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1998.12.14 PC Meeting PacketCRYSTAL PLANNING COMMISSION AGENDA SUMMARY December 14, 1998 7:00 PM A. Approval of Minutes from November 9, 1998 Meeting B. Other Business 1. Review of Tax Increment Financing Plan for proposed TIF District #4 (Lamplighter Apartments), including consideration of a resolution finding the proposed modification of Redevelopment Project No. 1 to be consistent with the Comprehensive Plan of the City 2. Request to set a public hearing for a lot division of an existing parcel located at 4957 Florida Ave N into two parcels C. Adjournment • For additional information, contact John Sutter at 539-1142 • F:\GROU PS\COM DEVLP\PLAN NINGTLA NCO M M\1 998\1 2-Magendasummary.doc 199 November 9, 1998 CRYSTAL PLANNING COMMISSION MINUTES The regular meeting of the Crystal Planning Commission convened at 7:00 p.m. with the following present: Bonnell, Elsen, Graham, Koss, Krueger, Magnuson, Nystrom.and VonRueden. The following was absent: Kamp. Also present were Community Development Director Norris, Planner Sutter and Recording Secretary Scofield. A. Moved by Commissioner Krueger and seconded by Commissioner Elsen to approve the minutes of the September 14, 1998, meeting. Motion carried. B (1). Chair Magnuson declared this was the time and the place as advertised for a public hearing to consider Application 98-16.8 for a Plat of Neznik's Second Addition at 5108 and 5120 West Broadway (P.I.D. 09-118-21-24-0009 and 09-118-21-24-0064), as submitted by John Neznik, Crystal MN. Staff presented the following: The requested plat approval would formally combine two parcels of record into a single parcel. Because staff has already approved an administrative combination of the two parcels, and because the new building addition will be located on both parcels, the requested plat would have no significant effect on the property or surrounding area. No one appeared in opposition. Moved by Commissioner Nystrom and seconded by Commissioner VonRueden to close the public hearing. Motion carried. Moved by Commissioner Nystrom and seconded by Commissioner Elsen to recommend to the City Council to approve Application 98-16.8 for a Plat of Neznik's Second Addition at 5108 and 5120 West Broadway (P.I.D. 09-118-21-24-0009 and 09-118-21- 24-0064), as submitted by John Neznik, Crystal MN. The findings of fact are as follows: Staff has reviewed and everything is in order. This is a plat of two properties that have already been combined administratively. Motion carried. C (1). Review of preliminary site plan for an office/warehouse building proposed to be located along County Road 81 between Bass Lake Road and Wilshire Boulevard (developer: Industrial Equities, Inc.) Staff presented the following: The City plans to acquire K Wong's (5430 Lakeland F:\GROUPS\COMDEVLP\PLANNING\PLANCOMM\1998111-09\MINUTES.doc 200 November 9, 1998 Avenue North) and the house at 5549 Zane Avenue North and zone the entire site I-1 Light Industrial. There will be buffering and screening between the site and the single family residential included in the formal site plan. Commissioner Krueger asked who would maintain the frontage road. The City would likely maintain the portion of the road near the apartments to preserve access.. Moved by Commissioner Bonnell and seconded by Commissioner Krueger to direct staff to proceed with a public hearing for rezoning as soon as is practical, and to proceed with a public hearing for site plan review upon receipt of a completed application from the developer. Motion carried. C (2). Discussion Item: Buffering requirements for commercial and industrial uses adjacent to residential uses Staff presented the following: The status quo of no specific distance buffering and guidelines for distance buffering for the various types of districts when directly abutting property in a residential district. Commissioner Elsen stated guidelines are not mandates. Commissioner Koss stated greater distance would be better. Commissioner Bonnell favored the status quo. He asked how many developers have complained in the past. Check with other cities regarding landscaping and setback requirements and if more restrictive than in the past. C (3). Planner Sutter stated Paster Enterprises came before the Council asking to modify the Sign Ordinance to have an additional pylon sign or to replat. City Attorney has stated that consideration of a plat should be based on whether it meets