HomeMy WebLinkAbout3.a. Commercial Development Revenue Bond Extension (Hwy 42 Retail) , r . • �
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Agenda i tem 3a
Agenda ltem 4j
TO: Mayor, City Council, Ci#y Administrator .
FROM: Dean Johnson, I}irector of Community Develapment
DATE: November 10, 1988
SUBJ: Shopping Centee Bond Extension
' In the summer of 1985, the City appr�vad the eancept af a shapping cent�r alang
CSAH42 in South Rose Park, The City Counci! also authorized the sal� of $4.8
milliQn tax exempt commercial deueiopment revenue bonds to support Che project.
19$S was the last year these bonds were ailowed under [ederal tax la�us. The
City has no liability, obligation or exposure to these types of bonds; rather, it
serves merely as the "vehicle" ta allow the tax exem�tion.
The bonds were originally structured so they could be "parked" and reissued or
extended twice at one year intervals. The bonds techniealiy expire December l,
1�8$; however, the underwriter and bond counsel fox this issuance have
determined they can be extended one rnore tirne and be uti}ized for the current
sho�ping center proposal. Attachecfi are capies of the present concept plan,
suhrnitted l�y Riehard Dreher and Associates, general partner and developer. Alsc�,
attached are copies of a resolutifln and indenture supplement, that would permit
the extension ot' the bands.
The Planning Commission has reviewed the concept plan and recommended the
developer proceed with the platting and PUD process. Staff fee�s mc�re
comfortable with the present pian than that appro��ed for Haven Enterpxises,
because the scope of the project has been cut back and the parkingltraffic
circulation seems more appropriate. While we are nc�t in any position to make
final or formal recommendativns an the project, we see no obstacles in making a
favorable recommendation as the pr�cess maves fc�rward.
Tirc decision to exlend lhc bc>ncis, h�wever, must l�e ntade at lhis time. The
t�c�nds can not be exlendcd without C�luncil .�pprc�val ancl musl t�c au[hori•r,c�l pri��r
to December i, 1988. There is a certain convenience in this situation; in that,
the City Cauncil is in a good position to make same reasonable demands on the
� aesthetic characteristics of the development in exchange for bond approval.
I have contacted Dreher and ASsociates and requested ihat they be in a posiiion
to describe the types of building materials they pro���se to use and descril�e the
landsca�ing/screening elements. They are weti aware that the Couneil may� not
chaose to extend the bonds without an understanding �f the type of buiiding we
may end up with.
A colored rendering is being }�repared at this time and witl be avai}able along
with a presentation by the architects at the meeting. Bond counsel wili afiso be
available for any questions the Council may have. Pr�vided the Council is
satisfied with the aesthetics, I would recommend approval of the resolution to
extend the b�nds. Extending the bands does n�t commit the City to any other
}�ressures for ap�roving the }�rc�,ject. The pr�►.jert will be reviewed and approved
and{or denicd regardles5 of any tzonds that could be utilized.
Shopping Center B d Extension
•,. ' November 10, 198� ,
Page Two
Finally, I have asked for a written description of the parties involved in the
project. I think it is im�ortant to kn�w who the developers, managers and
owners of the project wilt be. That information should be available for
distribution with the packets.
One remaining issue that may be a�rpro�riate for consideration regards
krai(/sidewalk access to the development. Whiie this topic is one that will he
discussed in the course of the approval process, I think reference to this issue at
the time of bond a�rproval could result in a better commitment for proper
pedestrian access to the development. We don't know whether the co�nty trail
will be constructed along the south side of CSAH42 �r n�t. i€ it isn't, a
- c�mrnitment frc�m the develo�er is reasonable. I helieve a tr��il along 151st Sircct
to Chippendale Avenue warrants aaa���o�ai consideration.