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PL 05/09/1979 - 30510CZT)C OF FRIDLEY PLANATING COMMIS>ION I�ETING - MAY 99 1979 �� CALL TO ORDER: Chairman Harria called the M¢zy 9, �979 meetin� Qi the Planning Co�ission to order at 7:30 P.�.. " � ROLL CALL; MemUers Presen-L-; I�lr. bquist, I�ls. Hu�hes, Aqr. Iiarris, Mr. Treueniels, N,r. Hora Ms::-Schnabel arrived at 7;35 P.M. Members Absent: None. 0-thers Pr�aent; Mr. Poardra�n, City Planner Cowaci].m�.n Schneider Dean Doyscher, Pz�ozessianal Plranni:�� : DeveloPmen�c Co. a.. �P�cvF Pr�aia�zi� co��sszorr r��z�s: aP�sr� �8, 1.979: N�TIaN by Mr. Oquist9 seconded by Mr. Hor� '�o ap�rove 'che Apmil 18� 1979 minutes o� th� Planni�� Commission. R�r°. F�aarc�n rei'err�d to pa�e 1.9 0�' the minutes and s-t�ted -�hat P�fr. Zeek �ad stat�d accord:in{� •�o tlze consul'cant ii, �aoulc� be l� years. This taas in re�ards to tYl� discussion on Moor� Lake. N�r. Beard�ax� �ta�t�d th�y had checked into �his iuz'ther €�nd 'crii� sta�t�m�n� t•:r�s in crx°o�. �.ccor@ia� ico Hichcock &�.ssocia'�es tbey tirould be � looking in excPSS Q� 5� years. U�'Oid A VOTCT+� VC)TE, �sLL VQTIISG AYZ, C:ii�,1�iNIAN I�AR�tTS DI�;CL.AFtiED THE P�5`0�.'ION CAI�.RIT� A�1ll TI� I�iITdUrl�S APPrt�VED A:� COhi;F�C'ILD. 2. TABL�iJo REQULST k'OR A T,OZ' SPLTT L.S. �7Q-Ol� BY l�RVTN & ROBEI�T E'RICKSONo Split oif 'ch� �Jev'�erly 7�. �� f'e��; o� Loi, 0� Au�i�co� z s Subdivi sio�a No. � �to make t�ro building Eit�s Por dvu�l� bun�alows� the same being 1285�87 and 12g5-97 Nor�on Avenu� T�T.E. Mr. �o�rdtn�n s'ca,'ced this w�,s loca'ted ox� the corner oi Nori;on Averau� �znd Cen'trr�l. '�hes� lots are px°esentil;�� zoned R�3,, which is a multiple zone and �•�ouZd ta].low du�lex. constr�ac�Lion. The lo�ts are in ex.c�s� o�' 10,000 square -�ee� which is a requirement and in the case oP �Y�e corner lo� th�y were lookin� a�, �ai1•h t2�e lo-L- split, 75 �eet. Generally we lik� to see 80 i�e� on a corn�r bu� s,a� �0 �oa� lo� is no't raeceasa�:tly requiree3 an a corner. Sinee �che lo�s �re in �xcess o�° 10,000 squaxe feet, it �rould allot: a duplex. Nir. Oquis� asked if bo�th buildings �ou1d iac� N�rton? Mr. Bo��dr.ian stated th�t both buile�inge would �'ace Norton and both buildin�;s would have accesa off Nor�ton. Aqr. Harris asked if they TJ�Y'@ in exeess of 10,000 square feet� ,� 1�. Boardman stated �that the J.ot to the �est was ].OA050 �ndJthe other lot was also over ' 1Q�Q00 c�qumre fee�. He d3d not hmve �Gh� exact figure. He stated tha,t St�ff had no problem with �Lhe lot sp�.it. H� also s�;�ted th�t sewer and wate�° were avail.able in Norton Avenue. pLAI�NING COMMISSION MEETING MAY 9�979 � PAGE 2 Mr. Erickson� �he petitioneri at��ed that �he duplexes would be similar to others .., in the area. " `� Nir. Boardman stated that within the lot split aree� he �ould like to pick up as _ much room on the corner lot as possible. � .._ - He did not think that would be a problem as �ar as setbacks and vari�nces for �he construe�ion. He �rould prefer to pick up as much buildable space on the end lot as possible because of the 17� foot setback requirement from the street corner. They might be better off Frith a larger lot on th� corner. This was a sugges�ion they made to the developer. Also, he felt the developer should be aware that thexe was only one s�wer service and if the lot split w�r e approved.� one sewer service would have to be added and three water services would have �o be added at the owners expense. � � Mr. Boardman asked Mr. Erickson what the size of the structure ��ould be? Mr. Erickson statefl that gne would be �Wx46 and the other would be �+Oxlt$. Mr. Boardman asked if �hat included �he tuck-wrader gara�e? Mr. Erickson atated it did. He alsa stated tha�t wi�h a ia8 foot uni� on �the east half of the 1ot they would ��nfringe an -the 17� foot se�back by 6 inches, and they would put this 46 foot unit on that lot. � Mr. Boardman atated that ii they cou].d fit it on the lot and meet the setbacks� he would have no problem. � Ms. Schnabel stated there was still a 50 foo� easement there. Mr. Aarris stated that was part of Central Avenue. Ms. Schnabel stated that then they were no'c going 172 feet from Central� there wa� a 5� �'�t easement before the property line. Mr. Harris stated that was from the center line of Centr�l Avenue. He was not sure how wide Central was there. Ms . Schnabel stated the map showed half of i�t was 33 feet . Mr. Erickaon asked if there was a 10 foot setback on the side. Mr. Baardman stated that was correct. � Mr. Erickson stated he would have no problem wiich that. . _ r--, PLANNING CONIMISSIOPd t�E'rIIVG, r�� 9A �979 - PAG� 3 P�ir. Board.man stc�'�ed they could �just leave it that way. Mr. Harris asked wh�,t �he maximum lot coverage taas there? Mr. Boardman stated that in Rm2, mar.3mum lot covera�� ;a� 25�0.� -•• Mr. H�rris st�t�d �th�at as lon� ae th� �aragee were paxt of the structures� t�tere would be no pr�ob�e�. Atir. Boardms,n agreed and s�ated th�,t as lon� a� they eo�ald fit the structux°es ou there ��ith the 17; foot se'cbacks and the 10 f ooi; side y�rd se�cbacks' i-� �rould �e no problem. Mx. H�rris �sked i� �Ehere w�s plenty o� depth? Mr. Boardman stated there was. Tli�re wex°e no co�ents fro� the audience r��a�ding -�,his item. MOTION by Mr. Qc�uis �D seconded by Ms. Schraabel, 'to reco�nend to Council appro��,l of the r�ques�t io�° a lot spli�C, L. S. �(9�OI, by Ma,rvin & Robert Erickson to spli�t oif the westerlST ?�.9� �'eet of Lot 10, Audi�i:orB s Su�division Ido. 89, to r�,ak� �wo building sites .cor double bUn�alows� �h� s�me bein� 1285-87 ana ].295-97 rrorton Avenue N,E. UPON A VOIC� VO'I�, ALL V0�'ZNG AY�9 CHATI�.'�IAT� H�1I-dI'SS DEGL�,,R,�'yD THE MOTION CARI;IE�D � t1NAflTI1�:0USLY. Mr. Harris ;nforz�ed �h� peti�iorler �tha�t thi� t,rould go �o Coux�cil ea� I�y 21, �979• The pe��tioner th�anked �Ehs� Cortrmissionex°s. 3. PUBLTC FiF'LC.1-�?TIV'G: FcEEZOIJIIdG RE�tJi�ST, ZOA �f (9°�1 Tl� LIFE�SKZ & BIKE, INC. e BY SCO`�T H�I�ff^:�; .►.Ze�ar�e Lots g ajid 10, Bl�,ck 1, I�1��re L��;e xibr�ianas 3ra Aaai�ion, fx°on C-1. loc�1 business off'ices) i;o C�2 (�eneral business areas),, and ?,o� 11, Block l, Aloore L�ke Hi��il�nds jrd. Ar3diti0n i'rom CR-I. (��n�r�l of�'ices and linited business) �o C�2 (g�neral busir�ess areas), to allo��a a garden center and futurc: buildin� pxpansion at 631g High�ray �5 id.E. N�TION by D4r. Oquist, s�conded by Ms. SchnaU�l, to open the public hearing. UPOiV A VOICE VOTEy ALL VOTTNG AYE, CHAIRMAIV IiaRRIS DECLARED THE PUBLIC HEARING OPEN AT 7;50 P.M. Mr. Boarc�man st��ted �hat this was loca�ed or� x��h�ray 65, jus�t nor�h di the liquor store Last year the Lift put in a garden center. Th�y own two buildin�s on that ].ocation. One was a filling sta�ion �nd one t�as a grocery store. They -took these over and developed one �s a cross country ski area ancl �the o�Y�er as a down hill�ski and �hose types of' things. The grocery s�;ore buildin�� based on itts loce�ion, is over the present lot line by 7 feet. In o�her words, it was built on property it didn't own. This property is presently zoned C•i �to the south whieh is where the fillin� station �`� w�is and the old �rocer�► store was� snd it is�zoned CRml to the north. They would PLANIJING COMMISSIQN MEETING, MAY 9, 1979 _—_ pAG� �' Zike to rezone this to all C-2 co�nercial which would allo�r them to opera�ce in that iunction. The reason they �rant to �o to C-2 is based on the Special Use � Permit becau�e an open area like the garden center is only allowed in a C-2 area. They want to combine the uses into.a C-2 us� and eliminate the CR-1 on the north and the C-1 on the south. He noted th�t there had been some street improve- ment on th� service ro�d on xighway 65. With tha�t improvement they did geic smne initial boulevard plantin�, sod a�d a curb on the street side to improve the looks o�' the buildin�. They put in some m�rked parking area�s in front of the brick building. He referred to page 33 of the ager_da and. stated that Mr. Holmer had given them a rough sketch which they put into a landsc�pe plan according to the planting schedvle on -the o�ther side. What they would like to do on this� if they do approve the rezone and the Sp�cia]. Use Permi't, is to have this landsc�pe plan attached as part of the stipulation and a schedule developed for the completion of the landscapin� and completion of' the entire facility. It could be a period of �wo or three yes,rs but they would like the developer co�nitted �o this. Mr. Boardman stated they ��ere looking at getting the curbin�, blacktoping and whatever lar��scapin� would be necessary to make the prop�rty completed. Ri�ht now the lots to the north where the buildin� sit is presently gravel and is presently utilized for parking. It is not necessarily established as a parking area� bui; people park there. They would like to get it firmed up. M�s. Schnabel asked if it was the intention of �the petiti,oner to put an addition on the gravel area to the north? Mr. Boardman stated they were looking at what the potential would be for an addition on �o the structure so within the plan they did take that in�CO conside�ation for parking requirements and landscaping requixemen�ts. It was noted on the drawing sahe.t � the maximum exp�nsion could be. Ms. Schnabel steted that she asked. �hat because if they were looki�g for stipulations on the landscape plan for example9 the petitioner might not want to complete a land- scape plan if they in�end to put an addition on the building. Mr. Boardma,n sta�ed tha�t there were thin�s they c�v1d do with the landscape pl�n �that would not in�terfere with �the addition. Tn the areas where they mi�ht disrupt an area because oi an addition, they woul.d put those things at the end of' the schedule. He felt they shou].d get started on the priorities on t�.e developmen� p� '�he thing. Thin�s like the perimeter fencing and �the perimeter planting and things like tha� could get donea They could start with the per3meter and worlt into the l.ot. Mr. Holmer stated that regarding peri�ne�ter �'encing, he felt �hey should ask the ad.jacen� property owners �rhat the�r wan�. The person on the corner lot mi�ht prefer the view of Hi�hway 65 rather than a 6 foot fence. He stated. he would comply with what is required but also with what the adjacent property owners would 1ike. There is existing fencing behind two of the lots. As far as the CR�l lot, the reason they pu.rchased that lot was becsuse they were 7 fee� into that lot. Also� that made that lot a substandard lot for building on. He sta�ted that presently he could not afford to do ar�ythin� with the CR-1 lot which is the Zot �to the north. One year from now he could� but not this particular su�mr►er. The reason for the rezoning requesic was to legal],y operate the garden center. As far as the expansion, it is a little pre- mature. He would like to expand the crosa coun�ry shop first and then expa� the �� PLANNING C01�2SSION MEETIIdG, P�AY 9, 1979 - PAGE 5 nature shop. However, tlu�t raight nai come tlirou�h. He mi�ht te�r dawn the old ,%� gas s�ation �nd exp� d the other shop. He had not r�ally settled on an�ythin�. It depended on a lot of things Zike profi�s and ho�a the business goes. Right now� his ma�or concern was to legally operate the garden cen�ter. Whi1e this application was in� 3t was easiest �o get i't s�ll as one in�egr.ted lo� at this time.. As far as the landscaping, he wants it �o look �s nice �s possible, bu�t felt it would not be tdise �o start planting in one area �t this point in time. Mr. Bo�rd.�oan s'c�ted �hat he wou].d lilce a commi�tment �o a plan and mo�.ificatian of tha� plan could talte place. But he would like at le$st � cormnitment �o a landscapin� plan. Mr. Richard Pat�erson, 6328 De1T�aoa�. �rive� stated th�t he lived behind t;he Lift. He aslted if the C-2 was ior a two story buildin�7 � Mr. Boardman stated that C-1 would allow a three story building. C�2 cou].d allow a six story building. He stated �ha'� �the l.i.mi�tations they looked a'� here taere the -amount of parking spaces available. Ewen a�hree s�tory building taould be difficul.t to put on the site because it would require additional parking. If the room is not avt�ilable, the addition�l parkl.ng requirements wou7.d Y�ill �the proj�ct. But that also would depend on the size oi �he stx�ucture. I� they tore ba�h buildings do4rn and buil•t a�three st;ory office building there, that could happen. He stated that he did not ses it going to � six story buildfn� because the parking was not available. Mr. Pat�erson staied that he fel�c going �CO �, C�2 �o,�.a aevazu��e �he properties be- hind the lc�ts. H� asked what was wron� with the C-1, the way it �aas presently zoned? �, Mr. Boarclman stated tha�C a garden center is not aZlos•red in a C-].. TYie only zonin� it would be allo�wed in is a C-2 Districf�.�rith a Special Use Permi.t. So they need th� C-2 zone to operate the garden cen-Eer. They can operate the Lif� and the cross countxy ski shop in � C�1 zone. Mr. P�tterson stated �hat he had no�hing ag�ins�t the present oper�tion, but wha� if Mr. Holmer sold �he property? � Mr. Boardznan sta'�ed 'tha� i£ anyone w�nted �o build there, they �aould be lookin� at a no�ximum of three stories because af the size of the site. Mr. Patt�rson asked if they couldn't put in a stipulation �hat would preven� anything larger going in there? • N�. Harris stated -that they could put in some stipulations and �s lon� as he s3g�s it would be binding even if he sold. Ms. Schnabel sta'ted that no matter who the atlner w�s, they would be hard pressed to put anything bigger than a three story buildin� b�cause our code limits are so strict they would not meet the code requirements. � PLAI�TNING COMMISSION MEETING� MAY 9� Z979 = P.4GE 6 Mr. Plorm Shurlheis9 �$15 Second St. N.E.