the requirements for plats, not on whether it is being done to allow more signage. Chair Magnuson stated Coon Rapids does an excellent job in its signage and also Plymouth. D. Moved by Commissioner Nystrom and seconded by Commissioner Elsen to adjourn. The meeting adjourned at 8:15 p.m. Motion carried. Chair Magnuson Secretary Nystrom F:\GROUPSICOMDEVLP\PLANNING\PLANCOMM\1998\11-09\MINUTES.doc �edw,,) re a M E M O R A N D U M DATE: December 9, 1998 TO: Planning Commission (December 14th meeting - Item B-1) FROM:V�John Sutter, Planner and Redevelopment Coordinator SUBJ.: Lamplighter Apartments I Nafstad Property Proposed Modifications to Redevelopment Project No. 1 A. BACKGROUND. Tax Increment Financing is a development tool in which the increment (additional tax revenue generated by increased valuation as a result of new development) is captured and used to help defray the cost of improvements necessary for the development to occur. The Tax Increment District is the area from which the revenues are captured, and the Redevelopment Project Area is the area in which the revenues can be spent. The proposed addition to Redevelopment Project No. 1 includes the area from 29th Avenue to 32nd Avenue and Brunswick Avenue to Douglas Drive (approx. 30 acres). A new Tax Increment District would be created to include the existing Lamplighter Apartments and a possible assisted care facility site immediately to the north. State law requires that the Economic Development Authority request the opinion of the Planning Commission prior to approving a modification to the redevelopment plan. The City Council will hold a public hearing on the Redevelopment Plan and Tax Increment Plan on Tuesday December 15th The following items are attached: ❑ Map showing Comprehensive Plan land use designations for the area ❑ Draft Tax Increment Financing Plan ❑ Resolution finding that the modification of Redevelopment Project No. 1 is consistent with the zoning plan and development goals of the City. B. CONSIDERATIONS The area proposed to be added to Redevelopment Project No. 1. includes the Lamplighter Apartments, the vacant Nafstad and Gale properties, and several single- family houses along the east side of Douglas Drive. It is important to note that the inclusion of these properties within the project area does not mean that work is proposed for all of these properties. It does, however, enable the EDA to expend increment in this area. Qre The proposed addition to the project area is guided for a variety of land uses, as shown in the attached map. (Note: Based on the recommendation of the Nafstad Property Task Force, in 1995 the Comprehensive Plan was amended to guide the area from 30' Avenue to 31St Avenue and from Brunswick Avenue to Douglas Drive for Low Density Residential; previously, it had been guided for High Density Residential.) While the exact layout of the proposed assisted care facility is not known, it would likely be located immediately north of the Lamplighter Apartments. Therefore it appears that the facility would straddle the boundary between the Comprehensive Plan's High Density Residential and Low Density Residential areas (see attached map). It would appear that the assisted care facility would be consistent with these designations, based on the following language in the Comprehensive Plan: "Because of the lack of available privately owned vacant land and the fragility of established neighborhoods, the City will entertain only limited expansion of HR housing contiguous to established projects at maximum densities of 22 units per gross acre. Essentially, all but a small amount of new high density housing is intended to take place in mixed use areas which can be served effectively by and supportive of public transit. " Also to be considered is the general need for redevelopment on the Nafstad property. The potential for development of the area is significantly limited by soil, wetland and drainage considerations. Its placement in the Redevelopment Project Area is consistent with the likely need to use public funds to correct these problems. C. RECOMMENDATION Staff recommends that the Planning Commission adopt the attached resolution finding the modification to the Redevelopment Plan for Redevelopment Project No. 1 to be consistent with the Comprehensive Plan of the City. Planning Commission action on the resolution is requested. AMEND REDEVELOPMENT PROJECT NO. 1 - LAMPLIGHTER / NAFSTAD 2 P� ■ fro . R � $1, OPEN