HomeMy WebLinkAbout5.d. Approval of DEED Redevelopment Grant Resolution
EXECUTIVE SUMMARY
Port Authority Meeting Date: January 21, 2020
AGENDA ITEM: Approval of Minnesota Department of
Employment and Economic Development
Redevelopment Grant Resolution.
AGENDA SECTION:
New Business
PREPARED BY: Eric Van Oss, Economic Development
Coordinator AGENDA NO. 5.d.
ATTACHMENTS: Resolution, DEED Application APPROVED BY: LJM
RECOMMENDED ACTION: Motion to Adopt a Resolution Approving the DEED Grant
Application.
SUMMARY
The Redevelopment Grant Program was established by the 1998 legislature to assist with complex and
costly redevelopment projects that might not occur without public financial assistance. Pursuant to
Minnesota Statutes §§ 116J.571 - 116J.575, the Minnesota Department of Employment and Economic
Development (DEED) has the authority to award grants to assist development authorities with eligible
redevelopment costs. The Redevelopment Grant Program operates on a semi-annual grant cycle.
Deadlines for submitting applications are February 1 and August 1 each year when funding is available.
The Redevelopment Grant Program can pay up to 50 percent of the redevelopment costs for a qualifying
site.
Rosemount’s application is for the Morrison Downtown Redevelopment project. We are requesting
$957,817.74 from DEED to be allocated for demolition, interior abetment, sewer line, power line, and
water service abatement work. This grant requires a 50% local match of funding for eligible expenses. The
match will be made up of the $250,000 RIG Grant and private sources from Ron Clark Development.
CONCLUSION AND RECOMMENDATION
Staff is requesting approval of the attached resolution of support for Minnesota Department of
Employment and Economic Development Redevelopment Grant in the amount of $957,817.74 for the
downtown redevelopment project.
CITY OF ROSEMOUNT
DAKOTA COUNTY, MINNESOTA
RESOLUTION 2020-
A RESOLUTION APPROVING THE SUBMITTAL OF THE MORRISON
APPLICATION WITHIN THE CITY OF THE
ROSEMOUNT FOR FISCAL YEAR 2020
DEPARTMENT OF EMPLOYMENT AND ECONOMIC DEVELOPMENT
REDEVELOPMENT GRANT PROGRAM
WHEREAS, the City of Rosemount has identified a proposed project, the Morrison,
within the City that meets the Department of Employment and Economic Development
(DEED) Redevelopment Grant Program’s purposes and criteria; and
WHEREAS, the City of Rosemount has established a Redevelopment Framework for Downtown
Rosemount, which establishes goals and polices to create a pedestrian friendly, mixed use,
transit oriented economically thriving Downtown of which the proposed Morrison project
is a component; and
BE IT RESOLVED that the City of Rosemount act as the legal sponsor for project(s)
contained in the Redevelopment Grant Program to be submitted on
________________(Date), and that Kim Lindquist is hereby authorized to apply to the
Department of Employment and Economic Development for funding of this project on
behalf of the City of Rosemount.
BE IT FURTHER RESOLVED that 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.
BE IT FURTHER RESOLVED that the sources and amount of the local match
identified in the application ARE COMMITTED to the Morrison.
BE IT FURTHER RESOLVED that if the Morrison fails to substantially provide the
public benefits listed in the application within five years from the date of the grant award
the City of Rosemount may be required to repay 100 percent of the awarded grant per
Minn. Stat. § 116J.575 Subd. 4;
BE IT FURTHER RESOLVED that the City of Rosemount has not violated any
Federal, State or local laws pertaining to fraud, bribery, graft, kickbacks, collusions, conflict
of interest or other unlawful or corrupt practice.
BE IT FURTHER RESOLVED that upon approval of its application by the state, City
RESOLUTION 2009 - ____
2
of Rosemount may enter into an agreement with the State of Minnesota for the above
referenced project(s), and that City of Rosemount certifies that it will comply with all
applicable laws and regulations as stated in all contract agreements.
