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HomeMy WebLinkAbout2A, Review & Discuss Presbyterian Homes Development ProposalEN HILLS Request for Council Review Prepared By: Patrick Klaers, City Administrator Meagan Beekman, City Planner Worksession Date: October 18, 2010 Review and Discuss Presbyterian Homes Development Proposal A Discussion Topic: Discuss the revised Presbyterian Homes redevelopment proposal and provide feedback regarding the deeding of 3151 Lake Johanna Boulevard to the City as part of the overall tax increment financing (TIF) package. Supporting Documents: 1. Memorandum dated October 18, 2010, from Meagan Beekman 2. Memorandum dated October 18, 2010, from Patrick Klaers 3. October 7, 2010, Letter from City Attorney regarding closed meetings 4. Presbyterian Homes Site Plan revised October 6, 2010 DATE: October 18, 2010 - A.IREN HILLS MEMORANDUM TO: Honorable Mayor and City Council Patrick Klaers, City Administrator FROM: Meagan Beekman, City Planner SUBJECT: Presbyterian Homes Discussion Request \\,e7 Discuss the revised Presbyterian Homes redevelopment proposal and provide feedback regarding the deeding of 3151 Lake Johanna Boulevard to the City as part of the overall tax increment financing (TIF) package. Background The purpose of this work session discussion is to introduce the Council to a number of revisions that have been made to the Presbyterian Homes redevelopment proposal, most notably the removal of the triangle parcel from the application and its impact on the rest of the site plan. City Staff and Presbyterian Homes have been in discussions regarding the triangle parcel. Presbyterian Homes has offered to relocate the 14 units that were proposed on the triangle parcel to their primary site, and as part of an approval of their TIF application, donate the property located at 3151 Lake Johanna Boulevard to the City. The two single family homes located at 3153 and 3163 Lake Johanna Boulevard would remain. The Council is being asked to discuss the transfer of the triangle parcel to the City, and provide direction on the level of support for the use of TIF. Since the August 9 Council work session Presbyterian Homes has made several alterations to their proposed redevelopment application. The changes have come out of seven community meetings and two City work sessions, as well as a public hearing held by the Planning Commission on October 6 The revised site plan (Attached), encompasses the most recent iteration of the redevelopment proposal. The most notable changes made to the plan are as follows: City of Arden Hills City Council Meeting for October 18, 2010 Page 1 of 2 • The removal of the proposed library space. • The realignment of the south access drive from Shorewood Drive to County Road D, creating a four -way intersection at Wheeler Avenue. The reorientation of the brownstone building facing County Road D in order to accommodate the relocated drive access. • The removal of the hammerhead and top floor of the primary building at its southeast end. This change would push the building farther away from neighboring properties and lower the height by one story on this end. It would also result in a reduction of eight units on this side of the building. • The removal of the 14 -unit brownstone that would have been located on the triangle parcel. • The relocation of the 22 units removed from the triangle parcel and the southeast side of the building to the north end of the building. This change would increase the height of the building on this end by one story; bringing the height up to four stories. This change would not increase the height of the overall building. TIF Discussion A closed session meeting has also been scheduled this evening if the Council would like to discuss the financial terms of the triangle parcel transfer in greater detail; however, it is not necessary to go into a closed meeting if one is not needed. Attachments 1. Memorandum dated October 18, 2010, from Patrick Klaers 2. Presbyterian Homes Site Plan revised October 6, 2010 City of Arden Hills City Council Meeting for October 18, 2010 Page 2 of 2 ARpNHILLS MEMORANDUM DATE: October 18, 2010 TO: Honorable Mayor and City Council embers FROM: Patrick Klaers, City Administrator 4;-- SUBJECT: Presbyterian Homes TIF Request Background The schedule for considering the TIF application from Presbyterian Homes has been changed. Originally, the public hearing for establishing the TIF District was scheduled for October 25 This public hearing is not going to take place. Due in part to uncertainty with the Library part of the original proposal, staff and the applicant decided to hold off on authorizing LHB to do the required inspections of the site and the inspections of the existing structures. The new schedule has the City Council, on October 25 setting a public hearing for December 13, 2010. Prior to this upcoming October 25 City Council meeting, staff thought it was appropriate for the Council to review the changes in the Presbyterian Homes proposal and to discuss the request for TIF. Please see the attached memo from City Planner Meagan Beekman regarding the current proposal and the changes from the original proposal which the Council reviewed in August. Discussion Points By all appearances, it looks like Presbyterian Homes will be able to meet the qualifications for creating a 16 year Renewal and Renovation District. These qualifications relate to the lot coverage and the condition of the existing structures. It also appears that, based on the redevelopment nature of the proposed project, the applicant will have more than enough qualified costs. Preliminary