swp. (io c*4jojzj> goo* De_ f4" -Po4srT 101 CITY OF c 3,. UKAt- I V. TAX INCREMENT FINANCING PLAN FOR TAX INCREME\T FINANCING DISTRICT NO. 4 (Lamplighter Apartments) A. Statutory Authority. See Section I.B. of the Redevelopment Plan. B. Statement of Public Purpose and Objectives. See Section I. C. of the Redevelopment Plan. C. Description of TIF District. The boundaries of the TIF District are described on Exhibit V-A and illustrated on Exhibit V -B. D. Tvpe of TIF District. The TIF District is, pursuant to Minnesota Statutes. Section 469.174, Subdivision 11, a housing district. Reasons and facts suppoi-tin�' this finding are on file at City Hall and will be made available to the public until the TIF District terminates. E. Duration of TIF District. The duration of the TIF District is expected to be twenty- five years from receipt of the first tax increment. The date of receipt of the first tax increment is estimated to be July, 2002. Thus, it is estimated that the TIF District, including any modifications for subsequent phases or other changes, would terminate in the year 2027. F. Parcels to be Acquired Within TIF District. The EDA may publicly acquire and reconvey any or all of the parcels in the TIF District identified on Exhibit I -A. The following are conditions under which properties not designated to be acquired may be acquired at a future date: (1) The EDA may acquire property by gift, dedication. condemnation or direct purchase from willing sellers in order to achieve the objectives of the TIF Plan; and (2) Such acquisition will be undertaken only when there is assurance of funding to finance the acquisition and related costs. G. Development Contracts. As of the date of adoption of the TIF Plan. the EDA intends to enter into a Development A<greement with La\el Financial Group. Inc. for the development described below. H. Specific Development Expected to Occur. At this time it is anticipated that the project wi11 include the construction of a 70 unit assisted care facility and the rehai�iitation of a 136 unit rental housing project to be constructed in 1999 through 2000 with an estimated market value of S8,270,000. V-1 I. Prior Planned Improvements. The EDA shall, after due and diligent search, '~ accompany its request for certification to the County Auditor or its notice of district enlargement with a listing of all properties within the TIF District for which building permits have been issued during the eighteen (18) months immediately preceding approval of the TIF Plan by the EDA. The County Auditor shall increase the original tax capacity of the TIF District by the tax capacity of each improvement for which the building permit was issued. If said listing does not accompany the aforementioned request or notice, the absence of such listing shall indicate to the County Auditor that no building permits were issued in the eighteen (18) months prior to the EDA's approval of the TIF Plan. J. Original Tax Capacity. The tax capacity of all taxable property in the TIF District, as most recently certified by the Commissioner of Revenue on January 2, 1998, is estimated to be $95,940. K. Estimated Captured Tax Capacity. The estimated captured tax capacity of the TIF District upon completion of the proposed improvements on January 2, 2000 is estimated to be $110,810. L. Tax Capacity Rate. The estimated pay 1998 tax capacity rate is 1.39199. M. Tax Increment. Tax increment has been calculated at approximately S154,246 assuming a static tax capacity rate and a valuation increase of two percent (2.0%) compounded annually. The assumptions used in calculating the available tax increment, along with the cash flow projections, are shown on Exhibit V -C. N. Estimate of Proiect Costs. The estimated costs associated with the TIF District and the Project Area are listed on Exhibit I -C. O. Estimate of Bonded Indebtedness. It is anticipated that 55,000,000 of bonded indebtedness will be incurred with respect to this portion of the Project Area at this time. Pursuant to Minnesota Statutes, Section 469.178, Subdivision 1, General Obligation Tax Increment Bonds may be used as required to amortize the costs identified on Exhibit I -C. The EDA reserves the right to pay for all or part of the activities listed on Exhibit I -C relating to the TIF District as tax increments are generated and become available. P. Sources of Revenue. The costs outlined on the attached Exhibit I -C will be financed through the annual collection