NOW, THEREFORE BE IT RESOLVED that the City of Rosemount Mayor and City
Clerk is hereby authorized to execute such agreements as are necessary to implement the
project(s) on behalf of the applicant.
ADOPTED this 21st day of January 2020, by the Port Authority of the City of Rosemount.
_________________________________
William H. Droste, Mayor
ATTEST:
___________________________________
Erin Fasbender, City Clerk
FY 20
i
REDEVELOPMENT GRANT APPLICATION
(updated Nov. 2018)
TABLE OF CONTENTS
Introduction
Purpose/Background.................................................................................................... ii
Funding Availability .................................................................................................... ii
Deadlines/Requirements .............................................................................................. ii
Eligible Sites ............................................................................................................... iii
Eligible Applicants ..................................................................................................... iii
Eligible Program Costs ............................................................................................... iii
Local Match Requirement .......................................................................................... iii
Required Appraisals or Assessment ........................................................................... iv
Awarding Grants ........................................................................................................ iv
Application
Cover Page....................................................................................................................1
Site Identification .........................................................................................................2
Site Valuation ...............................................................................................................2
Maps and Site Features .................................................................................................3
History ..........................................................................................................................3
Current and Future Site Use .........................................................................................3
Cost Analysis ................................................................................................................4
Sources and Uses of Funds (Budget Table) .................................................................4
Tax Increment Financing Analysis ...............................................................................5
Analysis of Redevelopment Potential ..........................................................................6
Job Creation ..................................................................................................................6
Job Retention ................................................................................................................7
Housing Data ................................................................................................................7
Other Public Benefits ...................................................................................................8
Proximity to Public Transit ..........................................................................................8
Developer/Third Party/Company Commitment ...........................................................8
Project Schedule ...........................................................................................................9
Payment Information ..................................................................................................10
Local Government Resolution ....................................................................................11
DRAFT
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ii
MINNESOTA DEPARTMENT OF EMPLOYMENT AND ECONOMIC
DEVELOPMENT
First National Bank Building
332 Minnesota Street, Suite E200
St. Paul, Minnesota 55101
Brownfields and Redevelopment Unit
651-259-7451
1-800-657-3858
REDEVELOPMENT GRANT APPLICATION
INTRODUCTION
PURPOSE/BACKGROUND:
Because there is often no incentive for the private sector to redevelop old industrial, residential
or commercial property when undeveloped parcels of land are available, public sector
investment is required to induce private development of these difficult sites. Therefore, the
Redevelopment Grant Program was established by the 1998 legislature to assist with complex
and costly redevelopment projects that might not occur without public financial assistance.
Pursuant to Minnesota Statutes §§ 116J.571 - 116J.575, the Minnesota Department of
Employment and Economic Development (DEED) has the authority to award grants to assist
development authorities with eligible redevelopment costs as defined below. The
Redevelopment Grant Program applies only to sites where there was a past use and the need to
“recycle” the land for a more productive use exists.
FUNDING AVAILABILITY:
Available funding amounts vary, depending on Legislative appropriation. According to
Legislative requirement, if enough eligible applications are received, half of the grant money will
be awarded to projects outside of the seven county metropolitan area and the other half will be
awarded to projects within the seven county metropolitan area.
DEADLINES/REQUIREMENTS:
The Redevelopment Grant Program operates on a semi-annual grant cycle. Deadlines for
submitting applications are February 1 and August 1 each year when funding is available.
Three complete sets of application documents are required for each project (1 Original
on paper, one additional set on paper and a third on CD or other memory device). They
must be received by DEED’s Brownfields and Redevelopment Unit by 4:00 p.m. on the due
date to be considered for funding. An applicant may apply for more than one project, but a
separate application must be completed for each site. NOTE: Emailed applications will not
be accepted. Please fill out the entire application. All applications must be complete
upon submission in order to qualify for a grant unless there is an exception made. DEED
must be notified before the application due date of any missing documents to qualify for
an exception. Contact DEED at 651-259-7451.