estimates show approximately $1.5 million in increments being available over 16 years. When a redevelopment project has a significant amount of site preparation costs, it tends to limit the ability of developer to finance the balance of the project. The project as proposed has incorporated TIF support from the City. Accordingly, everyone needs to answer to the question of: "What would the project be and look like without any TIF support ?" In other words, "but for" TIF dollars, the project as proposed would not be possible and therefore it is important to the City to provide TIF support in order to achieve a more beneficial project for the community. In addition to the extra ordinary costs associated with this redevelopment (as compared to doing this project on a vacant parcel), the City has some issues that it needs to address as part of this project. The issues are a sewer line replacement and the improvement of the street (the extension of County Road D east of Lake Johanna Blvd.). It is legal to use TIF funds for these improvements. The City's share of the street work and the cost of the sewer work combined are estimated to be slightly under $150,000. Another important issue to consider with this redevelopment project and the recent revisions is the possibility of the applicant deeding or transferring the "triangle shaped parcel" to the City as part of the TIF proposal. The value of this land is open to discussion. It is uncertain what the applicant will do with this site if the TIF proposal is rejected by the Council as this site is no longer part of the redevelopment application. Recommendation The City's Financial Planning and Analysis Committee (FPAC) recommended that the City Council approve the TIF request from Presbyterian Homes regardless if the redevelopment project included the Library or not. The FPAC viewed Presbyterian Homes as a community asset and a business that provides an important service within the community. Furthermore, the FPAC noted that the project is located at a key intersection in the City and that it was in the City's best interest to help make this project the best and most attractive possible. I agree with the FPAC recommendation and believe that the redevelopment project would change for the negative in terms of overall quality and appearance if no TIF funds were provided. The City gaining ownership and control of the triangle shaped parcel is an extra benefit that should improve the 5 -way intersection in the long term. I also recommend that if the City Council knows that there is no Council majority support for the TIF application, then the City Council should not move forward with consideration of the application. After October 25 work on the District plan will be authorized and the application process will get expensive very quickly. Warren E. Peterson Jerome P. Filla Daniel Witt Fram Glenn A. Bergman John Michael Miller Michael T. Oberle Steven H. Bruns* Paul W. Fahning* Sonja R. Ortiz Ben I. Rust Jonathan R. Cuskey Tracy J. Halliday Jared M. Goerlitz Dan M. Duffek* Meagan Beekman City Planner City of Arden Hills 1245 West Highway 96 Arden Hills, MN 55112 Re: Sale /Purchase /Lease Open Meeting Law Meagan: P FRMCIBERGMAN P R O F E S S I O N A L A S S O C I A T I O N October 7, 2010 'ALSO ADMITTED IN WISCONSIN (651)290-6907 'fills th- pa.com VIA EMAIL You have inquired regarding the process that needs to be followed by the city council when discussing the sale, purchase or lease of real property . There are no provisions in the Minnesota Open Meeting Law which allow the city councilmembers to discuss lease terms at a closed meeting. However, there is a provision that would allow the city council to negotiate and discuss the terms of an agreement sell or purchase real property, in which event, the following procedures would apply: 1. Before closing the meeting, the council should describe the specific property which will be discussed. 2. The meeting needs to be taped. 3. The tape recording must be kept for eight (8) years. 4. The tape recording must be made available to the public after the specific property has been purchased or sold; or after the city council has abandoned the purchase or sale. 5. A list of the councilmembers and other people who attended the closed meeting needs to be on the record and made public after the meeting. 6. Prior to closing the meeting, the presiding officer, or some party who was at the closed meeting, must state for the record, something substantially similar to the following: Suite 800 55 East Fifth Street St. Paul, MN 55101 -1718 (651) 291-8955 (6511 228 -1753 facsimile www.pfb - pa.com October 7, 2010 Page 2 A. This meeting of the city council is being closed pursuant to the provisions of Minn. Stat. §13D.05, Subd. 3(C)(3) in order to allow the city council to discuss the terms of the purchase and /or sale of certain real property located at (address or other description of property). The decision to buy or sale real property should also be reviewed by the Planning Commission to determine the impact of the decision on the City's Comprehensive Plan and to allow the Planning Commission to provide findings to the city council or, in the alternative, the council should adopt a resolution by four (4) affirmative votes indicating that the proposed purchase /sale transaction will have no impact on the Comprehensive Plan and therefore the Planning Commission's review is not required (Minn. Stat. 462.356, Subd.3). If you have any questions, please contact me. JPF /jmt C: Patrick Klaers F: \users\Jessica\Jerry\Arden Hills \Correspondence\Beekman Ltr 10.7.10.doc Very t ly yours, e Pf: