HomeMy WebLinkAbout5.a. Establishment of Connemara Industrial Development District and the Adoption of a Development Plan for a Recreation Facility
EXECUTIVE SUMMARY
Port Authority Meeting Date: May 17, 2022
AGENDA ITEM: Port Authority Establishment of
Connemara Industrial Development
District and the Adoption of a
Development Plan for a Recreation
Facility.
AGENDA SECTION:
Public Hearing
PREPARED BY: Eric Van Oss, Economic Development
Coordinator AGENDA NO. 5.a.
ATTACHMENTS: Resolution; Port Authority Industrial
Development District Plan APPROVED BY:
RECOMMENDED ACTION:
1. Hold a Public Hearing
2. Motion to Approve a Resolution Establishing the Connemara Industrial Development District
and Adopting the Development Plan for the Connemara Industrial Development District
BACKGROUND
As part of the city’s partnership with Life Time on a commercial recreation facility, the Port Authority is
required to establish a Development Plan as part of an Industrial Development District to facilitate the
necessary financing for the development. The Development Plan outlines the project plan and budget,
while also outlining how it aligns with the City’s economic development goals.
The area within the boundaries of the Development District is zoned for commercial use and, although
acquired by a private developer for commercial development, has remained undeveloped for more than a
decade. The Port and the City have long targeted the Development District for economic development. The
City desires to create the Development District and issue obligations to construct the Recreational Facility to
spur economic development within the Development District.
On April 26th, the Rosemount Planning Commission reviewed the attached Development Plan and
determined that it is in general conformance with the city’s Comprehensive Plan. Prior to establishing the
boundaries of and undertaking public activities within the industrial development district, the Port
Authority must submit the development plan and budget to the City Council for approval. The City
Council will then consider approval of a development plan and budget following a public hearing.
RECOMMENDATION
Staff recommends the Port Authority approve the resolution establishing the Connemara Industrial
Development District and adopting the Development Plan for the Connemara Industrial Development
District.
ROSEMOUNT PORT AUTHORITY
DAKOTA COUNTY, MINNESOTA
RESOLUTION 2022-02
A RESOLUTION APPROVING THE ESTABLISHING OF
CONNEMARA INDUSTRIAL DEVELOPMENT DISTRICT AND
ADOPTING A DEVELOPMENT PLAN THEREFOR
WHEREAS, in furtherance of the objectives of the Rosemount Port Authority (the “Port Authority”) as
detailed in the Laws of Minnesota 1991, Chapter 291, as codified in Minnesota Statutes, Section 469.0813, and a
certain enabling resolution adopted by the City Council of the City of Rosemount, Minnesota (the “City
Council”), on September 3, 1991 (the “Enabling Resolution”), the Commission of the Port Authority (the
“Commission”) is considering establishing Connemara Industrial Development District (the “Development
District”) and adopting a development plan for the Development District as set forth the document entitled
“Development Plan for Connemara Industrial Development District” (the “Plan”), pursuant to Minnesota Statutes,
Sections 469.048 to 469.068 and Section 469.0813 (the “Act”); and
WHEREAS, the Enabling Resolution requires that prior to establishing the boundaries of and
undertaking public activities with respect to an industrial development district, the Port Authority must submit the
development plan and budget to the Planning Commission of the City (the “Planning Commission”) for review
and comment regarding the consistency of the development plan with the City’s comprehensive plan; and
WHEREAS, on April 26, 2022, the Planning Commission received and reviewed the Plan, which sets
forth a development program and budget for the Development District , which sets forth a development program
and budget for the Development District, and found that the Plan conforms to the general plan for t he
development or redevelopment of the City as a whole; and
WHEREAS, pursuant to the Act, the Commission may create and define the boundaries of industrial
development districts in their port districts after holding a public hearing on the matter, notice of which has been
published in a daily newspaper of general circulation in the port district at least 10 days prior to the public
hearing;
WHEREAS, on the date hereof, after having published notice in the St. Paul Pioneer Press, a daily
newspaper of general circulation, 10 days prior hereto, the Commission conducted a public hearing on the
Development District and the Plan and received public comments on the same; and
WHEREAS, the Enabling Resolution requires that prior to establishing the boundaries of and
undertaking public activities with respect to an industrial development district, the Port Authority must submit the
development plan and budget to the City Council for approval and the City Council may consider approval of a
development plan and budget following a public hearing which has been duly noticed at least 10 days in advance
in the official City of Rosemount, Minnesota (the “City”) newspaper; and
WHEREAS, the Port Authority (i) has submitted the Plan to the City Council; (ii) requested that the City
hold a public hearing on the Development District and the Plan on the date hereof , notice of which has been
published in the City’s official newspaper not less than 10 days prior hereto; and (iii) requested C ity Council
approval of the Development District and the Plan; and
WHEREAS, pursuant to the Act, specifically Minnesota Statutes, Section 469.058, subdivisions 1 and 3,
the Commission may create an industrial development district if it finds that (i) said district is proper and
desirable to establish and develop industrial developments or redevelopments in its port district and (ii) that said
district consists of “marginal property,” defined by Minnesota Statutes, Section 469.048, subdivision 5 as
property that suffers from at least one of the following conditions:
(a) Faulty planning causing deterioration, disuse, or economic dislocation;