� stated th�t he owned the apartment buildin� just north of the site. He �sked if feucing was required? Mr. Boarc'iman stated that iencin� ��as required and it mvst be solid screen fencing bet�aeen commercial property and residential property. Generally they require a woal screening Pence . � � � . � Mr. Oquist �sked Mr. Holmer if he plann�c7, to put in the �arden center like he had it last year? Ms. Hughes stated it ��as there norrr. Mr. Boardman stated that Mr. Holmer had sent a letter•'co the City Council �nd Council allc�aed them to continue the operation of the cen�ter until this process went through. Ms. Hughes asked Nbr. Holmer if the ownership of the property had been resolved? Mr. Holamer s�ta�ed it had been resolved. He stated he represented Mr. Peterson and several other people. He had sold the property to them and they are in turn backin� his bank loans. Ms. Hughes asked if there was essentially one owner? Mr. Holmer stated there was a partnership called 631g Company. Councilman Schneider asked ii C-2 would a].low ior any semi�i.ndustrial businesses or body shops or g�s s�ations� etc? Mr. Boardman stated they were allowed on].y with a Special Use Permit and it would have to go throu.�h the Planning Cor�nission and City Council for approval. Also' the neighbors would be no�tified.. � Ms. Schnabel stated that it seemed '�o her th�t the proper�y in question, and the owner had demonstra'ted, a very solid intet�t on improving the property and has in fact substantially improved them over the period of time he has been invoived with the specific business oPeration in there. The exteriors of the�two buildings blend to- gether and the signs have been tastefully done. She did not see any problem with rezoning the whole parcel and felt it would probably be to the advantage of the pro- perty to have consistent zones. It would be in keeping with what the City intends to do with property and that is �to have it all w3.thin one specific zoning so that the property becomes manageable. The consequences i�' we denied this zoning would be that we would have a parcel o� land with �two separa�e zoning and the owner may want to expand at so� point or sell at some point and it m�y become a h�rdship an him to sell because of the separate zoning. From that stand poin�t' it makes sense to clean it up and zone it all the same. Nfr. Harris asked what the total square foota�e was on this propertyT Mr. Boardman stated it was about �0,500 square feet. �'�'1 � PLANNZNG COMMISSION MEETTNG, N1AY 9, 1979 - P�GE 7 �_._.____..... Mr. Harr3s stated �ha�t was almost double ��hat they required for a C-2 bu3lding. He as&ed what the 1.ot covera�e pe�°centage wae in C-22 Mr. Boardmsn s�;ated he wasn't sure, but ichou�ht i�; w�s 40� io� one story� 30� i'or two s�oxies� etc. As it go�s up� �the lo-� covera�e decreases. �., Mr. Harris st�ted that if they went to f�h3°�� s�o�ies, it wotzld. be 30�. So th� maxirnuum size L-uilding they could get on •ther� �rould be 16�000 squ�are feet. Mr. B o�rd�nan stated that he doubted they could �ven �e�E that ffiuch because 16,�0 square �oot o�' oTfice spac� wot.ui.d require abou-L- 80 parking spaces. There is no way they could get 80 pa.rking spaces. Mr. Holmer s�cated that �the lot tha� is presen�cly zoned CR-l.is a subst�ndard lot thereYore it could not be sold osf. The only logical spot fo� that lo�t is to be part of the S•TYlO].@ parcel. Mr. Harris stat�d that on p�,ge 29 he s�r�► � iigur� of 27,000 s�uarc_ fce�t �or acrea�e. He asked ii that included i;he oth�r 1,ot? P�r. Boardm�n sta�4ed. �that opi �he �oning he h�,d 40, 540 sg,uare �eet. He s�ated �th�t ichis t•r�,s on the Special Use Permit, The Speeial rJse Permit would on7.y be gran�ted to lots 9 and 10. MM�. Har�is asked Mr. Holm�r i� i.t would be agree�ble i�' th�y recommend�.�the rezonin� �hat ther� be som� sort of' a d�v�loped pl�,n initia-ted as f��c as the screeaiin� alang � �;h� proper�ty lines a.but�;ir.�; �h� r�siden'r,iaZ arzas? Y�'ir. Holmex° st�.ted th.�t As �'�r as screenir?� �oes by the apay°-tmen�, ther�; is some nntural scr��nin, thexe Prescntly from some trees, H� couZd not see tearin� out thos� �rees. Also9 the�°e ;das soz�e screening� m.�ybe lower �;han code requir�d9 be-� hind lots 9 and 10. Th�re is s"�ncin� �th�re, Mr. Harris sta'�ed that in the aa��ar �ut,ure they should have a master devel.opment plan t�itten. N,r. Holm�r sta�ed �that at this point in tY�.e h.e did no�t have any use �or Lot 11. Ii' �th�y n��d � fence on •�he north siae, �ha,-t cou].d be don�. But as �'ar as any addi�ional landscaping on th�t lo��, he taas not planning o� �ny. Mr. Harris statcd that his personal feeling was �h�t they need�d a fence along tlae lot line on Lot 11. Also, they should set a targ�t date �'ar the completion of the rest of the development. Mr. Boardman stated that he felt tha't a three year co�itment would be realistic. Mr. Holmer stated th�t should be realistic because by that icime he should ha�e his building plans implemented. He was one year eway from some �ddition at this point in time. PLANNING CONQ�SSION MCE°.PTNG9 MAY 9� 1979 ---_------- " PAGE 8 Mr. Boardman sicated h� wou].d like to tie it down �rith a three year commitment, �°''� � not less �han or greater than �three years, with a stage program of scmie work bein� � i done each year and then if for �ny reason that three year commitment is unrealistic ` they woulcl request a letter at that time s�at3�ng that. Then �hey could look at it � at that point. j Mr. Harris stated he was lookin� for �arget dates. He didn't feel they were c�71 tha,t hard an.d fast but felt �hey should make a connnitment. I Mr. Harris stated that he felt �chey needed th� Pence•down the lot line and that �aou].d help the junk situation. Mr. Treuenfels asked how many parking st�.11s they would have ready this year? N�. Hol.mer stated they would have' abou� 28 s�talls. MOTION by i�is. Hughes' seconded. by �. Oquis�t, to close the public hearing. __.___ UPON A �'OICE VOTE� ALL V4TING AYE� CHAIRMAN Hl�TS DECI�ARED THE PUBLIC HEARING CTASED AT 8;30 P.M. �I .� PL/�iVNING COMMISSION t�'ETI�VG, I�Y 9, i979 - ,� PAGE 9 ,��:;� Mr. Oq,vist stated th�,t he agreed wi�h Ms. Schna�el° s c�amnents that it �rould be advani;a�eous to rezone �his propes°ty and get it all in a co�tnon zone. He felt ` the peoLple hAd done a a�ice job there and made the property presentable. ' MOTION by Ms. Schna,bel, seconcled by Mr. Oquist, to recommend �o Counci].�approval of the rezonin� request, ZOA �j9�01, The Liit�Ski & Bike, Inc.,. by Scot� HolxnPr� to r�zane Lots 9 and 10� Slock 1' Moore Lake Hi�hlaaads 3rd Addition� from C-1 �o C-2, and Lot 11� Block �, Moore Lake Hi�hlr�nds 3rd .Addition fxom CR-1 to C-2� to slladr a garcien center and future building er.pansion at 631g Iiighway �5 Id.E., with the s�tipulation tYia,� a l�andscape plan e�nd sch�du7.e over a tb.ree year time perial be filed �:°i'ch �he Cit;,� �'lanni�se De?�ar-tmen-t �°allo�ain�; tLe genere,l �ui.del,ines of EXHI�IT A'�ha�: rr�re submii-�ed b� 'i,h� pe�ii,ioner. In addi�;ion, 'chere is a s-tipu- lation t;hat � scr�ening i"�nce -b� �cided to -the north side ai Lot 11. Mr. Ii�rris inf'orm�d the petitioner tha� this z,ro�.�l.d �;o to Cotuacil on May 219 g979 i and the public hearin$ would be on July 16, 1979• �+. PU33LIC HEARZIdG: �uQ.UFST FOR � SPECIAL US� �'ERMTT9 SP �rj9-03, TF� I�2r'E-SKI & 3iIT4:r TT�tC. BY �C}i"!' 1�OLl��R: Per S�ction 205.1O1, 3, Td. to al'low a, �arden center on Lots 9, 10, 1]., Llock 19 Moore L�k� Highlands 3rd Additians the sam� bein� 631g 13i�hw��y �65 N.E. � MOTIO?� by Mr. Oquist9 s�conded by Mr. Treuenf'e].s, to open �;he pub�3c hearing. UPOlV .4 �TOI�' VQ�E9 ALL VOTTNG AY3�9 CFiAIF�h7A�V I�'�RRIS DECL.�ED T� PURLIC I-�EARING � OPEiV �T 8:35 P.N. Mr. Boardman s��t�d. i;h�t ��as on tY:� s�zne p�o�zr.ty and loca�ed in fro�t on th� corner of Lo� qo Oar ebservation �ras th�,t the ��ci�.ity �ras t•re11 kept ax�d is a very clean operation. The ga�•d.en center is m�in�ai��a "ve�r ��rpll. Nir. Oqu.ist stated he had been th�re las� ye�r and �it vras a very nea�C area. N�. Harris asked what they used that property �'ox° when it wasn'ic a garden cen�ter? Mr. Ho]sner stated tha'� they use it for p�rking in �he wintEr �iime. Win�er is their busy seasoxi and he wauld be linix�g �Yita� �'or �arlcin� sp�ces a1so. They tak�e d�an two pieces of fence and use it for parking. Mr. Harris asked if they had any night oper��ion 3n the garden center? Mr. Holmer st�ted they were open uni;il 9.00 P.M. He staied that �they we�°e basicaily in the ski business and he d.id not wan�c to be a full �time nursey l,i}te Frank's. This is something �co fill in the summer. He planned to open it when the season starts on May 1 and c�.ose ii: on July 1+. Mr. Harris asked if there was ar�y 1.ighting out i:her�? Mr. Holmer stat�d there w�s only the li�h�in� that came with the Tex�co Stetion. PLANNING COMNlISSION MEETING, MAY 9� �979 PAGE 10 Mr. Haxris asked Mr. Holmer if he intended to pu� in �ddi�ional lightin�? Mr. Holmeac stated he did not because the months that he is open it is still light untiZ 9:00 P.td. . Mr. Harris asked if he intended to pu�t any a�+cessory buildings in front? Mr. Aolmer stated he did no�. He had pu� up �, wind wall for the outside counter but tha� has been they for a year. He did not see the need for ar�y additional structures. � � Mr. Oquist_asked when the public hearing would be? A�. Boardman stated that if' they went by the normal process it would be July 15. Mr. Oquis� stated it drould be closed by then. �� .� Mr. Boardman stated that dras for �che zoning. A Special Use Permit does not require a public hearing before the City Council. However, there were several things they should look at. A Special Use Permit was not permitted in a C-1 zone. Therefore, they can't grant �the Special. Use Pe�mit until the zone is in. He added that although the Ju1y 15 meet3ng is the scheduled meeting it9 if they are notified. tha't they should advertise it before the me�ting of �the 21st� theaa they wou].d be at the June 11 meeting. They will send out notices to the property owners before the public hearing a� City Council. I�lOTION by Ms. Schnabel, seconded by Mr. Oquist� to close the public hearing. UPON �i VOICE VOTE� ALL VOTING AYE� CHA1�I��AN HARRIS DECLARED THE PUBLIC IiEARTNG CLOSED AT 8:�t0 P.M, Nx3TI0N by A�. Oquist, seconded by Mr. Treuenfels, to recommend �to Council approval of the reques�; for a SpPCial Use Permit, SP �r�79-03, The Lif�-Ski &}3ike� Inc.� by Scott Holmer: Per Section 205.1OZ, 3, N. to a11ow a garden centex on Lots �, 10, 11� Block 1, I�ioore Lake Highlands 3rd Addition� the same being 631g Highway �65 N.E. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRMAN HARRIS DECLARED THE MOTION CARRIED UNANIR10tJSLY. Nir. Harri,s infoxmed the petitioner that this wnuld go to Council on May 21 and would probably be tabZed un��l the zoning is approved. The petitioner thanked the Coffinissioners. 5. VACATION 22 Sicreet . r sav �79�01 BY KATHRYN GERARD; Vacate the A].ley in Block 3� on, bounded by th and 9th venue N.E. b�tween 2nd Street and � � PLANNING COMMISSION N�ETING� MAY 9, 1979 PAG� yl � N1r. Boardm�n refexred to ��es 40 and �-1 o_f the agenda book. He stated thcy had received a peti�ion to vacate thc alley which wa� signed by all the property o�mers elong the alley ��ith the exception o� �he owners of 4871 ar�d 4861. KAtY�y Ger�rd, ��815 2nd Str�et N.E. stated that the people at �71 came �o her house today and signed the petition. The reason the people at Z$61 had not s.i�n�d was th�t iche house is reated Mnd �chey couldn°t Iocate -L-he owners. tY10TZON by Ms. Schnabel, seconded by Mr. Oquist, to receive the peti�tion to vacate the a11ey. • UPON A VOICE VOTE� ALL �Ia�ITdG AYE, CAAIRMAN iiARRIS DECI,ARED THE MOTION CARRIID UNANINOUSLY. Mr. Harris statecl they had also received a le-tter �'rom NSP address�d to Mr. Darrel Clark, Co�unii:y Devela�ment Director, City oi Frid].ey. The letter w�,s signed by _A'!c. Warren R. Johrison, Stafl Assis�ant, idor�;h Divisi.oxi. The letter reads �s fo7.� o�rs; "In regards to vaca�ion o�' th� alley in Elocic 3, Plymou�h Addition, Unundc�. by �8th and �9th Avenue P1.E. be-L-ween 2nd S'cre�t and 22 Street, t,Te have an overhead single pha�e distribu��ion li�ae located in �his a11ey. If �hzs alley is vacated9 tia� wish to rete,in a utility eas�men•c for our f'�cil.ities." MOTION by b:r. Oquist, secflnded by i�,r. Hor�z, to r•eceive th�; letic�.r from P�SP. U�'OI'1 A VtiICE V4Z'E9 ALL VOTING AYE, CI3AiRT�L11J �IAI�RIS DECLARED TI� MOTTON C�R%D �/"`t. UT�I�NI�/UUSLY. Mr. Har�is askec? why •i,hey wer� vac�-ting �his aZTey? Mr. Boax°dman s�ated they wer� doing it Uecause �he neighbors ti�an�ted i�t done. Mr. H�rris asked ii i�L w�s unin�proved? � � P�1r. Board�:s,n s�;ated it tr�s uni,�p:�oved., N1r. Harris asked if there were any garag�s facing it or any aceess �x�o�a i-L-? P�. Baardman stated. i� �ras a�.l la��n and fer�ces and w�s non-accessible. Ms. Schnabel stated thra� NSP had not s4ated h�ranuch of an easement th�y wanted. Mr. Boardman s��ted -they �rould maintain �the whole area as a uti].ity easement. Ms. Gerard st��hed that she didnot understand that. Nh°. Harris stated that because 1VSP bas power �.ines in there, they must have an easement so thcy� can service thos� lines and retain their poles. �� PLANNING COMNLISSION MEETII�, MAY 9' 1979 _ - PAGE 12 Ms. Hughes asked i� there �aas the possibility that they would need. � bike or hiking system in thaic area? Mr. Board�nan atated they h�ve a bike system on 3rd Stree�. The traY�ic would not �rarr�n-� a sy stem �there . - - ' � MOTION by Ms. Schnabel, seconded by Mr. Treuenf'e1s� to reco�ne� of •�he V�catior� Request, SAV �79-01, by Kathryn Gerard: Vacate Block 3, Plymouth Add.i�iion, bounded by �+8th ancl 49th Avenue N.E. and 2� Street, with �;he s�tipulation that an easement be retaine all.ev ior utility and drainage purposes. d to Council avproval the alley in between 2nd �ree�C d dawn the vacated UPON A VOICE VOTE ALL VOTIIVG AYE, CHAIRMAN HARRIS DECLARED THE Nfa'I'ION CARRIED UNAIVIMOUSLY. A2r. Harris in�'ormed �he petitioner tY�t this would go to Council on T�layy 21. 