DRAFT
FY 20
iii
ELIGIBLE SITES:
Redevelopment projects where there was previous development and the need to recycle the
land for a more productive use exists. Sites are only eligible where there is a change from
one developed use to another.
ELIGIBLE APPLICANTS:
Eligible applicants for this program are statutory or home rule charter cities, economic
development authorities, housing and redevelopment authorities, counties, or port authorities.
ELIGIBLE PROGRAM COSTS:
The Redevelopment Grant Program can pay up to 50 percent of the redevelopment costs for a
qualifying site. “Redevelopment costs” or “costs” means the costs of land acquisition,
stabilizing unstable soils when infill is required, infrastructure improvements and ponding or
other environmental infrastructure, demolition costs and costs necessary for adaptive re-use of
buildings, including remedial activities. Costs incurred before the grant agreement is fully
executed are not eligible for payment.
Some examples of eligible and ineligible costs are below.
Eligible Costs
• Public acquisition*
• Demolition
• Interior abatement
• Infrastructure Improvements (e.g., water and sewer, standard sidewalks, lights, roads,
etc.)
• Ponding
• Environmental Infrastructure
*Although the statute recognizes acquisition as an eligible expense, DEED will only consider public
acquisition, and these costs are only eligible as matching costs.
Ineligible Costs
• Construction
• Contingencies
• Building Rehabilitation
• Environmental Remediation (soil and groundwater)
• Administration
• Streetscape
• Soft Costs
r abatemenIneligible Costs
LOCAL MATCH REQUIREMENT:
It is required that the applicant pay for at least one-half of the redevelopment costs as a local
match to obtain a redevelopment grant. The match can come from any money available to the
applicant.
Redevelopment costs incurred up to 12 months prior to the application due date can only be
included as part of the local match. These costs must meet the redevelopment costs definition
(see “Eligible Program Costs” above) and must be proven to be associated with and necessary
DRAFT
FY 20
iv
for the redevelopment. These prior costs should be identified in the Cost Analysis budget
section of the application.
The applicant must complete and approve the attached resolution authorizing this application and
committing the local match from the applicant (see Page 12).
REQUIRED APPRAISALS OR ASSESSMENTS:
Land appraisals of the current (as-is) and expected (pre-construction) value of the site are
required so that DEED can determine the fair market value and any business subsidy. Both
appraisals must be done by an independent appraiser using accepted appraisal methodology. In
lieu of an appraisal, the applicant may use the current and projected assessed values as
determined by the local assessor. However, a publicly-owned property must still show a value.
Values cannot be determined in any other manner. The value of the property after the
proposed development is completed is also requested. This estimate is generally based on
similar development projects in the city.
AWARDING GRANTS:
DEED will award grants to projects that provide the highest return in public benefits for the
public costs incurred and meet all of the statutory requirements. In order to evaluate the
applications for public benefits with respect to the costs incurred, the law specifies priorities
that DEED must consider.
To fulfill this requirement of reviewing applications in an objective and fair manner, the
following criteria have been assigned maximum point values in order to systematically award
grants. All assigned scores will be relative to scores awarded to other applications. Please
note, an application must receive a minimum of 50 points in order to be eligible for
funding.
1. The need for redevelopment in conjunction with contamination remediation needs.
Maximum = 15 points.
2. The redevelopment project meets current tax increment financing requirements for a
redevelopment district and tax increments will contribute to the project. Maximum =
25 points.
3. The redevelopment potential within the municipality. Maximum = 90 points.
4. The proximity to public transit if located in the metropolitan area. Maximum = 5
points.