(b) The subdividing and sale of lots too small and irregular for good use and development;
(c) Lots laid out without regard to their physical characteristics and surrounding conditions;
(d) Inadequate streets, open spaces, and utilities;
(e) Areas that may flood;
(f) Lower values, damaged investments, and social and economic maladjustment reducing taxpaying
capacity to the extent that tax receipts are too low to pay for the public services rendered;
(g) Lack of use or improper use of area, resulting in stagnant or unproductive land that could otherwise
contribute to the public health, safety, and welfare of the port district;
(h) Lower population and some improper use of areas, causing decline, and requiring more public money
for new public facilities and public services elsewhere;
(i) Property valuation too low to establish a local improvement district to construct and install streets,
walks, sewers, water, and other utilities;
(j) Land within an industrial area not used for industry but needed for industrial development of the area;
or
(k) State-acquired tax forfeited land.
WHEREAS, when the development of marginal property in port districts cannot be done by private
enterprise alone, it is in the public interest for the purpose of protecting and promoting the economic security and
general welfare of residents in port authorit y districts for the port authority to assist in properly developing said
margi nal property by appropriate means, including, but not limited to (i) acquiring land, including through the
power of eminent domain; (ii) planning; (iii) making necessary improvements; and (iv) advancing and spending
public money.
NOW THEREFORE, BE IT RESOLVED by the Commission of the Rosemount Port Authority as follows:
1. It is hereby found and determined that finds that the Development District is proper and desirable to
establish the Development District pursuant to the Act, because there is a need for development and
redevelopment within the City and, in particular, within the Development District, and a need to
provide an improved local tax base, to provide public facilities, to provide employment opportunities,
and to improve the general economy of the City and the State. The Commission finds that the City
lacks adequate public recreational facilities to serve the needs of the City’s population. Acquisition
of land at the proposed site in the Development District will allow the Authority to facilitate
development of a recreational facility and leased to a private operator. The proposed site in the
Development District will provide adequate space to develop such recreational facility. The
Development District will allow the Port Authority to encourage commercial development within the
Development District and stimulate future development of the City, including attraction of
commercial development by providing access to public services, including without limitation
recreational facilities and services, to the citizens of and visitors to the City. The recreational facility
is a necessary public facility and the site will be acquired and developed at a cost reasonably related
to the public purpose to be served without need of any residential clearance activities. The additional
findings set forth in the Plan are incorporated herein by reference.
2. It is hereby found and determined that the Development District. consists of “marginal property” as
defined by Minnesota Statutes, Section 469.048, subdivision 5. The area within the boundaries of the
Development District is zoned for commercial use and, although acquired by a private developer for
commercial development, has remained undeveloped for more than a decade. The Authority and the
City have long targeted the Development District for economic development. The Authority desires
to create the Development District and issue obligations to construct a recreational facility to spur
economic development within the Development District.
3. It is hereby found and determined that the development program and budget set forth in the Plan will
carry out the objectives of the Development District by assisting economic development and
redevelopment, promoting the economic security and general welfare of residents of the Port
Authority district , and enhanc ing the tax base.
4. The development program and budget as set forth in the Plan, having been duly reviewed and
considered by the Commission, is approved and the area described therein is hereby designated as
Connemara Industrial Development District, subject to City Council approval.
Adopted by the Commission of the Rosemount Port Authority this 17th day of May, 2022.
________________________________ _______________________________
Logan Martin, Executive Director Paul Essler , Chair
RS125-19-788305.v4
DEVELOPMENT PLAN
FOR
CONNEMARA INDUSTRIAL DEVELOPMENT DISTRICT
PORT AUTHORITY OF THE CITY OF ROSEMOUNT
CITY OF ROSEMOUNT, MINNESOTA
Approved by the City Council: May 17, 2022
Adopted by the Commission of the Port Authority: May 17, 2022
Prepared by:
Kennedy & Graven, Chartered (JSB)
150 South 5th Street, Suite 700
Minneapolis, MN 55402
(612) 337-9300
RS125-19-788305.v4 i
TABLE OF CONTENTS
Page
Section A. Introduction and Background ....................................................................... 1
Section B. Description of Development District ............................................................ 1
Section C. Definitions ..................................................................................................... 1
Section D. Statutory Authority ....................................................................................... 3
Section E. Statement and Findings of Public Purpose ................................................... 3
Section F. Statement of Objectives ................................................................................ 4
Section G Financing and Budget ................................................................................... 5
Section H Property Acquisition ..................................................................................... 5
EXHIBITS
EXHIBIT A Map of Connemara Industrial Development District ............................................... A-1