6. HOUSING & REDEV�LOPMENT ALITHORITY REDEVFLOPMEPIT PLAN APPROVAL: . Mr. Boardman s�ated that the Commissioners had received with �the a�genda a documen� entitled "Phase l, Center City': Tha,t was iche ractuaZ inventory and �,nalysis o� the Phase 1 portion of the Center City Project. With that ana].ysis' �the City Council mo3ifieci our proposal on page 2, primarily because within Phase 1�they looked at the feasibil3.ty ofi �'ir.ancing on it and the �ax increment finanein� proposal was px�obably more feasible than a lot af the other �y�es of funding they had looked at. So� in order to carry out the process they went to �che City Council wi'th the recommendation that instead of going wi.�th the original Phase 2 proposal which was to study �he di�'ferent funding passibilities that they go right in and, develop �a tax incren�Ent �'inancing district or redevelo�men�t district as �].lowed unde-r Chap'�er �+62 of the Mirinesota Sta�ues. The City Counci]. approv�d this' made the changes to Phase 2 and started them working on iche development of the tax increment plan. The document �he Co�rnissioners receive@ tonight was distribu�ed qui�te late and Mr. Boardman apologized for �hat. He stated that after the decision was made by the City Council on April 23 to moae ah�ad, they h�d several conversations with their a't'torneys and other peopl� reg�.rding tax increment finance legislation. They ielt it was in the bes� interests of the City o�' Fridley to move on the �;ax increment pZan and get �the tax increment plan established. The Housing & Redevelopment Authori�y (HRA) has been invoZv�d in this closely. They had a mee�ting on May 1 with the I�A. Tlie HRA had a lengtY�y discussion with �hem on -the development of the systera. Mr. }3oarc�raan displayed an aerial pho•to�raph for the coAUnissioners of the area in question. He stated that they were iollowing through on all the le�al pro- cesses necessary' to set up -the tax increment distric�. The legal process requires 10 days notice before the public hearing. The public hearin� notices were in the paper on the 3rd. The public hearing will be held on the 14th and l�ti1 of M�y. Ms. Hughes asked �rhich property the hearin�s would be on? Mr. Boardmmn s�ated it �rould be ior the whole district. Down from 61st and over from 5�h Street to 7th Street includin� the Village Creen property. He reiexred to the oth�r document he distributed which was the "ChronoZogical Listir� of Events Leadin� to Development of the Center C3ty Pro�eci". He reviewed this document and �'�'�,,; PLAIV�TING CONII�7ISSION MEETTNr,, MAY 9_�979 pAGE 13 i=� stated thm�t �Lhe project s-i�r.ted on Febru�ry 15, 1978 v�hen they received a le�ter from th� Ci�mb�r of Cougnerce to the business peop'le regardin� a meet3ng conc�rnir� the fu'cure dev�elopment of the University and Mi.ssissippi Street area. There was a questionaire from the Chamber of Corranerce at th�t time indicatirxg in�terest to improve the University�Aii.ssissi.ppi Stree�t a�es. On Febr�xy 22' 1978' th�re �,•as a Conc�rred Communi�;y Business Men's meeting and on Apri�. l�+ 'che City received a letter �rom the CLZara'oer of Cotr.merce to �ch� M�yox ind.icatin� a su�anary o� �he meeting oi 'cl�e 22nd' �ri�ch interest from that mee-�ing to pussue fur-ther develop�nent. Since th�st tin�e, we h�,ve had iive Covxicil meetings which dea].t wi-�i;h the discussion of hirin�; � consultan'� �Lo loalt a� the area a,nd wha'L' t;�es of' things -they would. be looki�g �,t in th� �area. On Novemoer 16, 1978, �he agenda �r_d a�'tendance list of meeicin� �;o hzar eonsul�GIIil'f,' S proposals. On Deeembex� 18th� � consul�tant ��res decided upon. Tt �ook a year for thr�t p-rocess to talce place. Mr. Board.man s�tated that his point wi�th al]. -this was to sho�a the Cam�nissio:�e�^s tha.t �there had been a 1ot of discussion and � lot oi' discussion with t�.1e b�isiness mAn in -�h� area tha�c has been �oing on �nd it is �,n on �o:;.ng process that �k�ey st�rted a whole yeax ago, on February a� Z978. Af-�er a consvlicant t•�as hi��d, th�y se�C up �,he Business T�zs�: Force Co�i't�ee. The l3USiii+�ss Task Force C��,initte� Y�d several. rr��etings wr,ere +�iey d.iscuss2d th� issues ir�volved, i:he �tax increm�nt financin�, assessmen�t dis�ricts' e�CC. to finance projects within ':�e area. Ai� tllose �t;imes this are�, w�s p�e'cty m�zch layed ou�� in this nianr�er so ta date �che Qiscussior,s have primarily Y�een coracerned with this axea. Mr. Boardman ir.dicated on �;be map t11� area he had d�scribecl ab�ve. R�°. Boa,raman ��'en+ on to state that o�1 F�bruary 29, Z9 f 9 there was a joiat raeeting of' the Ci�y Council.. Planrling Commzssion ��d the I�A '�o discttss 1;he Geut�r City �"� Pr�ject. So thFy h�vF invalveci the Ci-L-,� CoL�ncilp f;h£ Pl�rining C��mnission �nd the ._ HRA in t;he �rc�cess so �his is ro� necessarily th� si.r�t �tim.� the Commissi�nex•s we�e 1.00ka.ng at it. Un�'a�;:��te1y, bccause cf i:h� �ir,ae ��1.e �hey hav� &ad 'Lo follow durir.g i;he past ��eek and a h�li9 the planning proces� has speeded up cc�z�si�.er�,b�Ly. He s�tr�ted •�here were several �.hin;s �:e w�,n�ed �o poin� out at this point in time. Not c�l.y w�s th� Business Task �'orce Cot:�ni�t�ce� es-��blished but �,h�re zvas also t� Mana�ement Taslt Force Co�runi.ttee establ:�shed �ahich included prim�,rily all. of the interes�ted parties on �che City Staff. '!'he meanbers oP the I�nagement Tasl� Force Commi�L�L-e� inc_1_uded Mr. Qures?ii Gs th� City Ma�agerp b1r. �runsell ;. �,s far as �t7ie finance �;oes, Mr. Sobiech as �ar t�s the Public Worl:�s Uoes, Mr. Turnbull ��ozn tY:e . Poliee D�partment and hims�lf, Mr. Boardman, the City �'lanner. So all of tlie areas of the City H�11 were involved in the Task Force. They held a seri�s oi" M.�nsgement Task Force meetings all thx°ough the process s�artin� t�rith whe�z the corasul�h�nt was hired for �the project. They h�ve also had witha.n the process snd wi�Lhin �t�e Business T�sk Force several of the proper�y cn•mers involved . i�ose propea�ty at,mers not invalved in the Task Force taere met with �nd th� concep�ts and ide�s were discussed. Mr. Boardman. stated that he and I�i•r. Doyscher had also gaet with b7r. Le�ri who owns a tna�jor. portion in the area and also with Ilarma Swanson. P�.r. Boardman st�ted �hat Gus DO'�jr was on the Task Fbrce along �.+ith Mark Ha�g3rty. He stat�d tha� �he City holds a contract for deed an a major portion of �Lhe Christenson C`�nter. .�hey have also discussed and had r�eetings with St. 'fdilliams Church regardin� 'che Project. As far as the rounty involvement goes, t�ie City I��ai�ager, Dick Sobicch �and I� . Boaxd;nnn sat dt�wn with P.�lph NcGinl.�y on May 2, 197g and discussed tli� potential on this. They wer�z� to the County Board and had � a County }3oard meetin� on Tuesday, blay 8, i979 and the County Boax'd passed a resolution � supporting City Council action in the develo�men� �f tlie taA incisattent district. PLANNIIVG COMMISSION I�ETING, MAY 9� 1979 -_ ___ PAGE 1.4 Ms. Hughes asked why the County was involved at all? Mr, Boardman stated they were involved through the notification process primarily. �, They did not require the supportin� resolution from the County or the School District. They do feel however�.th�t it is very important to discuss it with the County and the School noa.rcl to try to answer any que�tions and soften �ny feelings that might be developirag because of this. Iie felt they had covered it very thoroughly. They also mei� with Juhn Hanson of the School Distric�. Mr. Boardman felt that the people in.volved;had been notified and were aware o� the proce�s and the progress that had been �oing on. He sta.ted that he had called each of the people on the B.us.iness Task' Force personally and let them know the�pro�ess they were goin� thx'ou�h; where tl�e� were with it and when the public hearings were being held and also �.nviting them to the public hearings. �Also, his office is open and he has had several discussions with members o£ the Business Task �Fo�ce, � ,""��' Mr. Boardman stated that he just w�nted the Co�nissianers �co know where they were on the chronolo�ical proces� they have been going through and the notifications and the type of back�round tney have been trying to develop. He stated �that tb.ey were , not trying to hide the project.._ and they very carefully worked out th� I,egal I �_ arrangements. _ - , � He and Mr. Doyscher me� with - have rick late this aiternoon to 0 over some of the resolutions tha't will Y�r . Her � to be passed and to go over the t�x incremen� plan itself and the whole process they are �oing through. They were very carefully molding this into a very legal type of document. Another thing he �aanted to mention was the tax increment distxict. As he ha�d d.iscussed b�fore, tax increment is a tool that can be used by a developer� �o develop praperty or to parcel property to make it large enough for developmen�t. � What they have to do wi-th the plan is to look at �he goals and objectives aud how they 3.nten�. to carry throu.�h tha'� process. Iic has been their inten� all alon� and it has beer� the City Council's intent a1.1 �long �o look at individual pr�vate developmen-�. The City would no� take �etion until they have co�nitment for develop- ment. This is a very key issue and he felt it was brought out in the document very well. They would look only at acquisition in those cases �ahere they have commitment �'or development. He stated that a't this time he wculd turn �he discussion over to 2�ir • Dean Doyscher and he could expl.�in �the lega]. document, what they are looking �or tvnit� from the Planning Ca�nission and what is required. under Chapter �+62 of the Minnesot� Statue. They were looking for a comment �rom �the Planning Commission that the plan is consistent with the Comprehensive Planning of the City of Fridley. He s�Lated that in reg�ards to the res�lution in the document� �they had da.scussed vhis with N1r. Herrick snd they would be adding on to this last thing "and recommend approval to the City Council". Iie s�ated it was not necessary to have �that in ther� but they feel that �he total process the Plannin� Comm.i.ssion was set up for was a recommending body to the City Council and therefore they would be askin� �the Planning Commission to recommend this �Lo the City Council for approval. Ms. Hughes asked what kind of a vo�te would be reguired on this? Mr. Boardman stated it was strictly a m€�jority xule. r"� PLA1�iIJINC CONIMISSIOPI MEETIi'1G, MAY 9, 1979 _ __ PAGE 15 � N1s. Scian�be7. r�ferred to a s�pmra�te piece of papex� tha,t waE distributed to the Commiasionera and ask�d. wh�t it w�as? � Mr. Board�an stated that dras th� modifica'�ion of one sectiqn withi.n the glan � and that was on pa�e �. a.iter th� reso�.u4ion. I�t, referred t�o a statemen�t re��rd�.n� a HI2A devElap�erlt far law income famS.l�.es �and �lderly. They eZirinated �Y�t sta�Le-� ment �ram �t;his secicion but it is in th4 docu�aent. The reason they removed ii at -�his point �;� s prir.iarily le�al. They �rere lookin� at includir� Villa„e Green. Hoz•r�v�r9 ��rhen �thc,y t�lk ml�out freezing the �i�xes at tn.� level, ichey wex� t�l�:ing �zbout i'reezin� t�xes r�� tY�e level. of l�'��3 and p�:y�zble in i979. Becr�use of t�ia� situ��tion� the 1978 assessed valuation on the propez�fy �ras the assessed va2uation without developmen� and by leavzng th�t s��ste��nt in there at this point in time and sayir�g �ha'� it includes this in this: projec�9 they ��Anted to rt�aYe sur� th��t �chey had time to cl�.eck Frith t.h� legal staff on this -t;o see wh�,t kind of problems -�h�y might �et into. So at this poin'c in �i�e th�y took it aut and before the public hearinos �:C �;hey ne�d to rtplace th�t , '�Lhey will �u�t i�t b�clz in. But tYicy' ��an'c �o chECk �rith t,he 1.e�aZ s�ss'f on tl�at. With �he inclusion oz the Vill.age Green thc�r laave a vexy viable �-rojcct. 7'here was no guestion in �tl��ir minds tha,t it w�s a viable projec�L b�cause what it does is i�c subsi;an-�i�].ly creates the �irst s�tage co��l�tion whzch gives them a'tax incre�ient to �o into the oth�r ph�ses they r�eed �o go into. What �v does is secures the project as far as fir_4nciai security goes and also eives th� a bu�°fer for any problems they m� run ir�to. Another thing he �ran�ed to mention s�as that tax ia�cremen� w�s a tool ti�e Ci�y uses. The Cit�� c7oe� have an op�ion. Af'Jter se'cting up the di si;rict' th�y do have the o�tion ai remo'JIII� �nrcPls :i'rom tha� dist�°ict. t% brought up icha't � poiut i:ecause wi-�I7in a tax ir�crernent distric'c �they cau?d reraove parcels without goin� i,hrou�h �h� proc�ss Y�ut in order to increase th� size of the dis�rict they' z•rould have i;o �o �i;hrough i;he same process th�;� �en't �Lhro�h in set-tin� up �he � ais�trict. �other tY�in� the City h�s an optiQn to do a.ra f3nancing � tr�x increm�n�c dis�trict is th�,t if nothing hap�ens and �they c�on� t b�t ar�y dcvelopmEnt� �;h�y �an turii �Lhe �nor.ay back vrith i�terest �o the Cou.