5. Multi-jurisdictional projects that take into account the need for affordable housing,
transportation, and environmental impact. Maximum = 15 points
DRAFT
FY 20
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Brownfields and Redevelopment Unit
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):_Mayor
Applicant Address: _2875 145th Street
City: Rosemount Zip Code:55608
If the applicant is a city, what form of government? ☒ Home Rule ☐ 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: Eric Van Oss
Phone: _651-322-2059
Email: _eric.vanoss@ci.rosemount.mn.us
Mailing Address: 2875 145th Street
Project Manager for this project from the Public Entity, in the event of an award :
Kim Lindquist
Project Manager’s Phone and email: kim.lindquist@ci.rosemount.mn.us
Application Author: Eric Van Oss
Author’s Phone and email: 651-322-2059 / eric.vanoss@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.
DRAFT
FY 20
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I. SITE IDENTIFICATION AND HISTORY
SITE INFORMATION
1. Name of Site: The Morrison___________________
Site Address: _______________________________________
City, County or Township: ___________________ Zip Code: ________________
Acreage of Site: 2.66_____ Sq. Ft. of Site: 115,582__________
Minnesota Legislative District # 57B
(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: Legislative Website
2. A. Current property owner(s): E & E Enterprises Inc. And MC-Herms LLC (Shenanigans
Bar)
When was the property purchased? September 10, 2019 and September 30, 2019 For
what amount? $1,025,000 and $2,075,000
From whom was the property purchased? MC-Herms LLC and E & E Enterprises Inc.
B. Who will develop the site? Ron Clark Construction and Design
Will the developer own the property at any time? ☒ Yes ☐ No
When was/will the property be purchased? September 10, 2019 and September 30 2019
For what amount? $$1,025,000 and $2,075,000
C. Are eminent domain proceedings necessary to acquire the property on which the
redevelopment will occur? ☐ Yes ☒ No If so, explain any difficulties anticipated in
accomplishing the project.
D. Who will own the site after development? Ron Clark Construction and Design
When was/will the property be purchased? September 10, 2019 and September 30, 2019
For what amount? $$1,025,000 and $2,075,000
3. Provide a legal description of the site.
SITE VALUATION
4. What is the current appraised or assessed value of the site? $1,110,400 - ($440,000
Rosemount Center Mall and $670,000 Shenanigans)
Attach the appraisal or assessor’s value. Note: An actual value must be submitted for
publicly owned property.
5. What is the projected appraised or assessed value after the redevelopment activities have
been completed (prior to development)? $20,500,000
Attach the appraisal or assessor’s value.
6. What is the projected value after the proposed development is complete? $24,500,000
DRAFT
FY 20
3
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:
• The current condition of the site including labeled structures;
• The proposed development of the site including labeled structures; and
• 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 ☐ Mixed-use
☐ Other (Specify)
B. After Redevelopment: ☐ Industrial ☒ Commercial ☒ Residential ☒ Mixed-use
☐ Other (Specify)
11. Current economic condition:
☐ Vacant lot ☒ Developed site ☐ Other
12. How many buildings are currently on site?
Industrial ___NA__ How many are occupied? ______ If vacant, for how long? _________
Commercial 3___ How many are occupied? 3_ If vacant, for how long? _________
Residential NA How many are occupied? ______ If vacant, for how long? _________
13. Year building(s) was/were built: 1965 (Shenanigans)
14. Describe the condition of the buildings on the site:
LHB, Inc. prepared a “Report of Inspection Procedures and Results for Determining
Qualifications of a Tax Increment Financing District as a Redevelopment District” for this site.
Two out of three buildings in the proposed TIF District were found to be structurally substandard
to a degree requiring substantial renovation or clearance, because of defects in structural
elements or a combination of deficiencies in essential utilities and facilities, light and ventilation,
fire protection including adequate egress, layout and condition of interior partitions, or similar
factors which defects or deficiencies are of sufficient total significance to justify substantial
renovation or clearance. Additionally, two out of three buildings in the proposed TIF District
contained code deficiencies exceeding the 15 percent threshold required by Minnesota Statutes,
Section 469.174, Subdivision 10(c).
DRAFT
FY 20
4
15. Describe plans for existing buildings as redevelopment occurs:
All three existing buildings will be demolished. The Rosemount Plaza and Shenanigans Bar
will be demolished in phase I and the Medi-Car building will be demolished in Phase II.