of tax increments, land sale receipts, local City contribution and, if possible, grants from the Minnesota Department of Trade & Economic Development and the Metropolitan Council Liveable Community Grants. Q. Estimated Impact on Other Taxing Jurisdictions. The estimated impact on other taxing jurisdictions assumes that construction would have occurred without the creation of the TIF District. If the construction is a result of tax increment financing, the impact is SO to other entities (see V-2 Exhibit IV -D). Notwithstanding the fact that the fiscal impact on the other taxing jurisdictions is SO due to the fact that the construction would not have occurred without the assistance of the EDA, the attached Exhibit V -E reflects the estimated impact of the TIF District if the "but for" test were not met. R. Fiscal Disparities. The EDA hereby elects the method of tax increment computation set forth in Minnesota Statutes, Section 469.177, Subdivision 3, clause (a) if and when commercial/industrial development occurs within the TIF District. S. Election of Contribution or Exemption. The EDA hereby elects to make a qualifying local contribution equal to ten percent (10.0%) of the tax increment generated from the TIF District, as set forth in Minnesota Statutes, Section 273.1399. T. Relocation. The EDA accepts as binding its relocation obligations under State law and, if necessary, will administer relocation services for families, individuals and businesses displaced by public action. \\?: h:\`JOL:\WPDr.?A\C\CRYSTnL\:"_'\DOC\T.F FL=:.DOC V-3 EXHIBIT V-A LEGAL DESCRIPTION AS ADOPTED DECEMBER 15, 1998 PINS 21-118-21-33-0001 21-118-21-33-0002 21-118-21-33-0003 21-118-21-33-0004 21-118-21-33-0005 21-118-21-32-0009 21-118-21-32-0010 21-118-21-32-0011 21-118-21-32-0012 21-118-21-32-0026 21-118-21-32-0027 `.�K:,1«'OL_'WPDATA\C\CRI'STAL%I:',DOC,TIF PLAN 8XIIJBITS.DOC V -A-1 ENHIBI? V—B •Ew •OK ^�\ �I-- ILuuu,- fes: '1 11; I �I I. SII � .:I �•--�_.-- t I s .,1 t � �• �•,• I,ev •� BOUNDARIES OFz'I TAXINCREMENT jjxi 41I �I II FINANCING II LI DISTRICT NO. 4 I -J; __i•—SII C �\\ • \.�_ ,`^��\ .. ^I —_ac -1 ^I-_! O 14'I-;r_S.��I —'I ,12 .'. [ 1 II , II ��? '.7 •oeeso.�[ _I_:f � 'i�^�^ •��l 'jam! s � � ` �I .. NORTH 4i Q•_� .�� = .=�, moi__ ;__.L__i1 I ! J�II I 61i.= �L1:L^iii o Ir III .N4 w •a � i • d IF------' ' t� yI 4.,i _ i "• I II ! I I � '� .� —�",�"�I I� 1.1 � II i .I i I t -I �.I •,' !" •;I .moi: 9 i I I I I I _' �, �. 7:1. �� ..�— 1-�. x's• sJG�� � 2. 1 -I ' a ,�,,,. •I• II �r S � �� I••�L-. c[ - i�^I �I �I ai I i I) ijl�l(L �l i �'�) ' t: e� I s •I 'I I xI �I ,.11i eo+,oE...ur IId.l U II I � 14'I-;r_S.��I —'I ,12 .'. [ 1 II , II ��? '.7 •oeeso.�[ _I_:f � 'i�^�^ •��l 'jam! s � � ` �I .. NORTH 4i Q•_� .�� = .=�, moi__ ;__.L__i1 I ! J�II I 61i.= �L1:L^iii o Ir III .N4 w •a � i • d IF------' ' t� yI 4.,i _ i "• I II ! I I � '� .� —�",�"�I I� 1.1 � II i .I i I t -I �.I •,' !" •;I .moi: 9 i I I I I I _' �, �. 7:1. �� ..�— 1-�. x's• sJG�� � 2. 1 -I ' a ,�,,,. •I• II �r S � �� I••�L-. c[ - i�^I �I �I ai I i I) ijl�l(L �l i �'�) ' t: e� I s •I 'I I xI �I ,.11i eo+,oE...ur IId.l U II I � CITY OF CRYSTAL, MINNESOTA EXHIBIT V—C ASSISTED LIVING FACILITY & LAMPLIGHTER APARTMENTS ASSUMPTIONS PIN# 21-118-21-33-0001 21-118-21-33-0002 21-118-21-33-0003 21-118-21-33-0004 21-118-21-32-0026 21-118-21-32-0027 21-118-21-32-0009 21-118-21-32-0010 21-118-21-32-0011 21-118-21-32-0012 21-118-21-33-0005 Original Market Value Original Tax Capacity Estimated Market Value Assisted Care Facility Lamplighter Apartments Estimated Tax Capacity Assisted Care Facility Lamplighter Apartments Estimated Taxes Assisted Care Facility Lamplighter Apartments Pay 1998 Tax Rate Assisted Care Facility Construction Valuation Taxes Payable Lamplighter Apartments Construction Valuation Taxes Payable Administrative Fees Inflation (2003 / 2004) Present Value Rate Owner Nafstad Nafstad Nafstad' Merritt house Wright house Nafstad Nafstad Nafstad Currently exempt Nafstad Lamplighter Apartments 2.50% 70 units @ 50,000 / unit = 136 units @ 35,074 / unit= 2.50% 2.50% 70 units @ 1,740 / unit = 136 units @ 1,221 / unit = 1.39199 1999- 2000 2001 2002 1999 2000 2001 10.00% 2.00% 06/01/99 7.00% V—C-1 3,500,000 4,770,000 87,500 119,250 121,799 165,995 Umv 3,000 3,000 3,000 59,000 59,000 5,500 20,500 17,900 500 18,200 3,648,000 3,837,600 95,940 8,270,000 206,750 287,794 ampAsst.WK4 PREPARED BY KRASS MONROE, P.A. 10/29'98 V -C-2 10/29/98 ampAsst.WK4 PREPARED BY KRASS MONROE, P.A. CITY OF CRYSTAL, MINNESOTA EXHIBIT V -C ASSISTED LIVING FACILITY & LAMPLIGHTER APARTMENTS CASH FLOW AND PRESENT VALUE ANALYSIS ANNUAL -> <_ -- ----_ _�_�___ SEMI -ANNUAL-------------."