��y and the S�hoo1 Distric� and the Ciicy as f'ax as the %a:�es that have 'been coZlec�Ced over and above that froze� 1�vel. � xe wau].a like �o s�t.ress again tha� tax increment is m�re].y a�ool that is available and can be used by •the Cit,y . Ms, Schnabel asked what would happen if fche Schoo]. came down and said no. N,r. Boardm�,n stnted that �hey did not rec�uire School Districi; ap�rova�y or C.oun�ty ,�,: approval. Tl�ey only �,pproval necessaxy is approval by the HRA,��and the City�Council. They would pass a resolution and that resolution must be passed by our City Council and at that point iii time thi: tax increment district would be set. What they would then need is something from-the�County�Auditor to'certify those values. They don't need !: approva7. froiu tlie County Auditor, just the certifying of the values. [�That that �ne�ns is �hey �;ive �che Caunty Auditor � list o�' the ar�a wi�Ch the assessc� vai.uation on it �.nd they s�r.d it �k�o the County and �Che County looks at it and sa�ys �hose values are certified as the values that are going to be frozen at that level. IMs . Schnab�l asked how 1.oz� they would be fro2en? PLAMVINC CON�LCSSION MEETING, P�Y 9s_ _1979 PAGE 16 Mr. Bo�rdman stated t;hey would re�ain frozen as lon the tax increment dietrict is in existence. He did imum time limit. What happens is that ichey wota.].d b of�' its bonde or bonded indebtedness and completes , � g as the period o£ t3me that nat believe there wns a max- e frozen until the City pays its pxoject. Mr. Dean Doyscher came for�•�ard and stated that he was the presiden-� o� the Pro- fes�ional Planning and Developmen�C Cor�pany and was under con-�ract wi�ch the Ci�y o�' Fridl.ey regarding tlie C�nter Ci��y Redevelopm�nt and Revitalization Project. Iie sta'�ed �hat he would like �to make sure eves~yone understood wha'� tax increment financin� was9 but beiore he went in�o th�t he �aa.nted to make some s�tatements regarding some words tliat have been used here to:lig��f, such as freezing valua�;ions and �'re::zinb �taxes. G1her� we say we have �o certify a value �y*ith Anoka Coun�Ly and Anoka Coun�ty ir.eezes a veslue and you are a tt�x�ayer in th�t dis�;rici; or a prop�rty o�mmer in tha� dis�;rict, it do�s no�t ix�eeze your v�Iue or your 'taxes. Your values wi11 increase based on ituprovements, inflat3on ard other decisians me.de by �he Ci�y9 County' School. Distric� and. S•cate Legislature. Therefor.e it also d�es not freeze your �taxes. A1.1. it does is establish a mechanisr� for record keeping for Anoka Coun�y to say that the City of Fridley i'rooze ar estab7.ished this as �the base year. On the bas� y�ar there was so raucr valua�ion. One year la'ter thEre was this much valuation. People are payin� tlzose ad3itional t�x�s based on those additionaZ valaa�ions. `�he difference �then is wha-L- tYi�y ca11 tY:e �the c�p�Evre increment. If1 for exarlrple, �hey freeze tiiis ana it a11 has an assesseci valuation of �lOc�,000 and based on a lOp in�'la�ion of property assessed values in �.97g or 1980 it would have an assessed value of $110�0009 those peopZe woiald pay '�axes based on assessed v�lues oi �110,000. The County would coll�c�L taxes based on��110,000 Uu� they would onZy dis�ribute monies to the ica�cing jtu isdictions based on $100�000. The other monies or �the mill levy �tim�s y�10�000 would be distributed to the Ci-ty of Fridley and the City of Fridley's FiRA. So� people who do business here� own property or pay' taxes do not see any changes in the normal course of whats been happening over the past years and wha� will happen to a11�.other property in the City of Fridley. Ms. Schnabel ststed th�,t was assum3ng that the mill levy vrou].d remain the same. Mr. Doyscher �tated that the mill levy woiaid have no basis here. The m3.11 levy on the increased valua'�ions, if the mi11 levy is increased' it will also be applied �� 1 PLAI�TJING COt�BSSON ME�T2TJG� MAY 9s 1979 PAGE 17 � a��inst the incr�ased value and �those tu�cing jurisdictions �aill �et the difference in the increase in the mill levy. So we don't freeze a m�.ii ieVy on anybody. � N1r. Oquist st�ted. th�t 'chey were not i'reezing anythin� then. ,,, P�rr. Doyscher statea the�y �a�re not freezin�, anythin� �or the taxpaysr. Just in the matter o�' hozr �the mon�y is distributed frG:n the C�unty. The Coun�ty collects aLl. tar.es e.nd the Caunty clis�:ri'�u'ces tsxes bas�d on� �he Ci-ty bud�et� the Sehool Di.,trie�C budge� and the County budge�t and the other sp�ci�l taxin� d3strictPs budg�t. They dis�ribute on].y to that frozen level bas�d. an i978 values. The di:c"fer�nce bettaeen the 1q78 value o�' �100, 000 and �he 197g va].ue O� `y��.�09OOOp that �10' b00 �rill be distribu�Ced �o the F3RA �o accomplish thc goals �nd objec�ives of' the Center City Redevelopment Projec�;. They are alsa askira� that ihe I�A sign contra.ctual a�reements with the Ci�y of Trid].ey so �t��.�L the Ci�cy o� Fridl�y is �Lhe �inancial agent �nd responsib].c �:or �the r�dmiizistra't3on. The Y'�c.`tSOIl f;hey fec1. �Chat �ray is becaus� the HRA staff is the sane as tYse Ci-i;y staff �nd the Ci'cy has the rinancial whe�e wi�h a].1 -mec}�anisms presently �t it° s dis�o$al 'co h�na�.e -this type o� accaunti-a� -for_ type vf' ca.ec�sions. Th� HRA ��rill. al��ays p�ay it's role in deciding opa z°edev�l.o�nen�u ob jec�cives, goal. polici�s, eval�ia�in� priva�;e d�v�:l�pers proposals9 amending the plan ii n�cessaryr and all o�' �hos� rzctivi•cies. Al� iinancial obligA�cions :includir�.g the ae�ual determin�tions oi acquisition o�' �roper�ty, the selling o�' general abliva� �iion bo�ds aazd the like, will r�st� with the Ci'ty Covncil. Mr. Oquist asked if the HRA wauld then recamrnend �he disbuxsemeni; of �'urlds but Council s�i11 n�akes iche fin�,l deci�i.o�s? Nfr. Doys�her sta�;ed in te-.rms o�' th� arr�rz�ement in �he City ofi Fridley'9 th�e City Cov.�ci? will b� p�°ime iactor in tlze O.G-'C].S�OII II�1i7tIla. A'!s. Hughes st��ted �hey �rould not b� leg�lly estatilished. Mr. Doyscher stat�d �;h�t le�;a11y vh�y would be because they are �igning a contractual arr�ngemen�t beL�aeen �he HftA and the City. Nlr. Baax°clru�n s�a�ed -i:h��t Frrat {�hat does is put th� Ci�ty Council in the situation where �h�i°e is s Housing Authori�ty but �� is con•traeting �ith t;he City Coun�il to carry out -the Housin� Authorities iunctions. N1r. Doyscher s't�ted that additionally there were I�iin.nesota Statues regula'�ing the issuFZnce of general obligation bonds, and it always rests �iith the City Council; no matter wh�t C:�ty you are talkin� abou�, to issue rany bonded indebtedness against i�'s residents and it's property. When they tal�: about risk on ich3.s project, the real risk is the financial risk and tha't risk is evident in the issuance of bonds and repayin� the l�onds. That ��ii alyrrays rest with tl�e City Council rc:�ardless of wha�; they say in this document or re�ax�dless o�' wk�t kind of co�i;ractual arrange� ment provided in P�innesota law. City Councils are the only ones •t11at issue general oblig�tion bonds. A4s. Iiu�hes stal;ed that she �ras surprised that the HRA could sign a��ay it's respon- sibilities. She sta�ed she didn't unders�and that but it wasn'_t important right � now. PLAIVNING COMMISSTONMMEETING MAY 9, �979 - PAGE 18 Mr. Doyscher sta-ted he feZt it was important to understand wha�C the role o� everybody is yo �a� don't get thos� confused. Tax increment 1e�islation appearB in two diffcrent areas of Minnesot� Law. One is the i�A and one under a special piece of le�isla�ion called tax increment iinancing 1aws. There are a t�rhole host of reasons wY�y s�e choose to operate in Fridley under the Housin� & R�d�velopmen� Authority. I'�°imarily� the 'cax increment 1aw as a separate piece of legislationy 1.imits project areas to six acres, no more than si�: acres� no mare than one gercent of �Che City's assessed valuation9 no more than three percent of the C3ty°s planned area. It has special requirements and does not need a HftA at all. It only needs a City Cozancil to do that kind of legisla�ion. The HRA la�r on �he other hand also allaws the est�blishment of a redevelopment district financed by tax in.cremen�L through the sale of general obli�ation bonds or through the sale of revenue bonds. I� is legal to sell revenue bonds but historica7ly no one has agreed to sell them. It al.lows Zarger areas. It aZlows more flexibility in the redevelopment process. Those were the two key areas to establish �this distric�t. The six acre thin� would almost make us get into �he same difficulaties that, in his opinion, the Center City has been in anyway which is small land parceling in one of the prime commercial areas of the City. Mr. Doyscher sta�ted �that -tax increment i.s all�red under those two areas. The basic purpose of �tax increffien�c financing is to redevelop. It was originally designed. fo� two purposes. To cause � redevelopmen�t for housing and saie, sani�tary and healthfvl conditions iar low and moderate income families, and a].so �to redevelop areas that are deteriorated or blighted. Some o� �he worda�e includes faulty plannir_g, small land parcels, safety hazards and the like. Tax increment financing is �cb�a under the Redevelopmen'c Authority a�'inancing vehicle. It does nQt rec�uire a statement a'c the frant end �tha� each piece of property will be developzd in a�*ery specific n.�n��er. But it allows us a� financing tool in the manner Yi� describcd previously, housin�; re-e�taZua'tion;s where �se geic the gains. A very speciiic exampl� here is the Village Green �rea. It will gemerate substan�ial cash flows to the Ca.iy and Housing Au�hori�ty in the very near future. Next year in �act. Tt F�ill give �he City the �inancial ieasibili�ty and �•rhere with alZ to make decisions on other property acquisitions or street tra�fic improvements or util.ity improvements and things of �chat natuy°e in this wh.o�e area. Mr. Oguist asked how Village Green would give us that money? � � Mr. Doyscher s'cated. that taas bec�us� ws ar�� iree�in�r those �v�.lues a'� '�� Zvnlues certisied date. The ].ast cer�ti�ied date is 1978 values. The r�ason 1979 � although they are prel.iminarily calculated, are not certifiabie values because all tax equalizat3on hearings have not been held and adjustments made' time spans are sti].l in effect ior pevple �co ask that adjustments be mrzde on their assessed values £or 1q79, e�c. So that is no�t certi�'iable value a.nd �rould not be a cextiPiabl.e Va1ue until October at the �arliest. You always pay ta�xes on last year's values. Wbat do we have then for 1978 zralues? In 1978 Village Green zdas vacant property. On Januaxy 1., 1979 trat �project was probably �+U� complete. On January 1, 1980 it will be 104�0 complete. There is a substan'�ial d3fference between that frozen value of vacant pro�erty in 1978 �nd the fu].ly developed praperty in 1979• Mr. Oquist st�ied that then it would be taxed accordingly and we get the difference which would be the capture. �. � PLFINNING COA�'fISSION MEETINC, MAY 9� 1979 PAGE 19 Mr. Doyseher stated that was correct. He s�Eated thAt basicall.y they thought the n follawin� was accurat�: As vacant pr��erty he throu�ht it had �n assessed value of around $i5,000, On Januury 1, 1979, or the assessed va,lues in front of the tay equalization boara now, has an assessed value oi arouna �2,000,000'. In l�$0 it will have an assessed v�].ued of around �4,000,000. It is alsa a�roject oi a sp�cial natu:re in that i� is financed by f�he Minnesota Housing Finance Agency a;nd the Departm�nt of Housin� and. Urban D�velopment, �nd referred to as a Section 8 Project. Sr � Section 8 Project, hazf o� �he value is forgiven for tax com�u- tation pux°pos�s. So a pxoj�c�t like tha�t, ins�cead oi an essessPd v�lue at basicall�r �0�� af marl{eic value, this projEC't is 2� of the rru�rket va].u�. So our �ssessed v�lues are some�rhat� less than9 wh�n he says ��+,000,000 tha•t's a market va].ue� and the ass�ssed value is around �1,000,Od0. " _ So minua the �159000 we would have a capture of $985,000. This wilt �ene�a�e subs-tantial monies. He thought �hey 4�er� in the nei�hborhood oi $75'000 �o $120,000 annuall.y for the Fx•idley HRA. �"'� Covr�cilman Schneider �sked if that money, tlze �75,0009 ��ou1d go strict]tiy to th3s '�ax inc.r�menf� dis-trict� I�t does not get mixecl in taith �che general iund or be used �or o�Lher �t��gs. ASr. Doyscher s�ated �;hu� �ras correct. The money would go d�rectly into a snecial accoun� for �the Center Citg Project and i� would be accoun'ced for under special �un.ds arld �che City wil7. x�epor� to trie County and to �he School Dis�crict ar.nually the status of •that accoun�c. Mr. I-iar.ris asl;ed if' as fur as this accoiznt �oes' could t�iat money be investec7 or is i�t .like an escrog�r �ccour.'