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? ☐ Yes ☒ No Describe:
18. Is the new development part of an expansion of an existing Minnesota bioscience business?
☐ Yes ☒ No
19. Describe the specific activities for which DEED funds are being requested:
Demolition, infrastructure improvements (underground powerlines, water and sewer), and
interior abatement.
II. COST ANALYSIS
20. What are the total redevelopment costs as defined on Page iii? $957,817.74
21. How much money are you seeking from DEED? $478,908.87
(Up to 50% of the total redevelopment cost is eligible)
22. Fill out the budget table below 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
activities that have been 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 Sources and Uses of Funds for the Project (Budget Table)
Use of Funds
(Activity
Amount
(Total
below)
Costs
Incurred?
Y/N
Date
Incurred
Source of
Funds (List
individually)
Date Funds
Committed
Demolition
and interior
abatement
$797,004.74 No May or June
2020
DEED,
Dakota
County CDA
(RIG Funds),
Private
TBD
DRAFT
FY 20
5
(Developer)
Sanitary
Sewer Liner
and
Replacement
$69,144.00 No May or June
2020
DEED,
Private
(Developer)
TBD
Existing
Power Poles
and Line
Removal
$44,147.00 No May or June
2020
DEED,
Private
(Developer)
TBD
Water
Service
Abatement
$47,522.00 No May or June
2020
DEED,
Private
(Developer)
TBD
Total
$957,817.74
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.
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. DRAFT
FY 20
6
Construction Sources and Uses of Funds for the Project
Construction
Activity
Cost Source of Funds* Commitment Date
Construction $28,742,182.3 Private, TIF
*list sources individually
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? ☐ Yes ☒ No 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.
III. TAX INCREMENT FINANCING (TIF) ANALYSIS
24. Does the redevelopment project meet current tax increment financing requirements for a
redevelopment district? ☒ Yes ☐ No
25. If yes, check the following TIF criteria that apply.
☒ 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]); or
☐ D. A qualifying disaster area.
26. How much TIF will be used for the project? $4,000,000 will be used. $3,500,000 from this
TIF district and $500,000 from and existing TIF district.
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).
27. What is the maximum amount of TIF that can be generated? $3,500,000
28. Is TIF being used for this development project at maximum levels available? ☒ Yes ☐ No
29. If TIF is not being used fully, or at all, describe why: TIF is being used fully
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30. Is there a gap in financing after applying TIF? ☐ Yes ☒ No
If there is a gap in financing, how much is the gap? NA
If there is a gap in financing, would DEED funding remove the gap? ☐ Yes ☐ No
IV. ANALYSIS OF REDEVELOPMENT POTENTIAL
31. Describe the current conditions of the site.
The Site has been used for residential and commercial uses since at least 1937. Previous
tenants have included offices, automotive repair, grocery store, fitness clubs, and restaurants.
The existing buildings were constructed in the 1950s and 1960s.The adjacent properties have
been occupied by residences and commercial uses since 1937. Previous uses have included
offices, medical/dental clinics, an engraving facility, and restaurants. Currently, occupied by
three commercial buildings and paved parking areas. The northeast building was a one-story
building occupied by Medi-Car, an auto repair facility, and Chill Salon & Man Cave, a hair
salon. The southeast building was a one-story building occupied by Shenanigan’s, a
restaurant/bar. The western building was a two-story building occupied by the Rosemount Mall.
The Rosemount Mall was occupied by offices, retail tenants, and currently includes several
vacant spaces. The project site came back positive for asbestos contained in scattered floor tile,
the mastic, thermal system insulation, pipe fittings, and about 18,000 square increase of ceiling
texture.
32. Describe how redevelopment of the site will improve conditions in the vicinity and/or spur
adjacent development.