RS125-19-788305.v4 1
A. Introduction and Background.
The Port Authority of the City of Rosemount, Minnesota (the “Authority”), proposes to
establish the Connemara Industrial Development District (the “Development District”), as provided
for in Minnesota Statutes, Chapter 469.058. This document comprises the development plan and
budget (the “Development Plan”), as provided for in the Enabling Resolution.
The area within the boundaries of the Development District is zoned for commercial use and ,
although acquired by a private developer for commercial development, has remained undeveloped
for more than a decade. The Authority and the City have long targeted the Development District for
eco nomic development. The Authority desires to create the Development District and issue
obligations to construct the Recreational Facility to spur economic development within the
Development District .
B. Description of Development District
Connemara Industrial Development District , established hereby, consists of the area within
the boundaries generally illustrated in the map attached as Exhibit A, as the same may be amended
C. Definitions.
For the purposes of this Development Plan, the following terms shall have the following
meanings, unless the context specifically requires otherwise:
“Act” means collectively, the EDA Act, the Enabling Act, the HRA Act, and the Port
Authority Act .
“Authority” means the Port Authority of the City of Rosemount, established pursuant to the
Enabling Act.
“Commission” means the Commission of the Authority.
“City” means the City of Rosemount, Minnesota, a statutory city and municipal corporation
under the laws of the State of Minnesota.
“City Council” means the City Council of the City.
“Comprehensive Plan” means the City's Comprehensive Plan, as amended, a compilation of
policy statements, goals, standards and maps for guiding the physical, social and economic
development of the City and including a land use plan, a community facilities plan and a
transportation plan which has been prepared and adopted by the City.
“Costs” means all legally permissible costs incurred or to be incurred by or on behalf of the
Authority in carrying out the Development Plan, including but not limited to: (a) the costs of
any development or redevelopment activities consistent with the Development Plan as
originally adopted or subsequently amended; (b) costs of administering the Development
RS125-19-788305.v4 2
District; and (c) debt service payments on any obligations issued to finance Costs authorized
by the Development Plan.
“County” means the Dakota County, Minnesota.
“Development District ” means Connemara Industrial Development District , established
hereby, as the same may be amended, the boundaries of which are generally illustrated in the
map attached as Exhibit A.
“Development Plan” means this development plan and budget for the Development District,
dated June 21, 2022, as it may be amended or supplemented from time to time.
“EDA Act” means Minnesota Statutes, Sections 469.090 to 469.1082.
“Enabling Act” means Minnesota Statutes, Section 469.0813, the special law applicable to
the City that authorizes the Authority to exercise powers under the Port Authority Act and the
HRA Act .
“Enabling Resolution” means that certain resolution adopted by the City Council on
September 3, 1991, which established the Port Authority and its policies and procedures
and also established the Authority as an economic development authority and authorizes
the Authority to exercise powers under the EDA Act .
“HRA Act” means Minnesota Statutes, Sections 469.001 to 469.047.
“Port Authority Act ” means Minnesota Statutes, Sections 469.048 through 469.068, as
amended.
“Recreational Facility” means the recreational facility to be constructed in the Development
District , owned by the Authority, and which may be leased to a private operator.
“School District” means Independent School District 196.
“State” means the State of Minnesota.
RS125-19-788305.v4 3
D. Statutory Authority.
The Authority is authorized under the Act and pursuant to the Enabling Resolution to
undertake and administer the Development Plan and the Development District, and to finance Costs
through the issuance of bonds. It is the intention of the Authority, notwithstanding the enumeration
of specific goals and objectives in this Development Plan, that the Authority shall have and enjoy
with respect to the Development District the full range of powers and duties conferred upon the
Authority pursuant to the Act and such other legal authority as the Authority may have or enjoy from
time to time. The Authority is authorized under the Act to undertake and administer the Development
Plan and the Development District, and to finance Costs of the Development District through issuance
of bonds.
E. Statement and Finding of Public Purpose
The Authority finds there is a need for development and redevelopment within the City and ,
in particular, within the Development District, and a need to provide an improved local tax base, to
provide public facilities, to provide employment opportunities, and to improve the general economy
of the City and the State. The sound development of the economic security of the residents of the
City depends upon proper development of marginal and other property, which is defined in Section
469.048, subdivision 5, of the Port Authority Act and includes property that meets any one of a
number of conditions, including properties whose values are too low to pay for the public services
required or rendered and properties whose lack of use or improper use has resulted in stagnant or
unproductive land that could otherwise contribute to the public health, safety, and welfare.