�? Mr . Do;{scY;er sta��ed th� mr�ney could be investecl. Mr. Board.man sta�;ed �that if fbr some r�ason that dis�rict is not operable or some- thin� lilce �that, the raoi.ey earned on the investment music be returned �to the Coun �� and �rie Schuol Distric�. Mr, Oquist aslf�d what the S�hool District vrou7.d do wi'th �he money i� it were returned? N'�.r. Doyscher st�ated that if i�L ��ere ref;urnecl to the Coun�t�- �they would have a�rea't deal o� latitude as ias as �h�-L- they couTd c�o wi�h it-. But the SchoQl Distxict �:oulcl be restricted under, he �ssumed, the present restrictions o� property �taxes which would generally �ean it could not be used for Gpex°ation� salaries or �dmind 3stra'tion9 �ut generally fox retiremen�t of capi�tal debt and land or building im- provEments. Mr. Boardman s�ated it could also go for those things not covered by State revenues. Mr. Doy�cher aicated that Anoka County and Schoo]. Distric� 14 aid not have auy reason to get exci-ted for the following reasons; First� �lley continue to rec�ive 'che t�xes on �he valuataon at the 1978 v�lues. So in essence �they are not losin� any�;hin�. Historicall.y, �his area has not, in the past ten years, made any substantial im- pravements. So historical].y the County and School have noi, seen any �rea� valuations anyway. Ai�y redevelopment tha�t occurs at the end of this increment peria3. will be captured by the City, County and School District. Up until that point there hasn't� �'1 PLANNING COMMISSION MEETING, MAY 9� 1979 PAGE 20 historically been any chan�es so that a�}►thing that over the long run �aill improv� this area and cause valuations to iacreas� and there�ore tax revenues ax�e a � positive in�fluence. The 5chool District especially is not harmed because of the � constraints of the State law. He though� the County had concerns and investments in Misaissippi and University Avenue with th� Sta�e Highway Department improvement�s there and the County �lso has general land use considera�ions �they are plannin� so they woul� like to see iffiprovements. Neither of them are in eifect ].osin� r�venue from what their present history has been. Ovex° all, to Anoka County, this is a minute amount of frozen valuations. The reason Hennepin County has concern is because the City of Minneapo].is has sold bonds and made investments and the redevelopment has not occured. Also the Ci�ty has acquired property and cleared it and redevelopment has not occurred. That's where you ge� neg�tive ilows which requires Hennepin County to worls out with the City of Minneapolis how they are going to pay. Ar�d MinneaPolis has a problem because �they are not making enou�h money to p�y of� their �eneral obligation bonds so they are starting to have to look at their own general revenues to pay the bond holders. This happened because A�inneapolis took risks in terms of bu}ring land� clearing it and making it available fox development or rede�relopment and those ich_,'_ngs didn° t occug° in a� tim.ely fash? on. The cvnsternation bet��een Hennepin County and Minnea�olis has bee� because oi th� money flaw, not the concept. That is part of �he reasan for 'che changes in th e law. The chan�es itt �he law give the Coun�ty more authority in determining which values are frozen and for how long they are frozen and �ahich ones you should captuz°e and ��hich ones you cannot capture. It severEly limits col�ecting revenues from are�s �rhere you rea].ly didn't cause anything �o happen. Ii� happened because �their o�rn private marlcet p].aees were responding 'co the supp],y �nd deraand and the City really didnpt cause ar.�ythin� to happen �heref.ore the County is not going to allow them �co cag'cux°e. The County will also set rer�uirements in terrms of when thi�s � have to be bonded �or �nd when they liave to be xepayed. So there are sor� chan�es in �he lavr in that regard. He statEd icha� he had been on legislative advisory comruittees for tax increment fi�aancing. They have been before �he State Legisla�ture for at le�st four years that he is aware o� on changing and �hey have yet �to change. There are lots of reasons they haven't chan�ed. They me'c with League of Minnesota Municipalities or League of Minaiesota Ci�ties and it i� tha't organization that has been priinar3ly responsibl.e for carrying the compromises beicween the counties and ci�ties and advising the State Leg�slature. In iac-t in this legisl�tive ses�ion �they are doing trie same thing. He ��ent over this projec•i: with the Le��ue s�aff for tEao reasons: Firs�t' ho�a would. it fall into any new lazas or changes �that they see and two, is this �the type of projecic that the State sees as a reasonable pro- ject as opposed to some of the people wha recently critized Bloomin�ton for their tax incremen�t project. The League of Minnesota Cities says that this is a project of the nature �znd type that the State Legislature concuxs wi'ch and the Lsague concurs �rith and �ha,t it is a viable project. Mr. Doyscher stated that the role of the Planning Commission was to advise the hRA that the proposed land uses are in conformance with overall City goals and. land use policies. That is what we are asking for. � g� PLANNING CO�MISSTON MEETING, MAY 9, 1979 PAGE ?1 � Council.ma:n Scl�neider state�. �.ha't ten yer�rs ou� p�operty t�xing �truc�ure �rill be differerit from wha,t it is tod�y after � fe�r y�ars of iegisl��ive cha�es �nd he �sked how that would eTfect value of the cap�ture? I Mr. Doysc:he� s-cateci he would give him a neg�•L-ive. Tn Caliiorr�ia tax PropQSition 13. ti•7h�t Pro�osition 13 and the h�ighth tha�t it got in other st�� 1e�islatuxes con- ' siderin� other sta�;es ado�?t that le�islation. In esserace what I'roposition Z3 was to roll back pxopex•ty value�. The Cities and Ccun�ies of Ca].ifornia did �iot increase mi11 levys but they had very fast incr�asin� va�ues so �th�y had big value ad. ju��:m�nt;s on those sa�e �i11.s. In Minr�eso�a thr�,t is a Ii�ttl.e different. Eu�L i�' such a state l��isl�tive act�ioa z�rere take� i�here property values were rol.led back or how you.judge property values were to �urstai�tially reduce, you would star� to generai-,e nega'tive flo�rs, iVo questio� �Lhat �,his is a concern. At the t3me the Cali�arnia legislation �r�,s bein� hyped around the news media' th�re was a concertec� e�'i'ort at tl�a�t time •i,� form a Local Uabaxi Affa:;.rs Committee in �he S��ate and Fiouse. What would happen �to tr�.x incre�Pn� pro jec�s? I�' 'chey �rexe going to make a roll back .in vall?es in response to tax s-tructuxesp th�� distric�ts �€�y bc consider.ed as special. dis��°icts or froz�n. Tha°t is a possibility. It �;�s his ieeling i;hat ri�ht now there were a�ood number o�' dastric�:s fbr wor-�hy �ublic pur�oses and they have some merit, Fut hc� coutdn'•t guess9 nor woul.d h� in�end �Lo, guess what the Stat� Le�islatv.r� might do. They could make �djus�ments so thi.s is sor�e�thing �hey have to be carei'u1 of. You c�n s-cill. make mis'cakes. �'h� other �thin� you have to be careiul of is plu�,�in� in inflation num7�ers. Some tax incremen-t dis��icts are created strictly an iniia�ioxa. Inrla'�ion is an up �ad dot�*n thir� anci n�.a.ybe. px°o� perty won't inalate so to basP i� en ths� kirad of jud��m�nt you could make �n � error. 741e St��e L�gisl�tuxes real].y control -�hE methadolo�r �r.a� we usE. Councilr,i�n Sch�eider� a�sked ii it ��as �'air -i,hen %o say tha� ar�yy change they would mak� in the me�hcxl oi calculatireg val.ues or taxes could ef�ect it? �ahat if •they don't change �he mechanism for calculating values bu� ch��.ge th� �'ormula �'or ca1� cu7.a,tii3g t�xes., Mr. Doyscher str��ed tha't almos� all of this was tiased on valve, property values. So he would see �hat as beiii� -the critical fACtor. As far as the meth�nl, of eolleetinG 'caxes, you ean s�y all t�ha� 3rou w�nic ebout i�, �ut it re�ily i�� based on TFrha�; values you set and then you jusi; pu't numb�rs to it. I�' you �,re going to allow or say Ci�ty Councils wi11. no longer collec� property taxes at tzl]. and we �rill distribute on � Sta�e aid formula. Councilman Schneider stated that brought to mind the McHutchints BiZl. Mr. Harris asised Mr. Doyseher if he saw �hat 1{ind of a move on in the Legislature? Mr. Dayscher stated th�t thin�s have shi�'te@. If you �•rere ico ask him a year aao,, wi�tl� more Democrats in the House9 -�here was a stroag foxce to s�v that p-roperty �axes are an unfair taxation m��hod and �that incozne tax is a more fair taxation me�hod. Th� less you depend on property tax and the more you collect on income and distribute back to your political subdivisions� i;he more iair you are being. But t11at philosophy didn't go a�vhere even with the spl.its thai; were in session a year or t�o a�o. But there was conversation about it. He did not see that being � PLANNING COP�IISSION N1�TING, MAY 9� 1979 __ __ _PAGE 22 __._____.. the same. He saw more t�ay th�� e would like our loca]. or political subdivisions be more i'inancially responsible and pro�ramaticnlly responsible unto themselves� � wi�h less state mandaices. He saw a shift �o that kind of philosophy. So Par no- � one has been �fraicl to establish tax increment projects because of all the state ' le�islative conversations. The League has so much interest in this because there are at least 80 to 120 c�.ties tha� have some sort of tax increment projects et some level of indebtednesa. Nls. Hughes as�ed why they had the tail on the dis�;rict. u"he referred 'to �he aeria7. photograph. Aqr. Doyscher stated that he sa�r 'che area as b�i�g a nei�hborhood convenience area. TlZat included the whale thing. The ax°ea to �he wes'c is a single iamily resid.ential neighborhood of superior quality aaid not in need of any special attention. The area defined is all similar in tern�s of being e� neighborhood re�;ai1 and. con- venience service area. Almost all of it includin� the tail has subs�cantial areas ofi vacant property and prime cor�ercial are�. Some of the businesses, even in -the 'tail� have high �urnover anc� less desirab�.e uses than could be er.pected in such a pxime co�nercial area. Some are in need of getieral. repairs and ircprove�ents and , certainly a need ior overall parking and traffic improvements. It 8�.1U�dS us the possibili'cy to in'ceract net•r development in a broader are�. Al1 the centers are neighborhood related. This is a goal loca'tion and has tlze possibility oi servicing office and er>panded retiail us�s �nd special housing functions. It could become an attractive area with �xnProved pedes�rian walking and cowmunications especially for the elderly and high densi'cy �amily projeci,s built near here that are poor now. The vacant land a�zas have littlE visibili�LSr �nd poor access and there�ore are not developed to �he economic a�.vantage of ei'cher �the land os•rner or the City. The�^e ^ are a Zo�� of conflic-tin� �.��. uses. ^lhey huve single family structures abut'cing commerical use ar�as9 warek�ouses with outside storage. They' have vacant land -tha't has been proposed for developmen-L- but a�ever developed because of conflicting 1anc1 uses. I Ms. Schnabel si:ated tha�c in regards �o �'inanci:�g, wha't if there is a recession'� This is a real possibili�cy in the minds of some economists and wha�; if we are in�to this. Wha� would happen to the Ci�ty's obliga�ions? Mr. Doyscher s�tated �hat once the City mak�s financial obliga�ions it is �inancial].y obligated. When peopl.e buy bonds, they e�pec� to be repayed. Cities don'�L like to go into de�aul�. Once tr.e City makes a decision to go into financial indebtedness it has the legal obligation to follo�r throu�h. If it is in that situation of i'inancial indebtedness and a recession happ�ns to such an extent that all property values are dropped substantia7.ly, it would be very difficult. Ms. Schnabel stated �that �hen if the Ci�y were to proceed with this and do it in various phases that would be better. Mr. Doyscher sta'�ed ii would limit it's financial obligation to that phase. He referred to p��e � of the document with the Table of Contents on the front. He quoted the followin� from the second paragraph: "Each phase of redevelopment shall require financial findings of feasibil.ity, separate conicractual agreements between the Ci'ty �nd a developer� City approvaZ of land use� zoning and such other requirements that may be established, snd compliance with the goals and objectives of this plan." What they are s�yin� here is that the City is not going to enter '"� PLl1NIVING COt�SSION N�TITJC, MAY 9, 1979 - _ __ PAGE 23 � int� tha.t phase oi redevelopment until there is a con�r�ctual agreement with a develop�r. In the second half of that statea�en�t is where we gEt into bondcd indebtedness. Phase �, j�e decide to ac�uire and clear land. We only do that with a contraci:ua7. a�reemen't wi�Ch a developer 'cha� he will develop it . That cr�n�ractual �;�reemen�t is spoken AY,out in •the La,nd and R�al Property Acquisition Plan and �he Land Disposition fox° Re3eve].opment Depar-tment in the Plan, which states that they canr�o�; do it for specul�tion and they must meet cex°t�in requir�- ments. Ms. Hu�h�s stated �Lh�.t Ms. Schnr�bel°s q,ues�tiox� really �e�s d�an to if soYneth3ng drastic hap�ened afl;ex� the can�ract was sign�d and •�he land was cleared9 ii 'Lhey ��nt banl;rupt or �here was a recession or something like that9 tkiat would be the real prob].em. Mr. �oyscrier s�ated that there s•ras no c�u�stion that ci�ies have �tY�e opportunity to make misi,ak�s. Wh�„� �they try to �.o is make deci�ions in a reasonable �nner and mal.e findings of feasibiiity and rrake jud�eme�ts. M,_'s�ak�s a�re �de. We hope tha� �re Y�ave er�ou�h p�o�ection ir� this docum�n�t �nd '�h�,t City Courlcil ac�s in a mos� reasona,bl� maxiner in the future so those are elimira�iced the bes� they can. N,s. �Iughes as�ed if he had any more negativesi Mr. Doysch�r stated thai: on� of �he goals oF �this plan is -�o ereate density in t:�is area, to cause a�edevelop�ent o�' st�.ictures anii peonle using those struc�tures, � The ar�zunen� Uf s�sne of those p�ople is -tha'c thEr� ar� already f,rafiic �Zow pro� blems anc3 'craffic haLazd problems and s�fE�y proble�s �o proper�cy and life. By increasing �lows We� ��,y in zact be increasin�; �Lhcse kinds o� problemse u�].�ss we are very careful abou�c �trying to ir�?�rave internaZ mc,vements on proper-ty which �re now exiiing and lef'c hand �turn �navements especi�.,11y ��c �the intersec�ions. That is an issue a11 of us must be aware of'. N�°. L�c�ardmfzn stated he �rould like to add that is ai�y developer went in �there now, even in the 1i�h�; oi the d�velopementth�t is e},istin� we would still have an increas� in traf�'ic flos�rs. Theie are issu�s invalved in this tha't we c��ot c�o �,,nythir_g about ar,d �hat is the �ra�'iic flow that 1210Vn$ throug�a this area. It cre�tes � problem and ?f nothing is comple�ed or no�hing is done then the tra�'fic pattPrns vn t�ie property like Ho11y Cen�ter, then even min.or dev�lopment ma�� cause ihe same types oi problems that w� have �rith majox development iaith malifications. � P+�c. Oquist asked i� the City could terminate this pla,n at any time. Aqr. Doyscher sta�ted it could unless it has legal and financial obligations. Mr. Oquist stated �that barrin� that, if tae cannot find developers who taant to cane in here for various reasons, assumi�a� w� hav� no other obli�atio�s �re can terminate the tax increment district? Mr. Aoyscher stated they could do one other thing ��hich �aould probasbly be considered a'� '�hat point, They cou].d m�ke a decision not to collect the revenues and to �'"1 readjust the frozen base until you were more sure about development and to turn that money back with interest and allow them �o start col].