The proposed project is a planned unit development (PUD) located in the downtown
development district. The purpose of the district is to encourage a viable downtown area and
includes the proposed uses which are retail sales and multifamily housing. The proposed
apartment building would support the districts intent of encouraging a viable downtown area by
providing housing opportunities in the downtown area and thereby, increasing the number of
people and overall activity in the downtown. The retail component would also support the goals
of the downtown with new storefront commercial activity. The existing structures are blighted
and ill-suited to the type of commercial development sought in downtown. The proposed project
supports the Downtown Framework Plan for Rosemount by adding high density residential
development, creating a commercial environment that is different from suburban strip mall
design already available at other locations, and producing a sufficient mass of new development
to make redevelopment financially feasible. The new residences will provide a consumer base
for the subsequent retail development and existing retailers in Rosemount. This development
would also decrease the amount of curb cuts and large swaths of parking on the site, creating a
more pedestrian friendly section of town. Currently the site is heavily auto dependent and the
mixed-use development will encourage more street activity both to the site and surrounding
properties. The proposed sidewalk around the apartments would better connect residential
neighbors west of the development to the core of downtown.
33. Describe the relative adequacy of the infrastructure at the site.
The sanitary sewer servicing this site is vitrified clay pipe (VCP), over 60 years old. It is
anticipated to have significant infiltration issues and would not be a good candidate for tapping
DRAFT
FY 20
8
new services into the main without pipe replacement. Sanitary sewer televising will provide
more information about the current condition of this infrastructure, but replacement or pipe
lining are anticipated to service the site. Unused sanitary sewer main will be abandoned as part
of this project. Water will be provided by an 8” DIP that was installed in 2004 and will be
adequate. There are several unused services to this site that will need to be abandoned. The
hydrant onsite will be impacted by the new access construction and, as it is over 15 years old, is
not a good candidate for salvage and will be replaced with the project. The existing site does not
have significant pedestrian infrastructure besides the sidewalk along Trunk Highway 3. The
project will improve pedestrian access within the site and to downtown Rosemount through the
construction of internal and perimeter walkways. Electrical power is currently provided by
overhead power lines. Underground power is preferable for safety, maintenance and aesthetic
reasons. This project will move the powerlines on the western property line underground.
34. By providing hard data on current crime rates, and in a narrative, depict how the
redevelopment of the site will reduce crime.
The development is not expected to impact overall calls for service. The average annual
calls to the Rosemount Police Department from the Shenanigans/Rosemount Mall is 33.33.
The average annual number of police calls to the Waterford Apartment (Morrison
redevelopment equivalent) is 32.
35. Has the site been found or suspected to be contaminated? ☒ Yes ☐ No
If so, what measures have been taken to address the contamination? (i.e., Have you tested
the site? ☒ Yes ☐ No Do you have an approved RAP? ☐ Yes ☒ No What are the
anticipated remediation costs? ) $________
36. What will be the costs of the final development? $29,771,283
Of these costs, how much will be private? 25,042,373.10 public? $4,728,908.87
Please discuss the source of these funds and whether or not the sources are committed:
The source of public funds includes TIF ($4,000,000), Dakota County CDA ($250,000),
and DEED ($478,908.87). These funds are not yet committed. The private funds are
committed.
37. Have all of the required local/city approvals necessary for this project to proceed been
obtained (planning commission, zoning, etc.) ☐ Yes ☒ No 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 #50).
City council approvals for the project, TIF, and development agreement are pending. These
items are expected to go before the council in February 2020.
38. What are the current property taxes (as determined by the County or City Assessor) for the
site? Total property taxes for the mall and Shenanigans are $17,639 and $19,438,
respectively.
39. What are the projected property taxes after final development? $306,974
DRAFT
FY 20
9
How was this figure determined? This figure was determined by a TIF assessment
complied by Ehlers LLC (attached).
JOB CREATION
40. 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: 67 FTEs
DRAFT
FY 20
10
NEW JOBS TABLE
Position Title Total # of
Full-Time
Jobs
Total # of
Part-Time
Jobs
Part-time
Hours Per
Week
Expected
Hiring Date
Construction Workers 15-60 - - May 2020
Onsite Management and
Maintenance (post
construction)
4-7 - - Winter
2022/2023
JOB RETENTION
41. 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 and will
remain).