--> G) G) < -- (a) (b) (c) Original Estimated (d) Captured (e) Estimated (f) Less: (9) Available Cumulative (h) <-- Present Value Tax Tax Tax Tax Admin Tax Avail. Tax Semi Annual Cumulative Date Capacity Capacity Capacity Increment Fees Increment Increment (e) - (f) Total of (g) Balance P.V. of (g) Balance Total of (i) (see assumptions) (c) - (b) (d) x (e) x 7.00% (prev. year) 1.39199 10.00% 06/01/98 95,940 95,940 0 0 0 0 0 0 0 0 0 0 12/01/98 95,940 95,940 0 0 0 0 0 0 06/01/99 95,940 95,940 0 0 0 0 0 0 0 12/01/99 95,940 95,940 0 0 0 0 0 0 0 06/01/00 95,940 119,250 0 0 0 0 0 0 0 12/01/00 06/01/01 95,940 95,940 119,250 206,750 0 23,310 0 16,224 0 1,622 14,601 14,601 12,724 12,724 25,018 12/01/01 95,940 206,750 23,310 16,224 1,622 14,601 29,203 98,613 12,294 56,466 81,484 06/01/02 95,940 206,750 110,810 110,810 77,123 77,123 7,712 7,712 69,411 69,411 168,024 54,556 136,040 12/01/02 06/01/03 95,940 95,940 206,750 210,885 110,810 77,123 7,712 69,411 237,435 52,711 188,752 239,681 12/01/03 95,940 210,885 110,810 77,123 7,712 69,411 72,001 306,846 378,847 50,929 51,043 290,723 06101/04 95,940 95,940 215,103 215,103 114,945 114,945 80,001 80,001 8,000 8,000 72,001 450,848 49,317 340,040 12/01/04 06/01/05 95,940 219,405 119,163 82,937 8,294 74,643 525,491 49,397 47,727 389,438 437,165 5 12101/05 95,940 219,405 119,163 82,937 8,294 8,593 74,643 77,338 600,134 677,472 47,778 484,943 95,940 95,940 223,793 223,793 123,465 123,465 85,931 85,931 8,593 77,338 754,810 46,162 531,105 12/01/06 06/01/07 95,940 228,269 127,853 88,985 8,898 80,086 834,896 46,186 44,624 577,291 621,916 12/01/07 95,940 228,269 127,853 88,985 8,898 9,210 80,086 82,890 914,983 997,873 44,625 666,540 06/01/08 95,940 95,940 232,834 232,834 132,329 132,329 92,100 92,100 9,210 82,890 .1,080,763 43,116 709,650 12/01/08 06/01/09 95,940 237,491 136,894 95,278 9,528 85,750 1,166,513 43,095 41,638 752,751 794,389 12/01/09 95,940 237,491 136,894 95,278 9,528 9,852 85,750 88,667 1,252,262 1,340,929 41,598 835,987 06/01/10 95,940 95.940 242,241 242,241 141,551 141,551 98,519 98,519 9,852 88,667 1,429,596 40,191 876,178 12/01/10 06/01/11 95,940 247,085 146,301 101,824 10,182 91,642 1,521,238 40,135 38,778 916,313 955,091 12/01/11 95,940 247,085 146.301 101,824 10,182 10,520 91,642 94,677 1,612,880 1,707,557 38,707 993,799 06/01/12 12/01/12 95,940 95,940 252,027 252,027 151,145 151,145 105,196 105,196 10,520 94,677 1,802,234 37,398 1,031,197 06/01/13 95,940 257,068 156,087 108,636 10,864 97,772 1,900.006 1,997,778 37,315 36,053 1,068,513 1,104,566 12/01/13 95,940 257,068 156,087 161,128 108,636 112,144 10,864 11,214 97,772 100,930 2,098,708 35,959 1,140.525 06/01114 12/01/14 95,940 95,940 262,209 262,209 161,128 112,144 11,214 100,930 2,199,637 34,743 34,639 1,175.268 1,209,907 06/01/15 95,940 267,453 166,269 115,722 11,572 11,572 104,150 104,150 2.303,787 2,407,938 33,468 1,243,375 12/01/15 06/01/16 95,940 95,940 267,453 272,802 166,269 171,513 115,722 119,372 11,937 107,435 2,515,373 33,356 1,276.731 12101!16 95,940 272,802 171,513 119,372 11,937 107,435 2,622,808 2,733,594 32,228 32,109 1,308,959 1,341,069 06/01/17 95,940 278,258 278,258 176,862 176,862 123,095 123,095 12.310 12,310 110,786 110,786 2,844,379 31,024 1,372.092 12/01/17 06/01/18 95,940 95,940 283,823 182,318 126,893 12,689 114,203 2,958,583 30,899 1,402,C61 1,432,3 12/01118 95,940 283.823 182,318 126,893 12,689 114,203 117,689 3,072,786 3,190,475 29,854 29,725 1,462,570 06/01/19 95.940 95.940 285,500 289.500 187,883 187,883 130,766 130,766 13.077 13,077 117,689 3,308,165 28,720 1,491,290 12/01119 06/01/20 95,940 295,290 193,560 134,717 13,472 121,245 3,429,410 28,587 27,620 1,519.877 1,547,498 12/01120 95,940 295,290 193,560 134,717 13,472 13,875 121,245 124,872 3,550,655 3,675,527 27,485 1,574,982 06/01/21 12/01121 95,940 95,940 301,196 301,196 199.350 199.350 138,747 138,747 13,875 124,872 3,800,398 26,555 1,601,537 06/01/22 95,940 307,220 205,256 142,857 14,286 128,571 3,928,970 26,417 25,524 1,627,955 1,653,479 12/0122 95,940 307,220 205,256 142,857 147,050 14,286 14,705 128,571 132,345 4,057,541 4,189,886 25,385 1,678,863 06/01/23 12/01/23 95,940 95,940 313,364 313,364 211,280 211,280 147,050 14,705 132,345 4,322,230 24,526 1,703,389 06/01/24 95,940 319,631 217,424 151,326 15,133 136,193 4,458.424 