�cting �rhatever increases there are. � PLAN�'�ITdG COMMIS3ION ME�TING� MAY 9� i979 PAGE 2�+ I�Ir. Oquist �tated he meant sort of ].ike table it. I�Ir. Doyscher stated they Would se-� the cextification ofi' values aeide until some-� �'`, thin� else would help to s�an the legal establishment under �he district. The certiiica�ions of valu�tions is the real question. Nis . Hughes as�:�d �rhy the den�ist' s afiice incl.uded �rhich is righ�t across fro�a another major part of thP district? Its ri�ht nex�; to :Tolly Center. P�. Doyscher stated he did not think there �das any over�l]. by-p�cocess there. Ms. Kughes asked if it was because that property owner wovld be opposed? N'�r. Doyscher stated that if they loolc historically as to how �the Ci�;y h�s viewed �his area the way they had defined i�c was alwr�yya the area. Ms. Schnabel aeked what he saw as the goals of a Center City Projec� being.done in Fridley? What do you hope �to accomplish out o#' ifi? She sta�ed that she wras havir� problems because reped�ly �throu.ghou� the docum�n'c it sc,ys i�C is pri�arily a neigY�borhoad cen�Cer. Mr. Doyscher stated that she was xeadin� the Phase 1 documen-i and in.ic�e other docuanen� we have go�Zs and objectives. M�. 5chnabel stated thexe �aere tvro trays she could say �this. Tf y'ou want to speak speci�'icall�r to yovs goa].s and ob jec�ives she �r�zld h�ve some cor�en'cs about tha'�. She ielt they �•rere in the wrong order and shE �vovld mz.k� some changes on �hat. In a loi� �erm goal anc� objectiv� for the Cer��cer Ci�y Proj�ct for -the z•rhol.e �roject� ^ basic�ily they said it i-=�.s a nie�hborhocd c�nter ar.d �his is r�pea'ted tinle and a�ain th�t it is a neighborhood con;�enience sexviee cente?°. Pdx°. Boardman siat�d �hn� ��as as it is exis�ir��. , Ms. Schnabel stated �lso as it will be in the ftiture. She has read in here �that it is not likely to change. That i-t will always be a neighbarhood conver�ience service center. Her ques�,ion is if tY�at is 'true are there other goals she is missing tr.at th�y think will be accomplished as a resu].-� of �this proj�c�t? N�. Doyscher s�;a'��d he believed that the area �ras a nei�hborhood convenience service center. The reason th�y say that is because wh�n th�y first s�arted working on this it became a.pparent tha� it was a service center. Some people refer to it as a retail center but it is a personal. service area no� a re�tail area. A'c one point it �ras a retail area. By personal services h� n�eans dry cleaning� laundry� barbars� etc. as opposed to �z grocery store. Holly Center is a re�tail cent,er. Moon Plaza is a service center. It ��as importan� in the inventory to let everybc�dy knok* that we believe it is a service center, linless somethin� happens it will continue to 1oe 1;hat and i� Will decrease in its importance. The reason for th�� is because it now draws �rom not only this neighborhood but �rom some neighborhoods on the near nor-th, Caon Rapids and those ax�as �ahere there are more developments occurring. Ms. Schnabel statc:d that was to a diminishin� de�ree. �� i � PLAIdDTING COMNffSSION t,'IEETING, I�Y 9, 1979 _ PAGE 25 � Mx°. Doysch�r a�;reed �nd s�ater�, it would become less important. Even though it has more trn�ffic� tha�t traffic is on its way out. The �o�l then is no� ta make a re�ionr��. center. He did not believe it could compe�ce with a re�ional center such as Brookd$1e or Tdor-�hto�m, I� cloes have the po�sibi].iiy of be- coming � communi�y center but it �aill only do that ii there are planned parcels Zar�e en�ugil t'or people to develop. They donPt h�vE �hat size par�el available right now. He Ueli�ves its na•�ure is to be a nei�hb orhood conve�ience center �nd the way to keep i�ts viability up and �t-,o improve i� is to bring more people ini;o the iminediate �roxim�.ty of the neigh�sorhood and we can do �that in several manncrs, �ae could br:ing in oifice clevelopments. OfFice developmen��s will have people there at least irom 8:00 to 6:C10 and �;hose people may choose -�o walk to restaurant�, drug sicoresq etc. Tt wovld be an improvement oi the goad deal of vacan� land they presently h�ve. l3y bringing in addition.al housa:n� like Villat;� Green. In that re��.rd �hey would b� talking about somQ specialized housing ior elderly, disabled or h�.i�dicapped. It would be a very suitable locativn for tha� sort oi thing t�ecause of its nearness �,o and ad jacen-c to residen�Lial areas and �;�et wi'crin close �rulnir.ut3� �� cor.ve�ience areas. ��11�.t nii�h-� be �easi�le is to al? �w oifice develap�eiat in two parcel,s a�1d G hou�ing deveJ.opmer�t in atioth�r parcel. and to cause enou�,h pedes�rian traifi.c �'low and site improve�nents. We may be able to rehabili'ca'te and encl.ose I�ioon P�.aza so i� becomes � more viable center tlzan it is notir. We could also m:ke some irnprove�enf�s in tre Holly Cen•ter. Triose wou2d continue to be neigh�,orhood co��venience cen�;ers bu'c they would a gr��i:er drawing population base and they would have an o�✓er�ll. improved area to dxaw on and th.Ay �rould have a more suita'bl.y deve� oped area raicher than vacancy and the un- �e�np-L ki�:d of 'chere is ri�ht nd��. T�t t�rou�d �,l.�o ltee� some strergth in the eyisting � cen'cers.of so�ne size. Some of �hose need s'cruc�tu:�al improvements. Msa Scl�.nalael stt�ted that �hen basical.ly what �1e is sayii�g 1�ras they t,ier� h�ping thati throt�h 'che Ceilter City Pro ject �Lhey wou.id bring more people into a c�.oser proximi�ty ico �the existi�� corrauercial estab7.ishments. Mr. Doyscher added i'� �aould also im�rove �he genei�l conditions and. better utilize the la,nd x°e source s. � h3s. S•rhnabel s�ta�ed that anothEr problem she h�d was tha�t it 4:*ouZd no�C necessaril.y atiract more }��op3.e to �he area :�rom those ax�eas �hr�,t are now diminishi�g or noi� beino at�racted. Mr. Doyscher agreed unless they got some specialized restaurants or so�ething that responds du1^in� the day 'to offices and are �ttractive enough. Mr. �oardman sta�ed -�hat another t;hing we have �to look at is the traffic flaw prablem. We h�v� some problems righ-� nosa because some people who are really ira closc proximity �to the area do no� use the �rea because they have no �ecess. �•de h�ve access problems to look at too. If `re can solve some of those problems and provide an ea:ier flow wi�hin the area as far as tx°afiic goes, we may be drawin.g more of those �?eople that l.ive in the area in close proximity for u�tilization of �hat area pri�,�ri1y because it makes it easier for them to use �hat are� than to �o 'to Northtoti�. It may not nave the same attraction as far as Northtown but there are services there that the people would use if they were easily av�ilaUl.e. PLANNING COI�IMTSSTON MEETING, MAY 9� 19'f9 - PAGE 26 Ms. Iiu�hes asked ho�a the four quadrants of Missis�ippi and U�aiversity tie toge�her � or will they ever? Will they alti�ays be quite separate? � Mr. Doyscher stated �h�t ne did not think -they would tie together. They could tie together nortYA�soui;h. Aside from adding some turnin� iu�pr. aveffien�s and soYne sign�lization improvem0nts �hich �the Ci-�y in-tEnds on doing iic will �ie an improve- ments. This is a sta�e highway and they are not goir� �to fund depressin� the �ighway. Tli�ir �c�l is to m�ke traff ic move faster ancl the goal. of tbe peopl� in thP axea is to s7.aw it down. The state will win bec�use there is a lo� of demand to get -the �r�ffic goin�. To brid�e it wi'th a pedestrian �ralkway� 'the praof of �;hose things is th�t unless �hEy claain link fence i�t asnd give people no alternative but to use it, they are likely �o� to use it. The idea is to take this elderly building �nd �o��nhause and �his park and anoth�r are� where they would create an of�'ice and cr�ate pedestrian movements and hopefully make it move back �nd f'or�;h. This ��hole area is oriented to the �utomobile9 no�t to people and unless they make some changes people ��allc a lot diiferen�C�y across a p�zrkin� �ot �r,an they walk alon�r a side�alk. So h� d.icln't think they would get pedestriai� mov�rr_�nt in the whole are�. Tic is vexy lik��}r tha�L it zail3. rem�,in au�tom mobile orien�tea. `l'hat is the na�u�e o�' strip co�nercial areas. He �'�it they could crea'te sor�e peciestri�n movement �rom th� to•�rnhouses along Mississippi to U�iversity. 2�lr. Harris stated t,hey wou7.d have -to build in sarne specif ic ways oi movin� people who are i-iandicapped, ox disabled so �l-,hey can �,ove easily from i;he �lderly area do1�n to t�e shopping �re� and 'tl�; is not possible nota. Nir. Dayscher s-t�'�e� if they set re�evelopmen� goal s ior the developer as to �al2�t � they want �t�ey could s-��rt �o in�tErconnec� sorne of iie . � P�i . F'iarr•is stated ��1e�y h�v� to tie some oi i�t to�ether. They have six �h�ses and �he first pha,se is the Christenson area. We have al-r�ady got the elderly residence and someho�r as star� each one oi �he phases they have �to bui].d in�o each phase sa�ew�y oi �et�ting people dozm �to that area. He a�reed �that every- one of thos� facilit3es g•ras au�omobile orien-�ed. j�Te don'� even have a side�,ralk. They m�y even hav� to jump the gun in Ph�se 69 which is the lower area,. Ch�ir�an H�xrris decl�recl a recess at 1Om15 Pori, and reconvened 'clze meeting s�; 10:25 P.M. Mr. Oquist asked ii he �ras � develop�r ox busi�ess��n �rhat iaould entice him to com� into this area. Mr. Doyscher stated lze wauld exaggerate it and ansz•rer his question. What if he said he would give you four acres of land for $�.00 and p�y for all his parking? Woul.d you no�r came in? They would give you four acreas of the bes� lancl located one mile from the in�ersection of 69�+, underground parkiu� and pay ior your_ utili�ies for �1.00. Mr. Oqui.st stated. he was exag�erating. • PLANNTNG COt�I�fISSZOIV 2��ETTIVG, r�x 9� i979 PAGE 27 , i�ir. Doyscher agreed but e�id he could do tha� and make ��L work because of the j.-� money the,y° r�re �et'�ing back. Nir. Oquist s'ta•ted thex°e wa� a point �,��ere the City hss to stop thot�gh. N,r. Doyscher st�z�ed tha,y could use the inc�°em�nt for �he followin�. For the purposes oF dj.scussion, assume i;hey �;en�r��e $j0,�00 a year. I� ten years -that �ou�d b� �5G09000. Th��t �50,000 �rovld be ��nerated o�'f the Vill�,�;e GreEn. TY�t; is a conserv�tive a�nount, .�re wi11 gen�rate more than. �ha�. So we genera�te �5�,000 anc� in �ten �r�ars ��e h�ve �500,000. Tt costs us �o acquire� for ea:at�le9 �he con��act fo�° �eed on a struc�,ure �'or y�?_7j,040. L�t's s�y i;h�� i� costs us �500'OOQ to acquire �his �nd we sell it �o you �'o� :�l.OQ. We s�Lill have tha'� incremen-t and t�n years frpm now we will h�ve $500,00� �gain, but you make a commii;ment that you will build a struc�ture on it< Ri�ht noia this area generates very little in tuxes. Your nc�� structure ��ill �enerate more so we would get rr�ore increment. So we s�Zl it �o you ior �1.00 azid increase ov.r cash flow e��en �reater than taha� it w�s previovsly. The w�ay tae do t,hat is ��e donP'c save up tha�L $50C�,C00 ior t�n yeaxs, we 1�>now tliat it°s corzing in sc we pass � genrral o�li�ation bond ar,d �et �5009C�00. No�r' i'o� Pllase 29 j�*e havE this incrzment 'chat is g�ing oxi but we have another one tha� will start fe�dia�; into �the increme��t to help p�,y �or thiso The his�tory is that once you ao one ar t�ra' the rest happen by themselves. I�Rr. Doyscher sta�t;ed that �his area need.s a public incen�ive right now to cause it to r�develop. I�s. Schnahel asked if he said they cleared the lr�nd bei'ore �they hacl the developer? � %�� . Doyscher sta�ed l�e was saying �th�y should ht�v� a eontractu�l agreemen� tha�c �this devel.oper cri7.l bt.�y fpux° �cres and build. on a time schedule and that he bonds �'Qr th�at anci if he d.oesn't follor� �hrou�,h �the �,erforr�a,nce bonds z�rould be payab�.e to th� City. So �f he doesn4� follaw throv.�;b, he has a p�r�=ox°n�nce bond �,�d tk�a� bond �•r�u1d }�ay to complete the proj�et. Once �the con�tzact;a.r says th�t th� City contrnctually says they will piovide th� four acres cieared an�. available for and in su?t�zb1� condi-tion s"or d�velopmLnt in some time per�.od. Can the City mee� a time periocl? The Ci-cy can mee�L a time pe�°iod and the reason cities do these projects �nd no-t private people is because th� city can cause �;lzese people to move out Ar.d cause to buy �his prop�rty within �z time sch�duleo Mr. Bo�ardm�n stat�d that private developers cannot do that. Mr. Oquist asked if they meant to physically cl.ear it? R7r. Board�van stated that was co�reet. The Ci�y has th� tools available to put packages together where developers don't. A'is. Schnabel asked if the Ci�y of Minn�apolis �ot in�o i�'s trouble bec�use it �rent ahead and cleared �;he land be�fore it had d.evelopers? Nlr�. Doy�cher st�t�d th�t was correct. Fiere, ire ar� saying that �the City wi11. not acpuire land before it hAS £ contractual agreement with a developer. That wi11 prevent thai; from ha�penin� here. � PLANNING COP�AISSION P�TING MAY 9 1979 PAGE 28 h�. Oquist �tated th�t �tetement wa$ in the document bu�t �ahat makes tha�t binding? ^ He asked iP this was a binding document ior the Ci�y Council? - Mr, Boardman s-��ated i� was a le�al document and �the only taay they could ch�n�e tha'c is by changin� the actu.al tax increment plan. Pgr. Oquist asked if' the d.ocuments in the f'ront were lor that documen� and s�t�ted that �he City was obli�ated to do �ha`t? Mr. Doyscher s�tated those documents con�tinu�ally refer to the Center City Project. Ms. Hu�hes asked if th� Plan would be published? i�ir. Boardman stated i� did not need to be publ.ished. The only thing that needs to be published is 'che distric�. Mr, Harris stated that it may be n�cess�i�� to put in. soxne ic�cilities in eth�r districts while r�e are in Phase 1 if �ae a�e goin� to'�ti� the north �nd sou�h districts together. It may be necessary -L-o put in some sidewalks or some sort of in�erior s-�reet or wall�aay or bikeway bet�•reen ot.her phases . A�.