private involvement will be necessary to initiate/complete commercial enhancements. ► � ROSEMOUNT COMMERCIAL STREETSCAPE & URBAN DESIGN PLAN Concept Plan Topical Categories 1 . Beautification Measures • signs, lighting, landscaping, entry monuments, banners, etc. 2. Pedestrian Connections • to/from neighborhoods, crosswalks, trails, sidewalks, etc. 3. Civic S.�aces/Activities � parks, plazas, place of history, etc. 4. Redevelopment • property acquisition, relocation, clearance, clean-up, etc. 5. Hiahway 3 Reconstruction • urban sections, lane design, right-of-way, etc. 6. Desiqn Guidelines • higher density, setbacks, exterior materials, buiding design, etc. 'I 7. Function '' • public/private parking, business retention & expansion, etc. � a I ACTION PLAN FOR 1997 PROPOSED COMMERCIAL IMPROVEMENTS Rosemount, Minnesota ' The followin im roveme ts II g p n were suggested by the Focus Committee to complete in 1997 as a way to keep momentum going for short- and long-term public improvements in the commercial district of Rosemount: 1. LANDSCAPING. Trees, shrubs and/or flowers are proposed for the land area south of Kwik Trip on the east side of Hwy. 3 (to the northeast intersection of Highways 3 and 42) in order to beautify the southem commercial entrance. 2. LIGHTING. Additional decorative lighting should be continued in segments along Hwy. 3 (possibly north of 145th), similar in style to those that were recently installed on 145th Street west of Cameo Avenue. 3. PEDESTRIAN WALKWAY. A trail should connect the Community Center and the High School on the west side of Hwy. 3 to the commercial center, which would become part of a larger pedestrian walkway system. 4. SIGNS. The city should examine the current sign ordinance in order to allow the use of "sidewalk signs" (small 2-sided boards that identify the business or an event), which provide a small town character to the more historic commercial area. In addition, the city will be accepting bids for a new Erickson Park shel#er that will i serve a variety of needs in this "civic center" park. Staff is also reviewing plans that may add a new parkway street along the west side of City Hall in order to provide better access "through" an area that will serve more public functions in the future.