4,594,617 24,386 23,561 1,727,775 1,751,336 12/01124 95,940 319,631 326,024 217,424 223,691 151,326 155,688 15,133 15,569 136,193 140,119 4,734,736 23,421 1,774,757 06/01/25 12/01/25 95,940 95,940 326,024 223,691 155,688 15,569 140,119 4,874,956 22,629 1,797,386 5,416,506 541,651 4,874,856 4,874.856 1,797,386 1,797.386 V -C-2 10/29/98 ampAsst.WK4 PREPARED BY KRASS MONROE, P.A. CITY OF CRYSTAL, MINNESOTA EXHIBIT V -C ASSISTED LIVING FACILITY & LAMPLIGHTER APARTMENTS SOURCES AND USES SOURCES: Tax Increment present value Land Sales - Assisted Care Facility City Park/Recreation Funds TOTAL SOURCES USES: Acquisition - Nafstad Acquisition - Other Soil Correction Public Improvements Demolition Relocation Rehabilitation Professional fees Contingency Costs of Issuance TOTAL USES SURPLUS / (DEFICIT) 10.00% 3.00% 70 units @ $5,000.00 per unit = 136 units @ $5,000.00 per unit = 1,797,386 350,000 ----------------- 2,147,386 950,000 150,000 500,000 350,000 15,000 25,000 680,000 50,000 272,000 89,760 ----------------- 3.081.760 ( 934.374 ) V -C-3 ampAsst.WK4 PREPARED BY KRASS MONROE, P.A. 10/29/98 EXHIBIT V -D "BUT FOR" TEST The Redeveloper, LaNel Financial Group, Inc., is attempting to purchase the 136 unit Lamplighter Apartment Project (the "Apartment Project") for 55,300,000. The goal of the Redeveloper is to rehabilitate the Apartment Project as leases on the individual units expire. The Redeveloper then intends to lease the rehabilitated units to those tenants over the age of 55 and to make the entire project a "seniors only" project. The estimated costs of rehabilitation are approximately 51,500,000. The organizational costs, financing costs and other soft costs add an additional 5400,000 so that the total project costs are in excess of 57,200,000. Due to the length of time it take to rehabilitate the individual units and the potential for those units to remain vacant until they can be leased to senior tenants and because of the high costs of rehabilitation, the acquisition and rehabilitation of the Apartment Project is not economically feasible and would not be rehabilitated without tax increment assistance. Adjacent to the Apartment Project, the Redeveloper plans on acquiring additional properties and constructing a 70 unit assisted living facility (the "Assisted Living Facility"). The land needed for the Assisted Living Facility has numerous soil problems and the anticipated amount of soil correction is substantially in excess of the fair market value of the land. In addition, two residences may have to be acquired and additional public improvements and site improvements are necessary in order to prepare the site for the Assisted Living Facility. Because of the high costs of acquisition, relocation, demolition, site preparation and public improvements, the Assisted Living Facility would not be developed without tax increment assistance. \\F: 1M VOLZ.,WPDATA\C,CRYSTAL\12'ADOC-.TIF PLAN EXHIBITS DOC V -D-1 EXHIBIT V -E ESTIMATED IMPACT ON OTHER TAXING JURISDICTIONS IMPACT ON TAX BASE IMPACT ON TAX RATE TAX ORIGINAL ESTIMATED CAPTURED DISTRICT RATE TAX TAX TAX TAX AS % ENTITY BASE CAPACITY CAPACITY CAPACITY OF TOTAL City of Crystal 12,036,584 95,940 206,750 110,810 0.921% County of Hennepin 1,138,252,775 95,940 206,750 110,810 0.010% ISD #281 73,637,583 95,940 206,750 110,810 0.150% IMPACT ON TAX RATE 1.39199 1 UU.UU"io 154,246 * Assumes construction would have occurred without the creation of a Tax Increment Financing District. If construction is a result of Tax Increment Financing, the impact is $0. V -E-1 TAX % OF TAX TAX RATE ENTITY RATE TOTAL INCREMENT INCREASE City of Crystal 0.27306 19.62% 30,258 0.254% County of Hennepin 0.38386 27.58% 42,536 0.004% ISD #281 0.65350 46.95% 72,414 0.098% Other 0.08157 5.86% 9,039 1.39199 1 UU.UU"io 154,246 * Assumes construction would have occurred without the creation of a Tax Increment Financing District. If construction is a result of Tax Increment Financing, the impact is $0. V -E-1 AS MODIFIED DECEMBER 15. 