°. Doyscher s�ated that leaaZly, assu-ning tha� there is �inancial �easibility, we c�.n mak� general improvements of � puY�J.ic n�,��ure in any geogra�pllic portioii of this distric'c. �:ssume tl�a'c a developer had co�uni_tt�d anc� �Ne ��rant x�ight then to '�i.ie into so�e kin� of k*a1k �attern br we tir�,nt �to crea'Le same ��i�d o� land.sc�pe standar�.s or li�h��iag standaic�s throughout the wha�� districf, � If is possil�le at �Lhat �oin� �1 i.;o se� tlzose s�an�axds and put a�.l tl�a � in. It woulc� be p�rt of the incre�en-t . The folZowing are eli�ibZe incrcmen�; paymEnt cos�s: Land acquisi'cio�., l�nd prem para�tion, reloca'�ion costsy provision of pub�ic iacila.�i�s a�.d public improvements su�h as streets, accesses, water9 sewer �nd �t,ho�e �ypes of things, on�si�;e improve- m�nts including parking if tha�c is a detierioratizzg condition and gez�eral public beautificatior� s�tand�rds. Wh.at would not be �.��al would be buiZding 'the building aor the person, financing the personp remodeZin� or physical improvements, buyirg a structure and makin� it available f°or resale is not legal. The kin�3 of thing that I�rro Harris was tulking about such as ]_ooking at a bro�d�r range �a�.d ln�.ybe doir.►� more 'than just 'c�za� phase is permissil�le. Mr. Harris s�cated they may h�ve to do i�. Mr. Doyscher stated they may have �to 3n some cases like the service road. It is not servicin� as we].l as it w�s intended and we may want to divert some of the movemen�. So they mi�ht be talkin� about public improi�emen�;s that require improved accesses. 3'he increment should pay for that. Mr. �iarris stated that one of the problems with the wlzale areasis traific and access and that may be the primary problem ar_d �;h� reason it has developed the way' it has. It m��y' be necessary that we go in and solve the traffic an�l assess problems beiore it �aill work. � PLIINNING COMMISSION MEETIN, MAX 9, 1979 P�fGE 29 Mr. Doyscher sta�ed that the other 'thin� they want to be careful of is sometimes � �re anticipate u�es c�nd i:hen a. land developer comes in and we have to go back and zn�,�:e cYu�n��s. FIe would prefer in �hi� instanc� to se� so2ne overall �roals ana stt�ndards but t,o permit that develog�er or redeve].oper to plug in and make sure tl�at oux concerns arc knoLln and work with �Lha�t Zand without some �,ivEns alr�ady taY3n� p2ace. _. .. � , . Ms. Schnabel ��ated this brings up �h� goals on pa�e $. She �el� tha't sotne a�' i;hose should be r�arran�ed and she felt th�t C and D shoul�. come before �. Mx�. Doysclier sta'ted �hese �oals were no-t in order oi importance. b�, Schnabel sta'ced that if that �ras true and the �'irs�t p�ase was the Christerasen Center proper�y. She ha�i a problem because t�rh�i; if the stated objective in here is -�o gcnera�e people and one of the m�thocs o�' doin� thtat is through an of'fice building. It sounds �rood but then �hey taJ.k about needin� four acres of land, and when she read �his she wan�ted to knotir d�hy iahen �hey h�d four acres af vacant land on �he south�res�L � arn�r �re 'i,hey r.o� talkin� abou�c puttir� tha�t same office buila9.n� th�r�. Tf �riis is a valid ar�usnen� for 'chis �roperty, w�iy ��a�n't tha+ already ha�ppened? Where has the need been demons�Lra'ted tha� there should be an office building oi' that size and �Ehat na'ture and if thez e was a need why hasno �t anybady buili it there? Mr. Doys_r.her stai�ed tha� sometimes owne:es do no� develop nroperty ior a who].e host of reasons. They could be fin�ncial reasons or their o�m goals and objectives. The awnAr rr�iy i�at be r;�illing -ta risk 'che develo�aieia-t of �ffice :�pace. Also' the �., o�mer rr�ay ha've v�alues se't on it which athes° people bei.ieve to be vnrea�istic. A �:hird reason is tha't he rr,�y not �o aut and ac'cive].y promo-ce cot�struction on it. T�Iha'c �ae cqn do is rna�;e th.e land �;ery at�;racii�re in terms c�° p�ice� we c�uld supply a lo�; oz other improver�erits �;hat a.re irequen�;ly needed in an o:Cfice spacE s�ach as parl:ing and ��re can �o out and pro�ote tha� plan with the developn��nt oi pro� spec�tus' and iraprovements to make i�; availabZ�. We can do man`y of �those things tha� a priva'te �erGon could no�c c�o. • � NIs. Schna�el asked it it would not be cheaper in the long run for tiie City �co ecnde�n •tha�: v�cant lanci under this type o�` pla�. than to go throu;h th� ncguisition and condettuzr��ian of �].l �;his o'ther propert;� where they have ta pay rel.oca�iora costs. Mr. Do,yschex stated they have to consider ather boals. ,�t is not a gaod existing use, no�c in good condition, inadequa'Le parking9 general unke�pt appear�,nce� con� flec�ing land uses. It would be a reasonable �oal for the City to -�ry to malce some improvements in this area. Ms. Schnabel stated that her point was that they have a piece oi proper�y alread�� suited for what they are saying should �o on there and they choose to ignore th�t. Pqr. Doyscher sta�ted th�t he did not choose �e� ignore that. There is another given. The City was concerned About this property too and in fact exercised a con�trACt for deed to buy it. That canicract f'or deed has time limits and expiration dates which means -che Gity either follaws through or legally gives up the contract f'or deed. Ther� are decisions that took place in the past that need to be thought About. �"'� � PLAAINING COI�.�IZSSIOPI i?EETING MAY 9� 1979 - PAGE 30 Mr. Doy�cher w�nt on to say that he thought office spACe was a via�ie option because we have five nei�hborhood conveni�nce cente�s and w'e don't need a�y more. To brinn in �nother retailer we have to make �n assumption that thie retailer wi11 do sowething differ�nt from Holly Center or Moon P1aza.o�herwise what they migh� be doing is hurtir�g Holly Center. He didn''c think that �rou]-d. be in the bes't int,erest of �Lhe project. Ms. Schr.abel stated �Lhat she st31.1, felt i�t would be be�cter to put the of�'ice building on the other property. Mr. noyscher stated he was not arguing the�t �here shouldn't be an of£ice there. In fac� he fe�ls it should be an office or housing unless they clear so� of tliis out like the Rice Center and put in a better Yind cf cen�er. But gahen some oi tl�2at land was sald, it elimina'ced access. In his opirion th� e�imin�tion o�' two or three of these ccnters would not be all that negative. We could do something abou-� oi�'ice or retail i�' we do scmething a�out si�te d�sign. Anothex° 'thing is �Y�at he ieli; tY�is Yiad a ffiarkeic area �or housin�, densi'cy t�Ap� housin�. NLr. Oquis� stated tha� what he �ras hearing was they wan�t to clear tha,t area out because it is blighted and there is no blight on the vacaxit l�,nd. He also under- stood. °i,hat they were trS�ing �to develap the east side oc Universi'cy rather than the orest sid�. To s�art r�aith �they want �o concentxa�ce on the east side. Mr. Doyseher s�c��ted that ii they eoulcl eause developmen�c o�' a �uitable na�ure th�t meets the goals oi this plan they w�uld noi. be I.00kin� �CO spend pubTic z�o�e;�. 1't can happen by and of itsel�' i�' i�c is oT�rn.ed by on� a�,me� affic�. is vacant i'� is like�y � t o liappen . i�Is. Hu�hes asked what the possibi3ities of' the Cii,y i�nposin� a deadZzne on �his �'or itseJ.f . Mr. Doyscher stated he would no� recommene� tr.�t. A'ir. Boardman stated l�e did nat think that w�s a�ood idea. Based on development - and tlie mar�et place �Lhey cou.Zd be restricting themselves more �Llzan tY�ey really should because of m�rket place attitudes. Ms. Hughes asked. if' they couldn"t say 15 3'ears or 10 years and the reason she askec� that �ras she wondered if that would r�a.11y be significant? Mr. Doyscher stated that tlze real deadline was �the district. They operate the � district for the term of i�s indebtedness. When that indeb�tedness has been payed off and the �aals nave been achieved, this district:�s no lan�;er in existence. The proble�► with a lot of deadlines is tliat a lot oi districts were only dis-tricts for one parcel. Our clistrict is set in phases so tha�t we can go out of debt and into debt int�clie same year. Ho�r long that will go on is a response to the initia- tive of the City and t,he �eneral economic condition of Minneso-ta and things we have no control ov�r such as marlcet pls�ces. We are no't le�ally required to place a limitation. We are legally required to pay off the indebtedness. - �"'� PLi�1VNZNG COMMISSION �� TIrNG' PRAY 9, �979 PAG� 31 Nis. Hu�hes s�;ai;ed she w�s �;hinking as a�a.'cpayer. Nt�°. Doyscher s�;ated that as a�;nxp�ayer they were really �;ainin�. 2�ir. Hora asked aY�GUt the hum�n elemen�? What �bout the people who are.already there? � Ntr. Doyscher sta�ted that i�be plan includes a pZan for reloc�tion. The busir.ess operratars �ncl owners will be payed re�.ocatiori bene�'i•i s even ii they don't o� �he property. The City will pE1y to relocate tiiem in an area of their choice. Mr. Qquist asked what would happen if they didn'� want �o move? Mr. Doyscher s-L-a�ed they wm�ld have no choice. They �aill try to make it as f air as possible. I�Ir. Boardm�n stated if they wanted to sicay in the �,rea' they could possibly move int� a ner� bui�dir.g there. Mr. H�rris stated tha�L tlley taoul.d bave to look a� t}�e s��rrn sewer service in this area and would have to h�ve s� comprchensive plan ior the �rhole �i,hing. I� is all tied together. Mr. Doyscher st�ted it �roul.d b� a mistake t� use a1.1 °�he financing to solve the sewer pxo'b�em. There was the option tha'� the developer �r�y assessments also. /'� I�is. Schn�bel asked i�' peo�1e in tlic o-ther areas o� tki� City waizlcl be p�yia,�, in some way fbr the Cen'ter City Projec�? Mr. �7o�schEr �tated tha� the only �ray they �,rould pay is i�' �he City se�ls gener�3 obli�ation bonds aszd i,he redevelop�:ent doesn4t pay g�n.�r�l obtigation �onds9 then the City �ri, l eithe�° hav� to genera�t� ne�r taxes or take oui; general revenues �to p�y bond holders. The only oi;her �tr�y they t�roi�ld pay is i� Vi�la�e Green was not included in the increment district' those �taxes would �hen be dis�ributed probably 20�0 -�o the Ci�y, 60�o to the School District and 25io -to the Coun�y, That's 20� of t�� revenue bonas 'chat gaes �Lo the City tha� is no� now goir� �o the Ci�y. The question is most of the area witih the e�ceptior� ofi' Village Green there would no� be any increase. It's not � loss of income �they have already been getti.ng, it's jus1: not an inc�ease. Mr. Baardman stated that they were ta].i�in� in the Ceni;er City area of an $ssessed valuation of $2,666,000 or in that area. For Dis�rict 1�+, the assessed valuai;3on is around $78,000,000 to �80,000,000. So, they are talking about $2,000,000 as compared to �'�80,000,000 �otal. It effects the School District by about .3 mil. I� ef�'ects the County by about 7�lOth of 1�. Those are �enerall.,y the fi�ures tha't ' �ae look at., .� -- - - . .- - � -- - - i �- �'i1 PLAIYNING COMMISSION I�ETTNG MAY 9, �979 PAGE 32 Ms. Hu�hes asked if thia would effee�t any ai,her area of the Ci�ty7 She was � concerned about �he area north on Uiziversity where there is some commercial development and wha� the impac� �aould be on that area. A4r. Iioardman st.ated they were looking at two di£ferent �ypes of co�nercial. This cominerci.al is more service orien�tecl. Those commc;rcial.s will surv:Lve no matter what they do because they are �Lhe au�Lo dealerships� and 'che '�ypes oi thin�s t%.�i ti�rive alang th� high tr�ific volume f;yPe area. They �re txyin� to limi� �ho�e types of strip curr�a4rcials as much as possible wi�Lhin the City jurisdictioz�. As far as the ather ar�as go, '�he a�ea to sou�tlz is Iioliday Village and that is an es�tablished use and will remain no �a'cter what happens. The N�ac� Donald's and rest;auran'c chains are also goin� to rcmain because they are established uses �nd �;hrive oz� �'crip type �,rafiic. The o�ther corun�rcial �reas are in -�he Ciicy are the Sl.ywoad P�'Ia].l and T�rget di�tric�. That aZea will r�;nazn because it is a high �:ra�'fic movement area �nc1 pt�lls in a 1ot of differen•t ar�as• The SY.ywood P�Ia1.1 is service oriented but �o i:h� extent tllaic it services a dif�erent papulation. Z�h� only ot•hei• ses�vice area 'tha'� may be effected is t}a� Sl�oretaood Fl.az�,. Th�'t is also a very lircited usaoe area ns fax as i'cs o� ienta'ciou and i-� prabably needs some improz=ement ar.d at� some poin'l, in 'cime �the C3ty wil]. have to ].00k a�C �tha't cen-ter as a vi�ble er.