The Authority finds that the Development District is proper and desirable to establish and
develop a system of harbor and river improvements and industrial developments in its port district.
For this purpose, "development" includes redevelopment, and "developing" includes redeveloping.
The Authority finds that , in many cases, marginal property cannot be developed without
public participation and assistance including proper planning, land acquisition, clearance of blighted
constructed improvements, and the financing of various public and private improvements necessary
for development and redevelopment. In cases where the development of marginal and other property
cannot be done by private enterprise alone, the Authority finds it to be in the public interest to consider
the exercise of its powers, the expenditure of public money and the provision of other means and
impetus for development.
The Authority finds that the City lack s adequate public recreational facilities to serve the needs
of the City’s population. Acquisition of land at the proposed site in the Development District will
allow the Authority to facilitate development of the Recreational Facility and encourage development
within the Development District . The proposed site in the Development District will provide adequate
space to develop the Recreational Facility. The Development District will allow the City and the
Authority to encourage commercial development within the Development District and stimu late
future development of the City, including attraction of commercial development by providing access
to public services, including without limitation recreational facilities and services, to the citizens of
and visitors to the City. The Recreational Facility is a necessary public facility and the site will be
RS125-19-788305.v4 4
acquired and developed at a cost reasonably related to the public purpose to be served without need
of any residential clearance activities.
Development of the Recreational Facility is anticipated to provide a stimulating effect for
development of other parcels in the Development District . The Authority specifically finds that (i)
certain property within the Development District may not be available for development without public
assistance; (ii) that , with public financial assistance, the activities in the Development Plan will afford
maximum opportunity, consistent with the needs of the City as a whole, for the development of the
Development District by private enterprise, and (iii) that the Development Plan conforms to the
general plan for the development of the City as a whole.
F. Statement of Objectives.
The Authority seeks to achieve the following objectives for the improvement of the
Development District through the Development Plan.
1. Promote the prompt development and redevelopment of property within the
Development District in a manner consistent with the City comprehensive plan, which
property is currently less productive because of insufficient pubic infrastructure, lack
of adequate community services, or general marginal conditions.
2. Promote the development of adequate public facilities necessary to serve the
Development District and the City as whole, including without limitation the
development of the Recreational Facility.
3. Promote the concentration of appropriate commercial and industrial development
within the Development District in order to enhance the City’s tax base.
4. Promote and secure additional employment opportunities within the Development
District and the City for residents of the City and the surrounding area, which would
thereby improv e living standards and prevent unemployment and the loss of skilled
labor and other human resources in the City;
5. Spur economic development to secure an increase in taxable market valuations in
order to better enable the City, the School District, the County and other taxing
jurisdictions to pay for public improvements and governmental services and programs
required to be provided by them; and
6. Construct, acquire or finance any public facilities, including recreational facilities,
sanitary sewer, water, storm drainage and roads, deemed necessary and desirable for
the development or redevelopment of the Development District.
7. Assist in development or redevelopment through provision of public services,
demolition and relocation, soil and terrain corrections or site improvements, or land
acquisition, all in cases deemed appropriate by the Authority.
RS125-19-788305.v4 5
8. Employ any powers of the Authority under the Act for the benefit of the Development
District in such cases and upon such terms as the Authority may deem appropriate.
G. Financing and Budget.
The Authority’s initial financing plans relate to Costs in connection with the construction
of the Recreational Facility. The Authority plans to finance the Costs primarily through the
issuance of general obligation bonds.
The Authorit y may also use revenues from any other source available to it to pay any Costs,
including without limitation landfill tipping fees and lease payments from a private operator of the
Recreational Facility.
The Authority’s initial expenditures for the Development District are not expected to exceed
the following:
Land Acquisition $2,500,000
Costs of Issuance and other transactional costs $164,000
Capitalized Interest Expense $6,600,000
Site Planning, Grading, and Site Improvements $2,500,000
Building Construction $50,000,000
Total $61,764,000
In addition, the Authority will use available revenues to pay interest expense on bonds and
other obligations and ongoing fiscal administration expenses.
Any changes to the proposed budget from time to time may be submitted to the Commission
and City Council for approval by resolution without the need for a formal amendment to this
Development Plan.
H. Property Acquisition
The Authority may acquire such property, or interests therein, as the Authority may deem
necessary or desirable to carry out the objectives of the Development Plan.
B-1
RS125-19-788305.v4
EXHIBIT A
Map of Connemara Industrial Development District