1998 Acquisition, Survey and Demolition $1,100,000 Soil Corrections 500,000 Public Improvements 350,000 Demolition 15,000 Relocation 25,000 Rehabilitation 680,000 Professional Fees 50,000 Continency 272,000 Costs of Issuance 89,760 Administrative Expenses 541,651 Total 53,623,411 Maximum Estimated Total Bonded Indebtedness 55,000,000* * This amount includes capitalized or accrued interest in an amount sufficient to pay interest on the bonds from the date of issue until the date of collection of sufficient tax increment revenues to meet scheduled interest payments when due. G:\ W PDATA\C\CRT ST A L.l-C-1'_. DOC I -C-12 RESOLUTION OF THE CRYSTAL PLANNING COMMISSION FINDING THE MODIFICATION TO THE REDEVELOPMENT PLAN FOR REDEVELOPMENT PROJECT NO. I TO BE CONSISTENT WITH THE COMPREHENSIVE PLAN OF THE CITY WHEREAS, the City of Crystal is proposing to modify its Redevelopment Plan (the "Plan") for Redevelopment Project No. 1 (the "Project Area") to reflect an increase in geographic area within the Project Area as described on Exhibit A and illustrated on Exhibit B pursuant to Minnesota Statutes, Sections 469.001 to 469.074, inclusive, and WHEREAS, the Planning Commission has reviewed said modification to the Plan for the Project Area and has determined its consistency to the zoning plan and development goals of the City: NOW THEREFORE, BE IT RESOLVED BY THE CRYSTAL PLANNING COMMISSION that the proposed modification to the Plan for the Project Area is consistent with the Crystal Comprehensive Plan. Adopted this day of , 1998 Chairman ATTEST: \\n S ,VOL'-\WFDATA\C\CRYSTAL\i2\DOC\FL=.NNINO RESCL-T=ON.DOC EXHIBIT A PARCELS TO BE ADDED TO REDEVELOPMENT PROJECT NO. I 21-118-21-32-0001 21-118-21-32-0002 21-118-21-32-0004 21-118-21-32-0005 21-118-21-32-0006 21-118-21-32-0007 21-118-21-32-0009 21-118-21-32-0010 21-118-21-32-0011 21-118-21-32-0012 21-118-21-32-0014 21-118-21-32-0015 21-118-21-32-0016 21-118-21-32-0017 21-118-21-32-0018 21-118-21-32-0022 21-118-21-32-0023 21-118-21-32-0024 21-118-21-32-0025 21-118-21-32-0026 21-118-21-32-0027 21-118-21-33-0001 21-118-21-33-0002 21-118-21-33-0003 21-118-21-33-0004 21-118-21-33-0005 \\K X'`'."OL2\WPDATA\C\CRYSTAL\1-\DOC\PLnNNING CONLMISSION RESOLUTION MC City of Crystal M E M O R A N D U M DATE: December 9, 1998 TO: Planning Commission (December 1411 meeting - Item B-2) FROM: ' John Sutter, Planner and Redevelopment Coordinator SUBJ.: Proposed Lot Division at 4957 Florida Ave N (P.I.D. No. 08-118-21-14-0013) The subject property is located at the southwest corner of 50th avenue and Florida Avenue. Its dimensions are 130' x 127.84' after 30' of right-of-way is subtracted for the two streets. There is also an improved alley along the south side of the property. Jane Johansen, the owner of the property, would like to divide it into two single-family lots with frontage on 50th Avenue. The east lot would retain the existing house; the west lot would be sold for construction of a new house. There is sufficient lot frontage along 50th Avenue for two lots that would meet our minimum standards (60' minimum lot frontage). However, the presence of a detached garage abutting 50th Avenue makes it impossible to divide the property into two lots that would meet the City's minimum frontage. (Note: The garage is a nonconforming structure due to its location in the required front yard. In fact, a small part of the garage encroaches 0.41' into the 50th Avenue street easement.) Ms. Johansen is proposing to address this problem by having the western lot have a width of 49.5' along the 50th Avenue street line but 62' at the front yard setback line, yielding an overall average width of 60'. Staff opinion is that this approach would require a variance from the minimum lot width requirement, based on the Zoning Ordinance definition of lot width: "Subd. 927. Lot, Width. The shortest horizontal distance between the side lot lines measured at right angles to the lot depth. " The subdivision regulations provide for variances when "unusual hardship on the land or practical difficulties related to the land would result from the strict application of the provisions of this section. " In this case, the Planning Commission might find rationales for either approving or denying such a variance, based on the following: u The rationale for denying a variance could be based on the fact that the lot size, shape and topography are not unusual, and that there is nothing related to the land - that constitutes a hardship. o The rationale for approving a variance could be based on the expense of removing the garage from its present location, and that the present location of the garage on the lot creates a practical difficulty related to the land. Enclosed for your information is a map showing the property's location, and a survey with the potential new lots drawn in. The Planning Commission is asked to discuss the proposal from the property owner, and set a public hearing for January to consider the plat and if necessary a variance request related to minimum lot width. INITIAL REQUEST - 4957 FLORIDA 2 !M' G Q GoNO. 33 AVE. , iz l3 �� `� ►� n e •Z 5 � 5 l jp.l � r �� 41 4z R A� (7000 L, PLACE 0 b'L°� �OE•e5 3• I'Sh-ht •)1l.t; (v C�Z01 M I � CZE / "' �"... . 