Total Retained Jobs: NA FTEs
RETAINED JOBS TABLE
Position Title Total # of
Full-Time
Jobs
Total # of
Part-Time
Jobs
Part-time
Hours Per
Week
Former
Location of
Retained
Jobs
NA
HOUSING DATA
42. If the site will be redeveloped for residential use, provide the following data:
RENTAL:
Total number of units: 124
Monthly rental cost per unit $1,100-2,300
Number of affordable units* 0
Level of affordability NA
Construction cost per unit $215,000
DRAFT
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OWNER OCCUPIED:
Total number of units NA
Purchase price per unit $ NA
Number of affordable units/homes
Level of affordability
Construction cost per unit $
OTHER PUBLIC BENEFITS
43. Is this a multi-jurisdictional project (a joint application, joint powers agreement, joint
development agreement, etc.)? ☐ Yes ☒ No 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.
44. Is there a positive environmental impact associated with this project, such as ponding or
other environmental infrastructure? ☒ Yes ☐ No
45. 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.
46. Does the project advance or promote the growth of the green economy as defined in Minn.
Stat. § 116J.437 (see the Revisor of Statutes web page and enter the statute number)?
If yes, please describe.
PROXIMITY TO PUBLIC TRANSIT
47. Attach a local transit schedule and highlight the lines that serve the project site or nearby
area. If a regularly scheduled route does not serve the area, please provide information
about other forms of transit that serve the community.
The proposed development is approximately 3 blocks (950 feet) from the Rosemount
Transit Station. The Minnesota Valley Transit Authority operates express bus service to
Minneapolis, Saint Paul, and local service to Apple Valley and Burnsville.
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.
48. Third Party/Company Name: ________________________________________________
Contact Person: ___________________________________________________________
Title: __________________________
Phone Number (include area code): ________________________
If there is an end-user commitment, please complete the following:
49. Third Party/Company Name: ________________________________________________
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Contact Person: __________________________________________________________
Title: ______________________
Phone Number (include area code): _____________
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V. PROJECT SCHEDULE
50. 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. Please be advised that if awarded, this schedule will
be incorporated into your future grant contract, so you should be as accurate and realistic as possible.
Scheduled Tasks
YEAR 2019 YEAR 2020 YEAR 2021
TASK Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec City Council X
Demolition X X X
Sanitary Sewer Liner X
Power Pole Light
Removal
X
Redevelopment Activities Completion date: August 2020
Construction Completion date: Winter or Spring of 2023
51. Please list any factors which would change or delay this schedule.
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VI. PAYMENT INFORMATION
Most grant payments take place through electronic funds transfer (EFT). To ensure proper
payment, a Vendor Number assigned by Minnesota Management and 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: Supplier Portal
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Conflict of Interest Disclosure Form
(to be filled out by the applicant)
This form gives grantees an opportunity to disclose any actual, potential or perceived conflicts
of interest that may exist when receiving a grant. It is the grantee’s obligation to be familiar
with the Office of Grants Management (OGM) Policy_08-01, Conflict of Interest Policy for State
Grant-Making and to disclose any conflicts of interest accordingly.
All grant applicants must complete and sign a conflict of interest disclosure form.
I or my grant organization do NOT have an ACTUAL, POTENTIAL, or PERCEIVED
conflict of interest.
If at any time after submission of this form, I or my grant organization discover any conflict of
interest(s), I or my grant organization will disclose that conflict immedi ately to the appropriate
agency or grant program personnel.
I or my grant organization have an ACTUAL, POTENTIAL, or PERCEIVED conflict of
interest. (Please describe below):
If at any time after submission of this form, I or my grant organization discov er any additional
conflict of interest(s), I or my grant organization will disclose that conflict immediately to the
appropriate agency or grant program personnel.
Printed name:
Signature:
Organization:
Date:
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