�'cer area and see �riza'� 't5�e of improvement is needeci. Z�'s a very �urn- over �type are� and we �c�ill liavc� 'co look at it and see tiiYl�'t sre ean do to malre it a more viable area. He did not see wh�re �y i�ot clevelopin,�, �his a?9ea �hey would l�elp 'chE Shorewood Grea. T��s. Fiu.ghes aslied h�r. Harris' opinion was oi the projee�? n Nir. Harris stated Yie would like �o kn�w �irst if anyone else h�d ar_y questions. Mr. Treuenfe].s reierred to page 6, �;edevelopnent Goals ar.d Ob jec�ti.ves, ;�D9 and s'cate�3 that noth�ng t�ras said with respect �o minori�Lies or handicapped g�eople. He 8s1{ed i�' that was in�licit in the p:Lan "or clid '�hey �•�ant to exclude t�ose people? Mr. Doyscher stated that he fel�t i-� was implicit anca he ielt �cbai; when �he City of Fridley created the F�IRA h�d �c.o certiiy and has, in the Sec�Ciou 8 Project, that it �ar�s a:� equal ogportt�nitaes plan, a fair housiaz� �1a11 z�nd the 1iYe. Because the Ci�ty has adopted the Equal Opportunities Pl�n ar�y ac'tion -�hey take are u�lc�er those auspic�s. Mr, Harris s�,ated th�t he had read the document but wish �Chey had more time to think about it. They have been �alking about doing something with this par�ticular in�tersection �area for some 'time. The problem has been �that of access nnd traffic. Anather problem was that of the many ownerships of parcels. l�Tob ody could get the thing together. It would take somethir� like this �:o move ahead �•rith this and pu�t the projec�; to�ether. There we�e some thin�� that bothered him but it was diPfi.cult to put hi� fi.r_�er on the�. He called them loose ends and felt �rr�� loose t-:ncis ulways come back to liaun� i;hem. D�,gybe �they had those loosa ends because they w�re pushing so fast but he u;�derstoad wY�y they were pushing so fast. On the other hand, if ar�ything is �ver �oing to happen to this area, we have to do some-Lhin� and �omeone h�s to take the i�itiative and there is no one else around to do it but the City. He stated they had a lar�e investmen�t right here in the City Hall and they had a lon� discussion �aith the City Council regarding this. Tl�e Christenson property �`1 to the nox�h of the City Hall is legally and literally bli�hted. Sa to protect PT�ANNIPdG CON�IISSION MEETING, NSAY 9r 1979 - PAG� 33 �the City's ir�-terests we recommended at �that timc; that �the City make a move to � tie up the�ownership on the Christenson property because it was �oing to be parceled o�f in smsll inerem�nts. With all o� the mis�ivin�s we have about the �roject, he still ielt tha't ii we are ever going to mske this �re;a ir�to anytiiing we are �oing to hr�ve to do it. And th� ��ray thin�s are ;oin� in the state legis- latuxe' it appeaxs that tYiis is kind o� our last chance. This is the si�ua�tion we �re iaced wi'th. I� w� are going �o mske aray�thin� of this ar�� nd proi;ect the City' s itivestment righi; herep he felt i-� �rould be a worthwhile pro�ect. Mr. Or�uis� statecl �that the �;hing that made the pro ject attractive was i:l�a� w� wrou].d no� be obl:ig�ted to any�ody bu� �,he Gi�ty, oux�selves. The concern w� had. 15 ye�rs agc was tha� we would be obligated to FIUD� t17� Federa,l Government' ar�d �Lhey would have con�rol. In �his case, we' the Ci�ty9 would have control. P�ir. Harris si;ated �hat in lookin,r�, a.t Phase i, ii' we can get tha�t ofi the �roun.d� i:he rest �aall kind ai take care of i�Lself. Ms. Schnabel s�cated tha� she has �ratched 'thi� ar�a deveZop t�nd iel� it had �.evelon2d very poarZy. She had problems b�caus�9 firs� of a11� she agreed that so�ethix� had to be done wi•th the are€�9 bu�t �,°he� all is said and done �hey wou�.d end up wri�th essen�ially the same us� they have now. Th� use �rould no�i, chan.ge. She sa�a them spinnin� a lo� of whe�Zs and doing a lo-t of 'r,hin�s. She had a specii'ic problEan wi�th t�ie St . William' s Church proper�y. Slze s-�ated tha� h�.d been tax exemp� proper'cy for all �these years �iid has a problPm with �tl.ze City goii� in and buy.ing it. She u�as cor�c��°ned about s�pa-ra'ciorl. o�' Church and S��atc. � I�qr. Oqui�t s'ca'ced tY.t.a't he dic��t�; �� any problem wi�,h �the Ci�y buying �that proper-cy as 1�n� ��. �triey lz�d somF-oi�e w?�,o ��;reed �a develo� i�L. If tlie Chu?°ei� is not �oing to use �h�� rarer�y they mi��it as �iell g�t it in�o •the �ax roils ar�d �et some uae ou�r, of it . Mr. Bo�rdn�an S'E�'�@a. '�Yla'� �ip�C'i"tV S7�,S originally purchased for �;he expansiora of the Church. They have �otten indications iro� the p�stor �Chat i•t pro'�ably ��on'� h��pen . They �•rould just be looking at the undcvel.oped por-tion os" 'che Church proper-cy, T�9r. Boardanan and Mr. Doysche� �iave sat do��m with the Church �nd have had some discussions �riicl� the po�cei�tiial of ��iandic�X�p. d housin� �•�hich r��uires a nanmprofi-c sponsor. In that way i� gaould be an ideal si�uation if t�1e Church would provid� the sponsorship for tha't type o� developmeiz�t. The Church ��L �his �;ime is not that interested ir� becoauening a sponsor, but 'thrat may change. It is still a potential. I�. Harris asked why tlaey didn't chang� the size o�' the district and why they included the Q Station. Mr. Boardmt�n stated that by includino the Chuxch to the district �they were not picking up any taxes and by not including the Church they were not losin� ar�y taxes. Tl1ey ma� hav� �to lose that Q Station as far as access or something lilce that goes. He t�rasn't sayin� �that would happen, he tras just sayin� they might have to have ti�t for access. They fel� they �hould include some of these areas ior �the purpos� oi modification or change if necessary. �; PLANNING COMMISSION NN�EETING, MAY 9' 1979 - PAGE 3� Ms. Schnabel st�,ted she stfll had a probZem with srhy some of the vacant land hadn't developed on it's own and if it is viable land. why hasn't it developed. Mr. Boardman stated the �,a�swer to tha'c �ras primarily cost and poor planning. N,s . Schnabel stated that she ti•�asn't suxe �that doit�� thi s�aould chan�e ichat . Mr. Boarcin�an s�ca'ted th�re wer� t�o1s availabl.e that would spur that change. With �hE tax incretnent and other financing tooZ�9 th�y could give the area a shot in the ax�rn. Mr. Harris stated that if zae don't do soinethin� v�ith this area nota� the alterna�tive is i;hat this area wil]. continue to deeline and keep going downhill. He referred to the Christenson Cen-ter in particular. tdr. Do�rscher referred �o the business survey tal:eiz �ai'ch �he people wl�o operate businesses in 'chP area.. The ma jority of �;he peop, e�'e1t i�t �•as �;ood place to do ��sine�s. The peaple in Iiol]_y Cen��r feeZ they have go� �to exc�llen-t pros"its. The people in Moon Pl.a�a 'try' to move °co Holl�r. The peo�lr� in Chpis�er.son and Fridl�y Cen�`i;ers ifeel buszn�ss is poo.r, an�.cl when asked if they felt they cou.ld m�ke more mar_ey in a diiferen'c l.oca�ion, the: ansj�rer was yes. Re„ardin� t��e tu_rn over rate, 25�jo of the p�ople j•rho do '�usi�zes� here have done i� for 18 months or less. Z'hose �re all located in Rice' Fr.•idley and Ci�ristens�n Centers. The people -who felt business ��as pret�y goc,d, felt �ha�t ii it was cl�aned up and �h� �t raf:i ic situation i�ps oved, they woulti rnalce more money. I�Ir. O�,uis� asked iz° we wen� thro�h with -this p1a�� and in thr�e to �i�e yea�s four:d i� ti��c�L:1.d not worl�, how much wou].d ��'ridlc:y b� ou�? Mr. DoySChe� s�a�ted th�y would out about �3,400.00. Mr. �quist felt it �ras worth txyint, then if e.Il �c�re �aould be out is .�'p39000.00. N1r. Harris st�t�d he could no�c see a viable �ltern.a�ive. Ms. Hughe3 �``��ed th3i; the critical thing was the r�oney tra�C could be capture�3 i'rom the Villa�e Green and �hat �rouldn'� l.as'c. The opportunity was naw. Ms. Schnabel askc� who the merube�s o�' the Fridl.ey Fiousing Li11C�. R•G'�@VP�ti�1ffi4'Tl� Authority wer�? Nf�°. Boardman sta��ed the members were Elmer Priedi�es, the chairman is Larry Commers, the vice chairman is- Russel Iiouck, Ce�olyn Syensen, and �'as�oz A�no1d Stone. Mr. Harris sta�ed th�at in the "Table o� Cantents" document on Page l, ��+, thai sentence shou7.d be changed -Eo read as follows: "That the r.edevelapment p1.an conforms to a�eneral plan for the develapment of the City of Fridley." (change redevelopment to development). � � PLANNING CONt�RISSIOTd M�ETING, MlaY 9, i979 - PAGE 35 � MOTIOTd by I�r. Txeu�nfels, secor,ded by MM�. Oquistr -th�a't the Plannin� Commission r 1 adop�i a resolution that the Planning Commission of the City of Fridley finds the Fridley Housing and Redevelopment Authority's Center City Redevelopment Plan consistent with the Compr�hansive Deyelopment P1an of the City of Fridley and recommends approval of the Plan to the City Council. � UPON A�OICE VOTE, A�L VOrCTN� A`i�, CFiAIRMAN HARRIS DECLARED TIiE PQOTION CARRJ� tN/�°dIP�10USLY . 7, i:ECPIVE E�N1�t�JNP�IETdTAL �Li.(�LITY CQMMISSIOIV MiNLF.["ES; APRIL 17, ig79: T✓OTION by Ms. S�hnc��el, seconcled by N�r. Oquisic, �o reeeive the Environmental Quality Commission minu�es o�' April 17� 1979. Mr. Harris askec3 Mr. Boardcc�an if �hey had received in�ut from th� Environm�ntal Commission on �he Comprehensive Developmen� Plan9 Mr. Boardman stated they �rould be havino anoth�r mee�;ing on that. - UPOT� � VOICE V�'I�'y AL% VOTING AYE, CHA3RM�1N HARRIS DFCLARED TIdE MOTION CARR7ED Wi AIVIh;OUSLY . g, RECEIVE APPEALS �O��iISST0;1 N`TNtFlES: APRIL 2ZE, 1�79; I�OTIOTJ by Ms. Schnabel.� sec��.c�d �y .Ir. Treuera; �is9 to receive the April 2�� 1979 �ninu�c:s oi the ��pesl� Cvmmis�io:�. �, NI� . Harris asl;ed ;ah�ic had happenzc: �r:;.tla �he townhouse busiaiess. T�s . Schn.abel stated triey had sent i� �io Council WI.`tZ1 a recommendation f or approval �aith -Lhe idea th�� the p1�t-cing be chan�ed as discussed at the Planning Commission. Ut'ON A VOIC� VO'I'�y ALL VOTITdG AYE, CHAIRMA�T HIs.RRTS D�CLARED THE MOTION CI�RRTED UNANIP�iOUSLY . 9, x�cE:cvE cor:��tr�r1� D�vF�,oPr+�N� COA tNSSSICI`' SPECTAL P�+D�ETII� MIT '1.-�S: Is,PRIL 2�+� i�79: P�OTIOTI by Mr. Oquist� seconded by P�r. Treuenfels' to receive the �pril 249 1.979 minu�ces of the Caanmuni�y Dev�lopment Commissi�n special mee�i�,�. Mr. Oquist stated h� �fas no-t able .to ai,tend that rneeting. Mr. Boardman stated tha�t because of a con�Iic�t� m secretary was not a�'a�iZabl� so staff provided �he �inutes. UPQ1�T A VOICE V4TE, ALL VOTING AYE, CHAIRNi�#N HARRIS DECLARED THE MOTIOiV CARRTED IJNANIASOUSLY . 10. ��IL'E PARKS & RECPE�TION COT�IISSION' MINUTES: APRIL 23, 1979: n MOTION by Ms. Tiu�hes, seconded by tds. Schnabe].� to receive the April 23, i979, minutcs of the Parks an� Recreation Coinmi�sion. PLANNING CONIMISSION P�EETING, MAY 9, 1.97� - PAGE 36 I�. Hughes stated they had �o�tten tY�rou�h th� Comprehensive Development Pl�.n „� and there would be some vrri°�ten pa�es fbrthcomin� on �;h�zt. r Mr. Harris st�ted that he ur.8erstood they had gotten the person involved in the Harris Lalce Park busineas and tr�at per�on k�as doin� some cle�n up work. M�. Hughes s�4�,�ted. there �rasr�'t as much dama�e a� they ori�inally thought. Siie also sta-ted they riad received the S_prir.g Br. c�ok Na�;ure Cen�ter �ran� of arouuzd $300yd00. The Pariz Comraittee, Spriu� Brook and the City Council would be ir�terviez�ring architects on �he 16th and they expect one will be hired within �the �ree�:. NLr. I3ot�rdman s-ta�ed they had gon.� tY�rough a revi.e�r process and narrowed i� do�m �Lo tllree. UPOTd A VOIC"F' VOTE' I�ZL VO^11idG AYEy C�iA1�'utiil�IV HARRIS DFCLARED TI� MOTTON CARRIED UiVATJII�;OUSLY . 13:. RECETVE EP,�'r,P,GY P�O��'CT CCi��ilT'.LTr� �;II`3UfiES: APRIL 2�, �_979� TdOTI0I1 by I�1r. Treuenfels, �eeonded by Niro Oq�ist �to rec�iv� the A�ril 2�+� 1979, Mir�u-�es of ��he Ener�;y� Proj�ct Cozn��itteeo N�r. Trcu�nf�ls referied to �age 3 af the sr�iilutes as ask>ed i�' �he publications "En�r�,y Optior�s" ar,d "Laer� Dilermn�s" r�ro1�3_d be avail�.L-le to o�her comm:i.ssions? Mr, tIarris su,�ested he ask N"�e Larigenfeld� iche chairman of the co�missian. UPON A VOTCE VOZ'E, ALLL VOlIIuG AY�9 CIiA .�1iN.�N 'r�1SS-tRIS DEi;L�1I�T� TF� N�OTION CA�'�RIr'� U1�ANTIv;OUSLY . 12. RECi�I�,� E:VVLF;ONP�'F':�r'1LL �?"Jt1Ll'`'�'ir CCI��TSSIOid S?'ECL�L T�TI�1G I�sTl��'S: APRIZ 26' �979a hgflTTO�T by �s. Sch�abel, seconded �y T�4r. Treuenfels9 to receive �che April 269 �979, mivai�es o.f the �nvironmental �uaZl�y Commissio� special ffieeting. Mr. H�rris noted tkiey wantecl �o r�ake sure they had the inpu�.; of �;he Environrnent�l Quality Co�i.ssion when they discuss the Comprehensive Plan. UPON A VOICE VOTE, ALL VOTING AY�9 CHATRMAIJ HARRIS DECLARED THE MOTION CIiRRIID UNANIA70USLY . 13. CON'I'INUED: DISCUSSION ON DRAFT OI' COMPRE��iVSIVE DEVELOPI��NT PLAN: MOTI0�1 by Mr. Treuenfels, seconded by Ms. Sciznabel, to continue the discussion of -the Comprehensive Development Plan. UPON A VOICE VC)TE� ALL VOTING AYE� CHA1�tMAN HARRIS DECLARED THE 1�40TION CARRIID UNANTI�OUSLY . � PLAIINING CONIM�SSIOid MEETING� MAY 9� �.979 ,� - PAGE �7 ].�-. CONTINt7ED; PROPOSED CIiATdGES TO CFIIIPTER 205. ZONING: ��''� MOTZON by Mr. Oqu�.st, seconded by Mr. Tr�ue�els, to continue tl�e proposc�cl ch�nges to Chapter 205 Zoning. UPON A VOICE �10'I'E� ALL VOTING AYE, CHATRMAN HARRIS DECLARED THE-M�TION CARR� UNANIMOUSLX. • �5. c�rt-�t Btr�z�ss: Mr. Txeuenf��.s sta,tecl that Mr. Ray Leek would soon be leaving the City oi Fridley and su�ges�ed �Che Planning Cormniscion express •i,heir �ppreciation �or the good service Mr. Leek has provided. MOTTON by Mr. Treue�nfels, seconded by Mr, Oquist' th.at the Pla�in� Co�ission expresses their �ppreciation for the work i�Ir. I;eek has done and wishes him well. UPON A VOICE VOTE� ALL VOTTNG AYE9 CHATRi�11�TJ HARRIS DECLARED THE MOT20N CAI�RIED UlVANI1�;0USLY. - Ms. Schnabel stated tha�t she would like i,o sug�est that when a public hearing is being h�ld, tl�at the members c,f the commission make �an ef�'o�t to go out and personally look at the prope�r�y in qu�stion because it wou:L� save time during �he me�tings and be helpful in �aking a decision. ,'°6� I�40TIOT� by I��s. Schnabel, s�cond�d by Mr. Treuenfels, to ad jous°n �ne r�raay 9, 1979 meetiri�; ai' -t�:e Planning Cananission. i.JPON A VOIG'E VO'�E9 A�L VOTING A�.'E' CHAIP,MAN HARRTS DECLARED THE MEE^lING ADJOURNED AT 12:10 A.M. Respectfully submit-teds ��o :�li' �� j�? � ',�rR : � Ka�thy Shek�on, Recoa°ding Secretary � _�.