6 ! i i 6 �3 h gA1.Y t4♦ /14,43(v �N l i3f.4 �'� Ia.+ /ei fix Z 1 0 �• �3 5 ' D 7i�%t N 'Lo3� J o w l \ r '_y t- 3 3. t1.4 k%%.41 � L h +h /.df oc.. 1 h • 141,4 /11,4/ � (Z�*! /39 y� „�€'::,@_� x�y.. cE NOSE N � S T,4 L (1E�'1� ,! Itzn +I L c } •' 6e 42.1 63 77.4 74,5-,'11. r O _ \ p ! r 306.9/l�4ao� n �61�%Zrj �� �`gc _I oY V L d5 /36..41 5 /4.!! 75 4 OI ti � N l a �, l 6 ` tion �i� tl, r ` +,•� ; ,� ,Vo�J, r¢ 60 91' eS 3f I fi0 to 3% LIS—.. -z_.._ AVE 49.45 60 7e 75 65 7e66 7 VAr-7_a}- Q s• 9. o. l 1. 3 i = µ > s ° —Ada, •—� a 57.91 67.92 67.92 70 7070 bo 60 70 ® `• "f" `� cc b' bo s• So 7a . L a0 -N .. •. it 0, ft0 3• 4 60 60 90 bo 0 1ti .. .. - 74 70 60 `G�mbo to �o o~p b 0 so 9° to eco. 60 30- j /. I 4114. i. . 1• L 90 Go Go o /30 ?e / 2 M S4 ' • tgOWARD W. PERS* . C ITY suwwyo* A Il CERTIFICATE OF SURVEY FOR: JANE JOHANSEN LEGAL DESCRIPTION: HFNNEPIN COUNTY. MINNESOTA All that part of the Southeast Quarter of the Southwest Quarter of the Southeast Quarter of the Northeast Quarter of Section 8-118-21, described as follows: Commencing at a point on the east line of the Southwest Quarter of the Southeast Quarter of the Northeast Quarter of said Section 8, distant 167.84 feet North of the south line of the Northeast Quarter of said Section; thence North along said east line of the Southwest Quarter of the Southeast Quarter of the Northeast Quarter of said Section, 164.84 feet, more or less, to the Northeast corner of the Southeast Quarter of the Southwest Quarter of the Southeast Quarter of the Northeast Quarter of said. Section; thence West along the north line of said Southeast Quarter of the Southwest Quarter of the Southeast Quarter of the Northeast Quarter 220 feet; thence South parallel with the east line 164.88 feet; thence East 220 feet to the point of beginning. Except, the West 60 feet of said tract and also subject to a public easement over the North 30 feet and over the East 20 feet of the above described tract and subject to a public easement for alley purposes over the South 7.0 feet of the above described tract. Notes 30 60 1. Legal description furnished by client. SCALE IN FEET 2. Driveway encroaches onto 30 foot public easement. Bearings are based on assumed datum o Denotes 1/2" d Iron Pipe Set 3. Building encroaches onto 30 foot public easement. • Denotes iron monument found /3nGK.% S6-rN A CIA = 3o FT; /3LLr—y � 30 FTS PL6/2,0A = /v )"T� � /n/7-�!2tv2 �/0� 125 a P14,eeerZ A = 7S8$ 5)F• ----------------I PARCr� 13=/o3°G s•F 50TH AVE. N. ciLi M NORTH LINE, SW 1/.4, SE 1/4, NE 1/4, SEC.8, T. 1 18, R. 21 rn I w S 89'58' 59" W 220.00(R) G� MH --------- a I 60.00 0 160.00 , , MH (1 SE 0 O M ^ BACK OF CURB 0o SEC's I/4 NEW 7/4 30 FOOT SE/17EAJ7 �` Q- PP A r. 1 78 1/4, ops - ��� R. 21 S 89058' 59" 1'40.00 CURB 54.61 24 72 I`o AY 2 20 30 F— GAR. 6, GAROr �, BIT. DRNEW 24.76 Z 13 30,D ����? C Z 00 N 0O 18 1330 Y E� r, rn t r Lo —D J Q n 00 Li Lnl E 11 1 1.62 - 14.4 Q � — 4 'd LL_J w Ni L �° F�REP�PCtio� a o� N > - m �i • �� w Fn 32.4 O Q UJ o ' OOP N HOUSE �. O h v { N 3 Q r7 I W CN 0 W I m S\O�� P 3 z J z aol 18" TR 36" R e0 UJ _ N 26.07 TT Ml ry o� l a o CONC. nC�L o o Li O W � ` P� g z a w Ln o 1$ I O ( o_ � z —J / w Blr/LDl NG 12" TRE2�e 3 SErDAc K LlAA6 w �' J I O Y I O m a I 6 Z 45;�.\ WFENCENE 78 20 /POWT 30 60.00 EDGE OF BIT.160.00 7 FOOT r'A_c-4" --------- OEO�NNWG N 89°57' 35" E 220.00(R) O.H. ELEC.pp � `� O H. ELEC. � E E ' m— --- -f SOUTH LINE, NE 1/4, SEC.8, T.118, R. 21 ksurveyod ertify that this is a true and correct representation of a survey of 8401 73rd Ave. No., Suite 63 ries of the above described land and of the location of all buildings. M ERILATelephoneBrooklyn Park, MN 55428 eorL and all visible encroachments if any, from or on said land. (612) 533-7595 & ASSOCIATES Fax (612) 533 1937 t is day ofMinn.Rey. No—ZZENGINEERING SURVEYING PLANNING yo_0,3 book - Pageo 3 z-3/� SPL7T PA2�E4 /2iS�48 CITY COUNCIL ACTION ON ITEMS WHICH APPEARED BEFORE PLANNING COMMISSION November 17, 1998 Consideration of Application #98-16.8 for Preliminary and Final Plat of Neznik's Second Addition, as submitted by John Neznik—approved. December 1, 1998 No items were considered. G:\P1anning\PC\CCAction.D0C.jrs